CITY OF CULVER CITY, CALIFORNIA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
City of Culver City, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
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, 2022
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 xxii
Organization Chart xxiii
GFOA Certificate of Achievement for Excellence in Financial Reporting xxiv
FINANCIAL SECTION
Independent Auditor’s Report on Financial Statements 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position 25
Statement of Activities 27
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet 31
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position 33
Statement of Revenues, Expenditures, and Changes in Fund Balances 34 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the
Government-Wide Statement of Activities 36
Proprietary Fund Financial Statements:
Statement of Net Position 39
Statement of Revenues, Expenses, and Changes in Net Position 43 Statement of Cash Flows 45
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position 50
Statement of Changes in Fiduciary Net Position 51
Index to the Notes to the Basic Financial Statements 53 Notes to the Basic Financial Statements 56
City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2022
Table of Contents
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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 117
CalPERS Safety Plan 119
Schedule of Contributions – Pensions
CalPERS Miscellaneous Plan 121
CalPERS Safety Plan 123
Schedule of Changes in Net OPEB Liabilities and Related Ratios 125 Schedule of Contributions – OPEB 127
Budgetary Comparison Schedule:
General Fund 129
Culver City Housing Authority Special Revenue Fund 130
Note to the Required Supplementary Information (Unaudited) Budgetary Comparison Schedule 131
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 137
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 141 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Gas Tax Special Revenue Fund 145
Proposition A Local Return Special Revenue Fund 146
Proposition C Local Return Special Revenue Fund 147
Measure R Special Revenue Fund 148
Operating Grants Special Revenue Fund 149
Section 8 Housing Special Revenue Fund 150
Art in Public Places Special Revenue Fund 151
Community Development Special Revenue Fund 152
Community Development Block Grant (CDBG) Special Revenue Fund 153 Special Assessment Special Revenue Fund 154
Park Facilities Special Revenue Fund 155
Asset Seizure Special Revenue Fund 156
Parking Authority Special Revenue Fund 157
Safe/Clean Water Protection Special Revenue Fund 158
City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2022
Table of Contents
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PAGE
Supplementary Information (Continued):
Nonmajor Special Revenue Funds (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Measure W 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
Major and Nonmajor Capital Projects Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Capital Improvement and Acquisition Capital Projects Fund 166 Capital Improvement Grants Capital Projects Fund 167
Nonmajor Capital Projects Funds:
Combining Balance Sheet 168
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 169 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Cooperative Projects Capital Projects Fund 170
CDBG Capital Projects Fund 171
Internal Service Funds:
Combining Statement of Fiduciary Net Position 173
Combining Statement of Changes in Fiduciary Net Position 175 Combining Statement of Cash Flows 176
Custodial Fund Financial Statements:
Combining Statement of Fiduciary Net Position 179
Combining Statement of Changes in Fiduciary Net Position 180
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents 182
Net Position by Component 183
Changes in Net Position 185
Program Revenues by Revenue Function 189
Fund Balances, Governmental Funds 191
Changes in Fund Balances, Governmental Funds 193
Tax Revenues by Source 195
City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2022
Table of Contents
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PAGE
STATISTICAL SECTION (Unaudited) (Continued)
Assessed Value and Estimated Actual Value of Taxable Property 197 Direct and Overlapping Property Tax Rates 198
Principal Property Taxpayers 199
Property Tax Levies and Collections 200
Ratios of Outstanding Debt by Type 201
Direct and Overlapping Governmental Activities Debt 202 Legal Debt Margin Information 203
Pledged-Revenue Coverage 205
Demographic and Economic Statistics 206
Principal Employers 207
Full-Time Equivalent City Government Employees by Function/Program 208 Operating Indicators by Function 209
Capital Asset Statistics by Function 211
FINANCE DEPARTMENT
9770 CULVER BOULEVARD, CULVER CITY, CALIFORNIA 90232-0507 PHONE (310) 253-5865
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FAX (310) 253-6010
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March 30, 2023
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 for the fiscal year ended June 30, 20 22. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. In our opinion, the data is fairly presented in all material aspects and presented in a manner designed to set forth the financial position and results of operations of the City including 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 Generally Accepted Accounting Princip les (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 responsibility 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 reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the C ity's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial 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 independent audit was to provide reasonable assurance that the financial statements of the City of Culver City, California for the fiscal year ended June 30, 2022, 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 accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit conducted, that there was a reasonable basis for rendering an unmodified opinion that the City of Culver City, California's financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditors' 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 engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of Federal awards. These reports are available in the City's separately issued Single Audit Report.
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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 read 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 oin western 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 government. Under this system, the people elect a City Council of five citizens who serve a four -year term 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 population of approximately 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, park, 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 Project Funds and an operating plan for Proprietary Funds. These budgets are adopted and presented for reporting purposes in a manner consistent with GAAP.
The City of Culver City is also financially accountable for the legally separate Cul ver 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 in January 2012.
Additional information on all of the se 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 18 of the Notes to the Basic 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 amendments approved by the City Council subsequent to the initial budget adoption. The City Manager may authorize transfers of appropriations within the adopted budget. Supplemental appropriations during the 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 unencumbered appropriations that have not been approved for carryover by the City Manager lapse at the end of the fiscal year. Encumbered appropriations are reappropriated in the ensuing year's budget. The City utilizes an encumbrance accounting system, whereby commitments such as purchase orders and unperformed contracts are recorded in Assigned Fund Balance 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. At which time, Franciscan Father Junípero Serra began to establish the missions from San Diego northward. The Native Americans in the area became known as the "Gabrielino Indians", due to their proximity to the San Gabriel Mission established in 1771. In 1781, the "Pueblo de Nuestra Señora la Reina de Los Angeles" was established by eleven families and an escort of Spanish soldiers. In another expedition later that year, a young soldado, José Manuel Machado arrived in California along with his wife. Machado eventually completed his military duty and retired with h is 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 the time Agustín Machado, the most prominent owner of Rancho La Ballona, passed away in 1865, Rancho La Ballona had functioned under three governments: Spain, Mexico and the United States.
The Gold Rush and the expansion of the railroad enticed people to move west and the area around what was the Rancha La Ballona was further developed In 1904, Abbot Kinney bought land to develop his "Venice of America". In 1910, a young man from Nebraska, named Harry H. Culver arrived in California 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 with the movie industry, saw American filmmaker, Thomas Ince, making a movie with actors in canoes on La Ballona Creek. He convinced the filmmaker 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 expanding to include six lots, covering more than 180 acres. What began as Ince/Triangle Studios became Goldwyn, then successively Metro Goldwyn Mayer, Lorimar and Columbia Pictures. In 1989, electronics and information technology giant Sony Corporation purchased Columbia Pictures, and the site is now the global headquarters for Sony Pictures Entertainment.
By 1919, Ince had moved east on Washington Boulevard to establish his second studio. After he died in 1924, this studio prospered as De Mille Studios, Selznick Studios, R.K.O., Pathe, R.K.O.-Pathe, Desilu, Culver Studios, Laird International, The Culver Studios, and most recently, Amazon Studios . The third major studio was Hal Roach Studios, which existed from 1919 through 1963. It was known as the "Laugh Factory of the World", where the Our Gang Comedies and Laurel and Hardy were filmed. In recognition of this rich film history, the "Heart of Screenland" appears on the 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" was relocated to Van Buren Place until 1928 when a new City Hall was dedi cated at 9770 Culver Boulevard. That original structure was eventually replaced by the current 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 1920s, Culver City was known for its nightspots like Fatty Arbuckle's Plantation Cafe and Frank Sebastian's Cotton Club. The establishment of the Western Stove manufacturing plant on Hays Street (now National Boulevard) in 1922 marked the beginning of local industry in Culver City. Despite the Depression, building continued with endeavors like Helms Bakery which supplied foodstuffs for the 1932 Olympics in Los Angeles. The first industrial area, the Hayden Tract, became a reality in the 1940s In 1947, Culver City became a Charter City and in 1949 Culver City became a unified school district. The Junior and Senior High Schools were built to complement what eventually numbered eight elementary schools (presently
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there are five). Hughes Aircraft was located nearby and became a major employer of Culver City residents, in addition to Helms and the studios. In 1950, the Veterans' Memorial Building was completed, Culver Center was built, and car dealerships lined Washington Boulevard. The Fiesta La Ballona began in 1951 to celebrate the Spanish heritage of the area. In the fall of 1975, Fox Hills Mall was completed as the City’s first major redevelopment project of the Culver City Redevelopment Agency. More redevelopment projects followed in the 1980s including the Filmland Corporate Center, Meralta Plaza and the beginnings of Corporate Pointe.
Redevelopment efforts continued to advance the vitality of commercial corridors throughout the City in the early 2000s. In Downtown Culver City, several projects spurred new restaur ants and retail including the completion of the 12-screen theater complex, Town Plaza, and the revitalization of the Culver Theatre and the Ivy Substation as live theater venues. Additionally, the Culver City Redevelopment Agency completed landscape and lighting improvements on the east side of town to foster a thriving arts district while acquiring properties on the west side of the City to pursue mixed use projects with selected developers. The elimination of redevelopment agencies in 2012 significantly thwarted further development efforts.
The dissolution of the Culver City 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 (Successor Agency) Pursuant to the state’s redevelopment agency dissolution statutes, the City of Culver City elected to serve as the Successor Agency charged with winding down the affairs of the Culver City 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 increment in excess of the former Redevelopment Agency’s enforceable obligations will be disbursed to taxing entities.
In December 2013, the City as Successor Agency to the Culver City Redevelopment Agency received a ‘finding of completion’ from the State’s Department of Finance (DOF) which required the submission of a Long-Range Proper ty Management Plan (LRPMP) detailing the disposition of former Redevelopment Agency properties. The LRPMP was approved in March 2014 resulting in the reactivation of significant redevelopment projects such as the Culver Steps (formerly referred to as “Parcel B”), Baldwin Property (formerly referred to as “The Lucky”), Culver Public Market and the Ivy Station attracting creative industries and amenities. While most of these projects have since been completed, work on the Culver Public Market was impacted by the COVID-19 pandemic and is still under construction.
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 specific environment within which the City of Culver City, California operates.
Nationally, the economic recovery from the COVID-19 pandemic is being tempered by concerns about inflation and the Federal Reserve’s raising of interest rates.
In March 2021, the $1. 9 trillion American Rescue Plan Act (ARPA) of 2021 was signed into law. Culver City received the first $4.69 million tranche of ARPA funds in Fiscal Year 2020-2021 and the second and final $4.69 million in Fiscal Year 2021-2022. The City is not anticipated to receive any additional ARPA funding nor it is anticipated to receive any direct funding from the federal Inflation Reduction Act enacted in August 2022.
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Reports continue to demonstrate modest economic growth with signs of economic softening. The Bureau of Economic Analysis estimates that real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of 2022, after increasing 3.2 percent in the third quarter.
On February 1, 2023, the Federal Reserve raised the target range for the federal funds rate to 4.5% to 4.75% as part of an ongoing attempt to achieve maximum employment and inflation at the rate of 2% over the longer run. This was the Federal Reserve’s eighth interest rate increase in a year. On February 14, 2023, the Bureau of Labor Statistics reported that the U.S. Consumer Price Index for all items increased 6.4% for the 12 months ending January 2023.
According to S&P Global, the U.S. real GDP grew 2.0% in 2022 and is projected to increase 0.5% in 2023 and 1.8% for 2024.
The geopolitical climate continues to pose uncertainty for the national economic outlook due in part to the ongoing war in the Ukraine, contentious federal trade and international policies, and ongoing supply chain issues which may extend into the next year or two. City staff will continue to cautiously monitor these critical dynamics 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 varied collection of businesses that range from traditional retail and manufacturing to major film studios .
Mainstay companies such as Costco, Westfield-Culver City Mall and Sony Pictures Entertainment occupy a traditional niche as large institutional property owners, tax producers and employers. Some companies, including Apple and Amazon, have expanded their local footprint and have added or plan to add employees as part of new developments in Culver City. Both Apple’s new office space and the adjacent $350 million Ivy Station were completed in 2021. Apple recently received approval to develop a 4.5-acre campus for its creative endeavors on a property that straddles Culver City and Los Angeles. Amazon has leased the historic Culver Studios to increase their mixed-use studio and office space and other ventures and has taken over space in the Culver Steps, which was completed in late-summer 2021. In addition, Amazon has also taken over operations of the former Pacific Theaters ArcLight Cinema adjacent to Culver Studios which was shut down during the COVID-19 pandemic.
In response to the COVID-19 pandemic and public health guidelines, the City waived outdoor dining permit fees to help support the restaurant industry. Additionally, the City elimi nated planters along Culver Boulevard in downtown and improved the paving in that area to create additional space for outdoor dining.
Sales tax receipts indicate that the local restaurant sector recovered very quickly after the initial pandemic shut-down. In addition to its thriving restaurant sector, the City has over a dozen hotels. A new hotel, The Shay, opened during Fiscal Year 2021-2022. Transient Occupancy Tax (TOT) revenue was greatly reduced during the pandemic, dropping to $3.1 million in Fiscal Year 2020- 2021 due to COVID -19 travel restrictions. TOT rebounded in Fiscal Year 2021-2022 due to the easing of those restrictions.
Culver City is currently pioneering a way forward in the newly emerging regulated cannabis industry not unlike how it pioneered the early days of the motion picture industry. In December 2017, the Culver City Council voted to legalize cannabis sales within the City. Cannabis business tax received in Fiscal Year 2021-2022 was $1.9 million, almost $1.6 million higher than two years earlier.
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Revenue-Generating Measures
It is important to note that during the Great Recession of 2008 City management took a number of steps to address the City’s fiscal challenges. These 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 deficit still existed . To address the structural deficit that was identified during the recessionary period, the City put forth multiple revenue measures for consideration by the electorate. In April 2012, voters approved an increase of the City’s Transient Occupancy Tax from 12% to 14%. In November 2012, voters overwhelmingly approved a half-cent transaction and use tax (Measure Y). The transaction and use tax, which became effective on April 1, 2013, raised approximately $11.4 million during Fiscal Year 2021-2022. Measure Y was set to automatically expire in 2023 if not extended by voters. During the March 2020 election, Culver City residents voted to approve Measure CC which extended the sunset date of Measure Y, from March 31, 2023 to March 31, 2033. An additional quarter-cent sales tax (Measure C) was approved by voters in November 2018 and went into effect beginning April 1, 2019. The City received $5.6 million from Measure C during Fiscal Year 2021 -2022. In April 2018, voters also approved a Cannabis Tax measure that set various cannabis business tax rates for retail, manufacturing and distribution.
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n November 2020, Culver City residents voted to approve Measure RE. Measure RE established a marginal tax rate with four brackets for the City's real estate transfer tax based on sales price or value. Measure RE became effective April 1, 2021. This marginal tax adds 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 does not apply to sales under $1.5 million, affordable housing, and first transfer of new multi -family properties. This revenue source is a mercurial one. The City anticipat ed receiving approximately $14 million in any given fiscal year. Fiscal Year 2021 -2022 was the first full -year of implementation, and the City received $32.6 million. The sale of one very large commercial property contributed to the high revenue receipts in the fiscal year. With rising interest rates and softening property prices, the City is seeing a cooling in this revenue source.
As part of the November 8, 2022 General Election, Culver City voters approved Measure BL which updates the City’s business license tax rates that were established in 1965 and the City’s business classifications.
Measure BL is a general tax and may be used for general City purposes, including services like emergency response, addressing homelessness and maintaining parks. The updated tax rates and classifications will take effect on April 1, 2023 for new businesses registering in the City. Existing businesses will pay the new rates with their renewals for calendar year 2024. The City anticipates receiving up to $10 million in additional revenue annually as a result of Measure BL. The City is projected to start receiving this in Fiscal Year 2023-2024.
Major Initiatives in Fiscal Year 2021-2022
In early 2022, to address the need for local shelter space and supportive housing for homeless individuals in Culver City, the City applied for and was awarded $26.6 million from the State of California, Housing and Community Development Department under Project Homekey for the creation of harm reduction, service enriched interim and permanent supportive housing for chronically homeless individuals through the acquisition and rehabilitation of two local motels. The motels were acquired on August 11, 2022, and construction is ongoing. The City has committed $4.9 million annually from the General Fund for Project Homekey staffing, operations and services.
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The City also committed $1.5 million annually to fund the creation and ongoing operation of a Mobile Crisis Intervention Unit consisting of professionals to address homeless and mental health crises in the City.
The City plans to continue taking steps to become more efficient and ensure that operating revenues cover operating expenditures. Employee retirement costs remain a significant concern. Like most California cities and other public agencies, Culver City provides retirement programs to its employees through the California Public Employees Retirement System (CalPERS). Employees are required to pay a percentage toward their retirement costs, but the employer must pay the remaining required amount, as determined by CalPERS actuaries. There are two components to the employer contributions. The “normal cost” is the calculated cost of the current year of service for active employees. Additionally, there is the Unfunded Accrued Liability (UAL) payment.
CalPERS sustained huge investment losses during the Great Recession that greatly reduced the funded status of the plans. As of June 30, 2021, the UAL for Culver City was $144.1 million for the Safety Plan and $76.7 million for the Miscellaneous Plan. Unfortunately, CalPERS ended Fiscal Year 2021-2022 with investment losses due to the decline in the stock market. These losses will continue to be absorbed by cities, counties and school districts in the years to come.
The original Fiscal Year 2021-2022 Adopted Budget was conservative reflecting the continued COVID-19 pandemic. At the midyear, revenues were trending stronger than anticipated, so most positions that had been frozen were reinstated and funding was restored to many programs.
All of the City’s operations, including the community service 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 Sales Tax, Business Tax, Utility User Tax (UUT), Property Tax and Transient Occupancy Tax (TOT). With the passage of Measure RE in November 2020, Real Property Transfer Tax now joins this list.
Sales Tax
Sales Tax is Culver City’s single largest revenue source at 25.2% of total General Fund revenue for Fiscal Year 2021-2022. The State of California collects a total of 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 under Bradley- Burns Uniform Local Sales Tax and a combined 0.75% under voter approved transaction and use tax (Measures C and CC). 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 Fiscal Year 2021-2022 from on-line general consumer goods and sales tax revenue, as reported through the State and County Pools.
Bradley-Burns sales tax accounted for 15.3% of General Fund revenue for Fiscal Year 2021-2022, closing the year at $26.4 million. With Measure Y (now Measure CC) taking effect in April 2013, Fiscal Year 2021-2022 was the ninth full -year of the local sales tax measure with receipts totaling $11.4 million, accounting for 6.6% of General Fund revenue. With Measure C taking effect in April 2019, the receipts totaled $5.6 million in Fiscal Year 2021-2022 accounting for 3.3% of General Fund revenue.
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Business Tax
Business Tax revenue accounts for approximately 9.4 % of the General 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 economic forces. Consequently, Business Tax revenue is relatively volatile. Business Tax revenue is based on a businesses’ gross receipts, which is a measure of the amount of business they do in the City.
Fiscal Year 2021-2022 Business Tax receipts, including penalties, were $16.2 million, a modest increase of 1.8% from the previous fiscal year. The Business Tax revenues have come in higher than anticipated.
It was anticipated that Business Tax would be lower than the prior year due to many small and large businesses being closed and other businesses experiencing large reductions to their gross receipts during the pandemic.
Cannabis Business Tax received was $1.9 million and is $175,000 higher than the previous fiscal year.
In November 2022, Culver City voters approved Measure BL which updates Culver City Business Tax rates for the first time since 1965. The new rates will go into effect for new businesses registering in the City on April 1, 2023. Existing businesses will pay the new rates with their renewals for calendar year 2024.
The new rates are expected to yield up to $10 million in additional revenue starting in Fiscal Year 2023 - 2024.
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Utility User Tax
Utility User Tax receipts make up approximately 8.6% of the General 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 categories. Economic fluctuations have less impact on UUTs because users still need electricity, natural gas, water, etc. However, after years of consistent growth, UUT revenues had been gradually declining since Fiscal Year 2013-14 .
UUT receipts for Fiscal Year 2021 -2022 were $14.9 million, a 12.7% increase from the prior fiscal year.
Electricity, Gas, and Cable revenues increased, while Water and Telecommunications declined. This increase was due in part to increases in energy rates. Telecommunications UUT revenue had been declining due to land lines being on a sharp decline and an exponential increase in cell phones with competitive cell phone plans.
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Transient Occupancy Tax
Transient Occupancy Tax is levied on occupied hotel/motel rooms at a rate of 14%. In Fiscal Year 2020 - 2021, TOT revenue deteriorated by 51.6% over the prior year due to recommended COVID -related travel restrictions for travelers and an acceleration in new COVID-19 cases in December largely associated with the Delta variant and the emergence of the Omicron variant. The lifting of travel restrictions and the opening of the Shay Hotel in October 2021 resulted in TOT revenue rebounding in Fiscal Year 2021-2022 and surpassing revenues received prior to the pandemic. Revenues reached $8. 8 million in Fiscal Year 2021 - 2022.
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Property Tax
Culver City is a “low property tax” city and receives only 10.25% 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. Growth in this revenue is anticipated to continue due to improvements to the City’s assessed valuation, which increased by 5.8% over the prior year. Culver City was one of the top ten cities with highest percentage change in assessed value in Los Angeles County.
Property Tax receipts, excluding the amount of property tax increment collected in the former Redevelopment Agency project area and the amount of real property tax transfer taxes, ended Fiscal Year 2021-2022 at $6.3 million, an increase of 18.4% over prior fiscal year revenues. The decrease in the property tax revenue in Fiscal Year 2020-2021 was due to adjustments imposed by the County of Los Angeles.
Additionally, the City received $6.6 million in property tax increment of the former Culver City Redevelopment Agency. This funding is from additional property tax increment received when the amount of property tax increment collected in the former Redevelopment Agency project areas exceeds the amount of enforceable obligations. In the past, this amount varied as obligations were paid off. The wind-down of the former Redevelopment Agency is moving closer to completion.
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Real Property Transfer Tax
Real Property Transfer Tax is a mecurial revenue source. It rises and falls with the real estate market.
Measure RE approved by Culver City voters in November 2020 took effect on April 1, 2021. Fiscal Year 2021-2022 marks the first full fiscal year where the new stepped tax rates were in place. Revenues for Fiscal Year 2021-2022 were $32.6 million. Th is high number includes one large commercial property sale that occurred in March 2022. Large receipts like this are not anticipated to occur on a regular basis and are treated as one-time receipts. For Fiscal Year 2021-2022, $15 million of the additional revenue was allocated to the City’s Section 115 Pension Trust.
By the end of calendar year 2022, home sales have slowed and prices have softened significantly due to rising interest rates and other economic stressors. Finance staff continues to watch market trends and their effect on this revenue.
xviii
Total Major Tax Revenues
The chart below depicts the City’s top five sales tax revenues for the last ten years. The sales tax line represents a combination of the City’s Bradly Burns, Measure Y/CC and Measure C receipts. The rise in sales tax revenue in Fiscal Year 2012-2013 was due to the inclusion of one-time increases from State Sales Triple-Flip proceeds, which concluded in Fiscal Year 2015- 2016. Utility User Tax revenue was generally trending downward, in large part due to declines in Telecommunications and Cable TV Utility Users Tax revenues from changing technologies, until Fiscal Year 2021-2022. The increase in utility rates contributed to the higher revenues. Transient Occupancy Taxes had demonstrated a steady upward trend until Fiscal Year 2018-2019 with declines in Fiscal Year 2019-2020 due to recommended travel restrictions during the COVID-19 pandemic. Those revenues rebounded to pre-pandemic amounts in Fiscal Year 2021-2022 with the lifting of travel restrictions and the opening of a new hotel within the City.
The City’s Sales Tax and Measure C/CC receipts continued to increase in Fiscal Year 2021-2022 from on- line general consumer goods and sales tax revenue that were reported through the State and County Pools.
Consumer spending recovered quickly and was far more robust that had been predicted earlier in the pandemic. Property Tax had experienced some modest increases in past years with a decrease in Fiscal Year 2020-2021 due to adjustment by Los Angeles County. Property tax revenues increased slightly in Fiscal Year 2021 -2022. Business taxes increased slightly in Fiscal Year 2021 -2022 aided by additional Cannabis Business Tax.
xix
General Fund Expenditures
During the prior two fiscal years, due to the efforts undertaken by the City Manager and Department Heads to make significant budget cuts in response to the outbreak of the pandemic in March 2020, General Fund expenditures were reduced. Expense containment measures included elimination of OPEB prefunding, elimination of the equipment and vehicle replacement allocation to the General Fund, and the cancellation of any new General Fund capital projects. In Fiscal Year 2021-2022, the City funded all previously frozen positions and authorized the reinstatement of many services and programs that had been limited during the pandemic. Though these funds were added to the budget during the fiscal year, staff vacancies, due in large part to the unprecedented number of retirements in December 2021, contributed to lower expenditures in the Personnel category. In Fiscal Year 2021-2022, General Government expenditures include a $5 million funding of the City’s Self -Insurance fund per existing policy requirements. This is evident in the larger green band on the bar graph in Fiscal Year 2021-2022.
xx
General Fund Reserve Percentage
Perhaps the best measure of the City’s effectiveness in weathering 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 minimum general operating reserve of 30% of projected General Fund operating expenditures for each fiscal year (excluding debt service, fund transfers, and encumbered funds). Th is Contingency Reserve is 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 contribute to its designated and undesignated reserves due in large part to higher than anticipated revenues from multiple sources, and conservative budgeting practices by City Council and staff.
As of June 30, 2022, the City has established committed General Fund balances of $43.9 million for contingencies/emergencies, $23.9 million for future facility improvements / replacements and $1.8 million for recreational facility improvements. As mentioned above $15 million was added to the City’s restricted Pension fund balance raising the total $27.1 million. Beyond these committed amounts, the City ha s an additional $25.1 million in undesignated General Fund balance. Monies in excess of the required 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 Forecast included in the Fiscal Year 2022 - 2023 Adopted Budget is a long-term forecast through Fiscal Year 2031 -2032. This is a valuable financial management tool, especially in challenging financial times, to assist the City Council in setting 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 plan 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 System, the City continues to take a conservative approach towards new spending while concurrently exploring additional revenue opportunities.
On January 9, 2023, in response to the growth of homelessness in Culver City and the region, the City Council ratified the Proclamation of Local Emergency on Homelessness by the Director of Emergency Services of Culver City, issued by the City Manager on January 3, 2023. In addition to Project Homekey and the Mobile Crisis Intervention Unit, the City has fast -tracked the development of a safe-camping site for homeless individuals on a City-owned parking lot. This will be a service-rich operation and will require significant resources to staff properly. Future budgets will include the ongoing costs for all of these community services.
Awa
rds and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Culver City for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2021. This was the thirty-seventh consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
xxi
The Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility 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 Lisa Soghor
City Manager Chief Financial Officer
City of Culver City, California
City Officials
City Council
Daniel Wayne Lee, Mayor
Albert Vera, Vice Mayor
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Harden Alexander Fisch
Yasmine-Imani McMorrin
xxii
Administration
John Nachbar
Onyx Jones
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Lisa Soghor
Michele Williams
Rolando Cruz
Heather Baker
Sol Blumenfeld
Kenneth Powell
Dana Anderson
Armando Abrego
Manuel Cid
Yanni Demitri
City Manager
Assistant City Manager
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Chief Financial Officer
Chief Information Officer
Chief Transportation Officer
City Attorney
Community Development Director
Fire Chief
Human Resources Director
Parks, Recreation & Community Services Director
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Public Works Director
INFORMATION
TECHNOLOGY
FINANCE
PARKS,
RECREATION &
COMMUNITY
SERVICES
COMMUNITY
DEVELOPMENT
PUBLIC
WORKS
TRANSPORTATION
FIRE
POLICE
CITY
ATTORNEY
CITY MANAGER
CITY COUNCIL
CULVER CITY
RESIDENTS
ADMINISTRATIVE
SERVICES
CITY OF CULVER CITY, CALIFORNIA
OVERVIEW ORGANIZATIONAL CHART
FISCAL YEAR 2021ǦʹͲʹ2
xx
xxiii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Culver City
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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 Audit of the Financial Statements
O
pinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Culver City, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Culver City, California, as of June 30, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government A uditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Notes 1 , 6 and 8, the City implemented the provisions of Governmental Accounting Standards Board Statement No. 87, Leases, during the fiscal year ended June 30, 2022. Our opinion is not modified with respect to this matter.
2 Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City 's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion and analysis on pages 5 through 22 and the required supplementary information on pages 117 through 130 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be a n essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
S
upplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively co
mprise the City’s basic financial statements. The combining and individual fund financial statements and budgetary comparison schedules as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
4 Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2023 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 solely to descr ibe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City 's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance.
Glendale, California
March 30, 2023
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, 2022
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 City for the year ended June 30, 202 2. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our transmittal letter, which is found on pages v-xxi 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 resources exceeded its liabilities and deferred inflows at the close of Fiscal Year 2021-2022 by $245 million (net position). Of this amount, $277.3 million is net investment in capital assets, $123.1 million is restricted and ($155.3) million is unrestricted deficit. The City’s unrestricted net position was negatively impacted wit h the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which required the City to record its unfunded pen sion liabilities 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 11 and 12 on pages 92 – 107 of this report.
• The City’s total net position, including all activities, increased by $89.3 million in Fiscal Year 2021- 2022. Of the $89.3 million increase, $86.7 million increase was from governmental activities and $2.6 million was from business-type activities.
• As of June 30, 2022, the City’s governmental funds reported combined ending fund balances of $259 million. Approximately 9.19% of the current year amount or $23.8 million is unassigned and available fund balance.
• At the end of Fiscal Year 2021-2022, the unrestricted fund balance (the total of committed, assigned and unassigned components of fund balance) for the General Fund was $101.1 million, or approximately 81.5% of total General Fund expenditures of $124 million. Additional information on the City’s General Fund balances is in Note 15.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s basic financial statements are comprised of three components: 1) Government -Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. Each of these sections is discussed below. This report also contains other required and supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The Government-Wide F inancial Statements are designed to present financial information about the City as a whole in a manner similar to the private sector, including the use of accrual -based accounting to recognize its revenues and expenses. Governmental activities, which 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, 2022
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 capital 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 are 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 Revenues”. Tax revenues, including those restricted to a particular program function, are reported as “General Revenues” unless specifically required to be reported as program revenues (i.e. gas and transportation taxes).
All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (such as, revenues pertaini ng to uncollected taxes, or expenses pertaining to earned, but unused, vacation and sick leave).
The government-wide financial statements include not only the City of Culver City, California (known as the primary government), but also three legally separate component units: The Parking Authority, the Housing Authority, and the Public Financing Authority. The governing board of each of these entities is comprised entirely of members of the City Council, and their financial 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 25-28 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 provides a mechanism to separately account for a variety of different funding sources and enables the City to demonstrate compliance with legal 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, Proprietary, and Fiduciary Funds. Note that the fund financial statements only present information on the most 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 statements. This is designed to explain 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, 2022
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 Capital 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 available to finance current operating costs, and expenditures are recognized when the related liab ility is incurred. In addition, the focus is on inflow (revenues) and outflow (expenditures) of the current period. 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 137-171.
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 comparison, readers may better understand the long-term impact of the government’s near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement 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 accounting and measure the balance and change in economic resources .
Accordingly, statement of net position of proprietary funds includes 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 account ing and measurement focus used to prepare proprietary fund statements is the same that is used to prepare the government -wide statements. Thus, proprietary fund statements provide the same, but more detailed, information about 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 us ed to report the same f unctions presented as business-type activities in the government-wide financial statements. The City u ses enterprise funds to a ccount 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: equipment replacement, equipment maintenance, risk management, and central stores.
Internal service funds benefit both governmental and business-type functions, therefore, they were allocated to governmental and business-type activities in the government-wide financial statements. Internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements.
Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information section.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
8 Fiduciary funds are used to account for resources held by the City as trustee on 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 used 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. Additionally, a couple of small custodial funds are 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 provided in the government -wide and fund financial statements and are located on pages 56 through 115.
Other Information
In addition to the basic financial 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 Information section of this report and are located on pages 129 through 130.
The combining statements, referred to earlier in connection with 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 outflows of resources exceeded liabilities and deferred inflows of resources by $245 million at June 30, 2022.
Approximately 113.2% 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 this debt must be provided from other sources, since capital assets alone may not be used to liquidate these liabilities.
