CITY OF CULVER CITY, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
City of Culver City, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Prepared by:
Finance Department
City of Culver City, California
Introductory Section
City of Culver City, California
City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2021
Table of Contents
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PAGE
INTRODUCTORY SECTION (Unaudited)
Table of Contents i
Letter of Transmittal ......................................................................................................................... v Officials of the City of Culver City, California.................................................................................. xx Organization Chart ............................................................................................................................. xxi GFOA Certificate of Achievement for Excellence in Financial Reporting ....................................... xxii
FINANCIAL SECTION
Independent Auditor’s Report on Financial Statements .............................................................. 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) .................................................................................................................................. 5
Basic Financial Statements:
Governmen
t-Wide Financial Statements:
Statement of Net Position ............................................................................................................. 26 Statement of Activities .................................................................................................................. 28
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ........................................................................................................................ 34 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.................................................................. 37 Statement of Revenues, Expenditures, and Changes in Fund Balances................................ 38 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the
Government-Wide Statement of Activities ................................. .................................... 40
Proprietary Fund Financial Statements:
Statement of Net Position ......................................................................................................... 44 Statement of Revenues, Expenses, and Changes in Net Position............................................. 48 Statement of Cash Flows .......................................................................................................... 50
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ........................................................................................ 57 Statement of Changes in Fiduciary Net Position...................................................................... 58
Index to the Notes to the Basic Financial Statements ......................................................................... 6 1 Notes to the Basic Financial Statements ............................................................................................. 63
City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
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PAGE
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Schedule of Changes in Net Pension Liabilities and Related Ratios CalPERS Miscellaneous Plan .............................................................................................. 1 16 CalPERS Safety Plan ........................................................................................................... 118 Schedule of Contributions – Pensions
CalPERS Miscellaneous Plan ............................................................................................... 1 20 CalPERS Safety Plan ............................................................................................................. 122 Schedule of Changes in Net OPEB Liabilities and Related Ratios .......................................... 124 Schedule of Contributions - OPEB ........................................................................................... 126
Budgetary Comparison Schedule:
General Fund ......................................................................................................................... 128 Culver City Housing Authority Special Revenue Fund ........................................................ 129 Note to the Required Supplementary Information (Unaudited) Budgetary Comparison Schedule ........................................................................................................... 130
Supplementary Information:
Nonmajor Governmental Funds:
Combining Balance Sheet ..................................................................................................... 133 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............. 134
Nonmajor Special Revenue Funds:
Combining Balance Sheet ..................................................................................................... 138 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............. 142 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Gas Tax Special Revenue Fund ....................................................................................... 146 Proposition A Local Return Special Revenue Fund .............. ......................................... 147 Proposition C Local Return Special Revenue Fund ............... ......................................... 148 Measure R Special Revenue Fund................................. ................................................... 149 Operating Grants Special Revenue Fund.......................................................................... 150 Section 8 Housing Special Revenue Fund......................... ............................................... 151 Art in Public Places Special Revenue Fund ..................................................................... 152 Community Development Special Revenue Fund............................................................ 153 Community Development Block Grant (CDBG) Special Revenue Fund ........................ 154 Special Assessment Special Revenue Fund...................................................................... 155 Park Facilities Special Revenue Fund .............................................................................. 156 Asset Seizure Special Revenue Fund ............................................................................... 157 Parking Authority Special Revenue Fund ........................................................................ 158 Safe/Clean Water Protection Special Revenue Fund........................................................ 159 Building Surcharge Special Revenue Fund ...................................................................... 160 Paratransit Special Revenue Fund .................................................................................... 161 Measure M Special Revenue Fund................................. .................................................. 162 AQMD .............................................................................................................................. 163 Board of State and Community Corrections Special Revenue Fund.. .............................. 164 City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
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PAGE
FINANCIAL SECTION (Continued)
Supplementary Information(Continued):
Majo
r and Nonmajor Capital Projects Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Capital Improvement and Acquisition Capital Projects Fund ................................................. 167 Capital Improvement Grants Capital Projects Fund…………………………………………. 168
Nonmajor Governmental Funds:
Combining Balance Sheet……………………………………………………………………… 169
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................... 170 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Cooperative Projects Capital Projects Fund ………………………………………………… 17 1 CDBG Capital Projects Fund………………………………………………………………… 172
Internal Service Funds:
Combining Statement of Net Position………………………………………………………….. 174 Combining Statement of Revenues, Expenditures, and Changes in Net Position……………… 177 Combining Statement of Cash Flows…………………………………………………………… 178
Agency Fund Financial Statements:
Combining Statement of Agency Assets and Liabilities……………………………………….. 183 Combining Statement of Changes in Agency and Liabilities…………………………………... 184
STATISTICAL SECTION (Unaudited)
Description of Statis
tical Section Contents ............................................................................................. 187 Net Position by Component .............................................................................................................. 188 Changes in Net Position .................................................................................................................... 190 Program Revenues by Revenue Function………………………………………………………….. 194 Fund Balances, Governmental Funds………………………………………………………………. 196 Changes in Fund Balances, Governmental Funds 198
Tax Revenues by Source…………………………………………………………………………… 200 Assessed Value and Estimated Actual Value of Taxable Property................................................... 202 Direct and Overlapping Property Tax Rates...................... ............................................................... 203 Principal Property Taxpayers………………………………………………………………………. 204 Property Tax Levies and Collections………………………………………………………………. 205 Ratios of Outstanding Debt by Type………………………………………………………………. 206 Direc
t and Overlapping Governmental Activities Debt 207
Legal Debt Margin Information……………………………………………………………………. 208 Pledged-Revenue Coverage………………………………………………………………………… 210 Demographic and Economic Statistics……………………………………………………………… 211 Principal Employers………………………………………………………………………………... 212 Full-Time Equivalent City Government Employees by Function/Program………………………… 217 Operating Indicators by Function…………………………………………………………………... 218 Capital Asset Statistics by Function ……………………………………………………………….. 220
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FINANCE DEPARTMENT
9770 CULVER BOULEVARD, CULVER CITY, CALIFORNIA 90232-0507 PHONE (310) 253-5865
FAX (310) 253-6010
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January 28, 2022
Honorable Mayor, Members of the City Council, and Citizens of Culver City:
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Culver City (the City) for the fiscal year ended June 30, 2021. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including al l disclosures, rests with the City. In our opinion, the data is accurate in all material aspects, is presented in a manner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to gain an understanding of the City's financial affairs.
The financial statements are prepared in accordance with Genera lly Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City of Culver City, California. Consequently, management assumes full responsib ility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft or misuse and to compile sufficient rel iable information for the preparation of the City's financial statements in conformity with GAAP. Because th e cost of internal controls should not outweigh their benefits, the City 's comprehensive framework of internal controls have been designed to provide reasonable rather than absolute assurance that the fina ncial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City's financial statements have been audited by Vasquez & Company LLP, a public accounting firm duly licensed and qualified to perform audits of the State and local governments within the State of California. The goal of the inde pendent audit was to provide re asonable assurance that the financial statements of the City of Culver City, California for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the acco unting principles used and significant estimates made by management; and evaluating the overall financ ial statement presentation. The independent auditors concluded, based upon the audit, that ther e was a reasonable basis for rendering an unmodified opinion that the City of Culver City, California's f inancial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.
This ACFR is legally required by the City Charter, various bond covenants, and a number of granting agencies. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of the Federal grantor agencies. The standards governing Single Audit engagemen ts require the independent audi tor to report not only on the fair presentation of the financial statements, but also on the audit ed government's internal controls and compliance with legal requiremen ts, with special emphasis on in ternal controls and legal requirements
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involving the administration of Federal awards. These reports a re available in the City's separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be re ad in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.
Profile of the City of Culver City
The City of Culver City, located on the Westside of Los Angeles County, California, was incorporated in 1917. The City Charter, which was adopted in 1947, establishes the form of government, states the powers and duties of the City Council, and establishes various City offices. The City operates under a Mayor/City Council-City Manager form of gove rnment. Under this system, the people elect a City Council of five citizens who serve a term of four years and who, in turn, elect the Mayor from among themselves. The City Council appoints the City Manager, City Attorney, Police Chief and Fire Chief. Other department heads are appointed by the City Manager.
Culver City is a full-service City, serving a resident populati on of 40,000 and a daytime population of approximately 60,000
1. Services provided include police, fire, general maintenance, public improvements, planning and zoning, refuse collection, municipal bus lines, pa rk, recreation and community services, and general administrative services.
The annual budget serves as the foundation for the City financial planning and control. The City Council is required to adopt an annual budget resolution by July 1 of each fiscal year for the General Fund and Special Revenue Funds. It also adopts a project life budget for Capital Projects Funds and an operating plan for Proprietary Funds. These budgets are adopted and presented for reporting purposes on a basis consistent with generally accepted accounting principles.
The City of Culver City is also financially accountable for the legally separate Culver City Housing Authority and Culver City Parking Authority, which are blended into the City’s financial statements.
Pursuant to legislation enacted by the State, the Redevelopment Agency was dissolved on January 31, 2012.
Additional information on all of these entities can be found in Note 1 of the Notes to the Financial Statements. Additional information on the dissolution of the Redevelopment Agency can be found in Note 16 of the Notes to the Financial Statements.
The level of appropriated budgetary control is the total adopted budget, which is defined as the total budget for all funds and divisions and includes all revisions and amen dments approved by the City Council subsequent to the initial budget adoption. The City Manager may authorize transfers of appropriations within the adopted budget. Supplem ental appropriations during t he year must be approved by the City Council, with certain exceptions delegated to the City Manager in the Budget Resolution adopted annually by City Council. Unexpended or une ncumbered appropriations laps e at the end of the fiscal year.
Encumbered appropriations are reappropriated in the ensuing yea r's budget. The City utilizes an encumbrance accounting system, wh ereby commitments such as purc hase orders and unperformed contracts are recorded as restricted fund balances at year-end.
1 Population estimates from the U.S. Census Bureau; Census 2010 PHC-T-40; “Estimated Daytime Population and Employment- Residence Ratios: 2010”
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History of Culver City
Native Americans of Shoshonean origins were the first known inhabitants of the area which became Culver City. Although Cabrillo anchored his small ship in the port of San Diego in 1542, it was not until the threat of aggression by other countries, that King Carlos III of Spain mandated colonization in 1769. Franciscan Father Junípero Serra began to establish the missions from San Diego northward. The natives became known as the "Gabrielino Indians", due to their proximity to the San Gabriel Mission (est. 1771). In 1781, the "Pueblo de Nuestra Señora la Reina de Los Angeles" was esta blished by eleven families and an escort of Spanish soldiers. On a later expedition that year, a young s oldado, José Manuel Machado arrived in California with his wife. Machado was destined to complete his military duty and retire with his family to the pueblo in 1797. After Machado's death in 1810, two of his sons, José Agustín and José Ygnacio joined Felipe Talamantes and his son Tomás to graze cattle to the west, where they claimed the 14,000 acre Rancho La Ballona. By 1865, when Agustín Machado, (the most prominent owner), died, Rancho La Ballona had functioned under three governments: Spain, Mexico and the United States.
The Gold Rush and the Railroad moved people west. Abbot Kinney bought the land to develop his "Venice of America" in 1904. A young man from Nebraska, named Harry H. Culver arrived in California in 1910 and went to work in real estate for I. N. Van Nuys. Culver studied the area and in 1913 announced his plans for a city halfway between the pueblo of Los Angeles and Kinney's resort of Venice. Culver envisioned a balanced community with a residential/commercial mix.
Culver, who was already enamored by the movie industry, saw Thomas Ince making a movie with "painted Indians" in canoes on La Ballona Creek. He convinced the moviemakers to move from "Inceville" north of Santa Monica to property on Washington Boulevard. This first major movie studio became a "city within a city", eventually six lots, covering more than 180 acres. What began as Ince/Triangle Studios became Goldwyn, then successively Metro Goldwyn Mayer, Lorimar and Col umbia Pictures. In 1989, electronics and information technology gia nt Sony Corporation purchased Col umbia Pictures and the site is now the global headquarters for Sony Pictures Entertainment.
Ince had moved east on Washington Boulevard to establish his se cond studio in 1919. After he died in 1924, this studio prospered as De Mille Studios, Selznick Studi os, R.K.O., Pathe, R.K.O.-Pathe, Desilu, Culver Studios, Laird International, and most currently, The Culver Studios. It was on this studio's back lot that Atlanta was burned for "Gone with the Wind". The third maj or studio was Hal Roach Studios, which existed from 1919 through 1963. It was known as the "Laugh Fact ory of the World", where the Our Gang Comedies and Laurel and Hardy were filmed. Hence, the "Heart of Screenland" appears on our City Seal.
The first City offices where the early "Board of Trustees" met were located on the second floor of the local theater, which Harry Culver moved to build his six-story Hunt Hotel in 1924. "City Hall" relocated to Van Buren Place until 1928 when the New City Hall was dedicated at 9770 Culver Boulevard. That structure made way for another new City Hall that was completed in 1995. Through a series of more than 40 annexations over the years, Culver City grew from 1.2 to 5.13 square miles.
In the twenties, Culver City was known for its nightspots like Fatty Arbuckle's Plantation Cafe and Frank Sebastian's Cotton Club. Western Stove on Hays (National) marke d the beginning of industry in 1922.
Despite the Depression, building continued with endeavors like Helms Bakery which supplied foodstuffs for the 1932 Olympics in Los Angeles. The first Industrial trac t, the Hayden Tract, became a reality in the forties. In the late forties, Culver City became a Charter City with a Unified School District. Our Junior and Senior High Schools were built to complement what eventually nu mbered eight elementary schools (presently there are five.) Hughes Aircraft located nearby and became a major employer of Culver City residents, like Helms and the studios. In 1950, the Veterans' M emorial Building was completed, Culver Center was built, car dealerships lined Washington Boulevard an d the Fiesta La Ballona celebrated the
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Spanish heritage of the area beginning in 1951. In the fall of 1975, Fox Hills Mall was completed as the first major Redevelopment project. The Filmland Corporate Cente r, Meralta Plaza and the beginnings of Corporate Pointe were projects of the 80's.
Redevelopment efforts continued in Downtown Culver City in the early 2000’s. With the redevelopment of the Helms and Beacon Laundry buildings into the Helms Furniture District, new theatres in the center of the City including the redevelopment of the Culver Theatre into the Kirk Douglas Theatre, the 12 screen Arclight Theater Complex and the Actor’s Gang at the Ivy Substa tion, a number of highly rated new restaurants, a thriving arts district on the eastside and development of the western portion of the City, Culver City continues to move forward. Redevelopment efforts were sign ificantly thwarted with the elimination of redevelopment agencies throughout the State of California. In December 2013, the Successor Agency to the Culver City
Redevelopment Agency (Successor Agency) received a ‘finding of completion’ from the State’s Department of Finance (DOF). This allowed the Successor Agency to submit a Long Range Property Management Plan (LRPMP) to the DOF that details how the former Redevelopment Agency properties will be disposed of. The LRPMP was approved in March of 2014. As a r esult, significant projects such as the Culver Steps (formerly referred to as “Parcel B”), Culver Publi c Market and the Ivy Station Complex are now underway.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the s pecific environment within whic h the City of Culver City, California operates.
Nationally, reports continued to d emonstrate signs of continued modest economic growth as real gross domestic product (GDP) increased to an annual rate of 6.6% in the fourth quarter of 2021, from 6.5% in the third quarter per the Bureau of Economic Analysis.
The largest single relief package in U.S. history, the Coronavi rus Aid, Relief, and Economic Security (CARES) Act of 2020 appropriated $2.3 trillion was signed into law on March 27, 2020, to provide aid during the pandemic. The Coronavirus Response and Relief Supple mental Appropriations (CRRSA) Act of 2021 was signed into law on December 27, 2020. The Transportation Department received $6.25 million of CARES funds and $6.0 million of CRRSA funds in FY2020-21.
Also, Congress signed the $1.9 trillion American Rescue Plan Ac t (ARPA) of 2021 on March 11, 2021.
Culver City received $4.69M of ARPA funds during FY 2020/2021 and will receive another $4.69M in the following fiscal year.
The federal Reserve lowered the federal funds rate to a 0.09% as of Oct 2020 as part of an ongoing attempt to maintain the economic expansion. The Bureau of Labor Statistics reported that the U.S. inflat ion rate rose 6.8% in 2021, the highest increase since 1982. According to Clear Capital, which supplies average home prices for metro areas across the U.S., home prices rose 1 5.5% nationally in June 2021, compared with an increase of 5.7% in 2019 and an increase of 7.4% in 2018.
Per S&P Global: The U.S. GDP growth forecast is lowered to 5.5 % for 2021 and 3.9% for 2022 (from
5.7% and 4.1%, respectively) due to an acceleration in new COVI D-19 cases associated with the Delta variant and the emergence of the Omicron variant, concerns related to supply chains, product shortages and labor issues, and record-high consumer prices. Despite the slo wdown, GDP is still likely to rise to a 37-
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year high in 2021, with solid readings for 2022, on continued e conomic demand from healthy balance sheets.
The political climate continues to pose uncertainty for the nat ional economic outlook due in part to contentious federal trade policies, a surge in COVID-19 cases d ue to Delta and Omicron, and the global parts shortages resulting in record-high consumer prices which may extend into the next year or two. City staff will be cautiously monitoring these critical political de cisions and their effect on national, state and local economies.
Local Economy
Culver City has a relatively diverse and strong economy. The City's business community is comprised of a diverse collection of businesses that range from traditional re tail and manufacturing businesses to a major film studio. Mainstay firms as Costco, Westfield-Culver City Mall and Sony Pictures Entertainment occupy a traditional niche as large ins titutional property owners, tax producers and employers. Companies, including Apple, have added employees in a new development in Culver City. Apple has occupied creative office space at the corner of Washington and National Boulevard s. Both Apple’s new office space and the adjacent $350 million Ivy Station were completed in 2021. Amazo n has inhabited the historic Culver Studios to increase their mixed-used studio and office space and other ventures and has taken over space in the brand new Culver Steps completed in late-summer 2021.
The dissolution of the Redevelopment Agency was effective on January 31, 2012, at which time all of the assets held by the former Redevelopment Agency were transferred to the Successor Agency to the Culver City Redevelopment Agency. Purs uant to the Dissolution bill, th e City of Culver City elected to serve as the Successor Agency charged with winding down the affairs of the Redevelopment Agency. The Successor Agency will only receive enough property tax increment to repay debt and enforceable obligations that were incurred prior to June 26, 2011. Any property tax incremen t in excess of the former Agency’s enforceable obligations will be disbursed to taxing entities.
As the City previously was a pioneer in the motion picture industry, Culver City has now pioneered a way forward in the regulated cannabis industry. In December 2017, t he Culver City Council voted to legalize cannabis sales within the City. Cannabis business tax received was $1.7million, $1.4 million higher than the previous fiscal year.
Major Initiatives and Improvements for Fiscal Year 2020-2021
While several years past, it is of importance to note during th e most recent recessionary period, City management took a number of steps to address the City’s fiscal challenges. Many of these improvements persist in the City’s current financial structure. Initiatives included increasing cost recovery, utilizing assessment districts, eliminating positions, and renegotiating labor agreements. Despite efforts to balance the budget without significantly impacting services, an ongoing structural budget defi cit still exists. To address the structural deficit, the City put forth three revenue measures for consideration by the electorate.
An increase of the City’s Transie nt Occupancy Tax from 12% to 1 4% was approved by voters in April 2012. More significantly, a half-cent transaction and use tax w as placed on the ballot (Measure Y) in November 2012. Residents overwhelmingly approved the transaction and use tax, which became effective on April 1, 2013 and raised approximately $9.1 million during F Y2019/2020. Measure Y was set to automatically expire in 2023 if not extended by voters. During the March 2020 election, Culver City residents voted to extend the sunset date of Measure CC (former ly Measure Y), from March 31, 2023 to March 31, 2033. An additional quarter-cent sales tax (Measure C ) was approved on November 6, 2018,
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which went into effect beginning April 1, 2019 and is expected to generate an estimated $5 million per year. The City received $4.7 million during FY2020/2021.
At the November 3, 2020 election, Culver City residents also vo ted to approve Measure RE. Measure RE establishes a marginal tax rate with four brackets, based on sa les price or value, for the City's real estate transfer tax effective April 1, 2021. This marginal tax will a dd 1.5% on amounts from $1,500,000 to $2,999,999, 3% on amounts from $3,000,000 to $9,999,999, and 4% on amounts $10 million and above.
Measure RE would not apply to sales under $1.5 million affordable housing, and first transfer of new multi- family properties. It is anticipated that this tax will provide the City with an additional $6 million or more in annual revenue.
The City plans to continue taking steps to become more efficient, and ensure that operating revenues cover operating expenditures.
The original FY2020/2021 Adopted Budget contained major work plans for each department and a citywide capital project plan to address the highest priorities of the c ommunity and the goals of the City Council.
Although, the City had to shift its General Fund resources to address costs associated with COVID-19, the following are major work programs and community reinvestment an d improvement projects that received funding from other funding sources:
1. Community Service Improvements
a. Continue the City's strategy as a component of the Enhanced Watershed Management Program (EWMP) Regional Infiltra tion BMP. Through this initiati ve, an infiltration and retention site will be devel oped using the median on Culver Boulevard between Elenda Street to Sepulveda Boulevard to divert stormwater and urban run-off from the surrounding drainage area within Culver City and City of LA.
b. Continue with the realignment of Culver Boulevard from Commonwe alth Ave to Elenda Street.
c. Complete the design and installation of real-time monitoring eq uipment to communicate to and guide motorists to available parking spaces in the three parking structures in the downtown area of Culver City. This project will include four message boards located along Washington Bl and Culver Bl that summarize the availability of parking in the various structures. This project will also provi de level by level availability signs at the entran ce to each structure and a spac e availability sign at the entrance to each level.
2. Community Reinvestment
a. Continue negotiations with enterprise businesses within the Cit y for dark fiber leases, and customer leases, and with Internet Service Providers to enhance broadband service.
b. Continue with a Wi-Fi strategy leveraging the municipal fiber infrastructure to extend the City’s Wi-Fi to municipal locations.
c. Completed the construction of Bankfield Pump Station and the pr oject for the design and construction of the diversion piping and closure of the Mesmer and Overland sewer pump stations.
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d. Completed the project that involves striping, resurfacing and restriping sport courts at Fox Hills, Lindberg, Kronenthal, El Marino, Culver West Alexand er, Blair Hills and Vet's Parks. Sports courts include tennis, paddle tennis, handball, and basketball courts.
e. Completed the project to replace existing outdated playground w ith new 100% accessible challenging play equipment.
3. Internal Operational Improvements
a. Continue to implement and replace existing timekeeping software.
b. Continue to work with consultants to complete review of City cash handling, enterprise risk assessment, grant management, fleet management and internal control.
All of the City’s operations, including the community service improvements, community reinvestment, and internal operational improvements identified above, are funded by various taxes, fees and fines levied on consumers, residents, businesses, and developers operating within the City.
A brief historical discussion of the City’s major revenue sources is contained in the following section.
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Major General Fund Revenues
Major sources of General Fund revenue for the City include Sale s Tax, Business Tax, Utility User Tax (UUT), Property Tax and Transient Occupancy Tax (TOT).
Sales Tax
Sales Tax is Culver City’s single largest revenue source. The S tate of California imposes a 10.25% sales and use tax on all taxable sales in the City, of which the City receives 1.0% of the transactions subject to the sales and use tax. Due to its reliance on consumer spending, this revenue source is highly volatile. The City’s sales tax and Measure C/CC receipts increased in FY2020/ 2021 from on-line general consumer goods and sales tax revenue, as reported through the State and County Pools.
Sales tax accounted for 18.6% of General Fund revenue for FY2020/2021, closing the year at $22.9 million.
With Measure Y taking effect in April 2013, FY2020/2021 was the eighth full year of the local sales tax measure with receipts totaling $ 10.2 million, accounting for 8.3% of General Fund revenue. With Measure C taking effect in April 2019, the receipts totaled $4.7 millio n in FY2020/2021 accounting for 3.8% of General Fund revenue.
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Business Tax
Business Tax revenue accounts for approximately 12.9 % of the G eneral Fund revenue. Annually, all entities conducting business in Culver City are required to pay business taxes. Like Sales Tax, Business Tax revenue is highly dependent on national and regional econom ic forces. Consequently, Business Tax revenue is relatively volatile. Business Tax revenue is based o n a businesses’ gross receipts, which is a measure of the amount of business they do in the City.
FY2020/2021 Business Tax receipts, including penalties, were $1 5.9 million, a modest increase of 8.9% from the previous fiscal year. The Business Tax revenues have come in higher than anticipated. It was anticipated that Business Tax woul d be lower than the prior yea r due to many small and large businesses being closed and other businesses experiencing large reductions to their gross receipts during the pandemic.
Fortunately, the total business license tax (incl. fees and pen alties) was only $0.1 million lower than the previous fiscal year.
On a separate note, Cannabis business tax received was $1.7 mil lion and is $1.4 million higher than the previous fiscal year.
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Utility User Tax
Utility User Tax receipts make up approximately 10.7% of the Ge neral Fund revenue. The City charges Utility User Tax (UUT) on electricity, water, telephone, cable, and natural gas utilities. The current UUT rate is 9% for prepaid wireless and 11% for all other utility c ategories. Economic fluctuations have less impact on UUTs because users still need electricity, natural ga s, water, etc. However, after years of consistent growth, UUT revenues have started to gradually decline over the last five years.
UUT receipts for FY2020/2021 were $13.2 million, a 1.1% decline from the prior fiscal year. Electricity, Gas, Water, and Cable revenues increased slightly, while Teleco mmunication declined.
Telecommunications UUT revenue declined due to land lines being on a sharp decline and an exponential increase in cell phones with competitive cell phone plans. Prep aid wireless telephone services continue to be a growing trend in the industry. Previously, taxation of these services was uneven and difficult to enforce.
In January 2016, legislation took effect to ensure more equal t axation of these services. As wireless users transition to prepaid services, the lesser rate of 9% is applied which impacts overall UUT revenue.
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Transient Occupancy Tax
Transient Occupancy Tax is levie d on occupied hotel/motel rooms at a rate of 14%. FY2020/2021 TOT revenue deteriorated by 51.6% over the prior year due to recomm ended COVID-related travel restrictions for travelers and an acceleration in new COVID-19 cases in Dece mber largely associated with the Delta variant and the emergence of the Omicron variant.
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Property Tax
Culver City is a “low property tax” city and receives only 10.2 5% of the 1.0% property tax rate paid by property owners. Consequently, property taxes only account for about 3.5% to 5% of General Fund revenues, on average. Continued growth in this revenue is antic ipated to continue due to improvements to the City’s assessed valuation, which increased by 10.0% over the prior year.
Property Tax receipts, excluding the amount of property tax inc rement collected in the former Redevelopment Agency project area and the amount of real property tax transfer taxes, ended FY2020/2021 at $5.3 million, a decline of 9.4% over prior fiscal year revenues. The decrease in the property tax revenue was due to the adjustments imposed by the County of Los Angeles . Additionally, the City received $6.5 million in property tax increment of the former Redevelopment A gency. This funding is from additional property tax increment received when the amount of property tax increment collected in the former Redevelopment Agency project a reas exceeds the amount of enforc eable obligations. Going forward, the amount available will vary widely and, therefore, should be treated as one-time funds until the wind-down of the former Agency is substantially complete.
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Total Major Tax Revenues
From the chart below, the corre lation between the economy and t he City’s major tax revenues is evident.
The sharp rise in sales tax revenue in FY2012/2013 is due to the inclusion of one-time increases from State Sales Triple-Flip proceeds, which concluded in FY2015/2016. Uti lity users tax revenue continue to trend downward, in large part due to declines in Telecommunications a nd Cable TV utility users tax revenues from changing technologies. Transient occupancy taxes had demon strated a steady upward trend until FY2018/2019, and then slightly plateaued in FY 2019/2020 due to recommended travel restrictions for travelers during the COVID-19 pandemic.
The City’s sales tax and Measure C/CC receipts increased in FY2020/2021 from on-line general consumer goods and sales tax revenue that were reported through the Stat e and County Pools. Property taxes had experienced with some modest increases in past years; however a s previously discussed the property revenue decreased in FY 2020/2021 du e to adjustment by Los Ange les County. Business taxes increased slightly in FY2020/2021 aided by Cannabis business tax received higher than the prior year.
xviii
General Fund Expenditures
Overall, despite significant increases in expenditures, beyond the City’s control, (i.e. CalPERS pension costs, Unfunded Accrued Liability, and Worker’s Compensation) t he total General Fund operations and maintenance decreased from the prior year, due to the extreme efforts of the City Manager and Department Heads to make significant budget cuts after the pandemic hit in March 2020. Other expense containment measures included elimination of OPEB prefunding, elimination of the equipment and vehicle replacement allocation to the General Fund and canceling of any new General Fund capital projects.
General Fund Reserve Percentage
Perhaps the best measure of the City’s effectiveness in weather ing an economic downturn and building sustained growth for the future is its ability to build a fund reserve. It is a policy of the City to maintain a general operating reserve of, at a minimum, 30% of projected General Fund operating expenditures for each fiscal year (excluding debt service, fund transfers, and encumb ered funds). These reserves are designed to be used in the event of a significant financial emergency, as defined in the City’s financial policies.
The City was able to maintain a relatively healthy reserve due in large part to one-time revenues from major developments occurring within the city, and conservative budgeting practices by City Council and staff. As of June 30, 2021, the City has established committed General Fu nd balances of $39.8 million for contingencies/emergencies, $11.6 million for future facility improvements / replacements and $1.6 million for recreational facility improvements. Beyond these amounts, t he City has an additional $21.9 million in unassigned General Fund balance. Monies in excess of the requir ed reserves are used to fund one-time projects and programs or reduce long-term liabilities, and are most often transferred to the City’s capital improvement fund to fund much needed capital projects.
Long-Term Financial Planning
A General Fund Financial Forecast was developed and is presented in conjunction with the mid-year budget review and is included in the Adopted Budget. The Financial For ecast included in the FY2021/2022 Adopted Budget is a long-term forecast through FY2030/2031 and it projects the possible impact of COVID-19 to the City’s financial position. This is a valuable f inancial management tool, especially in
xix
challenging financial times, to assist the City Council in sett ing priorities and educate the community on the long-term state of the City’s finances.
Over the past several years, the City’s long-term financial pla n has consistently illustrated the mounting fiscal pressures created primarily by increasing costs required to pay down unfunded pension liabilities.
With significant increases in required employer contributions for pension being phased in by the California Public Employee’s Retirement Syst em, the City continues to take a conservative approach towards new spending while concurrently exploring additional revenue opportunities.
Despite the slowdown rising from supply-chain disruptions and an acceleration in new COVID-19 cases in December largely associated with the Delta variant and the emer gence of the Omicron variant, FY2021/2022 is expected to be a year with a continued moderate GDP growth and recovery. The City is well positioned with sufficient General Fund reserves. The pass ing of Measure RE in November 2020 provides additional ongoing revenue.
Awards and Acknowledgements
The Government Finance Officers Association of the United State s and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reportin g to the City of Culver City for its annual comprehensive financial report (A CFR) for the fiscal year ended June 30, 2020. This was the thirty-sixth consecutive year that the City has received this prestigious aw ard. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and e fficiently organized comprehensive annual financial report. This re port must satisfy both generall y accepted accounting principles and applicable legal requirements.
The Certificate of Achievement is valid for a period of one yea r only. We believe that our current annual comprehensive financial report continues to meet the Certificat e of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibili ty for another certificate. This report was made possible by the talented and highly dedicated services of the staff of the Finance Department. Each member of the department has our sincere appreciation for the contribution made in the preparation of this report. This report was only possible through perseverance and teamwork.
In closing, without the leadership and guidance of the City Council, the preparation of this report would not have been possible.
Respectfully,
John Nachbar Onyx Jones
City Manager Chief Financial Officer
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Financial Section
City of Culver City, California
Independent Auditor’s Report
City of Culver City, California
1 INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and Members of the City Council
of the City of Culver City,
Culver City, California
Report on the Financial Statements
We have audited the accompanying financial statements of the go vernmental activities, the business-type activities, each major fund, and the aggregate remaining fund i nformation of the City of Culver City, California (the “City”) as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the City’s basic financ ial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presenta tion of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial st atements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the Un ited States .Those standards requi re that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the aud itors’ judgment, including the assessment of the risks of material misstatement of the financial statemen ts, whether due to fraud or error. In making those risk assessments, the audito r considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design aud it procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
2 Opinions
In our opinion, the financial statements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities, t he business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States o f America require that the Management’s Discussion and Analysis, the Budge tary Comparison Schedules, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedule of Contributions – Pensions, the Schedules of Changes in OPEB Liability and Related Ratios, and the Schedule of Contributions - OPEB on pages 5 to 21 and 116 to 130 be presented to supplement the basi c financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or histori cal context. We have applied c ertain 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 th e methods of preparing the information and comparing the information fo r consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during ou r audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financ ial statements. The Introductor y Section, the Combining and Individual Nonmajor Fund Financial Statemen ts, Budgetary Comparison Schedu les, Internal Services Funds Combining Financial Statements, Agency Fund Combining Financial Statements, and the Statistical Section are presented for purposes of additional analysis and a re not a required part of the basic financial statements.
The Combining Nonmajor Fund Financial Statements, Budgetary Comparison Schedules, Internal Services Funds Combining Financial Statemen ts, and Agency Fund Combining Financial Statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare th e basic financial statements. S uch information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconcili ng such information directly t o the underlying accounting and other records used to prepare the basi c financial statements or to th e basic financial statements themselves, and other additional procedures in accordance with auditing standar ds generally accepted in the United States of America. In our opinion, the Combining Nonmajor Fund Financial Statements, Budgetary Comparison Schedules, Internal Services Funds Combining Financial Statemen ts, and Agency Fund Combining Financial Statements are fairly stated, in all material respect s, in relation to the basic financial statements as a whole.
3 The Introductory and the Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, w e do not express an opi nion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated January 28, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is so lely to describe the scope of o ur testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on c ompliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Glendale, California
January 28, 2022
4 This page intentionally left blank.
Management’s Discussion & Analysis
City of Culver City, California
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
5 As management of the City of Culver City (City), we offer readers of the City’s basic financial statements this overview and analysis of the financial activities of the C ity for the year ended June 30, 2021. We encourage readers to consider t he information presented here in conjunction with additional information that we have furnished in our transmittal letter, which is found on pages v-xviii of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.
FINANCIAL HIGHLIGHTS
The City’s government-wide assets and deferred outflows of reso urces exceeded its liabilities and deferred inflows at the close of the 2020-21 fiscal year by $15 9.3 million ( net position ). Of this amount, $264.0 million is net investment in capital assets, $10 4.1 million is restricted and ($208.7) million is unrestricted deficit. The City’s unrestricted net po sition was negatively impacted with the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial Reporting fo r Postemployment Benefits Other Than Pensions, which required the City to reco rd its unfunded pension liabil ities for pension plans and other postemployment benefits (OPEB) in which it participates. More information on the City’s pension and OPEB plans can be found in Notes 10 and 11 on pages 92 – 106 of this report.
The City’s total net position, including all activities, increased by $18.0 million in the 2020-21 fiscal year. Of the $18.0 million increase, $12.4 million increase was from governmental activities and $5.6 million was from business-type activities.
As of June 30, 2021, the City’s governmental funds reported com bined ending fund balances of $190.0 million. Approximately 6.8% of the current year amount o r $12.9 million is unassigned and available fund balance.
At the end of the 2020-21 fiscal year, unrestricted fund balance (the total of committed, assigned and unassigned components of fund balance) for the General Fund was $80.2 million, or approximately
67.3% of total General Fund expenditures of $119.2 million. Add itional information on the City’s General Fund balances is in Note 14.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s basic financial statements are comprised of three co mponents: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the B asic Financial Statements. Each of these sections is discussed below. This report also contains other re quired and supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to present financial information about the City as a whole in a manner similar to the private sector, incl uding the use of accrual-based accounting to recognize its revenues and expenses. Governmental activities, w hich are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely primarily on user fees and charges to fund their operations. Governmental activities include those traditionally associated City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
6 with local government, such as public safety (fire and police), community development, public works, parks and recreation, and general government (administrative) functions.
Business-type activities include the City’s Refuse Disposal, utility operations (Sanitation and Wastewater), Municipal Bus Lines and Municipal Fiber Network.
The Statement of Net Position presents information on all the City’s assets, including capita l assets, deferred outflows of resources, all related current liabilities and long-term obligations, and deferred inflows or resources. The difference between total assets and deferred outflows of resources and total liabilities and deferred inflows of resources is presented as net position, which serves as a measure of the financial health of the City. Over time, an increase in net position generally indicates that the financial health of the City is improving.
The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year . Decreases in net position a re presented as “Expenses”; increases in net position are presented as “Revenues”. Revenues directly attributable to a particular function within the City are presented as “Program Revenu es”. Tax revenues, including th ose restricted to a particular program function, are reported as “General Revenues” unless specificall y required to be reported as program revenues (i.e. gas and transportation taxes).
All changes in net position are reported as soon as the underly ing 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 result in cash flows in future fiscal periods (such as, revenues pertaining to uncollected taxes, or expenses pertaining to earned, but unused, vacation and sick leave).
The government-wide financial statements include not only the C ity of Culver City, California (known as the primary government), but also three legally separate compon ent units: The Parking Authority, the Housing Authority, and the Public Financing Authority. The gove rning board of each of these entities is comprised entirely of members of the City Council, and their fi nancial activity has been included as an integral part of the primary government. The Successor Agency is reported as a Private Purpose Trust Fund in the Fiduciary Fund statements.
The government-wide financial statements are located on pages 26-29 of this report.
Fund Financial Statements
The City, like other state and local governments, uses fund accounting for recording its financial activities.
In general, fund accounting provid es a mechanism to separately account for a variety of different funding sources and enables the City to demonstrate compliance with leg al and/or contractual requirements that may be associated with these funds. Thus, the accompanying fund financial statements present individual funds organized into one of three categories: Governmental, Pro prietary, and Fiduciary Funds. Note that the fund financial statements only present information on the m ost significant (i.e. “major”) funds on the face of the statements. Nonmajor funds are grouped and presented in total on the face of the statements. In addition, the fund financial statements include a schedule that reconciles the fund financial statements to the government-wide financial st atements. This is designed to e xplain the differences created by the integrated approach to ensure and demonstrate compliance with finance-related legal requirements.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
7 Governmental funds - Most of the City’s basic services are reported in governmental funds. Governmental funds include the General Fund, Special Revenue Funds and Capit al Projects Funds. In the fund financial statements, all governmental fund types are reported using the modified accrual basis of accounting, whereby revenues are generally recognized when measurable and a vailable to finance current operating costs, and expenditures are recognized when the related liabili ty is incurred. In addition, the focus is on inflow (revenues) and outflow (expenditures) of the current per iod. As such, the balance sheets of governmental funds are intended to present only short-term assets and liabilities.
The fund financial statements include separate columns, by fund type, for all “major” governmental funds of the City. All “nonmajor” governmental funds are consolidated into a single column labeled “total nonmajor funds.” The details of these funds are included in the Combining and Individual Fund Statements and schedules located in the supplementary information section of this report on pages 133-172.
Since the focus of governmental funds is narrower than that of 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 this com parison, readers may better understand the long-te rm impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund state ment of revenues, expenditures, and changes in fund balances, provide a reconciliation to facilitate this comparison between governmental funds and governmental activities . The City adopts an annual appropriated budget for its funds. A budgetary comparison is provided for all of the City’s Governmental Funds to demonstrate compliance with this budget.
Proprietary funds – Proprietary funds are used to account for services provided to external customers or other City departments and funds that are primarily funded from user fees and charges. Proprietary funds use the accrual basis of accounti ng and measure the balance and change in economic resources .
Accordingly, statement of net position of proprietary funds inc ludes all assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including long-term receivables, capital assets, and long-term liabilities. The basis of accounting and measurement focus used to prepare proprietary fund statements is the same that is used to prepare the government-w ide statements. Thus, proprietary fund statements provide the same, but more detailed, information abo ut these funds, which are included in the “Business-Type Activity” column of the government-wide statements.
The City maintains two different types of proprietary funds: Enterprise and Internal Service.
Enterprise funds are used to report the same functions presented as business-typ e activities in the government-wide financial statements. The City uses enterpr ise funds to account for its Refuse Disposal, Municipal Bus Lines, Sewer Enterprise, and Municipal Fiber Network Funds, all of which are considered major funds.
Internal Service funds are used by the City to account for its intra-city services: eq uipment replacement, equipment maintenance, risk management, and central stores.
In the prior years, because internal service funds predominantl y benefit governmental rather than business-
type functions, they were included within governmental activities in the government-wide financial statements. In FY2020-21, the beginning net position for the go vernmental activities and business type activities were restated due to the internal service fund alloc ation (Note 17). Internal service funds are combined into a single, aggregated presentation in the propriet ary funds financial statements. Individual City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
8 fund data for the internal service funds is provided in the form of combining statements in the supplementary information section.
