FISCAL YEAR
2021 2022
Popular Annual
Financial Report
Table of Contents
Introduction
Organizational Structure
Culver City By the Numbers
Economic Outlook
Signif icant One-Time Funding
Financial Report Highlights
Capital Assets
General Fund Revenues
Revenue from Tax Measures
General Fund Expenditures
Enterprise Funds
Awards & Acknowledgments
3 4
5 6
6 7
7 8
9 10
11 12
Introduction
As part of the City’s ongoing efforts to
promote financial transparency, the City of
Culver City is pleased to present its first-ever
Popular Annual Financial Report (PAFR) for
Fiscal Year 202 1-2022.
The PAFR is intended to summarize and
clearly present the highlights of the Fiscal Year
202 1-2022 Annual Comprehensive Financial
Report (ACFR) with the goal of making City
finances more accessible to all Culver City
residents. The ACFR is available for review
on the City’s website. It is important to note
that the financial data in these reports has
been prepared in accordance with Generally
Accepted Accounting Principles (GAAP)1. The
ACFR has been independently audited by
Vasquez + Company LLP, a public accounting
firm fully licensed and qualified to perform
audits for the State and local governments
within California.
For More Information
This financial report is designed to be a useful
tool for residents interested in learning about
City finances, regardless of their background
in financial accounting and reporting. Please
contact the Culver City Finance Department
via phone at (3 10) 253-5865 or email at
[email protected], if you have any
questions, comments or suggestions regarding
the information in this report.
We thank you for your interest in the City’s
fiscal health and hope you enjoy this report.
1. Generally Accepted Accounting Principles (GAAP) –
Uniform minimum standards and guidelines for financial
accounting and reporting. They govern the form and
content of the financial statements of an entity. GAAP
encompasses the conventions, rules and procedures
necessary to define accepted accounting practice at a
particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAAP provides a standard by which to
measure financial presentations. The primary authorita- tive body on the application of GAAP to state and local governments is the Governmental Accounting Standards
Board (GASB).
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Did You Know?
Culver City is a full-service City, serving a resident population of 40, 1 35 with a business community that employs approximately 60,000 people.
The City operates under a Council-Manager form of government. The City’s five City Council Members are elected at-large and serve a four-year term. The Council Members select the Mayor and Vice Mayor among themselves, who each serve for one year at a time. The Council also appoints the City Manager, City Attorney, Police Chief and Fire Chief.
In addition, each year, the City Council appoints Commission, Board and Committee members, who support the City Council by focusing on specific issues and initiatives within the community.
Together, these governing bodies and City staff provide a range of services including police, fire, general maintenance, public improvements, planning and zoning, housing and homeless services, building plan review, economic development, refuse collection, municipal bus lines, park, recreation and community services, cultural affairs and general administrative services.
Organizational Structure
City Manager &
City Manager’s Office
City Council
Culver City Residents
City Attorney’s
Office
Police
Department
Fire
Department
Administrative
Services Finance Information
Technology
Parks, Recreation &
Community Services
Community
Development
Public Works Transportation
DEPARTMENTS
City of Culver City
Organizational Chart
5 / / 202 1 - 2022 PAFR
Culver City by the Numbers
Approximate Population
City Area
Median
Single-Family
Home Price
Annual Culver CityBus
Passengers
Median Age
Adopted Fiscal Year 2021-22 Budget
$256.4 Million
Streetlights
3,681
Traffic Signals
108
4 0 ,135 5.1 1 Square Miles
City Hall Address
9770 Culver Blvd.
Culver City, CA 90232
City Website
CulverCity.org
$1.1 25M
Approximately
2.3 Million
Personal Income
Per Capita
Adults with High
School Degree
or Higher
Building Permits Issued
$57 ,799 93.9%
3,375
42.6 years
Parks
13 Park Acres
92 Miles of Bike
Facilities
14 Fire
Stations
3 6 / / 202 1 - 2022 PAFR
In the second year of the COVID-1 9 pandemic, Culver City continued to adapt to meet the ongoing challenges. City staff worked to keep residents informed of the evolving County, State and Federal guidelines and support local businesses, both small and large. As the economy continues to recover and adjust from the impacts of the pandemic, Culver City remains committed to providing high-quality services and programs to support community needs while maintaining the City’s fiscal health.
