CITY OF CULVER CITY,
CALIFORNA
Annual
Comprehensive
Financial
Report
For the Fiscal Year Ended
June 30, 2023
City of Culver City, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
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, 2023
Table of Contents
i
PAGE
INTRODUCTORY SECTION (Unaudited)
Table of Contents i
Letter of Transmittal v
Officials of the City of Culver City, California xxiii
Organization Chart xxiv
GFOA Certificate of Achievement for Excellence in Financial Reporting xxv
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, 2023
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 120
CalPERS Safety Plan 122
Schedule of Contributions – Pensions
CalPERS Miscellaneous Plan 124
CalPERS Safety Plan 126
Schedule of Changes in Net OPEB Liabilities and Related Ratios 128 Schedule of Contributions – OPEB 130
Budgetary Comparison Schedule:
General Fund 132
Culver City Housing Authority Special Revenue Fund 133
Note to the Required Supplementary Information (Unaudited) Budgetary Comparison Schedule 134
Supplementary Information:
Nonmajor Governmental Funds:
Combining Balance Sheet 136
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 137
Nonmajor Special Revenue Funds:
Combining Balance Sheet 140
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 144 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Gas Tax Special Revenue Fund 148
Proposition A Local Return Special Revenue Fund 149
Proposition C Local Return Special Revenue Fund 150
Measure R Special Revenue Fund 151
Operating Grants Special Revenue Fund 152
Section 8 Housing Special Revenue Fund 153
Art in Public Places Special Revenue Fund 154
Community Development Special Revenue Fund 155
Community Development Block Grant (CDBG) Special Revenue Fund 156 Special Assessment Special Revenue Fund 157
Park Facilities Special Revenue Fund 158
Asset Seizure Special Revenue Fund 159
Parking Authority Special Revenue Fund 160
Safe/Clean Water Protection Special Revenue Fund 161
City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2023
Table of Contents
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PAGE
FINANCIAL SECTION (Continued)
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 162
Building Surcharge Special Revenue Fund 163
Paratransit Special Revenue Fund 164
Measure M Special Revenue Fund 165
AQMD 166
Board of State and Community Corrections Special Revenue Fund 167 Mobility Improvement Special Revenue Fund 168
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 170 Capital Improvement Grants Capital Projects Fund 171
Nonmajor Capital Projects Funds:
Combining Balance Sheet 172
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 173 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Cooperative Projects Capital Projects Fund 174
CDBG Capital Projects Fund 175
Internal Service Funds:
Combining Statement of Net Position 177
Combining Statement of Changes in Net Position 179
Combining Statement of Cash Flows 180
Custodial Fund Financial Statements:
Combining Statement of Fiduciary Net Position 183
Combining Statement of Changes in Fiduciary Net Position 184
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents 186
Net Position by Component 187
Changes in Net Position 189
Program Revenues by Revenue Function 193
Fund Balances, Governmental Funds 195
City of Culver City
Comprehensive Annual Financial Report
For the Year Ended June 30, 2023
Table of Contents
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PAGE
STATISTICAL SECTION (Unaudited) (Continued)
Changes in Fund Balances, Governmental Funds 197
Tax Revenues by Source 199
Assessed Value and Estimated Actual Value of Taxable Property 201 Direct and Overlapping Property Tax Rates 202
Principal Property Taxpayers 203
Property Tax Levies and Collections 204
Ratios of Outstanding Debt by Type 205
Direct and Overlapping Governmental Activities Debt 206 Legal Debt Margin Information 207
Pledged-Revenue Coverage 209
Demographic and Economic Statistics 210
Principal Employers 211
Full-Time Equivalent City Government Employees by Function/Program 212 Operating Indicators by Function 213
Capital Asset Statistics by Function 215
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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February 20, 2024
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, 2023. 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 accurate 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 Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management's representations concerning the finances of the City of Culver City, California. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, the 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 City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will b e 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 and 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, 2023, 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 a udit 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, 2023, 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 in 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. 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 Culver City Housing Authority and Culver City Parking Authority, which are blended into the City’s financial statements.
Pursuant to legislation enacted by the State, the Rede velopment Agency was dissolved in January 2012.
Additional information on all of these entities can be found in Note 1 of the Notes to the Financial Statements. Additional information on the dissolution of the Redevelopment Agency can be found in Note 18 of the Notes to the Financial Statements.
The level of appropriated budgetary control is the total adopted budget, which is defined as the total budget for all funds and divisions and includes all revisions and 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.
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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 Macha do arrived in California along with his wife. Machado eventually completed his military duty and retired with his family to the pueblo in 1797. After Machado's death in 1810, two of his sons, José Agustín and José Ygnacio joined Felipe Talamantes and his son Tomás to graze cattle to the west, where they claimed the 14,000-acre Rancho La Ballona. By 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 St udios, 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 dedicated at 9770 Culver Boulevard. That original structure was eventually replaced by the current City Hall which 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 restaurants 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.
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 enforceab le obligations that were incurred prior to June 26, 2011. Any property tax increment in excess of the former 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 Property 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 re ferred 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 significantly impacted by the COVID-19 pandemic, and construction is paused pending design modifications relative to current market conditions. In September 2023, the City completed the purchase of the former Martin B. Retting Gun Store at 11029 Washington Blvd using Successor Agency funds in addition to General funds. A community outreach process will take place to determine the future use of the property.
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 larger environment within which the City of Culver City, California operates.
Nationally, reports demonstrate modest economic growth with signs of economic softening after the larger than expected post-pandemic growth.
As part of the Federal Reserve’s ongoing attempt to address the relatively high inflation rates that the country has experienced coming out of COVID -19 pandemic and achieve maximum employment and inflation at the rate of 2% over the longer run, the Federal Reserve consistently raised the federal funds rate through most of 2022 and 2023 to its highest levels in over 2 decades. On December 13, 2023, the Federal Reserve reported that inflation has eased over the past year but remains elevated and decided to maintain
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the target range for the federal funds rate at 5.25% to 5.5% percent . Going forward, the Federal Reserve indicated that it will consider lowering interest rates in 2024. On January 11, 2024, the Bureau of Labor Statistics reported that the U.S. Consumer Price Index (CPI) for all items increased 3.4 percent for the 12 months ending December 2023. By comparison, the annual CPI gain in December 2022 was approximately
6.4%. The downward trend in inflation is expected to continue through 2024.
On December 21, 2023, the Bureau of Economic Analysis estimated that real gross domestic product (GDP) increased at an annual rate of 4.9 percent in the third quarter of 2023, after increasing 2.1 percent in the second quarter. In November 2023, the S&P Global Ratings forecasted that the US economy will expand by 1.5% in 2024 and 1.4% in 2025.
The geopolitical climate continues to pose uncertainty for the economic outlook. There are several developments that could greatly impact the global and national economy including the outbreak of war between Israel and Hamas and the potential escalation of war in the Middle East, the ongoing war between Ukraine and Russia, China’s weakening economy, trade tensions, and disruptions to historical trade routes through the Suez Canal and the Panama Canal creating new supply chain challenges. City staff will continue to monitor these conditions and their potential impact on the economy.
In addition to these international concerns, domestic issues such as the national debt, Congressional debates over the debt ceiling , and the status of the commercial real estate sector put pressure on the national economy. In California, the Legislative Analyst’s Office (LAO), a nonpartisan fiscal and policy advisor to the California legislature, published its Fiscal Outlook for Fisca l Year 2024- 2025 in December 2023 indicating that the state is facing a $68 billion budget deficit as a result of a severe revenue decline.
Governor Newsom is recommending significant budget cuts in Fiscal Year 2024-2025 to address a deficit of $38 billion, which is less than the deficit projected by the LAO. Staff will continue to watch the developments of the State budget and their potential impacts on the City.
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 large and notable companies, including Apple and Amazon, have expanded their local footprint in recent years 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. The entertainment industry which has historically thrived in Culver City was impacted in 2023 by the long-lasting strikes of both the Writer’s Guild of America’s strike and Screen Actor’s Guild-American Federation of Television and Radio Artists. The impact of these strikes will continue to be felt in the City’s business tax revenue in subsequent fiscal years.
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Sales tax receipts indicated that the local restaurant sector rebounded more strongly and quickly than anticipated after the initial pandemic shutdown. In the summer of 2023, restaurant sales tax revenues softened after this higher than anticipated surge. This decrease can be attributed in part to the Writers’ and Actors’ strikes. In addition to its restaurant sector, the City has over a dozen hotels. A new hotel, The Shay, opened during the 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. In Fiscal Year 2022-2023, TOT revenues surpassed pre -pandemic levels and are projected to remain strong through the current fiscal year.
Culver City is navigating the changes in the newly regulated cannabis 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. Robust sales in the cannabis industry declined sharply at the end of the pandemic. Cannabis tax received in Fiscal Year 2022-2023 declined by over $640,000 to approximately $1.3 million. In October 2023, the City Council reduced the tax rate for Cannabis Distribution Tax from 2% to 0% starting January 1, 2024. This will further reduce this revenue source.
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 t ransaction 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 the 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.
In 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 on 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 anticipated 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.
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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 the calendar year 2024. The City anticipate d receiving up to $8 million in additional revenue annually as a result of Measure BL. The City will start receiving business tax payments under Measure BL in Fiscal Year 2023-2024.
Fiscal Year 2022-2023 Budget
The Adopted Budget for Fiscal Year 2022- 2023 restored staff positions and most programming to pre - pandemic levels and included certain new and one -time expenditures. In response to the COVID -19 pandemic, the City had previously implemented budget cuts in F iscal Year 2020 -2021 and Fiscal 2021- 2022. After receiving higher than anticipated revenues for two consecutive years, the City approved an increased General Fund Budget. The City’s new ongoing expenditures mostly reflect the City’s increased commitment to addressing issues related to housing and homelessness in the City.
All of the City’s operations 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 26.7% of total General Fund revenue for Fiscal Year 2022-2023. 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) . The City’s sales tax and Measure C/CC receipts decreased in Fiscal Year 2022- 2023 due to inflation and softening gas prices.
Bradley-Burns sales tax accounted for 15.5% of General Fund revenue for Fiscal Year 2022-2023, closing the year at $24.7 million. With Measure Y (now Measure CC) taking effect in April 2013, Fiscal Year 2022-2023 was the tenth full -year of the local sales tax measure with receipts totaling $ 11.5 million, accounting for 7.2% of General Fund revenue. With Measure C taking effect in April 2019, the receipts totaled $5.7 million in Fiscal Year 2022-2023 accounting for 3.6% of General Fund revenue.
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Business Tax
Business Tax revenue accounts for approximately 11.8 % 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 business’ s gross receipts, which is a measure of the amount of business they do in the City.
Fiscal Year 2022-2023 Business Tax receipts, including penalties, were $18.7 million, an increase of 15.5% from the previous fiscal year. The Business Tax revenues have come in higher than anticipated due to successful efforts to get delinquent businesses into compliance.
The Cannabis Business Tax received was approximately $1.3 million and is $ 641,000 lower than the previous fiscal year. Cannabis businesses throughout California have seen declines in revenue after the end of the pandemic.
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 went into effect for new businesses registering in the City on April 1, 2023. Existing businesses will pay the new rates with their renewals for the calendar year 2024.
The new rates are projected to yield up to $8 million in additional revenue starting in Fiscal Year 2023- 2024.
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Utility User Tax
Utility User Tax receipts make up approximately 10.4% 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 l ess impact on UUTs because users still need electricity, natural gas, water, etc. but changes in energy prices and conservation efforts can still have an effect. After a period of decline starting in Fiscal Year 2015-2016, UUT revenues have been increasing for the past two fiscal years.
UUT receipts for Fiscal Year 2022-2023 were $16.5 million, an 11.2% increase from the prior fiscal year.
Electricity and Gas revenues increased due to higher energy rates , while Water , Cable and Telecommunications declined slightly. Telecommunications UUT revenue has been declining due to land lines being on a sharp decline and an exponential increase in cell phones with competitive cell phone plans.
Water conservation efforts resulted in the decline in Water UUT.
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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 of that year. 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 continued to grow and reached almost $12.0 million in Fiscal Year 202 2-2023. TOT receipts have remained strong in the first half of the current fiscal year.
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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. P roperty taxes account for about 9.3% of General Fund revenues in Fiscal Year 2022 - 2023. 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 twenty cities with the highest dollar amount change in assessed value in Los Angeles County. Assessed value grew over $900 million to approximately $16.5 billion.
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 2022-2023 at $6.6 million, an increase of 4.2% over the prior fiscal year revenues.
Additionally, the City received $8.1 million in property tax increment from the former Culver City Redevelopment Agency. This funding is from additional property tax increment received when the amount of property tax collected in the former Redevelopment Agency project areas exceeds the amount of enforceable obligations. In the past, this amount varied as financial obligations were paid off. The wind- down of the former Redevelopment Agency is moving closer to completion, and the amount of property tax increment is increasing . Revenue increased in Fiscal Year 2022 -2023 by $1.6 million over the prior year, representing a 23.8% increase from Fiscal Year 2021-2022.
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
In Millions
Property Tax
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Real Property Transfer Tax
Real Property Transfer Tax is a mercurial 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 marked the first full fiscal year where the new stepped tax rates were in place. Revenues for Fiscal Year 2021-2022 were $32.6 million. This high number included a 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.
By the end of calendar year 2022, home sales slowed and prices softened significantly due to rising interest rates and other economic stressors. For Fiscal Year 2022 -2023, revenues did not meet even the revised budget projections. Real Property Transfer Ta x revenues were $9.7 million. This revenue source is projected to remain low in the current fiscal year as the number of property transactions is still suppressed.
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
In Millions
Real Property Transfer Tax
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Total Major Tax Revenues
The chart below depicts the City’s top five tax revenue sources for the last ten years. The sales tax line represents the City’s total Sales Tax receipts from Bradly Burns, Measure Y/CC and Measure C and makes up the City’s largest tax revenue source. Measure C took effect in April 2019 adding an additional quarter- cent sales tax and increasing the City’s total Sales Tax receipts from Fiscal Year 2019-2020 forward. Sales Tax revenue increased as consumer spending recovered quickly after the pandemic but, more recently, has softened due to inflation and gas prices . As a result, the City’s Sales Tax revenue decreased in the Fiscal Year 2022-2023. In the last five years, Business Tax has emerged to be the City’s second highest revenue source followed closely by Utility User Tax (UUT). Business Tax revenues increased slightly in Fiscal Year 2021-2022 aided by additional Cannabis Business Tax. Cannabis Business Tax revenues fell in Fiscal Year 2022-2023, but Business Tax revenue increased overall due to increased compliance. UUT revenue had been trending downward, due mostly to declines in Telecommunications and Cable TV Utility Users Tax revenues in response to changing technologies until Fiscal Year 2021-2022. More recently, increases in utility rates contributed to higher UUT revenues. Property Tax ha s grown over the past decade as Assessed Property values in the City have grown and the former Redevelopment Agency debts are paid down. Transient Occupancy Taxes (TOT) demonstrated a steady upward trend until Fiscal Year 2018-2019 with declines in Fiscal Year 2019- 2020 due to the impacts of the COVID- 19 pandemic. T OT revenues rebounded to pre-pandemic levels in Fiscal Year 2021-2022 with the lifting of travel restrictions and the opening of a new hotel within the City. TOT has continued to increase in Fiscal Year 2022-2023.
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General Fund Expenditures
During the prior two fiscal years General Fund expenditures were reduced as a result of the combined efforts of the City Manager and Department Heads to make significant budget cuts in response to the COVID-19 pandemic. Expense containment measures included the elimination of OPEB prefunding, the 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. Due to the large number of vacancies, it has taken time to recruit and onboard new staff, and, as a result, personnel costs were lower in Fiscal Year 2021-2022 than projected and increased in Fiscal Year 2022-2023. In Fiscal Year 2021- 2022 and Fiscal Year 2022- 2023, General Government expenditures included a $5 million and $2 million contribution, respectively, to the City’s Self -Insurance Fund in accordance with existing policy requirements. This is evident in the larger grey band on the bar graph in Fiscal Year 2021-2022 and Fiscal Year 2022-2023.
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
In Millions
General Fund Expenditures
Public Works Community Development Fire
Police PR&CS General Government
xx
Continued Investments in Housing and Human Services in Fiscal Year 2022-2023
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 P roject 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, a nd construction was completed in September 2023. The City has committed $4.9 million annually from the General Fund for Project Homekey staffing, operations and services.
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.
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 J anuary 3, 2023. During Fiscal Year 2022-2023, the City began work to develop a transitional housing safe sleep program to further expand the City’s response to the local homelessness emergency. The Safe Sleep Program was launched in August 2023.
These new and ongoing expenses are reflected in Fiscal Year 2022- 2023 expenditures. Expenditures for these ventures continue in the current fiscal year.
Ongoing Retirement Costs
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 significant investment losses after the COVID -19 pandemic that reduced the funded status of the plans. As of June 30, 2022, the UAL for Culver City was $196.2 million for the Safety Plan and $126.8 million for the Miscellaneous Plan. These losses will continue to be absorbed by cities, counties and school districts in the years to come.
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 several sources that more than offset the declines in others. Additionally, staff costs were underspent due to vacant staff positions that had not yet been filled. As of June 30, 2023, the City has established committed General Fund balances of $ 50.5 million for contingencies/emergencies, $23.6 million for future facility improvements /replacements and $ 2.2 million for recre ational facility
xxi
improvements. In June 2023, the City Council approved the addition of a new committed reserve, the Public Safety Equipment Reserve, which was funded for the first time at $194,140. The City’s restricted Pension fund balance ended the fiscal year with a balance of $29.6 million. This reserve can offset pension costs in future years. Beyond these committed amounts, the City has an additional $24.8 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 2023- 2024 Adopted Budget is a long-term forecast through Fiscal Year 2032-2033. 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 when feasible while concurrently exploring additional revenue opportunities.
In addition to the continued implementation of Project Homekey and the Mobile Crisis Intervention Unit that the City Council approved in Fiscal Year 2021-2022, the City fast-tracked the development of a safe- camping site for homeless individuals on a City-owned parking lot which opened in August 2023. Further, in July 2023, the City approved a pilot hotel/motel leasing program whereby the City will rent out two local hotels/motels to expand transitionary housing options for unhoused residents . Th ese programs will be service-rich operations and will require significant resources to execute and staff properly. Future budgets will attempt to balance the ongoing costs for these community services with the other growing service needs in the City.
Awards 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, 2022. This was the thirty-eighth 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.
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.
xxii
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
Albert Vera, Mayor
Yasmine-Imani McMorrin, Vice Mayor
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Daniel O'Brien
Freddy Puza
xxiii
Administration
John Nachbar
Onyx Jones
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Lisa Soghor
Michele Williams
Diana Chang
Heather Baker
Kenneth Powell
Tevis Barnes
Dana Anderson
Armando Abrego
Mark Muenzer
Jason Sims
Yanni Demitri
City Manager
Assistant City Manager
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Chief Financial Officer
Chief Information Officer
Chief Transportation Officer
City Attorney
Fire Chief
Housing & Human Services Director
Human Resources Director
Parks, Recreation &
Community Services Director
Planning & Development Director
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Public Works Director
COMMUNITY
SERVICES
PARKS
RECREATION
SERVICES
LEGAL ADVISOR
LITIGATION
LIABILITY
HUMAN
RESOURCES
RISK
MANAGEMENT
SUPPRESSION
EMERGENCY MEDICAL
SERVICES
EMERGENCY PREPAREDNESS
COMMUNITY RISK
REDUCTION
COMMUNICATIONS
TRANSIT OPERATIONS
FLEET SERVICES
PARATRANSIT
ENGINEERING
MAINTENANCE
OPERATIONS
ENVIRONMENTAL
PROGRAMS &
OPERATIONS
MOBILITY &
TRAFFIC
ADMINISTRATION
BUREAU
PATROL OPERATIONS
BUREAU
SPECIAL OPERATIONS
BUREAU
ELECTORATE
CITY
ATTORNEY
CITY COUNCIL
CITY
MANAGER
HUMAN
RESOURCES
PUBLIC
WORKS
TRANSPORTATION
FIRE
PARKS, RECREATION
& COMMUNITY
SERVICES
POLICE
HOUSING
ENFORCEMENT
SERVICES
HUMAN SERVICES
RENT STABILIZATION
& TENANT
PROTECTIONS
HOUSING &
HUMAN SERVICES
GRAPHIC SERVICES
PUBLIC SAFETY
TECHNOLOGY
SUPPORT
SYSTEMS & NETWORK
INFRASTRUCTURE
SUPPORT
INFORMATION
TECHNOLOGY
ACCOUNTING
BUDGET &
FINANCE
PAYROLL
PURCHASING
TREASURY
FINANCE
INTERNAL
AUDIT
ECONOMIC &
CULTURAL
DEVELOPMENT
CITY
CLERK
ADVANCE
PLANNING
BUILDING SAFETY
CURRENT
PLANNING
PLANNING &
DEVELOPMENT
CITY OF CULVER CITY, CALIFORNIA
OVERVIEW ORGANIZATIONAL CHART
FISCAL YEAR 2022-2023
xxiv
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, 2022
Executive Director/CEO
xxv
City of Culver City, California
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
City of Culver City, California
Report on the Audit of the Financial Statements
Opinions
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, 2023, 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 f und information of the City of Culver City, California, as of June 30, 2023, 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 Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the 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 Note 1, the City implemented the provisions of Governmental Accounting Standards Board Statement No. 96, Subscription Based Information Technology Arrangements, during the fiscal year ended June 30, 2023. 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 h igh 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 m aterial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 120 through 133 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise 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 February 20, 2024 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
February 20, 2024
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, 2023
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, 2023 . 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 2022 -2023 by $277.3 million ( net position). Of this amount, $307.3 million is net investment in capital assets, $134.1 million is restricted and ($164.1) million is unrestricted deficit. The City’s unrestricted net position was negatively impacted with the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which required the City to record its unfunded pension 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 $29.8 million in Fiscal Year 2022- 2023. Of the $29.8 million increase, $26.3 million increase was from governmental activities and $3.4 million was from business-type activities.
• As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $254.5 million. Approximately 8.4% of the current year amount or $21.5 million is unassigned and available fund balance.
• At the end of Fiscal Year 2022-2023, the unrestricted fund balance (the total of committed, assigned and unassigned components of fund balance) for the General Fund was $108.1 million, or approximately 80.0% of total General Fund expenditures of $135.2 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 Financial 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 ta xes 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, 2023
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 p rogram 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 pertaining 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 Authori ty. 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 tha t 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, 2023
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 modif ied 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 liability 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 136-175.
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 re venues, 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, the 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 accounting 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 deta iled, 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 used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its 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, 2023
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 118.
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 $277.3 million at June 30, 2023.
Approximately 110.8% 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 48.4% 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, 2023
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 ($164.1) million.
2023 2022 2023 2022 2023 2022
Assets:
Current and other assets $ 300,710 $ 298,332 $ 30,577 $ 25,059 $ 331,287 $ 323,391 Capital assets 231,853 196,867 98,237 102,765 330,090 299,632 Total assets 532,563 495,199 128,814 127,824 661,377 623,023 Def er r ed Outf low s of Resour ces :
Pension and OPEB-related amounts 68,022 33,725 11,371 4,738 79,393 38,463 Total deferred outflows of resources 68,022 33,725 11,371 4,738 79,393 38,463 Liabilities:
Current and other liabilities 30,932 35,797 10,945 11,181 41,877 46,978 Long-term liabilities 333,259 233,186 67,265 53,054 400,524 286,240 364,191 268,983 78,210 64,235 442,401 333,218 Def er r ed Inf low s of Resour ces :
Leases 746 644 96 245 842 889 Pension and OPEB-related amounts 17,035 69,516 3,202 12,819 20,237 82,335 Tota l def er r ed inf low s of r esour ces 17,781 70,160 3,298 13,064 21,079 83,224 Net Position:
Net investment in capital assets 230,122 196,552 77,149 80,731 307,271 277,283 Restricted 134,130 123,084 - - 134,130 123,084 Unrestricted (145,639) (129,855) (18,472) (25,468) (164,111) (155,323) Total net position $ 218,613 $ 189,781 $ 58,677 $ 55,263 $ 277,290 $ 245,044 Statement of Net Position
TotalBusiness-Type ActivitiesGovernmental Activities
(In Thousands)
As of June 30, 2023 and 2022
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
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, 2023, total net position increased by $29.8 million.
The following table summarizes the Statement of Activities for Governmental Activities and Business- Type Activities for the fiscal year ended June 30, 202 3, with comparative totals for the fiscal year ended June 30, 2022.
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues:
Charges for services $ 28,169 $ 31,147 $ 33,678 $ 32,650 $ 61,847 $ 63,797 Operating grants and contributions 23,961 24,418 28,915 19,387 52,876 43,805 Capital grants and contributions 6,524 33,717 928 4,821 7,452 38,538 General revenues:
Taxes 116,350 132,172 - - 116,350 132,172 Investment (losses) earnings 6,079 (3,306) 338 (622) 6,417 (3,928) Other 2,622 579 2 15 2,624 594 Tota l r evenues 183,705 218,727 63,861 56,251 247,566 274,978 Expenses:
General government 23,479 12,169 - - 23,479 12,169 Parks, recreation and community services 11,030 10,674 - - 11,030 10,674 P olice 50,963 46,143 - - 50,963 46,143 Fire 32,295 28,487 - - 32,295 28,487 Community development 17,197 16,132 - - 17,197 16,132 Public works 20,656 16,925 - - 20,656 16,925 Transportation 419 374 - - 419 374 Capital outlay - - - - - - Refuse disposal - - 17,632 16,314 17,632 16,314 Municipal bus lines - - 31,534 28,601 31,534 28,601 Sewer enterprise - - 9,638 8,761 9,638 8,761 Municipal fiber network - - 2,319 2,025 2,319 2,025 Internal service fund allocation to BTA - - 641 (922) 641 (922) Tota l expenses 156,039 130,904 61,764 54,779 217,803 185,683 Excess (def iciency ) bef or e tr a nsf er s 27,666 87,823 2,097 1,472 29,763 89,295 Transfers (1,317) (1,130) 1,317 1,130 - - Change in net position 26,349 86,693 3,414 2,602 29,763 89,295 Net position - beginning of year, as restated 192,264 103,088 55,263 52,661 247,527 141,343 Net position - end of year $ 218,613 $ 189,781 $ 58,677 $ 55,263 $ 277,290 $ 230,638 Note: 2023 beginning net position balance of the governmental activities was restated.
Governmental Activities Business-Type Activities Total
Statement of Activities
Years ended June 30, 2023 and 2022
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
11 Governmental Activities
The City’s net position from governmental activities increased approximately $26.3 million accounting for
88.5% 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 $183.7 million. The largest component of total revenue is taxes at $116.4 million, making up 63.3% 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 ($24.4 million), sales tax ($42.4 million), business tax ($18.7 million), utility users’ tax ($16.5 million), and transient occupancy tax ($12.0 million). Some of the key changes in revenues are:
• Capital and Operating Grants and Contributions decreased by $27.7 million, primarily due to decrease in reimbursable capital and operating grant expenditures in Fiscal Year 2022-2023.
• The City’s Bradley-Burns Uniform Local sales tax and Measure C/CC receipts decreased by $1.0 million in Fiscal Year 2022- 2023. Sales tax revenues were slightly lower than expected due to consumer behavior changes post -pandemic as federal stimulus money waned and inflation remained high. The slowdown in sales tax will continue in the upcoming fiscal year, resulting in a decrease in anticipated revenues in Fiscal Year 2023-2024
• 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 decreased by $21.1 million largely due to the significant decrease of real property transfer taxes by $22.9 million from Fiscal Year 2021-2022. The real property transfer tax revenues were $32.6 million in F iscal Year 2021- 2022, which included the sale of one large commercial property in March 2022. High interest rates in Fiscal Year 2022-2023 contributed to a decrease in the number of property sales in Culver City thereby significantly reducing revenue from real property transfer tax. An increase to the tax increment of the former Redevelopment Agency slightly offset the declines from real property transfer tax. As the enforceable obligations of the former Redevelopment Agency are paid off, the tax increment will continue to increase.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
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 $116.4 million or 63% of total governmental revenue.
Operating and capital grants make up 17% of revenues, charges for services amount to 15%, and other revenues and investment earnings add up to 5% of total governmental revenues.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
13 Expense Highlights
Functional expenses for the year totaled approximately $156.0 million in the governmental funds, an increase of $25.1 million over the prior year due to an increase of $11.3 million for General Government expenses, aided by increases in Public Safety of $8.6 million, Parks and Recreation of $0.35 million, Community Development of $1.1 million, Public Works of $3.7 million, and Transportation of $0.05 million,). This overall increase resulted from restoring staff positions and most programming to pre - pandemic levels in Fiscal Year 2022-2023.
Public Safety activities expended approximately $83.3 million (53.4%) 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 $20.6 million, C ommunity Development $17.2 million, and Parks, Recreation and Community services $11.0 million, and Transportation $0.4 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 $23.5 million (15%).