Fiduciary funds are used to account for resources held by the City as trustee o n behalf of other agencies or individuals. Fiduciary funds are not presented in the accompanying government-wide financial statements since the resources of those funds are not available to support the City’s programs. The basis of accounting used for the fiduciary funds is similar to what is u sed for the proprietary funds. The fiduciary funds financial statements are in the basic financial statements section of this report.
The City uses private-purpose trust funds to account for the activities of the Successor Agency to the Culver City Redevelopment Agency and the Revitalization Corporation. A dditionally, one small agency fund is maintained to account for assets and liabilities where the City serves as custodian.
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 provide d in the government-wide and f und financial statements and are located on pages 63 through 114.
Other Information
In addition to the basic financ ial statements and accompanying notes, this report also presents certain required supplementary information concerning budgetary comparison schedules for the General Fund and major special revenue funds in the Required Supplementary Infor mation section of this report and are located on pages 128 through 129.
The combining statements, referred to earlier in connection wit h non-major governmental funds, internal service funds, and fiduciary funds are presented following the required supplementary information on pensions.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Position
As noted earlier, net position may serve as a useful indicator of a government’s financial position over time.
As shown in the table below, the City’s assets and deferred out flows of resources exceeded liabilities and deferred inflows of resources by $159.3 million at June 30, 2021.
Approximately 165.7% of the City’s net position is attributable to its investment in capital assets (e.g., land, buildings, infrastructure, machinery, and equipment), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens and consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay thi s debt must be provided from other sources, since capital assets alone may not be used to liquidate these liabilities.
Approximately 65.3% of the City’s net position is subject to re strictions imposed by external parties, and their use is determined by those restrictions and contractual a greements. The remaining amount may be used by the City to meet ongoing operations, subject to applica ble federal and state laws and regulations.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
9 The significant liabilities recorded for pensions and OPEB with the implementation of GASB 68 and 75 resulted in a negative unrestricted net position of the City of ($208.7) million.
2021 2020 2021 2020 2021 2020
Assets:
Current and other assets $ 230,400 $ 224,023 $ 30,201 $3 5 , 3 7 3 $2 6 0 , 6 0 1 $2 5 9 , 3 9 6 Capital assets 187,933 175,115 98,539 91,502 286,472 266,617 Total assets 418,333 399,138 128,740 126,875 547,073 526,013 Deferred Outflows of Resources :
Pension and OPEB-related amounts 30,632 33,471 4,961 5,278 35,593 38,749 Total deferred outflows of resources 30,632 33,471 4,961 5,278 35,593 38,749 Liabilities:
Current and other liabilities 25,571 26,337 8,294 11,188 33,865 37,525 Long-term liabilities 295,506 291,322 65,312 66,479 360,818 357,801 321,077 317,659 73,606 77,667 394,683 395,326 Deferred Inflows of Resources :
Pension and OPEB-related amounts 24,800 24,302 3,845 3,791 28,645 28,093 Total deferred inflows of res ources 24,800 24,302 3,845 3,791 28,645 28,093 Net Position:
Net investment in capital assets 187,809 174,822 76,208 74,664 264,017 249,486 Restricted 104,054 79,921 - 14 104,054 79,935 Unrestricted (188,775) (164,095) (19,958) (23,983) (208,733) (188,078) Total net position $ 103,088 $9 0 , 6 4 8 $ 56,250 $5 0 , 6 9 5 $1 5 9 , 3 3 8 $1 4 1 , 3 4 3 Statement of Net Position
TotalBusiness-Type AcrivitiesGovernmental Activities
(In Thousands)
As of June 30, 2021 and 2020
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
10 Statement of Activities
As discussed earlier, the Statement of Net Position provides a measure of the financial health of an entity at a specific date in time (i.e. year-end). In contrast, the Statement of Activities provides details of how net position changed from the prior fiscal year. For the fiscal ye ar ended June 30, 2021, total net position increased by $18.0 million.
The following table summarizes the Statement of Activities for Governmental Activities and Business- Type Activities for the fiscal year ended June 30, 2021, with c omparative totals for the fiscal year ended June 30, 2020.
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services $ 23,263 $ 31,669 $ 29,776 $ 30,317 $ 53,039 $ 61,986 Operating grants and contributions 19,916 7,631 27,188 22,144 47,104 29,775 Capital grants and contributions 11,631 4,065 2,218 5,665 13,849 9,730 General revenues:
Taxes 93,040 86,389 - - 93,040 86,389 Investment earnings 3,940 3,733 5 975 3,945 4,708 Other 630 6,014 - 120 630 6,134 Total revenues 152,420 139,501 59,187 59,221 211,607 198,722 Expenses: - -
General government 26,650 18,343 - - 26,650 18,343 Parks, recreation and community services 8,990 9,442 - - 8,990 9,442 Police 44,929 49,821 - - 44,929 49,821 Fire 26,963 27,389 - - 26,963 27,389 Community development 15,711 16,239 - - 15,711 16,239 Public works 15,459 16,024 - - 15,459 16,024 Transportation 248 227 - - 248 227 Capital outlay 38 - - - 38 - Refuse disposal - - 15,437 17,502 15,437 17,502 Municipal bus lines - - 27,442 34,013 27,442 34,013 Sewer enterprise - - 8,719 9,276 8,719 9,276 Municipal fiber network - - 2,102 3,227 2,102 3,227 Internal service fund allocation to BTA - - 924 - 924 - Total expenses 138,988 137,485 54,624 64,018 193,612 201,503 Excess (deficiency) before transfers 13,432 2,016 4,563 (4,797) 17,995 (2,781) Transfers (992) (1,169) 992 1,169 - - Change in net position 12,440 847 5,555 (3,628) 17,995 (2,781) Net position - beginning of year 90,648 89,801 50,695 54,323 141,343 144,124 Net position - end of year $ 103,088 $ 90,648 $ 56,250 $ 50,695 $ 159,338 $ 141,343 Governmental Activities Business-Type Acrivities Total
Statement of Activities
Years ended June 30, 2021 and 2020
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
11 Governmental Activities
The City’s net position from governmental activities increased approximately $12.4 million accounting for
69.1% of the total increase in the net position of the City. Ke y elements of this increase are a combination of factors highlighted below.
Revenue Highlights
Total revenues of governmental activities were $152.3 million. The largest component of total revenue is taxes at $93.0 million, making up 61.1% of total revenues. This is consistent with the nature and purpose of governmental funds, particularly in the General Fund, where programs are largely supported by general taxes. The highest tax revenues received by the General Fund in clude sales tax ($37.8 million), business tax ($15.9 million), property tax ($20.4 million), utility user s tax ($13.2 million), and transient occupancy tax ($3.1 million). Some of the key changes in revenues are:
Capital and Operating Grants and Contributions increased by $19 .8 million, primarily due to increase in reimbursable capital and operating grant expenditures in FY2020-21, and the receipt of the American Rescue Plan Act (ARPA) funds of $4.69 million during the fiscal year.
While sales tax revenues were impacted by COVID, the City’s sales tax and Measure C/CC receipts increased by $4.2 million in FY2020/ 2021 from on-line general c onsumer goods and sales tax revenue, as reported through the State and County Pools.
Total Property tax increased by $6.0 million, aided by $2.1 mil lion of tax increment of the Redevelopment Agency and $4.5 million of real property transfer taxes received in FY2020/2021.
The governmental activities’ chart below illustrates operating revenues by source. Sales, business, property, utility users, transient occupancy, and other taxes are general revenues used to support overall government functions. These sources account for approximately $93.0 million or 61.1% of total governmental revenue.
Operating and capital grants make up 20.7% of revenues while ch arges for services amount to 15.3% of total governmental revenues.
Charges for
services
15% Operating grants
and contributions
13%
Capital grants and
contributions
8%
Taxes
61%
Investment
earnings
3%
Other
0%
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
12 Expense Highlights
Functional expenses for the year totaled approximately $138.8 m illion in the governmental funds, an increase of $1.4 million over the prior year due to increase of $8.3 million for General Government expenses offset by decreases in Public Safety ($5.3 million), Community development ($0.7 million) and Public Works ($0.6 million). Public Safety activities consumed approxi mately $71.9 million (51.8%) of the total expenses in the governmental activ ities. Almost all public safe ty costs are funded from general revenues, primarily taxes. Expenses for Public Works totaled $15.4 million, Community Development $15.6 million, and Parks, Recreation and Community services $9.0 million, and Transit $0.2 million. General Government Expenses (including City Council, City Manager, City Clerk, Inf ormation Technology, Finance, Human Resources and City Attorney) and Interest and Other Charges, consumed a total of $26.7 million (19.2%).
Business-Type Activities
The City’s business-type activities reported a $5.6 million inc rease in net position, largely resulting from lower expenses and additional gr ants received funding the City' s transit operations. The Transportation Department received in FY2020/2 021 $6.25 million of CARES (Coro navirus Aid, Relief and Economic Security) funds and $6.0 million of CRRSA (Coronavirus Response and Relief Supplemental Appropriations) funds.
The City’s Municipal Bus Lines is the largest business-type ope ration, with operating and capital contributions and grants from federal and county sources mainly funding its operations, in addition to fare revenues. Refuse Disposal is se cond largest, followed by Sewer Enterprise, with fees for services mainly funding the two utilities.
In November 2015, the City Council approved a new Municipal Fib er Network enterprise fund. Funding for this project was appropriated through a loan from the Gener al Fund to design and construct an open access network where Internet Service Providers (ISPs) will utilize the City’s fiber infrastructure to service General government
19%
Parks, recreation and
community services
7%
Police
32%
Fire
20%
Community
development
11%
Public works
11%
Transportation
0%
Capital outlay
0%
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
13 the business community. At the end of the 2020/2021 fiscal year , net position increased by $0.5 million.
The construction for Municipal Fiber Network was completed for the Municipal Fiber Network (Culver Connect) backbone in FY2019/2020 an d construction was initiated for network laterals in FY2020/2021.
The fund began generating revenues in FY2018/2019.
The chart on the next page shows a comparison of program revenues to expenses and to the prior fiscal year for each of the City’s business-type activities.
Revenue Highlights
Total program revenues as of June 30, 2021, were $59.1 million which increased by $1.0 million from the prior fiscal year. The change is primarily attributed to $2.4 m illion increase in Municipal Fiber Network revenues during the year, offset by $1.1 million decrease in fa re revenues reported in Municipal Bus Line resulting from COVID-19.
Expense Highlights
Municipal Bus Line expenses decreased by $6.4 million, or 18.8%, and Refuse Disposal expenses decreased by $2.2 million, largely resulting from reduced personnel costs.
Business-type Activities
Expenses and Program Revenues
For the Fiscal Years Ended June 30, 2021 and 2020
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Municipal Bus
Lines
Refuse Disposal Sewer Ent erprise Municipal Fiber
Network
2021 Expenses
2021 Revenues
2020 Expenses
2020 Revenues
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
14 GOVERNMENT FUNDS FINANCIAL ANALYSIS
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 inform ation on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.
In particular, unassigned fund balance may serve as a useful me asure of a government’s net resources available for spending at the end of the fiscal year.
At June 30, 2021, the City’s governmental funds reported a combined ending fund balance of $190 million, a decrease of $0.2 million in comparison with the prior year. Increased revenues of $10 million ($6.7 million in taxes, ($4) million in licenses and permits, ($0.9) million in fines and forfeitures, $12.2 million in intergovernmental, ($1.6) million in charges for services, and ($2.2) million in investment and ($0.2) miscellaneous) were offset by a $15.9 million increase in expenditures: $2.2 million in general government and $12.7 million in capital ou tlay, $1.9 million in police and fire, ($0.8) million in parks and recreation services, ($0.01) million in public works, ($0.01) million in t ransportation, and ($0.01) million in community development) as compar ed to the prior fiscal year. Of the total $190.0 million fund balance, $14.8 million was non-spendable, $80.5 million was restricted, $76.6 million was committed, $5.2 million was assigned, and $12.9 million was unassigned.
The following is a summary of significant changes to fund balance in the major governmental funds.
General Fund
The General Fund is the City’s chief operating fund. It showed an increase of $6.4 million in fund balance for the 2020/2021 fiscal year, primarily due to the $4.69 million in ARPA funds received in FY2020/2021.
As per Note 14, $5.2 million of the total increase has been ass igned for contracts and purchase orders of committed projects in the General Fund. There is $108.8 million total in fund balance as of June 30, 2021.
Culver City Housing Authority Fund
With the dissolution of the Redevelopment Agency, the Culver City Housing Authority was formed to serve as the Successor Housing entity. A ll former Low/Moderate Income Housing assets and liabilities were transferred to the Housing Authority. During the 2020/2021 fisc al year, project expenditures outpaced revenues and transfers by $2.0 million for this fund, largely d ue to increased expenditures to provide assistance for the homeless.
Capital Improvement and Acquisition
This fund is used to account for former capital projects that a re not otherwise funded by a special revenue fund or other specifically identified source of funding. The General Fund is the main contributor to projects in this fund. Project expenditures outpaced revenues and transf ers by $1.2 million for this fund, partially due to increased expenditures for street realignment and improvements, and to replace sidewalks.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
15 Capital Improvement Grants
This fund is used to account for grant funds awards to the City by federal, state, a nd local grant agencies for capital improvements, and th e qualified expenditures of tho se restricted funds. Project expenditures outpaced revenues and transfers by $4.5 million. This deficit will be eliminated after grant reimbursements are received in the subsequent years. For example, $5.1 million was spent in FY2020/2021 for Culver Blvd Infiltration Project, of which $4.8 million reimbursements were received in FY2021/2022.
Proprietary Funds
Unlike governmental funds, proprietary funds use the accrual ba sis of accounting for financial statement purposes. Accordingly, information reported for the individual fund statements is very similar to that presented as Business-Type Activities in the government-wide st atements. Government-wide reporting requires the inclusion of activities of the City’s internal ser vice funds related to proprietary fund activities in the Business-Type Activities. Therefore, the following analy sis is very similar to that presented for Business-Type Activities.
The net position of the Refuse Disposal, Municipal Bus Lines, S ewer Enterprise and Municipal Fiber Network funds were ($5.2) million, $22.7 million, $48.2, and ($5.7) million respectively. Total net position of these funds increased by $6. 5 million during the year ended June 30, 2021, largely due to the $6.25 million of Coronavirus Aid, Relief and Economic Security (CARES ) and 6.0 million of Coronavirus Response and Relief Supplementa l Appropriations (CRRSA) funds r eceived by the Transportation Department. Within this total, Refuse Disposal, Municipal Bus L ines, Sewer Enterprise and Municipal Fiber Network funds’ net position increased by $0.7 million, $3 .9 million, $1.4 million and $0.5 million, respectively during FY2020/2021.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
16 GENERAL FUND BUDGETARY HIGHLIGHTS
The General Fund is the main operating fund of the City. Its revenues are primarily derived from taxes and charges for services, which are used to pay for the traditional services provided by local government - public safety, parks and recreation, community development (building and planning), and public works.
Revenues
The amended General Fund revenue budget for the 2020/2021 fisca l year reflects amendments that were approved by the City Council during the year. The most significant amendments included increases to taxes and investment earnings.
As shown on the table above, actual revenues totaled $126.2 mil lion, exceeding the amended budget by $23.3 million. Taxes, fines and forfeitures, intergovernmental and investment earnings exceeded the amended budget while licenses and permits fell below the amende d budget by $0.7 million. Investment earnings exceeded the amended budget by $1.7 million. This was primarily due to the investment earnings and gains on the tax-exempt Secti on 115 Trust and general inves tment portfolio, and interest income and investment earnings on the Fiber Network working capital loan.
Actual Variance from
Original Final Amounts Final Budget
Revenues:
Taxes $ 65,890 $ 76,699 $ 93,040 $ 16,341 Licenses and permits 6,143 3,925 3,266 (659) Fines and forfeitures 4,152 2,303 3,563 1,260 Intergovernmental 5,917 6,099 11,390 5,291 Charges for services 10,831 8,671 8,693 22 Investment earnings 1,389 1,384 3,091 1,707 Miscellaneous 391 677 411 (266) Total revenues 94,713 99,758 123,454 23,696 Other Financing Sources:
Transfers in 3,142 3,142 2,717 (425) Proceeds from sale of property - - - - Total other financing 3,142 3,142 2,717 (425) Total Revenues $ 97,855 $ 102,900 $ 126,171 $ 23,271 Budgeted Am ounts
SUMMARY OF GENERAL FUND REVENUES
BUDGET AND ACTUAL
Year Ended June 30 2021
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
17 Expenditures
The amended General Fund expenditure budget for the 2020/2021 fiscal year reflects amendments approved by the City Council during the year. The amended budget also reflects appropriations carried over from the prior year related to outstanding encumbrances as of June 30, 2021.
Since the COVID pandemic hit in March 2020, the City Manager ha s directed all Departments to make significant budget cuts including elimination of OPEB prefunding, the equipment and vehicle replacement allocation to the General Fund, and canceling of any new General Fund capital projects.
Despite significant increases in expenditures beyond the City’s control such as the CalPERS Unfunded Accrued Liability (UAL), there was a total $3.7 million in total budget savings.
Actual Variance from
Original Final Amounts Final Budget
Expenditures:
General government $ 18,786 $ 16,236 $ 18,706 $ (2,470) Parks, recreation and community services 9,481 9,339 8,269 1,070 Police 44,510 45,865 44,079 1,786 Fire 24,969 25,909 25,967 (58) Community development 8,209 11,463 8,969 2,494 Public works 12,350 13,814 12,891 923 Capital outlay 117 117 281 (164) Total expenditures 118,422 122,743 119,162 3,581 Other Financing (Uses):
Transfers out (686) (730) (619) (111) Total other financing sources (uses) (686) (730) (619) (111) Total Expenditures $ (119,108) $ (123,473) $ ( 119,781) $ 3,692 Budgeted Amounts
SUMMARY OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
Year Ended June 30 2021
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
18 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City owns hundreds of millions of dollars’ worth of capital assets that require ongoing maintenance, improvement and renovation. As a result, the City undertakes mi llions of dollars in capital improvement and construction projects each year.
The capital improvement projects undertaken in those operations in the Governmental Activities category typically include improvements to the City’s infrastructure (roads, curbs, storm drains, bridges, sidewalks, gutters, etc.) and improvements to City public facilities, such as parks, restrooms, community facilities, and playgrounds. Starting in 2004, governmental funds have been required to capitalize and report the costs of acquiring or constructing infrastructure assets acquired or con structed after 1982. Where information was readily available, or if a value could be reasonably estimated, the City capitalized infrastructure assets acquired or constructed prior to 1982.
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounts to $286.5 million (net of accumulated depreciation). Th is investment in capital assets includes land, buildings and related systems, improvements, machinery an d equipment, park facilities, roads, highways, and bridges.
Capital asset additions included vehicle replacements, street r epair and replacement, and sewer system improvements in the current year. Depreciation expenses in the Governmental and Business-Type activities totaled $7.7 million and $5.8 million, respectively.
Additional information is available in Note 6 of the Notes to the Basic Financial Statements.
2021 2020 2021 2020 2021 2020
Land $ 21,539 $ 21,539 $ 3,083 $ 3,083 $ 24,622 $ 24,622 Buildings 40,905 42,364 14,109 14,669 55,014 57,033 Improvements 15,264 14,758 4,924 5,142 20,188 19,900 Machinery and equipment 13,377 14,899 18,730 19,668 32,107 34,567 Furniture and fixtures - - 13 19 13 19 Infrastracture 52,831 54,313 33,029 27,895 85,860 82,208 Investment in Hyperion - - 8,012 8,676 8,012 8,676 Construction in progress 44,017 27,242 16,639 12,350 60,656 39,592 Total $ 187,933 $ 175,115 $ 98,539 $ 91,502 $ 286,472 $ 266,617 Governmental Activities Business-Type Acrivities Total
Summary of Capital Assets (Net)
June 30 2021
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
19 Long-Term Obligations
At the end of the 2020/2021 fiscal year, the City had total net long-term outstanding obligations of $52.8 million, an increase of $1.0 million over the prior fiscal year . In October 2019, the City was successful in refinancing the 2009 Wastewater Facilities Revenue Bonds, acqui ring an additional $12 million in new bond proceeds and lowering the annual debt service payment. The $12 million in bonds proceeds was fully spent in FY2020/2021 to fund a Sewer Pipeline Diversion project , the Bankfield Pump Station improvements and other miscellaneous capital improvement projects.
Additional information is available in Note 7 of the Notes to the Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economy
Nationally, reports continued to demonstrate signs of continued modest economic growth. The U.S. GDP growth forecast, per S&P Global, is lowered to 5.5% for 2021 an d 3.9% for 2022 (from 5.7% and 4.1%, respectively) due to persistent inflation, disruptions associated with Delta and Omicron Covid-19 variants, concerns related to supply chains, product shortages and labor issues.
The largest single relief package in U.S. history, The Coronavirus Aid, Relief, and Economic Security Act (CARES) of appropriated $2.3 tr illion was signed into law on Ma rch 27, 2020, to provide aid during the pandemic. The Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) of 2021 was signed into law on December 27, 2020. The Transportation Department of the City received $6.25 million of CARES funds and $6.0 million CRRSA funds in FY2020-21.
Also, Congress signed the $1.9 trillion American Rescue Plan Act (ARPA) Act of 2021 on March 11, 2021.
The City received $4.69 million of the ARPA funds during FY2020 -2021 and is expected to receive the second tranche of $4.69 million in FY2021-2022.
During FY2020-21, The City adopted a new administrative Mandatory Vaccination Policy which requires all City employees as well as volunteers, interns and certain contractors be fully vaccinated against COVID- 19 to reduce likelihood of hospitalization, intensive care unit admissions, and deaths in the County.
The political climate continues to pose uncertainty on the nati onal economic outlook due in part to contentious federal trade policies, concerns related to record- high consumer prices which may extend into the next year or two, and disruptions due to the Delta and Omic ron variants of COVID-19. City staff will be cautiously monitoring critical political decisions and their effect on national, state and local economies. 2021 2020 2021 2020 2021 2020
Compensated absences payable $ 12,378 $ 13,058 $ 1,500 $ 1,718 $ 13,878 $ 14,776 Claims and judgments 16,560 14,216 - - 16,560 14,216 Wastewater Facilities Revenue Bonds,
2019 Series A - - 18,935 19,360 18,935 19,360 Bond premium - - 3,396 3,515 3,396 3,515 Total $ 28,938 $ 27,274 $ 23,831 $ 24,593 $ 52,769 $ 51,867 Governmental Activities Business-Type Acrivities Total
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
20 Budget Outlook
Culver City prides itself on the outstanding quality of service s it provides to the community and has taken all efforts to preserve services during these economically chal lenging times. Over the course of the past several years, numerous positions in the General Fund have been eliminated. This was accomplished without layoffs by eliminati ng position vacated through regular turnover or retirement incentives. Active and retiree health benefits were reduced and converted to defined benefit.
The City’s financial forecast currently shows operating deficit s when factoring in necessary funding for rising pension costs, appropriately pre-funding retiree healthcare costs and including the estimated financial impact of COVID-19 and an acceleration in new COVID-19 cases from the Delta and the Omicron variants.
The City has been proactive in its response to these challenging economic conditions and has successfully implemented four revenue measures over the years. First, there was a 2% increase to the Transient Occupancy Tax (Measure X) which was approved by voters on April 10, 2012. The approval of this measure increased this tax rate from 12% to 14%, resulting in approxima tely $1.0 million in additional revenue.
Second, a one-half cent local sales tax (Measure Y) was approved on November 6, 2012, becoming effective on April 1, 2013. This tax was extended by the voters for another ten years, until 2033 as Measure CC. An additional quarter-cent sales tax (Measure C) was approved on N ovember 6, 2018, which went into effect beginning April 1, 2019. Most recently, in November 2020, the v oters passed Measure RE. Measure RE establishes a marginal tax rate with four brackets, based on sa les price or value, for the City’s real estate transfer tax, effective April 1, 2021. This marginal tax will a dd 1.5% on amounts from $1,500,000 to $2,999,999, 3% on amounts from $3,000,000 to $9,999,999, and 4% on amounts $10 million and above.
Measure RE would not apply to sales under $1.5 million, affordable housing, and first transfer of new multi- family properties. It is anticipated that this tax will provide the City with an additional $6 million or more in annual revenue.
Despite the City’s sound management and disciplined control of its financial health, the City’s ability to sustain local services is seriously threatened by rising pensio n costs. Increasing retirement and pension costs related to rates charged by CalPERS have a significant im pact on the General Fund’s increasing expenditures as PERS costs are expected to rise from $25 millio n in FY2020-2021 to $44 million in FY2029-2030, which is an increase of 76%. In addition, there ar e additional budget needs that have not been included in the financial forecast which include increased maintenance and capital improvement projects for City infrastructure (streets, roads, pavements, tr affic safety projects, city buildings, etc.) and capital and maintenance expenditu res to support updating networ k infrastructure, cloud-based software deployments and replacement of end- of-life hardware which are c ritical to supporting secure and reliable operations.
In addition to these fiscal difficulties, the City seeks to continue to provide the same level of essential City services for the benefit of its residents, which services inclu de police, fire, street maintenance, traffic improvements, emergency preparedness, maintenance of parks and recreation areas, all of which are deemed very important by an overw helming majority of City resid ents, as indicated by a recent survey.
Despite the emerging Omicron variant of COVID-19 and concerns r elated to supply chains and product shortages, FY2021/2022 is expected to be a year with continued m o d e r a t e G D P g r o w t h . T h e C i t y i s currently well positioned with su fficient General Fund reserves , and the passing of Measure RE in November 2020 strengthens that position.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
21 Remaining financially sustainable will continue to be a responsibility of City leadership. Living within our means; maintaining healthy reserves; safeguarding our current quality of life and standard of living without sacrificing the future; creating a healthier and “greener” econ omy; prudently investing in long-term facilities and assets; partnering with our community to work to gether toward common goals; and making wise decisions despite political pressures to defer or deny the m – all these are vital to working toward “sustainable prosperity” for Culver City.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Culver City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information contained herein should be addressed to the Finance Department, at financ [email protected] or 9770 Culver Blvd., Culver City, CA 90232, (310) 253-5865.
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GOVERNMENT -WIDE FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
23 BASIC FINANCIAL STATEMENTS
24 This page intentionally left blank.
25 GOVERNMENT-WIDE
FINANCIAL STATEMENTS
26 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 132,147,780 $ 40,865,277 $ 173,013,057 $ Accounts receivables, net 3,554,864 1,630,233 5,185,097 Interest receivables 4,677,802 106,901 4,784,703 Internal balances 21,047,722 (21,047,722) - Due from other governments 27,361,523 8,645,241 36,006,764 Inventories 757,768 - 757,768 Due from Successor Agency 7,982,045 - 7,982,045 Total current assets 197,529,504 30,199,930 227,729,434 Noncurrent assets:
Cash and investments held with fiscal agents - 1 1 Restricted investments held by Pension Trust 13,875,468 - 13,875,468 Notes receivables, net 18,995,658 1,195 18,996,853 Capital assets:
Not being depreciated 65,556,045 19,722,004 85,278,049 Being depreciated, net 122,377,052 78,817,036 201,194,088 Total noncurrent assets 220,804,223 98,540,236 319,344,459 Total assets 418,333,727 128,740,166 547,073,893
DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 28,551,373 4,651,719 33,203,092 Other postemployment benefits related amounts 2,080,734 309,266 2,390,000 Total deferred outflows of resources 30,632,107 4,960,985 35,593,092 (Continued)
Primary Government
City of Culver City
Statement of Net Position
June 30, 2021
27 Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 4,572,298 $ 2,788,288 $ 7,360,586 $ Salaries and benefits payable 2,446,906 662,756 3,109,662 Interest payable - 283,267 283,267 Deposits payable 10,724,051 384,970 11,109,021 Retention payable 124,432 - 124,432 Due to other government 38,820 - 38,820 Unearned revenues 759,324 2,506,618 3,265,942 Compensated absences, due within one year 2,961,299 928,262 3,889,561 Claims payable, due within one year 3,944,154 - 3,944,154 Revenue bonds payable, due within one year - 740,000 740,000 Total current liabilities 25,571,284 8,294,161 33,865,445 Noncurrent liabilities:
Compensated absences, due in more than one year 9,416,558 572,067 9,988,625 Claims payable, due in more than one year 12,615,835 - 12,615,835 Revenue bonds payable, due in more than one year - 21,590,677 21,590,677 Net pension liabilities 226,288,853 36,135,859 262,424,712 Net other postemployment benefits related liabilities 47,185,07 8 7,013,266 54,198,344 Total noncurrent liabilities 295,506,324 65,311,869 360,818,193 Total liabilities 321,077,608 73,606,030 394,683,638
DEFERRED INFLOWS OF RESOURCES
Pension related amounts 828,430 282,232 1,110,662 Other postemployment benefits related amounts 23,971,838 3,563,009 27,534,847 Total deferred inflows of resources 24,800,268 3,845,241 28,645,509
NET POSITION
Net investment in capital assets 187,808,665 76,208,363 264,017,028 Restricted for:
Road construction 8,132,492 - 8,132,492 Housing authority 40,328,688 - 40,328,688 Public safety 1,088,953 - 1,088,953 Public works and capital projects 35,698,869 - 35,698,869 Debt service - 1 1 Community development 4,929,427 - 4,929,427 Pension trust 13,875,468 - 13,875,468 Total restricted 104,053,897 1 104,053,898 Unrestricted (deficit) (188,774,604) (19,958,484) (208,733,088) Total net position 103,087,958$ 56,249,880 $ 159,337,838 $ (Concluded)
Statement of Net Position (Continued)
June 30, 2021
Primary Government
City of Culver City
28 Charges Operating Capital Total
for Grants and Grants and Program
Functions/Programs: Expenses Services Contributions Contributions Revenues Primary government:
Governmental activities:
General government 26,649,962$ 1,758,493 $ 5,061,680 $ - $ 6,820,173$ Parks, recreation and community services 8,990,167 1,765,446 33,247 - 1,798,693 Police 44,928,502 3,757,843 550,106 - 4,307,949 Fire 26,962,832 4,107,120 479,606 - 4,586,726 Community development 15,711,383 6,911,883 1,734,790 64,419 8,711,092 Public works 15,459,474 4,962,272 3,968,875 11,567,154 20,498,301 Transportation 247,806 - 2,000,887 - 2,000,887 Capital outlay 38,053 - - - - Total governmental activities 138,988,179 23,263,057 13,829,191 11,631,573 48,723,821 Business-type activities:
Refuse disposal 15,436,971 16,027,123 120,875 - 16,147,998 Municipal bus lines 27,441,047 1,024,500 27,067,118 2,218,360 30,309,978 Sewer enterprise 8,719,314 10,111,096 199 - 10,111,295 Municipal fiber network 2,102,185 2,612,865 - - 2,612,865 Internal service fund allocated to
business-type activities 924,172 - - - - Total business-type activities 54,623,689 29,775,584 27,188,192 2,218,360 59,182,136 Total primary government 193,611,868$ 53,038,641 $ 41,017,383 $ 13,849,933 $ 107,905,957 $ City of Culver City
Statement of Activities
Year Ended June 30, 2021
Program Revenues
29 Governmental Business-Type
Functions/Programs: Activities Activities Total
Primary government:
Governmental activities:
General government (19,829,789)$ - $ (19,829,789)$ Parks, recreation and community services (7,191,474) - (7,191,474) Police (40,620,553) - (40,620,553) Fire (22,376,106) - (22,376,106) Community development (7,000,291) - (7,000,291) Public works 5,038,827 - 5,038,827 Transportation 1,753,081 - 1,753,081 (38,053) - (38,053) Total governmental activities (90,264,358) - (90,264,358) Business-type activities:
Refuse disposal - 711,027 711,027 Municipal bus lines - 2,868,931 2,868,931 Sewer enterprise - 1,391,981 1,391,981 Municipal fiber network - 510,680 510,680 Internal service fund allocated to
business-type activities - (924,172) (924,172) Total business-type activities - 4,558,447 4,558,447 Total primary government (90,264,358) 4,558,447 (85,705,911) General revenues:
Taxes:
Property taxes 20,364,416 - 20,364,416 Sales taxes 37,830,897 - 37,830,897 Utility users taxes 13,184,794 - 13,184,794 Franchise taxes 2,298,715 - 2,298,715 Business license taxes 15,895,304
- 15,895,304
Transient occupancy taxes 3,073,676 - 3,073,676 Other taxes 391,788 - 391,788 Total taxes 93,039,590 - 93,039,590 Intergovernmental revenues, unrestricted 6,087,286 6,087,286 Investment earnings 3,939,952 4,718 3,944,670 Miscellaneous 629,659 - 629,659 Transfers (991,789) 991,789 - Total general revenues and transfers 102,704,698 996,507 103,701,205 Change in net position 12,440,340 5,554,954 17,995,294 Net position - beginning of year 90,647,618 50,694,926 141,342,544 Net position - ending of year 103,087,958$ 56,249,880 $ 159,337,838 $ Primary Government
Changes in Net Position
Net (Expense) Revenue and
City of Culver City
Statement of Activities (Continued)
Year Ended June 30, 2021
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FUND FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
31 FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
32 This page intentionally left blank.
33 GOVERNMENTAL FUND
FINANCIAL STATEMENTS
General Fund -T h i si st h eprim ary operating fund of the City. It accounts for al l activities o f the genera l governm ent, ex cept those required to be accounted for in another fund.
Capital Improvement and Acquisition Capital Projects Fund - To account for capital projects that are not otherwise funded by a special revenue fund or other specifically identified by the sources of fu nding. Project funding is m ainly from general revenues allocated by action of the City Council.
Culver City Housing Authority Special Revenue Fund - This fund is used to account for the form er Low/Moderate Incom e Housing Funds transferred to the City under the 2011 Cooperation and Im plem entati on agreem ents. It is also anticipated that future funding will be provided from the Successor Agency from the past redevelopm ent age ncy repaym ent obligations. These funds are restricted to be used for qualified low/m oderate incom e housing projects identified in the Agreem ent.
Capital Improvement Grants Ca pital Pro jects Fund - To account for grant funds awards to the City by federal, sta te, and local grant agencies for capital improvements, and the qualified ex penditures of those restricted funds.
See accompanying Notes to the Basic Financial Statements.
34 Culver City Capital
Housing Improvement and
General Authority Acquisition
ASSETS
Cash and investments 54,608,062 $ 12,572,965 $ 10,558,798 $ Restricted investments held by Pension Trust 13,875,468 - - Accounts receivables, net 3,299,890 1,347 - Interest receivables 202,722 3,353,001 28,809 Notes receivables, net 86,098 15,475,740 - Due from other funds 14,337,486 25,674 - Due from other governments 14,958,617 - - Due from Successor Agency - 7,982,045 - Advances to other funds 14,680,229 - - Total assets 116,048,572$ 39,410,772 $ 10,587,607 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 2,430,024 $ 25,277 $ 149,138 $ Salaries and benefits payable 2,207,797 - - Due to other governments - - - Due to other funds - 75,448 - Deposits payable 1,814,240 6,685 8,672,495 Retention payable - - 19,642 Unearned revenues 759,324 - - Total liabilities 7,211,385 107,410 8,841,275 Deferred Inflows of Resources:
Unavailable revenue 29,156 - - Total deferred inflows of resources 29,156 - - Fund Balances:
Nonspendable 14,766,327 - - Restricted 13,875,468 39,303,362 1,746,332 Committed 53,001,673 - - Assigned 5,234,293 - - Unassigned (deficit) 21,930,270 - - Total fund balances 108,808,031 39,303,362 1,746,332 Total liabilities, deferred inflows of
resources and fund balances 116,048,572$ 39,410,772 $ 10,587,607 $ Major Funds
City of Culver City
Balance Sheet
Governmental Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.
35 Major Funds
Capital Total Total
Improvement Nonmajor Governmental
Grants Funds Funds
ASSETS
Cash and investments -$ 43,883,286$ 121,623,111 $ Restricted investments held by Pension Trust - - 13,875,468 Accounts receivables, net - 197,148 3,498,385 Interest receivables - 1,073,295 4,657,827 Notes receivables, net - 3,433,820 18,995,658 Due from other funds - - 14,363,160 Due from other governments 9,088,712 3,314,194 27,361,523 Due from Successor Agency - - 7,982,045 Advances to other funds - - 14,680,229 Total assets 9,088,712$ 51,901,743 $ 227,037,406 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable 787,113 $ 874,393 $ 4,265,945 $ Salaries and benefits payable - 22,673 2,230,470 Due to other governments - 38,820 38,820 Due to other funds 8,145,000 1,454,651 9,675,099 Deposits payable - 230,631 10,724,051 Retention payable 80,214 24,576 124,432 Unearned revenues - - 759,324 Total liabilities 9,012,327 2,645,744 27,818,141 Deferred Inflows of Resources:
Unavailable revenue 7,886,811 1,314,206 9,230,173 Total deferred inflows of resources 7,886,811 1,314,206 9,230,173 Fund Balances:
Nonspendable - - 14,766,327 Restricted - 25,558,544 80,483,706 Committed - 23,570,191 76,571,864 Assigned - - 5,234,293 Unassigned (deficit) (7,810,426) (1,186,942) 12,932,902 Total fund balances (7,810,426) 47,941,793 189,989,092 Total liabilities, deferred inflows of
resources and fund balances 9,088,712$ 51,901,743 $ 227,037,406 $ City of Culver City
Balance Sheet (Continued)
Governmental Funds
June 30, 2021
36 This page intentionally left blank.
See accompanying Notes to the Basic Financial Statements.
37 Total Fund Balances - Total Governmental Funds 189,989,092$ Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and are not reported in the funds:
Capital assets, not being depreciated 65,556,045
Capital assets, depreciable (net of $27,333,088 reported in Int ernal Service Funds) 217,407,927 Less accumulated depreciation (net of $(18,598,724) reported in Internal Service Funds) (103,765,239) Long-term liabilities and related deferred outflows of resources and def erred inflows of resources were not due and payable in the current period. Therefore, they were not reported in the G overnmental Funds' Balance Sheet:
Compensated absences (net of $645,548 reported in Internal Service Funds) (11,732,309) Net pension liability (net of $10,829,285 reported in Internal Service Funds) (215,815,284) Pension related deferred outflows of resources (net of $1,348,247 reported in Internal Service Funds) 27,203,126 Pension related deferred inflows of resources (net of $81,802 reported in Internal Service Funds) (746,628) Net OPEB liability (net of $1,967,400 reported in Internal Service Funds) (45,217,678) OPEB related deferred outflows of resources (net of $86,757 reported in Internal Service Funds) 1,993,977 OPEB related deferred inflows of resources (net of $999,515 reported in Internal Service Funds) (22,972,323) Internal service funds are used by management to charge the costs of equipm ent replacement, fleet management, risk management, and central store to individual funds. The assets and liabili ties of the internal service funds are included in the governmental activities in the Government-Wide Statement of Net Positio n (net of $2,707,286 allocated to business-type activities). (8,042,921)
Revenues earned but not available to pay for current expenditures for governmental funds are unavailable. 9,230,173 Net Position of Governmental Activities 103,087,958$
City of Culver City
Reconciliation of the Governmental Funds Balance Sheet
to the Gover nm ent-Wide Statem ent of Net Position
June 30, 2021
See accompanying Notes to the Basic Financial Statements.
38 Culver City Capital
Housing Improvement and
General Authority Acquisition
REVENUES:
Taxes 93,039,590$ - $ - $ Licenses and permits 3,266,410 - - Fines and forfeitures 3,562,963 - - Intergovernmental 11,390,216 - 253,996 Charges for services 8,693,400 - - Investment earnings 3,090,696 386,328 360,449 Miscellaneous 410,970 156,005 - Total revenues 123,454,245 542,333 614,445 EXPENDITURES:
Current:
General government 18,706,024 - - Parks, recreation, and community services 8,268,396 - - Police 44,078,619 - - Fire 25,967,335 - - Community development 8,969,068 1,696,682 - Public works 12,891,303 - 325,112 Transportation - - - Capital outlay 281,223 - 2,086,760 Total expenditures 119,161,968 1,696,682 2,411,872 REVENUES OVER (UNDER) EXPENDITURES 4,292,277 (1,154,349) (1,797,427) OTHER FINANCING SOURCES (USES):
Capital contributions - - 15,000 Transfers in 2,717,225 - 619,000 Transfers out (619,000) (817,225) - Proceeds from sale of property 101 - - Total other financing sources (uses) 2,098,326 (817,225) 634,000 CHANGES IN FUND BALANCES 6,390,603 (1,971,574) (1,163,427) FUND BALANCES (DEFICIT):
Beginning of year 102,417,428 41,274,936 2,909,759 End of year 108,808,031 $ 39,303,362 $ 1,746,332 $ Major Funds
City of Culver City
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.