Approximately 50.2% of the City’s net position is subject to restrictions imposed by external parties, and their use is determined by those restrictions and contractual agreements. The remaining amount may be used by the City to meet ongoing operations, subject to applicable federal and state laws and regulations.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
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 ($155.3) million.
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets $ 298,332 $ 230,400 $ 25,059 $ 30,201 $ 323,391 $ 260,601 Capital assets 196,867 187,933 102,765 98,539 299,632 286,472 Total assets 495,199 418,333 127,824 128,740 623,023 547,073 Def er r ed Outf low s of Resour ces :
Pension and OPEB-related amounts 33,725 30,632 4,738 4,961 38,463 35,593 Total deferred outflows of resources 33,725 30,632 4,738 4,961 38,463 35,593 Liabilities:
Current and other liabilities 35,797 25,571 11,181 8,294 46,978 33,865 Long-term liabilities 233,186 295,506 53,054 65,312 286,240 360,818 268,983 321,077 64,235 73,606 333,218 394,683 Def er r ed Inf low s of Resour ces :
Leases 644 - 245 - 889 - Pension and OPEB-related amounts 69,516 24,800 12,819 3,845 82,335 28,645 Tota l def er r ed inf low s of r es our ces 70,160 24,800 13,064 3,845 83,224 28,645 Net Position:
Net investment in capital assets 196,552 187,809 80,731 76,208 277,283 264,017 Restricted 123,084 104,054 - - 123,084 104,054 Unrestricted (129,855) (188,775) (25,468) (19,958) (155,323) (208,733) Total net position $ 189,781 $ 103,088 $ 55,263 $ 56,250 $ 245,044 $ 159,338 Statement of Net Position
TotalBusiness-Type AcrivitiesGovernmental Activities
(In Thousands)
As of June 30, 2022 and 2021
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
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 year ended June 30, 202 2, total net position increased by $89.3 million.
The following table summarizes the Statement of Activities for Governmental Activities and Business - Type Activities for the fiscal year ended June 30, 202 2, with comparative totals for the fiscal year ended June 30, 2021.
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services $ 31,147 $ 23,263 $ 32,650 $ 29,776 $ 63,797 $ 53,039 Operating grants and contributions 24,418 19,916 19,387 27,188 43,805 47,104 Capital grants and contributions 33,717 11,631 4,821 2,218 38,538 13,849 General revenues:
Taxes 132,172 93,040 - - 132,172 93,040 Investment (loses) earnings (3,306) 3,940 (622) 5 (3,928) 3,945 Other 579 630 15 - 594 630 Tota l r evenues 218,727 152,420 56,251 59,187 274,978 211,607 Expenses:
General government 12,169 26,650 - - 12,169 26,650 Parks, recreation and community services 10,674 8,990 - - 10,674 8,990 P olice 46,143 44,929 - - 46,143 44,929 Fire 28,487 26,963 - - 28,487 26,963 Community development 16,132 15,711 - - 16,132 15,711 Public works 16,925 15,459 - - 16,925 15,459 Transportation 374 248 - - 374 248 Capital outlay - 38 - - - 38 Refuse disposal - - 16,314 15,437 16,314 15,437 Municipal bus lines - - 28,601 27,442 28,601 27,442 Sewer enterprise - - 8,761 8,719 8,761 8,719 Municipal fiber network - - 2,025 2,102 2,025 2,102 Internal service fund allocation to BTA - - (922) 924 (922) 924 Tota l expenses 130,904 138,988 54,779 54,624 185,683 193,612 Excess (def iciency ) bef or e tr a nsf er s 87,823 13,432 1,472 4,563 89,295 17,995 Tra
nsfers (1,130) (992) 1,130 992 - - Change in net position 86,693 12,440 2,602 5,555 89,295 17,995 Net position - beginning of year 103,088 90,648 52,661 50,695 155,749 141,343 Net position - end of year $ 189,781 $ 103,088 $ 55,263 $ 56,250 $ 245,044 $ 159,338 Note: 2022 beginning net position balance of the business-type activities was restated. See Note 16.
Governmental Activities Business-Type Activities Total
Statement of Activities
Years ended June 30, 2022 and 2021
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
11 Governmental Activities
The City’s net position from governmental activities increased approximately $86.7 million accounting for
97.1% of the total increase in the net position of the City. Key elements of this increase are a combination of factors highlighted below.
Revenue Highlights
Total revenues of governmental activities were $ 218.7 million. The largest component of total revenue is taxes at $132.2 million, making up 60.4% of total revenues. This is consistent with the nature and purpose of governmental funds, particularly in the General Fund, where programs are largely supported by general taxes. The highest tax revenues received by the General Fund include property tax ($ 45.5 million), sales tax ($43.4 million), business tax ($16.2 million), utility users’ tax ($14.9 million), and transient occupancy tax ($8.8 million). Some of the key changes in revenues are:
• Capital and Operating Grants and Contributions increased by $ 26.6 million, primarily due to increase in reimbursable capital and operating grant expenditures in Fiscal Year 2021-2022. Also, the City received the second and final tranche of American Rescue Plan Act (ARPA) funds of $4.69 million during the fiscal year.
• While sales tax revenues were impacted by COVID in the prior fiscal year, the City’s Bradley- Burns Uniform Local sales tax and Measure C/CC receipts increased by $5.6 million in Fiscal Year 2021-2022. Sales tax revenues recovered more quickly from the pandemic that had been anticipated. Several sectors including new auto sales, restaurants and hotels, general consumer goods, and the State and County Pools performed well during the fiscal year.
• Total Property tax includes the City’s portion of property tax, real property transfer tax, and the tax increment of the former Redevelopment Agency. The total property tax increased by $25.1 million over the prior year aided by the receipt of $32.6 million of real property transfer taxes and $6.57 million of tax increment of the Redevelopment Agency. Approximately half of the $32.6 million received from real property transfer tax was due to one large commercial property sale in March 2022. Large receipts like these are not anticipated to occur on a regular basis.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
12 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 $132.2 million or 60.4% of total governmental revenue.
Operating and capital grants make up 26.6% of revenues, charges for services amount to 14.2%, and other revenues and investment losses add up to (1.2) % of total governmental revenues.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
13 Expense Highlights
Functional expenses for the year totaled approximately $130.9 million in the governmental funds, a decrease of $8.08 million over the prior year due to decrease of $(14.4) million for General Government expenses, offset by increases in Public Safety of $ 2.74 million, Parks and Recreation of $1.68 million, Community Development of $0.42 million, Public Works of $1.47 million, and Transportation of $0.12 million,). Public Safety activities expended approximately $74.6 million (57%) of the total expenses in the governmental activities. Almost all public safety costs are funded from general revenues, primarily taxes.
Expenses for Public Works totaled $16.9 million, Community Development $16.1 million, and Parks, Recreation and Community services $10.7 million, and Transportation $0.37 million. General Government Expenses (including City Council, City Manager, City Clerk, Information Technology, Finance, Human Resources and City Attorney) and Interest and Other Charges totaled $12.2 million (9.3%).
Business-Type Activities
The City’s business-type activities reported a $ 2.6 million increase in net position, largely resulting from higher charges for services and capital grants offset by lower-than-expected operating grants for the City's Municipal Bus Lines and higher revenues from the Refuse Disposal Fund.
The City’s Municipal Bus Lines is the largest business-type operation, with operating and capital grants and contributions from federal and county sources mainly funding its operations, in addition to fare revenues. Refuse Disposal is the second largest, followed by Sewer Enterprise.
In November 2015, the City Council approved a new Municipal Fiber Network enterprise fund. Funding for this project was appropriated through a loan from the General Fund to design and construct an open access network where Internet Service Providers (ISPs) will utilize the City’s fiber infrastructure to service the business community. During Fiscal Year 2021-2022, net position increased by $1.03 million.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
14 The construction for Municipal Fiber Network was completed for the Municipal Fiber Network (Culver Connect) backbone in Fiscal Year 2019-2020. The construction for network laterals was initiated in Fiscal Year 2021-2022 and will continue in Fiscal Year 2022-2023.
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, 2022 , were $56.9 million which decreased by $ 2.32 million from the prior fiscal year. The change is primarily attributed to $ 5.12 million decrease in operating and capital grants and contributions in Municipal Bus Lines.
Expense Highlights
Municipal Bus Line operating expenses increased by $1.16 million, or 4.23%, from increased maintenance expenses. Refuse Disposal operating expenses increased by $ 0.86 million from increased contractual services.
Business-type Activities
Expenses and Program Revenues
For the Fiscal Years Ended June 30, 2022 and 2021
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
15 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 information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.
In parti cular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
On June 30, 2022, the City’s governmental funds reported a combined ending fund balance of $259 million, an increase of $69 million in comparison with the prior year. Increased revenues of $76.2 million ($39.1 million in taxes, $3.17 million in licenses and permits, $0.02 million in fines and forfeitures, $36.4 million in intergovernmental, $ 4.7 million in charges for services, and $ (7.12) million in investment and $ (0.07) miscellaneous) were offset by a $ 1.89 million increase in expenditures: $ (0.92) million in general government and $(3.22) million in capital outlay, $ 2.66 million in police and fire, $1.63 million in parks and recreation services, $1.29 million in public works, $0.13 million in transportation, and $0.32 million in community development) as compared to the prior fiscal year. Of the total $259 million fund balance, $14.8 million was non-spendable, $116.3 million was restricted, $97.6 million was committed, $6.5 million was assigned, and $23.8 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 $34.1 million in fund balance for Fiscal Year 2021-2022, primarily due to increases of $39.1 million in taxes and the receipt of the second and final tranche of $4.7 million from ARPA. As per Note 15, $6.5 million of the total increase has been assigned for contracts and purchase orders of committed projects in the General Fund. There is $142.9 million total in fund balance as of June 30, 2022.
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. All former Low/Moderate Income Housing assets and liabilities were transferred to the Housing Authority. During the 2021-202 2 fiscal year, project expenditures outpaced revenues and transfers by $ 2.2 million for this fund, largely due to increased expenditures to provide assistance for the homeless.
Capital Improvement and Acquisition
This fund is used to account for capital projects that are 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. Revenues and transfers outpaced project expenditures by $2.6 million for this fund. Staff vacancies and turnover impeded the anticipated completion of several capital improvements resulting in lower -than- anticipated capital expenditures.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
16 Capital Improvement Grants
This fund is used to account for grant funds awards to the City by federal, state, and local grant agencies for capital improvements, and the qualified expenditures of those restricted funds. Revenues outpaced project expenditures by $29.1 million resulting from significant reimbursements received for prior year expenditures and the emergency shelter and transitional housing grants received in Fiscal Year 2021-2022.
Proprietary Funds
Unlike governmental funds, proprietary funds use the accrual basis 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 statements. Government-wide reporting requires the inclusion of activities of the City’s internal service funds related to proprietary fund activities in the Business-Type Activities. Therefore, the following analysis is very similar to that presented for Business-Type Activities.
The net position of the Refuse Disposal, Municipal Bus Lines, Sewer Enterprise and Municipal Fiber Network funds were $(3.1) million, $21.1 million, $48.2 million, and $(8.2) million respectively. Total net position of these funds increased by $1.7 million during the year ended June 30, 202 2. Refuse Disposal, Municipal Bus Lines, Sewer Enterprise and Municipal Fiber Network funds’ net position increased by $2.1 million, $(1.5) million, $0.05 million and $1.03 million, respectively during Fiscal Year 2021-2022.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
17 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 final General Fund revenue budget for Fiscal Year 2021-2022 reflects amendments that were approved by the City Council during the year. The most significant amendments included increases to taxes.
As shown on the table above, actual revenues totaled $ 166.5 million, exceeding the final budget by $23.2 million. Ta xes, licenses and permits, fines and forfeitures, intergovernmental and charges for services exceeded the final budget. Investment earnings fell below the amended budget by $5.03 million, primarily due to the investment losses on the tax-exempt Section 115 Trust and general investment portfolio.
Actual Variance from
Or
iginal Final Amounts Final Budget
Revenues:
Taxes $ 92,574 $ 105,507 $ 132,172 $ 26,665 Li
censes and permits 5,061 5,341 5,606 265 Fines and forfeitures 2,912 2,912 3,581 669 Intergovernmental 10,242 11,353 11,421 68 Charges for services 9,534 11,129 12,433 1,304 Investment earnings 1,914 1,914 (3,111) (5,025) Miscellaneous 1,163 1,163 454 (709) Total revenues 123,400 139,319 162,556 23,237
Other Financing Sources:
Transfers in 3,959 3,959 3,959 - Total other financing sources 3,959 3,959 3,959 - Tota l Revenues $ 127,359 $ 143,278 $ 166,515 $ 23,237 Budgeted Amounts
SUMMARY OF GENERAL FUND REVENUES
BUDGET AND ACTUAL
Year Ended June 30, 2022
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
18 Expenditures
The final General Fund expenditure budget for Fiscal Year 2021-2022 reflects the amendments approved by the City Council during the year. The final budget also reflects appropriations carried over from the prior year related to outstanding encumbrances as of June 30, 2021.
In response to the COVID pandemic in March 2020, the City Manager directed all Departments to make significant budget cuts including the freezing of vacant positions, elimination of OPEB prefunding, elimination of the equipment and vehicle replacement allocation to the General Fund, and cancel lation of any new General Fund capital projects. The original budget for Fiscal Year 2021-2022 maintained that conservative direction. The revised expenditure budget included the unfreezing of positions and the reinstatement of many projects, programs, and services. In Fiscal Year 2021 -2022, General Government expenditures also include a $5 million funding of the City’s Self -Insurance fund per existing policy requirements. Despite significant increases in expenditures, including some expenditures beyond the City’s control such as the CalPERS Unfunded Accrued Liability (UAL), there was $ 5.28 million in total budget savings due in large part to staff vacancies.
Actual Variance from
Or
iginal Final Amounts Final Budget
Expenditures:
General government $ 17,565 $ 16,045 $ 17,715 $ (1,670) Pa
rks, recreation and community services 9,760 10,721 9,866 855 P olice 47,879 48,511 44,984 3,527 Fire 27,841 28,563 27,633 930 Community development 9,510 13,272 9,426 3,846 Public works 14,589 16,719 14,019 2,700 Capital outlay 404 493 398 95 Total expenditures 127,548 134,324 124,041 10,283 Other Financing (Uses):
Transfers out (2,742) (3,325) (8,325) 5,000 Total other financing sources (uses) (2,742) (3,325) (8,325) 5,000 Total Expenditures $ (130,290) $ (137,649) $ (132,366) $ 5,283 Budgeted Amounts
SUMMARY OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
Year Ended June 30, 2022
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
19 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 millions 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 constructed after 1982. Where informati on 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, 2022, amounts to $ 299.6 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and related systems, improvements, machinery and equipment, park facilities, roads, highways, and bridges.
Capital asset additions included vehicle replacements, street repair and replacement, and sewer system improvements in the current year. Depreciation and amortization expenses in the Governmental and Business-Type activities totaled $8.09 million and $6.39 million, respectively.
Additional information is available in Note 7 of the Notes to the Basic Financial Statements.
2022 2021 2022 2021 2022 2021
Land $ 21,539 $ 21,539 $ 3,083 $ 3,083 $ 24,622 $ 24,622 Buildings 39,440 40,905 13,549 14,109 52,989 55,014 Improvements 19,605 15,264 6,243 4,924 25,848 20,188 Machinery and equipment 11,210 13,377 20,523 18,730 31,733 32,107 Furniture and fixtures - - 8 13 8 13 Infrastracture 52,869 52,831 32,337 33,029 85,206 85,860 Investment in Hyperion - - 7,347 8,012 7,347 8,012 Right-of-use Asset - - 540 - 540 - Construction in progress 52,204 44,017 19,134 16,639 71,338 60,656 Total $ 196,867 $ 187,933 $ 102,764 $ 98,539 $ 299,631 $ 286,472 Governmental Activities Business-Type Acrivities Total
Summary of Capital Asse ts (Ne t)
Year Ended June 30, 2022
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
20 Long-Term Obligations
At the end of Fiscal Year 2021-2022 , the City had total net long -term outstanding obligations of $52.9 million, an increase of $0.1 million over the prior fiscal year. In October 2019, the City was successful in refinancing the 2009 Wastewater Facilities Revenue Bonds, acquiring 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 F iscal Year 2020-2021 to fund a Sewer Pipeline Diversion project, the Bankfield Pump Station improvements and other miscellaneous capital improvement projects.
Additional information is available in Note 8 of the Notes to the Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Economy
Nationally, reports continue to demonstrate modest economic growth with signs of economic softening and indicate that the economic recovery from the COVID-19 pandemic is being tempered by concerns about inflation and the Federal Reserve’s raising of interest rates.
In March 2021, to promote economic recovery from the COVID-19 pandemic, the $1.9 trillion American Rescue Plan Act (ARPA) of 2021 was signed into law. Culver City received the first $4.69 million tranche of ARPA funds in Fiscal Year 2020 -2021 and the second and final $4.69 million tranche in Fiscal Year 2021-2022. The City is not anticipated to receive any additional ARPA funding nor it is anticipated t o receive any direct funding from the federal Inflation Reduction Act enacted in August 2022.
On February 1, 2023, the Federal Reserve raised the target range for the federal funds rate as part of an ongoing attempt to achieve maximum employment and inflation at the rate of 2% over the longer run. This was the Federal Reserve’s eighth interest rate increase in a year. On February 14, 2023, the Bureau of Labor Statistics reported that the U.S. Consumer Price Index for all items increased 6.4% for the 12 months ending January 2023.
Inflation and rising interest rates are anticipated to have a cooling effect on the overall economy. According to S&P Global, the U.S. real GDP grew 2.0% in 2022 and is projected to increase 0 .5% in 2023 and 1.8% in 2024.
2022 2021 2022 2021 2022 2021
Com
pensated absences payable $ 13,250 $ 12,378 $ 1,537 $ 1,500 $ 14,787 $ 13,878 Cl
aims and judgments 16,059 16,560 - - 16,059 16,560 Lease liability - - 556 - 556 - Wastewater Facilities Revenue Bonds,
2019 Series A - - 18,195 18,935 18,195 18,935 Bond premium - - 3,276 3,396 3,276 3,396 Total $ 29,309 $ 28,938 $ 23,564 $ 23,831 $ 52,873 $ 52,769 Governmental Activities Total
Summary of Long-Te rm Liabilitie s
Year Ended June 30, 2022
(In Thousands)
Business-Type Acrivities
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
21 The geopolitical climate continues to pose uncertainty for the national economic outlook due in part to the ongoing war in the Ukraine, contentious federal trade and international policies, and ongoing supply chain issues which may extend into the next year or two. City staff will contin ue to cautiously monitor these critical dynamics and their effect on national, state, and local economies along with inflation, interest rates and other macro-economic factors.
Budget Outlook
Culver City prides itself on the outstanding quality of services it provides to the community and has taken all efforts to preserve services during these economically challenging times.
The City’s financial forecast currently shows operating deficits when factoring in necessary funding for rising pension costs, appropriately pre -funding retiree healthcare costs and the impacts of an economic slowdown. The City has been proactive in its response to these challenging economic conditions and has successfully implemented multiple 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 approximately $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. On April 10, 2018, Culver City voters approved a cannabis business tax (Measure A). An additional quarter-cent sales tax (Measure C) was approved on November 6, 2018, which went into effect beginning April 1, 2019. In March 2020, the local sales tax initially implemented by Measure Y was extended by the voters for another ten years, until 2033 (Measure CC).
In November 2020, the voter s passed Measure RE. Measure RE established a marginal tax rate with four brackets, based on sales price or value, for the City’s real estate transfer tax, effective April 1, 2021. This marginal tax will add 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.
In November 2022, Culver City voters passed Measure BL, which updates the business license tax rates and classifications. The new rates and classifications take effect on April 1, 2023 for new businesses and will be applied to existing businesses when they renew their licenses for 2024. It is anticipated that these new rates will provide the City with up to $10 million in additional revenue annually.
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 pension costs. Increasing retirement , pension and other post-employment benefit costs related to rates charged by CalPERS have a significant impact on the General Fund’s increasing expenditures as these costs are expected to rise from $25.8 million in Fiscal Year 2021-2022 to $41.8 million in Fiscal Year 2032-2033, which is an increase of 62%. The financial forecast contains an additional $10 million to provide outreach and services related to homelessness in the City.
There are further budget needs that have not been included in the financial forecast such as increased maintenance and capital improvement projects for City infrastructure (streets, roads, pavements, traffic safety projects, city buildings, etc.) and capital and maintenance expenditures to support updating network infrastructure, cloud -based software deployments and replacement of end-of -life hardware which are critical to supporting secure and reliable operations.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
22 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 include police, fire, street maintenance, traffic improvements, emergency preparedness, maintenance of parks and recreation areas. Despite concerns about emerging COVID-19 variants, supply chain vulnerability and potential product shortages, F iscal Year 2022-2023 is expected to be a year with continued moderate GDP growth. The City currently maintains sufficient General Fund reserves, and the passing of Measure BL in November 2022 should further strengthen the City’s position.
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” economy; prudently investing in long-term facilities and assets; partnering with our community to work together toward common goals; and maki ng wise decisions despite political pressures to defer or deny them – 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 [email protected] or 9770 Culver Blvd., Culver City, CA 90232, (310) 253-5865.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
23 BASIC FINANCIAL STATEMENTS
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24 GOVERNMENT-WIDE
FINANCIAL STATEMENTS
City of Culver City
Statement of Net Position
June 30, 2022
25 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 189,683,094$ 39,267,774$ 228,950,868$ A
ccounts receivables, net 3,880,516 1,816,984 5,697,500 Interest receivables 5,277,437 111,325 5,388,762 Internal balances 20,169,576 (20,169,576) - Due from other governments 44,889,548 3,784,195 48,673,743 Inventories 754,914 - 754,914 Due from Successor Agency 1,986,045 - 1,986,045 Total current assets 266,641,130 24,810,702 291,451,832 Noncurrent assets:
Cash and investments held with fiscal agents - 4 4 Restricted investments held by Pension Trust 12,050,540 - 12,050,540 Notes receivables, net 18,955,246 1,195 18,956,441 Leases receivables 685,302 248,046 933,348 Capital assets:
Not being depreciated 73,742,730 22,217,449 95,960,179 Being depreciated, net 123,124,002 80,546,931 203,670,933 Total noncurrent assets 228,557,820 103,013,625 331,571,445 Total assets 495,198,950 127,824,327 623,023,277
DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 20,848,648 2,824,237 23,672,885 Other postemployment benefits related amounts 12,875,963 1,913,795 14,789,758 Total deferred outflows of resources 33,724,611 4,738,032 38,462,643 (Continued)
Primary Government
City of Culver City
Statement of Net Position (Continued)
June 30, 2022
26 Governmental Business-Type
Activities Activities Tot al
LIABILITIES
Current liabilities:
Accounts payable 6,301,105$ 2,055,591$ 8,356,696$ Salaries and benefits payable 2,660,021 744,812 3,404,833 Interest payable - 273,400 273,400 D
eposits payable 9,017,340 455,970 9,473,310 Retention payable 314,701 6,094 320,795 Due to other government 38,820 - 38,820 Unearned revenues 778,700 5,852,687 6,631,387 Lease liability - 185,469 185,469 Compensated absences, due within one year 5,253,326 801,961 6,055,287 Claims payable, due within one year 11,433,077 - 11,433,077 Revenue bonds payable, due within one year - 805,000 805,000 Total current liabilities 35,797,090 11,180,984 46,978,074 Noncurrent liabilities:
Compensated absences, due in more than one year 7,996,713 735,180 8,731,893 Claims payable, due in more than one year 4,626,094 - 4,626,094 Revenue bonds payable, due in more than one year - 20,665,830 20,665,830 Lease liability, due in more than one year - 370,748 370,748 Net pension liabilities 165,765,518 23,137,652 188,903,170 Net other postemployment benefits liabilities 54,797,345 8,144,701 62,942,046 Total noncurrent liabilities 233,185,670 53,054,111 286,239,780 Total liabilities 268,982,760 64,235,095 333,217,855
DEFERRED INFLO WS O F RES O URCES
Pension related amounts 47,148,129 9,494,351 56,642,480 Other postemployment benefits related amounts 22,367,875 3,324,607 25,692,482 Leases 643,861 244,660 888,521 Total deferred inflows of resources 70,159,865 13,063,618 83,223,483
NET POS ITION
Net investment in capital assets 196,552,031 80,731,239 277,283,270 Restricted for:
Road construction 9,153,971 - 9,153,971 Housing authority 38,125,273 - 38,125,273 Public safety 821,099 - 821,099 Public works and capital projects 42,424,995 - 42,424,995 Debt service - 4 4 Community development 5,508,566 - 5,508,566 Pension trust 27,050,540 - 27,050,540 Total restricted 123,084,444 4 123,084,448 Unrestricted (deficit) (129,855,540) (25,467,597) (155,323,137) Total net position 189,780,935$ 55,263,646$ 245,044,581$ (Concluded)
Primary Government
City of Culver City
Statement of Activities
Year Ended June 30, 2022
27 Charges Operating Capital Total
for Grants and Grants and Program
Functions/Programs: Expenses Services Contributions Contributions Revenues Primary government:
Governmental activities:
General government 12,168,639$ 2,420,243$ 4,778,388$ -$ 7,198,631$ Parks, recreation and community services 10,674,233 3,294,252 361,921 - 3,656,173 Police 46,143,913 3,843,239 384,252 - 4,227,491 Fire 28,486,778 4,348,773 883,982 - 5,232,755 Community development 16,131,833 11,662,835 1,963,641 38,050 13,664,526 Public works 16,925,134 5,578,011 7,013,188 33,679,126 46,270,325 Transportation 373,693 - 2,532,001 - 2,532,001 Total governmental activities 130,904,223 31,147,353 17,917,373 33,717,176 82,781,902 Business-type activities:
Refuse disposal 16,314,382 18,485,663 43,717 - 18,529,380 M unicipal bus lines 28,601,085 1,939,624 17,302,430 6,861,090 26,103,144 Sewer enterprise 8,760,599 9,162,252 157 - 9,162,409 Municipal fiber network 2,025,460 3,063,682 - - 3,063,682 Internal service fund allocated to
business-type activities (922,333) - - - - Total business-type activities 54,779,193 32,651,221 17,346,304 6,861,090 56,858,615 Total primary government 185,683,416$ 63,798,574$ 35,263,677$ 40,578,266$ 139,640,517$ Program Revenues
City of Culver City
Statement of Activities (Continued)
Year Ended June 30, 2022
28 Governmental Business-Type
Functions/Programs: Activities Activities Total
Primary government:
Governmental activities:
General government (5,029,012)$ -$ (5,029,012)$ Parks, recreation and community services (7,018,060) - (7,018,060) Police (41,880,223) - (41,880,223) Fire (23,242,823) - (23,242,823) Community development (2,467,307) - (2,467,307) Public works 29,404,195 - 29,404,195 Transportation 2,158,308 - 2,158,308 Total governmental activities (48,074,922) - (48,074,922) Business-type activities:
Refuse disposal - 2,214,998 2,214,998 Municipal bus lines - (2,497,941) (2,497,941) Sewer enterprise - 401,810 401,810 Municipal fiber network - 1,038,222 1,038,222 Internal service fund allocated to
business-type activities - 922,333 922,333 Total business-type activities - 2,079,422 2,079,422 Total primary government (48,074,922) 2,079,422 (45,995,500) General revenues:
Taxes:
Property taxes 45,472,192 - 45,472,192 Sales taxes 43,415,098 - 43,415,098 Utility users taxes 14,858,826 - 14,858,826 Franchise taxes 1,456,175 - 1,456,175 Business license taxes 16,186,448 - 16,186,448 Transient occupancy taxes 8,813,484 - 8,813,484 Other taxes 1,969,752 - 1,969,752 Total taxes 132,171,975 - 132,171,975 Intergovernmental revenues, unrestricted 6,452,993 6,452,993 Investment earnings (losses) (3,305,987) (621,560) (3,927,547) Miscellaneous 579,324 14,827 594,151 Transfers (1,130,406) 1,130,406 -
Total general revenues and transfers 134,767,899 523,673 135,291,572 Change in net position 86,692,977 2,603,095 89,296,072 Net position - beginning of year, as restated 103,087,958 52,660,551 155,748,509 Net position - ending of year 189,780,935$ 55,263,646$ 245,044,581$ Primary Government
Changes in Net Position
Net (Expense) Revenue and
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FUND FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
29 FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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30 GOVERNMENTAL FUND
FINANCIAL STATEMENTS
General Fund - This is the primary o perating fund of the City. It accounts for all activities of the general governm ent, ex ceptthose required to be accounted for in another fund.
Capital Improvement and Acquisition Fund - To a ccount for capital projects that are not otherwise funded by a special revenue fund or other s pecifically identifiedby the sources of funding. Project funding is mainly from general revenues allocated by action of the City Council.
Culver City Housing Authority Fund - This f und is used to account for the former Low/Moderate Incom e Housing Funds transferred to the City under the 2011 Cooperation and Implementation agreements. It is als o anticipated that future funding will be provided from the Successor Agency from the past redevelopm ent agency repayment 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 Fund - To account fo r grant funds awards to the City by federal, state, and local grant agencies for capital im provem ents, and the qualified ex penditures of those restricted funds.
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Balance Sheet
Governmental Funds
June 30, 2022
31 Culver City Capital
Housing Improvement and
General Authority Acq uisition
A SSE TS
Cash and investments 88,419,810$ 16,915,004$ 11,367,876$ Restricted investments held by Pension Trust 12,050,540 - - Accounts receivables, net 3,749,050 28,393 - Interest receivables 285,992 3,707,151 29,614 Notes receivables, net 60,686 15,475,740 - Lease receivables 685,302 - - Due from other funds 16,707,224 272,300 - Due from other governments 15,361,934 - - Due from Successor Agency - 1,986,045 - Advances to other funds 14,724,416 - - Total assets 152,044,954$ 38,384,633$ 11,397,490$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES , AND FUND BALANCES
L iabilities:
Accounts payable 2,986,136$ 130,151$ 549,006$ Salaries and benefits payable 2,404,626 - - Due to other funds 539 1,142,520 - Deposits payable 2,240,087 6,685 6,533,448 Retention payable 34,351 - 11,227 Unearned revenues 778,700 - - Total liabilities 8,444,439 1,279,356 7,093,681 Deferred Inflows of Resources:
Leases 643,861 - - Unavailable revenue - - - Total deferred inflows of resources 643,861 - - Fund Balances:
Nonspendable 14,785,102 - - Restricted 27,050,540 37,105,277 4,303,809 Committed 69,500,578 - - Assigned 6,527,254 - - Unassigned (deficit) 25,093,180 - - Total fund balances 142,956,654 37,105,277 4,303,809 Total liabilities, deferred inflows of
resources and fund balances 152,044,954$ 38,384,633$ 11,397,490$ Major Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
32 Major Funds
Capital Total Tot al
Improvement Nonm ajor Governmental
Grants Funds Funds
A SSE TS
Cash and investments 6,626,569$ 51,141,214$ 174,470,473$ Restricted investments held by Pension Trust - - 12,050,540 Accounts receivables, net - 92,759 3,870,202 Interest receivables 21,743 1,205,476 5,249,976 Notes receivables, net - 3,418,820 18,955,246 Leases receivables - - 685,302 Due from other funds - 15,000 16,994,524 Due from other governments 28,483,241 1,044,373 44,889,548 Due from Successor Agency - - 1,986,045 Advances to other funds - - 14,724,416 Total assets 35,131,553$ 56,917,642$ 293,876,272$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES , AND FUND BALANCES
L iabilities:
Accounts payable 1,278,537$ 688,018$ 5,631,848$ Salaries and benefits payable - 31,640 2,436,266 Due to other funds 8,361,097 2,043,912 11,548,068 Deposits payable - 237,120 9,017,340 Retention payable 232,985 36,138 314,701 Unearned revenues - - 778,700 Total liabilities 9,872,619 3,075,648 29,765,743 Deferred Inflows of Resources:
Leases - - 643,861 Unavailable revenue 3,963,591 517,047 4,480,638 Total deferred inflows of resources 3,963,591 517,047 5,124,499 Fund Balances:
Nonspendable - - 14,785,102 Restricted 21,295,343 26,517,505 116,272,474 Committed - 28,107,313 97,607,891 Assigned - - 6,527,254 Unassigned (deficit) - (1,299,871) 23,793,309 Total fund balances 21,295,343 53,324,947 258,986,030 Total liabilities, deferred inflows of
resources and fund balances 35,131,553$ 56,917,642$ 293,876,272$ See accompanying Notes to the Basic Financial Statements.