Business-Type Activities
The City’s business-type activities reported a $3.4 million increase in net position, largely resulting from higher charges for services and increased 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.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
14 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 2022-2023, net position increased by $0.1 million.
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 2023-2024.
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, 2023, were $63.5 million which increased by $7.6 million from the prior fiscal year. The change is primarily attributed to $11.6 million increase in operating grants in Municipal Bus Lines.
Expense Highlights
Municipal Bus Line operating expenses increased by $2.9 million, or 10.3%, from increased pension and OPEB expenses. Refuse Disposal operating expenses increased by $1.3 million from increased contractual services.
Business-type Activities
Expenses and Program Revenues
For the Fiscal Years Ended June 30, 2023 and 2022
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
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.
Unassigned fund balance may serve as a usef ul measure of a government’s net resources available for spending at the end of the fiscal year.
On June 30, 2023, the City’s governmental funds reported a combined ending fund balance of $254.5 million, a decrease of $4.5 million in comparison with the prior year. Decreased overall revenues of $(39.8) million are comprised of the following reduced revenues: $(15.8) million in taxes, $(2.2) million in licenses and permits, $(31.7) million in intergovernmental, $(3.1) million in charges for services ) only partially offset by increases of $1.7 million in fines and forfeitures, $9.2 million in investment and $2.1 miscellaneous. Increases in expenditures of $40 million: $0.2 million in general government and $28.2 million in capital outlay, $8.7 million in police and fire, $0.4 million in parks and recreation services, $0.8 million in public works and in transportation, $1.4 million in community development, and interest & principal payment on leases of $0.3 million. Of the total $254.5 million fund balance, $15.6 million was non-spendable, $134.1 million was restricted, $76.5 million was committed, $6.8 million was assigned, and $21.5 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 $10.4 million in fund balance for Fiscal Year 2022-2023, primarily due to increase of $7.8 million in investment earnings. As per Note 15, $6.8 million of the total increase has been assigned for contracts and purchase orders of committed projects in the General Fund. There is $153.4 million total in fund balance as of June 30, 2023.
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 2022- 2023 fiscal year, project expenditures outpaced revenues and transfers by $8.9 million for this fund, largely due to increased expenditures to provide permanent supportive housing for homeless individuals in Culver City.
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 $3.9 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, 2023
16 Capital Improvement Grants
This fund is used to account for grant funds awarded to the City by federal, state, and local grant agencies for capital improvements, and the qualified expenditures of those restricted funds. Project expenditures outpaced revenues by $24.6 million largely due to increased emergency shelter and transitional housing expenditures in Fiscal Year 2022-2023 funded by grant revenues received in the prior year.
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 $(0.5) million, $22.8 million, $47.8 million, and $(8.1) million respectively. Total net position of these funds increased by $4.1 million during the year ended June 30, 2023. Refuse Disposal, Municipal Bus Lines, Sewer Enterprise and Municipal Fiber Network funds’ net position increased by $2.6 million, $1.7 million, $(0.5) million and $0.1 million, respectively during Fiscal Year 2022-2023.
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
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 2022-2023 reflects amendments that were approved by the City Council during the year. The most significant amendments included increases in taxes.
Charges for Services category came in $1.3 million less than expected. This category is comprised of revenues generated by Community Development/Planning, Recreation, ambulance fees, and other miscellaneous charges. Licenses and Permits came in less than budgeted by $0.5 million. As the economy slowed, the number of plan check and permit requests decreased which impacted both revenue categories, and therefore, final revenue was less than budgeted. As shown in the table above, actual revenues totaled $154.5 million, exceeding the final budget by $7.2 million. Taxes, fines and forfeitures, intergovernmental and investment earnings and miscellaneous revenues exceeded the final budget. Investment earnings exceeded the amended budget by $2.6 million, primarily due to the investment gains on the tax- exempt Section 115 Trust and general investment portfolio.
Actual Variance from
Original Final Amounts Final Budget
Revenues:
Taxes $ 107,913 $ 111,931 $ 116,350 $ 4,419 Licenses and permits 5,346 4,528 4,010 (518) Fines and forfeitures 3,066 3,417 5,290 1,873 Intergovernmental 6,849 7,487 8,056 569 Charges for services 9,552 12,292 10,949 (1,343) Investment earnings 2,145 1,729 4,366 2,637 Miscellaneous 1,196 1,276 1,794 518 Total revenues 136,067 142,660 150,815 8,155
Other Financing Sources:
Transfers in 3,424 4,674 3,424 (1,250) Proceeds from SBITA financing - - 268 268 Total other financing 3,424 4,674 3,692 (982) Tota l Revenues $ 139,491 $ 147,334 $ 154,507 $ 7,173 Budgeted Amounts
Summary of General Fund Revenues
Budget and Actual
Year Ended June 30, 2023
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
18 Expenditures
The final General Fund expenditure budget for Fiscal Year 2022- 2023 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, 2022.
The variance of $0.27 million in Debt Service reflects the subscription-based information technology (IT) arrangements that the City entered in F iscal Year 2022-2023 with various vendors ranging for 2- 5 years (Note 8). Other than the Fire Department which incurred $0.3 million personnel costs over its budget, each department ended the year within their respective spending authority. Under the City Manager’s direction, the Fiscal Year 2022-2023 Adjusted Budget included staff positions that were frozen during the pandemic, annual increases for contract services, and some annual funding for large capital improvement projects that were needed in the city’s parks and buildings. Ongoing General Fund enhancements were kept to a minimum while maintaining the City’s capital infrastructure and facilities. In Fiscal Year 2022- 2023, General Government expenditures also include a $2.0 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 $9.5 million in total budget savings due in large part to staff vacancies.
Actual Variance from
Original Final Amounts Final Budget
Expenditures:
General government $ 18,489 $ 19,414 $ 17,840 $ 1,574 Parks, recreation and community services 11,008 12,038 10,242 1,796 P olice 50,160 50,755 50,092 663
Fire 29,559 30,648 30,960 (312)
Community development 11,434 13,862 10,245 3,617 Public works 17,082 19,275 14,996 4,279 Capital outlay 529 611 506 105 Debt Service - - 270 (270) Total expenditures 138,261 146,603 135,151 11,452 Other Financing (Uses):
Transfers out (5,695) (6,922) (8,922) (2,000) Total other financing sources (uses) (5,695) (6,922) (8,922) (2,000) Total Expenditures $ (143,956) $ (153,525) $ (144,073) $ 9,452 Budgeted Amounts
Summary of General Fund Expenditures
Budget and Actual
Year Ended June 30, 2023
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
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 information was readily available, or if a value could be reasonably estimated, the City capitalized infrastructure assets acquired or constructed prior to 1982.
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2023, amounts to $330.1 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and related systems, impr ovements, 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 $9.8 million and $7.2 million, respectively.
Additional information is available in Note 7 of the Notes to the Basic Financial Statements.
2023 2022 2023 2022 2023 2022
Land $ 21,538 $ 21,539 $ 3,083 $ 3,083 $ 24,621 $ 24,622 Buildings 37,985 39,440 12,989 13,549 50,974 52,989 Improvements 21,507 19,605 5,624 6,243 27,131 25,848 Machinery and equipment 9,608 11,210 17,095 20,523 26,703 31,733 Furniture and fixtures 75,208 - 2 9 75,210 9 Infrastructure - 52,869 43,298 32,337 43,298 85,206 Investment in Hyperion - - 6,681 7,347 6,681 7,347 Right-of-use Asset 745 - 529 540 1,274 540 Construction in progress 65,262 52,204 8,936 19,134 74,198 71,338 Total $ 231,853 $ 196,867 $ 98,237 $ 102,765 $ 330,090 $ 299,632 Governmental Activities Business-Type Activities Total
Summary of Capital Asse ts (Ne t)
Year Ended June 30, 2023
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
20 Long-Term Obligations
At the end of Fiscal Year 2022- 2023, the City had total net long- term outstanding obligations of $57.6 million, an increase of $4.7 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 bond proceeds was fully spent in Fiscal 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
Despite the ability of the City’s revenues to recover from the pandemic, economic indicators suggest a period of economic slowdown. Inflation, rising interest rates, declines in the commercial real estate sector, ongoing debt limit negotiations, and changes in the labor markets, including the prolonged Writers Guild of America strike and the Screen Actors Guild-American Federation of Television and Radio Artists strike, appear to be having a cooling effect on the economy. Most of the City’s revenue sources are projected to show minimal growth, if not decreases, in Fiscal Year 2023- 2024. Sales Tax, the City’s largest revenue contributor to the General Fund is anticipated to decrease in Fiscal Year 2023-2024. Real Property Transfer Tax, bolstered in Fiscal Year 2021- 2022 from the passage of Measure RE in November 2022 and the transfer of one large commercial property in 2022, is anticipated to stay depressed with the softening of the real estate market. The loss in these and other revenue sources is anticipated to be offset by the increase in Business License Tax generated by the implementation of updated tax rates approved by voters in November 2022 as part of Measure BL. However, i t is anticipated that the City’s Business License Tax receipts in the current and future fiscal years will be impacted by the recent labor strikes in the entertainment industry. The extent of the impact is not known at this time.
On the state level, the California Legislative Analyst’s Office (LAO), a nonpartisan fiscal and policy advisor to the California legislature, published its Fiscal Outlook for Fiscal Year 2024- 2025 in December 2023 2023 2022 2023 2022 2023 2022
Compensated absences payable $ 14,685 $ 13,250 $ 1,235 $ 1,537 $ 15,920 $ 14,787 Claims and judgments 19,977 16,059 - - 19,977 16,059 Lease and subscription liabilities
Lease liability - - 371 556 371 556 SBITA liability 638 - 145 - 783 - Wastewater Facilities Revenue Bonds,
2019 Series A - - 17,390 18,195 17,390 18,195 Bond premium - - 3,156 3,276 3,156 3,276 Total $ 35,300 $ 29,309 $ 22,297 $ 23,564 $ 57,597 $ 52,873 Governmental Activities Business-Type Activities Total
Summary of Long-Te rm Liabilitie s
Year Ended June 30, 2023
(In Thousands)
City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
21 indicating that the state is facing a $68 billion budget deficit as a result of a severe revenue decline.
Governor Newsom is recommending significant budget cuts in Fiscal Year 2024-2025 to address a deficit of $38 billion, which is less than the deficit projected by the LAO. The state budget deficit may negatively impact other revenue the City receives.
Budget Outlook
Culver City prides itself on the outstanding quality of services it provides to the community and has taken a great effort to preserve services despite economic challenges.
The City’s financial forecast continues to show operating deficits when factoring in necessary funding for rising pension costs, appropriately pre-funding retiree healthcare costs, facility maintenance and the impacts of an economic slowdown. The City has been proactive in its response to these projected shortfalls and has successfully implemented multiple revenue measures over the last decade. First, there was a 2% increase (12% to 14%) to the Transient Occupancy Tax (Measure X) which was approved by Culver City voters on April 10, 2012 followed by a series of additional voter -approved ballot measures. On November 6, 2012, voters approved a one-half cent local sales tax (Measure Y) which went into effect in April 2013. On April 10, 2018, voters approved a cannabis business tax (Measure A). On November 6, 2018, voters approved an additional quarter-cent sales tax (Measure C), which went into in April 2019. In March 2020, voters a ballot measure which extended the one-quarter cent sales tax, originally put in place by voter-approved Measure Y, for another ten years, until 2033 (Measure CC).
In November 2020, the voters 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, which went into effect in April 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. Real Property Transfer Tax is a mercurial revenue source. It rises and falls with the real estate market.
In November 2022, Culver City voters passed Measure B L updating the business license tax rates and classifications. The new rates and classifications took effect on April 1, 2023 for new businesses and will be applied to existing businesses when they renew their licenses for 2024. It was estimated that these new rates would provide the City with an additional $8 million in additional revenue annually but the actual amount is unknown at this time.
Despite the City’s numerous revenue-generating initiatives, sound financial management, and disciplined control of its financial health during the pandemic, 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 $ 28.4 million in Fiscal Year 202 2-2023 to $42.1 million in Fiscal Year 2032-2033, which is an increase of 67%.
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 J anuary 3, 2023. In addition to the continued implementation of Project Homekey and the Mobile Crisis Intervention Unit that the City Council approved in Fiscal Year 2021- 2022, the City fast -tracked the development of a safe- camping site for homeless individuals on a City- owned parking lot which opened in August 2023. Further, in July 2023, the City City of Culver City
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
22 approved a pilot hotel/motel leasing program whereby the City will rent out two local hotels/motels to expand transitionary housing options for unhoused residents. These programs are service-rich operations and will require significant resources to execute and staff properly. In Fiscal Year 2023-2024, the City has allocated over $15 million of General Fund dollars to support these efforts. Future budgets will attempt to balance the ongoing costs for these community services with the other growing service needs in the City.
In addition, future budget needs include increased maintenance and capital improvement projects for City infrastructure (streets, roads, pavements, traffic safety projects, city buildings, etc.) and capital and maintenance expenditures to support updating network infrastructure, cloud- based software deployments and replacement of end-of-life hardware which are critical to supporting secure and reliable operations.
Remaining financially sustainable will continue to be a responsibility of City leadership. The City will seek to balance maintaining healthy reserves to prepare for unforeseen emergencies while providing necessary community services and prudently investing in long-term facilities and assets.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Culver City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information contained herein should be addressed to the Finance Department, at [email protected] or 9770 Culver Blvd., Culver City, CA 90232, (310) 253-5865.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
23 BASIC FINANCIAL STATEMENTS
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24 GOVERNMENT-WIDE
FINANCIAL STATEMENTS
City of Culver City
Statement of Net Position
June 30, 2023
25 See accompanying Notes to the Basic Financial Statements.
Governmental Business-Type
Activities Activities Total
A SSE TS
Current assets:
Cash and investments (Note 3) 202,216,700$ 45,559,030$ 247,775,730$ Accounts receivables, net 5,029,963 1,991,513 7,021,476 Interest receivables 7,061,552 224,076 7,285,628 Internal balances 20,241,929 (20,241,929) - Due from other governments 14,658,655 2,946,076 17,604,731 Inventories 773,861 - 773,861 Due from Successor Agency 382,790 - 382,790 Total current assets 250,365,450 30,478,766 280,844,216 Noncurrent assets:
Cash and investments held with fiscal agents (Note 3) - 4 4 Restricted investments held by Pension Trust (Note 3) 29,638,414 - 29,638,414 Notes receivables, net (Note 5) 20,109,394 - 20,109,394 Lease receivables (Note 6) 597,380 98,591 695,971 Capital assets (Note 7):
Not being depreciated 86,800,361 12,018,932 98,819,293 Being depreciated, net 145,052,379 86,217,879 231,270,258 Total noncurrent assets 282,197,928 98,335,406 380,533,334 Total assets 532,563,377 128,814,172 661,377,549
DEFERRED O UTFLO WS O F RES O URCES
Pension related amounts (Note 11) 59,451,988 10,097,011 69,548,999 Other postemployment benefits related amounts (Note 12) 8,570,335 1,273,836 9,844,171 Total deferred outflows of resources 68,022,323 11,370,847 79,393,170 (Continued)
Primary Government
City of Culver City
Statement of Net Position (Continued)
June 30, 2023
26 See accompanying Notes to the Basic Financial Statements.
Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 7,528,866$ 2,309,200$ 9,838,066$ Salaries and benefits payable 3,271,039 868,979 4,140,018 Interest payable - 259,983 259,983 Deposits payable 8,039,405 505,970 8,545,375 Retention payable 1,092,508 26,206 1,118,714 Due to Successor Agency 1,397,864 - 1,397,864 Due to other government 377,628 - 377,628 Unearned revenues 819,021 5,242,284 6,061,305 Lease and subscription liabilities, due within one year (Note 8) 201,781 267,024 468,805 Compensated absences, due within one year (Note 8) 3,355,775 496,003 3,851,778 Claims payable, due within one year (Note 8) 4,848,404 - 4,848,404 Revenue bonds payable, due within one year (Note 8) - 969,847 969,847 Total current liabilities 30,932,292 10,945,496 41,877,788 Noncurrent liabilities:
Compensated absences, due in more than one year (Note 8) 11,329,313 739,447 12,068,760 Claims payable, due in more than one year (Note 8) 15,128,922 - 15,128,922 Revenue bonds payable, due in more than one year (Note 8) - 19,576,135 19,576,135 Lease and subscription liabilities, due in more than one year (Note 8) 436,695 248,717 685,412 Net pension liabilities (Note 11) 253,979,307 38,914,176 292,893,483 Net other postemployment benefits liabilities (Note 12) 52,385,162 7,786,170 60,171,332 Total noncurrent liabilities 333,259,399 67,264,645 400,524,044 Total liabilities 364,191,691 78,210,141 442,401,832
DEFERRED INFLO WS O F RES O URCES
Pension related amounts (Note 11) 1,686,280 921,236 2,607,516 Other postemployment benefits related amounts (Note 12) 15,348,420 2,281,284 17,629,704 Leases (Note 8) 745,810 95,709 841,519 Total deferred inflows of resources 17,780,510 3,298,229 21,078,739
NET POS ITION
Net investment in capital assets 230,121,756 77,148,882 307,270,638 Restricted for:
Road construction 8,240,868 - 8,240,868 Housing authority 31,788,861 - 31,788,861 Public safety 822,749 - 822,749 Public works and capital projects 53,472,541 - 53,472,541 Debt service - 4 4 Community development 10,167,204 - 10,167,204 Pension trust 29,638,414 - 29,638,414 Total restricted 134,130,637 4 134,130,641 Unrestricted (deficit) (145,638,894) (18,472,236) (164,111,130) Total net position 218,613,499$ 58,676,650$ 277,290,149$ (Concluded)
Primary Government
City of Culver City
Statement of Activities
Year Ended June 30, 2023
27 See accompanying Notes to the Basic Financial Statements.
Charges Operating Capital Total
for Grants and Grants and Program
Functions/Programs: Expenses Services Contributions Contributions Revenues Primary government:
Governmental activities:
General government 23,479,319$ 1,257,812$ 365,790$ -$ 1,623,602$ Parks, recreation and community services 11,030,251 3,446,956 396,953 - 3,843,909 Police 50,962,731 5,846,653 560,339 - 6,406,992 Fire 32,294,448 3,551,911 711,177 - 4,263,088 Community development 17,196,977 9,549,157 6,453,696 66,072 16,068,925 Public works 20,656,111 4,515,924 5,627,693 6,458,359 16,601,976 Transportation 418,568 152 2,618,211 - 2,618,363 Total governmental activities 156,038,405 28,168,565 16,733,858 6,524,431 51,426,855 Business-type activities:
Refuse disposal 17,631,800 20,213,673 31,606 - 20,245,279 M unicipal bus lines 31,534,485 2,072,703 28,882,999 928,162 31,883,864 Sewer enterprise 9,638,323 8,956,852 81 - 8,956,933 Municipal fiber network 2,318,980 2,435,207 - - 2,435,207 Internal service fund allocated to
business-type activities 642,389 - - - - Total business-type activities 61,765,977 33,678,435 28,914,686 928,162 63,521,283 Total primary government 217,804,382$ 61,847,000$ 45,648,544$ 7,452,593$ 114,948,138$ Program Revenues
City of Culver City
Statement of Activities (Continued)
Year Ended June 30, 2023
28 See accompanying Notes to the Basic Financial Statements.
Governmental Business-Type
Functions/Programs: Activities Activities Total
Primary government:
Governmental activities:
General government (21,855,717)$ -$ (21,855,717)$ Parks, recreation and community services (7,186,343) - (7,186,343) Police (44,555,739) - (44,555,739) Fire (28,031,360) - (28,031,360) Community development (1,128,052) - (1,128,052) Public works (4,054,135) - (4,054,135) Transportation 2,199,795 - 2,199,795 Total governmental activities (104,611,551) - (104,611,551) Business-type activities:
Refuse disposal - 2,613,479 2,613,479 M unicipal bus lines - 349,379 349,379 Sewer enterprise - (681,390) (681,390) Municipal fiber network - 116,227 116,227 Internal service fund allocated to
business-type activities - (642,389) (642,389) Total business-type activities - 1,755,306 1,755,306 Total primary government (104,611,551) 1,755,306 (102,856,245) General rev enues:
Taxes:
Property taxes 24,379,624 - 24,379,624 Sales taxes 42,394,800 - 42,394,800 Utility users taxes 16,524,880 - 16,524,880 Franchise taxes 1,805,748 - 1,805,748 Business license taxes 18,736,311 - 18,736,311 Transient occupancy taxes 11,963,174 - 11,963,174 Other taxes 545,566 - 545,566 Total taxes 116,350,104 - 116,350,104 Intergovernmental revenues, unrestricted 7,227,479 7,227,479 Investment earnings (losses) 6,078,891 338,282 6,417,173 M iscellaneous 2,621,709 2,208 2,623,917 Transfers (Note 4) (1,317,208) 1,317,208 - Total general revenues and transfers 130,960,975 1,657,698 132,618,673 Change in net position 26,349,424 3,413,004 29,762,428 Net position - beginning of year, as restated 192,264,075 55,263,646 247,527,721 Net position - ending of year 218,613,499 58,676,650 277,290,149$ 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 - T his is the primary operating 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 a nd Acquisition Fund - This fund is used to account for capital projects that are not otherwise funded by a special revenue fund or other s pecifically identified by the sources of funding. Project funding is mainly from general revenues allocated by action of the City Council.
Culver City H ousing Authority Fund - This fund 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. This fund is restricted to be used for qualified low/m oderate incom e housing projects identified in the Agreem ent.
Capital Improvement Gr ants Fund - This fund is used to account for grant funds awarded 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, 2023
31 Culver City Capital
Housing Improvement and
General Authority Acquisition
A SSE TS
Cash and investments 94,475,356$ 9,837,261$ 15,427,054$ Restricted investments held by Pension Trust 29,638,414 - - Accounts receivables, net 4,704,927 6,185 - Interest receivables 639,549 4,795,920 65,550 Notes receivables, net 9,057 16,681,518 - Lease receivables 597,380 - - Due from other funds 8,369,389 484,207 - Due from other governments 9,795,472 - - Due from Westside COG 299,962 - - Advances to other funds 15,024,242 - - Total assets 163,553,747$ 31,805,091$ 15,492,603$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES , AND FUND BALANCES
L iabilities:
Accounts payable 2,830,996$ 571,344$ 1,090,963$ Salaries and benefits payable 3,000,917 - - Due to other governments 251,417 - - Due to other funds 123,706 648,497 187,794 Due to Successor Agency 291,817 - - Deposits payable 2,099,445 6,685 5,367,886 Retention payable - - 605,092 Unearned revenues 819,021 - - Total liabilities 9,417,320 1,226,526 7,251,735 Deferred Inflows of Resources:
Leases 745,810 - - Unavailable revenue - - - Total deferred inflows of resources 745,810 - - Fund Balances:
Nonspendable 15,630,679 - - Restricted 29,638,414 30,578,565 8,240,868 Committed 76,521,023 - - Assigned 6,765,186 - - Unassigned (deficit) 24,835,315 - - Total fund balances 153,390,617 30,578,565 8,240,868 Total liabilities, deferred inflows of
resources and fund balances 163,553,747$ 31,805,091$ 15,492,603$ Major Funds
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
32 Major Funds
Capital Total Total
Improvement Nonmajor Governmental
Grants Funds Funds
A SSE TS
Cash and investments -$ 63,163,160$ 182,902,831$ Restricted investments held by Pension Trust - - 29,638,414 Accounts receivables, net - 281,162 4,992,274 Interest receivables - 1,475,134 6,976,152 Notes receivables, net - 3,418,819 20,109,394 Leases receivables - - 597,380 Due from other funds - 2,503 8,856,099 Due from other governments 4,158,395 704,751 14,658,618 Due from Westside COG - 82,828 382,790 Advances to other funds - - 15,024,242 Total assets 4,158,395$ 69,128,357$ 284,138,193$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES , AND FUND BALANCES
L iabilities:
Accounts payable 1,133,828$ 1,043,813$ 6,670,945$ Salaries and benefits payable - 30,932 3,031,849 Due to other governments - 126,213 377,630 Due to other funds 1,865,466 206,786 3,032,248 Due to Successor Agency - 1,106,047 1,397,864 Deposits payable - 565,389 8,039,405 Retention payable 460,265 27,151 1,092,508 Unearned revenues - - 819,021 Total liabilities 3,459,559 3,106,331 24,461,471 Deferred Inflows of Resources:
Leases - - 745,810 Unavailable revenue 3,967,547 428,909 4,396,456 Total deferred inflows of resources 3,967,547 428,909 5,142,266 Fund Balances:
Nonspendable - - 15,630,679 Restricted - 65,672,791 134,130,639 Committed - - 76,521,023 Assigned - - 6,765,186 Unassigned (deficit) (3,268,711) (79,674) 21,486,930 Total fund balances (3,268,711) 65,593,117 254,534,457 Total liabilities, deferred inflows of
resources and fund balances 4,158,395$ 69,128,357$ 284,138,193$ 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
June 30, 2023
33 Total Fund Balances - Total Governmental Funds 254,534,457 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 86,722,811
Capital assets, depreciable (net of $28,125,694 reported in Internal Service Funds) 256,731,070 Less accumulated depreciation (net of $(22,587,435) reported in Internal Service Funds) (117,216,950) Long-term liabilities and related 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 $479,712 reported in Internal Service Funds) (14,205,376) Net pension liabilities (net of $11,278,832 reported in Internal Service Funds) (242,700,475) Pension related deferred outflows of resources (net of $2,926,503 reported in Internal Service Funds) 56,525,485 Pension related deferred inflows of resources (net of $267,009 reported in Internal Service Funds) (1,419,271) Net OPEB liabilities (net of $2,184,220 reported in Internal Service Funds) (50,200,942) OPEB related deferred outflows of resources (net of $357,343 reported in Internal Service Funds) 8,212,992 OPEB related deferred inflows of resources (net of $639,958 reported in Internal Service Funds) (14,708,462) Lease and subscription liabilities (638,476)
Internal service funds are used 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 $3,351,514 allocated to business-type activities). (7,419,819)
Revenues earned but not available to pay for current expenditures for governmental funds are unavailable. 4,396,456 Net Position of Governmental Activities 218,613,499
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2023
34 Culver City Capital
Housing Improvement and
General Authority Acquisition
REVENUES :
Taxes 116,350,104$ -$ -$ Licenses and permits 4,010,256 - - Fines and forfeitures 5,290,389 - - Intergovernmental 8,055,497 - 1,193,376 Charges for services 10,949,213 - - Investment earnings 4,366,286 432,608 445,624 M iscellaneous 1,793,616 5,000 - Total revenues 150,815,362 437,608 1,639,000 EXPENDITURES :
Current:
General government 17,840,175 - - Parks, recreation, and community services 10,241,805 - - Police 50,091,619 - - Fire 30,959,964 - - Community development 10,244,598 896,580 - Public works 14,996,165 - 253,723 Transportation - - - Capital outlay 506,355 7,300,000 4,370,607 Debt service
Principal payments 267,928 - - Interest 2,258 - - Total expenditures 135,150,867 8,196,580 4,624,330 REVENUES OVER (UNDER) EXPENDITURES 15,664,494 (7,758,972) (2,985,330) OTHER FINANCING S OURCES (US ES ):
Transfers in 3,423,930 - 6,922,389 Transfers out (8,922,389) (1,123,930) - Proceeds from SBITA financing 267,928 - - Proceeds from sale of property - - - Total other financing sources (uses) (5,230,531) (1,123,930) 6,922,389 CHANGES IN FUND BALANCES 10,433,963 (8,882,902) 3,937,059 FUND BALANCES:
Beginning of year, as previously reported 142,956,654 37,105,277 4,303,809 Prior period adjustment - 2,356,190 - Beginning of year, as restated 142,956,654 39,461,467 4,303,809 End of year 153,390,617$ 30,578,565$ 8,240,868$ 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
Year Ended June 30, 2023
35 Major Funds
Total
Capital Nonmajor Total
Improvement Governmental Governmental
Grants Funds Funds
REVENUES :
Taxes -$ -$ 116,350,104 Licenses and permits - 905,823 4,916,079 Fines and forfeitures - - 5,290,389 Intergovernmental 5,806,463 16,114,613 31,169,950 Charges for services - 6,412,883 17,362,096 Investment earnings 163,306 614,692 6,022,516 M iscellaneous - 788,841 2,587,457 Total revenues 5,969,769 24,836,852 183,698,592 EXPENDITURES :
Current:
General government - 533,274 18,373,449 Parks, recreation, and community services - 126,221 10,368,026 Police - 471,902 50,563,521 Fire - 845,972 31,805,936 Community development - 5,157,457 16,298,635 Public works - 212,468 15,462,356 Transportation - 418,568 418,568 Capital outlay 30,533,824 2,146,406 44,857,191 Debt service
Principal payments - - 267,928 Interest - - 2,258 Total expenditures 30,533,824 9,912,268 188,417,869 REVENUES OVER (UNDER) EXPENDITURES (24,564,054) 14,924,584 (4,719,277) OTHER FINANCING S OURCES (US ES ):
Transfers in - 340,616 10,686,935 Transfers out - (3,957,824) (14,004,143) Proceeds from SBITA financing - 829,825 1,097,753 Proceeds from sale of property - 4,020 4,020 Total other financing sources (uses) - (2,783,363) (2,215,435) CHANGES IN FUND BALANCES (24,564,054) 12,141,221 (6,934,712) FUND BALANCES:
Beginning of year, as previously reported 21,295,343 53,324,946 258,986,029 Prior period adjustment - 126,950 2,483,140 Beginning of year, as restated 21,295,343 53,451,896 261,469,169 End of year (3,268,711)$ 65,593,117$ 254,534,457$ 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, 2023
36 Net Change in Fund Balances - Total Governmental Funds (6,934,712)$ 43,931,419
(7,687,214)
(1,551,152)
(638,476)
Other postemployment benefit expense 4,912,281
Pension expense (4,168,706)
(1,429,832)
(84,182)
Change in Net Position of Governmental Activities 26,349,424$ 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 financialresources. 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 individualfunds. The net revenue of the internal service funds was reported with governmental activities.
