Written materials relating to an item on this agenda that are distributed to the legislative bodies within 72 hours before the item is to be considered at its regularly scheduled meeting will be made available for public inspection at the City Clerk’s Office, 300 West Third Street 4th Floor during customary business hours. Agenda reports are also on the City of Oxnard web site at www.oxnard.org.
In compliance with the Americans with Disabilities Act, if you require special assistance to participate in a meeting, please contact the City Clerk’s Office at 385-7803. Notice at least 72 hours prior to the meeting will enable the City to reasonably arrange for your accessibility to the meeting.
Agenda Item Time Estimates include: (Minutes for Presentation + Council Discussion + Public Comment)
AGENDA
OXNARD CITY COUNCIL
FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
March 12, 2024
Regular Meeting - 5:00 to 6:30 PM
Zoom details to call-in for public comment during a meeting:
1. Dial Phone Number: (888) 475-4499
2. Enter Meeting ID: 881 1307 4411
3. Passcode: 584723
If you wish to speak during public comments or a particular item on the agenda, please sign-on by following the zoom call-in steps listed above. Once the presiding officer calls for public speakers, press *9 to raise your hand to inform the City Clerk you would like to speak during the public speaking section for that particular item on the agenda, while in the zoom waiting room. Press *6 when asked to unmute. Listen to the instructions provided virtually on the phone while on hold in the zoom waiting room. Please note that there is a slight time delay when viewing the meeting via television.
IN ACCORDANCE WITH ASSEMBLY BILL 2449, MEMBERS OF THE LEGISLATIVE BODY MAY MEET IN-PERSON OR REMOTELY. TO PARTICIPATE REMOTELY VISIT WWW.OXNARD.ORG.
To find out how you may provide public comment, please refer to the instructions below or at www.https://www.oxnard.org/city-meetings/.
The public may view the meeting from home on Spectrum channel 10, Frontier channel 35, or YouTube at Youtube.com/oxnardnews.
Video recordings of the meeting are typically available online following the meeting at the City’s website at www.oxnard.org/city- meetings.
*Please see the link for the Measure M pre-recorded presentation video for each item listed on this agenda.
YOU MAY PARTICIPATE IN THE MEETING IN THE FOLLOWING WAYS:
1. ATTEND THE MEETING AT THE LOCATION LISTED ABOVE: Submit a speaker card to the City Clerk.
2. EMAIL COMMENTS OR SIGN UP TO SPEAK REMOTELY BEFORE THE MEETING
a. Submit a request to speak remotely by 3 p.m. on the day of the meeting by using the form available at www.oxnard.org/citymeetings.
b. Submit an email to [email protected] by 3 p.m. on the day of the meeting (indicate the agenda item number in the subject line). All email correspondence will be forwarded to the legislative body prior to the start of the meeting and made part of the legislative record.
c. Contact the City Clerk’s Office at (805) 385-7803 to submit your request.
3. PROVIDING PUBLIC COMMENTS REMOTELY DURING THE MEETING
a. Follow Zoom details listed above.
1 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
March 12, 2024 - Page 2
b. Public comments on agenda items will be taken following the announcement of the item. After the item is announced, members of the public may register or otherwise be recognized for the purpose of providing public comment.
Please review the Zoom instructions on the registration page to help ensure there are no technical difficulties during your comments and help you understand public comment procedures using Zoom. Detailed participation instructions can be found at www.oxnard.org/city-meetings.
In the event of a disruption which prevents a legislative body of the City of Oxnard from broadcasting a meeting using a call-in option or internet- based service option, or in the event of a disruption within the City’s control which prevents members of the public from offering public comment using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on a meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. However, if any of the broadcast options are disrupted, but any of the other broadcast options is still available to the public, the legislative body may take further action on items appearing on a meeting agenda without waiting for the disrupted broadcast option(s) to be restored.
A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.
B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.
C. CONSENT AGENDA
1. City Clerk Department
SUBJECT: Approval of Minutes.
RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the February 13, 2024 regular meeting as presented.
Contact: Rose Chaparro, (805) 385-7805
D. REPORTS
1. Finance Department
SUBJECT: FY22-23 Annual Comprehensive Financial Report and Summary Presentation. (10 minutes).
RECOMMENDATION: That the Finance and Governance Committee receive, and recommend that staff proceed to the full City Council with, the FY 22-23 Annual Comprehensive Financial Report (ACFR) and summary presentation from the City's external financial auditors, Eadie + Payne, LLP.
(Presentation will be live upon consultant's request).
Contact: Javier Chagoyen-Lazaro, (805) 200-5400
E. ITEMS FOR FUTURE AGENDAS
F. ADJOURNMENT
2 FINANCE AND GOVERNANCE COMMITTEE
AGENDA REPORT
CONSENT AGENDA
AGENDA ITEM NO. C.1
DATE: March 12, 2024
TO: Finance & Governance Committee
FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]
SUBJECT: Approval of Minutes.
RECOMMENDATION
That the Finance & Governance Committee approve the minutes of the February 13, 2024 regular meeting as presented.
BACKGROUND
Approval of Minutes.
STRATEGIC PRIORITIES
This agenda item is a routine operational item.
FINANCIAL IMPACT
There is no financial impact.
Prepared by: Rose Chaparro, City Clerk
ATTACHMENTS
1. MINUTES 02 13 2024 Finance & Governance
3 MINUTES
OXNARD CITY COUNCIL
FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
February 13, 2024
A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:00 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Go vernance Committee in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. The City Clerk called the roll and announced the posting of the agenda. Chair John C. Zaragoza , Member Gabriela Basua, and Member Gabe Teran were present in person.
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.
B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Public comments were received from Alejandro Chavez (opioid pandemic).
C. CONSENT AGENDA
1. City Clerk Department
SUBJECT: Approval of Minutes.
RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the January 23, 2024, regular meeting as presented.
It was moved b y Member Basua, seconded by Member Teran , to approve the Information/Consent item as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-0.
D. REPORTS
1. City Manager Department
SUBJECT: Approval of Federal and State Lobbyist Agreements.
RECOMMENDATION: That the Finance and Governance Committee recommends that the City Council:
1. Approve and authorize the Mayor to execute Agreement No. 32400402 with HROD, Inc., John R. O'Donnell, in an amount not to exceed $2 08,000 over an
initial three-year term for federal advocacy and lobbying professional services; and
2. Approve and authorize the Mayor to execute Agreement No. 32400408 with 4 FEBRUARY 13, 2024 OXNARD CITY COUNCIL PAGE 2
FINANCE & GOVERNANCE COMMITTEE
Michael J. Arnold and Associates, Inc., in an amount not to exceed $180,000 over an initial three-year term for State of California advocacy and lobbying professional services.
Adam Smith, Project Manager presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.
It was moved by Member Basua, seconded by Member Teran, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-
0. 2. Information Technology Department
SUBJECT: Third Amendment to Agreement 32300297 with Kore1 for IT Consulting and Recruiting Services.
RECOMMENDATION: That the Finance and Governance Committee recommend that City Council approve and authorize the Mayor to execute a Third Amendment to Professional Services Agreement 32300297 with Kore1 LLC to increase the value of the agreement from $500,000 to $950,000 through June 30, 2025, for information technology consulting and recruitment services.
Robert Ruben, Chief Information Officer presented and answered th e Committee’s questions.
No public comments were received. Discussion ensued among the Committee and staff.
It was moved by Member T eran, seconded by Member Basua, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-
0. 3. Information Technology Department
SUBJECT: First Amendment to Agreement 32400125 with Hireclout for IT Consulting and Recruiting Services.
RECOMMENDATION: That the Finance and Governance Committee recommend that City Council approve and authorize the Mayor to execute a First Amendment to Professional Services Agreement 32400125 with Hireclout, Inc. to increase the value of the agreement from $200,000 to $850,000 through June 30, 2025, for information technology consulting and recruitment services.
Robert Ruben, Chief Information Officer presented and answered th e Committee’s questions.
No public comments were received. Discussion ensued among the Committee and staff.
It was moved by Chair Zaragoza, seconded by Member Teran, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-
0. 5
FEBRUARY 13, 2024 OXNARD CITY COUNCIL PAGE 3
FINANCE & GOVERNANCE COMMITTEE
4. Housing Department
SUBJECT: Approve a Sole Source Contract with John Stephen Lewis, LLC for Rent Stabilization Consulting Services.
RECOMMENDATION: That the Finance & Governance Committee recommend that the City Council authorize the City Manager or his designee to execute a second amendment to Agreement Number 9676-22-CA with John Stephen Lewis, LLC, increasing the not to exceed amount from $199,000 to $249,000.
Emilio Ramirez, Housing Director presented and answered th e Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.
It was moved by Member Basua, seconded by Member Teran, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-
0. E. ITEMS FOR FUTURE AGENDAS (No requests were made.)
F. ADJOURNMENT
There being no further business on the agenda, and without objection, Chair Zaragoza adjourned the meeting at 5:28 p.m.
ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair
6 FINANCE AND GOVERNANCE COMMITTEE
AGENDA REPORT
REPORTS
AGENDA ITEM NO. D.1
DATE: March 12, 2024
TO: Finance & Governance Committee
FROM: Javier Chagoyen-Lazaro, Chief Financial Officer, (805) 200-5400, [email protected]
SUBJECT: FY22-23 Annual Comprehensive Financial Report and Summary Presentation. (10 minutes).
RECOMMENDATION
That the Finance and Governance Committee receive, and recommend that staff proceed to the full City Council with, the FY 22-23 Annual Comprehensive Financial Report (ACFR) and summary presentation from the City's external financial auditors, Eadie + Payne, LLP.
(Presentation will be live upon consultant's request).
BACKGROUND
Eadie + Payne, LLP will present its audit opinion of the City of Oxnard’s financial statements, which consists of the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of June 30, 2023, and the respective changes in financial position.
STRATEGIC PRIORITIES
This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by the City Council on March 16, 2021.
FINANCIAL IMPACT
There is no financial impact.
Prepared by: Eadie + Payne
ATTACHMENTS
1. City of Oxnard - Issued Financial Statements
2. FGC Meeting Presentation 3-12-24
7 8
9 CITY OF OXNARD, CALIFORNIA
CONTENTS
JUNE 30, 2023
PAGE
INTRODUCTORY SECTION
L e t t e r o f T r a n s m i t t a l ...................................... i Certificate of Achievement for Excellence in Financial Reporting ............. v E l e c t e d O f f i c i a l s ....................................... v i i City of Oxnard Organizational Chart ............................. v i i i
FINANCIAL SECTION
Independent Auditor's Report ................................. 1 Management's Discussion and Analysis ........................... 5 Basic Financial Statements
Government-Wide Financial Statements:
S t a t e m e n t o f N e t P o s i t i o n ................................ 2 7 S t a t e m e n t o f A c t i v i t i e s .................................. 2 8 Fund Financial Statements
Governmental Funds
B a l a n c e S h e e t .................................... 3 0 Reconciliation of the Balance Sheet of Governmental Funds to the S t a t e m e n t o f N e t P o s i t i o n ............................ 3 3 Statement of Revenues, Expenditures, and Changes in Fund Balances .... 3 4 Reconciliation of the Change in Fund Balances of the Governmental Funds t o t h e S t a t e m e n t o f A c t i v i t i e s .......................... 3 7 Proprietary Funds
S t a t e m e n t o f N e t P o s i t i o n .............................. 3 8 Statement of Revenues, Expenses, and Changes in Net Position ........ 4 2 S t a t e m e n t o f C a s h F l o w s .............................. 4 4 Fiduciary Funds
Statement of Fiduciary Net Position ......................... 4 8 Statement of Changes in Fiduciary Net Position .................. 4 9 Notes to the Basic Financial Statements
I. Summary of Significant Accounting Policies
A. Reporting Entity ................................. 5 0 B. Financial Stat ements Presentation ....................... 5 1 C . N e w A c c o u n t i n g P r o n o u n c e m e n t s ....................... 5 7 D. Cash and Investments .............................. 5 9 E . R e c e i v a b l e s ................................... 6 0 F. Leases ...................................... 6 0
10 P A G E
Notes to the Basic Financial Statements (Continued)
G . C a p i t a l A s s e t s .................................. 6 1 H. Subscription-based Information Technology Arrangements (SBITA) ..... 6 2 I. Compensated Absences ............................ 6 2 J . N e t P e n s i o n L i a b i l i t y ............................... 6 2 K. Other Post-Employment Benefits (OPEB) .................. 6 3 L . D e f e r r e d O u t f l o w s / I n f l o w s o f R e s o u r c e s .................... 6 3 M. Fund Equity ................................... 6 4 N. Property Taxes .................................. 6 6 O. Utility Revenue .................................. 6 7 P . U s e o f E s t i m a t e s ................................. 6 7 Q. Budgets and Budgetary Accounting ...................... 6 8 R . E n c u m b r a n c e s .................................. 6 8 S . J o i n t V e n t u r e s .................................. 6 8
II. Detailed Notes on All Funds
A. Cash and Investments .............................. 6 9 B. Receivables and Payables ........................... 7 6 C. Interfund Receivables and Payables ...................... 7 7 D. Interfund Transfers ............................... 7 8 E. Lease Receivable ................................ 7 9 F . N o t e s R e c e i v a b l e ................................ 8 1 G . C a p i t a l A s s e t s .................................. 8 4 H. Long-term Debt ................................. 8 6 I. Compensated Absences ........................... 1 0 9 J . S u b s c r i p t i o n L i a b i l i t i e s ............................. 1 0 9 K. Fund Balances ................................. 1 1 1 L . P r i o r P e r i o d A d j u s t m e n t s ........................... 1 1 1
III. Defined Benefit Pension Plans and Other Post-Employment Benefits
1. California Public Employees' Retirement System
A . R e t i r e m e n t P l a n D e s c r i p t i o n ......................... 1 1 3 B. Benefits Provided ............................... 1 1 4 C . C o n t r i b u t i o n s .................................. 1 1 4 D. Actuarial Methods and Assumptions Used to Determine
Total Pension Liability ........................... 1 1 7 E. Discount Rate and Long-Term Expected Rate of Return .......... 1 1 8 F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows o f R e s o u r c e s R e l a t e d t o P e n s i o n s .................... 1 2 0 G. Sensitivity of the Net P ension Liability to Changes in the Discount Rate . 125 11 PAGE
Notes to the Basic Financial Statements (Continued)
2. Retirement Enhancement Plan
A . P l a n D e s c r i p t i o n ................................ 1 2 5 B. Benefits Provided ............................... 1 2 6 C . C o n t r i b u t i o n s .................................. 1 2 7 D. Actuarial Methods and Assumptions Used to Determine
Total Pension Liability ........................... 1 2 8 E . D i s c o u n t R a t e ................................. 1 2 8 F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows o f R e s o u r c e s R e l a t e d t o P e n s i o n s .................... 1 2 9 G. Sensitivity of the Ne t Pension Liability to Changes in the Discount Rate . 130
3. Deferred Compensation Plan .......................... 1 3 1
4. Post-Employment H ealth Care Benefits
A . P l a n D e s c r i p t i o n ................................ 1 3 1 B. Benefits Provided ............................... 1 3 1 C. Employees Covered by Benefit Terms .................... 1 3 1 D . T o t a l O P E B L i a b i l i t y .............................. 1 3 2 E. Changes in Total OPEB Liability ....................... 1 3 3 F. OPEB Expense and Deferred Outflows/Inflows of Resources R e l a t e d t o O P E B .............................. 1 3 4 IV. Risk Management
A. General Liability ................................ 1 3 5 B. Worker's Compensation ............................ 1 3 6 V. Other Information
A. Commitments and Contingencies ...................... 1 3 7 B. Risks and Uncertainties ............................ 1 3 9 C. Notes to the Financia l Statements - Successor Agency .......... 1 4 1 D. Notes to the Financial Stat ements - Retirement Enhancement Defined Benefit Retirement Trust Fund ................. 1 4 7 12 PAGE
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in Net Pensi on Liability and Related Ratios - CalPERS Miscellaneous Plan - Agent Multip le-Employer Defined Benefit Plan . . 149 Schedule of Changes in Net Pension Liability and Related Ratios - CalPERS Safety Plan (Police) - Agent Mu ltiple-Employer Defined Benefit Plan . . 150 Schedule of Proportionate Shar e of the Net Pension Liability and Related Ratios - C a l P E R S S a f e t y P l a n ( F i r e ) - C o s t S h a r i n g P l a n ................... 1 5 1 Schedule of Plan Contributions - CalPERS ........................ 1 5 2 Schedule of Changes in Net Pension Liability and Related Ratios Retirement Enhancement Plan - Single-Employer Defined Benefit Plan ...... 1 5 3 Schedule of Plan Contributions - Retirement Enhancement Plan ............ 1 5 4 Schedule of Changes in the City’s Tota l OPEB Liability and Related Ratios ...... 1 5 5 General Fund Group - Budgetar y Comparison Schedule ................. 1 5 6 Affordable Housing Fund - B udgetary Comparison Schedule .............. 1 5 7 Development Fees Special Revenue F und - Budgetary Comparison Schedule .... 1 5 8 State and Federal Grants Fund - Budgetary Comparison Schedule ........... 1 5 9 Capital Improvements Fund - Budgetary Comparison Schedule ............. 1 6 0
SUPPLEMENTARY INFORMATION
General Fund Group Funds ................................ 161 C o m b i n i n g B a l a n c e S h e e t ............................... 1 6 2 Combining Statement of Revenue s, Expenditures, and Changes in Fund Balances ................................... 1 6 4 General Fund - 101 - General Fund Budgetary Comparison Schedule ....... 1 6 6 General Fund - 104 - Half Cent Sale s Tax Budgetary Comparison Schedule ... 1 6 8 Nonmajor Governmental Funds ............................. 169 C o m b i n i n g B a l a n c e S h e e t ............................... 1 7 0 Combining Statement of Revenue s, Expenditures, and Changes in Fund Balances ................................... 1 7 2 Nonmajor - HUD and CDBG - Budgetary Comparison Schedule .......... 1 7 4 Nonmajor - Public Safety Retirement - Budgetary Comparison Schedule ...... 1 7 5 Nonmajor - State Gas Tax Funds - Budgetary Comparison Schedule ........ 1 7 6 Nonmajor - Debt Service F und - Budgetary Comparison Schedule ......... 1 7 7 Nonmajor - Capital Outlay Funds - Budgetary Comparison Schedule ........ 1 7 8 Nonmajor - CUPA - B udgetary Comparison Schedule ................ 1 7 9 Nonmajor - Traffic Safety - Budgetary Comparison Schedule ............ 1 8 0 Nonmajor - Transportation Development Fund - Budgetary Comparison Schedule 181 Nonmajor - Maintenance Assessment Distr icts - Budgetary Comparison Schedule 182 Internal Service Funds .................................. 1 8 3 C o m b i n i n g S t a t e m e n t o f N e t P o s i t i o n ......................... 1 8 4 Combining Statement of Revenues, Expenses, and Changes in Net Position ... 1 8 6 C o m b i n i n g S t a t e m e n t o f C a s h F l o w s ......................... 1 8 8 Fiduciary Funds
C o m b i n i n g S t a t e m e n t o f F i d u c i a r y N e t P o s i t i o n - C u s t o d i a l F u n d s ......... 1 9 1 Combining Statement of C hanges
in Fiduciary Net Position - Custodial Funds . . 192
13 PAGE
STATISTICAL SECTION (Unaudited) ........................... 193 Schedule I Net Position by Component ....................... 1 9 4 Schedule II Changes in Net Position ......................... 1 9 6 Schedule III Fund Balances of Governmental Funds ................. 2 0 0 Schedule IV Changes in Fund Ba lances of Governmental Funds .......... 2 0 2 Schedule V Governmental Activities Tax Revenues by Source ........... 2 0 4 Schedule VI Assessed Value and Estimated Value of Taxable Property ...... 2 0 5 Schedule VII Direct and Over lapping Property Tax Rates .............. 2 0 6 Schedule VIII Principal Property Taxpayers ....................... 2 0 7 Schedule IX Property Tax Levies and Collections .................. 2 0 8 Schedule X Ratios of Outstanding Debt by Type ................... 2 0 9 Schedule XI Direct and Overlapping Governmental Activities Debt ......... 2 1 0 Schedule XII Legal Debt Margin Information ...................... 2 1 1 Schedule XIII Pl edged Revenue Coverage ....................... 2 1 2 Schedule XIV Demographic and Economic Statistics ................. 2 1 4 Schedule XV Principal Employers ............................ 2 1 5 Schedule XVI Operating Indicators by Function .................... 2 1 6 Schedule XVII Capital Assets by Function ........................ 2 1 8 Schedule XVIII Full-Time Equivalent Ci ty Government Employees by Function .... 2 2 0 14 THIS PAGE LEFT INTENTIONALLY BLANK
15 INTRODUCTORY SECTION
16 -i-
Alexander Ngu
yen
City Manager
Office of the City Manager
300 West Third Street
Oxnard, CA 93030
(805) 285-7430
Fax (805) 385-7595
www.o
xnard.org
March 5, 2024
Honorable Mayor, Members of the City Council and Residents of Oxnard:
I am pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Oxnard, California for the fiscal year ended June 30, 2023. The form at and content of this ACFR comply with the principles and standards of accounting and financial reporting adopted by the Governm ental Accounting Standards B oard (GASB). The report contains information needed for readers to gain a reasonable understanding of the City's financial affairs.
The accuracy of the City’s financia l statements and the completeness and fa irness of their presentation are the responsibility of City management. The City strives for transparency and accountability to the public by maintaining a system of internal accounting controls designed to provide reasonable assurance that assets are safeguarded against loss or unauthorized use and the financial records can be relied upon to produce financial statements in accordance with accounting principles generally accepted in the Unit ed States of America (GAAP). The concept of reasonable assurance recognizes that the cost of maintaining the syst em of internal accounting controls should not exceed benefits likely to be derived.
Eadie and Payne LLP, Certified Public Accountants, has issued an unmodified or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2023. The independent auditor’s report is located at page 1 in the Financial Section of this report.
GAAP requires management to provide a narrative introduc tion, overview, and analysis to accompany the basic financial statements in the form of a Management’s Discuss ion 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 is located on page 5 immediately following the independent auditor’s report.
ECONOMIC RECOVERY FROM GLOBAL PANDEMIC
The fiscal year ended June 30, 2023, saw many of the unprecedented challenges brought by the COVID-19 pandemic left behind us and the City continued its pac e towards economic recovery, albeit in flation pressures, higher interest rates, the continuing tight labor mark et, and recent litigation that prevented the City to issue new debt to address critical projects. Fiscal year 2022/23 ACFR is the first one generated with financial data for the newly implemented financial module of the Enterprise Resource Planning (ERP).
CITY OF OXNARD PROFILE
The City of Oxnard is a full-service city located on the "Gold Coast" of California, approximately halfway between Los Angeles and Santa Barbara. It is the gateway to the Channel Islands National Park. Oxnard was founded in 1903 near the sugar beet processing facility owned by the Oxnard brothers. Henry T. Oxnard, the founder of Crystal Sugar, led the effort to incorporate the City. Shortly after incorporation, the City opened the Oxnard Library.
The adjacent Oxnard Plain is one of the most productive agricultural areas in the country. It produces one-third of the California strawberry crop that repres ents 85% of the U.S. market. Other high value crops produced nearby include avocados, lemons, Brussels sprouts, and artichokes, so Oxnard remains a leading agricultural and food center. 17 -ii-
The City is home to the West Coast operations of Procter and Gamble and Sysco. Port Hueneme, the only navigable port between Los Angeles and San Francisco, and the Naval Base Ventur a County have attracted defense and aerospace businesses that served as a foundation for Oxnard’s aerospace, technology, and manufacturing sectors.
Oxnard’s harbor and beaches support a strong tourism industry in normal times. When not afflicted by a Statewide or national recession, the local economy is diverse and robust.
Oxnard is the most populous of Ventura County’s ten cities. The last US Census Bureau data available as of July 1, 2022 estimates a population above 200,000 residents, and approximately 75% of its residents consider themselves Hispanic or Latino. Oxnard’s housing cost is rising, but remains less expensive than the County average. Lower cost and available flat land near the Pacific coast have prompted major housing developments in recent years.
The City operates under a City Council - City Manager form of government. The Council is responsible for policy and approves the annual budget. The City Manage r is responsible for the daily operat ions of the City. The City Council appoints the City Manager and City Attorney.
The City Council consists of the Mayor and six district-elected Councilmembers. The term of office is four years for all elected officials, with elections held every two years for th ree City Council seats at a ti me. The Mayor is elected at large during presidential election years. The City Treasurer, who is elected Citywide at the same time as the Mayor, invests idle cash and manages the investment portfolio. The City Clerk, also elected citywide at the same time as the Mayor, manages the City Council and Committee meeting agenda process, official records, and elections.
Names and photographs of the Mayor, Ci ty Councilmembers, City Treasurer and City Clerk, plus an organization chart with the names of appointed City officials as of June 30, 2023, are included at the back of the Introductory Section of the ACFR.
The City provides the following government and business-type services:
Government Activities Business-Type Activities
Governance, including finance, human
resources, risk management, information
technology, City Attorney, City Treasurer, City
Clerk and City Manager
Water – Planning, source and suppl y, treatment, distribution, and conservation, and administration and operation of the recycled water program
Police – including records, dispatch, patrol,
investigations, traffic enforcement and animal
safety
Wastewater – Collection, treatment of wastewater (sewer) and administration and operation of storm water programs for drainage and surface runoff
Fire – including hazardous materials storage
regulation and incident re sponse, prevention,
suppression, medical rescue, and emergency
response
Environmental Resources – collection and disposal of solid waste and operation of recyc ling collection and marketing programs
Community Development – including land
use/planning, building inspection, zoning, code
enforcement, and successor agency
obligations
Housing Authority – administration of Section 8 rental assistance program, affordable housing, and Community
Development Block Grant administration
Public Works – including engineering and
capital asset planning, streets and roads,
rights of way, park and landscape
maintenance, special di stricts administration
and service management, facilities and fleet
maintenance, and m anagement of utility
enterprise operations
Golf Course – operation and maintenance of the City’s River Ridge golf course
Culture, Leisure, and Libraries – including
recreation, after school , youth employment,
Performing Arts & Convention Center, and the
library system
18 -iii-
LONG-TERM ECONOMIC OUTLOOK
The largest employers in the City of Oxnard include Amaz on, Haas Automation, Reiter Affiliated, the Oxnard School District and the Oxnard Union High School District, St. John's Regional Medical Center, and the City of Oxnard. Other major employers in and near the City include the Naval Base Ventura County, which employs over 16,000 people, the County of Ventura, which employs more than 8,000, household names such as Procter and Gamble, and agricultural beacons such as Boskovich Farms, Gill's Onions, and Mission Produce.