City of Culver City
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
Year Ended June 30, 2022
33 Total Fund Balances - Total Governmental Funds 258,986,030 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 73,742,730
Capital assets, depreciable (net of $27,444,604 reported in Internal Service Funds) 225,779,731 Less accumulated depreciation (net of $(20,570,598) reported in Internal Service Funds) (109,529,735) Long-term liabilities and r elated deferred outflows of resources and deferred inflows of resources were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds' Balance Sheet:
Compensated absences (net of $595,815 reported in Internal Service Funds) (12,654,224) Net pension liabilities (net of $6,706,186 reported in Internal Service Funds) (159,059,332) Pension related deferred outflows of resources (net of $818,872 reported in Internal Service Funds) 20,030,076 Pension related deferred inflows of resources (net of $2,751,830 reported in Internal Service Funds) (44,396,299) Net OPEB liabilities (net of $2,284,796 reported in Internal Service Funds) (52,512,549) OPEB related deferred outflows of resources (net of $536,869 reported in Internal Service Funds) 12,339,094 OPEB related deferred inflows of resources (net of $932,637 reported in Internal Service Funds) (21,435,238) Internal service funds are u sed by management to charge the costs of equipment replacement, fleet management, risk management, and central store to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Government-Wide Statement of Net Position (net of $2,709,125 allocated to business-type activities). (5,989,987)
Revenues earned but not available to pay for current expenditures for governmental funds are unavailable. 4,480,638 Net Position of Governmental Activities 189,780,935
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
June 30, 2022
34 Culver City Capital
Hous
ing Improvement and
General Authority Acquisition
REVENUES :
Taxes 132,171,974$ -$ -$ Licenses and permits 5,606,338 - - Fines and forfeitures 3,580,843 - - Intergovernmental 11,420,723 - 2,613,022 Charges for services 12,433,475 - - Investment earnings (3,110,896) 401,762 183,532 M iscellaneous 453,723 31,500 - Total revenues 162,556,180 433,262 2,796,554 EXPENDITURES :
Current:
General government 17,715,221 - - Parks, recreation, and community services 9,866,398 - - Police 44,984,235 - - Fire 27,632,597 - - Community development 9,425,787 1,652,679 - Public works 14,018,558 - 191,908 Transportation - - - Capital outlay 398,256 - 3,372,473 Total expenditures 124,041,052 1,652,679 3,564,381 REVENUES OVER (UNDER) EXPENDITURES 38,515,128 (1,219,417) (767,827) OTHER FINANCING S OURCES (US ES ):
Transfers in 3,958,668 - 3,325,304 Transfers out (8,325,304) (978,668) - Proceeds from sale of property 131 - - Total other financing sources (uses) (4,366,505) (978,668) 3,325,304 CHANGES IN FUND BALANCES 34,148,623 (2,198,085) 2,557,477 FUND BALANCES:
Beginning of year 108,808,031 39,303,362 1,746,332 End of year 142,956,654$ 37,105,277$ 4,303,809$ Major Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
June 30, 2022
35 Major Funds
Total
Cap
ital Nonmajor Total
Improvement Governmental Governmental
Grants Funds Funds
REVENUES :
Taxes -$ -$ 132,171,974$ Licenses and permits - 1,495,732 7,102,070 Fines and forfeitures - - 3,580,843 Intergovernmental 37,272,117 11,578,614 62,884,476 Charges for services - 8,030,965 20,464,440 Investment earnings (86,912) (563,350) (3,175,864) M iscellaneous - 12,947 498,170 Total revenues 37,185,205 20,554,908 223,526,109 EXPENDITURES :
Current:
General government - 506,416 18,221,637 Parks, recreation, and community services - 94,249 9,960,647 Police - 627,907 45,612,142 Fire - 411,446 28,044,043 Community development - 3,797,646 14,876,112 Public works - 427,051 14,637,517 Transportation - 373,693 373,693 Capital outlay 8,079,436 4,850,681 16,700,846 Total expenditures 8,079,436 11,089,089 148,426,637 REVENUES OVER (UNDER) EXPENDITURES 29,105,769 9,465,819 75,099,472 OTHER FINANCING S OURCES (US ES ):
Transfers in - 303,090 7,587,062 Transfers out - (4,413,496) (13,717,468) Proceeds from sale of property - 27,741 27,872 Total other financing sources (uses) - (4,082,665) (6,102,534) CHANGES IN FUND BALANCES 29,105,769 5,383,154 68,996,938 FUND BALANCES:
Beginning of year (7,810,426) 47,941,793 189,989,092 End of year 21,295,343$ 53,324,947$ 258,986,030$ See accompanying Notes to the Basic Financial Statements.
City of Culver City
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Net Position Year Ended June 30, 2022
36 Net Change in Fund Balances - Total Governmental Funds 68,996,938$ 16,558,490
(5,764,498)
(921,915)
Other postemployment benefit expense 4,587,331
Pension expense 5,933,231
2,052,935
(4,749,535)
Change in Net Position of Governmental Activities 86,692,977$ Amounts reported for governmental activities in the Statement of Activities are different because:
Unavailable revenue is not recognized as revenue in the governmental funds since the revenue is not available to fund expenditures of the current year.
Capital outlay, net of $89,844 net capital assets disposal Acquisition of capital assets was reported as expenditures in the governmental funds. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over the estimated 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.
Long-term compensated absences expense was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. Therefore, the increase in long-term compensated absences was not reported as an expenditure in the governmental funds.
Other postemployment benefits and pension expenses were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, the increase or decrease in other postemployment 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 certain 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.
City of Culver City, California
37 PROPRIETARY FUND
FINANCIAL STATEMENTS
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38 Municipal Fiber Network Fund - This fund is used to account for the ins tallation of open access network where Internet Service Providers ("ISP") will utilize the City’s fiber infrastructure to service the business com m unity.
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 ex ternal users for goods and/or services.
E nterprise 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.
City of Culver City
Statement of Net Position
Proprietary Funds
June 30, 2022
39 Total
Refuse Municipal Bus Sew er M unicipal Enterprise
Disposal Lines Ent erprise Fiber Network Funds
A SSE TS
Current assets:
Cash and investments 4,877,473$ 10,394,447$ 23,704,578$ 291,276$ 39,267,774$ Accounts receivables, net 1,498,696 150,761 4,456 163,071 1,816,984 Interest receivables 14,112 29,405 66,577 1,231 111,325 Due from other funds - - - - - Due from other governments 167,961 3,297,757 318,477 - 3,784,195 Inventory - - - - - Total current assets 6,558,242 13,872,370 24,094,088 455,578 44,980,278 Noncurrent assets:
Cash and investments with
fiscal agent - - 4 - 4 N
otes receivables, net - - 1,195 - 1,195 Lease receivables - - - 248,046 248,046 Capital assets:
Not being depreciated 377,619 5,649,335 14,049,258 2,141,237 22,217,449 Being depreciated 9,642,742 73,659,922 75,368,077 11,508,688 170,179,429 Less accumulated depreciation (6,999,435) (40,568,136) (40,879,671) (1,185,256) (89,632,498) Total capital assets, net 3,020,926 38,741,121 48,537,664 12,464,669 102,764,380 Total noncurrent assets 3,020,926 38,741,121 48,538,863 12,712,715 103,013,625 Total assets 9,579,168 52,613,491 72,632,951 13,168,293 147,993,903
DEFERRED O UTFLO WS O F RES O URCES
Pension related amounts 690,671 1,974,488 159,078 - 2,824,237 Other postemployment benefits related amounts 693,640 1,155,080 65,075 - 1,913,795 Total deferred outflows of resources 1,384,311 3,129,568 224,153 - 4,738,032 Business-Type Activities - Enterprise Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
40 Governmental
Activities
Internal
Service Funds
A SSE TS
Current assets:
Cash and investments 15,212,620$
Accounts receivables, net 10,314
Interest receivables 27,461
Due from other funds 18,423
Due from other governments -
Inventories 754,914
Total current assets 16,023,732
Noncurrent assets:
Cash and investments with
fiscal agent -
Notes receivables, net -
Capital assets:
Not being depreciated -
Being depreciated 27,444,604
Less accumulated depreciation (20,570,598)
Total capital assets, net 6,874,006
Total noncurrent assets 6,874,006
Total assets 22,897,738
DEFERRED O UTFLO WS O F RES O URCES
Pension related amounts 818,572
Other postemployment benefits related amounts 536,869
Total deferred outflows of resources 1,355,441
(Continued)
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
41 Total
Refuse Municipal Bus Sewer M unicipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
LIABILITIES
Current liabilities:
Accounts payable 477,729$ 830,483$ 578,714$ 168,665$ 2,055,591$ S
alaries and benefits payable 191,158 523,111 30,543 - 744,812 Due to other funds - - - 2,736,035 2,736,035 Interest payable - - 273,400 - 273,400 Deposits payable 253,750 - - 202,220 455,970 Retention payable - 6,094 - - 6,094 Unearned revenue 55 2,522,423 - 3,330,209 5,852,687 Lease liabilities 185,469 - - - 185,469 Compensated absences, due within one year 228,711 502,883 70,367 - 801,961 Claims payable, due within one year - - - - - Revenue bonds payable, due within one year - - 805,000 - 805,000 Total current liabilities 1,336,872 4,384,994 1,758,024 6,437,129 13,917,019 Noncurrent liabilities:
Advances from other funds - - - 14,724,416 14,724,416 Lease liabilities, due in more than one year 370,748 - - - 370,748 Compensated absences, due in more than one year 230,476 500,157 4,547 - 735,180 Claims payable, due in more than one year - - - - - Revenue bonds payable, due in more than one year - - 20,665,830 - 20,665,830 Net pension liabilities 5,658,345 16,176,054 1,303,253 - 23,137,652 Net other postemployment benefits liabilities 2,951,982 4,915,774 276,945 - 8,144,701 Total noncurrent liabilities 9,211,551 21,591,985 22,250,575 14,724,416 67,778,527 Total liabilities 10,548,423 25,976,979 24,008,599 21,161,545 81,695,546
DEFERRED INFLO WS O F RES O URCES
Pension related amounts 2,321,857 6,637,715 534,779 - 9,494,351 Other postemployment benefits related amounts 1,204,977 2,006,583 113,047 - 3,324,607 Leases - - - 244,660 244,660 Total deferred inflows of resources 3,526,834 8,644,298 647,826 244,660 13,063,618
NET POS ITION
Net investment in capital assets 2,464,709 38,735,027 27,066,834 12,464,669 80,731,239 Restricted for debt service - - 4 - 4 Unrestricted (Deficit) (5,576,487) (17,613,245) 21,133,841 (20,702,581) (22,758,472) Total net position (3,111,778)$ 21,121,782$ 48,200,679$ (8,237,912)$ 57,972,771$ Adjustment to reflect the consolidation of
internal service fund activities related to
business-type activities (2,709,125)
Ne
t position of business-type activities 55,263,646$
(Continued)
Business-Type Activities - Enterprise Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
42 Governmental
Activities
Internal
Service Funds
LIABILITIES
Current liabilities:
Accounts payable 669,257$
S
alaries and benefits payable 223,755
Due to other funds 2,728,844
Interest payable -
Deposits payable -
Retention payable -
Unearned revenue -
Lease liabilities -
Compensated absences, due within one year 180,357
Claims payable, due within one year 4,626,094
Revenue bonds payable, due within one year -
Total current liabilities 8,428,307
Noncurrent liabilities:
Advances from other funds -
Lease liabilities, due in more than one year -
Compensated absences, due in more than one year 415,458 Claims payable, due in more than one year 11,433,077
Revenue bonds payable, due in more than one year -
Net pension liabilities 6,706,186
Net other postemployment benefits liabilities 2,284,796 Total noncurrent liabilities 20,839,517
Total liabilities 29,267,824
DEFERRED INFLO WS O F RES O URCES
Pension related amounts 2,751,830
Other postemployment benefits related amounts 932,637
Total deferred inflows of resources 3,684,467
NET POS ITION
Net investment in capital assets 6,874,006
Restricted for debt service -
Unrestricted (Deficit) (15,573,118)
Total net position (8,699,112)$
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2022
43 Total
Refuse M uni cipal Bus Sewer M unicipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
OPERATING REVENUES :
Charges for services 18,464,601$ 1,442,579$ 9,162,252$ 2,732,776$ 31,802,208$ Other 21,062 497,045 - 330,906 849,013 Total operating revenues 18,485,663 1,939,624 9,162,252 3,063,682 32,651,221 O PERATING EXPENS ES :
Salaries and benefits 5,772,520 15,594,471 1,269,808 - 22,636,799 Supplies 272,985 451,125 2,852,566 66,003 3,642,679 Repairs and maintenance 2,972,012 5,368,520 351,110 79,041 8,770,683 Insurance 155,207 570,672 59,496 - 785,375 Claims and settlements - - - - - Administrative services 2,158,851 1,980,982 769,956 - 4,909,789 Rent and lease expenses 127,288 - 360,000 - 487,288 Consulting and contractual services 4,377,181 661,334 664,853 1,606,936 7,310,304 Depreciation and amortization 458,785 3,973,981 1,725,824 229,293 6,387,883 Total operating expenses 16,294,829 28,601,085 8,053,613 1,981,273 54,930,800 O PERATING INCO ME (LO S S ) 2,190,834 (26,661,461) 1,108,639 1,082,409 (22,279,579) NO NO PERATING REVENUES (EXPENS ES ):
Interest expense (19,553) - (706,986) (44,187) (770,726) Investment earnings (losses) (74,487) (188,754) (353,846) (4,473) (621,560) Intergovernmental 43,717 17,302,430 157 - 17,346,304 M easure R sales tax - - - - - Gain (loss) on sales of property - 14,827 - - 14,827 Debt Service - - - - - Capital outlay - - - - - Total nonoperating revenues (expenses) (50,323) 17,128,503 (1,060,675) (48,660) 15,968,845
INCO ME (LO S S ) BEFO RE
CONTRIBUTIONS AND TRANS FERS 2,140,511 (9,532,958) 47,964 1,033,749 (6,310,734) CONTRIBUTIONS AND TRANS FERS :
Capital contributions - 6,861,090 - - 6,861,090 Transfers in -
1,483,540 - - 1,483,540 Transfers out - (353,134) - - (353,134) Total contributions and transfers - 7,991,496 - - 7,991,496 Changes in net position 2,140,511 (1,541,462) 47,964 1,033,749 1,680,762 NET POS ITION:
Beginning of year, as restated (5,252,289) 22,663,244 48,152,715 (9,271,661) 56,292,009 End of year (3,111,778)$ 21,121,782$ 48,200,679$ (8,237,912)$ 57,972,771$ Adjustment to reflect the consolidation of internal service funds activities related to business-type activities 922,333
C
hanges in net position of business-type activities 2,603,095$ (Continued)
Business-Type Activities - Enterprise Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
Year Ended June 30, 2022
44 Governmental
Activities
Inte
rnal
Service Funds
OPERATING REVENUES :
Charges for services 21,656,063$
Other 2,557
Total operating revenues 21,658,620
O PERATING EXPENS ES :
Salaries and benefits 6,835,817
Supplies 2,539,275
Repairs and maintenance 3,623,161
Insurance 3,251,049
Claims and settlements 4,264,115
Administrative services -
Rent and lease expenses -
Consulting and contractual services 907,960
Depreciation and amortization 2,185,135
Total operating expenses 23,606,512
O PERATING INCO ME (LO S S ) (1,947,892)
NO NO PERATING REVENUES (EXPENS ES ):
Interest expense -
Investment earnings (losses) (130,123)
Intergovernmental -
M easure R sales Tax -
Gain (loss) on sales of property 53,282
Capital outlay -
Total nonoperating revenues (expenses) (76,841)
INCO ME (LO S S ) BEFO RE
CONTRIBUTIONS AND TRANS FERS (2,024,733)
CONTRIBUTIONS AND TRANS FERS :
Capital contributions -
Transfers in 5,000,000
Transfers out -
Total contributions and transfers 5,000,000
Changes in net position 2,975,267
NET POS ITION:
Beginning of year (11,674,379)
End of year (8,699,112)$
(Concluded)
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2022
45 Total
Refuse Municipal Bus Sewer M unicipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
CAS H FLOWS FROM OPERATING ACTIVITIES :
Receipts from customers and users 18,240,245$ 2,241,626$ 9,157,948$ 2,649,005$ 32,288,824$ Receipts from user departments - - - - - Payments to suppliers (10,053,138) (9,261,534) (5,139,143) (2,178,906) (26,632,721) Payments to employees (6,434,994) (17,320,733) (1,432,306) - (25,188,033) Net cash provided by (used in) operating activities 1,752,113 (24,340,641) 2,586,499 470,099 (19,531,930)
CAS H FLOWS FROM NONCAPITAL
FINANCING ACTIVITY:
Grants received (paid to other funds) (20,344) 22,292,317 (64,623) - 22,207,350 Cash received from (paid to) other funds - 1,130,406 - - 1,130,406 Net cash provided by
noncapital financing activities (20,344) 23,422,723 (64,623) - 23,337,756
CAS H FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grants received - 6,861,090 - - 6,861,090 Acquisition of capital assets (493,840) (7,057,485) (2,169,869) (173,119) (9,894,313) Advances from other funds - - - 44,187 44,187 Proceeds from sales of capital assets - 26,406 - - 26,406 Payment of Lease (174,274) - - - (174,274) Interest paid (19,553) - (836,700) (44,187) (900,440) Principal paid on revenue bonds - - (740,000) - (740,000) Net cash used in capital
and related financing activities (687,667) (169,989) (3,746,569) (173,119) (4,777,344) CAS H FLOWS FROM INVES TING ACTIVITY:
Interest received (investment losses) (78,428) (186,816) (355,034) (5,704) (625,982) Cash provided by (used in) investing activity (78,428) (186,816) (355,034) (5,704) (625,982) Net increase (decrease) in cash and cash equiv alents 965,674 (1,274,723) (1,579,727) 291,276 (1,597,500) CAS H AND CAS H EQUIVALENTS :
Beginning of year 3,911,799 11,669,170 25,284,309 40,865,278 End of year 4,877,473$ 10,394,447$ 23,704,582$ 291,276$ 39,267,778$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENTS OF NET POSITION:
Cash and investments 4,877,473$ 10,394,447$ 23,704,578$ 291,276$ 39,267,774$ Cash and investments held with fiscal agent - - 4 - 4 Total 4,877,473$ 10,394,447$ 23,704,582$ 291,276$ 39,267,778$ (Continued)
Business-Type Activities - Enterprise Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2022
46 Governmental
Activities
Internal
Service Funds
CAS H FLOWS FROM OPERATING ACTIVITIES :
Receipts from customers and users 2,557$
Receipts from user departments 21,702,228
Payments to suppliers (14,720,620)
Payments to employees (7,645,505)
Net cash provided by (used in) operating activities (661,340)
CAS H FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES :
Grants received (paid to other funds) -
Cash to other funds 5,758,395
Net cash provided (used in) by
noncapital financing activities 5,758,395
CAS H FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grants received -
Acquisition of capital assets (328,557)
Advances from other funds -
Proceeds from sales of capital assets 57,062
Payment of Lease -
Interest paid -
Principal paid on revenue bonds -
Net cash provided by (used in) capital
and related financing activities (271,495)
CAS H FLOWS FROM INVES TING ACTIVITIES :
Interest received (investment losses) (137,609)
Cash provided by (used in) investing activity (137,609) Net increase (decrease) in cash and cash equiv alents 4,687,951 CAS H AND CAS H EQUIVALENTS :
Beginning of year 10,524,669
End of year 15,212,620$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENTS OF NET POSITION:
Cash and investments 15,212,620$
Cash and investments held with fiscal agent -
Total 15,212,620$
(Continued)
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2022
47 Total
Refuse Municipal Bus Sew er M unicipal Enterprise
Disposal Lines Ent erprise Fiber Network Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CAS H PROVIDED BY (US ED IN) OPERATING ACTIVITIES :
Operating income (loss) 2,190,834$ (26,661,461)$ 1,108,639$ 1,082,409$ (22,279,579)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 458,785 3,973,981 1,725,824 229,293 6,387,883 (Increase) decrease in:
Accounts receivable (316,418) 286,142 (4,304) (152,171) (186,751) Leases receivables - - - 252,051 252,051 Customer deposits 71,000 - - - 71,000 Inventory - - - - - Unearned revenue - 15,860 - (259,120) (243,260) Deferred outflows of resources - pensions 446,914 1,277,633 102,935 - 1,827,482 Deferred outflows of resources - OPEB (581,549) (968,421) (54,559) - (1,604,529) Increase (decrease) in:
Accounts payable 10,386 (234,995) (81,162) (426,926) (732,697) Salaries and benefits payable 35,858 45,136 1,062 - 82,056 Retention payable - 6,094 - - 6,094 Compensated absences 38,522 27,336 (29,046) - 36,812 Net pension liabilities (3,178,729) (9,087,340) (732,138) - (12,998,207) Net other postemployment benefits liabilities 410,080 682,883 38,472 - 1,131,435 Deferred inflows of resources - pensions 2,252,837 6,440,400 518,882 - 9,212,119 Deferred inflows of resources - OPEB (86,407) (143,889) (8,106) - (238,402) Deferred inflows of resources - Leases - - - (255,437) (255,437) Claims payable - - - - - Total adjustments (897,506) (1,653,161) (247,964) (841,603) (3,640,234) Net cash provided by (used in) operating activities 1,752,113$ (24,340,641)$ 2,586,499$ 470,099$ (19,531,930)$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Accrued interest on advances -$ -$ -$ 44,187$ 44,187$ (Continued)
Business-Type Activities - Enterprise Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2022
48 Governmental
Activities
Internal
Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CAS H PROVIDED BY (US ED IN) OPERATING ACTIVITIES :
Operating income (loss) (1,947,892)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 2,185,135
(Increase) decrease in:
Accounts receivable 46,165
Leases receivables -
Customer deposits -
Inventories 2,854
Unearned revenue -
Deferred outflows of resources - pensions 529,675
Deferred outflows of resources - OPEB (450,112)
Increase (decrease) in:
Accounts payable 362,904
Salaries and benefits payable 7,319
Retention payable -
Compensated absences (49,733)
Net pension liabilities (3,767,383)
Net other postemployment benefits liabilities 317,396
Deferred inflows of resources - pensions 2,670,028
Deferred inflows of resources - OPEB (66,878)
Deferred inflows of resources - Leases
Claims payable (500,818)
Total adjustments (898,583)
Net cash provided by (used in) operating activities (661,340)$
NONCASH NONCAPITAL FINANCING ACTIVITIES
Accrued interest on advances -$
(Concluded)
49 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 Redevelopm ent Agency, including disposition of real properties held by the Agency and paym ent of enforceable obligations.
Reflected in the Basic Financial Statements section.
Custodial Funds - To account for assets held by the City as an agent for individuals, private organizations, other governm ent units, and/or other funds.
OPEB Trust Plan Fund - To account for the assets of the City's Retiree Health Insurance Program (the Plan), a s ingle - em ployer defined benefit plan for the City's eligible retired em ployees and their spouses.
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
50 Private
P urpose OPEB
Trust Trust Custodial
Fund Plan Funds
A SSE TS
Cash and investments 5,903,208$ -$ 72,980$ Cash and investments held with fiscal agent 15,168,210 - - Restricted cash held with OPEB Trust - 4,120,423 - Restricted investments held with OPEB Trust 51,933,391
Interest receivables 1,978 - - Prepaid items 39,221 - - Notes receivables, net 815,763 - - Capital assets: -
Not being depreciated 8,316,229 - - Being depreciated, net 4,486,572 - - Total assets 34,731,181 56,053,814 72,980
DEFERRED O UTFLO WS O F RES O URCES
Deferred loss on refunding, net 747,111 - - Total deferred loss on refunding 747,111 - -
LIABILITIES
Accounts payable 38,018 - - Deposits payable - - - Interest payable 447,458 - - Due to Culver City Housing Authority 1,986,045 - - Bonds payable, due within one year 11,473,698 - - Bonds payable, due more than one year 55,441,733 - - Total liabilities 69,386,952 - -
NET POS ITION (DEFICIT)
Held in trust (33,908,660)$ 56,053,814$ 72,980$ See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2022
51 Private
Purpose OPEB
Trust Trust Custodial
Fund Plan Funds
ADDITIONS
Redevelopment property taxes trust funds 18,911,156$ -$ -$ Contributions - 6,404,161 - Investment earnings:
Interest 28,696 16,524 - Dividend - 1,418,655 - Net depreciation in fair value of investments (9,935) (10,706,152) - Total additions 18,929,917 (2,866,812) -
DEDUCTIONS
Benefit payments - 6,390,150 - General and administrative 802,454 31,584 - Depreciation 138,902 - - Interest expense 2,753,400 - - Reimbursement to the City 613,080 - - Total deductions 4,307,836 6,421,734 - Change in net position 14,622,081 (9,288,546) -
NET POS ITION
Beginning of year, as restated (48,530,741) 65,342,360 72,980 End of year (33,908,660)$ 56,053,814$ 72,980$
NOTES TO THE BASIC FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
52 NOTES TO THE BASIC
FINANCIAL STATEMENTS
This page intentionally left blank.
City of Culver City
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
53 PAGE
Note 1: Summary of Significant Accounting Policies 56
A. Reporting Entity 56
B. Basis of Accounting and Measurement Focus 57
C. Fund Classifications 62
D. Cash and Investments 63
E. Cash Equivalents 63
F. Fair Value Measurement 63
G. Inventories 63
H. Interfund Transactions 64
I. Capital assets 64
J. Interest Payable 64
K. Unearned Revenue 65
L. Deferred Outflows and Inflows of Resources 65
M. Long-Term Debt 65
N. Pension Plans 65
O. Other Postemployment Benefits (OPEB) 66
P. Employee Leave Benefits 66
Q. Claims and Judgments 67
R. Property Taxes 67
S. Net Position 68
T. Fund Balances 68
U. Spending Policy 71
V. Use of Estimates 71
W. Implementation of New Accounting Pronouncements 72
Note 2: Stewardship, Compliance, and Accountability 73
A. Deficit Fund Balances/Net Position 73
B. Excess of Expenditures Over Appropriations by Department in Individual Funds 74
Note 3: Cash and Investments 75
Note 4: Interfund Balances 81
A. Internal Balances 81
B. Due From and To Other Funds 81
C. Advances To and From Other Funds 82
D. Transfers In and Out 82
City of Culver City
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
54 PAGE
Note 5: Notes Receivables 84
A. Culver City Mobile Home Owners, Inc. 84
B. MAP Loans 84
C. Tilden Terrace - Residential 85
D. Home Ownership Made Easy 85
E. Exceptional Children’s Foundation ERAS Loans 85
F. Exceptional Children’s Foundation Westside Opportunity Workshop 85 G. Habitat For Humanity of Greater Los Angeles 85
H. Tilden Terrace - Commercial 86
I. Community Development Block Grant 86
Note 6: Lease Receivables 86
Note 7: Capital Assets 87
A. Governmental Activities 87
B. Business-Type Activities 88
Note 8: Long-term Liabilities 89
A. Governmental Activities 89
B. Business-Type Activities 89
Note 9: Bonds Payable 90
Note 10: Claims and Judgments 91
Note 11: Pension Plans 92
A. California Public Employees’ Retirement System (“CalPERS”) 92 B. Public Agency Retirement Services (“PARS”) 101
Note 12: Other Postemployment Benefits (“OPEB”) 102
Note 13: Deferred Compensation Plan 108
Note 14: Contingencies 108
Note 15: Classification of Fund Balances 109
Note 16: Prior Period Adjustment 109
Note 17: Subsequent Events 110
City of Culver City
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
55 PAGE
Note 18: Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency 110
Note 19: Governmental Accounting Standards Board (GASB) Statements Issued, Not Yet Effective 115
City of Culver City
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
56 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 accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.
A. Reporting Entity
The City was incorporated in 1917 and adopted its current City Charter in 1947. The City Charter establishes the form of government, states the powers and duties of the City Council, and establishes the City’s various executive offices. The City operates under a City Council/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 Chief and City Attorney. The City provides 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 purposes, management has considered all potential component units. The primary criteria 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 specific 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 whether 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 activity of the City and its component units, the Culver City Housing Authority, 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 body 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 almost 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, 2022
57 Note 1 – Summary of Significant Accounting Policies (Continued)
A. Reporting Entity (Continued)
Blended Component Units (Continued)
The Culver City Housing Authority (the “Housing Authority”) was established in January 2012 to serve as the Housing Successor Agency for the dissolved Redevelopment Agency and is governed by a board comprised of the City Council. The Housing Authority 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”) w as 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 private property acquired. The Parking Authority is governed by a board comprised of the City Council and is reported as a special revenue fund. Separate financial statements are not prepared.
The Culver City Financing Authority (the “Financing Authority”) i s a joint powers authority between
the City and the former Redevelopment Agency and was created to provide financing 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. B
asis 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 units).
Governmental activities include governmental funds and proprietary internal service funds. Business - type activities 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, general government expenses have not been allocated as indirect expenses to the various functions of the City.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Government- wide Financial Statements (Continued)
Government-wide financial statements 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 refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, an d liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
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. Program 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 assets 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.
Fu
nd 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 outflows 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 upon the purpose s 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 statements 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
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 availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues 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.
In the fund financial statements, governmental funds are presented using the “ current financial resources” measurement focus. This means that only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on the balance sheets. The reported fund balance (net current assets) is considered to be a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Funds (Continued)
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 p eriod.
Other revenue items are considered to be measurable and available when cash is received by the government.
Due to the nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they 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 expenditures 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 proprietary funds. In the fund financial statements, the proprietary funds are presented using the “economic resources” measurement focus and the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, the proprietary funds 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 statements 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 fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non -operating revenues, such as subsidies, 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, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as expenses.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Funds ( Continued)
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 insurance, 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 custodial funds, private purpose trust funds, and the OPEB trust plan fund. The custodial funds, the private purpose trust funds, and the OPEB trust plan fund are accounted for on the full accrual basis of accounting.
S uccessor 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.
O
PEB Trust Plan Fund
The fund is used 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.
C
ustodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, other government units, and/or other funds. A custodial fund such as Treasurer’s Trust is used to account for certain funds 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 Component Area No. 2 of the former Culver City Redevelopment Project Area. The custodial funds are accounted for on the full accrual basis of accounting.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62 Note 1 – Summary of Significant Accounting Policies (Continued)
C. Fund Classifications
The City reports the following major governmental funds:
Gen eral 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.
C ulver 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 repayment obligations. These funds are restricted to be used for qualified low/moderate income housing projects identified in the Agreement.
C
apital Improvement and A cquisition 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 funding is mainly from general revenues allocated by action of the City Council.
C
apital Improvement Grants Capital Projects Fund
The fund is used to account for grant funds awards to the City by federal, state, and local grant agencies for capital improvements, and the qualified expenditures of those restricted funds.
The City reports the following major enterprise funds:
R efuse Disposal Fund – This fund is used to account for the operation and the capital assets of the City’s refuse disposal service.
M unicipal Bus Lines Fund – This fund is used to account for the operation and the capital assets of the City’s transportation system.
S
ewer Enterprise Fund – This fund is used to account for the maintenance and operation, and the capital assets of the City’s sewage disposal service.
M
unicipal Fi ber 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63 Note 1 – Summary of Significant Accounting Policies (Continued)
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 fair 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.
E. Cash Equivalents
For purposes of the statement of cash flows, cash equivalents are defined as short -term, highly liquid investments that are both readily convertible to known amounts of cash or so 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 measuring fair value and es tablishes 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 assets 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 estimate 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64 Note 1 – Summary of Significant Accounting Policies (Continued)
H. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred as either “due to/from other funds” or “advances to/from” (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental 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 infrastructure 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 historical cost if purchased or constructed.
Donated capital assets are valued at their estimated acquisition value on the date of donation. Capital assets subject to lease obligations are valued at the net present value of future lease payments at the inception of the lease. The City has reported all capital assets including infrastructure in the government-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.