Proceeds from SBITA financing provide current financialresources to governmental funds, but issuing lease and subscription liabilitiesincrease long-term liabilitiesin the Statement of Net Position. Repayment of lease and subscription liability principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Amounts reported for governmental activities in the Statement of Activities are different because:
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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, 2023
39 Total
Refuse Municipal Bus Sewer M unicipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
A SSE TS
Current assets:
Cash and investments 7,647,306$ 13,704,755$ 24,206,969$ -$ 45,559,030$ Accounts receivables, net 1,571,916 234,469 3,416 181,713 1,991,513 Interest receivables 38,023 60,935 125,118 - 224,076 Due from other funds - - - - - Due from other governments 122,283 2,681,665 142,128 - 2,946,076 Inventory - - - - - Total current assets 9,379,528 16,681,824 24,477,631 181,713 50,720,696 Noncurrent assets:
Cash and investments with
fiscal agent - - 4 - 4 Notes receivables, net - - - - - Lease receivables - - - 98,591 98,591 Capital assets:
Not being depreciated 385,569 7,260,717 2,061,697 2,310,950 12,018,932 Being depreciated 9,449,239 74,214,457 87,836,310 11,508,688 183,008,693 Less accumulated depreciation (7,349,035) (44,747,493) (43,276,594) (1,417,693) (96,790,814) Total capital assets, net 2,485,774 36,727,680 46,621,413 12,401,945 98,236,812 Total noncurrent assets 2,485,774 36,727,680 46,621,417 12,500,536 98,335,406 Total assets 11,865,302 53,409,504 71,099,047 12,682,249 149,056,102
DEFERRED O UTFLO WS O F RES O URCES
Pension related amounts 2,469,238 7,059,049 568,725 - 10,097,011 Other postemployment benefits related amounts 461,692 768,830 43,314 - 1,273,836 Total deferred outflows of resources 2,930,930 7,827,879 612,039 - 11,370,847 (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, 2023
40 Governmental
Activities
Internal
Service Funds
A SSE TS
Current assets:
Cash and investments 19,313,869$
Accounts receivables, net 37,689
Interest receivables 85,400
Due from other funds 84
Due from other governments 37
Inventories 773,861
Total current assets 20,210,939
Noncurrent assets:
Cash and investments with
fiscal agent -
Notes receivables, net -
Lease receivables -
Capital assets:
Not being depreciated 77,551
Being depreciated 28,125,694
Less accumulated depreciation (22,587,435)
Total capital assets, net 5,615,809
Total noncurrent assets 5,615,809
Total assets 25,826,749
DEFERRED O UTFLO WS O F RES O URCES
Pension related amounts 2,926,503
Other postemployment benefits related amounts 357,343
Total deferred outflows of resources 3,283,846
(Continued)
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
41 Total
Refuse Municipal Bus Sewer M unicipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
LIABILITIES
Current liabilities:
Accounts payable 661,682$ 702,495$ 407,765$ 537,258$ 2,309,200$ Salaries and benefits payable 211,201 614,282 43,495 - 868,979 Due to other funds - - - 1,866,173 1,866,173 Interest payable - - 259,983 - 259,983 Deposits payable 303,750 - - 202,220 505,970 Retention payable - 7,337 18,869 - 26,206 Unearned revenue 55 2,171,141 - 3,071,088 5,242,284 Lease and subscription liabilities 197,182 69,842 - - 267,024 Compensated absences, due within one year 187,049 242,143 66,811 - 496,003 Claims payable, due within one year - - - - - Revenue bonds payable, due within one year - - 850,000 - 850,000 Total current liabilities 1,560,919 3,807,240 1,646,924 5,676,738 12,691,822 Noncurrent liabilities:
Advances from other funds - - - 15,024,242 15,024,242 Lease and subscription liabilities, due in more than one year 173,567 75,150 - - 248,717 Compensated absences, due in more than one year 144,102 583,568 11,777 - 739,447 Claims payable, due in more than one year - - - - - Revenue bonds payable, due in more than one year - - 19,695,982 - 19,695,982 Net pension liabilities 9,516,516 27,205,777 2,191,882 - 38,914,176 Net other postemployment benefits liabilities 2,822,035 4,699,381 264,754 - 7,786,170 Total noncurrent liabilities 12,656,219 32,563,876 22,164,396 15,024,242 82,408,734 Total liabilities 14,217,138 36,371,117 23,811,320 20,700,981 95,100,556
DEFERRED INFLO WS O F RES O URCES
Pension related amounts 225,290 644,056 51,890 - 921,236 Other postemployment benefits related amounts 826,833 1,376,880 77,571 - 2,281,284 Leases - - - 95,709 95,709 Total deferred inflows of resources 1,052,123 2,020,936 129,461 95,709 3,298,229
NET POS ITION
Net investment in capital assets 2,115,025 36,575,352 26,056,561 12,401,945 77,148,882 Restricted for debt service - - 4 - 4 Unrestricted (Deficit) (2,588,055) (13,730,022) 21,713,741 (20,516,388) (15,120,722) Total net position (473,030)$ 22,845,330$ 47,770,306$ (8,114,443)$ 62,028,164$ Adjustment to reflect the consolidation of
internal service fund activities related to
business-type activities (3,351,514)
Net position of business-type activities 58,676,650$
(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, 2023
42 Governmental
Activities
Internal
Service Funds
LIABILITIES
Current liabilities:
Accounts payable 857,921$
Salaries and benefits payable 239,190
Due to other funds 3,957,761
Interest payable -
Deposits payable -
Retention payable -
Unearned revenue -
Lease and subscription liabilities -
Compensated absences, due within one year 175,008
Claims payable, due within one year 4,848,404
Revenue bonds payable, due within one year -
Total current liabilities 10,078,284
Noncurrent liabilities:
Advances from other funds -
Lease liabilities, due in more than one year -
Compensated absences, due in more than one year 304,704 Claims payable, due in more than one year 15,128,922
Revenue bonds payable, due in more than one year -
Net pension liabilities 11,278,832
Net other postemployment benefits liabilities 2,184,220 Total noncurrent liabilities 28,896,678
Total liabilities 38,974,962
DEFERRED INFLO WS O F RES O URCES
Pension related amounts 267,009
Other postemployment benefits related amounts 639,958
Total deferred inflows of resources 906,967
NET POS ITION
Net investment in capital assets 5,615,809
Restricted for debt service -
Unrestricted (Deficit) (16,387,144)
Total net position (10,771,334)$
(Concluded)
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, 2023
43 Total
Refuse Municipal Bus Sewer M unicipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
OPERATING REVENUES :
Charges for services 20,211,682$ 1,674,020$ 8,956,852$ 1,986,138$ 32,828,693$ Other 1,991 398,683 - 449,068 849,742 Total operating revenues 20,213,673 2,072,703 8,956,852 2,435,207 33,678,435 O PERATING EXPENS ES :
Salaries and benefits 6,192,609 16,963,342 1,396,365 - 24,552,316 Supplies 246,852 513,939 2,598,839 - 3,359,630 Repairs and maintenance 2,929,962 5,410,150 500,957 54,921 8,895,990 Insurance 318,638 607,882 74,694 - 1,001,214 Claims and settlements - - - - - Administrative services 2,126,461 2,899,995 714,010 - 5,740,466 Rent and lease expenses 66,682 - 360,000 - 426,682 Consulting and contractual services 5,338,447 933,730 927,824 1,731,796 8,931,798 Depreciation and amortization 397,976 4,204,427 2,396,923 232,437 7,231,763 Total operating expenses 17,617,628 31,533,465 8,969,612 2,019,154 60,139,860 O PERATING INCO ME (LO S S ) 2,596,045 (29,460,762) (12,760) 416,052 (26,461,424) NO NO PERATING REVENUES (EXPENS ES ):
Interest expense (14,172) (1,020) (668,711) (299,826) (983,729) Investment earnings 25,269 54,753 251,017 7,243 338,282 Intergovernmental 31,606 28,882,999 81 - 28,914,686 M easure R sales tax - - - - - Gain (loss) on sales of property - 2,208 - - 2,208 Debt Service - - - - - Capital outlay - - - - - Total nonoperating revenues (expenses) 42,703 28,938,940 (417,613) (292,583) 28,271,447
INCO ME (LO S S ) BEFO RE
CONTRIBUTIONS AND TRANS FERS 2,638,748 (521,822) (430,373) 123,469 1,810,023 CONTRIBUTIONS AND TRANS FERS :
Capital contributions - 928,162 - - 928,162 Transfers in - 1,676,290 - - 1,676,290 Transfers out - (359,082) - - (359,082) Total contributions and transfers - 2,245,370 - - 2,245,370 Changes in net position 2,638,748 1,723,548 (430,373) 123,469 4,055,393 NET POS ITION:
Beginning of year (3,111,778) 21,121,782 48,200,679 (8,237,912) 57,972,771 End of year (473,030)$ 22,845,330$ 47,770,306$ (8,114,443)$ 62,028,164$ Adjustment to reflect the consolidation of internal service funds activities related to business-type activities (642,389) Changes in net position of business-type activities 3,413,004$ (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, 2023
44 Governmental
Activities
Int
ernal
Service Funds
OPERATING REVENUES :
Charges for services 24,870,189$
Other 100,689
Total operating revenues 24,970,878
O PERATING EXPENS ES :
Salaries and benefits 6,800,069
Supplies 2,981,470
Repairs and maintenance 4,395,529
Insurance 3,775,027
Claims and settlements 8,035,132
Administrative services -
Rent and lease expenses -
Consulting and contractual services 995,005
Depreciation and amortization 2,147,597
Total operating expenses 29,129,829
O PERATING INCO ME (LO S S ) (4,158,952)
NO NO PERATING REVENUES (EXPENS ES ):
Interest expense -
Investment earnings 56,375
Intergovernmental 121
M easure R sales Tax -
Gain (loss) on sales of property 30,235
Capital outlay -
Total nonoperating revenues (expenses) 86,730
INCO ME (LO S S ) BEFO RE
CONTRIBUTIONS AND TRANS FERS (4,072,222)
CONTRIBUTIONS AND TRANS FERS :
Capital contributions -
Transfers in 2,000,000
Transfers out -
Total contributions and transfers 2,000,000
Changes in net position (2,072,222)
NET POS ITION:
Beginning of year (8,699,112)
End of year (10,771,334)$
(Concluded)
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
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 20,190,452$ 1,612,065$ 8,959,088$ 2,157,948$ 32,919,553$ Receipts from user departments - - - - - Grants received (Paid to other funds) 77,284 29,499,091 176,430 - 29,752,805 Payments to suppliers (10,843,090) (10,492,441) (5,328,404) (1,418,124) (28,082,059) Payments to employees (6,593,708) (17,557,841) (1,409,551) - (25,561,100) Net cash provided by (used in) operating activities 2,830,938 3,060,874 2,397,562 739,824 9,029,198
CAS H FLOWS FROM NONCAPITAL
FINANCING ACTIVITY:
Cash received from (paid to) other funds - 1,317,207 - (869,860) 447,347 Net cash provided by
noncapital financing activities - 1,317,207 - (869,860) 447,347
CAS H FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grants received - 928,162 - - 928,162 Acquisition of capital assets (7,950) (1,951,598) (480,671) (169,712) (2,609,931) Advances from other funds - - - 299,826 299,826 Proceeds from sales of capital assets 145,127 2,208 - - 147,335 Payment of Lease (185,468) (68,748) - - (254,216) Interest paid (14,172) (1,020) (801,975) (299,826) (1,116,993) Principal paid on revenue bonds - - (805,000) - (805,000) Net cash used in capital
and related financing activities (62,463) (1,090,996) (2,087,646) (169,712) (3,410,817) CAS H FLOWS FROM INVES TING ACTIVITY:
Interest received (investment losses) 1,358 23,223 192,475 8,472 225,528 Cash provided by (used in) investing activity 1,358 23,223 192,475 8,472 225,528 Net increase (decrease) in cash and cash equiv alents 2,769,833 3,310,308 502,391 (291,276) 6,291,256 CAS H AND CAS H EQUIVALENTS :
Beginning of year 4,877,473 10,394,447 23,704,582 291,276 39,267,778 End of year 7,647,306$ 13,704,755$ 24,206,973$ 0 45,559,034$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENTS OF NET POSITION:
Cash and investments 7,647,306$ 13,704,755$ 24,206,969$ -$ 45,559,030$ Cash and investments held with fiscal agent - - 4 - 4 Total 7,647,306$ 13,704,755$ 24,206,973$ -$ 45,559,034$ (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, 2023
46 Governmental
Activities
Internal
Service Funds
CAS H FLOWS FROM OPERATING ACTIVITIES :
Receipts from customers and users 100,693$
Receipts from user departments 24,842,814
Grants received (Paid to other funds) -
Payments to suppliers (16,094,291)
Payments to employees (7,134,573)
Net cash provided by (used in) operating activities 1,714,643
CAS H FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES :
Cash to other funds 3,247,215
Net cash provided (used in) by
noncapital financing activities 3,247,215
CAS H FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Capital grants received 121
Acquisition of capital assets (894,612)
Advances from other funds -
Proceeds from sales of capital assets 35,446
Payment of Lease -
Interest paid -
Principal paid on revenue bonds -
Net cash provided by (used in) capital
and related financing activities (859,046)
CAS H FLOWS FROM INVES TING ACTIVITIES :
Interest received (investment losses) (1,565)
Cash provided by (used in) investing activity (1,565)
Net increase (decrease) in cash and cash equiv alents 4,101,248 CAS H AND CAS H EQUIVALENTS :
Beginning of year 15,212,620
End of year 19,313,869$
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENTS OF NET POSITION:
Cash and investments 19,313,869$
Cash and investments held with fiscal agent -
Total 19,313,869$
(Continued)
See accompanying Notes to the Basic Financial Statements.
City of Culver City
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended June 30, 2023
47 Total
Refuse Municipal Bus Sewer M unicipal Enterprise
Disposal Lines Enterprise Fiber Network Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CAS H PROVIDED BY (US ED IN) OPERATING ACTIVITIES :
Operating income (loss) 2,596,045$ (29,460,762)$ (12,760)$ 416,052$ (26,461,424)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 397,976 4,204,427 2,396,923 232,437 7,231,763 (Increase) decrease in:
Accounts receivable (73,221) (109,357) 2,236 (18,642) (198,984) Leases receivables - - - 149,455 149,455 Customer deposits 50,000 - - (0) 50,000 Inventory - - - - - Unearned revenue - (351,282) - (259,121) (610,403) Deferred outflows of resources - pensions (1,778,567) (5,084,561) (409,647) - (7,272,774) Deferred outflows of resources - OPEB 231,948 386,250 21,761 - 639,959 Increase (decrease) in:
Accounts payable 183,953 (127,988) (170,949) 368,593 253,609 Due from other governments 77,284 29,499,091 176,430 - 29,752,805 Salaries and benefits payable 20,043 91,171 12,952 - 124,167 Retention payable - 1,243 18,869 - 20,112 Compensated absences (128,036) (177,329) 3,674 - (301,691) Net pension liabilities 3,858,171 11,029,723 888,629 - 15,776,524 Net other postemployment benefits liabilities (129,947) (216,393) (12,191) - (358,531) Deferred inflows of resources - pensions (2,096,567) (5,993,659) (482,889) - (8,573,115) Deferred inflows of resources - OPEB (378,144) (629,703) (35,476) - (1,043,323) Deferred inflows of resources - Leases - - - (148,951) (148,951) Claims payable - - - - - Total adjustments (163,083) 28,317,208 13,399 91,334 28,258,859 Net cash provided by (used in) operating activities 2,830,938$ 3,060,874$ 2,397,562$ 739,824$ 9,029,198$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Accrued interest on advances -$ -$ -$ 299,826$ 299,826$ (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, 2023
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) (4,158,952)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 2,147,597
(Increase) decrease in:
Accounts receivable (27,375)
Leases receivables -
Customer deposits -
Inventories (18,947)
Unearned revenue -
Deferred outflows of resources - pensions (2,107,931)
Deferred outflows of resources - OPEB 179,526
Increase (decrease) in:
Accounts payable 188,668
Due from other governments -
Salaries and benefits payable 15,435
Retention payable -
Compensated absences (116,103)
Net pension liabilities 4,572,646
Net other postemployment benefits liabilities (100,577) Deferred inflows of resources - pensions (2,484,821)
Deferred inflows of resources - OPEB (292,679)
Deferred inflows of resources - Leases
Claims payable 3,918,155
Total adjustments 3,725,998
Net cash provided by (used in) operating activities 1,714,643$
NONCASH NONCAPITAL FINANCING ACTIVITIES
Accrued interest on advances -$
(Concluded)
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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 entof 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, 2023
50 Private
Purpose OPEB
Trust Trust Custodial
Fund Plan Funds
A SSE TS
Cash and investments 4,359,293$ -$ 320,096$ Cash and investments held with fiscal agent 14,448,684 - - Restricted cash held with OPEB Trust - 278,108 - Restricted investments held with OPEB Trust - 60,921,674 Interest receivables 7,757 - 1,428 Prepaid items 9,866 - - Due from City of Culver City 1,397,864 - 251,417 Due from other governments 55,797
Notes receivables, net 675,791 - - Capital assets: -
Not being depreciated 8,036,229 - - Being depreciated, net 4,347,669 - - Total assets 33,283,153 61,199,782 628,738
DEFERRED O UTFLO WS O F RES O URCES
Deferred loss on refunding, net 161,420 - - Total deferred loss on refunding 161,420 - -
LIABILITIES
Accounts payable (46,870) - 58,973 Salaries and benefits payable (17) - - Deposits payable - - - Interest payable 354,417 - - Due to Culver City Housing Authority - - - Due to City of Culver City - - 382,790 Unearned revenue - - 375 Bonds payable, due within one year 12,438,995 - - Bonds payable, due more than one year 41,668,108 - - Total liabilities 54,414,633 - 442,138
NET POS ITION (DEFICIT)
Restricted for the dissolution of the form er Redevelopm ent Agency (20,970,060)$ Restricted for other governm ents, organizations and individuals 186,600$ Restricted for OPEB 61,199,782$
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, 2023
51 Private
Purpose OPEB
Trust Trust Custodial
Fund Plan Funds
ADDITIONS
Redevelopment property taxes trust funds 14,933,813$ -$ -$ Contributions - 6,645,802 493,271 Charges for services - - 158,000 Investment earnings:
Interest 402,862 30,617 3,002 Dividend - 1,654,054 - Net appreciation (depreciation) in fair value of investments (2,488) 3,477,003 (5,587) Total additions 15,334,187 11,807,476 648,686
DEDUCTIONS
Benefit payments - 6,626,279 - General and administrative 794,809 35,229 637,057 Payments to organizations and individuals - - 20,000 Depreciation 138,902 - - Interest expense 1,258,897 - - Total deductions 2,192,608 6,661,508 657,057 Change in net position 13,141,579 5,145,968 (8,371)
NET POS ITION
Beginning of year (33,908,660) 56,053,814 194,971 Prior period adjustm ent (202,979) - - Beginning of year, as restated (34,111,639) 56,053,814 194,971 End of year (20,970,060)$ 61,199,782$ 186,600$
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NOTES TO THE BASIC FINANCIAL STATEMENTS
Basic Financial Statements
City of Culver City, California
52 NOTES TO THE BASIC
FINANCIAL STATEMENTS
City of Culver City
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
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 67
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
C. Encumbrances 75
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, 2023
54 PAGE
Note 5: Notes Receivables 84
A. Culver City Mobile Home Owners, Inc. 84
B. MAP Loans 85
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 86
H. Tilden Terrace - Commercial 86
I. Community Development Block Grant 86
J. Menorah Senior Housing 86
Note 6: Lease Receivables 86
Note 7: Capital Assets 88
A. Governmental Activities 88
B. Business-Type Activities 89
Note 8: Long-term Liabilities 90
A. Governmental Activities 90
B. Business-Type Activities 90
C. Lease and SBITA Liabilities 90
Note 9: Bonds Payable 92
Note 10: Claims and Judgments 93
Note 11: Pension Plans 94
A. California Public Employees’ Retirement System (“CalPERS”) 94 B. Public Agency Retirement Services (“PARS”) 104
Note 12: Other Postemployment Benefits (“OPEB”) 105
Note 13: Deferred Compensation Plan 111
Note 14: Contingencies 111
City of Culver City
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
55 PAGE
Note 15: Classification of Fund Balances 112
Note 16: Prior Period Adjustment 113
Note 17: Subsequent Events 113
Note 18: Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency 113
Note 19: Governmental Accounting Standards Board (GASB) Statements Issued, Not Yet Effective 118
City of Culver City
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
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 C ouncil/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 s ervices 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 acc ountability 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 activities 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 the City.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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”) was created in 1965 pursuant to Section 32500 of the California Streets and Highways Code for the purpose of creating public parking facilities and undertaking activities incidental thereto for which public money may be spent and 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”) is 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. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to the basic financial statements
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government ( including its blended component 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, 2023
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, and 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.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprises its assets, deferred 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 purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These 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, 2023
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 “avail able 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 “avail able 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, 2023
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 exten t normally collected within the availability period.
Other revenue items are considered to be measurable and available when cash is received by the government.
Due to the nature of their 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, 2023
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 charg es 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 are composed of the custodial funds, private purpose trust fund, and the OPEB trust plan fund. The custodial funds, the private purpose trust fund, and the OPEB trust plan fund are accounted for on the full accrual basis of accounting.
Successor Agency to the Culver City Redevelopment Agency Trust Fund
The fund is used to account for the winding down of the former Redevelopment Agency, including the disposition of real property held by the Agency and payment of enforceable obligations.
OPEB Trust Plan Fund
The fund is used to account for the assets of the City's Retiree Health Insurance Program (the Plan), a single-employer defined benefit plan for the City's eligible retired employees and their spouses.
Custodial 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, 2023
62 Note 1 – Summary of Significant Accounting Policies (Continued)
C. Fund Classifications
The City reports the following major governmental funds:
General Fund
This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.
Culver City Housing Authority Special Revenue Fund
The fund is used to account for the former Low/Moderate Income Housing Funds transferred to the City under the 2011 Cooperation and Implementation Agreement. It is also anticipated that future funding will be provided from the Successor Agency from the pas t redevelopment agency repayment obligations. These funds are restricted to be used for qualified low/moderate income housing projects identified in the Agreement.
Capital Improvement and Acquisition Capital Projects Fund The fund is used to account for capital projects that are not otherwise funded by a special revenue fund or other specifically identified by the sources of funding. Project funding is mainly from general revenues allocated by action of the City Council.
Capital Improvement Grants Capital Projects Fund
The fund is used to account for grant funds awarded 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:
Refuse Disposal Fund – This fund is used to account for the operation and the capital assets of the City’s refuse disposal service.
Municipal Bus Lines Fund – This fund is used to account for the operation and the capital assets of the City’s transportation system.
Sewer Enterprise Fund – This fund is used to account for the maintenance and operation, and the capital assets of the City’s sewage disposal service.
Municipal Fiber Network – This fund is used to account for the installation of open access network where Internet Service Providers ("ISP") will utilize the City’s fiber infrastructure to service the business community.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
Levels of inputs are as follows:
Level 1 – Inputs are unadjusted, quoted prices for identical 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, 2023
64 Note 1 – Summary of Significant Accounting Policies (Continued)
H. Interfund Transactions
Activities 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 Government -Wide Financial Statement s 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
Improvement 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, 2023
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 are reported as liabilities in the appropriate activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are 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 p lans’ 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, 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, 2023
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 p rojected 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 b eginning 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, 2023
Measurement Period July 1, 2022 to June 30, 2023
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 pa yment 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 for mulas. 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, 2023
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 – This component of net position consists of capital assets (including reported intangible assets) net of accumulated depreciation/amortization and reduced by outstanding debt that is attributed to the acquisition, construction or improvement of the assets (net of unspent debt proceeds), retention payable and related deferred outflows and inflows of resources.
Restricted – This component of net position consists of restricted assets, and reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
T. Fund Balances
In the fund financial statements, governmental funds report 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
Levy 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, 2023
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, 2023
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. Contingency 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 Projects 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 catastrophic loss of critical infrastructure 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 the Contingency Reserve commitment reserve be used, the City Manager shall present a plan to City Council to replenish the reserve within five years.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 Note 1 – Summary of Significant Accounting Policies (Continued)
T. Fund Balances (Continued)
Financial Reserves Policy (Continued)
2. Facilities 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 Facili ty 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. Recreational 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. Spending 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, 2023
72 Note 1 – Summary of Significant Accounting Policies (Continued)
W. Implementation of New Accounting Pronouncements
During the fiscal year ended June 30, 2023, the City adopted the following new Statements of the Governmental Accounting Standards Board (GASB):
GASB 96, Subscription-Based Information Technology Arrangements (SBITA)
During the fiscal year ended June 30, 2023, the City implemented GASB Statement No. 96 – Subscription-Based Information Technology Arrangements (SBITA). The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs. This Statement establishes standards of accounting and financial reporting for SBITAs by a government end user (a government). The requirements of this Statement apply to the financial statement of all state and local governments.
Under this Statement, a government is required to recognize a SBITA liability and an intangible right- of-use SBITA asset. The implementation of this new accounting standard resulted in recognition of SBITA liability and SBITA asset in the City’s June 30, 2023 financial statements . See also Notes 5 and 8.
GASB 94, Public -Private and Public -Public Partnerships (PPPs) and Availability Payment Arrangements (APAs)
This Statement establishes the definitions of PPPs and APAs and provides uniform guidance on accounting and financial reporting for transactions that meet those definitions. A PPP is an arrangement in which a government (the transferor) contracts with an operator to provide public services by conveying control of the r ight to operate or use a nonfinancial asset, such as infrastructure or other capital asset, for a period of time in an exchange or exchange -like transaction. An APA is an arrangement in which a government compensates an operator for activities that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. The implementation of this new accounting 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, 2023
73 Note 2 – Stewardship, Compliance, and Accountability
A. Deficit Fund Balances/Net Position
As of June 30, 2023, (deficit) fund balances/net position were reported in the following funds:
The material deficits are expected to be eliminated as follows:
Capital Improvement Grants – The deficit will be eliminated after grant reimbursements are received past the available period and when unavailable revenue is recognized as revenue.
Refuse Disposal Fund – The deficit is due to inclusion of the net pension liability and net OPEB liability totaling $12,398,551. The City will develop a plan to reduce the 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 the City’s fiber infrastructure to serve the business community. The City is expecting that this will generate revenue for them and allow them to operate with surplus soon.
Paratransit Fund – The deficit will be eliminated after grant monies are received after the availability period and unavailable revenue is 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 the inclusion of the net pension liability and net OPEB liability totaling $10,799,997.
Major Governmental Funds:
Capital Im provem ent G rants (3,268,711)
Major Proprietary Funds:
Refuse Disposal Fund (473,030)
Municipal Fiber Network Fund (8,114,443)
Nonmajor Governmental Funds:
Paratransit G rant (79,674)
Internal Serv ice Funds:
Equipm ent Maintenance Fund (13,395,455)
Risk Managem ent Fund (13,523,765)
Fiduciary Fund:
Private Purpose Trust Fund (20,970,060)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 $19,977,326. 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 is distributed to the City’s Successor Agency.
The City also had a deficit unrestricted net position for governmental activities and business -type activities at June 30, 2023 in the amount of ($145,638,894) and ($18,472,236), 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, 2023 were $253,979,307 and $38,914,176, respectively. The net other postemployment benefits liabilities for governmental activities and business-type activities at June 30, 2023 were $52,385,162 and $7,786,170, respectively.