To maintain service levels despite the uncertainty of the economies at-large, the City continued to implement conservative budget practices for Fiscal Year 202 1-2022. The City’s relatively diverse and strong local economy, along with its careful financial planning, helped the City recover more quickly from the pandemic than initially anticipated in Fiscal Year 202 1-2022.
Top Ten Employers
• Apple
• Amazon Studios
• City of Culver City
• Costco
• Culver City Unified School District
• Goldrich & Kest Industries LLC
• Riot Games
• Sony Pictures Entertainment
• Southern California Hospital
(Brontman Medical Center)
• Westfield Shoppingtown – Fox Hills
Economic Outlook
In March 2022, the City of Culver City was awarded a
$26.6 million Project Homekey grant from the State of
California for the acquisition, rehabilitation and operation of two local motels. Project Homekey is a statewide
program, administered by the California Department of
Housing and Community Development (HCD), to rapidly
expand housing for people experiencing homelessness or
at risk of homelessness through a variety of housing types, including motel repurposing.
Effective March 1 1, 202 1, Congress signed the American Rescue Plan Act (ARPA) of 202 1, which provided
approximately $9.4 million in relief funding for the City:
$4.69 million each for Fiscal Year 2020-202 1 and Fiscal Year 202 1-2022.
Signif icant One-
Time Funding
7 / / 202 1 - 2022 PAFR
Financial Report
Highlights
The City’s total net worth (or “net position”) as of June 30, 2022, including all business and government activities, increased by $85.7 million in the Fiscal Year 202 1-2022, reaching a net position of $245 million.
As of June 2022, the City’s investment
in capital assets for governmental and
business activities amounts to $299.6
million. “Capital assets” include
land, buildings and related systems,
improvements, machinery and equipment,
park facilities, roads, highways and
bridges.
The City ended Fiscal Year 202 1-2022
with $7 1.3 million of capital improvement
construction projects in progress. These
projects are designed to enhance City
infrastructure, such as:
• roads
• curbs
• storm drains
• bridges
• sidewalks
• gutters
• public facilities (parks, restrooms,
community facilities and playgrounds)
The City also made several “capital assets”
additions, including:
• vehicle replacements
• street repair and replacement
• sewer system improvements
Capital Assets
Fiscal Year
2021-2022
Net Position
$245 M
Fiscal Year
2020-2021
Net Position
$250M
$150M
$200M
$100M
$50M
$159.3 M
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General Fund Revenues
The General Fund is the chief operating fund of the City. In Fiscal Year 202 1-2022, the starting balance of the General Fund was $108.8 million and the ending balance was $1 42.9 million.
General Fund revenues primarily come from taxes and fees for City services. Sales Tax is Culver City’s single-largest revenue source with 27% of revenue coming from both residents and non-Culver City residents. Other tax revenues include business tax, property tax, utility users tax (UUT), real property transfer tax and transient occupancy tax (TOT).
Revenue Highlights
Sales Tax receipts recovered more quickly
than predicted during the pandemic and
generated a total of $43.4 million in Fiscal
Year 202 1-2022. This includes the City’s
portion of the State’s sales tax and the two
voter-approved local sales tax measures.
In April 201 2, Culver City voters approved
an increase of the City’s TOT from 1 2% to
1 4%, which generated $8.8 million in Fiscal
Year 202 1-2022.
In Fiscal Year 2020-202 1, TOT revenue
deteriorated by 5 1.6% over the prior year
due to recommended COVID-related travel
restrictions. The lifting of travel restrictions
and the opening of the Shay Hotel in
October 202 1 resulted in TOT revenue
rebounding in Fiscal Year 202 1-2022 and
surpassing revenues received prior to the
pandemic.
Revenue Stream Amount (in Millions)
Property Tax $1 2.9
Property Transfer Tax $32.6
Sales Tax $43.4
Business Tax $1 6.2
Utility Users Tax $1 4.9
Transient Occupancy Tax $8.8
Licenses and Permits $5.6
Intergovernmental $1 1.4
Charges for Services $1 2.4
Other $4.4
Total $162.6
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Revenue from Tax Measures
The City experienced higher-than-expected revenue from several recent tax measures. These revenues are part of the General Fund and can be used for any valid General City purpose, such as emergency response, maintaining parks and addressing homelessness.
First Full-Year in Effect
In November 2020, voters approved
Measure RE which established marginal tax
rates for the City’s real estate transfer tax,
effective April 1, 202 1. The City projected to
receive $1 4 million in Fiscal Year 202 1-2022
from Measure RE; it actually received $32.6
million. Almost 50% of this revenue was
generated by one commercial property sale.