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 on long -term debt is recognized as the liability is incurred for governmental activities and business-type activities. In the fund financial statements, only proprietary fund types recognize the interest payable when the liability is incurred.
Buildings and infrastructure 50-65 years
Im
provement other than buildings and infrastructure 20 years Refuse transfer station 50 years
Furniture and fixtures 3-5 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, 2022
65 Note 1 – Summary of Significant Accounting Policies (Continued)
K. Unearned Revenue
Unearned revenue is recognized for transactions for which revenue 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 resources represents a consumption of net assets that is applicable to a future reporting period. A deferred inflow of resources represents an acquisition of net assets that is applicable to a future period.
Under the modified accrual basis of accounting, revenue susceptible 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 ar e 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 reported net of the applicable bond premium or discount.
In the fund financial statements, the governmental fund financial 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.
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 11). 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:
Pension Plan Valuation
Valuation Date June 30, 2020
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, 2022
66 Note 1 – Summary of Significant Accounting Policies (Continued)
N. Pension Plans (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of 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 outflows of resources and deferred inflows of resources related to OPEB, and OPEB 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 benefit 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 a mounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings 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.
OP EB P lan Valuation
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67 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 those 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 of the Proprietary funds. A current liability is accrued in the governmental funds for material leave benefits due on demand to governmental fund employees that have terminated prior to fiscal year end. All other amounts are recorded in the government-wide financial statements. These non-current amounts will be recorded 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 years 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 employed, 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 estimated. 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 into 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68 Note 1 – Summary of Significant Accounting Policies (Continued)
R. Property Taxes (Continued)
The property tax calendar is as follows:
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 – T
his 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 B
alances
In the fund financial statements, governmental funds report fund 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.
Lien Date: January 1
Le
vy Date: June 30
Due Date: First Installm ent - Novem ber 1
Second Installm ent - February 1
Delinquent Date: First Installment - December 10
Second Installm ent - April 10
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Fund Balances (Continued)
Committed fund balance – amounts that can only be used for specific purposes determined 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 action that imposed the limitation needs to occur no later than the close of the reporting period.
Resolution is the highest level of the City Council’s approval. The City Council establishes, modifies or rescinds 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 designated for authorizing assigned fund balances are the Chief Financia l 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, if governmental funds other than the General Fund, had expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
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 operating 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 without 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Fund Balances (Continued)
The City Council has imposed the following commitments of fund balance in the General Fund to establish reserves:
1. C ontingency Reserve : The Contingency Reserve shall have a target balance of thirty percent (30%) of General Fund “Operating Budget” as originally adopted. Operating Budget for this purpose shall include current expenditure appropriations and shall exclude Capital Improvement Proje cts and Transfers Out. Appropriation and/or access to these funds are reserved for emergency situations only. The parameters by which the Contingency Reserve could be accessed would include the following circumstances:
a. A cat
astrophic loss of critical infr astructure requiring an expenditure 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 claim 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 cumulative 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 Council. Should t he 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, 2022
71 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Fund Balances (Continued)
Financial Reserves Policy (Continued)
2. Fa cilities Planning Reserve : The Facilities Planning Reserve has 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 other 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 specific City Council allocations. The eligible uses of this reserve include the cash funding of public facility improvements or the servicing of related debt.
3. R
ecreational Facilities : City Council Policy 5003 requires ten percent (10%) of gross annual revenues derived from specified recreational classes and rentals to be set aside for the refurbishment of certain recreational facilities, fee-based activity programs and equipment used in connection with fee-based recreation classes.
U. Spe
nding Policy
Government- Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted 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 unrestricted 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72 Note 1 – Summary of Significant Accounting Policies (Continued)
W. Implementation of New Accounting Pronouncements
During the fiscal year ended June 30, 2022 , the City adopted the following new Statements of the Governmental Accounting Standards Board (GASB):
GASB 87, Leases
During the fiscal year ended June 30, 2022, the City implemented GASB Statement No. 87 – Leases.
The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset.
Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.
The implementation of this new accounting standards resulted in recognition of lease receivable and deferred inflows of resources and lease payable and right-of-use lease asset in the City’s June 30, 2022 financial statements. See also Notes 6 and 8.
GASB 89, “Accounting for Interest Cost Incurred before the End of a Construction Period”
GASB 89, “Accounting for Interest Cost Incurred before the End of a Construction Period”, effective for periods beginning after December 15, 2020. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. The implementation of this standard did not have an impact on the City’s financial statements.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73 Note 2 – Stewardship, Compliance, and Accountability
A. Deficit Fund Balances/Net Position
As of June 30, 2022, (deficit) fund balances/net position were reported in the following funds:
The material deficits are expected to be eliminated as follows:
Refuse Disposal Fund – The deficit is due to inclusion of the net pension liability and net OPEB liability totaled to $8,610,327. The City will develop a plan to reduce deficit.
Municipal Fiber Network Fund – The deficit is due to the construction 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.
Operating Grants – The deficit will be eliminated after grant reimbursements are received past the available period and when unavailable revenue is recognized as revenue.
Paratransit Fund – The deficit will be eliminated after grant monies are received after the availability period and unavailable revenue being recognized as revenue.
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.
Equipment Maintenance Fund – The City intends to implement a plan 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 $7,244,587.
Major Proprietary Funds:
Refuse Disposal Fund (3 ,111,778)$
Municipal Fiber Network Fund (8,237,912)
Nonmajor Governmental Funds:
Operating G rants (1,220,751)
Paratransit G rant (56,208)
Board of State Com m unity Corrections (7,223)
CDBG Capital Projects Fund (15,689)
Internal Serv ice Funds:
Equipm ent Maintenance Fund (12,113,769)
Risk Managem ent Fund (12,342,321)
Fiduciary Fund:
Private Purpose Trust Fund (33,908,660)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74 Note 2 – Stewardship, Compliance, and Accountability (Continued)
A. Deficit Fund Balances/Net Position (Continued)
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 partially due to the estimated claims liability in the amount of $16,059,171. The deficit will be recovered from charging the user departments in the future.
Private Purpose Trust Fund – The deficit will be eliminated after tax increment revenue are distributed to City’s Successor Agency.
The City also had a deficit unrestricted net position for governmental activities and business-type activities at June 30, 202 2 in the amount of ( $129,855,540) and ( $25,467,597), respectively. It was mainly due to the net pension related liabilities and net other postemployment benefits related liabilities.
The net pension liabilities for governmental activities and business-type activities at June 30, 2022 were $165,765,518 and $2 3,137,652, respectively. The net other postemployment benefits liabilities for governmental activities and business-type activities at June 30, 2022 were $54,797,345 and $8,144,701, respectively.
B. Excess of Expenditures Over Appropriations by Department in Individual Funds
Fund Expenditures Appropriations
Excess of
Expenditures over
Appropriations
Major Governmental Funds:
General Fund
General government 17,715,221$ 16,044,971$ $ (1,670,250) Nonmajor Governmental Funds:
Special Revenue Funds:
Safe/Clean Water Protection Fund
Community Development 13,148 460 (12,688) Operating Grants
Fire 400,246 68,372 (331,874)
Community development 243,431 239,789 (3,642) Transportation 2,730 170 (2,560) Paratransit
Transportation 370,963 289,606 (81,357) City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 3 – Cash and Investments
Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:
Cash and investments as of June 30, 2022 consist of the following:
G overnm ental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investm ents $ 189,683,093 $ 39,267,774 $ 5,976,188 $ 234,927,055 Cash and investm ents held with fiscal agents and trustee - 4 15,168,210 15,168,214 Restricted cash and investm ents held by OPEB Trust - - 56,053,814 56,053,814 Restricted investm ents held by Pension Trust 12,050,540 - - 12,050,540 Total cash and investments $ 201,733,633 $ 39,267,778 $ 77,198,212 $ 318,199,623 G overnment-Wide Financial Statement
Cas h:
Petty cash $ 4,550
Dem and deposits 32,564,205
Total cash 32,568,755
OPEB Mutual Funds 4,120,423
Investm ents 281,510,445
Total $ 318,199,623
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76 Note 3 – Cash and Investments (Continued)
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 provisions 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.
Authorized by M a ximu m M a ximu m
Investm ent M a ximu m Percentage Investm ent
Investm ent Types Authorized by State Law Policy Maturity* of Portfolio* In One Issuer Local agency bonds Ye s 3-5 years 30% 5%
U.S. treasury obligations Ye s 5 Y ears N/A No Limit
U.S. governm ent sponsored enterprise securities Ye s 5 Y ears N/A 30% Banker's acceptances Ye s 180 days 25% 5%
Commercial paper Ye s 270 days 25% 5%
Repurchase agreements Ye s 75 days 25% No Limit
Reverse repurchase agreements Ye s 75 days 15% No Limit Corporate m edium -term notes Ye s 3-5 years 30% 5%
Money m arket m utual funds Ye s N/A 20% 10%
Local agency investm ent fund ("LAIF") Ye s N/A N/A $75 million Cal Trust m oney m arket funds and short-term funds Ye s N/A N/A No Limit Cal Trust m edium -term funds Ye s N/A 15% No Limit
N/A - Not applicable
*Based on state law requirem ents or investm ent policy requirem ents, whichever is m ore restrictive.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 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, 2022 , investments are reported at fair value. The following 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, 2022:
M a ximu m M a ximu m
M a ximu m Percentage Investm ent
Authorized Investm ent Type Maturity of Portfolio In One Issuer U.S. treasury obligations None None None
U.S. governm ent sponsored enterprise securities None None None Banker's acceptances 360 days None None
Commercial paper 270 days No ne None
Money m arket m utual 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 investm ent 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 $ - $ 60,323,909 $ - $ 60,323,909 State investment pool - - 74,515,791 74,515,791 U.S. government sponsored enterprise securities (1) - 46,857,845 - 46,857,845 Money market mutual funds (1) - - 2,712,355 2,712,355 Medium-term notes (1) - 17,948,400 - 17,948,400 Cash and investment held with fiscal agents:
Money market mutual funds - 15,168,214 - 15,168,214 Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds - - 809,479 809,479 OPEB Mutual Funds 4,120,423 - 4,120,423 Mutual funds 63,174,452 - - 63,174,452 Total $ 67,294,875 $ 140,298,368 $ 78,037,625 $ 285,630,868 (1) Priced based on institutional bond quotes.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78 Note 3 – Cash and Investments (Continued)
Fair Value Measurement (Continued)
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 pricing service that utilized matrix pricing. The market approach utilizes prices and other relevant data from market transactions for similar assets.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond 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.
Investment Type Fair Value Less Than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years Treasury obligations $ 60,323,909 $ 6,476,260 $ 18,191,618 $ 24,948,166 $ 10,707,865 $ - State investment pool 74,515,791 74,515,791 - - - - U.S. government sponsored enterprise securities 46,857,845 15,316,578 23,371,532 6,330,995 1,838,740 - Money market mutual funds 2,712,355 2,712,355 - - - - Medium-term notes 17,948,400 2,996,960 9,493,505 4,457,655 1,000,280 - Cash and investment held with fiscal agents:
Money market mutual funds 15,168,214 15,168,214 - - - - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 809,479 809,479 - - - - OPEB Mutual Funds 4,120,423 4,120,423 - - - - Mutual funds 63,174,452 63,174,452 - - - - Total $ 285,630,868 $ 185,290,512 $ 51,056,655 $ 35,736,816 $ 13,546,885 $ - Investment Maturities (in Years)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 3 – Cash and Investments (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented on the following page is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Concentration of Credit Risk
The investment policy of the City contains no limitations on the 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 event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party.
Investment Type Amount
Minimum
Legal
Rating AAA AA+ AA A
Not
Rated
Treasury obligations $ 60,323,909 N/A $ - $ 60,323,909 $ - $ - $ - State investment pool 74,515,791 N/A - - - - 74,515,791 U.S. government sponsored enterprise securities 46,857,845 N/A - 46,857,845 - - - Money market mutual funds 2,712,355 AAA 2,712,355 - - - - Medium-term notes 17,948,400 A 2,995,260 1,996,360 5,017,210 7,939,570 - Cash and investment held with fiscal agents:
Money market mutual funds 15,168,214 AAA 15,168,214 - - - - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 809,479 AAA 809,479 - - - - OPEB Mutual Funds 4,120,423 4,120,423 - - - - Mutual funds 63,174,452 AAA 63,174,452 - - - - Total $ 285,630,868 $ $ 88,980,183 $ 109,178,114 $ 5,017,210 $ 7,939,570 $ 74,515,791 Rating as of June 30, 2022
Reported % of
Issuer Investm ent type Am ount Maturity the Portfolio Federal Home Loan Bank U.S. governm ent sponsored enterprise securities $ 12,160,343 2022-2024 6.01% Federal Farm Credit Bank U.S. governm ent sponsored enterprise securities 14,062,898 2023-2025 6.95% Fannie Mae U.S. governm ent sponsored enterprise securities 18, 681,244 2022-2025 9.23% Freddie Mac U.S. governm ent sponsored enterprise securities 1,953,360 2023 0.97% City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80 Note 3 – Cash and Investments (Continued)
Custodial Credit Risk ( Continued)
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments,
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 cash 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 (“LAIF”) which is regulated by California Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2022 included a portion of pool funds invested in Structured Notes and Asset -Backed Securities:
Structured Notes ar
e debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) 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 fr om a pool of mortgages (such as Collateralized Mortgage Obligations) or credit care receivables.
A
s of June 30, 2022 , the City had $74,515,791 invested in LAIF, which had invested 1.88% 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 available. The investment in LAIF is reported at amortized cost. The credit quality rating of LAIF is unrated as of June 30, 2022.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 3 – Cash and Investments (Continued)
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, 2022, the City reported restricted investments held by the Pension Trust in the amount of $12,050,540.
The OPEB trust reported a total investment of $ 56,053,814 at June 30, 202 2. The OPEB Trust Plan is reported as a fiduciary fund.
Note 4 – Interfund Balances
A. Internal Balances
At June 30, 2022, 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, 2022, the individual fund interfund receivable payable balances are as follows:
Internal Payable
Business-Type
Internal Receiv able Activities
G overnmental Activities $ 20,169,576
Proprietary Funds
Culver City Housing Nonm ajor
Authority Special G overnm ental
Due to Other Funds G eneral Fund Revenue Fund Funds Total Governmental Funds:
G eneral Funds $ - $ 539 $ $ $ 539 Capital Im provem ent G rants 8,145,000 216,097 - - 8,361,097 Culver City Housing Authority 1,142,516 - - 4 1,142,520 Nonm ajor G overnm ental Funds 1,954,829 55,664 15,000 18,419 2,043,912 Proprietary Funds:
Municipal Fiber Network 2,736,035 - - - 2,736,035 Internal Service Funds 2,728,844 - - - 2,728,844 Total $ 16,707,224 $ 272,300 $ 15,000 $ 18,423 $ 17,012,947 Governmental Funds
Internal Service
Fund
Due From Other Funds
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82 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, 2022 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 $ 1,986,045 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-term loan to the Successor Agency is unknown. The payments will be based on the California Department of Finance approved Recognized Obligation Payments Schedule.
C. Advances To and From Other Funds
At June 30, 2022, the individual fund advances to from balances are as follows:
At June 30, 2022 , the Municipal Fiber Network Fund owes the General Fund $ 14,724,416 including accrued interest of $321,821 to cover the initial construction costs, one year of 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 $44,187.
D. Transfers In and Out
Government-
Wide Financial Statements
Advances to
Other
Fund
s
Adv ances From Other Funds G eneral Fund
Pr
oprietary Funds:
Municipal Fiber Network Fund $ 14,724,416
Transfers In
Business-Type
Transfers Out Activities
G overnmental Activities $ 6,130,406
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 4 – Interfund Balances (Continued)
D. Transfers In and Out (Continued)
Fund Financial Statements
For the year ended June 30, 2022, transfers in and out consisted of the following:
Transfers from Culver City Housing Authority Fund to General Fund in the amount of $978,668 were to support housing administration costs.
Transfers from General Fund to Capital Improvement Grants Acquisition Fund in the amount of $3,325,304 were to provide funding sources for the capital improvement related projects.
Transfers from Nonmajor Governmental Funds (Special Gas Tax Fund in the amount of $400,000, Culver City Parking Authority Fund in the amount of $1,200,000 and Operating Grants Fund in the amount of $1,080,000) to General Fund 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 $249,956 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 Lines Fund in the amount of $1,483,540 were to pay for eligible transit related expenses.
Transfers from General Fund to Internal Service Fund in the amount of $5,000,000 were to fund claims liability in the risk management Fund .
Transfers Out G eneral Fund Total
Governmental Funds:
G eneral Fund $ - $ 3,325,304 $ - $ - $ 5,000,000 $ 8,325,304 Culver City Housing Authority
Fund 978,668 - - - - 978,668 Nonm ajor G overnm ental Funds 2,680,000 - 249,956 1,483,540 - 4,413,496 Proprietary Funds:
Municipal Bus Lines Fund 300,000 - 53,134 - - 353,134 Total $ 3,958,668 $ 3,325,304 $ 303,090 $ 1,483,540 $ 5,000,000 $ 14,070,602 Transfers In
Governmental Funds
Capital
Im provem ent
G rants and
Acquisition
Fund
Nonm ajor
G overnm ental
Funds
Municipal
Bus Lines
Fund
Internal
Service Funds
Proprietary Fund
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84 Note 5 – Notes Receivables
At June 30, 2022, the City had $ 18,956,441 including both Governmental 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, 2022 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, 2022, all outstanding balances totaled to $570,740.
Gov ernmental Activ ities Am ount
G e
neral Fund:
All others under $200,000 individually $ 60,686
To
tal G eneral Fund 60,686
Culver City Housing Authority Special Revenue Fund:
Tilden Terrace - Residential 11,805,000
Habitat For Hum anity of G reater Los Angeles 3,100,000 Culver City Mobile Hone Owners, Inc. 1,223,104
MAP Loans 570,740
Ex ceptional Children's Foundation Westside Opportunity Workshop 387,500 Ho
m eownership Made Easy 412,250
Ex ceptional 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 No
nm ajor Fund:
Com m unity Developm ent Block G rant 23,820
Tilden Terrace - Commercial 3,395,000
Total Nonm ajor Fund 3,418,820
Total Gov ernmental Activ ities $ 18,955,246
Bu
siness-Type Activ ities:
Other Notes Receivable $ 1,195
To
tal Sewer Enterprise Fund 1,195
Total Business-Typ e Activ ities $ 1,195
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 5 – Notes Receivables (Continued)
C. Tilden Terrace – Residential
On February 22, 2012, the former Culver City Redevelopment Agency entered into a promissory note with Tilden Terrace, L.P. in the amount of $11,805,000 with 3% 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 at June 30, 2022 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 loan was transferred to the Housing Authority.
The balance of the home loan at June 30, 2022 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 organization for the development of 6-unit group home for the developmentally disabled low and moderate income persons.
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, 2022 , 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 Agency 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 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, 2022, 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, 2022 , all outstanding balances totaled to $3,100,000.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86 Note 5 – Notes Receivables (Continued)
H. Tilden Terrace – Commercial
On February 22, 2012, the former Culver City Redevelopment Agency 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 Authority.
The balance of the promissory note at June 30, 2022 was $3,395,000. The principal is not due until June 30, 2067.
I. Community Development Block Grant
Prior to 1988 , the Housing Division offered Neighborhood Preservation Program deferred loans through Community Development Block Grant Funding. At repayment, the City is required to remit the payment amount to the Los Angeles County Community Development Commission. As of June 30, 2022, there is one outstanding loan in the amount of $23,820.
Note 6 –Lease Receivable
The City entered into various Indefeasible Right-to-Use (IRU) contracts for the use of the City’s dark fiber cables and access to and use of associated property from the City. Payments vary per contract provisions and the terms range from 5 to 20 years with discount rates ranging from 2% to 3.5%.
The City also leases a piece of commercial property for five years with interest rate of 2%.
The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. At June 30, 2022, the total lease receivable and deferred inflows of resources for the above leases were $933,348 and $888,521, respectively.
A deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight line basis over the term of the lease.
The future lease receipts for these leases are as follows:
There were no significant variable payments received during the fiscal year ended June 30, 2022.
Year ending June 30 Principal Interest Total
2023 237,378$ 21,827$ 259,205$
2024 191,576 16,779 208,356
2025 98,258 13,142 111,400
2026 103,748 10,994 114,742
2027 75,826 8,806 84,632
2028 - 2039 226,561 58,210 284,771 Total 933,348$ 129,758$ 1,063,106$
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 7 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 202 2 are as follows:
Depreciation expense was charged to the following functions in the statement of activities:
Balance Balance
June 30, 2021 Additions Deletions Transfers June 30, 2022 Capital assets, not being depreciated
Land $ 21,538,464 $ - $ - $ - $ 21,538,464 Construction in progress 44,017,581 13,716,661 (172,262) (5,357,714) 52,204,266 Total capital assets, not being depreciated 65,556,045 13,716,661 (172,262) (5,357,714) 73,742,730 Capital assets, being depreciated
Building 75,639,855 - - - 75,639,855 Improvements 37,189,333 1,506,741 - 4,547,755 43,243,829 Machinery and equipment 49,117,237 1,242,542 (359,678) - 50,000,101 Infrastructure 82,794,590 736,001 - 809,959 84,340,550 Total capital assets, being depreciated 244,741,015 3,485,284 (359,678) 5,357,714 253,224,335 Less accumulated depreciation:
Building (34,734,835) (1,464,848) - - (36,199,683) Improvements (21,924,921) (1,713,590) - - (23,638,511) Machinery and equipment (35,740,760) (3,405,424) 355,898 - (38,790,286) Infrastructure (29,963,447) (1,508,406) - - (31,471,853) Total accumulated depreciation (122,363,963) (8,092,268) 355,898 - (130,100,333) Total capital assets, being depreciated, net 122,377,052 (4,606,984) (3,780) 5,357,714 123,124,002 Governmental activities
capital assets, net $ 187,933,097 $ 9,109,677 $ (176,042) $ - $ 196,866,732 Governmental Activities
G eneral governm ent $ 675,704
Pa
rks, recreation, and community services 713,586
Police 531,771
Fire 442,735
Com m unity developm ent 1,255,721
Public works 2,287,616
Internal service funds 2,185,135
Total depreciation ex pense $ 8,092,268
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88 Note 7 – Capital Assets (Continued)
B. Business-Type Activities
Summary of changes in capital assets for business-type activities for the year ended June 30, 2022 are as follows:
Depreciation expense was charged in the following functions in the Statement of Activities:
Balance Balance
June 30, 2021 Additions Deletions Tra nsfers June 30, 2022 Capital assets, not being depreciated
Land $ 3,082,760 $ - $ - $ - $ 3,082,760 Construction in progress 16,639,244 4 ,523,697 - (2,028,252) 19,134,689 Total capital assets, not being depreciated 19,722,004 4,523,697 - (2,028,252) 22,217,449 Capital assets, being depreciated
Building 28,075,733 - - - 28,075,733 Im provem ents and other buildings 12,451,364 75,455 - 1,877,299 14,404,118 Machinery and equipm ent 53,765,449 5,295,160 (1,948,368) - 57,112,241 Furniture and fix tures 430,852 - (10,544) - 420,308 Infrastructure 42,680,215 - - 150,953 42,831,168 Investm ent in Hyperion 26,605,373 - - - 26,605,373 Right-of-use asset - 730,491 - - 730,491 Total capital assets, being depreciated 164,008,986 6,101,106 (1,958,912) 2,028,252 170,179,432 Less accumulated depreciation and Amortization:
Building (13,967,144) (559,947) - - (14,527,091) Im provem ents and other buildings (7,527,787) (633,029) - - (8,160,816) Machinery and equipm ent (35,034,946) (3,491,339) 1,936,788 - (36,589,497) Furniture and fix tures (417,446) (5,642) 10,544 - (412,544) Infrastructure (9,650,941) (842,229) - - (10,493,170) Investm ent in Hyperion (18,593,686) (665,134) - - (19,258,820) Right-of-use asset - (190,563) (190,563) Total accumulated depreciation (85,191,950) (6,387,883) 1,947,332 - (89,632,501) Total capital assets, being depreciated, net 78,817,036 (286,777) (11,580) 2,028,252 80,546,931 Business-type activities
capital assets, net $ 98,539,040 $ 4,236,920 $ (11,580) $ - $ 102,764,380 Business-Type Activ ities
Refuse Disposal $ 458,785
Mu
nicipal Bus Lines 3,973,981
Sewer Enterprise 1,725,824
Municipal Fiber Network 229,293
$ 6,387,883
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 8 – Long-term Liabilities
A. Governmental Activities
Summary of changes in governmental activities long-term liabilities for the year ended June 30, 202 2 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, 2022 are as follows:
The refuse disposal, municipal bus lines, and sewer fund are are typically used to liquidate the compensated absences payable.
Lease Liability
The City has entered into an agreement to lease a commercial building for six ( 6) years commencing on January 1, 2019 and ending on April 30, 2025, for a monthly base rent of $15,000 subject to adjustment based on the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles – Long Beach – Anaheim, California area, published by the United States Department of Labor, Bureau of Labor Statistics (“Index”). The lease liability is measured at a discount rate of 3%. As a result of the lease, the Ci ty has recorded a right-to-use asset with a net book value of $539,928 and a lease liability of $556,217 on June 30, 2022.
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2022, were as follows:
Balance Balance Due within Due in m ore
June 30, 2021 Ad ditions Deletions June 30, 2022 One Y ear than One Y ear Compensated absences $ 12,377,857 $ 10,015,217 $ (9,143,035) $ 13,250,039 $ 5,253,326 $ 7,996,713 Claim s and judgm ents 16,559,989 4 ,194,317 (4,695,135) 16,059,171 4,626,094 11,433,077 Total $ 28,937,846 $ 14,209,534 $ (13,838,170) $ 29,309,210 $ 9,879,420 $ 19,429,790 Balance Balance Due within Due in m ore
June 30, 2021 Additions Deletions June 30, 2022 One Y ear than One Y ear Compensated absences $ 1,500,329 $ 1,899,500 $ (1,862,688) $ 1,537,141 $ 801,961 $ 735,180 Leas e liability - 730,491 (174,274) 556,217 185,469 370,748 Wastewater Facilities Revenues Bonds,
2019 Series A 18,935,000 - (740,000) 18,195,000 805,000 17,390,000 Bond prem ium 3,395,677 - (119,847) 3,275,830 - 3,275,830 Total $ 23,831,006 $ 2,629,991 $ (2,896,809) $ 23,564,188 $ 1,792,430 $ 21,771,758 Year ending June 30 Principal Interest Total
2023 185,469$ 14,172$ 199,641$
2024 197,182 8,449 205,631
2025 173,566 2,411 175,977
Total 556,217$ 25,032$ 581,249$
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90 Note 9 – Bonds Payable
Business- Type Activities
Wastewater Facilities Revenue Bonds, 2019 Series A
The Wastewater Facilities Revenue Bonds, 2019 Series A dated October 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 Trust, dated as of October 2019, by and between the City and U.S. Bank National Association, as trustee. The 2019 Bonds are limited obligat ions of the City payable solely from net revenues, which consist of revenues of the City’s sewer 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.
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 revenue s reasonably expected to yield net revenues equal to at least 1.20 times the maximum annual debt service. The City is in compliance with such covenant at June 30, 2022.
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 Y ear Principal Int erest Total
2023 $ 805,000 $ 800,075 $ 1,605,075
202
4 850,000 758,700 1,608,700
2025 895,000 715,075 1,610,075
2026 940,000 669,200 1,609,200
2027 990,000 620,950 1,610,950
2028-2032 4,000,000 2,374,000 6,374,000
2033-2037 2,040,000 1,754,100 3,794,100
2038-2042 2,500,000 1,293,000 3,793,000
2043-2047 3,040,000 740,400 3,780,400
2048-2050 2,135,000 130,300 2,265,300
Total $ 18,195,000 $ 9,855,800 $ 28,050,800
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 10 – Claims and Judgments
Self- Insurance
At June 30, 2022, the City was self -insured for workers’ compensation 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, 202 2, the City has recorded a liability in the amount of $16,059,171 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 also pays all liability claims up to $3,000,000 per occurrence with excess insurance coverage up to $30,000,000 limits. 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 significant 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, 2022 are as follows:
Balance at Current Y ear Balance at
Beginning of Claims and End of
Fiscal Y ear Change in Claim Fiscal Y ear
Fiscal Y ear Liability Estimates Payments Liability
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 2021-22 16,559,989 4,194,317 (4,695,135) 16,059,171 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
92 Note 11 – Pension Plans
A. California Public Employees’ Retirement System (“CalPERS”)
At June 30, 2022, net pension liabilities and related deferred outflows of resources and deferred inflows of resources are as follows:
Gov ernmental Business-T yp e
Activ ities Activ ities Total
Deferred outflow s of resources:
Pension contribution m ade after m easurem ent date:
Miscellaneous
$ 5,169,637 $ 2,824,237 $ 7,993,874 Safety 11,321,603 - 11,321,603 Difference between ex pected and actual ex perience:
Miscellaneous - - - Safety 4,357,408 - 4,357,408 Total deferred outflow s of resources $ 20,848,648 $ 2,824,237 $ 23,672,885 Net p ension liab ilities:
Miscellaneous $ 42,352,446 $ 23,137,652 $ 65,490,098 Safety 123,413,072 - 123,413,072 Total net p ension liab ilities $ 165,765,518 $ 23,137,652 $ 188,903,170 Deferred inflow s of resources:
Difference between ex pected and actual ex perience:
Miscellaneous
$ 500,566 $ 273,465 $ 774,031 Safety - - - Difference in projected and actual earnings on
pension investm ents:
Miscellaneous 16,878,422 9,220,886 26,099,308 Safety 29,769,141 - 29,769,141 Total deferred inflow s of resources
$ 47,148,129 $ 9,494,351 $ 56,642,480 Pension E xpense (Income):
Miscellaneous $ 2,347,663 $ 1,282,556 $ 3,630,219 Safety 9,013,609 - 9,013,609 $ 11,361,272 $ 1,282,556 $ 12,643,828 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 11 – 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’ Retirement 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 California.
Benefit provisions and all other requirements are established by state statute and City ordinance. A full description 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 June 30, 20 20 Annual Actuarial Valuation Report. This report and CalPERS’ audited financial statements are publicly 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 memb ers ) memb ers )
Benefit formula 2.5% @ 55 2% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-63 50-63 52-67
Monthly benefits, as a % of eligible com pensation 2.0%-2.5% 1.092%-2.418% 1.092%-2.418% 1.0%-2.5% Required em ployee contribution rates 8.00% 7.00% 7.00% 7.00% Required em ployer contribution rates 10.105% 10.105% 10.105% 10.105% City M iscellaneous Plan
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
94 Note 11 – 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 - December (prior to PERS 2013 (New PERS Hire date 2011 2012 memb ers ) memb ers )
Benefit formula 3% @ 55 3% @ 55 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-55 50-57
Monthly benefits, as a % of eligible com pensation 3% 2.4%-3.0% 2.4%-3.0% 2.0%-2.7% Required em ployee 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
11.75%
Required em ployer contribution rates Total 20.601%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.601%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.601%.
Management
em ployees pay
9%
of em ployer cost
through cost-
sharing
20.601%
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 memb ers ) memb ers )
Benefit formula 3% @ 55 3% @ 55 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-55 50-55 50-57
Monthly benefits, as a % of eligible com pensation 2.4%-3.0% 2.4%-3.0% 2.4%-3.0% 2.0%-2.7% Required em ployer 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
11.75%
Required em ployer contribution rates Total 20.601%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.601%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.601%.
Management
em ployees pay
9%
of em ployer cost
through cost-
sharing
20.601%
City Safety Plan - Fire
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
95 Note 11 – 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, multiplied by service. Industrial disability benefits are not offered.
An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre -retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.0 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 rate of compensation during the 12 months preceding death.
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.
Benefit terms provide for annual cost -of-living adjustments to each employee’s retirement allowance.
Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.
Employees Covered by Benefit Terms
At June 30, 2020, the valuation date, the following employees were covered by the benefit terms:
Miscellaneous Safety
Active employees 491 172
Transferred and terminated employees 695 69 Retired Employees and Beneficiaries 665 302 Total 1,851 543
Plans
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
96 Note 11 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
General Information about the Pension Plan (Continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The total pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021. The total pension liability is based on the following actuarial methods and assumptions.