Four districts provide K-8 education to Oxnard residents; with the Oxnard Un ion High School Distri ct, they educate more than 45,000 students combined. Oxnar d is also home to Oxnard College, wh ich is part of the Ventura County Community College District and has an enrollment of approximately 7,000 st udents. In addition, many Oxnard students continue their post-secondary education at nearby universities such as California State University Channel Islands, University of California, S anta Barbara, California Lutheran University, and uni versities with satellite campuses in Oxnard such as National University and Az usa Pacific University. The City developed the Oxnard Employee Pipeline in conjunction with the Chamber of Commerce and Oxnard College to provide specialized training to underemployed residents enabling them to provide our local companies with a pipeline of skilled employees.
The excellent climate we enjoy, coupled with our harbor, beaches, parks, and vibrant cultural events and festivals, make the City of Oxnard a top t ourist destination and support many t ourist-serving businesses in normal circumstances. In addition, Oxnard's mix of agricultural, manufacturing, and retail sectors provide a strong and diverse economic base on which to build the continued recovery from the COVID-19 recession. Businesses located in Oxnard are further strengthened by the steady increase in residential and commercial development throughout the City.
Oxnard's economic growth is driven by its diverse economic base, strategic location, and investments in key sectors.
The City continues to support initiatives to foster economic development, attract investment, and enhance the quality of life for residents and businesses alik e, such as continued development of Sakioka Business Park, residential construction in downtown Oxnard, and the renovation campaign for Zachari Dunes on Mandalay Beach.
Central to our economic development effort is the drive to make our residents more employable at our many higher- paying businesses. To accomplish this r equires the City to work closely with Oxnard Community College to provide the necessary education and training to up-skill many of our residents.
The City has embarked in a multiyear process to update its information systems through the implementation of a new ERP system, that includes Finance, Human Capital Management Permitting and Licensing, Asset Management and Utility Billing, to streamline operat ions, improve data visibility and accuracy, and enhance collaboration and communication among departments.
FISCAL CONDITION
The City’s voters have supported restoring service levels by approving a 1.5% supplemental transactions and use tax on November 3, 2020, for the General Fund. The new ci tywide tax rate became effective on April 1, 2021. The supplemental transactions and use tax, known as Measure E, generat ed $12.6 million in addi tional General Fund revenue in fiscal year 2020-21, and has generate $56.6 million in fiscal year 2021-22, and $56.8 million in fiscal year 2022-23, to support the restoration of pre-pandemic service levels. In 2008, the City’s voters approved 20-year 0.5% supplemental transactions and use tax, known as Measur e O, that sunsets in March 2029. The Measure O supplemental transactions and use tax generated revenue of $19.0 million in fiscal year 2022-23 and is projected to generate $19.5 million fiscal year 2023-24.
Fiscal year 2022-23 has been the first full year of operations for the new Amazon fulfillment center with a significant source of new employment for the City. As part of the review process for the new business, the City identified business license adjustments to bring the new center in full compliance with City Ordinances and generated one-time payment. 19 -iv-
The Amazon center and the pandemic recovery has increased the commercial activity and has had a positive impact on the economic growth of the City. The City will continue to monitor t he impact on future sales tax proceeds of potential changes in tax apportionment rules, as well as the opening of competing commercial business in neighboring communities.
Standard and Poor’s Global Ratings upgraded the City’s issuer Credit Rating From “A” to “A+” on October 26, 2022.
The report also revised its long-term rating on the City’s lease revenue bonds fr om “A-“ to “A”, the City’s Gas Tax Bond from “A+” to “AA-“ and assigned a “stable” outlook to all three.
The City has been challenged in its authorit y to issue municipal bonds, limiting access to capital markets and preventing the City from accessing funds that most American cities and count ies rely on to pay for major capital improvements. While the litigation is ongoing the City will be cash funding major capital infrastructure projects.
In fiscal year 2022-23 the General Fu nd Group total fund balance increased by $33.2 million due to the increase in sales tax revenue driven by the Amazon fulfillment center and the recovery to pre-pandemic levels. The improvement in fund balance will need to be dedicated to support the execution of the much needed capital improvement projects in the upcoming fiscal years until the bond litigation is resolved.
Final Comments
I wish to express my appreciation to the City Council, the staff members in the Finance Department and other departments, and Eadie and Payne’s audit staff in assuring that the City’s Annual Comprehensive Financial Report meets the highest standard of reporting and provides useful information about our City.
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26 FINANCIAL SECTION
27 3880 Lemon St., Ste. 300
Riverside, CA 92501
P.O. Box 1529
Riverside, CA 92502-1529
951-241-7800
www.eadiepaynellp.com
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INDEPENDENT AUDITOR'S REPORT
To the City Council
City of Oxnard
Oxnard, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial stat ements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Oxnard, California (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, based on our audit and the report of the other auditor, the accompanying financial statements present fairly, in all material res pects, the respective fi nancial position of the governmental activities, the business-type ac tivities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
We did not audit the financial statements of Oxnard Housing Authority, a blended component unit, which represent 1.38% and 7.81%, respec tively, of the government-wide assets and revenues. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the am ounts included for Oxnard Housing Authority, is based solely on the report of the other auditors. 28 -2-
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 audit 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 Stat ements section of our report. We are required to be independent of City of Oxnard, California, a nd to meet our other ethical res ponsibilities, 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.
Responsibilities of Management for the Financial Statements
The City’s 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 statem ents, 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 one year after the date that t he financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarant ee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intent ional omissions, misrepresentations, or the override of internal control. Misstatements are considered materi al 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, 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.
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Obtain an understanding of inter nal 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 effe ctiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies us ed 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 judgm ent, there are conditions or events, considered in the aggregate, that raise substant ial doubt about the City’s abilit y to continue as a going concern for a reasonable period of time.
We are required to communica te with those charged with gover nance 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.
Required Supplementary Information
Accounting principles generally accepted in the United States of Amer ica require that the management's discussion and analysis, budgetary comparison information for the General Fund Group, Affordable Housing Fund, Development Fees Fund, State and Federal Grants Fund and Capital Improvement Fund, the schedules of changes in net pension liability and related ratios, the schedules of proportionate share of the net pension liability and related ratios, the schedules of plan contributions, and the schedule of changes in total OPEB liability and related ratios on pages 5 through 26 and 149 through 160 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, econom ic, or historical context. We have applied certain limited procedures to the required s upplementary information in acco rdance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing t he information for consistency with management’s responses to our inquiries, the basic fina ncial 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 info rmation because the limit ed procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted fo r the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual General Fund Group, nonmajor funds, internal service funds and fiduciary funds financial statements are presented for purposes of additional analysis and are not a requir ed part of the basic financial statements.
The combining and individual General Fund Group, nonmajor funds, internal service funds and fiduciary funds financial statements are the responsibility of management and were derived from and relate directly to the underlying accounti ng and other records us ed to prepare the basic financial statements.
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Such infor
mation 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 a ccounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with audi ting standards generally accept ed in the United States of America. In our opinion, the combining and individual G eneral Fund Group nonmajor funds, internal service funds and fiduciary funds financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information Included in the Annual Comprehensive Financial Report Management is responsible for the other informa tion included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the financial st atements and our auditor's report thereon. Our opinions on the 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 th e financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other inform ation and the financial statement s, 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.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we will also issue our report on our consideration of the City of Ox nard, California'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 describe 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 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 the City of Oxnar d, California's internal control over financial reporting and compliance.
Riverside, California
February 23, 2024
31 MANAGEMENT’S
DISCUSSION AND ANALYSIS
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Oxnard (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal 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 Letter of Transmittal, which can be found on pages i-iv of this report. Comparative data on the government-wide financial statements are only presented in the Management’s Discussion and Analysis.
FINANCIAL HIGHLIGHTS
Government-Wide
On June 30, 2023, the City’s assets and def erred outflows exceeded liabilities and deferred inflows by $2.3 billion (net position). Of this amoun t, $2.2 billion is invested in capital assets and $177.5 million is restricted, offset by $(39.6) million that is unrestricted (Page 10).
The City’s total net position increased $47.3 million (2.1 percent), during the fiscal year.
Governmental activities net position increased by $38.9 million. Business-type activities increased by $8.4 million (Page 13).
Beginning net position – governmental activities was restated to record deferred revenue of $6.9 million related to PILOT loans initiated in fiscal year 2020 and 2021. In addition, the City changed its method of allocating pension and OPEB liabilities and related deferred outflows and inflows of resources to governmental activities, business-type activities, and internal service funds. As a result, governmen tal net position was increased and business-type net position was decreased by $14.5 million. The net effect of these two adjustments was an increase of governmental net position by $7.6 million and a decrease of business-type net position by $14.5 million. Refer to Note II. L on page 111 for further details.
Fund Based
At the close of fiscal year 2022-23, governmental funds reported a combined ending fund balance of $205.9 million, an incr ease of $17.4 million from t he prior year. The ending fund balance is primarily identified as: $0. 4 million nonspendable (0.2%), $113.6 million restricted (55.2%), $44.7 million committed (21.7%), $27.8 million assigned (13.5%), and $19.4 million unassigned (9.4%). (Page 19).
At the close of the fiscal year, fund balan ce for the General F und group of funds was $91.2 million consisting prim arily of $0.4 million nons pendable (0.4%), $43.6 million committed (47.8%), $27.8 million assign ed (30.5%), and $19.4 million unassigned (21.3%). (Page 19).
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General Fund group revenues for the year were $240.5 million compared to FY22 of $220.7 million. The City’s General Fund group revenues comprise of a wide variety of sources, the two largest revenue sources are sales tax, which represent slightly more than half (53%), and property tax, which represent close to one-third (28%) of all General Fund group revenue. The General Fund sales tax revenues, including 1% Bradley Burns and 1.5% Measure E sales and use tax, is largely generated from three industry categories – auto, fuel, and transportation, general consumer goods, and restaurants and hotels. Total revenues increased by $19.8 m illion or 9 percent from the prior year’s revenue of $220.7 million (Page 20), is mainly driven by higher sales tax generated.
Based on strong growth experi enced in FY22, the City continues to experience higher sales tax revenues generated from retail c onsumption as consum er behavior largely returned to normal surpassing the pre-pandemic period. Secondly, demand for auto sales continue to increase along with higher fuel pric es along with increased activities in the building and supplies.
General Fund group expenditures were $191.3 million. Total expenditures increased by $20.5 million or 12 percent co mpared to the prior year’s expenditures of $170.8 million (Page 21), primarily due to the rise in costs related to ne w negotiated labor contracts, increased public safety staffing with less va cancies in FY2023 compared to prior year FY2022, expansion of homeless programs and contribution to homeless shelter acquisition, increased maintenance and fixed charges relating to IT central support services and vehicle and capital leasing, and investment efforts on deferred maintenance of parks, median, and streets and alleyways related projects.
At the close of the fiscal year, the Wate r Fund’s net position wa s $135.6 million, a decrease of $6.1 million over the prior fiscal year (Page 23), primarily due to State and local water supplier’s strict watering restrictions and abundance of rain in December 2022 and January of 2023, causing a drop in residential and commercial water sales coupled with the City’s outreach of conservation and drought efforts, and increase in pension and OPEB liabilities.
At the close of the fiscal year, the Wastewater Fund’s net position was $199.9 million, an increase of $8.5 million over the prior fiscal year (Page 23), primarily attributed to steady revenue exceeding spending, which is lowe r particularly on multi-year capital improvement projects that will be carried over to the following fiscal year, offset by $1.7 million increase of net pension liability.
● At the close of the fiscal year, the Environmental Resources Fund’s net position was $21.0 million, a decrease of $15.0 million from the prior fiscal year (Page 23), primarily due to $5.5 million net operating loss with expens es exceeding revenue, which is lower compared to budget due to less demand for recycle sales and prior year’s reallocation of net pension liability increase by $9.3 million.
At the close of the fiscal y ear, the Golf Course Fund's net position was $48.7 million, an increase of $0.6 million from the prior year (Page 23), primarily driven by increase in golf course revenues or net operating gain of $0.6 million in FY2023.
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OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are compri sed of three components: 1) government-wide financial statem ents, 2) fund financi al statements, and 3) notes to basic financial statements. Th is report also contains other suppl ementary information in addition to the basic financial statements themselves.
Government-wide financial statements
The government-wide financial statements are designed to pr ovide readers with a broad overview of the City's finances, in a manner si milar to a private-sector business financial statement. The focus of these statements is to report all financial resources and obligations of the City.
The statement of net position presents informa tion on all of the City's assets and deferred outflows, and liabilities and deferr ed inflows, with the difference reported as net position.
Generally, deferred inflows and ou tflows represent amounts related to differences in timing of recognition of revenues and expenses compared to the timing of related financial resources.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents informa tion showing how the City’s net position changed during the fiscal year. 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, all of the fiscal year’s revenues and expenses are taken into account regardless of when cash is received or paid. Examples include earned but unused vacation leave or taxes collected by other entities not yet remitted to the City.
Government-wide financial statem ents distinguish City governmental activities, principally supported by taxes and intergovernmental rev enues, from business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges.
Governmental activities of th e City include general government, public safety, transportation, community development, culture, leisure, and libra ry services. Business-type activities of the City include water, wastewater, solid waste management, golf course, and the Oxnard Housing Authority component unit. The government-wide financial stat ements can be found on pages 27-29 of this report.
Fund financial statements
Fund financial statements are designed to r eport information about groupings of related accounts used to maintain control over res ources that have been s egregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. City funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. 35 -8-
However, unlike the government -wide financial statements, go vernmental funds financial statements focus on near-term in flows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the 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 so, readers may better understand the long-term impact of the government's near-term financing decisions. A reconciliation between gov ernmental funds and governmental activities in the government-wide financial statements is provided for both the governmental funds balance sheet and the governmental funds statement of revenues, expen ditures, and changes in fund balances.
The City maintains many individual governmental funds organized by their type (special revenue, debt service, and capital improvement funds). The City has five governmental funds classified as major funds requiring separate presentation in the basic financial st atements: the General Fund, the Affordable Housing Fund, the Development Fees Fund, the State and Federal Grants Fund, and Capital Improv ement Funds. The Capital Improv ement Fund is a new fund that accounts for revenues and expenses related to major infrastructure projects such as equipment purchases and capital improvements. Data from the remaining gov ernmental funds are combined into a single, aggregated presentation as nonmajor governmental funds. Individual fund data for each of the nonmajor governmental funds is provi ded in the form of combining statements shown on pages 170-173.
The City adopts an appropriated budget for its General Fund Group and special revenue funds, among others. Budgetary comparison statements demonstrate compliance with this budget on pages 156-160, 166-168, and 174-182.
The basic governmental funds financial statements can be found on pages 30-37 of this report.
Proprietary funds are generally used to account for services for which the City charges fees to outside customers or internal departments of the City. Proprietary funds provide the same type of information as shown in the government-wide statements, only in mo re detail. The City maintains the following two types of proprietary funds:
● 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 the operations of water, wastewater, environmental resources, the City’s golf course, and the Oxnard Housing Authority component unit.
o The Oxnard Housing Authority is audited separately. R eaders should contact the Authority at Housing Administrative Se rvices, 435 South D Street, Oxnard CA 93030, (805) 385-8041 for more information.
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● Internal service funds are used to report activities that provide internal services for the City. The City uses internal service funds to account for its liability and workers' compensation self-insurance, utility customer billing, information technology services, and facilities and equipment maintenance (primarily fleet services). Because internal service funds predominantly ben efit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. I ndividual fund data for the internal service funds is pr ovided in the form of comb ining statements found on pages 184-189.
The basic proprietary funds financial statements can be found on pages 38-47 of this report.
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflect ed in the government-wi de financial statements, because the resources of those funds are not available to support the City's own programs.
The City is the trustee, or fiduciary, fo r an employee pension plan and the Community Development Commission (CDC) Successor Agency. The basic fiduciary funds financial statements can be found on pages 48-49 of this report.
Notes to basic financial statements
The notes provide additional information essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to basic financial statements can be found on pages 50-147 of this report. Notes providing additional detail about the CDC Successor Agency can be found on pages 141-147.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information (RSI) concerning the City's progress in funding its obligation to provide pension and other post-employment benefits (OPEB) to its hourly and full- time employees, the Schedules of Changes in Net Pension and OPEB Liability and Related Ratios, and Schedule of Plan Contributions. Also included in RSI are the budgetary comparison schedules for the major governmental funds. RSI can be found on pages 149-160.
Combining statements for the General Fund Group, non-major gov ernmental funds, internal service funds, and custodial funds are present ed immediately following the RSI. Combining financial statements and schedules can be found on pages 162-192 of this report.
Statistical tables regarding fiscal trends, rev enue capacity, debt capacity, demographic and economic information, and operating information can be found on pages 194-220 of this report.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
As noted earlier, net position may serve as a useful indicator of a government’s financial position over time. City assets and deferred outflow s of resources exceeded liabilities and deferred inflows by $2.3 billion at the close of fiscal year 2022-2023 as detailed below:
2023 2022 2023 2022 2023 2022
Assets:
Current and Other Assets 299,337 $ 272,582 $ 208,477 $ 208,240 $ 507,814 $ 480,822 $ Capital Assets (net of depreciation) 2,001,366 1,983,294 552,225 548,557 2,553,591 2,531,851 Properties Held for Resale 570 570 - - 570 570 Lease receivable 734 603 - - 734 603 Other Assets 78,363 77,325 19,653 33,186 98,016 110,511 Total Assets 2,380,370 2,334,374 780,355 789,983 3,160,725 3,124,357 Deferred Outflows of Resources:
Deferred Charges 2,279 2,417 2,070 2,187 4,349 4,604 Deferred Pension Items 104,039 45,601 22,748 10,982 126,787 56,583 Deferred OPEB Items 10,507 12,575 2,951 3,331 13,458 15,906 Total Deferred Outflows
of Resources 116,825 60,593 27,769 16,500 144,594 77,093 Liabilities:
Current and Other Liabilities 111,013 98,612 33,744 36,815 144,757 135,427 Noncurrent Liabilities 446,524 334,929 333,575 308,881 780,099 643,810 Total Liabilities 557,537 433,541 367,319 345,696 924,856 779,237 Deferred Inflows of Resources:
Deferred Pension Items 11,703 90,599 1,109 18,005 12,812 108,604 Deferred OPEB Items 13,436 2,604 3,720 720 17,156 3,324 Deferred Gain on Refunding 565 609 - - 565 609 Leases 709 796 - - 709 796 Total Deferred Inflows
of Resources 26,413 94,608 4,829 18,725 31,242 113,333 Net Position:
Net Investment in Capital Assets 1,916,938 1,901,675 294,321 302,265 2,211,259 2,203,940 Restricted 113,608 108,731 63,932 44,239 177,540 152,970 Unrestricted (117,301) (143,588) 77,723 95,558 (39,578) (48,030) Total Net Position 1,913,245 $ 1,866,818 $ 435,976 $ 442,062 $ 2,349,221 $ 2,308,880 $ Governmental Activities Business-Type Activities Total
Statement of Net Position
June 30, 2023
(in thousands)
The largest portion of the City’s net position reflects its net invest ment of $2.2 billion in capital assets (land, buildings and improvements, equipm ent and machinery, vehicles, infrastructure, and construction in progress, net of accumula ted depreciation), less related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, resources needed to repay this debt must be provided from other sources, si nce the capital assets themselv es cannot be used to liquidate these liabilities.
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Another portion of the City’s net position, $177.5 million, repres ents resources that are subject to external restrictions on thei r use. The remaining balance of unrestricted net position is a deficit of $39.5 million.
This net deficit is primarily attributable to the implementation of GASB statements 68 and 75 to record liabilities for employee pensions and other post-employment benefit s. These liabilities will be liquidated with revenues received in future years that cannot be accrued in these financial statements.
Capital Assets
Investments in capital assets for governmental and business-type activities as of June 30, 2023, totaled $2.6 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvement s, equipment and machinery, vehicles, infrastructure, and construction in progress. The total increase in capital assets for fiscal year 2022-23 was $21.7 million, which represents a 0.9% increase from the prior year fo r governmental activities and $3.7 million or 0.7% increase in business-type activities. Addi tional information on the City’s capital assets can be found on pages 84-85 in the notes to the financial statements. Capital assets are summarized below:
2023 2022 2023 2022 2023 2022
Land 1,391,721 $ 1,390,541 $ 46,103 $ 45,539 $ 1,437,824 $ 1,436,080 $ Buildings and Improvements 127,392 129,052 139,404 144,568 266,796 273,620 Equipment, Machinery
and Vehicles 13,561 12,890 63,143 64,249 76,704 77,139 Intangible assets 2,379 - 35 - 2,414 - Infrastructure 402,206 416,814 276,901 259,018 679,107 675,832 Construction in Progress 64,107 33,996 26,639 35,181 90,746 69,177 Totals 2,001,366 $ 1,983,293 $ 552,225 $ 548,555 $ 2,553,591 $ 2,531,848 $ Governmental Activities Business-Type Activities Total
City of Oxnard
Capital Assets (net of accumulated depreciation)
June 30, 2023
(in thousands)
Major capital project activities during fiscal year 2022-2023 included the following:
● The $30.1 million net increase in governmental activities construction in progress was primarily due to progress on the following projects: Neighborhood Street Resurfacing project, Arterial & Alleyway Street Resurfac ing projects, Citywide Signal Modification project, Ventura Blvd. Sidewa lk project, ERP Implementati on, Aquatic Center South Oxnard project, Roof Replacements – St urgis Annex and South Oxnard projects, Adaptive Traffic Signals, Safe Route Safety Enhancement, and Rice Ave. at 5 th Street Grade project.
The $8.5 million net change or decrease in bus iness type activities construction in progress was primarily due to $27 million of completed projects and $6. 7 million of progress on projects in construction in progr ess not yet completed. The $27 million of completed projects include Water Backbone Hueneme II, Freemont North Resurfacing, Bryce Canyon South Street Re surfacing, Central Trunk Manhole Replacement, and Del Norte Facility Floor Construction.
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The $6.7 million construction in progress projects include Scale House Refurbishing, ASR Completion, Kamala and Hobson Pipe Repl acement, Activated Sludge Tank Rehab, CMWD Transmission Maintenance, and Blending Station Upgrades.
Long-Term Debt
At the end of fiscal year 2022-23 the City had total long-term debt outstanding of $361.3 million.
This reflects an increase of $0.4 million, or 0.4 percent, in governmental activities and a decrease of $14.0 million, or 5.1 percent, in business-type activities.
The City's bonds are rated by S&P Global Ratings. As of June 30, 2023, The City's issuer credit rating was “A” while maintaining ratings of “A” for General Lease Revenue Bonds, “A+” for Gas Tax, “A” for Water and “A” for Wastewater Bonds. S&P also raised the outlook for the outstanding Water Bonds from “Stable” to “Positive” in May of 2022.
Additional information on long- term debt can be found on pages 86-108 in the notes to the financial statements. Long-term debt is summarized below:
2023 2022 2023 2022 2023 2022
Lease Revenue Bonds 58,773 $ 62,539 $ - $ - $ 58,773$ 62,539 $ Revenue Bonds 17,585 18,382 253,026 265,176 270,611 283,558 Lease Purchase Agreements 19,532 16,655 9,964 11,872 29,496 28,527 Subscription Liabilities 2,102 - 24 - 2,126 - Note Payable - - 270 270 270 270 Totals 97,992 $ 97,576 $ 263,284 $ 277,318 $ 361,276 $ 374,894 $ City of Oxnard
Outstanding Debt (net of discounts/premiums)
June 30, 2022
(in thousands)
Governmental Activities Business-Type Activities Total
Governmental activities’ lease revenue bonds decreased $3.8 milli on due to principal payments made during the year.
Governmental activities’ revenue bonds decreased $0.8 million due to principal payments made during the year.
Governmental activities’ lease purchase agreements increased $2.9 million primarily due to the addition of Draw#26 and Draw#27 from Banc of Am erica Lease 2022 for $3.5 million offset by $2.4 million of principal payments made during the year.
Business-type activities’ long term debt decreased $14.1 million prim arily due principal payments made during the year.
The City recorded $2.1 million of subscription liabilities in governmental activities and business- type activities with the implementation of GASB Statement 96. 40 -13-
Statement of Activities
The statement of activities shows how the City ’s net position changed during fiscal year 2022- 2023. These changes are explained in the gover nmental and business-type activities on the following pages. Provided below is a summary of changes in net position:
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for Services 37,758 $ 31,014 $ 156,041 $ 155,747 $ 193,799 $ 186,761 $ Operating Grants and Contributions 46,187 46,714 28,635 24,641 74,822 71,355 Capital Grants and Contributions - 8,416 2,558 1,719 2,558 10,135 General Revenues:
Taxes 225,610 213,997 - - 225,610 213,997 Gain on disposition of assets 2 - 1,658 - 1,660 - Investment income 757 1,056 2,076 684 2,833 1,740 Total Revenues 310,314 301,197 190,968 182,791 501,282 483,988 Expenses
General Government 26,046 15,450 - - 26,046 15,450 Public Safety 132,980 120,846 - - 132,980 120,846 Public Works 59,151 58,765 - - 59,151 - Community Development 10,058 12,817 - - 10,058 12,817 Culture, Leisure, and Libraries 17,401 16,729 - - 17,401 16,729 Housing 10,181 7,357 - - 10,181 7,357 Interest on Long-Term Debt 3,548 3,722 - - 3,548 3,722
Water - - 64,460 66,845 64,460 66,845 Wastewater - - 37,234 35,837 37,234 35,837 Golf Course - - 50,482 46,956 50,482 46,956 Environmental Resources - - 5,694 5,335 5,694 5,335 Oxnard Housing Authority - - 34,438 28,212 34,438 28,212 Total Expenses 259,365 235,686 192,308 183,185 451,673 360,106 Change in Net Position Before Special Items
Contributed Capital, and Transfers 50,949 65,511 (1,340) (394) 49,609 123,882 Transfers (12,082) 131 9,728 (131) (2,354) - Change in Net Position 38,867 65,642 8,388 (525) 47,255 123,882 Net Position, July 1 1,866,818 1,801,176 442,062 442,587 2,308,880 2,243,763 Prior Period Adjustment 7,560 - (14,474) - (6,914) - Net Position, June 30 1,913,245 $ 1,866,818 $ 435,976 $ 442,062 $ 2,349,221 $ 2,367,645 $ (in thousands)
Fiscal Year Ended June 30, 2023
Statement of Activities
Governmental Activities * Business-Type Activities Total
* FY 2022 expenses were reclassified to be consistent with 2023 classifications.
