ANNUAL COMPREHENSIVE
FISCAL YEAR ENDED JUNE 30, 2022
FINANCIAL REPORT
ANNUAL COMPREHENSIVE
FINANCIAL REPORTFINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
CITY OF BURBANK
CALIFORNIA
CITY OF BURBANK
CALIFORNIA
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Burbank 22 Annual Comprehensive Financial Report Cover.pdf 1 6/20/2022 10:25:25 AM
ABOUT THE COVER
The City of Burbank Fiscal Year 2021-22 Annual Comprehensive Financial Report book cover and tabs feature initiatives aimed at supporting Burbank businesses and enhancing retention and expansion – especially those most impacted by statewide stay-at-home orders during the pandemic. In May of 2020, the City Council adopted the Economic Recovery Plan to help mitigate the negative impacts of the COVID-19 pandemic. Initiatives in the Plan included the Burbank Together at Home Campaign; Small Business Loan Programs, expanded outdoor dining on sidewalks, parking lots and in street dining parklets; and the unveiling of a bronze monumental Batman statue to encourage social media engagement.
Economic recovery initiatives are still underway in the new fiscal year, and include:
• The Burbank Together Again campaign
• Business Retention and Visitation Program
• Chow Down Burbank Restaurant Campaign
• Burbank Tech Talks and the Future of Work Accelerator COVER LAYOUT:
Cassidy Allen
PHOTOGRAPHY:
Burbank Economic Development Department
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Burbank 22 Annual Comprehensive Financial Report Inside Cover.pdf 1 6/20/2022 10:25:53 AM
ANNUAL COMPREHENSIVE FINANCIAL REPORT
OF THE
CITY OF BURBANK
BURBANK, CALIFORNIA
FISCAL YEAR ENDED
June 30, 2022
Prepared by :
Financial Services Department
Jennifer Becker
Financial Services Director
Letter of Transmittal………………………………………………………………………………………………………………………………………………I Government Finance Officers' Association Certificate of Achievement for Excellence in Financial Reporting……………..………X Independent Auditors' Report…………………………………………………………………………………………………………………………………………………………………..1 Management's Discussion and Analysis………………………………………………………………………………………………………………………………..5 BASIC FINANCIAL STATEMENTS :
Statement of Net Position………………………………...……………………………………………………………………………………………………………………….17 Statement of Activities……………………………………………………………………………………………………………………………………………………..18 Balance Sheet - Governmental Funds ……………………………………………………………………………………………………………………………………..19 Statement of Net Position ……………………………………………………………………………………………………………………………………20 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ……………………………………………………………………………………………21 Funds to the Statement of Activities……………………………………………………………………………………………………………………………………23 Statement of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual - General Fund ………………………………………………………………………………………………..24 Statement of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual - Low/Moderate Income Housing Special Revenue Fund ……………………………………………………………………………………………………………26 Statement of Net Position - Proprietary Funds ………………………………...………………………………………………………………………………………………………………………………..27 Statement of Revenues, Expenditures, and Changes in Fund Net Position - Proprietary Funds ………………………………………………………………………………………29 Statement of Cash Flows - All Proprietary Fund Types ………………………………………………………………………………………………………………………30 Statement of Fiduciary Net Position - Fiduciary Fund …………………………………………………………………………………………………33 Statement of Changes in Fiduciary Net Position - Fiduciary Fund ………………………………………………………………………………………. 34 NOTES TO BASIC FINANCIAL STATEMENTS :
(1) Summary of Significant Accounting Policies………………………………………………………………………………………………………………………….35 (2) Reconciliation of Government-wide and Fund Financial Statements……………………………………………………………………………………45 (3) Stewardship, Compliance, and Accountability……………………………………………………………………………………………………………………..45 (4) Cash and Investments…………………………………………………………………………………………………………………………………………………………….46 (5) Capital Assets………………………………………………………………………………………………………………………………………………………………………….50 (6) Defined Contribution Plans……………………………………………………………………………………………………………………………………………………………….53 (7) Interfund Receivables, Payables, Advances, and Transfers…………………………………………………………………………………………………..54 (8) Long Term Liabilities………………………………………………………………………………………………………………………………………………………………56 (9) Receivables……………………………………………………………………………………………………………………………………………………………………………..64 (10) Commitments and Contingencies………………………………………………………………………………………………………………………………………..65 (11) Power Supply Expenses………………………………………………………………………………………………………………………………………………………………………..66 City of Burbank
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Reconciliation of the Balance Sheet of Governmental Funds to Net Position of Governmental Activities in the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
TABLE OF CONTENTS
INTRODUCTORY SECTION
FINANCIAL SECTION
City of Burbank
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
(12) Accrued Liabilities…………………………………………………………………………………………………………………………………………………………………73 (13) Deferred Compensation Plans……………………………………………………………………………………………………………………………………………..73 (14) Prepaid Items and Deposits………………………………………………………………………………………………………………………………………………………73 (15) Self-Insurance………………………………………………………………………………………………………………………………………………………………………….73 (16) Lease Obligations………………………………………………………………………………………………………………………………………………………………….74 (17) Pension Plans………………………………………………………………………………………………………………………………………………………………………….76 (18) Postemployment Benefits Other Than Pensions…………………………………………………………………………………………………………………….84 (19) Additional Information……………………………………………………………………………………………………………………………………………………………90 (20) Hedge Policies and Outstanding Hedge Contracts……………………………………………………………………………………90
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Pension Liability and Related Ratios - Miscellaneous Plan …………………………………………………..92 Schedule of Contributions - Miscellaneous Plan …………………………………………………………………………………………………………………….94 Schedule of Changes in the Pension Liability and Related Ratios - Police Plan ……………………………………………………………………..96 Schedule of Contributions - Police Plan ……………………………………………………………………………………………………………………………………..98 Schedule of Changes in the Pension Liability and Related Ratios - Fire Plan ……………………………………………………………………………100 Schedule of Contributions - Fire Plan ……………………………………………………………………………………………………………………………………………102 Schedule of Changes in the Net OPEB Liability and Related Ratios…………………………………………………………………………………………………………………………….104 Schedule of Contributions - OPEB…………………………………………………………………………………………………………………………….105 Non-Major Governmental Funds :
Combining Balance Sheet
Nonmajor Governmental Funds…………………………………………………………………………………………………………….108 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds……………………………………………………………………………………………………………………………………………………..111 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Nonmajor Governmental Funds……………………………………………………………………………………………………………………………………………………..114 Internal Service Funds:
Combining Statement of Net Position
Internal Service Funds ……………………………………………………………………………………………………………………………………….133 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds ……………………………………………………………………………………………………………………………………….135 Combining Statement of Cash Flows
Internal Service Funds ……………………………………………………………………………………………………………………………………….137
SUPPLEMENTARY INFORMATION
COMBINING FUND FINANCIAL STATEMENTS AND BUDGET AND ACTUAL SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (SUPPLEMENTARY INFORMATION):
FINANCIAL SECTION (Continued)
City of Burbank
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
(Unaudited)
Net Position by Component (accrual basis) - Last Ten Fiscal Years………………………………………………………………………………………………….141 Changes in Net Position (accrual basis) - Last Ten Fiscal Years……………………………………………………………………………………………..142 Fund Balances of Governmental Funds (modified accrual basis) - Last Ten Fiscal Years……………………………………………………………………………………………..146 Changes in Fund balances of Governmental Funds (modified accrual basis) - Last Ten Fiscal Years……………………………………………………………………………………………..147 Electricity Sold by Type of Customer - Last Ten Fiscal Years………………………………………………………………………………………….149 Electricity Rates - Last Ten Fiscal Years…………………………………………………………………………………………………………..150 Largest Electrical Customers………………………..……………………………………………………………………………………………………………..151 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years……………………………………………………………………………………….152 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years………………………………………………………………………………………………………..154 Schedule of Direct and Overlapping Debt……………………………………………………………………………………………………………………155 Legal Debt Margin Information - Last Ten Fiscal Years………………………………………………………………………………………………………..156 Pledged Revenue Coverage - Last Ten Fiscal Years……………………………………………………………………………………………………..157 Demographic and Economic Statistics - Last Ten Fiscal Years……………………………………………………………………………………………………………159 Principal Employers - Current and Nine Years Ago……………………………………………………………………………………………………………160 Full-Time and Part-Time City Employees by Function…………………………………………………………………………………………..161 Operating Indicators by Function - Last Ten Fiscal Years………………………………………………………………………………………………162 Capital Asset Statistics - Last Ten Fiscal Years……………………………………………………………………………………………………………….164 Schedule of Credits……………………………...……………………………………………………………………………………………………………….166 10 17
18 11
12 13
14 15
16 9
STATISTICAL SECTION
Table
1 2
3 4
5 6
7 8
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INTRODUCTORY SECTION
INTRODUCTORY SECTION
The Introductory Section of the Annual Comprehensive Financial Report provides general information of the City of Burbank, California’s structure and its personnel, as well as information useful in assessing the City’s financial condition. This section includes the:
•
Letter of T
ransmittal
• City’s Organiza
tional Chart and List of Principal Officials
• Government Financ
e Officers Association Certificate of
Achievement for Excellence in Financial Reporting
ELECTED OFFICIALS
AND
PRINCIPAL OFFICERS
ZIZETTE MULLINS
VICE MAYOR
COUNCIL MEMBER
COUNCIL MEMBERCOUNCIL MEMBER
KRYSTLE PALMER
NICK SCHULTZ
CITY CLERK CITY TREASURER
MAYOR
JESS TALAMANTES KONSTANTINE ANTHONY
SHARON SPRINGERBOB FRUTOS
APPOINTED OFFICIALS
Justin Hess, City Manager
Joseph McDougall, City Attorney
Ken Berkman, Public Works Director
MANAGEMENT TEAM
Judie Wilke, Assistant City Manager
Dawn Roth Lindell, Burbank Water & Power General Manager Kevin Gray, Chief Information Officer
Patrick Prescott, Community Development Director
Jennifer Becker, Financial Services Director
Eric Garcia, Fire Chief
Michael Albanese, Police Chief
Elizabeth Goldman, Library Services Director
Betsy McClinton, Management Services Director
Marisa Garcia, Parks & Recreation Director
City of Burbank
City Council
Housing Authority
Parking Authority
City Clerk
City
Treasurer
Planning
Board
City
Manager
Parks &
Recreation
Board
Library
Trustees
City
Attorney
Civil Service
Board
Information
Technology
Financial
Services
Community
Development
Public
Works
Police
Parks &
Recreation
Boards, Committees and Commissions in Burbank Municipal Code (Not in City Charter) Art In Public Places Committee Cultural Arts Commission Senior Citizen Board Board of Building and Fire Code Appeals Heritage Commission Sustainable Burbank Burbank Housing Corporation Infrastructure Oversight Board Transportation Commission Burbank Water and Power Board Landlord-Tenant Commission Youth Board Community Development Goals Committee Police Commission Management
Services
Fire
Burbank
Water &
Power
Library
Services
FINANCIAL SECTION
FINANCIAL SECTION
The Financial Section of the Annual Comprehensive Financial Report contains the following:
• Independent Auditor
’s Report
• Required Supplementary Inf
ormation –
Management’s Discus
sion and Analysis (MD and A)
• City’s basic financial sta
tement, which includes the following:
- The Government-wide Financial Statements
- Fund Financial Stat
ements
- Notes to Basic Financial S
tatements
• Required Supplementary Information –
Schedule of Funding Progres
s of the City’s Defined Benefit
Pension Plan
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDIT
ORS’ REPORT
City Council Members
City of Burbank
Burbank, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Burbank (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Burbank as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison of the General fund and the Low/Moderate Income Housing special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Burbank 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.
Emphasis of Matter
As discussed in Note 1 to the financial statements, effective July 1, 2021, the City adopted new accounting guidance, GASB No. 87, Leases. The guidance requires lessees to recognize right-to-use asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with l ease terms greater than twelve months. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
City Council Members
City of Burbank
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Burbank’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of mate rial 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 circumst ances, but
not for the purpose of expressing an opinion on
the effectiveness of City of Burbank’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting polic ies 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 o ur judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Burbank’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.
City Council Members
City of Burbank
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of changes in the net pension liability and related ratios of the defined benefit plans, the schedules of contributions of the defined benefit plans, the schedule of changes in net OPEB liability and related ratios and the schedule of contributions of the OPEB plan be presented to supplement the basic financ ial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Burbank’s basic financial statements. The individual fund schedules and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual fund schedules and combining financial statements funds is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
City Council Members
City of Burbank
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 15, 2023, on our consideration of the City of Burbank’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Burbank’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Burbank’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
February 15, 2023
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
5 As management of the City of Burbank, California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 20 22. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on page I of this report.
Financial Highlights
• The assets and deferred outfl ows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $ 1,321,547 (net position), which was comprised of net investment in capital assets of $1, 084,917, restricted net position of $9 7,361, and unrestricted net position of $139,269. Of this amount, $ 57,022 (unrestricted net position) may be used to meet the City’s ongoing obligations.
• The City’s total net position increased by $66,041 during the current fiscal year. This growth was driven by the governmental activities of the City, accounting for $64,977 of the increase . The increase was mainly attributable to the positive investment return on the City’s pension assets as of June 30, 2022, which resulted in a decrease in the City’s net pension liability. Business-type activities accounted for an increase of $1,064, with the Water Utility and Water Reclamation and Sewer Funds accounting for the majority of that growth.
• As of June 30, 20 22, the City’s governmental funds reported co mbined fund balances of $ 253,043, an increase of $21 from the prior year. Of fund balances, $111,088 or approximately 44% of total fund balances are unassigned and available for spending at the government’s discretion.
• At the end of the current fiscal year, un assigned fund balance for the General Fund was $ 111,260 or 62% of total General Fund expenditures.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government -wide financial statements 2 ) fund financial statements and 3) notes to basic financial statements . This report also contains required supplementary information and an unaudited statistical section in addition to the basic financial statements.
Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all the City’s assets, deferred outflows, liabilities and deferred inflows, with the difference between the four reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the city is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues ( governmental activities). The governmental activities of the City include general government, police, fire, public works, community development, parks and recreation, library, and interest on long- term debt. The business-type activities of the City include operations of its electric, water, water reclamation and sewer, refuse collection and disposal.
The government-wide financial statements can be found on page 17 of this report.
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
6 Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
All the funds of the City can be divided into two categories: governmental funds and proprietary funds .
Governmental Funds . Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund s financial statements foc us on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balance s provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 22 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the General Capital Projects Fu nd, and the Low and Moderate Income Housing Special Revenue Fund, each of which are considered to be major funds. Data from the other 19 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements in the Non-major Governmental Funds section of this report.
The City adopts an annual appropriated budget for all its funds. A budgetary comparison statement is provided for all funds with an annually adopted budget. The budgetary comparison statement for the General Fund is in the basic financial statements . All other funds with legally adopted annual budgets are in the supplementary information section.
Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its electric, water, water reclamation and sewer, and refuse collection and disposal.
Internal service funds are an accounting device used to accumulate and allocat e costs internally among the City’s various functions.
The City uses internal service funds to account for the following activities:
• Self-insurance activities, including:
- General liability insurance
- Workers’ compensation insurance
• Vehicle operation and maintenance
• Office equipment operation and maintenance
• Municipal Infrastructure improvements and maintenance
• Communication equipment operation and maintenance
• Information Technology infrastructure and operation
Because these services predominately benefit governmental rather than business -type functions, they have been included within governmental activities in the government-wide financial statements.
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
7 Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the electric, water, water reclamation and sewer, and refuse collection and disposal , all of w hich are considered major funds of the City.
Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the Internal Service Funds section of this report.
The basic proprietary fund financial statements can be found on page 27 of this report.
Notes to the Basic Financial Statements. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the basic financial statements can be found on page 35 of this report.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees. Required Supplementary Information can be found on page 92 of this report.
Supplementary information on non-major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on page 108 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1,321,547 at the close of the most recent fiscal year.
The largest portion of the City’s net position (82%) reflects its net investment in capital assets (e.g., land, buildings, utility and general government infrastructure, machinery and equipment, etc.), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's net investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provi ded from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
8 TABLE 1- The City of Burbank’s Net Position as of June 30, 2022 and 2021 (000’s):
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position.
The total net position was positive as a whole for the City, as well as for its separate governmental and business - type activities.
Governmental Activities Business-type Actvities Total
Assets : 2022 2021 2022 2021 2022 2021
Current and other assets 474,323 $ 438,360 $ 268,568 255,431 742,891 693,791 Capital assets 691,567 684,027 488,182 481,462 1,179,749 1,165,489 Total assets 1,165,890 1,122,387 756,750 736,893 1,922,640 1,859,280
Deferred Outflows of Resources 45,876 52,938 16,556 19,886 62,432 72,824 Liabilities :
Current and other liabilities 45,484 33,333 41,728 31,801 87,212 65,134 Long-term liabilities 219,363 358,692 186,840 231,038 406,203 589,730 Total liabilities 264,847 392,025 228,568 262,839 493,415 654,864 Deferred Inflows of Resources 116,408 17,766 53,702 3,968 170,110 21,734 Net Position :
Net Investment in capital assets 687,067 682,223 397,850 389,957 1,084,917 1,072,180 Restricted 86,422 81,986 10,939 9,243 97,361 91,229 Unrestricted 57,022 1,325 82,247 90,772 139,269 92,097 Total net position 830,511 $ 765,534 $ 491,036 489,972 1,321,547 1,255,506 City Of Burbank
Management’s Discussion and Analysis
(in thousands)
9 TABLE 2-The City’s Changes in Net Position (000’s) for the years ended June 30, 2022 and 2021:
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Revenues :
Program revenues :
Charges for services 35,180$ 29,340$ 253,701 269,986 288,881 299,326 Operating grants
and contributions 52,221 68,456 2,316 6 54,537 68,462 Capital grants
and contributions 415 - 3,243 4,274 3,658 4,274 General revenues :
Property tax 62,088 61,375 - - 62,088 61,375 Sales tax 74,398 59,300 - - 74,398 59,300 Utility users tax 16,392 15,596 - - 16,392 15,596 Investment earnings (10,641) 5,393 (4,957) 1,041 (15,598) 6,434 Other 28,195 35,016 1,518 3,064 29,713 38,080 Total revenues 258,248 274,476 255,821 278,371 514,069 552,847 Expenses :
General government 9,479 16,578 - - 9,479 16,578 Police 51,038 62,074 - - 51,038 62,074 Fire 32,432 41,232 - - 32,432 41,232 Public works 19,428 36,837 - - 19,428 36,837 Community Development 53,055 61,168 - - 53,055 61,168 Parks & Recreation 21,937 24,880 - - 21,937 24,880 Library 6,169 7,759 - - 6,169 7,759 Interest on long-term debt 147 282 - - 147 282 Water reclamation & sewer - - 14,300 17,491 14,300 17,491 Nonmajor funds - - - - - - Electric utility - - 189,599 197,359 189,599 197,359 Water utility - - 32,291 32,679 32,291 32,679 Refuse collection & disposal - - 18,153 18,307 18,153 18,307 Total expenses 193,685 250,810 254,343 265,836 448,028 516,646 Increase (decrease) in net
position before transfers 64,563 23,666 1,478 12,535 66,041 36,201 Transfers 414 (20) (414) 20 - - Increase (decrease) in
net positions 64,977 23,646 1,064 12,555 66,041 36,201 Net position, July 1,
as previously stated 765,534 741,888 489,972 467,891 1,255,506 1,209,779 Prior period adjustment - - - 9,526 - 9,526 Net position, June 30 830,511$ 765,534 $ 491,036 489,972 1,321,547 1,255,506 City Of Burbank
Management’s Discussion and Analysis
(in thousands)
10 Governmental Activities. Governmental activities increased the City’s net position by $64,977, attributable to the positive investment return on the City’s pension assets that resulted in a decrease in the City’s net pension liability, receipt of several one-time revenues, and faster than anticipated recovery of recurring revenues from the Pandemic.
Total expenses decreased by $57,125 (23%), mainly due to the decrease in pension expense, while program revenues decreased by 10% due to a decrease in operating grants and contributions of $16,235 from the prior year.
General revenues , which encompasses Property Tax, Sales Tax, Utility Users Tax, other taxes, and investment earnings, decreased by 3.5% from the prior year due to the decrease in fair value of investments per GASB 31.
• General revenues such as property, business, and sales taxes are not shown by program, but are effectively used to support program activities Citywide. For governmental activities overall, sales taxes are the largest single source of funds (28.8%), followed by property taxes (24%).
Charges for
Services
13.6%
Operating Grants
& Contributions
20.4%
Property Tax
24.0%
Sales Tax
28.8%
Utility Users Tax
6.3%
Investment
Earnings
-4.1%
Other
10.9%
Governmental Activities
Revenue Sources
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
11 • The chart above illustrates the City’s governmental expenses and revenues by source. Public Safety (Police and Fire departments, 43%) is the largest function, followed by Environmental (Public Works and Community Development departments, 37%) with Culture and Recreation third (Library, and Parks and Recreation departments, 15%).
Business-type Activities. Business–type activities increased the City’s net position by $1,064, demonstrating that business-type activities had revenues sufficient to cover operations. The overall increase in net position was largely attributable to an increase in operating grants and contributions by $2,310 (385%) from the prior year and the positive investment return on the City’s pension assets that resulted in a decrease in the City’s net pension liability.
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
12 Electric Utility
71.9%
Water Utility
13.4%
Water
Reclamation and
Sewer
7.2%
Refuse Collection
and Disposal
7.5%
Business-Type Activities
Operating Revenues
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
13 Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $253,045. Approximately 44% of fund balances ($111,088) constitute unassigned fund balances. The remainder of the fund balance is reserved to indicate that it is not available for new spending because it has been committed, assigned, or is nonspendable due to the following:
1) To liquidate contracts and purchase orders of the prior period ($35,474) 2) Committed for transportation purposes ($18,508)
3) Is nonspendable due to asset not existing in easily liquidatable form ($1,554) 4) Restricted for housing purposes ($47,247)
5) Restricted for pensions ($9,793)
6) For a variety of other restricted purposes ($29,379)
The General Fund is the chief operating fund of the City. During the current fiscal year, the total fund balance of the General Fund increased $17,294 due to an increase in recurring revenues, combined with the unanticipated non - recurring revenues and overall expedited Pandemic recovery, and higher budgetary savings due to staffing shortages.
At the end of FY 20 22 the total General Fund balance was $ 130,042, while the unassigned fund balance was $111,260. As a measure of General Fund liquidity, it may be useful to compare both the un assigned fund balance and total fund balance to total fund expenditures. Un assigned fund balance represents 62% of total Ge neral Fund expenditures of $179,226, while total fund balance represents 73% of that same amount.
The Low and Moderate Income Housing Special Revenue (Low/Mod) Fund holds all capital project housing activities.
At the end of the current fiscal year, the unassigned fund balance was $0, while total fund balance of $48,138 is restricted for specific uses. Total fund balance represents 7,581% of total Low/Mod Fund expenditures of $635. The fund balance of the Low/M od fund decreased by $ 160 during the current fiscal year due to the fair value loss on investments per GASB 31.
The General Capital Projects Fund holds all general City capital project activity. At the end of the current fiscal year, the unassigned fund balance was $0, while total fund balance was $28,361. Total fund balance represents 2,982% of General Capital Projects Fund expenditures of $ 951. The fund balance of the General Capital Projects Fund decreased by $2,193 during the current fiscal year primarily due to the fair value loss on investments per GASB 31, but also due to a delay in grant reimbursements.
Proprietary Funds. The City’s Proprietary Funds provide the same type of information found in the government wide financial statements, but in more detail.
Enterprise Funds. As of June 30, 2022, the unrestricted net position of the enterprise funds totaled $83,365 and the total decrease in unrestricted net position was $7,407.
The Water Reclamation and Sewer fund holds the City’s sewer system enterprise. At the end of the current fiscal year, the unrestricted net position was $38,015, while total net position was $94,105. The unrestricted net position represents 271% of total Water Reclamation and Sewer fund operating expenses of $14,044, while total net position represents 670% of that same amount. The net position of the Water Reclamation and Sewer fund increased by $2,607 during the current fiscal year due to a decrease in the net pension liability.
City Of Burbank
Management’s Discussion and Analysis
(in thousands)
14 The Electric Utility fund holds the City’s Electric power and distribution system. At the end of the current fiscal year, the unrestricted net position was $20,280, while total net position was $299,412. The unrestricted net position represents 11% of total Electric Utility fund operating expenses of $186,422, while total net position represents 161% of that same amount. The net position of the Electric Utility fund decreased by $3,579 during the current fiscal year due to the partial recovery from the Pandemic, higher fuel costs, and higher power supply costs.
The Water Utility fund holds the City’s water system enterprise. At the end of the current fiscal year, the unrestricted net position was $11,001, while total net position was $70,709. The unrestricted net position represents 37% of total Water Utility fund expenses of $29,867, while total net position represents 237% of that same amount. The net position of the Water Utility fund increased by $2,661 during the current fiscal year primarily due to the decrease in net pension liability, and an increase of assets due to the issuance of the 2021 Water bond, which paid off the Water Resources Board loans in FY2021-22.
The Refuse Collection and Disposal fund holds the City’s refuse collection and disposal enterprise. At the end of the current fiscal year, the unrestricted net position was $14,069, while total net position was $27,928. The unrestricted net position represents 79% of total Refuse Collection and Disposal fund expenses of $17,888, while total net position represents 156% of that same amount. The net position of the Refuse Collection and Disposal fund increased by $493 during the current fiscal year from a reduction of liabilities due to paying off the 2012 Waste Disposal bond and the decrease in net pension liability.
Internal Service Funds. The City’s internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its self- insurance activities, including general liability, and workers’ compensation, vehicle operations and maintenance, office equipment operations and maintenance, infrastructure improvements and maintenance, communication equipment operation and maintenance, and information technology infrastructure and operation. As of June 30, 2022, the unrestricted net position of the internal service funds was $126,290 and the total decrease in net position for these funds was $545. Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.
General Fund Budgetary Process
The City adopts an annual appropriated operating budget for its General fund and reports the results of operations on a budget comparison basis.
In preparing its budget, the City projects its revenues using realistic but conservative methods so as to budget its expenditure appropriations and activities in a prudent manner. The City Council adopts budget adjustments during the fiscal year to reflect both changed priorities and availability of additional revenues to allow for expansion of existing programs. During the year, the City Council amended the originally adopted budget to appropriate for various grants, including Urban Areas Security Initiative (UASI), Department of Justice (DOJ), nutrition, and homelessness.
In addition, amendments were made for Fire Department strike team responses, donations received for Central Library improvements, and medical services/COVID testing.
Capital Asset and Debt Administration
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities amounts to $1,179,749 (net of accumulated depreciation of $1,030,831) as of June 30, 2022, and $1,167,808 (net of accumulated depreciation of $981,293) as of June 30, 2021. This investment in capital assets includes land, buildings, utility systems, improvements other than buildings, infrastructure (roads, sidewalks, land held under easement, streetlights, etc.), machinery and equipment, and construction in progress.
The City has adopted a multi-year capital improvement program totaling $739 million over the next five years including FY 2022-23 appropriations of $123 million and prior years appropriation of $229 million. Approximately $387 million in future year appropriations will be required to complete all the projects included in this year’s capital City Of Burbank
Management’s Discussion and Analysis
(in thousands)
15 improvement program budget. The City budgets these projects in 1 1 major categories: technology infrastructure, municipal facilities, parks and recreation, refuse collection and disposal, traffic transportation and pedestrian access, wastewater, communications, electric utility, SCPPA, street lighting, and water utility. Among these categories, the major projects that are planned for the fiscal year 2022-23 include $9.7 million for municipal facilities, $3.3 million for parks and recreation, $7.3 million for technology infrastructure, $9.5 million for transportation improvements and $93.2 million for various projects in the electric, water, wastewater, and refuse utility funds.
Table 3-The City’s capital assets (net of accumulated depreciation) for June 30, 2022 and 2021:
Additional information on the City’s capital assets can be found in Note 5 on pages 50-53.
Lease Assets. The City’s leased assets for the governmental and business -type activities as of June 30, 2022 is $2,063, net of $256 accumulated amortization. These assets included the following buildings and equipment:
• Communication Equipment Replacement rooftop lease agreement that resulted in recording a building lease asset in the amount of $540.
• Burbank Water and Power leases for gas turbine, dark fiber, colocation space, and ground lease resulting in building and equipment lease assets of $1,779.
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Capital assets not
being depreciated :
Land 57,759$ 57,759$ 11,813 11,813 69,572 69,572 Land held under easements 345,277 345,277 - - 345,277 345,277 Construction in progress 11,751 30,984 45,236 38,591 56,987 69,575 Internal service fund assets
Construction
in progress 1,980 1,119 - - 1,980 1,119 Total capital assets not
being depreciated : 416,767 435,139 57,049 50,404 473,816 485,543 Capital assets being depreciated :
Land improvements 9,930 9,930 12,146 12,146 22,076 22,076 Accumulated depreciation (7,921) (7,801) (11,861) (11,545) (19,782) (19,346) Rights to purchased power - - 1,335 1,335 1,335 1,335 Accumulated depreciation - - (994) (950) (994) (950) Buildings & improvements 231,177 223,231 874,779 848,732 1,105,956 1,071,963 Accumulated depreciation (176,988) (170,859) (463,601) (441,955) (640,589) (612,814) Infrastructure 398,748 365,003 - - 398,748 365,003 Accumulated depreciation (202,415) (191,656) - - (202,415) (191,656) Machinery & other 7,573 6,918 104,662 103,453 112,235 110,371 Accumulated depreciation (6,820) (6,323) (86,913) (80,158) (93,733) (86,481) Lease assets - - 1,779 1,779 1,779 1,779 Accumulated depreciation - - (199) - (199) - Internal service fund assets
Buildings & improvements 6,268 6,268 6,268 6,268 Accumulated depreciation (3,541) (3,277) (3,541) (3,277) Machinery & other 87,827 84,223 87,827 84,223 Accumulated depreciation (69,521) (66,769) (69,521) (66,769) Lease assets 540 540 540 540 Accumulated depreciation (57) - (57) - Total capital assets being
depreciated, net 274,800 249,428 431,133 432,837 705,933 682,265 Total net capital assets 691,567 $ 684,567 $ 488,182 483,241 1,179,749 1,167,808 City Of Burbank
Management’s Discussion and Analysis
(in thousands)
16 Table 4-The City’s lease assets for June 30, 2022 and 2021:
Additional information on the City’s lease assets can be found in Note 16 on pages 74-75.
Long-Term Liabilities. At the end of the current fiscal year, the City had long-term liabilities totaling $205,747, including current portion of $ 16,067. Of this amount, $175 represents pension obligation bonds , issued to pay for police and fire unfunded accrued actuarial liability , $113,390 in revenue bonds issued for various business -type activities, $45,709 in self -insurance funds claims payable, $26,6 20 in compensated absences , $17,986 in landfill closure/post-closure costs, and $1,867 in lease payable.
Table 5-The City’s outstanding long-term liabilities for June 30, 2022 and 2021:
Ratings on outstanding debt (not including debt considered fully defeased) are provided below. The ratings below are from Moody’s Investor Services and Standard and Poor’s. (Note that the insured rating is given rather than the underlying rating on insured issues)
Table 6-The City’s Debt Ratings:
Debt Issue Moody’s S & P
▪ 2004 Pension Obligation - -
▪ 2010B Electric Revenue Aa3 AA-
▪ 2010B Water Revenue - AAA
▪ 2014 Wastewater Aa2 AA+
▪ 2015 Successor Agency - AA-
▪ 2017 Successor Agency - AA-
▪ 2021 Water Revenue - AA-
Additional information on the City’s long-term liabilities can be found in Note 8 on pages 56-64.
Request for Information
This financial report is designed to provide a general overview of the City’s finances for readers of the financial statements. Additional financial information is available on our website at burbankca.gov. Questions concerning any of the information in this report or request for additional financial information should be addressed to the Financial Services Department, 301 E. Olive Avenue, Burbank, CA 91502.