This revenue can vary greatly in any given
year and is difficult to predict.
Voters Approved Measure CC
Extending Measure Y
In November 201 2, voters approved
Measure Y: a half-cent transaction and use
tax. Measure Y became effective in April
201 3 and was set to expire in 10 years. It
generated $1 1.4 million in Fiscal Year 202 1-
2022. In March 2020, voters approved
Measure CC extending the tax until
March 3 1, 2033.
Measure A Cannabis Business Tax
In April 201 8, voters approved a Cannabis
Business Tax measure that set tax rates
for cannabis retail, manufacturing and
distribution. It generated $1.9 million in Fiscal
Year 202 1-2022, almost $1.6 million higher
than two years earlier.
Measure C Going on 4th Year
In November 201 8, voters approved
Measure C: a quarter-cent sales tax.
Measure C generated a total of $5.6 million
in Fiscal Year 202 1-2022.
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General Fund Expenditures
The City’s General Fund Expenditures totaled $1 24.0 million in Fiscal Year 202 1-2022. These expenditures include many essential services: public safety, parks and recreation and community services, community development and public works.
To protect the City from the anticipated ongoing financial impacts of the pandemic, the City reduced the expenditure budget for Fiscal Year 202 1-2022. These reductions, along with higher-than-expected tax revenues, have allowed the City to maintain healthy General Fund reserves. By mid-Fiscal Year 202 1-2022, it was clear that the City’s revenues were recovering more quickly than anticipated. Based on the these improved revenues, the Adopted Budget for FY 2022/23 restores staff positions and most programming to pre-pandemic levels.
Revenue Stream Amount (in Millions)
General Government $1 7 .7
Fire Department $27 .6
Parks, Recreation & Community Services $9.9
Police Department $45.0
Public Works $1 4.0
Community Development $9.4
Capital Outlay $0.4
Total $1 24.0
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Enterprise Funds
Cities use “proprietary funds” to account for the maintenance operation and capital assets of fee-based good and services.
One type of proprietary fund is an “Enterprise Fund.” These funds are intended to be entirely self-supporting. Culver City has four Enterprise Funds: Municipal Bus Lines, Refuse Disposal, Sewer Enterprise and Municipal Fiber Network to account for the operation and capital assets of these business-type activities.
Municipal Bus Lines
This Enterprise Fund includes the Culver CityBus and is the City’s largest Enterprise Fund. Culver CityBus is the second-oldest municipal-owned bus line in the State of California. Municipal bus operations are mainly funded by operating and capital grants and contributions from federal and county sources, in addition to fare revenues. Like many municipal bus lines, Culver CityBus has grappled with the impacts of COVID-1 9 on ridership in recent years but is showing signs of gradual recovery.
Sewer Enterprise
The Sewer Enterprise’s largest annual operating expense is the payment to the City of Los Angeles for the City’s use of the Hyperion Treatment Plant and Los Angeles sewer transmission lines. The primary source of revenue for the Sewer Fund is Sewer Users’ Services charges. In Fiscal Year 202 1-2022, the $1 4 million Sewer Diversion project completed. As a result, the Mesmer and Overland Sewer Pump Stations have been decommissioned.
Refuse Disposal
Refuse Disposal is the second-largest Enterprise Fund. It includes 23 refuse collection trucks and is responsible for collecting an average of 43 tons of residential refuse and greenwaste and 82 tons of commercial refuse daily. In Fiscal Year 202 1-2022, Refuse Disposal operating expenses increased by $0.88 million from increased contractual services.
Municipal Fiber Network
In November 201 5, the City Council approved a new Municipal Fiber Network enterprise fund. Funding for this project, known as Culver Connect, 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 202 1-2022, the fund’s net position increased by $1.03 million.
The total net position of these funds increased by $1.68 million during the year ended June 30, 2022.
Have
Feedback?
Please contact the Culver City
Finance Department via phone at
(3 10) 253-5865 or email us at
[email protected] with
questions, comments or suggestions
regarding the information in this
report. Additionally, you may review
the City’s other Financial & Investment
Reports on the City website.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) of the United States and Canada 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, 202 1. This marks the 37th consecutive year that the City received this prestigious award.
In order to receive the Certificate of Achievement award, a government must publish an easily readable and efficiently organized comprehensive financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements.
The Certificate of Achievement is valid for a period of one year only. The City believes that the current annual comprehensive 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.