41 -14-
Governmental activities increased the City’s net position $38.9 million compared to prior fiscal year’s increase of $65.6 million. This is driven by a combination of increase of program revenues offset by higher expenses. The key elements of the changes in net position were as follows:
General revenues increased $11.3 million, or 5.3 perc ent, primarily due to stronger local economic growth driven by high er consumer confidence and c onsumer spending particularly with increased sales tax revenues from Measure E imposed 1.5 cent local transaction and use taxes.
Program revenues decreased $2.2 million, or 2.6 percen t, primarily driven by $6.7 million increase of charges and service offset by decrease of $8.4 million one-time FY22 capital grants contribution related to American Rescue Plan (ARPA) from the economic effects caused by the COVID-19 pandemic.
The breakdown of governmental revenues by source is shown below:
Charges for Services
12%
Operating Grants and
Contributions
15%
Capital Grants and
Contributions
0%
Property Tax
26%
Sales Tax
41%
Other Taxes
6%
Other
0%
Revenues ‐ Governmental Activities
42 -15-
Expenses increased of $23.7 million is driven by increased public safety expenses, increased in general government expenses, and cultural community services expenses.
Additionally, with the implement ation of the new ERP system, ce rtain expenses for reporting units have changed in FY2023 compar ed to FY2022. Substantially expenses related to public works and housing that used to be partially classified under general government, community development, and cultural community services are now classified under their own operating unit as public works and housing expenses. Due to this revision, the comparison below outlines the changes year-over-year based on the new mapping of expense category.
Public safety expenses increased by $12. 1 million primarily driv en by $6.0 million increase in wages and benefits, $2.4 million of station co verage and overtime including call back, $2.2 million increased internal suppor t services of which $1.7 million are from information system (IT) and $0.5 million from public liability and worker’s compensation insurance, and $1.5 million in c ontractual services and rental and leases for vehicles.
Public Safety, mainly Police, was able to successfully fill majority of its vacated / authorized positions in FY 2023 compared to FY2022. Along with less vacancy, the increase of Public Safety wages and employee benefit was compounded by the implementation of the Citywide Classificati on and Compensation for City’s authorized positions and negotiated new Memorandum of Understanding (MOUs) with bargaining units on July 1, 2022.
General Government expenditures increased $10.6 million driven by $3.7 million increase in net pension liability, $3.4 mi llion increase of compensa ted absences liability, $1.6 million increased in information system (IT) internal support services, and $1.9 million increased in capital expenses including sub scription expenses related to GASB 96 and depreciation. Reported one year in arrear s based on the prior 12-months period's performance, the City's report ed net pension liability has been quite volatile the last several years. While the June 30, 2022, net pension liability (based on 12-month period ending 06/30/21 valuation) reflected a tempor ary reduction to t he City's reported net pension liability due to strong investment performance, the June 30, 2023, net pension liability increased again as expected and prefaced in last year's ACFR. The $3.7 million liability increase was mostly due to the changes of assumptions, public market returns, which made up 79% of the CalPERS investment portfolio, domestic interest rate hikes, and inflation. CalPER S continues to assess and make strategic changes to the fund's portfolio, with a long-term target discount rate of 6.8%. Compensated absences liability includes benefits for employees pay leave such as vacation, sick, paid time off, and holidays. The implementation of Citywide Classification and Compensation, new MOUs increased salary and benefits, less vacancy, and less cash out of compensated absences compared to prior years have attributed to increase of compensated absences by $3.4 million.
Culture, leisure and library services increas ed by $0.7 million mainly due to increase in salaries and benefits.
43 -16-
The breakdown of governmental expenses by activity is shown below:
General Government
10%
Public Safety
51%
Public Works
23%
Community
Development
4%
Culture, Leisure and
Libraries
7%
Housing
4%
Interest on Long‐Term
Debt
1%
Expenses ‐ Governmental Activities
44 -17-
Business-type activities decreased the City’s net position by $8.4 million compared to prior fiscal year’s decrease of $0.5 million. Key elements of net position changes from the prior fiscal year were as follows:
Water’s net position decreased $6.1 million, fr om $141.7 million to $135.6 million, compared to the prior fiscal year’s decrease of $9.7 million. The decrease is primarily driven by a combination of net operating loss of $4.2 million due to drop in residential and commercial water sales, $1.6 million nonoperating income and transfers, and $3.5 million increase in net pension liability.
Wastewater’s net position increased $8.5 million, from $191.3 million to $199.9 million, compared to the prior fiscal year’s increase of $7.7 million. With $11.8 million of operating net income primarily from operating revenues exceeding expenses particularly multi-year capital improvement projects that will be carried over to the following fiscal year, offset by $1.6 million nonoperating loss and transfers and $1.7 million increase of net pension liability.
Environmental Resources’ net position decreased $15.1 m illion, from $36.1 million to $21.0 million, compared to the prior fiscal year’s decreas e of $4.0 million. The $15.1 million change compared to the prior fiscal year is prim arily due to $6.0 million net operating loss with expenditures exceeding revenue, offset by $0.2 million nonoperating income and transfers, and reduced by the prior year’s reallocation of net pension liability increase by $9.3 million.
The Golf Course’s net position increased $0.6 million, from $48.2 million to $48.7 million.
The increase is primarily driven by operating revenue exceeding expenses, yielding a net gain of $0.6 million.
The Oxnard Housing Authority’s net position increased $4.5 million, from $26.4 million to $30.9 million, compared to the prior fiscal year’s increase of $3.5 million.
A comparison of program revenues to total expenses for each of the business-type activities, as well as a breakdown of revenues by type, is provided in the next two graphs. For business-type activities, charges for services provide the lar gest share of revenues (83.3 percent), except for the Oxnard Housing Authority Fund, which is primarily funded with operating grants.
45 -18-
$‐
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Water Wastewater Environmental
Resources
Golf Course Oxnard Housing
Authority
$52.9
$45.6 $45.7
$6.3
$33.8
$57.1
$33.8
$51.7
$5.7
$34.4
Program Revenues and Expenses - Business-Type Activities (in millions)
Program Revenue Expenses
Charges for Services,
$156.0 , 83.3%
Operating Grants and
Contributions, $28.6 ,
15.3%
Capital Grants and
Contributions, $2.6 , 1.4%
Program Revenues by Source - Business-Type Activities
(in millions)
Total Revenues = $187.2
46 -19-
FUND FINANCIAL ANALYSIS
As noted earlier, the City uses fund accoun ting 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. Su ch information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
At the close of fiscal year 2022-23, City gover nmental funds reported a combined ending fund balance of $205.9 million, an increase of $17.4 million during fiscal year 2022-23 when compared to the prior fiscal year fund balance of $188.6 million. This increase was primarily due to increase in fund balances for the General Fund of $33. 2 million and for the Development Fee Fund of $0.2 million, and Capital Improvement Fund of $1.1 million. The fund balance of the State and Federal Grants Fund decreased by $0.3 milli on and the Non-major Funds fund balance decreased by $16.9 million. Fund balance consists of $0.4 million in nonspendable fund balance, $113.6 million in restricted fund balance, $44.7 million in committed fund balance, $27.8 million in assigned fund balance and $19.4 million in una ssigned fund balance. Refer to pages 30-37 for more detail on governmental funds.
TOTAL
2023 2022 2023 2022
Assets 122,279 $ 104,141 $ 358,626 $ 345,235 $
TOTAL ASSETS
AND DEFERRED OUTFLOWS 122,279$ 104,141 $ 358,626 $ 345,235 $ Liabilities, Deferred Inflows
and Fund Balance
Liabilities 30,591 $ 45,709 $ 92,600 $ 99,036 $ Deferred inflows of resources 458 437 60,076 57,626 Total Liabilities
and Deferred Inflows 31,049 46,146 152,676 156,662 Fund Balances
Nonspendable 400 3,589 404 3,589 Restricted - - 113,608 108,730 Committed 43,631 28,281 44,739 50,292 Assigned 27,812 - 27,812 - Unassigned 19,388 26,125 19,388 25,962 Total Fund Balances 91,231 57,995 205,951 188,573
TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES 122,280$ 104,141 $ 358,627 $ 345,235 $ * see table on page 22 for all other governmental funds.
Governmental Fund Balance Sheet Summary
(in thousands)
FUND GROUP GOVERNMENTAL FUNDS*
GENERAL
47 -20-
General Fund Group – Fund Balance Analysis
The General Fund Group’s combined fund balance increased $33.2 million in fiscal year 2022- 2023, reaching $91.2 million, primarily driven by robust sales tax revenues and strong economic growth. The General Fund Group’s fund balance consists of $0.4 million in nonspendable, $21.7 million in funds committed to mu lti-year capital projects, $21.9 million committed to Measure O eligible services, $27.8 million assigned to operating reserves, and $19.4 million as unassigned.
General Fund Group – Revenue and Expenditure Analysis
General Fund Group Revenues for fiscal year 2022-23 were $240.5 million, an increase of $19.8 million, or 9 percent, compared to the prior fiscal year.
Increase
(Decrease) % of Increase
Compared to (Decrease)
Fiscal Year Fiscal Year Prior Fiscal Over Prior
2023 2022 Year Fiscal Year
Taxes
Property Taxes 67,668 $ 63,226 $ 4,442 $ 7.0% Sales Tax 128,534 118,084 10,450 8.8%
Transient Occupancy Tax 5,271 5,117 154 3.0% Business License Tax 6,677 6,538 139 2.1% Franchise Tax 4,934 4,169 765 18.3% Other Taxes 680 978 (298) (30.5%) Licenses and Permits 4,274 2,607 1,667 63.9% Intergovernmental 2,342 2,209 133 6.0% Charges for Services 11,962 16,117 (4,155) (25.8%) Fines and Forfeitures 2,815 2,542 273 10.7% Interest on Investments (95) 300 (395) (131.7%) Special Assessments 350 509 (159) (31.2%) Miscellaneous 5,127 (1,653) 6,780 (410.2%) Total 240,539 $ 220,743 $ 19,796 $ 9.0%
Comparison of General Fund Group Revenues
(in thousands)
Property tax revenue increased by $4.4 million, or 7 percent, primarily due to increases in assessed values for properties within the City.
● Sales tax revenue increased by $10.5 million, or 8.8 percent, pr imarily driven by continuous growth and expansion of the local economy.
● License and Permits and Charges for servic es decreased $2.2 milli on, or 20 percent, primarily due to reduced inspection fees resulting from multi-year projects that have been delayed to the next fiscal year and less inter nal staff charges to multi year and capital improvement projects compar ed to prior year. These two categories were combined because in FY 2022, certain acc ounts were included in Charges for Services, but in FY 2023, they were reclassified under Licenses and Permits. 48 -21-
● Investment income and Misc. revenues experienced a notable increase of $6.3 million, primarily driven by a reduction in unrealized losses on fair market value adjustments compared to FY22, resulting in a net increase of $2.7 million combined with another $2.8 million rise in interest income due to higher interest rates in FY23 (averaging 1.5% compared to 0.04% in FY22). Additionally, the Treasurer invested an additional $62 million from Measure E in securities yielding returns at or above 5%, mitigating the impact of lower interest rates on overall secu rities. Miscellaneous revenue experienced an increase of $0.6 million from one-time cannabis revenue, which revenue has been earmarked for improvement to the Colonia Multi-Service Center Building.
General Fund Group Expenditures for fiscal year 2022-2023 increased $20.5 million, or 12.0 percent, compared to the prior fiscal year.
Increase
(Decrease) % of Increase
Compared to (Decrease)
Fiscal Year Fiscal Year Prior Fiscal Over Prior
2023 2022* Year Fiscal Year
Current
General Government 21,685 $ 18,205 $ 3,480 $ 19.1% Public Safety 111,414 101,609 9,805 9.6% Public Works 25,554 25,047 507 2.0% Community Development 12,251 10,594 1,657 15.6% Culture, Leisure and Libraries 13,055 11,371 1,684 14.8% Housing 4,231 1,614 2,617 162.1% Capital Outlay 1,212 1,087 125 11.5% Debt Service
Principal 1,447 850 597 70.2% Interest and Fiscal Charges 456 468 (12) (2.6%) Total 191,305 $ 170,845 $ 20,460 $ 12.0%
Comparison of General Fund Group Expenditures
(in thousands)
* FY 2022 expenditures were reclassified to be consistent with 2023 classifications. General government expenditures increased $3. 5 million or 19.1 per cent compared to prior year, primarily driven by a rise in salaries and benefits, increase in legal contractual services, and increased in IT central support charges.
Public safety expenditures increased $9.8 m illion, or 9.7 percent, primarily due to increased personnel costs for wages and benef its associated with new negotiated labor contracts, implementation of class and com pensation, increases in staffing with less vacancy compared to FY22, an increase of IT central support costs, and the Animal Shelter contractual cost.
49 -22-
Community Development expenditures increased $1.7 million, or 16.0 percent, primarily due to increase in personnel cost primarily within t he Building and Engineering Division due to fewer vacancies compared to the prior year. Additionally, there was a $0.7 million increase in IT central support charges.
Culture Community Services expenditures increased $1.7 million, or 14.8 percent, primarily due to increase in personnel cost driven by less vacancy, implementation of class and compensation, and COLA increases with new negotiated labor contracts.
Public Works and capital related expenditures increased $0.5 million, primarily due to increase in contractual services for street maintenance, higher salaries and benefits, and additional IT support charges. Moreover, in Public Works, similar to other operating units, the capital improvement-related expenditu res are now reported under Capital Improvement Funds in FY2023 compared to FY2022 whereby capital outlay expenses were reported as part of operating funds and operating units.
Housing expenditures increased $2.6 million, or a 162% rise, primarily driven by expenses related to Measure O homeless program s, as well as an increase in staffing and contractual services.
There was an increase of $0.6 million, primarily attributed to higher interest and principal payments for debt-related services.
Other Governmental Funds
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Assets 37,084 $ 37,027 $ 71,524 $ 70,625 $ 47,326 $ 48,975 $ 10,362 $ - $ 70,051$ 84,467 $ 236,347 $ 241,094 $
TOTAL ASSETS
AND DEFERRED OUTFLOWS 37,084$ 37,027 $ 71,524 $ 70,625 $ 47,326 $ 48,975 $ 10,362 $ - $ 70,051$ 84,467 $ 236,347 $ 241,094 $ Liabilities, Deferred Inflows
and Fund Balance
Liabilities 10 $ 11 $ 4,854$ 4,215 $ 41,355 $ 42,613 $ 9,254 $ - $ 6,535$ 6,488 $ 62,009 $ 53,327 $ Deferred inflows of resources 33,628 33,628 10,846 10,846 5,664 5,708 - - 9,480 7,006 59,618 57,189 Total Liabilities
and Deferred Inflows 33,638 33,639 15,700 15,061 47,019 48,321 9,254 - 16,015 13,494 121,627 110,516 Fund Balances
Nonspendable - - - - - - - - 4 - 4 - Restricted 3,446 3,389 55,824 55,564 307 816 - - 54,032 48,961 113,608 108,730 Committed - - - - - - 1,108 - - 22,011 1,108 22,011 Unassigned - - - - - (163) - - - - - (163) Total Fund Balances 3,446 3,389 55,824 55,564 307 653 1,108 - 54,036 70,972 114,720 130,578
TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES 37,084$ 37,028 $ 71,524 $ 70,625 $ 47,326 $ 48,974 $ 10,362 $ - $ 70,051$ 84,466 $ 236,347 $ 241,094 $ Other Governmental Funds Balance Sheet Summary
(in thousands)
AFFORDABLE
HOUSING
DEVELOPMENT
FEES
CAPITAL
IMPROVEMENT FUND
OTHER
GOVERNMENTAL
STATE AND FEDERAL
GRANTS FUND TOTAL
Affordable Housing
The Affordable Housing Fund fund balance stayed flat compared to the prior fiscal year.
Development Fees Fund
The Development Fees Fund a ccounts for development fees t hat the City collects on new development projects to provide resources for related projects such as parks, storm drain facilities, traffic improvement, utility undergrounding, and community development. 50 -23-
The Development Fees Fund fund balance increas ed $0.3 million compared to the prior year’s increase of $0.3 million due to higher interest income and timing of various development projects.
State and Federal Grants Fund
The State and Federal Grants Fund fund balanc e decreased during the current year by approximately $0.3 million due appropriation from fund balances for the Oxnard Housing Authority properties maintenance.
Capital Improvement Fund
The Capital Improvement Fund captures all capita l-related projects for governmental funds in the new ERP Chart of Accounts. Previously to FY2023, capital improvements projects were part of operational funds. In fiscal year 2023, the General Fund Group made a significant contribution of $11.3 million to the Capital Fund for capital improvement projects, with allocations of $3.7 million for neighborhood resurfaci ng, $2.2 million for ERP implem entation, $2.3 million for the Savier Road building acquisition, $1 million for roof replacement at Sturgis Annex, and $0.9 million for playground replacement and public restroom improvements.
Proprietary Funds
The City’s proprietary funds financial statements provide the same type of information found in the government-wide financial statements business-type activities with greater detail.
Details on the net positions for the Water, Wa stewater, Environmental Resources, and Oxnard Housing Authority funds are provided below:
Current Change Prior Period Total Change
Net Position in Net Position Adjustment In Net Position Water 135,630 $ (2,525) $ (3,532) $ (6,057) $ Wastewater 199,851 10,194 (1,685) 8,509 Environmental Resources 21,015 (5,831) (9,257) (15,088) Golf Course 48,748 596 - 596 Oxnard Housing Authority 30,901 4,514 - 4,514 Totals 436,145 $ 6,948 $ (14,474) $ (7,526) $ City of Oxnard
Proprietary Funds
June 30, 2023
(in thousands)
Please refer to the business- type activities discussion on pages 17-18 for analysis of the changes in these funds. Proprietary financial statements can be found on pages 38-47. 51 -24-
BUDGETARY HIGHLIGHTS
General Fund Group
The General Fund Group budget and actual report can be found on pages 162-168. The $10.6 million change in fund balance between the original and final budget is the result of City Council approved budget adjustments. Major differences are highlighted below:
Variance
With Final
Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Taxes
Property Taxes 66,624 $ 66,624 $ 67,668 $ 1,044 $ Sales Tax 113,876 113,876 128,534 14,658 Transient Occupancy Tax 5,602 5,602 5,271 (331) Business License Tax 6,400 6,400 6,677 277 Franchise Tax 4,309 4,309 4,934 625 Other Taxes 985 985 680 (305) Licenses and Permits 3,906 3,906 4,274 368 Intergovernmental 2,496 2,496 2,342 (154) Charges for Services 13,436 13,436 11,962 (1,474) Fines and Forfeitures 2,729 2,729 2,815 86 Investment income 938 938 (95) (1,033) Special Assessments 345 345 350 5 Miscellaneous 3,347 5,647 5,127 (520) Total Revenues 224,993 227,293 240,539 13,246 Expenditures
Current
General Government 27,972 24,079 21,685 2,394 Public Safety 105,197 108,510 111,414 (2,904) Public Works 27,632 30,732 25,554 5,178 Community Development 13,619 15,045 12,251 2,794 Culture, Leisure and Library Services 14,583 15,043 13,055 1,988 Housing 4,052 6,506 4,231 2,275 Capital Outlay 545 1,552 1,212 340 Debt Service
Principal 2,635 2,635 1,447 1,188 Interest and Fiscal Charges 466 466 456 10 Total Expenditures 196,701 204,568 191,305 13,263 Excess of Revenues Over/(Under)
Expenditures 28,292 22,725 49,234 26,509 Other Financing Sources/(Uses)
Inception of subscription liabilities - - 1,567 1,567 Transfer from fiduciary fund - - 92 92 Net Transfers (15,487) (20,489) (17,656) 2,833 Total Other Financing Sources/(Uses) (15,487) (20,489) (15,997) 4,492 Net Change in Fund Balance 12,805$ 2,236 $ 33,237 $ 31,001 $ General Fund Group Budget and Actual
(in thousands)
52 -25-
General Fund Group Revenues were $13.2 million, or 5.8 percent, higher than final budget as a result of combination of higher than anticipated sales tax reven ue with a slight offset by the unanticipated decrease of charges for services ma inly due to less inspections for building and permits.
Property taxes were $1.0 million higher t han both original and final budget due primarily to slight growth of assessed property valuation.
Sales tax revenues were $14.7 million higher than both original and final budget primarily driven by continuous growth of local economy with rising fuel prices, higher auto demand, increase of building and construction, str ong demand of restaurants and hotels, as well as stronger retail consumption.
Charges for services were $1.5 million lower than both original and final budget primarily due less permits pulled compared to permits pulled in prior fiscal year 2022 for one-time building and permits inspections pulled for Amazon and Wagon Wheels.
Investment income was $1.0 lower than both original and final budge t primarily due to unrealized loss on investments which was not factored into the budget.
General Fund Group Expenditures were $13.3 million, or 6.5 percent, lower than final budget as a result of the following:
General Government expenditures were $2.4 million lower than budget primarily due to vacancy savings and lower contractual spending.
Public Safety expenditures were $2.9 million higher than budget primarily due to Police’s unrealized vacancy savings compared to anticipate.
Public Works costs combined were $5.2 million lower than budget primarily due vacancy savings, lower contractual spending, and delayed spending on multi-year capital improvement projects due to staffing turnover for Street Maintenance and Transportation.
Community Development expenditures were $2.8 million lower than budget primarily due to lower spending on planning and building engineering consultant plan check services, and deferred spending on mult i-year General Plan Maintenance projects and delayed spending on multi-year capital improvement projects that will be carried over to the following fiscal year.
Culture, Leisure and Library Services ex penditures were $2.0 million lower than budget primarily due to vacancy savings and lower contractual spending.
Housing expenditures were $2.2 million lower than budget primarily due vacancy savings, lower contractual spending, and delayed spending on multi-year Homeless programs that will be carried over to the following fiscal year.
Debt Service expenditures were $1.2 million lower than budget primarily because the City planned to pay off Measure O bonds earlier than maturity but was unable to do so due to a lawsuit that prevented the City from issui ng or refinancing debt, therefore creating a sudden need for cash spending elsewhere.
53 -26-
ECONOMIC AND LEGAL FACTORS
The City of Oxnard made continued strong economic growth and progress in its recovery after “shelter-in-place” mandates associated with the global COVID-19 pandemic. The expansion of new business and development, such as Wagon W heels and Amazon, have attributed to the growth of General Fund revenue base. The two main sources of General Fund revenue – sales tax and property. With the passage of Measure E, sales tax is the City’s largest General Fund revenue source with revenues of $128.5 million, an increase of 8.8 percent over the prior fiscal year. Property tax is the second largest with revenues of $67.7 million, an increase of 7 percent over the prior fiscal year. New development and increasing pr operty values supported the steady growth of property tax while increase in demand for consumer goods, travel, auto sales, and effects of inflation attributed to the increase of sales tax. While most local taxes performed strongly in FY2023-23, economic uncertainty remains elevated due to persistent recession fears.
On the expenditure side, annual increases in la bor costs, particularly for pensions and healthcare benefits, continue to outstrip revenue growth in mo st funds. The City benefits substantially from a public safety property tax established by voters in 1951, which relieves about half of the fiscal burden on the General Fund imposed by rising pension costs.
Several ongoing lawsuits could affe ct the City’s finances. The status of each is described on pages 138-141.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide elected officials, residents, taxpayers, customers, employees, and investors with a gener al overview of the City's fi nances and to show the City's accountability for the money it receives. If you have questions about this report, please contact the Finance Department at 300 W. 3rd Street, Oxnard, CA 93030, or call (805) 385-7475.