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Buildings 540 - 628 - 1,168 - Equipment - - 1,151 - 1,151 - Total Lease Assets 540 - 1,779 - 2,319 - Less: Accumulated amortization (57) - (199) - (256) - Net of amortization 483 - 1,580 - 2,063 - Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Claims payable 45,709 $ 43,402 $ - - 45,709 43,402 Compensated absences 17,434 17,364 9,186 9,527 26,620 26,891 Landfill - - 17,986 17,035 17,986 17,035 Lease payable 495 540 1,372 1,535 1,867 2,075 Loan payable - - - 5,530 - 5,530 Pension Obligation bonds 175 2,685 - - 175 2,685 Revenue bonds - - 113,390 87,549 113,390 87,549 Total long-term liabilities 63,813 $ 63,991 $ 141,934 121,176 205,747 185,167 Governmental Business-type
Activities Activities Total
Assets :
Pooled cash and cash investments 388,327$ 158,556 546,883 Receivables, net 31,568 25,267 56,835 Internal balances 834 (834) -
Inventories 627 9,569 10,196
Prepaid items and deposits 2,448 20,884 23,332 Rectricted cash and investments 9,793 45,598 55,391 Derivative Instruments - 2,020 2,020 Advances receivable from Burbank Successor Agency 1,340 - 1,340 Developer loans receivable 37,495 - 37,495 Lease receivable 1,891 5,058 6,949 OPEB asset 2,450 2,450
Capital assets not being depreciated 416,767 57,049 473,816 Capital assets, net of accumulated depreciation 274,800 431,133 705,933 Total assets 1,165,890 756,750 1,922,640
Deferred Outflows of Resources :
Deferred amounts from OPEB 7,138 2,128 9,266 Deferred amounts from pension 38,738 14,428 53,166 Deferred amounts from leases -
Total deferred outflows 45,876 16,556 62,432 Liabilities :
Accounts payable 18,426 15,337 33,763 Accrued liabilities 10,753 5,848 16,601 Intergovernmental payables 182 - 182 Unearned revenue 8,181 974 9,155 Deposits 6,614 19,066 25,680
Advances payable to Burbank Successor Agency 1,327 - 1,327 Bond interest payable 1 503 504 Long-term liabilities:
Due within one year - other long-term liabilities 12,915 3,152 16,067 Due in more than one year:
Net pension liability 142,780 44,066 186,846 Net OPEB liability 12,770 840 13,610 Long-term liabilities, net of current portion 50,898 138,782 189,680 Total liabilities 264,847 228,568 493,415 Deferred Inflows of Resources:
Deferred amounts from OPEB 17,106 8,449 25,555 Deferred amounts from pension 97,411 38,175 135,586 Deferred amounts from derivative instruments 2,020 2,020 Deferred amounts from leases 1,891 5,058 6,949 Total deferred inflows 116,408 53,702 170,110 Net Position :
Net investment in capital assets 687,067 397,850 1,084,917 Restricted for :
Public education 1,174 - 1,174 Public safety 709 - 709
Pension plan 9,793 - 9,793
Public benefit - 9,315 9,315 Environmental 74,746 1,624 76,370
Unrestricted 57,022 82,247 139,269
Total net position 830,511$ 491,036 1,321,547 See accompanying notes to basic financial statements
17 City of Burbank
STATEMENT OF NET POSITION
June 30, 2022
(in thousands)
Net (Expenses) Revenues and
Program Revenues Changes in Net Position
Operating Capital
Functions / Programs Charges for Contributions Contributions Governmental Business-Type Expenses Services and Grants and Grants Activities Activities Total Governmental Activities :
General government 9,479$ 1,824 5,155 - (2,500) - (2,500) Police 51,038 3,879 2,054 - (45,105) - (45,105) Fire 32,432 5,158 1,585 - (25,689) - (25,689) Public works 19,428 2,243 4,549 - (12,636) - (12,636) Community development 53,055 12,439 38,123 415 (2,078) - (2,078) Parks and recreation 21,937 9,618 725 - (11,594) - (11,594) Library 6,169 19 30 - (6,120) - (6,120) Interest on long-term debt 147 - - - (147) - (147) Total Governmental Activities 193,685 35,180 52,221 415 (105,869) - (105,869) Business-Type Activities :
Water Reclamation and Sewer 14,300 18,225 - - - 3,925 3,925 Electric Utility 189,599 182,390 1,783 2,766 - (2,660) (2,660) Water Utility 32,291 33,959 378 477 - 2,523 2,523 Refuse Collection & Disposal 18,153 19,127 155 - - 1,129 1,129 Total Business-Type Activities 254,343 253,701 2,316 3,243 - 4,917 4,917 Total 448,028$ 288,881 54,537 3,658 (105,869) 4,917 (100,952) General revenues :
Taxes:
Property Tax 62,088 - 62,088
Sales Tax 74,398 - 74,398
Utility Users Tax 16,392 - 16,392
Franchise Tax 5,235 - 5,235
Transient Occupancy Tax 10,526 - 10,526
Transient Parking Tax 3,833 - 3,833
Other taxes 14,344 - 14,344
Unrestricted investment earnings (10,641) (4,957) (15,598) Grants/contributions not restricted to specific programs 180 - 180 Other (5,923) 1,518 (4,405)
Transfers 414 (414) -
Total general revenues, contributions, and transfers 170,846 (3,853) 166,993 Change in net position 64,977 1,064 66,041
Net position, July 1, 2021 765,534 489,972 1,255,506 Net position, June 30, 2022 830,511$ 491,036 1,321,547 See accompanying notes to basic financial statements
18 City of Burbank
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2022
(in thousands)
Special Capital
Revenue Projects Nonmajor Total
Low/Mod Govern- Govern-
Income General mental mental
General Housing Cap. Proj. Funds Funds
Assets :
Pooled cash and cash investments 129,246$ 9,813 28,394 49,806 217,259 Rectricted cash for pensions 9,793 - - - 9,793 Receivables, net 21,094 38,153 119 6,087 65,453 Lease receivables 1,889 2 - 1,891 Interfund receivables 202 - - 264 466 Inventories 28 - - 10 38 Prepaid items and deposits 129 - - 113 242 Advances receivable-successor agency 1,072 268 - - 1,340 Total assets 163,453$ 48,234 28,515 56,280 296,482
Liabilities :
Accounts payable 4,812 50 152 8,685 13,699 Accrued liabilities 10,753 - - - 10,753 Unearned revenue 8,181 8,181
Interfund payable 3 46 - 743 792 Intergovernmental payables 182 - - - 182 Deposits 6,264 - - 350 6,614 Advances payable-general city - - - - - Advances payable-successor agency 1,327 - - - 1,327 Total liabilities 31,522 96 152 9,778 41,548 Deferred inflow of resources:
Deferred inflow of resources from leases 1,889 - 2 - 1,891 Fund balances :
Nonspendable:
Advances 1,072 - - - 1,072 Inventories 28 - - 10 38 Change and imprest 202 - - - 202 Prepaid items and deposits 129 - - 113 242 Restricted :
Transportation - - - 20,446 20,446 Federal and state grants - - - 2,822 2,822 Public education in government 1,174 - - - 1,174 Public safety 145 - - 564 709 Housing - 47,247 - - 47,247 Pensions 9,793 - - - 9,793 Capital projects 17 - - 4,211 4,228 Committed :
Transportation - - - 18,508 18,508 Assigned (continuing appropriations) 6,222 891 28,361 - 35,474 Unassigned 111,260 - - (172) 111,088 Total fund balances 130,042 48,138 28,361 46,502 253,043 Total liabilities, deferred inflow of
resources and fund balances 163,453$ 48,234 28,515 56,280 296,482 See accompanying notes to basic financial statements
BALANCE SHEET
City of Burbank
June 30, 2022
19 (in thousands)
GOVERNMENTAL FUNDS
Fund balances of governmental funds 253,043$
Amounts reported for governmental activities in the statement of net position are different because :
668,071
(16,561)
(1)
Deferred outflows of resources 7,138
Deferred inflows of resources (17,106)
Net OPEB liability (12,770) (22,738)
150,150
Deferred outflows of resources $ 38,738
Deferred inflows of resources (97,411)
Net Pension liability (142,780) (201,453)
Net position of governmental activities 830,511$
See accompanying notes to basic financial statements
Pension related debt applicable to the City's government activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of recourses and deferred inflows of resources related to pensions are only reported in the Statement of Net Position as the changes in these amounts affects only the government-wide statements for governmental activities:
20 Internal service funds are used by management to charge the costs of the City's self- insurance programs and equipment rental and replacement operations to individual funds.
The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Including $1,118 allocated to business-type activities. Net position, including capital assets, is shown here.
City of Burbank
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO NET POSITION OF GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION June 30, 2022
(in thousands)
Long term liabilities are not due and payable in the current period and therefore are not reported in governmental funds.
Accrued interest payable for the period between the final interest payment date and the end of the fiscal year is not reported as a payable in the governmental funds.
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in governmental funds (Excluding internal service funds capital assets of $23,496).
OPEB related debt applicable to the City's governmental activities is not due and payable in the current period and accordingly is not reported as fund liabilities. Deferred outflows of resources related to OPEB are only reported in the statement of net position, as the changes in these amounts affect only the government-wide statements for governmental activities.
Special Capital
Revenue Projects Nonmajor Total
Low/Mod Govern- Govern-
Income General mental mental
General Housing Cap. Proj. Funds Funds
Revenues :
Taxes 150,323$ - - 8,173 158,496 Licenses & permits 9,799 - - - 9,799 Fines, forfeitures and penalties 1,667 - - - 1,667 Use of money or property (3,643) (269) (818) (737) (5,467) Intergovernmental 20,605 - 180 22,887 43,672 Charges for services 22,954 744 - 27,146 50,844 Other revenues - - 2 - 2 Total revenues 201,705 475 (636) 57,469 259,013 Expenditures :
General government :
City council 310 - - - 310 City attorney 3,668 - - - 3,668 City clerk 853 - - - 853 City treasurer 143 - - - 143 City manager 1,136 - - - 1,136 Financial services 1,614 - - - 1,614 Management services 2,611 - - - 2,611 Administrative services - 635 - 545 1,180 Non-departmental 8,770 - - - 8,770 Total general government 19,105 635 - 545 20,285 Public safety :
Police 59,340 - - 315 59,655 Fire 38,993 - - - 38,993 Total public safety 98,333 - - 315 98,648 Environmental :
Community development 12,387 - - 42,560 54,947 Public works 13,703 - - - 13,703 Total environmental 26,090 - - 42,560 68,650 Culture and recreation :
Library 7,622 - - - 7,622 Parks and recreation :
Parks 13,974 - - - 13,974 Recreation 9,126 - - - 9,126 Special community activities 2,307 - - - 2,307 Total parks and recreation 25,407 - - - 25,407 Total culture and recreation 33,029 - - - 33,029 See accompanying notes to basic financial statements ( Continued ) City of Burbank
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2022
(in thousands)
21 Special Capital
Revenue Projects Nonmajor Total
Low/Mod Govern- Govern-
Income General mental mental
General Housing Cap. Proj. Funds Funds
City of Burbank
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2022
(in thousands)
Capital outlay :
Street improvements - - - 7,747 7,747 General capital improvements - - 951 539 1,490 Total capital outlay - - 951 8,286 9,237 Debt service :
Principal retirement 2,510 - - - 2,510 Interest and finance charges 159 - - - 159 Total debt service 2,669 - - - 2,669 Total expenditures 179,226 635 951 51,706 232,518 Excess (deficiency) of revenues
over expenditures 22,479 (160) (1,587) 5,763 26,495 Other financing sources (uses) :
Transfers in 815 - 102 349 1,266 Transfers out (6,000) - (708) (457) (7,165) Total other financing sources (uses) (5,185) - (606) (108) (5,899) Net change in fund balances 17,294 (160) (2,193) 5,655 20,596 Fund balances, July 1, 2021 112,748 48,298 30,554 40,847 232,447 Fund balances, June 30, 2022 130,042$ 48,138 28,361 46,502 253,043 See accompanying notes to basic financial statements
22 Net change in fund balances - total governmental funds 20,596$ Amounts reported for governmental activities in the statement of net activities are different because :
5,607
2,460
12 2,245
(149)
573
33,633
Change in net position of governmental activities 64,977$ See accompanying notes to basic financial statements
23 City of Burbank
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2022
(in thousands)
Some revenues reported in the statement of activities do not increase current financial resources in the fund financial statements and therefore are not reported as revenues in governmental funds.
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives, and reported as depreciation expense. This is the amount by which depreciation ($17,526) was exceeded by capital outlay and deletions ($23,133).
Pension expense reported in the governmental funds includes the annual required contributions. In the Statement of Activities, pension expense includes the changes in the net pension liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources.
Accrued interest payable for the period between the final interest payment date and the end of the fiscal year is not reported as an expense in the governmental fund statements. This difference between the prior year's accrued interest expense and the current year's accrued interest expense is reported in the statement of activities.
Other Post Employment Benefit (OPEB) expense reported in the governmental funds includes the changes in the net OPEB liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources.
The issuance of long-term debt such as bonds provides current financial resources to governmental funds, while the repayment of the principal ($2,510) of long-term debt consumes current financial resources. Neither transaction, however, has any effect on net position. Also governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. In addition, compensated absences expenses ($50) reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
These amounts are the net effect of these differences in the treatment of long-term debt and related items.
Internal service funds are used by management to charge the costs of the City's self-insurance programs and equipment rental and replacement operations to individual funds. The net revenues (expenses) of the internal service funds excluding $(1,118) are reported with governmental activities. (in thousands)
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues :
Taxes 132,123$ 137,184 150,323 13,139 Licenses & permits 7,120 7,120 9,799 2,679 Fines, forfeitures and penalties 2,180 2,180 1,667 (513) Use of money or property 2,013 2,355 (3,643) (5,998) Intergovernmental 29,897 33,366 20,605 (12,761) Charges for services 16,051 17,276 22,954 5,678 Total revenues 189,384 199,481 201,705 2,224 Expenditures :
General government :
City council 483 511 310 201 City attorney 3,778 3,778 3,668 110 City clerk 1,371 1,369 853 516 City treasurer 208 207 143 64 City manager 1,267 1,265 1,136 129 Financial services 2,264 2,255 1,614 641 Management services 4,742 4,774 2,611 2,163 Non-departmental 10,610 11,578 8,770 2,808 Total general government 24,723 25,737 19,105 6,632 Public safety :
Police 62,435 62,838 59,340 3,498 Fire 36,744 39,019 38,993 26 Total public safety 99,179 101,857 98,333 3,524 Environmental :
Community development 17,717 18,390 12,387 6,003 Public works 15,298 15,572 13,703 1,869 Total environmental 33,015 33,962 26,090 7,872 Culture and recreation :
Library 8,353 8,559 7,622 937 Parks 15,718 15,799 13,974 1,825 Recreation 9,474 9,509 9,126 383 Special community activities 2,970 3,681 2,307 1,374 Total culture and recreation 36,515 37,548 33,029 4,519 See accompanying notes to basic financial statements ( Continued ) 24 City of Burbank
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended June 30, 2022
(in thousands)
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
City of Burbank
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE, BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended June 30, 2022
Debt service :
Principal retirement 2,510$ 2,510 2,510 - Interest expense 159 159 159 - Total debt service 2,669 2,669 2,669 - Total expenditures 196,101 201,773 179,226 22,547 Excess (deficiency) of revenues over expenditures (6,717) (2,292) 22,479 24,771 Other financing sources (uses) :
Transfers in - 815 815 - Transfers out (5,917) (6,019) (6,000) 19 Total other financing sources (uses) (5,917) (5,204) (5,185) 19 Net change in fund balances (deficits) (12,634) (7,496) 17,294 24,790 Fund balance, July 1, 2021 112,748 112,748 112,748 - Fund balance, June 30, 2022 100,114$ 105,252 130,042 24,790 See accompanying notes to basic financial statements
25 Variance
with Final
Original Final Actual Positive
Budget Budget Amounts (Negative)
Revenues :
Use of money or property 79$ 79 (269) (348) Charges for services 256 736 744 8 Total revenues 335 815 475 (340) Expenditures :
General government:
Administrative services 1,518 1,992 635 1,357 Total expenditures 1,518 1,992 635 1,357 Excess (deficiency) of revenues over expenditures (1,183) (1,177) (160) 1,017 Fund balance, July 1, 2021 48,298 48,298 48,298 - Fund balance, June 30, 2022 47,115$ 47,121 48,138 1,017 See accompanying notes to basic financial statements
City of Burbank
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
LOW/MODERATE INCOME HOUSING SPECIAL REVENUE FUND
For the Year Ended June 30, 2022
26 (in thousands)
Governmental
Activities-
Water Refuse Internal
Rec & Electric Water Collection Service
Sewer Utility Utility & Disposal Total Funds
Assets :
Current assets :
Pooled cash and investments 43,479$ 78,509 14,720 21,848 158,556 171,068 Accounts receivable 1,665 16,875 3,772 2,393 24,705 3,149 Interest receivable 117 285 48 112 562 461 Interfund receivable - 284 - - 284 42 Inventories - 8,813 756 - 9,569 589 Prepaid expenses 23 16,164 4,679 18 20,884 2,206 Restricted pooled cash and investments - - - 19,610 19,610 - Restricted non-pooled cash and
cash equivalents - 2,487 23,501 - 25,988 - Derivative Instrument - 2,020 - - 2,020 - Total current assets 45,284 125,437 47,476 43,981 262,178 177,515 Non-current assets :
Lease receivable - 4,859 199 - 5,058 - OPEB Asset (note 18) - 2,450 - - 2,450 - Total other non-current assets - 7,309 199 - 7,508 - Capital assets :
Land 5,316 2,734 309 3,454 11,813 - Land improvements 6,096 - - 6,050 12,146 - Rights to purchased power - 1,335 - - 1,335 - Buildings and improvements 138,468 561,708 166,931 7,672 874,779 6,268 Machinery and equipment 2,733 78,957 8,190 14,782 104,662 87,827 Lease assets - 1,779 - - 1,779 540 Construction in progress 4,702 36,323 2,796 1,415 45,236 1,980 Less accumulated depreciation (96,599) (361,212) (84,719) (21,038) (563,568) (73,119) Total capital assets, net of
accumulated depreciation 60,716 321,624 93,507 12,335 488,182 23,496 Total non-current assets 60,716 328,933 93,706 12,335 495,690 23,496 Total assets 106,000 454,370 141,182 56,316 757,868 201,011 Deferred outflows of resources:
Deferred amounts from pensions 376 10,925 1,766 1,361 14,428 - Deferred amounts from OPEB 44 1,660 202 222 2,128 - Total deferred outflows 420 12,585 1,968 1,583 16,556 - See accompanying notes to basic financial statements ( Continued ) 27 City of Burbank
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2022
(in thousands)
Business-type activities - Enterprise funds
Governmental
Activities-
Water Refuse Internal
Rec & Electric Water Collection Service
Sewer Utility Utility & Disposal Total Funds
City of Burbank
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2022
(in thousands)
Business-type activities - Enterprise funds
Current liabilities :
Accounts payable 1,385$ 11,173 2,045 734 15,337 4,727 Accrued expenses 4,194 1,457 197 - 5,848 - Compensated absences payable 5 328 58 36 427 54 Unearned revenue 79 850 45 - 974 - Customer deposits - 16,427 1,022 1,617 19,066 - Bond interest payable 12 275 216 - 503 - Current portion of revenue bonds 1,070 - 1,410 - 2,480 - Lease payable - 245 - - 245 46 Outstanding claims-self insurance - - - - - 11,218 Total current liabilities 6,745 30,755 4,993 2,387 44,880 16,045 Long-term liabilities (net of
current portion) :
Revenue bonds 3,116 52,499 55,295 - 110,910 - Landfill closure & post - - - 17,986 17,986 - Compensated absences 123 6,688 1,040 908 8,759 994 Net pension liability 1,149 33,366 5,394 4,157 44,066 - Net OPEB liability 80 - 362 398 840 - Lease payable - 1,127 - - 1,127 449 Outstanding claims -
self insurance - - - - - 34,491 Total long-term liabilities
(net of current portion) 4,468 93,680 62,091 23,449 183,688 35,934 Total liabilities 11,213 124,435 67,084 25,836 228,568 51,979 Deferred inflows of resources :
Deferred amounts from pensions 995 28,905 4,673 3,602 38,175 - Deferred amounts from OPEB 107 7,324 485 533 8,449 - Deferred amounts from derivatives - 2,020 - - 2,020 Deferred amounts from leases - 4,859 199 - 5,058 Total deferred inflows 1,102 43,108 5,357 4,135 53,702 - Net position :
Net investment in capital assets 56,090 269,817 59,708 12,235 397,850 22,742 Restricted for landfill closure and post-closure - - - 1,624 1,624 - Restricted for public benefit - 9,315 - - 9,315 - Unrestricted 38,015 20,280 11,001 14,069 83,365 126,290 Total net position 94,105$ 299,412 70,709 27,928 492,154 149,032 Adjustment Reflects Consolidation of Internal
Service Fund Activities Related to Enterprise Funds (1,118) 491,036
See accompanying notes to basic financial statements
28 Governmental
Activities-
Water Refuse Internal
Rec & Electric Water Collection Service
Sewer Utility Utility & Disposal Total Funds
Operating revenues :
Sales of water and power -$ 175,790 32,876 - 208,666 - Charges for services 18,225 6,600 1,083 19,127 45,035 36,066 Total operating revenues 18,225 182,390 33,959 19,127 253,701 36,066 Operating expenses :
Operations and maintenance 7,662 37,734 80 10,275 55,751 49,764 Purchased water and power - 126,969 25,668 - 152,637 - Inspection and investigation 1,966 - - - 1,966 - Design and permits 1,323 - - - 1,323 - Refuse disposal - - - 3,479 3,479 - Recycling - - - 2,672 2,672 - Depreciation 3,093 21,719 4,119 1,462 30,393 4,672 Total operating expenses 14,044 186,422 29,867 17,888 248,221 54,436 Operating income (loss) 4,181 (4,032) 4,092 1,239 5,480 (18,370) Nonoperating income (expense) :
Interest income (1,293) (2,015) (392) (1,257) (4,957) (5,171) Intergovernmental - 1,783 378 155 2,316 - Rental lease - 293 21 - 314 - Other local taxes - - - - - 15,850 Gain/(loss) on disposal capital assets - 109 17 386 512 22 Interest expense (197) (3,348) (2,267) (18) (5,830) - Other income/(expense) - net (84) 1,281 335 (14) 1,518 811 Total nonoperating income (expense) (1,574) (1,897) (1,908) (748) (6,127) 11,512 Income (loss) before capital
contributions and transfers 2,607 (5,929) 2,184 491 (647) (6,858) Transfers in - - - 2 2 6,313 Capital contributions - 2,766 477 - 3,243 - Transfers out - (416) - - (416) - Change in net position 2,607 (3,579) 2,661 493 2,182 (545) Net position, July 1, 2021 91,498 302,991 68,048 27,435 149,577
Net position, June 30, 2022 94,105$ 299,412 70,709 27,928 149,032 Adjustment Reflects the Consolidation of Internal Service Fund Activity Related to Enterprise Funds (1,118)
Change in Net Position of Business-Type Activities 1,064 See accompanying notes to basic financial statements
29 City of Burbank
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the Year Ended June 30, 2022
(in thousands)
Business-type activities - Enterprise funds
(in thousands)
Governmental
Activities-
Water Refuse Internal
Rec & Electric Water Collection Service
Sewer Utility Utility & Disposal Total Funds
Cash flows from operating activities :
Cash received from customers 18,774$ 187,771 34,218 19,249 260,012 35,948 Cash paid to suppliers (9,420) (146,604) (15,196) (11,099) (182,319) (38,597) Cash paid to employees (1,281) (22,210) (5,722) (5,635) (34,848) (8,315) Other income (expense) (84) 1,281 335 (14) 1,518 16,661 Net cash provided by (used in)
operating activities 7,989 20,238 13,635 2,501 44,363 5,697 Cash flows from noncapital financing activities :
Intergovernmental revenue - 1,783 378 154 2,315 - Payments on Leases - (407) - - (407) - Lease Income 293
Proceeds - Interfund loan - 6,166 - - 6,166 - Transfers from other funds - - - 2 2 6,313 Transfers to other funds - (416) - - (416) - Net cash provided by (used in)
noncapital financing activities - 7,419 378 156 7,660 6,313 Cash flows from capital and
related financing activities :
Proceeds from debt issuance - - 29,873 - 29,873 - Interfund loan - - (6,450) - (6,450) - Contributed capital - 2,766 477 - 3,243 - Proceeds from sales
of capital assets - 109 - 385 494 22 Acquisition and construction
of assets (1,674) (28,126) (5,143) (338) (35,281) (6,606) Principal payments - bonds (1,326) (1,145) (855) (725) (4,051) - Principal payments - loan payable - - (5,530) - (5,530) - Interest paid (200) (3,352) (2,132) (30) (5,714) - Net cash used in capital
and related financing activities (3,200) (29,748) 10,240 (708) (23,416) (6,584) See accompanying notes to basic financial statements ( Continued ) City of Burbank
STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
For the Year Ended June 30, 2022
Business-type activities - Enterprise funds
30 (in thousands)
Governmental
Activities-
Water Refuse Internal
Rec & Electric Water Collection Service
Sewer Utility Utility & Disposal Total Funds
Cash flows from investing activities :
Interest received 488 1,282 198 477 2,445 2,012 Change in Fair Value (1,819) (3,423) (609) (1,767) (7,618) (7,307) Net cash provided by
investing activities (1,331) (2,141) (411) (1,290) (5,173) (5,295) Net increase (decrease) in cash
and cash equivalents 3,458 (4,232) 23,842 659 23,434 131 Cash and cash equivalents,
July 1, 2021 40,021 85,228 14,379 40,799 180,427 170,937 Cash and cash equivalents,
June 30, 2022 43,479$ 80,996 38,221 41,458 204,154 171,068 See accompanying notes to basic financial statements
31 City of Burbank
STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
For the Year Ended June 30, 2022
Business-type activities - Enterprise funds
Governmental
Activities-
Water Refuse Internal
Rec & Electric Water Collection Service
Sewer Utility Utility & Disposal Total Funds
Operating income (loss) 4,181$ (4,032) 4,092 1,239 5,480 (18,370) Depreciation 3,093 21,719 4,119 1,462 30,393 4,672 Other income (expense) (84) 1,281 335 (14) 1,518 16,661 (Increase) decrease in accounts
receivable 548 5,099 260 121 6,028 (118) (Increase) decrease in inventories - (66) (151) - (217) (62) (Increase) decrease in prepaid items (113) 940 6,079 5 6,911 (2,011) (Increase) decrease in deferred
outflows from pension and OPEB 78 2,630 373 247 3,328 - (Increase) decrease in deferred
charges - 14 192 - 206 - Increase in outstanding claims payable - - - - - 2,307 Increase (decrease) in accounts payable 781 (441) 729 145 1,214 2,600 Increase (decrease) in net
pension liability (1,453) (42,214) (6,824) (5,260) (55,751) - Increase (decrease) in net OPEB
liability (20) (6,215) (89) (97) (6,421) - Increase (decrease) in compensated
absences (15) (257) (35) (74) (381) 18 Increase (decrease) in customer
deposits - 7,892 (347) 136 7,681 - Increase (decrease) in deferred inflows
from pensions and OPEB 993 33,365 4,857 3,640 42,855 - Increase (decrease) in deferred revenue 523 45 - 568 - Increase in landfill closure and
postclosure liabilities - - - 951 951 - Total adjustments 3,808 24,270 9,543 1,262 38,883 24,067 Net cash provided by (used in) operating
activities 7,989$ 20,238 13,635 2,501 44,363 5,697 Noncash investing, capital, and financing activities :
Increase (decrease) in fair value of
investments (1,819)$ (3,423) (609) (1,767) (7,618) (7,307) See accompanying notes to basic financial statements
Adjustments to reconcile operating income
(loss) to net cash provided by operating
activities :
32 Reconciliation of operating income (loss)
to net cash provided by (used in)
operating activities :
City of Burbank
STATEMENT OF CASH FLOWS, (concluded)
ALL PROPRIETARY FUND TYPES
For the Year Ended June 30, 2022
(in thousands)
Business-type activities - Enterprise funds
Private - Purpose
Trust Fund
Successor
Assets : Agency
Pooled cash and investments 8,208$
Accounts receivable 9
Receivables from the City of Burbank 1,327
Capital assets 415
Total assets 9,959
Deferred outflows of resources:
Deferred amount on refunding 2,589
Liabilities :
Accounts payable 5
Interest payable 123
Current portion of long term liabilities 5,725
Long term liabilities, net of current portion 35,343
Payable to the City of Burbank 1,340
Total liabilities 42,536
Net position
Unrestricted (29,988)
Total net position (29,988)$
See accompanying notes to basic financial statements
33 City of Burbank
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUND
June 30, 2022
(in thousands)
Private - Purpose
Trust Fund
Successor
Agency
ADDITIONS :
Receipts from County 8,838$
Use of money or property (150)
Total additions 8,688
DEDUCTIONS :
Administrative expenses 395
Interest expense 1,404
Total deductions 1,799
Change in net position 6,889
Net position, July 1, 2021 (36,877)
Net position, June 30, 2022 (29,988)$
See accompanying notes to basic financial statements
34 City of Burbank
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A - Reporting Entity
City of Burbank
Burbank Parking Authority
Public Facilities Financing Authority
Burbank Public Financing Authority
Burbank Community Services Fund
35 Included within the financial reporting entity, “City of Burbank” (the City), are the Burbank Parking Authority (the Parking Authority), the Public Facilities Financing Authority (PFFA), the Burbank Public Financing Authority (PFA), the Burbank Community Services Fund (BCSF), and the Burbank Housing Authority (Housing Authority). Although these entities are legally separate from each other, the City Council acts as the governing board of each entity and these entities are so intertwined with the City they are, in substance, part of the City operations. Accordingly, the financial activities of these component units are blended in the accompanying basic financial statements. A description of the entities follows.
The City was incorporated in July 1911, under the general laws of the State of California. The City Charter was adopted in January 1927, and most recently amended in April 2007. The City provides a full range of municipal services as contemplated by statute or charter. Services provided include public safety (police and fire), street construction and maintenance, sanitation, refuse collection, electric, water and sewer utilities, culture and recreation, public improvements, planning and zoning, housing and community development, and general administrative and support services.
The Burbank Parking Authority is a public financing agency established by the City in May 1970, under the State of California Parking Law of 1949 to provide public parking facilities on a citywide basis. The Parking Authority’s financial data and transactions are included in the accompanying basic financial statements within the capital projects funds category. Separate financial statements are not available for the Parking Authority.
The Burbank Public Financing Authority (PFA) was established in March 1993, as a joint exercise of powers agreement (JPA) between the City of Burbank and the Redevelopment Agency. The purpose of the JPA is to provide for the financing of public capital improvements and for working capital requirements of the members, through the acquisition by the PFA of such capital improvements and for the purchase by the PFA of obligations of either of the members. Separate financial statements for the PFA are not available; financial data is presented in the basic financial statements as the Public Financing Authority debt service fund. At June 30, 2022 the PFA had no assets, liabilities or fund equity, nor did it enter into any financial transactions during the fiscal year.
The Public Facilities Financing Authority (PFFA) was established in May 1987 by the City Council. The formation of the PFFA creates a financing entity through which Certificates of Participation can be issued for the proposed remodeling of various City buildings, the construction of a parking facility in the City Centre area, and various other additions or improvements to the City’s infrastructure. Separate financial statements for the PFFA are not available. At June 30, 2022, the PFFA had no assets, liabilities or fund equity, nor did it enter into any financial transactions during the fiscal year.
The Burbank Community Services Fund (Special revenue fund) was established in July 1998 as a 501 (C) (3) corporation. The purpose of this fund is to assist with support services, volunteer services, and educational services related to the development and maintenance of public facilities in the City of Burbank. Separate financial statements are not available for this fund; financial data is presented in the nonmajor funds column of the basic financial statements.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) Burbank Housing Authority
B - Financial Statement Presentation
The agreements state that HUD and the Housing Authority will provide an annual contribution of funds, in accordance with section 8 of the United States Housing Act of 1937, in order to provide decent, safe and sanitary dwellings for low to moderate income families, and to increase the supply and quality of affordable housing within the City. The Housing Authority’s financial data and transactions are included in the accompanying basic financial statements as special revenue funds. Separate financial statements are not available for the Housing Authority. The Housing Authority has become the Successor Housing Agency administrator of the Low and Moderate Income Housing fund.