39 Total
Capital Nonmajor Total
Improvement Governmental Governmental
Grants Funds Funds
REVENUES :
Tax es -$ - $ 93,039,590$ Licenses and permits - 669,472 3,935,882 Fines and forfeitures - - 3,562,963 Intergovernmental 5,933,105 8,907,202 26,484,519 Charges for services - 7,070,812 15,764,212 Investment earnings - 110,714 3,948,187 Miscellaneous - 19,300 586,275 Total revenues 5,933,105 16,777,500 147,321,628 EXPEND ITURES :
Current:
General government - 431,301 19,137,325 Parks, recreation, and community services - 64,679 8,333,075 Police - 360,212 44,438,831 Fire - 587,813 26,555,148 Community development - 3,889,326 14,555,076 Public works - 136,549 13,352,964 Transportation - 247,806 247,806 Capital outlay 10,463,825 7,084,175 19,915,983 Total expenditures 10,463,825 12,801,861 146,536,208 REVENUES OVER (UNDER) EXPENDITURES (4,530,720) 3,975,639 785,420 OTHER FINANCING SOURCES (USES):
Capital contributions - - 15,000 Transfers in - 193,100 3,529,325 Transfers out - (3,084,889) (4,521,114) Proceeds from sale of property - 1,156 1,257 Total other financing sources (uses) - (2,890,633) (975,532) CHANGES IN FUND BAL ANCES (4,530,720) 1,085,006 (190,112) FUND BALANCES (DEFICIT):
Beginning of year (3,279,706) 46,856,787 190,179,204 End of year (7,810,426)$ 47,941,793 $ 189,989,092 $ City of Culver City
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.
40 Net Change in Fund Balances - Total Governmental Funds (190,112)$ 19,876,986
(5,439,473)
381,373
Other postemployment benefit expense, net of $(248,647) reporte d in the Internal Service Funds 5,657,629 Pension expense, net of $31,694 pension contribution made after measurement date and $306,324 pension expense reported in the Internal Service Funds (10,837,5 65) (2,057,029)
5,048,531
Change in Net Position of Governmental Activities 12,440,340$ City of Culver City
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Gover nm ent-Wide Statem ent of Activities Year Ended June 30, 2021
Amounts reported for governmental activities in the Statement of Activities are different because:
Unavailable revenue is not recognized as revenue in the governmental fund s since the revenue is not available to fund expenditures of the current year.
Capital outlay ($40,548 of capital outlay expenditures were for current p ublic works expenditures for repairs and maintenance and therefore, were not capitalized), net of $768,825 reported in Internal Service Funds.
Acquisition of capital assets was reported as expenditures in the governm ental funds. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over the es timated useful lives as depreciation expense. The following was the amount of capital assets recorded in the current period:
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, depreciation expense was not reported as an expenditure in the governmental funds. (Net of $2,306,083 reported in Internal Service Funds.) Long-term compensated absences expense was reported in the Government-W ide Statement of Activities, but it did not require the use of current financial resources. Therefore, the increase i n long-term compensated absences was not reported as an expenditure in the governmental funds. (Net of $298,232 reported in Internal Service Funds.) Other postemployment benefits and pension expenses were reported in the G overnment-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, th ei n c r e a s eo rd e c r e a s ei no t h e rp o s t e m p l o y m e n t benefits liability and net pension liabilities were not reported as an expenditure or (credit) in the governmental funds.
Internal service funds were used by management to charge the costs of certa in activities, such as equipment and fleet management, insurance, and central stores to individual funds. The net revenue of the internal service funds was reported with governmental activities (net of $924,172 allocated to business - type activities).
41 PROPRIETARY FUND
FINANCIAL STATEMENTS
42 This page intentionally left blank.
43 Municipal Fiber Network Fund - This fund is used to account for the installation of open access network whe re Internet Service Providers ("ISP") will utilize the City’s fiber infrastructure to service the business community.
PROPRIETARY FUNDS
Municipal Bus Lines Fund - This fund is used to account for the operation and the capital assets of the City's transportation system.
Sewer Enterprise Fund - This fund is used to account for the maintenance and operation, and the capital assets of the City's sewage disposal service.
Enterprise Funds are used to account and report activities for which fees are charges to external users for goods and/or services.
Enterprise Funds include:
Refuse Disposal Fund - This fund is used to account for the operation and the capital assets of the City's refuse disposal service.
See accompanying Notes to the Basic Financial Statements.
44 Total
Refuse Municipal Bus Sewer Municipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
ASSETS
Current assets:
Cash and investments 3,911,799 $ 11,669,170 $ 25,284,308 $ - $ 40,865,277$ Accounts receivables, net 1,182,278 436,903 152 10,900 1,630,233 Interest receivables 10,171 31,343 65,387 - 106,901 Due from other funds - - - - - Due from other governments 103,900 8,287,644 253,697 - 8,645,241 Inventory - - - - - Total current assets 5,208,148 20,425,060 25,603,544 10,900 51,247,652 Noncurrent assets:
Cash and investments with
fiscal agent - - 1 - 1 Notes receivables, net - - 1,195 - 1,195 Capital assets:
Not being depreciated 3,170 5,608,530 12,066,732 2,043,572 19,722,004 Being depreciated 8,792,860 68,602,155 75,180,735 11,433,233 164,008,983 Less accumulated depreciation (6,540,650) (38,541,489) (39,153,846) (955,962) (85,191,947) Total capital assets, net 2,255,380 35,669,196 48,093,621 12,520,843 98,539,040 Total noncurrent assets 2,255,380 35,669,196 48,094,817 12,520,843 98,540,236 Total assets 7,463,528 56,094,256 73,698,361 12,531,743 149,787,888
DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 1,137,585 3,252,121 262,013 - 4,651,719 Other postemployment benefits related amounts 112,091 186,659 10,516 - 309,266 Total deferred outflows of resources 1,249,676 3,438,780 272,529 - 4,960,985 (Continued)
Business-Type Activities - Enterprise Funds
City of Culver City
Statement of Net Position
Proprietary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.
45 Governmental
Activities
Internal
Service Funds
AS S ETS
Current assets:
Cash and investments 10,524,669$
Accounts receivables, net 56,479
Interest receivables 19,975
Due from other funds 6,339
Due from other governments -
Inventory 757,768
Total current assets 11,365,230
Noncurrent assets:
Cash and investments with
fiscal agent -
Notes receivables, net -
Capital assets:
Not being depreciated -
Being depreciated 27,333,088
Less accumulated depreciation (18,598,724)
Total capital assets, net 8,734,364
Total noncurrent assets 8,734,364
Total assets 20,099,594
DEFERRED OUTFLOWS OF RES OURCES
Pension related amounts 1,348,247
Other postemployment benefits related amounts 86,757
Total deferred outflows of resources 1,435,004
(Continued)
City of Culver City
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.
46 Total
Refuse Municipal Bus Sewer Municipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
LIABILITIES
Current liabilities:
Accounts payable 467,343 $ 1,065,478 $ 659,876 $ 595,591 $ 2,788,288 $ Salaries and benefits payable 155,300 477,975 29,481 - 662,756 Due to other funds - - - 2,736,035 2,736,035 Interest payable - - 283,267 - 283,267 Deposits payable 182,750 - - 202,220 384,970 Retention payable - - - - - Unearned revenue 55 2,506,563 - - 2,506,618 Compensated absences, due within one year 258,230 615,854 54,178 - 928,262 Claims payable, due within one year - - - - - Revenue bonds payable, due within one year - - 740,000 - 740,000 Total current liabilities 1,063,678 4,665,870 1,766,802 3,533,846 11,030,196 Noncurrent liabilities:
Advances from other funds - - - 14,680,229 14,680,229 Compensated absences, due in more than one year 162,435 359,850 49,782 - 572,067 Claims payable, due in more than one year - - - - - Revenue bonds payable, due in more than one year - - 21,590,677 - 21,590,677 Net pension liabilities 8,837,074 25,263,394 2,035,391 - 36,135,859 Net other postemployment benefits liabilities 2,541,902 4,232,891 238,473 - 7,013,266 Total noncurrent liabilities 11,541,411 29,856,135 23,914,323 14,680,229 79,992,098 Total liabilities 12,605,089 34,522,005 25,681,125 18,214,075 91,022,294
DEFERRED INFLOWS OF RES OURCES
Pension related amounts 69,020 197,315 15,897 - 282,232 Other postemployment benefits related amounts 1,291,384 2,150,472 121,153 - 3,563,009 Total deferred inflows of resources 1,360,404 2,347,787 137,050 - 3,845,241
NET POSITION
Net investment in capital assets 2,255,380 35,669,196 25,762,944 12,520,843 76,208,363 Restricted for debt service - - 1 - 1 Unrestricted (Deficit) (7,507,669) (13,005,952) 22,389,770 (18,203,175) (16,327,026) Total net position (5,252,289)$ 22,663,244 $ 48,152,715 $ (5,682,332) $ 59,881,338 $ Adjustment to reflect the consolidation of
internal service fund activities related to
business-type activities (3,631,458)
Net position of business-type activities 56,249,880$
(Continued)
Business-Type Activities - Enterprise Funds
City of Culver City
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.
47 Governmental
Activities
Internal
Service Funds
LIABILITIES
Current liabilities:
Accounts payable 306,353$
Salaries and benefits payable 216,436
Due to other funds 1,958,365
Interest payable -
Deposits payable -
Retention payable -
Unearned revenue -
Compensated absences, due within one year 180,091
Claims payable, due within one year 3,944,154
Revenue bonds payable, due within one year -
Total current liabilities 6,605,399
Noncurrent liabilities:
Advances from other funds -
Compensated absences, due in more than one year 465,457 Claims payable, due in more than one year 12,615,835
Revenue bonds payable, due in more than one year -
Net pension liabilities 10,473,569
Net other postemployment benefits liabilities 1,967,400 Total noncurrent liabilities 25,522,261
Total liabilities 32,127,660
DEFERRED INFLO WS O F RES O URCES
Pension related amounts 81,802
Other postemployment benefits related amounts 999,515
Total deferred inflows of resources 1,081,317
NET POSITION
Net investment in capital assets 8,734,364
Restricted for debt service -
Unrestricted (Deficit) (20,408,743)
Total net position (11,674,379)$
(Concluded)
City of Culver City
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.
48 Total
Refuse Municipal Bus Sewer Municipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
OPERATING REVENUES:
Charges for services 16,019,836$ 775,096 $ 10,111,096$ 2,598,045 $ 29,504,073 $ Other 7,287 249,404 - 14,820 271,511 Total operating revenues 16,027,123 1,024,500 10,111,096 2,612,865 29,775,584 OPERATING EXPENSES:
Salaries and benefits 5,915,707 16,521,399 1,167,857 - 23,604,963 Supplies 283,973 349,330 2,861,684 70,367 3,565,354 Repairs and maintenance 2,658,396 3,849,206 56,350 13,672 6,577,624 Insurance 169,450 648,476 67,878 - 885,804 Claims and settlements - - - - - Administrative services 2,028,230 1,922,765 809,515 - 4,760,510 Rent and lease expenses 298,932 - 360,000 - 658,932 Consulting and contractual services 3,820,673 663,056 821,336 1,701,708 7,006,773 Depreciation and amortization 261,610 3,486,815 1,840,916 228,664 5,818,005 Total operating expenses 15,436,971 27,441,047 7,985,536 2,014,411 52,877,965 OPERATING INCOME (LOSS) 590,152 (26,416,547) 2,125,560 598,454 (23,102,381) NONOPERATING REVENUES (EXPENSES):
Interest expense - - (733,778) (87,774) (821,552) Investment earnings (1,589) 24,144 (17,837) - 4,718 Intergovernmental 120,875 27,067,118 199 - 27,188,192 Gain (loss) on sales of property - - - - - Total nonoperating revenues (expenses) 119,286 27,091,262 (751,416) (87,774) 26,371,358
INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS 709,438 674,715 1,374,144 510,680 3,268,977 CONTRIBUTIONS AND TRANSFERS:
Capital contributions - 2,218,360 - - 2,218,360 Transfers in - 1,291,789 - - 1,291,789 Transfers out - (300,000) - - (300,000) Total contributions and transfers - 3,210,149 - - 3,210,149 Changes in net position 709,438 3,884,864 1,374,144 510,680 6,479,126 NET POSITION:
Beginning of year (5,961,727) 18,778,380 46,778,571 (6,193,012) 53,402,212 End of year (5,252,289) $ 22,663,244 $ 48,152,715 $ (5,682,332) $ 59,881,338 $ Adjustment to reflect the consolidation of internal service funds activities related to business-type activities (924,172) Changes in net position of business-type activities 5,554,954$ (Continued)
Business-Type Activities - Enterprise Funds
City of Culver City
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.
49 Governmental
Activities
Internal
Service Funds
OPERATING REVENUES:
Charges for services 20,927,597$
Other 77,920
Total operating revenues 21,005,517
OPERATING EXPENSES:
Salaries and benefits 6,859,689
Supplies 2,053,009
Repairs and maintenance 2,915,451
Insurance 2,523,091
Claims and settlements 6,738,045
Administrative services -
Rent and lease expenses -
Consulting and contractual services 625,242
Depreciation and amortization 2,306,083
Total operating expenses 24,020,610
OPERATING INCOME (LOSS) (3,015,093)
NONOPERATING REVENUES (EXPENSES):
Interest expense -
Investment earnings (8,235)
Intergovernmental -
Gain (loss) on sales of property 42,127
Total nonoperating revenues (expenses) 33,892
INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS (2,981,201)
CONTRIBUTIONS AND TRANSFERS:
Capital contributions -
Transfers in -
Transfers out -
Total contributions and transfers -
Changes in net position (2,981,201)
NET POSITION:
Beginning of year (8,693,178)
End of year (11,674,379)$
(Concluded)
City of Culver City
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.
50 Total
Refuse Municipal Bus Sewer Municipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 16,133,172 $ 698,510 $ 10,112,073$ 2,683,570 $ 29,627,325 $ Receipts from user departments - - - - - Payments to suppliers (9,212,393) (8,508,452) (7,685,129) (1,463,946) (26,869,920) Payments to employees (6,037,606) (16,273,265) (1,130,839) - (23,441,710) Net cash provided by (used in) operating activities 883,173 (24,083,207) 1,296,105 1,219,624 (20,684,305)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Grants received 80,121 24,918,191 (127,619) - 24,870,693 Cash received from (paid to) other funds - 991,789 - 337,691 1,329,480 Net cash provided (used in) by
noncapital financing activities 80,121 25,909,980 (127,619) 337,691 26,200,173
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grants received - 2,218,360 - - 2,218,360 Acquisition of capital assets (498,927) (3,628,835) (7,209,580) (1,557,315) (12,894,657) Advances from other funds - - - 87,774 87,774 Proceeds from sales of capital assets - - - - - Interest paid - - (857,876) (87,774) (945,650) Principal paid on revenue bonds - - (425,000) - (425,000) Net cash used in capital and related
financing activities (498,927) (1,410,475) (8,492,456) (1,557,315) (11,959,173) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 988 27,144 12,947 - 41,079 Cash provided by investing activities 988 27,144 12,947 - 41,079 Net increase (decrease) in cash and cash equivalents 465,355 443,442 (7,311,023) - (6,402,226) CASH AND CASH EQUIVALENTS:
Beginning of year 3,446,444 11,225,728 32,595,332 - 47,267,504 End of year 3,911,799 $ 11,669,170 $ 25,284,309 $ - $ 40,865,278$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENTS OF NET POSITION:
Cash and investments 3,911,799$ 11,669,170 $ 25,284,308 $ - $ 40,865,277$ Cash and investments held with fiscal agent - - 1 - 1 Total 3,911,799$ 11,669,170 $ 25,284,309 $ - $ 40,865,278$ (Continued)
Business-Type Activities - Enterprise Funds
City of Culver City
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.
51 Governmental
Activities
Internal
Service Funds
CAS H FLO WS FRO M O PERATING ACTIVITIES :
Receipts from customers and users 77,920$
Receipts from user departments 20,982,391
Payments to suppliers (12,721,225)
Payments to employees (7,011,329)
Net cash provided by (used in) operating activities 1,327,757
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Grants received -
Cash to other funds 1,060,547
Net cash provided (used in) by
noncapital financing activities 1,060,547
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grants received -
Acquisition of capital assets (768,825)
Advances from other funds -
Proceeds from sales of capital assets 124,259
Interest paid -
Principal paid on revenue bonds -
Net cash provided by (used in) capital
and related financing activities (644,566)
CAS H FLO WS FRO M INVES TING ACTIVITIES :
Interest received 3,427
Net cash provided by investing activities 3,427
Net increase (decrease) in cash and cash equivalents 1,747,165 CASH AND CASH EQUIVALENTS:
Beginning of year 8,777,504
End of year 10,524,669$
RECONCILIATIO N OF CAS H AND CAS H EQUIVALENTS
TO THE S TATEMENTS OF NET POSITION:
Cash and investments 10,524,669$
Cash and investments held with fiscal ag ent -
Total 10,524,669$
(Continued)
City of Culver City
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2021
See accompanying Notes to the Basic Financial Statements.
52 Total
Refuse Municipal Bus Sewer Municipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) 590,152 $ (26,416,547)$ 2,125,560 $ 598,454 $ (23,102,381)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 261,610 3,486,815 1,840,916 228,664 5,818,005 (Increase) decrease in:
Accounts receivable 48,049 (325,990) 977 8,600 (268,364) Customer deposits 58,000 - - 62,105 120,105 Inventory - - - - - Deferred outflows of resources - pensions 39,786 113,743 9,164 - 162,693 Deferred outflows of resources - OPEB 56,023 93,525 5,299 - 154,847 Increase (decrease) in:
Accounts payable 47,261 (1,075,619) (2,539,878) 321,801 (3,246,435) Salaries and benefits payable 23,440 64,872 6,415 - 94,727 Retention payable - - (168,488) - (168,488) Compensated absences (113,882) (99,236) (4,349) - (217,467) Net pension liabilities 327,909 937,423 75,525 - 1,340,857 Net other postemployment benefits liabilities (515,058) (861,881) (49,100) - (1,426,039) Deferred inflows of resources - pensions (82,495) (235,834) (19,000) - (337,329) Deferred inflows of resources - OPEB 142,378 235,522 13,064 - 390,964 Claims payable - - - - - Total adjustments 31,411 (1,153,475) (2,670,371) 392,506 (3,399,929) Net cash provided by (used in) operating activities 883,173$ (24,083,207)$ 1,296,105 $ 1,219,624 $ (20,684,305) $
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Accrued interest on advances - $ - $ - $ 87,774$ 87,774 $ (Continued)
Business-Type Activities - Enterprise Funds
Year Ended June 30, 2021
City of Culver City
Statement of Cash Flows (Continued)
Proprietary Funds
See accompanying Notes to the Basic Financial Statements.
53 Governmental
Activities
Internal
Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) (3,015,093)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 2,306,083
(Increase) decrease in:
Accounts receivable 54,794
Customer deposits -
Inventory (81,658)
Deferred outflows of resources - pensions 47,156
Deferred outflows of resources - OPEB 43,510
Increase (decrease) in:
Accounts payable (128,345)
Salaries and benefits payable 57,220
Retention payable -
Compensated absences (298,232)
Net pension liabilities 388,633
Net other postemployment benefits liabilities (401,343) Deferred inflows of resources - pensions (97,770)
Deferred inflows of resources - OPEB 109,186
Claims payable 2,343,616
Total adjustments 2,036,767
Net cash provided by (used in) operating activities 1,327,757$
NONCASH NONCAPITAL FINANCING ACTIVITIES
Accrued interest on advances -$
(Concluded)
Year Ended June 30, 2021
Statement of Cash Flows (Continued)
Proprietary Funds
54 This page intentionally left blank.
55 FIDUCIARY FUND
FINANCIAL STATEMENTS
Successor Agency to the Culver City Redevelopment Agency Private Purpose Trust Fund - To account for the winding down of the former Redevelopment Agency, including disposition of real properties h eld by the Agency and payment of enforceable obligations.
Reflected in the Basic Financial Statements section.
Agency Funds - To account for assets held by the City as an agent for individuals, private organizations, other government units, and/or other funds. An agency fund such as Treasurer's Trust is used to acco unt for refundable deposits entrusted with the City Treasurer/Finance department.
OPEB Trust Plan Fund - To account for the assets of the City's Retiree Health Insurance Program ( the Plan), a single - employer defined benefit plan for the City's eligible retired employees and their spouses.
56 This page intentionally left blank.
See accompanying Notes to the Basic Financial Statements.
57 Priv ate
Purpose OPEB
Trust Trust Agency
Fund Plan Funds
ASSETS
Cash and investments 8,086,678$ - $ 72,980 $ Cash and investments held with fiscal agent 15,814,341 - - Restricted cash and investments held with OPEB Trust - 65,342,357 - Interest receivables 1,279 3 - Prepaid items 68,576 - - Notes receivables, net 928,140 - - Capital assets: -
Not being depreciated 8,316,229 - - Being depreciated, net 4,625,474 - - Total assets 37,840,717 65,342,360 72,980 $
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding, net 1,541,051 - - Total deferred loss on refunding 1,541,051 - -
LIABILITIES
Accounts payable 20,034 - - $ Deposits payable - - 72,980 Interest payable 543,542 - - Due to Culver City Housing Authority 7,982,045 - - Bonds payable, due within one year 11,530,000 - - Bonds payable, due more than one year 67,836,888 - - Total liabilities 87,912,509 - 72,980$
NET POSITION (DEFICIT)
Held in trust (48,530,741)$ 65,342,360 $
City of Culver City
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
See accompanying Notes to the Basic Financial Statements.
58 Private
Purpose OPEB
Trust Trust
Fund Plan
ADDITIONS
Redevelopment property taxes trust funds 21,375,424$ - $ Contributions - 6,071,864
Investment earnings:
Interest 49,979 57
Dividend - 1,212,950
Net appreciation in fair value of investments (9,935) 13,353,761 Total additions 21,415,468 20,638,632
DEDUCTIONS
Benefit payments - 6,058,893
General and administrative 881,530 29,346 Depreciation 138,902 -
Interest expense 3,686,073 -
Reimbursement to the City 1,469,731 -
Total deductions 6,176,236 6,088,239
Change in net position 15,239,232 14,550,393
NET POSITION
Beginning of year (63,769,973) 50,791,967
End of year (48,530,741)$ 65,342,360 $
Year Ended June 30, 2021
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
City of Culver City
NOTES TO THE BASIC FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
59 NOTES TO THE BASIC
FINANCIAL STATEMENTS
60 This page intentionally left blank.
City of Culver City
Index to the Notes to the Basic Financial Statements
Year Ended June 30, 2021
61 Page
Note 1 – Summary of Significant Accounting Policies ....................................................................................... 63
A. Reporting Entity ................................................................................................................................... 63 B. Basis of Accounting and Measurement Focus ..................................................................................... 64 C. Fund Classifications ............................................................................................................................. 68 D. Cash and Investments .......................................................................................................................... 68 E. Cash Equivalents.................................................................................................................................. 69 F. Fair Value Measurement ...................................................................................................................... 69 G. Inventories ........................................................................................................................................... 69 H. Interfund Transactions ......................................................................................................................... 69 I. Capital Assets ...................................................................................................................................... 69 J. Interest Payable .................................................................................................................................... 70 K. Unearned Revenue ............................................................................................................................... 70 L. Deferred Outflows and Inflows of Resources ...................................................................................... 70 M. Long-Term Debt .................................................................................................................................. 70 N. Pension Plans ....................................................................................................................................... 71 O. Other Postemployment Benefits (“OPEB”) ......................................................................................... 71 P. Employee Leave Benefits .................................................................................................................... 72 Q. Claims and Judgments ......................................................................................................................... 72 R. Property Taxes ..................................................................................................................................... 72 S. Net Position ......................................................................................................................................... 73 T. Fund Balances ...................................................................................................................................... 73 U. Spending Policy ................................................................................................................................... 75 V. Use of Estimates .................................................................................................................................. 75 W. New Accounting Pronouncements ....................................................................................................... 75
Note 2 – Stewardship, Compliance, and Accountability .................................................................................... 76
A. Deficit Fund Balances/Net Position ..................................................................................................... 76 B. Excess of Expenditures Over Appropriations by Department in Individual Funds ............................. 77
Note 3 – Cash and Investments ............................................................................................................................ 78
Note 4 – Interfund Balances ................................................................................................................................. 82
A. Internal Balances.................................................................................................................................. 82 B. Due From and To Other Funds ............................................................................................................ 82 C. Advances To and From Other Funds ................................................................................................... 83 D. Transfers In and Out ............................................................................................................................ 83
Note 5 – Notes Receivables .................................................................................................................................. 85
A. Culver City Mobile Home Owners, Inc. .............................................................................................. 85 B. MAP Loans .......................................................................................................................................... 85 C. Tilden Terrace - Residential ................................................................................................................ 86 D. Home Ownership Made Easy .............................................................................................................. 86 E. Exceptional Children’s Foundation ERAS Loans ............................................................................... 86 F.
Exceptional Children’s Foundation Westside Opportunity Workshop ................................................ 86 G. Habitat For Humanity of Greater Los Angeles .................................................................................... 86 City of Culver City
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
62 Page
Note 5 – Notes Receivables (Continued)
H. Tilden Terrace - Commercial ............................................................................................................... ...86
Note 6 – Capital Assets ............................................................................................................................................. 87
A. Governmental Activities ......................................................................................................................... 87 B. Business-Type Activities ........................................................................................................................ 88
Note 7 –Long-Term Liabilities ................................................................................................................................ 89
A. Governmental Activities ......................................................................................................................... 89 B. Business-Type Activities ........................................................................................................................ 89
Note 8 – Bonds Payable ............................................................................................................................................ 89
Note 9 – Claims and Judgments .............................................................................................................................. 91
Note 10 – Pension Plans ........................................................................................................................................... 92
A. California Public Employees’ Retirement System (“CalPERS”) ........................................................... 92 B. Public Agency Retirement Services (“PARS”) ...................................................................................... 101
Note 11 – Other Postemployment Benefits (“OPEB”) .......................................................................................... 102
Note 12 – Deferred Compensation Plan ................................................................................................................ 107
Note 13 – Contingencies .......................................................................................................................................... 107
Note 14 – Classification of Fund Balances ............................................................................................................ 108
Note 15 – Subsequent Events .................................................................................................................................. 108
Note 16 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency ................... 109
Note 17 – Governmental Accounting Standards Board (GASB) Statements Issued, Not Yet Effective ......... 113
City of Culver City
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
63 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Culver City, California (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to government units.
The Governmental Accounting Standards Board (“GASB”) is the acc epted standard-setting body for establishing governmental accounting and fina ncial reporting principles. The more significant of the City’s accounting policies are described below.
A. Reporting Entity
The City of Culver City was incorporated in 1917 and adopted it s current City Charter in 1947. The City Charter establishes the form of governmen t, states the powers and dutie s of the City Council, and establishes the City’s various executive offices. The City operates under a City Counc il/City Manager form of government. Under this system, the people elect a City Council of five citizens who serve a term of four years and who in turn appoint a City Manager, Police Chief, Fire Chie f and City Attorney. The City p rovides the following services as authorized in its charter: public safety (police and fire), planning, public works, human services, bus lines, refuse collection, sewers, and community development.
In evaluating how to define the City for financial reporting pu rposes, management has considered all potential component units. The primary crit eria for including a potential component unit within the reporting entity are the governing body’s financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization’s governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide spec ific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of w hether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.
The accompanying basic financial statements present the activit y of the City and its component units, the Culver City Housing Authority, and the Culver City Parking Authority, and the Culver City Financing Authority.
Blended Component Units
Management determined that the following component units should be blended based on the criteria above.
Although the following component units are legally separate from the City, they have been “blended” as though they are part of the City because the component units’ governing bod y are substantially the same as the City’s and there is a financial benefit or burden relationship between the City and the component units; and the management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or al most exclusively, benefits the City, even though they do not provide services directly to City.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
64 Note 1 – Summary of Significant Accounting Policies (Continued)
A. Reporting Entity (Continued)
Blended Component Units (Continued)
The Culver City Housing Author ity (the “Housing Authority” ) was established in January 2012 to serve as the Housing Successor Agency for the d issolved Redevelopment Agency and is governed by a board comprised of the City Council. The Housing Aut hority received the housing assets of the Redevelopment Agency and performs the housing functions of the dissolved Redevelopment Agency. The Housing Authority is reported as a special revenue fund. Separate financial statements are not prepared.
The Culver City Parking Authority (the “Parking Authority”) was created in 1965 pursuant to Section 32500 of the California Streets and Highways Code for the purpose of creating public parking facilities and undertaking activities incidental thereto for which public money may be spent and priv ate property acquired. The Parking Authority is governed by a board comprised of the City Council and is report ed as a special revenue fund. Separate financial statements are not prepared.
The Culver City Financing Authority (the “Financing Authority”) is a joint powers authority between the City and the former Redevelopment Agency and was created to provide fina ncing for capital projects. The Financing Authority is governed by a board comprised of the City Council and is a blended component unit of the City. Separate financial statements are not prepared.
B. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to the basic financial statements
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component unit s). Governmental activities include governmental funds and proprietary internal service funds. Business-type act ivities include proprietary enterprise funds.
Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, genera l government expenses have not been allocated as indirect expenses to the various functions of the City.
Government-wide financial statem ents are presented using the “ economic resources” measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting re fers to when revenues and exp enses are recognized in the accounts and reported in the financial statements. U nder the accrual basis of account ing, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
65 B. Basis of Accounting and Measurement Focus
Government-wide Financial Statements (Continued)
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 and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. P rogram revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.
Amounts paid to acquire capital assets are capitalized as asset s in the government-wide financial statements, rather than reported as expenses. The issuance of long-term debt is recorded as a liability in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenses.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprises its assets, deferred out flows of resources, liabilities, deferred inflows of resources, fund balance/net position, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based up on the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statement s display information about the major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary funds of the City primarily represent assets held by the City as a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting.
Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days.
Revenue recognition is subject to the measurable and availabili ty criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as r evenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transactions upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
66 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Funds (Continued)
In the fund financial statemen ts, governmental funds are presen ted using the “ current financial resources ” measurement focus. This means that only current assets, deferre d outflows of resources, current liabilities, and deferred inflows of resources ar e generally included on the bal ance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable r esources.” Governmental fund operating statements present increases (revenues and other financing sources) and de creases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a sum mary of sources and uses of “available spendable resources” during a period.
Non-current portions of long-term receivables due to government al funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting tr eatments are used to indicate; however, that they should not be considered “available spendable resources,” since they do not represent net current assets.
Revenues, expenses, assets, liabilities, and deferred inflows resulting from non-exchange transactions are recognized in accordance with the requirements of GASB Statement No. 33 and 65 which requires that local governments defer grant revenue that is not received within 60 days after the fiscal year end to meet the “available” criteria of revenue recognition.
Therefore, recognition of governmental fund type revenues represented by non-current receivables are deferred until they become current receivables. Non-current portions of other long-term receivables are offset by fund balance nonspendable accounts for General Fund.
Sales taxes, property taxes, franchise taxes, intergovernmental, rental income, transient occupancy taxes and special assessments are all considered to be susceptible to accrual and have been recognized as revenues in the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.
Due to the nature of their spe nding measurement focus, expendit ure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since t hey do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expe nditures in the year that resources were expended, rather than as fund assets. The issuance of long-term debt is recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
Proprietary Funds
The City’s enterprise and internal service funds are proprietar y funds. In the fund financial statements, the proprietary funds are presented using the “ economic resources ” measurement focus and the accrual basis of accounting.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
67 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Funds (Continued)
Revenues are recognized when they are earned and expenses are r ecognized when the related goods or services are delivered. In the fund financial statements, the proprietary fu nds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their sta tements of net position. The proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the f und. Exchange transactions are t hose in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsi dies, taxes, and investment earnings result from nonexchange fund transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rat her than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are report ed as a reduction of the related liability, rather than as expenses.
Internal service funds are also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements. These internal service funds account for charges to other funds and departments for in surance, equipment, maintenance, and equipment acquisition.
Fiduciary Funds
Fiduciary fund financial statements include a Statement of Net position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent agency funds and private purpose trust funds. Both agency funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.
Successor Agency to the Culver City Redevelopment Agency Trust Fund
The fund is used to account for the winding down of the former Redevelopment Agency, including disposition of real property held by the Agency and payment of enforceable obligations.
OPEB Trust Plan Fund
The fund is used to account for the assets of the City's Retire e Health Insurance Program (the Plan), a single - employer defined benefit plan for the City's eligible retired employees and their spouses.
Agency Funds
Agency funds are used to account for assets held by the City as an agent for individuals, private organizations, other government units, and/or o ther funds. An agency fund such as Treasurer’s Trust is used to account for refundable deposits entrusted with the City Treasurer/Finance department. The Culver City Revitalization Corp is a non-profit corporation created to allow certain funding to be expended on improvements to out-of-city properties adjacent to or abutting in-city properties in Compon ent Area No. 2 of the former Culver City Redevelopment Project Area. The agency funds are purely custodial in nature (assets equal liabilities) and thus, does not involve measurement of results of operations.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
68 Note 1 – Summary of Significant Accounting Policies (Continued)
C. Fund Classifications
The City reports the following major governmental funds:
General Fund
This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.
Culver City Housing Authority Special Revenue Fund
The fund is used to account for the former Low/Moderate Income Housing Funds transferred to the City under the 2011 Cooperation and Implementation Agreement. It is also anticipated that future funding will be provided from the Successor Agency from the past redevelopment agency re payment obligations. These funds are restricted to be used for qualified low/moderate income housing projects identified in the Agreement.
Capital Improvement and Acquisition Capital Projects Fund The fund is used to account for capital projects that are not otherwise funded by a special revenue fund or other specifically identified by the sources of funding. Project fund ing is mainly from general revenues allocated by action of the City Council.
Capital Improvement Grants Capital Projects Fund
The fund is used to account for grant funds awards to the City by federal, state, and lo cal grant agencies for capital improvements, and the qualified expenditures of those restricted funds.
The City reports the following major enterprise funds:
Refuse Disposal Fund – This fund is used to account for the operation and the capital assets of the City’s refuse disposal service.
Municipal Bus Lines Fund – This fund is used to account for the operation and the capital assets of the City’s transportation system.
Sewer Enterprise Fund – This fund is used to account for the maintenance and operation, and the capital assets of the City’s sewage disposal service.
Municipal Fiber Network – This fund is used to account for the installation of open access network where Internet Service Providers ("ISP") will utilize the City’s fiber infrastructure to service the business community.
D. Cash and Investments
The City pools its available cash for investment purpose. Cash includes cash on hand and demand deposits with financial institutions.
Investments are reported in the accompanying balance sheet at f air value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools the cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
69 Note 1 – Summary of Significant Accounting Policies (Continued)
E. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents a re defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or s o near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and have an original maturity date of 3 months or less.
Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City.
F. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measu ring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
Levels of inputs are as follows:
Level 1 – Inputs are unadjusted, quoted prices for identical as sets and liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best es timate of what market participants would use in pricing the assets and liabilities at the measurement date.
G. Inventories
Inventories are stated at cost. Physical counts of inventories are taken on a cyclical basis during each fiscal year with perpetual records adjusted to actual at that time. The City uses the consumption method of accounting for inventories.
H. Interfund Transactions
Activity between funds that are representative of lending/borr owing arrangements outstanding at the end of the fiscal year are referred as either “due to/from other funds” or “advan ces to/from” (i.e., the current portion of interfund loans). Any residual balances out standing between the governmen tal activities and business-type activities are reported in the Governmental-Wide Financial Statement as “internal balances”.
I. Capital Assets
Capital assets, which include property, plant, equipment and i nfrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements.
Capital assets are valued at historical cost or estimated histo rical cost if purchased or constructed. Donated capital assets are valued at their estimated acquisition value on the d ate of donation. Capital assets subject to lease obligations are valued at the n et present value of future lease payments at the inception of the lease. The City has reported all capital assets including infrastructure in the gov ernment-wide statement of net position. The City’s policy is to capitalize assets over $5,000 with a useful life of at least three years.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
70 Note 1 – Summary of Significant Accounting Policies (Continued)
I. Capital Assets (Continued)
Depreciation of all exhaustible capital assets used by the governmental and business-type activities is charged as an expense against their operations. Accumulated depreciation is reported on the statement of net position.
Depreciation has been calculated using the straight-line method over the following estimated useful lives.
J. Interest Payable
In the government-wide financial statements, interest payable o n long-term debt is recognized as the liability is incurred for governmental activities and business-type activiti es. In the fund financial statements, only proprietary fund types recognize the interest payable when the liability is incurred.
K. Unearned Revenue
Unearned revenue is recognized for transactions for which reven ue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services and grants received but not yet earned/expended.
L. Deferred Outflows and Inflows of Resources
The City reports deferred outflows and inflows of resources. A deferred outflow of res ources is a consumption of net position that is applicable to a future reporting period . A deferred inflow of r esources represents an acquisition of net position that is applicable to a future peri od.
Under the modified accrual basis of accounting, revenue suscept ible to accrual must be both measurable and available to finance expenditures of the current fiscal period. If assets are reported in connection with a transaction, but those assets are not yet available to finance expenditures of the current fiscal period, then the assets must be offset by a corresponding deferred inflow of resources.
M. Long-Term Debt
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are re ported net of the applicable bond premium or discount.
In the fund financial statemen ts, the governmental fund financi al statements do not present long-term liabilities.
Consequently, long-term debt is shown as a reconciling item in the reconciliation of the governmental funds balance sheet to the government-wide statement of net position.
Buildings and infrastructure 50-65 years
Other improvements 20 years
Refuse transfer station 50 years
Transportation equipment 5-12 years
Other equipment 3-25 years
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
71 Note 1 – Summary of Significant Accounting Policies (Continued)
N. Pension Plans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 10). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
Gains and losses related to cha nges in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts a re recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as d eferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
O. Other Postemployment Benefits (“OPEB”)
For purposes of measuring the net OPEB liability, deferred outf lows of resources and deferred inflows of resources related to OPEB, and OP EB expense, information about the fiduciary net position of the Culver City Retiree Benefits Plan (“OPEB Plan”) and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the be nefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.
The following timeframes are used for pension reporting:
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts ar e categorized as deferred outfl ows and deferred inflows of resources related to OPEB and are to be recognized i n future OPEB expense. The amort ization period differs depending on the source of gain or loss. The difference between projected and actual ea rnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.
Pension Plan Valuation
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
OPEB Plan Valuation
Valuation Date June 30, 2019
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
72 Note 1 – Summary of Significant Accounting Policies (Continued)
P. Employee Leave Benefits
A liability is recorded for unused vacation and similar compensatory leave balances since the employees’ entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.
A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payment, as well as t hose who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.
A proprietary fund liability is accrued for all leave benefits relating to the operations o f the Proprietary funds. A current liability is accrued in the governmental funds for mate rial leave benefits due on demand to governmental fund employees that have terminated prior to fiscal year end. A ll other amounts are recorded in the government- wide financial statements. These non-current amounts will be re corded as fund expenditures in the year in which they are paid or become due on demand to terminated employees.
The City’s employees earn vacation leave (vary depending on yea rs of service) based on days employed. Upon retirement or termination, payment of accumulated vacation may not exceed that which can be accumulated within two years for employees. Unused sick leave, based on days emplo yed, may be accumulated up to certain limits.
Upon retirement or termination, employees will be paid a maximum of 720 hours of sick pay.
Q. Claims and Judgments
The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability (including incurred but not reported) has been incurred prior to fiscal year end and the probable amount of loss (net of any insurance coverage) can be reasonably estim ated. This liability is recorded in the Risk Management Internal Service Fund.
R. Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go i nto the county pool, and are then apportioned to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received within 60 days after year end.
The property tax calendar is as follows:
Lien Date: January 1
Levy Date: June 30
Due Date: First Installment – November 1
Second Installment – February 1
Delinquent Date: First Installment – December 10
Second Installment – April 10
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
73 Note 1 – Summary of Significant Accounting Policies (Continued)
S. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:
Net Investment in Capital Assets – This component of net position consists of capital assets (including reported intangible assets) net of accumulated depreciation/amortization and reduced by outstanding debt that is attributed to the acquisition, construction or improvement of the assets (net of unspent debt proceeds), retention payable and related deferred outflows and inflows of resources.
Restricted – This component of net position consists of restricted assets, and reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
T. Fund Balances
In the fund financial statements, governmental funds report fun d balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.
Nonspendable fund balance – amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact.
Restricted fund balance – amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed fund balance – amounts that can only be used for specific purposes determin ed by formal action of the City’s highest level of decision-making authority (the City Council) and that remain binding unless removed in the same manner. The underlying acti on that imposed the limitation needs to occur no later than the close of the reporting period. Reso lution is the highest level of the City Council’s approval. The City Council establishes, modifies or r escinds fund balance commitments by passage of a resolution.