54 BASIC FINANCIAL
STATEMENTS
55 CITY OF OXNARD, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2023
The accompanying notes are an integral part of the financial statements. -27-
Governmental Business-t ype
Activities Activities Total
ASSETS
Current Assets
Cash and investments 255,752,338$ 180,417,777 $ 436,170,115 $ Accounts and other receivables (net of allowance for doubtful accounts) 5,095,155 20,447,349 25,542,504 Internal balances (6,882,932) 6,882,932 - Due from other governments 44,717,846 - 44,717,846 Due from fiduciary fund 115,508 - 115,508 Other assets 539,246 728,681 1,267,927 Total Current Assets 299,337,161 208,476,739 507,813,900 Noncurrent Assets
Lease receivable 734,211 - 734,211 Properties held for resale 570,000 - 570,000 Notes receivable (net of allowance for doubtful accounts) 66,281,277 3,898,406 70,179,683 Restricted: Investments with fiscal agents 12,081,532 15,754,462 27,835,994 Capital assets not being depreciated 1,455,828,104 72,741,386 1,528,569,490 Capital assets, net of accumulated depreciation 545,538,184 479,483,156 1,025,021,340 Total Noncurrent Assets 2,081,033,308 571,877,410 2,652,910,718 Total Assets 2,380,370,469 780,354,149 3,160,724,618
DEFERRED OUTFLOW OF RESOURCES
Deferred amount on refunding 2,279,234 2,070,519 4,349,753 Deferred outflow on pension plans 104,038,870 22,748,659 126,787,529 Deferred outflow on other post-employment benefit plan (OPEB) 10,506,612 2,950,720 13,457,332 Total Deferred Outflow of Resources 116,824,716 27,769,898 144,594,614
LIABILITIES
Current Liabilities
Accounts payable 23,973,281 12,981,872 36,955,153 Other current liabilities 16,193,785 4,505,500 20,699,285 Unearned revenues 41,375,113 78,132 41,453,245 Compensated absences payable - current 11,674,201 2,259,450 13,933,651 Other post-employment benefits payable - current 655,406 134,557 789,963 Self insurance claims - current 9,386,245 - 9,386,245 Notes payable - current 23,603 - 23,603 Subscription liabilities - current 964,514 11,456 975,970 Lease purchase and revenue bonds - current 6,766,490 13,773,308 20,539,798 Total Current Liabilities 111,012,638 33,744,275 144,756,913 Noncurrent Liabilities
Compensated absences payable 5,899,957 1,524,805 7,424,762 Net pension liabilities 277,451,850 71,276,699 348,728,549 Other post-employment benefits payable 37,738,890 10,472,623 48,211,513 Self-insurance claims 35,172,987 - 35,172,987 Other noncurrent liabilities - 801,929 801,929 Subscription lliabilities 1,137,138 12,458 1,149,596 Lease purchase and revenue bonds, net of premiums and discount 89,123,533 249,486,634 338,610,167 Total Noncurrent Liabilities 446,524,355 333,575,148 780,099,503 Total Liabilities 557,536,993 367,319,423 924,856,416
DEFERRED INFLOW OF RESOURCES
Deferred inflow on pension plans 11,702,489 1,108,725 12,811,214 Deferred inflow on other post-employment benefit plan (OPEB) 13,435,929 3,719,705 17,155,634 Deferred gain on refunding 565,336 - 565,336 Deferred inflow on leases 708,739 - 708,739 Total Deferred Inflow of Resources 26,412,493 4,828,430 31,240,923
NET POSITION
Net investment in capital assets 1,916,938,386 294,321,444 2,211,259,830 Restricted for:
Debt service 6,617,139 24 ,650,884 31 ,268,023 Housing 3,652,651 92,029 3,744,680 Maintenance districts 11,546,024 - 11,546,024 Public safety 3,888,342 - 3,888,342 Public works - transportation 2,447,083 - 2,447,083 Infrastructure 64,619,099 39,189,217 103,808,316 Grants 20,837,841 - 20,837,841 Unrestricted (117,300,866) 77,722,620 (39,578,246) TOTAL NET POSITION 1,913,245,699$ 435,976,194 $ 2,349,221,893$ 56 CITY OF OXNARD, CALIFORNIA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of the financial statements. -28-
Program Revenues
Operating Capital Grants
Charges for Grants and and
Functions/Programs Expenses Services Contributions Contributions
PRIMARY GOVERNMENT
Governmental Activities
General government 26,045,796 $ 10,576,686 $ 21,227,460 $ -$ Public safety 132,980,119 6,475,878 3,936,984 - Public works 59,150,684 10,868,488 10,479,566 - Community development 10,057,675 8,479,985 165,739 - Culture, leisure and libraries 17,400,561 1,097,398 4,768,631 - Housing 10,180,614 259,127 5,609,056 - Interest on long-term debt 3,548,487 - - - Total Governmental Activities 259,363,936 37,757,562 46,187,436 - Business-Type Activities
Water 64,460,086 52,868,819 - - Wastewater 37,234,300 45,599,034 - - Environmental Resources 50,482,111 45,650,825 - - Golf Course 5,694,314 6,294,905 - - Oxnard Housing Authority 34,437,715 5,627,664 28,634,591 2,557,794 Total Business-Type Activities 192,308,526 156,041,247 28,634,591 2,557,794 TOTAL PRIMARY GOVERNMENT 451,672,462$ 193,798,809 $ 74,822,027 $ 2,557,794 $
GENERAL REVENUES
Taxes
Property tax
Sales tax
Transient occupancy tax
Franchise tax
Deed transfer tax
Business license tax
Penalties and interest
Gain on disposition of assets
Transfer from (to) fiduciary funds
Investment income
TRANSFERS
CHANGE IN NET POSITION
NET POSITION - JULY 1, AS PREVIOUSLY STATED
PRIOR-PERIOD ADJUSTMENT
NET POSITION, JULY 1, RESTATED
NET POSITION - JUNE 30
Total General Revenues, Contributed Capital, and Transfers 57 -29-
Net (Expenses) Revenues and
Changes in Net Position
Primary Government
Governmental Business-type
Activities Activities Total Functions/Programs
PRIMARY GOVERNMENT
Governmental Activities
5,758,350$ - $ 5,758,350$ General government (122,567,257) - (122,567,257) Public safety (37,802,630) - (37,802,630) Public works (1,411,951) - (1,411,951) Community development (11,534,532) - (11,534,532) Culture, leisure and libraries (4,312,431) - (4,312,431) Housing (3,548,487) - (3,548,487) Interest on long-term debt (175,418,938) - (175,418,938) Total Governmental Activities Business-Type Activities
- (11,591,267) (11,591,267) Water - 8,364,734 8,364,734 Wastewater - (4,831,286) (4,831,286) Environmental resources - 600,591 600,591 Golf Course - 2,382,334 2,382,334 Oxnard Housing Authority - (5,074,894) (5,074,894) Total Business-Type Activities (175,418,938) (5,074,894) (180,493,832) TOTAL PRIMARY GOVERNMENT
GENERAL REVENUES
Taxes
78,849,939 - 78,849,939 Property tax 128,533,831 - 128,533,831 Sales tax 5,271,128 - 5,271,128 Transient occupancy tax 5,303,433 - 5,303,433 Franchise tax 679,570 - 679,570 Deed transfer tax 6,677,266 - 6,677,266 Business license tax 294,969 - 294,969 Penalties and interest 2,098 1,657,939 1,660,037 Gain on disposition of assets (2,354,419) - (2,354,419) Transfer from (to) fiduciary funds 757,515 2,076,950 2,834,465 Investment income (9,727,732) 9,727,732 - TRANSFERS 214,287,598 13,462,621 227,750,219 Total General Revenues, Contributed Capital, and
Transfers
38,868,660 8,387,727 47,256,387 CHANGE IN NET POSITION 1,866,817,291 442,062,195 2,308,879,486 NET POSITION - JULY 1, AS PREVIOUSLY STATED 7,559,748 (14,473,728) (6,913,980) PRIOR-PERIOD ADJUSTMENT 1,874,377,039 427,588,467 2,301,965,506 NET POSITION, JULY 1, RESTATED 1,913,245,699$ 435,976,194 $ 2,349,221,893$ NET POSITION - JUNE 30 58 CITY OF OXNARD, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
The accompanying notes are an integral part of the financial statements. -30-
DEVELOPMENT
AFFORDABLE FEES
GENERAL HOUSING FUND
ASSETS
Cash and investments 86,478,405$ 3,441,480 $ 60,453,116$ Restricted investments with fiscal agents - - - Accounts and other receivables 4,659,665 14,441 224,411 Due from other funds 2,005,080 - - Due from other government 26,353,853 - - Due from fiduciary funds 104,247 - - Prepaid expenses 377,939 - - Lease receivable 479,158 - - Advances to other funds 1,821,056 - - Notes receivable - 33,628,083 10,846,230 Total Assets 122,279,403$ 37,084,004 $ 71,523,757 $
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
LIABILITIES
Accounts payable 8,535,715$ 2,878 $ 198,248$ Other liabilities 10,530,351 - 4,655,504 Due to other funds 9,704,394 7,480 - Advances from other funds 1,821,056 - - Unearned revenues - - - Total Liabilities 30,591,516 10,358 4,853,752
DEFERRED INFLOW OF RESOURCES
Deferred inflow on loans - 33,628,083 10,846,230 Deferred inflow on leases 457,577 - - Total Deferred Inflow of Resources 457,577 33,628,083 10,846,230 Total Liabilities and Deferred Inflows of Resources 31,049,093$ 33,638,441 $ 15,699,982 $
FUND BALANCES
Nonspendable
Prepaid expenses 377,939$ - $ - $ Lease receivable, net 21,581 - - Restricted for:
Debt service - - - Housing - 3,445,563 - Maintenance districts - - - Public safety - - - Public works - transportation - - - Infrastructure - - 55,823,775 Grants - - - Committed to:
Measure "O" eligible services 21,917,546 - - Capital projects 20,604,727 - - Streets and traffic improvements/maintenance 1,108,904 - - Assigned to:
Operating reserves 27,812,072 - - Unassigned 19,387,541 - - Total Fund Balances 91,230,310 3,445,563 55,823,775 TOTAL LIABILITIES, DEFERRED INFOWS, AND FUND BALANCES 122,279,403$ 37,084,004 $ 71,523,757 $ 59 -31-
STATE AND CAPITAL
FEDERAL IMPROVEMENT TOTAL
GRANTS FUND FUND NONMAJOR GOVERNMENT
ASSETS
18,319,848$ 10,3
62,030$ 43,312,212$ 222,367,091$ Cash and investments - - 12,081,532 12,081,532 Restricted investments with fiscal agents - - 206,586 5,105,103 Accounts and other receivables 9,933,656 - - 11,938,736 Due from other funds 13,408,449 - 4,955,544 44,717,846 Due from other government - - 11,224 115,471 Due from fiduciary funds - - - 377,939 Prepaid expenses
- - 255,053 734,211 Lease receivable - - - 1,821,056 Advances to other funds 5,663,996 - 9,228,988 59,367,297 Notes receivable 47,325,949$ 10,362,030 $ 70,051,139 $ 358,626,282$ Total Assets
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
LIABILITIES
959,998$ 9,254,288$ 2,161,390$ 21,112,517$ Accounts payable 55,575 - 318,457 15,559,887 Other liabilities
8,019,329 - 1,914,327 19,645,530 Due to other funds - - - 1,821,056 Advances from other funds 32,320,508 - 2,140,625 34,461,133 Unearned revenues 41,355,410 9,254,288 6,534,799 92,600,123 Total Liabilities
DEFERRED INFLOW OF RESOURCES
5,663,997 - 9,228,988 59,367,298 Deferred inflow on loans - - 251,162 708,739 Deferred inflow on leases
5,663,997 - 9,480,150 60,076,037 Total Deferred Inflow of Resources 47,019,407$ 9,254,288 $ 16,014,949$ 152,676,160$ Total Liabilities and Deferred Inflows of Resources
FUND BALANCES
Nonspendable
-$ -$ -$ 377,939$ Prepaid expenses
- - 3,891 25,472 Lease receivable, net Restricted for:
- - 6,617,139 6,617,139 Debt service
- - 207,088 3,652,651 Housing
- - 11,546,024 11,546,024 Maintenance districts - - 3,888,342 3,888,342 Public safety
- - 2,447,083 2,447,083 Public works - transportation - - 8,795,324 64,619,099 Infrastructure
306,542 - 20,531,299 20,837,841 Grants
Committed to:
- - - 21,917,546 Measure "O" eligible services - 1,107,742 - 21,712,469 Ca
pital projects
- - - 1,108,904 Streets and traffic improvements/maintenance Assigned to:
- - - 27,812,072 Operating reserves
- - - 19,387,541 Unassigned
306,542 1,107,742 54,036,190 205,950,122 Total Fund Balances 47,325,949$ 10,362,030 $ 70,051,139 $ 358,626,282$ TOTAL LIABILITIES, DEFERRED INFOWS, AND FUND BALANCES 60 -32-
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61 CITY OF OXNARD, CALIFORNIA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
The accompanying notes are an integral part of the financial statements. -33-
Fund balances of governmental funds 205,950,122$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Accounts receivable and other assets not reported in the governmental funds 161,307 Land held for resale is not reported in the governmental funds 570,000 Capital assets of $2,397,854,826 net of accumulated depreciation ($399,075,463) are not financial resources and, therefore, are not reported in the governmental funds. 1,998,779,363 Deferred outflows for the following are not reported in the governmental funds:
Deferred loss on refunding 2,279,234$
Deferred outflow on pension and OPEB plans 108,509,041 110,788,275 Accrued interest payable for the current portion of interest due on long-term liabilities has not been reported in the governmental funds. (446,393) Notes receivable in the governmental funds are deferred because they are not available within the prescribed time period after year-end. However, the notes receivable are included on the accrual basis of accounting used in the government-wide financial statements. 59,367,298
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds:
Subscription liabilities (1,203,699)
Compensated absences (16,829,654)
Notes payable (23,602)
Other post-employment liability (34,706,312)
Net pension liabilities (261,628,379)
Leases and bonds payable, net of issuance discounts,
issuance premium and prepaid insurance (95,890,023)
(410,281,669)
Deferred inflows for the following are not reported in the governmental funds Deferred gain on refunding (565,336)
Deferred inflow on pension and OPEB plans (23,601,884) (24,167,220) Internal service funds are used by management to charge the costs of certain activities, such as insurance, information services, facilities, and equipment maintenance. The assets and liabilities of the internal service funds are included in the government activities in the statement of net position. Amounts are net of internal payable representing charges in excess of cost to business-type activities. (27,475,384)
NET POSITION OF GOVERNMENTAL ACTIVITIES 1,913,245,699$
62 CITY OF OXNARD
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of the financial statements. -34-
AFFORDABLE DEVELOPMENT
GENERAL HOUSING FEE FUND
REVENUES
Taxes 213,763,535 $ - $ - $
Licenses and permits 4,273,740 - - Intergovernmental 2,342,238 53,231 - Growth and development fees - - 4,168,962 Charges for services 11,962,462 - - Fines and forfeitures 2,814,558 - - Investment income (loss) (95,212) 27,669 221,349 Special assessments 350,055 - - Miscellaneous 5,127,357 125 111,369 Total Revenues 240,538,733 81,025 4,501,680
EXPENDITURES
Current
General government 21,684,582 - 24,256 Public safety 111,414,131 - - Public works 25,554,420 - 9,207 Community development 12,251,385 - 345,052 Culture, leisure and libraries 13,054,976 - 1,054 Housing 4,230,846 24,010 505,622 Capital Outlay 1,212,351 - - Debt Service
Principal 1,447,308 - - Interest and fiscal charges 456,480 - - Total Expenditures 191,306,479 24,010 885,191
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 49,232,254 57,015 3,616,489
OTHER FINANCING SOURCES (USES)
Issuance of debt - - - Inception of subscription-based IT arrangements 1,567,026 - - Transfer from fiduciary funds 91,621 - - Transfer to fiduciary funds - - - Transfers in from other funds 3,022,237 - - Transfers out to other funds (20,678,587) - (3,356,873) Total Other Financing Sources (Uses) (15,997,703) - (3,356,873) NET CHANGE IN FUND BALANCES 33,234,551 57,015 259,616 FUND BALANCES, JULY 1 57,995,759 3,388,548 55,564,159 FUND BALANCES, JUNE 30 91,230,310$ 3,445,563 $ 55,823,775 $ 63 -35-
STATE AND CAPITAL
FEDERAL IMPROVEMENT TOTAL
GRANTS FUND FUND NONMAJOR GOVERNMENTAL
REVENUES
-$ - $ 11,551,632$ 225,315,167$ Taxes - - 1,107,708 5,381,448 Licenses and permits 28,659,747 - 15,132,220 46,187,436 Intergovernmental - - - 4,168,962 Growth and development fees - - 1,154,135 13,116,597 Charges for services - - 2,000 2,816,558 Fines and forfeitures 1,424 - 602,285 757,515 Investment income (loss) - - 6,153,806 6,503,861 Special assessments 9,271 - 766,758 6,014,880 Miscellaneous 28,670,442 - 36,470,544 310,262,424 Total Revenues
EXPENDITURES
Current
155,000 - 63,157 21,926,995 General government 2,574,472 - 17,054,430 131,043,033 Public safety 899,769 - 12,668,671 39,132,067 Public works 206,088 - - 12,802,525 Community development 3,506,373 - 216,788 16,779,191 Culture, leisure and libraries 1,096,052 - 4,313,676 10,170,206 Housing 199,696 43,436,296 71,056 44,919,399 Capital Outlay Debt Service
103,614 - 5,718,174 7,269,096 Principal 4,251 - 3,400,911 3,861,642 Interest and fiscal charges 8,745,315 43,436,296 43,506,863 287,904,154 Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
19,925,127 (43,436,296) (7,036,319) 22,358,270 EXPENDITURES
OTHER FINANCING SOURCES (USES)
- - 5,320,000 5,320,000 Issuance of debt 302,595 - - 1,869,621 Inception of subscription-based IT arrangements - - - 91,621 Transfer from fiduciary funds - - (2,446,040) (2,446,040) Transfer to fiduciary funds 60,945 44,544,038 8,777,064 56,404,284 Transfers in from other funds (20,635,132) - (21,550,356) (66,220,948) Transfers out to other funds (20,271,592) 44,544,038 (9,899,332) (4,981,462) Total Other Financing Sources (Uses) (346,465) 1,107,742 (16,935,651) 17,376,808 NET CHANGE IN FUND BALANCES 653,007 - 70,971,841 188,573,314 FUND BALANCES, JULY 1 306,542$ 1,107,742$ 54,036,190$ 205,950,122 $ FUND BALANCES, JUNE 30 64 -36-
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65 CITY OF OXNARD, CALIFORNIA
RECONCILIATION OF THE CHANGE IN FUND BALANCES OF THE
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of the financial statements. -37-
Net Change in Fund Balances - Total Governmental Funds 17,376,808$ Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of 14,938,215
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds.
Change in accounts and notes receivables 2,537,086
Some expenses reported in the statement of activities do not require the use of current financial resources and are not reported as expenditures in governmental funds. These include:
Change in accrued interest (15,492)
Change in deferred outflows and inflows on refunding 328,650 Change in compensated absenses (2,184,467)
Change in pension and OPEB liabilities, deferred outflows and inflows 4,108,017 The issuance of long-term debt provides current financial resources to governmental funds, Issuance of long-term debt (5,320,000)
Subscription expense 27,650
Total principal repayments 7,269,096
Net income of internal service funds is reported with governmental activities. (196,903)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 38,868,660$ while the repayment of the principal of long-tem debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the net effect of premiums, discounts, and similar items when debt is first issued; whereas, these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense and amortization expense ($24,809,152) exceeded capital outlay ($39,747,367), that was capitalized in the current period.
66 CITY OF OXNARD, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
The accompanying notes are an integral part of the financial statements. -38-
ENVIRONMENTAL
WATER WASTEWATER RESOURCES
ASSETS
Current Assets
Cash and investments 60,933,194 $ 75,438,691 $ 20,036,109 $ Restricted investments with fiscal agent 13,606,271 9,473 - Accounts and other receivable (net of allowance for doubtful accounts) 6,899,414 6,345,044 5,572,830 Due from other funds 2,521,610 2,838,194 2,606,065 Due from fiduciary fund - - - Other assets 133,409 222,663 - Total Current Assets 84,093,898 84,854,065 28,215,004 Noncurrent Assets
Notes receivable (net of allowance for doubtful accounts) - 777,000 - Advances to other funds 302,441 - - Total Noncurrent Assets 302,441 777,000 - Capital Assets
Land 1,960,229 2,310,476 3,851,164 Construction in progress 7,671,253 14,303,200 1,797,671 Buildings and improvements 63,971,156 131,500,051 24,362,826 Machinery, equipment and vehicles 55,884,022 44,453,171 26,933,365 Infrastructure 236,930,542 202,485,713 2,839,837 Intangible assets 35,594 - 20,667 Less: Accumulated depreciation (127,761,009) (175,346,846) (27,713,577) Total Capital Assets (net of accumulated depreciation) 238,691,787 219,705,765 32,091,953 Total Assets 323,088,126 305,336,830 60,306,957
DEFERRED OUTFLOW OF RESOURCES
Deferred amount on refunding 1,743,941 326,578 - Deferred outflow on pension plans 4,662,967 5,223,545 9,947,567 Deferred outflow on other post-employment benefit plan 523,156 876,191 885,144 Total Deferred Outflow of Resources 6,930,064 6,426,314 10,832,711
LIABILITIES
Current Liabilities
Accounts payable 5,609,324 4,192,752 1,724,581 Other current liabilities 2,929,706 565,019 406,804 Due to other funds 114,428 - - Deferred revenue - - 48,204 Compensated absences payable - current 418,009 494,615 1,118,867 Other post-employment benefits payable - current 30,836 51,580 52,141 Self-insurance claims - current - - - Subscription liabilities - current 11,456 - - Lease purchase and revenue bonds - current 5,579,504 5,550,000 1,944,094 Total Current Liabilities 14,693,263 10,853,966 5,294,691 Noncurrent Liabilities
Advances from other funds - - - Other noncurrent liabilities 300,793 - 35,323 Compensated absences payable 214,937 254,328 575,314 Other post-employment benefits payable 1,880,933 3,150,282 3,182,441 Net pension liabilities 14,721,769 16,475,921 31,396,806 Self-insurance claims - - - Subscription liabilities 12,458 - - Lease purchase and revenue bonds, net of current portion and discount/premium 161,665,864 79,800,938 8,019,832 Total Noncurrent Liabilities 178,796,754 99,681,469 43,209,716 Total Liabilities 193,490,017 110,535,435 48,504,407 67 -39-
OXNARD TOTAL INTERNAL
GOLF HOUSING CURRENT SERVICE
COURSE AUTHORITY YEAR FUNDS
ASSETS
Current Assets
6,125,464$ 17,884,319 $ 180,417,777 $ 33,385,247 $ Cash and investments - 2,138,718 15,754,462 - Restricted investments with fiscal agent 7,863 1,622,198 20,447,349 (9,948) Accounts and other receivable (net of allowance for doubtful accounts)
- - 7,965,869 - Due from other funds - - - 36 Due from fiduciary fund 243,828 128,781 728,681 - Other assets 6,377,155 21,774,016 225,314,138 33,375,335 Total Current Assets Noncurrent Assets
- 3,121,406 3,898,406 - Notes receivable (net of allowance for doubtful accounts) - - 302,441 654,808 Advances to other funds - 3,121,406 4,200,847 654,808 Total Noncurrent Assets Capital Assets
28,117,344 9,863,482 46,102,695 - Land 61,214 2,805,353 26,638,691 416,358 Construction in progress 29,381,198 41,977,386 291,192,617 435,410 Buildings and improvements 13,950 1,982,185 129,266,693 7,001,846 Machinery, equipment and vehicles - - 442,256,092 - Infrastructure - - 56,261 1,037,734 Intangible assets (14,436,974) (38,030,101) (383,288,507) (6,304,423) Less: Accumulated depreciation 43,136,732 18,598,305 552,224,542 2,586,925 Total Capital Assets (net of accumulated depreciation) 49,513,887 43,493,727 781,739,527 36,617,068 Total Assets
DEFERRED OUTFLOW OF RESOURCES
- - 2,070,519 - Deferred amount on refunding 18,951 2,895,629 22,748,659 5,027,223 Deferred outflow on pension plans - 666,229 2,950,720 1,009,218 Deferred outflow on other post-employment benefit plan 18,951 3,561,858 27,769,898 6,036,441 Total Deferred Outflow of Resources
LIABILITIES
Current Liabilities
272,488 1,182,727 12,981,872 2,860,764 Accounts payable 688 603,283 4,505,500 187,505 Other current liabilities 144,647 - 259,075 - Due to other funds - 29,928 78,132 - Deferred revenue 2,297 225,662 2,259,450 491,684 Compensated absences payable - current - - 134,557 59,429 Other post-employment benefits payable - current - - - 9,386,245 Self-insurance claims - current - - 11,456 399,449 Subscription liabilities -
699,710 13,773,308 - Lease purchase and revenue bonds - current 420,120 2,741,310 34,003,350 13,385,076 Total Current Liabilities Noncurrent Liabilities
302,441 654,808 957,249 - Advances from other funds - 465,813 801,929 - Other noncurrent liab ilities 1,181 479,045 1,524,805 252,820 Compensated absences payable - 2,258,967 10,472,623 3,628,555 Other post-employment benefits payable 60,246 8,621,957 71,276,699 15,823,471 Net pension liabilities - - - 35,172,987 Self-insurance claims - - 12,458 498,504 Subscription liabilities - - 249,486,634 - Lease purchase and revenue bonds, net of current portion and discount/premium
363,868 12,480,590 334,532,397 55,376,337 Total Noncurrent Liabilities 783,988 15,221,900 368,535,747 68,761,413 Total Liabilities
68 STATEMENT OF NET POSITION (Continued)
PROPRIETARY FUNDS
The accompanying notes are an integral part of the financial statements.