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 City and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
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 are properly excluded from program revenues, and are reported instead as general revenues.
The Housing Authority created the City’s housing assistance payments and affordable housing programs by separate agreements with the Department of Housing and Urban Development (HUD) in November 1975, as amended December 1976, March 1982, and May 1987.
The Housing Authority, established by the City Council in June 1975, is responsible for the administration of a federally funded housing assistance payments project undertaken by the City. 36 As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.
Exceptions to this general rule are internal service fund charges to business-type activities and other charges between business-type activities and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) The City reports the following major governmental funds:
The City reports the following major proprietary funds:
Additionally the City reports the following fund types:
Proprietary Fund Types – Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. These services include liability insurance, workers' compensation insurance, and maintenance and financing of office equipment, vehicles, municipal buildings, communication equipment, and computer equipment.
Water Reclamation and Sewer – This fund is used to account for the operation and maintenance of the Water Reclamation Plant and Sewage System.
37 Refuse Collection and Disposal – To account for the activities involved in the collection and disposal of refuse throughout the City.
Electric Utility – To account for the generation, distribution, and transmission of electric energy to residents and businesses located within the City.
The fund financial statements provide information about the government's funds, including its fiduciary funds.
Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.
General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.
General Capital Projects – This fund is used to account for all multiple-year capital projects undertaken by the City.
Low / Moderate Income Housing Special Revenue Fund – This fund is used for funds received for the affordable housing program.
Water Utility – To account for the transmission of potable water, and recycled water to residents and businesses in the City.
Governmental Fund Types – Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specific purposes. Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major facilities.
Fiduciary Fund Types – The private purpose trust fund accounts for the assets and liabilities of the former redevelopment agency and is allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) C - Measurement Focus and Basis of Accounting
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, susceptible to accrual. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period (e.g., charges for services, intergovernmental revenue, sales tax, property taxes, franchise taxes, motor vehicle fees, utility users taxes, etc).
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, pension, OPEB, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.
Property taxes when levied, taxpayer-assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.), net of estimated refunds and uncollectible amounts, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered measurable and available only when cash is received by the City.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise and internal service funds are charges for sales and services. Operating expenses for enterprise and internal service funds include cost of sales and services, operations and maintenance of systems and facilities, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
38 The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are proprietary and fiduciary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar nonexchange transactions are recognized as revenue as soon as all eligibility requirements have been met.
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
The proprietary and private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) D - Inventories and prepaid items
E - Capital Assets
The City's electric and water utility funds are subject to the provisions of GASB No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. GASB No. 62 addresses accounting rules for regulated operations. This statement recognizes the economic ability of regulators, through the ratemaking process, to create future economic benefits and obligations affecting rate-regulated companies. Accordingly, the electric and water utility funds record these future economic benefits and obligations as regulatory assets or regulatory liabilities, respectively.
Capital assets, which include property, plant, equipment, easements, and infrastructure assets (e.g., roads, bridges, sidewalks, traffic lights and signals, street lights and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide and proprietary fund financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed, including land held under easements. Donated capital assets are recorded at acquisition value, at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.
In order for a rate-regulated entity to continue to apply the provisions of GASB No. 62, it must meet the following three criteria; (i) the enterprise's rates for regulated services provided to its customers must be established by an independent third-party regulator or its own governing board empowered by a statute to establish rates that bind customers; (ii) the regulated rates must be designed to recover the specific enterprise's costs of providing the regulated services; and (iii) in view of the demand for the regulated services and the level of competition, it is reasonable to assume that rates set at levels that will recover the enterprise's costs can be charged to and collected from customers.
The City regularly assesses whether regulatory assets and liabilities are probable of recovery or refund. If recovery or refund is not approved by the City Council, which sets rates charged to customers, or if it becomes no longer probable that these amounts will be realized or refunded, they would need to be written-off and recognized in the current period results of operations.
Based upon the City's evaluation of the three criteria discussed above in relation to its operations, and the effect of competition on its abiliity to recover its costs, the City believes that GASB No. 62 continues to apply. 39 All inventories are valued at cost, using the standard cost method. Inventories are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements via the consumption method.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources, as they are needed.
Regulatory assets represent probable future revenues associated with previously incurred costs that are expected to be recovered from customers. Regulatory liabilities represent probable future reductions in revenues associated with amounts that are expected to be refunded to customers through the ratemaking process.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) Buildings and improvements 20 to 40 years
Infrastructure 20 to 65 years
Machinery and equipment (except vehicles) 5 to 20 years Production plant 30 years
Boiler plant 20 years
Transmission structures 40 years
Transmission equipment 20 to 40 years
Poles, towers and fixtures 20 to 40 years
Distribution stations 30 to 40 years
Transformers 20 to 40 years
Meters 15 to 20 years
Water services 40 years
Vehicles 5 to 20 years
Office equipment 3 to 15 years
F - Compensated Absences
Employees are paid 100% of their accumulated vacation, universal and in-lieu time when they terminate for any reason. Accumulated sick leave is only paid out under one of the following conditions (a) at retirement or death, provided the employee has been employed by the City for over five years and is over 50 years of age; (b) at time of layoff. Accumulated sick leave is paid at 50% of the total value, except for Burbank Police Officers Association (BPOA) and Burbank Fire Fighters (BFF) employees in which sick leave is paid at 70% and respecting of the total value.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Estimated useful life
40 All vacation, universal, in-lieu and sick pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in government funds only when employees have separated from the City.
It is the City's policy to permit employees to accumulate earned but unused vacation, sick, universal and in-lieu leave pay benefits. The maximum accumulation of vacation leave is limited to the total number of hours accruable for two years, unless approved otherwise by the department head and City Manager. The maximum accumulation of in-lieu time is between 200 to 300 hours, depending upon the employee’s bargaining unit. There is no limitation as to the number of sick leave hours accumulated.
Executives, unrepresented managers and Burbank Management Association (BMA) employees do not earn vacation or sick leave. They instead receive universal leave which has an accrual cap of 1,200 hours. Universal leave is reported as part of the compensated absences accrual.
Capital assets of the City are depreciated using the straight line method over the following estimated useful lives:
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) G - Net Position and Fund Equity
H - Cash and Investments
The governmental funds report nonspendable, restricted, committed, assigned and unassigned fund balances to show the level of constraint governing the use of the funds. Nonspendable fund balances include amounts that cannot be spent because they are either a) not in spendable form or b) legally or contractually required to be maintained intact.
Restricted fund balances are restricted for specific purposes by third parties or enabling legislation. Committed fund balances include amounts that can be used only for specific purposes determined by formal action of the Council.
Council must have at least a 3 to 2 vote to pass a resolution for the specific purpose. Assigned fund balances comprise amounts intended to be used by the City for specific purposes as determined by the Council such as emergency reserves, prior years carryovers, and various capital projects. Unassigned fund balance is the remaining fund balance after all of the above classifications and should only be reported in the general fund or resulting deficit fund balance in any other governmental funds. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and the unrestricted resources as necessary. When committed and assigned resources are available for use, it is the City's policy to use committed resources first and then assigned resources, as they are needed.
Interest earned on pooled cash and investments is allocated monthly to the various funds based on month end balances. Interest income from cash and investments with fiscal agents and in the deferred compensation plan is credited directly to the related funds. The City manages its pooled idle cash and investments under a formal investment policy that is reviewed and adopted annually by the City Council and that follow the guidelines of the State of California Government Code. The City’s investment policy specifically authorizes the City to invest in United States Treasury obligations, U.S. agencies and/or GSE obligations, negotiable and nonnegotiable certificates of deposit, placement service certificates of deposit, commercial paper, the California Local Agency Investment Fund (LAIF), medium-term notes, state and local agency obligations, repurchase agreements, money market and money market mutual funds, and supranational obligations.
The City combines the cash and investments of all funds into two pools (the City pool, and the Housing Authority pool), except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Each fund's portion of the pooled cash and investments are displayed on the balance sheet-governmental funds, or the statement of net position-proprietary funds.
In the government-wide financial statements and proprietary fund financial statements, net position is reported in three categories: net investment in capital assets; restricted and unrestricted. Restricted net position represent net position restricted by parties outside of the City (such as creditors, grantors, contributors, laws and regulations of other governments including enabling legislation).
The City’s investments are reported at fair value. LAIF operates in accordance with the state laws and regulation of California. The reported value of the pool is the same as the fair value of the pool shares.
For purposes of the statement of cash flows for the proprietary fund types, cash and cash equivalents includes all pooled cash investments, non-pooled restricted cash and restricted investments with an original maturity of three months or less. The City considers the cash and investments pool to be a demand deposit account where funds may be withdrawn and deposited at any time without prior notice or penalty. 41 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) I - Receivables
J - Interfund Advances
K - Self-Insurance Program
The Community Development and Block Grant (CDBG) and HOME funds give loans to the BHC and to individuals meeting eligibility criteria. The loans have various term lengths with stated interest rates ranging from 0% to 6%.
The loans are scheduled to be forgiven at the end of their respective terms.
The Low and Moderate Income Housing fund has outstanding developer notes receivable with the Burbank Housing Corporation (BHC). The terms of the notes are fifty-five years with a stated annual interest rate of 3%. At the end of each notes' term, the City will receive either; A) the outstanding principal and interest on the loans or, b) as first lien holder on the underlying land and buildings, will receive the properties back. If the City receives the properties, after their respective fifty-five year term is over, in lieu of full payment of unpaid principal and interest from the BHC, those properties can then be used for any purpose the City chooses. The City records notes receivable at the lesser of a) the aggregate outstanding principal and interest balances on the notes receivable, or b) the estimated aggregate values of the underlying properties at the end of their respective note receivable term. (i.e.; estimated value fifty-five years after the start of each loan, not present valued back to June 30, 2022). The City reports the notes receivable balance in restricted fund balance in the governmental funds statements and in restricted net position in governmental activities in the entity-wide statements.
All trade and tax receivables are shown net of an allowance for uncollectible accounts and estimated refunds due.
Estimated allowances for uncollectible accounts for enterprise fund customer accounts receviables are adjusted to the 90 days and over receivables balances.
Assessed values are determined on an annual basis by the Los Angeles County Assessor as of January 1. Taxes are levied annually and become a lien on real property at July 1. Taxes are due November 1 and February 1, and are delinquent if not paid by December 10 and April 10, respectively.
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are 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). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as internal balances.
Advances between funds, as reported in the fund statements, are classified as either restricted or non spendable fund balance in the applicable governmental funds available. 42 The City has self-insurance programs to provide for general liability and workers’ compensation claims. These activities are accounted for in the Self-Insurance internal service fund, a proprietary fund type. Fund revenues are primarily premium charges to other funds and are planned to match estimated payments, including both reported and incurred but not reported claims, operating expenses, and reinsurance premiums. The fund expenses the estimated liability for claims in cases where such amounts are reasonably determinable and where the liability is likely.
The City is self-insured for individual claims up to $2,000 for worker's compensation, and $1,000 for general liability.
Losses in excess of these amounts are covered through commercial insurance policies, up to statutory limits, for individual claims. See note 15, Self-insurance, for additional information on the City’s self-insurance programs.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) L - Deferred Outflows/Inflows of Resources
M - Pensions
N - Postemployment Benefits Other Than Pensions (OPEB)
O - Use of Estimates
In addition to liabilities, the statement of financial position and the governmental funds balance sheet includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the government-wide financial statements, the City's deferred inflow of resources reported on the statement of net position relate to pension and other postemployment benefits, which are more fully discussed in Note 17 and 18. The statement of net position and the governmental funds balance sheet also report a deferred inflow of resources related to leases.
Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. The City has reported deferred inflows of resources related to unavailable revenues for property taxes, grants, and special assessments. These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available. 43 For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB plan and additions to/deductions from the OPEB plans' fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, the City's OPEB plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) plans and additions to /deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
In addition to assets, the statement of financial position includes a separate section for deferred outflow of resources.
Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The category of deferred outflow of resources reported in the statement of net position is related to pensions, and other post employment benefits.
Deferred outflows on pension and other postemployment benefits are more fully discussed in Note 17 and 18.
The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the financial statement date and the reported amounts of revenues and expenses or expenditures during the reporting period. Actual results could differ from those estimates.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) P - Adoption of New Accounting Standards - GASB 87 Leases Lessee:
Lease assets, which include buildings, structures, and equipment, follow the same capitalization threshold of $5 as capital assets. Lease assets are reported in the applicable governmental and business-type activities columns in the government-wide and respective proprietary fund financial statements. Lease assets are recorded at the amount of the initial measurement of the lease term, less any lease incentive received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the asset into service. Lease assets are depreciated using straight-line depreciation over the useful life of the underlying asset.
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases . This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
Lease payable represents the City's obligation to make lease payments arising from the lease. A lease payable is recognized at the commencement date based on the present value of expected lease payments over the lease term, less any incentives. Interest expense is recognized ratably over the contract term.
Certain leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases. 44 The Entity adopted the requirements of the guidance effective July 1, 2021, and has applied the provisions of this standard to the beginning of the period of adoption.
The Entity adopted the requirements of the guidance effective July 1, 2021, and has applied the provisions of this standard to the beginning of the period of adoption.
Lessor:
(2) RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Explanation of computation of certain items on statement of net position Governmental activities :
Capital assets of internal service funds, net of accumulated depreciation 23,496$ Governmental assets, net of accumulated depreciation 668,071 Accounts payable and retention payable (4,500)
Net investment in capital assets 687,067$
Business-type activities :
Capital assets, net of accumulated depreciation 488,182$ All revenue bonds, current and long term portions net of bond discount and premiums (87,402) Accounts payable and retention payable (2,930)
Net investment in capital assets 397,850$
(3) STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Appropriations
Appropriated Budget and Budgetary Control
The statement of net position includes an element titled "Net investment in capital assets". The details of this computation are explained below :
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
The City uses an “encumbrance system”.Under this procedure, commitments such as purchase orders and contracts at year-end are recorded as "committed" or "assigned" fund balance. 45 The level of appropriated budgetary control is at the functional departmental level. The City Manager may authorize transfers of appropriations within a departmental function. Expenditures may not legally exceed total departmental appropriations. Supplemental appropriations during the year must be approved by the City Council by a 3/5 vote.
These appropriations, representing amendments to the budget during the year, were significant in relationship to the original budget as adopted and are more fully described above. Unexpended or unencumbered appropriations lapse at the end of the fiscal year. Encumbered appropriations are reappropriated in the ensuing year’s budget.
The City Council is required to adopt an annual budget resolution by July 1 of each fiscal year for the General, Special Revenue (except for the Drug Asset Forfeiture fund and Measure W), Debt Service, and Capital Projects funds (except for Public Improvement Funds). The budgets are presented for reporting purposes on a budgetary basis consistent with accounting principles generally accepted in the United States of America. Certain multi-year capital improvements and other projects are budgeted on a project-length basis. Additionally, appropriations for the Drug Asset Forfeiture fund occur based on actual cash receipts and do not lapse at year end. A comparison of these budgets with current year expenditures would not be meaningful, due to the multi-year nature of these projects. As a result, budgetary schedules are not presented for the Public Improvements capital projects fund and the General City Capital Projects fund.
During the year, several supplemental budget appropriations were adopted by the City Council as amendments to the annual budget. Some significant appropriations are as follows: $1,316 for HUD Home Program, $743 for COVID-19 Testing, $278 for UASI Grant, $250 for CAL Recycle Grant, and $188 for Library Donation.
The City Council adopts budgets for the Enterprise and Internal Service funds. All Proprietary fund types are accounted for on the economic resources measurement focus and the accrual basis of accounting. Additionally, the City is not legally mandated to report the results of operations for these Proprietary fund types on a budget comparison basis; therefore, budgetary data related to these funds has not been presented. (4) CASH AND INVESTMENTS
Governmental Business Type Fiduciary Fund Total
Pooled cash and investments 388,327$ 158,556 8,208 555,091 Restricted pooled cash and investments 9,793 19,610 - 29,403 Restricted non-pooled cash and cash equivalents - 25,988 - 25,988 Total 398,120$ 204,154 8,208 610,482 Demand deposits 54,165
*Investments in 115 Trust CERBT 9,793
Investments 546,524
Total 610,482$
Investments Authorized by the California Government Code and the City's Investment Policy Authorized Investment Type
Agency-U.S. Federal Agency Yes 5 years 90% None
Corporate-medium term notes Yes 5 years 30% 5%
LAIF-Local Agency Invest. Fund Yes N/A None
U.S. Treasury obligations Yes 5 years 100% None
Non-negotiable Certificates of Deposit Yes 5 years 40% None Negotiable Certificates of deposit Yes 5 years 30% $250,000 Money market mutual funds Yes 90 days 20% None
State and Local Agency Obligations Yes 5 years 30% 5%
Commercial paper Yes 270 days 25% 5%
Repurchase agreements Yes 90 days 25% None
Supranational Obligations Yes 5 years 15% None
Placement of Service Certificates of Deposit Yes 5 years 30% None City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows :
The table below identifies the investment types that are authorized for the City by the California Government Code (Code) (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the Code (or the City'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 City, rather than the general provisions of the Code or the City's investment policy.
Authorized By
City Policy
Maximum
Maturity **
Maximum
Percentage of
Portfolio
Maximum
Investment
One Issuer
$75 million per
account
** No investment shall be made in any security that, at the time of the investment, has a term remaining to maturity in excess of five years, unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment, with the maximum allowed not to exceed 5% of the portfolio from over five years to ten year maturities.
* Disclosures related to investments in 115 Trust related to interest rate risk, credit risk and fair value are available online.
46 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(4) CASH AND INVESTMENTS, (continued)
Investments Authorized by Debt Agreements
Authorized Investment Type
Investment Agreements N/A None None
LAIF-Local Agency Invstmt Fund N/A None None
Money Market N/A None None
Pledge Bonds N/A None None
U.S. Treasury Obligations N/A None None
Disclosures Relating to Interest Rate Risk
12 Months 13 to 24 25 to 60 More Than
Total Or Less Months Months 60 Months
Agency-U.S. Federal Agency 159,834$ - - 159,834 - U.S. Treasury obligations 21,011 4,002 - 17,009 - Corporate-Medium Term Notes 130,326 38,220 23,103 69,003 - Municipal Bonds 65,163 10,287 6,998 47,878 - Supranational Obligations 16,441 - - 16,441 - Negotiable Certificates of Deposit 14,847 4,415 3,410 7,022 - LAIF-Local Agency Invst Fund 112,914 112,914 - - - Held by bond trustee:
Money Market 25,988 25,988 - - - Totals 546,524$ 195,826 33,511 317,187 - Maximum
Investment
One Issuer
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. 47 Maximum
Maturity
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 City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Maximum
Percentage of
Portfolio
Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:
Remaining Maturity (in Months)
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(4) CASH AND INVESTMENTS, (continued)
Disclosures Relating to Credit Risk
Total Not Rated
Agency-U.S. Federal Agency 159,834$ N/A -
U.S. Treasury obligations 21,011$ N/A -
Corporate-Medium Term Notes 130,326 A -
Municipal Bonds 65,163 A 10,881
Supranational Obligations 16,441 AA -
Negotiable Certificates of Deposit 14,847 N/A 14,847 LAIF-Local Agency Invstmt Fund 112,914 N/A 112,914 Held by bond trustee:
Money Market 25,988 Aaa -
Totals 546,524$ 138,642
Not required
Aaa Aa A to be rated
Agency-U.S. Federal Agency 159,834$ - - - U.S. Treasury obligations - - - 21,011 Corporate-Medium Term Notes 21,744 29,156 79,426 - Municipal Bonds 15,614 37,776 892 - Supranational Obligations 16,441 - - - Held by bond trustee:
Money Market 25,988 - - - Totals 239,621$ 66,932 80,318 21,011 Custodial Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the Code, the City's investment policy, or debt agreements, and the Moody's actual rating as of year end for each investment type.
Rating as of year end
48 Minimum Legal
Rating
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 amount of deposits are covered by FDIC insurance or collateralized under California law.
The Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits : The Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).
The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(4) CASH AND INVESTMENTS, (continued)
Investment in State Investment Pool
Fair Value Measurements
The City has the following recurring fair value measurements as of June 30, 2022:
Agency-U.S. Federal Agency - 159,834 - - 159,834 Corporate-medium term notes - 130,326 - - 130,326 LAIF-Local Agency Invest. Fund - - - 112,914 112,914 U.S. Teasury obligations - 21,011 - - 21,011 Negotiable Certificates of Deposit - 14,847 - - 14,847 Municipal Bonds - 65,163 - - 65,163 Supranational Obligations - 16,441 - - 16,441 Held by Bond Trustee:
Money Market - - - 25,988 25,988
-$ 407,622$ -$ 138,902$ 546,524$ 49 Quoted Prices
Level 1
Observable
Inputs
Level 2
Unobservble
Inputs
Level 3
Investments
Not Subject to
Hierarchy Total
The City categorizes its fair values measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are quoted prices of similar assets in active markets and Level 3 inputs are significant unobservable inputs.
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the Code, section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
(5) CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 is as follows:
Balance Balance
July 1, 2021 June 30
Governmental activities As Restated Additions Deletions Transfers 2022 Capital assets not being depreciated :
Land 57,759$ - - - 57,759 Land held under easements 345,277 - - - 345,277 Construction in progress 30,984 13,222 (32,455) - 11,751 Internal service fund assets :
Construction in progress 1,119 2,385 (1,524) - 1,980 Total capital assets not being depreciated 435,139 15,607 (33,979) - 416,767 Capital assets being depreciated :
Land Improvements 9,930 - - - 9,930 Accumulated depreciation (7,801) (120) - - (7,921) Buildings and improvements 223,231 7,967 (21) - 231,177 Accumulated depreciation (170,859) (6,150) 21 - (176,988) Infrastructure 365,003 33,745 - - 398,748 Accumulated depreciation (191,656) (10,759) - - (202,415) Machinery and other 6,918 655 - - 7,573 Accumulated depreciation (6,323) (497) - - (6,820) Internal service fund assets :
Buildings and improvements 6,268 - - - 6,268 Accumulated depreciation (3,277) (264) - - (3,541) Machinery and other 84,223 9,906 (6,302) - 87,827 Accumulated depreciation (66,769) (4,351) 1,599 - (69,521) Lease assets 540 540
Accumulated depreciation - (57) (57) Total capital assets being depreciated, net 249,428 30,075 (4,703) - 274,800 Total net capital assets -
Governmental activities 684,567$ 45,682 (38,682) - 691,567
50 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
Depreciation charged to governmental functions on the statement of activities during the year is as follows; $1,173 General Government, $370 to Police, $11 to Fire, $9,534 to Public Works, $3,169 to Community Development, $2,534 to Parks and Recreation and $735 to Library. The Internal Service funds portion of depreciation for the year is $4,672.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(5) CAPITAL ASSETS, (continued)
Total Enterprise fund type capital assets are as follows :
Balance Balance
July 1, 2021 June 30
All Business-type activities As Restated Additions Deletions Transfers 2022 Capital assets not being depreciated :
Land 11,813$ - - - 11,813 Construction in progress 38,591 34,197 (27,552) - 45,236 Total capital assets not being depreciated 50,404 34,197 (27,552) - 57,049 Capital assets being depreciated :
Land improvements 12,146 - - - 12,146 Accumulated depreciation (11,545) (316) - - (11,861) Rights to purchased power 1,335 - - - 1,335 Accumulated depreciation (950) (44) - - (994) Buildings and improvements 848,732 28,051 (2,004) - 874,779 Accumulated depreciation (441,955) (23,143) 1,497 - (463,601) Machinery and other 103,453 2,179 (970) - 104,662 Accumulated depreciation (80,158) (6,957) 202 - (86,913) Lease assets 1,779 1,779
Accumulated depreciation (199) (199)
Total capital assets being depreciated, net 432,837 (429) (1,275) - 431,133 Total net capital assets -
business type activities 483,241$ 33,768 (28,827) - 488,182 Water Reclamation and Sewer fund capital assets are as follows :
Balance Balance
July 1 June 30
2021 Additions Deletions Transfers 2022
Capital assets not being depreciated :
Land 5,316$ - - - 5,316 Construction in progress 5,410 1,478 (2,186) - 4,702 Total capital assets not being depreciated 10,726 1,478 (2,186) - 10,018 Capital assets being depreciated :
Land improvements 6,096 - - - 6,096 Accumulated depreciation (5,857) (239) - - (6,096) Buildings and improvements 136,284 2,184 - - 138,468 Accumulated depreciation (85,336) (2,836) - - (88,172) Machinery and other 2,537 398 (202) - 2,733 Accumulated depreciation (2,517) (16) 202 - (2,331) Total capital assets being depreciated, net 51,207 (509) - - 50,698 61,933$ 969 (2,186) - 60,716 51 Total net capital assets - Water
Reclamation and Sewer
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(5) CAPITAL ASSETS, (continued)
Electric Utility fund capital assets are as follows :
Balance Balance
July 1, 2021 June 30
As Restated Additions Deletions Transfers 2022
Capital assets not being depreciated :
Land 2,734$ - - - 2,734 Construction in progress 29,527 27,377 (20,581) - 36,323 Total capital assets not being depreciated 32,261 27,377 (20,581) - 39,057 Capital assets being depreciated :
Rights to purchased power 1,335 - - - 1,335 Accumulated depreciation (950) (44) - - (994) Buildings and improvements 541,437 20,949 (678) - 561,708 Accumulated depreciation (274,469) (16,591) 665 - (290,395) Machinery and other 78,243 1,482 (768) - 78,957 Accumulated depreciation (64,466) (5,158) - - (69,624) Lease assets 1,779 1,779
Accumulated depreciation (199) (199)
Total capital assets being depreciated, net 282,909 439 (781) - 282,567 Total net capital assets - Electric Utility 315,170$ 27,816 (21,362) - 321,624 Water Utility fund capital assets are as follows :
Balance Balance
July 1, 2021 June 30
As Restated Additions Deletions Transfers 2022
Capital assets not being depreciated :
Land 309$ - - - 309 Construction in progress 2,577 5,004 (4,785) - 2,796 Total capital assets not being depreciated 2,886 5,004 (4,785) - 3,105 Capital assets being depreciated :
Buildings and improvements 163,339 4,918 (1,326) - 166,931 Accumulated depreciation (75,502) (3,636) 832 - (78,306) Machinery and other 7,891 299 - - 8,190 Accumulated depreciation (5,933) (480) - - (6,413) Total capital assets being depreciated, net 89,795 1,101 (494) - 90,402 Total net capital assets - Water Utility 92,681$ 6,105 (5,279) - 93,507 52 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(5) CAPITAL ASSETS, (continued)
Refuse Collection & Disposal fund capital assets are as follows :
July 1 June 30
2021 Additions Deletions Transfers 2022
Capital assets not being depreciated :
Land 3,454$ - - - 3,454 Construction in progress 1,077 338 - - 1,415 Total capital assets not being depreciated 4,531 338 - - 4,869 Capital assets being depreciated :
Land improvements 6,050 - - - 6,050 Accumulated depreciation (5,688) (77) - - (5,765) Buildings and improvements 7,672 - - - 7,672 Accumulated depreciation (6,648) (80) - - (6,728) Machinery and other 14,782 - - - 14,782 Accumulated depreciation (7,242) (1,303) - - (8,545) Total capital assets being depreciated, net 8,926 (1,460) - - 7,466 13,457$ (1,122) - - 12,335 (6) DEFINED CONTRIBUTION PLANS
Defined Contribution Plans
Welfare Benefit Plan (VEBA)
53 The VEBA is a defined contribution plan established by the City of Burbank to provide post retirement medical benefits primarily to members of the Burbank Police Officers' Association. At June 30, 2022, there were 147 active participants and 119 retired participants. VEBA members are required to contribute the full cash out value of their sick leave time at retirement. The City is required to contribute $39.97 dollars per month per active participant and 1.5% of the Burbank Police Officers' Association annual covered salary. VEBA provisions and contribution requirements are established and may be amended by the City Council of the City. Investments are self directed by each VEBA participant.
Separate financial statements are not available for the VEBA. The employer contributions are recognized in the period that the contributions are made; contributions totaled $541 for the fiscal year ended June 30, 2022. At June 30, 2022, the fair value of assets was $10,079.
Total net capital assets - Refuse Collection
& Disposal
(6) DEFINED CONTRIBUTION PLANS, (continued)
Post Employment Health Plan (PEHP)
(7) INTERFUND RECEIVABLES, PAYABLES, ADVANCES, AND TRANSFERS The composition of interfund balances as of June 30, 2022 is as follows :
Fund Receivable Payable In Out
General fund 202$ 3 815 6,000 Merged capital projects - - - - Low / Mod housing - 46 - - General capital projects - - 102 708 Water reclamation & sewer - - - - Electric utility 284 - - 416 Water utility - - - - Refuse collection & disposal - - 2 - Nonmajor proprietary fund - - - - Nonmajor governmental funds 264 743 349 457 Internal service funds 42 - 6,313 - Total interfund receivable / payable / transfers 792 792 7,581 7,581 Composition and purpose of significant interfund transfers and interfund balances is as follows :
The City has no liability for losses under the plan, but does have the duty of due care that would be required of an ordinary prudent investor. The City contributed $50 to the PEHP during the year ended June 30, 2022.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
The PEHP is a defined contribution plan established by the City of Burbank in February 2006 to provide retirement medical benefits primarily to members of the Burbank Fire Fighters' Association (BFF) and the Burbank Fire Fighters' Chief Officers’ Unit (BFF-COU). The PEHP is a multi-employer trust comprised of over 800 public sector entities across the United States and is administered by Nationwide Retirement Solutions. At June 30, 2022 there were 112 active and 59 retired participants. BFF and BFF-COU PEHP members are required to contribute 100% of all accrued leave pay out upon retirement or separation to their individual plan accounts.
PEHP provisions and contribution requirements are established and may be amended by the City Council of the City to the extent allowed by the Internal Revenue Code. Investments are self directed by each PEHP participant.
TransfersInterfund
Internal Service fund transfers in of $6,313 includes $5,897 from the General fund for infrastructure maintenance/repair and improvement funding commitment and Information Technology projects and $416 from the Electric utility fund for Information Technology projects. 54 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(7) INTERFUND RECEIVABLES, PAYABLES, ADVANCES, AND TRANSFERS, (continued) The composition of interfund advances as of June 30, 2022 is as follows :
Advances to Successor Agency :
1,332
4 4
1,340$
Advances from Successor Agency :
1,327$
The City and the Agency entered into an agreement through which the City agreed to advance funds to the South San Fernando project necessary for formation costs.
From 1977 through 1979, the City and the Agency entered into agreements to loan funds aggregating $225 to the West Olive Project.
55 In 2015, it was deemed by the State Controllor's Office during the final asset transfer review that the prior asset transfers from the Agency to the City were unnallowable and must be turned The City and the Agency entered into a cooperation agreement through which the City agreed to advance funds to the City Centre project necessary for land acquisition and related expenses.
Transferred to Successor Agency February 1, 2012. AB 1484 specifies the actions to be taken and the method of repayment for advances by the Successor Agency to the various funds of the City. Upon application and approval by the Successor Agency and approval by the oversight board, loan agreements (advances) entered into by former redevelopment agency and the City shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the advances were for legitimate redevelopment purposes. The accumulated interest on the remaining amount of advances will be recalculated from origination at the interest rate earned by funds deposited into the Local Agency Investment Fund. The advances are to be repaid with a defined schedule over a reasonable term of years at an interest rate not to exceed the 3%. The annual advances repayments are subject to certain limitations. Advance repayments are subject to a formula distribution, and have a lower priority for repayment as described in AB 1484 (Health and Safety Code Section 34191.4(2)(A). The advances related to the borrowing for the SERAF payment have a priority over repayment of the other advances. 20% of the repayment of the other advances not related to the SERAF advances shall be deducted and transferred to the Low and Moderate Income Housing Fund (Housing Authority).