Assigned fund balance – amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision making, or by a body or an official designated for that purpose. The officials designat ed for authorizing assigned fund balances are the Chief Financial Officer and the City Manager by Council Resolution approved in the July 25, 2011 City Council Meeting and by City Fund Balance Policy.
Unassigned fund balance – the residual classification for the City’s funds that include amounts not contained in the other classification. The General fund is the only fund that reports a positive unassigned fund balance amount. However, i f governmental funds other than the General Fund, had expenditures incurred for specific purposes ex ceed the amounts that are rest ricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
74 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Fund Balances (Continued)
Financial Reserves Policy
Prudent financial management dictates that some portion of the funds available to the City be reserved for future use.
As a general budget principle concerning the use of reserves, the City Council decides whether to appropriate funds from Reserve accounts. Even though a project or other expenditure qualifies as a proper use of Reserves, the Council may decide that it is more beneficial to use current year opera ting revenues or bond proceeds instead, thereby retaining the Reserve funds for future use. Reserve funds will not be spent for any function other than the specific purpose of the Reserve account from which they are drawn withou t specific direction in the annual budget; or by a separate City Council action. Information regarding annual budget adoption and administration is contained in City Council Policy 5001, included in the annual budget document.
The City Council has imposed the following commitments of fund balance in the General Fund to establish reserves:
1. Contingency Reserve: The Conti ngency Reserve shall have a targe t balance of thirty percent (30%) of General Fund “Operating Budget” as originally adopted. Operatin g Budget for this purpose shall include current expenditure appropriati ons and shall exclude Capital Im provement Projects and Transfers Out.
Appropriation and/or access to these funds are reserved for eme rgency situations only. The parameters by which the Contingency Reserve could be accessed would include the following circumstances:
a. A catastrophic loss of critical infrastructure requiring an exp enditure of greater than or equal to five percent (5%) of the General Fund, Operating Budget, as defined above.
b. A State or Federally declared state of emergency where the City response or related City loss is greater than or equal to five percent (5%) of the General Fund, Operating Budget.
c. Any settlement arising from a clai m or judgment where the loss exceeds the City’s insured policy coverage by an amount greater than or equal to five percent (5%) of the General Fund, Operating Budget.
d. Deviation from budgeted revenue projections in the top three General Fund revenue categories, namely, Sales Taxes, Utility Users’ Taxes and Business Taxes in a cumul ative amount greater than or equal to five percent (5%) of the General Fund, Operating Budget.
e. Any action by another government that eliminates or shifts revenues from the City amounting to greater than or equal to five percent (5%) of the General Fund, Operating Budget.
f. Inability of the City to meet its debt service obligations in any given year.
g. Any combination of factors a.-f. amounting to greater than or equal to five percent (5%) of the General Fund, Operating Budget in any one fiscal year.
Use of the Contingency Reserve must be approved by the City Cou ncil. Should the Contingency Reserve commitment reserve be used, the City Manager shall present a plan to City Council to replenish the reserve within five years.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
75 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Fund Balances (Continued)
Financial Reserves Policy (Continued)
2. Facilities Planning Reserve: The Facilities Planning Reserve ha s been established to offset the cost of replacement or major refurbishment to critical City facilities such as, but not limited to, the City Hall building and Police Department buildings, Fire Stations, and ot her Facility Improvement Projects. Use of this Reserve must be approved by City Council. This Reserve shall be funded by allocations of General Fund surplus revenues, as defined later in this policy, or by specif ic City Council allocations. The eligible uses of this reserve include the cash funding of public facility improvements or the servicing of related debt.
3. Recreational Facilities: City C ouncil Policy 5003 requires ten percent (10%) of gross annual revenues derived from specified recreational classes and rentals to be s et aside for the refurbishment of certain recreational facilities, fee-based activity programs and equipm ent used in connection with fee-based recreation classes.
U. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restrict ed and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then apply unrestricted fund balances as needed.
When expenditures are incurred for purposes where only unrestri cted fund balances are available, the City uses the unrestricted resources in the order of committed, assigned then unassigned, except for instances wherein an ordinance specifies the fund balance.
V. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
W. Implementation of New Accounting Pronouncements
During the fiscal year ended June 30, 2021, the City adopted th e following new Statements of the Governmental Accounting Standards Board (GASB):
GASB No. 84
In January 2017, the GASB issued Statement No. 84 “Fiduciary Activities”. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
76 Note 1 – Summary of Significant Accounting Policies (Continued)
W. Implementation of New Accounting Pronouncements (Continued)
GASB No. 90
In August 2018, the GASB issued Statement No. 90, “Majority Equ ity Interests – an amendment of GASB Statements No. 14 and No. 61.” The requirements of this Stateme nt are effective for reporting periods beginning after December 15, 2019.
GASB No. 95
In May 2020, the Governmental A ccounting Standards Board issued Statement No. 95, “Postponement of the Effective Dates of Certain Authoritative Guidance.” The Stateme nt postponed the effective dates of certain Statements to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic.
Note 2 – Stewardship, Compliance, and Accountability
A. Deficit Fund Balances/Net Position
As of June 30, 2021, (deficit) fund balances/net position were reported in the following funds:
The material deficits are expected to be eliminated as follows:
Capital Improvement Grants Fund – The deficit will be eliminat ed after grant monies are received after the availability period and unavailable revenue being recognized as revenue.
Refuse Disposal Fund – The deficit is due to inclusion of the net pension liability and net OPEB liability totaled to $11,378,976. The City will develop a plan to reduce deficit.
Municipal Fiber Network Fund – Th e deficit is due to the constr uction of an open access network where internet service providers will be able to utilize City’s fiber infrastructure to serve business community. The City is expecting that this will generate revenue for them and allow them to operate with surplus soon.
M ajor Gov ernmental Fund:
Capital Projects Fund:
Capital Improvement Grants $ (7,810,426)
Major Proprietary Funds:
Refuse Disposal Fund (5,252,289)
Municipal Fiber Network Fund (5,682,332)
Nonmajor Governmental Funds:
Operating Grants (837,515)
Paratransit Grant (59,569)
CDBG Capital Projects Fund (289,858)
Internal Serv ice Funds:
Equipment Maintenance Fund (11,898,005)
Risk Management Fund (15,765,429)
Fiduciary Fund:
Private Purpose Trust Fund (48,530,741)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
77 Note 2 – Stewardship, Compliance, and Accountability (Continued)
A. Deficit Fund Balances/Net Position (Continued)
CDBG Capital Projects and Operating Grants Fund – The deficit will be eliminated after grant monies are received after the availability period and unavailable revenue being recognized as revenue.
Paratransit Fund – The deficit will be eliminated after grant m onies are received after the availability period and unavailable revenue being recognized as revenue.
Equipment Maintenance Fund – The City intends to implement a pl an to increase charges to user departments to reduce the deficit fund balance over the upcoming several years . The deficit is due to inclusion of the net pension liability and net OPEB liability totaled to $9,978,107.
Risk Management Fund – The City is analyzing the trend for recent increases in the incurred, but not reported claims liability as determined by its actuary. The deficit is partiall y due to the estimated claims liability in the amount of $16,559,989. The deficit will be recovered from charging the user departments in the future.
Private Purpose Trust Fund – The deficit will be eliminated aft er tax increment revenue are distributed to City’s Successor Agency.
The City also had a deficit unrestricted net position for gover nmental activities and business-type activities at June 30, 2021 in the amount of $(188,774,604) and $(19,958,484), respectively. It was mainly due to the net pension related liabilities and net othe r postemployment benefits relat ed liabilities. The net pension liabilities for governmental activities and business-type activities at June 30 , 2021 were $226,288,853 and $36,135,859, respectively. The net other postemployment benefits related liabilities for governmental activities and business-type activities at June 30, 2021 were $47,185,078 and $7,013,266, respectively.
B. Excess of Expenditures Over Appropriations by Department in Individual Funds
Fund Ex penditures Appropriations
E x cess of
Ex penditures over
Appropriations
Nonmajor Governmantal Fund:
Special Revenue Fund:
CDBG Operating Fund 33,247 $ 28,500 $ (4,747)$ City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
78 Note 3 – Cash and Investments
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Cash and investments as of June 30, 2021 consist of the following:
Investments Authorized by the California Government Code and the City’s Investment Policy
This table identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain pro visions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
Governmental Business-Type Fiduciary
Activities Activites Funds Total
Cash and investments $ 132,147,780 $ 40,865,277 $ 8,159,658 $ 181,172,715 Cash and investments held with fiscal agents and trustee - 1 15,814,341 15,814,342 Restricted investments held by OPEB Trust - - 65,342,357 65,342,357 Restricted investments held by Pension Trust 13,875,468 - - 13,875,468 Total cash and investments $ 146,023,248 $ 40,865,278 $ 89,316,356 $ 276,204,882 Government-Wide Financial Statement
Cash:
Petty cash $ 4,550
Demand deposits 24,493,960
Total cash 24,498,510
Investments 251,706,372
Total $ 276,204,882
Authorized *Maximum *Maximum
By Investment *Maximum Percentage Investment i n
Investment Types Authorized by State Law Policy Maturity of Portfo lio * One Issuer Local agency bonds Yes 3-5 years 30% 5%
U.S. treasury obligations Yes 5 years N/A No Limit
U.S. government sponsored enterprise securities Yes 5 years N/A 30% Banker's acceptances Yes 180 days 25% 5%
Commercial paper Yes 270 days 25% 5%
Repurchase agreements Yes 75 days 25% No Limit
Reverse repurchase agreements Yes 75 days 15% No Limit
Corporate medium-term notes Yes 3-5 years 30% 5%
Money market mutual funds Yes N/A 20% 10%
Local agency investment fund ("LAIF") Yes N/A N/A $50 million Cal Trust money market funds and short-term funds Yes N/A N/A No Li mit Cal Trust medium-term funds Yes N/A 15% No Limit
N/A - Not Applicable
* Based on state law requirements or investment policy requirements, whichever is more restrictive.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
79 Note 3 – Cash and Investments (Continued)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by fiscal agent is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.
Fair Value Measurement
At June 30, 2021, investments are reported at fair value. The f ollowing table presents the fair value measurement of investments on a recurring basis and the levels within the fair value hierarchy in which the fair value measurements fall at June 30, 2021:
For Level 2 investments, the City and the third-party trustees that hold the City’s assets utilize the Market Approach in valuing the investment portfolio through the use of a pricin g service that utilized matrix pricing. The market approach utilizes prices and other relevant data from market transactions for similar assets.
Ma x i m um Ma x i m um
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer U.S. treasury obligations None None None
U.S. government sponsored enterprise securities None None None Banker's acceptances 360 days None None
Commercial paper 270 days None None
Money market mutual funds None None None
Investment agreements None None None
Local agency bonds None None None
Medium term notes None None None
Negotiable certificate of deposits None None None
Local agency investment fund ("LAIF") None None None
Quoted Prices
in Active Investments not
Markets for Significant subject to the
Identical Assets Observable measurement
Investment Type (Level 1) Inputs (Level 2) inputs Total Treasury obligations $ - $ 18,914,949 $ - $ 18,914,949 State investment pool - - 63,443,131 63,443,131 U.S. government sponsored enterprise securities (1) - 57,880,591 - 57,880,591 Money market mutual funds (1) - - 3,232,530 3,232,530 Medium-term notes (1) - 13,203,005 - 13,203,005 Cash and investment held with fiscal agents:
Money market mutual funds - 15,814,341 - 15,814,341 Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds - - 281,537 281,537 Mutual funds 78,936,288 - - 78,936,288 Total $ 78,936,288 $ 105,812,886 $ 66,957,198 $ 251,706,372 (1) Priced based on institutional bond quotes.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
80 Note 3 – Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk t hat changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greate r 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 flo ws from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necess ary to provide the cash flo w and liquidity needed for operations.
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. For purposes of the schedule shown below, any callable securities are assumed to be held to maturity.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented on the following page is the minimum rating required by (where app licable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Investment Type Fair Value Less Than 1 Year 1 to 2 Years 2 to 3 Yea rs 3 to 4 Years Treasury obligations $ 18,914,949 $ 5,069,650 $ 6,652,800 $ 7,192,499 $ - State investment pool 63,443,131 63,443,131 - - - U.S. government sponsored enterprise securities 57,880,591 12,462,792 12,724,467 23,243,268 9,450,064 Money market mutual funds 3,232,530 3,232,530 - - - Medium-term notes 13,203,005 - 3,110,280 10,092,725 - Cash and investment held with fiscal agents:
Money market mutual funds 15,814,341 15,814,341 - - - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 281,537 281,537 - - - Mutual funds 78,936,288 78,936,288 - - - Total $ 251,706,372 $ 179,240,269 $ 22,487,547 $ 40,528,492 $ 9,450,064 Investment Maturities (in Years)
Investm ent Type Am ount
Minimum
Legal
Rating AAA AA+ AA A
Not
Rated
Treasury obligations $ 18,914,949 N/A $ - $ - $ - $ - $ 18,914,949 State investm ent pool 63,443,131 N/A - - - - 63,443,131 U.S. governm ent sponsored enterprise securities 57,880,591 N/A - 57,880,591 - - - Money m arket m utual funds 3,232,530 AAA 3,232,530 - - - - Medium -term notes 13,203,005 A - 2,115,180 7,420,655 3,667,170 - Cash and investm ent held with fiscal agents:
Money m arket mutual funds 15,814,341 AAA 15,814,341 - - - - Restricted investm ents held by Pension and OPEB Trusts:
Money m arket mutual funds 281,537 AAA 281,537 - - - - Mutual funds 78,936,288 AAA 78,936,288 - - - - Total $ 251,706,372 $ 98,264,696 $ 59,995,771 $ 7,420,655 $ 3,667,170 $ 82,358,080 Rating as of June 30, 2021
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
81 Note 3 – Cash and Investments (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on th e amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the eve nt 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 w ill not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements
that would limit the exposure to custodial credit risk for deposits or investments,
Disclosures Relating to Credit Risk
The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for c ash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City did not waive the collateral requirement for deposits insured by FDIC.
For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.
Investment in State Investment Pool
The City is a participant in Local Agency Investment Fund (“LAI F”) which is regulated by California Code Section 16429 under the oversight of the Treasurer of the State of Cali fornia. The City’s investments in LAIF at June 30, 2021 included a portion of pool funds invested in Structured Notes and Asset-Backed Securities:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated matu rity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchases to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit care receivables.
Reported % of
Issuer Investm ent type Am ount Maturity the Portfolio Federal Hom e Loan Bank U.S. governm ent sponsored enterprise secu rities$ 13,505,295 2021-2024 8.62% Federal Farm Credit Bank U.S. governm ent sponsored enterprise se curities 12,079,677 2023-2024 7.71% Fannie Mae U.S. governm ent sponsored enterprise securities 23,266 ,879 2021-2024 14.85% Freddie Mac U.S. governm ent sponsored enterprise securities 9,028 ,740 2022-2024 5.76% City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
82 Note 3 – Cash and Investments (Continued)
Investment in State Investment Pool (Continued)
As of June 30, 2021, the City had $63,443,131 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily availabl e. The investment in LAIF is reported at amortized cost.
The credit quality rating of LAIF is unrated as of June 30, 2021.
Restricted Investments Held by Pension and OPEB Trust
The City established a Section 115 Post-Employment Trust (the “Trust”) in 2018. The investment was held by the trustee and the trust is irrevocable. As of June 30, 2021, the City rep orted restricted investments held by the Pension Trust in the amount of $13,875,468.
The OPEB trust reported total investment of $65,342,357 at June 30, 2021. The OPEB Trust Plan is reported as a fiduciary fund.
Note 4 – Interfund Balances
A. Internal Balances
At June 30, 2021, the City had following internal receivable and payable, which represents internal service charges between the governmental activities and business-type activities:
B. Due From and To Other Funds
At June 30, 2021, the individual fund interfund receivable payable balances are as follows:
Internal Payable
Business-Type
Internal Receivable Activities
Governmental Activities $ 21,047,722
Culver City Housing Nonmajor
Authority Special Governmental
Due to Other Funds General Fund Revenue Fund Funds Total Governmental Funds:
Capital Improvement Grants $ 8,145,000 $ - $ - $ - $ - $ 8,145,000 Culver City Housing Authority 75,448 - - - - 75,448 Nonmajor Governmental Funds 1,422,638 25,674 - - 6,339 1,454,651 Proprietary Funds:
Municipal Fiber Network 2,736,035 - - - - 2,736,035 Internal Service Funds 1,958,365 - - - - 1,958,365 Total $ 14,337,486 $ 25,674 $ - $ - $ 6,339 $ 14,369,499 Due From Other Funds
Governmental Funds Proprietary Funds
Internal
Service Fund
Municipal Fiber
Network Fund
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
83 Note 4 – Interfund Balances (Continued)
B. Due From and To Other Funds (Continued)
Interfund balances are the result of short term borrowing to cover negative cash balances and operating shortages at June 30, 2021 as well as from the time lag between the dates that reimbursable expenditures occur and the dates the related revenues are received. All balances are expected to be reimbursed within the subsequent year.
The Successor Agency Fund owes Culver City Housing Authority Fund $7,982,045 for the SERAF which can only be paid pursuant to the maximum repayment amount defined in Health and Safety Code Section 34176(6)B. Because of this, the number of years it will take to repay this short-t erm loan to the Successor Agency is unknown. The payments will be based on the Ca lifornia Department of Finance approved Recognized Obligation Payments Schedule.
C. Advances To and From Other Funds
At June 30, 2021, the individual fund advances to from balances are as follows:
At June 30, 2021, the Municipal Fiber Network Fund owes the General Fund $14,680,229 including accrued interest of $277,634 to cover the initial construction costs, one year o f operating costs and for a number of initial lateral connections.
The advance is structured to allow repayment at the point where revenues exceed operating and depreciation costs.
The loan accrues interest at the rates ranging from 1.29% to 2.54%. The advance was increased to cover additional accrued interest of $87,774.
D. Transfers In and Out
Government-Wide Financial Statements
Advances to
Other
Funds
Advances From Other Funds General Fund
Proprietary Funds:
Municipal Fiber Network Fund $ 14,680,229
Transfers In
Business-Type
Transfers Out Activities
Governmental Activities $ 991,789
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
84 Note 4 – Interfund Balances (Continued)
D. Transfers In and Out (Continued)
Fund Financial Statements
For the year ended June 30, 2021, transfers in and out consisted of the following:
Transfers from Culver City Housing Authority Fund to General Fu nd in the amount of $817,225 were to support housing administration costs.
Transfers from General Fund to Capital Improvement Grants Acqui sition Fund in the amount of $619,000 were to provide funding sources for the capital improvement related projects.
Transfers from Nonmajor Governmental Funds (Special Gas Tax Fun d in the amount of $400,000, Culver City Parking Authority Fund in the amount of $1,200,000) to General Fund in the amount of $1,600,000 were to support street and parking related maintenance costs and parking related costs.
Transfers from Nonmajor Governmental Funds to Nonmajor Governmental Funds in the amount of $193,100 were to offset operating and personnel costs of the Paratransit Program reported under the Operating Grants Fund, consolidate parking related costs, and set up funds.
Transfers from Nonmajor Governmental Funds to Municipal Bus Lin es Fund in the amount of $1,291,789 were to pay for eligible transit related expenses.
Transfers from Municipal Bus Lines Fund to General Fund in the amount of $300,000 were to support police overtime services for Bus Safety.
Proprietary Fund
Nonmajor Municipal
Governmental Bus Lines
Transfers Out General Fund Funds Fund Total
Governmental Funds:
General Fund $ - $ 619,000 $ - $ - $ 619,000 Culver City Housing Authority
Fund 817,225 - - - 817,225 Nonmajor Governmental Funds 1,600,000 - 193,100 1,291,789 3, 084,889 Proprietary Funds:
Municipal Bus Lines Fund 300,000 - - - 300,000 Total $ 2,717,225 $ 619,000 $ 193,100 $ 1,291,789 $ 4 ,821,114 Transfers In
Governmental Funds
Capital
Improvement
Grants and
Acquisition
Fund
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
85 Note 5 – Notes Receivables
At June 30, 2021, the City had $18,996,853 including both Gover nmental Activities and Business-Type Activities in various notes receivable as follows:
A. Culver City Mobile Home Owners, Inc.
On December 17, 1990, the former Culver City Redevelopment Agency entered into a promissory note with Culver City Mobile Home Owners, Inc. with a maximum loan amount in the amount of $880,500 with 7% interest rate.
Following the dissolution of the former Culver City Redevelopment Agency, the loan was transferred to the Housing Authority. The balance of the promissory note with accrued interest at June 30, 2021 was $1,223,104.
B. MAP Loans
The Housing Authority provides loan programs to the home owners of the City. The deferred loans are to be repaid upon sales of the home. As of June 30, 2021, all outstanding balances totaled to $570,740.
Governmental Activities Amount
General Fund:
All others under $200,000 individually $ 86,098
Total General Fund 86,098
Culver City Housing Authority Special Revenue Fund:
Tilden Terrace - Residential 11,805,000
Habitat For Humanity of Greater Los Angeles 3,100,000
Culver City Mobile Hone Owners, Inc. 1,223,104
MAP Loans 570,740
Exceptional Children's Foundation Westside Opportunity Workshop 387,500 Home Ownership Made Easy 412,250
Exceptional Children's Foundation ERAS Loans 305,060
Subtotal 17,803,654
Less: allowance (2,327,914)
Total Culver City Housing Authority Special Revenue Fund, net 15 ,475,740 Nonmajor Funds:
CDBG Program Loans $ 38,820
Tilden Terrace - Commercial 3,395,000
Total Nonmajor Funds 3,433,820
Total Governmental Activities $ 18,995,658
Business-Type Activities:
Other Notes Receivable $ 1,195
Total Sewer Enterprise Fund 1,195
Total Business-Type Activities $ 1,195
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
86 Note 5 – Notes Receivables (Continued)
C. Tilden Terrace - Residential
On February 22, 2012, the former Culver City Redevelopment Agen cy entered into a promissory note with Tilden Terrace, L.P. in the amount of $11,805,000 with 3% interest rat e. Following the dissolution of the former Culver City Redevelopment Agency, the loan was transferred to the Housing Authority. The balance of the promissory note at June 30, 2021 was $11,805,000.
D. Home Ownership Made Easy
On April 20, 1992, the former Culver City Redevelopment Agency entered into a home loan agreement with Home Ownership Made Easy in the amount of $412,250 with no interest. Following the dissolution of the former Culver City Redevelopment Agency, the lo an was transferred to the Hous ing Authority. The balance of the home loan at June 30, 2021 was $412,250.
E. Exceptional Children's Foundation ERAS Loans
On October 1, 1990, the former Culver City Redevelopment Agency entered into loan agreement with Educational Resources and Services Center Home (“ERAS”), a not-for-profit o rganization for the development of 6-unit group home for the developmentally disabled low and moderate income p ersons. On May 12, 2008, an assignment and assumption agreement were entered into, and the loan was assigned by ERAS to Exceptional Children’s Foundation, another not-for-profit organization. Following the dissolution of the former Culver City Redevelopment Agency, the loan was transferred to the Housing Authority. As of June 30, 2 021, the outstanding balance of the loan was in the amount of $305,060.
F. Exceptional Children's Foundation Westside Opportunity Workshop
On February 11, 1991, the former Culver City Redevelopment Age ncy entered into Financing Assistance Agreement with Westside Opportunity Workshop (“WOW”), a not-for-profit organization, to purchase a property in the City in the amount of $390,500. The property is to be used as a group home for developmentally disabled low and moderate income persons. On March 8, 2014, an assignment and assumption agreement was entered into, and the loan was assigned by WOW to Exceptional Children’s Foundation, another n ot-for-profit organization. Following the dissolution of the former Culver City Redevelopment Agency, the loan was transferred to the Housing Authority.
As of June 30, 2021, the outstanding balance of the loan was in the amount of $387,500.
G. Habitat For Humanity of Greater Los Angeles
The Housing Authority provides loan programs to the homeowners of the City. The deferred loans are to be repaid upon the sale of the home. As of June 30, 2021, all outstanding balances totaled to $3,100,000.
H. Tilden Terrace - Commercial
On February 22, 2012, the former Culver City Redevelopment Agen cy entered into a promissory note with Tilden Terrace, L.P. in the amount of $3,395,000 with 3% interest rate. Following the dissolution of the former Culver City Redevelopment Agency, the loan was transferred to the Housing A uthority. The balance of the promissory note at June 30, 2021 was $3,395,000. The principal is not due until June 30, 2067.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
87 Note 6 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2021 are as follows:
Depreciation expense was charged to the following functions in the Statement of Activities:
Balance Balance
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated
Land $ 21,538,464 $ - $ - $ - $ 21,538,464 Construction in progress 27,242,271 17,785,007 (213) (1,009,484) 44,017,581 Total capital assets, not being depreciated 48,780,735 17,785,007 (213) (1,009,484) 65,556,045 Capital assets, being depreciated
Building 75,634,605 5,250 - - 75,639,855 Improvements 35,378,738 801,111 - 1,009,484 37,189,333 Machinery and equipment 50,994,418 2,055,513 (3,932,694) - 49,117,237 Infrastructure 82,794,503 87 - - 82,794,590 Total capital assets, being depreciated 244,802,264 2,861,961 (3,932,694) 1,009,484 244,741,015 Less accumulated depreciation:
Building (33,269,972) (1,464,863) - - (34,734,835) Improvements (20,620,737) (1,304,184) - - (21,924,921) Machinery and equipment (36,095,354) (3,495,024) 3,849,618 - (35,740,760) Infrastructure (28,481,962) (1,481,485) - - (29,963,447) Total accumulated depreciation (118,468,025) (7,745,556) 3,849,618 - (122,363,963) Total capital assets, being depreciated, net 126,334,239 (4,883,595) (83,076) 1,009,484 122,377,052 Governmental activities
capital assets, net $ 175,114,974 $ 12,901,412 $ (83,289) $ - $ 187,933,097 Governmental Activities
General government $ 622,209
Parks, recreation, and community services 657,092
Police 489,671
Fire 407,684
Community development 1,156,307
Public works 2,106,510
Internal service funds 2,306,083
Total $ 7,745,556
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
88 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for business-type activities for the year ended June 30, 2021 are as follows:
Depreciation expense was charged in the following functions in the Statement of Activities:
Balance Balance
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital assets, not being depreciated
Land $ 3,082,760 $ - $ - $ - $ 3,082,760 Construction in progress 12,349,648 10,727,981 - (6,438,385) 16,639,244 Total capital assets, not being depreciated 15,432,408 10,727,981 - (6,438,385) 19,722,004 Capital assets, being depreciated
Building 28,075,733 - - - 28,075,733 Improvements and other buildings 12,147,320 304,044 - - 12,451,364 Machinery and equipment 52,448,906 1,644,605 (858,082) 530,020 53,765,449 Furniture and fixtures 430,852 - - - 430,852 Infrastructure 36,593,609 178,241 - 5,908,365 42,680,215 Investment in Hyperion 26,605,373 - - - 26,605,373 Total capital assets, being depreciated 156,301,793 2,126,890 (858,082) 6,438,385 164,008,986 Less accumulated depreciation:
Building (13,407,197) (559,947) - - (13,967,144) Improvements and other buildings (7,005,148) (522,639) - - (7,527,787) Machinery and equipment (32,781,050) (3,111,978) 858,082 - (35,034,946) Furniture and fixtures (411,804) (5,642) - - (417,446) Infrastructure (8,698,275) (952,666) - - (9,650,941) Investment in Hyperion (17,928,552) (665,134) - - (18,593,686) Total accumulated depreciation (80,232,026) (5,818,006) 858,082 - (85,191,950) Total capital assets, being depreciated, net 76,069,767 (3,691,116) - 6,438,385 78,817,036 Business-type activities
capital assets, net $ 91,502,175 $ 7,036,865 $ - $ - $ 98,539,040 Business-Type Activities
Refuse Disposal $ 261,610
Municipal Bus Lines 3,486,815
Sewer Enterprise 1,840,916
Municipal Fiber Network 228,665
Total depreciation expense $ 5,818,006
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
89 Note 7 – Long-Term Liabilities
A. Governmental Activities
Summary of changes in governmental activities long-term liabil ities for the year ended June 30, 2021 are as follows:
The general fund and internal services funds are typically used to liquidate the compensated absences payable.
B. Business-Type Activities
Summary of changes in business-type activities long-term liabilities for the year ended June 30, 2021 are as follows:
The refuse disposal, municipal bus lines, and sewer fund are are typically used to liquidate the compensated absences payable.
Note 8 – Bonds Payable
Business-Type Activities
Wastewater Facilities Revenue Bonds, 2019 Series A
The Wastewater Facilities Revenue Bonds, 2019 Series A dated Oc tober 1, 2020 were issued in the amount of $19,360,000 with a final maturity date of September 1, 2049. The 2019 Bonds were issued to provide funds to (a) current refund all of the outstanding Wastewater Facilities Refunding Revenue Bonds, 2009 Series A, (b) finance certain capital improvements to the sewer system of the City, and (c) pay costs of issuance of the 2019 bonds.
The 2019 Bonds were being issued pursuant to the Indenture of T rust, dated as of October 2019, by and between the City and U.S. Bank National Association, as trustee. The 2019 B onds are limited obligations of the City payable solely from net revenues, which consist of revenues of the City’s sewe r system remaining after payment of operation and maintenance costs, and from amounts on deposit in certain funds and accounts created under the indenture. No reserve fund is established for the 2019 Bonds.
Balance Balance Due within Due in more
July 1, 2020 Additions Deletions June 30, 2021 One Year than One Yea r Compensated absences $ 13,057,462 $ 6,885,928 $ (7,565,533) $ 12,377,857 $ 2,961,299 $ 9,416,558 Claims and judgments 14,216,373 6,557,378 (4,213,762) 16,559,989 3,944,154 12,615,835 Total $ 27,273,835 $ 13,443,306 $ (11,779,295) $ 28,937,846 $ 6,905,453 $ 22,032,393 Balance Balance Due within Due in more
July 1, 2020 Additions Deletions June 30, 2021 One Year than One Yea r Compensated absences $ 1,717,796 $ 1,154,928 $ (1,372,395) $ 1,500,329 $ 928,262 $ 572,067 Wastewater Facilities Revenues Bonds,
2019 Series A 19,360,000 - (425,000) 18,935,000 740,000 18,195,000 Bond premium 3,515,525 - (119,848) 3,395,677 - 3,395,677 Total $ 24,593,321 $ 1,154,928 $ (1,917,243) $ 23,831,006 $ 1,668,262 $ 22,162,744 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
90 Note 8 – Bonds Payable (Continued)
Business-Type Activities (Continued)
The City has covenanted that it shall at all times prescribe, revise and collect rates, fees and charges for the use or service of the Sewer Enterprise Fund so that in each 12-month period such rates, fees and charges, together with other revenues reasonably expected to yield net revenues equal to at least 1.2 0 times the maximum annual debt service. The City is in compliance with such covenant at June 30, 2021.
The 2019 Bonds mature beginning September 1, 2021 with final payment of principal due on September 1, 2049. Interest rate is 4% in 2021 and 4% to 5% from 2022 to 2049.
Future amounts to amortize the 2019 Wastewater Revenue Bonds are as follows:
Fiscal Year Principal Interest Total
2022 $ 740,000 $ 835,000 $ 1,575,000
2023 805,000 800,075 1,605,075
2024 850,000 758,700 1,608,700
2025 895,000 715,075 1,610,075
2026 940,000 669,200 1,609,200
2027-2031 4,635,000 2,589,875 7,224,875
2032-2036 1,950,000 1,843,275 3,793,275
2037-2041 2,405,000 1,391,100 3,796,100
2042-2046 2,925,000 859,700 3,784,700
2047-2050 2,790,000 228,800 3,018,800
Total $ 18,935,000 $ 10,690,800 $ 29,625,800
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
91 Note 9 – Claims and Judgments
Self-Insurance
At June 30, 2021, the City was self-insured for workers’ compen sation claims, unemployment insurance, general automobile and public liability. The self- insurance program is accounted for in the Risk Management Internal Service Fund. At June 30, 2021, the City has recorded a liability in the amount of $16,559,989 for unpaid workers’ compensation and general liability claims, representing estimated amounts to be paid for actual claims and claims incurred but not reported, based upon actuarial evaluations for each plan.
The City pays all workers’ compensation claims up to $1,000,000 per occurrence with excess insurance overage up to statutory limits. Claims over a $1,000,000 self-insured retention up to statutory limits are covered by insurance policies secured through AON. The City als o pays all liability claims up to $3,000,000 per occurrence with excess insurance coverage up to $30,000,000 lim its. Claims over $3,000,000 self- insured retention up to $30,000,000 are covered by insurance policies secured through Aon.
During the past three fiscal years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no signifi cant reductions in pooled or insured liability coverage from the prior fiscal year.
Changes in the claims and judgments payable amounts in three years ended June 30, 2021 are as follows:
Balance at Current Y ear Balance at
Beginning of Claim s and End of
Fiscal Y ear Change in Claim Fiscal Y ear
Fiscal Y ear Liability Estimates Payments Liability
2018-19 $ 15,730,950 $ 2,432,895 $ (2,193,224) $ 15,970,621 2019-20 15,970,621 1,789,752 (3,544,000) 14,216,373 2020-21 14,216,373 6,557,378 (4,213,762) 16,559,989 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
92 Note 10 – Pension Plans
A. California Public Employees’ Retirement System (“CalPERS”)
At June 30, 2021, net pension liabilities and related deferred outflows of resources and deferred inflows of resources are as follows:
G ov ernm ental Business-T yp e
Activities Activities Total
Deferred outflow s of resources:
Pension contribution made after measurement date:
Miscellaneous $ 6,322,905 $ 3,454,280 $ 9,777,185 Safety 14,649,802 - 14,649,802 Difference between ex pected and actual ex perience:
Miscellaneous 930,227 508,195 1,438,422 Safety 3,287,463 - 3,287,463 Difference in projected and actual earnings on
pension investments:
Miscellaneous 1,261,630 689,244 1,950,874 Safety 2,099,346 - 2,099,346 Total deferred outflow s of resources $ 28,551,373 $ 4,651,719 $ 33,203,092 Net p ension liab ilities:
Miscellaneous $ 66,145,087 $ 36,135,859 $ 102,280,946 Safety 160,143,766 - 160,143,766 Total net p ension liab ilities $ 226,288,853 $ 36,135,859 $ 262,424,712 Deferred inflow s of resources:
Difference between ex pected and actual ex perience:
Miscellaneous $ 516,615 $ 282,232 $ 798,847 C hanges of assum ptions:
Safety 311,815 - 311,815 Total deferred inflow s of resources $ 828,430 $ 282,232 $ 1,110,662 Pension Expense:
Miscellaneous $ 8,461,622 $ 4,622,676 $ 13,084,298 Safety 23,685,961 - 23,685,961 $ 32,147,583 $ 4,622,676 $ 36,770,259 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
93 Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retire ment System (“CalPERS”), an agent multiple- employer public employee defined benefit pension plan. CalPERS acts as a common investment and administrative agent for participating public entities within the State of Cal ifornia. Benefit provisions and all other requirements are established by state statute and City ordinance. A full des cription of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding , but not accounting purposes), and membership information are listed in the J une 30, 2019 Annual Actuarial Va luation Report. This report and CalPERS’ audited financial statements are public ly available reports that can be obtained at CalPERS’ website under Forms and Publications.
Benefit Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries.
The plans’ provisions and benefits in effect for the measurement period ended June 30, 2020 are summarized as follows:
Tier I Tier II Tier II Tier III
Hired on or after
Hired between July January 1, 2013 On or after January 1, Prior to July 1, 2, 2011 - December (prior to PERS 2013 (New PERS Hire date 2011 2012 members) members)
Benefit formula 2.5% @ 55 2% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years s ervice 5 years service Benefit payments Monthly for life Monthly for life Monthly for lif eM o n t h l y f o r l i f e Retirement age 50-55 50-63 50-63 52-67
Monthly benefites, as a % of eligibile compensation 2.0%-2.5% 1.0 92%-2.418% 1.092%-2.418% 1.0%-2.5% Requred employee contribution rates 8.00% 7.00% 7.00% 6.25% Requred employer contribution rates 9.324% 9.324% 9.324% 9.324% City Miscellaneous Plan
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
94 Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
General Information about the Pension Plan (Continued)
Benefit Provided (Continued)
Tier I Tier II Tier II Tier III
Hired on or after
Hired between July January 1, 2013 On or after January 1, Prior to July 1, 2, 2011 - D ecember (prior to PERS 2013 (New PERS Hire date 2011 2012 members) members)
Benefit formula 3% @ 55 3% @ 55 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years s ervice 5 years service Benefit payments Monthly for life Monthly for life Monthly for lif e Monthly for life Retirement age 50-55 50-55 50-55 50-57
Monthly benefites, as a % of eligibile compensation 3% 2.4%-3.0% 2 .4%-3.0% 2.0%-2.7% Requred employee contribution rates Total 9%. 9% paid
by City (EPMC) for
management
Total 9%. 9% paid
by City (EPMC) for
management
Total 9%. 9%
paid by City
(EPMC) for
management
11.00%
Requred employer contribution rates Total 19.326%.
Management
employees pay 9%
of employer cost
through cost-sharing
Total 19.326%.
Management
employees pay 9%
of employer cost
through cost-sharing
Total 19.326%.
Management
employees pay 9%
of employer cost
through cost-
sharing
19.326%
City Safety Plan - Police
Tier I Tier II Tier II Tier III
Hired on or after
Hired between July January 1, 2013 On or after January 1, Prior to July 1, 2, 2011 - December (prior to PERS 2013 (New PERS Hire date 2011 2012 members) members)
Benefit formula 3% @ 55 3% @ 55 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years s ervice 5 years service Benefit payments Monthly for life Monthly for life Monthly for lif e Monthly for life Retirement age 50-55 50-55 50-55 50-57
Monthly benefites, as a % of eligibile compensation 2.4%-3.0% 2.4 %-3.0% 2.4%-3.0% 2.0%-2.7% Requred employee contribution rates Total 9%. 9% paid
by City (EPMC) for
management
Total 9%. 9% paid
by City (EPMC) for
management
Total 9%. 9%
paid by City
(EPMC) for
management
11.00%
Requred employer contribution rates Total 19.326%.
Management
employees pay 9%
of employer cost
through cost-sharing
Total 19.326%.
Management
employees pay 9%
of employer cost
through cost-sharing
Total 19.326%.
Management
employees pay 9%
of employer cost
through cost-
sharing
19.326%
City Safety Plan - Fire
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
95 Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
General Information about the Pension Plan (Continued)
Benefit Provided (Continued)
Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non -industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplie d by service. Industrial disability benefits are not offered.
An employee's beneficiary may receive the basic death benefit i f the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.0 percent per year, plus a lump sum in the amount of one-month salary for each completed year of current service, up to a maximum of six months’ salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rat e of compensation during the 12 months preceding death.
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.
Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.
Employees Covered by Benefit Terms
At June 30, 2019, the valuation date, the following employees were covered by the benefit terms:
Contributions
Section 20814(c) of the California Public Employees’ Retirement L a w ( “ P E R L ” ) r e q u i r e s t h a t t h e e m p l o y e r contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is requi red to contribute the differenc e between the actuarially determined rate and the contribution rate of employees. E mployer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
Miscellaneous Safety
Active employees 479 159
Transferred and terminated employeees 698 67 Retired Employees and Beneficiaries 639 292 Total 1,816 518
Plans
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
96 Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
For the measurement period ended June 30, 2020, the total pensi on liability was determined by rolling forward the June 30, 2019 total pension liability. The June 30, 2020 total pension liabilities were based on the following actuarial methods and assumptions:
Changes of Assumptions
There were no changes of assumptions in 2020.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investmen ts 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 t ook into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Usin g 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.
Actuarial Cost Method Entry Age Normal in accordance with the re quirements of GASB 68 Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.500%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table
1 Derived using CalPERS' Membership Data for all funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.5% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter 1 The mortality table used was developed based on CalPERS-specifi c data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of 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 Exp erience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
97 Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Net Pension Liability (Continued)
Long-Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as followed:
Discount Rate
The discount rate used to measure the total pension liability w as 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from pla n members will be made at the current member contribution rates and that contributions from employers will b e 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.
Liquidating Net Pension Liability
Pension liabilities are liquidated by all the funds.
Assum ed
Asset Real Return Real Return
Asset class
(1)
Allocation Ye ar s 1 -1 0
(2)
Ye ar s 1 1 +
(3)
Global equity 50.00% 4.80% 5.98%
Fixed income 28.00% 1.00% 2.62%
Inflation assets - 0.77% 1.81%
Private equity 8.00% 6,30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% - -0.92%
(1)
In the System 's ACFR, Fix ed Income is included in G lobal Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both G lobal Equity Securities and Global Debt Securities.
(2)
An ex pected inflation of 2.00% used for this period.
(3)
An ex pected inflation of 2.92% used for this period.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
98 Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Changes in the Net Pension Liability
The following tables show the changes in net pension liability recognized over the measurement period.