-40-
ENVIRONMENTAL
WATER WASTEWATER RESOURCES
DEFERRED INFLOW OF RESOURCES
Deferred inflow on pension plans 229,069$ 256,275$ 488,478$ Deferred inflow on other post-employment benefit plan 669,016 1,120,479 1,131,929 Total Deferred Inflow of Resources 898,085 1,376,754 1,620,407
NET POSITION
Net investment in capital assets 76,112,050 134,373,934 22,100,423 Restricted for housing assistance payments - - - Restricted for infrastructure development 23,647,928 12,897,682 1,025,008 Restricted for debt service 23,964,726 9,473 - Unrestricted 11,905,384 52,569,866 (2,110,577) TOTAL NET POSITION 135,630,088$ 199,850,955 $ 21,014,854 $
NET POSITION OF BUSINESS-TYPE ACTIVITIES
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
69 -41-
OXNARD TOTAL INTERNAL
GOLF HOUSING CURRENT SERVICE
COURSE AUTHORITY YEAR FUNDS
DEFERRED INFLOW OF RESOURCES
940$ 133,963$ 1,108,725$ 245,939$ Deferred inflow on pension plans - 798,281 3,719,705 1,290,595 Deferred inflow on other post-employment benefit plan 940 932,244 4,828,430 1,536,534 Total Deferred Inflow of Resources
NET POSITION
43,136,732 18,598,305 294,321,444 1,688,972 Net investment in capital assets - 92,029 92,029 - Restricted for housin g assistance payments - 1,618,599 39,189,217 - Restricted for infrastructure development - 676,685 24,650,884 - Restricted for debt service 5,611,178 9,915,823 77,891,674 (29,333,410) Unrestricted 48,747,910$ 30,901,441 $ 436,145,248 (27,644,438) $ TOTAL NET POSITION (169,054)
435,976,194$ NET POSITION OF BUSINESS-TYPE ACTIVITIES Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
70 CITY OF OXNARD, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of the financial statements.
-42-
ENVIRONMENTAL
WATER WASTEWATER RESOURCES
OPERATING REVENUES
Charges for services 51,307,016 $ 44,188,099 $ 45,273,154 $ Connection fees 80,492 1,152,549 - Rental income - - - Grant revenue for operations - - - Miscellaneous and reimbursements 1,481,311 258,386 377,671 Total Operating Revenues 52,868,819 45,599,034 45,650,825
OPERATING EXPENSES
Salaries and wages 10,111,971 11,089,631 23,843,716 Contractual services 6,399,025 4,649,894 12,648,434 Housing assistance payments - - - Operating supplies 23,975,090 3,294,600 2,622,207 Utilities 1,667,304 2,565,607 223,656 Depreciation and amortization 7,613,688 8,052,448 2,676,033 General and administrative 4,740,209 3,438,483 9,541,697 Repairs and maintenance 2,573,552 672,055 140,792 Claims expenses - - - Total Operating Expenses 57,080,839 33,762,718 51,696,535 OPERATING INCOME (LOSS) (4,212,020) 11,836,316 (6,045,710)
NONOPERATING REVENUES (EXPENSES)
Grant revenue - noncapital - - - Fraud recovery - - - Gain on disposition of capital assets - 29,383 25,220 Investment income (loss) 1,046,561 46,394 455,914 Interest expense (7,370,410) (3,510,412) (189,928) Net Nonoperating Revenues (Expenses) (6,323,849) (3,434,635) 291,206
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS (10,535,869) 8,401,681 (5,754,504)
CAPITAL CONTRIBUTIONS - - - TRANSFERS IN 15,069,711 11,164,829 1,966,156 TRANSFERS OUT (7,058,412) (9,372,037) (2,042,515) CHANGES IN NET POSITION (2,524,570) 10,194,473 (5,830,863) NET POSITION, JULY 1, AS PREVIOUSLY STATED 141,686,489 191,341,549 36,102,547 PRIOR-PERIOD ADJUSTMENT (3,531,831) (1,685,067) (9,256,830) NET POSITION, JULY 1, RESTATED 138,154,658 189,656,482 26,845,717 NET POSITION, JUNE 30 135,630,088$ 199,850,955 $ 21,014,854 $
CHANGES IN NET POSITION OF BUSINESS-TYPE ACTIVITIES
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
71 -43-
OXNARD TOTAL INTERNAL
GOLF HOUSING CURRENT SERVICE
COURSE AUTHORITY YEAR FUND
OPERATING REVENUES
6,202,866$ - $ 146,971,135$ 45,788,378 $ Charges for services - - 1,233,041 - Connection fees - 5,048,081 5,048,081 - Rental income - 28,219,591 28,219,591 - Grant revenue for operations 92,039 562,890 2,772,297 50,222 Miscellaneous and reimbursements 6,294,905 33,830,562 184,244,145 45,838,600 Total Operating Revenues
OPERATING EXPENSES
80,305 - 45,125,623 9,475,141 Salaries and wages 3,936,254 - 27,633,607 3,783,752 Contractual services - 24,923,551 24,923,551 - Housing assistance payments 368,988 - 30,260,885 2,671,233 Operating supplies 380,966 844,524 5,682,057 3,599,445 Utilities 590,258 819,136 19,751,563 758,001 Depreciation and amortization 323,062 5,702,354 23,745,805 8,003,332 General and administrative - 2,102,816 5,489,215 1,777,657 Repairs and maintenance - - - 14,619,202 Claims expenses 5,679,833 34,392,381 182,612,306 44,687,763 Total Operating Expenses 615,072 (561,819) 1,631,839 1,150,837 OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
- 415,000 415,000 - Grant revenue - noncapital - 16,693 16,693 - Fraud recovery - 1,603,335 1,657,938 2,098 Gain on disposition of capital assets - 528,081 2,076,950 - Investment income (loss) (18,907) (45,334) (11,134,991) - Interest expense (18,907) 2,517,775 (6,968,410) 2,098 Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CONTRIBUTIONS
596,165 1,955,956 (5,336,571) 1,152,935 AND TRANSFERS - 2,557,794 2,557,794 - CAPITAL CONTRIBUTIONS - - 28,200,696 260,067 TRANSFERS IN - - (18,472,964) (171,134) TRANSFERS OUT 596,165 4,513,750 6,948,955 1,241,868 CHANGES IN NET POSITION 48,151,745 26,387,691 (29,985,071) NET POSITION, JULY 1, AS PREVIOUSLY STATED - - 1,098,765 PRIOR-PERIOD ADJUSTMENT 48,151,745 26,387,691 (28,886,306) NET POSITION, JULY 1 48,747,910$ 30,901,441 $ (27,644,438) $ NET POSITION, JUNE 30 1,438,771
8,387,726$ CHANGES IN NET POSITION OF BUSINESS-TYPE ACTIVITIES Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
72 CITY OF OXNARD, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of the financial statements.
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ENVIRONMENTAL
WATER WASTEWATER RESOURCES
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 54,537,107 $ 46,473,686 $ 45,775,678 $ Payments to suppliers (40,307,559) (12,684,294) (28,842,124) Payments to employees (9,922,296) (11,015,161) (25,190,460) Payments for housing assistance and notes receivable - - - Receipts from operating grants - - - Cash paid to claimants - - - Net Cash Provided By (Used In) Operating Activities 4,307,252 22,774,231 (8,256,906)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Collection/(issuance) of advances 6,155,807 2,996,816 2,751,714 Principal paid on long-term debt - - - Interest and other fees paid - - - Cash received from noncapital grants - - - Transfers in 15,069,711 11,164,829 1,966,156 Transfers out (7,058,412) (9,372,037) (2,042,515) Net Cash Provided By (Used In) Noncapital Financing
Activities 14,167,106 4,789,608 2,675,355
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (4,940,622) (12,222,417) (2,258,073) Disposals of capital assets - - - Proceeds from long-term debt issued - - 10,255,000 Interest and issuance cost paid on long-term debt (7,733,022) (4,164,750) (195,217) Principal paid on long-term debt (5,338,207) (5,285,000) (12,163,232) Cash received from capital grants - - - Net Cash Provided By (Used In) Capital and Related
Financing Activities (18,011,851) (21,672,167) (4,361,522)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 1,046,561 46,394 455,914 Net Cash Provided By (Used In) Investing Activities 1,046,561 46,394 455,914
NET INCREASE (DECREASE) IN CASH AND
INVESTMENTS 1,509,068 5,938,066 (9,487,159) CASH AND INVESTMENTS, JULY 1 73,030,397 69,510,098 29,523,268 CASH AND INVESTMENTS, JUNE 30 74,539,465$ 75,448,164 $ 20,036,109 $ Cash and investments 60,933,194 $ 75,438,691 $ 20,036,109 $ Restricted investments with fiscal agent 13,606,271 9,473 - 74,539,465$ 75,448,164 $ 20,036,109 $
73 -45-
OXNARD TOTAL INTERNAL
GOLF HOUSING CURRENT SERVICE
COURSE AUTHORITY YEAR FUNDS
CASH FLOWS FROM OPERATING ACTIVITIES
6,295,905$ 6,616,961$ 159,699,337$ 45,850,645$ Receipts from customers and users (6,553,863) (3,261,118) (91,648,958) (18,963,790) Payments to suppliers (35,574) (5,361,819) (51,525,310) (19,032,969) Payments to employees - (24,946,344) (24,946,344) - Payments for housing assistance and notes receivable - 27,438,257 27,438,257 - Receipts from operating grants - - - 2,295,329 Cash paid to claimants (293,532) 485,937 19,016,982 10,149,215 Net Cash Provided By (Used In) Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
(140,436) - 11,763,901 122,644 Collection/(issuance) of advances - (410,000) (410,000) - Principal paid on long-term debt - (41,376) (41,376) - Interest and other fees paid - 415,000 415,000 - Cash received from noncapital grants - - 28,200,696 260,067 Transfers in - - (18,472,964) (171,134) Transfers out Net Cash Provided By (Used In) Noncapital Financing
(140,436) (36,376) 21,455,257 211,577 Activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
(61,214) (2,282,492) (21,764,818) (1,094,859) Purchases of capital assets - 3,335 3,335 - Disposals of capital assets - - 10,255,000 - Proceeds from long-term debt issued (18,907) - (12,111,896) - Interest and issuance cost paid on long-term debt - - (22,786,439) - Principal paid on long-term debt - 2,557,794 2,557,794 - Cash received from capital grants Net Cash Provided By (Used In) Capital and Related
(80,121) 278,637 (43,847,024) (1,094,859) Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
- 528,081 2,076,950 - Investment income - 528,081 2,076,950 - Net Cash Provided By (Used In) Investing Activities
NET INCREASE (DECREASE) IN CASH AND
(514,089) 1,256,279 (1,297,835) 9,265,933 INVESTMENTS 6,639,553
18,766,758 197,470,074 24,119,314 CASH AND INVESTMENTS, JULY 1 6,125,464$ 20,023,037 $ 196,172,239 $ 33,385,247 $ CASH AND INVESTMENTS, JUNE 30 6,125,464$ 17,884,319 $ 180,417,777 $ 33,385,247 $ Cash and investments - 2,138,718 15,754,462 - Restricted investments with fiscal agent 6,125,464$ 20,023,037 $ 196,172,239 $ 33,385,247 $ 74 STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUNDS
The accompanying notes are an integral part of the financial statements.
-46-
ENVIRONMENTAL
WATER WASTEWATER RESOURCES
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
OPERATING INCOME (LOSS) (4,212,020)$ 11,836,316 $ (6,045,710) $ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided By (Used In) Operating Activities
Depreciation and amortization 7,613,688 8,052,448 2,676,033 Other revenue - - - Changes in Operating Assets and Liabilities
(Increase) decrease in accounts receivable and
due from other funds and governments 1,716,642 856,999 (9,201,052) (Increase) decrease in other assets 9,943 20,000 - Increase (decrease) in accounts payable and
other liabilities (1, 286,010) 1,628,022 (4,264,945) Increase (decrease) in compensated absences 41,874 25,448 214,747 Increase (decrease) in OPEB payable (253,137) (323,743) (1,808,149) Increase (decrease) in net pension liabilities 676,272 678,741 10,172,170 Increase (decrease) in self-insurance liabilities -
- -
Net Cash Provided By (Used In) Operating Activities 4,307,252$ 22,774,231 $ (8,256,906) $ 75 -47-
OXNARD TOTAL INTERNAL
GOLF HOUSING CURRENT SERVICE
COURSE AUTHORITY YEAR FUNDS
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
615,072$ (561,819)$ 1,631,839$ 1,150,837$ OPERATING INCOME (LOSS) Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided By (Used In) Operating Activities
590,258 819,136 19,751,563 758,001 Depreciation and amortization - 16,693 16,693 - Other revenue
Changes in Operating Assets and Liabilities
(Increase) decrease in accounts receivable and
1,000 (913,326) (7,539,737) 12,045 due from other funds (243,828) 293,004 79,119 - (Increase) decrease in other assets Increase (decrease) in accounts payable and
(1,301,747) 643,632 (4,581,048) 588,245 other liabilities 3,478 101,360 386,907 37,451 Increase (decrease) in compensated absences - 163,363 (2,221,666) (996,644) Increase (decrease) in OPEB payable 42,235 (76,106) 11,493,312 142,014 Increase (decrease) in net pension liabilities - - - 8,457,266 Increase (decrease) in self-insurance liabilities (293,532)$ 485,937 $ 19,016,982$ 10,149,215 $ Net Cash Provided By (Used In) Operating Activities 76 CITY OF OXNARD, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
The accompanying notes are an integral part of the financial statements.
-48-
OXNARD COMMUNITY
DEVELOPMENT
COMMISSION RETIREMENT
SUCCESSOR AGENCY ENHANCEMENT
PRIVATE PURPOSE DEFINED BENEFIT CUSTODIAL
TRUST FUND PENSION TRUST FUND FUNDS
ASSETS
Cash and investments 7,849,593 $ - $ 8,965,173$ Investment with fiscal agents
Certificates of deposit - - 798,158 Money market funds 3,584,739 - - Mutual funds - 104,924,112 - Total investment with fiscal agents 3,584,739 104,924,112 798,158 Accounts and other receivables - 159,288 5,290 Due from other governments - - 153,240 Notes receivable, net of uncollectible 515,429 - - Capital Assets
Buildings and improvements (net of
depreciation) 11,686,622 - - Infrastructure (net of depreciation) 16,943,353 - - Total Assets 40,579,736 105,083,400 9,921,861
LIABILITIES
Accounts payable 2,057,550$ -$ 467,020$ Other liabilities 411,562 - - Due to City of Oxnard 115,508 - - Long-term debt - due within one year 2,000,000 - - Long-term debt - due in more than one year 23,370,000 - - TOTAL LIABILITIES 27,954,620 - 467,020
NET POSITION
Restricted for:
Held in trust for Successor Agency 12,625,116 - - Individuals, organizations, and other governments - - 9,454,841 Pensions - 105,083,400 - TOTAL NET POSITION 12,625,116$ 105,083,400$ 9,454,841 $ 77 CITY OF OXNARD, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
The accompanying notes are an integral part of the financial statements.
-49-
OXNARD COMMUNITY
DEVELOPMENT RETIREMENT
COMMISSION ENHANCEMENT
SUCCESSOR AGENCY DEFINED BENEFIT
PRIVATE PURPOSE PENSION CUSTODIAL
TRUST FUND TRUST FUND FUNDS
ADDITIONS
Taxes 7,358,951$ -$ 711,602$ Special assessments - - 3,861,180 Contributions
Employer - 2,874,014 - Employee - 1,510,731 - Investment income 235,543 7,970,481 32,556 Investment expense - (519,257) - Net investment income 235,543 7,451,224 32,556 Loss on disposal of capital assets (708,449) - - Miscellaneous income 212,526 -
Transfer from City of Oxnard - - 2,446,040 Total Additions 7,098,571 11,835,969 7,051,378
DEDUCTIONS
Administrative costs
Salaries and wages 26,883 - - Benefit distributions - 3,420,286 - Administrative costs 100,351 - 76,910 Professional services 102,686 - - Depreciation 1,313,653 - - Project improvements 4,096,313 - 64,213 Distributions to individuals, organizations, and bond trustees - - 6,626,648 Debt service
Interest and fiscal charges 1,266,463 - - Total Deductions 6,906,349 3,420,286 6,767,771 CHANGE IN NET POSITION 192,222 8,415,683 283,607 NET POSITION - JULY 1, 2022 12,432,894 96,667,717 9,171,234 NET POSITION - JUNE 30, 2023 12,625,116$ 105,083,400 $ 9,454,841 $ 78 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
-50-
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Oxnard, California (City) was incorporated as a general law city on June 30, 1903 and operates under the c ouncil-manager form of government. The City is governed by an elected Mayor and six Council members. Other elected positions include the City Clerk and City Treasurer. The accompanying basic financial statements present the financial position and results of operations of the City (the primary government) and its component units. For fi nancial reporting pur poses, the City has included all funds, organizations, agencies, boards, commissions, and authorities, and has considered all potentia l component units for which the City is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete . The Governmental Accounting Standards Board has set forth criteria to be consi dered in determining financial accountability.
These criteria include appointing a voting majority of an organization's governing body and (1) the ability of the City to impose its wil l on that organization; or (2) the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the City.
Blended Component Units
City of Oxnard Financing Author ity. The Oxnard Financing Au thority (Authority) is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital fa cilities within the City. The Authority has the power to purchase bonds issued by any local agency at public or negotiated sales and may sell such bonds to public or private purchasers at public or negotiated sales. The Authority is controlled by the City and has the same governing body as the City and the City has operational responsibility for the Authority. City staff perform all accounting and administrative functions of the Authority. The debt service of the Authority is included in the Debt Service Fund, Water Enterprise Fund, Wastewater Enterprise Fund, and Environmental Resources Enterprise Fund.
79 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-51-
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Reporting Entity (Continued)
Blended Component Units (Continued)
Housing Authority of the City of Oxnard. The Housing Author ity of the City of Oxnard (Housing Authority) was established in April 1945 by ordinance of the City Council. The Housing Authority is a public entity organized under the laws of California's Health and Safety Code for the purpose of providing safe, decent, and sanitary housing for qualified economically disadvantaged and elderly individuals in areas where a shortage of such housing exists. To accomplish this purpose, the Housing Authority entered into Annual Contributions Contracts with the U.S. Department of Housing and Urban Development (HUD) to operate assisted housing programs, such as Local Housing Authority Owned Housing, Section 8, and Modernizati on. The City Council and two tenant representatives serve as t he governing board of the Hous ing Authority. The Housing Authority's governing body is substantively the same as the governing body of the City and the City has operational responsibility for the Housing Authority. The Housing Authority's operations have been included in the Cit y's business-type activities in the accompanying Government-Wide Financia l Statements. The Housing Authority prepares separate financial statements, which can be obt ained from the Housing Authority's Financial Services Division at 435 S. D St., Oxnard, CA 93030.
B. Financial Statements Presentation
In accordance with Governmental Accounting Standards Board Statement No. 34, the City's basic financial statements consist of the following:
• Government-Wide Financial Statements;
• Fund Financial Statements; and
• Notes to the Basic Financial Statements.
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present financial information for the City as a whole, while distinguishi ng between governmental and business-type activities. Fiduciary activities of the City are not included in these statements.
Most of the City's basic services are considered to be governmental activities, including general government, public safety, transporta tion, community development, culture, leisure, and library services. Property tax, sales tax, transient occupancy tax, franchise tax, business license tax, and user fees and charges financially support these activities. 80 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-52-
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Financial Statements Presentation (Continued)
Government-Wide Financial Statements (Continued)
The City's enterprise operations are classi fied as business-type activities. These operations consist of water, wastewater, environmental resources, golf course, and housing. These activities generally recover the cost of providing services from customer fees and charges.
Government-Wide Financial Statements are presented on an "economic resources" measurement focus and the accrual basis of a ccounting. Accordingly, all of the City's assets, deferred outflows of resources, liabi lities, and deferred inflows of resources, including capital assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.
Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. The types of transactions reporte d as program revenu es for the City are reported in three categories: (1) charges for services; (2) operating grants and other contributions; and (3) capital grants and contributions.
The Statement of Activities demonstrates the degree to which expenses, both direct and indirect, of a given function or segm ent is offset by program revenues. Direct expenses are those that are cl early identifiable with a specific function or segment.
Indirect expenses are allocated based on the City's cost allocation plan. 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 or segment; and (2) operating and capital grants and contributi ons that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated, with the except ion of those representi ng balances between the governmental activities and the business-type activities. In the Statement of Activities, net internal service fund transactions hav e been allocated back to the governmental and business-type activities generating the net income or loss. In the Statement of Net Position, internal service assets and liabilities have been combined with the governmental funds and presented as governmental activities. 81 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-53-
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Financial Statements Presentation (Continued)
Government-Wide Financial Statements (Continued)
A reconciliation of the difference between the Governmental Fund Financial Statements and the Government-Wide Fi nancial Statements is provided as part of the Governmental Fund Financial Statements.
Fund Financial Statements
The accounts of the City ar e organized on the basis of f unds, each of which is considered a separate account ing entity. The operations of each fund are accounted for with a separate set of self-balancing a ccounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflow of resources, fund equity, 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.
Governmental Fund Financial Statements
Governmental Fund Financial Statements in clude a Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances for the major governmental funds. Non-Major Governmental Funds are combined for presentation in Governmental Fund Statements. The following funds have been determined to be the City's major governmental funds:
• General Fund: This fund group is always a major fund and is used to account for all financial resources traditionally asso ciated with government activities, which are not legally required to be accounted for in another fund. • The Affordable Housing Fund was created due to the dissolution of the Oxnard Redevelopment Agency. In accordance with Health and Safety Code Section 34176(b)(2), on February 1, 2013, all rights, powers, assets, liabilities, duties, and obligations of the Low and Moderate Income Housing Fund (previously part of the former Oxnard Redevelopment Agency) were transferred to the Affordable Housing special revenue fund. The fund is used to account for funds to be used for low and moderate income housing projects.
• Development Fees Fund is a special revenue fund that accounts for development fees that the City collects on new development to provide resources for special projects such as parks, storm drainage fa cilities, traffic im provements, utility undergrounding, and community development.
82 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-54-
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Financial Statements Presentation (Continued)
Governmental Fund Financial Statements (Continued)
• State and Federal Grants Fund is a special revenue fund that accounts for state and federal grants.
• Capital Improvements Fund is a capital pr oject fund that accounts for financial resources designated for the acquisition and construction of general government capital projects.
Governmental funds are accounted for using a "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resource s, current liabilities, and deferred inflows of resources are included on the Balanc e Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accr ual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the curr ent period. The City considers revenues available if they are collected within 60 days after year-end. Proper ty tax, sales tax, intergovernmental revenues, and other taxe s are accrued as appropriate. Grants and similar items are recognized as revenue as soon as all eligibilit y requirements have been met. The availability period for reven ue recognition for grants receivable is one year after the year-end. Expenditures are recorded in the accounting period in which the related fund liability is incurred and du e within one year, except for unmatured principal and interest on long-term debt, which is recognized when due.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major fund. A column representing In ternal Service Funds in total is also presented in these statements.
The proprietary funds are used to account for operations that are financed and operated in a manner similar to private business en terprises wherein the cost of goods and services to the general public are financed or recovered primarily through user charges.
The following enterprise funds have been determined to be the City's major proprietary funds:
• Water Fund: This fund is used to account for all activities of the City's water production, treatment, and distribution system. Revenues are derived mainly from metered water services, connection fees, and installation charges.
83 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Financial Statements Presentation (Continued)
Proprietary Fund Financial Statements (Continued)
• Wastewater Fund: This fund is used to acc ount for all sewer activities related to conveyance and treatment services. Rev enues are derived mainly from sewer service charges, connection fees, and treatment plant charges. • Environmental Resources Fund: This fund is used to account for the activities related to collection and disposal of re fuse throughout the City. Revenues are mainly derived from collection service fees and sales of recyclable materials. • Golf Course Fund: This fund is used to ac count for the activities related to the operation and maintenance of the City’s River Ridge golf course. Revenues are derived from golfing fees, merchandise, and facility rentals and food & beverage sales for private events.
• Oxnard Housing Authority: This fund is used to account for the receipts and disbursements of funds received from the U.S. Department of Housing and Urban Development (HUD) to provide housing assistance, such as the rental assistance programs for low income residents and seni or citizens under Section 8 of the Federal Housing Act of 1937, as amended.
Proprietary funds are accounted for usi ng the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) are included within the Stat ement of Net Position. T he Statement of Revenues, Expenses, and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they ar e earned, while expenses are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. Operating revenues and expenses generally result from providing services and producing a nd delivering goods in connection with proprietary funds’ principal ongoing operations. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All ot her expenses are reported as nonoperating expenses. When both restricted and unrestricted re sources are available for use, it is the City's policy to use the restricted resources first, then unrestricted resources as they are needed.
84 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Financial Statements Presentation (Continued)
Proprietary Fund Financial Statements (Continued)
Internal service funds account for services to other departments on a cost-recovery basis. Internal service funds include workers' compensation, public liability and property damage, utility customer services, informat ion systems, facilities maintenance, and equipment maintenance. Internal service funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Internal service funds are reported in total on the proprietary funds statements.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. The City's fiduciary funds consist of a Private Purpose Trust Fund, a Pension Tr ust Fund, and Custodial Funds. The Trust Funds are as follows:
• Oxnard Community Development Co mmission Successor Agency Private Purpose Trust Fund: This fund accounts for the assets and activities of the former redevelopment agency pursuant to AB 1X 26.
• Retirement Enhancement Defined Benefit Pension Trust Fund: This fund accounts for the assets and activities of the Mass Mutual Retirement Enhancement Plan.
• The Custodial Funds are used to report fiduciary activities that are not required to be reported in pension trust funds, investment trust funds, or private-purpose trust funds. The City's custodial funds are as follows:
o Improvement Districts Fund: This fund is used to account for various limited obligation improvement bonds issued by the Improvement Districts and Mello-Roos Community Facilities Dis tricts within the City, wherein bond proceeds are used to finance land acquisition and public improvements of the various assessment districts within the City. Neither the faith, credit, nor the taxing power of the City or any of its political subdivisions is pledged to the paym ent of the bonds. Property owners within the assessment district are assessed through the County property tax bills and the money collected is used to pay the annual debt service requirements.
85 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Financial Statements Presentation (Continued)
Fiduciary Fund Financial Statements (Continued)
o Oxnard PD Property Room Fund: This fund accounts for assets held in temporary police custody.
o Oxnard Downtown Management District Fund: This fund accounts for property tax collected within th e downtown area for downtown improvements and revitalizations. Funds are collected and distributed to the Oxnard Downtown Management District, a non-profit corporation. o Riverpark JPA Fund: This fund is used to account for assets and liabilities of the Riverpark Reclamation and Recharge Authority.
The fiduciary funds are accounted for usi ng the "economic resources" measurement focus and the accrual basis of accounting.
C. New Accounting Pronouncements
Adopted
Statement No. 91, Conduit Debt Obligations . GASB Statement No. 91 clarifies the definition of conduit debt and establishes new rec ognition, meas urement, and disclosure requirements. The implementation of this statement had no material impact to the City’s financial statements.
Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements . GASB Statement No. 94 estab lishes standards for public- private and public-public part nerships (PPPs) and availability payment arrangements.
A PPP is an arrangement in which a government contracts with an operator to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. An availability payment arrangement is an arrangement in which a government compensates an operator for services 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 City determined that they have no PPPs or availability payment arrangements at this time.
Statement No. 96, Subscription-Based Information Technology Arrangements . GASB Statement No. 96 defines such arrangements as contracts t hat convey control of the right to use another party’s information tec hnology software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction. With the implementation of this statement, the City recognized intangible right-to-use subscription assets and corresponding subscription liabilities.
86 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. New Accounting Pronouncements (Continued)
Not Adopted
The GASB issued several pronouncements prior to June 30, 2023, that have effective dates that may impact future financial presentations. The impact of the implementation of these Statements to the City's financial statements has not been assessed at this time.
Statement No. 99, Omnibus 2022. GASB Statement No. 99 re quirements related to extension of the use of LI BOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pled ges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as am ended, and terminology updates related to Statement 53 and Statement 63 are e ffective upon issuance. Also, the requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporti ng periods thereafter. The requirements also related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
Statement No. 100, Accounting Changes and Error Corrections. GASB Statement No. 100 prescribes accounting and financial reporting for (1) eac h category of accounting change and (2) error corrections. Statement 101 also addresses how accounting changes and error corrections should be displayed in financial statements, disclosed in notes, and presented in required supplementary information. The requirements of this Statement are effective for periods beginning after June 15, 2023.
Statement No. 101, Compensated Absences . GASB Statement No. 101 aligns recognition and measurement guidance for a ll types of compensated absences under a unified model which will result in governm ents recognizing a liability that more appropriately reflects when they incur an obligation for compensated absences. The model also will lead to greater consistency in application and impr oved comparability across governments. The require ments of this Statement are effective for periods beginning after December 15, 2023.
87 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT A CCOUNTING POLICIES (Continued) D. Cash and Investments
Cash and Cash Equivalents
For reporting purposes, cash and cash equivalents include cash in bank accounts and investments held by the City Treasurer in a cash management pool with maturities less than one year. These amounts are readily available for use by the respective funds.
Investments
The City's investments are stated at fair value.