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(7) INTERFUND RECEIVABLES, PAYABLES, ADVANCES, AND TRANSFERS, (continued) A breakdown of all items as stated on the statement of net position and statement of activities:
Govern- Business-
Fund mental Type
Governmental funds
transfers in 1,266 -
transfers out (7,165) -
Internal service funds
transfers in 6,313 -
transfers out - -
Proprietary funds
transfers in - 2
transfers out - (416)
Totals 414$ (414)
(8) LONG-TERM LIABILITIES
Balance Balance
July 1, 2021 June 30, Due within
As Restated Additions Deletions 2022 one year
Fiduciary activities:
Other Debt:
Tax allocation bonds 46,344$ - (5,276) 41,068 5,725 Total fiduciary activities 46,344$ - (5,276) 41,068 5,725 Governmental activities :
Other Debt:
Pension obligation bonds 2,685 - (2,510) 175 175 Other Long-Term Liabilities:
Compensated absences* 16,336 8,025 (7,975) 16,386 1,422 Total non-internal service debt 19,021 8,025 (10,485) 16,561 1,597 Other Long-Term Liabilities:
Claims payable from self-insurance funds
(Note 15) 43,402 10,864 (8,557) 45,709 11,218 Lease payable - from internal service funds 540 - (45) 495 46 Compensated absences - payable from
internal service funds 1,028 536 (516) 1,048 54 Total governmental activities 63,991$ 19,425$ (19,603)$ 63,813$ 12,915$ 56 *Compensated absences liability for governmental activities will be liquidated by the following funds: General Fund, Proposition A, Proposition C, AQMD, Section 8, CDBG, State Gas Tax, Public Improvement, HOME, and Low/Mod Transfers
(8) LONG-TERM LIABILITIES, (continued)
Balance Balance
July 1, 2021 June 30, Due within
Restated Additions Deletions 2022 one year
Business-type activities :
Water Reclamation & Sewer :
Other Debt:
Revenue bonds 5,309$ - (1,123) 4,186 1,070 143 93 (108) 128 5 Subtotal 5,452 93 (1,231) 4,314 1,075 Refuse Collection & Disposal :
Other Debt:
Revenue bonds 732 - (732) - - Other long-term liabilities 17,035 951 - 17,986 - 1,028 309 (393) 944 36 Subtotal 18,795 1,260 (1,125) 18,930 36 Electric Utility :
Other Debt:
Revenue bonds 53,642 - (1,143) 52,499 - Lease payable 1,535 - (163) 1,372 245 7,227 3,148 (3,359) 7,016 328 Subtotal 62,404 3,148 (4,665) 60,887 573 Water Utility :
Other Debt:
Revenue bonds 27,866 29,873 (1,034) 56,705 1,410 Other long-term liabilities 5,530 - (5,530) - -
1,129 643 (674) 1,098 58 Subtotal 34,525 30,516 (7,238) 57,803 1,468 Total business-type activities :
Other Debt:
Revenue bonds 87,549 29,873 (4,032) 113,390 2,480 Other long-term liabilities 22,565 951 (5,530) 17,986 - Lease payable 1,535 - (163) 1,372 245 9,527 4,193 (4,534) 9,186 427 Total business-type activities 121,176$ 35,017 (14,259) 141,934 3,152 Compensated absences
- payable from enterprise funds
Compensated absences
- payable from enterprise funds
Compensated absences
- payable from enterprise funds
57 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
Compensated absences
- payable from enterprise funds
Compensated absences
- payable from enterprise funds
(8) LONG-TERM LIABILITIES, (continued)
FIDUCIARY ACTIVITIES
Tax Allocation Bonds
2015 Successor Agency Tax Allocation Refunding Bonds, Series 2015 10,390$
2017 Successor Agency Tax Allocation Refunding Bonds, Series 2017 25,015
Plus original issue premium 5,663
Total tax allocation bonds 41,068
Total fiduciary activities 41,068$
The bonds are due in annual installments from $210 to $4,680 through December 1, 2033. Interest at various rates ranging from 2.00% to 5.00% is payable semiannually on June 1 and December 1.
The bonds provided funds for (a) to refinance certain outstanding bonds and a loan and note entered into by the former Redevelopment Agency to the City of Burbank; (b) to fund a reserve account bond insurance policy; and, (c) provide for the costs of issuing the Bonds.
The bonds are due in annual installments from $720 to $2,265 through December 1, 2043. Interest at various rates ranging from 2.00% to 5.00% is payable semiannually on June 1 and December 1.
The bonds provided funds for (a) to refinance certain outstanding bonds issues by the former Redevelopment Agency of the City of Burbank, (b) purchase a debt service reserve policy to be issued by Build America Mutual Assurance Company ("BAM"), and (c) pay for the costs of issuing the 2017 Bonds. As of June 30, 2022, the defeased bonds have been redeemed.
City of Burbank
58 NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(8) LONG-TERM LIABILITIES, (continued)
GOVERNMENTAL ACTIVITIES
Pension Obligation Bonds (POB)
175$
Compensated absences - Governmental activities:
16,386$
Outstanding Claims Payable - Self-Insurance
9,081$
36,628$
Total long-term liabilities for self-insurance 45,709$
Lease Payable - Internal Service Funds:
495$
Compensated absences - Internal service funds:
1,048$
Total governmental activities 63,813$
Lease payable totals $495. The current portion of the lease payable is $46 and is reported in the current liability section of the statement of net position, with the remainder in long-term liabilities.
The bonds are due in annual installments from $260 to $2,510 through June 1, 2023. Interest is fixed at 5.93%. The bonds provided funds to pay the City's unfunded pension obligation related to increased safety salaries, in lieu of reducing this obligation over a number of years directly through PERS.
The Workers' Compensation fund total outstanding claims are $36,629. The current portion of the outstanding claims are reported in the current liability section of the statement of net position and the remainder is included in long-term liabilities.
The Risk Management fund total outstanding claims are $7,581. The current portion of the outstanding claims are reported in the current liability section of the statement of net position and the remainder is included in long-term liabilities.
Governmental funds accumulated vacation, universal, in-lieu and sick leave accrual is reported in the government-wide statement of net position. For the fiscal Year Ended June 30, 2022, the noncurrent portions of the accrual consist of vacation leave of $11,514, sick leave of $3,341, and in-lieu time of $1,531.
All the Internal Service fund types' accumulated vacation and sick leave accrual is reported in the respective Internal Service fund. At June 30, 2022, the accrual consists of vacation leave of $906, sick leave of $70 and in-lieu time of $72 and the current portion of $54. 59 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(8) LONG-TERM LIABILITIES, (continued)
BUSINESS-TYPE ACTIVITIES - REVENUE BONDS
Wastewater Treatment
$10,575 Wastewater Treatment Revenue Bonds of 2014 Series 3,595$
Plus original issue premium 591$
Total Wastewater Revenue bonds 4,186$
Burbank Water and Power
Lease Payable
1,372$
Total leases payable 1,372$
$52,665 Burbank Water and Power Electric Revenue Bonds 2010 Series B 52,665$
$27,945 Burbank Water and Power Water Revenue Bonds 2010 Series B (Taxable Build America Bonds) 27,945$
60 Electric fund has leases for a gas turbine with General Electric, ground lease with Warner Brothers, and telecommunications, including colocation, with Crown Castle. As June 30, 2022, the total liability is $1,372, and the current portion is $234.
The bonds are due in annual installments ranging from $90 to $1,130 from June 1, 2015 to June 1, 2033, with interest rates ranging from 2% to 5%, payable semiannually on June 1 and December 1.
The purpose of these bonds was to refund, on a current basis, the City's Wastewater Treatment Refunding Revenue Bonds, 2004 Series A and to pay all costs of issuance.
These bonds were issued to finance a portion of the costs of certain improvements to the Electric System, including the conversion of certain residential and commercial distribution circuits and to fund a deposit in the Parity Reserve Fund and to pay the costs of issuance. Payable in installments ranging from $2,210 to $4,195. Interest rates range from 3.00% to 5.00%. Payments are made semiannually on June 1 and December 1, with the final payment to be made on June 1, 2040. The bonds are secured by a pledge of net revenues of the electric enterprise fund as well as all amounts on deposit in the accounts established under the indenture, including the reserve account.
These bonds were issued to finance the costs of the 2010 Water Project and to pay the costs of issuance of the Series 2010B Bonds. Payable in installments ranging from $850 to $2,275. Interest rates range from 4.89% to 5.79%. Payments are made semiannually on June 1 and December 1, with the final payment to be made on June 1, 2040. The bonds are secured by a pledge of net revenues of the Water Enterprise Fund, as well as all amounts on deposit in the accounts established under the indenture, including the reserve account. The City expects to receive a direct cash subsidy from the United States Department of Treasury equal to 35% of the interest on the Series 2010B Bonds.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(8) LONG-TERM LIABILITIES, (continued)
$24,825 Burbank Water and Power Water Revenue Refunding Bonds 2021 Series $23,970
Plus original issue premium 4,862
Less original issue discount (238)
Total Burbank Water and Power revenue bonds 109,204$
Total Enterprise revenue bonds 113,390$
Total Enterprise Liabilities 114,762$
61 These bonds were issued to finance costs of 2021 Water Project, prepay State Water Loans and pay costs of issuance of Series 2021 Water Bond. Payable in installments ranging from $430 to $1,245.
Interest range from 4% to 5%. Payments are made semi annually on June 1 and December 1, with final payment to be made on June 1, 2051. The bonds are secured by pledge of net revenues of the water enterprise funds, as well as all amounts on deposit in the accounts established under the indenture.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(8) LONG-TERM LIABILITIES, (continued)
Other long-term liabilities :
Landfill Closure and Post-Closure Care Costs
17,986$
Total other long-term liabilities 17,986$
Compensated absences - All Enterprise fund types :
9,186$
Total business-type activities 141,934$
62 All the Enterprise fund types' accumulated vacation, universal, in-lieu and sick leave accrual is reported in the respective Enterprise fund. For the fiscal year ended June 30, 2022, the total of the accrual consist of vacation leave of $7,062, sick leave of $962 and in-lieu time of $1,163.
The City is required by state laws and regulations to make annual contributions to a trust fund to finance closure and post-closure care. The City is in compliance with these requirements, and at June 30, 2022, $19,610 was reported as restricted cash. The City expects that future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional post-closure care requirements are determined (due to changes in technology or applicable laws and regulations, for example) these costs may need to be covered by charges to future landfill users or from future tax revenue.
The landfill closure and post-closure care liability at June 30, 2022 represents the cumulative amount reported to date based on the use of 50 percent of the estimated capacity of the landfill. The City will recognize the remaining estimated cost of $25,194 as the remaining estimated capacity is filled.
These amounts are based on what it would cost to perform all closure and post-closure care in 2022.
Using the 2022 inflation factor of 1.041 percent, the total estimated adjusted closure and post- closure costs as of 2022 are $34,736. The City expects to close the landfill in the year 2149. Actual costs may be higher or lower due to inflation or deflation, changes in technology, or changes in regulations.
State laws and regulations require the City to place a final cover on the Burbank Landfill No. 3 site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and post-closure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports portions of these costs as operating expenses in each period, as required by GASB 18, and based on landfill capacity used as of each balance sheet date.
(8) LONG-TERM LIABILITIES, (continued)
Fiduciary activities
Year ending June 30 Principal Interest
2020 6,850 2,203
2021 7,145 1,887
2023 5,725 1,327
2024 6,045 1,033
2025 1,305 849
2026 1,105 789
2027 1,160 732
2028-2032 5,470 2,929
2033-2037 5,720 1,920
2038-2042 6,130 994
2043-2044 2,745 93
Premium 5,663 -
Totals 41,068$ 10,666$
Governmental activities
Year ending June 30 Principal Interest
2023 175 10
Totals 175$ 10
Business-type activities Revenue Bonds
Year ending June 30 Principal Interest
2023 2,480 6,032
2024 4,820 5,909
2025 3,940 5,645
2026 4,170 5,425
2027 4,360 5,186
2028-2032 24,935 21,945
2033-2037 30,425 14,073
2038-2051 33,045 6,831
Discount (238) -
Premium 5,453 -
Indeterminate - -
Totals 113,390$ 71,046
63 Fiduciary Tax Allocation
The annual requirements to amortize all bonded indebtedness and other long-term liabilities outstanding at June 30, 2022 are as follows :
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
POB Bond
(8) LONG-TERM LIABILITIES, (continued)
Pledged Revenue
Water Reclamation and Sewer
Electric
Water
Refuse Collection and Disposal
(9) RECEIVABLES
Receivables at June 30, 2022 consist of the following:
Nonmajor Internal
Govt'l Service
Governmental activities : Funds Funds
Accounts receivable, net 20,772$ 631 41 5,956 3,149 30,549 Interest receivable 322 27 78 131 461 1,019 Developer notes receivable - 37,495 - - - 37,495 Total 21,094$ 38,153 119 6,087 3,610 69,063 Business-type activities :
Accounts receivable, net 1,665$ 16,875 3,772 2,393 24,705 Interest receivable 117 285 48 112 562 Total 1,782$ 17,160 3,820 2,505 25,267
Total
Govern-
mental
Water
Reclam.
& Sewer Electric Water
Refuse
Collection
& Disposal
General
Fund
Low/Mod
Housing
64 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
3,352$
The City and its component units have a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment:
Description of
Pledged Revenue
Debt Service as a
Percentage of
Pledged Revenue
Annual Debt Service
Payments
(of all debt secured by
this revenue)
Annual Amount of
Pledged Revenue
(net of expenses,
where required)
-$
1,221$
Total
Business
Type
0.00%-$
General
Capital
Projects
2,995$
16.79%
18.95%
36.48%
7,274$
17,687$
8,211$
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(9) RECEIVABLES, (continued)
(10) COMMITMENTS AND CONTINGENCIES
Litigation
Construction commitments
65 Some significant outstanding construction commitments include $13,847 Golden State Substation Rebuild; $9,990 Pacific Northwest DC Intertie; $5,214 Residential Street Paving; $4,533 Overhead Distribution Lines; $3,3348 Valley Pumping Plant Booster Upgrade; $3,290 Water Reclamation Plant Improvements.
The Community Development and Block Grant (CDBG) and HOME funds provide loans to the BHC and to individuals.
The loan terms for each loan are various lengths with stated interest rates ranging from 0% to 6% and are scheduled to be forgiven at the end of their respective term. The City records the notes receivable balance, and an allowance for doubtful accounts equal to 100% of the outstanding note balance. The notes receivable balance for CDBG as of June 30, 2022 was $0, net of an allowance for doubtful accounts of $2,585, in both the governmental activities and the governmental funds. The notes receivable balance for HOME as of June 30, 2022 is $0, net of an allowance for doubtful accounts of $12,945, in both the governmental activities and the governmental funds.
The low and moderate income housing fund has outstanding developer notes receivable with the Burbank Housing Corporation (BHC). The terms of the notes are fifty-five years from date of issuance with a stated interest rate of 3%. At the end of each notes' term, the City will receive either the outstanding principal and interest on the loans, or as first lien holder on the underlying land and buildings, will receive the properties back. If the City receives the properties in lieu of payment from the BHC, those properties can then be used for any purpose the City chooses. The City records notes receivable at the lesser of a) the aggregate outstanding principal and interest balances on the notes receivable, or b) the estimated aggregate values of the underlying properties at the end of their respective note receivable term (i.e.; fifty-five years after the start of each loan, not present valued back to June 30, 2022).
The City reports the notes receivable balance in restricted fund balance in the governmental funds statements and in restricted net position in governmental activities in the entity-wide statements. As of June 30, 2022, the notes receivable balance was $37,495, net of an allowance for doubtful accounts of $28,157. For the fiscal year ended June 30, 2022, the allowance for doubtful accounts increased $1,494.
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact to the City over and above the amounts recorded as claims liability. City management believes that the claims liability recorded within the self-insurance internal service fund is sufficient to cover any potential losses, should an unfavorable outcome result. Further, City is covered for potential exposure beyond the City's self-insured retention per matter by the City's excess insurance coverage.
(11) POWER SUPPLY EXPENSES
A - RETAIL ENERGY SUPPLY
B - JOINT POWERS AGENCY CONTRACTS
(a) Intermountain Power Agency (IPA)
(b) Southern California Public Power Authority (SCPPA)
66 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
The City receives electricity through firm contracts, local generation and market purchases. The majority of electricity is delivered through firm contracts, which include “take or pay”, “takeand pay” and term purchases.
Local generation and market purchases supplement firm contracts to meet the City’s retail load requirements.
SCPPA membership consists of 11 Southern California cities and one public irrigation district of the State of California, which serves the electric power needs of its Southern California electricity customers. SCPPA, a public entity organized under the laws of the State of California, was formed by a joint powers agreement dated November 1, 1980, pursuant to the Joint Exercise of Powers Act of the State of California. SCPPA was created for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of electric energy for sale to its participants. The joint power agreement has a term of 50 years.
The City, through its Electric Utility Fund, has entered into several "take or pay" contracts and “take and pay” contracts through its participation in two joint power agencies, the Intermountain Power Agency (IPA) and the Southern California Public Power Authority (SCPPA) in order to meet the electric needs of its customers. These contracts are not considered joint ventures since the City has no interest in the assets, liabilities, or equity associated with any of the projects to which these contracts refer.
Under the “take or pay” contract, the City is obligated to pay its share of the indebtedness regardless of the ability of the contracting agency to provide electricity or the City’s need for the electricity. The City is only obligated to pay its share of the indebtedness upon delivery of energy under the “take and pay” contracts. However, in the opinion of management, the City does not have a financial responsibility for purposes of GASB Statement No. 14, "Financial Reporting Entity", because the IPA and SCPPA do not depend on revenue from the City to continue in existence.
These contracts constitute an obligation of the Electric Utility Fund to make debt service payments from its operating revenues. The Electric Utility Fund's share of debt service is not recorded as an obligation on the accompanying basic financial statements; however, it is included as a component of its power supply expenses.
During the fiscal years ended June 30, 2022 and 2021, the Electric Fund made payments totaling $47,313 and $54,613 for "take or pay" contracts, respectively, and $21,498 and $17,878 for the "take and pay" contract, respectively.
In 1980, the City, along with the California Cities of Los Angeles, Anaheim, Glendale, Pasadena and Riverside, entered into a power sales contract with IPA, which obligates each purchaser to purchase, on a "take or pay" basis, a percentage share of capacity and energy generated by the Intermountain Power Project (IPP) in Utah. The City, through contract, is entitled to 60 MW or 3.371% of the 1,800 MW of generation at the plant.
In addition, the City entered into an Excess Power Sales Agreement, also on a "take or pay" contract, with Utah municipal and cooperative IPP purchasers, which provides for the City to obtain up to an additional
0.797% (14 MW) when not used by the Utah municipal or cooperative IPP purchasers.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(11) POWER SUPPLY EXPENSES, (continued)
Southern Transmission System Project (STS)
Magnolia Power Project (MPP)
Prepaid Natural Gas Project (PNGP)
Milford I Wind Project (M1WP)
M1WP is located near Milford, Utah and began commercial operations in November 2009. The facility is a 200 MW nameplate capacity wind farm comprised of 97 wind turbine generators, delivered by a 90 mile transmission line, 345 kV, extending from the generation site to the IPP switchyard in Delta, Utah. This plant generates enough capacity to supply electricity to power more than 60,000 homes and offset over 366,000 tons per year of carbon dioxide that would otherwise be emitted from a coal-powered plant. SCPPA (on behalf of project participants LADWP, the City and the City of Pasadena, California) acquired 100.000% of this facility and issued bonds in 2010 to finance the purchase by prepayment of a specified quantity of energy from this facility over the 20-year delivery term, with a guaranteed annual quantity in each year. The City’s share of this project is 5.000% of the total capacity of 10 MW, energy, and environmental attribute rights produced at this facility.
The PNGP primarily consists of the acquisition by SCPPA of the right to receive an aggregate amount of approximately 135 billion cubic feet of natural gas, which subsequently was reduced to approximately 90 billion cubic feet as a result of restructuring to accelerate a portion of the long-term savings, reduce the remaining volumes of gas to be delivered, and shorten the overall duration of five prepaid agreements (with the City, and the Cities of Anaheim, Colton, Glendale and Pasadena).
The City’s natural gas supply agreement with SCPPA is expected to provide approximately one-fourth of the City’s gas requirements for MPP. The City has no obligation under the natural gas supply agreement to pay for gas not delivered.
67 Pursuant to an agreement dated May 1, 1983 with the IPA, SCPPA made payments-in-aid of construction to IPA to defray all costs of acquisition and construction of the STS, which provides for the transmission of energy from the Intermountain Generating Station in Utah to Southern California. STS commenced commercial operations in July 1986. The Department of Water and Power of the City of Los Angeles (LADWP), a member of SCPPA, serves as project manager and operating agent of IPP. The STS consists of a 488 mile transmission line and the associated converter station on each end. The 500 kV DC bi-pole transmission lines are currently rated at 2,400 megawatts (MW) as a result of an upgrade completed in December 2010. The City’s ownership share of this project is 4.498%.
In March 2003, the City, along with the Cities of Anaheim, Cerritos, Colton, Glendale and Pasadena, entered into a power sales agreement with SCPPA for MPP. MPP commenced commercial operations in Burbank, California in September 2005. MPP is a combined-cycle natural gas-fired generation plant with a nominal rate net base capacity of 242 MW, but can boost its output to 310 MW, if needed. The City has entitlement up to
97.6 MW or 30.992% of its output. The City’s share of outstanding debt is 32.350% which excludes debt relating solely to the City of Cerritos. The City is also MPP’s operating agent.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(11) POWER SUPPLY EXPENSES, (continued)
Mead-Adelanto Project (MA)
Tieton Hydro Project (THP)
Mead-Phoenix Project (MP)
Natural Gas Project (NGP)
Ameresco/Chiquita Landfill Gas Project
SCPPA also entered into an agreement dated December 17, 1991 to acquire a 67.917% interest in the MA, a transmission line extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada. Funding for these projects was provided by a transfer from the Multiple Projects Fund, and commercial operations commenced in April 1996. LADWP serves as the operations manager of MA. The project is a 202 mile, 500 kV AC transmission line with a rating of 1,200 MW. The City’s ownership share of MA is 11.534%.
This facility was acquired by SCPPA in November 2009 with 100.000% of entitlement shares. Each of the two project participants, the City and the City of Glendale, California, have an equal 50.000% entitlement share of this project. THP is a run of the reservoir hydroelectric facility, comprised of a powerhouse constructed at the base of the United States Bureau of Reclamation (USBR) Tieton Dam on the Tieton River in the State of Washington, on a 21 mile, 115 kV transmission line from the plant substation to the interconnection of the electrical grid. The powerhouse has a maximum capacity of 20 MW, with a nameplate capacity of 13.6 MW.
USBR owns and operates the dam and controls the flows into the Tieton River from the Rimrock Lake reservoir, which was created by the dam. Average annual generation from this plant is approximately 48,000 megawatt hours (MWh). The City is also Tieton’s operating agent.
SCPPA entered into an agreement dated December 17, 1991 to acquire an interest in the MP, a transmission line extending between the West Wing substation in Arizona and the Marketplace substation in Nevada. The agreement provides SCPPA with an 18.308% interest in the West Wing-Mead project, a 17.756% interest in the Mead substation project component and a 22.408% interest in the Mead-Marketplace component. The project is a 256 mile, 500 kV AC transmission line with a rating of 1,300 MW. The City’s ownership share of MP is 15.400%.
Ameresco/Chiquita Landfill Gas Project is located in Valencia, California near Lake Castaic and began commercial operations in November 2010. The renewable energy is generated using landfill gas produced at the Chiquita Canyon Landfill. This plant has a total generating capacity of 10 MW and SCPPA members receive 100.000% of the project output. The project participants are the City and the City of Pasadena. The City contracted to purchase approximately 16.700% or 1.7 MW. 68 The NGP was acquired by SCPPA in 2005 and 2006 and is being developed for the primary purpose of providing the participants with stable long-term supplies of gas for the purpose of fueling their electric generation needs. SCPPA issued 2008 Bonds to provide monies for the refinancing of the City's share of the costs of acquisition and development of the NGP through the redemption of a portion of SCPPA's draw down bonds previously issued for the NGP. SCPPA has sold entitlements to 100.000% of the production capacity of the NGP pursuant to separate gas sales agreements with the five participants - the City, and the Cities of Anaheim, Colton, Glendale and Pasadena. The participants are obligated to pay for such production capacity, including amounts required to pay debt service on bonds issued to finance their respective share of the NGP, on a "take or pay" basis. The City has 14.286% of entitlement shares in the Pinedale, Wyoming Subproject (2005 purchase), and 27.273% of entitlement shares in the Barnett, Texas Subproject (2006 purchase).
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(11) POWER SUPPLY EXPENSES, (continued)
Don A. Campbell Geothermal (aka Wild Rose)
Pebble Springs Wind Project
Copper Mountain 3 Solar Project
Desert Harvest II Solar Project
The Desert Harvest II Solar Project is a 70 MW solar project located in Riverside County, California. It achieved commercial operations on December 17, 2020. Desert Harvest II Solar Project supplies energy and renewable attributes to SCPPA under a twenty-five year Renewable Energy Credit (REC) + Index structure contract. The City and the Cities of Anaheim and Vernon are the participants. The City contracted to purchase approximately 31.34%
Pebble Springs is located in Gilliam County, Oregon, near the town of Arlington and began commercial operations in early 2009. The term of this agreement is 18 years. The City, and the Cities of Los Angeles and Glendale receive the entire energy output of 99 MW. The City contracted to purchase approximately 10.000% (10 MW).
In November 2013, the City began to receive geothermal energy output from the Wild Rose Geothermal (aka Don A. Campbell) Project, located in Mineral County, Nevada. The term of this agreement is 20 years. This is a geothermal power generating facility with a generating nameplate capacity of 25 MW and a projected capacity of 16.2 MW. The City and the City of Los Angeles are project participants. The City contracted to purchase approximately 15.380% (3.845 MW).
Copper Mountain 3 Solar Project is located near Boulder City, Nevada, approximately 25 miles southeast of Las Vegas, Nevada. The facility is the third phase of one of the largest photovoltaic solar facilities in the U.S. situated on about 1,400 acres of land. The City and the City of Los Angeles entered into a 20-year power sales agreement through SCPPA. The City’s share of this project is 16.000% (40 MW) of the total capacity of 250 MW. In May 2014, ahead of schedule, the City began to receive solar energy output from Copper Mountain 3. The plant went from partial commercial operations to full commercial operations in 2015. 69 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(11) POWER SUPPLY EXPENSES, (continued)
A summary of the City’s contracts and related projects and its commitments at June 30, 2022 are shown below:
Intermountain Power Project:
Intermountain Power Project(1)
Intermountain Power Project-
Renewal Contract(2)
Intermountain Power Project Total
SCPPA: (3)
Southern Transmission System
Magnolia Power Project (Project A)
Prepaid Natural Gas Project #1
Milford I Wind Project
Tieton Hydropower Project
Natural Gas Project - Barnett
Natural Gas Project - Pinedale
SCPPA Total
Total
* Burbank shares in % and amounts are estimated based on weighted average. (1) Based on the IPA Subordinated notes.
49,903$ 30,151$
City of Burbank portion*
32.350% 71,336 94,927
3,559$
City of Burbank share of
bonds
City of Burbank
obligation relating to
total debt service
43,818$
8,068
3.371%
4.498%
6,085$
26,592$
70 2,675
23,688
85,292
4,311
16,013
118,487
5,215
(2) Based on the 2022 Series A and B IPA outstanding bonds. It excludes Burbank's share of the transitional project indebteness (transitional debt) related to the STS construction and capitalized interest through 2025.
As of June 30, 2022, total transitional debt was $0. The IPA expects to issue long-term bonds to replace this transitional debt.
(3) All SCPPA listed obligations are "take or pay" contracts except the Prepaid Natural Gas Project #1, a "take and pay" contract, and the Milford I Wind Project, a prepaid purchase power agreement. 265,828
3,513
226,130$ 315,731$
8,285
9,116
3.334%
100.000%
100.000%
195,979
33.000%
5.000%
50.000%
10,882
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(11) POWER SUPPLY EXPENSES, (continued)
2022/23 2023/24 2024/25
Principal Interest Principal Interest Principal Interest Intermountain Power Project 3,559$ 1,199 - 1,326 - 1,312 SCPPA:
Southern Transmission System 2,826 398 1,217 256 1,277 196 Magnolia Power Project (Project A) 3,352 2,687 3,529 2,566 3,711 2,437 Prepaid Natural Gas Project #1 3,712 4,330 4,240 4,135 4,886 3,912 Milford I Wind Project 530 216 556 189 584 161 Tieton Hydropower Project 613 788 650 752 1,458 715 Natural Gas Project - Barnett 983 490 930 435 888 384 Natural Gas Project - Pinedale 317 158 300 141 287 124 Total 15,890 10,265 11,422 9,800 13,090 9,241
2025/26 2026/27 2027/32
Principal Interest Principal Interest Principal Interest Intermountain Power Project 813$ 1,312 853 1,272 4,934 5,692 SCPPA:
Southern Transmission System 1,341 133 1,407 66 - - Magnolia Power Project (Project A) 3,905 2,301 4,110 2,157 24,009 8,328 Prepaid Natural Gas Project #1 5,166 3,656 5,858 3,385 39,498 11,776 Milford I Wind Project 613 132 644 101 1,386 105 Tieton Hydropower Project 618 630 650 599 3,760 2,476 Natural Gas Project - Barnett 854 331 824 279 3,806 677 Natural Gas Project - Pinedale 276 107 266 90 1,229 219 Total 13,585$ 8,601 14,612 7,950 78,621 29,272 2032/37 2037/42 2042/47
Principal Interest Principal Interest Principal Interest Intermountain Power Project 6,266$ 4,361 7,940 2,687 5,785 590 SCPPA:
Southern Transmission System - - - - - - Magnolia Power Project (Project A) 28,721 3,116 - - - - Prepaid Natural Gas Project #1 21,932 2,001 - - - - Milford I Wind Project - - - - - - Tieton Hydropower Project 4,803 1,436 3,463 281 - - Natural Gas Project - Barnett - - - - - - Natural Gas Project - Pinedale - - - - - - Total 61,721$ 10,914$ 11,403$ 2,968$ 5,785 590 71 The following schedule details the amount of principal and interest that is due and payable by the City as part of the joint power agency contracts, by project, in the fiscal year indicated (year ending June 30).
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(11) POWER SUPPLY EXPENSES, (continued)
Total
Principal Interest
Intermountain Power Project 30,150$ 19,752$
SCPPA:
Southern Transmission System 8,068 1,049
Magnolia Power Project (Project A) 71,336 23,591
Prepaid Natural Gas Project #1 85,292 33,195
Milford I Wind Project 4,311 904
Tieton Hydropower Project 16,013 7,676
Natural Gas Project - Barnett 8,285 2,596
Natural Gas Project - Pinedale 2,675 838
Total 226,129 89,601
72 (12) ACCRUED LIABILITIES
Accrued liabilities for Governmental and Business Type Activities June 30, 2022, consist of the following:
Govern- Business
mental Type
Accrued expenditures 558$ 5,848$
Accrued payroll 5,455 -
Other liabilities 4,740 -
Total 10,753$ 5,848$
(13) DEFERRED COMPENSATION PLANS
(14) PREPAID ITEMS AND DEPOSITS
(15) SELF-INSURANCE
The City has adopted a deferred compensation plan in accordance with Internal Revenue Code Section 457 and 457p for its eligible full-time and part-time employees respectively.
Pursuant to changes in August, 1966 of IRC section 457, the City formally established a trust in which all assets and income of the 457 plans were placed. The assets, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights are held in trust for the exclusive benefit of the participants and their beneficiaries. These assets are no longer the property of the City, and as such are not subject to the claims of the City's general creditors, thus the assets of these plans are not reflected in the accompanying basic financial statements.
As of June 30, 2022, the City's deferred compensation plan had accumulated assets of $201,099 under the 457 plan, and $846 under the 457p plan.
While the ultimate amounts of losses incurred through June 30, 2022, are dependent on future developments, based upon information provided from the City Attorney, outside legal counsel and others involved with the administration of the programs, City management believes that the aggregate accrual is adequate to cover such losses. The City is insured with outside insurance carriers for up to $55,000 for general liability claims and there have not been any settlements in excess of insurance coverage for the past three years.