Changes of Assumptions
There were no changes of assumptions in 2021.
Entry Age Norm al in accordance with the requirem ents of G ASB 68 Actuarial Assum ptions:
Discount Rate 7.15%
Inflation 2.500%
Salary Increases V aries by Entry Age and Service
Mortality Rate Table1 Derived using CalPERS' Mem bership 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 Actuarial Cost Method
from Decem ber 2017 that can be found on the CalPERS website.
The m ortality table used was developed based on CalPERS-specific data. The probabilities of m ortality are based on the 2017 CalPERS Ex perience Study for the period from 1997 to 2015. Pre-retirem ent and Post-retirem ent m ortality rates include 15 years of projected m ortality im provem ent using 90% of Scale MP-2016 published by the Society of Actuaries.
For m ore details on this table, please refer to the CalPERS Ex perience Study and Review of Actuarial Assum ptions report City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
97 Note 11 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Net Pension Liability (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short -term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as followed:
Assum ed
Asset Re al Return Real Return
Asset class (1) Allocation Y ears 1-10(2) Y ears 11+(3) G lobal equity 50.00% 4. 80% 5.98%
Fix ed incom e 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 CAFR, Fix ed Incom e is included in G lobal Debt Securities; Liquidity is included in Short-term Investm ents; Inflation Assets are included in both G lobal Equity Securities and G lobal 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, 2022
98 Note 11 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15 %. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributi ons from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Liquidating Net Pension Liability
Pension liabilities are liquidated by all the funds.
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
Liab ility Position Liab ility/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (V aluation Date) $ 335,782,792 $ 233,501,846 $ 102,280,946 Changes Recognized for the Measurem ent Period:
Service Cost 6,329,689 - 6,329,689 Interest on the total pension liability 23,627,525 - 23,627,525 Changes of benefit term s 117,535 - 117,535 Changes of assum ptions - - - Difference between ex pected and actual ex perience (753,559) - (753,559) Net plan to plan resource m ovem ent - (8,885) 8,885 Contributions from the em ployer - 10,957,281 (10,957,281) Contributions from em ployees - 2,740,550 (2,740,550) Net investm ent incom e - 52,656,347 (52,656,347) Benefit paym ents, including refunds of em ployee
contribution (15,713,448) (15,713,448) - Administrative ex penses (233,255) 233,255 Net Changes during July 1, 2020 to June 30, 2021 13,607,742 50,398,590 (36,790,848) Balance at June 30, 2021 (Measurement Date) $ 349,390,534 $ 283,900,436 $ 65,490,098 M iscellaneous Plan
Increase (Decrease)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
99 Note 11 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Changes in the Net Pension Liability (Continued)
The following tables show the changes in net pension liability recognized over the measurement period.
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:
Total Pension Plan Fiduciary Net Net Pension
Liab ility Position Liab ility/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (V aluation Date) $ 425,738,099 $ 265,594,334 $ 160,143,765 Changes Recognized for the Measurem ent Period:
Service Cost 7,125,026 - 7,125,026 Interest on the total pension liability 30,110,920 - 30,110,920 Difference between ex pected and actual ex perience 3,483,416 - 3,483,416 Net plan to plan resource m ovem ent - 8,885 (8,885) Contributions from the em ployer 15,257,575 (15,257,575) Co
ntributions from em ployees 2,568,476 (2,568,476) Net investm ent incom e 59,880,432 (59,880,432) Benefit paym ents, including refunds of em ployee
contribution (23,304,571) (23,304,571) - Administrative ex penses - (265,313) 265,313 Net Changes during July 1, 2019 to June 30, 2020 17,414,791 54,145,484 (36,730,693) Balance at June 30, 2021 (Measurement Date) $ 443,152,890 $ 319,739,818 $ 123,413,072 Safety Plan
Increase (Decrease)
1% Decrease Current Rate 1% Increase
Net Pension Liab ility (6.15%) (7.15%) (8.15%)
Miscellaneous Plan $ 110,493,208 $ 65,490,098 $ 28,146,766 Sa
fety Plan $ 181,784,840 $ 123,413,072 $ 75,381,192 Discount Rate
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
100
Note 11 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
Changes in the Net Pension Liability (Continued)
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, 2021, the City incurred a pension expense of $ 3,630,219 and $9,013,609 for Miscellaneous and Safety plans, respectively.
As of measurement date of June 30, 20 21, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred outflow s Deferred inflow s
of resources of resources
Pension contributions m ade after m easurem ent date $ 7,993,874 $ - Difference between ex pected and actual ex perience - (774,031) Net difference between projected and actual earning on
pension plan investm ents - (26,099,308) Balance at June 30, 2021 (Measurement Date) $ 7,993,874 $ (26,873,339) Pension Ex pense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) Deferred outflow s Deferred inflow s
of resources of resources
Pension contributions m ade after m easurem ent date $ 11,321,603 $ - Difference between ex pected and actual ex perience 4,357,408 - Changes of assum ptions - - Net difference between projected and actual earning on
pension plan investm ents - (29,769,141) Balance at June 30, 2021 (Measurement Date) $ 15,679,011 $ (29,769,141) M iscellaneous Plan
Safety Plan
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
101
Note 11 – 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 participants (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 lifetimes of the active employees) by 1,788 and 518 (the total number of participants: active, inactive, and retired), respectively.
The $7,993,874 and $11,321,603 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, 2022 will be recognized as a reduction of the net pension liability in the year ending June 30, 202 3. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
B. Public Agency Retirement Services (“PARS”)
The City established the City of Culver City Alternative Retirement System, with PARS. Under PARS, the City participates in the defined contribution plan to benefit part time, 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.
Deferred outflow s/ Deferred outflow s/
Measurement Period (Inflows) of Resources (Inflows) of Resources Ended June 30 M iscellaneous Plan Safety Plan
2022 $ (7,160,207) $ (5,437,367) 2023 (6,232,228) (5,599,925)
2024 (6,264,676) (6,315,596)
2025 (7,216,228) (8,058,845)
Total $ (26,873,339) $ (25,411,733) City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
102
Note 11 – Pension Plans (Continued)
B. Public Agency Retirement Services (“PARS”)
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 $90, 172 for the year ended June 30, 2022.
Note 12 – Other Postemployment Benefits (“OPEB”)
At June 30, 2022, net OPEB liabilities and related deferred outflows of resources and deferred inflows of resources are as follows:
Gov ernmental Business-T yp e
Activ ities Activ ities Total
Deferred outflow s of resources
Net difference between projected and actual
earning on plan investm ents $ 3,627,336 $ 539,142 $ 4,166,478 Change in assum ption 9,248,628 1,374,652 10,623,280 Total deferred outflow s of resources $ 12,875,963 $ 1,913,795 $ 14,789,758 Net OPE B liab ilities: $ 54,797,345 $ 8,144,701 $ 62,942,046 Total net OPE B liab ilities $ 54,797,345 $ 8,144,701 $ 62,942,046 Deferred inflow s of resources
Change in assum ption $ 924,416 $ 137,399 $ 1,061,815 Difference between ex pected and actual ex perience 21,443,459 3,187,208 24,630,667 Total deferred inflow s of resources $ 22,367,875 $ 3,324,607 $ 25,692,482 O P EB Expe ns e $ 788,539 $ 117,203 $ 905,742 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
103
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
Plan Description
In addition to the retirement plan described in Note 1 1, the City of Culver City’s Retiree Health Insurance Program (“OPEB Plan”), a single-employer plan that provides retiree healthcare benefits for eligible City employees and their spouses who retire with CalPERS pension benefits immediat ely upon termination of employment 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 benefit 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 $681 for single coverage, increasing by up to 4% per year.
o An additional monthly reimbursement of up to $594 for his or her 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 were 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, 2022
104
Note 12 – 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. Membership in the plan consisted of the following at June 30, 2021, 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, 2022, the City’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, 202 2, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021.
Actuarial assumptions
The total OPEB liability in the June 30, 20 21 actuarial valuation was determined using the followi ng actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2000 through June 30, 2021.
Active plan members 576
I
nactive employees or beneficiaries currently
receiving benefit paym ents 80
Inactive em ployees entitled to but not yet
receiving benefit paym ents 625
Total 1,281
Discount rate 6.00%
In
flation 2.50%
Aggregate payroll increases 2.75%
Expected long-term investment rate of return 6.50%
Mortality, termination, and disability CalPERS 2000-2019 Experience Study Mortality improvement Mortality projected fully generational with Scale MP-2021 PEM HCA Minimum Increases 3.50% annually
Medical trend
Non-Medicare: Premiums for 2022 to 2023, then 8.50% for 2024 decreasing to an ultimate rate of 3.45% in 2076;
Medicare - Kaiser: Premiums for 2022 to 2023, then 6.25% for 2024 decreasing to an ultimate rate of 3.45% in 2076
Medicare - Other: Premiums for 2022 to 2023, then 7.50% for 2024 decreasing to an ultimate rate of 3.45% in 2076
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
105
Note 12 – 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 inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
The long-term expected rate of return are presented as geometric means.
Discount Rate
The discount rate used to measure the total OPEB liability was 6. 00 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 periods of projected benefit payments to determine the total OPEB liability.
Liquidating Net OPEB Liability
The OPEB liabilities are liquidated by all the funds.
Target Expected Real
Allo
cation Rate of Return
Asset Class Component:
Domestic Equity 44% 4.29%
International Equity 23% 4.67%
Fixed Income 33% 0.78%
Assumed long-term rate of inflation 2.50%
Expected long-term net rate of return, rounded 6.00%
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
106
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
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 well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower (5.00 percent) or 1-percentage- po
int higher (7.00 percent) than the current discount rate:
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 well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 -percentage-point lower (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.
Total OPEB Plan Fiduciary Net Ne t O P EB
Liab ility Position Liab ility/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2021 $ 119,540,702 $ 65,342,359 $ 54,198,343 Changes Recognized for the Measurem ent Period:
Service Cost 2,102,062 - 2,102,062 Interes t on the total OPEB liability 7,699,100 - 7,699,100 Difference between ex pected and actual ex perience (15,164,245) - (15,164,245) Changes of assum ptions 11,208,390 - 11,208,390 Contributions from the em ployer - 6,404,161 (6,404,161) Net investm ent incom e - (9,270,972) 9,270,972 Benefit payments (6,390,150) (6,390,150) - Administrative ex penses - (31,585) 31,585 Net Changes during July 1, 2021 to June 30, 2022 (544,843) (9,288,546) 8,743,703 Balance at June 30, 2022 $ 118,995,859 $ 56,053,813 $ 62,942,046 Increase (Decrease)
1% Decrease Current Rate 1% Increase
(5.00%) (6.00%) (7.00%)
Net OPE B Liab ility $ 77,300,924 $ 62,942,046 $ 50,943,069 Discount Rate
1% Decrease Current Trend 1% Increase
Net OPE B Liab ility $ 50,469,884 $ 62,942,046 $ 77,299,969 Healthcare Trend Rate
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
107
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
Change in the Net OPEB Liability (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $905,742. At June 30, 2022, 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 expected average remaining service life. The expected average remaining service life is 6.0 years, which was determined as of July 1, 2021, 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:
Deferred Outflow s Deferred Inflow s
of
Resources of Resources
Net difference between projected and actual
earning on plan investm ents $ 4,166,478 $ - Di
fference between ex pected and actual ex perience - (24,630,667) Changes in assum ption 10,623,280 (1,061,815) Total $ 14,789,758 $ (25,692,482) Measurement Period Deferred Outflow s/
End
ing June 30 (Inflows) of Resources
2023 $ (4,556,325)
202
4 (3,788,430)
2025 (3,817,297)
2026 2,075,617
2027 (627,913)
Thereafter (188,376)
Total $ (10,902,724)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
108
Note 13 – Deferred Compensation Plan
The City offers its employees a deferred compensation plan created 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 deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts are held in trust for the exclusive benefit of the employe e participants and their beneficiaries. Therefore, the accumulated assets of the plan are 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 arrangements with the plan to provide 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 14 – Contingencies
Litigations
The City is a defendant in various lawsuits which have arisen in 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 Public Health Emergency of International Concern by the World Health Organization on January 30, 2020. The operations and business results of City 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 predicted, including new information which may emerge concerning the severity of the coronavirus and the actions required 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, 2022
109
Note 15 – Classification of Fund Balances
At June 30, 2022, fund balances are classified as follows:
Note 16 – P rior Period Adjustment
The beginning net position of the City’s Municipal Fiber Network Fund was restated to record lease p
ayments received in advance by the City which were reported as revenue in the year the payments were received. Those lease payments should have been reported as unearned revenue.
Culver City Capital Ca pital Nonm ajor Total
G eneral Housing Im provem ent and Im provem ent G overnm ental G overnm ental Fund Authority Acquis ition Gra n t s Funds Funds
Nons pendabl e
Notes receivable $ 60,686 $ - $ - $ - $ - $ 60,686 Advances to other funds 14,724,416 - - - - 14,724,416 Total nonspendable 14,785,102 - - - - 14,785,102 Restricted
Road construction - - - - 9,153,971 9,153,971 Housing authority - 37,105,277 - - 1,019,996 38,125,273 Public safety - - - - 821,099 821,099 Other purposes - - - - 295,737 295,737 Redevelopm ent - - - - 7,862,260 7,862,260 Street maintenance - - - - - - Equipm ent purchases - - - - 685,298 685,298 Construction of capital assets - - 4,303,809 21,295,443 1,170,578 26,769,830 Com m unity developm ent - - - - 5,508,566 5,508,566 Pension trust 27,050,540 - - - - 27,050,540 Total restricted 27,050,540 37,105,277 4,303,809 21,295,443 26,517,505 116,272,574 Committed
Contingency 43,852,751 - - - - 43,852,751 Facility Planning 23,858,726 - - - 13,125,656 36,984,382 Recreation facilities 1,789,101 - - - 14,981,657 16,770,758 Total committed 69,500,578 - - - 28,107,313 97,607,891 Assigned
Encumbered contracts 6,527,254 - - - - 6,527,254 Total assigned 6,527,254 - - - - 6,527,254 Unassigned 25,093,180 - - - (1,299,871) 23,793,309 Total fund balance $ 142,956,654 $ 37,105,277 $ 4,303,809 $ 21, 295,443 $ 53,324,947 $ 258,986,130 Municipal Fiber
Network
Beginning net position - as previously reported (5,682,332)$ A
djustm ent to recognize unearned revenue for lease paym ents received in advance (3,589,329) Beginning net position - as restated (9,271,661)$
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
110
NOTE 17 – Subsequent Events
The City has evaluated events subsequent to June 30, 2022 to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated throug h March 30, 2023, the date the financial statements were available to be issued. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or additional disclosure in the financial statements.
Note 18 – 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 Act 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 provided 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 Redevelopment Association (CRA) filed a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning 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 package, 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 Dissolved 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 adopted 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 Dissolved RDA. AB 1484 modified and provided some clarifications on the treatment of housing assets under the Dissolution 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 governmental funds statements of the City. After the date of dissol ution, the housing assets, obligations, and activities of the Dissolved RDA are reported in a fiduciary fund in the financial statements of the City.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
111
Note 18 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
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 office in the dissolution process and the satisfaction of enforceable obligations of the Dissolved RDAs.
The County Auditor-Controller is charged with establishing a Redevelopment Property Tax Trust Fund (the “RPTFF”) for each successor agency and depositing into the RPTFF for each 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 successor 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 approval. The County Auditor -Controller will make payments to the successor agency from the RPTFF based on the ROPS amount approved by the DOF. The ROPS is prepared in advance for the enforceable obligations due over the next twelve months.
The process of making RPTFF deposits to be used to pay enforceable obligations of the Dissolved RDA will continue until all enforceable obligations have been paid in full and all non -housing assets of the Dissolved RDA have been liquidated.
The State Controller of the State of California has been directed to review the propriety of any transfers of assets between Dissolved RDA and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
112
Note 18 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
CAPITAL ASSETS
Summary of changes in capital asset for the year ended June 30, 2022 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 number of years it will take to repay this short-term loan is unknown.
LONG-TERM LIABILITIES
Summary of changes in long-term liabilities for the year ended June 30, 2022 is as follows:
Balance Balance
Ju
ne 30, 2021 Additions Deletions June 30, 2022
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 Im provem ents 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 (916,606) (68,595) - (985,201) Im provem ents (234,619) (18,180) - (252,799) Infrastructure (623,018) (52,127) - (675,145) Total accumulated depreciation (1,774,243) (138,902) - (1,913,145) Total capital assets, being depreciated, net 4,625,474 (138,902) - 4,486,572 Fiduciary Fund
capital assets, net $ 12,941,703 $ (138,902) $ - $ 12, 802,801 Balance Balance Due within Due in m ore
June 30, 2021 Additions Deletions June 30, 2022 One Y ear than One Y ear 2011 A Tax Ex empt Tax Allocation
Revenue Bonds (CABS) $ 2,194,185 $ $ - $ 2,194,185 $ 308,698 $ 1,885,487 Accreted Interest on 2011 A Tax
Allocation 2,521,985 363,868 - 2,885,853 - 2,885,853 2017 A and B Tax Allocation Bonds 65,225,000 - (11,530,000) 53,695,000 11,165,000 42,530,000 Subtotal 69,941,170 363,868 (11,530,000) 58,775,038 11,473,698 47,301,340 Unam ortized original issue prem ium 9,425,718 - (1,285,325) 8,140,393 - 8,140,393 Total $ 79,366,888 $ 363,868 $ (12,815,325) $ 66,915,431 $ 11,473,698 $ 55,441,733 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
113
Note 18 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
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, and 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 principal amount Culver City Redevelopment Agency Tax Allocation Capital Appreciation Bonds, 2011 Series A maturing on 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 Agency irrevocably directed the trustee to transfer approximately $9.3 million on deposit with the trustee to the Principal Account in order to pay scheduled future debt service on the 2011A Bonds maturing November 1, 2019 through November 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 Appreciation 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, 2022, the reserve with fiscal agent was in the amount of $ 1,411,755 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, 2022 was $2,194,185. The accreted interest amount on the Capital Appreciation Bonds at June 30, 2022 was $2,885,853.
The annual debt service requirements on the remaining 2011 Tax Allocation Revenue Bonds Series A are as follows:
Fiscal Y ear Principal Interest Total
2023 $ 308,698 $ 294,896 $ 603,594 2024 1,075,621 1,063,778 2,139,399
2025 809,866 827,271 1,637,137
Total $ 2,194,185 $ 2,185,945 $ 4,380,130 2011 Series A Tax Allocation Revenue Bond
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
114
Note 18 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
2017 Tax Allocation Refunding Bonds Series A and B
On December 4, 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. The Bonds were issued to refund all of the outstanding 1999A, 2002A, 2004A, and 2005A bonds and part of 2011A bond and 2011B bonds. The transaction achieves 33 million in debt service cash flow savings, or $18 million 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 secured by and payable from tax revenues and were issued in denominations of $5,000 and are not subject to optional redemption prior to their maturity dates.
The annual debt service requirements on these bonds are as follows:
Pledged Revenues for Tax Allocation Bonds
The Trust has a number of Tax Allocation bonds outstanding that are collateralized by the pledging of property tax increment revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes.
Fiscal Y ear Principal Int erest Total
2023 11,165,000$ 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 5,200,000 689,750 5,889,750
2028 - 2029 11,195,000 566,625 11,761,625 Total $ 53,695,000 $ 7,886,375 $ 61,581,375 2017 A Tax Allocation Bonds
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
115
Note 19 – Governmental Accounting Standards Board (GASB) Statements Issued, Not Yet Effective
GASB has issued the following statements, which may impact the City’s financial reporting requirements in the future:
GASB 91, "Conduit Debt Obligations", effective for periods beginning after December 15, 2021.
GASB 93, " Replacement of Interbank Offered Rates", effective for fiscal years beginning after June 15, 2022.
GASB 94, " Public-Private and Public -Public Partnerships and Availability Payment Arrangements ", effective for fiscal years beginning after June 15, 2022.
GASB 96, " Subscription-Based Information Technology Arrangements ", effective for fiscal years beginning after June 15, 2022.
GASB 97, "Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans", effective for periods beginning after June 15, 2021.
GASB 99, "Omnibus 2022 ", effective upon issuance for requirements related to the extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63. This statement is effective for fiscal years beginning after June 15, 2022 for requirements related to leases, PPPs, and SBITAs. This statement is also effective for fiscal years beginning after June 15, 2023 for requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53.
GASB 100, "Accounting Changes and Error Corrections ", effective for fiscal years beginning after June 15, 2023.
GASB 101, "Compensated Absences", effective for fiscal years beginning after December 15, 2023.
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Required Supplementary Information
City of Culver City, California
116
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios Year Ended June 30, 2022
117
Measurement period 2013-14 1
2014-15 2015-16 2016-17 2017-18
T otal pension liability
Service 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 (11,157,496) (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 T otal pension liability - ending (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 (11,157,496) (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 fiduciary net position - ending (b) 183,604,841$ 184,188,782$ 182,660,302$ 200,186,834$ 213,382,955$ Plan net pension liability - ending (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 liability 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 cov ered payroll 217.40% 225.69% 259.16% 279.77% 261.34% 2 Net of administrative expenses for 2013-14.
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan 4 Includes one year’s payroll gro wt husing 2.75 percent payroll gro wt hassumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll gro wt h assumption for fiscal years ended June 30, 2014-17.
3 During Fiscal Year 2017-18, as a result of Governmental Accounting St andards Board Statement ( GASB)No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions ( GASB75), CalPERS reported its proportionate share of activity related to postemployment benefits 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 GASB 75.
Additionally, CalPERS employees participate in various S tate of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance wit hGASB Statement No. 68, Accounting and Financial Reporting for Pensions (G AS B 68). 1 Historical information is presented only for measurement periods for wh ichGASBNo. 68 is presented for periods after GASB 68 implementation in 2013-14.
Additional years of information will be displayed as it becomes available.
Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2022
118
Measurement period 2018-19 2019-20 2020-21
T otal pension liability
Service cost 6,100,488$ 6,152,289$ 6,329,689$
Interest 21,824,037 22,694,983 23,627,525
Changes of benefit terms 48,596 - 117,535 Changes of assumptions - - - Differences between expected and actual experience 5,548,202 (1,298,128) (753,559) Benefit payments, including refunds of employee contributions (14,141,132) (14,801,355) (15,713,448) Net change in total pension liability 19,380,191 12,747,789 13,607,742 T otal pension liability - beginning 303,654,812 323,035,003 335,782,792 T otal pension liability - ending (a) 323,035,003$ 335,782,792$ 349,390,534$ Pension fiduciary net position
Contributions - employer 8,759,782$ 10,092,870$ 10,957,281$ Contributions - employee 2,735,156 2,804,801 2,740,550 Net investment income 2
13,964,311 11,172,797 52,656,347
Benefit payments, including refunds of employee contributions (14,141,132) (14,801,355) (15,713,448) Net plan to plan resource movement - - (8,885) Administrative expense (152,275) (316,559) (233,254) Other miscellaneous expense 3
495 - -
Net change in plan fiduciary net position 11,166,337 8,952,554 50,398,591 Plan fiduciary net position - beginning 213,382,955 224,549,292 233,501,846 Plan fiduciary net position - ending (b) 224,549,292$ 233,501,846$ 283,900,437$ Plan net pension liability - ending (a) - (b) 98,485,711$ 102,280,946$ 65,490,097$ Plan fiduciary net position as a percentage
of the total pension liability 69.51% 69.54% 81.26%
Covered payroll 4
35,965,617$ 36,664,416$ $35,683,130
Plan net pension liability as a percentage of covered payroll 273.83% 278.97% 183.53% Notes to Schedule:
Last Ten Fiscal Years
Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate w ere changed in accordance to the CalPERS Experience S tudy and Review of Assumptions December 2017. There w ere no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2022
119
Measurement period 2013-14 1
2014-15 2015-16 2016-17 2017-18
T otal pension liability
Service cost 5,059,461$ 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 (16,067,896) (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 T otal pension liability - beginning 313,012,150 325,066,810 327,476,456 344,331,115 379,084,592 T otal 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 (16,067,896) (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 payroll 4
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.
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan 3 During Fiscal Year 2017-18, as a result of G overnmental Accounting St andardsBoard Statement ( GASB)No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions ( GASB75), CalPERS reported its proportionate share of activity related to postemployment benefits 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 GASB 75.
Additionally, CalPERS employees participate in various S tateof California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance wit hGASB Statement No. 68, Accounting and Financial Reporting for Pensions (G AS B 68). 1 Historical information is presented only for measurement periods for wh ichGASBNo. 68 is presented for periods after GASB68 implementation in 2013-14.
Additional years of information will be displayed as it becomes available. 4 Includes one year’s payroll gro wt husing 2.875 percent payroll gro wt hassumption for fiscal years ended June 30, 2019-20; 2.75 percent payroll gro wt h assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll grow th assumption for fiscal years ended June 30, 2014-17.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2022
120
Measurement period 2018-19 2019-20 2020-21
T otal pension liability
Service cost 6,716,477$ 6,677,059$ 7,125,026$
Interest 27,808,946 28,910,371 30,110,920
Changes of benefit terms - - - Changes of assumptions - - - Differences between expected and actual experience 3,041,661 1,935,553 3,483,416 Benefit payments, including refunds of employee contributions (20,370,103) (21,703,315) (23,304,571) Net change in total pension liability 17,196,981 15,819,668 17,414,791 T otal pension liability - beginning 392,721,450 409,918,431 425,738,099 T otal pension liability - ending (a) 409,918,431$ 425,738,099$ 443,152,890$ Pension fiduciary net position
Contributions - employer 11,760,090$ 13,635,532$ 15,257,575$ Contributions - employee 2,192,763 2,334,755 2,568,476 Net investment income 2
16,205,685 12,857,771 59,880,432
Benefit payments, including refunds of employee contributions (20,370,103) (21,703,315) (23,304,571) Net plan to plan resource movement - - 8,885 Administrative expense (177,851) (364,893) (265,313) Other miscellaneous expense 3
581 - -
Net change in plan fiduciary net position 9,611,165 6,759,850 54,145,484 Plan fiduciary net position - beginning 249,223,319 258,834,484 265,594,334 Plan fiduciary net position - ending (b) 258,834,484$ 265,594,334$ 319,739,818$ Plan net pension liability - ending (a) - (b) 151,083,947$ 160,143,765$ 123,413,072$ Plan fiduciary net position as a percentage
of the total pension liability 63.14% 62.38% 72.15%
Covered payroll 4
23,257,305$ 23,313,753$ $25,283,983
Plan net pension liability as a percentage of covered payroll 649.62% 686.91% 488.11% Notes to Schedule:
Last Ten Fiscal Years
Changes of Assumptions: None in 2019 - 2021. In 2018, demographic 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 rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
California Public Employees' Retirement System ("CalPERS") - Safety Plan Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of T wo Years Addit ional Service Credit (a.k.a. Go ldenHandshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
Year Ended June 30, 2022
121
2013-141
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 contribution2 (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 Fair Value of Assets
Inflation 2.500%
Salary increases Varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
M ortality 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.
7.00% net of pension plan investment and administrative expenses, including inflation.
The actuarial methods and assumptions used to set the actuarially determinedcontributions for Fiscal Year2020-21 were derived from the June 30, 2020 funding valuation report.
3 Includes one year’s payroll growth using 2.75 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. 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.
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Last Ten Fiscal Years
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.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions – Pensions (Continued)
Year Ended June 30, 2022
122
2018-19 2019-20 2020-21 2021-22
Ac
tuarially determined contribution 8,759,782$ 10,092,870$ 10,957,281$ 7,993,874 Contributions in relation to the actuarially determined contribution (8,759,782) (10,092,870) (10,957,281) (7,993,874) Contribution deficiency (excess) -$ -$ -$ - $ Covered payroll2, 3
35,965,617$ 36,664,416$ $38,572,142 38,708,686
Contributions as a percentage of covered payroll2
24.36% 27.53% 28.41% 20.65%
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions – Pensions (Continued)
Year Ended June 30, 2022
123
2013-141
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) Cont
ribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll2, 3
18,261,249 $ 18,014,087 $ 19,489,503 $ 21,045,353 $ 21,848,552 $ Contributions as a percentage of covered payroll2
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 Fair Value of Assets
Inflation 2.500%
Salary increases Varies by entry age and service
Payroll Growth 2.750%
Investment rate of return
Retirement age
M ortality
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 determined contributions for Fiscal Year 2019-20 were from the June 30, 2020 fundi
ng valuation report.
7.00% 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 mo rtality 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.
California Public Employees' Retirement System ("CalPERS") - Safety Plan Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions – Pensions (Continued)
Year Ended June 30, 2022
124
2018-19 2019-20 2020-21 2021-22
Actuarially determined contribution 11,760,090$ 13,635,532$ 15,257,575$ 11,321,603 Contributions in relation to the actuarially determined contribution (11,760,090) (13,635,532) (15,257,575) (11,321,603) Contribution deficiency (excess) -$ -$ -$ - Covered payroll2, 3
23,257,305$ 23,313,753$ 25,283,983$ 24,613,641
Contributions as a percentage of covered payroll2
50.57% 58.49% 60.34% 46.00%
California Public Employees' Retirement System ("CalPERS") - Safety Plan Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in NET OPEB Liabilities and Related Ratios Year Ended June 30, 2022
125
M easurement period 2014-151
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-employee 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 which 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 updated to CalPERS 2000-2019 ExperienceStudy, M ortality improvement scale was updated to ScaleMP-2021, and Tier IV participation at retirement. Assumption for waived retirees over age 65 was reduced from 60% to 40%. In 2021, the accounting discount rate reduced from 6.50 percent to 6.00 percent.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in NET OPEB Liabilities and Related Ratios (Continued) Year Ended June 30, 2022
126
M easurement period 2019-20 2020-21 2021-22
Total OPEB liability
Service cost 2,519,161$ 2,120,093$ 2,102,062$
Interest 8,597,512 7,480,807 7,699,100
Changes of benefit terms - - - Differences between expected and actual experience (19,714,893) - (15,164,245) Changes of assumptions (2,123,632) - 11,208,390 Benefit payments, including refunds of
employee contributions (6,059,415) (6,058,893) (6,390,150) Net change in total OPEB liability (16,781,267) 3,542,007 (544,843) Total OPEB liability - beginning 132,779,962 115,998,695 119,540,702 Total OPEB liability - ending (a) 115,998,695$ 119,540,702$ 118,995,859$ OPEB fiduciary net position
Contributions - employer 6,073,330$ 6,071,864$ 6,404,161$ Net investment income 2,964,438 14,566,767 (9,270,972) Benefit payments, including refunds of
employee contributions (6,059,415) (6,058,893) (6,390,150) Administrative expense (13,915) (29,346) (31,585) Net change in plan fiduciary net position 2,964,438 14,550,392 (9,288,546) Plan fiduciary net position - beginning 47,827,529 50,791,967 65,342,359 Plan fiduciary net position - ending (b) 50,791,967$ 65,342,359$ 56,053,813$ Plan net OPEB liability - ending (a) - (b) 65,206,728$ 54,198,343$ 62,942,046$ Plan fiduciary net position as a percentage
of the total OPEB liability 43.79% 54.66% 47.11%
Covered-employee payroll 64,408,288$ 63,028,918$ 64,592,679$ Plan net OPEB liability as a percentage of
covered-employee payroll 101.24% 85.99% 97.44%
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - OPEB
Year Ended June 30, 2022
127
2011-121
2012-13 2013-14 2014-15 2015-16
Actuarially determined contribution2
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) Cont
ribution deficiency (excess) 821,000 $ 990,000 $ (250,000)$ 80,000 $ (2,022,000)$ Covered employee payroll N/A 46,399,000 $ N/A 47,105,000 $ 52,215,000 $ Contributions as a percentage of
covered-employee payroll2
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 18-year fixed period for 2021/22 As
set valuation method
Inflation 2.50%
M edical Trend
Salary increases 2.75%
Investment rate of return 6.00%
Retirement age
M ortality
Other Postemployment Benefits ("OPEB")
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 D etermined Contributions for fiscal years ended 6/30/16 and 6/30/17, the June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions 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, 6/30/21 and 6/30/22.
Actuarially determined contribution rates are calculated as of June 30, 2021, one year p rior 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; M edicare:6.30% for 2021, decreasing t o an ultimate rate of 4.00% in 2076.