The City categorizes its fair value measur ements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
Level 1: Investments reflect prices quoted in active markets; Level 2: Investments reflect prices that are based on similar observable assets either directly or indirectly, which may include inputs in markets that are not considered to be active; and
Level 3: Investments reflect prices based upon unobservable sources.
Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: (1) debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; (2) equity se curities are valued using fair value per share for each fund. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level 3 have limited trade information, these securities are priced using the last trade price or estimated using recent trade prices.
Investment Income
Investment income earned on pooled cash and investments is allocated quarterly to the General Fund and those other funds for which such allocation is a legal contractual requirement based on the average daily-end cash balances. Investment income from cash and investments with fiscal agents is credited directly to the related fund. Income from non-pooled investments is recorded in the appropriate fund based on the specific investments held by the trust ee of the fund. Changes in t he fair value of investments are recognized in investment income at the end of each fiscal year. 88 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Receivables
Activity between funds that are representative of le nding/borrowing arrangements outstanding at the end of the fiscal year is reported as "advances to/from other funds." All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business- type activities are reported in the governm ent-wide financial statements as "internal balances."
Amounts due from individuals, organizations or other governmental units are recorded as receivables at year-end. These amounts include charges for services rendered, or for goods and material provided by the Cit y, including amounts for unbilled services.
Receivables are shown net of an allowance for uncollectible accounts where applicable.
Notes receivable include both the current and long-term portions of loans issued by the City. Business development loans are repor ted in both special revenue and fiduciary funds. Notes receivable are reported as an asset in the amount of loan proceeds disbursed, net of allowance. Depending on the original funding source, the City reports deferred inflows equal to the loan amount and recognizes a revenue when principal payments are received.
In the government-wide financia l statements, receivables are recognized as revenue when earned. Receivables of the proprietary funds are recognized as revenue when earned, including services provided but not billed.
F. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. As a lessor, the City recognizes a lease receivable and a deferred inflow of resources at the commencement of the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases, short-term leases, and leases that transfer ownership of the underlying asset.
The lease receivable is measured at the present value of lease payments expected to be received during the lease term. The deferred inflow of resources is measured at the value of the lease receivable plus any payments received at or before the commencement of the lease term that relate to future periods.
As a lessee, the City recognizes a le ase liability and a lease asset at the commencement of the lease term, unless the lease is a short-term lease or it transfers ownership of the underlying asset. The lease liability is measured at the present value of payments expected to be m ade during the lease term (le ss any lease incentives).
The lease asset is measured at the amount of t he initial measurement of the lease liability, plus any payments made to the lesso r at or before the commencement of the lease term and certain direct costs.
89 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Capital Assets
The City's assets for governmental, business-type and fiduciary activities are capitalized at historical cost or estima ted historical cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. City policy has set the capitalization threshold at $5,000 for equipment and machinery, $20,000 for bu ildings and improvements and $100,000 for infrastructure. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows:
Buildings 45 years
Improvements
Paving, curbs, and lighting 20 years
Parks improvements 20 years
Sports courts 20 years
Landscaping 20-50 years
Equipment and machinery 3-50 years
Vehicles 10 years
Infrastructure Assets
Roadway network 30-100 years
Waterways/seawalls 75 years
Storm drain system 50 years
Water and sewer systems 50 years
Infrastructure assets are defined as "long-liv ed capital assets" that are stationary in nature and normally can be preserved for a signi ficantly greater number of years than most capital assets.
Examples of infrastructure assets incl ude roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems. Land is valued at original cost without depreciation.
Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value.
90 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Subscription-based Information Technology Arrangements (SBITA) A SBITA is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combi nation with tangible capital assets (the underlying IT assets), as specif ied in the contract for a per iod of time in an exchange or exchange-like transaction. To determine whether a contract conveys control of the right to use the underlying IT assets, the City assesses whether it has both of the following: a. The right to obtain the present service capacity from use of the underlying IT assets as specified in the contract , and b. The right to determine the nature and manner of use of the underlying IT assets as specified in the contract.
The City recognizes a subscription liabilit y and an intangible right-to-use asset (subscription asset), except short-term SBITA s. The subscription liability is measured at the present value of subscription payments expected to be made during the subscription term. The subscription asset is measured as the sum of the following, a.
The amount of the in itial measurement of the sub scription liability, b. Payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, if applicable, and c. Capitalizable initial implementation costs less any SBITA vendor incentives.
I. Compensated Absences
Vacation leave and annual leave compensation pay is recorded as a liability when incurred within the Government-Wide and Pr oprietary Funds Financial Statements.
Sick leave, which does not vest, is recorded in all funds when leave is taken. A liability for these amounts is reported in the Governmental Funds Financial Statements only if they have matured and are paid by the City subsequent to year-end.
Compensated absences are liquidated by the f und that has recorded the liability. The long-term portion of governmental activiti es compensated absences is liquidated primarily by the General Fund.
J. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by CalPERS and Schwab. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
The General Fund is typically used to liqui date pension liabilities in the governmental activities.
91 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Other Post-Employment Benefits (OPEB)
For purposes of measuring t he 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 CalPERS plan governed by the Public Employees' Medical & Hospital Care Act (PEMHCA) and additions to/deductions from the PEMHCA plan fiduciary net position have been dete rmined on the same basis as they are reported by CalPERS.
For this purpose, CalPERS recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.
The General Fund is typically used to liqui date OPEB liabilities in the governmental activities.
L. Deferred Outflows/Inflows of Resources
In addition to assets, the Statements of Net Position and Governmental Fund Balance Sheet report a separate secti on for deferred outflows of re sources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred outflows of resources related to pensions and OPEB, and deferred outflows for charges on debt refunding in the Government-Wide and Proprietary Fund Statements of Net Position. Deferred outflows for pension and OPEB contributions will be recognized in the subsequent fiscal year. Other deferred outflows on pension and OPEB plans are amortized over 4.8 to 5 years on a straight-line basis.
A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the remaining life of the refunded or refunding debt.
In addition to liabilities, the Statements of Net Position and Governmental Fund Balance Sheet report a separate section for deferred inflows of res ources. Deferred inflows of resources represent an acquisition of net asse ts that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has two items that qualify for repor ting in this category in the Governmental Fund Balance Sheet. The governmental funds report deferr ed inflows from the following sources:
lease receivables and loans. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the City has deferred inflows of resources relating to the net pension obligation, OPEB, and gain on refunding reported in the Go vernment-Wide Statement of Net Position and the Proprietary Funds. The amounts relat ed to pensions and OPEB are deferred and amortized over 4.8 to 5 years on a straight-line basis. 92 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Fund Equity
The accompanying financial statements re port the components of fund balances for governmental funds consistent with GASB 54.
Nonspendable fund balance - This includes amounts that cannot be spent because they are either not spendabl e in form (such as prepaid items) or legally or contractually required to be maintained intact (such as endowments).
Restricted fund balance - This includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed fund balance - This includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision-making authorit y, the City Council. Commitments may be changed or removed by the City Council by a resolution.
Assigned fund balance - This includes amounts that are constrained by the government's intent to be used for specific purposes, but are neither restricted nor committed. The City Council delegated, per Resolution No. 15,359, the Chief Financial Officer to assign fund balance. Use of this component would be based on related Council documents that identifies an intent to use funds for a specific purpose that was not part of the formal resolution or ordinance of the Council.
Unassigned fund balance - this includes all amounts not included in other classifications. The General Fund is the only fund that reports a positive unassigned fund balance.
93 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Fund Equity (Continued)
In the Government-Wide Financial Statement s, net position of the City includes the following categories:
Net investment in capital assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce this category.
Restricted net position - This category presents external restrictions imposed by creditors, grantors, contributor s, or laws or regulations of other governments, and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted net position - This resulting category pres ents the remaining City net position, and this measure of equity is unrestricted, legally or otherwise.
The accounting policies of the City consi der restricted funds spent first when expenditure is incurred for purposes for whic h both restricted and unrestricted funds are available. When an expenditure is incurred for a purpose for which amounts in any of the unrestricted classifications of f und balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.
Per Resolution No. 15,718, adopted on June 20, 2023, the City Council will endeavor to maintain an operating reserve equal to 13% of General Fund operating budget, increasing to 16.6% in annual 1% increm ents beginning in fiscal year 2023-2024. In fiscal year 2027-28, the unrestr icted fund balance should be at a minimum of 16.6%, which is equal to approximately two mont hs of operating expe nses. The operating reserve shall be available to: (1) cover cash flow requirements; (2) meet unanticipated revenue shortfalls; (3) take advantage of unexpected opportunities; (4) invest in projects with a rapid payback; (5) ensure against physica l or natural disasters; (6) and provide interest earnings.
94 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Property Taxes
Property taxes are assessed and collected eac h fiscal year according to the following property tax calendar:
Valuation Date January 1
Property Tax Year July 1 to June 30
Due Dates November 1 (first installment) and
February 1 (second installment)
Delinquent Dates December 10 (first installment), April 10 (second installment, and August 31 (unsecured)
Property taxes in the State of California are administered fo r all local agencies at the county level and consist of secured, unsecured, and utility tax rolls.
Property Valuation
Valuations are establishe d by the Assessor of the County for the secured and unsecured property tax rolls; the utility property tax roll is valued by the California State Board of Equalization. Under t he provisions of Article XIIIA of the State Constitution, properties are assessed at 100% of full value. The value of real taxable property is based on fiscal year 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.
Tax Levies
The county-wide tax levy for general revenue purposes is limited to 1% of full value, for a tax rate of $1.00 per $100 of assessed valuation. Tax rates for voter-approved indebtedness prior to passage of Proposition 13 are excluded from this limitation. Taxes are levied July 1 for both real and unsecured personal property based upon the assessed valuation as of the previous January 1 (lien date).
Property taxes are recognized as revenue in the period for which the taxes are levied.
Therefore, the City recognizes revenue and a receivable, less any allowance for doubtful accounts deemed appropriate, for the entire tax levy in the period for which the taxes are levied.
95 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Property Taxes (Continued)
Tax Lien Dates
All lien dates attach annually on January 1 preceding the fiscal year for which the taxes are levied. Liens against real estate, and taxes on personal property, are not relieved by subsequent renewal or change in ownership.
Tax Collections
The County Treasurer-Tax Collector is responsible for all property tax collections.
Taxes and assessments on the secured and utility rolls, which constitute a lien against the property, may be paid in two installment s: (1) the first installment is due on November 1 of the fiscal year and is delin quent if not paid by December 10; (2) the second installment is due on February 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured pers onal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be paid in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed for late payments.
Tax Apportionments and Special District Augmentation Fund (SDAF) Due to the nature of the county-wide maximum levy, it is not possible to identify general purpose tax rates for specific entities. A pportionments to local age ncies are made by the County Auditor-Controller, based prim arily on the ratio that each agency represented of the total county-wide levy for t he three years prior to fiscal year 1979.
The SDAF was established in order to provide greater flexibility in the allocation of the total levy to special districts under this basic apportionment method. Each special district makes a contribution from its base tax levy apportionment to the SDAF.
Oversight governments of the special districts (cities or the county) can then reallocate this pool among special districts based on financing needs.
O. Utility Revenue
Utility revenue is recorded when earned. Customers are billed monthly. The estimated value of services provided, but unbilled at year-end, is in cluded in accounts and other receivables in the accompanying basic financial statements.
P. Use of Estimates
The preparation of the City's basic financ ial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of res ources, liabilities, deferred inflows of resources, the disclosure of contingent assets and liabilities at the date of the basic financial statements, and rev enues and expenses during the reported period. Actual results could differ from those estimates.
96 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. Budgets and Budgetary Accounting
The City develops and presents a one-year budget to the City Council. Annual operating and capital improvement expenditures are adopt ed by resolution. This resolution constitutes the authorized expenditures for the fiscal year. The City's annual budget is the legally-adopted expenditure control document of the City. Budgets are prepared on the modified accrual basis of accounting, consistent with generally accepted accounting principles (GAAP).
The City Council generally reauthorizes appr opriations for continuing projects and activities. The City Council has the legal aut hority to amend the bu dget of any fund at any time during the fiscal year. The budgetary legal level of control (the level on which expenditures may not legally exceed appropria tions) is generally at the fund level.
Budgeted expenditures may be reallocated within a fund by the City Manager and within a department by the department director.
R. Encumbrances
Appropriations in governmental fund types are encumbered upon issuance of purchase orders for goods and/or services. Even though unencumbered appropriations lapse at the end of the fiscal year, unfilled purchase or ders of the current year are carried forward and the next year's appropriations are likewise encumbered.
S. Joint Ventures
The City participates in the Riverpark Reclamation and Recharge Authority (Riverpark JPA), which is a jointly-governed or ganization between the City and United Water Conservation District (UWCD). The Riverpark JPA was established for the purpose of joint ownership, financing, and administration of the development of land located within the City; and for the purpose of creating a public entity to secure grant funding and other public and private funding to reclaim mini ng pits for water recharge purposes to implement the Recharge Pr ogram and Reclamation Plan, and to undertake other groundwater recharge, groundwater quality, and water supply programs as the Board of Directors may find to be within the public interest. The Riverpark JPA is controlled by a four-member board consisting of two representatives each from the City and UWCD.
None of the member entities exercise specific control over the budgeting and financing of the Authority's activities beyond thei r representation on the Board. Accounting services are provided by the City. The City has no financial responsibility for any of the JPA's liabilities. The City made no monetary contributions to assist in the operational expenses of the Authority during fiscal y ear ended June 30, 2023. Complete financial statements may be obtained from the Finance Department, City of Oxnard, 300 W. 3 rd
St, Oxnard, CA 93030.
As of June 30, 2023, the JPA had total asse ts of $975,495, total net position of $944,030, and total change in net position of $(52,415) for the year then ended. 97 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS
A. Cash and Investments
The City's cash and investments, including restricted investments with fiscal agents, consist of the following at June 30, 2023:
AMOUNT
Petty cash 17,085$
Deposits 15,834,414
Investments 437,133,381
Cash and investments 452,984,880
Restricted investments with fiscal agents 137,143,003
TOTAL 590,127,883$
The City's deposits and investments are reflected in the accompanying basic financial statements as follows:
GOVERNMENTAL BUSINESS-TYPE FIDICUARY
ACTIVITIES ACTIVITIES FUNDS TOTAL
Cash and investments 255,752,338$ 180,417,777$ 16,814,766$ 452,984,881$ Restricted investments with fiscal
agents
12,081,532 15,754,462 109,307,009 137,143,003 TOTALS 267,833,870$ 196,172,239 $ 126,121,775 $ 590,127,884 $
Deposits Custodial Credit Risks
Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's deposit policy requires deposits to be covered by federal depository insurance and collateral having a fa ir value of 110% of the uninsured deposit. As of June 30, 2023, the City has a bank balance of $19,644,888 in three bank accounts; of the bank balance, $500,000 was insured and the balance was secured by collateral held by the City's agent in the agent's name. Deposits held by the Housing Authority are also insured or secured by collateral held by the Housing Authority's agent in the agent's name.
98 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
A. Cash and Investments (Continued)
Investment Policy
The City's investment policy is intended to provide guidelines for the prudent investment of City funds, and to outline the policies for maximizing the efficiency of the City's cash management system. The policy of the City is to invest public funds in a manner which will provide high investment re turn with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public f unds. The primary goals of the Cit y are safety, liquidity, and yield in that priority order. The investment policy applies to the City's pooled investment fund which encompasses all monies under the direct oversight of the City Treasurer, including the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, Internal Service Funds, and Fiduciary Funds, excluding restricted investments with fiscal agents and Oxnard Housing Authority funds.
Authorized Investments
The City's investments are managed by the City Treasurer, fiscal agents (bond trustees acting in accordance with bond covenants), and authorized representatives of the Housing Authority. Inve stments managed by the City Treasurer and the Housing Authority are invested in accordance with t he City and Housing Authority's investment policies, respectively. Investments m anaged by bond trustees are invested in accordance with provisions of the respec tive bond agreements. Investments in the City's Retirement Enhancement Defined Benef it Plan (Enhanced Retirement Trust Pool) are not subject to the City's investment policy.
The City's cash and investments by investments manager are as follows:
AMOUNT
City Treasurer 435,100,561$
Restricted investments held with Fiscal Agents
Bond trustees for the City and its component units 30,080,173 Enhanced Retirement Trust Pool 104,924,112
Oxnard Housing Authority (includes investments held
by fiscal agents) 20,023,037
TOTAL 590,127,883$
99 CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
A. Cash and Investments (Continued)
Authorized Investments (Continued)
The City Treasurer has direct oversight over the City's pooled investment fund, which covers cash and investments of the City' s governmental funds, proprietary funds (except for the Housing Authority), and cu stodial funds, which are invested in accordance with the City's investment policy. Allowable investments are detailed in the following table. The exception is the Enha nced Retirement Trust Pool, which is not subject to Government Code Section 53601.
AUTHORIZED MAXIMUM
BY MAXIMUM MAXIMUM INVESTMENT
INVESTMENT TYPES INVESTMENT MATURITY PERCENTAGE IN ONE MINIMUM AUTHORIZED BY SECTION 53601 POLICY (YEARS) OF PORTFOLIO ISSUER RATINGS U.S. Treasury and agencies Yes 5 None None None
Local agency bonds, notes Yes N/A 15% None None
Other bonds, notes, or evidences
of indebtedness Yes N/A 15% None None
Bankers acceptances Yes 180 days 40% 30% None
Commercial paper Yes 270 days 15% 10% P1/A1
Negotiable CDs Yes 5 30% None Aa/AA-
Certificate of deposit (CDs) Yes N/A 30% None A
Repurchase agreements Yes 90 days 20% None None
Medium term notes Yes 5 30% None A
Mutual funds Yes N/A 20% None None
LAIF, VCIP, CalTrust Yes N/A None None None
The Housing Authority's investment policy, which is substantially the same as the City's, and related disclosures regarding its invest ments at June 30, 2023, are more fully disclosed in the financial statements for the Housing Authority, which may be obtained from the Housing Authority's Financial Services Division at 435 S D St, Oxnard, CA 93030.
The City Treasurer's investment pool is comprised of pooled deposits, investments, the State of California Local Agency Investment Fund (LAIF), and Ventura County Investment Pool (VCIP) investments. The City Treasurer's pooled investments are carried at fair value. The fair value is determined utilizing Emphasys Software's Synpro, the vendor providing invest ment reporting capability for the City Treasurer's Office, which provides pricing data from multiple industry sources. The fair value of LAIF and VCIP is determined by allocating the City's share of the investment pools’ fair value as reported by LAIF and VCIP.
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
A. Cash and Investments (Continued)
Authorized Investments (Continued)
The City is a voluntary participant in LAIF which is considered an external investment pool. LAIF is part of the State's Pooled Mo ney Investment Account (PMIA) which was established in 1953. Oversight of the PMIA is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller.
Direct oversight for LAIF is provided by the Local Investment Advisory Board. The board consists of five members as designated by statute. The Chair is the State Treasurer or his/her designated representative. Two mem bers qualified by training and experience in the field of investment or finance and tw o members who are treasurers, finance or fiscal officers, or business managers employed by any county, city, or local district or municipal corporation of this state, are appointed by t he State Treasurer. LAIF is required to invest in accordance with state statute.
The City is a voluntary participant in Ventura County Investment Pool (VCIP) which is considered an external investment pool. VCIP is for local public government agencies and school districts within Ventura Count y and is managed by the Ventura County Treasurer-Tax Collector. VCIP’s portfolio must comply with the County’s Investment Policy which is governed by the Ventura County Board of Supervisors. VCIP is rated by Standard and Poor’s; the most recent rating report is dated November 14, 2022 and is available via the Office of Ventura County Treasurer-Tax Collector’s website.
Investments with fiscal agents are investment s held by the bond trus tee on behalf of the City or its component units and the Enhanced Retirement Trust Pool. In the case of bond trustees, the City selects the investment under the terms of the applicable trust agreement, directs the bond trustee to acqui re the investment, and the bond trustee then holds the investment on behalf of the City and/or its component units. Proceeds of bonds administered by bond trustees are also generally covered under the City Treasurer's investment policy; however, specific provisions of each issuance are usually used in managing such investments. Two of the major differences are as follows:
Allowance of investments in guaranteed investment contracts Allowance of investment maturities in excess of five years
For purposes of the Statement of Cash Flow s of the proprietary fund types, cash and cash equivalents include all investments as the City operates an internal cash management pool which maintains the general characteristics of the demand deposit account.
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
A. Cash and Investments (Continued)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates, and the greater the interest rate risk. One of the ways t he City manages its exposure to interest rate risk is by purchasing a combination of s horter-term and longer-term investments and by timing cash flows from maturities so t hat 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 or debt service requirements.
Information about the sensitivit y of the fair value of the City's investments (including restricted investments held by bond trustees) to market interest rate fluctuation is provided by the following table that shows t he distribution of the City's investments by maturity:
INVESTMENT MATURITIES
(IN YEARS)
LESS MORE
THAN 1 1-5 THAN 5 TOTAL
Federal Agency Securities 51,541,180$ 229,259,123$ -$ 280,800,303$ Ventura County Investment Pool 31,264,035 - - 31,264,035 California Local Agency Investment Fund 89,814,506 - - 89,814,506 Negotiable CD 243,461 - - 243,461 Medium Term Notes 2,903,067 29,362,719 - 32,265,786 Supranational - 930,370 - 930,370 Corporate Bond - 1,814,920 - 1,814,920 Held by Trustee
Money Market Fund 32,218,891 - - 32,218,891 TOTAL INVESTMENTS 207,985,140$ 261,367,132 $ - $ 469,352,272 Enhanced Retirement Trust 104,924,112
Cash in banks and on hand 15,851,499
TOTAL CASH AND INVESTMENTS 590,127,883$
102
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
A. Cash and Investments (Continued)
Credit Risk
Credit risk is the risk that an issuer of an in vestment 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. T he City's investments that are not rated include negotiable CDs; however, these investments are covered by FDIC insurance.
Presented below are the S&P Gl obal ratings for each investment type as of June 30, 2023:
INVESTMENT TYPE AAA AA+ AA- BBB+ A A- TOTAL
Federal Agency Securities 950,651$ 262,827,901$ -$ -$ -$ -$ 263,778,552$ Ventura County Investment Pool 31,264,035 - - - - - 31,264,035 Medium Term Notes - 901,474 1,290,330 2,718,711 894,237 8,414,943 14,219,695 Corporate Bond - 1,814,920 - - - - 1,814,920 TOTALS 32,214,686$ 265,544,295$ 1,290,330 $ 2,718,711 $ 894,237 $ 8,414,943$ 311,077,202$
NOT RATED
Federal Agency Securities 17,021,751
California Local Agency Investment Fund 89,814,506
Medium Term Notes 18,046,091
Negotiable CD 243,461
Supranational 930,370
Money Market Fund 32,218,891
Enhanced Retirement Trust 104,924,112
Total Investments 574,276,384
Cash in banks and on hand 15,851,499
TOTAL 590,127,883$
Concentration of Credit Risk
Investments in the securities of any individual issuer, other than U.S. Treasury securities, mutual funds, and external invest ment funds that repres ent 5% or more of total entity-wide investments are as follows at June 30, 2023:
ISSUER TYPE OF INVESTMENTS AMOUNTS
Federal Home Loan Mortgage Corporation Mortgage backed securities 40,778,260$ Federal Home Loan Bank Mortgage backed securities 212,203,243
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
A. Cash and Investments (Continued)
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure of custodial credit risk for deposits or investments, other than the provisions for deposits in the California Government Code that require that financial institutions secure deposits made by st ate local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having value of 150% of the secured public deposits.
For investments identified herein as held by fiscal agent, the trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.
Fair Value Measurements
The City has the following recurring fair value measurements as of June 30, 2023:
INVESTMENTS AT FAIR VALUE
AS OF JUNE 30, 2023
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
Investment Type
Federal agency securities 280,800,303 $ - $ - $ 280,800,303$ Ventura County Investment Pool - 31,264,035 - 31,264,035 California Local Agency Investment Fund - 89,814,506 - 89,814,506 Negotiable CD 243,461 - - 243,461 Medium Term Notes 32,265,786 - - 32,265,786 Supranational 930,370 - - 930,370 Corporate Bond 1,814,920 - - 1,814,920 316,054,840 121,078,541 - 437,133,381 Held by Trustees/Fiscal Agent
Money Market Fund 32,218,891 - - 32,218,891 Enhanced Retirement Trust
Mutual funds 104,924,112 - - 104,924,112 TOTAL INVESTMENTS AT FAIR VALUE 453,197,843$ 121,078,541 $ - $ 574,276,384$
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
B. Receivables and Payables
Accounts receivable and other receivables as of June 30, 2023 included in the accompanying Statement of Net Position primarily consist of the following:
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES
ACCOUNTS RECEIVABLE
Utilities receivable -$ 18,785,732$
Accounts receivable billed and accrued 6,592,816 1,853,618 Other receivables 1,044,581 907,644
7,637,397 21,546,994
Allowance for uncollectible receivables (2,542,242) (1,099,645) TOTALS 5,095,155$ 20,447,349 $
Accounts payable and other liabilities as of June 30, 2023 repor ted on the Statement of Net Position primarily consist of the following:
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES
ACCOUNTS PAYABLE AND
OTHER LIABILITIES
Accounts payable (due to vendors) 23,973,281 $ 12,981,872 $ Other Liabilities
Accrued payroll and benefits 2,775,704 1,041,207
Contingent liabilities 3,178,380 2,732,764
Other payables 10,239,701 731,529
Total Other Liabilities 16,193,785 4,505,500
TOTALS 40,167,066$ 17,487,372 $
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
C. Interfund Receivables and Payables
Total interfund receivables and payables at June 30, 2023, which are included in the Fund Financial Statements as due to/from other funds and advances to/from other funds, before eliminations, consist of the following:
INTERFUND INTERFUND INTERFUND
RECEIVABLE PAYABLE BALANCE ELIMINATION TOTAL
GOVERNMENTAL ACTIVITIES
Due To/From Other Funds
General Fund 2,005,080 $ (9,704,394) $ (7,699,314) $ (7,480) $ (7,706,794)$ Affordable Housing Fund - (7,480) (7,480) 7,480 - State and Federal Grants Fund 9,933,656 (8,019,329) 1,914,327 (1,914,327) - Nonmajor governmental funds - (1,914,327) (1,914,327) 1,914,327 - 11,938,736 (19,645,530) (7,706,794) - (7,706,794) Advances To/From Other Funds
General Fund 1,821,056 (1,821,056) - - - Internal Service Fund 823,862 - 823,862 - 823,862 2,644,918 (1,821,056) 823,862 - 823,862 Total Governmental Activities 14,583,654 (21,466,586) (6,882,932) - (6,882,932)
BUSINESS-TYPE ACTIVITIES
Due To/From Other Funds
Water 2,521,610 (114,428) 2,407,182 (144,647) 2,262,535 Wastewater 2,838,194 - 2,838,194 - 2,838,194 Environmental resource 2,606,065 - 2,606,065 - 2,606,065 Golf Course - (144,647) (144,647) 144,647 - 7,965,869 (259,075) 7,706,794 - 7,706,794 Advances To/From Other Funds
Water 302,441 - 302,441 (302,441) - Golf Course - (302,441) (302,441) 302,441 - Oxnard Housing Authority - (654,808) (654,808) - (654,808) Internal Service Fund - (169,054) (169,054) - (169,054) 302,441 (1,126,303) (823,862) - (823,862) Total Business-type Activities 8,268,310 (1,385,378) 6,882,932 - 6,882,932
The interfund balances at June 30, 2023 are loans to cover temporary cash deficits in various funds. Also included in the inte rfund balances is $169,054 net internal receivable from business-type activities to governmental activiti es representing the portion of the net deficit of internal service funds attributable to business-type activities.