The City is self-insured for the first $1,000 on each general liability claim against the City. The City also self- insures for the first $2,000 for each workers compensation claim. At June 30, 2022, $9,082 was accrued for general liability claims, and $36,628 accrued for workers compensation claims. These amounts were determined by an actuarial study, performed annually. These accruals represent estimates of amounts to be paid for incurred and reported claims as well as incurred but unreported claims based upon past experience and modified for current trends and information. See the end of this note for a table showing changes in the aggregate liabilities for the past two years.
The City shows a total of $23,332 in prepaid items and deposits. $16,164 of the prepaid items are in the Electric Utility, $23 are in Water Rec and Sewer, $4,679 are in Water Utility, $18 are in Refuse Collection and Disposal, $2,206 in internal service funds, and $242 in the Governmental Fund ($129 in the general fund and $113 in the non-major governmental funds).
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
73 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(15) SELF-INSURANCE, (continued)
Authority for California Cities Excess Liability (ACCEL) Changes in the self-insurance liability for the last two fiscal years were as follows :
Fiscal year
2021-22 2020-21
Beginning liability, July 1 43,402 51,933$
Claims and changes in estimates 10,864 10,838
Claims payments during the year (8,557) (19,369)
Ending liability, June 30 45,709 43,402$
(16) LEASES
Lease Receivable - Lessor
The City is a lessor for facilities, buildings, parking spaces, and other various structures.
Governmental Activities:
Business-Type Activities:
The City participated in California Authority for Municipal Excess Liability (CAMEL), which is a joint insurance purchasing arrangement, from July 1998 to June 2004. The City rejoined ACCEL (Authority for California Cities Excess Liability on July 1, 2004.)
Since July 1, 2004, the City has been a member in ACCEL, which is a risk sharing pool for municipal excess liability.
Each individual member self-insures all general liability losses for the first $1,000 and the members of the pool share losses between $1,000 and $10,000. The members jointly purchase additional layers of coverage beyond the pooled layer, with Burbank purchasing an additional $45,000 of excess coverage, for total coverage of $55,000.
The layers of coverage above $10,000 are not pooled, but rather jointly purchased. 74 The claims liability is reported as a long-term liability in the self-insurance internal service funds and in long term liabilities in the Governmental Activities.
Building, facility, structure and space leases. Annual principal payments from $0 to $402,335 plus interest rates ranging from 2.74% to 5.93% with due dates ranging from FY22-23 to FY37-38.
Site and antenna site leases. Annual principal payments from $21,226 to $293,448 plus interest rate of
2.74% with due dates ranging from FY22-23 to FY35-36.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(16) LEASES, (continued)
Governmental Activities Business-Type Activities
Principal Interest Principal Interest Total
2023 590$ 95$ 323$ 134$ 1,142$
2024 469 65 332 126 992 2025 658 38 342 116 1,154 2026 12 10 351 107 480 2027 13 9 361 97 480 2028-2032 76 34 1,912 331 2,353 2033 and thereafter 73 10 1,437 72 1,592 Total minimum lease payments 1,891$ 261$ 5,058$ 983$ 8,193$ Lease Payable - Lessee
The City is a lessee for facilities, fiber and equipment.
Governmental Activities:
Leases with options to purchase equipment. Annual installments totaling $44,508 plus interest rate of 2.74% with due dates ranging from FY22-23 to FY30-31.
Business-Type Activities:
Leases with options to purchase equipment. Annual installments totaling $21,595 to $104,897 plus interest rate of 2.74% with due dates ranging from FY22-23 to FY31-32.
Governmental Activities Business-Type Activities
Principal Interest Principal Interest Total
2023 46$ 13$ 234$ 36$ 329$
2024 49 12 247 30 338 2025 53 10 259 23 345 2026 56 9 273 16 354 2027 59 7 125 9 200 2028-2032 232 12 234 17 495 2033 and thereafter - - - - - Total minimum lease payments 495$ 63$ 1,372$ 131$ 2,061$ Asset Schedule:
Governmental Business-Type
Activities Activities Activities
Buildings 540$ 628$ 1,168$
Equipment - 1,151 1,151
Less:accumulated amortization (57) (199) (256) 483$ 1,580$ 2,063$
75 (17) PENSION PLANS
A - General Information about the Pension Plans
Plan Descriptions
Benefits Provided
The Plans' provisions and benefits in effect at June 30, 2021 measurement date, are summarized as follows:
Prior to On or After
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.5%@55 2%@62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 8.00% 6.50%
Required employer contribution rates 10.555% 10.380%
Payment of unfunded liability 18,720,919$ -$
Prior to On or After
Hire date January 1, 2013 January 1, 2013
Benefit formula 3%@50 2.7%@57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 50 - 57
Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% Required employee contribution rates 9.00% 12.75%
Required employer contribution rates 23.421% 23.100%
Payment of unfunded liability 6,951,785$ -$
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
Miscellaneous
76 All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (Police and Fire) and Miscellaneous (all other) plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
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. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily defined benefits. For classic miscellaneous employees hired into a plan with the
2.5% at 55 formula, eligibility for service retirement is age 50 with at least 5 years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
Police
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(17) PENSION PLANS, (continued)
Prior to On or After
Hire date January 1, 2013 January 1, 2013
Benefit formula 3%@55 2.7%@57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.00% 12.70%
Required employer contribution rates 17.856% 17.550%
Payment of unfunded liability 4,453,319$ -$
Employees Covered
At the June 30, 2021 measurement date, the following employees were covered by the benefit terms :
Miscellaneous Police Fire
Inactive employees or beneficiaries currently
receiving benefits 1,358 263 196 Inactive employees entitled to but not yet
receiving benefits 1,086 49 32 Active employees 1,062 134 103 Total 3,506 446 331
Contributions
B - Net Pension Liability
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City employer contributions to CalPERS for the fiscal year were $47,656 (Miscellaneous $29,822; Police $11,566, and Fire $6,268). City 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 contributions requirements are classified as plan member contributions.
The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. 77 Fire
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(17) PENSION PLANS, (continued)
Actuarial Assumptions
Miscellaneous Police Fire
Valuation Date June 30, 2020 June 30, 2020 June 30, 2020 Measurement Date June 30, 2021 June 30, 2021 June 30, 2021 Actuarial Cost Method Entry-Age Normal Entry-Age Normal Entry-Age Normal Cost Method Cost Method Cost Method
Actuarial Assumptions:
Discount Rate 7.15% 7.15% 7.15%
Inflation 2.500% 2.500% 2.500%
Payroll Growth 2.750% 2.750% 2.750%
Projected Salary Increase 3.2% - 12.2% (1) 3.7% - 15.0% (1) 3.4% - 20.0% (1) Mortality (2) (2) (2)
Post Retirement Benefit Increase (3) (3) (3)
(1) Varies by entry age and service.
(2)
(3)
Change of Assumptions
Discount Rate
All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011 including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at the CalPERS website under Forms and Publications.
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:
In fiscal year 2017/2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions related to prior measurement periods.
78 The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(17) PENSION PLANS, (continued)
Long-term Expected Rate of Return
Assumed Real Return Real Return
Asset Years Years
Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(c) An expected inflation of 2.92% used for this period (a) In the CalPERS AFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
79 Asset Class (a)
The expected real rates of return by asset class are as follows:
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short term and long term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(17) PENSION PLANS, (continued)
C - Changes in the Net Pension Liability
Balance at June 30, 2020 958,473$ 737,929 220,544 Changes in the Year:
Service cost 14,577 - 14,577 Interest on the total pension liability 67,399 - 67,399 Differences between actual and expected experience 2,475 - 2,475 Contribution - employer - 33,911 (33,911) Contribution - employee - 6,840 (6,840) Net investment income - 167,618 (167,618) Administrative expenses - (737) 737 (51,190) (51,190) -
Net Changes 33,261 156,442 (123,181) Balance at June 30, 2021 991,734$ 894,371 97,363 Balance at June 30, 2020 335,165$ 236,783 98,382 Changes in the Year:
Service cost 5,693 - 5,693 Interest on the total pension liability 23,696 - 23,696 Differences between actual and expected experience 3,158 - 3,158 Contribution - employer - 13,040 (13,040) Contribution - employee - 2,751 (2,751) Net investment income - 53,915 (53,915) Administrative expenses - (236) 236 (19,523) (19,523) -
Net Changes 13,024 49,947 (36,923) Balance at June 30, 2021 348,189$ 286,730 61,459 The changes in the net pension liability for the Police Plan are as of the measurement date are as follows (actual amounts):
Benefit payments, including refunds of employee
contributions
80 Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
The changes in the net pension liability for the Miscellaneous Plan are as of the measurement date are as follows (actual amounts):
Net Pension
Liability
Increase (Decrease)
Benefit payments, including refunds of employee
contributions
Total Pension
Liability
Plan Fiduciary
Net Position
Increase (Decrease)
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(17) PENSION PLANS, (continued)
Balance at June 30, 2020 256,077$ 195,846 60,231 Changes in the Year:
Service cost 3,635 - 3,635 Interest on the total pension liability 17,958 - 17,958 Differences between actual and expected experience 329 - 329 Contribution - employer - 8,489 (8,489) Contribution - employee - 1,558 (1,558) Net investment income - 44,278 (44,278) Administrative expenses - (196) 196 (14,114) (14,114) -
Net Changes 7,808 40,015 (32,207) Balance at June 30, 2021 263,885$ 235,861 28,024 Sensitivity of the Net Pension Liability to Changes in the Discount Rate Miscellaneous Police Fire
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability 225,101$ 106,726$ 61,783$ Current Discount Rate 7.15% 7.15% 7.15%
Net Pension Liability 97,363$ 61,459$ 28,024$ 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability/(Asset) (8,297)$ 24,186$ 77$ Pension Plan Fiduciary Net Position
The changes in the net pension liability for the Fire Plan are as of the measurement date are as follows (actual amounts):
81 Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Increase (Decrease)
Plan Fiduciary
Net Position
Net Pension
Liability
The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate (actual amounts):
Total Pension
Liability
Benefit payments, including refunds of employee
contributions
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(17) PENSION PLANS, (continued)
D - Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions Miscellaneous Plan Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 29,822$ -$ Differences between actual and expected experience 2,058 (614) Change in assumptions - -
Net differences between projected and actual earnings on plan investments - (83,731) Total 31,880$ (84,345)$
Amount
2019 5,701$
2020 15,484
2023 (20,623)
2024 (18,734)
2025 (19,869)
2026 (23,061)
2027 -
Thereafter -
Police plan Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 11,566$ -$ Differences between actual and expected experience 2,843 (637) Change in assumptions - -
Net differences between projected and actual earnings on plan investments - (26,969) Total 14,409$ (27,606)$
For the year ended June 30, 2021, the City recognized pension expense/(income) of ($2,997) for Miscellaneous, $2,672 for Police and ($540) for Fire. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the three City Plans: Miscellaneous, Police and Fire. $11,566 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:
82 $29,822 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending
June 30,
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(17) PENSION PLANS, (continued)
Amount
2019 1,837$
2023 (5,761)
2024 (5,630)
2025 (5,946)
2026 (7,426)
2027 -
Thereafter -
Fire plan Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 6,268$ -$ Differences between actual and expected experience 609 (1,535) Change in assumptions - (139)
Net differences between projected and actual earnings on plan investments - (21,961) Total 6,877$ (23,635)$
Amount
2019 929$
2020 3,779
2023 (6,057)
2024 (5,402)
2025 (5,481)
2026 (6,085)
2027 -
Thereafter -
E - Payable to the Pension Plan
83 Year Ending
June 30,
Year Ending
June 30,
$6,268 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as pension expense as follows:
At June 30, 2022, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.
(18) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
PEMHCA
BERMT
URMT
The Utility Retiree Medical Trust is a defined benefit agent multiple employer plan, established during the 2008-09 fiscal year for IBEW members and 12 management employees as a supplement to benefit payments from BERMT and PEMHCA. The total target benefit is $1,200/month for individuals age 50 to age 64 and $750/month for those age 65 and above, with the exception that for qualifying employees who retire after December 16, 2015 and who have not contributed to Medicare while employed at Burbank and who are also not otherwise eligible for premium-free Medicare Part A at age 65 and older, the maximum amount at age 65 and older shall be $975/month, including payments from BERMT, PEMHCA minimum and Utility Retiree Medical Trust. For the fiscal year 2021-22, the City contributed $229.
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
The City contributes to three post retirement medical benefit plans:
The CalPERS Public Employees' Medical and Hospital Care Act (PEMHCA) plan under the authority of section 22750 to 22948 of the state of California's government code, is a defined benefit agent multiple employer plan.
The City pays the required PEMHCA minimum contribution for all miscellaneous and safety employees retiring directly from the City who enroll in a CalPERS medical plan. The 2022 PEMHCA minimum contribution amount is $149 per month. In addition, the City pays retiree health contribution amounts of $100 per month for 14 management retirees, and $188 per month for 9 IBEW retirees. For these management/IBEW retirees, the PEMHCA minimum required contribution of $149 is paid in addition to the retiree health contribution amounts.
The PEMHCA benefit provisions are established and amended through negotiations between the City and its unions.
The Burbank Employees Retiree Medical Trust (BERMT) is a defined contribution plan. The BERMT was established in April 2003 by the city's employee associations to provide post retirement medical benefits to all non- safety employees, including elected and appointed officials. BERMT members represented by a bargaining group are required to contribute $50 per pay period, and the City contributes $50 per pay period for these members.
BERMT members unrepresented by a bargaining group are not able to make employee contributions, and the City contributes $100 per pay period for these members. BERMT plan provisions and contribution requirements are established by and may be amended by the BERMT board. The trust is controlled by the seven voting members from the various employee associations appointed to three year terms. The City appoints an eighth member to the board, but that member is non-voting. Investments are determined by the BERMT plan trustees, and are governed by ERISA provisions. Eligibility for benefits require that members are retired from the City, and have reached age 58 with a minimum of 5 years of contributions into the plan. The benefit ranges from $150 to $630 in reimbursements per month based on number of contributions, for eligible medical expenses. For the fiscal year 2021-22, the City contributed $1,373 to BERMT.
The City has pre-funded the PEMHCA and URMT Plans through CalPERS OPEB Trust (CERBT) and has a policy of contributing 100% of the City's Actuarially Determined Contribution (ADC) each year. For the fiscal year 2021-22 (measurement period of June 30, 2021), the City contributed $1,821 consisting of $1,717 in implied subsidy payment contributions netted against $107 in benefit payments and administrative expense. 84 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(18) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS, (continued) PEMHCA CERBT - State of California PERS - 400 Q St - Sacramento, CA 95811 The Utility Retiree Medical Trust does not issue a separate financial statement.
Employees Covered
As of June 30, 2021 measurement date, the following current and former employees were covered by the plans:
PEMHCA URMT
Inactive employees or beneficiaries currently receiving benefits 641 64 Inactives entitled to but not yet receiving benefits 563 - Active employees 1,286 145
Total 2,490 209
Contributions
Net OPEB Liability
PEMHCA URMT
Valuation Date June 30, 2021 June 30, 2021
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:
Discount Rate 6.25% 6.25%
Inflation 2.50% 2.50%
Payroll Growth 2.75% 2.75%
Projected Salary Increase 2.75% 2.75%
Expected long term investment rate of return 6.75% 6.75% Healthcare cost trend rates (PEMHCA)
6.5% Non-Medicare
decreasing to 4% in 2076 and later
Benefit Increase trend rates (URMT) 0% to 2023, then 3.5% after Pre-retirement turnover
Mortality (2) (2)
85 The URMT and PEMHCA contribution requirements are established by City policy and may be amended. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2022, the City's total contributions of $1,821 consist of payments to the trust of $1,821 ($1,592 to PEHMCA; $229 to URMT).
The City's net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.
4.6% Medicare (Kaiser)
Derived from CALPERS pension plan
The CERBT is a tax qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to pre-fund OPEB as described in GASB Statement 45. The CERBT issues a publicly available financial report that includes financial statements and required supplementary information for the City, not individualized, but in aggregate with the other CERBT participating agencies. This report may be obtained at the following address:
5.65% Medicare (non-Kaiser)
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(18) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS, (continued) (2)
New
Strategic Expected
Asset Class Allocation Real Return
Global Equity 59.00% 4.56%
Global Fixed Income 25.00% 0.78%
TIPS 5.00% -0.08%
Real Estate 8.00% 4.06%
Commodities 3.00% 1.22%
Total 100.00%
Change of Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that the City's contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the 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 plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Changes in Assumptions
The probabilities of mortality are derived using CalPERS membership data for all funds. The mortality table used was developed based on CalPERS specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 1997-2015 experience study report.
The discount rate used in the June 30, 2021 valuation was 6.25%, a decrease from the June 30, 2019 valuation discount rate of 6.75%. The discount rate changed due to newer capital market assumptions and inflation being lowered.
The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan's target asset allocation are summarized in the following table:
Changes in assumptions since the measurement period June 30, 2020, consisted of updating the discount rate based on newer capital market assumptions, lowering inflation, which also affected discount rate, medical trend and PEMCHA minimum increases, and the mortality improvement scale was updated to Scale MP-2021. Age factors for estimating age-based claims were updated for PEMCHA, usage assumption was added for URMT, and the benefit cap increase rate was lowered for URMT.
The actuarial assumptions used in the June 30 2021 valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City. 86 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(18) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS, (continued) Changes in the net OPEB liability - Total
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
(Asset)Balance at June 30, 2020 (Measurement date) $ 67,678 46,963 20,715 Changes in the year :
Service cost 1,747 - 1,747 Interest on the total OPEB liability 4,594 - 4,594 Differences between actual and expected experience (5,431) - (5,431) Changes in assumptions 6,031 - 6,031 Contributions - employer - 3,029 (3,029) Contributions - employee - 230 (230) Net investment income - 13,270 (13,270) Administrative expenses - (32) 32 Benefit payments (2,706) (2,706) - Net Changes 4,235 13,791 (9,556) Balance at June 30, 2021 (Measurement date) $ 71,913 60,754 11,159 Changes in the net OPEB liability - PEHMCA
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
(Asset)Balance at June 30, 2020 (Measurement date) $ 55,132 35,697 19,435 Changes in the year :
Service cost 1,396 - 1,396 Interest on the total OPEB liability 3,732 - 3,732 Differences between actual and expected experience (4,297) - (4,297) Changes in assumptions 8,228 - 8,228 Contributions - employer - 2,801 (2,801) Net investment income - 10,116 (10,116) Administrative expenses - (28) 28 Benefit payments (2,452) (2,452) - Net Changes 6,607 10,437 (3,830) Balance at June 30, 2021 (Measurement date) $ 61,739 $ 46,134 $ 15,605 Increase (Decrease)
87 Increase (Decrease)
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(18) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS, (continued) Changes in the net OPEB liability - URMT
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
(Asset)Balance at June 30, 2020 (Measurement date) $ 12,546 11,266 1,280 Changes in the year :
Service cost 351 - 351 Interest on the total OPEB liability 862 - 862 Differences between actual and expected experience (1,134) - (1,134) Changes in assumptions (2,197) - (2,197) Contributions - employer - 228 (228) Contributions - employee - 230 (230) Net investment income - 3,154 (3,154) Administrative expenses - (4) 4 Benefit payments (254) (254) - Net Changes (2,372) 3,354 (5,726) Balance at June 30, 2021 (Measurement date) $ 10,174 $ 14,620 $ (4,446) Sensitivity of the net OPEB liability to changes in the discount rate
PEMHCA URMT
1% Decrease 5.25% 5.25%
Net OPEB Liability 24,072$ (2,613)$
Current Discount Rate 6.25% 6.25%
Net OPEB Liability 15,605$ (4,446)$
1% Increase 7.25% 7.25%
Net OPEB Liability (Asset) 8,621$ (5,900)$ Sensitivity of the net OPEB liability to changes in healthcare cost trend rates
PEMHCA URMT
1% Decrease (Asset)
Net OPEB Liability 8,064$ (6,931)$
Current Trend
Net OPEB Liability 15,605$ (4,446)$
1% Increase
Net OPEB Liability 24,866$ (1,283)$
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or higher than the current discount rate:
88 Increase (Decrease)
The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or higher than the current healthcare cost trend rates:
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(18) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS, (continued) OPEB expense and deferred outflows/inflows of resources related to OPEB :
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date $ 1,592 $ - Differences between actual and expected experience - 5,511 Change in assumptions 7,131 9,846 Differences between projected and actual earnings - 5,545 Total $ 8,723 $ 20,902
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date $ 229 -$ Differences between actual and expected experience 203 997 Change in assumptions 112 1,932 Differences between projected and actual earnings - 1,721 Total $ 544 $ 4,650
PEMHCA URMT
2023 (3,697) (767)
2024 (3,622) (747)
2025 (3,626) (751)
2026 (3,852) (820)
2027 239 (341)
Thereafter 787 (909)
(13,771)$ (4,335)$
Payable to the OPEB Plan
For the fiscal year ended June 30, 2022 the City recognized OPEB expense of ($1,155) and ($609) for PEMHCA and URMT, respectively. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
PEMHCA
89 At June 30, 2022, the City reported a payable of $44 for the outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2022.
$1,592 and $229 reported as deferred outflows of resources related to contributions subsequent to the measurement date for PEHMCA and URMT respectively, will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Year Ending
June 30,
URMT
(19) ADDITIONAL INFORMATION
Burbank Operable Unit (BOU)
Deficit Net Position
(20) HEDGE POLICIES AND OUTSTANDING HEDGE CONTRACTS
Derivative Instruments
City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
Pursuant to a consent decree of March 25, 1992, Lockheed Martin Corporation (Lockheed) constructed a groundwater treatment system, now known as the BOU, on property within and owned by the City, designed to treat volatile organic compounds contaminating groundwater in parts of the San Fernando Groundwater Basin. A second consent decree, dated May 28, 1997, provided that Lockheed was responsible for the cost of operation and maintenance of the BOU, through at least December 11, 2018. The City recognized ownership of the BOU on December 1, 1998. However, due to the major uncertainties that existed concerning the realizability within reasonable limits of a fair value of the BOU, the City did not recognize any value associated with the BOU in the accompanying basic financial statements. On December 12, 2000, the commencement date, the City became responsible for oversight of the BOU. The BOU represents an ongoing obligation of Lockheed to mitigate damages to the aforementioned basin groundwater.
On June 8, 2018, the United States Environmental Protection Agency (EPA) issued a Unilateral Administrative Order (UAO) requiring Lockheed to design, construct and operate wells and conveyance piping that will enable Lockheed to pump and convey groundwater from the eastern portion of the North Hollywood Operable Unit (NHOU) to the BOU, and then cause the extracted groundwater to be treated at the BOU and delivered to the City of Los Angeles (Los Angeles). On September 11, 2018 the Burbank City Council approved two agreements concerning Lockheed’s obligations under the UAO. The first agreement between Lockheed and the City obligates Lockheed to design and construct wells and conveyance piping, to continue funding the City’s operation of the BOU Treatment Facility, and to pay for delivery of water by the City to Los Angeles, until such time as the EPA issues an order that “no further action” is required to remediate the basin groundwater. The second agreement between the Los Angeles and the City sets forth the terms and conditions for the City’s delivery of treated groundwater to Los Angeles. Neither agreement requires any new financial obligations for the City’s operation of the BOU or the City’s operation of any new or additional facilities required under these agreements. It is projected that remediation activities to clean the basin groundwater and reach a condition of “no further action required” is more than 20 years into the future.
The Agency Fiduciary Trust fund has a deficit net position of $29,988, which is expected to be offset by future tax increment revenues to the extent that they are received.
In accordance with GASB Statement No. 53, the Electric Fund recorded the fair values of its financial natural gas hedges on the statement of net position. As of June 30, 2022, the fair values of the financial natural gas hedges were approximately $2,020 and were recorded as current assets and deferred inflow of resources on the Statement of Net Position.
The Electric Utility Fund utilizes natural gas hedging as outlined in its Energy Risk Management Policy. The purpose of hedging is to protect against fluctuating prices and deliver stable and competitive rates to its retail customers.
90 City of Burbank
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022
(in thousands)
(20) HEDGE POLICIES AND OUTSTANDING HEDGE CONTRACTS, (continued) Contract Contract First Last
Quantity Price Effective Date Effective Date Fair Value FY22-23 1,095,000 MMBtu* $5.26 to $9.86 7/1/2022 6/30/2022 ($2,020) $ 432,448 $ 87,092
91 The Electric Utility Fund entered into natural gas hedging contracts in order to stabilize the cost of gas needed to produce electricity to serve its customers. It is designed to cap gas prices over a portion of the forecasted gas requirements. The Electric Utility Fund does not speculate when entering into financial transactions. Financial hedges are variable to fixed-price swaps, and hedge transactions are layered in to achieve dollar cost averaging. As of June 30, 2022, the Electric Fund's financial natural gas hedges are as follows:
Gas Hedging
Contract
The fair value of the natural gas hedges were affected by an increase in the contracted natural gas prices during the year. All fair values were estimated using a third party forward curve subscription by the Intl FCStone Financial Inc.
Fiscal Year Ended 2022 2021 2020 2019 2018
Measurement Period: 2021 2020 2019 2018 2017
Total Pension Liability:
Service cost 14,577,141$ 14,012,953$ 14,096,883$ 14,127,664$ 13,739,626$ Interest on total pension liability 67,398,866 65,127,532 63,160,126 60,797,957 59,537,285 Changes in assumptions - - - (3,974,998) 49,265,927 Differences between expected and actual experience 2,475,224 (1,637,637) 3,661,939 (8,843,154) (12,762,548) (51,189,890) (49,071,922) (47,050,536) (44,019,175) (42,022,775) Net Change in Total Pension Liability 33,261,341 28,430,926 33,868,412 18,088,294 67,757,515 Total Pension Liability - Beginning of Year 958,472,623 930,041,697 896,173,285 878,084,991 810,327,476 Total Pension Liability - End of Year (a) 991,733,964$ 958,472,623$ 930,041,697$ 896,173,285$ 878,084,991$ Plan Fiduciary Net Position:
Contributions - employer 33,910,969$ 34,627,987$ 21,361,568$ 19,060,004$ 16,773,561$ Contributions - employee 6,839,517 6,366,193 6,083,365 6,414,838 6,161,227 Net investment income 167,617,707 35,639,006 44,748,455 54,901,231 66,930,398 Benefit payments (51,189,890) (49,071,922) (47,050,536) (44,019,175) (42,022,775) Plan to plan resource movement - - - (1,598) - Administrative expense (737,147) (1,002,859) (490,056) (1,018,041) (895,258) Other Miscellaneous Income/(Expense) - - 1,598 (1,933,277) - Net Change in Plan Fiduciary Net Position 156,441,156 26,558,405 24,654,394 33,403,982 46,947,153 Plan Fiduciary Net Position - Beginning of Year 737,929,490 711,371,085 686,716,691 653,312,709 606,365,556 Plan Fiduciary Net Position - End of Year (b) 894,370,646$ 737,929,490$ 711,371,085$ 686,716,691$ 653,312,709$ Net Pension Liability - Ending (a)-(b) 97,363,318$ 220,543,133$ 218,670,612$ 209,456,594$ 224,772,282$ Plan fiduciary net position as a percentage of the
total pension liability 90.18% 76.99% 76.49% 76.63% 74.40% Covered payroll 80,859,508$ 80,246,387$ 81,436,847$ 78,990,606$ 78,910,291$ Net pension liability as percentage of
covered payroll 120.41% 274.83% 268.52% 265.17% 284.85% Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
- From fiscal year June 30, 2015 to June 30, 2016:
- From fiscal year June 30, 2017 to June 30, 2018:
The discount rate changed from 7.65% to 7.15%.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 92 City of Burbank
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - MISCELLANEOUS PLAN
REQUIRED SUPPLEMENTARY INFORMATION
Last Ten Fiscal Years*
Benefit payments, including refunds of employee
contributions
The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for prension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
Fiscal Year Ended 2017 2016 2015
Measurement Period: 2016 2015 2014
Total Pension Liability:
Service cost 12,369,977$ 12,555,200$ 13,181,727$ Interest on total pension liability 58,555,881 56,944,154 55,430,897 Changes in assumptions - (13,841,120) - Differences between expected and actual experience (9,763,032) (12,736,964) - (39,699,491) (37,451,291) (35,412,463)
Net Change in Total Pension Liability 21,463,335 5,469,979 33,200,161 Total Pension Liability - Beginning of Year 788,864,141 783,394,162 750,194,001 Total Pension Liability - End of Year (a) 810,327,476$ 788,864,141$ 783,394,162$ Plan Fiduciary Net Position:
Contributions - employer 15,318,184$ 13,696,952$ 12,179,748$ Contributions - employee 6,148,285 6,443,320 6,416,442 Net investment income 3,281,930 13,820,471 94,169,766 Benefit payments (39,699,491) (37,451,291) (35,412,463) Plan to plan resource movement (334) (2) - Administrative expense (378,891) (700,061) - Other Miscellaneous Income/(Expense) - - - Net Change in Plan Fiduciary Net Position (15,330,317) (4,190,611) 77,353,493 Plan Fiduciary Net Position - Beginning of Year 621,695,873 625,886,484 548,532,991 Plan Fiduciary Net Position - End of Year (b) 606,365,556$ 621,695,873$ 625,886,484$ Net Pension Liability - Ending (a)-(b) 203,961,920$ 167,168,268$ 157,507,678$ Plan fiduciary net position as a percentage of the
total pension liability 74.83% 78.81% 79.89%
Covered payroll 78,720,924$ 79,288,556$ 78,428,082$ Net pension liability as percentage of
covered payroll 259.09% 210.84% 200.83%
Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
- From fiscal year June 30, 2015 to June 30, 2016:
- From fiscal year June 30, 2017 to June 30, 2018:
The discount rate changed from 7.65% to 7.15%.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for prension plan administrative expense.
The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. 93 The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Benefit payments, including refunds of employee
contributions
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - MISCELLANEOUS PLAN Last Ten Fiscal Years*
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 21,822,116$ 25,912,752$ 24,622,486$ 21,347,905$ 19,042,423$ (29,822,116) (33,912,752) (34,622,486) (21,347,905) (19,042,423) Contribution deficiency (excess) (8,000,000)$ (8,000,000)$ (10,000,000)$ -$ -$ Covered payroll 85,067,623$ 80,859,508$ 80,246,387$ 81,436,847$ 78,990,606$ Contributions as a percentage of covered payroll 35.06% 41.94% 43.15% 26.21% 24.11% Notes to Schedule:
Valuation Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age**
Amortization method Level percentage of payroll, closed** Asset valuation method 15 year smoothed market***
Inflation 2.75%**
Salary increases 3.30% to 14.20% depending on age, service and type of employment** Investment rate of return 7.25%, net of pension plan investment expense, including inflation** Retirement age 50 years 2.7% @ 55 and 52 years 2% @ 62** Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.
Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board, first used in the June 30, 2009 valuation.
For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date.**
*** The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015) valued assets using a 15 Year Smoothed Market method. The fair value asset valuation method was utilized for the June 30, 2013, 2014, and 2015 valuations (applicable for fiscal years ended June 30, 2016, 2017, and 2018 respectively).
City of Burbank
Last Ten Fiscal Years*
94 SCHEDULE OF CONTRIBUTIONS - MISCELLANEOUS PLAN
REQUIRED SUPPLEMENTARY INFORMATION
Contributions in relation to the actuarially
determined contributions
** The valuation for June 30, 2012, 2013, 2014, and 2015 (applicable to fiscal year ended June 30, 2015, 2016, 2017, and 2018 respectively) included the same actuarial assumptions.
Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Actuarially determined contribution 15,318,184$ 13,696,952$ 12,179,748$ (15,318,184) (13,696,952) (12,179,748)
Contribution deficiency (excess) -$ -$ -$ Covered payroll 78,910,291$ 78,720,924$ 79,288,586$
Contributions as a percentage of covered payroll 19.41% 17.40% 15.36% Notes to Schedule:
Valuation Date June 30, 2014 June 30, 2013 June 30, 2012 Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age**
Amortization method Level percentage of payroll, closed** Asset valuation method 15 year smoothed market***
Inflation 2.75%**
Salary increases 3.30% to 14.20% depending on age, service and type of employment** Investment rate of return 7.15%, net of pension plan investment expense, including inflation** Retirement age 50 years 2.7% @ 55 and 52 years 2% @ 62** Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. *** The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015) valued assets using a 15 Year Smoothed Market method. The fair value asset valuation method was utilized for the June 30, 2013, 2014, and 2015 valuations (applicable for fiscal years ended June 30, 2016, 2017, and 2018 respectively). 95 City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - MISCELLANEOUS PLAN
Last Ten Fiscal Years*
Contributions in relation to the actuarially
determined contributions
Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board, first used in the June 30, 2009 valuation.