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2019 (Valuation Date) $ 323,035,003 $ 224,549,292 $ 98,485,711 Changes Recognized for the Measurement Period:
Service Cost 6,152,289 - 6,152,289 Interest on the total pension liability 22,694,983 - 22,694,983 Diferrence between expected and actual experience (1,298,128) - (1,298,128) Contributions from the employer - 10,092,870 (10,092,870) Contributions from employees - 2,804,801 (2,804,801) Net investment income - 11,172,797 (11,172,797) Benefit payments, including refunds of employee
contribution (14,801,355) (14,801,355) - Administrative expenses - (316,559) 316,559 Net Changes during July 1, 2019 to June 30, 2020 12,747,789 8,952,554 3,795,235 Balance at June 30, 2020 (Measurement Date) $ 335,782,792 $ 233,501,846 $ 102,280,946 Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2019 (Valuation Date) $ 409,918,431 $ 258,834,484 $ 151,083,947 Changes Recognized for the Measurement Period:
Service Cost 6,677,059 - 6,677,059 Interest on the total pension liability 28,910,372 - 28,910,372 Diferrence between expected and actual experience 1,935,553 - 1,935,553 Contributions from the employer - 13,635,532 (13,635,532) Contributions from employees - 2,334,755 (2,334,755) Net investment income - 12,857,771 (12,857,771) Benefit payments, including refunds of employee
contribution (21,703,315) (21,703,315) - Administrative expenses - (364,893) 364,893 Net Changes during July 1, 2019 to June 30, 2020 15,819,669 6,759,850 9,059,819 Balance at June 30, 2020 (Measurement Date) $ 425,738,100 $ 265,594,334 $ 160,143,766 Miscellaneous Plan
Increase (Decrease)
Safety Plan
Increase (Decrease)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
99 Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the measurement period ended June 30, 2020, the City incurr ed a pension expense of $13,084,298 and $23,685,961 for Miscellaneous and Safety plans, respectively.
As of measurement date of June 30, 2020, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
1% Decrease Current Rate 1% Increase
Net Pension Liability (6.15%) (7.15%) (8.15%)
Miscellaneous Plan $ 145,982,301 $ 102,280,946 $ 66,056,949 Safety Plan $ 216,589,306 $ 160,143,766 $ 113,720,348 Discount Rate
Deferred outflows Deferred inflows
of resources of resources
Pension contributions made after measurement date $ 9,777,185 $ - Difference between expected and actual experience 1,438,422 (798,847) Net difference between projected and actual earning on
pension plan investments 1,950,874 - Balance at June 30, 2020 (Measurement Date) $ 13,166,481 $ (798,847) Miscellaneous Plan
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
100
Note 10 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan par ticipants (active, inactive, and retired). The EARSL for the miscellaneous plan and safety plan for the 2019-20 measurement period is 2.6 and 3.9 years, which was obtained by dividing the total service years of 4,711 and 2,008 (the sum of remaining service lifetime s of the active employees) by 1,788 and 518 (the total number of participants: active, inactive, and retired), respectively.
The $9,777,185 and $14,649,802 reported as deferred outflows of resources related to pension resulting from the City’s contributions subsequent to the measurement date during the year ended June 30, 2021 will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Deferred outflow s Deferred inflow s
of resources of resources
Pension contributions m ade after m easurem ent dat $ 14,649,802 $ - Difference between ex pected and actual ex perience 3,287,463 - Changes of assum ptions - (311,815) Net difference between projected and actual earning on
pension plan investments 2,099,346 - Balance at June 30, 2020 (Measurement Date) $ 20,036,611 $ (311,815) Safety Plan
Deferred outflows/ Deferred outflows/
Measurement Period (Inflows) of Resources (Inflows) of Resources Ended June 30 Miscellaneous Plan Safety Plan
2021 $ 124,422 $ 241,880
2022 335,114 1,957,967
2023 1,179,364 1,795,409
2024 951,549 1,079,738
Total $ 2,590,449 $ 5,074,994
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
101
Note 10 – Pension Plans (Continued)
B. Public Agency Retirement Services (“PARS”)
The City established the City o f Culver City Alternative Retire ment System, with PARS. Under PARS, the City participates in the defined contribution plan to benefit part t ime, seasonal and temporary employees not currently eligible for CalPERS. Pursuant to the PARS agreement, the PARS trust is administered by Phase II Systems with Union Bank of California acting as trustee. In accordance with the PARS trust agreement, the City does not manage the plan’s assets or perform distributions to employees out of the plan. Phase II Systems and Union Bank of California perform these functions.
The PARS trust, authorized under the Internal Revenue Code Section 401(a) and Government Code Sections 53215- 53224 and 2000, maintains the following general provisions.
Eligibility – Part-time employees who work less than 1,000 hours per fiscal year Eligible employees shall participate while not accruing a benefit under social security or PERS. Eligible employees and the City contribute 4 and 3.5 percent of compensation on a pre-tax basis, respectively. Contributions and distributions of the plan are not obligations of the City, and Amendments to the plan are subject to the discretion of the City
The City recognized pension expenses related to PARS plan in the amount of $82,188 for the year ended June 30, 2021.
Note 11 – Other Postemployment Benefits (“OPEB”)
At June 30, 2021, net OPEB liabilities and related deferred outflows of resources and deferred inflows of resources are as follows:
Governmental Business-Type
Activities Activities Total
Deferred outlows of resources
Change in assumption $ 2,080,734 $ 309,266 $ 2,390,000 Total deferred outflows of resources $ 2,080,734 $ 309,266 $ 2,390,000 Net OPEB liabilites: $ 47,185,078 $ 7,013,266 $ 54,198,344 Total net OPEB liabilites $ 47,185,078 $ 7,013,266 $ 54,198,344 Deferred inflows of resources
Net diferrence between projected and actual
earning on plan investments $ 7,783,888 $ 1,156,944 $ 8,940,832 Change in assumption 1,232,555 183,199 1,415,754 Difference between expected and actual experience 14,955,395 2,222,866 17,178,261 Total deferred inflows of resources $ 23,971,838 $ 3,563,009 $ 27,534,847 Pension Expense (Credit) $ (622,166) $ (92,475) $ (714,641) City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
102
Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)
Plan Description
In addition to the retirement plan described in Note 10, the Ci ty of Culver City’s Retiree Health Insurance Program (“OPEB Plan”) provides retiree healthcare benefits for eligible City employees and their spouses who retire with CalPERS pension benefits immedia tely upon termination of employ ment from the City. Benefit provisions are established and may be amended by the City Council.
Under the program, the City pays a portion of the premiums for retiree medical coverage as follows:
Participants who retired before January 1, 2007 are eligible for a City contribution up to 100% of the average of Kaiser Permanente Health Plans and PERS Care Premiums.
Participants who retired between January 1, 2007 and December 31, 2011 are eligible for a City contribution up to 70% of the PERS Care premium or 95% of the premium for all other plans. Additionally, participants meeting the following additional criteria are also eligible for this be nefit level (excluding members of the Culver City Police Officers Association):
o Employed with the City as of July 1, 2011.
o Earned a minimum of twenty years of CalPERS service credit (excluding additional retirement service credit purchased under California Government Code Section 20909 , i.e., “Air-Time”) as of December 31, 2011.
o Earn twenty-five years of service with Culver City and retire from the City prior to January 1, 2022.
Participants employed by the City as of July 1, 2011 and retired after December 31, 2011 earning a minimum of five years of City service are eligible for the following benefit:
o A monthly premium reimbursement of up to $649 for single coverage, increasing by up to 4% per year.
o An additional monthly reimbursement of up to $547 for his or he r enrolled spouse/domestic partner/dependent based on a vesting schedule. This additional reimbursement ends when a spouse or domestic partner becomes Medicare eligible, or when a dependent ages out. This amount is subject to an annual increase of up to 4%.
o Participants with at least twenty years of City service that we re members of the Culver City Police Officers Association with more than one enrolled dependent are eligible for an additional $300 per month reimbursement.
Employees hired after July 1, 2011 are not considered participants, and are only eligible for the legally required Public Employees’ Medical and Hospital Care Act minimum, as stipulated by CalPERS.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
103
Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)
Eligibility
Employees of the City are eligible for retiree health benefits if they are between 50-55 years of age as of the last day of work prior to retirement and are a vested member of CalPERS. Me mbership in the plan consisted of the following at June 30, 2019, the date of the latest actuarial valuation:
Contribution
The obligation of the City to contribute to the plan is established and may be amended by the City Council. For the fiscal year ended June 30, 2021, the C ity’s average contribution rate was not applicable. Employees are not required to contribute to the plan.
Net OPEB Liability
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 as of June 30, 2019.
Actuarial assumptions
The total OPEB liability in the June 30, 2019 actuarial valuati on was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2018 through June 30, 2019.
Active plan members 634
Inactive employees or beneficiaries currently
receiving benefit payments 561
Inactive meployees entitled to but not yet
receiving benefit payments 75
Total 1,270
Discount rate 6.50%
Inflation 2.75%
Aggregate payroll increases 3.00%
Expected long-term investment rate of return 6.50%
Mortality, termination, and disability CalPERS 1997-2015 Experie nce Study Mortality improvement Mortality projected fully generational wit h Scale MP-2019 PEM HCA Minimum Increases 4.25% annually
Medical trend Non-Medicare: 7.25% for 2021, decreasing to an ult imate rate of 4.00% in 2076; Medicare: 6.30% for 2021, decreasing to an ultimate rate of 4.00% in 2076 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
104
Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)
Net OPEB Liability (Continued)
The long-term expected rates of return on OPEB plan investments were presented as geometric means and 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 infl ation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rat e of return by weighting the expected future real rates of return by the target asset allocation percentage and b y adding expected inflation . The target allocation and best estimates of arithmetic real rates of return for each majo r asset class are summarized in the following table:
Discount Rate
The discount rate used to measure the total OPEB liability was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all peri ods of projected benefit payments to determine the total OPEB liability.
Target Expected Real
Allocation Rate of Return
Asset Class Component:
Domestic Equity 44% 4.53%
Foreign Equity 23% 4.93%
Fixed Income 33% 1.47%
Assumed long-term rate of inflatio
n 2.75%
Assumed long-term investment expenses 0.40%
Expected long-term net rate of return, rounded 6.50%
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
105
Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)
Net OPEB Liability (Continued)
Liquidating Net OPEB Liability
The OPEB liabilities are liquidated by all the funds.
Change in the Net OPEB Liability
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the City, as w ell as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.50 percent) or 1-percentage- point higher (7.50 percent) than the current discount rate:
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 $ 115,998,695 $ 50,791,967 $ 65,206,728 Changes Recognized for the Measurement Period:
Service Cost 2,120,093 - 2,120,093 Interest on the total OPEB liability 7,480,807 - 7,480,807 Contributions from the employer - 6,071,864 (6,071,864) Net investment income - 14,566,766 (14,566,766) Benefit payments (6,058,893) (6,058,893) - Administrative expenses - (29,346) 29,346 Net Changes during July 1, 2020 to June 30, 2021 3,542,007 14,550,391 (11,008,384) Balance at June 30, 2021 $ 119,540,702 $ 65,342,358 $ 54,198,344 Increase (Decrease)
1% Decrease Current Rate 1% Increase
(5.50%) (6.50%) (7.50%)
Net OPEB Liability $ 68,817,478 $ 54,198,344 $ 42,057,348 Discount Rate
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
106
Note 11 – Other Postemployment Benefits (“OPEB”) (Continued)
Change in the Net OPEB Liability (Continued)
Sensitivity of the net OPEB liability to changes in the health care cost trend rates
The following presents the net OPEB liability of the City, as w ell as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-pe rcentage-point lower (6.25 percent decreasing to 4.00 percent) or 1-percentage-point higher (8.25 percent decreasing to 4.00 percent) than the current healthcare cost trend rates:
OPEB plan fiduciary net position. Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued plan financial report.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2021, the City recognized OP EB expense of $(714,641). At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the e xpected average remaining service life. The expected average remaining service life is 6.0 years, which was determined as of July 1, 2020, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms as of the valuation date.
Amount reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:
1% Decrease Current Trend 1% Increase
Net OPEB Liability $ 40,824,902 $ 54,198,344 $ 69,309,237 Healthcare Trend Rate
Deferred Outflow s Deferred Inflow s
of Resources of Resources
Net difference between projected and actual
earning on plan investments $ - $ (8,940,832) Difference between ex pected and actual ex perience - (17,178,261) Changes in assumption 2,390,000 (1,415,754) Total $ 2,390,000 $ (27,534,847) Measurement Period Deferred Outlows/
Ending June 30 (Inflows) of Resources
2022 $ (6,755,941)
2023 (6,631,943)
2024 (5,864,048)
2025 (5,892,915)
Total $ (25,144,847)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
107
Note 12 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan crea ted in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits employees to defer a portion of their salary until future years. In addition, there is a 401(a) plan allowed for one individual.
All amounts of compensation defe rred under the plan, all proper ty and rights purchased with those amounts, and all income attributable to those amounts are held in trust for the exclusive benefit of the employee participants and their beneficiaries. Therefore, the accumulated assets of the plan ar e not reported in the funds of the City. Pursuant to guidelines applicable to 401(a) plans, these assets are also not reported.
While the City has full power and authority to administer and to adopt rules and regulations for the plan, all investment decisions under the plan are the responsibility of the plan participants. 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. Under certain circumstances, employees may modify their arrange ments with the plan to provid e for greater or lesser contributions or to terminate their participation. If participants retire under the plan or terminate service with the City, they may be eligible to receive payments under the plan in accordance with provisions thereof. In the event of serious financial emergency, the City may approve, upon request, withdrawals from the plan by participants, along with their allocated contributions. The plan assets are not included in the accompanying financial statements.
Note 13 – Contingencies
Litigations
The City is a defendant in various lawsuits which have arisen i n the normal course of business. While damages are alleged in some of these actions, their outcome cannot be predicted with certainty.
Covid-19 Pandemic
In December 2019, a novel strain of coronavirus has spread around the world resulting in business and social disruption.
The coronavirus was declared a P ublic Health Emergency of Inter national Concern by the World Health Organization on January 30, 2020. The opera tions and business results of Cit y could potentially be adversely affected by this global pandemic. The extent to which the coronavirus may impact business activity or investment results will depend on future developments, which are highly uncertain and cannot be predicte d, including new information which may emerge concerning the severity of the coronavirus and the actions requ ired to contain the coronavirus. The ultimate financial impact and duration cannot be estimated at this time.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
108
Note 14 – Classification of Fund Balances
At June 30, 2021, fund balances are classified as follows:
NOTE 15 – Subsequent Events
The City has evaluated events subsequent to June 30, 2021 to as sess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through Ja nuary 28, 2022, the date the financial statements were available to be issued. Based upon this evaluation, it was dete rmined that no subsequent events occurred that require recognition or additional disclosure in the financial statements.
Culver City Capital Capital Nonmajor Total
General Housing Improvement and Improvement Governmental Governmenta l Fund Authority Acquisition Grants Funds Funds
Nonspendable
Notes receivable $ 86,098 $ - $ - $ - $ - $ 86,098 Advances to other funds 14,680,229 - - - - 14,680,229 Total nonspendable 14,766,327 - - - - 14,766,327 Restricted
Road construction - - - - 8,132,492 8,132,492 Housing authority - 39,303,362 - - 1,025,326 40,328,688 Public safety - - - - 1,088,953 1,088,953 Other purposes - - - - 270,725 270,725 Redevelopment - - - - 8,154,602 8,154,602 Street maintenance - - - - - - Equipment purchases - - - - 820,856 820,856 Construction of capital assets - - 1,746,332 - 1,136,163 2,882,495 Community development - - - - 4,929,427 4,929,427 Pension trust 13,875,468 - - - - 13,875,468 Total restricted 13,875,468 39,303,362 1,746,332 - 25,558,544 80,483,706 Committed
Contingency 39,743,416 - - - - 39,743,416 Facility Planning 11,631,606 - - - 9,209,214 20,840,820 Recreation facilities 1,626,651 - - - 14,360,977 15,987,628 Total committed 53,001,673 - - - 23,570,191 76,571,864 Assigned
Encumbered contracts 5,234,293 - - - - 5,234,293 Total assigned 5,234,293 - - - - 5,234,293 Unassigned 21,930,270 - - (7,810,426) (1,186,942) 12,932,902 Total fund balance $ 108,808,031 $ 39,303,362 $ 1,746,332 $ (7,810,426) $ 47,941,793 $ 189,989,092 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
109
Note 16 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency
On June 29, 2011, Assembly Bills 1x 26 (the “Dissolution Act”) and 1x 27 (the “Continuation Act”) were enacted as part of the FY 2011-12 state budget package. The Dissolution Ac t required each California redevelopment agency to suspend nearly all activities except to implement existing contracts, meet already-incurred obligations, preserve its assets and prepare for impending dissolution. Assembly Bill 1x 27 prov ided a means for redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative Redevelopment Program.
The League of California Cities and the California Redevelopmen t Association (CRA) filed a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petiti oning the California Supreme Court to overturn the Dissolution Act and Assembly Bill 1x 27 on the grounds that these bills violate the California Constitution.
On December 29, 2011, the California Supreme Court upheld the Dissolution Act and struck down the Continuation Act.
On June 27, 2012, as part of the FY 2012-13 state budget packag e, the Legislature passed and the Governor signed AB 1484, which made technical and substantive amendments to the Dissolution Act based on experience to-date at the state and local level in implementing the Dissolution Act.
Under the Dissolution Act, each California redevelopment agency (each a “Dissolved RDA”) was dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA, together with other designated entities, have initiated the process under the Dissolution Act to unwind the affairs of the Dissolv ed RDA. A Successor Agency was created for each Dissolved RDA which is the sponsoring community of the Dissolved RDA unless it elected not to serve as the Successor Agency. On January 9, 2012, the City ado pted a Resolution electing to serve as the Successor Agency to the Culver City Redevelopment Agency.
The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to assume the housing functions and take over the certain housing assets of the Disso lved RDA. AB 1484 modified and provided some clarifications on the treatment of housing assets under the Dis solution Act. The Culver City Housing Authority elected to serve as the Housing Successor Agency on January 9, 2012. Prior to February 1, 2012, the activities of the Dissolved RDA were reported in the govern mental funds statements of the C ity. After the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA are reported in a fiduciary fund in the financial statements of the City.
All other assets, obligations, and activities of the Dissolved RDA have also been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
The Dissolution Act and AB 1484 also establish roles for the County Auditor-Controller, the California Department of Finance (the “DOF”) and the California State Controller’s offic e in the dissolution process and the satisfaction of enforceable obligations of the Dissolved RDAs.
The County Auditor-Controller is charged with establishing a Re development Property Tax Trust Fund (the “RPTFF”) for each successor agency and de positing into the RPTFF for eac h six-month period the amount of property taxes that would have otherwise been paid to the Dissolved RDA as property tax increment. The deposit in the RPTFF fund is to be used to pay to the successor agency the amounts due on the s uccessor agency’s enforceable obligations for the upcoming six-month period.
The successor agency is required to prepare an annual recognized obligation payment schedule (the “ROPS”) approved by the oversight board setting forth the amounts due for each enforceable obligation during each of two six month periods during the fiscal year. The ROPS is submitted to the DOF for ap proval. The County Auditor-Controller will make payments to the successor agency from the RPTFF based on the RO PS amount approved by the DOF. The ROPS is
prepared in advance for the enforceable obligations due over the next twelve months.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
110
Note 16 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
The process of making RPTFF deposits to be used to pay enforcea ble obligations of the Dissolved RDA will continue until all enforceable obligations have been paid in full and al l non-housing assets of the Dissolved RDA have been liquidated.
The State Controller of the State of California has been direct ed to review the propriety of any transfers of assets between Dissolved RDA and other public bodies that occurred aft er January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to b e transferred to the public body designated as the successor agency.
CAPITAL ASSETS
Summary of changes in capital asset for the year ended June 30, 2021 is as follows:
DUE TO THE CULVER CITY HOUSING AUTHORITY
The advance of $7,982,045 for SERAF can only be repaid pursuant to the maximum repayment amount defined in Health and Safety Code Section 34176(6 )(B). Because of this, the numbe r of years it will take to repay this short-term loan is unknown.
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Capital assets, not being depreciated
Land $ 8,316,229 $ - $ - $ 8,316,229 Total capital assets, not being depreciated 8,316,229 - - 8,316,229 Capital assets, being depreciated
Building 3,429,740 - - 3,429,740 Improvements 363,598 - - 363,598 Infrastructure 2,606,379 - - 2,606,379 Total capital assets, being depreciated 6,399,717 - - 6,399,717 Less accumulated depreciation:
Building (848,010) (68,596) - (916,606) Improvements (216,440) (18,179) - (234,619) Infrastructure (570,891) (52,127) - (623,018) Total accumulated depreciation (1,635,341) (138,902) - (1,774,243) Total capital assets, being depreciated, net 4,764,376 (138,902) - 4,625,474 Fiduciary Fund
capital assets, net $ 13,080,605 $ (138,902) $ - $ 12,941,703 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
111
Note 16 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
LONG-TERM LIABILITIES
Summary of changes in long-term liabilities for the year ended June 30, 2021 is as follows:
2011 Tax Allocation Revenue Bonds Series A
On March 4, 2011, the Agency issued $13,827,887 of Series A Tax Allocation Capital Appreciation Bonds. The proceeds were used to: 1) pay costs of issuance 2) provide a reserve, an d 3) finance certain redevelopment activity within the project area.
These bonds are secured and payable from tax increment revenue of the Agency.
In November 2017, the Agency issued a total of $98,435,000 in bonds consisting of $74,785,000 in 2017 Series A Tax- Exempt Bonds and $23,650,000 in 2017 Series B Taxable Bonds. A portion of the 2017 Series A and B Bonds were used to defease all of the outstanding $6,739,593 original prin cipal amount Culver City Redevelopment Agency Tax Allocation Capital Appreciati on Bonds, 2011 Series A maturing o n and after November 1, 2025, with an aggregate accreted outstanding value of $11,644,155 as of December 4, 2017.
Concurrent with the issuance of the 2017 Bonds, the Successor A gency irrevocably directed the trustee to transfer approximately $9.3 million on depo sit with the trustee to the P rincipal Account in order to pay scheduled future debt service on the 2011A Bonds maturing November 1, 2019 through No vember 1, 2022 with original principal in the amount of $4,894,109 and accreted value of $7,735,931 as of December 4, 2017. As result of the refunding, outstanding original principal for the 2011 Tax Allocation Capital Apprecia tion Bonds, Series A was in the amount of $2,194,185 with accreted value of $3,621,934 as of December 4, 2017.
Per the terms of the bond indenture, a reserve of $1,095,033 is required to be maintained. At June 30, 2021, the reserve with fiscal agent was in the amount of $1,410,537 and this amount will be applied to the November 1, 2024 debt service payment. The total amount of the 2011 TAB Series A outstanding as of June 30, 2021 was $2,194,185. The accreted interest amount on the Capital Appreciation Bonds at June 30, 2021 was $2,521,985.
Balance Balance Due within Due in more
July 1, 2020 Additions Deletions June 30, 2021 One Year than One Yea r 2011 A Tax Exempt Tax Allocation
Revenue Bonds (CABS) $ 2,194,185 $ - $ - $ 2,194,185 $ - $ 2,194,185 Accreted Interest on 2011 A Tax
Allocation 2,185,945 336,040 - 2,521,985 - 2,521,985 2017 A Tax Allocation Bonds 74,785,000 - (9,560,000) 65,225,000 11,530,000 53,695,000 2017 B Tax Allocation Bonds 1,560,000 - (1,560,000) - - - Subtotal 80,725,130 336,040 (11,120,000) 69,941,170 11,530,000 58,411,170 Unamortized original issue discount (8,024) - 8,024 - - - Unamortized original issue premium 10,711,043 - (1,285,325) 9,425,718 - 9,425,718 Total $ 91,428,149 $ 336,040 $ (12,397,301) $ 79,366,888 $ 11,530,000 $ 67,836,888 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
112
Note 16 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
LONG-TERM LIABILITIES (CONTINUED)
2011 Tax Allocation Revenue Bonds Series A (Continued)
The annual debt service requirements on the remaining 2011 Tax Allocation Revenue Bonds Series A are as follows:
2017 Tax Allocation Refunding Bonds Series A and B
On December 4, 2017, the Agency issued a total of $98,435,000 i n bonds consisting of $74,785,000 in 2017 Series A Tax-Exempt Bonds and $23,650,000 in 2017 Series B Taxable Bonds . The Bonds were issued to refund all of the outstanding 1999A, 2002A, 2004A, a nd 2005A bonds and part of 20 11A bond and 2011B bonds. The transaction achieves 33 million in debt service cash flow savings, or $18 m illion in net present value savings. Total outstanding balance of the defeased debt was in the amount of $22,737,480.
2017 Series A Tax Allocation Bonds mature beginning November 1, 2020 with final payment of principal due on November 1, 2028. Interest rate is 5% from 2021 to 2028.
2017 Series B Tax Allocation Bonds mature beginning November1, 2018 with final payment of principal due on November 1, 2020. Interest rate was 2% in 2020. This debt was fully paid on November 1, 2020.
Both 2017 Series A and Series B Tax Allocation Bonds are secure d by and payable from tax revenues and were issued in denominations of $5,000 and are not subject to optional redemption prior to their maturity dates.
The annual debt service requirements on these bonds are as follows:
Fiscal Year Principal Interest Total
2022 $ - $ - $ -
2023 308,696 294,896 603,592
2024 1,075,621 1,063,778 2,139,399
2025 809,868 827,271 1,637,139
Total $ 2,194,185 $ 2,185,945 $ 4,380,130 2011 Series A Tax Allocation Revenue Bond
Fiscal Year Principal Interest Total
2022 $ 11,530,000 $ 2,973,000 $ 14,503,000 2023 11,165,000 2,405,625 13,570,625
2024 9,770,000 1,882,250 11,652,250
2025 10,495,000 1,375,625 11,870,625
2026 5,870,000 966,500 6,836,500
2027 - 2029 16,395,000 1,256,375 17,651,375 Total $ 65,225,000 $ 10,859,375 $ 76,084,375 2017 A Tax Allocation Bonds
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
113
Note 16 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
LONG-TERM LIABILITIES (CONTINUED)
Pledged Revenues for Tax Allocation Bonds
The Trust has a number of Tax Allocation bonds outstanding that are collateralized by the pledging of property tax increment revenues. The amount and term of the remainder of the se commitments are indicated in the debt service to maturity tables presented. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes.
NOTE 17 – Governmental Accounting Standards Board (GASB) Statements Issued, Not Yet Effective
The Governmental Accounting Standards Board (GASB) has issued s everal pronouncements, that have effective dates that may impact future financial presentations. Management has not yet determined any impact the implementation of the following statements may have on the financial statements of the City.
GASB No. 87
In June 2017, the Governmental Accounting Standards Board issue d Statement No. 87 “Leases”. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
GASB No. 89
In June 2018, the Governmental Accounting Standards Board issue d Statement No. 89 “Accounting for Interest Cost Incurred before the End of a Construction Period”. The requirements of this Statement are effective for reporting periods beginning after December 15, 2020.
GASB No. 91
In May 2019, the Governmental Accounting Standards Board issued Statement No. 91, “Conduit Debt Obligations.” The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
GASB No. 92
In January 2020, the Governmenta l Accounting Standards Board is sued Statement No. 92, “Omnibus 2020.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
GASB No. 93
In March 2020, the Governmental Accounting Standards Board issu ed Statement No. 93, “Replacement of Interbank Offered Rates.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
GASB No. 94
I n M a y 2 0 2 0 , t h e G o v e r n m e n t a l Accounting Standards Board issued Statement No. 94, “Public-Private and Public- Public Partnerships and Availability Payment Arrangements.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
114
NOTE 17 – Governmental Accounting Standards Board (GASB) Statements Issued, Not Yet Effective
GASB No. 96
In May 2020, the Governmental Accounting Standards Board issued Statement No. 96, “Subscription-Based Information Technology Arrangements.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
GASB No. 97
In June 2020, the Governmental Accounting Standards Board issue d Statement No. 97, “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plan – an amendment of GASB Statements No. 14, 84, and a suppression of GASB Statement No. 32.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
Required Supplementary Information
City of Culver City, California
115
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
116
Measurement period 2013-14 1 2014-15 2015-16 2016-17 2017-18 T otal pension liability
S ervice cost 4,942,736 $ 4,911,950 $ 5,035,714 $ 5,654,517 $ 5,840,702 $ Interest 17,556,597 18,310,677 19,172,836 19,754,857 20,506,704 Changes of benefit terms - - - - 143,405 Changes of assumptions - (4,429,450) - 16,345,262 (2,546,031) Differences between expected and actual experience - (1,386,409) (294,797) (3,129,611) 164,388 Benefit payments, including refunds of employee contributions (1 1,157,496) (11,644,085) (11,795,228) (12,339,176) (13,158,591) Net change in total pension liability 11,341,837 5,762,683 12,118,525 26,285,849 10,950,577 T otal pension liability - beginning 237,195,341 248,537,178 254,299,861 266,418,386 292,704,235 To t a l pension liab ilit y - endin g (a) 248,537,178$ 254,299,861 $ 266,418,386 $ 292,704,235 $ 303,654,812 $ Pension fiduciary net position
Contributions - employer 6,638,283 $ 5,915,829 $ 6,864,716 $ 7,347,239 $ 7,730,160 $ Contributions - employee 3,171,457 2,494,358 2,591,939 2,680,792 2,694,597 Net investment income 2 27,091,117 4,025,216 922,415 20,132,561 16,834,787 Benefit payments, including refunds of employee contributions (1 1,157,496) (11,644,085) (11,795,228) (12,339,176) (13,158,591) Net plan to plan resource movement - - (69) (25,198) (495) Administrative expense - (207,377) (112,253) (269,686) (311,946) Other miscellaneous expense 3 - - - - (592,391) Net change in plan fiduciary net position 25,743,361 583,941 (1,528,480) 17,526,532 13,196,121 Plan fiduciary net position - beginning 157,861,480 183,604,841 184,188,782 182,660,302 200,186,834 Plan fiduciar y net position - endin g (b) 183,604,841$ 184,188,782 $ 182,660,302 $ 200,186,834 $ 213,382,955 $ Plan net pension liabilit y - endin g (a) - (b) 64,932,337$ 70,111,079 $ 83,758,084 $ 92,517,401 $ 90,271,857 $ Plan fiduciary net position as a percentage
of the total pension liabilit y 73.87% 72.43% 68.56% 68.39% 70.27% Covered payroll 4
29,867,279$ 31,064,702 $ 32,319,580 $ 33,069,286 $ 34,541,974 $ Plan net pension liability as a percentage of covered payroll 217.40% 225.69% 259.16% 279.77% 261.34% 2 Net of administrative expenses for 2013-14.
1 Historical information is presented only for measurement periods for whi ch GASB No. 68 is presented for periods after GASB 68 implementation in 2013 -14.
Additional years of information will be displayed as it becomes available.
Schedule of Changes in Net Pension Liabilities and Related Ratios Year Ended June 30, 2021
Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
California Public Employees' Retirement System ("CalPERS") - Mi scellaneous Plan 4 Includes one year’s payroll grow th using 2.875 percent payroll grow th ass umption for fiscal years ended June 30, 2019-20; 2.75 percent payroll grow th assumption for fiscal years ended June 30, 2018-19; 3.00 percen t payroll grow th assumption for fiscal years ended June 30, 201 4-17. 3 During Fiscal Year 2017-18, as a result of Governmental Accounting Standa rds Board S tatement (G AS B) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (G AS B 75), CalPERS repo rted its proportionate share of activity related to postemployment benef its for participation in the S tate of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of G AS B 75.
Ad d itionally, CalPERSemployees participate in variou s S tate of Califor nia agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its prop ortionate share of activity related to pensions in accordance w ith G AS B S t atement No. 68, Accounting and Financial Reporting for Pensions (G AS B 68).
117
Measurement period 2018-19 2019-20
T otal pension liability
S ervice cost 6,100,488$ 6,152,289 $
Interest 21,824,037 22,694,983
Changes of benefit terms 48,596 -
Changes of assumptions - -
Differences betw een expected and actual experience 5,548,202 (1,298,128) Benefit payments, including refunds of employee contributions (1 4,141,132) (14,801,355) Net change in total pension liability 19,380,191 12,747,789 T otal pension liability - beginning 303,654,812 323,035,003 To t a l pension liabilit y - endin g (a) 323,035,003$ 335,782,792 $ Pension fiduciary net position
Contributions - employer 8,759,782$ 10,092,870 $
Contributions - employee 2,735,156 2,804,801
Net investment income 2 13,964,311 11,172,797
Benefit payments, including refunds of employee contributions (1 4,141,132) (14,801,355) Net plan to plan resource movement - - Administrative expense (152,275) (316,559)
Other miscellaneous expense 3 495 -
Net change in plan fiduciary net position 11,166,337 8,952,554 Plan fiduciary net position - beginning 213,382,955 224,549,292 Plan fiduciar y net position - endin g (b) 224,549,292$ 233,501,846 $ Plan net pension liabilit y - endin g (a) - (b) 98,485,711$ 102,280,946 $ Plan fiduciary net position as a percentage
of the total pension liabilit y 69.51% 69.54%
Covered payroll 4
35,965,617$ 36,664,416 $
Plan net pension liability as a percentage of cov ered payroll 273.83% 278.97% Notes to Schedule:
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2021
Last Ten Fiscal Years
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies for voluntary benefit changes as w ell as any offers of Tw o Years Additional S ervice Credit (a.k.a . Golden Handshakes).
California Public Employees' Retirement System ("CalPERS") - Mi scellaneous Plan Changes of Assumptions: None in 2019 and 2020. In 2018, demogra phic assumptions and inflation rate w ere changed in accordance to the CalPERS Experience S tudy and Review of Assumptions December 2017. There w ere no changes in the discount rate. In 2017, the discount ra te was reduced from
7.65 percent to 7.15 percent. In 2016, there w ere no changes. I n 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (w ithout a reduction for pension plan administrative expense). In 2014, amounts rep orted w ere based on the
7.5 percent discount rate.
118
Measurement period 2013-14 1
2014-15 2015-16 2016-17 2017-18
Total pension liability
Service cost 5,059,461 $ 4,743,829 $ 5,119,113 $ 6,129,038 $ 6,298,282 $ Interest 23,063,095 23,705,339 24,915,561 25,705,374 26,642,025 Changes of benefit terms - - - - - Changes of assumptions - (5,729,967) - 21,337,731 (1,351,192) Differences between expected and actual experience - (3,360,555) 4,495,216 (16,644) 1,418,628 Benefit payments, including refunds of employee contributions (1 6,067,896) (16,949,000) (17,675,231) (18,402,022) (19,370,885) Net change in total pension liability 12,054,660 2,409,646 16,854,659 34,753,477 13,636,858 Total pension liability - beginning 313,012,150 325,066,810 327,476,456 344,331,115 379,084,592 Total pension liability - ending (a) 325,066,810$ 327,476,456 $ 344,331,115 $ 379,084,592 $ 392,721,450 $ Pension fiduciary net position
Contributions - employer 8,194,801 $ 7,389,950 $ 8,873,934 $ 10,184,688 $ 10,375,287 $ Contributions - employee 2,880,898 1,948,457 2,392,965 2,060,064 2,163,272 Net investment income
2 34,116,579 4,990,457 1,115,225 24,081,093 19,871,943 Benefit payments, including refunds of employee contributions (1 6,067,896) (16,949,000) (17,675,231) (18,402,022) (19,370,885) Net plan to plan resource movement - - 69 25,198 (581) Administrative expense - (253,316) (137,163) (324,271) (369,710) Other miscellaneous expense
3 - - - - (702,086) Net change in plan fiduciary net position 29,124,382 (2,873,452) (5,430,201) 17,624,750 11,967,240 Plan fiduciary net position - beginning 198,810,600 227,934,982 225,061,530 219,631,329 237,256,079 Plan fiduciary net position - ending (b) 227,934,982$ 225,061,530 $ 219,631,329 $ 237,256,079 $ 249,223,319 $ Plan net pension liability - ending (a) - (b) 97,131,828$ 102,414,926 $ 124,699,786 $ 141,828,513 $ 143,498,131 $ Plan fiduciary net position as a percentage
of the total pension liability 70.12% 68.73% 63.78% 62.59% 63.46% Covered payroll4
18,261,249$ 18,014,087 $ 19,489,503 $ 21,045,353 $ 21,848,552 $ Plan net pension liability as a percentage of covered payroll 531.90% 568.53% 639.83% 673.92% 656.79% 2 Net of administrative expenses for 2013-14.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan 3 During Fiscal Year 2017-18, as a result of Governmental Accounting Standa rds Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recordeda one-time expense as a result of the adoption of GASB 75. Additionally, Cal PERS employees participate in various State of California agent pension plans and duringFiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensionsin accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
1 Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available. 4 Includes one year’s payroll growth using 2.875 percent payroll growth assumption for fiscal years ended June 30, 2019-20; 2.75 percent payroll grow th assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
119
Measurement period 2018-19 2019-20
Total pension liability
Service cost 6,716,477$ 6,677,059 $
Interest 27,808,946 28,910,372
Changes of benefit terms - -
Changes of assumptions - -
Differences between expected and actual experience 3,041,661 1,935,553 Benefit payments, including refunds of employee contributions (2 0,370,103) (21,703,315) Net change in total pension liability 17,196,981 15,819,669 Total pension liability - beginning 392,721,450 409,918,431 Total pension liability - ending (a) 409,918,431$ 425,738,100 $ Pension fiduciary ne t position
Contributions - employer 11,760,090$ 13,635,532 $ Contributions - employee 2,192,763 2,334,755
Net investment income2
16,205,685 12,857,771
Benefit payments, including refunds of employee contributions (2 0,370,103) (21,703,315) Net plan to plan resource movement - - Administrative expense (177,851) (364,893)
Other miscellaneous expense3
581 -
Net change in plan fiduciary net position 9,611,165 6,759,850 Plan fiduciary net position - beginning 249,223,319 258,834,484 Plan fiduciary net position - ending (b) 258,834,484$ 265,594,334 $ Plan net pension liability - ending (a) - (b) 151,083,947$ 160,143,766 $ Plan fiduciary net position as a percentage
of the total pension liability 63.14% 62.38%
Covered payroll4
23,257,305$ 23,313,753 $
Plan net pension liability as a percentage of covered payroll 649.62% 686.91% Notes to Sched ule:
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2021
Last Ten Fiscal Years
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: None in 2019 and 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
California Public Employees' Retirement System ("CalPERS") - Safety Plan
120
Reporting period 2013-14
1 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 6,638,283 $ 5,915,829 $ 6,665,996 $ 7,198,199 $ 7,730,160 $ Contributions in relation to the actuarially determined contribution 2 (6,638,283) (5,915, 829) (6, 864,716) (7,347,239) (7,730, 160) Contribution deficiency (excess) - $ - $ ( 198,720)$ (149,040) $ - $ Covered payroll
3 29,867,279$ 31,064,702 $ 32,319,580 $ 33,069,286 $ 34,541,974 $ Contributions as a percentage of covered payroll 22.23% 19.04% 21. 24% 22.22% 22.38% Notes to Schedule:
Valuation date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.625%
Salary increases Varies by entry age and service
Payroll Growth 2.875%
Investment rate of return
Retirement age
Mortality
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP- 2016 published by the Society of Actuaries.
The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
7.25% net of pension plan investment and administrative expenses, including inflation.
Schedule of Contributions - Pensions
Year Ended June 30, 2021
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Last Ten Fiscal Years
The actuarial methods and assumptions used to set the actuarially determi ned contributions for Fiscal Year 2019-20 were from the June 30, 2017 funding valuation report.
3 Includes one year’s payroll growth using 2.875 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
City of Culver City
1 Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
Required Supplementary Information (Unaudited)
121
Reporting period 2018-19 2019-20 2020-2021
Actuarially determined contribution 8,759,782 $ 10,092,870 $ 977,185 $ Contributions in relation to the actuarially determined contribution (8,759,782) (10,092,870) (977,185) Contribution deficiency (excess) -$ - $ - $ Covered payroll2, 3
35,965,617$ 36,664,416 $ 37,970,925 $
Contributions as a percentage of covered payroll2
24.36% 27.53% 2.57%
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
Year Ended June 30, 2021
California Public E mployees' Retirement System ("CalPE RS") - Mi scellaneous Plan Last Ten Fiscal Years
122
Reporting Period 2013-14
1 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 8,194,801 $ 7,389,950 $ 8,873,934 $ 10,184,688 $ 10,375,287 $ Contributions in relation to the actuarially determined contribution (8,194,801) (7,389, 950) (8,873,934) (10,184, 688) (10,375,287) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll
2, 3
18,261,249$ 18,014,087 $ 19,489,503 $ 21,045,353 $ 21,848,552 $ Contributions as a percentage of covered payroll
2 44.88% 41.02% 45.53% 48.39% 47.49%
Notes to Schedule:
Valuation date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Market value
Inflation 2.625%
Salary increases Varies by entry age and service
Payroll Growth 2.875%
Investment rate of return
Retirement age
Mortality
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan 1 Historical information is presented only for measurement periods for which GASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
The actuarial methods and assumptions used to set the actuarially determi ned contributions for Fiscal Year 2019-20 were from the June 30, 2017 funding valuation report.