B. Excess of Expenditures Over Appropriations by Department in Individual Funds
Fund Ex penditures Appropriations Ex cess of
Ex penditures over
Appropriations
Major Governmental Funds:
G eneral Fund
Fire 30,959,964$ 30,647,531$ $ (312,433) Nonmajor Governmental Funds:
Special Revenue Funds:
Operating G rants
Police 248,423 209,478 (38,946)
Parks, recreation, and community services 82,828 - (82,828) Transportation 13,528 - (13,528) Building Surcharge
Com m unity developm ent 1,402,076 887,375 (514,701) Paratransit 405,040 354,507 (50,533) Transportation
Com m unity Developm ent Block G rant 43,393 40,000 (3,393) Parks, recreation, and community services
Board of State and Com m unity Corrections 158,917 147,756 (11,161) Police
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 Note 2 – Stewardship, Compliance, and Accountability (Continued)
C. Encumbrances
Encumbrances are used to assure effective budgetary control and accountability. Encumbrances are estimation of costs related to contracts underperformed and purchase orders not yet filled.
Commitments such as contracts unperformed and purchase orders not yet filled at year end are reserved and do not constitute expenditures or estimated liabilities. The total encumbrances for the governmental funds as of June 30, 2023 are as follows:
Note 3 – Cash and Investments
Cash and investments as of June 30, 2023 are classified in the accompanying financial statements as follows:
Cash and investments as of June 30, 2023 consist of the following:
G eneral Fund 6,765,186$
Culver City Housing Authority 144,468
Capital Im provem ent and Acquisition 3,106,886
C:apital lm provem ent G rant 1,339,867
Nonm ajor governm ental fund 4,196,116
15,552,523$
G overnm ental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investm ents $ 202,216,700 $ 45,559,030 $ 4,679,389 $ 252,455,119 Cash and investm ents held with fiscal agents and trustee - 4 14,448,684 14,448,688 Restricted cash and investm ents held by OPEB Trust - - 61,199,782 61,199,782 Restricted investm ents held by Pension Trust 29,638,414 - - 29,638,414 Total cash and investments $ 231,855,114 $ 45,559,034 $ 80,327,855 $ 357,742,003 G overnment-Wide Financial Statement
Cas h:
Petty cash $ 4,550
Dem and deposits 26,419,732
Total cash 26,424,282
OPEB Mutual Funds 278,106
Investm ents 331,039,615
Total $ 357,742,003
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023
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 ar e 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, 2023, 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, 2023:
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 None 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 Investm ents not
Markets for Significant subject to the
Identical Assets Observable measurement
Investm ent Type (Level 1) Inputs (Level 2) inputs Total Treasury obligations $ - $ 66,755,501 $ - $ 66,755,501 State investm ent pool - - 74,389,974 74,389,974 U.S. governm ent sponsored enterprise securities (1) - 62,701,085 - 62,701,085 Money m arket m utual funds (1) - - 2,699,469 2,699,469 Medium -term notes (1) - 19,484,808 - 19,484,808 Cash and investm ent held with fiscal agents:
Money m arket m utual funds - 14,448,688 - 14,448,688 Restricted investm ents held by Pension and OPEB Trusts:
Money m arket m utual funds - - 55,537 55,537 OPEB Mutual Funds 278,106 278,106
Mutual funds 90,504,553 - - 90,504,553 Total $ 90,782,659 $ 163,390,082 $ 77,144,980 $ 331,317,721 (1) Priced based on institutional bond quotes.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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.
Investm ent Type Fair Value Less Than 1 Y ear 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years Treasury obligations $ 66,755,501 $ 18,317,076 $ 24,466,704 $ 14,907,353 $ 2,017,828 $ 7,046,540 State investm ent pool 74,389,974 74,389,974 - - - - U.S. governm ent sponsored enterprise securities 62,701,085 23,345,024 8,170,064 11,750,664 8,614,304 10,821,029 Money m arket m utual funds 2,699,469 2,699,469 - - - - Medium -term notes 19,484,808 6,903,705 4,341,125 5,903,984 1,230,736 1,105,258 Cash and investm ent held with fiscal agents:
Money m arket m utual funds 14,448,688 14,448,688 - - - - Restricted investm ents held by Pension and OPEB Trusts:
Money m arket m utual funds 55,537 55,537 - - - - OPEB Mutual Funds 278,106 278,106 - - - - Mutual funds 90,504,553 90,504,553 - - - - Total $ 331,317,721 $ 230,942,132 $ 36,977,893 $ 32,562,001 $ 11,862,868 $ 18,972,827 Investment Maturities (in Y ears)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 e xternal 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.
Investm ent Type Am ount
M in imu m
Legal
Rating AAA AA+ AA AA- A
Not
Rated
Treasury obligations $ 66,755,501 N/A $ - $ 66,755,501 $ - $ - $ - $ - State investm ent pool 74,389,974 N/A - - - - - 74,389,974 U.S. governm ent sponsored enterprise securities 62,701,085 N/A - 62,701,085 - - - - Money m arket m utual funds 2,699,469 AAA 2,699,469 - - - - - Medium -term notes 19,484,808 A 2,932,130 3,202,816 2,940,540 2,056,758 8,352,564 - Cash and investm ent held with fiscal agents:
Money m arket m utual funds 14,448,688 AAA 14,448,688 - - - - - Restricted investm ents held by Pension and OPEB Trusts:
Money m arket m utual funds 55,537 AAA 55,537 - - - - - OPEB Mutual Funds 278,106 AAA 278,106 - - - - - Mutual funds 90,504,553 AAA 90,504,553 - - - - - Total $ 331,317,721 $ $ 110,918,483 $ 132,659,402 $ 2,940,540 $ 2,056,758 $ 8,352,564 $ 74,389,974 Rating as of June 30, 2023
Reported % of
Issuer Investm ent type Am ount Maturity the Portfolio Federal Home Loan Bank U.S. governm ent sponsored enterprise securities $ 20,676,049 2024-2028 9.15% Federal Farm Credit Bank U.S. governm ent sponsored enterprise securities 20,824,031 2023-2028 9.21% Fannie Mae U.S. governm ent sponsored enterprise securities 19,155,201 2023-2026 8.47% Freddie Mac U.S. governm ent sponsored enterprise securities 2,045,804 2025 0.91% City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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 requireme nts 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 deposit s. 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, 2023 included a portion of pool funds invested in Structured Notes and Asset -Backed Securities:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated 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 from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit care receivables.
As of June 30, 2023 , the City had $ 74,389,974 invested in LAIF, which had invested 2.78% 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, 2023.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
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, 2023, the City reported restricted investments held by the Pension Trust in the amount of $29,638,414.
The OPEB trust reported a total investment of $ 61,199,782 at June 30, 2023. The OPEB Trust Plan is reported as a fiduciary fund.
Note 4 – Interfund Balances
A. Internal Balances
At June 30, 2023, 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, 2023, the individual fund interfund receivable payable balances are as follows:
Internal Payable
Business-Type
Internal Receiv able Activities
G overnmental Activities $ 20,241,929
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 $ - $ 123,706 $ - $ $ 123,706 Capital Im provem ent and Acquisitions Funds - 187,794 - 187,794 Capital Im provem ent G rants 1,775,587 89,879 - - 1,865,466 Culver City Housing Authority 645,994 - 2,503 - 648,497 Nonm ajor G overnm ental Funds 123,874 82,828 - 84 206,786 Proprietary Funds:
Municipal Fiber Network 1,866,173 - - - 1,866,173 Internal Service Funds 3,957,761 - - - 3,957,761 Total $ 8,369,389 $ 484,207 $ 2,503 $ 84 $ 8,856,183 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, 2023
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, 2023 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.
C. Advances To and From Other Funds
At June 30, 2023, the individual fund advances to from balances are as follows:
At June 30, 2023, the Municipal Fiber Network Fund owes the General Fund $ 15,024,242 including accrued interest of $621,647 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 $299,826.
D. Transfers In and Out
Government-Wide Financial Statements
Advances to
Other
Funds
Adv ances From Other Funds G eneral Fund
Proprietary Funds:
Municipal Fiber Network Fund $ 15,024,242
Transfers In
Business-Type
Transfers Out Activities
G overnmental Activities $ 1,317,208
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
83 Note 4 – Interfund Balances (Continued)
D. Transfers In and Out (Continued)
Fund Financial Statements
For the year ended June 30, 2023, transfers in and out consisted of the following:
Transfers from Culver City Housing Authority Fund to General Fund in the amount of $1,123,930 were to support housing administration costs.
Transfers from General Fund to Capital Improvement Grants Acquisition Fund in the amount of $6,922,389 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 $ 400,000) 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 $281,534, and from Municipal Bus Lines to the General fund of $300,000 and to Nonmajor governmental funds of $59,081 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 $1,676,290 were to pay for eligible transit related expenses.
Transfers from General Fund to Internal Service Fund in the amount of $2,000,000 were to fund claims liability in the Risk Management Fund.
Nonm ajor Municipal Internal
G overnm ental Bus Lines Service
Transfers Out G eneral Fund Funds Fund Funds Total
Governmental Funds:
G eneral Fund $ - $ 6,922,389 $ - $ - $ 2,000,000 $ 8,922,389 Culver City Housing Authority
Fund 1,123,930 - - - - 1,123,930 Nonm ajor G overnm ental Funds 2,000,000 - 281,534 1,676,290 - 3,957,824 Proprietary Funds:
Municipal Bus Lines Fund 300,000 - 59,081 - - 359,081 Total $ 3,423,930 $ 6,922,389 $ 340,616 $ 1,676,290 $ 2,000,000 $ 14,363,225 Transfers In
Governmental Funds
Capital
Im provem ent
G rants and
Acquisition
Fund
Proprietary Fund
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
84 Note 5 – Notes Receivables
At June 30, 2023, the City had $20,109,394 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, 2023 was $1,223,104.
Gov ernmental Activ ities Am ount
G eneral Fund:
All others under $200,000 individually $ 9,057
Total G eneral Fund 9,057
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 Hom e Owners, Inc. 1,223,104
Menorah Senior Housing 1,205,778
MAP Loans 570,740
Ex ceptional Children's Foundation Westside Opportunity Workshop 387,500 Hom eownership Made Easy 412,250
Ex ceptional Children's Foundation ERAS Loans 305,060
Subtotal 19,009,432
Less: allowance (2,327,914)
Total Culver City Housing Authority Special Revenue Fund, net 16,681,518 Nonm ajor Fund:
CDBG 23,819
Tilden Terrace - Commercial 3,395,000
Total Nonm ajor Fund 3,418,819
Total Gov ernmental Activ ities $ 20,109,394
Business-Type Activ ities:
Other Notes Receivable $ 1,195
Less: allowance (1,195)
Total Sewer Enterprise Fund -
Total Business-Typ e Activ ities $ -
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
85 Note 5 – Notes Receivables (Continued)
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, 2023, all outstanding balances totaled to $570,740.
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, 2023 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, 2023 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 e ntered 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, 2023, 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, 2023, the outstanding balance of the loan was in the amount of $387,500.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
86 Note 5 – Notes Receivables (Continued)
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, 2023, all outstanding balances totaled to $3,100,000.
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, 2023 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, 2023, there is one outstanding loan in the amount of $23,819.
J. Menorah Senior Housing
On September 26, 1991, the former Culver City Redevelopment Agency entered into a loan agreement with Jewish Federation-Council of Greater Los Angeles, a community based nonprofit corporation, in the amount of $1,205,778 with 3% interest rate for the development of affordable housing for senior citizens and physically handicapped persons of low income. Following the dissolution of the former Culver City Redevelopment Agency, the loan was transferred to the Housing Authority.
As of June 30, 2023, the outstanding balance of the loan was in the amount of $1,205,778.
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, 2023, the total lease receivable and deferred inflows of resources for the above leases were $ 597,380 and $745,810, respectively for the governmental activities and $98,591 and $95,709 respectively, for the business-type activities.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
87 Note 6 –Lease Receivable (Continued)
A deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight line basis over the term of the lease.
The future lease receipts for these leases are as follows:
There were no significant variable payments received during the fiscal year ended June 30, 2023.
G overnmental Activities
Y ear ending June 30 Principal Interest Total
2024 92,986$ 15,170$ 108,156$
2025 98,258 13,142 111,400
2026 103,748 10,994 114,742
2027 75,826 8,806 84,632
2028 12,136 7,930 20,066
2029 - 2039 214,426 50,280 264,706 Total 597,380$ 106,322$ 703,702$
Business-type Activities
Y ear ending June 30 Principal Interest Total
2024 98,591$ 1,609$ 100,200$
2025 - - -
2026 - - -
2027 - - -
2028 - - -
2029 - 2039 - - -
Total 98,591$ 1,609$ 100,200$
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
88 Note 7 – Capital Assets
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2023 are as follows:
Depreciation expense was charged to the following functions in the statement of activities:
Balance Balance
June 30, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated
Land $ 21,538,464 $ - $ - $ - $ 21,538,464 Construction in progress 52,204,266 40,688,973 - (27,631,342) 65,261,897 Total capital assets, not being depreciated 73,742,730 40,688,973 - (27,631,342) 86,800,361 Capital assets, being depreciated
Building 75,639,855 - - - 75,639,855 Im provem ents 43,243,829 691,175 (37,895) 3,441,837 47,338,946 Machinery and equipm ent 50,000,101 1,586,983 (160,128) - 51,426,956 Infrastructure 84,340,550 828,481 (5,281) 24,189,504 109,353,254 Right-of-use asset - 1,097,753 - - 1,097,753 Total capital assets, being depreciated 253,224,335 4,204,392 (203,304) 27,631,341 284,856,764 Less accumulated depreciation:
Building (36,199,683) (1,455,217) - - (37,654,900) Im provem ents (23,638,511) (2,214,777) 1,778 19,747 (25,831,763) Machinery and equipm ent (38,790,286) (3,164,641) 154,917 (19,747) (41,819,757) Infrastructure (31,471,853) (2,673,709) 449 - (34,145,113) Right-of-use asset - (352,852) - - (352,852) Total accumulated depreciation (130,100,333) (9,861,196) 157,144 - (139,804,385) Total capital assets, being depreciated, net 123,124,002 (5,656,804) (46,160) 27,631,341 145,052,379 Gov ernmental activ ities
capital assets, net $ 196,866,732 $ 35,032,169 $ (46,160) $ (1) $ 231,852,740 Gov ernmental Activ ities
G eneral governm ent $ 929,992
Parks, recreation, and community services 662,225
Police 399,210
Fire 488,512
Com m unity developm ent 898,342
Public works 4,335,318
Internal service funds 2,147,597
Total depreciation ex pense $ 9,861,196
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 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, 2023 are as follows:
Depreciation expense was charged to the following functions in the Statement of Activities:
Balance Balance
June 30, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated
Land $ 3,082,760 $ - $ - $ - $ 3,082,760 Construction in progress 19,134,689 2,032,544 - (12,231,061) 8,936,172 Total capital assets, not being depreciated 22,217,449 2,032,544 - (12,231,061) 12,018,932 Capital assets, being depreciated
Building 28,075,733 - - - 28,075,733 Im provem ents and other buildings 14,404,118 - - - 14,404,118 Machinery and equipm ent 57,112,241 251,647 (218,575) 88,571 57,233,884 Furniture and fix tures 420,308 - - - 420,308 Infrastructure 42,831,168 325,742 - 12,142,490 55,299,400 Investm ent in Hyperion 26,605,373 - - - 26,605,373 Right-of-use asset 730,491 239,388 - - 969,879 Total capital assets, being depreciated 170,179,432 816,777 (218,575) 12,231,061 183,008,695 Less accumulated depreciation and Amortization:
Building (14,527,091) (559,949) - - (15,087,040) Im provem ents and other buildings (8,160,816) (619,388) - - (8,780,204) Machinery and equipm ent (36,589,497) (3,622,712) 73,448 - (40,138,761) Furniture and fix tures (412,544) (5,642) - - (418,186) Infrastructure (10,493,170) (1,508,318) - - (12,001,488) Investm ent in Hyperion (19,258,820) (665,134) - - (19,923,954) Right-of-use asset (190,563) (250,620) - - (441,183) Total accumulated depreciation (89,632,501) (7,231,763) 73,448 - (96,790,816) Total capital assets, being depreciated, net 80,546,931 (6,414,986) (145,127) 12,231,061 86,217,879 Business-type activities
capital assets, net $ 102,764,380 $ (4,382,442) $ (145,127) $ - $ 98,236,811 Business-Type Activ ities
Refuse Disposal $ 397,976
Municipal Bus Lines 4,204,427
Sewer Enterprise 2,396,923
Municipal Fiber Network 232,437
Total depreciation ex pense $ 7,231,763
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
90 Note 8 – Long-term Liabilities
A. Governmental Activities
Summary of changes in governmental activities long-term liabilities for the year ended June 30, 2023 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, 2023 are as follows:
The refuse disposal, municipal bus lines, and sewer fund are typically used to liquidate the compensated absences payable.
C. Lease and SBITA Liabilities
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%.
Balance Balance Due within Due in m ore
June 30, 2022 Additions Deletions June 30, 2023 One Y ear than One Y ear Compensated absences $ 13,250,039 $ 10,059,890 $ (8,624,841) $ 14,685,088 $ 3,355,775 $ 11,329,313 Claim s and judgm ents 16,059,171 7,933,617 (4,015,462) 19,977,326 4,848,404 15,128,922 Leas e and s ubs cription liabilities
SBITA liability - 829,825 (191,349) 638,476 201,781 436,695 Total $ 29,309,210 $ 18,823,332 $ (12,831,652) $ 35,300,890 $ 8,405,960 $ 26,894,930 Balance Balance Due within Due in m ore
June 30, 2022 Additions Deletions June 30, 2023 One Y ear than One Y ear Compensated absences $ 1,537,141 $ 1,253,338 $ (1,555,029) $ 1,235,450 $ 496,003 $ 739,447 Leas e and s ubs cription liabilities
Leas e liability 556,217 - (185,469) 370,748 197,182 173,566 SBITA liability - 213,741 (68,748) 144,993 69,842 75,151 Wastewater Facilities Revenues Bonds,
2019 Series A 18,195,000 - (805,000) 17,390,000 850,000 16,540,000 Bond prem ium 3,275,830 - (119,848) 3,155,982 119,847 3,036,135 Total $ 23,564,188 $ 1,467,079 $ (2,734,094) $ 22,297,173 $ 1,732,874 $ 20,564,299 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
91 Note 8 – Long-term Liabilities (Continued)
C. Lease and SBITA Liabilities (Continued)
Lease Liability (Continued)
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2023, were as follows:
SBITA Liabilities
In accordance with GASB Statement 96, Subscription Based Information Technology Arrangements (SBITA), the City has entered into IT software subscription agreements with various vendors with subscription terms ranging from 2-5 years. Subscription payable is measured at the present value of the subscription payments expected to be made during the subscriptio n term. These SBITAs qualify as capital assets for accounting purposes and have been recorded at the present values of their future subscription payments as of the commencement dates using discount rates ranging from 1.85% to 2.4%.
As a result of these SBITAs, the City has recorded Right-to-use assets with net book value of $924,234 and subscription liability of $783,468 as of June 30, 2023.
The schedule of future payments for the SBITA liability is shown below:
Business-type Activities
Y ear ending June 30 Principal Interest Total
2024 197,182$ 8,449$ 205,631$
2025 173,566 2,411 175,977
Total 370,748$ 10,860$ 381,608$
G overnmental Activities
Y ear ending June 30 Principal Interest Total
2024 201,781$ 14,006$ 215,787$
2025 212,681 9,580 222,261
2026 224,014 4,914 228,928
Total 638,476$ 28,500$ 666,976$
Business-Type Activities
Y ear ending June 30 Principal Interest Total
2024 69,842$ 3,414$ 73,256$
2025 75,151 1,769 76,920
Total 144,993$ 5,183$ 150,176$
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
92 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 obligations of the City payable solely from net revenues, whic h 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, 2023.
The 2019 Bonds mature beginning September 1, 2021 with final payment of principal due on September 1, 2049.
Interest rate is 4% in 2022 and 4% to 5% from 2023 to 2049.
Future amounts to amortize the 2019 Wastewater Revenue Bonds are as follows:
Fiscal Y ear Principal Interest Total
2024 $ 850,000 $ 758,700 $ 1,608,700 2025 895,000 715,075 1,610,075
2026 940,000 669,200 1,609,200
2027 990,000 620,950 1,610,950
2028 1,045,000 570,075 1,615,075
2029-2033 3,325,000 2,190,875 5,515,875
2034-2038 2,130,000 1,664,950 3,794,950
2039-2043 2,600,000 1,191,000 3,791,000
2044-2048 3,165,000 616,300 3,781,300
2049-2050 1,450,000 58,600 1,508,600 Total $ 17,390,000 $ 9,055,725 $ 26,445,725 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
93 Note 10 – Claims and Judgments
Self-Insurance
At June 30, 2023, 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 3, the City has recorded a liability in the amount of $19,977,326 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, 2023 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
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 2022-23 16,059,171 7,933,617 (4,015,462) 19,977,326 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
94 Note 11 – Pension Plans
A. California Public Employees’ Retirement System (“CalPERS”)
At June 30, 2023, 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
$ 5,707,054 $ 3,117,832 $ 8,824,886 Safety 12,806,718 - 12,806,718 Changes of assum ptions:
Miscellaneous 4,304,563 2,351,635 6,656,198 Safety - - - Difference between ex pected and actual ex perience:
Miscellaneous - - - Safety 28,163,141 - 28,163,141 Difference in projected and actual earnings on:
pension investm ents:
Miscellaneous 8,470,512 4,627,544 13,098,056 Safety - - - Total deferred outflow s of resources
$ 59,451,988 $ 10,097,011 $ 69,548,999 Net p ension liab ilities:
Miscellaneous $ 71,230,672 $ 38,914,176 $ 110,144,848 Safety 182,748,635 - 182,748,635 Total net p ension liab ilities $ 253,979,307 $ 38,914,176 $ 292,893,483 Deferred inflow s of resources:
Difference between ex pected and actual ex perience:
Miscellaneous $ 1,686,280 $ 921,236 $ 2,607,516 Safety - - - Total deferred inflow s of resources $ 1,686,280 $ 921,236 $ 2,607,516 Pension E xpense (Income):
Miscellaneous $ 8,093,988 $ 4,421,844 $ 12,515,832 Safety 22,153,021 - 22,153,021 $ 30,247,009 $ 4,421,844 $ 34,668,853 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
95 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, 2021 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, 2022 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 10.01% 10.01% 10.01% 10.01% City M iscellaneous Plan
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
96 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 20.17%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.17%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.17%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
20.17%
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 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 20.17%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.17%%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
Total 20.17%%.
Management
em ployees pay 9%
of em ployer cost
through cost-
sharing
20.17%
City Safety Plan - Fire
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
97 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, 2021, the valuation date, the following employees were covered by the benefit terms:
Miscellaneous Safety
Active employees 471 165
Transferred and terminated employees 715 72 Retired Employees and Beneficiaries 690 306 Total 1,876 543
Plans
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
98 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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022. The total pension liability is based on the following actuarial methods and assumptions.
Actuarial Cost Method Entry Age Actuarial Cost Method
Actuarial Assum ptions:
Discount Rate 6.90%
Inflation 2.30%
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 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter The m ortality table used was developed based on CalPERS-specific data. The probabilities of m ortality are based on the 2021 CalPERS Ex perience Study for the period from 2001 to 2019. Pre-retirem ent and Post-retirem ent m ortality rates include generational m ortality im provem ent using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Ex perience Study and Review of Actuarial Assum ptions report from Novem ber 2021 that can be found on the CalPERS website.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
99 Note 11 – Pension Plans (Continued)
A. California Public Employees’ Retirement System (“CalPERS”) (Continued)
General Information about the Pension Plan (Continued)
Changes of Assumptions/Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatilit y that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the Board elected to defer any changes to the ass et allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions were reflected in the GASB 68 accounting valuation report s for the June 30, 2022, measurement date.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
100
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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.
The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
The expected real rates of return by asset class are as follows:
Assum ed
Asset
Asset class (1) Allocation Real Return(1)(2)
G lobal Equity - Cap-weighted 30.00% 4.54%
G lobal Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investm ent G rade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
(1) An ex pected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Managem ent study.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
101
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 6.9%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarial ly 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, 2021 (V aluation Date) $ 349,390,534 $ 283,900,437 $ 65,490,098 Changes Recognized for the Measurem ent Period:
Service Cost 6,864,220 - 6,864,220 Interest on the total pension liability 24,209,089 - 24,209,089 Changes of benefit term s - - - Changes of assum ptions 10,816,322 - 10,816,322 Difference between ex pected and actual ex perience (3,919,742) - (3,919,742) Net plan to plan resource m ovem ent - (23,330) 23,330 Contributions from the em ployer - 11,881,157 (11,881,157) Contributions from em ployees - 2,953,145 (2,953,145) Net investm ent incom e - (21,318,980) 21,318,980 Benefit paym ents, including refunds of em ployee
contribution (17,725,731) (17,725,731) - Administrative ex penses - (176,853) 176,853 Net Changes during July 1, 2021 to June 30, 2022 20,244,158 (24,410,592) 44,654,750 Balance at June 30, 2022 (Measurement Date) $ 369,634,692 $ 259,489,845 $ 110,144,848 M iscellaneous Plan
Increase (Decrease)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
102
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 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage- point lower ( 5.90%) or 1 percentage -point higher ( 7.90%) 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, 2021 (V aluation Date) $ 443,152,890 $ 319,739,818 $ 123,413,072 Changes Recognized for the Measurem ent Period:
Service Cost 7,857,550 - 7,857,550 Interest on the total pension liability 31,029,143 - 31,029,143 Changes of benefit term s - - - Changes of assum ptions 13,700,465 - 13,700,465 Difference between ex pected and actual ex perience 1,302,331 - 1,302,331 Net plan to plan resource m ovem ent - 23,330 (23,330) Contributions from the em ployer - 16,392,333 (16,392,333) Contributions from em ployees - 2,499,775 (2,499,775) Net investm ent incom e - (24,162,333) 24,162,333 Benefit paym ents, including refunds of em ployee
contribution (24,773,459) (24,773,459) - Administrative ex penses - (199,179) 199,179 Net Changes during July 1, 2021 to June 30, 2022 29,116,030 (30,219,533) 59,335,563 Balance at June 30, 2022 (Measurement Date) $ 472,268,920 $ 289,520,285 $ 182,748,635 Safety Plan
Increase (Decrease)
1% Decrease Current Rate 1% Increase
Net Pension Liab ility (5.90%) (6.90%) (7.90%)
Miscellaneous Plan $ 158,772,753 $ 110,144,848 $ 69,938,594 Safety Plan $ 246,704,996 $ 182,748,634 $ 130,379,268 Discount Rate
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
103
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 $12,515,832 and $22,153,021 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 $ 8,824,886 $ - Difference between ex pected and actual ex perience - (2,607,516) Changes of assum ptions 6,656,198 - Net difference between projected and actual earning on
pension plan investm ents 13,098,056 - Balance at June 30, 2022 (Measurement Date) $ 28,579,140 $ (2,607,516) Pension Ex pense and Deferred outlaws 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 $ 12,806,718 $ - Difference between ex pected and actual ex perience 3,256,000 - Changes of assum ptions 10,358,888 - Net difference between projected and actual earning on
pension plan investm ents 14,548,253 - Balance at June 30, 2022 (Measurement Date) $ 40,969,859 $ - M iscellaneous Plan
Safety Plan
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
104
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 2021-22 measurement period is 2.6 and 4.1 years, which was obtained by dividing the total service years of 4,897 and 1,876 (the sum of remaining service lifetimes of the active employees) by 2,212 and 543 (the total number of participants: active, inactive, and retired), respectively.
The $8,824,886 and $12,806,718 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, 2023 will be recognized as a reduction of the net pension liability in the year ending June 30, 2024 . 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
2023 $ 4,574,258 $ 7,257,776
2024 3,480,797 6,542,105
2025 937,728 4,798,856
2026 8,153,955 9,564,404
Total $ 17,146,738 $ 28,163,141
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
105
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 $ 86,746 for the year ended June 30, 2023.
Note 12 – Other Postemployment Benefits (“OPEB”)
At June 30, 2023, 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 $ 1,910,097 283,904 2,194,001 Change in assum ption 6,660,238 989,932 7,650,170 Total deferred outflow s of resources $ 8,570,335 $ 1,273,836 $ 9,844,171 Net OPE B liab ilities: $ 52,385,162 $ 7,786,170 $ 60,171,332 Total net OPE B liab ilities $ 52,385,162 $ 7,786,170 $ 60,171,332 Deferred inflow s of resources
Change in assum ption $ 616,277 $ 91,599 $ 707,876 Difference between ex pected and actual ex perience 14,732,143 2,189,685 16,921,828 Total deferred inflow s of resources $ 15,348,420 $ 2,281,284 $ 17,629,704 O P EB Expe ns e $ 659,824 $ 98,072 $ 757,896 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
106
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
Plan Description
In addition to the retirement plan described in Note 11, 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 immediately 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 $708.66 for single coverage, increasing by up to 4% per year.
o An additional monthly reimbursement of up to $618.56 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 who 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, 2023
107
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, 2023, 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 3, 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, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement unless otherwise specified:
The actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2020 through June 30, 2021.