M ortality rates were based on CalPERS 2000-2019 Healthy Annuitant Mo rtality Table for M ale or Females, as
appropriate, with adjustments for mortality improvements based on MP-2021.
Based on CalPERS 2000-2019 Experience Study.
Investment gains and losses spread over 5-year rolling period.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions – OPEB (Continued)
Year Ended June 30, 2022
128
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Actuarially determined contribution2
9,422,000$ 8,885,000 $ 9,049,000 $ 9,219,000 $ 7,144,000 $ 7,268,000 $ Contributions in relation to the
actuarially determined contribution (11,037,000) (10,940,000) (11,176,363) (6,073,330) (6,071,864) (6,404,161) Contribution deficiency (excess) (1,615,000)$ (2,055,000)$ (2,127,363)$ 3,145,670 $ 1,072,136 $ 863,839 $ Covered employee payroll 56,415,000$ 57,411,000 $ 58,966,981 $ 64,408,288 $ 63,028,918 $ 64,592,679 $ Contributions as a percentage of
covered-employee payroll2
19.56% 19.06% 18.95% 9.43% 9.63% 9.91%
Other Postemployment Benefits ("OPEB")
Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
Year Ended June 30, 2022
129
Actual Variance with
Original Final Am ounts Final Budget
REVENUES :
Taxes 92,574,192$ 105,507,487$ 132,171,974$ 26,664,487$ Licenses and permits 5,060,500 5,340,500 5,606,338 265,838 Fines and forfeitures 2,912,000 2,912,000 3,580,843 668,843 Intergovernmental 10,242,259 11,353,049 11,420,723 67,674 Charges for services 9,533,615 11,129,198 12,433,475 1,304,277 Investment earnings 1,913,615 1,913,615 (3,110,896) (5,024,511) M iscellaneous 1,163,345 1,163,345 453,723 (709,622) Total revenues 123,399,526 139,319,194 162,556,180 23,236,986 EXPENDITURES :
Current:
General government 17,565,110 16,044,971 17,715,221 (1,670,250) Parks, recreation, and community services 9,759,843 10,721,219 9,866,398 854,821 Police 47,878,972 48,510,773 44,984,235 3,526,538 Fire 27,841,478 28,563,100 27,632,597 930,503 Community development 9,510,227 13,271,712 9,425,787 3,845,925 Public works 14,588,671 16,718,839 14,018,558 2,700,281 Capital outlay 403,953 492,509 398,256 94,253 Total expenditures 127,548,254 134,323,122 124,041,052 10,282,070 REVENUE OVER (UNDER) EXPENDITURES (4,148,728) 4,996,072 38,515,128 33,519,056 OTHER FINANCING S OURCES (US ES ):
Transfers in 3,958,668 3,958,668 3,958,668 - Transfers out (2,742,000) (3,325,304) (8,325,304) (5,000,000) Proceeds from sale of property - - 131 131 Total other financing sources (uses) 1,216,668 633,364 (4,366,505) (4,999,869) CHANGE IN FUND BALANCE (2,932,060) 5,629,436 34,148,623 28,519,187 FUND BALANCE:
Beginning of year 108,808,031 108,808,031 108,808,031 - End of year 105,875,971$ 114,437,467$ 142,956,654$ 28,519,187$ Budgeted Amounts
General Fund
City of Culver City
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
Year Ended June 30, 2022
130
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Investment earnings -$ -$ 401,762$ 401,762$ M iscellaneous - - 31,500 31,500 Total revenues - - 433,262 433,262 EXPENDITURES :
Current:
Community development - 12,994,602 1,652,679 11,341,923 Capital outlay 7,300,000 7,300,000 - 7,300,000 Total expenditures 7,300,000 20,294,602 1,652,679 18,641,923 REVENUE OVER (UNDER) EXPENDITURES (7,300,000) (20,294,602) (1,219,417) 19,075,185 OTHER FINANCING S OURCES (US ES ):
Transfers in - 5,996,000 - (5,996,000) Transfers out - (978,668) (978,668) - Total other financing sources (uses) - 5,017,332 (978,668) (5,996,000) CHANGE IN FUND BALANCE (7,300,000) (15,277,270) (2,198,085) 13,079,185 FUND BALANCE:
Beginning of year 39,303,362 39,303,362 39,303,362 - End of year 32,003,362$ 24,026,092$ 37,105,277$ 13,079,185$ Budgeted Amounts
Culver City Housing Authority Special Revenue Fund
City of Culver City
Notes to the Required Supplementary Information (Unaudited) Budgetary Comparison Schedule
Year Ended June 30, 2022
131
Note 1 - Budgets and Budgetary Data
Total appropriations foreach f und may only be increased or decreased by the 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, theChief FinancialOfficer is authorizedto 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 ha s the authorityto adjust the amounts appropriatedbetween the departments and activitiesof a fund, objects within each departmental activity and between accounts within the objects, provided; however, hat 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 appropriationslap se 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 a re adopted on a basis consistent with generally accepted accounting principles in the United States. Annual appropriated budgets are legally adopted for the general, special revenue, debt service, capital projects, and proprietary fund types except for the AQMD Special Revenue Fund.
The adopted budget of the City consists of a resolution specifying thetotal appropriation foreach departmental activity, such as Police Administration, Street Maintenance, and other activities.
Non-Major Funds /
Other Financial Information
City of Culver City, California
132
SUPPLEMENTARY INFORMATION
This page intentionally left blank.
City of Culver City
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
133
Special Capital
Revenue Projects
Funds Funds Total
A SSE TS
Cash and investments 47,248,305$ 3,892,909$ 51,141,214$ Accounts receivables, net 92,757 2 92,759 Interest receivables 128,893 1,076,583 1,205,476 Notes receivables, net 23,820 3,395,000 3,418,820 Due from other funds 15,000 - 15,000 Due from other governments 1,028,683 15,690 1,044,373 Total assets 48,537,458$ 8,380,184$ 56,917,642$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 565,847$ 122,171$ 688,018$ Salaries and benefits payable 31,640 - 31,640 Due to other funds 1,778,760 265,152 2,043,912 Deposits payable 123,875 113,245 237,120 Retention payable 18,783 17,355 36,138 Due to other governments 38,820 - 38,820 Total liabilities 2,557,725 517,923 3,075,648 Deferred inflows of resources:
Unavailable grant revenues 501,357 15,690 517,047 Total deferred inflows of resources 501,357 15,690 517,047 Fund Balances:
Restricted 18,655,245 7,862,260 26,517,505 Committed 28,107,313 - 28,107,313 Unassigned (deficit) (1,284,182) (15,689) (1,299,871) Total fund balances 45,478,376 7,846,571 53,324,947 Total liabilities, deferred inflows of resources
and fund balances 48,537,458$ 8,380,184$ 56,917,642$ City of Culver City
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
June 30, 2022
134
Special Capital
Revenue Projects
Funds Funds Total
REVENUES :
Licenses and permits 1,495,732$ -$ 1,495,732$ Intergovernmental 11,256,991 321,623 11,578,614 Charges for services 8,030,965 - 8,030,965 Investment earnings (611,708) 48,358 (563,350) M iscellaneous 12,947 - 12,947 Total revenues 20,184,927 369,981 20,554,908 EXPENDITURES :
Current:
General government 506,416 - 506,416 Parks, recreation and community services 94,249 - 94,249 Police 627,907 - 627,907 Fire 411,446 - 411,446 Community development 3,797,646 - 3,797,646 Public works 427,051 - 427,051 Transportation 373,693 - 373,693 Capital outlay 4,462,527 388,154 4,850,681 Total expenditures 10,700,935 388,154 11,089,089
REVENUES OVER
EXPENDITURES 9,483,992 (18,173) 9,465,819 OTHER FINANCING S OURCES (US ES ):
Transfers in 303,090 - 303,090 Transfers out (4,413,496) - (4,413,496) Proceeds from sale of property 27,741 27,741 Total other financing sources (uses) (4,082,665) - (4,082,665) CHANGES IN FUND BALANCES 5,401,327 (18,173) 5,383,154 FUND BALANCES:
Beginning of year 40,077,049 7,864,744 47,941,793 End of year 45,478,376$ 7,846,571$ 53,324,947$
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 tax esfor 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 of Proposition A tax funds are used for rail developm ent (35%) and discretionary purposes (40%).A lmo s tthe entire discretionary portion is used to fund bus service provided by Metro and 16 other m unicipal 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 trans it and rail system ; (5%) to ex pand rail and bus security; (10%) for co mmu terrail,construction of trans itcenters, park and ride lots and freeway bus stops; and (25%) for transit-related im provem entsto freeways and state highways.
Gas Tax Fund - To account for state gasoline tax es 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 res ultingfrom the City's federal, state and local operating grants, and the qualified ex penditures of these restricted funds.
Section 8 Housing Fund - To account for assistance provided by the federal governm ent dedicated to sponsoring subsidized housing for low-incom efamiliesand individuals. The Housing Divis ion inthe Com m unity Developm entDepartment is responsible for m anagingand adminis teringCulver City's Section 8 Housing Choice V oucher Program (HCVP)to provide retail subsidies for qualified low-incom e households.
Art in Public Places Fund - To account for the "Art in Public Places" program .The revenues for this fund co mefrom developer in- lieu fees.
CDBG Fund - To account for Com m unity Developm entBlock Gra n t(CDBG)funds, and the qualified ex penditures of these restricted funds for adm inistrative ex penditures such as personnel costs.
Special Assessment Fund - To account for benefit assessm ent dis trict funds received from hom eowners for special landscaping services of certain properties within the City.
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 Novem ber2008 and is used to fund new transportation projects and program s.The Transportation and Public Works departments utilize the m ajority of this funding.
Community Development Fund - To account for funds received from new developm ent impact fees collected on non-residential construction in ex cess of 5,000 square feet. These fees may only be used to fund street im provem ents,traffic controls, and traffic management projects.
136
Measure W Fund - Accounts for the use of the funds received by the City purusnat to the voters approved Measure W, the Safe Clean Water Program, which is a parcel tax of 2.5 cents per square foot of impermeable areas within the LA County and the Los Angeles Region Safe, Clean Water (SCW) Program Ordinance.
AQMD Fund - To account for funds received from the Air Quality Management Dis trict for air quality planning, m onitoring, and stationary source and facility perm itting. Funds are also used to offset costs for alternative fuel vehicle and equipm ent purchases.
Board of State and Community Corrections Fund - To account for funds received from the Y outhReinvestment Gra n tProgram.
The City acts as a pass-through agency to fund the developm ent of a youth diversion program which provides Culver City youth facing ex pulsion and/or arrest with an individualized care plan to include 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 approved by Los Angeles County voters in Novem ber 2016 and is used to fund new transportation projects and program s. The Transportation and Public Works departm ents utilize the m ajority of this funding.
Building Surcharge Fund - To account for funds received from a four percent (4%) surcharge on certain developm ent related p ermit fees. The surcharge is used by City to fund digital imaging and storage plans and docum ents and technology im provem ents and maintenance to enhance customer service.
NONMAJOR
SPECIAL REVENUE FUNDS
Park Facilities Fund - To account for funds received from developm ent impact fees assessed on subdivision/residential developm ent. These fees m ay be used for the im provem ent and ex pansion 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 apprehension of criminals through Drug Abuse Resistance Education (D.A.R.E.), and other law enforcem ent program s.
Parking Authority Fund - To account for the operations of the Culver City Parking Authority, which currently includes the Cardiff Parking Structure. These funds m ay be used for parking related operations and infrastructure im provem ents.
Safe/Clean Water Protection Fund - To account for all activities associated with watershed management program plan. (Previously referred to as ‘storm water’ and ‘Urban Runoff Mitigation).
City of Culver City
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
137
Proposition Proposition
A Local C Local Operating
Gas Tax Return Return M easure R Grants
A SSE TS
Cash and investments 4,157,575$ 1,257,625$ 1,347,798$ 727,677$ -$ Accounts receivables, net - - - - - Interest receivables 11,353 3,849 4,504 2,025 48 Notes receivables, net - - - - - Due from other funds - - - - - Due from other governments 148,250 - - - 717,183 Total assets 4,317,178$ 1,261,474$ 1,352,302$ 729,702$ 717,231$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 101,683 - - 72,891 80,695 Salaries and benefits payable - - - - 4,307 Due to other funds - - - - 1,436,064 Deposits payable - - - - - Retention payable - - - - - Total liabilities 101,683 - - 72,891 1,521,066 Deferred inflows of resources:
Unavailable revenues - - - - 416,916 Total deferred inflows of resources - - - - 416,916 Fund Balances:
Restricted 4,215,495 1,261,474 1,352,302 656,811 - Committed - - - - - Unassigned (deficit) - - - - (1,220,751) Total fund balances 4,215,495 1,261,474 1,352,302 656,811 (1,220,751) Total liabilities, deferred inflows
of resources and fund balances 4,317,178$ 1,261,474$ 1,352,302$ 729,702$ 717,231$ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
138
Section 8 Art in Community Special
Housing Public Places Development CDBG Assessment
A SSE TS
Cash and investments 1,458,308$ 3,879,657$ 994,548$ 17,639$ 630,923$ Accounts receivables, net - 47,205 - - - Interest receivables - 10,491 2,797 - 1,766 N
otes receivables, net - - - 23,820 - Due from other funds - - - 15,000 - Due from other governments - - - 13,588 - Total assets 1,458,308$ 3,937,353$ 997,345$ 70,047$ 632,689$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 137,123 15,370 14,944 - 3,827 Salaries and benefits payable 8,397 2,154 - - - D
ue to other funds 258,545 - - 31,227 - Deposits payable 34,247 - - - 22,000 Retention payable - - - - - Due to other governments - - - 38,820 - Total liabilities 438,312 17,524 14,944 70,047 25,827 Deferred inflows of resources:
Unavailable revenues - - - - 526 Total deferred inflows of resources - - - - 526 Fund Balances:
Restricted 1,019,996 3,919,829 982,401 - 606,336 Committed - - - - - Unassigned (deficit) - - - - - Total fund balances 1,019,996 3,919,829 982,401 - 606,336 Total liabilities, deferred inflows
of resources and fund balances 1,458,308$ 3,937,353$ 997,345$ 70,047$ 632,689$ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
139
Park Asset Parking Safe/Clean Building
Facilities Seizure Authority Water Protection M easure W Surcharge
A SSE TS
Cash and investments 1,162,574$ 813,002$ 15,021,305$ 8,957,208$ 4,122,410$ 689,250$ Accounts receivables, net 5,292 7,539 15,221 - - 3,322 Interest receivables 3,284 2,337 42,019 27,096 9,978 1,882 Notes receivables, net - - - - - - Due from other funds - - - - - Due from other governments - 13,020 - 79,153 - - Total assets 1,171,150$ 835,898$ 15,078,545$ 9,063,457$ 4,132,388$ 694,454$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 572 1,779 29,260 70,189 - 705 Salaries and benefits payable - - - - - 8,451 Due to other funds - - - - - - Deposits payable - - 67,628 - - - Retention payable - - - - - - Due to other governments - - - - - - Total liabilities 572 1,779 96,888 70,189 - 9,156 Deferred inflows of resources:
Unavailable revenues - 13,020 - - - - Total deferred inflows of resources - 13,020 - - - - Fund Balances:
Restricted 1,170,578 821,099 - - - 685,298 Committed - - 14,981,657 8,993,268 4,132,388 - Unassigned (deficit) - - - - - - Total fund balances 1,170,578 821,099 14,981,657 8,993,268 4,132,388 685,298 Total liabilities, deferred inflows
of resources and fund balances 1,171,150$ 835,898$ 15,078,545$ 9,063,457$ 4,132,388$ 694,454$ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
140
Board of State
and Community
Par
atransit M easure M AQMD Corrections Total
A SSE TS
Cash and investments 4,562$ 1,708,002$ 297,681$ 561$ 47,248,305$ Accounts receivables, net 1,087 - 13,091 - 92,757 Interest receivables - 4,628 787 49 128,893 Notes receivables, net - - - - 23,820 Due from other funds - - - - 15,000 Due from other governments 49,767 - - 7,722 1,028,683 Total assets 55,416$ 1,712,630$ 311,559$ 8,332$ 48,537,458$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
Li
abilities:
Accounts payable 288 25,958 2,730 7,833 565,847$ Salaries and benefits payable 8,331 - - - 31,640 Due to other funds 52,924 - - - 1,778,760 Deposits payable - - - - 123,875 Retention payable - 18,783 - - 18,783 Due to other governments - - - - 38,820 Total liabilities 61,543 44,741 2,730 7,833 2,557,725 Deferred inflows of resources:
Unavailable revenues 50,081 - 13,092 7,722 501,357 Total deferred inflows of resources 50,081 - 13,092 7,722 501,357 Fund Balances:
Restricted - 1,667,889 295,737 - 18,655,245 Committed - - - - 28,107,313 Unassigned (deficit) (56,208) - - (7,223) (1,284,182) Total fund balances (56,208) 1,667,889 295,737 (7,223) 45,478,376 Total liabilities, deferred inflows
of resources and fund balances 55,416$ 1,712,630$ 311,559$ 8,332$ 48,537,458$ (Concluded)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds
Year Ended June 30, 2022
141
Proposition Proposition
A Local C Local Operating
Gas Tax Return Return M easure R Grants
REVENUES :
Licenses and permits -$ -$ -$ -$ -$ Intergovernmental 1,675,074 1,002,671 831,695 623,671 2,039,241 Charges for services - - - - - Investment earnings (53,640) (18,697) (22,122) (9,519) 1,038 M iscellaneous - - - - - Total revenues 1,621,434 983,974 809,573 614,152 2,040,279 EXPENDITURES :
Current:
General government - - - - - Parks, recreation, and community services - - - - - Police - - - - 287,828 Fire - - - - 411,446 Community development - - - - 243,431 Public works - - - - 400,810 Transportation - - - - 2,730 Capital outlay 255,126 - - 117,240 - Total expenditures 255,126 - - 117,240 1,346,245
REVENUES OVER (UNDER)
EXPENDITURES 1,366,308 983,974 809,573 496,912 694,034 OTHER FINANCING S OURCES (US ES ):
Transfers in - - - - 2,730 Transfers out (400,000) (801,822) (682,265) (249,409) (1,080,000) Proceeds from sale of property - - - - - Total other financing sources (uses) (400,000) (801,822) (682,265) (249,409) (1,077,270) CHANGES IN FUND BALANCES 966,308 182,152 127,308 247,503 (383,236) FUND BALANCES (DEFICIT):
Beginning of year 3,249,187 1,079,322 1,224,994 409,308 (837,515) End of year 4,215,495$ 1,261,474$ 1,352,302$ 656,811$ (1,220,751)$ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2022
142
Section 8 Art in Community Special
Housing Public Places Development CDBG Assessment
REVENUES :
Licenses and permits -$ 890,418$ 103,559$ -$ -$ Intergovernmental 1,761,713 35,675 - 40,298 - Charges for services - - - - 86,025 Investment earnings 489 (52,544) (14,062) - (8,839) M iscellaneous - - - - - Total revenues 1,762,202 873,549 89,497 40,298 77,186 EXPENDITURES :
Current:
General government - 380,224 - - - Parks, recreation, and community services - - - 40,298 - Police - - - - - Fire - - - - - Community development 1,767,532 - - - 23,269 Public works - - - - - Transportation - - - - - Capital outlay - 1,500 56,100 - - Total expenditures 1,767,532 381,724 56,100 40,298 23,269
REVENUES OVER (UNDER)
EXPENDITURES (5,330) 491,825 33,397 - 53,917 OTHER FINANCING S OURCES (US ES ):
Transfers in - - - - - Transfers out - - - - - Proceeds from sale of property - - - - - Total other financing sources (uses) - - - - - CHANGES IN FUND BALANCES (5,330) 491,825 33,397 - 53,917 FUND BALANCES (DEFICIT):
Beginning of year 1,025,326 3,428,004 949,004 - 552,419
End of year 1,019,996$ 3,919,829$ 982,401$ -$ 606,336$ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2022
143
Park Asset Parking Safe/Clean Building
Facilities Seizure Authority Water Protection M easure W Surcharge REVENUES :
Licenses and permits -$ -$ 187,527$ -$ -$ 314,228$ Intergovernmental - 61,727 - 1,852,000 515,457 - Charges for services 161,082 - 3,776,821 2,094,537 1,912,500 - Investment earnings (17,029) (12,096) (192,884) (126,784) (46,681) (10,448) M iscellaneous - - 12,947 - - - Total revenues 144,053 49,631 3,784,411 3,819,753 2,381,276 303,780 EXPENDITURES :
Current:
General government - - 126,192 - - - Parks, recreation, and community services 53,951 - - - - - Police - 139,793 - - - - Fire - - - - - - Community development - - 1,357,744 13,147 1 392,522 Public works - - - - - 26,241 Transportation - - - - - - Capital outlay 55,687 6,029 479,795 2,237,548 33,891 20,575 Total expenditures 109,638 145,822 1,963,731 2,250,695 33,892 439,338
REVENUES OVER (UNDER)
EXPENDITURES 34,415 (96,191) 1,820,680 1,569,058 2,347,384 (135,558) OTHER FINANCING S OURCES (US ES ):
Transfers in - - - - - - Transfers out - - (1,200,000) - - - Proceeds from sale of property - 21,961 - - - - Total other financing sources (uses) - 21,961 (1,200,000) - - - CHANGES IN FUND BALANCES 34,415 (74,230) 620,680 1,569,058 2,347,384 (135,558) F
UND BALANCES (DEFICIT):
Beginning of year 1,136,163 895,329 14,360,977 7,424,210 $1,785,004 820,856 End of year 1,170,578$ 821,099$ 14,981,657$ 8,993,268$ 4,132,388$ 685,298$ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2022
144
Board of State
Community
Paratransit M easure M AQMD Corrections Tot al
REVENUES :
Licenses and permits -$ -$ -$ -$ 1,495,732$ Intergovernmental 73,964 705,755 38,050 - 11,256,991 Charges for services - - - - 8,030,965 Investment earnings - (23,445) (3,884) (561) (611,708) M iscellaneous - - - - 12,947 Total revenues 73,964 682,310 34,166 (561) 20,184,927 EXPENDITURES :
Current:
General government - - - - 506,416 Parks, recreation, and community services - - - - 94,249 Police - - - 200,286 627,907 Fire - - - - 411,446 Community development - - - - 3,797,646 Public works - - - - 427,051 Transportation 370,963 - - - 373,693 Capital outlay - 1,184,102 14,934 - 4,462,527 Total expenditures 370,963 1,184,102 14,934 200,286 10,700,935
REVENUES OVER (UNDER)
EXPENDITURES (296,999) (501,792) 19,232 (200,847) 9,483,992 OTHER FINANCING S OURCES (US ES ):
Transfers in 300,360 - - - 303,090 Transfers out - - - - (4,413,496) Proceeds from sale of property - - 5,780 - 27,741 Total other financing sources (uses) 300,360 - 5,780 - (4,082,665) CHANGES IN FUND BALANCES 3,361 (501,792) 25,012 (200,847) 5,401,327 FUND BALANCES (DEFICIT):
Beginning of year (59,569) 2,169,681 270,725 193,624 40,077,049
End of year (56,208)$ 1,667,889$ 295,737$ (7,223)$ 45,478,376$ (Concluded)
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, 2022
145
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 240,512$ 2,049,642$ 1,675,074$ (374,568)$ Investment earnings (35,596) - (53,640) (53,640) Total revenues 204,916 2,049,642 1,621,434 (428,208) EXPENDITURES :
Capital outlay 3,775,498 4,465,829 255,126 4,210,703 Total expenditures 3,775,498 4,465,829 255,126 4,210,703 REVENUES OVER (UNDER) EXPENDITURES (3,570,581) (2,416,187) 1,366,308 3,782,495 OTHER FINANCING USES:
Transfers out - (400,000) (400,000) - Total other financing uses - (400,000) (400,000) - CHANGE IN FUND BALANCE (3,570,581) (2,816,187) 966,308 3,782,495 FUND BALANCE:
Beginning of year 3,249,187 3,249,187 3,249,187 - End of year (321,394)$ 433,000$ 4,215,495$ 3,782,495$ Budgeted Amounts
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, 2022
146
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 801,822$ 801,822$ 1,002,671$ 200,849$ Investment earnings 11,000 11,000 (18,697) (29,697) Total revenues 812,822 812,822 983,974 171,152 OTHER FINANCING USES:
Transfers out (801,822) (801,822) (801,822) - Total other financing uses (801,822) (801,822) (801,822) - CHANGE IN FUND BALANCE 11,000 11,000 182,152 171,152 FUND BALANCE:
Beginning of year 1,079,322 1,079,322 1,079,322 - End of year 1,090,322$ 1,090,322$ 1,261,474$ 171,152$ 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, 2022
147
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 442,361$ 442,361$ 831,695$ 389,334$ Investment earnings 12,000 12,000 (22,122) (34,122) Total revenues 454,361 454,361 809,573 355,212 OTHER FINANCING USES:
Transfers out (530,326) (530,326) (682,265) (151,939) Total other financing uses (530,326) (530,326) (682,265) (151,939) CHANGE IN FUND BALANCE (75,965) (75,965) 127,308 203,273 FUND BALANCE:
Beginning of year 1,224,994 1,224,994 1,224,994 - End of year 1,149,029$ 1,149,029$ 1,352,302$ 203,273$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Special Revenue Fund – Measure R
Year Ended June 30, 2022
148
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Intergovernmental 1,706,102$ 2,439,159$ 623,671$ (1,815,488)$ Investment earnings (9,127) 2,000 (9,519) (11,519) Total revenues 1,696,975 2,441,159 614,152 (1,827,007) EXPENDITURES :
Capital outlay 321,918 572,918 117,240 455,678 Total expenditures 321,918 572,918 117,240 455,678 REVENUES OVER (UNDER) EXPENDITURES 1,375,057 1,868,241 496,912 (1,371,329) OTHER FINANCING USES:
Transfers out 720,570 720,570 (249,409) (969,979) Total other financing uses 720,570 720,570 (249,409) (969,979) CHANGE IN FUND BALANCE 2,095,627 2,588,811 247,503 (2,341,308) FUND BALANCE:
Beginning of year 409,308 409,308 409,308 - End of year 2,504,935$ 2,998,119$ 656,811$ (2,341,308)$ 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, 2022
149
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 1,306,293$ 1,710,587$ 2,039,241$ 328,654$ Investment earnings 3,000 3,000$ 1,038 (1,962) Total revenues 1,309,293 1,713,587 2,040,279 326,692 EXPENDITURES :
Current:
Police 115,957 294,625 287,828 6,797 Fire 8,166 79,572 411,446 (331,874) Community development - 239,789 243,431 (3,642) Public works 106,000 551,301 400,810 150,491 Transportation - 170 2,730 (2,560) Total expenditures 230,123 1,165,456 1,346,245 (180,789) REVENUES (UNDER) EXPENDITURES 1,079,170 548,131 694,034 145,903 OTHER FINANCING S OURCES (US ES ):
Transfers in - - 2,730 2,730 Transfers out (1,080,000) (1,080,000) (1,080,000) - Total other financing sources (uses) (1,080,000) (1,080,000) (1,077,270) 2,730 CHANGE IN FUND BALANCE (830) (531,869) (383,236) 148,633 FUND BALANCE (DEFICIT):
Beginning of year (837,515) (837,515) (837,515) - End of year (838,345)$ (1,369,384)$ (1,220,751)$ 148,633$ Budgeted Amounts
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, 2022
150
Actual Variance with
Original Final Amounts Final Budget
REV
ENUES :
Intergovernmental 1,336,400$ 1,336,400$ 1,761,713$ 425,313$ Investment earnings 7,000 7,000 489 (6,511) Total revenues 1,343,400 1,343,400 1,762,202 418,802 EXPENDITURES :
Current:
Community development 1,864,671 1,890,365 1,767,532 122,833 Total expenditures 1,864,671 1,890,365 1,767,532 122,833 CHANGE IN FUND BALANCE (521,271) (546,965) (5,330) 541,635 FUND BALANCE:
Beginning of year 1,025,326 1,025,326 1,025,326 - End of year 504,055$ 478,361$ 1,019,996$ 541,635$ Budgeted Amounts
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, 2022
151
Actual Variance with
Original Final Amounts Final Budget
REV
ENUES :
Intergovernmental -$ 45,075$ 35,675$ (9,400)$ Licenses and permits 350,000 350,000 890,418 540,418 Investment earnings 29,000 29,000 (52,544) (81,544) Total revenues 379,000 424,075 873,549 449,474 EXPENDITURES :
Current:
General government 483,491 1,819,591 380,224 1,439,367 Capital outlay 1,500 1,500 1,500 - Total expenditures 484,991 1,821,091 381,724 1,439,367 CHANGE IN FUND BALANCE (105,991) (1,397,016) 491,825 1,888,841 FUND BALANCE:
Beginning of year 3,428,004 3,428,004 3,428,004 - End of year 3,322,013$ 2,030,988$ 3,919,829$ 1,888,841$ 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, 2022
152
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Licenses and permits (67,989)$ 50,000$ 103,559$ 53,559$ Charges for services (584) - - - Investment earnings (19,979) 11,000 (14,062) (25,062) Total revenues (88,552) 61,000 89,497 28,497 EXPENDITURES :
Capital outlay 714,589 884,589 56,100 828,489 Total expenditures 714,589 884,589 56,100 828,489 CHANGE IN FUND BALANCE (803,141) (823,589) 33,397 856,986 FUND BALANCE:
Beginning of year 949,004 949,004 949,004 - End of year 145,863$ 125,415$ 982,401$ 856,986$ Budgeted Amounts
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, 2022
153
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 44,000$ 44,000$ 40,298$ (3,702)$ Total revenues 44,000 44,000 40,298 (3,702) EXPENDITURES :
Current:
Parks, recreation, and community services 44,000 44,000 40,298 3,702 Total expenditures 44,000 44,000 40,298 3,702
CHANGE IN FUND BALANCE - - - - FUND BALANCE:
Beginning of year - - - - End of year -$ -$ -$ -$ Budgeted Amounts
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, 2022
154
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Charges for services 78,357$ 78,357$ 86,025$ 7,668$ Investment earnings 4,000 4,000 (8,839) (12,839) Total revenues 82,357 82,357 77,186 (5,171) EXPENDITURES :
Current:
Community development 112,464 118,283 23,269 95,014 Total expenditures 112,464 118,283 23,269 95,014 CHANGE IN FUND BALANCE (30,107) (35,926) 53,917 89,843 FUND BALANCE:
Beginning of year 552,419 552,419 552,419 - End of year 522,312$ 516,493$ 606,336$ 89,843$ Budgeted Amounts
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, 2022
155
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Charges for services (384,002)$ 50,000$ 161,082$ 111,082$ Investment earnings (20,052) 5,000 (17,029) (22,029) Total revenues (404,054) 55,000 144,053 89,053 EXPENDITURES :
Current:
Parks, recreation, and community services 206,659 231,659 53,951 177,708 Capital outlay 474,075 654,702 55,687 599,015 Total expenditures 680,734 886,361 109,638 776,723 CHANGE IN FUND BALANCE (1,084,788) (831,361) 34,415 865,776 FUND BALANCE:
Beginning of year 1,136,163 1,136,163 1,136,163 - End of year 51,375$ 304,802$ 1,170,578$ 865,776$ 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, 2022
156
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Intergovernmental -$ 67,200$ 61,727$ (5,473)$ Investment earnings 10,000 10,000 (12,096) (22,096) M iscellaneous - - - - Total revenues 10,000 77,200 49,631 (27,569) EXPENDITURES :
Current:
Police - 284,182 139,793 144,389 Capital outlay - 7,700 6,029 1,671 Total expenditures - 291,882 145,822 146,060 REVENUES (UNDER) EXPENDITURES 10,000 (214,682) (96,191) 118,491 OTHER FINANCING SOURCES:
Proceeds from sale of property - - 21,961 21,961 Total
other financing sources - - 21,961 21,961 CHANGE IN FUND BALANCE 10,000 (214,682) (74,230) 140,452 FUND BALANCE:
Beginning of year 895,329 895,329 895,329 - End of year 905,329$ 680,647$ 821,099$ 140,452$ Budgeted Amounts
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, 2022
157
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Licenses and permits 150,000$ 150,000$ 187,527$ 37,527$ Charges for services 4,104,579 4,115,315 3,776,821 (338,494) Investment earnings 108,000 108,000 (192,884) (300,884) M iscellaneous 75,470 75,470 12,947 (62,523) Total revenues 4,438,049 4,448,785 3,784,411 (664,374) EXPENDITURES :
Current:
General government 150,000 150,000 126,192 23,808 Community development 1,844,660 2,075,178 1,357,744 717,434 Capital outlay 709,000 5,866,084 479,795 5,386,289 Total expenditures 2,703,660 8,091,261 1,963,731 6,127,530 REVENUES OVER (UNDER) EXPENDITURES 1,734,389 (3,642,476) 1,820,680 5,463,156 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 534,389 (4,842,476) 620,680 5,463,156 FUND BALANCE:
Beginning of year 14,360,977 14,360,977 14,360,977 - End of year 14,895,366$ 9,518,501$ 14,981,657$ 5,463,156$ 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, 2022
158
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental -$ -$ 1,852,000$ 1,852,000$ Charges for services 2,050,000 2,050,000 2,094,537 44,537 Investment earnings 83,000 83,000 (126,784) (209,784) Total revenues 2,133,000 2,133,000 3,819,753 1,686,753 EXPENDITURES :
Current:
Community development - 460 13,148 (12,688) Capital outlay 3,208,500 15,710,130 2,237,548 13,472,582 Total expenditures 3,208,500 15,710,590 2,250,696 13,459,894 CHANGE IN FUND BALANCE (1,075,500) (13,577,590) 1,569,058 15,146,648 FUND BALANCE:
Beginning of year, as restated 7,424,210 7,424,210 7,424,210 - End of year 6,348,710$ (6,153,380)$ 8,993,268$ 15,146,648$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Special Revenue Fund – Measure W
Year Ended June 30, 2022
159
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Intergovernmental -$ -$ 515,457$ 515,457$ Charges for services - - 1,912,500 1,912,500 Investment earnings - - (46,681) (46,681) Total revenues - - 2,381,276 2,381,276 EXPENDITURES :
Current:
Community development - - 1 (1) Capital outlay - - 33,891 (33,891) Total expenditures - - 33,892 (33,892) CHANGE IN FUND BALANCE - - 2,347,384 2,347,384 F
UND BALANCE:
Beginning of year - - $1,785,003 1,785,003 End of year -$ -$ 4,132,387$ 4,132,387$ 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, 2022
160
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Licenses and permits 300,000$ 300,000$ 314,228$ 14,228$ Investment earnings 11,000 11,000 (10,448) (21,448) Total revenues 311,000 311,000 303,780 (7,220) EXPENDITURES :
Current:
Community development 429,319 981,150 392,522 588,628 Public works 35,332 35,332 26,241 9,091 Capital outlay 7,000 80,144 20,575 59,569 Total expenditures 471,651 1,096,626 439,338 657,288 CHANGE IN FUND BALANCE (160,651) (785,626) (135,558) 650,068 FUND BALANCE:
Beginning of year 820,856 820,856 820,856 - End of year 660,205$ 35,230$ 685,298$ 650,068$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Special Revenue Fund – Paratransit
Year Ended June 30, 2022
161
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Intergovernmental 79,715$ 79,715$ 73,964$ (5,751)$ Total revenues 79,715 79,715 73,964 (5,751) EXPENDITURES :
Current:
Transportation 278,811 289,606 370,963 (81,357) Total expenditures 278,811 289,606 370,963 (81,357) REVENUES OVER (UNDER) EXPENDITURES (199,096) (209,891) (296,999) (87,108) OTHER FINANCING SOURCES:
Transfers in 197,781 197,781 300,360 102,579 Total
other financing sources 197,781 197,781 300,360 102,579 CHANGE IN FUND BALANCE (1,315) (12,110) 3,361 15,471 FUND BALANCE (DEFICIT):
Beginning of year (59,569) (59,569) (59,569) - End of year (60,884)$ (71,679)$ (56,208)$ 15,471$ Budgeted Amounts
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, 2022
162
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 565,327$ 565,327$ 705,755$ 140,428$ Investment earnings 8,000 8,000 (23,445) (31,445) Total revenues 573,327 573,327 682,310 108,983 EXPENDITURES :
Capital outlay 600,000 2,218,723 1,184,102 1,034,621 Total expenditures 600,000 2,218,723 1,184,102 1,034,621 CHANGE IN FUND BALANCE (26,673) (1,645,396) (501,792) 1,143,604 FUND BALANCE:
Beginning of year 2,169,681 2,169,681 2,169,681 - End of year 2,143,008$ 524,285$ 1,667,889$ 1,143,604$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Special Revenue Fund – AQMD
Year Ended June 30, 2022
163
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Intergovernmental 10,000$ 10,000$ 38,050$ 28,050$ Investment earnings - - (3,884) (3,884) Total revenues 10,000 10,000 34,166 24,166 EXPENDITURES :
Current:
Transportation 35,000 35,000 - 35,000 Capital outlay 50,000 50,000 14,934 35,066 Total expenditures 85,000 85,000 14,934 70,066 REVENUES OVER (UNDER) EXPENDITURES (75,000) (75,000) 19,232 94,232 OTHER FINANCING USES:
Proceeds from sale of property - - 5,780 5,780 Transfers in 35,000 35,000 - (35,000) Total other financing uses 35,000 35,000 5,780 (29,220) CHANGE IN FUND BALANCE (40,000) (40,000) 25,012 65,012 FUND BALANCE:
Beginning of year 270,725 270,725 270,725 - End of year 230,725$ 230,725$ 295,737$ 65,012$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Special Revenue Fund – Board of State and Community Corrections Year Ended June 30, 2022
164
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 254,338$ 254,338$ -$ (254,338)$ Investment earnings - - (561) (561) Total revenues 254,338 254,338 (561) (254,899) EXPENDITURES :
Current:
Police 210,756 210,756 200,286 10,470 Total expenditures 210,756 210,756 200,286 10,470 CHANGE IN FUND BALANCE 43,582 43,582 (200,847) (244,429) FUND BALANCE:
Beginning of year 193,624 193,624 193,624 - End of year 237,206$ 237,206$ (7,223)$ (244,429)$ Budgeted Amounts
165
Major Capital Project Fund Includes:
Nonmajor Capital Project Fund Includes:
CDBG Capital Projects Fund - To account for Com m unity Developm entBlock Gra n t(CDBG)funds, and the qualified ex penditures of these restricted funds for capital im provem ent projects.