7.25% net of pension plan investment and administrative expenses, including inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP- 2016 published by the Society of Actuaries.
3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
Year Ended June 30, 2021
123
Reporting Period 2018-19 2019-20 2020-21
Actuarially determined contribution 11,760,090 $ 13,635,532 $ 14,649,802 $ Contributions in relation to the actuarially determined contribution (11,760,090) (13,635,532) (14,649,802) Contribution deficiency (excess) - $ - $ - $ Covered payroll2, 3
23,257,305$ 23,313,753 $ 24,554,045 $
Contributions as a percentage of covered payroll2
50.57% 58.49% 59.66%
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
Year Ended June 30, 2021
L ast Ten Fiscal Y ears
California Public E mployees' Retirement System ("CalPE RS") - Sa fety Plan
124
Measurement period 2014-15
1 2015-16 2016-17 2017-18 2018-19
Total OPEB liability
Service cost 3,094,000 $ 2,722,000 $ 2,528,000 $ 2,244,000 $ 2,525,145 $ Interest 7,905,000 8,258,000 8,560,000 8,884,000 8,285,252 Changes of benefit terms - - - - - Differences between expected and actual experience - (11,811,000) (436,000) (12,111,000) - Changes of assumptions - (795,000) - 7,174,000 - Benefit payments, including refunds of
employee contributions (5,387,000) (5,759,000) (5,673,000) (5,795,000) (5,941,435) Net change in total OPEB liability 5,612,000 (7,385,000) 4,979,000 396,000 4,868,962 Total OPEB liability - beginning 124,309,000 129,921,000 122,536,000 127,515,000 127,911,000 Total OPEB liability - ending (a) 129,921,000$ 122,536,000 $ 127,515,000 $ 127,911,000 $ 132,779,962 $ OPEB fiduciary net position
Contributions - employer 9,865,000 $ 11,263,000 $ 11,037,000 $ 10,940,000 $ 11,176,363 $ Net investment income 289,000 319,000 3,037,000 3,191,000 2,661,837 Benefit payments, including refunds of
employee contributions (5,387,000) (5,759,000) (5,673,000) (5,795,000) (5,941,435) Administrative expense (56,000) (81,000) (15,000) (17,000) (12,236) Net change in plan fiduciary net position 4,711,000 5,742,000 8,386,000 8,319,000 7,884,529 Plan fiduciary net position - beginning 12,785,000 17,496,000 23,238,000 31,624,000 39,943,000 Plan fiduciary net position - ending (b) 17,496,000$ 23,238,000 $ 31,624,000 $ 39,943,000 $ 47,827,529 $ Plan net OPEB liability - ending (a) - (b) 112,425,000$ 99,298,000 $ 95,891,000 $ 87,968,000 $ 84,952,433 $ Plan fiduciary net position as a percentage
of the total OPEB liability 13.47% 18.96% 24.80% 31.23% 36.02% Covered payroll 47,105,000$ 52,215,000 $ 56,415,000 $ 57,411,000 $ 58,966,981 $ Plan net OPEB liability as a percentage of
covered-employee payroll 238.67% 190.17% 169.97% 153.22% 144.07% Notes to Schedule:
1 Historical information is presented only for measurement periods for whi ch GASB 75 is presented for periods after GASB 75 implementation in 2014-15.
Other Postemployment Benefits ("OPEB")
Last Ten Fiscal Years
Changes of Assumption: In 2021 and 2020, mortality assumptions were updat ed to CalPERS 1997-2015 Experience Study, Mortality mprovement scale was updated to Scale MP-2019, and Tier IV participation at retirement. Assumption for waived retirees over age 65 was reduced from 60% to 40%. In 2018, the accounting discount rate reduced from 7.00 percent to 6.50 percent.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liabilities and Related Ratios Year Ended June 30, 2021
125
M easurement period 2019-20 2020-21
Total OPE B liability
Service cost 2,519,161$ 2,120,093 $
Interest 8,597,512 7,480,807
Changes of benefit terms - -
Differences between expected and actual experience (19,714,893) - Changes of assumptions (2,123,632) -
Benefit payments, including refunds of
employee contributions (6,059,415) (6,058,893)
Net change in total OPE B liability (16,781,267) 3,542,007 Total OPE B liability - beginning 132,779,962 115,998,695 Total OPE B liability - ending (a) 115,998,695$ 119,540,702 $ OPEB fiduciary net position
Contributions - employer 6,073,330$ 6,071,864 $
Net investment income 2,964,438 14,566,766
Benefit payments, including refunds of
employee contributions (6,059,415) (6,058,893)
Administrative expense (13,915) (29,346)
Net change in plan fiduciary net position 2,964,438 14,550,391 Plan fiduciary net position - beginning 47,827,529 50,791,967 Plan fiduciary net position - ending (b) 50,791,967$ 65,342,358 $ Plan net OPE B liability - ending (a) - (b) 65,206,728$ 54,198,345 $ Plan fiduciary net position as a percentage
of the total OPE B liability 43.79% 54.66%
Covered payroll 64,408,288$ 63,028,918 $
Plan net OPE B liability as a percentage of
covered-employee payroll 101.24% 85.99%
L ast Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liabilities and Related Ratios (Continued) Year Ended June 30, 2021
126
2011-12
1 2012-13 2013-14 2014-15 2015-16
Actuarially determined contribution
2 8,456,000$ 8,621,000 $ 9,778,000 $ 9,945,000 $ 9,241,000 $ Contributions in relation to the
actuarially determined contribution (7,635,000) (7,631,000) (10,028,000) (9,865,000) (11,263,000) Contribution deficiency (excess) 821,000 $ 990,000 $ (250,000) $ 80,000 $ (2,022,000)$ Covered payroll N/A 46,399,000$ N/A 47,105,000 $ 52,215,000 $ Contributions as a percentage of
covered-employee payroll
2 N/A 16.45% N/A 20.94% 21.57%
Notes to Schedule:
Valuation date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal, Level % of Pay
Amortization method Level percentage of pay
Remaining amortization period 19-year fixed period for the 2020/ 21 Asset valuation method
Inflation 2.75%
Medical Trend
Salary increases 3.00%
Investment rate of return 6.50%
Retirement age
Mortality
Other Postemployment Benefits ("OPEB")
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - OPEB
Year Ended June 30, 2021
Last Ten Fiscal Years
1 GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer’s Required Supplementary Information for 10 years or as many years as are available upon implementation. The plan was not funded with an OPEB trust prior to 6/30/12. 2 The June 30, 2015 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ended 6/30/16 and 6/30/17, the June 30, 2017 actuarial valuation provided the Actuarially Determined Contribut ions for fiscal year ended 6/30/18 and 6/30/19, and the June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal year ended 6/30/20 and 6/30/21.
Actuarially determined contribution rates are calculated as of June 30, 2 019, two years prior to the end of the fiscal year in which contribution are reported.
Non-Medicare: 7.25% for 2021, decreasing to an ultimate rate of 4.00% in 2076; Medicare: 6.30% for 2021, decreasing to an ultimate rate of 4.00% in 2076.
Mortality rates were based on CalPERS 1997-2015 Healthy Annuitant Mortality Table for Male or Females, as
appropriate, with adjustments for mortality improvements based on MP-2019.
Based on CalPERS 1997-2015 Experience Study.
Investment gains and losses spread over 5-year rolling period.
127
2016-17 2017-18 2018-19 2019-20 2020-21
Actuarially determined contribution
2 9,422,000$ 8,885,000 $ 9,049,000 $ 9,219,000 $ 7,144,000 $ Contributions in relation to the
actuarially determined contribution (11,037,000) (10,940,000) (11,176,363) (6,073,330) (6,071,864) Contribution deficiency (excess) (1,615,000) $ (2,055,000) $ (2,127,363) $ 3,145,670 $ 1,072,136 $ Covered payroll 56,415,000$ 57,411,000 $ 58,966,981 $ 64,408,288 $ 63,028,918 $ Contributions as a percentage of
covered-employee payroll
2 19.56% 19.06% 18.95% 9.43% 9.63%
Other Postemployment Benefits ("OPEB")
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - OPEB (Continued)
Year Ended June 30, 2021
Last Ten Fiscal Years
128
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Taxes 65,889,943$ 76,699,212 $ 93,039,590$ 16,340,378 $ Licenses and permits 6,143,670 3,924,670 3,266,410 (658,260) Fines and forfeitures 4,152,500 2,302,500 3,562,963 1,260,463 Intergovernmental 5,916,785 6,098,785 11,390,216 5,291,431 Charges for services 10,830,842 8,671,324 8,693,400 22,076 Investment earnings 1,388,768 1,384,248 3,090,696 1,706,448 Miscellaneous 390,800 677,270 410,970 (266,300) Total revenues 94,713,308 99,758,009 123,454,245 23,696,236 EXPENDITURES:
Current:
General government 18,785,744 19,073,857 18,706,024 367,833 Parks, recreation, and community services 9,480,758 9,339,313 8,268,396 1,070,917 Police 44,510,234 45,864,897 44,078,619 1,786,278 Fire 24,969,152 25,909,231 25,967,335 (58,104) Community development 8,209,207 11,462,511 8,969,068 2,493,443 Public works 12,349,902 10,976,041 12,891,303 (1,915,262) Capital outlay 117,116 117,116 281,223 (164,107) Total expenditures 118,422,113 122,742,966 119,161,968 3,580,998 REVENUE OVER (UNDER) EXPENDITURES (23,708,805) (22,984,957) 4,292,277 27,277,234 OTHER FINANCING SOURCES (USES):
Transfers in 3,142,225 3,142,225 2,717,225 (425,000) Transfers out (686,120) (730,370) (619,000) 111,370 Proceeds from sale of property - - 101 101 Total other financing sources (uses) 2,456,105 2,411,855 2,098,326 (313,529) CHANGE IN FUND BALANCE (21,252,700) (20,573,102) 6,390,603 26,963,705 FUND BALANCE:
Beginning of year 102,417,428 102,417,428 102,417,428 - End of year 81,164,728 $ 81,844,326 $ 108,808,031 $ 26,963,705 $ Budgeted Amounts
City of Culver City
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
Year Ended June 30, 2021
General Fund
129
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Investment earnings 96,000$ 96,000 $ 386,328$ 290,328 $ Miscellaneous 5,000 5,000 156,005 151,005 Total revenues 101,000 101,000 542,333 441,333 EXPENDITURES:
Current:
Community development 8,130,291 8,428,311 1,696,682 6,731,629 Total expenditures 8,130,291 8,428,311 1,696,682 6,731,629 REVENUE OVER (UNDER) EXPENDITURES (8,029,291) (8,327,311) (1,154,349) 7,172,962 OTHER FINANCING SOURCES (USES):
Transfers in 4,908,776 4,908,776 - (4,908,776) Transfers out (817,225) (817,225) (817,225) - Total other financing sources (uses) 4,091,551 4,091,551 (817,225) (4,908,776) CHANGE IN FUND BALANCE (3,937,740) (4,235,760) (1,971,574) 2,264,186 FUND BALANCE:
Beginning of year 41,274,936 41,274,936 41,274,936 - End of year 37,337,196 $ 37,039,176 $ 39,303,362 $ 2,264,186 $ Budgeted Amounts
City of Culver City
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule (Continued)
Year Ended June 30, 2021
Culver City Housing Authority Special Revenue Fund
130
Note 1 - Budgets and Budgetary Data
Total appropriations for each fund may only be increased or decreased by th e City Council by passage of a resolution amending the budget, with the exception of budget adjustments which involve offsetting revenues and expenditures. In cases involving offsetting revenues and expenditures, the Chief Financial Officer is authorized to increase or decrease an appropriation for a specific purpose where said appropriation is offset by unbudgeted revenue which is designated for said specific purpose.
The City Manager has the authority to adjust the amounts appropriated between the departments and activities of a fund, objects within each departmental activity and between accounts within th e objects, provided; however, that the total appropriations for each fund do not exceed the amounts provided in the budget resolution.
The level at which expenditures may not legally exceed appropriations is the fund level.
All appropriations lapse at the fiscal year-end unless City Council takes formal action in the form of a resolution to continue the appropriation into the following year.
Budgets for the various funds are adopted on a basis consistent with genera lly accepted accounting principles in the United States. Annual appropriated budgets are legally adopted for the ge neral, special revenue, debt service, capital projects, and proprietary fund types except for the AQMD Special Revenue Fund.
City of Culver City
Note to the Required Supplementary Information (Unaudited) Budgetary Comparison Schedule
Year Ended June 30, 2021
The adopted budget of the City consists of a resolution specifying the total appropriation for each departmental activity, such as Police Administration, Street Maintenance, and other activities.
Non-Major Funds /
Other Financial Information
City of Culver City, California
131
SUPPLEMENTARY INFORMATION
132
This page intentionally left blank.
133
Special Capital
Revenue Projects
Funds Funds Total
ASSETS
Cash and investments 39,984,486 $ 3,898,800 $ 43,883,286 $ Accounts receivables, net 197,147 1 197,148 Interest receivables 98,984 974,311 1,073,295 Notes receivables, net 38,820 3,395,000 3,433,820 Due from other governments 3,024,336 289,858 3,314,194 Total assets 43,343,773$ 8,557,970 $ 51,901,743 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 863,915$ 10,478 $ 874,393 $ Salaries and benefits payable 22,673 - 22,673 Due to other funds 1,189,499 265,152 1,454,651 Deposits payable 117,386 113,245 230,631 Retention payable 10,083 14,493 24,576 Due to other governments 38,820 - 38,820 Total liabilities 2,242,376 403,368 2,645,744 Deferred inflows of resources:
Unavailable grant revenues 1,024,348 289,858 1,314,206 Total deferred inflows of resources 1,024,348 289,858 1,314,206 Fund Balances:
Restricted 17,403,942 8,154,602 25,558,544 Committed 23,570,191 - 23,570,191 Unassigned (deficit) (897,084) (289,858) (1,186,942) Total fund balances 40,077,049 7,864,744 47,941,793 Total liabilities, deferred inflows of resources
and fund balances 43,343,773$ 8,557,970 $ 51,901,743 $ City of Culver City
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
134
Special Capital
Revenue Projects
Funds Funds Total
REVENUES:
Licenses and permits 669,472$ - $ 669,472$ Intergovernmental 8,907,202 - 8,907,202 Charges for services 7,070,812 - 7,070,812 Investment earnings 6,806 103,908 110,714 Miscellaneous 19,300 - 19,300 Total revenues 16,673,592 103,908 16,777,500 EXPENDITURES:
Current:
General government 431,301 - 431,301 Parks, recreation and community services 64,679 - 64,679 Police 360,212 - 360,212
Fire 587,813 - 587,813
Community development 3,889,326 - 3,889,326 Public works 136,549 - 136,549 Transportation 247,806 - 247,806 Capital outlay 6,791,374 292,801 7,084,175 Total expenditures 12,509,060 292,801 12,801,861
REVENUES OVER
EXPENDITURES 4,164,532 (188,893) 3,975,639 OTHER FINANCING SOURCES (USES):
Transfers in 193,100 - 193,100 Transfers out (3,084,889) - (3,084,889) Proceeds from sale of property 1,156 1,156 Total other financing sources (uses) (2,890,633) - (2,890,633) CHANGES IN FUND BALANCES 1,273,899 (188,893) 1,085,006 FUND BALANCES:
Beginning of year 38,803,150 8,053,637 46,856,787 End of year 40,077,049$ 7,864,744 $ 47,941,793 $ City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2021
135
NONMAJOR
SPECIAL REVENUE FUNDS
Proposition A Local Return Fund - To account for Proposition A funds received from the state. Proposition A funds are voter approved local sales taxes for transportation-related activities. Proposition A, approved by voters in 1980, is a one half of one percent (0.5%) tax on retail sales in Los Angeles County. The collection of this tax is administered by the County, which returns twenty five percent (25%) of the collections to cities within the County. The balance o f Proposition A tax funds are used for rail development (35%) and discretionary purposes (40%). Almost the entire discretionaryportion is used to fund bus service provided by Metro and 16 other municipal bus operators within the County, including Culver City Municipal Bus Lines.
Proposition C Local Return Fund - To account for Proposition C funds received from the state. Proposition C, approved by voters in 1990, is an additional one-half of one percent (0.5%) tax on retail sales in Los Angeles County. The County returns twenty percent (20%) of the Proposition C tax to the cities in the County for transportation purposes. The balance of the Proposition C tax is restricted (40%) for construction and operation of the bus transit and rail system; (5%) to expand rail and bus security; (10%) for commuter rail, construction of transit centers, park and ride lots and freeway bus stops; and (25%) for transit-related improvements to freeways and state highways.
Gas Tax Fund - To account for state gasoline taxes received by the City. These funds may be used for street maintenance, right-of-way acquisition and street construction.
Operating Grants Fund - To account for operating grant funds resulting from the City's federal, state and local operating grants, and the qualified expenditures of these restricted funds.
Section 8 Housing Fund - To account for assistance provided by the federal government dedicated to sponsoring subsidized housing for low-income families and individuals. The Housing Division in the Comm unity Development Department is responsible for managing and administering Culver City's Section 8 Housing Choice Voucher Program (HCVP) to provide retail subsidies for qualified low-income households.
Art in Public Places Fund - To account for the "Art in Public Places" program. The revenues for this fu nd come from developer in- lieu fees.
CDBG Fund - To account for Community Development Block Grant (CDBG) funds, and the qualified expenditures of these restricted funds for administrative expenditures such as personnel costs.
Special Assessment Fund - To account for benefit assessment district funds received from homeowne rs for special landscaping services of certain properties within the City.
Community Development Fund - To account for funds received from new development impact fees collected on non-residential construction in excess of 5,000 square feet. These fees may only be used to f und street improvements, traffic controls, and traffic management projects.
Measure R Fund - To account for Measure R funds. Measure R is a one-half cent sales tax approved by Los Angeles County voters in November 2008 and is used to fund new transportation projects and programs . The Transportation and Public Works departments utilize the majority of this funding.
136
137
AQMD Fund - To account for funds received from the Air Quality Management District forair quality planning, monitoring, and stationary source and facility permitting. Funds are also used to offset costs for alternative fuel vehicle and equipment purchases.
Board of State and Community Corrections Fund - To account for funds received from the Youth Reinvestment Grant Program.
The City acts as a pass-through agency to fund the development of a youth div ersion program which provides Culver City youth facing expulsion and/or arrest with an individualized care plan to includ e arrest alternatives and educational and mental health services.
Paratransit Fund - To account for the portion of sales tax to be used to transport seniors and people with disabilities.
Measure M Fund - To account for Measure M funds. Measure M is a one-half cent sales tax approv ed by Los Angeles County voters in November 2016 and is used to fund new transportation projects and programs. The Transportation and Public Works departments utilize the majority of this funding.
Building Surcharge Fund - To account for funds received from a four percent (4%) surcharge on certai n development related permit fees. The surcharge is used by City to fund digital imaging and storage plans and documents and technology improvements and maintenance to enhance customer service.
NONMAJOR
SPECIAL REVENUE FUNDS
Park Facilities Fund - To account for funds received from development impact fees assessed on su bdivision/residential development. These fees may be used for the improvement and expansion of public parks and park facilities throughout the City.
Asset Seizure Fund - To account for funds received from federal and local seized and forfeited properties. Such funds may be used for the detection and prevention of criminal activity, and the appreh ension of criminals through Drug Abuse Resistance Education (D.A.R.E.), and other law enforcement programs.
Parking Authority Fund - To account for the operations of the Culver City Parking Authority, which currently includes the Cardiff Parking Structure. These funds may be used for parking related operations and infrastructure improvements.
Safe/Clean Water Protection Fund - To account for all activities associated with watershed management prog ram plan. (Previously referred to as ‘storm water’ and ‘Urban Runoff Mitigation.
138
Proposition Proposition
A Local C Local Operating
Gas Tax Return Return Measure R Grants
ASSETS
Cash and investments 3,107,454 $ 1,076,424 $ 1,221,436 $ 507,391 $ - $ Accounts receivables, net - - - - - Interest receivables 7,686 2,898 3,558 1,230 - Notes receivables, net - - - - - Due from other governments 134,134 - - - 1,260,703 Total assets 3,249,274$ 1,079,322 $ 1,224,994 $ 508,621 $ 1,260,703 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 87 - - 99,313 30,783 Salaries and benefits payable - - - - - Due to other funds - - - - 1,095,661 Deposits payable - - - - - Retention payable - - - - - Due to other governments - - - - - Total liabilities 87 - - 99,313 1,126,444 Deferred inflows of resources:
Unavailable revenues - - - - 971,774 Total deferred inflows of resources - - - - 971,774 Fund Balances:
Restricted 3,249,187 1,079,322 1,224,994 409,308 - Committed - - - - - Unassigned (deficit) - - - - (837,515) Total fund balances 3,249,187 1,079,322 1,224,994 409,308 (837,515) Total liabilities, deferred inflows
of resources and fund balances 3,249,274$ 1,079,322 $ 1,224,994 $ 508,621 $ 1,260,703 $ (Continued)
City of Culver City
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2021
139
Section 8 Art in Community Special
Housing Public Places Development CDBG Assessment
ASSETS
Cash and investments 1,208,784 $ 3,440,657 $ 946,568 $ - $ 570,605$ Accounts receivables, net - - - - 1,415 Interest receivables - 8,770 2,436 - 1,459 Notes receivables, net - - - 38,820 - Due from other governments - - - 31,227 1,531 Total assets 1,208,784$ 3,449,427 $ 949,004 $ 70,047 $ 575,010 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 124,270 20,296 - - 8,679 Salaries and benefits payable 6,823 1,127 - - - Due to other funds 9,687 - - 31,227 - Deposits payable 42,678 - - - 13,912 Retention payable - - - - - Due to other governments - - - 38,820 - Total liabilities 183,458 21,423 - 70,047 22,591 Deferred inflows of resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund Balances:
Restricted 1,025,326 3,428,004 949,004 - 552,419 Committed - - - - - Unassigned (deficit) - - - - - Total fund balances 1,025,326 3,428,004 949,004 - 552,419 Total liabilities, deferred inflows
of resources and fund balances 1,208,784$ 3,449,427 $ 949,004 $ 70,047 $ 575,010 $ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Special Revenue Funds
June 30, 2021
140
Park Asset Parking Safe/Clean Building
Facilities Seizure Authority Water Protection Surcharge ASSETS
Cash and investments 1,161,912 $ 893,035 $ 14,333,832$ 8,126,872 $ 841,326 $ Accounts receivables, net - - 97,281 - 67 Interest receivables 3,060 2,294 36,587 20,481 2,169 Notes receivables, net - - - - - Due from other governments - - - 1,544,329 - Total assets 1,164,972$ 895,329 $ 14,467,700$ 9,691,682 $ 843,562 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 18,726 - 45,927 482,468 14,520 Salaries and benefits payable - - - - 8,186 Due to other funds - - - - - Deposits payable - - 60,796 - - Retention payable 10,083 - - - - Due to other governments - - - - - Total liabilities 28,809 - 106,723 482,468 22,706 Deferred inflows of resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund Balances:
Restricted 1,136,163 895,329 - - 820,856 Committed - - 14,360,977 9,209,214 - Unassigned (deficit) - - - - - Total fund balances 1,136,163 895,329 14,360,977 9,209,214 820,856 Total liabilities, deferred inflows
of resources and fund balances 1,164,972$ 895,329 $ 14,467,700$ 9,691,682 $ 843,562 $ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Special Revenue Funds
June 30, 2021
141
Board of State
Community
Paratransit Measure M AQMD Corrections Total
ASSETS
Cash and investments - $ 2,164,271$ 256,965 $ 126,954 $ 39,984,486$ Accounts receivables, net 748 - 13,183 84,453 197,147 Interest receivables - 5,410 637 309 98,984 Notes receivables, net - - - - 38,820 Due from other governments 52,412 - - - 3,024,336 Total assets 53,160$ 2,169,681$ 270,785 $ 211,716 $ 43,343,773$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 694 - 60 18,092 863,915$ Salaries and benefits payable 6,537 - - - 22,673 Due to other funds 52,924 - - - 1,189,499 Deposits payable - - - - 117,386 Retention payable - - - - 10,083 Due to other governments - - - - 38,820 Total liabilities 60,155 - 60 18,092 2,242,376 Deferred inflows of resources:
Unavailable revenues 52,574 - - - 1,024,348 Total deferred inflows of resources 52,574 - - - 1,024,348 Fund Balances:
Restricted - 2,169,681 270,725 193,624 17,403,942 Committed - - - - 23,570,191 Unassigned (deficit) (59,569) - - - (897,084) Total fund balances (59,569) 2,169,681 270,725 193,624 40,077,049 Total liabilities, deferred inflows
of resources and fund balances 53,160$ 2,169,681$ 270,785 $ 211,716 $ 43,343,773$ (Concluded)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Special Revenue Funds
June 30, 2021
142
Proposition Proposition
A Local C Local Operating
Gas Tax Return Return Measure R Grants
REVENUES:
Licenses and permits -$ - $ - $ - $ - $ Intergovernmental 1,601,174 808,285 670,444 503,530 774,614 Charges for services - - - - - Investment earnings 10,920 (11,646) (2,994) (1,960) 61 Miscellaneous - - - - (1) Total revenues 1,612,094 796,639 667,450 501,570 774,674 EXPENDITURES:
Current:
General government - - - - - Parks, recreation, and community services - - - - - Police - - - - 151,779 Fire - - - - 587,813 Community development - - - - 55,196 Public works - - - - 104,894 Transportation - - - - 896 Capital outlay 231,749 - - 254,286 - Total expenditures 231,749 - - 254,286 900,578
REVENUES OVER (UNDER)
EXPENDITURES 1,380,345 796,639 667,450 247,284 (125,904) OTHER FINANCING SOURCES (USES):
Transfers in - - - - 896 Transfers out (400,000) (721,022) (538,658) (225,209) - Proceeds from sale of property - - - - - Total other financing sources (uses) (400,000) (721,022) (538,658) (225,209) 896 CHANGES IN FUND BALANCES 980,345 75,617 128,792 22,075 (125,008) FUND BALANCES (DEFICIT):
Beginning of year 2,268,842 1,003,705 1,096,202 387,233 (712,507) End of year 3,249,187 $ 1,079,322 $ 1,224,994 $ 409,308 $ (837,515) $ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds
Year Ended June 30, 2021
143
Section 8 Art in Community Special
Housing Public Places Development CDBG Assessment
REVENUES :
Licenses and permits - $ 309,990$ - $ - $ - $ Intergovernmental 1,528,745 35,075 - 33,247 - Charges for services - - 584 - 76,710 Investment earnings 16 59 (2,310) - 813 Miscellaneous 734 - - - - Total revenues 1,529,495 345,124 (1,726) 33,247 77,523 EXPENDITURES:
Current:
General government - 389,325 - - - Parks, recreation, and community services - - - 33,247 - Police - - - - - Fire - - - - - Community development 1,769,724 2,990 - - 24,743 Public works - - - - - Transportation - - - - - Capital outlay - 108 - - - Total expenditures 1,769,724 392,423 - 33,247 24,743
REVENUES OVER (UNDER)
EXPENDITURES (240,229) (47,299) (1,726) - 52,780 OTHER FINANCING SOURCES (USES):
Transfers in - - - - - Transfers out - - - - - Proceeds from sale of property - - - - - Total other financing sources (uses) - - - - - CHANGES IN FUND BALANCES (240,229) (47,299) (1,726) - 52,780 FUND BALANCES (DEFICIT):
Beginning of year 1,265,555 3,475,303 950,730 - 499,639 End of year 1,025,326 $ 3,428,004 $ 949,004 $ - $ 552,419$ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2021
144
Park Asset Parking Safe/Clean Building
Facilities Seizure Authority Water Protection Surcharge REVENUES :
Licenses and permits - $ - $ 176,308$ - $ 183,174$ Intergovernmental - 35,087 - 2,009,098 - Charges for services 182,805 - 3,233,847 3,576,866 - Investment earnings (3,838) 173 30,865 (18,417) (3,687) M iscellaneous - - 18,567 - - Total revenues 178,967 35,260 3,459,587 5,567,547 179,487 EXPENDITURES:
Current:
General government - - 37,796 - - Parks, recreation, and community services 31,432 - - - - Police - 29,565 - - - Fire - - - - - Community development - - 1,634,682 13,136 388,855 Public works - - - - 31,655 Transportation - - - - - Capital outlay 501,281 - 217,452 5,544,261 6,237 Total expenditures 532,713 29,565 1,889,930 5,557,397 426,747
REVENUES OVER (UNDER)
EXPENDITURES (353,746) 5,695 1,569,657 10,150 (247,260) OTHER FINANCING SOURCES (USES):
Transfers in - - - - - Transfers out - - (1,200,000) - - Proceeds from sale of property - 1,156 - - - Total other financing sources (uses) - 1,156 (1,200,000) - - CHANGES IN FUND BALANCES (353,746) 6,851 369,657 10,150 (247,260) FUND BALANCES (DEFICIT):
Beginning of year 1,489,909 888,478 13,991,320 9,199,064 1,068,116 End of year 1,136,163 $ 895,329 $ 14,360,977 $ 9,209,214 $ 820,856 $ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2021
145
Board of State
Community
Paratransit Measure M AQMD Corrections Total
REVENUES :
Licenses and permits - $ - $ - $ - $ 669,472$ Intergovernmental 18,628 570,518 64,419 254,338 8,907,202 Charges for services - - - - 7,070,812 Investment earnings - 8,342 349 60 6,806 M iscellaneous - - - - 19,300 Total revenues 18,628 578,860 64,768 254,398 16,673,592 EXPENDITURES:
Current:
General government 4,180 - - - 431,301 Parks, recreation, and community services - - - - 64,679 Police - - - 178,868 360,212 Fire - - - - 587,813 Community development - - - - 3,889,326 Public works - - - - 136,549 Transportation 246,910 - - - 247,806 Capital outlay - - 36,000 - 6,791,374 Total expenditures 251,090 - 36,000 178,868 12,509,060
REVENUES OVER (UNDER)
EXPENDITURES (232,462) 578,860 28,768 75,530 4,164,532 OTHER FINANCING SOURCES (USES):
Transfers in 192,204 - - - 193,100 Transfers out - - - - (3,084,889) Proceeds from sale of property - - - - 1,156 Total other financing sources (uses) 192,204 - - - (2,890,633) CHANGES IN FUND BALANCES (40,258) 578,860 28,768 75,530 1,273,899 FUND BALANCES (DEFICIT):
Beginning of year (19,311) 1,590,821 241,957 118,094 38,803,150 End of year (59,569) $ 2,169,681 $ 270,725 $ 193,624 $ 40,077,049$ (Concluded)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2021
146
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 1,754,999 $ 1,493,686 $ 1,601,174 $ 107,488 $ Investment earnings 14,000 7,222 10,920 3,698 Miscellaneous - - - - Total revenues 1,768,999 1,500,908 1,612,094 111,186 EXPENDITURES:
Capital outlay 2,472,588 3,072,588 231,749 2,840,839 Total expenditures 2,472,588 3,072,588 231,749 2,840,839 REVENUES OVER (UNDER) EXPENDITURES (703,589) (1,571,680) 1,380,345 2,952,025 OTHER FINANCING USES:
Transfers out - (400,000) (400,000) - Total other financing uses - (400,000) (400,000) - CHANGE IN FUND BALANCE (703,589) (1,971,680) 980,345 2,952,025 FUND BALANCE:
Beginning of year 2,268,842 2,268,842 2,268,842 - End of year 1,565,253 $ 297,162 $ 3,249,187 $ 2,952,025 $ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Gas Tax
Year Ended June 30, 2021
147
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 846,755 $ 846,755 $ 808,285 $ (38,470) $ Investment earnings 11,000 11,000 (11,646) (22,646) Total revenues 857,755 857,755 796,639 (61,116) OTHER FINANCING USES:
Transfers out (846,755) (846,755) (721,022) 125,733 Total other financing uses (846,755) (846,755) (721,022) 125,733 CHANGE IN FUND BALANCE 11,000 11,000 75,617 64,617 FUND BALANCE:
Beginning of year 1,003,705 1,003,705 1,003,705 - End of year 1,014,705 $ 1,014,705 $ 1,079,322 $ 64,617 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Proposition A Local Return
Year Ended June 30, 2021
Budgeted Amounts
148
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 442,361 $ 442,361 $ 670,444 $ 228,083 $ Investment earnings 12,000 12,000 (2,994) (14,994) Total revenues 454,361 454,361 667,450 213,089 OTHER FINANCING USES:
Transfers out (692,361) (692,361) (538,658) 153,703 Total other financing uses (692,361) (692,361) (538,658) 153,703 CHANGE IN FUND BALANCE (238,000) (238,000) 128,792 366,792 FUND BALANCE:
Beginning of year 1,096,202 1,096,202 1,096,202 - End of year 858,202 $ 858,202 $ 1,224,994 $ 366,792 $ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Proposition C Local Return
Year Ended June 30, 2021
149
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 251,000 $ 2,209,632 $ 503,530 $ (1,706,102) $ Investment earnings 2,000 4,155 (1,960) (6,115) Total revenues 253,000 2,213,787 501,570 (1,712,217) EXPENDITURES:
Capital outlay 325,204 576,204 254,286 321,918 Total expenditures 325,204 576,204 254,286 321,918 REVENUES OVER (UNDER) EXPENDITURES (72,204) 1,637,583 247,284 (1,390,299) OTHER FINANCING USES:
Transfers out (495,361) (495,361) (225,209) 270,152 Total other financing uses (495,361) (495,361) (225,209) 270,152 CHANGE IN FUND BALANCE (567,565) 1,142,222 22,075 (1,120,147) FUND BALANCE:
Beginning of year 387,233 387,233 387,233 - End of year (180,332) $ 1,529,455 $ 409,308 $ (1,120,147) $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Measure R
June 30, 2021
Budgeted Amounts
150
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 915,837 $ 1,454,735 $ 774,614 $ 680,121 $ Investment earnings 3,000 3,000 61 2,939 Miscellaneous 43,200 43,200 (1) 43,201 Total revenues 962,037 1,500,935 774,674 (726,261) EXPENDITURES:
Current:
Parks, recreation, and community services 334,029 336,605 - 336,605 Police 131,378 218,057 151,779 66,278 Fire 8,000 123,938 587,813 (463,875) Community development 24,750 296,414 55,196 241,218 Public works 106,000 208,447 104,894 103,553 Transportation - 779 896 (117) Total expenditures 604,157 1,184,240 900,578 283,662 REVENUES (UNDER) EXPENDITURES 357,880 316,695 (125,904) (442,599) OTHER FINANCING SOURCES (USES):
Transfers in 67,120 67,120 896 (66,224) Transfers out (425,000) (425,000) - 425,000 Total other financing sources (uses) (357,880) (357,880) 896 358,776 CHANGE IN FUND BALANCE - (41,185) (125,008) (83,823) FUND BALANCE (DEFICIT):
Beginning of year (712,507) (712,507) (712,507) - End of year (712,507) $ (753,692) $ (837,515) $ (83,823) $ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Operating Grants
Year Ended June 30, 2021
151
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 1,372,000 $ 1,372,000 $ 1,528,745 $ 156,745 $ Investment earnings 7,000 7,000 16 (6,984) Miscellaneous - - 734 734 Total revenues 1,379,000 1,379,000 1,529,495 150,495 EXPENDITURES:
Current:
Community development 1,763,541 1,813,114 1,769,724 43,390 Total expenditures 1,763,541 1,813,114 1,769,724 43,390 CHANGE IN FUND BALANCE (384,541) (434,114) (240,229) 193,885 FUND BALANCE:
Beginning of year 1,265,555 1,265,555 1,265,555 - End of year 881,014 $ 831,441 $ 1,025,326 $ 193,885 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Section 8 Housing
Year Ended June 30, 2021
Budgeted Amounts
152
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental - $ - $ 35,075$ 35,075 $ Licenses and permits 350,000 350,000 309,990 (40,010) Investment earnings 29,000 29,000 59 (28,941) Total revenues 379,000 379,000 345,124 (33,876) EXPENDITURES:
Current:
General government 665,313 1,317,665 389,325 928,340 Community development - - 2,990 (2,990) Capital outlay 20,300 366,620 108 366,512 Total expenditures 685,613 1,684,285 392,423 1,291,862 CHANGE IN FUND BALANCE (306,613) (1,305,285) (47,299) 1,257,986 FUND BALANCE:
Beginning of year 3,475,303 3,475,303 3,475,303 - End of year 3,168,690 $ 2,170,018 $ 3,428,004 $ 1,257,986 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Art in Public Places
Year Ended June 30, 2021
Budgeted Amounts
153
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Licenses and permits - $ - $ - $ - $ Charges for services - 67,989 584 (67,405) Investment earnings 6,000 21,880 (2,310) (24,190) Total revenues 6,000 89,869 (1,726) (91,595) EXPENDITURES:
Capital outlay 281,135 714,588 - 714,588 Total expenditures 281,135 714,588 - 714,588 CHANGE IN FUND BALANCE (275,135) (624,719) (1,726) 622,993 FUND BALANCE:
Beginning of year 950,730 950,730 950,730 - End of year 675,595 $ 326,011 $ 949,004 $ 622,993 $ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Community Development
Year Ended June 30, 2021
154
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 28,500 $ 28,500 $ 33,247 $ 4,747 $ Total revenues 28,500 28,500 33,247 4,747 EXPENDITURES:
Current:
Parks, recreation, and community services 28,500 28,500 33,247 (4,747) Total expenditures 28,500 28,500 33,247 (4,747)
CHANGE IN FUND BALANCE - - - - FUND BALANCE:
Beginning of year - - - - End of year - $ - $ - $ - $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Community Development Block Grant (CDBG) Year Ended June 30, 2021
Budgeted Amounts
155
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Charges for services 72,189$ 77,939 $ 76,710 $ (1,229) $ Investment earnings 4,000 4,000 813 (3,187) Total revenues 76,189 81,939 77,523 (4,416) EXPENDITURES:
Current:
Community development 142,544 152,739 24,743 127,996 Total expenditures 142,544 152,739 24,743 127,996 CHANGE IN FUND BALANCE (66,355) (70,800) 52,780 123,580 FUND BALANCE:
Beginning of year 499,639 499,639 499,639 - End of year 433,284 $ 428,839 $ 552,419 $ 123,580 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Special Assessment
Year Ended June 30, 2021
Budgeted Amounts
156
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Charges for services 50,000$ 210,197 $ 182,805 $ (27,392) $ Investment earnings 14,000 6,169 (3,838) (10,007) Total revenues 64,000 216,366 178,967 (37,399) EXPENDITURES:
Current:
Parks, recreation, and community services 238,091 117,940 31,432 86,508 Capital outlay 625,356 745,507 501,281 244,226 Total expenditures 863,447 863,447 532,713 330,734 CHANGE IN FUND BALANCE (799,447) (647,081) (353,746) 293,335 FUND BALANCE:
Beginning of year 1,489,909 1,489,909 1,489,909 - End of year 690,462 $ 842,828 $ 1,136,163 $ 293,335 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Park Facilities
Year Ended June 30, 2021
Budgeted Amounts
157
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental - $ - $ 35,087$ 35,087 $ Investment earnings 11,000 11,000 173 (10,827) Total revenues 11,000 11,000 35,260 24,260 EXPENDITURES:
Current:
Police - 65,688 29,565 36,123 Total expenditures - 65,688 29,565 36,123 REVENUES (UNDER) EXPENDITURES 11,000 (54,688) 5,695 60,383 OTHER FINANCING SOURCES:
Proceeds from sale of property - - 1,156 1,156 Total other financing sources - - 1,156 1,156 CHANGE IN FUND BALANCE 11,000 (54,688) 6,851 61,539 FUND BALANCE:
Beginning of year 888,478 888,478 888,478 - End of year 899,478 $ 833,790 $ 895,329 $ 61,539 $ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Asset Seizure
Year Ended June 30, 2021
158
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Licenses and permits 150,000 $ 150,000 $ 176,308 $ 26,308 $ Charges for services 4,641,988 4,636,988 3,233,847 (1,403,141) Investment earnings 123,000 123,000 30,865 (92,135) Miscellaneous 184,830 184,830 18,567 (166,263) Total revenues 5,099,818 5,094,818 3,459,587 (1,635,231) EXPENDITURES:
Current:
General government 150,000 150,000 37,796 112,204 Community development 1,642,100 1,555,609 1,634,682 (79,073) Capital outlay 850,198 5,700,377 217,452 5,482,925 Total expenditures 2,642,298 7,405,986 1,889,930 5,516,056 REVENUES OVER (UNDER) EXPENDITURES 2,457,520 (2,311,168) 1,569,657 3,880,825 OTHER FINANCING USES:
Transfers out (1,200,000) (1,200,000) (1,200,000) - Total other financing uses (1,200,000) (1,200,000) (1,200,000) - CHANGE IN FUND BALANCE 1,257,520 (3,511,168) 369,657 3,880,825 FUND BALANCE:
Beginning of year 13,991,320 13,991,320 13,991,320 - End of year 15,248,840 $ 10,480,152 $ 14,360,977 $ 3,880,825 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Parking Authority
Year Ended June 30, 2021
Budgeted Amounts
159
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental - $ 4,509,098$ 2,009,098 $ (2,500,000) $ Charges for services 2,050,000 3,487,500 3,576,866 89,366 Investment earnings 83,000 83,000 (18,417) (101,417) Total revenues 2,133,000 8,079,598 5,567,547 (2,512,051) EXPENDITURES:
Current:
Community development - 347 13,136 (12,789) Capital outlay 2,110,000 15,476,543 5,544,261 9,932,282 Total expenditures 2,110,000 15,476,890 5,557,397 9,919,493 CHANGE IN FUND BALANCE 23,000 (7,397,292) 10,150 7,407,442 FUND BALANCE:
Beginning of year 9,199,064 9,199,064 9,199,064 - End of year 9,222,064 $ 1,801,772 $ 9,209,214 $ 7,407,442 $ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Safe/Clean Water Protection
Year Ended June 30, 2021
160
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Licenses and permits 200,000$ 200,000 $ 183,174 $ (16,826) $ Investment earnings 11,000 11,000 (3,687) (14,687) Total revenues 211,000 211,000 179,487 (31,513) EXPENDITURES:
Current:
Community development 336,576 927,279 388,855 538,424 Public works 34,832 34,832 31,655 3,177 Capital outlay 7,000 133,165 6,237 126,928 Total expenditures 378,408 1,095,276 426,747 668,529 CHANGE IN FUND BALANCE (167,408) (884,276) (247,260) 637,016 FUND BALANCE:
Beginning of year 1,068,116 1,068,116 1,068,116 - End of year 900,708 $ 183,840 $ 820,856 $ 637,016 $ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Building Surcharge
Year Ended June 30, 2021
161
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 64,867 $ 64,867 $ 18,628 $ (46,239) $ Total revenues 64,867 64,867 18,628 (46,239) EXPENDITURES:
Current:
General government - - 4,180 (4,180) Transportation 242,642 250,237 246,910 3,327 Total expenditures 242,642 250,237 251,090 (853) REVENUES OVER (UNDER) EXPENDITURES (177,775) (185,370) (232,462) (47,092) OTHER FINANCING SOURCES:
Transfers in 250,000 250,000 192,204 (57,796) Total other financing sources 250,000 250,000 192,204 (57,796) CHANGE IN FUND BALANCE 72,225 64,630 (40,258) (104,888) FUND BALANCE (DEFICIT):
Beginning of year (19,311) (19,311) (19,311) - End of year 52,914 $ 45,319 $ (59,569) $ (104,888) $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Paratransit
Year Ended June 30, 2021
Budgeted Amounts
162
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 597,007 $ 597,007 $ 570,518 $ (26,489) $ Investment earnings 8,000 8,000 8,342 342 Total revenues 605,007 605,007 578,860 (26,147) EXPENDITURES:
Capital outlay 1,448,723 1,448,723 - 1,448,723 Total expenditures 1,448,723 1,448,723 - 1,448,723 CHANGE IN FUND BALANCE (843,716) (843,716) 578,860 1,422,576 FUND BALANCE:
Beginning of year 1,590,821 1,590,821 1,590,821 - End of year 747,105 $ 747,105 $ 2,169,681 $ 1,422,576 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Measure M
Year Ended June 30, 2021
Budgeted Amounts
163
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 50,000 $ 50,000 $ 64,419 $ 14,419 $ Investment earnings - - 349 349 Total revenues 50,000 50,000 64,768 14,768 EXPENDITURES:
Current:
Transportation 35,000 35,000 - 35,000 Capital outlay 50,000 50,000 36,000 14,000 Total expenditures 85,000 85,000 36,000 49,000 REVENUES OVER (UNDER) EXPENDITURES (35,000) (35,000) 28,768 63,768 OTHER FINANCING USES:
Transfers in 35,000 35,000 - (35,000) Total other financing uses 35,000 35,000 - (35,000) CHANGE IN FUND BALANCE - - 28,768 28,768 FUND BALANCE:
Beginning of year 241,957 241,957 241,957 - End of year 241,957 $ 241,957 $ 270,725 $ 28,768 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Revenue Fund - AQMD
Year Ended June 30, 2021
Budgeted Amounts
164
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 205,086 $ 205,086 $ 254,338 $ 49,252 $ Investment earnings - - 60 60 Total revenues 205,086 205,086 254,398 49,312 EXPENDITURES:
Current:
Police 205,086 205,086 178,868 26,218 Total expenditures 205,086 205,086 178,868 26,218 CHANGE IN FUND BALANCE - - 75,530 75,530 FUND BALANCE:
Beginning of year 118,094 118,094 118,094 - End of year 118,094 $ 118,094 $ 193,624 $ 75,530 $ City of Culver City
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Special Revenue Fund - Board of State and Communit y Corrections Year Ended June 30, 2021
Budgeted Amounts
165
Major Capital Project Fund Includes:
Nonmajor Capital Project Fund Includes:
CDBG Capital Projects Fund - To account for Community Development Block Grant (CDBG) funds, and the qualified expenditures of these restricted funds for capital improvement projects. The fund was closed during the year ended June 30, 2020.