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
C. Interfund Receivables and Payables (Continued)
During the fiscal year 2021, the general fund was court-ordered to repay the water, wastewater, and environmental resource fund a total of approximately $36.5 million for Infrastructure Use Fees (IUF) payments received in prior years. The amounts due from the General Fund to Water Fund, Wastew ater Fund and Environmental Resources Fund are reported in the interfund receivable and payable.
D. Interfund Transfers
Interfund transfers generally fall within one of the following categories:
Debt service payments made from a debt service fund but funded from an operating fund;
Program support that generally reflects subsidies and allocations between funds; and
Transfers of capital assets between governmental activities and enterprise funds.
The following transfers in and out are reflected in the Fund Financial Statements for the year ended June 30, 2023:
TRANSFERS TRANSFERS NET
DESCRIPTION IN OUT TRANSFERS
GOVERNMENTAL ACTIVITIES
General Fund Program Support 3,022,236 $ (12,632,526) $ (9,610,290) $ General Fund Debt Service - (8,046,061) (8,046,061) Developer Fees Program Support - (2,807,270) (2,807,270) Developer Fees Debt Service - (549,603) (549,603) State and Federal Grants Fund Program Support 60,945 (20,635,132) (20,574,187) Capital Improvement Fund Capital improvement 44,544,038 - 44,544,038 Nonmajor Governmental Funds Program Support 1,058,035 (21,550,356) (20,492,321) Nonmajor Governmental Funds Debt Service 7,719,029 - 7,719,029 Internal Service Funds Program Support 260,067 (171,134) 88,933 Total Governmental Activities 56,664,350 (66,392,082) (9,727,732)
BUSINESS-TYPE ACTIVITIES
Water Program Support - (7,058,412) (7,058,412) Water Capital Improvements 15,069,711 - 15,069,711 Wastewater Program Support - (9,372,037) (9,372,037) Wastewater Capital Improvements 11,164,829 - 11,164,829 Environmental Resource Program Support - (2,042,515) (2,042,515) Environmental Resource Capital Improvements 1,966,156 - 1,966,156 Total Business-Type Activities 28,200,696 (18,472,964) 9,727,732
TOTAL GOVERNMENT-WIDE
STATEMENTS 84,865,046$ (84,865,046) $ - $
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
E. Lease Receivable
As of June 30, 2023, the City has the following leases:
66 month lease as Lessor for the use of 201 E Fourth Street, Suite 103A. On July 1, 2021, an initial lease receivable was re corded in the amount of $66,981. As of June 30, 2023, the value of the lease receivable is $42,942. The lessee is required to make monthly variable principal and interest payments of $1,271. The lease has an interest rate of 0.815%. The value of the deferred inflow of reso urces as of June
30, 2023 was $42,624, and the City recognized lease revenue of $12,178 during the fiscal year.
64 month lease as Lessor for the use of 350 South K Street (land). On July 1, 2021, an initial lease receivable was recorded in the amount of $234,535. As of June 30, 2023, the value of the lease receivable is $158,067. The lessee is required to make monthly variable principal and interest payments of $3,248. The lease has an interest rate of 0.687%. The value of the deferred inflow of resources as of June 30, 2023 was $147,176, and the City recognized lease revenue of $43,680 during the fiscal year. The lessee has one extension option for 60 months. 48 month lease as Lessor for the use of 1 600 Camino Del Sol (land). On July 1, 2021, an initial lease receivable was recorded in the amount of $398,423. As of June 30, 2023, the value of the l ease receivable is $321,089. The lessee is required to make monthly fixed payments of $3,571. The lease has an interest rate of 0.560%.
The value of the deferred inflow of re sources as of June 30, 2023 was $310,401, and the City recognized lease revenue of $44,011 during the fiscal year. The lessee has one extension option for 60 months.
28 month lease as Lessor for the use of 201 East Fourth Street, Suite 102. On July 1, 2021, an initial lease receivable was reco rded in the amount of $14,124. As of June 30, 2023, the value of the lease receivable is $2,066. The lessee is required to make monthly fixed payments of $578. The lease has an interest rate of 0.308%.
The value of the deferred inflow of resources as of June 30, 2023 was $2,018, and the City recognized lease revenue of $6,053 during the fiscal year. The lessee has three extension options, each for 36 months.
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
E. Lease Receivable (Continued)
60 month lease as lessor for the use of 255 and 273 East Fifth Street. On June 21, 2022, an initial lease receivable was recorded in the amount of $259,955. As of June 30, 2023, the value of the l ease receivable is $210,046. The lessee is required to make monthly fixed payments of $4,583. The lease has an interest rate of 2.287%.
The value of the deferred inflow of re sources as of June 30, 2023 was $206,520, and the City recognized lease revenue of $51,991 during the fiscal year. The lessee had a termination period of six months as of the lease commencement.
The future minimum lease payments receivable are as follows:
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 145,896$ 9,215$ 155,111$
2025 149,216 7,166 156,382
2026 160,844 5,028 165,872
2027 129,199 2,846 132,045
2028 47,733 1,543 49,276
2029-2031 101,323 1,337 102,660
TOTALS 734,211$ 27,135 $ 761,346 $
Governmental Activities
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
F. Notes Receivable
At June 30, 2023, the City's net notes receivable consisted of the following:
BALANCE BALANCE
JULY 1, 2022 ADDITIONS DELETIONS JUNE 30, 2023
GOVERNMENTAL ACTIVITIES
Residential Notes Receivable
CalHOME Loans 2,654,154$ - (19,500) 2,634,654$ BEGIN Loans 3,054,343 - (25,000) 3,029,343 CDBG Loans 3,752,568 - (128,239) 3,624,329 HOME Loans 6,991,209 - (335,325) 6,655,884 NSP Loans 297,550 - - 297,550 HERO Loans 114,473 - - 114,473 Other 2,775,062 - (25,500) 2,749,562 Allowance for doubtful accounts (8,703,638) - 402,049 (8,301,589) 10,935,721 - (131,515) 10,804,206 Developer Notes Receivable
* Las Villas de Paseo Nuevo 7,000,000 - - 7,000,000 CRFL Family Apartments 14,277,022 - - 14,277,022 Colonial House 4,200,000 - - 4,200,000 Paseo Santa Clara 2,200,000 - - 2,200,000 Paseo Del Rio 2,700,000 - - 2,700,000 * Terraza de Las Cortes 3,300,000 - - 3,300,000 * Las Cortes 3,672,319 - - 3,672,319 Villa Madera 1,600,000 - - 1,600,000 Sonata at Riverpark 3,000,000 - - 3,000,000 Sonata at Riverpark-PILOT 3,711,154 - - 3,711,154 Many Mansions - Ormond Beach Villas 992,624 - - 992,624 Many Mansions-110 N D St 299,500 - - 299,500 Many Mansions-Terry's Place 367,159 - - 367,159 Camino Gonzales 1,623,840 - - 1,623,840 Cesar Chavez 860,000 - - 860,000 Villa Solimar 805,000 - - 805,000 Villa Solimar-Cypress Court 162,000 - - 162,000 Villa Victoria 1,101,500 - - 1,101,500 Mercy Housing 720,846 - - 720,846 Meta Street Apartments 95,000 - - 95,000 Dolores Hue
rta Gardens (Etting Rd.) - 1,668,600 - 1,668,600 Colonial House - PILOT 3,202,826 - - 3,202,826 Cypress Place - 1,600,000 (600,000) 1,000,000 Allowance for doubtful accounts (3,082,319) - - (3,082,319) 52,808,471 3,268,600 (600,000) 55,477,071 63,744,192 3,268,600 (731,515) 66,281,277
BUSINESS-TYPE ACTIVITIES
Wastewater Loans 777 ,000 - - 777 ,000 Oxnard Housing Authority 3,569,930 - (448,524) 3,121,406 4,346,930 - (448,524) 3,898,406
TOTAL GOVERNMENT-WIDE
STATEMENTS 68,091,122$ 3,268,600 $ (1,180,039) $ 70,179,683 $ * Parties are related to the Oxnard Housing Authority
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
F. Notes Receivable (Continued)
GOVERNMENTAL ACTIVITIES
Residential Notes Receivable
The City offers loans to qualifying lo w-income individuals and families who require financial assistanc e for home-buying, home repa irs, or mobile home replacements (no longer offered). Re sidential outstanding loans at June 30, 2023 include the following programs: Home Investment Partnership Program (HOME), Community Development Block Grants (CDBG), Building Equity and Growth in Neighborhoods Program (B EGIN), Neighborhood Stabilization Program (NSP), Historic Enhancement Revitalization of Oxnard (HERO), and CalHome Program. Summarized in the table below are these programs' average outstanding loan amount, interest rate, average outstanding term, and forgiveness policy. A majority of the home loan programs are forgivable at the end of term. Any default on the agreement, such as transfer of ownership or failure of homeowner to live in the unit causes the loan to be due and payable immediately. The City secures these loans by placing a lien on the property by recording a Deed of Trust with the Vent ura County Recorder's Office for the loan amount.
PROGRAM AMOUNT INTEREST TERM FORGIVABLE
CalHOME 29,000$ 3% 30 No
BEGIN 26,000 3% 30 No
CDBG 24,000 0% 20 Yes
HOME 19,000 0% 12 Yes
NSP 41,000 0% 20 Yes
HERO 11,000 0% 6 Yes
Other 17,000 0% 24 Yes
Developer Notes Receivable
The City entered into loan agreements wit h several developers for affordable housing and mixed-use projects. The terms of the loans include annual installments from residual receipts. The loans bear simple interest at a rate of 1%-4% per year maturing between 24-55 years from the completion of the project. The City secured these loans with a deed of trust for the loan amount.
Three of the affordable housing loans in the aggregate amount of $13,972,319, net of allowance of $3,082,319 as of June 30, 2023, are loans to parties related the Oxnard Housing Authority.
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-83-
II. DETAILED NOTES ON ALL FUNDS (Continued)
F. Notes Receivable (Continued)
BUSINESS-TYPE ACTIVITIES
Septic to Sewer Project
The City provided financial assistance to property owners affected by the California Regional Water Quality Control Board Resolution No. 99-13 of 1999, which prohibited the installation of new septic systems and called for the removal of existing septic systems in the area by 2008. The loans are interest free and payment plans are based on individual agreements.
Oxnard Housing Authority
In April 2014, the Authority issued a promissory note of $2,050,000 to Terraza De Las Cortes, L.P. for certain land t he Authority received in a land exchange with the City. The note accrues interest at a rate of 5% compounded annually on the amount of the outstanding balance of the loan. Annual payments of 85% of the annual net cash flow of the pr operty are made. All outstanding principal and accrued interest are payable on or before April 2069. Principal and interest due to the Authority at June 30, 2023 was $788,787 and $74,748, respectively.
In June 2020, the Authority entered into a note agreement with A0592 Oxnard LP (Developer). The Authority is to provide up to $2,500,000 in reimbursement for costs associated wit h demolition costs of the Los Cortes phase II development. The note accrues interest at a rate of 3% simple interest per annum. Principal and interest due to the Authority at June 30, 2023 was $2,332,619 and $200,424, respectively.
112
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-84-
II. DETAILED NOTES ON ALL FUNDS (Continued)
G. Capital Assets
Changes in the City's capital assets for the year ended June 30, 2023 consisted of the following:
BALANCE BALANCE
JULY 1, 2022 INCREASES DECREASES TRANSFERS JUNE 30, 2023
GOVERNMENTAL ACTIVITIES
Capital Assets, Not Being Depreciated
Land 1,390,541,135$ 1,179,420$ -$ -$ 1,391,720,555$ Construction in progress 33,996,339 36,981,846 (6,870,636) - 64,107,549 Total Capital Assets, Not Being
Depreciated 1,424,537,474 38,161,266 (6,870,636) - 1,455,828,104 Capital Assets, Being Depreciated
Artwork 87,000 - - - 87,000 Buildings 119,818,228 2,292,233 - - 122,110,461 Improvements other than buildings 83,016,605 645,065 - - 83,661,670 Equipment and machinery 46,712,145 3,320,234 (508,379) 27,453 49,551,453 Intangible assets - 3,327,079 - - 3,327,079 Infrastructure 689,818,566 2,753,918 - - 692,572,484 Total Capital Assets, Being
Depreciated 939,452,544 12,338,529 (508,379) 27,453 951,310,147 Less: Accumulated Depreciation
Artwork (87,000) - - - (87,000) Buildings (47,395,718) (2,456,887) - - (49,852,605) Improvements other than buildings (26,386,651) (2,141,087) - - (28,527,738) Equipment and machinery (33,821,911) (2,659,341) 508,379 (17,801) (35,990,674) Intangible assets - (948,071) - - (948,071) Infrastructure (273,004,850) (17,361,025) - - (290,365,875) Total Accumulated Depreciation (380,696,130) (25,566,411) 508,379 (17,801) (405,771,963) Total Capital Assets, Being
Depreciated, Net 558,756,414 (13,227,882) - 9,652 545,538,184
GOVERNMENTAL ACTIVITIES CAPITAL
ASSETS, NET 1,983,293,888$ 24,933,384 $ (6,870,636) $ 9,652 $ 2,001,366,288$
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-85-
II. DETAILED NOTES ON ALL FUNDS (Continued)
G. Capital Assets (Continued)
BALANCE BALANCE
JULY 1, 2022 INCREASES DECREASES TRANSFERS JUNE 30, 2023
BUSINESS-TYPE ACTIVITIES
Capital Assets, Not Being Depreciated
Land 45,539,471 $ 563,224 $ - $ - $ 46,102,695$ Construction in progress 35,181,382 18,916,224 (27,458,915) - 26,638,691 Total Capital Assets, Not Being
Depreciated 80,720,853 19,479,448 (27,458,915) - 72,741,386 Capital assets, Being Depreciated
Buildings 254,149,130 2,939,448 (597,113) - 256,491,465 Improvements other than buildings 34,606,396 - - - 34,606,396 Equipment and machinery 126,820,928 2,975,023 (407,048) (27,453) 129,361,450 Intangible assets - 56,261 - - 56,261 Infrastructure 416,255,064 26,001,028 - - 442,256,092 Total Capital Assets, Being
Depreciated 831,831,518 31,971,760 (1,004,161) (27,453) 862,771,664 Less: Accumulated Depreciation
Buildings (127,599,936) (5,335,016) 33,893 - (132,901,059) Improvements other than buildings (16,587,437) (611,364) - - (17,198,801) Equipment and machinery (62,571,688) (5,665,159) 407,048 17,801 (67,811,998) Intangible assets - (21,468) - - (21,468) Infrastructure (157,236,625) (8,118,557) - - (165,355,182) Total Accumulated Depreciation (363,995,686) (19,751,564) 440,941 17,801 (383,288,508) Total Capital Assets, Being
Depreciated, Net 467,835,832 12,220,196 (563,220) (9,652) 479,483,156
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET 548,556,685 31,699,644 (28,022,135) (9,652) 552,224,542 TOTALS 2,531,850,573$ 56,633,028 (34,892,771) - 2,553,590,830
For the year ended June 30, 2023 depreciation expense on capital assets was charged as follows:
AMOUNT
GOVERNMENTAL ACTIVITIES
General government 1,617,697 $
Public safety 2,260,345
Public works 20,543,736
Community development 22,880
Culture, leisure and libraries 729,384
Housing 10,408
Capital assets held by the City's internal service fund 381,961
TOTAL GOVERNMENTAL ACTIVITIES
DEPRECIATION EXPENSE 25,566,411$
BUSINESS-TYPE ACTIVITIES
Water 7,613,688
Wastewater 8,052,448
Environmental resources 2,676,033
Golf Course 590,258
Oxnard Housing Authority 819,137
TOTAL BUSINESS-TYPE ACTIVITIES
DEPRECIATION EXPENSE 19,751,564$
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-86-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt
The following is a summary of changes in long-term debt. Certain long-term debt provides financing to both governmental and business-type activities. The following tables present balances and activity for the City's fiscal year ended June 30, 2023:
BALANCE BALANCE DUE WITHIN
JULY 1, 2022 ADDITIONS REDUCTIONS JUNE 30, 2023 ONE YEAR
GOVERNMENTAL ACTIVITIES
Lease Revenue Bonds
Lease revenue project and refunding bonds,
series 2014 9,635,000$ -$ (1,185,000)$ 8,450,000$ 1,240,000$ Lease revenue refunding bonds,
series 2018 22,320,000 - (1,465,000) 20,855,000 1,515,000 Lease revenue refunding bonds,
series 2019A 25,655,000 - (755,000) 24,900,000 805,000 Unamortized premiums 4,948,108 - (361,884) 4,586,224 - Unamortized discounts (19,183) - 1,014 (18,169) - Revenue Bonds
Gas Tax Revenue Refunding Bonds,
series 2020 15,530,000 - (740,000) 14,790,000 770,000 Unamortized Premiums 2,852,460 - (57,846) 2,794,614 - Lease Purchase Agreements
1,355,250 - (654,385) 700,865 345,718 B of A Lease Purchase 2022, Draw #25 3,300,000 - (304,583) 2,995,417 323,063 B of A Lease Purchase 2022, Draw #26 - 2,035,000 (87,250) 1,947,750 186,110 B of A Lease Purchase 2023, Draw #27 - 3,285,000 (160,754) 3,124,246 297,034 2012 Lease Purchase 2,303,516 - (351,135) 1,952,381 364,565 2014 Lease Purchase - Fire Station 8 9,696,695 - (885,000) 8,811,695 920,000 TOTAL GOVERNMENTAL ACTIVITIES 97,576,846$ 5,320,000 $ (7,006,823) $ 95,890,023 $ 6,766,490 $
B of A Lease Purchase 2018, Draw #21 &
#22
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-87-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
JULY 1, 2022 ADDITIONS REDUCTIONS JUNE 30, 2023 ONE YEAR
BUSINESS-TYPE ACTIVITIES
Water Fund
Revenue Bonds
Water revenue project bonds,
series 2010B 83,670,000 $ - $ (1,970,000)$ 81,700,000 $ 2,060,000 $ Water revenue refunding bonds,
series 2018 36,870,000 - (1,280,000) 35,590,000 1,350,000 Water Bond Series 2021A 21,875,000 - (385,000) 21,490,000 395,000 Water revenue refunding bonds,
series 2021 24,097,479 - (1,727,121) 22,370,358 1,774,504 Unamortized premiums 6,993,150 - (433,220) 6,559,930 - Unamortized discounts (492,956) - 28,036 (464,920) - TOTAL WATER FUND 173,012,673$ - $ (5,767,305)$ 167,245,368 $ 5,579,504 $ Wastewater Fund
Revenue Bonds
Wastewater revenue refunding
bonds, series 2014 64,455,000$ -$ (4,050,000)$ 60,405,000$ 4,250,000$ Wastewater revenue refunding
bonds, series 2018 19,640,000 - (1,235,000) 18,405,000 1,300,000 Unamortized premiums 7,228,079 - (687,141) 6,540,938 - TOTAL WASTEWATER FUND 91,323,079$ - $ (5,972,141)$ 85,350,938 $ 5,550,000 $ Environmental Resources Fund
Lease Purchase Agreements
B of A Lease Purchase Agreement 2018 3,070,728$ - $ (493,970)$ 2,576,758 $ 509,183$ B of A Lease Purchase Agreement 2021 8,801,431 - (1,414,263) 7,387,168 1,434,911
TOTAL ENVIRONMENTAL
RESOURCES FUND 11,872,159$ - $ (1,908,233)$ 9,963,926 $ 1,944,094 $ Oxnard Housing Authority Fund
Direct Borrowings
2004 Capital Fund Revenue Bonds 840,000 $ - $ (410,000)$ 430,000 $ 430,000$ Note payable 269,710 - - 269,710 269,710
TOTAL OXNARD HOUSING
AUTHORITY FUND 1,109,710$ - $ (410,000)$ 699,710 $ 699,710 $
TOTAL BUSINESS-TYPE
ACTIVITIES 277,317,621$ - $ (14,057,679)$ 263,259,942 $ 13,773,308 $ TOTALS 374,894,467$ 5,320,000 $ (21,064,502) $ 359,149,965 $ 20,539,798 $
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-88-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
The summary annual debt service requirements are shown below for all long-term debt:
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES
FISCAL YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL 2024 6,766,490 3,623,783 10,390,273$ 13,773,308 12,899,304$ 26,672,612$ 2025 7,019,688 3,357,662 10,377,350 13,614,644 12,292,201 25,906,845 2026 6,928,692 3,083,839 10,012,531 14,173,427 11,679,960 25,853,387 2027 7,218,236 2,798,915 10,017,151 14,759,656 11,040,587 25,800,243 2028 7,513,184 2,494,391 10,007,575 15,242,273 10,372,443 25,614,716 2029-2033 29,271,064 9,170,310 38,441,374 76,832,391 41,188,610 118,021,001 2034-2038 17,970,000 3,049,087 21,019,087 59,583,295 22,622,637 82,205,932 2039-2043 5,840,000 449,823 6,289,823 27,165,000 6,127,250 33,292,250 2044-2048 - - - 5,580,000 2,667,200 8,247,200 2049-2053 - - - 6,790,000 1,457,800 8,247,800 2054-2058 - - - 3,110,000 187,800 3,297,800 TOTALS 88,527,354 28,027,810 116,555,164 $ 250,623,994 $ 132,535,792 $ 383,159,786 $
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-89-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt
Bonds and Certificates of Partic ipation - Governmental Activities
Lease Revenue Project and Refunding Bonds, Series 2014
On November 4, 2014, the Authority issued $21,225,000 of Lease Revenue Project and Refunding Bonds, Series 2014. The purposes of the bonds were to refund the outstanding Lease Revenue Re funding Bonds, Series 2003A, and finance the acquisition, construction, and improvement of certain streets and roadways within certain residential neighborhoods with the City. The refunding resulted in an economic gain (difference between the present value of the debt service on the old bonds and the present value of the debt service on the new bonds) of $4,962 and debt service savings of $11,715. The lease payment s on these bonds constitute obligations of the City's General Fund. The bonds mature annually in amounts ranging from $2,925,000 on June 1, 2015 to $1,585,000 on June 1, 2029. Interest on the bonds is payable on June 1 and December 1 of each year, with interest rates ranging from 2 percent to 5 percent.
As of June 30, 2023, the total balance outstanding was $8,450,000.
As of June 30, 2023, the total future debt payments for the Lease Revenue Project and Refunding Bonds, Series 2014, including interest thereon, are as follows:
LEASE REVENUE PROJECT AND
REFUNDING BONDS
SERIES 2014
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 1,240,000 422,500 1,662,500$
2025 1,305,000 360,500 1,665,500
2026 1,370,000 295,250 1,665,250
2027 1,440,000 226,750 1,666,750
2028 1,510,000 154,750 1,664,750
2029 1,585,000 79,250 1,664,250
TOTALS 8,450,000 1,539,000 9,989,000 $
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-90-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on - Governmental Activities (Continued)
Lease Revenue Refunding Bonds, Series 2018
On April 20, 2018, the Au thority issued $28,810,000 of Lease Revenue Refunding Bonds, Series 2018. The purpose of the bonds was to pay for the principal and interest on the Variable Rate Demand Lease Revenue Bonds, Series 2003B and 2006. The refunding resulted in an economic gain of $965,987 and an estimated cash flow savings of $1,160,111. The lease payments on these bonds constitute obligations of the City's General Fund. The bonds mature annually in amounts ranging from $985,000 on June 1, 2018 to $1,310,000 on June 1, 2036. Interest on the bonds is payable on June 1 and December 1 of each year, with interest rates ranging from 3 percent to 5 percent.
As of June 30, 2023, the total balance outstanding was $20,855,000.
As of June 30, 2023, the total future debt payments for the Lease Revenue Refunding Bonds, Series 2018, including interest thereon, are as follows:
PRINCIPAL INTEREST TOTAL
2024 1,515,000 1,042,750 2,557,750$
2025 1,550,000 967,000 2,517,000
2026 1,590,000 889,500 2,479,500
2027 1,640,000 810,000 2,450,000
2028 1,680,000 728,000 2,408,000
2029-2033 9,065,000 2,336,000 11,401,000 2034-2036 3,815,000 385,250 4,200,250 20,855,000 7,158,500 28,013,500 $
LEASE REVENUE
REFUNDING BONDS
SERIES 2018
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-91-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on - Governmental Activities (Continued)
Lease Revenue Refunding Bonds, Series 2019A
On December 1, 2019, the Authority issued $27,615,000 of Lease Revenue Refunding Bonds, Series 2019A. The purpose of the b onds was to finance upfront payments of the City’s Enterprise Resource Planning project and pay for the principal and interest on the Lease Revenue Refunding Bonds, Series 2011. The refunding resulted in an economic gain of $1,746,065 and total additional cash flow of $311,375 due to $6.9 million of additional proceeds obtained. The lease payments on these bonds constitute obligations of the City’s General Fund. The bonds mature annually in amounts ranging from $585,000 on June 1, 2020 to $2,020,000 on June 1, 2041. Interest on the bonds is payable on June 1 and December 1 of each year, with interest rates ranging from
1.944 percent to 3.804 percent. As of June 30, 2023, the total balance outstanding was $24,900,000.