For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date.**
** The valuation for June 30, 2012, 2013, 2014, and 2015 (applicable to fiscal year ended June 30, 2015, 2016, 2017, and 2018 respectively) included the same actuarial assumptions.
Fiscal Year Ended 2022 2021 2020 2019 2018
Measurement Period: 2021 2020 2019 2018 2017
Total Pension Liability:
Service cost 5,693,191$ 5,678,118$ 6,110,040$ 5,927,767$ 5,939,112$ Interest on total pension liability 23,695,731 22,805,370 22,193,102 21,286,752 20,593,552 Changes in assumptions - - - (1,764,826) 16,967,788 Differences between expected and actual experience 3,157,943 (1,386,080) 2,436,475 1,141,534 (3,062,003) (19,523,043) (18,869,710) (17,406,112) (16,725,700) (15,691,491) Net Change in Total Pension Liability 13,023,822 8,227,698 13,333,505 9,865,527 24,746,958 Total Pension Liability - Beginning of Year 335,165,799 326,938,101 313,604,596 303,739,069 278,992,111 Total Pension Liability - End of Year (a) 348,189,621$ 335,165,799$ 326,938,101$ 313,604,596$ 303,739,069$ Plan Fiduciary Net Position:
Contributions - employer 13,039,866$ 13,195,299$ 9,132,664$ 8,542,716$ 7,665,029$ Contributions - employee 2,751,240 1,819,037 1,794,066 1,869,984 1,816,247 Net investment income 53,915,667 11,484,526 14,471,780 17,739,681 21,724,360 Benefit payments (19,523,043) (18,869,710) (17,406,112) (16,725,700) (15,691,491) Plan to plan resource movement - - - (517) - Administrative expense (236,532) (323,507) (158,169) (329,062) (289,301) Other Miscellaneous Income/(Espense) - - 517 (624,894) - Net Change in Plan Fiduciary Net Position 49,947,198 7,305,645 7,834,746 10,472,208 15,224,844 Plan Fiduciary Net Position - Beginning of Year 236,783,255 229,477,610 221,642,864 211,170,656 195,945,812 Plan Fiduciary Net Position - End of Year (b) 286,730,453$ 236,783,255$ 229,477,610$ 221,642,864$ 211,170,656$ Net Pension Liability - Ending (a)-(b) 61,459,168$ 98,382,544$ 97,460,491$ 91,961,732$ 92,568,413$ Plan fiduciary net position as a percentage of the
total pension liability 82.35% 70.65% 70.19% 70.68% 69.52% Covered payroll 17,855,717$ 19,070,633$ 18,221,342$ 17,900,752$ 17,302,688$ Net pension liability as percentage of
covered payroll 344.20% 515.89% 534.87% 513.73% 534.99% Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
- From fiscal year June 30, 2015 to June 30, 2016:
- From fiscal year June 30, 2017 to June 30, 2018:
The discount rate changed from 7.65% to 7.15%.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 96 City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - POLICE PLAN Last Ten Fiscal Years*
Benefit payments, including refunds of employee
contributions
The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for prension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
Fiscal Year Ended 2017 2016 2015
Measurement Period: 2016 2015 2014
Total Pension Liability:
Service cost 5,345,666$ 5,321,905$ 5,537,702$
Interest on total pension liability 20,170,664 19,538,993 18,902,036 Changes in assumptions - (4,702,484) - Differences between expected and actual experience (1,822,421) (2,163,782) - Changes in benefits - - - (15,040,385) (14,546,053) (13,616,037)
Net Change in Total Pension Liability 8,653,524 3,448,579 10,823,701 Total Pension Liability - Beginning of Year 270,338,587 266,890,008 256,066,307 Total Pension Liability - End of Year (a) 278,992,111$ 270,338,587$ 266,890,008$ Plan Fiduciary Net Position:
Contributions - employer 6,464,462$ 5,800,229$ 5,711,333$ Contributions - employee 1,583,214 1,549,949 1,591,859 Net investment income 1,022,785 4,432,031 31,026,505 Benefit payments (15,040,385) (14,546,053) (13,616,037) Plan to plan resource movement 334 2 - Administrative expense (123,132) (227,394) - Other Miscellaneous Income/(Espense) - - -
Net Change in Plan Fiduciary Net Position (6,092,722) (2,991,236) 24,713,660 Plan Fiduciary Net Position - Beginning of Year 202,038,534 205,029,770 180,316,110 Plan Fiduciary Net Position - End of Year (b) 195,945,812$ 202,038,534$ 205,029,770$ Net Pension Liability - Ending (a)-(b) 83,046,299$ 68,300,053$ 61,860,238$ Plan fiduciary net position as a percentage of the
total pension liability 70.23% 74.74% 76.82%
Covered payroll 17,293,508$ 17,523,263$ 16,789,814$ Net pension liability as percentage of
covered payroll 480.22% 389.77% 368.44%
Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
- From fiscal year June 30, 2015 to June 30, 2016:
- From fiscal year June 30, 2017 to June 30, 2018:
The discount rate changed from 7.65% to 7.15%.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 97 City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - POLICE PLAN Last Ten Fiscal Years*
Benefit payments, including refunds of employee
contributions
The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for prension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 8,566,015$ 10,036,931$ 10,194,243$ 9,151,172$ 8,548,128$ (11,566,015) (13,036,931) (13,194,243) (9,151,172) (8,548,128) Contribution deficiency (excess) (3,000,000)$ (3,000,000)$ (3,000,000)$ -$ -$ Covered payroll 18,359,211$ 17,855,717$ 19,070,633$ 18,221,342$ 17,900,752$ Contributions as a percentage of covered payroll 63.00% 73.01% 69.19% 50.22% 47.75% Notes to Schedule:
Valuation Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age**
Amortization method Level percentage of payroll, closed** Asset valuation method 15 year smoothed market***
Inflation 2.75%**
Salary increases 3.30% to 14.20% depending on age, service and type of employment** Investment rate of return 7.25%, net of pension plan investment expense, including inflation** Retirement age 50 years 2.7% @ 55 and 52 years 2% @ 62** Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - POLICE PLAN
Last Ten Fiscal Years*
98 Contributions in relation to the actuarially
determined contributions
Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board, first used in the June 30, 2009 valuation. For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date.** ** The valuation for June 30, 2012, 2013, 2014, and 2015 (applicable to fiscal year ended June 30, 2015, 2016, 2017, and 2018 respectively) included the same actuarial assumptions *** The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015) valued assets using a 15 Year Smoothed Market method. The fair value asset valuation method was utilized for the June 30, 2013, 2014, 2015 and 2017 valuations (applicable for fiscal years ended June 30, 2016, 2017, and 2018 respectively).
Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Actuarially determined contribution 6,464,462$ 5,800,229$ 5,711,333$ (6,464,462) (5,800,229) (5,711,333)
Contribution deficiency (excess) -$ -$ -$ Covered payroll 17,302,688$ 17,293,508$ 17,523,263$
Contributions as a percentage of covered payroll 37.36% 33.54% 32.59% Notes to Schedule:
Valuation Date June 30, 2014 June 30, 2013 June 30, 2012 Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age**
Amortization method Level percentage of payroll, closed** Asset valuation method 15 year smoothed market***
Inflation 2.75%**
Salary increases 3.30% to 14.20% depending on age, service and type of employment** Investment rate of return 7.15%, net of pension plan investment expense, including inflation** Retirement age 50 years 2.7% @ 55 and 52 years 2% @ 62** Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 99 City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - POLICE PLAN
Last Ten Fiscal Years*
Contributions in relation to the actuarially
determined contributions
Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board, first used in the June 30, 2009 valuation. For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date.** *** The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015) valued assets using a 15 Year Smoothed Market method. The fair value asset valuation method was utilized for the June 30, 2013, 2014, 2015 and 2017 valuations (applicable for fiscal years ended June 30, 2016, 2017, and 2018 respectively). ** The valuation for June 30, 2012, 2013, 2014, and 2015 (applicable to fiscal year ended June 30, 2015, 2016, 2017, and 2018 respectively) included the same actuarial assumptions.
Fiscal Year Ended 2022 2021 2020 2019 2018
Measurement Period: 2021 2020 2019 2018 2017
Total Pension Liability:
Service cost 3,635,467$ 3,762,167$ 3,747,644$ 3,775,121$ 3,855,335$ Interest on total pension liability 17,958,411 17,418,499 17,071,103 16,479,835 16,106,198 Changes in assumptions - - - (1,249,941) 13,010,714 Differences between expected and actual experience 329,415 (2,553,732) 1,046,134 (1,046,144) (2,464,520) (14,114,524) (13,676,535) (13,150,627) (12,885,100) (11,914,224) Net Change in Total Pension Liability 7,808,769 4,950,399 8,714,254 5,073,771 18,593,503 Total Pension Liability - Beginning of Year 256,076,695 251,126,296 242,412,042 237,338,271 218,744,768 Total Pension Liability - End of Year (a) 263,885,464$ 256,076,695$ 251,126,296$ 242,412,042$ 237,338,271$ Plan Fiduciary Net Position:
Contributions - employer 8,489,055$ 8,194,136$ 5,294,513$ 4,514,599$ 3,998,457$ Contributions - employee 1,558,129 1,302,938 1,302,634 1,337,655 1,353,972 Net investment income 44,278,068 9,427,673 11,943,643 14,935,589 18,413,069 Benefit payments (14,114,524) (13,676,535) (13,150,627) (12,885,100) (11,914,224) Plan to plan resource movement - - - (433) - Administrative expense (195,638) (269,076) (132,454) (278,172) (246,429) Other Miscellaneous Income/(Expense) - - 433 (528,254) - Net Change in Plan Fiduciary Net Position 40,015,090 4,979,136 5,258,142 7,095,884 11,604,845 Plan Fiduciary Net Position - Beginning of Year 195,846,072 190,866,936 185,608,794 178,512,910 166,908,065 Plan Fiduciary Net Position - End of Year (b) 235,861,162$ 195,846,072$ 190,866,936$ 185,608,794$ 178,512,910$ Net Pension Liability - Ending (a)-(b) 28,024,302$ 60,230,623$ 60,259,360$ 56,803,248$ 58,825,361$ Plan fiduciary net position as a percentage of the
total pension liability 89.38% 76.48% 76.00% 76.57% 75.21% Covered payroll 14,497,753$ 14,388,558$ 14,434,203$ 14,512,838$ 14,392,004$ Net pension liability as percentage of
covered payroll 193.30% 418.60% 417.48% 391.40% 408.74% Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
- From fiscal year June 30, 2015 to June 30, 2016:
- From fiscal year June 30, 2017 to June 30, 2018:
The discount rate changed from 7.65% to 7.15%.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 100
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - FIRE PLAN Last Ten Fiscal Years*
Benefit payments, including refunds of employee
contributions
The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
Fiscal Year Ended 2017 2016 2015
Measurement Period: 2016 2015 2014
Total Pension Liability:
Service cost 3,381,401$ 3,238,929$ 3,365,967$
Interest on total pension liability 15,826,963 15,385,179 14,831,589 Changes in assumptions - (3,637,875) - Differences between expected and actual experience (1,841,027) (593,799) - (11,322,634) (10,836,052) (10,250,818)
Net Change in Total Pension Liability 6,044,703 3,556,382 7,946,738 Total Pension Liability - Beginning of Year 212,700,065 209,143,683 201,196,945 Total Pension Liability - End of Year (a) 218,744,768$ 212,700,065$ 209,143,683$ Plan Fiduciary Net Position:
Contributions - employer 3,407,476$ 2,878,901$ 2,633,397$ Contributions - employee 1,347,568 1,238,238 1,245,700 Net investment income 854,376 3,875,526 26,645,747 Benefit payments (11,322,634) (10,836,052) (10,250,818) Plan to plan resource movement - - - Administrative expense (105,268) (194,366) - Other Miscellaneous Income/(Expense) - - - Net Change in Plan Fiduciary Net Position (5,818,482) (3,037,753) 20,274,026 Plan Fiduciary Net Position - Beginning of Year 172,726,547 175,764,300 155,490,274 Plan Fiduciary Net Position - End of Year (b) 166,908,065$ 172,726,547$ 175,764,300$ Net Pension Liability - Ending (a)-(b) 51,836,703$ 39,973,518$ 33,379,383$ Plan fiduciary net position as a percentage of the
total pension liability 76.30% 81.21% 84.04%
Covered payroll 13,802,058$ 13,785,343$ 13,400,056$ Net pension liability as percentage of
covered payroll 375.57% 289.97% 249.10%
Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
- From fiscal year June 30, 2015 to June 30, 2016:
- From fiscal year June 30, 2017 to June 30, 2018:
The discount rate changed from 7.65% to 7.15%.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 101
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - FIRE PLAN Last Ten Fiscal Years*
Benefit payments, including refunds of employee
contributions
The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2014 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes).
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially determined contribution 5,268,479$ 6,524,978$ 6,158,213$ 5,292,939$ 4,515,645$ (6,268,479) (8,524,978) (8,158,213) (5,292,939) (4,515,645) Contribution deficiency (excess) (1,000,000)$ (2,000,000)$ (2,000,000)$ -$ -$ Covered payroll 13,939,675$ 14,497,753$ 14,388,558$ 14,434,203$ 14,512,838$ Contributions as a percentage of covered payroll 44.97% 58.80% 56.70% 36.67% 31.11% Notes to Schedule:
Valuation Date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age**
Amortization method Level percentage of payroll, closed** Asset valuation method 15 year smoothed market***
Inflation 2.75%**
Salary increases 3.30% to 14.20% depending on age, service and type of employment** Investment rate of return 7.25%, net of pension plan investment expense, including inflation** Retirement age 50 years 2.7% @ 55 and 52 years 2% @ 62** Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. *** The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015) valued assets using a 15 Year Smoothed Market method. The fair value asset valuation method was utilized for the June 30, 2013, 2014, and 2015 valuations (applicable for fiscal years ended June 30, 2016, 2017, and 2018 respectively). 102
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - FIRE PLAN
Last Ten Fiscal Years*
Contributions in relation to the actuarially
determined contributions
Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CaslPERS Board, first used in the June 30, 2009 valuation. For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date.** ** The valuation for June 30, 2012, 2013, 2014, and 2015 (applicable to fiscal year ended June 30, 2015, 2016, 2017, and 2018 respectively) included the same actuarial assumptions.
Fiscal Year Ended June 30, 2017 June 30, 2016 June 30, 2015 Actuarially determined contribution 3,407,476$ 2,878,901$ 2,633,397$ (3,407,476) (2,878,901) (2,633,397)
Contribution deficiency (excess) -$ -$ -$ Covered payroll 14,392,004$ 13,802,058$ 13,785,343$ Contributions as a percentage of covered payroll 23.68% 20.86% 19.10% Notes to Schedule:
Valuation Date June 30, 2014 June 30, 2013 June 30, 2012 Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age**
Amortization method Level percentage of payroll, closed** Asset valuation method 15 year smoothed market***
Inflation 2.75%**
Salary increases 3.30% to 14.20% depending on age, service and type of employment** Investment rate of return 7.15%, net of pension plan investment expense, including inflation** Retirement age 50 years 2.7% @ 55 and 52 years 2% @ 62** Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 103
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - FIRE PLAN
Last Ten Fiscal Years*
Contributions in relation to the actuarially
determined contributions
Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CaslPERS Board, first used in the June 30, 2009 valuation. For purposes of the post-retirement mortality rates, those revised rates include 5 years of projected on-going mortality improvement using Scale AA published by the Society of Actuaries until June 30, 2010. There is no margin for future mortality improvement beyond the valuation date.** ** The valuation for June 30, 2012, 2013, 2014, and 2015 (applicable to fiscal year ended June 30, 2015, 2016, 2017, and 2018 respectively) included the same actuarial assumptions. *** The valuation for June 30, 2012 (applicable to fiscal year ended June 30, 2015) valued assets using a 15 Year Smoothed Market method. The fair value asset valuation method was utilized for the June 30, 2013, 2014, and 2015 valuations (applicable for fiscal years ended June 30, 2016, 2017, and 2018 respectively).
PEMHCA URMT PEMHCA URMT PEMHCA URMT
Fiscal year end 6/30/2022 6/30/2022 6/30/2021 6/30/2021 6/30/2020 6/30/2020 Measurement date 6/30/2021 6/30/2021 6/30/2020 6/30/2020 6/30/2019 6/30/2019 Total OPEB Liability:
Service cost 1,396$ 351$ 1,355$ 340$ 1,645$ 299$ Interest on total OPEB liability 3,732 862 3,574 802 4,704 715 Actual vs. expected experience (4,297) (1,134) - - (3,095) 320 Assumption changes 8,228 (2,197) - - (17,049) 178 Benefit payments (2,452) (254) (2,787) (266) (2,537) (285) Net Change in Total OPEB Liability 6,607 (2,372) 2,142 876 (16,332) 1,227 Total OPEB Liability - Beginning of Year 55,132 12,546 52,990 11,670 69,322 10,443 Total OPEB Liability - End of Year (a) 61,739 10,174 55,132 12,546 52,990 11,670 Plan Fiduciary Net Position:
Contributions - employer 2,801 228 3,956 170 3,941 167 Contributions - employee 230 - 168 - 167 Net investment income 10,116 3,154 1,162 405 2,052 657 Administrative expenses (28) (4) (32) (5) (20) (2) Benefit payments (2,452) (254) (2,787) (266) (2,537) (285) Net Change in Plan Fiduciary Net Position 10,437 3,354 2,299 472 3,436 704 Plan Fiduciary Net Position - Beginning of Year 35,697 11,266 33,398 10,794 29,962 10,090 Plan Fiduciary Net Position - End of Year (b) 46,134 14,620 35,697 11,266 33,398 10,794 Net OPEB Liability - Ending (a)-(b) 15,605$ (4,446)$ 19,435$ 1,280$ 19,592$ 876$ Plan fiduciary net position as a percentage of the
total OPEB liability 74.72% 143.70% 64.75% 89.80% 63.03% 92.49% Covered employee payroll 114,377$ 17,448$ 124,607$ 19,521$ 112,032$ 17,698$ Net OPEB liability as percentage of
covered payroll 13.64% -25.48% 15.60% 6.56% 17.49% 4.95% Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
Demographic assumptions were updated to
CalPERS 1997-2015 Experience Study
Mortality improvement scale was updated to
Scale MP-2019
* Fiscal year ended June 30, 2018, was the first year of implementation; therefore, only five years are shown. 104
There were no changes in benefits.
Participation was lowered
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS (in thousands)
Last Ten Fiscal Years*
PEMHCA URMT PEMHCA URMT PEMHCA URMT
6/30/2022 6/30/2022 6/30/2021 6/30/2021 6/30/2020 6/30/2020 Actuarially determined contribution 2,798$ 231$ 2,714$ 224$ 4,112$ 170$ Contributions in relation to the actuarially determined contributions (1,592) (229) (2,801) (228) (3,992) (170) Contribution deficiency (excess) 1,206$ 2$ (87)$ (4)$ 120$ -$ Covered employee payroll 111,714$ 17,448$ 114,377$ 18,172$ 124,607$ 19,521$ Contributions as a percentage of covered - employee payroll 1.43% 1.31% 2.45% 1.25% 3.20% 0.87% Notes to Schedule:
Valuation Date 6/30/2021 6/30/2021 6/30/2019 6/30/2019 6/30/2019 6/30/2019 Methods and Assumptions Used to Determine Contribution Rates:
Agent multiple employers Entry age normal
Amortization method Level percentage of payroll
Asset valuation method Investment gains and losses spread over 5-year rolling period Inflation 2.75%
Investment rate of return 6.75%
Mortality
* Fiscal year 2018 was the first year of implementation; therefore, five years are shown. 105
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - OPEB
Last Ten Fiscal Years*
CALPERS 1997-2011 experience study
(in thousands)
PEMHCA URMT PEMHCA URMT
Fiscal year end 6/30/2019 6/30/2019 6/30/2018 6/30/2018 Measurement date 6/30/2018 6/30/2018 6/30/2017 6/30/2017 Total OPEB Liability:
Service cost 1,597$ 291$ 1,550$ 283$ Interest on total OPEB liability 4,470 668 4,246 623 Benefit payments (2,735) (256) (2,331) (222) Net Change in Total OPEB Liability 3,332 703 3,465 684 Total OPEB Liability - Beginning of Year 65,990 9,740 62,525 9,056 Total OPEB Liability - End of Year (a) 69,322 10,443 65,990 9,740 Plan Fiduciary Net Position:
Contributions - employer 3,959 154 3,168 148 Contributions - employee - 154 - 148 Net investment income 2,212 717 2,548 889 Administrative expenses (68) (17) (29) (5) Benefit payments (2,735) (256) (2,331) (222) Net Change in Plan Fiduciary Net Position 3,368 752 3,356 958 Plan Fiduciary Net Position - Beginning of Year 26,594 9,338 23,238 8,380 Plan Fiduciary Net Position - End of Year (b) 29,962 10,090 26,594 9,338 Net OPEB Liability - Ending (a)-(b) 39,360$ 353$ 39,396$ 402$ Plan fiduciary net position as a percentage of the
total OPEB liability 43.22% 96.62% 40.30% 95.87%
Covered employee payroll 110,329$ 17,084$ 109,489$ 18,086$ Net OPEB liability as percentage of
covered payroll 35.68% 2.07% 35.98% 2.22%
Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
* Fiscal year ended June 30, 2018, was the first year of implementation; therefore, only five years are shown.
There were no changes in assumptions.
106
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS (in thousands)
Last Ten Fiscal Years*
There were no changes in benefits.
PEMHCA URMT PEMHCA URMT
6/30/2019 6/30/2019 6/30/2018 6/30/2018
Actuarially determined contribution 4,027$ 167$ 3,959$ 154$ Contributions in relation to the actuarially determined contributions (4,027) (167) (3,959) (154) Contribution deficiency (excess) -$ -$ -$ -$ Covered employee payroll 112,032$ 17,698$ 110,329$ 17,084$ Contributions as a percentage of covered - employee payroll 3.59% 0.94% 3.59% 0.90% Notes to Schedule:
Valuation Date 6/30/2017 6/30/2017 6/30/2017 6/30/2017
Methods and Assumptions Used to Determine Contribution Rates:
Agent multiple employers Entry age normal
Amortization method Level percentage of payroll
Asset valuation method Investment gains and losses spread over 5-year rolling period Inflation 2.75%
Investment rate of return 6.75%
Mortality
* Fiscal year 2018 was the first year of implementation; therefore, five years are shown. 107
City of Burbank
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - OPEB
Last Ten Fiscal Years*
CALPERS 1997-2011 experience study
(in thousands)
NONMAJOR GOVERNMENTAL FUNDS
This section of the Annual Comprehensive Financial Report provides information on each individual governmental fund, except for those major governmental funds reported in the basic financial statements:
the Low and Moderate Income Housing Fund and the General Capital Projects Fund. This section includes the following special revenue, debt service, and capital projects funds:
SPECIAL REVENUE FUNDS
104 - Proposition A Transportation Fund – To account for monies received from a portion of sales tax revenue restricted to fund transportation related activities.
105 - Proposition C Transportation Fund – To account for monies received from a portion of sales tax revenue restricted to fund transportation related activities.
106 - Air Quality Management District (AQMD) Transportation Fund – To account for monies received and expended on the City’s rideshare program. Monies received include participant fees and funds received from the Southern California AQMD Fund.
107 - Measure R Transportation Fund – To account for monies received and expended from Los Angeles (LA) County sales tax increase.
108 - Measure M Transportation Fund – To account for Citywide roadway related capital improvements for monies received and expended from LA County sales tax increase. 109 – Measure W Stormwater Fund – To account for monies received from LA County Flood Control District generated from special parcel tax on private properties to address local stormwater and urban runoff challenges. 117 - Section 8 Voucher Program Fund – To account for monies received and expended in housing assistance to low and moderate income families. Funds are provided by receipts from the Federal Section 8 Voucher Program. 121 - General City Grant Fund – To account for grant monies received and spent from federal programs used to supplement the City’s law enforcement program.
122 - Community Development Block Grant (CDBG) Fund – To account for monies received and expended by the City as a participant in the Federal CDBG Programs. 123 - Road Maintenance and Rehabilitation (RMRA) Fund – To account for monies received from a portion of State Gas Tax and Vehicle Registration, used for road maintenance and safety projects. 124 - Drug Asset Forfeiture Fund – To account for monies and property seized as a result of judicial forfeitures. 125 - State Gas Tax Fund – To account for monies received and expended from state gas tax allocation. 128 - HUD Affordable Housing Fund – To account for the U. S. Department of Housing and Urban Development funding to increase the supply of affordable housing to the City. 129 - Street Lighting Fund – To account for monies received from a portion of the in-lieu tax on electricity, used for maintenance, repairs, and conversion of the City’s mercury and low pressure sodium street light to high pressure sodium lights.
131 - Community Services Fund – To account for charitable donations to promote and assist with supportive activities and services such as fund raising, volunteer services, and educational services. 133 - Tieton HydroPower Project – To account for the operation of Southern California Public Power Authority’s (SCPPA) joint power plant located in Washington State.
483 - Magnolia Power Project – To account for the operation of SCPPA joint power plant located at the City’s electric utility.
NONMAJOR
GOVERNMENT FUNDS
NONMAJOR
GOVERNMENT FUNDS
CAPITAL PROJECTS FUNDS
127 - Public Improvements Fund – To account for monies received through developer fees and grants, used for infrastructure improvements throughout the City.
130 - Youth Endowment Services Fund (YES) – To account for financial resources used for new capital facilities for youth oriented programs to benefit the youth of Burbank. The YES Fund was previously funded by a pledge from the Burbank Redevelopment Agency of 5% of the new tax increment in each of the Golden State, City Centre, and West Olive Project areas.
310 - Parking Authority Fund – To account for financial resources to be used for the acquisition or construction of public parking facilities on a citywide basis. The primary source of funds has been contributions from other funds.
Affordable Commun. Road
Prop. A Prop. C AQMD Housing Dev Block Section 8 Maint & Transp. Transp. Transp. Program Grants Housing Rehab.
Assets :
Pooled cash and investments 3,277$ 4,054 418 12 969 1,723 4,338 Accounts receivable 183 38 34 - - 4 373 Interest receivable 9 10 1 - 2 - 11 Interfund receivables - 182 - - 3 79 - Inventories - - - - - - - Prepaid items and deposits - - - - - - - Total assets 3,469$ 4,284 453 12 974 1,806 4,722 Liabilities :
Accounts payable 78$ 439 - 55 148 45 2,669 Interfund payable 182 - - 30 - 247 - Deposits - - - - - - - Advances payable - - - - - - - Total liabilities 260 439 - 85 148 292 2,669 Fund balances :
Nonspendable
Inventories - - - - - - - Prepaid items and deposits - - - - - - - Restricted :
Transportation 3,209 3,845 - - - - 2,053 Federal and state grants - - 453 - 826 1,514 - Public safety - - - - - - - Capital projects - - - - - - -
Committed :
Transportation - - - - - - - Assigned (continuing appropriations) - - - - - - - Unassigned - - - (73) - - - Total fund balances (deficits) 3,209 3,845 453 (73) 826 1,514 2,053 Total liabilities and fund balances 3,469$ 4,284 453 12 974 1,806 4,722 ( Continued )
Special Revenue Funds
City of Burbank
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2022
(in thousands)
108
City of Burbank
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2022
(in thousands)
General Drug Measure
State Street City Comm. Asset R
Gas Tax Lighting Grants Services Forfeiture Transp.
Assets :
Pooled cash and investments 805$ 1,520 266 29 264 5,316 Accounts receivable 198 621 31 - - - Interest receivable 2 4 2 - 1 14 Notes receivable - - - - - - Interfund receivable - - - - - - Inventories - 10 - - - - Prepaid items and deposits 3 - - - - - Total assets 1,008$ 2,155 299 29 265 5,330 Liabilities :
Accounts payable 53$ 438 - - - 155 Interfund payable - - - - - - Deposits - 209 - - - - Advances payable - - - - - - Total liabilities 53 647 - - - 155 Fund balances :
Nonspendable
Inventories - 10 - - - - Prepaid items and deposits 3 - - - - - Restricted
Transportation 950 1,497 - - - 5,175 Federal and state grants - - - 29 - - Public safety - - 299 - 265 - Capital projects - - - - - - Committed :
Transportation 2 1 - - - - Unassigned - - - - - - Total fund balances (deficits) 955 1,508 299 29 265 5,175 Total liabilities and fund balances 1,008$ 2,155 299 29 265 5,330 ( Continued )
109
Special Revenue Funds
City of Burbank
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2022
(in thousands)
Total
Nonmajor
Magnolia Tieton Measure Measure Govern-
Power Hydro M W Public Parking mental
Project Power Transp. Stormwater Improve. Authority Funds Assets :
Pooled cash and investments -$ 183 3,707 2,680 18,676 1,569 49,806 Accounts receivable 3,913 534 - - - 27 5,956 Interest receivable 2 1 10 7 51 4 131 Interfund receivable - - - - - - 264 Inventories - - - - - - 10 Prepaid items and deposits 90 9 - 11 - - 113 Total assets 4,005$ 727 3,717 2,698 18,727 1,600 56,280 Liabilities :
Accounts payable 3,721 586 - 24 222 52 8,685 Interfund payable 284 - - - - - 743 Deposits - 141 - - - - 350 Advances payable - - - - - - - Total liabilities 4,005 727 - 24 222 52 9,778 Fund balances :
Nonspendable
Inventories - - - - - - 10 Prepaid items and deposits 90 9 - 11 - - 113 Restricted
Transportation - - 3,717 - - - 20,446 Federal and state grants - - - - - - 2,822 Public safety - - - - - - 564 Capital projects - - - 2,663 - 1,548 4,211 Committed
Transportation - - - - 18,505 - 18,508
Unassigned (90) (9) - - - - (172) Total fund balances (deficits) - - 3,717 2,674 18,505 1,548 46,502 Total liabilities and fund balances 4,005$ 727 3,717 2,698 18,727 1,600 56,280 110
Special Revenue Funds
Capital
Projects Funds
Affordable Commun. Road
Prop. A Prop. C AQMD Housing Dev Block Section 8 Maint & Transp. Transp. Transp. Program Grants Housing Rehab.
Revenues :
Taxes 2,840$ 2,217 - - - - - Use of money or property (100) (5) (12) - (32) (6) 42 Intergovernmental 182 - 134 508 2,004 12,247 2,111 Charges for services 5 41 - - - - - Total revenues 2,927 2,253 122 508 1,972 12,241 2,153 Expenditures :
General government :
Administrative services - - - - - - - Public safety :
Police - - - - - - - Environmental :
Community development 1,888 2,375 142 537 1,066 12,120 - Capital outlay :
Street improvements - - - - - - 2,695 General capital improvements - - - - - - - Total capital outlay - - - - - - 2,695 Total expenditures 1,888 2,375 142 537 1,066 12,120 2,695 Excess (deficiency) of revenues
over expenditures 1,039 (122) (20) (29) 906 121 (542) Other financing sources (uses) :
Transfers in - 349 - - - - - Transfers out (349) - - - - - - Total other financing sources (uses) (349) 349 - - - - - Net change in fund balance 690 227 (20) (29) 906 121 (542) Fund balances (deficits), July 1, 2021 2,519 3,618 473 (44) (80) 1,393 2,595 Fund balances (deficits), June 30, 2022 3,209$ 3,845 453 (73) 826 1,514 2,053 ( Continued )
Special Revenue Funds
111
City of Burbank
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2022
(in thousands)
City of Burbank
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2022
(in thousands)
General Drug Measure
State Street City Comm. Asset R
Gas Tax Lighting Grants Services Forfeiture Transp.