MAJOR AND NONMAJOR
CAPITAL PROJECTS FUNDS
Capital Improvement Grants Capital Projects Fund - To account for grant funds awarded to the City by federal, state, and local agencies for capital improvements, and the eligible and qualified expenditures of these restricted funds.
Cooperative Projects Fund - To account for former Redevelopment Agency unrestricted tax increment f unds. These funds were transferred to the City under the 2011 Cooperation and Implementation Agr eement (Agreement) and may only be used for qualified capital projects identified in the Agreement.
Capital Improvement and Acquisition Fund - To account for capital projects that are not otherwise funded by a specialrevenue fund or other specifically identified by the sources of funding. Project fundi ng is mainly from general revenues allocated by action of the City Council.
166
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167
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental - $ - $ 253,996$ 253,996 $ Investment earnings 170,438 414,438 360,449 (53,989) Capital contributions - 15,000 15,000 - Miscellaneous 6,033,421 6,275,016 - (6,275,016) Total revenues 6,203,859 6,704,454 629,445 (6,075,009) EXPENDITURES:
Current:
Public works - - 325,112 (325,112) Capital outlay 8,101,771 10,049,922 2,086,760 7,963,162 Total expenditures 8,101,771 10,049,922 2,411,872 7,638,050 REVENUES OVER (UNDER) EXPENDITURES (1,897,912) (3,345,468) (1,782,427) 1,563,041 OTHER FINANCING SOURCES (USES):
Transfers in 5,876,567 6,539,817 619,000 (5,920,817) Transfers out (2,918,284) (2,918,284) - 2,918,284 Total other financing sources (uses) 2,958,283 3,621,533 619,000 (3,002,533) CHANGE IN FUND BALANCE 1,060,371 276,065 (1,163,427) (1,439,492) FUND BALANCE:
Beginning of year 2,909,759 2,909,759 2,909,759 - End of year 3,970,130 $ 3,185,824 $ 1,746,332 $ (1,439,492) $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund - Capital Improvement and Acquisition June 30, 2021
Budgeted Amounts
168
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 33,301,733 $ 33,301,733 $ 5,933,105 $ (27,368,628) $ Total revenues 33,301,733 33,301,733 5,933,105 (27,368,628) EXPENDITURES :
Current:
Public works - - - - Capital outlay 25,526,035 28,714,819 10,463,825 18,250,994 Total expenditures 25,526,035 28,714,819 10,463,825 18,250,994 CHANGE IN FUND BALANCE 7,775,698 4,586,914 (4,530,720) (9,117,634) FUND BALANCE (DEFICIT):
Beginning of year (3,279,706) (3,279,706) (3,279,706) - End of year 4,495,992$ 1,307,208 $ (7,810,426) $ (9,117,634) $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund - Capital Improvement Grants
June 30, 2021
Budgeted Amounts
169
CDBG
Cooperative Capital
Projects Projects Total
AS S ETS
Cash and investments 3,898,800 $ - $ 3,898,800$ Accounts receivables, net 1 - 1 Interest receivables 974,311 - 974,311 Note receivables, net 3,395,000 - 3,395,000 Due from other governments - 289,858 289,858 Total assets 8,268,112$ 289,858 $ 8,557,970 $
LIABILITIES AND FUND BALANCES
L iabilities:
Accounts payable 265$ 10,213$ 10,478 $ Deposits payable 113,245 - 113,245 Retention payable - 14,493 14,493 Due to other funds - 265,152 265,152 Total liabilities 113,510 289,858 403,368 Deferred inflows of resources:
Unavailable grant revenues - 289,858 289,858 Total deferred inflows of resources - 289,858 289,858 Fund Balances:
Restricted 8,154,602 - 8,154,602 Unassigned (defict) - (289,858) (289,858) Total fund balances 8,154,602 - 7,864,744 Total liabilities, deferred inflows of resources
and fund balances 8,268,112$ 579,716 $ 8,557,970 $ City of Culver City
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2021
170
CDBG
Cooperative Capital
Projects Projects Total
REVENUES :
Investment earnings 103,908$ - $ 103,908$ Total revenues 103,908 - 103,908 EXPENDITURES :
Current:
Capital outlay 2,943 289,858 292,801 Total expenditures 2,943 289,858 292,801 CHANGES IN FUND BALANCES 100,965 (289,858) (188,893) FUND BALANCES :
Beginning of year 8,053,637 - 8,053,637 End of year 8,154,602$ (289,858) $ 7,864,744 $ City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds
Year Ended June 30, 2021
171
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Investment earnings 143,981$ 143,981 $ 103,908 $ (40,073) $ Total revenues 143,981 143,981 103,908 (40,073) EXPENDITURES:
Current:
General government 998,986 998,986 - 998,986 Capital outlay 2,231,243 2,231,243 2,943 2,228,300 Total expenditures 3,230,229 3,230,229 2,943 3,227,286 CHANGE IN FUND BALANCE (3,086,248) (3,086,248) 100,965 3,187,213 FUND BALANCE:
Beginning of year 4,637,046 4,637,046 8,053,637 3,416,591 End of year 1,550,798 $ 1,550,798 $ 8,154,602 $ 6,603,804 $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund - Cooperative Projects
Year Ended June 30, 2021
Budgeted Amounts
172
Actual Variance with
Original Final Amounts Final Budget
REVENUES:
Intergovernmental 652,936 $ 652,936 $ - $ (652,936)$ Total revenues 652,936 652,936 - (652,936) EXPENDITURES:
Capital outlay 612,773 612,773 289,858 322,915 Debt service: Principal payments 5,000 5,000 - 5,000 Debt service: Interest and fiscal charges 25,435 25,435 - 25,435 Total expenditures 643,208 643,208 289,858 353,350 CHANGE IN FUND BALANCE 9,728 9,728 (289,858) (299,586) FUND BALANCE (DEFICIT):
Beginning of year - - - - End of year 9,728 $ 9,728 $ (289,858) $ (299,586) $ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Projects Fund - CDBG
June 30, 2021
Budgeted Amounts
173
Risk Management Fund - Receives and disburses funds pertaining to the public liability and work ers' compensation insurance programs. It also funds the Employee Disability (Injured On Duty) program for employee long-term work-related disabilities.
Central Stores Fund - Accounts for the timely purchase of needed materials, supplies and auto p arts in advance of actual need.
Departments are billed as items are issued for use.
INTERNAL SERVICE FUNDS
The Internal Service Fund accounts for financing of goods and services provided by one department to other departments of the City on a cost-reimbursement basis.
Internal Service Funds include:
Equipment Replacement Fund - Used to hold annual replacement payments from designated user departments and to use those funds to purchase equipment for general City purposes.
Equipment Maintenance Fund - Accounts for all activities of the City's central fleet maintenance operations, the costs of which are distributed among the designated user departments.
174
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
A SSE TS
Current assets:
Cash and investments 7,267,701 $ - $ 3,256,968$ - $ 10,524,669$ Accounts receivables, net 8,640 27,578 20,261 - 56,479 Interest receivables 18,589 - 1,386 - 19,975 Due from other funds - - 5,670 669 6,339 Inventory - 138,184 - 619,584 757,768 Total current assets 7,294,930 165,762 3,284,285 620,253 11,365,230 Noncurrent assets:
Capital assets:
Machinery and equipment 26,937,958 352,911 42,219 - 27,333,088 Less accumulated depreciation (18,236,414) (320,091) (42,219) - (18,598,724) Capital assets, net 8,701,544 32,820 - - 8,734,364 Total noncurrent assets 8,701,544 32,820 - - 8,734,364 Total assets 15,996,474 198,582 3,284,285 620,253 20,099,594
DEFERRED OUTFLOWS OF RES OURCES
Pension related amounts - 1,073,068 275,179 - 1,348,247 Other postemployment benefits related amounts - 72,417 14,340 - 86,757 Total deferred outflows of resources - 1,145,485 289,519 - 1,435,004 (Continued)
City of Culver City
Combining Statement of Net Position
All Internal Service Funds
June 30, 2021
175
Equipment Equipment Risk Central
Replacement Maintenance Management Stores Total
LIABILITIES
Current liabilities:
Accounts payable 7,419 206,189 33,295 59,450 306,353$ Salaries and benefits payable - 123,308 93,128 - 216,436 Due to other funds - 1,397,562 - 560,803 1,958,365 Compensated absences - due within one year - 175,881 4,210 - 180,091 Claims payable - due within one year - - 3,944,154 - 3,944,154 Total current liabilities 7,419 1,902,940 4,074,787 620,253 6,605,399 Noncurrent liabilities:
Compensated absences - due in more than one year - 461,613 3,844 - 465,457 Claims payable - due in more than one year - - 12,615,835 - 12,615,835 Net pension liabilities - 8,335,897 2,137,672 - 10,473,569 Net other postemployment benefits liabilities - 1,642,210 325,190 - 1,967,400 Total noncurrent liabilities - 10,439,720 15,082,541 - 25,522,261 Total liabilities 7,419 12,342,660 19,157,328 620,253 32,127,660
DEFERRED INFLOWS OF RESOURCES
Pension related amounts - 65,106 16,696 - 81,802 Other postemployment benefits related amounts - 834,306 165,209 - 999,515 Total deferred inflows of resources - 899,412 181,905 - 1,081,317
NET POSITION
Investment in capital assets 8,701,544 32,820 - - 8,734,364 Unrestricted (deficit) 7,287,511 (11,930,825) (15,765,429) - (20,408,743) Total net position 15,989,055$ (11,898,005) $ (15,765,429) $ - $ (11,674,379)$ (Concluded)
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2021
City of Culver City
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177
Equipment Equipment Risk Central
Replacement Maintenance Management Stores Total
OPERATING REVENUES:
Sales and service charges 980,297 7,019,819 11,417,903 1,509,578 20,927,597$ Miscellaneous 8,641 324 66,321 2,634 77,920 Total operating revenues 988,938 7,020,143 11,484,224 1,512,212 21,005,517 OPERATING EXPENSES:
Salaries and benefits - 4,404,501 2,455,188 - 6,859,689 Supplies - 1,666,615 61,024 325,370 2,053,009 Repairs and maintenance 206,462 1,522,147 - 1,186,842 2,915,451 Insurance - 100,943 2,422,148 - 2,523,091 Claims and settlements - - 6,738,045 - 6,738,045 Consulting and contractual services - 62,874 562,368 - 625,242 Depreciation 2,287,900 18,183 - - 2,306,083 Total operating expenses 2,494,362 7,775,263 12,238,773 1,512,212 24,020,610 OPERATING INCOME (LOSS) (1,505,424) (755,120) (754,549) - (3,015,093) NONOPERATING REVENUES:
Investment earnings 7,563 - (15,798) - (8,235) Gain on sales of property 42,127 - - - 42,127 Total nonoperating revenues 49,690 - (15,798) - 33,892 CHANGES IN NET POSITION (1,455,734) (755,120) (770,347) - (2,981,201) NET POSITION (DEFICIT):
Beginning of year 17,444,789 (11,142,885) (14,995,082) - (8,693,178) End of year 15,989,055 $ (11,898,005) $ (15,765,429) $ - $ (11,674,379)$ City of Culver City
Combining Statement of Revenues, Expenses and Changes in Net Position All Internal Service Funds
Year Ended June 30, 2021
178
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
CAS H FLOWS FROM OPERATING ACTIVITIES :
Receipts from user departments 1,029,107 $ 6,994,648 $ 11,446,130 $ 1,512,506 $ 20,982,391 $ Receipts from operating revenue 8,641 324 66,321 2,634 77,920 Payments to suppliers for goods and services (200,831) (3,369,377) (7,567,953) (1,583,064) (12,721,225) Payments to employees - (4,607,796) (2,403,533) - (7,011,329) Net cash provided by (used in) operating activities 836,917 (982,201) 1,540,965 (67,924) 1,327,757
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash received from (paid to) other funds - 998,293 (5,670) 67,924 1,060,547 Net cash provided by (used in)
noncapital financing activ ities - 998,293 (5,670) 67,924 1,060,547
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES :
Acquisition of capital assets (752,733) (16,092) - - (768,825) Capital g rants - - - - - Proceeds from sale of capital assets 124,259 - - - 124,259 Net cash (used in) capital
and related financing activities (628,474) (16,092) - - (644,566) CAS H FLOWS FROM INVES TING ACTIVITIES :
Interest received 14,589 - (11,162) - 3,427 Net cash provided by investing activities 14,589 - (11,162) - 3,427 Net change in cash and cash equivalents 223,032 - 1,524,133 - 1,747,165 CAS H AND CAS H EQ UIVALENTS :
Beginning of year 7,044,669 - 1,732,835 - 8,777,504 End of year 7,267,701 $ - $ 3,256,968$ - $ 10,524,669$ City of Culver City
Combining Statement of Cash Flows
All Internal Service Funds
Y ear Ended June 30, 2021
179
Equipment Equipment Risk Central
Replacement Maintenance Management Stores Total
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (loss) (1,505,424) $ (755,120) $ (754,549) $ - $ (3,015,093)$ Depreciation 2,287,900 18,183 - - 2,306,083 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
(Increase) decrease in accounts receivable 48,810 (25,171) 28,227 2,928 54,794 (Increase) decrease in inventories - (57,549) - (24,109) (81,658) (Increase) decrease in deferred outflows of resources:
Pension related - 37,531 9,625 - 47,156 OPEB related - 36,247 7,263 - 43,510 Increase (decrease) in accounts payable 5,631 40,751 (127,984) (46,743) (128,345) Increase (decrease) in accrued liabilities - 510 56,710 - 57,220 Increase (decrease) in compensated absences - (267,005) (31,227) - (298,232) Increase (decrease) in net pension liabilities - 309,312 79,321 - 388,633 Increase (decrease) in OPEB - (333,703) (67,640) - (401,343) Increase (decrease) in claims payable - - 2,343,616 - 2,343,616 (Increase) decrease in deferred inflows of resources:
Pension related - (77,815) (19,955) - (97,770) OPEB related - 91,628 17,558 - 109,186 Total adjustments 54,441 (245,264) 2,295,514 (67,924) 2,036,767 Net cash provided by (used in) operating activities 836,917$ (982,201) $ 1,540,965 $ (67,924) $ 1,327,757 $ Combining Statement of Cash Flows (Continued)
All Internal Service Funds
Year Ended June 30, 2021
City of Culver City
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181
AGENCY FUND
FINANCIAL STATEMENTS
Treasurer's Trust Agency Fund - to account for refundable deposits entrusted with the City Treasurer/Finance.
Revitalization Corporation Agency Fund - A non-profit corporation created to allow certain funding to be expended o n improvements to out-of-city properties adjacent to or abutting in-city p roperties in Component Area Number 2 of the Culver City Redevelopment Project Area. The fund is reported as part of the Successor Agency to the Culver City Redevelopment Agency Private Purpose Trust Fund effectively July 1, 2019.
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183
Treasurer's Revitalization
Trust Corporation Total
ASSETS
Cash and investments 11,623 $ 61,357 $ 72,980 $ Total assets 11,623$ 61,357 $ 72,980 $
LIABILITIES
Deposits 11,623$ 61,357 $ 72,980 $ Total liabilities 11,623$ 61,357 $ 72,980 $ City of Culver City
Combining Statement of Agency Assets and Liabilities
Agency Funds
June 30, 2021
Agency Funds
184
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Treasurer's Trust
Assets:
Cash and investments 11,623 $ - $ - $ 11,623$ Total assets 11,623$ - $ - $ 11,623$ L iabilities:
Deposits payable 11,623 $ - $ - $ 11,623$ Total liabilities 11,623$ - $ - $ 11,623$ Rev italization Corporation
Assets:
Cash and investments - $ 61,357$ - $ 61,357$ Total assets -$ 61,357$ - $ 61,357$ L iabilities:
Deposits payable - $ 61,357$ - $ 61,357$ Total liabilities -$ 61,357$ - $ 61,357$ Total All Agency Funds
Assets:
Cash and investments 11,623 $ 61,357 $ - $ 72,980$ Total assets 11,623$ 61,357 $ - $ 72,980$ L iabilities:
Deposits payable 11,623 $ 61,357 $ - $ 72,980$ Total liabilities 11,623$ 61,357 $ - $ 72,980$ Agency Funds
Year Ended June 30, 2021
City of Culver City
Combining Statement of Changes in Agency Assets and Liabilities
Statistical Section
City of Culver City, California
185
STATISTICAL SECTION
186
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City of Culver City
Description of Statistical Section Contents
June 30, 2021
187
Contents: Pages
188 - 199
200 - 205
206 - 210
211 - 215
217 - 220
Financial Trends - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.
Debt Capacity - These schedules present information to help the reader assess the afford ability of the City's current level of outstanding debt and the City's ability to issu e additional debt in the future.
Demographic and Economic Information - These schedules offer demographics and economic indicators to help the reader understand the environment within which the City's financial activities take place.
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report related to t he services the City provides and activities it performs.
This part of the City of Culver City's comprehensive annual financial repo rt presents detailed information as a context for understanding what the information in the financial statemen ts, note disclosures, and required supplementary information say about the government's overall financial health.
City of Culver City
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
188
2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets 151,247,364 $ 143,056,650 $ 143,775,699 $ 138,194,791 $ 136,967,403 $ Restricted 128,661,077 96,457,750 96,157,539 80,777,328 83,083,502 Unrestricted 12,084,442 21,999,556 33,896,113 (171,257,691) (156,905,843) Total governmental activities net position 291,992,883 $ 261,513,956 $ 273,829,351 $ 47,714,428 $ 63,145,062 $ Business-type activities
Net investment in capital assets 51,007,687 $ 50,787,094 $ 55,216,555 $ 54,690,405 $ 57,051,460 $ Restricted 2,147,433 2,171,794 2,176,609 2,185,415 1,652,641 Unrestricted 34,373,274 33,449,555 31,679,756 (3,173,794) (4,995,724) Total business-type activities net position 87,528,394 $ 86,408,443 $ 89,072,920 $ 53,702,026 $ 53,708,377 $ Primary government
Net investment in capital assets 202,255,051 $ 193,843,744 $ 198,992,254 $ 192,885,196 $ 194,018,863 $ Restricted 130,808,510 98,629,544 98,334,148 82,962,743 84,736,143 Unrestricted 46,457,716 55,449,111 65,575,869 (174,431,485) (161,901,567) Total primary government net position 379,521,277 $ 347,922,399 $ 362,902,271 $ 101,416,454 $ 116,853,439 $ Note: The City of Culver City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003 City of Culver City
Net Position by Component(Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
189
2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets 144,639,910 $ 162,634,242 $ 174,897,818 $ 174,821,730 $ 187,808,665 $ Restricted 90,048,591 70,969,965 65,586,867 79,921,054 104,053,897 Unrestricted (159,583,947) (162,306,355) (150,684,028) (164,095,166) (188,774,604) Total governmental activities net position 75,104,554 $ 71,297,852 $ 89,800,657 $ 90,647,618 $ 103,087,958 $ Business-type activities
Net investment in capital assets 72,309,196 $ 71,580,562 $ 72,974,924 $ 74,664,009 $ 76,208,363 $ Restricted 1,608,838 1,658,185 1,663,167 13,866 1 Unrestricted (13,213,561) (15,089,840) (20,314,978) (23,982,949) (19,958,484) Total business-type activities net position 60,704,473 $ 58,148,907 $ 54,323,113 $ 50,694,926 $ 56,249,880 Primary government
Net investment in capital assets 216,949,106 $ 234,214,804 $ 247,872,742 $ 249,485,739 $ 264,017,028 $ Restricted 91,657,429 72,628,150 67,250,034 79,934,920 104,053,898 Unrestricted (172,797,508) (177,396,195) (170,999,006) (188,078,115) (208,733,088) Total primary government net position 135,809,027 $ 129,446,759 $ 144,123,770 $ 141,342,544 $ 159,337,838 $ Note: The City of Culver City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003 City of Culver City
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
190
2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government 12,279,581 $ 8,445,889 $ 7,862,533 $ 22,383,141 $ 13,358,925 $ Parks, recreation and community services 7,476,362 7,367,387 7,780,264 8,325,466 8,775,491 Police 29,939,290 30,336,287 33,869,176 32,806,197 36,045,013 Fire 18,048,628 18,077,245 19,179,679 19,167,988 20,374,502 Community development 28,707,314 9,661,939 10,013,569 10,460,975 13,645,410 Public works 16,484,258 11,360,132 11,789,014 14,477,308 12,586,907 Transportation - 291,612 286,165 263,200 364,621 Capital outlay - - - - - Interest on long-term debt 3,786,951 74,649 47,962 11,520 - Total governmental activities expenses 116,722,384 85,615,140 90,828,362 107,895,795 105,150,869 Business-type activities:
Refuse disposal 10,605,613 10,841,375 11,549,661 11,783,785 11,192,703 Municipal bus lines 19,591,642 22,752,400 21,491,866 22,324,977 23,080,082 Sewer enterprise 7,834,922 7,401,222 9,357,548 9,765,471 9,875,998 Municipal fiber network - - - - 1,963 Internal service fund allocated to
business-type activities -
- - - - Total business-type activities expenses 38,032,177 40,994,997 42,399,075 43,874,233 44,150,746 Total primary government expenses 154,754,561 126,610,137 133,227,437 151,770,028 149,301,615 Program Reve nues
Governmental activities:
Charges for services:
General government 325,001 $ 556,792 $ 1,479,181$ 2,238,222 $ 3,420,061 $ Parks and recreation 2,398,033 2,448,788 2,660,125 2,926,314 2,981,697 Police 3,591,328 3,896,275 4,547,121 4,455,096 4,661,925 Fire 2,447,007 2,533,844 3,001,288 2,786,350 3,469,803 Community development 7,217,615 6,841,558 8,633,692 7,478,274 10,055,969 Public works 1,637,526 1,619,054 1,896,937 2,126,165 2,152,282 Transportation - 4,352 5,009 5,776 4,348 Operating contributions and grants 8,667,062 6,844,461 6,577,663 6,077,562 6,887,267 Capital grants and contributions 4,182,936 4,991,312 2,493,998 2,825,117 1,195,595 Total governmental activities program revenues 30,466,508 29,736,436 31,295,014 30,918,876 34,828,947 Business-type activities:
Charges for services:
Refuse disposal 11,555,536 11,419,668 11,732,899 11,745,590 12,559,906 Municipal bus lines 3,803,136 4,011,320 3,796,169 3,760,517 3,582,271 Sewer enterprise 7,874,554 8,141,464 8,999,538 9,185,121 9,936,490 Municipal fiber network - - - - - Operating grants and contributions 15,087,791 14,496,326 15,781,669 15,906,511 16,165,460 Capital grants and contributions 11,066,909 1,938,724 4,224,835 7 2 9 , 3 7 8 1,220,528 Total business-type activities program revenues 49,387,926 40,007,502 44,535,110 41,327,117 43,464,655 Total primary government program revenues 79,854,434 $ 69,743,938 $ 75,830,124 $ 72,245,993 $ 78,293,602 $ Note: The City of Culver City implemented GASB 34 for the fiscal year ended 2003.
City of Culver City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
191
2017 2018 2019 2020 2021
Expenses
Governmental activities:
General government 14,990,643 $ 26,854,930 $ 17,862,641 $ 18,343,391 $ 26,649,962 $ Parks, recreation and community services 9,022,335 11,501,839 11,838,330 9,441,755 8,990,167 Police 40,121,314 45,463,577 45,771,756 49,820,605 44,928,502 Fire 23,019,797 26,764,984 27,136,117 27,388,529 26,962,832 Community development 24,698,337 13,250,693 13,649,676 16,239,189 15,711,383 Public works 12,948,758 14,132,972 15,572,218 16,024,316 15,459,474 Transportation 485,925 1,009,270 970,326 226,814 247,806 Capital outlay - - - - 38,053 Interest on long-term debt - - - - - Total governmental activities expenses 125,287,109 138,978,265 132,801,064 137,484,599 138,988,179 Business-type activities:
Refuse disposal 12,254,241 14,811,894 15,905,856 17,502,230 15,436,971 Municipal bus lines 24,242,317 27,546,738 27,317,029 34,013,345 27,441,047 Sewer enterprise 9,076,812 8,144,996 9,583,110 9,276,555 8,719,314 Municipal fiber network 1,430,316 1,720,771 2,713,855 3,226,780 2,102,185 Internal service fund allocated to
business-type activities -
- - - 924,172 Total business-type activities expenses 47,003,686 52,224,399 55,519,850 64,018,910 54,623,689 Total primary government expenses 172,290,795 191,202,664 188,320,914 201,503,509 193,611,868 Program Revenues
Governmental activities:
Charges for services:
General government 2,465,017 $ 5,100,366 $ 5,590,272 $ 4,942,337 $ 1,758,493 $ Parks and recreation 3,099,475 3,510,388 3,771,176 2,281,142 1,765,446 Police 5,640,905 6,380,868 5,984,564 4,810,715 3,757,843 Fire 3,639,515 4,099,395 4,464,004 3,682,521 4,107,120 Community development 10,372,275 14,267,654 12,481,979 13,257,557 6,911,883 Public works 2,554,688 3,056,562 3,207,741 2,554,779 4,962,272 Transportation 4,426 30,193 67,263 140,424 - Operating contributions and grants 5,200,729 5,936,262 6,660,280 7,630,779 13,829,191 Capital grants and contributions 6,235,656
4,659,933 2,668,902 4,065,265 11,631,573 Total governmental activities program revenues 39,212,686 47,041,621 44,896,181 43,365,519 48,723,821 Business-type activities:
Charges for services:
Refuse disposal 13,086,289 14,644,140 16,011,416 16,573,869 16,027,123 Municipal bus lines 3,188,558 3,041,100 2,908,933 2,594,270 1,024,500 Sewer enterprise 9,003,222 9,724,306 11,020,326 10,903,349 10,111,096 Municipal fiber network - - 35,655 245,650 2,612,865 Operating grants and contributions 25,844,886 19,329,775 20,011,475 22,143,916 27,188,192 Capital grants and contributions 1,621,358 1,272,523 510,463 5 , 6 6 5 , 1 6 6 2,218,360 Total business-type activities program revenues 52,744,313 48,011,844 50,498,268 58,126,220 59,182,136 Total primary government program revenues 91,956,999 $ 95,053,465 $ 95,394,449 $ 101,491,739 $ 107,905,957 $ Note: The City of Culver City implemented GASB 34 for the fiscal year ended 2003.
City of Culver City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
192
2012 2013 2014 2015 2016
Net (Expense)/Revenue
Governmental activities (86,255,876) $ (55,878,704) $ (59,533,348) $ (76,976,919) $ (70,321,922) $ Business- type activities 11,355,749 (987,495) 2,136,035 (2,547,116) (686,091) Total primary government net expense (74,900,127) $ (56,866,199) $ (57,397,313) $ (79,524,035) $ (71,008,013) $ General Revenues and Other Changes in Net Position
Governmental activities :
Taxes
Property taxes 22,211,508 $ 8,674,103 $ 7,308,615 $ 10,009,164 $ 10,627,556 $ Sales taxes 16,970,122 19,791,627 27,692,291 28,284,352 30,172,506 Utility users tax 14,363,708 14,518,808 14,839,873 14,774,331 14,544,069 Franchise taxes 1,271,563 1,399,727 1,449,956 1,516,279 1,408,672 Business license taxes 9,930,602 10,253,802 11,214,234 11,808,710 12,299,395 Transient occupancy taxes 3,781,092 5,195,349 5,608,151 6,699,816 7,572,077 Other taxes 555,444 743,702 1,313,693 1,374,938 1,228,747 Motor vehicle in lieu taxes (Intergov't revenue) 3,423,230 3,449,068 3,735,235 3,908,299 4,109,366 Use of money and property 802,047 1,446,295 2,070,913 1,280,825 849,088 Gain (Loss) on sale of capital assets 30,743 - (293,338) 211 - Other 1,261,723 731,825 342,257 14,781,529 617,494 Transfers (343,073) (398,441) (760,438) (919,357) 12,786 Transfers from fiduciary - - - - 2,310,800 Extraordinary gain - transfer of assets and liabilities to RDA Successor trust funds 167,852,017 - - - - Special Items -
- - (12,541,852) - Total governmental activities 242,110,726 $ 65,805,865 $ 74,521,442 $ 80,977,245 $ 85,752,556 $ Business- type activities:
Sales taxes- Measure R 1,700,105 $ - $ - $ - $ - $ Use of money and property 179,540 (16,248) 277,385 216,904 320,931 Other 306,834 346,317 342,457 300,209 384,297 (Loss) on sale of capital assets
Transfers 343,073
398,441 760,438 9 1 9 , 3 5 7 (12,786) Total business- type activities 2,529,552 728,510 1,380,280 1,436,470 692,442 Total primary government 244,640,278 $ 66,534,375 $ 75,901,722 $ 82,413,715 $ 86,444,998 $ Change in Net Position
Governmental activities 155,854,850 $ 9,927,161 $ 14,988,094 $ 4,000,326 $ 15,430,634 $ Business- type activities 13,885,301 (258,985) 3,516,315 (1,110,646) 6,351 Total primary government 169,740,151 $ 9,668,176 $ 18,504,409 $ 2,889,680 $ 15,436,985 $ Note: The City of Culver City implemented GASB Statement 34 for the fiscal year ended June 30, 2003.
City of Culver City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
193
2017 2018 2019 2020 2021
Net (Expense)/Revenue
Governmental activities (86,074,423) $ (91,936,644) $ (87,904,883) $ (94,119,080) $ (90,264,358) $ Business-type activities 5,740,627 (4,212,555) (5,021,582) (5,892,690) 4,558,447 Total primary government net expense (80,333,796) $ (96,149,199) $ (92,926,465) $ (100,011,770) $ (85,705,911) $ General Revenues and Other Changes in Net Position
Governmental activities :
Taxes
Property taxes 11,011,319 $ 13,790,871 $ 13,488,817 $ 14,318,618 $ 20,364,416 $ Sales taxes 29,997,495 31,162,345 32,402,882 33,606,943 37,830,897 Utility users tax 14,104,504 13,970,775 13,173,647 13,329,640 13,184,794 Franchise taxes 1,408,686 1,439,743 1,412,810 1,435,516 2,298,715 Business license taxes 13,373,055 13,168,013 13,991,391 14,599,849 15,895,304 Transient occupancy taxes 7,566,579 7,903,787 8,551,849 6,347,604 3,073,676 Other taxes 631,600 1,731,434 2,668,453 2,750,778 391,788 Motor vehicle in lieu taxes (Intergov't revenue) 4,475,719 4,764,501 5,086,293 5,541,021 6,087,286 Use of money and property 692,450 760,686 3,230,772 3,732,582 3,939,952 Gain (Loss) on sale of capital assets - - - - - Other 417,212 588,897 1,539,459 472,933 629,659 Transfers (1,093,863) (1,151, 110) (1,472,842) (1,169,443) (991,789) Transfers from fiduciary - - - - - Extraordinary gain - transfer of assets and liabilities to RDA Successor trust funds - - - - - Special Items 11,599,118
- - - - Total governmental activities 94,183,874 $ 88,129,942 $ 94,073,531 $ 94,966,041 $ 102,704,698 $ Business-type activities:
Sales taxes- Measure R - $ - $ - $ - $ - $ Use of money and property 80,471 113,536 807,284 975,089 4,718 Other 411,639 392,343 2,199,819 119,971 - (Loss) on sale of capital assets (330,504) - - - - Transfers 1,093,863 1,151,110 1,472,842 1,169,443 991,789 Total business-type activities 1,255,469 1,656,989 4,479,945 2,264,503 996,507 Total primary government 95,439,343 $ 89,786,931 $ 98,553,476 $ 97,230,544 $ 103,701,205 $ Change in Net Position
Governmental activities 8,109,451 $ (3,806, 702)$ 6,168,648 $ 846,961 $ 12,440,340$ Business-type activities 6,996,096 (2,555,566) (541,637) (3,628,187) 5,554,954 Total primary government 15,105,547 $ (6,362,268) $ 5,627,011 $ (2,781,226) $ 17,995,294 $ Note: The City of Culver City implemented GASB Statement 34 for the fiscal year ended June 30, 2003.
City of Culver City
Program Revenues By Revenue Function
Last Ten Fiscal Years
(Accrual Basis of Accounting)
194
2012 2013 2014 2015 2016
Function/Program
Governmental activities:
General government 561,872 $ 2,689,305 $ 3,455,983 $ 4,195,371 $ 4,860,813 $ Parks, recreation and community services 3,993,130 2,891,150 2,870,838 3,247,541 3,272,059 Police 4,280,253 4,481,542 5,337,377 5,254,336 5,258,049 Fire 2,447,007 2,777,379 3,230,169 2,867,360 3,647,791 Community development 9,353,786 9,228,830 10,580,562 9,174,202 13,009,788 Public Works 9,830,460 7,577,994 5,682,998 5,979,216 4,632,178 Transportation - 9 0 , 2 3 6 137,087 2 0 0 , 8 5 0 1 4 8 , 2 6 9 Subtotal governmental activities 30,466,508 29,736,436 31,295,014 30,918,876 34,828,947 Business-type activities:
Refuse disposal 12,299,423 11,442,218 11,772,165 11,796,339 12,604,319 Municipal bus lines 29,213,226 20,422,157 23,762,329 20,344,349 20,923,156 Sewer enterprise 7,875,277 8,143,127 9,000,616 9,186,429 9,937,180 Municipal fiber network - - - - - Subtotal business-type activities 49,387,926 40,007,502 44,535,110 41,327,117 43,464,655 Total primary government 79,854,434 $ 69,743,938 $ 75,830,124 $ 72,245,993 $ 78,293,602 $ City of Culver City
Program Revenues By Revenue Function (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
195
2017 2018 2019 2020 2021
Function/Program
Governmental activities:
General government 3,865,385 $ 6,609,126 $ 7,708,839 $ 7,549,835 $ 6,820,173 $ Parks, recreation and community services 3,381,557 3,792,927 4,037,386 2,590,460 1,798,693 Police 6,127,591 7,218,778 6,712,644 5,557,882 4,307,949 Fire 3,745,887 4,411,810 4,564,864 3,734,458 4,586,726 Community development 12,256,628 16,714,423 14,686,222 15,364,424 8,711,092 Public Works 9,676,224 7,891,194 7,169,941 8,154,846 20,498,301 Transportation 159,414 4 0 3 , 3 6 3 16,285 4 1 3 , 6 1 4 2,000,887 Subtotal governmental activities 39,212,686 47,041,621 44,896,181 43,365,519 48,723,821 Business-type activities:
Refuse disposal 13,086,289 14,760,456 16,039,981 16,763,476 16,147,998 Municipal bus lines 30,654,802 23,524,754 23,402,059 29,506,830 30,309,978 Sewer enterprise 9,003,222 9,726,634 11,020,573 10,903,509 10,111,295 Municipal fiber network - - 35,655 9 5 2 , 4 0 5 2,612,865 Subtotal business-type activities 52,744,313 48,011,844 50,498,268 58,126,220 59,182,136 Total primary government 91,956,999 $ 95,053,465 $ 95,394,449 $ 101,491,739 $ 107,905,957 $ City of Culver City
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
196
2012 2013 2014 2015 2016
G eneral Fund
Reserved - $ - $ - $ - $ - $ Unreserved - - - - - Nonspendable 6,192,311 7,621,370 7,545,451 8,797,076 18,651,241 R es tricted - - - - - Committed - - 30,189,148 34,909,456 37,778,333 Assigned 218,307 564,382 655,548 100,659 225,888 Unassigned 42,583,643 42,939,543 18,636,897 36,885,749 25,422,152 Total G eneral Fund 48,994,261 $ 51,125,295 $ 57,027,044 $ 80,692,940 $ 82,077,614 $ All Other Governmental Funds
Reserved - $ - $ - $ - $ - $ Unreserved, reported in:
S pecial revenue funds-RDA - - - - - Capital projects funds-CITY - - - - - Capital projects funds-RDA - - - - - Debt service funds - - - - - Non-Major funds - S pecial revenue funds - - - - - Non-Major funds - Capital projects funds - - - - - Nonspendable - - - - - Restricted (includes COOP) 128,661,077 95,927,506 95,919,140 80,663,848 81,872,220 Committed - - - - 14,114,312 Assigned 4,872,542 3,939,545 4,171,163 5,201,207 - Unassigned (1,357,834) (332,930) (1,787,933) (2,639,282) (2,116,848) Total all other G overnmental Funds 132,175,785 $ 99,534,121 $ 98,302,370 $ 83,225,773 $ 93,869,684 $ Note: This schedule has been modified pursuant to G AS B S tatement No. 54 w hich establishes the follow ing classifications (effec tive FY2011) :
nonspendable, restricted, committed, assigned and unassigned.
