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FINANCIAL STATEMENTS
Successor Agency to the Culver City Redevelopment Agency Private Purpose Trust Fund – To account for the winding down of the former Redevelopment Agency, including disposition of real properties held by the Agency and payment of enforceable obligations. Reflected in the Basic Financial Statements section.
Pension (and Other Employee Benefits) Trust Fund – To account for the assets of the City’s Retiree Health Insurance Program (the Plan), a single – employer defined benefit plan for the City’s eligible retired employees and their spouses.
Custodial Funds – To account for assets held by the City as a custodian for individuals, private organizations, other government units, and/or other funds in an arrangement not meeting the definition of a trust or trust equivalent.
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CITY OF CULVER CITY, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 6: LEASE RECEIVABLE (CONTINUED)
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, 2024, the total lease receivable and deferred inflows of resources for the above leases were $504,394 and $462,681, respectively for the governmental activities, leases related to business-type activities ended during the 2024 fiscal year.
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 Iine basis over the term of the lease.
The future lease receipts for these leases are as follow:
There were no significant variable payments received during the fiscal year ended June 30, 2024.
NOTE 7: CAPITAL ASSETS
A. Governmental Activities
Summary of changes in capital assets for governmental activities for the year ended June 30, 2024, are as follows:
Fiscal Year Ended
Year Ending June 30 Principal Interest Total
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 504,394 $ 91,152 $ 595,546 $
Governmental Activities
Balance
July 1, 2023 Additions Deletions Transfers
Balance
June 30, 2024
Capital assets, not being depreciated/amortized
21,538,464$ 4,138,314 $ - $ 13,668,274$ 39,345,052 $ 65,261,897 7,154,312 (348,478) (43,828,492) 28,239,239 Total capital assets, not being depreciated/amortized 86,800,361 11,292,626 (348,478) (30,160,218) 67,584,291 Capital assets, being depreciated/amortized
Buildings 75,639,855 6,123,195 - 18,838,542 100,601,592 Improvements 47,338,945 1,157,954 (35,578) 261,302 48,722,623 Machinery and Equipment 51,426,956 4,693,782 (291,524) 557,000 56,386,214 Infrastructure 109,353,254 1,494,118 (164,797) 10,503,374 121,185,949 Subscription Asset 1,097,753 777,478 (267,928) - 1,607,303 Total capital assets, being depreciated/amortized 284,856,763 14,246,527 (759,827) 30,160,218 328,503,681 Less accumulated depreciation/amortization
Buildings (37,654,900) (2,159,741) - - (39,814,641) Improvements (25,831,763) (1,769,942) 889 - (27,600,816) Machinery and Equipment (41,819,757) (3,466,700) 138,837 - (45,147,620) Infrastructure (34,145,113) (2,608,756) 5,379 - (36,748,490) Subscription Asset (352,852) (425,406) 267,928 - (510,330) Total accumulated depreciation/amortization (139,804,385) (10,430,545) 413,033 - (149,821,897) Total capital assets, being depreciated/amortized, net 145,052,378 3,815,982 (346,794) 30,160,218 178,681,784 Governmental Activities Capital Assets, Net 231,852,739$ 15,108,608 $ (695,272) $ - $ 246,266,075$ Land
Construction in Progress
Governmental Activities
82 CITY OF CULVER CITY, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 7: CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to the following functions in the statement of activities:
B. Business – Type Activities
Summary of changes in capital assets for business type activities for the year ended June 30, 2024, are as follows:
General Government 1,117,475 $
Parks, Recreation and Community service 775,315