Revenues :
Taxes -$ - - - - 1,663 Use of money or property 8 (20) (15) - (8) (155) Intergovernmental 2,439 - 444 - 25 - Charges for services - 2,921 - - - - Total revenues 2,447 2,901 429 - 17 1,508 Expenditures :
General government :
Administrative services - - - - - Public safety : -
Police - - 286 - 29 Environmental : -
Community development - - - - - Capital outlay :
Street improvements 2,271 2,756 - - - 25 General capital improvements - - - - - 392 Total capital outlay 2,271 2,756 - - - 417 Total expenditures 2,271 2,756 286 - 29 417 Excess (deficiency) of revenues
over expenditures 176 145 143 - (12) 1,091 Other financing sources (uses) :
Transfers in - - - - - - Transfers out - - (108) - - - Total other financing sources (uses) - - (108) - - - Net change in fund balance 176 145 35 - (12) 1,091 Fund balances (deficits), July 1, 2021 779$ 1,363 264 29 277 4,084 Fund balances (deficits), June 30, 2022 955$ 1,508 299 29 265 5,175 ( Continued )
Special Revenue Funds
112
City of Burbank
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2022
(in thousands)
Total
Nonmajor
Magnolia Tieton Measure Measure Govern-
Power Hydro M W Public Parking mental
Project Power Transp. Stormwater Improve. Authority Funds Revenues :
Taxes -$ - - 1,453 - - 8,173 Use of money or property 18 (6) (103) (74) (540) 271 (737) Intergovernmental - - 1,883 - 910 - 22,887 Charges for services 20,346 1,960 - - 1,873 - 27,146 Total revenues 20,364 1,954 1,780 1,379 2,243 271 57,469 Expenditures :
General government :
Administrative services - - - - - 545 545 Public safety :
Police - - - - - - 315 Environmental :
Community development 20,364 1,930 - - 2,138 - 42,560 Capital outlay :
Street improvements - - - - - - 7,747 General capital improvements - 24 - 109 - 14 539 Total capital outlay - 24 - 109 - 14 8,286
Total expenditures 20,364 1,954 - 109 2,138 559 51,706 Excess (deficiency) of revenues
over expenditures - - 1,780 1,270 105 (288) 5,763 Other financing sources (uses) :
Transfers in - - - - - - 349 Transfers out - - - - - - (457) Total other financing sources (uses) - - - - - - (108) Net change in fund balance - - 1,780 1,270 105 (288) 5,655 Fund balances (deficits), July 1, 2021 -$ - 1,937 1,404 18,400 1,836 40,847 Fund balances (deficits), June 30, 2022 -$ - 3,717 2,674 18,505 1,548 46,502 113
Capital
Projects Funds
Special Revenue Funds
Original Final Actual
Budget Budget Amounts
Revenues :
Taxes 2,238$ 2,238$ 2,840$ 602$
Use of money or property 23 23 (100) (123) Intergovernmental 85 85 182 97 Charges for services 10 10 5 (5) Total revenues 2,356 2,356 2,927 571 Expenditures :
Environmental:
Community development 3,337 3,337 1,888 1,449 Total expenditures 3,337 3,337 1,888 1,449 Excess (deficiency) of revenues over expenditures (981) (981) 1,039 2,020 Other financing uses :
Transfers out (185) (185) (349) (164) Total other financing uses (185) (185) (349) (164) Net change in fund balance (1,166) (1,166) 690 1,856 Fund balance, July 1, 2021 2,519 2,519 2,519 - Fund balance, June 30, 2022 1,353$ 1,353$ 3,209$ 1,856$ Variance
with Final
Positive
(Negative)
114
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PROP A TRANSPORTATION
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Taxes 1,773$ 1,773$ 2,217$ 444$
Use of money or property 137 137 (5) (142) Charges for services 37 37 41 4 Total revenues 1,947 1,947 2,253 306 Expenditures :
Environmental:
Community development 3,453 3,453 2,375 1,078 Total expenditures 3,453 3,453 2,375 1,078 Excess (deficiency) of revenues over expenditures (1,506) (1,506) (122) 1,384 Other financing sources :
Transfers in 185 185 349 164 Total other financing sources 185 185 349 164 Net change in fund balance (1,321) (1,321) 227 1,548 Fund balance, July 1, 2021 3,618 3,618 3,618 - Fund balance June 30, 2022 2,297$ 2,297$ 3,845$ 1,548$ Variance
with Final
Positive
(Negative)
115
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PROP C TRANSPORTATION
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 4$ 4$ (12)$ (16)$ Intergovernmental 132 132 134 2 Charges for services - - - - Total revenues 136 136 122 (14) Expenditures :
Environmental:
Community development 251 251 142 109 Total expenditures 251 251 142 109 Excess (deficiency) of revenues over expenditures (115) (115) (20) 95 Fund balance, July 1, 2021 473 473 473 - Fund balance, June 30, 2022 358$ 358$ 453$ 95$
116
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AQMD TRANSPORTATION
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Intergovernmental 848$ 2,039$ 508$ (1,531)$ Total revenues 848 2,039 508 (1,531) Expenditures :
Environmental:
Community development 979 1,916 537 1,379 Total expenditures 979 1,916 537 1,379 Excess (deficiency) of revenues over expenditures (131) 123 (29) (152) Fund balance, (deficit) July 1, 2021 (44) (44) (44) - Fund balance (deficit), June 30, 2022 (175)$ 79$ (73)$ (152)$
117
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AFFORDABLE HOUSING PROGRAM
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 6$ 6$ (32)$ (38)$ Intergovernmental 2,902 2,902 2,004 (898) Charges for services 96 96 - (96) Total revenues 3,004 3,004 1,972 (1,032) Expenditures :
Environmental:
Community development 26 84 1,066 (982) Total expenditures 26 84 1,066 (982) Excess (deficiency) of revenues over expenditures 2,978 2,920 906 (2,014) Fund balance, (deficit), July 1, 2021 (80) (80) (80) - Fund balance (deficit), June 30, 2022 2,898$ 2,840$ 826$ (2,014)$ Variance
with Final
Positive
(Negative)
118
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANTS
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 14$ 14$ (6)$ (20)$ Intergovernmental 12,418 12,786 12,247 (539) Total revenues 12,432 12,800 12,241 (559) Expenditures :
Environmental:
Community development 12,851 13,578 12,120 1,458 Total expenditures 12,851 13,578 12,120 1,458 Excess (deficiency) of revenues over expenditures (419) (778) 121 899 Fund balance, July 1, 2021 1,393 1,393 1,393 - Fund balance, June 30, 2022 974$ 615$ 1,514$ 899$
119
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
SECTION 8 HOUSING
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 26$ 26$ 42$ 16$ Intergovernmental 2,034 2,034 2,111 77 Total revenues 2,060 2,060 2,153 93 Expenditures :
Environmental:
Street Improvements 4,391 4,391 2,695 1,696 Total expenditures 4,391 4,391 2,695 1,696 Excess (deficiency) of revenues over expenditures (2,331) (2,331) (542) 1,789 Fund balance, July 1, 2021 2,595 2,595 2,595 - Fund balance, June 30, 2022 264$ 264$ 2,053$ 1,789$
120
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ROAD MAINTENANCE AND REHABILITATION
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 15$ 15$ 8$ (7)$ Intergovernmental 2,526 2,526 2,439 (87) Total revenues 2,541 2,541 2,447 (94) Expenditures :
Capital outlay :
Street improvements 2,270 1,328 2,271 (943) Total expenditures 2,270 1,328 2,271 (943) Excess (deficiency) of revenues over expenditures 271 1,213 176 (1,037) Fund balance, July 1, 2021 779 779 779 - Fund balance, June 30, 2022 1,050$ 1,992$ 955$ (1,037)$
121
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
STATE GAS TAX
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 56$ 56$ (20)$ (76)$ Charges for services 2,851 2,851 2,921 70 Total revenues 2,907 2,907 2,901 (6) Expenditures :
Capital outlay :
Street improvements 2,804 2,804 2,756 48 Total expenditures 2,804 2,804 2,756 48 Excess (deficiency) of revenues over expenditures 103 103 145 42 Fund balance, July 1, 2021 1,363 1,363 1,363 - Fund balance, June 30, 2022 1,466$ 1,466$ 1,508$ 42$ 122
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
STREET LIGHTING
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 7$ 7$ (15)$ (22)$ Intergovernmental 454 570 444 (126) Total revenues 461 577 429 (148) Expenditures :
Public Safety:
Police 50 326 286 40 Total expenditures 50 326 286 40 Excess (deficiency) of revenues over expenditures 411 251 143 (108) Other financing uses :
Transfers out - - (108) (108) Excess (deficiency) of revenues over expenditures 411 251 35 (216) Fund balance, July 1, 2021 264 264 264 - Fund balance, June 30, 2022 675$ 515$ 299$ (216)$ 123
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL CITY GRANTS
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property -$ -$ -$ -$ Total revenues - - - - Expenditures :
Environmental:
Community development 7 7 - 7 Total expenditures 7 7 - 7 Excess (deficiency) of revenues over expenditures 7 7 - 7 Fund balance, July 1, 2021 29 29 29 - Fund balance, June 30, 2022 22$ 22$ 29$ 7$
124
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
COMMUNITY SERVICES
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 3$ 3$ (8)$ (11)$ Intergovernmental 29 29 25 (4) Total revenues 32 32 17 (15) Expenditures :
Public Safety:
Police 7 96 29 67 Total expenditures 7 96 29 67 Excess (deficiency) of revenues over expenditures (25) 64 (12) 52 Fund balance, July 1, 2021 277 277 277 - Fund balance, June 30, 2022 252$ 341$ 265$ 52$
Variance
with Final
Positive
(Negative)
125
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DRUG ASSET FORFEITURE
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Taxes 1,330$ 1,330$ 1,663$ 333$
Use of money or property 44 44 (155) (199) Intergovernmental - - - - Charges for services 557 557 - (557) Total revenues 1,931 1,931 1,508 (423) Expenditures :
Capital outlay:
Street improvements 1,522 1,522 25 1,497 General capital improvements 1,739 1,739 392 1,347 Total expenditures 3,261 3,261 417 2,844 Excess (deficiency) of revenues over expenditures (1,330) (1,330) 1,091 2,421 Fund balance, July 1, 2021 4,084 4,084 4,084 - Fund balance, June 30, 2022 2,754$ 2,754$ 5,175$ 2,421$
126
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE R TRANSPORTATION
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property -$ -$ 18$ 18$ Charges for services 22,731 22,731 20,346 (2,385) Total revenues 22,731 22,731 20,364 (2,367) Expenditures :
Environmental:
Community development 22,731 22,731 20,364 2,367 Total expenditures 22,731 22,731 20,364 2,367 Excess (deficiency) of revenues over expenditures - - - - Fund balance, July 1, 2021 - - - - Fund balance, June 30, 2022 -$ -$ -$ -$
127
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MAGNOLIA POWER PROJECT
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property -$ -$ (6)$ (6) Charges for services 2,388 2,388 1,960 (428)$ Total revenues 2,388 2,388 1,954 (434) Expenditures :
Environmental:
Community development 2,187 2,187 1,930 257 Capital Outlay:
General Capital improvements 201 201 24 177 Total expenditures 2,388 2,388 1,954 434 Excess (deficiency) of revenues over expenditures - - - - Fund balance, July 1, 2021 - - - - Fund balance, June 30, 2022 -$ -$ -$ -$ 128
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
TIETON HYDRO POWER PROJECT
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Taxes -$ -$ -$ -$ Use of money or property 20 20 (103) (123) Intergovernmental 1,507 1,507 1,883 376 Total revenues 1,527 1,527 1,780 253 Expenditures :
Capital outlay:
Street improvements 2,859 2,859 - 2,859 Total expenditures 2,859 2,859 - 2,859 Excess (deficiency) of revenues over expenditures (1,332) (1,332) 1,780 3,112 Fund balance, July 1, 2021 1,937 1,937 1,937 - Fund balance, June 30, 2022 605$ 605$ 3,717$ 3,112$
129
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE M TRANSPORTATION
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Taxes 1,400$ 1,400$ 1,453$ 53$
Use of money or property 15 15 (74) (89) Total revenues 1,415 1,415 1,379 (36) Expenditures :
Capital outlay:
General capital improvements 700 700 109 591 Total expenditures 700 700 109 591 Excess (deficiency) of revenues over expenditures 715 715 1,270 555 Fund balance, July 1, 2021 1,404 1,404 1,404 - Fund balance, June 30, 2022 2,119$ 2,119$ 2,674$ 555$
Variance
with Final
Positive
(Negative)
130
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE W STORMWATER
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Taxes 173$ 173$ (540)$ (713)$ Use of money or property 5,149 5,149 910 (4,239) Charges for services 299 299 1,873 Total revenues 5,621 5,621 2,243 (4,952) Expenditures :
Capital outlay:
Community development 9,072 9,229 2,138 7,091 Total expenditures 9,072 9,229 2,138 7,091 Excess (deficiency) of revenues over expenditures (3,451) (3,608) 105 3,713 Fund balance, July 1, 2021 18,400 18,400 18,400 - Fund balance, June 30, 2022 14,949$ 14,792$ 18,505$ 3,713$
Variance
with Final
Positive
(Negative)
131
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PUBLIC IMPROVEMENTS
For the Year Ended June 30, 2022
(in thousands)
Original Final Actual
Budget Budget Amounts
Revenues :
Use of money or property 552$ 552$ 271$ (281)$ Total revenues 552 552 271 (281) Expenditures :
General government:
Administrative services 968 968 545 423 Capital outlay:
General capital improvements 425 425 14 411 Total expenditures 1,393 1,393 559 834 Excess (deficiency) of revenues over expenditures (841) (841) (288) 553 Fund balance, July 1, 2021 1,836 1,836 1,836 - Fund balance, June 30, 2022 995$ 995$ 1,548$ 553$
132
Variance
with Final
Positive
(Negative)
City of Burbank
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PARKING AUTHORITY CAPITAL PROJECTS
For the Year Ended June 30, 2022
(in thousands)
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS
This section of the Annual Comprehensive Financial Report provides information on each individual internal service fund. Internal service funds are used by the City to centralize certain services and then allocate the cost of those services to the user departments on a cost reimbursement basis. User fund charges from internal service funds with capital assets typically consist of two components:
a maintenance/service component and a capital replacement component. User fund charges from self-insurance internal service funds generally are based on the claims experience of the user department.
530 - General Liability Insurance Fund – To finance and account for the City’s general liability claims program. 531 - Workers Compensation Insurance Fund – To finance and account for the City’s workers’ compensation claims program.
532 - Vehicle Equipment Replacement Fund – To account for the operation, maintenance, and timely replacement of vehicular fleet and equipment utilized by general government departments on a rental fee basis.
533 - Office Equipment Replacement Fund – To account for the operation, maintenance, and timely replacement of office equipment utilized by general government departments on a rental fee basis. 534 - Municipal Infrastructure Fund – To account for the operation, maintenance, and replacement of all general City infrastructure (non-enterprise). This fund receives 50 percent of the City’s Transaction and Use Tax revenue, resulting from the passage of Measure P in November 2018, in addition to an annual General Fund Maintenance of Effort (MOE) contribution of $4.7 million. 535 - Communications Equipment Replacement Fund – To account for the operation, maintenance, and timely replacement of the electronic communication equipment utilized by City departments on a rental basis. 537 - Information Technology Fund – To account for the operation, acquisition, maintenance, and replacement of technology infrastructure (including computer equipment, hardware, and software) utilized by City departments.
General Workers Vehicle Office
Liability Compensation Equipment Equipment Municipal
Insurance Insurance Replacement Replacement Infrastructure Assets:
Current assets :
Pooled cash and investments 29,626$ 54,078 30,182 4,216 33,739 Accounts receivable - 227 35 - 2,880 Interest receivable 79 148 83 11 91 Interfund receivable 6 1 - - - Inventories - - 410 - - Prepaid expenses 100 - 1,516 - 38 Total current assets 29,811 54,454 32,226 4,227 36,748 Capital assets :
Buildings and improvements - - 2,777 - - Accumulated depreciation - - (1,915) - - Machinery and equipment - - 43,515 7,744 - Accumulated depreciation - - (31,507) (5,816) - Leased assets - - - - - Accumulated depreciation - - - - - Construction in progress - - 7 - - Total capital assets - - 12,877 1,928 - Total assets 29,811 54,454 45,103 6,155 36,748 Liabilities :
Current liabilities:
Accounts payable 159 115 890 57 1,655 Compensated absences 4 1 20 - - Interfund payable - - - - - Lease payable - - - - - Outstanding claims - self insurance 3,510 7,708 - - - Total current liabilities 3,673 7,824 910 57 1,655 Long-term liabilities (net of current portion):
Compensated absences 38 57 127 - - Lease payable - - - - - Outstanding claims - self insurance 5,571 28,920 - - - Total long-term liabilities 5,609 28,977 127 - - Total liabilities 9,282 36,801 1,037 57 1,655 Net Position :
Net investment in capital assets - - 12,877 1,928 - Unrestricted 20,529 17,653 31,189 4,170 35,093 Total net position 20,529$ 17,653 44,066 6,098 35,093 ( Continued )
133
City of Burbank
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
June 30, 2022
(in thousands)
City of Burbank
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
June 30, 2022
(in thousands)
Communication
Equipment Information
Replacement Technology Total
Assets:
Current assets :
Pooled cash and investments 5,610$ 13,617 171,068 Accounts receivable 7 - 3,149 Interest receivable 15 34 461 Interfund receivable 2 33 42 Inventories 179 - 589
Prepaid expenses 12 540 2,206 Total current assets 5,825 14,224 177,515 Capital assets :
Buildings and improvements 3,491 - 6,268 Accumulated depreciation (1,626) - (3,541) Machinery and equipment 19,269 17,299 87,827 Accumulated depreciation (15,166) (17,032) (69,521) Leased assets 540 - 540 Accumulated depreciation (57) - (57) Construction in progress 229 1,744 1,980 Total capital assets 6,680 2,011 23,496 Total assets 12,505 16,235 201,011
Liabilities :
Current liabilities:
Accounts payable 985 866 4,727 Compensated absences 1 28 54 Interfund payable - - - Lease payable 46 - 46 Outstanding claims - self insurance - - 11,218 Total current liabilities 1,032 894 16,045 Long-term liabilities (net of current portion):
Compensated absences 186 586 994 Lease payable 449 - 449 Outstanding claims - self insurance - - 34,491 Total long-term liabilities 635 586 35,934 Total liabilities 1,667 1,480 51,979 Net Position :
Net investment in capital assets 5,960 1,977 22,742 Unrestricted 4,878 12,778 126,290 Total net position 10,838$ 14,755 149,032 134
General Workers Vehicle Office
Liability Compensation Equipment Equipment Municipal
Insurance Insurance Replacement Replacement Infrastructure Operating revenues :
Charges for services 6,455$ 6,735 7,417 708 - Total operating revenues 6,455 6,735 7,417 708 - Operating expenses :
Operations and maintenance 9,162 10,827 6,296 121 11,424 Depreciation - - 2,674 544 - Total operating expenses 9,162 10,827 8,970 665 11,424 Operating income (loss) (2,707) (4,092) (1,553) 43 (11,424) Nonoperating income (expense) :
Interest income (940) (1,671) (927) (129) (945) Other local taxes - - - - 15,850 Gain (loss) on disposal of capital assets - - 16 - - Other income (expense) 2 4 268 205 303 Total nonoperating income (expense) (938) (1,667) (643) 76 15,208 Income (loss) before transfers and
capital contributions (3,645) (5,759) (2,196) 119 3,784 Transfers in - - - - 4,700 Change in net position (3,645) (5,759) (2,196) 119 8,484 Net position, July 1, 2021 24,174 23,412 46,262 5,979 26,609 Net position, June 30, 2022 20,529$ 17,653 44,066 6,098 35,093 ( Continued )
City of Burbank
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended June 30, 2022
(in thousands)
135
City of Burbank
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended June 30, 2022
(in thousands)
Communication
Equipment Information
Replacement Technology Total
Operating revenues :
Charges for services 3,036$ 11,715 36,066 Total operating revenues 3,036 11,715 36,066 Operating expenses :
Operations and maintenance 2,346 9,588 49,764 Depreciation 1,198 256 4,672 Total operating expenses 3,544 9,844 54,436 Operating income (loss) (508) 1,871 (18,370) Nonoperating income (expense) :
Interest income (175) (384) (5,171) Other local taxes - - 15,850 Gain (loss) on disposal of capital assets - 6 22 Other income (expense) 28 1 811 Total nonoperating income (expense) (147) (377) 11,512 Income (loss) before transfers and
capital contributions (655) 1,494 (6,858) Transfer in - 1,613 6,313 Change in net position (655) 3,107 (545) Net position, July 1, 2021 11,493 11,648 149,577 Net position, June 30, 2022 10,838$ 14,755 149,032 136
General Workers Vehicle Office
Liability Compensation Equipment Equipment Municipal
Insurance Insurance Replacement Replacement Infrastructure Cash flows from operating activities:
Cash received from customers 6,454$ 6,643 7,486 708 (98) Cash paid to suppliers (7,361) (9,366) (6,142) (86) (11,118) Cash paid to employees (388) (572) (1,417) - - Other income 2 4 268 205 16,153 Net cash provided by (used in) operating activities (1,293) (3,291) 195 827 4,937 Cash flows from noncapital financing activities:
Transfers from other funds - - - - 4,700 Net cash provided by noncapital financing activities - - - - 4,700 Cash flows from capital and related financing activities:
Other taxes - - - - - Proceeds from sales of capital assets - - 16 - - Acquisition and construction of assets - - (2,077) (589) - Net cash provided by (used in) capital
and related financing activities - - (2,061) (589) - Cash flows from investing activities:
Interest received 335 671 379 48 363
Change in Fair Value (1,293) (2,370) (1,325) (180) (1,349) Net cash provided by investing activities (958) (1,699) (946) (132) (986) Net increase (decrease) in cash and cash equivalents (2,251) (4,990) (2,812) 106 8,651 Cash and cash equivalents, July 1, 2021 31,877 59,068 32,994 4,110 25,088 Cash and cash equivalents, June 30, 2022 29,626$ 54,078 30,182 4,216 33,739 ( Continued )
Comm.
137
City of Burbank
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended June 30, 2022
(in thousands)
City of Burbank
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended June 30, 2022
(in thousands)
Communication
Equipment Information
Replacement Technology Total
Cash flows from operating activities:
Cash received from customers 3,037$ 11,718 35,948 Cash paid to suppliers 51 (4,575) (38,597) Cash paid to employees (1,196) (4,742) (8,315) Other income 28 1 16,661 Net cash provided by (used in) operating activities 1,920 2,402 5,697 Cash flows from noncapital financing activities:
Transfers from other funds - 1,613 6,313 Net cash provided by noncapital financing activities - 1,613 6,313 Cash flows from capital and related financing activities:
Other taxes - - -
Proceeds from sales of capital assets - 6 22 Acquisition and construction of assets (3,100) (840) (6,606) Net cash provided by (used in) capital
and related financing activities (3,100) (834) (6,584) Cash flows from investing activities:
Interest received 79 137 2,012 Change in Fair Value (255) (535) (7,307) Net cash provided by investing activities (176) (398) (5,295) Net increase (decrease) in cash and cash equivalents (1,356) 2,783 131 Cash and cash equivalents, July 1, 2021 6,966 10,834 170,937 Cash and cash equivalents, June 30, 2022 5,610$ 13,617$ 171,068$ ( Continued )
138
General Workers Vehicle Office
Liability Compensation Equipment Equipment Municipal
Insurance Insurance Replacement Replacement Infrastructure Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss) (2,707)$ (4,092) (1,553) 43 (11,424) Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation - - 2,674 544 - Other income 2 4 268 205 16,153 (Increase) decrease in accounts receivable (1) (92) 69 - (98) (Increase) decrease in inventories - - (58) - - (Increase) decrease in prepaid items (59) 28 (1,503) 1 (36) Increase (decrease) in outstanding claims payable 1,411 896 - - - Increase (decrease) in accounts payable 52 (24) 293 34 342 Increase (decrease) in compensated absences 9 (11) 5 - - Total adjustments 1,414 801 1,748 784 16,361 Net cash provided by (used in) operating activities (1,293)$ (3,291) 195 827 4,937 Noncash investing, capital, and financing activities:
Increase (decrease) in fair value of investments (1,293)$ (2,370) (1,325) (180) (1,349) ( Continued )
139
City of Burbank
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended June 30, 2022
(in thousands)
City of Burbank
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended June 30, 2022
(in thousands)
Communication
Equipment Information
Replacement Technology Total
Reconciliation of operating income (loss) to
net cash provided by operating activities :
Operating income (loss) (508)$ 1,871 (18,370) Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 1,198 256 4,672 Other income 28 1 16,661 (Increase) decrease in accounts receivable 1 3 (118) (Increase) decrease in inventories (4) - (62) (Increase) decrease in prepaid items (1) (441) (2,011) Increase (decrease) in outstanding claims payable - - 2,307 Increase (decrease) in accounts payable 1,236 667 2,600 Increase (decrease) in compensated absences (30) 45 18 Total adjustments 2,428 531 24,067 Net cash provided by (used in) operating activities 1,920$ 2,402 5,697 Noncash investing, capital, and financing activities:
Increase (decrease) in fair value of investments (255)$ (535) (7,307) 140
STATISTICAL SECTION (UNAUDITED)
The statistical section provides mostly trend data and nonfinancial information useful in assessing the City’s financial condition. Because of the special character of the data presented in the statistical section (i.e., data of prior years, nonfinancial data), the section does not fall within the scope of the independent audit.
Financial Trends – These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time.
Revenue Capacity – These schedules contain information to help the reader assess the government’s most significant local revenue source, electric utility fees.
Demographic – These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place.
Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.