Active plan members 651
Inactive employees or beneficiaries currently
receiving benefit paym ents 593
Inactive em ployees entitled to but not yet
receiving benefit paym ents 80
Total 1,324
Discount rate 6.00%
Inflation 2.50%
Aggregate payroll increases 2.75%
Expected long-term investment rate of return 6.00%
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, 2023
108
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 is 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
Allocation 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, 2023
109
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- point higher (7. 00 percent) than the current discount rate:
Sensitivity of the net OPEB liability to changes in the healthcare 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 ( 7.50 percent decreasing to 2.45 percent) or 1-percentage-point higher (9.50 percent decreasing to 4.45 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, 2022 $ 118,995,859 $ 56,053,813 $ 62,942,046 Changes Recognized for the Measurem ent Period:
Service Cost 1,943,933 - 1,943,933 Interes t on the total OPEB liability 7,057,600 - 7,057,600 Difference between ex pected and actual ex perience - - - Changes of assum ptions - - - Contributions from the em ployer - 6,645,802 (6,645,802) Net investm ent incom e - 5,161,674 (5,161,674) Benefit payments (6,626,279) (6,626,279) - Administrative ex penses - (35,229) 35,229 Net Changes during July 1, 2022 to June 30, 2023 2,375,254 5,145,968 (2,770,714) Balance at June 30, 2023 $ 121,371,113 $ 61,199,781 $ 60,171,332 Increase (Decrease)
1% Decrease Current Rate 1% Increase
(5.00%) (6.00%) (7.00%)
Net OPE B Liab ility $ 74,589,106 $ 60,171,332 $ 48,101,200 Discount Rate
1% Decrease Current Trend 1% Increase
Net OPE B Liab ility $ 46,691,136 $ 60,171,332 $ 75,693,081 Healthcare Trend Rate
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
110
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, 2023, the City recognized OPEB expense of $757,896. At June 30, 2023, 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, 2022, 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 $ 2,194,001 $ - Difference between ex pected and actual ex perience - (16,921,828) Changes in assum ption 7,650,170 (707,876) Total $ 9,844,171 $ (17,629,704)
Measurement Period Deferred Outflow s/
Ending June 30 (Inflows) of Resources
2024 $ (4,148,213)
2025 (4,177,080)
2026 1,715,834
2027 (987,697)
2028 (188,377)
Thereafter
Total $ (7,785,533)
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
111
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 employee participants and their beneficiaries. Theref ore, 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
112
Note 15 – Classification of Fund Balances
At June 30, 2023, fund balances are classified as follows:
Culver City Capital Capital 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 $ 9,057 $ - $ - $ - $ - $ 9,057 Lease receivables 597,380 597,380
Advances to other funds 15,024,242 - - - - 15,024,242 Total nonspendable 15,630,679 - - - - 15,630,679 Restricted
Road construction - - - - 21,169,383 21,169,383 Housing authority - 30,578,565 - - 1,210,296 31,788,861 Public safety - - - - 27,605,996 27,605,996 Other purposes - - - - 353,161 353,161 Redevelopm ent - - - - 7,714,773 7,714,773 Equipm ent purchases - - - - 298,448 298,448 Construction of capital assets - - 8,240,868 1,214,325 9,455,193 Com m unity developm ent - - - - 6,106,409 6,106,409 Pension trust 29,638,414 - - - - 29,638,414 Total restricted 29,638,414 30,578,565 8,240,868 - 65,672,792 134,130,639 Committed
Contingency 50,471,742 - - - - 50,471,742 Facility Planning 23,620,445 - - - - 23,620,445 Public safety equipm ent 194,140 - - - - 194,140 Recreation facilities 2,234,696 - - - - 2,234,696 Total committed 76,521,023 - - - - 76,521,023 Assigned
Encumbered contracts 6,765,186 - - - - 6,765,186 Total assigned 6,765,186 - - - - 6,765,186 Unassigned 24,835,315 - - (3,268,711) (79,674) 21,486,930 Total fund balance $ 153,390,617 $ 30,578,565 $ 8,240,868 $ (3,268,711) $ 65,593,118 $ 254,534,457 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
113
Note 16 – Prior Period Adjustment
The beginning fund balance s of the City’s Housing Authority Fund and Section 8 Housing Fund were restated to record loans receivable that were not reported in the prior years and to correct the accrual of prior year invoices.
The beginning fund balance s of the Safe/Clean Water Protection and Measure W funds were restated to record expenses in the proper fund accounts.
Note 17 – Subsequent Events
The City has evaluated events subsequent to June 30, 2023 to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through February 20, 2024, 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 Assemb ly Bill 1x 27 on the grounds that these bills violate the California Constitution.
Culver City
Housing
Authority Section 8 Housing
Beginning fund balance - as previously reported 37,105,277$ 1,019,996$ Adjustm ent to recognize unreported loans receivable 2,356,190 - Adjustm ent to correct prior year invoices - 126,949 Beginning fund balance - as restated 39,461,467$ 1,146,945$ Safe/Clean Water
Protection Measure W
Beginning fund balance - as previously reported 8,993,268$ 4,132,387$ Adjustm ent to recognize prior year ex penditures in the proper funds 1,785,004 (1,785,003) Beginning fund balance - as restated 10,778,272$ 2,347,384$ City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
114
Note 1 8 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
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 u nder 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 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 financial statements of the City. After the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA are reported in a fiduciary fund in the financial statements of the City.
All other assets, obligations, and activities of the Dissolved RDA have also been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
The Dissolution Act and AB 1484 also establish roles for the County Auditor -Controller, the California Department of Finance (the “DOF”) and the California State Controller’s 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 p aid 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.
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
115
Note 18 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
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 c ontractually 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.
CAPITAL ASSETS
Summary of changes in capital assets for the year ended June 30, 2023 is as follows:
Balance Balance
June 30, 2022 Additions Deletions June 30, 2023
Capital assets, not being depreciated
Land $ 8,316,229 $ - $ (280,000) $ 8,036,229 Total capital assets, not being depreciated 8,316,229 - (280,000) 8,036,229 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 (985,201) (68,595) - (1,053,796) Im provem ents (252,799) (18,180) - (270,979) Infrastructure (675,145) (52,128) - (727,273) Total accumulated depreciation (1,913,145) (138,903) - (2,052,048) Total capital assets, being depreciated, net 4,486,572 (138,903) - 4,347,669 Fiduciary Fund
capital assets, net $ 12,802,801 $ (138,903) $ (280,000) $ 12,383,898 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
116
Note 1 8 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
LONG-TERM LIABILITIES
Summary of changes in long-term liabilities for the year ended June 30, 2023 is as follows:
2011 Tax Allocation Revenue Bonds Series A
On March 4, 2011, the Agency issued $13,827,887 of Series A Tax Allocation Capital Appreciation Bonds.
The proceeds were used to: 1) pay costs of issuance 2) provide a reserve, 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 a result of the refunding, the 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, 2023, the reserve with fiscal agent was in the amount of $ 1,386,411 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, 2023 was $1,885,487. The accreted interest amount on the Capital Appreciation Bonds at June 30, 2023 was $2,836,549.
Balance Balance Due within Due in m ore
June 30, 2022 Additions Deletions June 30, 2023 One Y ear than One Y ear 2011 A Tax Ex empt Tax Allocation
Revenue Bonds (CABS) $ 2,194,185 $ - $ (308,698) $ 1,885,487 $ 1,075,621 $ 809,866 Accreted Interest on 2011 A Tax
Allocation 2,885,853 - (49,304) 2,836,549 1,593,374 1,243,175 2017 A and B Tax Allocation Bonds 53,695,000 - (11,165,000) 42,530,000 9,770,000 32,760,000 Subtotal 58,775,038 - (11,523,002) 47,252,036 12,438,995 34,813,041 Unam ortized original issue prem ium 8,140,393 - (1,285,326) 6,855,067 - 6,855,067 Total $ 66,915,431 $ - $ (12,808,328) $ 54,107,103 $ 12,438,995 $ 41,668,108 City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
117
Note 1 8 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
2011 Tax Allocation Revenue Bonds Series A (continued)
The annual debt service requirements on the remaining 2011 Tax Allocation Revenue Bonds Series A are as follows:
2017 Tax Allocation Refunding Bonds Series A and B
On December 4, 2017, the Agency issued a total of $98,435,000 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. The 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 November 1, 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 $5,000 and are not subject to optional redemption prior to their maturity dates.
The annual debt service requirements on these bonds are as follows:
Fiscal Y ear Principal Interest Total
2024 1,075,621$ 1,595,652$ 2,671,273$
2025 809,866 1,240,897 2,050,763
Total $ 1,885,487 $ 2,836,549 $ 4,722,036 2011 Series A Tax Allocation Revenue Bond
Fiscal Y ear Principal Interest Total
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 5,460,000 423,250 5,883,250
2029 5,735,000 143,375 5,878,375
Total 42,530,000$ 5,480,750$ 48,010,750$
2017 A Tax Allocation Bonds
City of Culver City
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
118
Note 1 8 – Successor Agency Trust for Assets and Liabilities of Former Redevelopment Agency (Continued)
Pledged Revenues for Tax Allocation Bonds
The Trust has a number of Tax Allocation bonds outstanding that are collateralized by the pledging of property tax increment revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented. The purposes for which t he proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes.
The beginning net position of the Successor Agency was restated as follows:
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 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.
Private Purpose
Trust Fund
Beginning net position - as previously reported (33,908,660)$ Adjustm ent to correct prior year invoices (202,979)
Beginning net position - as restated (34,111,639)$
City of Culver City, California
Required Supplementary Information
City of Culver City, California
119
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, 2023
120
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 covered payroll 217.40% 225.69% 259.16% 279.77% 261.34% 2 Net of administrative expenses for 2013-14.
4 Includes one year’s payroll gro wt husing 2.80% payroll gro wt hassumption for fiscal year ended June 30, 2022; 2.75% payroll gro wt hassumption for fiscal years ended June 30, 2018-21; 3.00% payroll grow th assumption for fiscal years ended June 30, 2014-17. 3 During Fiscal Year 2017-18, as a result of G overnmental 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 ichGASB No. 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
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2023
121
Measurement period 2018-19 2019-20 2020-21 2021-22
T otal pension liability
Service cost 6,100,488$ 6,152,289$ 6,329,689$ 6,864,220$ Interest 21,824,037 22,694,983 23,627,525 24,209,089 Changes of benefit terms 48,596 - 117,535 - Changes of assumptions - - - 10,816,322 Differences between expected and actual experience 5,548,202 (1,298,128) (753,559) (3,919,742) Benefit payments, including refunds of employee contributions (14,141,132) (14,801,355) (15,713,448) (17,725,731) Net change in total pension liability 19,380,191 12,747,789 13,607,742 20,244,158 T otal pension liability - beginning 303,654,812 323,035,003 335,782,792 349,390,534 T otal pension liability - ending (a) 323,035,003$ 335,782,792$ 349,390,534$ 369,634,692$ Pension fiduciary net position
Contributions - employer 8,759,782$ 10,092,870$ 10,957,281$ 11,881,157$ Contributions - employee 2,735,156 2,804,801 2,740,550 2,953,145 Net investment income 2
13,964,311 11,172,797 52,656,347 (21,318,981) Benefit payments, including refunds of employee contributions (14,141,132) (14,801,355) (15,713,448) (17,725,731) Net plan to plan resource movement - - (8,885) (23,330) Administrative expense (152,275) (316,559) (233,254) (176,853) Other miscellaneous expense 3
495 - - - Net change in plan fiduciary net position 11,166,337 8,952,554 50,398,591 (24,410,593) Plan fiduciary net position - beginning 213,382,955 224,549,292 233,501,846 283,900,437 Plan fiduciary net position - ending (b) 224,549,292$ 233,501,846$ 283,900,437$ 259,489,844$ Plan net pension liability - ending (a) - (b) 98,485,711$ 102,280,946$ 65,490,097$ 110,144,848$ Plan fiduciary net position as a percentage
of the total pension liability 69.51% 69.54% 81.26% 70.20% Covered payroll 4
35,965,617$ 36,664,416$ $38,572,142 $37,882,008
Plan net pension liability as a percentage of covered payroll 273.83% 278.97% 169.79% 290.76% Notes to Schedule:
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities w as informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
The accounting discount rate w as 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Changes of Benefit Terms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liabilities and Related Ratios (Continued) Year Ended June 30, 2023
122
Measurement period 2013-14 1
2014-15 2015-16 2016-17 2017-18
T otal pension liability
Service cost 5,059,461$ 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 cov ered pay 531.90% 568.53% 639.83% 673.92% 656.79% 2 Net of administrative expenses for 2013-14.
California Public Employees' Retirement System ("CalPERS") - Safety Plan 3 During Fiscal Year 2017-18, as a result of Governmental 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 tateof 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 with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 1 Historical information is presented only for measurement periods for wh ichGASB No. 68 is presented for periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available. 4 Includes one year’s payroll gro wt husing 2.80% payroll gro wt hassumption for fiscal year ended June 30, 2022; 2.75% payroll gro wt hassumption for fiscal years ended June 30, 2018-21; 3.00% payroll grow th assumption for fiscal years ended June 30, 2014-17.
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, 2023
123
Measurement period 2018-19 2019-20 2020-21 2021-22
T otal pension liability
Service cost 6,716,477$ 6,677,059$ 7,125,026$ 7,857,550$ Interest 27,808,946 28,910,371 30,110,920 31,029,143 Changes of benefit terms - - - - Changes of assumptions - - - 13,700,465 Differences between expected and actual experience 3,041,661 1,935,553 3,483,416 1,302,331 Benefit payments, including refunds of employee contributions (20,370,103) (21,703,315) (23,304,571) (24,773,459) Net change in total pension liability 17,196,981 15,819,668 17,414,791 29,116,030 T otal pension liability - beginning 392,721,450 409,918,431 425,738,099 443,152,890 T otal pension liability - ending (a) 409,918,431$ 425,738,099$ 443,152,890$ 472,268,920$ Pension fiduciary net position
Contributions - employer 11,760,090$ 13,635,532$ 15,257,575$ 16,392,333$ Contributions - employee 2,192,763 2,334,755 2,568,476 2,499,775 Net investment income 2
16,205,685 12,857,771 59,880,432 (24,162,332) Benefit payments, including refunds of employee contributions (20,370,103) (21,703,315) (23,304,571) (24,773,459) Net plan to plan resource movement - - 8,885 23,330 Administrative expense (177,851) (364,893) (265,313) (199,179) Other miscellaneous expense 3
581 - - - Net change in plan fiduciary net position 9,611,165 6,759,850 54,145,484 (30,219,532) Plan fiduciary net position - beginning 249,223,319 258,834,484 265,594,334 319,739,818 Plan fiduciary net position - ending (b) 258,834,484$ 265,594,334$ 319,739,818$ 289,520,286$ Plan net pension liability - ending (a) - (b) 151,083,947$ 160,143,765$ 123,413,072$ 182,748,634$ Plan fiduciary net position as a percentage
of the total pension liability 63.14% 62.38% 72.15% 61.30% Covered payroll 4
23,257,305$ 23,313,753$ $25,283,983 $25,872,736
Plan net pension liability as a percentage of covered payroll 649.62% 686.91% 488.11% 706.34% Notes to Schedule:
Changes of Benefit T erms: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of T wo Years Addit ional Service Credit (a.k.a. Go ldenHandshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities w as informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
The accounting discount rate w as 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
Year Ended June 30, 2023
124
2013-141
2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 6,638,283$ 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
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.
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 determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2021 funding valuation report.
3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions – Pensions (Continued)
Year Ended June 30, 2023
125
2018-19 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution 8,759,782$ 10,092,870$ 10,957,281$ 11,881,157$ 8,824,886$ Contributions in relation to the actuarially determined contribution (8,759,782) (10,092,870) (10,957,281) (11,881,157) (8,824,886) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll2, 3
35,965,617$ 36,664,416$ 38,572,142$ 37,882,008$ 40,722,780$ Contributions as a percentage of covered payroll2
24.36% 27.53% 28.41% 31.36% 21.67%
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, 2023
126
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) Contribution 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
Last Ten Fiscal Years
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 mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
3 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% 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. 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 2021-22 were from the June 30, 2021 funding valuation report.
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions – Pensions (Continued)
Year Ended June 30, 2023
127
2018-19 2019-20 2020-21 2021-22 2022-23
Actuarially determined contribution 11,760,090$ 13,635,532$ 15,257,575$ 16,392,333$ 12,806,718$ Contributions in relation to the actuarially determined contribution (11,760,090) (13,635,532) (15,257,575) (16,392,333) (12,806,718) Contribution deficiency (excess) -$ -$ -$ - - Covered payroll2, 3
23,257,305$ 23,313,753$ 25,283,983$ 25,872,736$ 26,693,723$ Contributions as a percentage of covered payroll2
50.57% 58.49% 60.34% 63.36% 47.98%
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Changes in NET OPEB Liabilities and Related Ratios Year Ended June 30, 2023
128
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 2022 and 2021, 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 2022, the accounting discount rate remains at 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, 2023
129
M easurement period 2019-20 2020-21 2021-22 2022-23
Total OPEB liability
Service cost 2,519,161$ 2,120,093$ 2,102,062$ 1,943,933$ Interest 8,597,512 7,480,807 7,699,100 7,057,600 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) (6,626,279) Net change in total OPEB liability (16,781,267) 3,542,007 (544,843) 2,375,254 Total OPEB liability - beginning 132,779,962 115,998,695 119,540,702 118,995,859 Total OPEB liability - ending (a) 115,998,695$ 119,540,702$ 118,995,859$ 121,371,113$ OPEB fiduciary net position
Contributions - employer 6,073,330$ 6,071,864$ 6,404,161$ 6,645,802$ Net investment income 2,964,438 14,566,767 (9,270,972) 5,161,674 Benefit payments, including refunds of
employee contributions (6,059,415) (6,058,893) (6,390,150) (6,626,279) Administrative expense (13,915) (29,346) (31,585) (35,229) Net change in plan fiduciary net position 2,964,438 14,550,392 (9,288,546) 5,145,968 Plan fiduciary net position - beginning 47,827,529 50,791,967 65,342,359 56,053,813 Plan fiduciary net position - ending (b) 50,791,967$ 65,342,359$ 56,053,813$ 61,199,781$ Plan net OPEB liability - ending (a) - (b) 65,206,728$ 54,198,343$ 62,942,046$ 60,171,332$ Plan fiduciary net position as a percentage
of the total OPEB liability 43.79% 54.66% 47.11% 50.42% Covered-employee payroll 64,408,288$ 63,028,918$ 64,592,679$ 66,994,341$ Plan net OPEB liability as a percentage of
covered-employee payroll 101.24% 85.99% 97.44% 89.82%
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions - OPEB
Year Ended June 30, 2023
130
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) Contribution deficiency (excess) 821,000$ 990,000$ (250,000)$ 80,000$ (2,022,000)$ Covered payroll N/A 46,399,000$ N/A 47,105,000$ 52,215,000$ Contributions as a percentage of
covered-employee 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 17-year fixed period for 2022/23 Asset valuation method
Inflation 2.50%
M edical Trend
Salary increases 2.75%
Investment rate of return 6.00%
Retirement age
M ortality
1 GASB 75 requires this information for plans funding with OPEB trusts be reported in the employer’s Required Supplementary Information for 10 years or as many years as are available upon implementation. The plan was not funded with an OPEB trust prior to 6/30/12. 2 The June 30, 2015 actuarial valuation provided the Actuarially Determined Contributions for fiscal years ended 6/30/16 and 6/30/17, the June 30, 2017 actuarial valuation provided the Actuarially Determined Contributions for fiscal year ended 6/30/18 and 6/30/19, the June 30, 2019 actuarial valuation provided the Actuarially Determined Contributions for fiscal year ended 6/30/20 and 6/30/21, the June 30, 2021 actuarial valuation provided the Actuarially Determined Contributions for fiscal year ended 6/30/22 and 6/30/23.
Actuarially determined contribution rates are calculated as of June 30, 2022, one year prior to the end of the fiscal year in which contribution are reported.
Non-Medicare - 8.50% for 2024, decreasing to an ultimate rate of
3.45% in 2076; Medicare (Non-Kaiser) - 7.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076; M edicare(Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076.
M ortality rates were based on CalPERS 2000-2019 Healthy Annuitant M ortality 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.
Other Postemployment Benefits ("OPEB")
Last Ten Fiscal Years
City of Culver City
Required Supplementary Information (Unaudited)
Schedule of Contributions – OPEB (Continued)
Year Ended June 30, 2023
131
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Actuarially determined contribution2
9,422,000$ 8,885,000$ 9,049,000$ 9,219,000$ 7,144,000$ 7,268,000$ 6,778,000$ 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) (6,645,802) Contribution deficiency (excess) (1,615,000)$ (2,055,000)$ (2,127,363)$ 3,145,670$ 1,072,136$ 863,839$ 132,198$ Covered payroll 56,415,000$ 57,411,000$ 58,966,981$ 64,408,288$ 63,028,918$ 64,592,679$ 66,994,341$ Contributions as a percentage of
covered-employee payroll2
19.56% 19.06% 18.95% 9.43% 9.63% 9.91% 9.92%
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB")
City of Culver City
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
Year Ended June 30, 2023
132
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Taxes 107,913,288$ 111,931,071$ 116,350,104$ 4,419,033$ Licenses and permits 5,345,500 4,528,400 4,010,256 (518,144) Fines and forfeitures 3,065,500 3,417,000 5,290,389 1,873,389 Intergovernmental 6,849,184 7,486,600 8,055,497 568,897 Charges for services 9,552,007 12,292,271 10,949,213 (1,343,058) Investment earnings 2,145,071 1,728,645 4,366,286 2,637,641 M iscellaneous 1,195,510 1,275,775 1,793,616 517,841 Total revenues 136,066,060 142,659,762 150,815,362 8,155,599 EXPENDITURES :
Current:
General government 18,488,568 19,413,670 17,840,175 1,573,495 Parks, recreation, and community services 11,008,221 12,038,456 10,241,805 1,796,651 Police 50,160,473 50,755,113 50,091,619 663,494 Fire 29,558,593 30,647,531 30,959,964 (312,433) Community development 11,433,666 13,861,792 10,244,598 3,617,194 Public works 17,082,165 19,274,504 14,996,165 4,278,340 Capital outlay 529,162 611,300 506,355 104,945 Debt service:
Principal payment - - 267,928 (267,928) Interest - - 2,258 (2,258) Total expenditures 138,260,848 146,602,367 135,150,867 11,451,499 REVENUE OVER (UNDER) EXPENDITURES (2,194,788) (3,942,604) 15,664,494 19,607,098 OTHER FINANCING S OURCES (US ES ):
Transfers in 3,423,930 4,673,930 3,423,930 (1,250,000) Transfers out (5,694,643) (6,922,389) (8,922,389) (2,000,000) Proceeds from SBITA financing - - 267,928 267,928 Total other financing sources (uses) (2,270,713) (2,248,459) (5,230,531) (2,982,072) CHANGE IN FUND BALANCE (4,465,501) (6,191,063) 10,433,963 16,625,027 FUND BALANCE:
Beginning of year 142,956,654 142,956,654 142,956,654 - End of year 138,491,153$ 136,765,591$ 153,390,617$ 16,625,027$ Budgeted Amounts
General Fund
City of Culver City
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule
Year Ended June 30, 2023
133
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Investment earnings -$ -$ 432,608$ 432,608$ M iscellaneous - - 5,000 5,000 Total revenues - - 437,608 437,608 EXPENDITURES :
Current:
Community development (58,850) 12,872,747 896,580 11,976,167 Capital outlay - 7,300,000 7,300,000 - Total expenditures (58,850) 20,172,747 8,196,580 11,976,167 REVENUE OVER (UNDER) EXPENDITURES 58,850 (20,172,747) (7,758,972) 12,413,775 OTHER FINANCING S OURCES (US ES ):
Transfers in - 4,996,277 - (4,996,277) Transfers out - (1,123,930) (1,123,930) - Total other financing sources (uses) - 3,872,347 (1,123,930) (4,996,277) CHANGE IN FUND BALANCE 58,850 (16,300,400) (8,882,902) 7,417,498 FUND BALANCE:
Beginning of year, as restated 39,461,467 39,461,467 39,461,467 - End of year 39,520,317$ 23,161,067$ 30,578,565$ 7,417,498$ 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, 2023
134
Note 1 - Budgets and Budgetary Data
Total appropriationsfor each fund may only be increased or decreased by the City Councilby passage of a resolution amendingthe budget, with the exception of budget adjustments which involveoffsetting revenues and expenditures. In cases involvingoffsettingrevenues and expenditures,the Chief 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 has the authorityto adjust the amounts appropriated between the departments and activitiesof a fund, objects within each departmental activity and between accounts within the objects, provided; however, that the total appropriations for each fund do not exceed the amounts provided in the budget resolution.
The level at which expenditures may not legally exceed appropriations is the fund level.
All appropriationslapse at the fiscal year-end unless City Council takes formal action in the form of a resolution to continue the appropriation into the following year.
Budgets for the various funds are adopted on a basis consistent with 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 resolutionspecifyingthe total appropriationfor each departmental activity, such as Police Administration, Street Maintenance, and other activities.
Non-Major Funds /
Other Financial Information
City of Culver City, California
135
SUPPLEMENTARY INFORMATION
City of Culver City
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
136
Special Capital
Revenue Projects
Funds Funds Total
A SSE TS
Cash and investments 58,810,512$ 4,352,648 63,163,160$ Accounts receivables, net 281,160 2 281,162 Interest receivables 288,984 1,186,150 1,475,133 Notes receivables, net 23,819 3,395,000 3,418,819 Due from other funds 2,503 - 2,503 Due from other governments 654,576 50,175 704,751 Due from Westside COG 82,828 - 82,828 Total assets 60,144,382$ 8,983,975$ 69,128,357$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 1,044,077$ (264) 1,043,813$ Salaries and benefits payable 30,932 - 30,932 Due to other funds 156,611 50,175 206,786 Due to Successor Agency - 1,106,047 1,106,047 Deposits payable 452,144 113,245 565,389 Retention payable 27,151 - 27,151 Due to other governments 126,213 - 126,213 Total liabilities 1,837,128 1,269,203 3,106,331 Deferred inflows of resources:
Unavailable grant revenues 428,909 - 428,909 Total deferred inflows of resources 428,909 - 428,909 Fund Balances:
Restricted 57,958,019 7,714,772 65,672,791 Committed - - - Unassigned (deficit) (79,674) - (79,674) Total fund balances 57,878,345 7,714,772 65,593,117 Total liabilities, deferred inflows of resources
and fund balances 60,144,382$ 8,983,975$ 69,128,357$ City of Culver City
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
June 30, 2023
137
Special Capital
Revenue Projects
Funds Funds Total
REVENUES :
Licenses and permits 905,823$ -$ 905,823 Intergovernmental 15,761,053 353,560 16,114,613 Charges for services 6,412,882 - 6,412,882 Investment earnings 471,975 142,717 614,692 M iscellaneous 788,841 - 788,841 Total revenues 24,340,575 496,277 24,836,852 EXPENDITURES :
Current:
General government 533,274 - 533,274 Parks, recreation and community services 126,221 - 126,221 Police 471,902 - 471,902 Fire 845,972 - 845,972 Community development 5,157,457 - 5,157,457 Public works 212,468 - 212,468 Transportation 418,568 - 418,568 Capital outlay 1,518,330 628,076 2,146,406 Total expenditures 9,284,192 628,076 9,912,268
REVENUES OVER
EXPENDITURES 15,056,383 (131,799) 14,924,584 OTHER FINANCING S OURCES (US ES ):
Transfers in 340,616 - 340,616 Transfers out (3,957,824) - (3,957,824) Proceeds from SBITA Financing 829,825 - 829,825 Proceeds from sale of property 4,020 - 4,020 Total other financing sources (uses) (2,783,363) - (2,783,363) CHANGES IN FUND BALANCES 12,273,020 (131,799) 12,141,221 FUND BALANCES:
Beginning of year, as previously reported 45,478,375 7,846,571 53,324,946 Prior period adjustment 126,950 - 126,950 Beginning of year, as adjusted 45,605,325 7,846,571 53,451,896 End of year 57,878,345$ 7,714,772$ 65,593,117$
138
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 es for transportation-related activities . Proposition A, approved by voters in 1980, is a one half of one percent (0.5%) tax on retail sales in Los Angeles County. The collection of this tax is administered by the County, which returns twenty five percent (25%) of the collections to cities within the County. The balance 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 it centers, park and ride lots and freeway bus stops; and (25%)for transit-related im provem ents to freeways and state highways.
Gas Tax Fund - To account for state gasoline tax esreceived 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 ulting from 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 efamilies and individuals. The Housing Divis ionin the Com m unityDevelopm ent Department is responsible for m anaging and adminis tering Culver City's Section 8 Housing Choice V oucherProgram (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 unityDevelopm ent Block 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 ber 2008 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.
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.