City of Culver City
Fund Balances, Governmental Funds (Continued)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
197
2017 2018 2019 2020 2021
G eneral Fund
Reserved - $ - $ - $ - $ - $ Unreserved - - - - - Nonspendable 14,390,734 14,262,847 15,246,847 15,739,306 14, 766,327 Restricted - - 10,602,535 11,193,366 13, 875,468 Committed 40,472,141 44,250,119 48,905,672 51,371,732 53, 001,673 Assigned 98,046 121,839 102,866 5,731,509 5, 234,293 Unassigned (deficit) 22,009,527 22,127,231 20,709,758 18,381,515 21,930,270 Total G eneral Fund 76,970,448 $ 80,762,036 $ 95,567,678 $ 102,417,428 $ 108,808,031 $ All Other G overnmental Funds
Reserved - $ - $ - $ - $ - $ Unreserved, reported in:
S pecial revenue funds-RDA - - - - - Capital projects funds-CITY - - - - - Capital projects funds-RDA - - - - - Debt service funds - - - - - Non-Major funds - S pecial revenue funds - - - - - Non-Major funds - Capital projects funds - - - - - Nonspendable 29,508,555 - - - - Restricted (includes COOP) 63,126,537 76,659,696 70,657,761 68,582,916 66, 608,238 Committed 13,543,461 16,488,882 20,467,461 23,190,384 23, 570,191 Assigned - - - - - Unassigned (deficit) (4,338,625)
(1,500,668) (2,047,587) (4,011,524) (8,997,368) Total all other G overnmental Funds 101,839,928 $ 91,647,910 $ 89,077,635 $ 87,761,776 $ 81,181,061 $ Note: T his schedule has been modified pursuant to GASB Statemen t No. 54 which establishes the following classifications (effec tive FY2011) :
nonspendable, restricted, committed, assigned and unassigned.
City of Culver City
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
198
2012 2013 2014 2015 2016
Rev enues
Taxes 69,084,039 $ 60,044,744 $ 68,741,259 $ 75,200,587 $ 78,337,955 $ Licenses and permits 2,959,552 3,040,943 4,664,551 4,301,740 5,088,964 Fines and forfeitures 3,107,415 3,574,853 4,174,721 4,104,462 4,323,432 Investment income 1,168,004 2,852,792 3,451,821 2,958,972 2,315,628 Intergovernmental 17,639,544 11,926,258 10,453,476 11,932,021 11,641,261 Charges for services 11,331,314 10,063,004 11,937,412 12,589,262 15,994,025 S ale of land for resale 285,956 - - - - Other revenues 1,514,011 1,323,474 695,241 15,215,908 1,488,349 Total revenues 107,089,835 92,826,068 104,118,481 126,302,952 119,189,614 Ex pe n di t u r e s
G eneral government 7,493,714 11,905,828 12,190,249 16,881,178 13,210,888 Parks, recreation and community services 6,682,893 6,762,595 7,178,243 7,736,234 7,761,720 Police 28,233,992 29,478,847 32,912,122 32,784,324 34,305,688 Fire 16,588,046 17,199,564 18,121,240 19,097,947 21,531,923 Community development 28,262,728 9,135,006 9,481,641 9,825,125 13,415,458 Public w orks & transportation 9,880,269 9,638,661 10,002,080 10,349,275 11,526,943 Capital outlay 13,962,974 5,551,098 5,620,204 6,260,467 7,426,995 Debt service
Debt issuance costs - - - - - Principal payment 7,257,273 278,416 296,605 335,510 - Interest and fiscal charges 5,275,844 74,649 47,962 11,520 - S ERAF payments - - - - - Pass-through payments - - - - - Payment of refunding bond escrow - prior issue - - - - - Total expenditures 123,637,733 90,024,664 95,850,346 103,281,580 109,179,615 Excess of revenues over (under) expenditures (16,547,898) 2,801,404 8,268,135 23,021,372 10,009,999 Other F inancing Sources (Uses)
Capital contributions - - - - - Transfers in 18,698,313 3,193,169 3,474,210 5,322,403 15,769,002 Transfers out (18,928,680) (3,491,610) (4,399,648) (6,546,760) (16,061,216) Other financing sources 2,310,800
Long-term debt issued - - - - - Payment to refunded bond escrow - current issue - - - - - Original issue premium (discount) - - - - - Total other financing sources (uses) (230,367) (298,441) (925,438) (1,224,357) 2,018,586 Extraordinary Items - G ain (loss) on transfer of assets (8,459,8 09) - - - - and liabilities to RDA successor trust funds
Sp e cia l I t em s (12,541,852) -
Net change in fund balances (25,238,074) $ 2,502,963 $ 7,342,697 $ 9,255,163 $ 12,028,585 $ Debt service as a percentage of noncapital expenditures (a) 11.0 %0 . 4 %0 . 4 %0 . 3 %0 . 0 % Note:
(a) Debt service as a percent of noncapital expenditures is re stated as follow s: The amount of capital outlay used to calcula te the ratio of total debt service expenditures to noncapital expenditures is the sam e as the reconciling item for capital outlay in the reconciliat ion betw een the government-wide statement of activities and the statement of re venues, expenditures, and changes in fund balance. Also only the principal and interest components of debt service expenditures are used in th e calculation of the ratio of total debt service expenditures t o noncapital City of Culver City
Changes in Fund Balances, Governmental Funds (Continued) Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
199
2017 2018 2019 2020 2021
Revenues
Taxes 78,093,238 $ 83,166,967 85,689,848 $ 86,360,835 $ 93,039,590 $ Licenses and permits 4,910,124 8,174,187 8,734,454 7,887,677 3,935,882 Fines and forfeitures 5,080,610 5,822,781 5,468,942 4,478,030 3,562,963 Investment income 1,827,323 2,198,158 5,433,125 6,165,210 3,948,187 Intergovernmental 13,531,055 16,672,290 13,898,876 14,315,212 26,484,519 Charges for services 16,461,731 21,358,952 19,366,008 17,315,109 15,764,212 Sale of land for resale - - - - - Other revenues 652,582 955,418 1,772,685 772,079 586,275 Total revenues 120,556,663 138,348,753 140,363,938 137,294,152 $ 147,321,628 $ Expenditures
General government 14,502,021 25,402,021 17,005,110 16,910,700 19,137,325 Parks, recreation and community services 8,273,036 9,153,817 9,838,098 9,117,856 8,333,075 Police 37,924,974 40,012,677 42,308,470 44,812,950 44,438,831 Fire 22,677,676 23,407,204 25,121,591 24,250,141 26,555,148 Community development 24,163,346 12,144,088 12,866,296 14,609,370 14,555,076 Public works & transportation 11,562,147 12,202,528 13,544,167 13,629,568 13,600,770 Capital outlay 12,945,681 21,275,738 15,971,997 7,268,707 19,915,983 Debt service
Debt issuance costs - - - - - Principal payment - - - - - Interest and fiscal charges - - - - - SERAF payments - - - - - Pass-through payments - - - - - Payment of refunding bond escrow - prior issue -
- - - - Total expenditures 132,048,881 143,598,073 136,655,729 130,599,292 146,536,208 Excess of revenues over (under) expenditures (11,492,218) (5,249,320) 3,708,209 6,694,860 785,420 Other Financing Sour ces (Uses)
Capital contributions - - - - 15,000 Transfers in 11,434,526 38,487,071 5,832,085 6,118,640 3,529,325 Transfers out (12,528,389) (39,638,181) (7,304,927) (7,288,083) (4,521,114) Other financing sources - - - 8,474 1,257 Long-term debt issued - - - - - Payment to refunded bond escrow - current issue - - - - - Original issue premium (discount) - - - - - Total other financing sources (uses) (1,093,863) (1,151,110) (1,472,842) (1,160,969) (975,532) Extraordinary Items - Gain (loss) on transfer of assets - and liabilities to RDA successor trust funds
Special Items 11,599,118 - - - - Net change in fund balances (986,963) $ (6,400,430)$ 2,235,367 $ 5,533,891 $ (190,112) $ Debt service as a percentage of noncapital expenditures (a) 0.0% 0.0% 0.0% 0.0% 0.0% Note:
(a) Debt service as a percent of noncapital expenditures is restated as follows: The amount of capital outlay used to calculate the ratio of total debt service expenditures to noncapital expenditures is the same as the reconciling item for capital outlay in the reconciliation between the government-wide statement of activities and the statement of revenues, expenditures, and changes in fund balance. Also only the principal and interest components of debt service expenditures are used in the calculation of the ratio of total debt service expenditures to noncapital expenditures.
City of Culver City
Tax Revenues by Source
Governmental Funds
(Modified Accrual Basis of Accounting)
200
Fines,
Fiscal Utility Licenses, Forfeitures,
Year Property Tax Sales Tax Users Tax Other Tax Permits Penalties 2012 22,211,508 $ 16,970,122 $ 14,363,708 $ 15,538,701 $ 2,959,552 $ 3,107,415 $ 2013 8,674,103 19,791,627 14,518,808 17,060,206 3,040,943 3,574,853 2014 7,308,615 27,692,291 14,839,873 18,900,480 4,664,551 4,174,721 2015 10,009,164 28,284,352 14,774,331 22,132,740 4,301,740 4,104,462 2016 10,627,556 30,172,506 14,544,069 22,993,824 5,088,964 4,323,432 2017 11,011,319 29,997,495 14,104,504 22,979,920 4,910,124 5,080,610 2018 13,790,871 31,162,345 13,970,775 24,242,976 8,174,187 5,822,781 2019 13,488,817 32,402,882 13,173,647 26,624,502 8,734,454 5,468,942 2020 14,318,618 33,606,943 13,329,640 25,105,634 7,887,677 4,478,030 2021 20,364,416 37,830,897 13,184,794 21,659,483 3,935,882 3,562,963 City of Culver City
Tax Revenues by Source (Continued)
Governmental Funds
(Modified Accrual Basis of Accounting)
201
Revenue
Fiscal Use of Money, from other Charges for Sale of
Year Property Agencies Services Property Other Total
2012 1,168,004 $ 17,639,544 $ 11,331,314 $ 285,956 $ 1,514,011 $ 107,089,835 $ 2013 2,852,792 11,926,258 10,063,004 - 1,323,474 92,826,068 2014 3,451,821 10,453,476 11,937,412 - 695,241 104,118,481 2015 2,958,972 11,932,021 12,589,262 14,214,806 1,001,102 126,302,952 2016 2,315,628 11,641,261 15,994,025 1,488,349 119,189,614 2017 1,827,323 13,531,055 16,461,731 - 652,582 120,556,663 2018 2,198,158 16,672,290 21,358,952 - 955,418 138,348,753 2019 5,433,125 13,898,876 19,366,008 - 1,772,685 140,363,938 2020 6,165,210 14,315,212 17,315,109 - 772,079 137,294,152 2021 3,948,187 26,484,519 15,764,212 - 586,275 147,321,628 City of Culver City
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
202
Net (a) Total
Total Taxable Direct
Fiscal Secured Nonunitary Unsecured Assessed Tax
Year Property Utilities Property Value % Rate (b)
2012 6,943,479,065$ 384,975 $ 454,552,366 $ 7,398,416,406 $ 0.544% 2013 7,079,607,625 384,975 423,766,963 7,503,759,563 0.543% 2014 7,606,284,627 384,975 454,513,567 8,061,183,169 0.095% 2015 8,005,172,894 384,975 456,369,172 8,461,927,041 0.095% 2016 8,449,411,432 606,355 454,726,389 8,904,744,176 0.096% 2017 9,156,963,717 606,355 544,833,320 9,702,403,392 0.096% 2018 9,750,572,579 606,355 578,532,418 10,329,711,352 0.095% 2019 10,423,299,210 606,355 617,105,418 11 ,041,010,983 0.094% 2020 11,280,888,119 606,355 730,011,764 12 ,011,506,238 0.098% 2021 12,479,754,473 1,515,888 729,684,416 13, 210,954,777 0.098% Source: HdL Coren & Cone
Note:
(a) Exemptions are netted directly against the individual property categories. (b) Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.
In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, t he assessed value of property may be i ncreased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassess ed as a result of new construction ac tivity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchas e price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available w ith respect to the actual market value of taxable property and is subject to the limitations described above.
City of Culver City
Direct and Overlapping Property Tax Rates
(Rate per $100 of Assessed Values)
203
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
ity's S hare of 1% Levy Per Prop 13 (a) 0.1043 0.1043 0.1043 0.1043 0. 1043 0.1043 0.1043 0.1043 0.1043 0.1043 edevelopment Rate 1.0037 - - - - - - - - - otal Direct Tax Rate (b) 0.5444 0.5426 0.0946 0.0952 0.0957 0.0962 0.09 50 0.0974 0.0979 0.0984 irect & Overlapping Rates
asic Levy (c):
City's S hare of 1% Levy Per Prop 13 0.1043 0.1043 0.1043 0.1043 0.1043 0.1043 0.1043 0.1043 0.1043 0.1043 Los Angeles County General 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 Culver City Unified S chool District 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 Educat ional Augment at ion Fund Impound 0.1584 0.1584 0.1584 0.1584 0.1584 0.1584 0.1584 0.1584 0.1584 0.1584 Educational Revenue Augmentation Fund 0.0641 0.0641 0.0641 0.0641 0.0641 0.0641 0.0641 0.0641 0.0641 0.0641 Los Angeles Community College District 0.0320 0.0320 0.0320 0.0320 0.0320 0.0320 0.0320 0.0320 0.0320 0.0320 Los Angeles County Library 0.0251 0.0251 0.0251 0.0251 0.0251 0.0251 0.0251 0.0251 0.0251 0.0251 County Flood Control Maintenance 0.0107 0.0107 0.0107 0.0107 0.0107 0.0107 0.0107 0.0107 0.0107 0.0107 County School Services Fund 0.0088 0.0088 0.0088 0.0088 0.0088 0.0088 0.0088 0.0088 0.0088 0.0088 County Fire - FFW 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 0.0080 Children's Institutional T uition Fund 0.0030 0.0030 0.0030 0.0030 0.0030 0.0030 0.0030 0.0030 0.0030 0.0030 Co. Flood Control District Imp Dist. Maint 0.0019 0.0019 0.0019 0.0019 0.0019 0.0019 0.0019 0.0019 0.0019 0.0019 County School Services Fund 0.0015 0.0015 0.0015 0.0015 0.0015 0.0015 0.0015 0.0015 0.0015 0.0015 Development Center Handicapped Minors 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 Culver City Children's Cent er Fund 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 LA Community College Children's Cntr Fund 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 LA Co West V ector Control Dist. 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 Co. Accumulative Capital Outlay 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 asic Levy 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 ounty Detention Facilities 1987 Debt - - - - - - - - - - ulver City Unified 0.0352 0.0361 0.0314 0.0778 0.0717 0.0663 0.0649 0.0644 0.0495 0.0483 l Camino community college 0.0169 0.0185 0.0175 0.0174 0.0175 0.0229 0.0212 0.0222 0.0216 0.0236 nglewood Unified School District 0.1128 0.1214 0.1561 0.1499 0.1276 0.1135 0.1168 0.1308 0.0983 0.0929 a Ccd Ds 2008 2012 S eries F - 0.0112 - - - - - - - - a Community college District 0.0353 0.0376 0.0445 0.0402 0.0358 0.0360 0.0460 0.0462 0.0272 0.0402 a County Flood Control - - - - - - - - - - os Angeles Unified School District 0.1682 0.1756 0.1464 0.1469 0.1297 0.1311 0.1222 0.1232 0.1255 0.1399 Metropolitan Water District 0.0037 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 Total Direct & Overlapping (d) Tax Rates 1.3721 1.4039 1.3994 1.4357 1.3857 1.3733 1.3746 1.3904 1.3256 1.3485 rce: HdL Coren & Cone
es:
City's share of 1% Levy is based on the City's share of the gen eral fund tax rate area with the largest net taxable value within the City.
Total Direct Rate is the weighted average of all individual dir ect rates applied by the government preparing the statistical section information
In 1978, California voters passed Proposition 13 w hich sets the property tax rate at a 1.00% fixed amount. This
1.00% is shared by all taxing agencies for which the subject pr operty resides within.
Overlapping rates are those of local and county governments tha t apply to property ow ners w ithin the City.
Not all overlapping rates apply to all city property ow ners.
City of Culver City
Principal Property Taxpayers
Current Year and Nine Years Ago
204
Total Net Assessed V alu e 13,210,954,777$ 100.00% 7,398,416,406$ 100.00% Percentag e Percentag e
Net of Total Net of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Lot, Inc. 518,535,596 $ 1 3.93% 296,910,724 $ 1 4.01% Fox Hills Mall LLC/Westfield 229,333,143 2 1.74% 93,450,475 5 1.26% LBA RV Company IX LP 174,731,338 3 1.32% 0.00% Equity One Culver LLC 172,340,146 4 1.30% 65,141,558 9 0.88% Ivy S tation LLC 162,138,664 5 1.23% 0.00%
S ony Pictures Entertainment Inc. 154,165,729 6 1.17% 104,576,787 4 1.41% Reep Ofc Corporate Pointe CA LLC 142,075,215 7 1.08% 0.00% V CP CP Culver City LLC 119,646,000 8 0.91% 0.00% 900 CP Ow ner LLc 118,942,233 9 0.90% 0.00%
Higuera Office LLC 118,685,430 10 0.90% 0.00%
S ymantec Corporation 123,763,623 2 1.67%
Transw estern Corporate Pointe LLC 106,859,905 3 1.44% TCE Filmland Holdings LLC 91,175,033 6 1.23%
PCCP S tudio City Los Angeles TCS 83,795,135 7 1.13% Sy Culver City Portfolio Limited Partnership 72,372,546 8 0.98% Raintree Realty LLC 56,423,906 10 0.76%
Total 1,910,593,494 $ 14.46% 1,094,469,692 $ 14.79% Source: Los Angeles County Assessor 2020/21 Combined Tax Rolls 2021 2012
City of Culver City
Property Tax Levies and Collections
Last Ten Fiscal Years
205
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year (a) Amount of Levy Years Amount (b) of Levy 2012 3,501,754 $ 3,228,955 $ 92.2% 211,908 $ 3,440,863 $ 98.3% 2013 3,567,169 3,279,095 91.9% 257,919 3,537,014 99.2% 2014 3,728,144 3,615,637 97.0% 83,828 3,699,465 99.2% 2015 3,967,342 3,927,081 99.0% 24,676 3,951,757 99.6% 2016 4,206,744 4,077,754 96.9% 76,381 4,154,135 98.7% 2017 4,502,642 4,351,205 96.6% 135,489 4,486,694 99.6% 2018 4,819,004 4,760,227 98.8% 32,365 4,792,592 99.5% 2019 5,034,210 4,868,637 96.7% 132,427 5,001,064 99.3% 2020 5,545,156 5,275,583 95.1% 225,575 5,501,158 99.2% 2021 5,958,387 5,172,380 86.8% 172,400 5,344,780 89.7% Source: HdL Coren & Cone, Los Angeles County Assessor
Notes:
(a) Prior year data has been revised to include Base Year Revenue. The amount of each year's levy does not include Increment Revenue or Debt Revenue of the Redevelopment Agency. The Redevelopment Agency is not a blended component unit of the City due to AB 1x 26 - Redevelopment Agencies Dissolution effective February 1, 2012. (b) Starting FY2008, penalty charges are excluded in total collections to date and delinquent taxes are reported by levy year rather than by collection year.
(c) The decrease in percentage collected is the result of the State partial shift of financial responsibility for education funding to local governments by allocating local property tax revenues to Education Revenue Augmentation Fund (ERAF) directing that these local agency property taxes be deposited into funds to support schools.
Collected within the
Fiscal Year of the Levy Total Collections to Date
City of Culver City
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
206
Total Wastewater Certificates Total Total Percentage Debt Fiscal Redevelopment Capital Governmenta l Revenue of Capital Business-type Primary of Personal Per Year Bonds Leases Loans Activities Bonds Participation Leases Activiti es Government Income (b) Capita (b) 2012 - $ - $ 910,531$ 910,531 $ 18,795,000$ 2,805,000 $ - $ 21,600,000$ 22,510,531 $ 1.4% 577 2013 - - 632,115 632,115 18,075,000 2,160,000 - 20,235,000 20,867,115 1.3% 532 2014 - - 335,510 335,510 17,335,000 1,480,000 - 18,815,000 19,150,510 1.1% 484 2015 - - - - 16,575,000 760,000 - 17,335,000 17,335,000 1.0% 438 2016 - - - - 15,785,000 - - 15,785,000 15,785,000 0.9% 390 2017 - - - - 14,970,000 - - 14,970,000 14,970,000 0.8% 373 2018 - - - - 14,120,000 - - 14,120,000 14,120,000 0.8% 354 2019 - - - - 13,235,000 - - 13,235,000 13,235,000 0.7% 329 2020 - - - - 22,875,525 - - 22,875,525 22,875,525 1.1% 576 2021 - - - - 22,330,677 - - 22,330,677 22,330,677 1.0% 561 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
For the 10 years ending June 30, 2021, the City had no General Obligation Bonds. (a) Due to the dissolution of the Culver City Redevelopment Agency (CCRA) on February 1, 2012, all of the CCRA's debt has been moved to the Successor Agency (Fiduciary Fund)
(b) See Demographic and Economic Statistics for personal income and population data. These ratios are calculated using personal income and population for the prior calendar year.
Governmental Activities Business- type Activities
City of Culver City
Direct and Overlapping Governmental Activities Debt
As of June 30, 2021
207
City Assessed V aluation 6,086,969,624 $
S uccessor Agency Incremental V aluation 7,123,985,153
Total Net Taxable Assessed V aluation 13,210,954,777 $
Estimated
Sh ar e o f
Estimated Direct and
Debt P ercent age Overlapping
Outstanding Applicable Debt
Overlapping Debt Repaid w ith V oter-Approved Property Taxes:
Los Angeles County - $ - $
Los Angeles County Flood Control District - - Metropolitan Water District 13,101,783 0.829% 108,676 El Camino College District 442,085,305 0.004% 16,716 Los Angeles Community College District 4,405,250,000 1.371% 60,374,328 Culver City Unified S chool District 115,585,000 99.602% 115,125,168 Inglew ood Unified S chool District 138,470,000 0.032% 44,093 Los Angeles Unified S chool District 10,709,685,000 0.007% 755,967 S ubtotal, overlapping debt 2.90% 176,424,948
C ity d irect d eb t 0.00% -
Total direct and overlapping debt 2.90% 176,424,948$
Source: HdL Coren & Cone, Los Angeles County Assessor 2020/2021 Combine d Lien Date Tax Rolls Note: Overlapping governments are those that coincide, at least in pa rt, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapp ing governments that is borne by the residents and businesses o f Culver City. This process recognizes that, w hen considering the city's ability to issue and repay long-term debt, the entire d ebt burden borne by the residents and businesses should be taken into acco unt. How ever, this does not imply that every taxpayer is a resident—and therefore responsible for repaying the debt—of eac h overlapping government. The overlapping debt represents 2.90 % of the City's 2020/2021 assessed valuation or $ 176.4 million.
City of Culver City
Legal Debt Margin Information
Last Ten Fiscal Years
208
2012 2013 2014 2015 2016
Total assessed valuation 7,652,983,856 $ 7,752,446,647 $ 8,323,791,063 $ 8,732,804,582 $ 9,169,218,845 $ Debt Limit percentage 15% 15% 15% 15% 15%
Debt Limit 1,147,947,578 $ 1,162,866,997 $ 1,248,568,659 $ 1,309,920,687 $ 1,375,382,827 $ Amount of debt applicable to the limit: - $ - $ - $ - $ - $
Legal Debt Margin 1,147,947,578 $ 1,162,866,997 $ 1,248,568,659 $ 1,309,920,687 $ 1,375,382,827 $ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Note : In accordance with California Government Code, total general obligation bonds outstanding cannot exceed 15 percent of total assessed valuation. For the 10 years ended June 30, 2021, the City was not obligated in any manner for general obligation bonds.
City of Culver City
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
209
2017 2018 2019 2020 2021
Total assessed valuation $9,949,044,594 10,555,362,319 $ 11,323,006,988 12,281,599,213 13,423,021,867 Debt Limit percentage 15% 15% 15% 15% 15%
Debt Limit 1,492,356,689 $ 1,583,304,348 $ 1,698,451,048 $ 1,842,239,882 $ 2,013,453,280 $ Amount of debt applicable to the limit: - $ - $ - $ - $ - $
Legal Debt Margin 1,492,356,689 $ 1,583,304,348 $ 1,698,451,048 $ 1,842,239,882 $ 2,013,453,280 $ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Note : In accordance with California Government Code, total general ob ligation bonds outstanding cannot exceed 15 percent of total assessed valuation. For the 10 years ended June 30, 2021, the City was not obligated in any manner for general obligation bonds.
City of Culver City
Pledge-Revenue Coverage
Last Ten Fiscal Years
210
Utility Interest Less: Net
Fiscal Service Earnings Operating Available Tax Increment Year Charges (a) Expenses Revenue Principal Interest Coverage Collectio ns Principal Interest Coverage 2012 7,863,788$ 135,302 $ 5,280,044 $ 2,719,046 $ 700,000 $ 895,550 $ 1.70 16,254,000 (c) 6,995,000 5,168,751 1.34 2013 8,087,378 15,288 4,870,305 3,232,361 720,000 876,000 2.03 - - - - 2014 8,955,665 182,820 6,908,976 2,229,509 740,000 854,100 1.40 - - - - 2015 9,148,771 143,890 7,305,113 1,987,548 760,000 830,650 1.25 - - - - 2016 9,899,422 157,496 7,432,671 2,624,247 790,000 804,475 1.65 - - - - 2017 8,966,730 53,257 6,524,897 2,495,090 815,000 773,431 1.57 - - - - 2018 9,722,970 92,353 5,762,856 4,052,467 850,000 739,213 2.55 - - - - 2019 11,019,497 524,297 7,255,209 4,288,585 885,000 700,650 2.70 - - - - 2020 10,903,349 712,362 6,783,730 4,831,981 925,000 754,258 2.88 - - - - 2021 10,111,096 (d) (17,837) 6,144,619 3,948,640 425,000 856,175 3.08 - - - - Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest expense, depreciation, or amortization expenses. (a) Per the Wastewater Facilities Revenue Bond covenant, interest earnings are included when computing net available revenue for bond compliance purposes. (c) Due to the dissolution of the Culver City Redevelopment Agency (CCRA) on February 1, 2012, Tax Increment collections are through January 31, 2012. (d) The investment earning of ($17,837) was caused by the reversal of the $403,008 FMV gain for FY212019-20, which exceeded the $126,162 FMV gain for FY2020-21. (b) The 1999 Wastewater Facilities Revenue Bonds were issued on December 8, 1999. The 1999 Bonds were defeased and replaced by the 2009 Bonds issued on July 21, 2009.
By November 2019, the 2009 Bonds were paid off and replaced by 2019 Bonds.
Wastewater Facilities Revenue Bonds (b) Tax Allocation Bonds Debt Service Debt Service
City of Culver City
Demographic and Economic Statistics
Last Ten Calendar Years
211
Personal Per
Income Capita
Calendar (thousands Personal Unemployment
Year Pop ulation of dollars) Income Rate
2011 39,004 1,573,382 $ 40,339 $ 8.5% 2012 39,210 1,666,111 42,492 6.3% 2013 39,579 1,710,881 43,227 5.2% 2014 39,597 1,759,809 44,443 6.1% 2015 40,448 1,802,070 44,552 4.9% 2016 40,103 1,835,056 45,758 3.8% 2017 39,860 1,849,593 46,402 3.3% 2018 40,173 1,942,963 48,364 4.4% 2019 39,705 2,032,826 51,198 4.1% 2020 39,805 2,256,856 56,697 10.8% Sour c e: HDL 2020-21 ACFR Statistical Basic Package for City of Culver City City of Culver City
Principal Employers
Last Ten Fiscal Years
212
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment S ony Pictures Entertainment 6,000 1 26.55% 6,000 1 25.75% Westfield S hoppingtow n-Fox Hills
G oldrich & Kest Industries, LLC 1,100 2 4.87% 1,100 2 4.72% S outhern CA Hospital (Brontman Medical Ctr) 860 4 3.81% 860 4 3.69% Culver City Unified S chool District 1,084 3 4.80% 1,084 3 4.65% Sy m a n t ec 800 5 3.43%
City of Culver City 644 5 2.85% 638 6 2.74%
Metric Prod u cts
Radisson Hotel
Kaiser Permanente
S ecurity Industry S pecialists 400 6 1.77% 400 7 1.72% West Los Angeles College
NFL Media
Target 400 7 1.77% 400 8 1.72%
Inovel
Karl S torz Endoscopy
Kayne-Eras Center 300 8 1.33% 300 9 1.29%
Moldex-Metric 300 9 1.33% 300 10 1.29%
JC Penny 274 10 1.21%
Beats by Dre/Apple, Inc.
Total Top 10 Employers 11,362 50.27% 11,882 51.00%
Total City Labor Force (1) 22,600 23,300
Source: Finance Department
2012 2013
City of Culver City
Principal Employers (Continued)
Last Ten Fiscal Years
213
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment S ony Pictures Entertainment 3,200 1 12.90% 3,200 1 12.92% Westfield S hoppingtow n-Fox Hills
Goldrich & Kest Industries, LLC 717 6 2.89% 717 6 2.90% S outhern CA Hospital (Brontman Medical Ctr) 1,000 2 4.03% 1,000 2 4.0 4% Culver City Unified S chool District 771 4 3.11% 771 4 3.11% S ymantec 900 3 3.63% 900 3 3.63%
City of Culver City 760 5 3.06% 767 5 3.10%
Metric Products
Radisson Hotel
Kaiser Permanente
S ecu rity Ind u s try S pecialis ts
West Los Angeles College 575 7 2.32% 575 7 2.32%
NFL Media 500 8 2.02% 500 8 2.02%
Target 475 9 1.92% 475 9 1.92%
Inovel
Karl S torz Endoscopy
Kayne-Eras Center
Moldex-Metric
JC Penny
Beats by Dre/Apple, Inc. 450 10 1.81% 411 10 1.66%
Total Top 10 Employers 8,898 37.69% 9,316 37.62% Total City Labor Force (1) 24,800 24,761
Source: Finance Department
20152014
City of Culver City
Principal Employers (Continued)
Last Ten Fiscal Years
214
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment S ony Pictures Entertainment 3,400 1 14.98% 3,000 1 12.24% Westfield S hoppingtow n-Fox Hills 1,500 2 6.12% Goldrich & Kest Industries, LLC 717 6 3.16% 700 5 2.86% S outhern CA Hospital (Brontman Medical Ctr) 1,167 2 5.14% 720 4 2.94% Culver City Unified School District 760 4 3.35% 760 3 3.10% S ymantec 700 5 3.08% 700 5 2.86%
City of Culver City 871 3 3.84% 650 6 2.65% Metric Prod u cts
Radisson Hotel
Kaiser Permanente
S ecurity Industry Specialists
West Los Angeles College 600 7 2.64% 600 7 2.45% NFL Media 525 8 2.31% 525 9 2.14%
Target 575 9 2.53% 575 8 2.35%
Inovel
Karl S torz Endoscopy
Kayne-Eras Center
Moldex-Metric
JC Penny
Beats by Dre/Apple, Inc. 460 10 2.03% 500 10 2.04% Total Top 10 Employers 9,775 43.06% 10,230 41.76% Total City Labor Force (1) 22,700 24,500
Source: Finance Department
2016 2017
City of Culver City
Principal Employers (Continued)
Last Ten Fiscal Years
215
Percentag e Percentag e
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment S ony Pictures Entertainment 3,000 1 11.66% 3,563 1 14.43% Westfield S hoppingtow n-Fox Hills 1,550 2 6.03% 1,539 2 6.23% Goldrich & Kest Industries, LLC 675 6 2.62% 675 7 2.73% S outhern CA Hospital (Brontman Medical Ctr) 730 5 2.84% 1,121 3 4.54% Culver City Unified S chool District 750 4 2.92% 870 4 3.52% S ymantec 550 9 2.14%
City of Culver City 800 3 3.11% 823 6 3.33% Metric Products 11 10 0.04%
Radisson Hotel 145 9 0.59%
Kaiser Permanente
S ecu rity Ind u stry S pecialists
West Los Angeles College 625 7 2.43% 833 5 3.37% NFL Media 515 10 2.00%
Targ et 590 8 2.29% 531 7 2.15%
Inovel
Karl S torz Endoscopy
Kayne-Eras Center
Moldex-Metric 360 8 1.46%
JC Penny
Beats by Dre/Apple, Inc. 490 1.90%
Total Top 10 Employers 10,275 39.94% 10,471 42.42% Total City Labor Force (1) 25,725 24,686
Source: Finance Department
2018 2019
City of Culver City
Principal Employers (Continued)
Last Ten Fiscal Years
216
Percentag e Percentag e
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Sony Pictures Entertainment 3,000 1 11.63% 3,000 1 11.92% Westfield S hoppingtow n-Fox Hills 1,500 25 . 8 1 % 1,500 25 . 9 6 % Goldrich & Kest Industries, LLC 670 72 . 6 0 % 670 82 . 6 6 % Southern CA Hospital (Brontman Medical Ctr) 1,116 34 . 3 3 % 1,116 34 . 4 4 % Culver City Unified School District 800 43 . 1 0 % 800 63 . 1 8 % Sy m an t ec 373 91 . 4 5 %
City of Culver City 798 53 . 0 9 % 808 53 . 2 1 % Metric Products 4 4
Radisson Hotel /Doubletree 42 68
Kaiser Permanente 84
Security Industry Specialists 291 10 1.13% West Los Angeles College 739 72 . 9 4 % NFL Media 692 62 . 6 8 % 957 43 . 8 0 % Targ et 484 81 . 8 8 % 507 92 . 0 2 % Inovel
Karl S torz Endoscopy
Kayne-Eras Center 131 159 10 0.63% Moldex-Metric 263
JC Penny 189 143
Beats by Dre/Apple, Inc.
Total Top 10 Employers 10,353 37.69% 10,555 40.76% Total City Labor Force (1) 25,803
25,160
Source: Finance Department
20212020
City of Culver City
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
217
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
General government 68 68 68 69 68 75 73 74 78 83 Parks, recreation and community services 30 31 31 31 31 32 33 33 33 33 Police 153 156 157 157 160 162 150 150 159 156 Fire 69 71 69 71 72 72 72 72 79 79 Community development 52 36 36 36 36 37 39 40 40 46 Public works 49 48 48 49 51 53 53 54 56 58 G r a n t s o p e r a t i n g 976667 7 8 8 6 I n t e r n a l s e r v i c e 4 14 14 14 24 34 3 4 4 44 44 37 Refuse 40 40 40 41 42 46 46 50 50 52 Transit 122 129 129 151 152 153 155 157 160 161 S e w e r 1 11 11 11 11 11 2 1 2 12 12 12 Total 644 638 636 663 673 692 684 694 7 1 8 721 Sour c e: City Budget Office
Note: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full-time-equivalent employment is calculated by dividing total labor hours by 2,080.
City of Culver City
Operating Indicators by Function
Last Ten Fiscal Years
218
2012 2013 2014 2015 2016
G eneral government
Building permits issued 2,240 2,488 2,336 2,756 3,029 Building inspections conducted 8,209 9,590 9,609 10,925 12,614 Police
Arrest ees Processed 1,372 1,491 1,611 1,239 1,242 Parking citations 30,705 37,236 37,681 38,681 40,009 Traffic citations 12,414 19,027 10,028 9,003 8,981 Fire
Emergency responses 4,471 4,681 4,969 5,375 5,684 Fire Emergency Incidents 194 197 210 215 215 Commercial Fire S afety Inspections 2,106 2,653 2,742 2,810 2,800 Refuse collection
Residential Refuse & Greenwaste collected (tons per day) 43 42 42 43 43 Commercial Refuse Collected (tons per day) 121 143 143 130 141 Responses to Customer Service Requests 200 120 120 120 120 Public Works
Traffic Engineering Investigations 4,619 4,601 4,601 4,685 4,721 Tons of Asphalt Placed 300 325 325 230 207 Damaged S idewalk removed/replaced (sq ft) 8,040 8,100 8,100 10,084 9,103 Trees Tri mmed 3,172 3,200 3,200 4,958 4,350 Parks and recreation
Park picnic permits issued 963 1,300 1,276 1,026 933 Participation in Youth S ports 3,500 5,345 5,328 4,950 4,480 Participation in Adults Sports 44,200 36,800 43,766 45,456 48,312 Transit - Municipal buses
Total service miles 1,497,434 1,585,103 1,589,108 1,593,248 1,658,913 Passengers 5,331,071 5,550,045 5,416,010 4,979,334 5,653,192 Source: Annual Budget s and various cit y depart ment s.
City of Culver City
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
219
2017 2018 2019 2020 2021
G eneral government
Building permits issued 2,930 2,954 3,023 2,548 2,752 Building inspections conducted 12,948 12,638 14,212 14,318 11,781 Police
Arrestees Processed 1,166 2,513 1,986 1,451 947 Parking citations 36,961 41,038 39,081 28,713 11,414 Traffic citations 5,347 8,612 6,106 3,100 3,205 Fire
Emergency responses 6,106 6,857 6,753 6,505 6,236 Fire Emergency Incidents 206 270 221 250 299 Commercial Fire S afety Inspections 3,032 2,929 2,825 2,781 2,802 Refuse collect ion
Residential Refuse & Greenwaste collected (tons per day) 43 41 40 44 46 Commercial Refuse Collected (tons per day) 105 76 85 84 76 Responses to Customer S ervice Requests 150 150 88 83 86 Public Works
Traffic Engineering Investigations 4,816 4,782 4,800 5,202 5,420 Tons of Asphalt Placed 555 85 128 119 1,751 Damaged S idew alk removed/replaced (sq ft) 32,795 3,620 4,052 2,000 13,540 Trees Trimmed 3,938 3,106 3,517 3,209 3,518 Parks and recreation
Park picnic permits issued 1,018 1,148 1,114 523 83 Participation in Youth S ports 10,984 32,333 34,021 15,601 193,186 Participation in Adults S ports 49,572 57,295 52,727 87,718 47,784 Transit - Municipal buses
Total service miles 1,686,317 1,658,633 1,656,768 1,551,211 1,443,703 Passengers 5,070,970 4,864,138 4,600,876 3,388,031 1,692,993 Source: Annual Budgets and various city departments.
City of Culver City
Capital Asset Statistics by Function
Last Ten Fiscal Years
220
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 26 25 27 21 21 23 23 28 31 28 Motorcycle units 13 11 13 14 11 11 11 7 8 8 Detective Units 30 30 34 38 38 38 38 39 32 29 Parking Enforcement Units 8 8 8 9 8 8 8 11 11 11 Fire stations 3 3 3 3 3 3 3 3 3 3 Refuse collection
Collection trucks 19 22 22 22 22 22 22 23 23 23 Other public works
Streets (miles) 119.6 119.6 119.6 119.6 119.6 119.6 119.6 119.6 120 120 Highways (miles) 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2 2 Streetlights 3,596 3,596 3,596 3,596 3,596 3,661 3,653 3,654 3,655 3,681 Traffic signals 104 104 104 105 105 106 106 107 108 108 Parks and recreation
Acreage 100 100 100 100 100 100 100 100 92 92 Community parks 8 8 8 8 8 8 8 8 2 1 Neighborhood parks 6 6 6 6 6 6 4 4 7 10 Mini parks 4 4 4 4 4 4 2 2 5 2 Wastewater
Sanitary sewers (miles) 90 90 90 90 90 90 90 91 91 91 Pumping (lift) stations 7 7 7 7 7 7 7 7 7 7 Transit - Municipal buses 52 52 52 54 54 56 56 54 54 54 S ource: Various city departments