STATISTICAL SECTION
(UNAUDITED)
Governmental Activities :
Restricted Unrestricted Total
2012-13 736,794 59,742 232,353 1,028,889 2013-14 733,756 61,165 216,456 1,011,377 2014-15 692,032 62,827 (36,215) 718,644 2015-16 688,518 63,051 (11,249) 740,320 2016-17 682,070 63,610 (9,364) 736,316 2017-18 688,278 61,628 (42,672) 707,234 2018-19 684,259 102,820 (56,055) 731,024 2019-20 681,697 72,123 (11,932) 741,888 2020-21 682,223 81,986 1,325 765,534 2021-22 687,067 86,422 57,022 830,511 Business-type Activities :
Restricted Unrestricted Total
2012-13 287,055 - 138,590 425,645 2013-14 300,256 144,501 444,757 2014-15 298,664 - 74,679 373,343 2015-16 312,885 - 87,055 399,940 2016-17 323,782 - 107,628 431,410 2017-18 340,870 - 106,078 446,948 2018-19 363,419 - 92,639 456,058 2019-20 388,772 2,603 76,516 467,891 2020-21 389,957 9,243 90,772 489,972 2021-22 397,850 10,939 82,247 491,036 Primary Government :
Restricted Unrestricted Total
2012-13 1,023,849 59,742 370,943 1,454,534 2013-14 1,034,012 61,165 360,957 1,456,134 2014-15 990,696 62,827 38,464 1,091,987 2015-16 1,001,403 63,051 75,806 1,140,260 2016-17 1,005,852 63,610 98,264 1,167,726 2017-18 1,029,148 61,628 63,406 1,154,182 2018-19 1,047,678 102,820 36,584 1,187,082 2019-20 1,070,469 74,726 64,584 1,209,779 2020-21 1,072,180 91,229 92,097 1,255,506 2021-22 1,084,917 97,361 139,269 1,321,547 SOURCE : City Financial Services Department
141
City of Burbank
Fiscal Year
Investment in
capital assets
Fiscal Year
Investment in
capital assets
Table 1 - Net Position by Component
Last Ten Fiscal Years (accrual basis)
(in thousands)
(Unaudited)
Investment in
capital assetsFiscal Year
Fiscal year ended June 30,
2018 2019 2020 2021 2022
Expenses
Governmental activities :
General government 15,475 7,613 18,763 16,578 9,479 Police 59,865 59,907 64,315 62,074 51,038 Fire 41,417 37,855 40,217 41,232 32,432 Public works 35,468 37,664 41,521 36,837 19,428 Community development 48,726 49,786 54,619 61,168 53,055 Parks & recreation 18,790 23,732 26,199 24,880 21,937 Library 7,203 7,484 8,528 7,759 6,169 Interest on long-term debt 565 512 404 282 147 Total governmental activities expenses 227,509 224,553 254,566 250,810 193,685 Business-type activities :
Water reclamation & sewer 14,832 18,340 17,472 17,491 14,300 Electric utility 177,330 189,486 188,119 197,359 189,599 Water utility 32,525 30,523 33,699 32,679 32,291 Refuse collection & disposal 15,699 17,117 15,506 18,307 18,153 Total business-type activities expenses 240,386 255,466 254,796 265,836 254,343 Total primary government expenses 467,895 480,019 509,362 516,646 448,028 Program Revenues
Governmental activities :
Charges for services :
General government 526 632 1,817 2108 1,824 Police 4,242 4,182 3,878 3493 3,879 Fire 5,053 4,803 5,012 3832 5,158
Public works 1,643 1,041 2,417 1799 2,243 Community development 8,392 10,206 13,464 11609 12,439 Parks and recreation 4,158 6,139 5,425 6461 9,618 Library 148 163 117 38 19
Operating grants and contributions 43,547 38,788 44,268 68456 52,221 Capital grants and contributions 77 50 - 0 415 Total governmental activities program revenues 67,786 66,004 76,398 97,796 87,816 Business-type activities :
Charges for services :
Water reclamation & sewer 17,514 17,778 18,901 17,198 18,225 Electric utility 204,375 193,050 181,091 200,974 182,390 Water utility 34,040 31,211 33,257 34,025 33,959 Refuse collection & disposal 17,365 17,974 17,765 17,789 19,127 Operating grants and contributions 119 149 141 6 2,316 Capital grants and contributions 7,338 8,786 7,088 4,274 3,243 Total business-type activities program revenues 280,751 268,948 258,243 274,266 259,260 Total primary government program revenues 348,537 334,952 334,641 372,062 347,076 Net (expense) / revenue
Governmental activities (159,723) (158,549) (178,168) (153,014) (105,869) Business-type activities 40,365 13,482 3,447 8,430 4,917 Total primary government net expense (119,358) (145,067) (174,721) (144,584) (100,952) ( Continued )
SOURCE : City Financial Services Department
142
City of Burbank
Table 2 - Changes in Net Position
Last Ten Fiscal Years (accrual basis)
(in thousands)
(Unaudited)
City of Burbank
Table 2 - Changes in Net Position
Last Ten Fiscal Years (accrual basis)
(in thousands)
(Unaudited)
2018 2019 2020 2021 2022
General Revenues and Other
Changes in Net Position
Governmental activities :
Property tax 52,848 54,980 55,042 61,375 62,088 Sales tax 34,605 43,747 61,326 59,300 74,398 Utility users tax 18,702 17,520 16,761 15,596 16,392 Franchise tax 5,470 5,161 5,169 4,690 5,235 Motor-vehicle in-lieu tax - - - - - Transient occupancy tax 11,734 11,112 9,344 5,531 10,526 Transient parking tax 3,353 3,462 2,813 1,283 3,833 Unrestricted investment earnings 1,005 11,625 12,752 5,393 (10,641) Other 26,161 33,923 25,474 23,512 8,601 Transfers 17,089 (91) 351 (20) 414 Total governmental activities 170,967 181,439 189,032 176,660 170,846 Business-type activities :
Unrestricted investment earnings 986 8,116 6,976 1,041 (4,957) Other 2,046 1,921 1,761 3,064 1,518 Transfers (17,089) 91 (351) 20 (414) Total business-type activities (14,057) 10,128 8,386 4,125 (3,853) Total primary government 156,910 191,567 197,418 180,785 166,993 Change in Net Position
Governmental activities 11,244 22,890 10,864 23,646 64,977 Business-type activities 26,308 23,610 11,833 12,555 1,064 Total primary government 37,552 46,500 22,697 36,201 66,041 ( Continued )
SOURCE : City Financial Services Department
143
City of Burbank
Table 2 - Changes in Net Position
Last Ten Fiscal Years (accrual basis)
(in thousands)
(Unaudited)
2013 2014 2015 2016 2017
Expenses
Governmental activities :
General government 15,976 12,022 14,600 13,335 17,252 Police 50,557 48,288 48,613 47,318 55,824 Fire 32,743 31,754 29,771 30,174 36,504 Public works 51,496 27,481 39,550 34,119 30,064 Community development 46,976 47,011 44,946 43,219 47,832 Parks & recreation 18,526 19,613 19,241 20,660 19,613 Library 6,736 6,593 6,735 6,919 6,671 Interest on long-term debt 2,955 7,254 3,743 2,943 2,762 Total governmental activities expenses 225,965 200,016 207,199 198,687 216,522 Business-type activities :
Water reclamation & sewer 13,596 13,556 13,146 13,961 13,925 Golf course 2,460 1,719 753 703 664 Electric utility 199,755 211,426 198,286 186,306 178,993 Water utility 25,957 29,529 28,350 28,924 28,969 Refuse collection & disposal 16,172 14,056 14,076 13,871 14,158 Total business-type activities expenses 257,940 270,286 254,611 243,765 236,709 Total primary government expenses 483,905 470,302 461,810 442,452 453,231 Program Revenues
Governmental activities :
Charges for services
General government 160 160 189 220 642 Police 3,729 3,612 3,856 3,784 4,065 Fire 3,691 3,684 3,474 4,383 4,301 Public works 1,354 1,147 2,126 1,896 1,665 Community development 21,399 9,630 10,350 5,862 6,632 Parks and recreation 3,467 3,759 3,817 3,903 4,004 Library 179 179 188 194 193 Operating grants and contributions 19,040 19,214 18,637 19,340 41,238 Total governmental activities program revenues 53,019 41,385 42,637 39,582 62,740 Business-type activities :
Charges for services :
Water reclamation & sewer 16,606 17,056 17,654 17,321 17,214 Golf course 1,932 887 19 - - Electric utility 218,712 224,958 212,282 207,850 205,634 Water utility 27,724 31,286 29,068 28,367 30,503 Refuse collection & disposal 16,365 16,302 16,841 16,700 17,420 Operating grants and contributions 1,898 2,639 5,044 886 269 Capital grants and contributions 732 891 1,007 4,040 1,648 Total business-type activities program revenues 283,969 294,019 281,915 275,164 272,688 Total primary government program revenues 336,988 335,404 324,552 314,746 335,428 Net (expense) / revenue
Governmental activities (172,946) (158,631) (164,562) (159,105) (153,782) Business-type activities 26,029 23,733 27,304 31,399 35,979 Total primary government net expense (146,917) (134,898) (137,258) (127,706) (117,803) SOURCE : City Financial Services Department ( Continued ) 144
City of Burbank
Table 2 - Changes in Net Position
Last Ten Fiscal Years (accrual basis)
(in thousands)
(Unaudited)
2013 2014 2015 2016 2017
General Revenues and Other
Changes in Net Position
Governmental activities :
Property tax 46,499 32,936 37,351 47,113 48,924 Sales tax 32,967 31,657 30,441 34,228 35,197 Utility users tax 20,237 19,905 19,312 19,384 19,185 Franchise tax 8,574 4,919 5,309 9,352 5,596 Motor-vehicle in-lieu tax 5,021 8,819 9,147 - - Transient occupancy tax 6,548 7,145 7,902 10,595 11,204 Transient parking tax 2,805 2,818 2,846 2,955 3,190 Unrestricted investment earnings 7,802 18,156 13,883 10,052 5,445 Other 17,142 27,025 31,157 35,198 10,772 Transfers 12,183 12,058 11,084 11,077 10,265 Total governmental activities 159,778 165,438 168,432 179,954 149,778 Business-type activities :
Unrestricted investment earnings 43 2,939 2,176 3,654 565 Other 2,469 2,606 3,790 2,621 5,191 Transfers (12,183) (12,058) (11,084) (11,077) (10,265) Total business-type activities (9,671) (6,513) (5,118) (4,802) (4,509) Total primary government 150,107 158,925 163,314 175,152 145,269 Change in Net Position
Governmental activities (13,168) 6,807 3,870 20,849 (4,004) Business-type activities 16,358 17,220 22,186 26,597 31,470 Total primary government 3,190 24,027 26,056 47,446 27,466 SOURCE : City Financial Services Department
145
GASB 54 Fund Balance
General General General General General Total
Fiscal Fund Fund Fund Fund Fund General
Year Nonspendable Restricted Committed Assigned Unassigned Fund
2012-13 46,384 119 - 5,202 43,189 94,894 2013-14 46,451 741 - 2,986 43,312 93,490 2014-15 46,171 1,023 - 2,356 48,320 97,870 2015-16 44,081 1,281 - 3,551 57,097 106,010 2016-17 33,281 1,476 - 2,060 63,708 100,525 2017-18 31,838 1,319 - 1,557 67,319 102,033 2018-19 23,477 1,491 - 6,222 86,404 117,594 2019-20 16,773 712 - 2,851 92,567 112,903 2020-21 10,113 12,281 - 3,447 86,907 112,748 2021-22 1,431 11,129 - 6,222 111,260 130,042 All Other All Other All Other All Other All Other All Other Fiscal Governmental Governmental Governmental Governmental Governmental Governmental Year Nonspendable Restricted Committed Assigned Unassigned Funds 2012-13 12,124 135,103 17,053 29,461 (564) 193,177 2013-14 184 166,474 16,723 30,194 (807) 212,768 2014-15 208 110,217 19,576 29,195 (816) 158,380 2015-16 174 106,781 20,392 29,645 - 156,992 2016-17 213 105,796 17,873 31,353 (71) 155,164 2017-18 161 65,996 20,177 29,705 (13) 116,026 2018-19 237 70,769 16,883 33,456 (187) 121,158 2019-20 88 71,411 17,580 33,581 (36) 122,624 2020-21 67 69,705 19,129 30,964 (166) 119,699 2021-22 123 75,290 18,508 29,252 (172) 123,001 SOURCE : City Financial Services Department
146
City of Burbank
Table 3 - Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis)
(in thousands)
(Unaudited)
2018 2019 2020 2021 2022
Revenues
Sales tax 34,605 43,747 61,326 59,300 74,398 Property tax 52,848 54,980 55,042 61,375 62,088 Utility Users tax 18,702 17,520 16,761 15,596 16,392 Other 11,915 16,019 5,382 (2,251) 5,618 Total Taxes 118,070 132,266 138,511 134,020 158,496 Licenses & Permits 5,907 6,543 7,284 6,915 9,799 Fines, forfeitures, and penalties 2,529 2,286 1,896 2,074 1,667 Use of money or property 6,303 9,533 9,988 4,827 (5,467) Intergovernmental 38,025 36,201 36,484 57,803 43,672 Charges for services 37,522 41,804 48,652 50,164 50,844 Total revenues 208,356 228,633 242,815 255,803 259,011 Expenditures
General government 16,308 12,605 22,643 20,452 20,285 Public Safety 92,699 92,470 98,014 99,988 98,648 Environmental 58,357 62,726 69,966 79,008 68,650 Culture and recreation 24,875 27,752 30,109 30,354 33,029 Capital outlay 18,368 13,240 16,305 20,952 9,237 Debt service : -
Principal 45,960 1,825 2,035 2,260 2,510 Interest 740 522 414 293 159 Total expenditures 257,307 211,140 239,486 253,307 232,518 Excess of revenues over (under) expenditures (48,951) 17,493 3,329 2,496 26,493 Other financing sources (uses)
Transfers in 17,193 5,611 2,699 6,854 1,266 Transfers out (5,894) (5,658) (6,017) (12,432) (7,165) Other revenues 22 7 4 2 2 Total other financing sources (uses) 11,321 (40) (3,314) (5,576) (5,897) Net change in fund balances (37,630) 17,453 15 (3,080) 20,596 Debt service as a percentage of noncapital expenditures 19.5% 1.2% 1.1% 1.1% 1.2% ( Continued )
SOURCE : City Financial Services Department
147
City of Burbank
Table 4 - Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis)
(in thousands)
(Unaudited)
City of Burbank
Table 4 - Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis)
(in thousands)
(Unaudited)
2013 2014 2015 2016 2017
Revenues
Sales tax 32,967 31,657 30,441 34,228 35,197 Property tax 46,499 32,936 37,351 47,113 48,924 Utility Users tax 20,237 19,905 19,312 19,384 19,185 Other 13,529 25,692 27,370 14,013 10,324 Total Taxes 113,232 110,190 114,474 114,738 113,630 Licenses & Permits 4,373 4,298 5,852 4,929 5,928 Fines, forfeitures, and penalties 2,308 2,110 2,570 2,380 2,406 Use of money or property 5,625 11,447 14,575 7,188 4,303 Intergovernmental 27,617 28,282 31,763 29,639 29,001 Charges for services 38,368 32,049 34,375 31,940 38,166 Total revenues 191,523 188,376 203,609 190,814 193,434 Expenditures
General government 23,113 12,391 15,640 12,900 18,776 Public Safety 80,070 79,432 80,519 84,953 91,108 Environmental 60,377 53,791 52,005 52,196 59,847 Culture and recreation 23,066 23,358 23,517 24,567 24,190 Capital outlay 38,223 11,840 14,337 14,899 10,592 Debt service :
Principal 4,500 6,700 53,185 3,670 3,920 Interest 2,959 6,786 4,041 2,959 2,779 Total expenditures 232,308 194,298 243,244 196,144 211,212 Excess of revenues over (under) expenditures (40,785) (5,922) (39,635) (5,330) (17,778) Other financing sources (uses)
Transfers in 20,084 17,885 14,867 15,896 16,505 Transfers out (5,451) (4,307) (4,294) (4,793) (6,064) Other revenues 15,620 28 92 152 24 Total other financing sources (uses) 30,253 13,606 10,665 11,255 10,465 Net change in fund balances (10,532) 7,684$ (28,970) 5,925 (7,313) Debt service as a percentage of noncapital expenditures 3.8% 7.4% 25.0% 3.7% 3.3% SOURCE : City Financial Services Department
148
Large Street Lights/
Fiscal Year Residential Commercial Commercial Traffic Wholesale Other 2012-13 41,404 44,617 70,123 2,399 44,295 6,628 2013-14 39,910 46,479 68,755 2,385 50,151 - 2014-15 43,109 48,980 71,086 - 35,691 9,169 2015-16 45,021 49,301 71,761 - 27,150 8,931 2016-17 44,978 49,961 72,470 - 23,512 8,554 2017-18 45,387 48,837 74,360 - 21,252 7,866 2018-19 43,287 44,485 69,916 - 21,784 4,696 2019-20 43,495 42,238 66,381 - 15,442 5,910 2020-21 45,553 39,436 58,345 - 42,088 6,512 2021-22 43,974 42,876 60,875 - 21,486 6,598 Effective July 1, 2018, instead of passing through the Electric Fund, the in-lieu transfer is accounted for directly in the General Fund.
Source : Burbank Water and Power
149
City of Burbank
Table 5 - Electricity Sold by Type of Customer
Last Ten Fiscal Years
(in thousands)
(Unaudited)
Large
Fiscal Year Residential Commercial Commercial
2012-13 0.14710 0.14346 0.12832
2013-14 0.14910 0.14645 0.12810
2014-15 0.15810 0.15590 0.13950
2015-16 0.16160 0.16080 0.14310
2016-17 0.16510 0.16490 0.14550
2017-18 0.16570 0.16760 0.14480
2018-19 0.15810 0.15890 0.13660
2019-20 0.15834 0.16071 0.13933
2020-21 0.15865 0.16020 0.13963
2021-22 0.16005 0.16208 0.14082
Effective July 1, 2018, instead of passing through the Electric Fund, the in-lieu transfer is accounted for directly in the General Fund
Source : Burbank Water and Power
City of Burbank
Table 6 - Electricity Rates
Last Ten Fiscal Years
(Unaudited)
150
Source : Burbank Water and Power
151
City of Burbank
Table 7 - Largest Electrical Customers
Per Burbank Water & Power during the fiscal year the top 10 Electric Utility customers consumed 20.07% of total electricity supplied and were billed 19.61% of total electric service revenues.
Pension Total
Obligation Revenue Govt'l
Fiscal Year Bonds Bonds Activities
2012-13 15,315 196,014 211,329
2013-14 14,320 95,505 109,825
2014-15 13,185 49,170 62,355
2015-16 11,895 46,790 58,685
2016-17 10,440 44,325 54,765
2017-18 8,805 - 8,805
2018-19 6,980 - 6,980
2019-20 4,945 - 4,945
2020-21 2,685 - 2,685
2021-22 175 - 175
Source : Financial Services Department
City of Burbank
152
Table 8 - Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(in thousands)
(Unaudited)
Governmental Activities
City of Burbank
Table 8 - Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(in thousands)
(Unaudited)
Total Total Pct (1)
Revenue Bus. Type Primary Personal Per
Fiscal Year Bonds Loans Activities Govt. Income Capita (2) 2012-13 153,446 7,260 160,706 372,035 8.33% 3.54 2013-14 145,605 8,437 154,042 263,867 5.62% 2.50 2014-15 138,867 8,023 146,890 209,245 4.24% 1.97 2015-16 131,993 7,634 139,627 198,312 3.82% 1.89 2016-17 124,988 7,234 132,222 186,987 3.33% 1.78 2017-18 117,833 6,825 124,658 133,463 2.24% 1.25 2018-19 110,517 6,404 116,921 123,901 2.00% 1.18 2019-20 90,475 5,973 96,448 101,393 1.58% 0.97 2020-21 87,549 5,530 93,079 95,764 1.38% 0.92 2021-22 113,390 - 113,390 113,565 1.53% 1.08
(1)
(2) This ratio is calculated using population for the prior calendar year.
Source : Financial Services Department
153
This ratio is calculated using personal income for two prior calendar years for the prior calendar year.
Business-Type Activities
Outstanding General Bonded Debt
Pension Total Pct. of
Revenue Obligation General Assessed Per
Fiscal Year Bonds Bonds Debt Value (1) Capita (2)
2012-13 196,014 15,315 211,329 1.15% 2.00
2013-14 95,505 14,320 109,825 0.58% 1.05
2014-15 49,170 13,185 62,355 0.32% 0.59
2015-16 46,790 11,895 58,685 0.28% 0.56
2016-17 44,325 10,440 54,765 0.26% 0.52
2017-18 - 8,805 8,805 0.04% 0.08 2018-19 - 6,980 6,980 0.04% 0.07 2019-20 - 4,945 4,945 0.02% 0.05 2020-21 - 2,685 2,685 0.01% 0.03 2021-22 - 175 175 0.00% 0.00 (1)
(2) This ratio is calculated using the prior year's population.
Source : Financial Services Department
City of Burbank
154
Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Last Ten Fiscal Years
Table 9 - Ratio of General Bonded Debt Outstanding
(in thousands)
(Unaudited)
City Assessed Valuation 19,194,786$
Redevelopment Agency Incremental Valuation 7,557,370
26,752,156$
Total Assessed Valuation
Percentage Outstanding
Applicable (1) Debt 21/22
Los Angeles County 1.619% 9,836 159 Burbank Unified School District 100.000% 134,991 134,991 Los Angeles Community College District 2.674% 4,146,515 110,885 Total overlapping debt 4,291,342 246,035 City direct debt :
Pension obligation bonds 175
Total City direct debt 175
Total direct and overlapping debt 246,210$
Note :
Sources : City Financial Services DepartmentCity Financial Services Department HDL Coren & Cone
Estimated Share of
Overlapping Debt
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within City boundaries and dividing it by each unit's total taxable assessed value.
155
City of Burbank
Table 10 - Schedule of Direct and Overlapping Debt
June 30, 2022
(in thousands)
(Unaudited)
Table 11 - Legal Debt Margin Information
Last Ten Fiscal Years
(in thousands)
(Unaudited)
Total Legal
Debt Net Debt
Fiscal Year Limit Debt Margin Pct (1)
2012-13 2,767,712 131,563 2,636,149 4.75% 2013-14 2,850,211 99,583 2,750,761 3.49% 2014-15 2,877,262 112,235 2,765,027 3.90% 2015-16 3,111,620 72,949 3,038,671 2.34% 2016-17 3,218,528 66,525 3,152,003 2.07% 2017-18 3,463,247 54,050 3,409,197 1.56%
2018-19 3,592,248 54,385 3,537,863 1.51% 2019-20 3,750,928 47,535 3,703,393 1.27% 2020-21 3,935,284 40,390 3,894,894 1.03% 2021-22 4,012,823 35,405 3,977,418 0.88% Note : (1) Full title : Total net debt applicable to the limit as a percentage of the debt limit Net assessed value 26,752,156$
Debt limit - 15% of assessed value 4,012,823
Amount of debt applicable to debt limit :
Successor Agency - tax allocation bonds (1) 35,405
Total 35,405
Less :
Reserves in Debt Service funds available for payment of principal :
Successor Agency -
Total -
Total amount of debt applicable to debt limit 35,405
Legal debt margin 3,977,418$
(1) Reflected in the Fiduciary Trust Fund statements.
Source : City Financial Services Department
City of Burbank
156
Table 12 - Pledged Revenue Coverage
Last Ten Fiscal Years
(in thousands)
(Unaudited)
Operations &
Gross maintenance Debt service Times
Fiscal Year Revenues (1) expenses (2) Net revenues requirement (3) coverage
ELECTRIC UTILITY FUND
2012-13 223,176 182,461 40,715 7,603 5.36 2013-14 230,366 194,311 36,055 7,464 4.83 2014-15 219,508 179,878 39,630 7,465 5.31 2015-16 211,450 168,081 43,369 7,469 5.81 2016-17 207,257 161,947 45,310 7,465 6.07 2017-18 206,505 159,938 46,567 7,468 6.24 2018-19 198,589 171,205 27,384 7,468 3.67 2019-20 185,688 167,957 17,731 7,464 2.38 2020-21 203,907 178,196 25,711 7,049 3.65 2021-22 183,439 167,942 15,497 3,295 4.70
WATER UTILITY FUND
2012-13 28,125 22,544 5,581 2,381 2.34 2013-14 32,137 25,558 6,579 2,346 2.80 2014-15 29,872 24,558 5,314 2,592 2.05 2015-16 27,542 22,918 4,624 2,593 1.78 2016-17 31,115 28,969 2,146 2,593 0.83 2017-18 34,664 28,842 5,822 2,596 2.24 2018-19 32,368 26,594 5,774 2,596 2.22 2019-20 34,386 29,627 4,759 2,593 1.84 2020-21 34,677 28,471 6,206 2,592 2.39 2021-22 34,297 27,998 6,299 2,995 2.10
WATER RECLAMATION AND SEWER FUND
2012-13 16,622 10,408 6,214 1,419 4.38 2013-14 17,961 10,154 7,807 1,422 5.49 2014-15 19,443 9,714 9,729 1,223 7.96 2015-16 18,352 10,466 7,886 1,222 6.45 2016-17 17,358 13,925 3,433 1,222 2.81 2017-18 17,679 10,794 6,885 1,217 5.66 2018-19 19,710 14,599 5,111 1,217 4.20 2019-20 20,379 14,079 6,300 1,216 5.18 2020-21 17,620 14,321 3,299 1,225 2.69 2021-22 16,848 11,148 5,700 1,221 4.67 ( Continued )
Source : City Financial Services Department
City of Burbank
157
Table 12 - Pledged Revenue Coverage
Last Ten Fiscal Years
(in thousands)
(Unaudited)
City of Burbank
Operations &
Gross maintenance Debt service Times
Fiscal Year Revenues (1) expenses (2) Net revenues requirement (3) coverage
REFUSE COLLECTION AND DISPOSAL FUND
2012-13 17,105 15,708 1,397 557 2.51 2013-14 17,166 13,080 4,086 751 5.44 2014-15 17,743 13,514 4,229 748 5.65 2015-16 17,870 13,782 4,088 759 5.39 2016-17 18,143 14,675 3,468 752 4.61 2017-18 17,597 14,724 2,873 748 3.84 2018-19 19,532 15,665 3,867 748 5.17 2019-20 19,439 14,029 5,410 749 7.22 2020-21 18,011 16,058 1,953 753 2.59
TAX ALLOCATION BONDS
Tax Debt Service Times
Fiscal Year Increment Principal Interest coverage
2012-13 22,928 6,120 8,828 1.53 2013-14 22,775 6,445 8,496 1.52 2014-15 10,387 6,365 5,909 0.85 2015-16 19,500 6,805 4,081 1.79 2016-17 13,239 6,425 3,853 1.29 2017-18 18,746 6,655 3,583 1.83 2018-19 17,431 6,525 3,583 1.72 2019-20 17,549 6,850 2,203 1.94 2020-21 17,824 7,145 1,887 1.97 2021-22 8,838 4,985 1,595 1.34 Notes : (1) Gross revenues are total operating revenues, interest income, intergovernmental revenues, gain on disposal of fixed assets, and other income. (2) Total operating expenses exclude depreciated cost.
(3) Debt service represents cash requirements during the year.
Source : City Financial Services Department
158
Per Capita
Personal Personal Unemployment
Fiscal Year Population (1) Income (2) Income (3) Rate (4) 2012-13 104,982 4,468,454 42,564 7.5% 2013-14 105,543 4,693,919 44,474 6.6% 2014-15 106,084 4,936,088 46,530 6.1% 2015-16 105,110 5,192,434 49,400 4.3% 2016-17 105,033 5,621,471 53,521 3.8% 2017-18 107,149 5,960,056 55,624 5.2% 2018-19 107,691 6,189,610 58,419 5.7% 2019-20 106,801 6,417,352 60,087 22.6% 2020-21 103,969 6,933,069 66,684 10.8% 2021-22 104,966 7,409,130 70,586 5.4% Note: (1) State of California Department of Finance
(2) (3) X (1); In Thousands
(3) Bureau Economic Analysis, Dept. of Commerce. For Los Angeles County.
CA1-3 per capital personal income (Metropolitan divisions) (4) State of California Economic Development Department.
City of Burbank
Table 13 - Demographic and Economic Statistics
Last Ten Fiscal Years
(Unaudited)
159
2022 2012
Number of Number of
Employees % Employees %
1. Warner Bros. Entertainment 5,000 7.7% 8,000 13.5%
2. The Walt Disney Company 4,065 6.2% 9,466 15.9%
3. Bob Hope Airport 2,685 4.1% 1,400 2.4%
4. Providence St. Joseph's Hospital 2,507 3.8% 3,500 5.9%
5. Burbank Unified School District 2,000 3.1% 2,010 3.4%
6. City of Burbank 1,419 2.2% 1,580 2.7%
7. ABC Inc 1,189 1.8% 944 1.6%
8. Deluxe Shared Services 754 1.2% 1,388 2.3%
9. Nickelodeon Animation 705 1.1% 547 0.9%
10. Entertainment Partners 641 1.0% 555 0.9% Other employers 44,250 67.9% 29,969 50.5% (1) 65,215 100% 59,359 100%
Source : City of Burbank Economic Development Department
160
(1) The total employees includes all employees in agencies which are required to report their employee counts to the City. Non-profit agencies are not required to report this information.
City of Burbank
Table 14 - Principal Employers
Current Year and Ten Years Ago
(Unaudited)
Fiscal year ended June 30,
2022 2021 2020 2019 2018
General government 233 229 229 186 158
Police 274 271 274 269 269
Fire 136 136 136 136 136
Public works 88 90 88 88 88
Community development 64 58 60 51 51
Parks and recreation 167 168 168 167 166
Library 64 64 64 65 65
Water Reclamation and Sewer 12 12 12 12 12
Electric Utility 287 286 286 286 286
Water Utility 53 53 53 53 53
Refuse Collection & Disposal 63 63 63 62 62
1,441 1,430 1,433 1,375 1,346
2017 2016 2015 2014 2013
General government 220 165 145 161 163
Police 271 271 266 265 265
Fire 136 136 135 135 137
Public works 111 111 108 128 129
Community development 51 51 49 75 81
Parks and recreation 165 231 222 160 157
Library 65 65 63 63 63
Water Reclamation and Sewer 11 11 11 11 11
Electric Utility 286 286 286 286 286
Water Utility 51 53 51 51 51
Refuse Collection & Disposal 55 56 55 55 55
1,422 1,436 1,391 1,390 1,398
Source : City Financial Services Department
161
City of Burbank
Table 15 - Full-Time and Part-Time City Employees by Function Last Ten Fiscal Years
(Unaudited)
Table 16 - Operating Indicators by function, concluded
Last Ten Fiscal Years
(Unaudited)
Fiscal year ended June 30,
2022 2021 2020 2019 2018
Police :
Arrests 3,832 3,659 4,785 4,699
Reports taken 11,596 10,662 10,808 11,830
Service calls 41,338 42,026 45,816 50,587
Animals entering shelter 1,115 1,188 1,496 1,796
Moving violations issued 8,425 8,059 8,025 11,665
Fire :
Safety employees 120 120 120 120 120
Fire incidents 1,274 1,193 1,330 1,961 1,409
Medical incidents 9,490 8,467 8,690 8,622 9,127
Community Development :
Building permits 4,200 3,967 4,250 3,961 4,245
Business licenses/business permits 900 854 978 915 940
Business tax registrations 11,500 11,840 12,260 12,455 12,567 Parks and Recreation :
Number of street trees 30,749 27,875 27,875 28,051
Sports participants 17,799 10,389 19,875 14,830
Afterschool and daycamp participants 3,317 766 1,200 1,787 Special interest participants 5,814 7,881 11,495 10,966 Burbank bus ridership (1) 161,971 139,823 248,267 278,272 280,363 RSVP volunteer hours served 59979 109,206 109,206
Library :
Number of books 293,487 312,031 322,177 348,223 403,172 Number of audiovisual recordings 64,933 67,003 69,287 70,871 69,397 Water Reclamation & Sewer :
Customer accounts 46,377 46,233 45,869 47,766 47,620
Electric Utility :
Number of meters 54,445 54,172 53,884 56,641 55,902
Generating capacity (KW) 225,000 225,000 225,000 225,000 225,000 Peak demand (KW) 322,000 292,000 283,000 322,000 322,000 Water Utility :
Number of meters 27,082 27,065 27,012 27,923 27,811
Average daily gallons used 13,520 14,080 13,650 13,560 14,180 Refuse collection & Disposal :
Customer accounts 48,680 48,485 47,871 53,307 52,073
Golf Course :
Rounds of full golf 70,199 46,617 45,710 44,983
Rounds of 3 par golf 7,381 3,949 3,281 3,747
( Continued )
City of Burbank
162
Table 16 - Operating Indicators by function, concluded
Last Ten Fiscal Years
(Unaudited)
City of Burbank
Fiscal year ended June 30,
2017 2016 2015 2014 2013
Police :
Arrests 4,964 5,155 5,601 5,802 5,628
Reports taken 14,976 13,016 11,848 12,221 12,387
Service calls 48,923 47,432 44,663 44,355 44,889
Animals entering shelter 1,944 2,013 2,220 2,630 2,504
Moving violations issued 12,672 12,019 15,377 13,703 14,445 Fire :
Safety employees 120 135 125 120 123
Fire incidents 1,348 1,331 1,221 1,221 1,218
Medical incidents 9,004 8,759 7,818 7,818 7,818
Community Development :
Building permits 4,097 4,372 4,060 4,428 5,749
Business licenses 960 965 938 1,026 1,005
Business tax registrations 12,639 12,903 13,043 12,791 12,620 Parks and Recreation :
Number of street trees 28,375 28,532 28,505 28,631 28,788 Sports participants 15,599 15,709 15,230 17,290 15,507
Afterschool and daycamp participants 1,488 4,935 13,924 13,716 15,140 Special interest participants 11,421 11,000 11,004 11,416 13,258 Burbank bus ridership (1) 300,118 330,103 317,178 332,232 351,724 RSVP volunteer hours served 128,881 138,407 119,955 178,000 178,000 Library :
Number of books 423,707 438,872 480,374 548,494 531,253 Number of audiovisual recordings 75,301 88,869 85,482 87,254 82,415 Water Reclamation & Sewer :
Customer accounts 47,506 47,529 47,371 47,242 55,883
Electric Utility :
Number of meters 55,885 53,153 54,086 53,130 52,788
Generating capacity (KW) 225,000 225,000 225,000 225,000 211,000 Peak demand (KW) 279,467 309,000 316,000 266,000 294,000 Water Utility :
Number of meters 27,670 26,820 27,003 26,880 26,853
Average daily gallons used 13,023 12,095 14,694 17,796 17,117 Refuse collection & Disposal :
Customer accounts 51,475 50,728 49,853 48,996 48,331
Golf Course :
Rounds of full golf 54,000 51,200 56,000 55,000 56,782
Rounds of 3 par golf 6,000 7,852 13,000 14,000 15,100
(1) Got Wheels Program was discontinued in 2013
163
Fiscal year ended June 30,
2022 2021 2020 2019 2018
Police :
Stations 1 1 1 1 1
Fire :
Stations 6 6 6 6 6
Public works :
Miles of streets 230 228 228 228 228
Miles of alleys 50 49 49 49 49
Miles of sidewalks 368 368 368 368 368
Street lights 9,568 9,568 9,568 9,568 9,568
Miles of storm drains 63 63 63 63 63
Signalized intersections 198 196 196 196 196
Parks and Recreation :
Number of parks 32 27 27 32 32
Swimming pools 2 2 2 2 2
Tennis courts 22 21 21 21 23
Ballfields 15 15 15 15 15
Community gymnasiums 3 3 3 2 3
Library :
Main and branch libraries 3 3 3 3 3
Water Reclamation & Sewer :
Miles of sewers 230 230 230 230 230
Electric Utility :
Transmission & distribution lines (miles) 424 424 421 421 412 Water Utility :
Miles of water mains 310 280 280 280 280
( Continued )
City of Burbank
164
Table 17 - Capital Asset Statistics
Last Ten Fiscal Years
(Unaudited)
City of Burbank
Table 17 - Capital Asset Statistics
Last Ten Fiscal Years
(Unaudited)
Fiscal year ended June 30,
2017 2016 2015 2014 2013
Police :
Stations 1 1 1 1 1
Fire :
Stations 6 6 6 6 6
Public works :
Miles of streets 228 228 228 228 228
Miles of alleys 49 49 49 49 49
Miles of sidewalks 368 368 368 368 368
Street lights 9,551 9,335 9,180 9,148 9,133
Miles of storm drains 63 63 63 63 61
Signalized intersections 196 196 196 196 196
Parks and Recreation :
Number of parks 32 28 28 28 28
Swimming pools 2 2 2 2 2
Tennis courts 21 21 21 21 21
Ballfields 15 13 13 15 15
Community gymnasiums 3 3 3 3 3
Library :
Main and branch libraries 3 3 3 3 3
Water Reclamation & Sewer :
Miles of sewers 225 225 225 225 223
Electric Utility :
Transmission & distribution lines (miles) 407 421 419 420 405 Water Utility :
Miles of water mains 280 280 280 280 280
165
Table 18 - Schedule of Credits
(Unaudited)
Jennifer Becker
Financial Services Director General Overview
Management's Discussion & Analysis
Leana Mkrtchyan
Deputy Financial Services Director General Overview
Management's Discussion & Analysis
Letter of Transmittal
Heidi Okimoto,
Accounting and Audit Manager Audit Coordination
General Fund
Nutrition Accounting
Notes to Financial Statements
Angela O'Connor,
Principal Accountant Sucessor Agency - Private Purpose Trust Fund Redevelopment Capital Projects & Debt Service Funds
Internal Service Funds
Special Revenue Funds
Notes to Financial Statements
Management's Discussion & Analysis
Eva Felipe
Senior Accountant Enterprise Funds
Cash Reconciliations
Special Revenue Funds
Statistical Section - Annual Financial Report
Monina Marin Enterprise Funds
Senior Accountant Projects Accounting
Special Revenue Funds
General City Capital Projects Fund
Management's Discussion & Analysis
Cathy Jaramillo Fixed Assets Accounting
Accountant Fuel Accounting
Inventory Accounting
Caleb Abegg Bond Cash Reconciliations
Account Clerk Year-end Journals
Craig Wood,
Financial Systems Manager Systems Programming
Grant Activity Report (Single Audit)
Cassidy Allen,
Graphic Illustrator Cover Photos And Design
166
City of Burbank
June 30, 2022
275 E. OLIVE AVE. • BURBANK • CALIFORNIA • 91502
WWW.BURBANKCA.GOV
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