139
Mobility Improvement Fund - To account for m oniesfrom new developm ent impact fees related to increased vehicle miles traveled and transportation impacts. On June 28, 2021,City Council adopted an ordinance adding a Mobility Im provem entFees subchapter to the Culver City Municipal Code as part of the City's Travel Demand Forecast Model project. The funds will be used for citywide m obility projects to am eliorate the traffic im pacts from new developm ent.
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.
Measure W Fund - To account for m oniesfrom the special parcel tax of 2.5 cents per square foot of impermeable surface area on private property in the LA County Flood Control Dis trict approved by voters in the LA County Flood Dis trictto fund projects, program s and studies related to protecting and im proving water quality.
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 entsand maintenance to enhance customer service.
City of Culver City
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
140
Proposition Proposition
A Local C Local Operating
Gas Tax Return Return M easure R Grants
A SSE TS
Cash and investments 5,385,337$ 1,342,692$ 1,544,857$ 1,014,217$ 2,298,055$ Accounts receivables, net - - - - - Interest receivables 26,178 7,903 8,425 4,861 12,242 Notes receivables, net - - - - - Due from other funds - - - - - Due from other governments 247,076 - - - 289,980 Due from Westside COG - - - - 82,828 Total assets 5,658,591$ 1,350,594$ 1,553,281$ 1,019,078$ 2,683,105$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 43,292 - 150,000 283,821 39,986 Salaries and benefits payable - - - - 6,234 Due to other funds - - - - 86,607 Deposits payable - - - - - Retention payable - - - 8,368 - Due to other governments - - - - - Total liabilities 43,292 - 150,000 292,190 132,828 Deferred inflows of resources:
Unavailable revenues - - - - 355,417 Total deferred inflows of resources - - - - 355,417 Fund Balances:
Restricted 5,615,299 1,350,594 1,403,281 726,888 2,194,861 Committed - - - - - Unassigned (deficit) - - - - 0 Total fund balances 5,615,299 1,350,594 1,403,281 726,888 2,194,861 Total liabilities, deferred inflows
of resources and fund balances 5,658,591$ 1,350,594$ 1,553,281$ 1,019,078$ 2,683,105$ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
141
Section 8 Art in Community Special
Housing Public Places Development CDBG Assessment
A SSE TS
Cash and investments 1,233,232$ 4,020,547$ 957,273$ 15,001$ 1,059,353$ Accounts receivables, net - 13,850 - - - Interest receivables - 20,324 4,813 - 5,320 Notes receivables, net - - - 23,819 - Due from other funds 2,503 - - - - Due from other governments - - - - 4,202 Due from Westside COG - - - - - Total assets 1,235,735$ 4,054,721$ 962,087$ 38,820$ 1,068,875$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 9,485 2,805 - - 5,566 Salaries and benefits payable 7,549 - - - - Due to other funds 84 - - - - Deposits payable 8,321 - - - 369,954 Retention payable - - - - - Due to other governments - - - 38,820 - Total liabilities 25,439 2,805 - 38,820 375,520 Deferred inflows of resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund Balances:
Restricted 1,210,296 4,051,916 962,086 - 693,355 Committed - - - - - Unassigned (deficit) - - - - - Total fund balances 1,210,296 4,051,916 962,086 - 693,355 Total liabilities, deferred inflows
of resources and fund balances 1,235,735$ 4,054,721$ 962,086$ 38,820$ 1,068,875$ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
142
Park Asset Parking Safe/Clean Building
Facilities Seizure Authority Water Protection M easure W Surcharge
A SSE TS
Cash and investments 1,225,065$ 819,059$ 15,924,134$ 13,103,897$ 5,599,289$ 296,811$ Accounts receivables, net 8,947 - 57,831 - - 7,859 Interest receivables 6,090 4,137 80,713 47,808 44,216 1,650 Notes receivables, net - - - - - - Due from other funds - - - - - - Due from other governments - - - 40,085 - - Due from Westside COG - - - - - - Total assets 1,240,103$ 823,195$ 16,062,678$ 13,191,790$ 5,643,505$ 306,320$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 25,778 446 149,549 301,304 1,097 506 Salaries and benefits payable - - - - - 7,365 Due to other funds - - - - - - Deposits payable - - 73,868 - - - Retention payable - - - - - - Due to other governments - - - - - - Total liabilities 25,778 446 223,417 301,304 1,097 7,871 Deferred inflows of resources:
Unavailable revenues - - - - - - Total deferred inflows of resources - - - - - - Fund Balances:
Restricted 1,214,325 822,749 15,839,261 12,890,487 5,642,407 298,448 Committed - - - - - - Unassigned (deficit) - - - - - - Total fund balances 1,214,325 822,749 15,839,261 12,890,487 5,642,407 298,448 Total liabilities, deferred inflows
of resources and fund balances 1,240,103$ 823,196$ 16,062,678$ 13,191,790$ 5,643,505$ 306,320$ (Continued)
City of Culver City
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2023
143
Board of State
Community M obility
Paratransit M easure M AQMD Corrections Improvement Total
A SSE TS
Cash and investments -$ 2,305,124$ 342,166$ 104,759$ 219,645$ 58,810,512$ Accounts receivables, net 893 - 13,386 - 178,394 281,160 Interest receivables - 11,085 1,680 525 1,013 288,984 Notes receivables, net - - - - - 23,819 Due from other funds - - - - - 2,503 Due from other governments 73,233 - - - - 654,576 Due from Westside COG - - - - - 82,828 Total assets 74,126$ 2,316,209$ 357,232$ 105,284$ 399,052$ 60,144,382$
LIABILITIES , DEFERRED INFLO WS O F
RES OURCES AND FUND BALANCES
L iabilities:
Accounts payable 604 7,875 4,071 17,890 - 1,044,077$ Salaries and benefits payable 9,784 - - - - 30,932 Due to other funds 69,920 - - - - 156,611 Deposits payable - - - - - 452,144 Retention payable - 18,783 - - - 27,151 Due to other governments - - - 87,393 - 126,213 Total liabilities 80,308 26,658 4,071 105,284 - 1,837,128 Deferred inflows of resources:
Unavailable revenues 73,493 - - - - 428,909 Total deferred inflows of resources 73,493 - - - - 428,909 Fund Balances:
Restricted - 2,289,552 353,161 - 399,052 57,958,019 Committed - - - - - - Unassigned (deficit) (79,674) - - - - (79,674) Total fund balances (79,674) 2,289,552 353,161 - 399,052 57,878,345 Total liabilities, deferred inflows
of resources and fund balances 74,126$ 2,316,210$ 357,232$ 105,284$ 399,052$ 60,144,382$ (Concluded)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds
Year Ended June 30, 2023
144
Proposition Proposition
A Local C Local Operating
Gas Tax Return Return M easure R Grants
REVENUES :
Licenses and permits -$ -$ -$ -$ -$ Intergovernmental 1,987,124 1,046,262 867,845 650,696 5,540,370 Charges for services - - - - - Investment earnings (losses) 36,850 13,972 17,778 5,852 2,466 M iscellaneous - - - - - Total revenues 2,023,974 1,060,234 885,622 656,548 5,542,836 EXPENDITURES :
Current:
General government - - - - - Parks, recreation, and community services - - - - 82,828 Police - - - - 248,423 Fire - - - - 845,972 Community development - - - - 358,886 Public works - - - - 191,115 Transportation - - - - 13,528 Capital outlay 224,170 - 150,000 284,404 - Total expenditures 224,170 - 150,000 284,404 1,740,752
REVENUES OVER (UNDER)
EXPENDITURES 1,799,804 1,060,234 735,622 372,144 3,802,084 OTHER FINANCING S OURCES (US ES ):
Transfers in - - - - 13,528 Transfers out (400,000) (971,114) (684,643) (302,067) (400,000) Proceeds from SBITA financing - - - - - Proceeds from sale of property - - - - - Total other financing sources (uses) (400,000) (971,114) (684,643) (302,067) (386,472) CHANGES IN FUND BALANCES 1,399,804 89,120 50,979 70,077 3,415,612 FUND BALANCES (DEFICIT):
Beginning of year 4,215,495 1,261,474 1,352,302 656,811 (1,220,751) Prior period adjustment - - - - - Beginning of year, as restated 4,215,495 1,261,474 1,352,302 656,811 (1,220,751) End of year 5,615,299$ 1,350,594$ 1,403,281$ 726,888$ 2,194,861$ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2023
145
Section 8 Art in Community Special
Housing Public Places Development CDBG Assessment
REVENUES :
Licenses and permits -$ 529,314$ 1,690$ -$ -$ Intergovernmental 1,640,002 - - 43,393 - Charges for services - - - - 110,704 Investment earnings (losses) 17,030 40,555 11,684 - 3,788 M iscellaneous - - - - - Total revenues 1,657,032 569,869 13,374 43,393 114,492 EXPENDITURES :
Current:
General government - 437,782 - - - Parks, recreation, and community services - - - 43,393 - Police - - - - - Fire - - - - - Community development 1,593,681 - - - 27,473 Public works - - - - - Transportation - - - - - Capital outlay - - 33,689 - - Total expenditures 1,593,681 437,782 33,689 43,393 27,473
REVENUES OVER (UNDER)
EXPENDITURES 63,351 132,087 (20,315) (0) 87,019 OTHER FINANCING S OURCES (US ES ):
Transfers in - - - - - Transfers out - - - - - Proceeds from SBITA financing - - - - - Proceeds from sale of property - - - - - Total other financing sources (uses) - - - - - CHANGES IN FUND BALANCES 63,351 132,087 (20,315) (0) 87,019 FUND BALANCES (DEFICIT):
Beginning of year 1,019,996 3,919,829 982,401 - 606,336 Prior period adjustment 126,949 - - - - Beginning of year, as restated
1,146,945 3,919,829 982,401 - 606,336
End of year 1,210,296$ 4,051,916$ 962,086$ (0)$ 693,355$ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2023
146
Park Asset Parking Safe/Clean Building
Facilities Seizure Authority Water Protection M easure W Surcharge REVENUES :
Licenses and permits -$ -$ 166,806$ -$ -$ 208,013$ Intergovernmental - 52,518 - (521,098) 3,429,566 - Charges for services 167,242 - 4,211,075 1,284,667 237,500 - Investment earnings (losses) 13,297 9,673 185,144 142,872 (50,650) 10,076 M iscellaneous - - 38,272 749,643 - - Total revenues 180,539 62,192 4,601,297 1,656,083 3,616,415 218,089 EXPENDITURES :
Current:
General government - - 95,492 - - - Parks, recreation, and community services - - - - - - Police - 64,561 - - - - Fire - - - - - - Community development - - 1,775,341 - - 1,402,076 Public works - - - - - 21,353 Transportation - - - - - - Capital outlay 136,792 - 672,860 (456,131) 321,392 11,335 Total expenditures 136,792 64,561 2,543,693 (456,131) 321,392 1,434,764
REVENUES OVER (UNDER)
EXPENDITURES 43,747 (2,370) 2,057,604 2,112,215 3,295,023 (1,216,675) OTHER FINANCING S OURCES (US ES ):
Transfers in - - - - - - Transfers out - - (1,200,000) - - - Proceeds from SBITA financing - - - - - 829,825 Proceeds from sale of property - 4,020 - - - - Total other financing sources (uses) - 4,020 (1,200,000) - - 829,825
CHANGES IN FUND BALANCES 43,747 1,650 857,604 2,112,215 3,295,023 (386,850) FUND BALANCES (DEFICIT):
Beginning of year 1,170,578 821,099 14,981,657 8,993,268 4,132,387 685,298 Prior period adjustment - - - 1,785,004 (1,785,003) - Beginning of year, as restated 1,170,578 821,099 14,981,657 10,778,272 2,347,384 685,298
year 1,214,325$ 822,749$ 15,839,261$ 12,890,487$ 5,642,407$ 298,448$ (Continued)
City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Special Revenue Funds
Year Ended June 30, 2023
147
Board of State
Community M obility
Paratransit M easure M AQMD Corrections Improvement Total REVENUES :
Licenses and permits -$ -$ -$ -$ -$ 905,823$ Intergovernmental 53,408 736,076 66,072 168,818 - 15,761,053 Charges for services 152 - - - 401,543 6,412,882 Investment earnings (losses) - 13,966 2,792 (2,678) (2,491) 471,975 M iscellaneous 926 - - - - 788,841 Total revenues 54,487 750,042 68,864 166,140 399,052 24,340,575 EXPENDITURES :
Current:
General government - - - - - 533,274 Parks, recreation, and community services - - - - - 126,221 Police - - - 158,917 - 471,902 Fire - - - - - 845,972 Community development - - - - - 5,157,457 Public works - - - - - 212,468 Transportation 405,040 - - - - 418,568 Capital outlay - 128,379 11,441 - - 1,518,330 Total expenditures 405,040 128,379 11,441 158,917 - 9,284,192
REVENUES OVER (UNDER)
EXPENDITURES (350,554) 621,663 57,424 7,223 399,052 15,056,383 OTHER FINANCING S OURCES (US ES ):
Transfers in 327,088 - - - - 340,616 Transfers out - - - - - (3,957,824) Proceeds from SBITA financing - - - - - 829,825 Proceeds from sale of property - - - - - 4,020 Total other financing sources (uses) 327,088 -
- - - (2,783,363) CHANGES IN FUND BALANCES (23,466) 621,663 57,424 7,223 399,052 12,273,020 FUND BALANCES (DEFICIT):
Beginning of year (56,208) 1,667,889 295,737 (7,223) - 45,478,375 Prior period adjustment - - - - - 126,950 Beginning of year, as restated (56,208) 1,667,889 295,737 (7,223) - 45,605,325
End of year (79,674)$ 2,289,552$ 353,161$ -$ 399,052$ 57,878,345$ (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, 2023
148
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 374,568$ 2,234,463$ 1,987,124$ (247,338)$ Investment earnings (35,184) (35,184) 36,850 72,034 M iscellaneous - - - - Total revenues 339,384 2,199,279 2,023,974 (175,304) EXPENDITURES :
Capital outlay 4,210,704 4,035,005 224,170 3,810,834 Total expenditures 4,210,704 4,035,005 224,170 3,810,834 REVENUES OVER (UNDER) EXPENDITURES (3,871,321) (1,835,726) 1,799,804 3,635,530 OTHER FINANCING USES:
Transfers out (0) (400,000) (400,000) 0 Total other financing uses (0) (400,000) (400,000) 0 CHANGE IN FUND BALANCE (3,871,321) (2,235,726) 1,399,804 3,635,530 FUND BALANCE:
Beginning of year 4,215,495 4,215,495 4,215,495 - End of year 344,174$ 1,979,769$ 5,615,299$ 3,635,530$ 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, 2023
149
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 971,114$ 971,114$ 1,046,262$ 75,148$ Investment earnings 11,000 11,000 13,972 2,972 Total revenues 982,114 982,114 1,060,234 78,120 OTHER FINANCING USES:
Transfers out - - (971,114) (971,114) Total other financing uses - - (971,114) (971,114) CHANGE IN FUND BALANCE 982,114 982,114 89,120 (892,994) FUND BALANCE:
Beginning of year 1,261,474 1,261,474 1,261,474 - End of year 2,243,588$ 2,243,588$ 1,350,594$ (892,994)$ 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, 2023
150
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 805,514$ 805,514$ 867,845$ 62,331$ Investment earnings 12,000 12,000 17,778 5,778 Total revenues 817,514 817,514 885,622 68,108 EXPENDITURES :
Capital outlay 350,000 350,000 150,000 200,000 Total expenditures 350,000 350,000 150,000 200,000 REVENUES OVER (UNDER) EXPENDITURES 467,514 467,514 735,622 268,108 OTHER FINANCING USES:
Transfers out (214,405) (214,405) (684,643) (470,238) Total other financing uses (214,405) (214,405) (684,643) (470,238) CHANGE IN FUND BALANCE 253,109 253,109 50,979 (202,130) FUND BALANCE:
Beginning of year 1,352,302 1,352,302 1,352,302 - End of year 1,605,411$ 1,605,411$ 1,403,281$ (202,130)$ 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, 2023
151
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 1,815,488$ 1,048,135$ 650,696$ (397,439)$ Investment earnings (4,052) - 5,852 5,852 Total revenues 1,811,436 1,048,135 656,548 (391,587) EXPENDITURES :
Capital outlay 455,678 757,745 284,404 473,342 Total expenditures 455,678 757,745 284,404 473,342 REVENUES OVER (UNDER) EXPENDITURES 1,355,758 290,390 372,144 81,754 OTHER FINANCING USES:
Transfers out 969,979 - (302,067) (302,067) Total other financing uses 969,979 - (302,067) (302,067) CHANGE IN FUND BALANCE 2,325,737 290,390 70,077 (220,313) FUND BALANCE:
Beginning of year 656,811 656,811 656,811 - End of year 2,982,548$ 947,201$ 726,888$ (220,313)$ 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, 2023
152
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 1,305,874$ 2,723,152$ 5,540,370$ 2,817,218$ Investment earnings 3,000 3,000$ 2,466 (534) M iscellaneous - 4,491,814 - (4,491,814) Total revenues 1,308,874 7,217,966 5,542,836 (1,675,130) EXPENDITURES :
Current:
General government - - - - Parks, recreation, and community services - - 82,828 (82,828) Police 113,573 209,478 248,423 (38,946) Fire 691,969 895,480 845,972 49,509 Community development - 5,637,804 358,886 5,278,918 Public works 113,905 235,242 191,115 44,126 Transportation - - 13,528 (13,528) Capital outlay - - - - Total expenditures 919,447 6,978,004 1,740,752 5,237,252 REVENUES (UNDER) EXPENDITURES 389,427 239,962 3,802,084 3,562,122 OTHER FINANCING S OURCES (US ES ):
Transfers in - - 13,528 13,528 Transfers out (400,000) (400,000) (400,000) - Total other financing sources (uses) (400,000) (400,000) (386,472) 13,528 CHANGE IN FUND BALANCE (10,573) (160,038) 3,415,612 3,575,650 FUND BALANCE (DEFICIT):
Beginning of year (1,220,751) (1,220,751) (1,220,751) - End of year (1,231,324)$ (1,380,789)$ 2,194,861$ 3,575,650$ 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, 2023
153
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 1,336,400$ 1,336,400$ 1,640,002$ 303,602$ Investment earnings 7,000 7,000 17,030 10,030 M iscellaneous - - - - Total revenues 1,343,400 1,343,400 1,657,032 313,632 EXPENDITURES :
Current:
Community development 1,880,661 1,882,628 1,593,681 288,946 Total expenditures 1,880,661 1,882,628 1,593,681 288,946 CHANGE IN FUND BALANCE (537,261) (539,228) 63,351 602,578 FUND BALANCE:
Beginning of year, as restated 1,146,945 1,146,945 1,146,945 - End of year 609,684$ 607,717$ 1,210,296$ 602,578$ 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, 2023
154
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental -$ -$ -$ -$ Licenses and permits 550,000 550,000 529,314 (20,686) Investment earnings 29,000 29,000 40,555 11,555 Total revenues 579,000 579,000 569,869 (9,131) EXPENDITURES :
Current:
General government 704,738 2,376,284 437,782 1,938,502 Community development - (2,500) - (2,500) Capital outlay - - - - Total expenditures 704,738 2,373,784 437,782 1,936,002 CHANGE IN FUND BALANCE (125,738) (1,794,784) 132,087 1,926,871 FUND BALANCE:
Beginning of year 3,919,829 3,919,829 3,919,829 - End of year 3,794,091$ 2,125,045$ 4,051,916$ 1,926,871$ 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, 2023
155
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Licenses and permits (53,559)$ 50,000$ 1,690$ (48,310)$ Charges for services - - - - Investment earnings 2,130 2,100 11,684 9,584 Total revenues (51,429) 52,100 13,374 (38,726) EXPENDITURES :
Capital outlay 828,489 994,489 33,689 960,800 Total expenditures 828,489 994,489 33,689 960,800 CHANGE IN FUND BALANCE (879,918) (942,389) (20,315) 922,074 FUND BALANCE:
Beginning of year 982,401 982,401 982,401 - End of year 102,483$ 40,012$ 962,086$ 922,074$ 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, 2023
156
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 40,000$ 40,000$ 43,393$ 3,393$ Total revenues 40,000 40,000 43,393 3,393 EXPENDITURES :
Current:
Parks, recreation, and community services 40,000 40,000 43,393 (3,393) Total expenditures 40,000 40,000 43,393 (3,393)
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, 2023
157
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Charges for services 88,570$ 88,570$ 110,704$ 22,134$ Investment earnings 4,000 4,000 3,788 (212) Total revenues 92,570 92,570 114,492 21,922 EXPENDITURES :
Current:
Community development 103,415 109,157 27,473 81,684 Total expenditures 103,415 109,157 27,473 81,684 CHANGE IN FUND BALANCE (10,845) (16,587) 87,019 103,606 FUND BALANCE:
Beginning of year 606,336 606,336 606,336 - End of year 595,491$ 589,749$ 693,355$ 103,606$ 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, 2023
158
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Charges for services 111,082$ 56,082$ 167,242$ 111,160$ Investment earnings 5,275 3,275 13,297 10,022 Total revenues 116,357 59,357 180,539 121,181 EXPENDITURES :
Current:
Parks, recreation, and community services - - - - Capital outlay 1,117,506 1,337,050 136,792 1,200,258 Total expenditures 1,117,506 1,337,050 136,792 1,200,258 CHANGE IN FUND BALANCE (1,001,149) (1,277,693) 43,747 1,321,440 FUND BALANCE:
Beginning of year 1,170,578 1,170,578 1,170,578 - End of year 169,429$ (107,115)$ 1,214,325$ 1,321,440$ 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, 2023
159
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental -$ 13,950$ 52,518$ 38,568$ Investment earnings 10,000 10,000 9,673 (327) M iscellaneous - - - - Total revenues 10,000 23,950 62,192 38,242 EXPENDITURES :
Current:
Police - 179,717 64,561 115,155 Capital outlay 427,000 427,000 - 427,000 Total expenditures 427,000 606,717 64,561 542,155 REVENUES (UNDER) EXPENDITURES (417,000) (582,767) (2,370) 580,397 OTHER FINANCING SOURCES:
Proceeds from sale of property - - 4,020 4,020 Total other financing sources - - 4,020 4,020 CHANGE IN FUND BALANCE (417,000) (582,767) 1,650 584,417 FUND BALANCE:
Beginning of year 821,099 821,099 821,099 - End of year 404,099$ 238,332$ 822,749$ 584,417$ 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, 2023
160
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Licenses and permits 190,000$ 190,000$ 166,806$ (23,194)$ Charges for services 3,832,679 3,832,679 4,211,075 378,396 Investment earnings 208,000 208,000 185,144 (22,856) M iscellaneous 75,470 75,470 38,272 (37,198) Total revenues 4,306,149 4,306,149 4,601,297 295,148 EXPENDITURES :
Current:
General government 150,000 150,000 95,492 54,508 Community development 1,944,845 2,142,019 1,775,341 366,678 Capital outlay 550,000 6,073,816 672,860 5,400,957 Total expenditures 2,644,845 8,365,835 2,543,693 5,822,142 REVENUES OVER (UNDER) EXPENDITURES 1,661,304 (4,059,686) 2,057,604 6,117,290 OTHER FINANCING USES:
Transfers out (1,200,000) (1,423,819) (1,200,000) 223,819 Total other financing uses (1,200,000) (1,423,819) (1,200,000) 223,819 CHANGE IN FUND BALANCE 461,304 (5,483,505) 857,604 6,341,109 FUND BALANCE:
Beginning of year 14,981,657 14,981,657 14,981,657 - End of year 15,442,961$ 9,498,152$ 15,839,261$ 6,341,109$ 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, 2023
161
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental -$ -$ (521,098)$ (521,098)$ Charges for services 2,050,000 2,050,000 1,284,667 (765,333) Investment earnings 83,000 83,000 142,872 59,872 M iscellaneous - - 749,643 749,643 Total revenues 2,133,000 2,133,000 1,656,083 (476,917) EXPENDITURES :
Current:
Community development - 162,965 - 162,965 Capital outlay 4,534,022 10,791,854 (456,131) 11,247,985 Total expenditures 4,534,022 10,954,819 (456,131) 11,410,950 CHANGE IN FUND BALANCE (2,401,022) (8,821,819) 2,112,215 10,934,034 FUND BALANCE:
Beginning of year, as restated 10,778,272 10,778,272 10,778,272 - End of year 8,377,250$ 1,956,453$ 12,890,487$ 10,934,034$ 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, 2023
162
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental -$ -$ 3,429,566$ 3,429,566$ Charges for services - - 237,500 237,500 Investment earnings (losses) - - (50,650) (50,650) Total revenues - - 3,616,415 3,616,415 EXPENDITURES :
Current:
Community development - - - - Capital outlay - 5,893,104 321,392 5,571,712 Total expenditures - 5,893,104 321,392 5,571,712 CHANGE IN FUND BALANCE - (5,893,104) 3,295,023 9,188,127 FUND BALANCE:
Beginning of year, as restated - - 2,347,384 2,347,384 End of year -$ (5,893,104)$ 5,642,407$ 11,535,511$ 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, 2023
163
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Licenses and permits 300,000$ 300,000$ 208,013$ (91,987)$ Investment earnings 11,000 11,000 10,076 (924) Total revenues 311,000 311,000 218,089 (92,911) EXPENDITURES :
Current:
Community development 369,727 887,375 1,402,076 (514,701) Public works 34,832 34,832 21,353 13,479 Capital outlay - 59,569 11,335 48,234 Total expenditures 404,559 981,776 1,434,764 (452,988) REVENUES OVER (UNDER) EXPENDITURES (93,559) (670,776) (1,216,675) (545,899) OTHER FINANCING SOURCES:
Proceeds from SBITA financing - - 829,825 829,825 CHANGE IN FUND BALANCE (93,559) (670,776) (386,850) 283,927 FUND BALANCE:
Beginning of year 685,298 685,298 685,298 - End of year 591,739$ 14,522$ 298,448$ 283,927$ 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, 2023
164
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 123,612$ 123,612$ 53,408$ (70,204)$ Charges for services 3,000 3,000 152 (2,848) M iscellaneous 1,791 1,791 926 (865) Total revenues 128,403 128,403 54,487 (73,916) EXPENDITURES :
Current:
Transportation 342,808 354,507 405,040 (50,533) Total expenditures 342,808 354,507 405,040 (50,533) REVENUES OVER (UNDER) EXPENDITURES (214,405) (226,104) (350,554) (124,450) OTHER FINANCING SOURCES:
Transfers in 214,405 214,405 327,088 112,683 Total other financing sources 214,405 214,405 327,088 112,683 CHANGE IN FUND BALANCE - (11,699) (23,466) (11,767) FUND BALANCE (DEFICIT):
Beginning of year (56,208) (56,208) (56,208) - End of year (56,208)$ (67,907)$ (79,674)$ (11,767)$ 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, 2023
165
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 684,687$ 684,687$ 736,076$ 51,389$ Investment earnings 8,000 8,000 13,966 5,966 Total revenues 692,687 692,687 750,042 57,355 EXPENDITURES :
Capital outlay 1,419,780 2,523,119 128,379 2,394,740 Total expenditures 1,419,780 2,523,119 128,379 2,394,740 CHANGE IN FUND BALANCE (727,093) (1,830,432) 621,663 2,452,095 FUND BALANCE:
Beginning of year 1,667,889 1,667,889 1,667,889 - End of year 940,796$ (162,543)$ 2,289,552$ 2,452,095$ 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, 2023
166