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 im provem ents, and the eligible and qualified ex penditures of these restricted funds.
Cooperative Projects Fund - To account for former Redevelopm ent Agency unrestricted tax increment funds. These funds were transferred to the City under the 2011 Cooperation and Implementation Agreement (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 special revenue fund or other s pecifically identifiedby the sources of funding. Project funding is mainly from general revenues allocated by action of the City Council.
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, 2022
166
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Intergovernmental 6,021,019$ 7,299,019$ 2,613,022$ (4,685,997)$ Investment earnings (146,514) 470,000 183,532 (286,468) Total revenues 5,874,505 7,769,019 2,796,554 (4,972,465) EXPENDITURES :
Current:
Public works 153,853 303,885 191,908 111,977 Capital outlay 8,721,199 13,448,256 3,372,473 10,075,783 Total expenditures 8,875,053 13,752,140 3,564,381 10,187,759 REVENUES OVER (UNDER) EXPENDITURES (3,000,548) (5,983,121) (767,827) 5,215,294 OTHER FINANCING S OURCES (US ES ):
Transfers in 5,920,817 8,662,817 3,325,304 (5,337,513) Transfers out 2,918,284 2,918,284 - (2,918,284) Total other financing sources (uses) 8,839,101 11,581,101 3,325,304 (8,255,797) CHANGE IN FUND BALANCE 5,838,553 5,597,980 2,557,477 (3,040,503) FUND BALANCE:
Beginning of year 3,970,130 3,185,824 1,746,332 (1,439,492) End of year 9,808,683$ 8,783,804$ 4,303,809$ (4,479,995)$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Capital Projects Fund – Capital Improvement Grants
June 30, 2022
167
Actual Variance with
Or
iginal Final Amounts Final Budget
REVENUES :
Intergovernmental 52,959,324$ 53,189,324$ 37,272,117$ (15,917,207)$ Investment earnings - - (86,912) (86,912) Total revenues 52,959,324 53,189,324 37,185,205 (16,004,119) EXPENDITURES :
Capital outlay 21,693,302 45,404,373 8,079,436 37,324,937 Total expenditures 21,693,302 45,404,373 8,079,436 37,324,937 CHANGE IN FUND BALANCE 31,266,022 7,784,950 29,105,769 21,320,819 FUND BALANCE (DEFICIT):
Beginning of year (7,810,426) (7,810,426) (7,810,426) - End of year 23,455,596$ (25,476)$ 21,295,343$ 21,320,819$ Budgeted Amounts
City of Culver City
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2022
168
CDBG
Cooperative Capital
Projects Projects Total
A SSE TS
Cash and investments 3,643,446$ 249,463$ 3,892,909$ Accounts receivables, net 2 - 2 Interest receivables 1,076,583 - 1,076,583 Note receivables, net 3,395,000 - 3,395,000 Due from other governments - 15,690 15,690 Total assets 8,115,031$ 265,153$ 8,380,184$
LIABILITIES AND FUND BALANCES
L iabilities:
Accounts payable 122,171$ -$ 122,171$ Deposits payable 113,245 - 113,245 Retention payable 17,355 - 17,355 Due to other funds - 265,152 265,152 Total liabilities 252,771 265,152 517,923 Deferred inflows of resources:
Unavailable grant revenues - 15,690 15,690 Total deferred inflows of resources - 15,690 15,690 Fund Balances:
Restricted 7,862,260 - 7,862,260 Unassigned (deficit) - (15,689) (15,689) Total fund balances 7,862,260 (15,689) 7,846,571 Total liabilities, deferred inflows of resources
and fund balances 8,115,031$ 265,153$ 8,380,184$ City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds
Year Ended June 30, 2022
169
CDBG
Cooperative Capital
Projects Projects Total
REVENUES :
Intergovernmental -$ 321,623$ 321,623$ Investment earnings 48,358 - 48,358 Total revenues 48,358 321,623 369,981 EXPENDITURES :
Current:
Capital outlay 340,700 47,454 388,154 Total expenditures 340,700 47,454 388,154 CHANGES IN FUND BALANCES (292,342) 274,169 (18,173) FUND BALANCES:
Beginning of year 8,154,602 (289,858) 7,864,744 End of year 7,862,260$ (15,689)$ 7,846,571$ City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Capital Projects Funds – Cooperative Projects
Year Ended June 30, 2022
170
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Investment earnings (288,446)$ -$ 48,358$ 48,358$ Total revenues (288,446) - 48,358 48,358 EXPENDITURES :
Current:
General government 998,986 998,986 - 998,986 Community service 32,354 32,354 - 32,354 Capital outlay 2,195,946 2,848,691 340,700 2,507,991 Total expenditures 3,227,286 3,880,031 340,700 3,539,331 CHANGE IN FUND BALANCE (3,515,732) (3,880,031) (292,342) 3,587,689 FUND BALANCE:
Beginning of year 8,154,602 8,154,602 8,154,602 - End of year 4,638,870$ 4,274,571$ 7,862,260$ 3,587,689$ Budgeted Amounts
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Capital Projects Funds - CDBG
June 30, 2022
171
Actual Variance with
Original Final Amounts Final Budget
REV
ENUES :
Intergovernmental 652,936$ 827,936$ 321,623$ (506,313)$ Total revenues 652,936 827,936 321,623 (506,313) EXPENDITURES :
Capital outlay 322,915 497,915 47,454 450,461 Debt service: Principal payments 5,000 5,000 - 5,000 Debt service: Interest and fiscal charges 25,435 25,435 - 25,435 Total expenditures 353,350 528,350 47,454 480,896 CHANGE IN FUND BALANCE 299,585 299,585 274,169 (25,416) FUND BALANCE (DEFICIT):
Beginning of year (289,858) (289,858) (289,858) - End of year 9,727$ 9,727$ (15,689)$ (25,416)$ Budgeted Amounts
172
Risk Management Fund - Receives and disburses funds pertaining to the public liability and workers' com pensation insurance program s. It also funds the Em ployee Disability (Injured On Duty) program for em ployee long-term work-related disabilities.
Central Stores Fund - Accounts for the timely purchase of needed materials, supplies and auto parts 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-reim bursem ent basis.
Internal Serv ice Funds include:
Equipment Replacement Fund - Used to hold annual replacement paym ents from designated user departments and to use those funds to purchase equipm ent 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 am ong the designated user departm ents.
City of Culver City
Combining Statement of Net Position
All Internal Service Funds
Year Ended June 30, 2022
173
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
A SSE TS
Current assets:
Cash and investments 9,059,933$ -$ 6,058,601$ 94,086$ 15,212,620$ Accounts receivables, net - 8,360 1,954 - 10,314 Interest receivables 25,086 - 2,375 - 27,461 Due from other funds - - 16,633 1,790 18,423 Inventories - 152,002 - 602,912 754,914 Total current assets 9,085,019 160,362 6,079,563 698,788 16,023,732 Noncurrent assets:
Capital assets:
Machinery and equipment 27,041,784 360,601 42,219 - 27,444,604 Less accumulated depreciation (20,197,129) (331,250) (42,219) - (20,570,598) Capital assets, net 6,844,655 29,351 - - 6,874,006 Total noncurrent assets 6,844,655 29,351 - - 6,874,006 Total assets 15,929,674 189,713 6,079,563 698,788 22,897,738
DEFERRED O UTFLO WS O F RES O URCES
Pension related amounts - 651,501 167,071 - 818,572 Other postemployment benefits related amounts - 448,130 88,739 - 536,869
Total deferred outflows of resources - 1,099,631 255,810 - 1,355,441 (Continued)
City of Culver City
Combining Statement of Net Position (Continued)
All Internal Service Funds
Year Ended June 30, 2022
174
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
LIABILITIES
Current liabilities:
Accounts payable 172,696 279,590 78,985 137,986 669,257$ Salaries and benefits payable - 146,420 77,335 - 223,755 Due to other funds - 2,168,042 - 560,802 2,728,844 Compensated absences - due within one year - 180,357 - - 180,357 Claims payable - due within one year - - 4,626,094 - 4,626,094 Total current liabilities 172,696 2,774,409 4,782,414 698,788 8,428,307 Noncurrent liabilities:
Compensated absences - due in more than one year - 415,458 - - 415,458 Claims payable - due in more than one year - - 11,433,077 - 11,433,077 Net pension liabilities - 5,337,443 1,368,743 - 6,706,186 Net other postemployment benefits liabilities - 1,907,144 377,652 - 2,284,796 Total noncurrent liabilities - 7,660,045 13,179,472 - 20,839,517 Total liabilities 172,696 10,434,454 17,961,886 698,788 29,267,824
DEFERRED INFLO WS O F RES O URCES
Pension related amounts - 2,190,177 561,653 - 2,751,830 Other postemployment benefits related amounts - 778,482 154,155 - 932,637 Total deferred inflows of resources - 2,968,659 715,808 - 3,684,467
NET POS ITION
Investment in capital assets 6,844,655 29,351 - - 6,874,006 Unrestricted (deficit) 8,912,323 (12,143,120) (12,342,321) - (15,573,118) Total net position 15,756,978$ (12,113,769)$ (12,342,321)$ -$ (8,699,112)$ (Concluded)
City of Culver City
Combining Statement of Revenues, Expenses and Changes in Net Position All Internal Service Funds
Year Ended June 30, 2022
175
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
OPERATING REVENUES :
Sales and service charges 2,222,527 8,068,367 9,600,826 1,764,343 21,656,063$ M iscellaneous - 403 1,412 742 2,557 Total
operating revenues 2,222,527 8,068,770 9,602,238 1,765,085 21,658,620 O PERATING EXPENS ES :
Salaries and benefits - 3,936,712 2,899,105 - 6,835,817 Supplies - 2,127,548 75,270 336,457 2,539,275 Repairs and maintenance 211,966 1,982,356 - 1,428,839 3,623,161 Insurance - 80,756 3,170,293 - 3,251,049 Claims and settlements - - 4,264,115 - 4,264,115 Consulting and contractual services - 146,004 761,956 - 907,960 Depreciation 2,173,977 11,158 - - 2,185,135 Total operating expenses 2,385,943 8,284,534 11,170,739 1,765,296 23,606,512 O PERATING INCO ME (LO S S ) (163,416) (215,764) (1,568,501) (211) (1,947,892) NO NO PERATING REVENUES (EXPENS ES ):
Investment earnings (losses) (121,943) - (8,391) 211 (130,123) Gain on sales of property 53,282 - - - 53,282 Total nonoperating revenues (expenses) (68,661) - (8,391) 211 (76,841)
INCO ME (LO S S ) BEFO RE
CONTRIBUTIONS AND TRANS FERS (232,077) (215,764) (1,576,892) - (2,024,733) CONTRIBUTIONS AND TRANS FERS :
Transfers in - - 5,000,000 - 5,000,000 Total contributions and transfers - - 5,000,000 - 5,000,000 CHANGES IN NET POSITION (232,077) (215,764) 3,423,108 - 2,975,267 NET POSITION (DEFICIT):
Beginning of year 15,989,055 (11,898,005) (15,765,429) - (11,674,379) End of year 15,756,978$ (12,113,769)$ (12,342,321)$ -$ (8,699,112)$ City of Culver City
Combining Statement of Cash Flows
All Internal Service Funds
Year Ended June 30, 2022
176
Equipment Equipment Ris k Central
Replacement M aintenance M an agement Stores Total
CAS H FLOWS FROM OPERATING ACTIVITIES :
Receipts from user departments 2,231,167$ 8,087,585$ 9,619,133$ 1,764,343$ 21,702,228$ Receipts from customers and users - 403 1,412 742 2,557 Payments to suppliers for goods and services (46,689) (4,277,081) (8,726,762) (1,670,088) (14,720,620) Payments to employees - (4,573,698) (3,071,807) - (7,645,505) Net cash provided by (used in) operating activities 2,184,478 (762,791) (2,178,024) 94,997 (661,340)
CAS H FLOWS FROM NONCAPITAL
FINANCING ACTIVITY:
Cash received from (paid to) other funds - 770,480 4,989,037 (1,122) 5,758,395 Net cash provided by (used in)
noncapital financing activity - 770,480 4,989,037 (1,122) 5,758,395
CAS H FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (320,868) (7,689) - - (328,557) Capital grants - - - - - Proceeds from sale of capital assets 57,062 - - - 57,062 Net cash used in capital
and related financing activities (263,806) (7,689) - - (271,495) CAS H FLOWS FROM INVES TING ACTIVITY:
Interest received (losses) (128,440) - (9,380) 211 (137,609) Net cash used in inv esting activ ity (128,440) - (9,380) 211 (137,609) Net change in cash and cash equivalents 1,792,232 - 2,801,633 94,086 4,687,951 CAS H AND CAS H EQUIVALENTS :
Beginning of year 7,267,701 - 3,256,968 - 10,524,669 End of year 9,059,933$ -$ 6,058,601$ 94,086$ 15,212,620$ City of Culver City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
Year Ended June 30, 2022
177
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES :
Operating income (loss) (163,416)$ (215,764)$ (1,568,501)$ (211)$ (1,947,892)$ Depreciation 2,173,977 11,158 - - 2,185,135 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
(Increase) decrease in accounts receivable 8,640 19,218 18,307 - 46,165 (Increase) decrease in inventories - (13,818) - 16,672 2,854 (Increase) decrease in deferred outflows of resources:
Pension related - 421,567 108,108 - 529,675 OPEB related - (375,713) (74,399) - (450,112) Increase (decrease) in accounts payable 165,277 73,401 45,690 78,536 362,904 Increase (decrease) in salaries and benefits payable - 23,112 (15,793) - 7,319 Increase (decrease) in compensated absences - (41,679) (8,054) - (49,733) Increase (decrease) in net pension liabilities - (2,998,454) (768,929) - (3,767,383) Increase (decrease) in net OPEB liabilities - 264,934 52,462 - 317,396 Increase (decrease) in claims payable - - (500,818) - (500,818) (Increase) decrease in deferred inflows of resources:
Pension related - 2,125,071 544,957 - 2,670,028 OPEB related - (55,824) (11,054) - (66,878) Total adjustments 173,917 (558,185) (609,523) 95,208 (898,583) Net cash provided by (used in) operating activities 2,184,478$ (762,791)$ (2,178,024)$ 94,997$ (661,340)$
178
CUSTODIAL FUND
FINANCIAL STATEMENTS
Treasurer's Trust Custodial Fund - to account for refundable deposits entrusted with the City Treasurer/Finance.
Revitalization Corporation Cu stodial Fund - A non-profit corporationcreated to allowcertain fundingto be expended on improvementsto out-of-city propertiesadjacent to or abutting in-cityproperties in Component Area Number 2 of the Culver City Redevelopment Project Area.
City of Culver City
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2022
179
Treasurer's Revitalization
Trust Corporation Total
A SSE TS
Cash and investments 11,623$ 61,357$ 72,980$ Total assets 11,623 61,357 72,980
LIABILITIES
Deposits - - - Total liabilities - - -
NET POS ITION
Held in trust 11,623$ 61,357$ 72,980$ Custodial Funds
City of Culver City
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2022
180
Treasurer's Revitalization
Trust Corporation Total
ADDITIONS
Contributions -$ -$ -$ Total additions - - -
DEDUCTIONS
Administrative expenses - - - Total deductions - - - Change in net position - - -
NET POS ITION
Beginning of year 11,623 61,357 72,980 End of year 11,623$ 61,357$ 72,980$ Custodial Funds
Statistical Section
City of Culver City, California
181
STATISTICAL SECTION
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.
City of Culver City
Description of Statistical Section Contents
June 30, 2022
182
Contents: Page s
183 - 194
195 - 200
201 - 205
206 -
207
208 - 211
This part of the City of C ulver City's comprehensive annual financial re port presents detailed information as a context for understanding what the information in the financial statements, note disclosur es, and re quire dsupplementary information say about the government's overall financial health.
Financial Trends - These schedules contain trend informationto h elp the reader understand how the City's financial performance and well-being have changed over time.
Revenue Capacity - These schedules contain informationto h elp the reader assess the City's most significant local revenue source, the property tax.
Debt Capacity - These schedules present information to h elp the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.
De mographic and Economic Information - The se 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 s ervice and infrastructure data to help the reader understand how the informationin the City's financialreport related to the services the City provides and activities it performs.
City of Culver City
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
183
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets 143,056,650$ 143,775,699$ 138,194,791$ 136,967,403$ 144,639,910$ Restricted 96,457,750 96,157,539 80,777,328 83,083,502 90,048,591 Unrestricted 21,999,556 33,896,113 (171,257,691) (156,905,843) (159,583,947) Total governmental activities net position 261,513,956$ 273,829,351$ 47,714,428$ 63,145,062$ 75,104,554$ Business-type activities
Net investment in capital assets 50,787,094$ 55,216,555$ 54,690,405$ 57,051,460$ 72,309,196$ Restricted 2,171,794 2,176,609 2,185,415 1,652,641 1,608,838 Unrestricted 33,449,555 31,679,756 (3,173,794) (4,995,724) (13,213,561) Total business-type activities net position 86,408,443$ 89,072,920$ 53,702,026$ 53,708,377$ 60,704,473$ Primary government
Net investment in capital assets 193,843,744$ 198,992,254$ 192,885,196$ 194,018,863$ 216,949,106$ Restricted 98,629,544 98,334,148 82,962,743 84,736,143 91,657,429 Unrestricted 55,449,111 65,575,869 (174,431,485) (161,901,567) (172,797,508) Total primary government net position 347,922,399$ 362,902,271$ 101,416,454$ 116,853,439$ 135,809,027$ Note: The City of Culver City began to report accrual information w hen it implemented G AS B S tatement 34 in fiscal year 2003 City of Culver City
Net Position by Component (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
184
2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets 162,634,242$ 174,897,818$ 174,821,730$ 187,808,665$ 196,552,031$ Restricted 70,969,965 65,586,867 79,921,054 104,053,897 123,084,444 Unrestricted (162,306,355) (150,684,028) (164,095,166) (188,774,604) (129,855,540) Total governmental activities net position 71,297,852$ 89,800,657$ 90,647,618$ 103,087,958$ 189,780,935$ Business-type activities
Net investment in capital assets 71,580,562$ 72,974,924$ 74,664,009$ 76,208,363$ 80,731,239$ Restricted 1,658,185 1,663,167 13,866 1 4 Unrestricted (15,089,840) (20,314,978) (23,982,949) (19,958,484) (25,467,597) Total business-type activities net position 58,148,907$ 54,323,113$ 50,694,926$ 56,249,880.00$ 55,263,646.00$ Primary government
Net investment in capital assets 234,214,804$ 247,872,742$ 249,485,739$ 264,017,028$ 277,283,270$ Restricted 72,628,150 67,250,034 79,934,920 104,053,898 123,084,448 Unrestricted (177,396,195) (170,999,006) (188,078,115) (208,733,088) (155,323,137) Total primary government net position 129,446,759$ 144,123,770$ 141,342,544$ 159,337,838$ 245,044,581$ 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)
185
2013 2014 2015 2016 2017
E xpenses
Governmental activities:
General government 8,445,889$ 7,862,533$ 22,383,141$ 13,358,925$ 14,990,643$ Parks, recreation and community services 7,367,387 7,780,264 8,325,466 8,775,491 9,022,335 Police 30,336,287 33,869,176 32,806,197 36,045,013 40,121,314 Fire 18,077,245 19,179,679 19,167,988 20,374,502 23,019,797 Community Development 9,661,939 10,013,569 10,460,975 13,645,410 24,698,337 P ublic Works 11,360,132 11,789,014 14,477,308 12,586,907 12,948,758 Transportation 291,612 286,165 263,200 364,621 485,925 Capital Outlay - - - - - Interest on long-term debt 74,649 47,962 11,520 - - Total governmental activities expenses 85,615,140 90,828,362 107,895,795 105,150,869 125,287,109 Business-type activities:
Refuse Disposal Fund 10,841,375 11,549,661 11,783,785 11,192,703 12,254,241 Municipal Bus Lines Fund 22,752,400 21,491,866 22,324,977 23,080,082 24,242,317 Sewer Enterprise Fund 7,401,222 9,357,548 9,765,471 9,875,998 9,076,812 Municipal Fiber Network - - - 1,963 1,430,316 Internal Service Fund Allocated to
business-type activities - - - - - Total business-type activities expenses 40,994,997 42,399,075 43,874,233 44,150,746 47,003,686 Total primary government expenses 126,610,137 133,227,437 151,770,028 149,301,615 172,290,795 Program Rev enues
Governmental activities:
Charges for services:
General government 556,792$ 1,479,181$ 2,238,222$ 3,420,061$ 2,465,017$ Parks and recreation 2,448,788 2,660,125 2,926,314 2,981,697 3,099,475 Police 3,896,275 4,547,121 4,455,096 4,661,925 5,640,905 Fire 2,533,844 3,001,288 2,786,350 3,469,803 3,639,515 Community Development 6,841,558 8,633,692 7,478,274 10,055,969 10,372,275 P ublic Works 1,619,054 1,896,937 2,126,165 2,152,282 2,554,688 Transportation 4,352 5,009 5,776 4,348 4,426 Operating Contributions and G rants 6,844,461 6,577,663 6,077,562 6,887,267 5,200,729 Capital Grants and Contributions 4,991,312 2,493,998 2,825,117 1,195,595 6,235,656 Total governmental activities program revenues 29,736,436 31,295,014 30,918,876 34,828,947 39,212,686 Business-type activities:
Charges for services:
Refuse Disposal Fund 11,419,668 11,732,899 11,745,590 12,559,906 13,086,289 Municipal Bus Lines Fund 4,011,320 3,796,169 3,760,517 3,582,271 3,188,558 Sewer Enterprise Fund 8,141,464 8,999,538 9,185,121 9,936,490 9,003,222 Municipal Fiber Network - - - - - Operating grants and contributions 14,496,326 15,781,669 15,906,511 16,165,460 25,844,886 Capital grants and contributions 1,938,724 4,224,835 729,378 1,220,528 1,621,358 Total business-type activities program revenues 40,007,502 44,535,110 41,327,117 43,464,655 52,744,313 Total primary government program revenues 69,743,938$ 75,830,124$ 72,245,993$ 78,293,602$ 91,956,999$ Note: The City of Culver City implemented G AS B 34 for the fiscal year ended 2003.
City of Culver City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
186
2018 2019 2020 2021 2022
E x
penses
Governmental activities:
General government 26,854,930$ 17,862,641$ 18,343,391$ 26,649,962$ 12,168,639$ Parks, recreation and community services 11,501,839 11,838,330 9,441,755 8,990,167 10,674,233 Police 45,463,577 45,771,756 49,820,605 44,928,502 46,143,913 Fire 26,764,984 27,136,117 27,388,529 26,962,832 28,486,778 Community Development 13,250,693 13,649,676 16,239,189 15,711,383 16,131,833 P ublic Works 14,132,972 15,572,218 16,024,316 15,459,474 16,925,134 Transportation 1,009,270 970,326 226,814 247,806 373,693 Capital Outlay - - - 38,053 - Interest on long-term debt - - - - - Total governmental activities expenses 138,978,265 132,801,064 137,484,599 138,988,179 130,904,223 Business-type activities:
Refuse Disposal Fund 14,811,894 15,905,856 17,502,230 15,436,971 16,314,382 Municipal Bus Lines Fund 27,546,738 27,317,029 34,013,345 27,441,007 28,601,085 Sewer Enterprise Fund 8,144,996 9,583,110 9,276,555 8,719,314 8,760,599 Municipal Fiber Network 1,720,771 2,713,855 3,226,780 2,102,185 2,025,460 Internal Service Fund Allocated to
business-type activities - - - 924,172 (922,333) Total business-type activities expenses 52,224,399 55,519,850 64,018,910 54,623,649 54,779,193 Total primary government expenses 191,202,664 188,320,914 201,503,509 193,611,828 185,683,416 Program Revenues
Governmental activities:
Charges for services:
Gen
eral government 5,100,366$ 5,590,272$ 4,942,337$ 1,758,493$ 2,420,243$ Parks and recreation 3,510,388 3,771,176 2,281,142 1,765,446 3,294,252 Police 6,380,868 5,984,564 4,810,715 3,757,843 3,843,239 Fire 4,099,395 4,464,004 3,682,521 4,107,120 4,348,773 Community Development 14,267,654 12,481,979 13,257,557 6,911,883 11,662,835 P ublic Works 3,056,562 3,207,741 2,554,779 4,962,272 5,578,011 Transportation 30,193 67,263 140,424 - - Operating Contributions and G rants 5,936,262 6,660,280 7,630,779 13,829,191 17,917,373 Capital G rants and Contributions 4,659,933 2,668,902 4,065,265 11,631,573 33,717,176 Total governmental activities program revenues 47,041,621 44,896,181 43,365,519 48,723,821 82,781,902 Business-type activities:
Charges for services:
Refuse Disposal Fund 14,644,140 16,011,416 16,573,869 16,027,123 18,485,663 Municipal Bus Lines Fund 3,041,100 2,908,933 2,594,270 1,024,500 1,939,624 Sewer Enterprise Fund 9,724,306 11,020,326 10,903,349 10,111,096 9,162,252 Municipal Fiber Network - 35,655 245,650 2,612,865 3,063,682 Operat ing grant s and cont ribut ions 19,329,775 20,011,475 22,143,916 27,188,192 17,346,304 Capital grants and contributions 1,272,523 510,463 5,665,166 2,218,360 6,861,090 Total business-type activities program revenues 48,011,844 50,498,268 58,126,220 59,182,136 56,858,615 Total primary government program revenues 95,053,465$ 95,394,449$ 101,491,739$ 107,905,957$ 139,640,517$ Note: The City of Culver City implemented G AS B 34 for the fiscal year ended 2003.