Police 410,442
Fire 465,041
Planning and Development 981,624
Public Works 4,570,789
Redevelopment Agency 714
Internal Services 2,109,146
Total depreciation/amortization expenses 10,430,545$
Balance
July 1, 2023 Additions Deletions Transfers
Balance
June 30, 2024
Capital assets, not being depreciated/amortized
3,082,760$ - $ - $ - $ 3,082,760$ 8,936,172 1,066,253 - (18,814) 9,983,611 Total capital assets, not being depreciated/amortized 12,018,932 1,066,253 - (18,814) 13,066,371 Capital assets, being depreciated/amortized
Buildings 28,075,735 - - - 28,075,735 Improvements 14,404,118 64,145 - 8,150 14,476,413 Machinery and Equipment 57,233,884 915,574 - - 58,149,458 Furniture and Fixtures 420,308 - - - 420,308 Infrastructure 55,299,400 - - 10,664 55,310,064 Investment in Hyperion 26,605,373 - - - 26,605,373 Lease Assets 730,491 - (730,491) - - Subscription Assets 239,389 - - - 239,389 Total capital assets, being depreciated/amortized 183,008,698 979,719 (730,491) 18,814 183,276,740 Less accumulated depreciation/amortization
Buildings (15,087,040) (559,947) - - (15,646,987) Improvements (8,780,204) (620,329) - - (9,400,533) Machinery and Equipment (40,138,761) (3,429,352) - - (43,568,113) Furniture and Fixtures (418,186) (2,121) - - (420,307) Infrastructure (12,001,488) (1,086,557) - - (13,088,045) Investment in Hyperion (19,923,954) (665,134) - - (20,589,088) Lease Assets (381,126) (9,757) 390,883 - - Subscription Assets (60,057) (75,596) - - (135,653) Total accumulated depreciation/amortization (96,790,816) (6,448,793) 390,883 - (102,848,726) Total capital assets, being depreciated/amortized, net 86,217,882 (5,469,074) (339,608) 18,814 80,428,014 Business - Type Activities Capital Assets, Net 98,236,814$ (4,402,821) $ (339,608) $ - $ 93,494,385$ Business - Type Activities
Land
Construction in Progress
83 CITY OF CULVER CITY, CALIFORNIA
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
NOTE 7: CAPITAL ASSETS (CONTINUED)
Depreciation/amortization expense was charged to the following functions in the Statement of Activities:
NOTE 8: LONG-TERM LIABILITIES
A. Governmental Activities
Summary of changes in governmental activities long term liabilities for the year ended June 30, 2024, 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, 2024, 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 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%.
The lease obligations were fully extinguished as of June 30, 2024.
Refuse Disposal 191,296 $
Municipal Bus Lines 4,036,406
Sewer Enterprise 1,988,654
Municipal Fiber Network 232,437
Total depreciation/amortization expenses 6,448,793$
Balance
June 30, 2023 Additions Deletions
Balance
June 30, 2024
Due Within One
Year
Due In More
Than One Year
Compensated Absences 14,685,088 $ 8,693,058 $ (8,235,545) $ 15,142,601 $ 3,830,191 $ 11,312,410 $ Claims and Judgements 19,977,326 14,073,824 (5,638,809) 28,412,341 9,895,000 18,517,341 Lease and Subscription Liabilities
SBITA Liability 638,476 777,478 (460,669) 955,285 470,885 484,400 Total 35,300,890 $ 23,544,360 $ (14,335,023) $ 44,510,227 $ 14,196,076 $ 30,314,151 $ Balance
June 30, 2023 Additions Deletions
Balance
June 30, 2024
Due Within One
Year
Due In More
Than One Year
Compensated Absences 1,235,450 $ 1,953,493 $ (1,571,064) $ 1,617,879 $ 497,455 $ 1,120,424 $ Lease and Subscription Liabilities
Lease Liability 370,748 - (370,748) - - - SBITA Liability 144,993 - (69,842) 75,151 75,151 - Wastewater Facilities Revenues Bonds,
2019 Series A 17,390,000 - (850,000) 16,540,000 895,000 15,645,000 Bond Premium 3,155,982 - (119,847) 3,036,135 119,847 2,916,288 Total 22,297,173 $ 1,953,493 $ (2,981,501) $ 21,269,165 $ 1,587,453 $ 19,681,712 $ 84 &,7<2)&8/9(5&,7<&$/,)251,$
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