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 10,000$ 10,000$ 66,072$ 56,072$ Investment earnings - - 2,792 2,792 Total revenues 10,000 10,000 68,864 58,864 EXPENDITURES :
Current:
Transportation 75,000 75,000 - 75,000 Capital outlay 50,000 62,000 11,441 50,559 Total expenditures 125,000 137,000 11,441 125,559 REVENUES OVER (UNDER) EXPENDITURES (115,000) (127,000) 57,424 184,424 OTHER FINANCING USES:
Proceeds from sale of property - - - - Transfers in - - - - Total other financing uses - - - - CHANGE IN FUND BALANCE (115,000) (127,000) 57,424 184,424 FUND BALANCE:
Beginning of year 295,737 295,737 295,737 - End of year 180,737$ 168,737$ 353,161$ 184,424$ 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, 2023
167
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental -$ -$ 168,818 168,818$ Investment earnings (losses) - - (2,678) (2,678) Total revenues - - 166,140 166,140 EXPENDITURES :
Current:
Police 147,756 147,756 158,917 (11,161) Total expenditures 147,756 147,756 158,917 (11,161) CHANGE IN FUND BALANCE (147,756) (147,756) 7,223 154,979 FUND BALANCE:
Beginning of year (7,223) (7,223) (7,223) - End of year (154,979)$ (154,979)$ -$ 154,979$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Special Revenue Fund – Mobility Improvement Special Revenue Fund Year Ended June 30, 2023
168
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Charges for services 4,738,000$ 4,738,000$ 401,543$ (4,336,457)$ Investment earnings (losses) - - (2,491) (2,491) Total revenues 4,738,000 4,738,000 399,052 (4,338,948) EXPENDITURES :
Current:
General government - - - - Total expenditures - - - - CHANGE IN FUND BALANCE 4,738,000 4,738,000 399,052 (4,338,948) FUND BALANCE:
Beginning of year - - - - End of year 4,738,000$ 4,738,000$ 399,052$ (4,338,948)$ Budgeted Amounts
169
Major Capital Project Fund Includes:
Nonmajor Capital Project Fund Includes:
CDBG Capital Projects Fund - To account for Com m unityDevelopm ent Block 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 pecificallyidentified by 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, 2023
170
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 5,136,463$ 5,913,133$ 1,193,376$ (4,719,757)$ Investment earnings 397,876 397,876 445,624 47,748 M iscellaneous - - - - Total revenues 5,534,339 6,311,009 1,639,000 (4,672,009) EXPENDITURES :
Current:
Public works 655,789 1,634,085 253,723 1,380,363 Capital outlay 6,746,438 18,139,438 4,370,607 13,768,831 Total expenditures 7,402,227 19,773,524 4,624,330 15,149,194 REVENUES OVER (UNDER) EXPENDITURES (1,867,888) (13,462,514) (2,985,330) 10,477,185 OTHER FINANCING S OURCES (US ES ):
Transfers in 7,122,389 12,459,902 6,922,389 (5,537,513) Transfers out 2,918,284 2,918,284 - 2,918,284 Total other financing sources (uses) 10,040,673 15,378,186 6,922,389 (2,619,229) CHANGE IN FUND BALANCE 8,172,785 1,915,671 3,937,059 7,857,955 FUND BALANCE:
Beginning of year 4,303,809 4,303,809 4,303,809 - End of year 12,476,594$ 6,219,480$ 8,240,868$ 7,857,955$ 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, 2023
171
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 37,931,931$ 21,920,576$ 5,806,463$ (16,114,113)$ Investment earnings - - 163,306 163,306 Total revenues 37,931,931 21,920,576 5,969,769 (15,950,807) EXPENDITURES :
Capital outlay (13,349,473) 40,836,263 30,533,824 10,302,439 Total expenditures (13,349,473) 40,836,263 30,533,824 10,302,439 CHANGE IN FUND BALANCE 51,281,404 (18,915,687) (24,564,055) (5,648,368) FUND BALANCE (DEFICIT):
Beginning of year 21,295,343 21,295,343 21,295,343 - End of year 72,576,747$ 2,379,656$ (3,268,712)$ (5,648,368)$ Budgeted Amounts
City of Culver City
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2023
172
CDBG
Cooperative Capital
Projects Projects Total
A SSE TS
Cash and investments 4,352,648$ -$ 4,352,648$ Accounts receivables, net 2 - 2 Interest receivables 1,186,150 - 1,186,150 Note receivables, net 3,395,000 - 3,395,000 Due from other governments - 50,175 50,175 Total assets 8,933,800$ 50,175$ 8,983,975$
LIABILITIES AND FUND BALANCES
L iabilities:
Accounts payable (264)$ -$ (264)$ Deposits payable 113,245 - 113,245 Retention payable - - - Due to other funds - 50,175 50,175 Due to Successor Agency 1,106,047 - 1,106,047 Total liabilities 1,219,028 50,175 1,269,203 Deferred inflows of resources:
Unavailable grant revenues - - - Total deferred inflows of resources - - - Fund Balances:
Restricted 7,714,772 - 7,714,772 Unassigned (deficit) - - - Total fund balances 7,714,772 - 7,714,772 Total liabilities, deferred inflows of resources
and fund balances 8,933,800$ 50,175$ 8,983,975$ City of Culver City
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds
Year Ended June 30, 2023
173
CDBG
Cooperative Capital
Projects Projects Total
REVENUES :
Intergovernmental -$ 353,560$ 353,560$ Investment earnings 142,717 - 142,717 Total revenues 142,717 353,560 496,277 EXPENDITURES :
Current:
Capital outlay 290,205 337,871 628,076 Total expenditures 290,205 337,871 628,076 CHANGES IN FUND BALANCES (147,488) 15,689 (131,799) FUND BALANCES:
Beginning of year 7,862,260 (15,689) 7,846,571 End of year 7,714,772$ -$ 7,714,772$ City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Capital Projects Funds – Cooperative Projects
Year Ended June 30, 2023
174
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Investment earnings 135,763$ 135,763$ 142,717$ 6,954$ Total revenues 135,763 135,763 142,717 6,954 EXPENDITURES :
Current:
General government 998,986 998,986 - 998,986 Community service 32,354 32,354 - 32,354 Capital outlay 3,037,991 3,787,991 290,205 3,497,786 Total expenditures 4,069,331 4,819,331 290,205 4,529,126 REVENUES OVER (UNDER) EXPENDITURES (3,933,568) (4,683,568) (147,488) 4,536,080 OTHER FINANCING S OURCES (US ES ):
Transfers in (1,106,047) 1,106,047 - (1,106,047) Transfers out - - - - Total other financing sources (uses) (1,106,047) 1,106,047 - (1,106,047) CHANGE IN FUND BALANCE (5,039,615) (3,577,521) (147,488) 3,430,033 FUND BALANCE:
Beginning of year 7,862,260 7,862,260 7,862,260 - End of year 2,822,645$ 4,284,739$ 7,714,772$ 3,430,033$ Budgeted Amounts
City of Culver City
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Balance and Actual Capital Projects Funds - CDBG
June 30, 2023
175
Actual Variance with
Original Final Amounts Final Budget
REVENUES :
Intergovernmental 506,313$ 1,664,335$ 353,560$ (1,310,775)$ Total revenues 506,313 1,664,335 353,560 (1,310,775) EXPENDITURES :
Capital outlay 480,896 640,896 337,871 303,025 Debt service: Principal payments - - - - Debt service: Interest and fiscal charges - - - - Total expenditures 480,896 640,896 337,871 303,025 CHANGE IN FUND BALANCE 25,417 1,023,439 15,689 (1,007,750) FUND BALANCE (DEFICIT):
Beginning of year (15,689) (15,689) (15,689) - End of year 9,728$ 1,007,750$ -$ (1,007,750)$ Budgeted Amounts
176
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
June 30, 2023
177
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
A SSE TS
Current assets:
Cash and investments 10,607,156$ -$ 8,706,713$ -$ 19,313,869$ Accounts receivables, net 16,368 20,855 40 425 37,689 Interest receivables 53,546 - 31,854 - 85,400 Due from other funds - - - 84 84 Due from other governments - 37 - - 37 Inventories - 180,711 - 593,150 773,861 Total current assets 10,677,070 201,603 8,738,607 593,659 20,210,939 Noncurrent assets:
Capital assets:
Construction in progress 77,551 - - - 77,551 Machinery and equipment 27,691,240 392,235 42,219 - 28,125,694 Less accumulated depreciation (22,200,362) (344,855) (42,219) - (22,587,435) Capital assets, net 5,568,429 47,380 - - 5,615,809 Total noncurrent assets 5,568,429 47,380 - - 5,615,809 Total assets 16,245,500 248,983 8,738,607 593,659 25,826,749
DEFERRED O UTFLO WS O F RES O URCES
Pension related amounts - 2,329,200 597,303 - 2,926,503 Other postemployment benefits related amounts - 298,278 59,065 - 357,343
Total deferred outflows of resources - 2,627,478 656,368 - 3,283,846 (Continued)
City of Culver City
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2023
178
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
LIABILITIES
Current liabilities:
Accounts payable 104,389 564,033 43,049 146,450 857,921$ Salaries and benefits payable - 169,767 69,423 - 239,190 Due to other funds - 3,517,327 - 440,434 3,957,761 Compensated absences - due within one year - 175,008 - - 175,008 Claims payable - due within one year - - 4,848,404 - 4,848,404 Total current liabilities 104,389 4,426,135 4,960,876 586,884 10,078,284 Noncurrent liabilities:
Compensated absences - due in more than one year - 299,093 5,611 - 304,704 Claims payable - due in more than one year - - 15,128,922 - 15,128,922 Net pension liabilities - 8,976,805 2,302,027 - 11,278,832 Net other postemployment benefits liabilities - 1,823,192 361,028 - 2,184,220 Total noncurrent liabilities - 11,099,090 17,797,589 - 28,896,678 Total liabilities 104,389 15,525,224 22,758,465 586,884 38,974,962
DEFERRED INFLO WS O F RES O URCES
Pension related amounts - 212,512 54,497 - 267,009 Other postemployment benefits related amounts - 534,180 105,778 - 639,958 Total deferred inflows of resources - 746,692 160,275 - 906,967
NET POS ITION
Investment in capital assets 5,568,429 47,380 - - 5,615,809 Unrestricted (deficit) 10,572,682 (13,442,835) (13,523,765) 6,775 (16,387,144) Total net position 16,141,111$ (13,395,455)$ (13,523,765)$ 6,775$ (10,771,334)$ (Concluded)
City of Culver City
Combining Statement of Revenues, Expenses and Changes in Net Position All Internal Service Funds
Year Ended June 30, 2023
179
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
OPERATING REVENUES :
Sales and service charges 2,488,834 8,315,119 11,769,247 2,296,989 24,870,189$ M iscellaneous - - 92,500 8,189 100,689 Total operating revenues 2,488,834 8,315,119 11,861,747 2,305,178 24,970,878 O PERATING EXPENS ES :
Salaries and benefits - 4,443,600 2,356,469 - 6,800,069 Supplies - 2,547,790 99,632 334,048 2,981,470 Repairs and maintenance 89,645 2,332,167 9,356 1,964,361 4,395,529 Insurance - 144,952 3,630,075 - 3,775,027 Claims and settlements - - 8,035,132 - 8,035,132 Consulting and contractual services - 114,811 880,194 - 995,005 Depreciation 2,133,991 13,605 - - 2,147,597 Total operating expenses 2,223,636 9,596,926 15,010,858 2,298,409 29,129,829 O PERATING INCO ME (LO S S ) 265,198 (1,281,807) (3,149,111) 6,768 (4,158,952) NO NO PERATING REVENUES (EXPENS ES ):
Investment earnings (losses) 88,701 - (32,333) 7 56,375 Intergovernmental - 121 - - 121 Gain on sales of property 30,235 - - - 30,235 Total nonoperating revenues (expenses) 118,935 121 (32,333) 7 86,730
INCO ME (LO S S ) BEFO RE
CONTRIBUTIONS AND TRANS FERS 384,133 (1,281,686) (3,181,444) 6,775 (4,072,222) CONTRIBUTIONS AND TRANS FERS :
Transfers in - - 2,000,000 - 2,000,000 Total contributions and transfers - - 2,000,000 - 2,000,000 CHANGES IN NET POSITION 384,133 (1,281,686) (1,181,444) 6,775 (2,072,222) NET POSITION (DEFICIT):
Beginning of year 15,756,978 (12,113,769) (12,342,321) - (8,699,112) End of year 16,141,111$ (13,395,455)$ (13,523,765)$ 6,775$ (10,771,334)$ City of Culver City
Combining Statement of Cash Flows
All Internal Service Funds
Year Ended June 30, 2023
180
Equipment Equipment Risk Central
Replacement M aintenance M anagement Stores Total
CAS H FLOWS FROM OPERATING ACTIVITIES :
Receipts from user departments 2,472,466$ 8,302,624$ 11,771,161$ 2,296,563$ 24,842,814$ Receipts from customers and users - - 92,500 8,193 100,693 Payments to suppliers for goods and services (157,952) (4,883,986) (8,772,169) (2,280,183) (16,094,291) Payments to employees - (4,736,372) (2,398,201) - (7,134,573) Net cash provided by (used in) operating activities 2,314,514 (1,317,734) 693,290 24,573 1,714,643
CAS H FLOWS FROM NONCAPITAL
FINANCING ACTIVITY:
Cash received from (paid to) other funds - 1,349,248 2,016,633 (118,665) 3,247,215 Net cash provided by (used in)
noncapital financing activity - 1,349,248 2,016,633 (118,665) 3,247,215
CAS H FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (862,978) (31,634) - - (894,612) Capital grants - 121 - - 121 Proceeds from sale of capital assets 35,446 - - - 35,446 Net cash used in capital
and related financing activities (827,532) (31,513) - - (859,046) CAS H FLOWS FROM INVES TING ACTIVITY:
Interest received 60,240 - (61,811) 7 (1,565) Net cash used in inv esting activ ity 60,240 - (61,811) 7 (1,565) Net change in cash and cash equivalents 1,547,222 - 2,648,112 (94,086) 4,101,248 CAS H AND CAS H EQUIVALENTS :
Beginning of year 9,059,933 - 6,058,601 94,086 15,212,620 End of year 10,607,156$ -$ 8,706,713$ -$ 19,313,869$ City of Culver City
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
Year Ended June 30, 2023
181
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) 265,198$ (1,281,807)$ (3,149,111)$ 6,768$ (4,158,952)$ Depreciation 2,133,991 13,605 - - 2,147,597 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
(Increase) decrease in accounts receivable (16,368) (12,495) 1,914 (425) (27,375) (Increase) decrease in inventories - (28,709) - 9,762 (18,947) (Increase) decrease in deferred outflows of resources:
Pension related - (1,677,699) (430,232) - (2,107,931) OPEB related - 149,852 29,674 - 179,526 Increase (decrease) in accounts payable (68,307) 284,443 (35,936) 8,468 188,668 Increase (decrease) in salaries and benefits payable - 23,347 (7,912) - 15,435 Increase (decrease) in compensated absences - (121,714) 5,611 - (116,103) Increase (decrease) in net pension liabilities - 3,639,362 933,284 - 4,572,646 Increase (decrease) in net OPEB liabilities - (83,953) (16,624) - (100,577) Increase (decrease) in claims payable - - 3,918,155 - 3,918,155 (Increase) decrease in deferred inflows of resources:
Pension related - (1,977,665) (507,156) - (2,484,821) OPEB related - (244,302) (48,377) - (292,679) Total adjustments (84,675) (49,533) 3,842,401 17,805 3,725,998 Net cash provided by (used in) operating activities 2,314,514$ (1,317,734)$ 693,290$ 24,573$ 1,714,643$
182
CUSTODIAL FUNDS
FINANCIAL STATEMENTS
Treasurer's Trust Agency Fund - to account for refundable deposits entrusted with the City Treasurer/Finance.
Revitalization Corporation Agency Fund - A non-profitcorporationcreated to allow certain fundingto be expended on improvements to out-of-city properties adjacent to or abutting in-city properties in Component Area Number 2 of the Culver City Redevelopment Project Area. The fund is reported as part of the Successor Agency to the Culver City Redevelopment Agency Private Purpose Trust Fund effectively July 1, 2019.
Westside COG - To account for the financialactivitiesof the Westside Cities Council of Governments, a joint-powers authority of which Culver City is a member and serves as treasurer.
City of Culver City
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
183
Treasurer's Revitalization Westside
Trust Corporation COG Total
A SSE TS
Cash and investments 11,623$ 61,357$ 247,116$ 320,096$ Interest receivables - - 1,428 1,428 Due from City of Culver City - - 251,417 251,417 Due from other governments - - 55,797 55,797 Total assets 11,623 61,357 555,759 628,738
LIABILITIES
Accounts payable - - 58,973 58,973 Due to other governments - - 382,790 382,790 Unearned revenue - - 375 375 Deposits - - - - Total liabilities - - 442,138 442,138
NET POS ITION
Held for individuals and other organizations 11,623$ 61,357$ 113,620$ 186,600$ Custodial Funds
City of Culver City
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2023
184
Treasurer's Revitalization Westside
Trust Corporation COG Total
ADDITIONS
Contributions -$ -$ 493,271$ 493,271$ Charges for services - - 138,000 138,000 Investment earnings:
Interest - - 3,002 3,002 Net depreciation in fair value of investments - - (5,587) (5,587) Held for others 20,000 - - 20,000 Total additions 20,000 - 628,686 648,686
DEDUCTIONS
Administrative expenses - 637,057 637,057 Payments to organizations and individuals 20,000 - - 20,000 Total deductions 20,000 - 637,057 657,057 Change in net position - - (8,371) (8,371)
NET POS ITION
Beginning of year 11,623 61,357 121,991 194,971 End of year 11,623$ 61,357$ 113,620$ 186,600$ Custodial Funds
Statistical Section
City of Culver City, California
185
STATISTICAL SECTION
City of Culver City
Description of Statistical Section Contents
June 30, 2023
186
This part of the City of Culver City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.
Contents: Pages
Financial Trends – These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 187 - 198
Revenue Capacity – These schedules contain trend information to help the reader assess the City’s significant local revenue source, the property tax. 199 - 204
Debt Capacity – These schedules present information to help 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. 205 - 209
Demographic and Economic Information – These schedules offer demographics and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 210 - 211
Operating Information – These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and activities it performs. 212 - 215
City of Culver City
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
187
2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets 143,775,699$ 138,194,791$ 136,967,403$ 144,639,910$ 162,634,242$ Restricted 96,157,539 80,777,328 83,083,502 90,048,591 70,969,965 Unrestricted 33,896,113 (171,257,691) (156,905,843) (159,583,947) (162,306,355) Total governmental activities net position 273,829,351$ 47,714,428$ 63,145,062$ 75,104,554$ 71,297,852$ Business-type activities
Net investment in capital assets 55,216,555$ 54,690,405$ 57,051,460$ 72,309,196$ 71,580,562$ Restricted 2,176,609 2,185,415 1,652,641 1,608,838 1,658,185 Unrestricted 31,679,756 (3,173,794) (4,995,724) (13,213,561) (15,089,840) T otal business-type activities net position 89,072,920$ 53,702,026$ 53,708,377$ 60,704,473$ 58,148,907$ Primary government
Net investment in capital assets 198,992,254$ 192,885,196$ 194,018,863$ 216,949,106$ 234,214,804$ Restricted 98,334,148 82,962,743 84,736,143 91,657,429 72,628,150 Unrestricted 65,575,869 (174,431,485) (161,901,567) (172,797,508) (177,396,195) Total primary government net position 362,902,271$ 101,416,454$ 116,853,439$ 135,809,027$ 129,446,759$ 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)
188
2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets 174,897,818$ 174,821,730$ 187,808,665$ 196,552,031$ 230,121,756$ Restricted 65,586,867 79,921,054 104,053,897 123,084,444 134,130,637 Unrestricted (150,684,028) (164,095,166) (188,774,604) (129,855,540) (145,638,894) Total governmental activities net position 89,800,657$ 90,647,618$ 103,087,958$ 189,780,935$ 218,613,499 Business-type activities
Net investment in capital assets 72,974,924$ 74,664,009$ 76,208,363$ 80,731,239$ 77,148,882$ Restricted 1,663,167 13,866 1 4 4 Unrestricted (20,314,978) (23,982,949) (19,958,484) (25,467,597) (18,472,236) Total business-type activities net position 54,323,113$ 50,694,926$ 56,249,880.00$ 55,263,646.00$ 58,676,650$ Primary government
Net investment in capital assets 247,872,742$ 249,485,739$ 264,017,028$ 277,283,270$ 307,270,638$ Restricted 67,250,034 79,934,920 104,053,898 123,084,448 134,130,641 Unrestricted (170,999,006) (188,078,115) (208,733,088) (155,323,137) (164,111,130) Total primary government net position 144,123,770$ 141,342,544$ 159,337,838$ 245,044,581$ 277,290,149$ 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
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
189
2014 2015 2016 2017 2018
E xpenses
Governmental activities:
General government 7,862,533$ 22,383,141$ 13,358,925$ 14,990,643$ 26,854,930$ Parks, recreation and community services 7,780,264 8,325,466 8,775,491 9,022,335 11,501,839 Police 33,869,176 32,806,197 36,045,013 40,121,314 45,463,577 Fire 19,179,679 19,167,988 20,374,502 23,019,797 26,764,984 Community Development 10,013,569 10,460,975 13,645,410 24,698,337 13,250,693 P ublic Works 11,789,014 14,477,308 12,586,907 12,948,758 14,132,972 Transportation 286,165 263,200 364,621 485,925 1,009,270 Capital Outlay - - - - - Interest on long-term debt 47,962 11,520 - - - Total governmental activities expenses 90,828,362 107,895,795 105,150,869 125,287,109 138,978,265 Business-type activities:
Refuse Disposal Fund 11,549,661 11,783,785 11,192,703 12,254,241 14,811,894 Municipal Bus Lines Fund 21,491,866 22,324,977 23,080,082 24,242,317 27,546,738 Sewer Enterprise Fund 9,357,548 9,765,471 9,875,998 9,076,812 8,144,996 Municipal Fiber Network - - 1,963 1,430,316 1,720,771 Internal Service Fund Allocated to
business-type activities - - - - - Total business-type activities expenses 42,399,075 43,874,233 44,150,746 47,003,686 52,224,399 Total primary government expenses 133,227,437 151,770,028 149,301,615 172,290,795 191,202,664 Program Revenues
Governmental activities:
Charges for services:
General government 1,479,181$ 2,238,222$ 3,420,061$ 2,465,017$ 5,100,366$ Parks and recreation 2,660,125 2,926,314 2,981,697 3,099,475 3,510,388 Police 4,547,121 4,455,096 4,661,925 5,640,905 6,380,868 Fire 3,001,288 2,786,350 3,469,803 3,639,515 4,099,395 Community Development 8,633,692 7,478,274 10,055,969 10,372,275 14,267,654 P ublic Works 1,896,937 2,126,165 2,152,282 2,554,688 3,056,562 Transportation 5,009 5,776 4,348 4,426 30,193 Operating Contributions and G rants 6,577,663 6,077,562 6,887,267 5,200,729 5,936,262 Capital G rants and Contributions 2,493,998 2,825,117 1,195,595 6,235,656 4,659,933 Total governmental activities program revenues 31,295,014 30,918,876 34,828,947 39,212,686 47,041,621 Business-type activities:
Charges for services:
Refuse Disposal Fund 11,732,899 11,745,590 12,559,906 13,086,289 14,644,140 Municipal Bus Lines Fund 3,796,169 3,760,517 3,582,271 3,188,558 3,041,100 Sewer Enterprise Fund 8,999,538 9,185,121 9,936,490 9,003,222 9,724,306 Municipal Fiber Network - - - - - Operating grants and contributions 15,781,669 15,906,511 16,165,460 25,844,886 19,329,775 Capital grants and contributions 4,224,835 729,378 1,220,528 1,621,358 1,272,523 Total business-type activities program revenues 44,535,110 41,327,117 43,464,655 52,744,313 48,011,844 Total primary government program revenues 75,830,124$ 72,245,993$ 78,293,602$ 91,956,999$ 95,053,465$ Note: The City of Culver City implemented GASB 34 for the fiscal year ended 2003.
City of Culver City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
190
2019 2020 2021 2022 2023
E xpenses
Governmental activities:
General government 17,862,641$ 18,343,391$ 26,649,962$ 12,168,639$ 23,479,319 Parks, recreation and community services 11,838,330 9,441,755 8,990,167 10,674,233 11,030,251 Police 45,771,756 49,820,605 44,928,502 46,143,913 50,962,731 Fire 27,136,117 27,388,529 26,962,832 28,486,778 32,294,448 Community Development 13,649,676 16,239,189 15,711,383 16,131,833 17,196,977 P ublic Works 15,572,218 16,024,316 15,459,474 16,925,134 20,656,111 Transportation 970,326 226,814 247,806 373,693 418,568 Capital Outlay - - 38,053 - - Interest on long-term debt - - - - - Total governmental activities expenses 132,801,064 137,484,599 138,988,179 130,904,223 156,038,405 Business-type activities:
Refuse Disposal Fund 15,905,856 17,502,230 15,436,971 16,314,382 17,631,800 Municipal Bus Lines Fund 27,317,029 34,013,345 27,441,007 28,601,085 31,534,485 Sewer Enterprise Fund 9,583,110 9,276,555 8,719,314 8,760,599 9,638,323 Municipal Fiber Network 2,713,855 3,226,780 2,102,185 2,025,460 2,318,980 Internal Service Fund Allocated to
business-type activities - - 924,172 (922,333) 642,389 Total business-type activities expenses 55,519,850 64,018,910 54,623,649 54,779,193 61,765,977 Total primary government expenses 188,320,914 201,503,509 193,611,828 185,683,416 217,804,382 Program Revenues
Governmental activities:
Charges for services:
General government 5,590,272$ 4,942,337$ 1,758,493$ 2,420,243$ 1,257,812$ Parks and recreation 3,771,176 2,281,142 1,765,446 3,294,252 3,446,956 Police 5,984,564 4,810,715 3,757,843 3,843,239 5,846,653 Fire 4,464,004 3,682,521 4,107,120 4,348,773 3,551,911 Community Development 12,481,979 13,257,557 6,911,883 11,662,835 9,549,157 P ublic Works 3,207,741 2,554,779 4,962,272 5,578,011 4,515,924 Transportation 67,263 140,424 - - 152 Operating Contributions and G rants 6,660,280 7,630,779 13,829,191 17,917,373 16,733,858 Capital G rants and Contributions 2,668,902 4,065,265 11,631,573 33,717,176 6,524,431 Total governmental activities program revenues 44,896,181 43,365,519 48,723,821 82,781,902 51,426,855 Business-type activities:
Charges for services:
Refuse Disposal Fund 16,011,416 16,573,869 16,027,123 18,485,663 20,213,673 Municipal Bus Lines Fund 2,908,933 2,594,270 1,024,500 1,939,624 2,072,703 Sewer Enterprise Fund 11,020,326 10,903,349 10,111,096 9,162,252 8,956,852 Municipal Fiber Network 35,655 245,650 2,612,865 3,063,682 2,435,207 Operating grants and contributions 20,011,475 22,143,916 27,188,192 17,346,304 28,914,686 Capital grants and contributions 510,463 5,665,166 2,218,360 6,861,090 928,162 Total business-type activities program revenues 50,498,268 58,126,220 59,182,136 56,858,615 63,521,283 Total primary government program revenues 95,394,449$ 101,491,739$ 107,905,957$ 139,640,517$ 114,948,138$ Note: The City of Culver City implemented GASB 34 for the fiscal year ended 2003.