City of Culver City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
187
2013 2014 20 15 2016 2017
Net (E xpense)/Rev enue
Governmental activities (55,878,704)$ (59,533,348)$ (76,976,919)$ (70,321,922)$ (86,074,423)$ Business-type activities (987,495) 2,136,035 (2,547,116) (686,091) 5,740,627 Total primary government net expense (56,866,199)$ (57,397,313)$ (79,524,035)$ (71,008,013)$ (80,333,796)$ General Rev enues and Other Changes in Net Position
Governmental activities :
Taxes
Property taxes 8,674,103$ 7,308,615$ 10,009,164$ 10,627,556$ 11,011,319$ Sales taxes 19,791,627 27,692,291 28,284,352 30,172,506 29,997,495 Utility users tax 14,518,808 14,839,873 14,774,331 14,544,069 14,104,504 Franchise taxes 1,399,727 1,449,956 1,516,279 1,408,672 1,408,686 Business license taxes 10,253,802 11,214,234 11,808,710 12,299,395 13,373,055 Transient occupancy taxes 5,195,349 5,608,151 6,699,816 7,572,077 7,566,579 Other taxes 743,702 1,313,693 1,374,938 1,228,747 631,600 Motor vehicle in lieu taxes (Intergov't revenue) 3,449,068 3,735,235 3,908,299 4,109,366 4,475,719 Use of money and property 1,446,295 2,070,913 1,280,825 849,088 692,450 Gain (Loss) on sale of capital assets - (293,338) 211 - - Other 731,825 342,257 14,781,529 617,494 417,212 Transfers (398,441) (760,438) (919,357) 12,786 (1,093,863) Transfers from fiduciary - - - 2,310,800 - Extraordinary gain - transfer of assets and liabilities to RDA Successor t rust funds - - - - - Special Items - - (12,541,852) - 11,599,118 Total governmental activities 65,805,865$ 74,521,442$ 80,977,245$ 85,752,556$ 94,183,874$ Business-type activities:
Sales Taxes- Measure R -$ -$ -$ -$ -$ Use of money and property (16,248) 277,385 216,904 320,931 80,471 Other 346,317 342,457 300,209 384,297 411,639 (Loss) on sale of capital assets (330,504)
Transfers 398,441 760,438 919,357 (12,786) 1,093,863 Total business-type activities 728,510 1,380,280 1,436,470 692,442 1,255,469 Total primary government 66,534,375$ 75,901,722$ 82,413,715$ 86,444,998$ 95,439,343$ Change in Net Position
Governmental activities 9,927,161$ 14,988,094$ 4,000,326$ 15,430,634$ 8,109,451$ Business-type activities (258,985) 3,516,315 (1,110,646) 6,351 6,996,096 Total primary government 9,668,176$ 18,504,409$ 2,889,680$ 15,436,985$ 15,105,547$ 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)
188
2018 2019 2020 2021 2022
Ne
t (E xpense)/Rev enue
Governmental activities (91,936,644)$ (87,904,883)$ (94,119,080)$ (90,264,358)$ (48,122,321)$ Business-type activities (4,212,555) (5,021,582) (5,892,690) 4,558,447 2,079,422 Total primary government net expense (96,149,199)$ (92,926,465)$ (100,011,770)$ (85,705,911)$ (46,042,899)$ General Rev enues and Other Changes in Net Position
Governmental activities :
Taxes
Property taxes 13,790,871$ 13,488,817$ 14,318,618$ 20,364,416$ 45,472,191$ Sales taxes 31,162,345 32,402,882 33,606,943 37,830,897 43,415,098 Utility users tax 13,970,775 13,173,647 13,329,640 13,184,794 14,858,826 Franchise taxes 1,439,743 1,412,810 1,435,516 2,298,715 1,456,175 Business license taxes 13,168,013 13,991,391 14,599,849 15,895,304 16,186,448 Transient occupancy taxes 7,903,787 8,551,849 6,347,604 3,073,676 8,813,484 Other taxes 1,731,434 2,668,453 2,750,778 391,788 1,969,752 Motor vehicle in lieu taxes (Intergov't revenue) 4,764,501 5,086,293 5,541,021 6,087,286 6,500,392 Use of money and property 760,686 3,230,772 3,732,582 3,939,952 (3,305,987) Gain (Loss) on sale of capital assets - - - - - Other 588,897 1,539,459 472,933 629,659 579,324 Transfers (1,151,110) (1,472,842) (1,169,443) (991,789) (1,130,406) Transfers from fiduciary - - - - - Extraordinary gain - transfer of assets and liabilities to RDA Successor t rust funds - - - - - Special Items - - - - - Total governmental activities 88,129,942$ 94,073,531$ 94,966,041$ 102,704,698$ 134,815,297$ Business-type activities:
Sales Taxes- Measure R -$ -$ -$ -$ -$ Use of money and property 113,536 807,284 975,089 4,718 (621,560) Other 392,343 2,199,819 119,971 - 14,827 (Loss) on sale of capital assets - - - - - Transfers 1,151,110 1,472,842 1,169,443 991,789 1,130,406 Total business-type activities 1,656,989 4,479,945 2,264,503 996,507 523,673 Total primary government 89,786,931$ 98,553,476$ 97,230,544$ 103,701,205$ 135,338,970$ Change in Net Position
Governmental activities (3,806,702)$ 6,168,648$ 846,961$ 12,440,340$ 86,692,976$ Business-type activities (2,555,566) (541,637) (3,628,187) 5,554,954 2,603,095 Total primary government (6,362,268)$ 5,627,011$ (2,781,226)$ 17,995,294$ 89,296,071$ 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)
189
2013 2014 20 15 2016 2017
Function/Program
Governmental activities:
General government 2,689,305$ 3,455,983$ 4,195,371$ 4,860,813$ 3,865,385$ Parks and recreation 2,891,150 2,870,838 3,247,541 3,272,059 3,381,557 Police 4,481,542 5,337,377 5,254,336 5,258,049 6,127,591 Fire 2,777,379 3,230,169 2,867,360 3,647,791 3,745,887 Community Development 9,228,830 10,580,562 9,174,202 13,009,788 12,256,628 P ublic Works 7,577,994 5,682,998 5,979,216 4,632,178 9,676,224 Transportation 90,236 137,087 200,850 148,269 159,414 Subtotal governmental activities 29,736,436 31,295,014 30,918,876 34,828,947 39,212,686 Business-type activities:
Refuse Disposal Fund 11,442,218 11,772,165 11,796,339 12,604,319 13,086,289 Municipal Bus -T ransit 20,422,157 23,762,329 20,344,349 20,923,156 30,654,802 Sewer Enterprise Fund 8,143,127 9,000,616 9,186,429 9,937,180 9,003,222 Municipal Fiber Network - - - - - Subtotal business-type activities 40,007,502 44,535,110 41,327,117 43,464,655 52,744,313 Total primary government 69,743,938$ 75,830,124$ 72,245,993$ 78,293,602$ 91,956,999$ City of Culver City
Program Revenues By Revenue Function (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
190
2018 2019 2020 2021 2022
Fu
nction/Program
Governmental activities:
General government 6,609,126$ 7,708,839$ 7,549,835$ 6,820,173$ 7,198,631$ Parks and recreation 3,792,927 4,037,386 2,590,460 1,798,693 3,656,173 Police 7,218,778 6,712,644 5,557,882 4,307,949 4,227,491 Fire 4,411,810 4,564,864 3,734,458 4,586,726 5,232,755 Community Development 16,714,423 14,686,222 15,364,424 8,711,092 13,664,526 P ublic Works 7,891,194 7,169,941 8,154,846 20,498,301 46,270,325 Transportation 403,363 16,285 413,614 2,000,887 2,532,001 Subtotal governmental activities 47,041,621 44,896,181 43,365,519 48,723,821 82,781,902 Business-type activities:
Refuse Disposal Fund 14,760,456 16,039,981 16,763,476 16,147,998 18,529,380 Municipal Bus -T ransit 23,524,754 23,402,059 29,506,830 30,309,978 26,103,144 Sewer Enterprise Fund 9,726,634 11,020,573 10,903,509 10,111,295 9,162,409 Municipal Fiber Network - 35,655 952,405 2,612,865 3,063,682 Subtotal business-type activities 48,011,844 50,498,268 58,126,220 59,182,136 56,858,615 Total primary government 95,053,465$ 95,394,449$ 101,491,739$ 107,905,957$ 139,640,517$ City of Culver City
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
191
2013 2014 20 15 2016 2017
General Fund
Reserved -$ -$ -$ -$ -$ Unreserved - - - - - Nonspendable 7,621,370 7,545,451 8,797,076 18,651,241 14,390,734 Restricted - - - - - Committed - 30,189,148 34,909,456 37,778,333 40,472,141 Assigned 564,382 655,548 100,659 225,888 98,046 Unassigned 42,939,543 18,636,897 36,885,749 25,422,152 22,009,527 Total General Fund 51,125,295$ 57,027,044$ 80,692,940$ 82,077,614$ 76,970,448$ All Other Governmental Funds
Reserved -$ -$ -$ -$ -$ Unreserved, reported in:
Special revenue funds-RDA - - - - - Capital projects funds-CITY - - - - - Capital projects funds-RDA - - - - - Debt service funds - - - - - Non-Major funds - Special revenue funds - - - - - Non-Major funds - Capital projects funds - - - - - Nonspendable - - - - 29,508,555 Restricted (includes COOP) 95,927,506 95,919,140 80,663,848 81,872,220 63,126,537 Committed - - - 14,114,312 13,543,461 Assigned 3,939,545 4,171,163 5,201,207 - - Unassigned (332,930)
(1,787,933) (2,639,282) (2,116,848) (4,338,625) Total all other Governmental Funds 99,534,121$ 98,302,370$ 83,225,773$ 93,869,684$ 101,839,928$ Note: This schedule has been modified pursuant to GASB Statement No. 54 which establishes the following classifications (effective 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)
192
2018 2019 2020 2021 2022
Ge
neral Fund
Reserved -$ -$ -$ -$ -$ Unreserved - - - - - Nonspendable 14,262,847 15,246,847 15,739,306 14,766,327 14,785,102 Restricted - 10,602,535 11,193,366 13,875,468 27,050,540 Committed 44,250,119 48,905,672 51,371,732 53,001,673 69,500,578 Assigned 121,839 102,866 5,731,509 5,234,293 6,527,254 Unassigned (deficit) 22,127,231 20,709,758 18,381,515 21,930,270 25,093,180 Total General Fund 80,762,036$ 95,567,678$ 102,417,428$ 108,808,031$ 142,956,654$ All Other Governmental Funds
Reserved -$ -$ -$ -$ -$ Unreserved, reported in:
Special revenue funds-RDA - - - - - Capital projects funds-CITY - - - - - Capital projects funds-RDA - - - - - Debt service funds - - - - - Non-Major funds - Special revenue funds - - - - - Non-Major funds - Capital projects funds - - - - - Nonspendable - - - - - Restricted (includes COOP) 76,659,696 70,657,761 68,582,916 66,608,238 89,221,934 Committed 16,488,882 20,467,461 23,190,384 23,570,191 28,107,313 Assigned - - - - Unassigned (deficit) (1,500,668)
(2,047,587) (4,011,524) (8,997,368) (1,299,871) Total all other Governmental Funds 91,647,910$ 89,077,635$ 87,761,776$ 81,181,061$ 116,029,376$ Note: This schedule has been modified pursuant to GASB Statement No. 54 which establishes the following classifications (effective 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)
193
2013 2014 2015 2016 2017
Rev enues
Taxes 60,044,744$ 68,741,259$ 75,200,587$ 78,337,955$ 78,093,238$ Licenses and permits 3,040,943 4,664,551 4,301,740 5,088,964 4,910,124 Fines and forfeitures 3,574,853 4,174,721 4,104,462 4,323,432 5,080,610 Investment income 2,852,792 3,451,821 2,958,972 2,315,628 1,827,323 Intergovernmental 11,926,258 10,453,476 11,932,021 11,641,261 13,531,055 Charges for services 10,063,004 11,937,412 12,589,262 15,994,025 16,461,731 Sale of Land for resale - - - - - Other revenues 1,323,474 695,241 15,215,908 1,488,349 652,582 Total revenues 92,826,068 104,118,481 126,302,952 119,189,614 120,556,663 Expenditures
General government 11,905,828 12,190,249 16,881,178 13,210,888 14,502,021 Parks, recreation and community services 6,762,595 7,178,243 7,736,234 7,761,720 8,273,036 Police 29,478,847 32,912,122 32,784,324 34,305,688 37,924,974 Fire 17,199,564 18,121,240 19,097,947 21,531,923 22,677,676 Community development 9,135,006 9,481,641 9,825,125 13,415,458 24,163,346 Public works & T ransportation 9,638,661 10,002,080 10,349,275 11,526,943 11,562,147 Capital outlay 5,551,098 5,620,204 6,260,467 7,426,995 12,945,681 Debt service
Debt issuance costs - - - - - Principal payment 278,416 296,605 335,510 - - Interest and fiscal charges 74,649 47,962 11,520 - - SERAF payments - - - - - Pass-through payments - - - - - Payment of refunding bond escrow - prior issue - - - - - Total expenditures 90,024,664 95,850,346 103,281,580 109,179,615 132,048,881 Excess of revenues over (under) expenditures 2,801,404 8,268,135 23,021,372 10,009,999 (11,492,218) Other F inancing Sources (Uses)
Capital contributions - - - - - Transfers in 3,193,169 3,474,210 5,322,403 15,769,002 11,434,526 Transfers out (3,491,610) (4,399,648) (6,546,760) (16,061,216) (12,528,389) Other financing sources 2,310,800 -
Long-t erm debt issued - - - - - Payment to refunded bond escrow - current issue - - - - - Original issue premium (discount) - - - - - Total other financing sources (uses) (298,441) (925,438) (1,224,357) 2,018,586 (1,093,863) Extraordinary Items - Gain (loss) on transfer of assets - - - - - and liabilit ies t o RDA successor t rust funds
Special Items (12,541,852) - 11,599,118 Net change in fund balances 2,502,963$ 7,342,697$ 9,255,163$ 12,028,585$ (986,963)$ Debt service as a percentage of noncapital expenditures (a) 0.4% 0.0% 0.3% 0.0% 0.0% Note:
(a) Debt service as a percent of noncapital expenditures is restated as follows: The amount of capital out lay used to calculate the ratio of total debt service expenditures to noncapital expenditures is the same as the reconciling item for capital out lay in the reconciliation between the government-w ide 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 City of Culver City
Changes in Fund Balances, Governmental Funds (Continued) Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
194
2018 2019 2020 2021 2022
Rev enues
Taxes 83,166,967 85,689,848$ 86,360,835$ 93,039,590$ 132,171,974$ Licenses and permits 8,174,187 8,734,454 7,887,677 3,935,882 7,102,070 Fines and forfeitures 5,822,781 5,468,942 4,478,030 3,562,963 3,580,843 Investment income 2,198,158 5,433,125 6,165,210 3,948,187 (3,175,864) Intergovernmental 16,672,290 13,898,876 14,315,212 26,484,519 62,884,476 Charges for services 21,358,952 19,366,008 17,315,109 15,764,212 20,464,440 Sale of Land for resale - - - - - Other revenues 955,418 1,772,685 772,079 586,275 498,170 Total revenues 138,348,753 140,363,938 137,294,152$ 147,321,628$ 223,526,109$ Expenditures
General government 25,402,021 17,005,110 16,910,700 19,137,325 18,221,637 Parks, recreation and community services 9,153,817 9,838,098 9,117,856 8,333,075 9,960,647 Police 40,012,677 42,308,470 44,812,950 44,438,831 45,612,142 Fire 23,407,204 25,121,591 24,250,141 26,555,148 28,044,043 Community development 12,144,088 12,866,296 14,609,370 14,555,076 14,876,112 Public w orks & Transportation 12,202,528 13,544,167 13,629,568 13,600,770 15,011,210 Capital outlay 21,275,738 15,971,997 7,268,707 19,915,983 16,700,846 Debt service
Debt issuance costs - - - - - Principal payment - - - - - Interest and fiscal charges - - - - - S ERAF payments - - - - - Pass-through payments - - - - - Payment of refunding bond escrow - prior issue - - - - - Total expenditures 143,598,073 136,655,729 130,599,292 146,536,208 148,426,637 Excess of revenues over (under) expenditures (5,249,320) 3,708,209 6,694,860 785,420 75,099,472 Other F inancing Sources (Uses)
Capital contributions - - - 15,000 - Transfers in 38,487,071 5,832,085 6,118,640 3,529,325 7,587,062 Transfers out (39,638,181) (7,304,927) (7,288,083) (4,521,114) (13,717,468) Other financing sources (Proceeds from sale of property) - - 8,474 1,257 27,872 Long-t erm debt issued - - - - - Payment to refunded bond escrow - current issue - - - - - Original issue premium (discount) - - - - - Total other financing sources (uses) (1,151,110) (1,472,842) (1,160,969) (975,532) (6,102,534) Extraordinary Items - Gain (loss) on transfer of assets and liabilit ies t o RDA successor t rust funds
Special Items - - - - - Net change in fund balances (6,400,430)$ 2,235,367$ 5,533,891$ (190,112)$ 68,996,938$ 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 out lay used to calculate the ratio of total debt service expenditures to noncapital expenditures is the same as the reconciling item for capital out lay 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)
195
Fines,
Fiscal Ut ility L icenses, Forfeitures,
Year Property Tax Sales Tax Users Tax Other Tax Permits Penalties 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 2022 45,472,191 43,415,098 14,858,826 28,425,859 7,102,070 3,580,843 City of Culver City
Tax Revenues by Source (Continued)
Governmental Funds
(Modified Accrual Basis of Accounting)
196
Revenue
Fiscal Use of Money, from other Charges for Sale of
Year Property Agencies Serv ices Property Other Total
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 2022 (3,175,864) 62,884,476 20,464,440 - 498,170 223,526,109 City of Culver City
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
197
Net (a) Total
Total Taxable Direct
Fiscal Secured Nonunitary Unsecured Assessed Tax
Year Property Utilities Property Value % Rate (b)
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 0.097% 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% 2022 13,268,961,539 1,515,888 703,854,548 13,974,331,975 0.099% S ource: 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 maximumrate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximumof 2%). With few exceptions, property is only reassessed as a result of new construction activity 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 purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with 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)
198
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City'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 Redevelopment Rate - - - - - - - - - - Total Direct Tax Rate (b) 0.5426 0.0946 0.0952 0.0957 0.0962 0.0950 0.0974 0.0979 0.0984 0.0986 Direct & Overlapping Rates
Basic 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 G eneral 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 0.3471 Culver City Unified School District 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 0.2328 Educational Augmentation 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 S chool S ervices 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 Tuition 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 S chool S ervices 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 Center 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 Basi c Le vy 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 County Detention Facilities 1987 Debt - - - - - - - - - - Culver City Unified 0.0361 0.0314 0.0778 0.0717 0.0663 0.0649 0.0644 0.0495 0.0483 0.0437 El Camino community college 0.0185 0.0175 0.0174 0.0175 0.0229 0.0212 0.0222 0.0216 0.0236 0.0226 Inglew ood Unified S chool District 0.1214 0.1561 0.1499 0.1276 0.1135 0.1168 0.1308 0.0983 0.0929 0.1438 La Ccd Ds 2008 2012 S eries F 0.0112 - - - - - - - - - La Community college District 0.0376 0.0445 0.0402 0.0358 0.0360 0.0460 0.0462 0.0272 0.0402 0.0438 La County Flood Control - - - - - - - - - - Los Angeles Unified School District 0.1756 0.1464 0.1469 0.1297 0.1311 0.1222 0.1232 0.1255 0.1399 0.1132 Metropolitan Water District 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 Total Direct & Overlapping (d) Tax Rates 1.4039 1.3994 1.4357 1.3857 1.3733 1.3746 1.3904 1.3256 1.3485 1.3707 Source: HdL Coren & Cone
Notes:
(a) City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City.
(b) Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information
(c) 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 w hich the subject property resides w ithin. (d) Overlapping rates are those of local and county governments that 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
199
Total Net Assessed Value 13,974,331,975$ 100.00% 7, 503,759,563$ 100.00% Percentage Percentage
Net of Total Net of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Lot, Inc. 524,835,171$ 1 3.76% 302,728,116$ 1 4.03% Fox Hills Mall LLC/Westfield 214,447,660 2 1.53% 89,032,171 6 1.19% One Culver Owner LP 176,541,554 3 1.26%
Equit y One Culver LLC 174,125,573 4 1.25% 66,405,608 9 0.88% Ivy S tation LLC 158,644,368 5 1.14%
US VI CP Property LLC 155,574,423 6 1.11%
Reep Ofc Corporate Pointe CA LLC 143,541,045 7 1.03% MPT Of Culver City PMH LP 141,368,781 8 1.01%
S ony Pictures Entertainment Inc. 138,066,752 9 0.99% 114,147,245 2 1.52% 900 CP Ow ner LLc 120,000,000 10 0.86%
LBA RV Company IX LP
Higuera Office LLC
Symantec Corporation 91,724,591 5 1.22%
Transwestern Corporate Pointe LLC 92,119,905 4 1.23% T CE Filmland Holdings LLC 92,998,533 3 1. 24% PCCP Studio City Los Angeles T CS Acquisition LLC 85,322,855 7 1. 14% Sy Culver City Portfolio Limited Partnership 73,818,969 8 0.98% Raintree Realty LLC 57,552,382 10 0.77%
Total 1,947,145,327$ 13.93% 1,065,850,375$ 14.20%
Source: Los Angeles County Assessor 2021/22 Combined Tax Rolls 2022 2013
City of Culver City
Property Tax Levies and Collections
Last Ten Fiscal Years
200
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 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% 2022 6,279,304 6,044,637 96.3% 198,117 6,242,754 99.4% 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 T otal Collections to Date
City of Culver City
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
201
Total Wastewater Certificates Total Total Percentage Debt Fiscal Redevelopment Capital Governmenta Revenue of Capital Business-type Primary of Personal Per Year Bonds Leases Loans Activities Bonds Participation Leases Activities Government Income (b) Capita (b) 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 2022 - - - - 21,470,830 - - 21,470,830 21,470,830 0.9% 535 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, 2022, 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
202
City Assessed Valuation 6,383,983,094$
S
uccessor Agency Incremental Valuation 7,590,348,881
Total Net Taxable Assessed Valuation 13,974,331,975$
Estimated
Share of
Estimated Direct and
Debt Percentage Overlapping
Out st anding Applicable Debt
Overlapping Debt Repaid with Voter-Approved Property Taxes:
Los Angeles County -$ -$
Los Angeles County Flood Control District - - Metropolitan Water District 9,835,780 0.846% 83,168 El Camino College District 482,552,927 0.004% 18,425 Los Angeles Community College District 4,146,515,000 1.396% 57,901,601 Culver City Unified School District 113,880,000 99.723% 113,564,728 Inglewood Unified School District 203,435,000 0.031% 64,060 Los Angeles Unified School District 10,544,815,000 0.007% 755,275 Subt ot al, overlapping debt 2.70% 172,387,257
Cit y direct debt 0.00% -
Total direct and overlapping debt 2.70% 172,387,257$
Source: HdL Coren & Cone, Los Angeles County Assessor 2021/2022 Combined Lien Date Tax Rolls Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule es
timates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Culver City. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident—and therefore responsible for repaying the debt—of each overlapping government. The overlapping debt represents 2.70% of the City's 2021/2022 assessed valuation or $ 172.4 million.
City of Culver City
Legal Debt Margin Information
Last Ten Fiscal Years
203
2013 2014 2015 2016 2017
Total assessed valuation 7,752,446,647$ 8,323,791,063$ 8,732,804,582$ 9,169,218,845$ $9,949,044,594 Debt Limit percentage 15% 15% 15% 15% 15%
Debt Limit 1,162,866,997$ 1,248,568,659$ 1,309,920,687$ 1,375,382,827$ 1,492,356,689$ Amount of debt applicable to the limit: -$ -$ -$ -$ -$
Legal Debt Margin 1,162,866,997$ 1,248,568,659$ 1,309,920,687$ 1,375,382,827$ 1,492,356,689$ 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 w ith California G overnment Code, total general obligation bonds outstanding cannot exceed 15 percent of total assessed valuation. For the 10 years ended June 30, 2022, 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
204
2018 2019 2020 2021 2022
To
tal assessed valuation 10,555,362,319$ 11,323,006,988 12,281,599,213 13,423,021,867 14,248,320,150 Debt Limit percentage 15% 15% 15% 15% 15%
Debt Limit 1,583,304,348$ 1,698,451,048$ 1,842,239,882$ 2,013,453,280$ 2,137,248,023$ Amount of debt applicable to the limit: -$ -$ -$ -$ -$
Legal Debt Margin 1,583,304,348$ 1,698,451,048$ 1,842,239,882$ 2,013,453,280$ 2,137,248,023$ 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 va
luation. For the 10 years ended June 30, 2022, the City was not obligated in any manner for general obligation bonds.
City of Culver City
Pledge-Revenue Coverage
Last Ten Fiscal Years
205
Utility Interest Less: Net
Fiscal Service Earnings Operating Available Tax Increment Year Charges (a) Expenses Revenue Principal Interest Coverage Collections Principal Interest Coverage 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 (17,837) 6,144,619 3,948,640 425,000 851,925 3.09 - - - - 2022 9,162,252 (d) (353,846) 6,327,789 2,480,617 740,000 825,133 1.58 - - - - 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 earnings ($353,846) w as caused by the reversal of the $126,162 FMV gain for FY2020-21, w hich added to the $433,912 FMV loss for FY2021-22. (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 w ere 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
206
Personal Per
Incom
e Capita
Calendar (thousands Personal Unemployment
Year Population of dollars) Income Rate
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% 2021 40,135 2,319,800 57,799 7.3% S ource: HDL 2021-22 ACFR Statistical Basic Package for City of Culver City City of Culver City
Principal Employers
Last Ten Fiscal Years
207
Employer
Number of
Employees Rank
Percentage of
T otal City
Employment
Number of
Employees Rank
Percentage of
T otal City
Employment
Sony Pictures Entertainment 3,000 1 5.04% 6,000 1 25.75% Amazon St udios 2,500 2 4.20% - - Apple 1,500 3 2.52% - -
Riot Games 1,500 3 2.52% - -
Westfield S hoppingtow n-Fox Hills 1,500 3 2.52% - - S outhern CA Hospital (Brontman Medical Ctr) 1,116 4 1.87% 860 4 3.69% Culver City Unified School District 800 5 1.34% 1,084 3 4.65% City of Culver City 786 6 1.32% 638 6 2.74%
Goldrich & Kest Indust ries, LLC 670 7 1.13% 1,100 2 4.72% Costco 516 8 0.87% - -
Sweetgreen 506 9 0.85% - - TikTok 500 10 0.84% - -
Target - - 400 8 1.72%
Security Industry Specialists - - 400 7 1.72% Symantec - - 800 5 3.43%
Kayne-Eras Center - - 300 9 1.29% Moldex-Metric - - 300 10 1.29% Total Top 10 Employers 14,894 25.02% 11,882 51.00% Total City Labor Force (1) 59,527 23,300
S ources: Culver City Finance Department and Economic Development Division 2022 2013
City of Culver City
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
208
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
General government 68 68 69 68 75 73 74 78 83 83 Parks, recreation and community services 31 31 31 31 32 33 33 33 33 33 Police 156 157 157 160 162 150 150 159 156 156 Fire 71 69 71 72 72 72 72 79 79 79 Community development 36 36 36 36 37 39 40 40 46 46 Public works 48 48 49 51 53 53 54 56 58 58 Grants operating 7 6 6 6 7 7 8 8 6 6 Internal service 41 41 42 43 43 44 44 44 37 37 Refuse 40 40 41 42 46 46 50 50 52 52 Transit 129 129 151 152 153 155 157 160 161 161 Sewer 11 11 11 11 12 12 12 12 12 12 Total 638 636 663 673 692 684 694 718 721 721 S ource: 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
209
2013 2014 2015 2016 2017
Ge
neral government
Building permits issued 2,488 2,336 2,756 3,029 2,930 Building inspections conducted 9,590 9,609 10,925 12,614 12,948 Police
Arrestees Processed 1,491 1,611 1,239 1,242 1,166 Parking citations 37,236 37,681 38,681 40,009 36,961 Traffic citations 19,027 10,028 9,003 8,981 5,347 Fire
Emergency responses 4,681 4,969 5,375 5,684 6,106 Fire Emergency Incidents 197 210 215 215 206 Commercial Fire Safety Inspections 2,653 2,742 2,810 2,800 3,032 Refuse collection
Residential Refuse & Greenwaste collected (tons per day) 42 42 43 43 43 Commercial Refuse Collected (tons per day) 143 143 130 141 105 Responses to Customer Service Requests 120 120 120 120 150 P ublic Works
Traffic Engineering Investigations 4,601 4,601 4,685 4,721 4,816 Tons of Asphalt Placed 325 325 230 207 555 Damaged Sidewalk removed/replaced (sq ft) 8,100 8,100 10,084 9,103 32,795 Trees Trimmed 3,200 3,200 4,958 4,350 3,938 Parks and recreation
Park picnic permits issued 1,300 1,276 1,026 933 1,018 Participation in Youth S ports 5,345 5,328 4,950 4,480 10,984 Participation in Adults S ports 36,800 43,766 45,456 48,312 49,572 T ransit - Municipal buses
Total service miles 1,585,103 1,589,108 1,593,248 1,658,913 1,686,317 Passengers 5,550,045 5, 416,010 4,979,334 5,653,192 5,070,970 Source: Annual Budgets and various city departments.
City of Culver City
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
210
2018 2019 2020 2021 2022
G
eneral government
Building permits issued 2,954 3,023 2,548 2,752 3,375 Building inspections conducted 12,638 14,212 14,318 11,781 10,928 Police
Arrestees Processed 2,513 1,986 1,451 947 1,005 Parking citations 41,038 39,081 28,713 11,414 13,675 Traffic citations 8,612 6,106 3,100 3,205 2,780 Fire
Emergency responses 6,857 6,753 6,505 6,236 7,159 Fire Emergency Incidents 270 221 250 299 348 Commercial Fire Safety Inspections 2,929 2,825 2,781 2,802 3,070 Refuse collection
Residential Refuse & Greenwaste collected (tons per day) 41 40 44 46 43 Commercial Refuse Collected (tons per day) 76 85 84 76 82 Responses to Customer Service Requests 150 88 83 86 75 P ublic Works
Traffic Engineering Investigations 4,782 4,800 5,202 5,420 5,435 Tons of Asphalt Placed 85 128 119 1,751 1,710 Damaged Sidewalk removed/replaced (sq ft) 3,620 4,052 2,000 13,540 1,130 Trees Trimmed 3,106 3,517 3,209 3,518 2,995 Parks and recreation
Park picnic permits issued 1,148 1,114 523 83 1,163 Participation in Youth S ports 32,333 34,021 15,601 193,186 399,155 Participation in Adults S ports 57,295 52,727 87,718 47,784 66,801 T ransit - Municipal buses
Total service miles 1,658,633 1,656,768 1,551,211 1,443,703 1,335,642 Passengers 4,864,138 4,600,876 3,388,031 1,692,993 2,267,479 Source: Annual Budgets and various city departments.
City of Culver City
Capital Asset Statistics by Function
Last Ten Fiscal Years
211
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Police
Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 25 27 21 21 23 23 28 31 28 33 Motorcycle units 11 13 14 11 11 11 7 8 8 7 Detective Units 30 34 38 38 38 38 39 32 29 29 Parking Enforcement Units 8 8 9 8 8 8 11 11 11 12 Fire stations 3 3 3 3 3 3 3 3 3 3 Refuse collection
Collection trucks 22 22 22 22 22 22 23 23 23 23 Other public works
Streets (miles) 119.6 119.6 119.6 119.6 119.6 120 120 120 120 120 Highways (miles) 2.4 2.4 2.4 2.4 2.4 2 2 2 2 2 Streetlig hts 3,596 3,596 3,596 3,596 3,661 3,653 3,654 3,655 3,681 3,681 Traffic signals 104 104 105 105 106 106 107 108 108 108 Parks and recreation
Acreage 100 100 100 100 100 100 100 92 92 92 Community parks 8 8 8 8 8 8 8 2 1 1 Neighborhood parks 6 6 6 6 6 4 4 7 10 10 Mini parks 4 4 4 4 4 2 2 5 2 2 Wastewater
Sanitary sewers (miles) 90 90 90 90 90 90 91 91 91 91 Pumping (lift) stations 7 7 7 7 7 7 7 7 7 5 Transit - Municipal buses 52 52 54 54 56 56 54 54 54 54 S ource: Various city departments
City of Culver City, California
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