City of Culver City
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
191
2014 2015 2016 2017 2018
Net (E xpense)/Rev enue
Governmental activities (59,533,348)$ (76,976,919)$ (70,321,922)$ (86,074,423)$ (91,936,644)$ Business-type activities 2,136,035 (2,547,116) (686,091) 5,740,627 (4,212,555) Total primary government net expense (57,397,313)$ (79,524,035)$ (71,008,013)$ (80,333,796)$ (96,149,199)$ General Rev enues and Other Changes in Net Position
Governmental activities :
Taxes
Property taxes 7,308,615$ 10,009,164$ 10,627,556$ 11,011,319$ 13,790,871$ Sales taxes 27,692,291 28,284,352 30,172,506 29,997,495 31,162,345 Utility users tax 14,839,873 14,774,331 14,544,069 14,104,504 13,970,775 Franchise taxes 1,449,956 1,516,279 1,408,672 1,408,686 1,439,743 Business license taxes 11,214,234 11,808,710 12,299,395 13,373,055 13,168,013 Transient occupancy taxes 5,608,151 6,699,816 7,572,077 7,566,579 7,903,787 Other taxes 1,313,693 1,374,938 1,228,747 631,600 1,731,434 Motor vehicle in lieu taxes (Intergov't revenue) 3,735,235 3,908,299 4,109,366 4,475,719 4,764,501 Use of money and property (Investment earnings (losses) 2,070,913 1,280,825 849,088 692,450 760,686 Gain (Loss) on sale of capital assets (293,338) 211 - - - Other 342,257 14,781,529 617,494 417,212 588,897 Transfers (760,438) (919,357) 12,786 (1,093,863) (1,151,110) 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 74,521,442$ 80,977,245$ 85,752,556$ 94,183,874$ 88,129,942$ Business-type activities:
Sales Taxes- Measure R -$ -$ -$ -$ -$ Use of money and property (Investment earnings (losses) 277,385 216,904 320,931 80,471 113,536 Other (Miscellaneous) 342,457 300,209 384,297 411,639 392,343 (Loss) on sale of capital assets (330,504) -
Transfers 760,438 919,357 (12,786) 1,093,863 1,151,110 Total business-type activities 1,380,280 1,436,470 692,442 1,255,469 1,656,989 Total primary government 75,901,722$ 82,413,715$ 86,444,998$ 95,439,343$ 89,786,931$ Change in Net Position
Governmental activities 14,988,094$ 4,000,326$ 15,430,634$ 8,109,451$ (3,806,702)$ Business-type activities 3,516,315 (1,110,646) 6,351 6,996,096 (2,555,566) Total primary government 18,504,409$ 2,889,680$ 15,436,985$ 15,105,547$ (6,362,268)$ 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)
192
2019 2020 2021 2022 2023
Net (E xpense)/Rev enue
Governmental activities (87,904,883)$ (94,119,080)$ (90,264,358)$ (48,074,922)$ (104,611,551)$ Business-type activities (5,021,582) (5,892,690) 4,558,447 2,079,422 1,755,306 Total primary government net expense (92,926,465)$ (100,011,770)$ (85,705,911)$ (45,995,500)$ (102,856,245)$ General Rev enues and Other Changes in Net Position
Governmental activities :
Taxes
Property taxes 13,488,817$ 14,318,618$ 20,364,416$ 45,472,192$ 24,379,624$ Sales taxes 32,402,882 33,606,943 37,830,897 43,415,098 42,394,800 Utility users tax 13,173,647 13,329,640 13,184,794 14,858,826 16,524,880 Franchise taxes 1,412,810 1,435,516 2,298,715 1,456,175 1,805,748 Business license taxes 13,991,391 14,599,849 15,895,304 16,186,448 18,736,311 Transient occupancy taxes 8,551,849 6,347,604 3,073,676 8,813,484 11,963,174 Other taxes 2,668,453 2,750,778 391,788 1,969,752 545,566 Motor vehicle in lieu taxes (Intergov't revenue) 5,086,293 5,541,021 6,087,286 6,452,993 7,227,479 Use of money and property (Investment earnings (losses) 3,230,772 3,732,582 3,939,952 (3,305,987) 6,078,891 Gain (Loss) on sale of capital assets - - - - - Other (Miscellaneous) 1,539,459 472,933 629,659 579,324 2,621,709 Transfers (1,472,842) (1,169,443) (991,789) (1,130,406) (1,317,208) Transfers from fiduciary - - - - - Extraordinary gain - transfer of assets and liabilities to RDA Successor t rust funds - - - - - Special Items - - - - - Total governmental activities 94,073,531$ 94,966,041$ 102,704,698$ 134,767,899$ 130,960,975$ Business-type activities:
Sales Taxes- Measure R -$ -$ -$ -$ -$ Use of money and property (Investment earnings (losses) 807,284 975,089 4,718 (621,560) 338,282 Other (Miscellaneous) 2,199,819 119,971 - 14,827 2,208 (Loss) on sale of capital assets - - - - - Transfers 1,472,842 1,169,443 991,789 1,130,406 1,317,208 Total business-type activities 4,479,945 2,264,503 996,507 523,673 1,657,698 Total primary government 98,553,476$ 97,230,544$ 103,701,205$ 135,291,572$ 132,618,673$ Change in Net Position
Governmental activities 6,168,648$ 846,961$ 12,440,340$ 86,692,977$ 26,349,424$ Business-type activities (541,637) (3,628,187) 5,554,954 2,603,095 3,413,004 Total primary government 5,627,011$ (2,781,226)$ 17,995,294$ 89,296,072$ 29,762,428$ Note: The City of Culver City implemented G AS B S tatement 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)
193
2014 2015 2016 2017 2018
Function/Program
Governmental activities:
General government 3,455,983$ 4,195,371$ 4,860,813$ 3,865,385$ 6,609,126$ Parks and recreation 2,870,838 3,247,541 3,272,059 3,381,557 3,792,927 Police 5,337,377 5,254,336 5,258,049 6,127,591 7,218,778 Fire 3,230,169 2,867,360 3,647,791 3,745,887 4,411,810 Community Development 10,580,562 9,174,202 13,009,788 12,256,628 16,714,423 P ublic Works 5,682,998 5,979,216 4,632,178 9,676,224 7,891,194 Transportation 137,087 200,850 148,269 159,414 403,363 Subtotal governmental activities 31,295,014 30,918,876 34,828,947 39,212,686 47,041,621 Business-type activities:
Refuse Disposal Fund 11,772,165 11,796,339 12,604,319 13,086,289 14,760,456 Municipal Bus -T ransit 23,762,329 20,344,349 20,923,156 30,654,802 23,524,754 Sewer Enterprise Fund 9,000,616 9,186,429 9,937,180 9,003,222 9,726,634 Municipal Fiber Network - - - - - Subtotal business-type activities 44,535,110 41,327,117 43,464,655 52,744,313 48,011,844 Total primary government 75,830,124$ 72,245,993$ 78,293,602$ 91,956,999$ 95,053,465$ City of Culver City
Program Revenues By Revenue Function (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
194
2019 2020 2021 2022 2023
Function/Program
Governmental activities:
General government 7,708,839$ 7,549,835$ 6,820,173$ 7,198,631$ 1,623,602$ Parks and recreation 4,037,386 2,590,460 1,798,693 3,656,173 3,843,909 Police 6,712,644 5,557,882 4,307,949 4,227,491 6,406,992 Fire 4,564,864 3,734,458 4,586,726 5,232,755 4,263,088 Community Development 14,686,222 15,364,424 8,711,092 13,664,526 16,068,925 P ublic Works 7,169,941 8,154,846 20,498,301 46,270,325 16,601,976 Transportation 16,285 413,614 2,000,887 2,532,001 2,618,363 Subtotal governmental activities 44,896,181 43,365,519 48,723,821 82,781,902 51,426,855 Business-type activities:
Refuse Disposal Fund 16,039,981 16,763,476 16,147,998 18,529,380 20,245,279 Municipal Bus -T ransit 23,402,059 29,506,830 30,309,978 26,103,144 31,883,864 Sewer Enterprise Fund 11,020,573 10,903,509 10,111,295 9,162,409 8,956,933 Municipal Fiber Network 35,655 952,405 2,612,865 3,063,682 2,435,207 Subtotal business-type activities 50,498,268 58,126,220 59,182,136 56,858,615 63,521,283 Total primary government 95,394,449$ 101,491,739$ 107,905,957$ 139,640,517$ 114,948,138$ City of Culver City
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
195
2014 2015 2016 2017 2018
General Fund
Reserved -$ -$ -$ -$ -$ Unreserved - - - - - Nonspendable 7,545,451 8,797,076 18,651,241 14,390,734 14,262,847 Restricted - - - - - Committed 30,189,148 34,909,456 37,778,333 40,472,141 44,250,119 Assigned 655,548 100,659 225,888 98,046 121,839 Unassigned 18,636,897 36,885,749 25,422,152 22,009,527 22,127,231 Total General Fund 57,027,044$ 80,692,940$ 82,077,614$ 76,970,448$ 80,762,036$ All Other G overnmental 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) 95,919,140 80,663,848 81,872,220 63,126,537 76,659,696 Committed - - 14,114,312 13,543,461 16,488,882 Assigned 4,171,163 5,201,207 - - - Unassigned (1,787,933) (2,639,282) (2,116,848) (4,338,625) (1,500,668) Total all other Governmental Funds 98,302,370$ 83,225,773$ 93,869,684$ 101,839,928$ 91,647,910$ 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)
196
2019 2020 2021 2022 2023
General Fund
Reserved -$ -$ -$ -$ -$ Unreserved - - - - - Nonspendable 15,246,847 15,739,306 14,766,327 14,785,102 15,630,679 Restricted 10,602,535 11,193,366 13,875,468 27,050,540 29,638,414 Committed 48,905,672 51,371,732 53,001,673 69,500,578 76,521,023 Assigned 102,866 5,731,509 5,234,293 6,527,254 6,765,186 Unassigned (deficit) 20,709,758 18,381,515 21,930,270 25,093,180 24,835,315 Total General Fund 95,567,678$ 102,417,428$ 108,808,031$ 142,956,654$ 153,390,617$ All Other G overnmental 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) 70,657,761 68,582,916 66,608,238 89,221,934 104,492,225 Committed 20,467,461 23,190,384 23,570,191 28,107,313 - Assigned - - - - Unassigned (deficit) (2,047,587) (4,011,524) (8,997,368) (1,299,871) (3,348,385) Total all other Governmental Funds 89,077,635$ 87,761,776$ 81,181,061$ 116,029,376$ 101,143,839$ 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)
197
2014 2015 2016 2017 2018
Rev enues
Taxes 68,741,259$ 75,200,587$ 78,337,955$ 78,093,238$ 83,166,967 Licenses and permits 4,664,551 4,301,740 5,088,964 4,910,124 8,174,187 Fines and forfeitures 4,174,721 4,104,462 4,323,432 5,080,610 5,822,781 Investment income 3,451,821 2,958,972 2,315,628 1,827,323 2,198,158 Intergovernmental 10,453,476 11,932,021 11,641,261 13,531,055 16,672,290 Charges for services 11,937,412 12,589,262 15,994,025 16,461,731 21,358,952 Sale of Land for resale - - - - - Other revenues 695,241 15,215,908 1,488,349 652,582 955,418 Total revenues 104,118,481 126,302,952 119,189,614 120,556,663 138,348,753 Expenditures
General government 12,190,249 16,881,178 13,210,888 14,502,021 25,402,021 Parks, recreation and community services 7,178,243 7,736,234 7,761,720 8,273,036 9,153,817 Police 32,912,122 32,784,324 34,305,688 37,924,974 40,012,677 Fire 18,121,240 19,097,947 21,531,923 22,677,676 23,407,204 Community development 9,481,641 9,825,125 13,415,458 24,163,346 12,144,088 Public w orks & Transportation 10,002,080 10,349,275 11,526,943 11,562,147 12,202,528 Capital outlay 5,620,204 6,260,467 7,426,995 12,945,681 21,275,738 Debt service
Debt issuance costs - - - - - Principal payment 296,605 335,510 - - - Interest and fiscal charges 47,962 11,520 - - - S ERAF payments - - - - - Pass-through payments - - - - - Payment of refunding bond escrow - prior issue - - - - - Total expenditures 95,850,346 103,281,580 109,179,615 132,048,881 143,598,073 Excess of revenues over (under) expenditures 8,268,135 23,021,372 10,009,999 (11,492,218) (5,249,320) Other F inancing Sources (Uses)
Capital contributions - - - - - Transfers in 3,474,210 5,322,403 15,769,002 11,434,526 38,487,071 Transfers out (4,399,648) (6,546,760) (16,061,216) (12,528,389) (39,638,181) Proceeds from SBITA financing
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) (925,438) (1,224,357) 2,018,586 (1,093,863) (1,151,110) 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 7,342,697$ 9,255,163$ 12,028,585$ (986,963)$ (6,400,430)$ Debt service as a percentage of noncapital expenditures (a) 0.0% 0.3% 0.0% 0.0% 0.0% Note:
(a) Debt service as a percent of noncapital expenditures is restated as follows: The amount of capital outlay used to calculate the ratio of total debt service expenditures to noncapital expenditures is the same as the reconciling item for capital outlay in the reconciliation between the government- wide statement of activities and the statement of revenues, expenditures, and changes in fund balance. Also only the principal and interest components of debt service expenditures are used in the calculation of the ratio of total debt service expenditures to noncapital expenditures.
City of Culver City
Changes in Fund Balances, Governmental Funds (Continued) Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
198
2019 2020 2021 2022 2023
Rev enues
Taxes 85,689,848$ 86,360,835$ 93,039,590$ 132,171,974$ 116,350,104$ Licenses and permits 8,734,454 7,887,677 3,935,882 7,102,070 4,916,079 Fines and forfeitures 5,468,942 4,478,030 3,562,963 3,580,843 5,290,389 Investment income 5,433,125 6,165,210 3,948,187 (3,175,864) 6,022,516 Intergovernmental 13,898,876 14,315,212 26,484,519 62,884,476 31,169,950 Charges for services 19,366,008 17,315,109 15,764,212 20,464,440 17,362,096 Sale of Land for resale - - - - - Other revenues 1,772,685 772,079 586,275 498,170 2,587,457 Total revenues 140,363,938 137,294,152$ 147,321,628$ 223,526,109$ 183,698,592$ Expenditures
General government 17,005,110 16,910,700 19,137,325 18,221,637 18,373,449 Parks, recreation and community services 9,838,098 9,117,856 8,333,075 9,960,647 10,368,026 Police 42,308,470 44,812,950 44,438,831 45,612,142 50,563,521 Fire 25,121,591 24,250,141 26,555,148 28,044,043 31,805,936 Community development 12,866,296 14,609,370 14,555,076 14,876,112 16,298,635 Public w orks & Transportation 13,544,167 13,629,568 13,600,770 15,011,210 15,880,924 Capital outlay 15,971,997 7,268,707 19,915,983 16,700,846 44,857,191 Debt service
Debt issuance costs - - - - - Principal payment - - - - 267,928 Interest and fiscal charges - - - - 2,258 S ERAF payments - - - - - Pass-through payments - - - - - Payment of refunding bond escrow - prior issue - - - - - Total expenditures 136,655,729 130,599,292 146,536,208 148,426,637 188,417,869 Excess of revenues over (under) expenditures 3,708,209 6,694,860 785,420 75,099,472 (4,719,277) Other F inancing Sources (Uses)
Capital contributions - - 15,000 - - Transfers in 5,832,085 6,118,640 3,529,325 7,587,062 10,686,935 Transfers out (7,304,927) (7,288,083) (4,521,114) (13,717,468) (14,004,143) Proceeds from SBITA financing 1,097,753
Other financing sources - 8,474 1,257 27,872 4,020 Long-t erm debt issued - - - - - Payment to refunded bond escrow - current issue - - - - - Original issue premium (discount) - - - - - Total other financing sources (uses) (1,472,842) (1,160,969) (975,532) (6,102,534) (2,215,435) 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 2,235,367$ 5,533,891$ (190,112)$ 68,996,938$ (6,934,712)$ Debt service as a percentage of noncapital expenditures (a) 0.0% 0.0% 0.0% 0.0% 0.0% Note:
(a) Debt service as a percent of noncapital expenditures is restated as follows: The amount of capital outlay used to calculate the ratio of total debt service expenditures to noncapital expenditures is the same as the reconciling item for capital outlay in the reconciliation between the government- wide statement of activities and the statement of revenues, expenditures, and changes in fund balance. Also only the principal and interest components of debt service expenditures are used in the calculation of the ratio of total debt service expenditures to noncapital expenditures.
City of Culver City
Tax Revenues by Source
Governmental Funds
(Modified Accrual Basis of Accounting)
199
Fines,
Fiscal Utility L icenses, Forfeitures,
Year Property Tax Sales Tax Users Tax Other Tax Permits Penalties 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 2023 24,379,624 42,394,800 16,524,880 33,050,800 4,916,079 5,290,389 City of Culver City
Tax Revenues by Source (Continued)
Governmental Funds
(Modified Accrual Basis of Accounting)
200
Revenue
Fiscal Use of Money, from other Charges for Sale of
Year Property Agencies Serv ices Property Other Total
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 2023 6,022,516 31,169,950 17,362,096 - 2,587,457 183,698,591 City of Culver City
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
201
Net (a) Total
Total Taxable Direct
Fiscal Secured Nonunitary Unsecured Assessed Tax
Year Property Utilities Property Value % Rate (b)
2014 7,606,284,627 384,975 454,513,567 8,061,183,169 0.0946% 2015 8,005,172,894 384,975 456,369,172 8,461,927,041 0.0952% 2016 8,449,411,432 606,355 454,726,389 8,904,744,176 0.0957% 2017 9,156,963,717 606,355 544,833,320 9,702,403,392 0.0962% 2018 9,750,572,579 606,355 578,532,418 10,329,711,352 0.0950% 2019 10,423,299,210 606,355 617,105,418 11,041,010,983 0.0974% 2020 11,280,888,119 606,355 730,011,764 12,011,506,238 0.0979% 2021 12,479,754,473 1,515,888 729,684,416 13,210,954,777 0.0984% 2022 13,268,961,539 1,515,888 703,854,548 13,974,331,975 0.0986% 2023 14,784,687,714 1,515,888 775,785,226 15,561,988,828 0.0996% 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 Californiapassed 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 economicvalue 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)
202
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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) 0.0946 0.0952 0.0957 0.0962 0.0950 0.0974 0.0979 0.0984 0.0986 0.0996 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 0.0314 0.0778 0.0717 0.0663 0.0649 0.0644 0.0495 0.0483 0.0437 0.04184 El Camino community college 0.0175 0.0174 0.0175 0.0229 0.0212 0.0222 0.0216 0.0236 0.0226 0.02299 Inglew ood Unified S chool District 0.1561 0.1499 0.1276 0.1135 0.1168 0.1308 0.0983 0.0929 0.1438 0.12904 La Ccd Ds 2008 2012 S eries F - - - - - - - - - - La Community College District 0.0445 0.0402 0.0358 0.0360 0.0460 0.0462 0.0272 0.0402 0.0438 0.02488 La County Flood Control - - - - - - - - - - Los Angeles Unified School District 0.1464 0.1469 0.1297 0.1311 0.1222 0.1232 0.1255 0.1399 0.1132 0.12107 Metropolitan Water District 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.00350 Total Direct & Overlapping (d) Tax Rates 1.3994 1.4357 1.3857 1.3733 1.3746 1.3904 1.3256 1.3485 1.3707 1.3433 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
203
Total Net Assessed Value 15,561,988,828$ 100.00% 8,061,183,169$ 100.00% Percentage Percentage
Net of Total Net of T otal
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Lot, Inc. 535,415,732$ 1 3.44% 308,680,130$ 1 3.83% Fox Hills Mall LLC/Westfield 218,336,115 2 1.40% 206,198,580 2 2.56% Bit Culver City Creative Office LLC 212,924,596 3 1.37% Culver St udios Owner LLC 202,916,022 4 1.30% 86,788,099 9 1.08% One Culver Owner LP 180,072,384 5 1.16%
Equit y One Culver LLC 177,608,064 6 1.14% 111,649,947 4 1.39% 9050 Washington LLC 168,300,000 7 1.08%
Ivy S tation LLC 165,515,434 8 1.06%
US VI CP Property LLC 158,685,909 9 1.02%
S ony Pictures Entertainment / Corporation 148,841,784 10 0.96% 127,224,043 3 1.58% VCP CP Culver City LLC 95,700,000 7 1.19%
S ymantec Corporation 107,194,875 5 1.33%
Transwestern Corporate Pointe LLC 105,919,905 6 1.31% T CE Filmland Holdings LLC 94,858,502 8 1.18%
Sy Culver City Portfolio Limited Partnership 75,295,347 10 0.93% Total 2,168,616,040$ 13.94% 1,319,509,428$ 16.37%
Source: Los Angeles County Assessor 2022/23 Combined Tax Rolls 2023 2014
City of Culver City
Property Tax Levies and Collections
Last Ten Fiscal Years
204
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 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% 2023 6,883,638 6,295,025 91.4% 297,893 6,592,918 95.8% 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.
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
205
Leases and Total Wastewater Certificates Leases and Total Total Percentage Debt Fiscal Redevelopment Subscriptions Governmental Revenue of Subscriptions Business-type Primary of Personal Per Year Bonds Payable Loans Activities Bonds Participation Payable Activities Government Income (b) Capita (b) 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 - 556,217 22,027,047 22,027,047 0.9% 549 2023 - 638,476 - 638,476 20,545,982 - 515,741 21,061,723 21,700,199 0.8% 547 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, 2023, 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, 2022
206
City Assessed Valuation 6,946,791,029$
Successor Agency Incremental Valuation 8,615,197,799
Total Net Taxable Assessed Valuation 15,561,988,828$
Estimated
Share of
Estimated Direct and
Debt Percentage Overlapping
Out st anding Applicable Debt
Overlapping Debt Repaid w ith V oter-Approved Property Taxes:
Los Angeles County -$ -$
Los Angeles County Flood Control District - - Metropolitan Water District 19,215,000 0.428% 82,240 El Camino College District 463,537,057 0.003% 13,906 Los Angeles Community College District 4,500,730,000 1.452% 65,350,600 Culver City Unified School District 111,920,000 99.693% 111,576,406 Inglewood Unified School District 184,485,000 0.028% 51,656 Los Angeles Unified School District 10,704,725,000 0.007% 749,331 Subt ot al, overlapping debt 2.56% 177,824,139
Cit y direct debt 0.00% -
Total direct and overlapping debt 2.56% 177,824,139$
Source: HdL Coren & Cone, Los Angeles County Assessor 2022/23 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 estimates 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 2.56% of the City's 2022/2023 assessed valuation or $ 177.8 million.
City of Culver City
Legal Debt Margin Information
Last Ten Fiscal Years
207
2014 2015 2016 2017 2018
Total assessed valuation 8,323,791,063$ 8,732,804,582$ 9,169,218,845$ $9,949,044,594 10,555,362,319$ Debt Limit percentage 15% 15% 15% 15% 15%
Debt Limit 1,248,568,659$ 1,309,920,687$ 1,375,382,827$ 1,492,356,689$ 1,583,304,348$ Amount of debt applicable to the limit: -$ -$ -$ -$ -$
Legal Debt Margin 1,248,568,659$ 1,309,920,687$ 1,375,382,827$ 1,492,356,689$ 1,583,304,348$ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Note: In accordance with California Government Code, total general obligation bonds outstanding cannot exceed 15 percent of total assessed valuation. For the 10 years ended June 30, 2023 , the City w as not obligated in any manner for general obligation bonds.
City of Culver City
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
208
2019 2020 2021 2022 2023
Total assessed valuation 11,323,006,988 12,281,599,213 13,423,021,867 14,248,320,150 15,796,658,526 Debt Limit percentage 15% 15% 15% 15% 15%
Debt Limit 1,698,451,048$ 1,842,239,882$ 2,013,453,280$ 2,137,248,023$ 2,369,498,779$ Amount of debt applicable to the limit: -$ -$ -$ -$ -$
Legal Debt Margin 1,698,451,048$ 1,842,239,882$ 2,013,453,280$ 2,137,248,023$ 2,369,498,779$ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Note: In accordance with California Government Code, total general obligation bonds outstanding cannot exceed 15 percent of total assessed valuation.
For the 10 years ended June 30, 2023, the City was not obligated in any manner for general obligation bonds.
City of Culver City
Pledge-Revenue Coverage
Last Ten Fiscal Years
209
Utility Interest Less: Net
Fiscal Service Earnings Operating Available Tax Increment Year Charges (a) Expenses Revenue Principal Interest Coverage Collections Principal Interest Coverage 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 (353,846) 6,327,789 2,480,617 740,000 825,133 1.58 - - - - 2023 8,956,852 251,017 6,572,689 2,635,180 805,000 786,658 1.66 - - - - 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. (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 the 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
210
Personal Per
Income Capita
Calendar (thousands Personal Unemployment
Year Population of dollars) Income Rate
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% 2022 39,682 2,709,639 68,283 4.4% S ource: HDL 2022-23 ACFR Statistical Basic Package for City of Culver City City of Culver City
Principal Employers
Current Year and Nine Fiscal Years Ago
211
Employer
Number of
Employees Rank
Percentage of
T otal City
Employment
Number of
Employees Rank
Percentage of
T otal City
Employment
S ony Pictures Entertainment 3,000 1 5.08% 3,200 1 12.90% Amazon S tudios 2,500 2 4.24% - - Westfield S hoppingtow n-Fox Hills 2,000 3 3.39% - - Apple 1,500 4 2.54% - -
S outhern CA Hospital (Brontman Medical Ctr) 1,200 5 2.03% 1,000 2 4.03% Culver City Unified School District 898 6 1.52% 771 4 3.11% City of Culver City 850 7 1.44% 760 5 3.06%
Goldrich & Kest Indust ries, LLC 670 8 1.14% 717 6 2.89% Costco 633 9 1.07% -
TikTok 500 10 0.85% -
Target 463 11 0.78% 475 9 1.92%
West Los Angeles College - - 575 7 2.32% Symantec - - 900 3 3.63%
Beats by Dre/Apple, Inc. - - 450 10 1.81% NFL Media - - 500 8 2.02%
Total Top 10 Employers 14,214 24.08% 9,348 37.69% Total City Labor Force (1) 59,022 24,800
S ources: Culver City Finance Department and Economic Development Division 2023 2014
City of Culver City
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
212
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
General government 68 69 68 75 73 74 78 83 83 89
Parks, recreation and community services 31 31 31 32 33 33 33 33 33 34 Police 157 157 160 162 150 150 159 156 156 157
Fire 69 71 72 72 72 72 79 79 79 80
Community development 36 36 36 37 39 40 40 46 46 47
Public works 48 49 51 53 53 54 56 58 58 62
Grants operating 6 6 6 7 7 8 8 6 6 6
Internal service 41 42 43 43 44 44 44 37 37 37
Refuse 40 41 42 46 46 50 50 52 52 54
Transit 129 151 152 153 155 157 160 161 161 160
Sewer 11 11 11 12 12 12 12 12 12 10
Total 636 663 673 692 684 694 718 721 721 736
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
213
2014 2015 2016 2017 2018
General government
Building permits issued 2,336 2,756 3,029 2,930 2,954 Building inspect ions conduct ed 9,609 10,925 12,614 12,948 12,638 Police
Arrestees Processed 1,611 1,239 1,242 1,166 2,513 Parking citations 37,681 38,681 40,009 36,961 41,038 Traffic citations 10,028 9,003 8,981 5,347 8,612 Fire
Emergency responses 4,969 5,375 5,684 6,106 6,857 Fire Emergency Incidents 210 215 215 206 270 Commercial Fire Safety Inspections 2,742 2,810 2,800 3,032 2,929 Refuse collection
Residential Refuse & Greenwaste collected (tons per day) 42 43 43 43 41 Commercial Refuse Collected (tons per day) 143 130 141 105 76 Responses to Customer Service Requests 120 120 120 150 150 P ublic Works
Traffic Engineering Investigations 4,601 4,685 4,721 4,816 4,782 Tons of Asphalt Placed 325 230 207 555 85 Damaged Sidewalk removed/replaced (sq ft) 8,100 10,084 9,103 32,795 3,620 Trees Trimmed 3,200 4,958 4,350 3,938 3,106 Parks and recreation
Park picnic permits issued 1,276 1,026 933 1,018 1,148 Participation in Youth S ports 5,328 4,950 4,480 10,984 32,333 Participation in Adults Sports 43,766 45,456 48,312 49,572 57,295 T ransit - Municipal buses
Total service miles 1,589,108 1,593,248 1,658,913 1,686,317 1,658,633 Passengers 5,416,010 4,979,334 5,653,192 5,070,970 4,864,138 Source: Annual Budgets and various city departments.
City of Culver City
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
214
2019 2020 2021 2022 2023
General government
Building permits issued 3,023 2,548 2,752 3,375 3,260 Building inspect ions conduct ed 14,212 14,318 11,781 10,928 12,142 Police
Arrestees Processed 1,986 1,451 947 1,005 1,706 Parking citations 39,081 28,713 11,414 13,675 28,574 Traffic citations 6,106 3,100 3,205 2,780 4,186 Fire
Emergency responses 6,753 6,505 6,236 7,159 7,601 Fire Emergency Incidents 221 250 299 348 367 Commercial Fire Safety Inspections 2,825 2,781 2,802 3,070 2,885 Refuse collection
Residential Refuse & Greenwaste collected (tons per day) 40 44 46 43 43 Commercial Refuse Collected (tons per day) 85 84 76 82 88 Responses to Customer Service Requests 88 83 86 75 72 P ublic Works
Traffic Engineering Investigations 4,800 5,202 5,420 5,435 6,288 Tons of Asphalt Placed 128 119 1,751 1,710 325 Damaged Sidewalk removed/replaced (sq ft) 4,052 2,000 13,540 3,966 909 Trees Trimmed 3,517 3,209 3,518 2,995 7,149 Parks and recreation
Park picnic permits issued 1,114 523 83 1,163 1,020 Participation in Youth S ports 34,021 15,601 193,186 43,522 19,991 Participation in Adults Sports 52,727 87,718 47,784 67,482 68,970 T ransit - Municipal buses
Total service miles 1,656,768 1,551,211 1,443,703 1,335,642 1,324,701 Passengers 4,600,876 3,388,031 1,692,993 2,267,479 2,660,654 Source: Annual Budgets and various city departments.
City of Culver City
Capital Asset Statistics by Function
Last Ten Fiscal Years
215
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police
Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 27 21 21 23 23 28 31 28 33 33 Motorcycle units 13 14 11 11 11 7 8 8 7 6 Detective Units 34 38 38 38 38 39 32 29 29 26 Parking Enforcement Units 8 9 8 8 8 11 11 11 12 11 Fire stations 3 3 3 3 3 3 3 3 3 3 Refuse collection
Collection trucks 22 22 22 22 22 23 23 23 23 23 Other public works
Streets (miles) 119.6 119.6 119.6 119.6 120 120 120 120 120 120 Highways (miles) 2.4 2.4 2.4 2.4 2 2 2 2 2 2 Streetlig hts 3,596 3,596 3,596 3,661 3,653 3,654 3,655 3,681 3,681 3,681 Traffic signals 104 105 105 106 106 107 108 108 108 108 Parks and recreation
Acreage 100 100 100 100 100 100 92 92 92 92 Community parks 8 8 8 8 8 8 2 1 1 1 Neighborhood parks 6 6 6 6 4 4 7 10 10 10 Mini parks 4 4 4 4 2 2 5 2 2 2 Wastewater
Sanitary sewers (miles) 90 90 90 90 90 91 91 91 91 91 Pumping (lift) stations 7 7 7 7 7 7 7 7 5 6 Transit - Municipal buses 52 54 54 56 56 54 54 54 54 54 S ource: Various city departments
City of Culver City, California