As of June 30, 2023, the total future debt payments for the Lease Revenue Refunding Bonds, Series 2019A, including interest thereon, are as follows:
REFUNDING BONDS
SERIES 2019A
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 805,000 839,386 1,644,386$
2025 860,000 821,000 1,681,000
2026 910,000 799,775 1,709,775
2027 970,000 775,952 1,745,952
2028 1,035,000 748,908 1,783,908
2029-2033 6,205,000 3,236,449 9,441,449
2034-2038 8,275,000 2,057,437 10,332,437 2039-2041 5,840,000 449,823 6,289,823 TOTALS 24,900,000 9,728,730 34,628,730 $
LEASE REVENUE
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-92-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on - Governmental Activities (Continued)
Gas Tax Revenue Refunding Bonds, Series 2020
On February 20, 2020, the Authority issued $16,905,000 of Gas Tax Revenue Refunding Bonds, Series 2020. The purpose of these bonds was to pay for the principal and interest on the Gas Tax Revenue Certific ates of Participation. The refunding resulted in an economic gain of $4,843,757 and an estimated total cash flow savings of $5,721,089. The bonds are secured solely by gas tax revenues received from the State of California. The bonds mature annually in amounts ranging from $665,000 on September 1, 2020 to $1,270,000 on September 1, 2037. In terest on the bonds is payable on March 1 and September 1 of each year, with interest rates ranging from 1.5 percent to 4.0 percent. As of June 30, 2023, the total balance outstanding was $14,790,000.
As of June 30, 2023, the total future debt payments for the Gas Tax Revenue Refunding Bonds, Series 2020, including interest thereon, are as follows:
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 770,000 548,525 1,318,525$
2025 785,000 527,238 1,312,238
2026 805,000 509,275 1,314,275
2027 835,000 480,500 1,315,500
2028 865,000 446,500 1,311,500
2029-2033 4,850,000 1,676,200 6,526,200
2034-2038 5,880,000 606,400 6,486,400 TOTALS 14,790,000 4,794,638 19,584,638 $
GAS TAX REVENUE BONDS
SERIES 2020
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-93-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participation – Business-Type Activities
Water Revenue Project Bonds, Series 2010B
The City has pledged all net water revenues and all amounts on deposit in the Revenue Fund for the payment of the 2010 Insta llment Payments and the outstanding Parity Obligations. As of June 30, 2023, Parity Obligations include the Series 2018, 2021A, and 2021 Water Revenue Bonds. These bonds we re issued on February 11, 2010 in the amount of $83,670,000. Thes e bonds, issued as Federally Taxable Build America Bonds under the American Recovery and Reinvestment Act of 2008, carry a net interest cost of 4.5287% and mature on June 1, 2040. The City receives an interest subsidy directly from the United States Treasury equal to 35% of each interest payment. Since 2013, approximately 5.9% - 8.7% of the expected subsidy has been sequestered by the U.S. Treasury, effectively reducing the interest subsidy to 32.9%. The proceeds from the sale of the bonds were used to finance a portion of the cost of certain capital improvements related to t he GREAT program. The Installment Payments on these bonds are secured by a first priority lien on the net system revenues (as defined in the trust indenture) of the City's water fund. Such obligation exists through the maturity date of the bonds at June 1, 2040. The balanc e outstanding as of June 30, 2023 is $81,700,000.
As of June 30, 2023, the total future debt payments for the Water Revenue Project Bonds, Series 2010B, including interest thereon, are as follows:
WATER REVENUE
PROJECT BONDS
SERIES 2010B
FISCAL YEAR PRINCIPAL INTEREST* TOTAL
2024 2,060,000 5,651,838 7,711,838 $ 2025 2,150,000 5,511,367 7,661,367
2026 2,240,000 5,364,758 7,604,758
2027 2,345,000 5,212,013 7,557,013
2028 2,445,000 5,052,107 7,497,107
2029-2033 13,960,000 22,607,170 36,567,170 2034-2038 32,190,000 16,905,240 49,095,240 2039-2040 24,310,000 2,571,450 26,881,450 TOTALS 81,700,000 68,875,943 150,575,943 $ *Interest is presented on a gross basis, excluding Build America Bonds subsidy from the US Treasury.
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CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-94-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on – Business-Type Activities (Continued)
Water Revenue Refunding Bonds, Series 2018
The City has pledged all net water revenues and all amounts on deposit in the Revenue Fund for the payment of the 2018 Installm ent Payments and the outstanding Parity Obligations. As of June 30, 2023, Parity Ob ligations as described on these bonds are Series 2010B, 2021A, and 2021 Water Revenue Bonds. The Installment Payments on these bonds are secured by a first priority lien on the net system revenues of the City's water fund. These bonds were issued on November 14, 2018 in the amount of $40,370,000. These bonds carry a net interest cost of 3.9% and mature on June 1, 2036. A portion of the proceeds were used to advance refund all the outstanding principal amount of $45,095, 000 of the Water Revenue Project Bonds, Series 2006.
This refunding resulted in an economic gain of $4,833,224 and an estimated cash flow savings of $6,558,001. The balance outstanding as of June 30, 2023 is $35,590,000.
As of June 30, 2023, the total future debt payments for the Water Revenue Refunding Bonds, Series 2018, including interest thereon, are as follows:
WATER REVENUE
REFUNDING BONDS
SERIES 2018
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 1,350,000 1,704,913 3,054,913 $ 2025 1,420,000 1,637,412 3,057,412
2026 1,490,000 1,566,413 3,056,413
2027 1,560,000 1,491,912 3,051,912
2028 1,640,000 1,413,912 3,053,912
2029-2033 12,055,000 5,631,563 17,686,563 2034-2036 16,075,000 1,558,488 17,633,488 TOTALS 35,590,000 15,004,613 50,594,613 $
123
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-95-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on – Business-Type Activities (Continued)
Water Revenue Refunding Bonds, Series 2021A
The City has pledged all net water revenues and all amounts on deposit in the Revenue Fund for the payment of the 2021A Installm ent Payments and the outstanding Parity Obligations. As of June 30, 2023, Parity Ob ligations as described on these bonds are Series 2010B, 2018, and 2021 Water Revenue B onds. The Installment Payments on these bonds are secured by a first priority lien on the net system revenues of the City's water fund. These bonds were issued on March 3, 2021 in the amount of $23,305,000.
These bonds carry a net interest cost of 3.2321% and mature on June 1, 2055. A portion of the proceeds were used to advance ref und all the outstanding pr incipal amount of $9,560,000 of the Water Re venue Project Bonds, Series 2010A and 2012. This refunding resulted in an economic loss of $1,934,875 and an estimated cash flow deficit of $1,426,231. The balance outstanding as of June 30, 2023 is $21,490,000.
As of June 30, 2023, the total future debt payments for the Water Revenue Refunding Bonds, Series 2021A, including interest thereon, are as follows:
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 395,000 859,600 1,254,600$ 2025 415,000 843,800 1,258,800
2026 435,000 827,200 1,262,200
2027 450,000 809,800 1,259,800
2028 470,000 791,800 1,261,800
2029-2033 990,000 3,726,800 4,716,800 2034-2038 - 3,667,000 3,667,000 2039-2043 2,855,000 3,555,800 6,410,800 2044-2048 5,580,000 2,667,200 8,247,200 2049-2053 6,790,000 1,457,800 8,247,800 2054-2055 3,110,000 187,800 3,297,800 TOTALS 21,490,000 19,394,600 40,884,600 $
WATER REVENUE
PROJECT BONDS,
SERIES 2021A
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-96-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on – Business-Type Activities (Continued)
Water Revenue Refunding Bonds, Series 2021
The City has pledged all net water revenues and all amounts on deposit in the Revenue Fund for the payment of the 2021 Installm ent Payments and the outstanding Parity Obligations. As of June 30, 2023, Parity Ob ligations as described on these bonds are Series 2010B, 2018 and 2021A Water Revenue Bonds. The Installment Payments on these bonds are secured by a first priority lien on the net system revenues of the City's water fund. These bonds were issued on November 2, 2021 in the amount of $24,159,946. These bonds carry a net interest cost of 2. 700% and mature on June 1, 2034. A portion of the proceeds were used to advance refund all the outstanding principal amount of $24,031,946 of the Water Revenue Bonds, Series 2014. This refunding resulted in an economic gain of $1,098,806 and an estimated cash flow savings of $1,398,084. The balance outstanding as of June 30, 2023 is $22,370,358.
As of June 30, 2023, the total future debt payments for the Water Revenue Refunding Bonds, Series 2021, including interest thereon, are as follows:
WATER REVENUE
REFUNDING BONDS
SERIES 2021
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 1,774,504 604,000 2,378,504 $ 2025 1,818,916 556,088 2,375,004
2026 1,870,276 506,977 2,377,253
2027 1,923,274 456,480 2,379,754
2028 1,972,702 404,551 2,377,253
2029-2033 10,697,391 1,194,127 11,891,518 2034 2,313,295 62,459 2,375,754 TOTALS 22,370,358 3,784,682 26,155,040 $
125
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-97-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on – Business-Type Activities (Continued)
Wastewater Revenue Refunding Bonds, Series 2014
Wastewater Revenue Refunding Bonds, Seri es 2014 were issued on November 18, 2014 in the amount of $71,985, 000 to refund the Wastewat er Revenue Refunding Bonds, Series 2004 issued on June 22, 2004 with outstanding balance of $80,000,000.
These bonds carry a net interest cost of 4.211% and mature on June 1, 2034. The City has pledged all net wastewat er revenues and all amounts on deposit in the Revenue Fund for the payment of the 2014 Installm ent Payments and the outstanding Parity Obligations. The balance outstanding as of June 30, 2023 is $60,405,000.
As of June 30, 2023, Parity Obligations include the 2018 Wastewater Revenue Bonds.
The Installment Payments on the 2014 Bonds are secured by a first priority lien on the net system revenues (as defined in the trust indenture) of the City' s wastewater fund.
Such obligation exists through the maturity date of the bonds at June 1, 2034.
As of June 30, 2023, the total future debt payments for the Wastewater Revenue Refunding Bonds, Series 2014, including interest thereon, are as follows:
WASTEWATER REVENUE
REFUNDING BONDS
SERIES 2014
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 4,250,000 3,020,250 7,270,250$
2025 4,465,000 2,807,750 7,272,750
2026 4,690,000 2,584,500 7,274,500
2027 4,925,000 2,350,000 7,275,000
2028 5,165,000 2,103,750 7,268,750
2029-2033 29,985,000 6,375,000 36,360,000 2034 6,925,000 346,250 7,271,250
TOTALS 60,405,000 19,587,500 79,992,500 $
126
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-98-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on – Business-Type Activities (Continued)
Wastewater Revenue Refunding Bonds, Series 2018
The City has pledged all net wastewater re venues and all amounts on deposit in the Revenue Fund for the payment of the 2018 Installment Payments and outstanding Parity Obligations. As of June 30, 2023, Parity Obligations include the 2014 Wastewater Revenue Bonds. The Installment Payments on these bonds are secured by a first priority lien on the net system revenues of the City's wastewater fund. These bonds were issued on November 14, 2018 in the amount of $24,550,000. These bonds carry a net interest cost of 3.6% and mature on June 1, 2034. A portion of the proceeds were used to advance refund all the outstanding principal amount of $14,675,000 of the Wastewater Revenue Project Bonds, Series 2004B and $9,385,000 of the Wastewater Revenue Project Bonds, Series 2006 and finance the termination payment with respect to an interest rate swap relating to the 2004 Bonds. This refunding resulted in an economic gain of $1,812,042 and a cash flow savings of $2,282,549. The balance outstanding as of June 30, 2023 is $18,405,000.
As of June 30, 2023, the total future debt payments for the Wastewater Revenue Refunding Bonds, Series 2018, including interest thereon, are as follows:
WASTEWATER REVENUE
REFUNDING BONDS
SERIES 2018
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 1,300,000 860,250 2,160,250 $ 2025 1,365,000 795,250 2,160,250
2026 1,430,000 727,000 2,157,000
2027 1,500,000 655,500 2,155,500
2028 1,585,000 580,500 2,165,500
2029-2033 9,145,000 1,653,950 10,798,950 2034 2,080,000 83,200 2,163,200 TOTALS 18,405,000 5,355,650 23,760,650 $
127
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-99-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Descriptions of Long-term Debt (Continued)
Bonds and Certificates of Participati on – Business-Type Activities (Continued)
Housing Authority 2004 Capital Fund Revenue Bonds
The Oxnard Housing Authority issued Affo rdable Housing Agency Certificates of Participation, Series 2004 (Oxnard's Santa Clara Projec ts) on April 26, 2004 in the amount of $10,370,000, evidencing a proportionate ownership interest in debt service payments to be made with respect to certain Capital Fund Revenue Bonds, Series 2004, issued by the Oxnard an d Santa Clara Housing Aut horities in the amounts of $5,820,000 and $4,550,000, respectively. Each certificate represent s a proportionate ownership interest of the holder in the right to receive debt service payments made with respect to the bonds. The obligation of the housing authorities under their respective bond indentures are independent and neither is obligated for the payment of principal or interest on the bonds of the other housing aut hority. The bonds were issued to finance certain capital projects of the Hous ing Authority, with interest ranging from
2.00% to 4.95%, maturing on April 1, 2024. The outstanding balance as of June 30, 2023 is $430,000.
As of June 30, 2023, the total future debt payments for the Housing Authority 2004 Capital Fund Revenue Bonds, including interest thereon, are as follows:
HOUSING AUTHORITY
2004 CAPITAL FUND
REVENUE BONDS
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 430,000 21,285 451,285
TOTALS 430,000 21,285 451,285$
Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax exempt bonds after Augus t 31, 1986. Arbitrage r egulations deal with the investment of all tax ex empt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxabl e if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. During the current year, the City performed calculations of excess inve stment earnings on various bonds and financings. Potential liabilities were calculated for the issues and rebate payments were made as appropriate. No arbitrage liability existed at June 30, 2023. 128
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-100-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Credit Rating
As of June 30, 2023, the City's issuer credit rating was “A+” while maintaining ratings of “A”, “AA-”, “A” and “A” for General (Lease Revenue), Gas Tax, Water and Wastewater Bonds, respectively.
Debt with Pledged Revenue
The City has pledged all net water system revenues and all amounts on deposit in the Revenue Fund for the payment of the bond Installment Payments and the outstanding Parity Obligations. The net water system revenues will not be used for any other purpose while any of the Installment Payments remain unpaid provided, however, that out of the net water system revenues, t here may be apportioned such sums for purposes as permitted by the Installment Purchase Agreements.
Principal and interest (less BABs subsidy on Series 2010B) paid for the current year and net water revenue were $5,362,121 and $7,186,097, respectively. The debt service coverage ratio of 113% is in compliance with the ratio require d by bond covenants.
Those covenants require coverage equal to at least 100% of debt payments plus unrestricted reserves equal to the differ ence between 125% of principal and interest payments and net water revenues. If the debt service coverage ratio is below 100% of principal and interest payments the trustee can declare the bonds in default and pursue remedies provided for in the Installment Purchase Agreement.
The City has pledged all net wastewater system revenues and all amounts on deposit in the Revenue Fund for the payment of the bond Installment Payments and the outstanding Parity Obligations. The net wa stewater system revenues will not be used for any other purpose while any of the Inst allment Payments remain unpaid provided, however, that out of the net wastewater system revenues, there may be apportioned such sums for purposes as permitted by the Installment Purchase Agreements.
Principal and interest paid for the curr ent year and net wast ewater revenue were $5,285,000 and $4,144,750, respectively. The debt service coverage ratio of 251% is in compliance with the ratio required by bond covenants. Those covenants require coverage equal to at least 100% of debt paym ents plus unrestricted reserves equal to the difference between 125% of principal and interest pay ments and net wastewater revenues. If the debt service coverage ratio is below 100% of principal and interest payments the trustee can declare the bonds in default and pursue remedies provided for in the Installment Purchase Agreement.
129
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-101-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Debt with Pledged Revenue (Continued)
The U.S. Department of Housing and Urban Development has approved the issuance of the Oxnard Housing Au thority bonds and the certific ates and has authorized the Authority to pledge and assign its Capital Fund Program monies to the payment of the bonds and, therefore, the certificates. During the year, $1,905,921 of Capital Fund Grant revenue was earned, of which, $390,000 was applied to the repayment of the bonds.
Lease Purchase Obligations - Governmental Activities
2012 Lease Purchase Agreement
On August 1, 2012, the City entered into a Lease Purchas e Agreement with Capital One Public Funding, LLC in the amount of $5,570,838, for the purpose of refinancing the 1999 Certificate of Participation, with interest rate of 3.54% and final maturity date on June 1, 2028. The refunding resulted in an ov erall cash flow savings of $658,975 and economic gain of $566,623. These lease pay ments constitute obligations of the City's General Fund. Such oblig ation exists through the maturity date of the lease at June 1, 2028. The outstanding balance as of June 30, 2023 is $1,952,381
As of June 30, 2023, the total future l ease payments for the 2012 Lease Purchase Agreement, including interest thereon, are as follows:
2012 LEASE
PURCHASE
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 364,565 69,114 433,679$
2025 377,521 56,209 433,730
2026 389,985 42,844 432,829
2027 401,941 29,039 430,980
2028 418,369 14,810 433,179
TOTALS 1,952,381 212,016 2,164,397 $
130
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-102-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Lease purchase Obligations - Gover nmental Activities (Continued)
2014 Lease Purchase Agreement
On January 1, 2014, the City entered into a Lease Agreement with Oxnard Fire Station, LLC for the lease of the Oxnard Fire Stat ion #8 in the amount of $13,813,065. Total lease payments beginning June 1, 2016 th rough December 31, 2031 amount to $20,359,994, including interest of $6,063, 301. These lease payments constitute obligations of the City's General Fund. The outstanding balance as of June 30, 2023 is $8,811,695.
The base rental is equal to the principal and interest payable with respect to the Revenue Bonds (Oxnard Fi re Station Project) 2014 Series A and Revenue Bonds (Oxnard Fire Station Project) 2014 Series B (Taxable) issued by the California Municipal Finance Authority (Authority) in the amount of $15,160,000 and $220,000 respectively. The Authority loaned the proceeds of the bonds to Oxnard Fire Station, LLC to finance the construction of the Oxnard Fire Station #8.
As of June 30, 2023, the total future lease payments for the 2014 Lease Purchase Agreement, including interest thereon, are as follows:
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 920,000 431,494 1,351,494$
2025 955,000 390,944 1,345,944
2026 1,005,000 346,341 1,351,341
2027 1,045,000 303,406 1,348,406
2028 1,090,000 256,675 1,346,675
2029-2032 3,796,695 1,568,442 5,365,137 TOTALS 8,811,695 3,297,302 12,108,997 $
PURCHASE
2014 LEASE
131
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-103-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Lease purchase Obligations - Governmental Activities (Continued)
Banc of America Lease Purchase Agreement 2018
On March 30, 2018, the City entered into an Equipment Lease/Purchase Agreement with Banc of America Public Capital Corporation (BofA) in an amount not to exceed $5 million for the purpose of acquiring public safety communication equipment and vehicles, fire apparatus and vehicles, and other capital assets. The lease payments constitute obligations of th e City’s General Fund. Such ob ligation exists through the maturity date of the lease. As of June 30, 2023, the total outst anding balance on this line of credit was $700,865.
As of June 30, 2023, the total future leas e payments for the B of A Lease Purchase Agreement 2018, including interest thereon, are as follows:
B OF A
LEASE PURCHASE 2018
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 345,718 16,658 362,376$
2025 355,147 7,231 362,378
TOTALS 700,865 23,889 724,754 $
Banc of America Lease Purchase Agreement 2022 Draw #25
On April 5, 2022, the City entered into an Equipment Lease/Purchase Agreement with Banc of America Public Capital Corporation (BofA) in an amount of $3.3 million for the purpose of acquiring and upfitting fire v ehicles. The lease payments constitute obligations of the City’s General Fund. Such obligation exists through the maturity date of the lease. As of June 30, 2023, the total outstanding ba lance on this line of credit was $2,295,417.
As of June 30, 2023, the total future leas e payments for the B of A Lease Purchase Agreement 2022 Draw #26, including interest thereon, are as follows:
B OF A LEASE
PURCHASE 2022, Draw #25
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 323,063 66,756 389,819$
2025 330,503 59,316 389,819
2026 338,115 51,704 389,819
2027 345,902 43,917 389,819
2028 353,869 35,950 389,819
2029-2032 1,303,965 60,401 1,364,366 TOTALS 2,995,417 318,044 3,313,461 $
132
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-104-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Lease purchase Obligations - Governmental Activities (Continued)
Banc of America Lease Purchase Agreement 2022, Draw #26 On November 15, 2022, the City entered into an Equipment Lease/Purchase Agreement with Banc of Americ a Public Capital Corporation (BofA) in an amount of $2.1 million for the purpose of acquiring fi re engines. The lease payments constitute obligations of the City’s General Fund. Such obligation exists through the maturity date of the lease on June 1, 2032. As of June 30, 2023, the total outstanding balance on this line of credit was $1,947,750.
As of June 30, 2023, the total future leas e payments for the B of A Lease Purchase Agreement 2022 Draw #26, including interest thereon, are as follows:
B OF A LEASE
PURCHASE 2022, Draw #26
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 186,110 70,247 256,357$
2025 193,047 63,308 256,355
2026 200,244 56,111 256,355
2027 207,710 48,646 256,356
2028 215,453 40,903 256,356
2029-2032 945,186 80,236 1,025,422 TOTALS 1,947,750 359,451 2,307,201 $
Banc of America Lease Purchase Agreement 2023, Draw #27 On January 19, 2023, the City entered into an Equipment Lease/Purchase Agreement with Banc of America Public Capital Corporation (BofA) in an amount of $3.5 million for the purpose of acquiring and upfitting eight battalion command vehicles. The lease payments constitute obligations of the Cit y’s General Fund. Such obligation exists through the maturity date of the lease on Ju ne 1, 2032. As of June 30, 2023, the total outstanding balance on this line of credit was $3,124,246.
As of June 30, 2023, the total future leas e payments for the B of A Lease Purchase Agreement 2022 Draw #26, including interest thereon, are as follows:
B OF A LEASE
PURCHASE 2022, Draw #27
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 297,034 116,353 413,387$
2025 308,470 104,916 413,386
2026 320,348 93,039 413,387
2027 332,683 80,705 413,388
2028 345,493 67,895 413,388
2029-2032 1,520,218 133,332 1,653,550 TOTALS 3,124,246 596,240 3,720,486 $
133
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-105-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Direct Borrowings (Continued)
Lease Purchase Obligations - Business-Type Activities
B of A Lease Purchase Agreement 2018
On March 30, 2018, the City entered into an Equipment Lease/Purchase Agreement with Banc of America Public Capital Corporation (BofA) in an amount not to exceed $5 million for the purpose of acquiring refuse trucks and vehicles. The lease payments constitute obligations of the City’s Envi ronmental Resources Fund. Such obligation exists through the maturity date of the lease on March 30, 2028. As of June 30, 2023, the total outstanding balance on this line of credit was $2,576,758.
As of June 30, 2023, the total future leas e payments for the B of A Lease Purchase Agreement 2018, including interest thereon, are as follows:
B OF A
LEASE PURCHASE
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 509,183 74,892 584,075$
2025 524,863 59,211 584,074
2026 541,028 43,047 584,075
2027 557,689 26,386 584,075
2028 443,995 9,211 453,206
TOTALS 2,576,758 212,747 2,789,505$ 2018
Lease purchase obligations are collaterali zed by equipment purchased and unspent proceeds held in escrow. In the event of default, the lender has the right to seize the collateral and/or call the debt.
134
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-106-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Direct Borrowings (Continued)
Lease Purchase Obligations - Business-Type Activities (Continued) B of A Lease Purchase Agreement 2021
In October 2021, the City entered into an Equipment Lease/Purchase Agreement with Banc of America Public Capital Corporation (BofA) in an amount of $10,255,00 0 for the
purpose of acquiring refuse loaders. The le ase payments constitute obligations of the City’s Environmental Resources Fund. Such obligation exists through the maturity date of the lease on March 30, 2028. As of June 30, 2023, the total outstanding balance on this line of credit was $7,387,168.
As of June 30, 2023, the total future leas e payments for the B of A Lease Purchase Agreement 2021, including interest thereon, are as follows:
B OF A
LEASE PURCHASE
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 1,434,911 102,276 1,537,187$
2025 1,455,865 81,323 1,537,188
2026 1,477,123 60,065 1,537,188
2027 1,498,693 38,496 1,537,189
2028 1,520,576 16,612 1,537,188
TOTALS 7,387,168 298,772 7,685,940$
2021
Lease purchase obligations are collaterali zed by equipment purchased and unspent proceeds held in escrow. In the event of default, the lender has the right to seize the collateral and/or call the debt.
135
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-107-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Notes Payable – Business-Type Activities
Housing Authority Community Development Commission Note Payable The Authority entered into a note agreement dated July 21, 2009, secured by a deed of trust, in the amount of $350,000 payab le to the City of Oxnard Community Development Commission (“CDC”) to finance the development of affordable housing units on Cuesta del Mar in the Southwinds Redevelopment Project Area. The principal balance on the note bears intere st at the rate of intere st paid in the Local Agency Investment Fund (LAIF) plus 1% per annum. Payments are to be made annually, commencing on January 30, of the year following the issuance of the first Certificate of Occupancy for the project, and each January 30 t hereafter. As of June 30, 2014, the project was considered permanently stall ed and would not be comple ted. The loan is to be payable in one lump sum payment due sixty (60) days after the anniversary of the failure to complete project determination. T here is an option to extend the repayment date for a period not to exceed two years as approved by the CDC’s Director. The outstanding balance at June 30, 2023 is $269,710.
136
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-108-
II. DETAILED NOTES ON ALL FUNDS (Continued)
H. Long-term Debt (Continued)
Special Assessment Bonds
There are various 1915 Act Improvement Districts and Mello-Roos Community Facilities Districts within the City, which have issued special assessment or special tax debt. The debt is secured by liens of special assessments or special taxes on the properties in the districts and is paid by the property owners. The City is not liable under any circumstance for the repayment of the debt, but is only acting as agent for the property owners in collecting the asse ssments and special taxes, forw arding the collections to fiscal agents to pay the bondholders, and in itiating foreclosure proceedings when appropriate.
Accordingly, such special assessment debt is not reflected in the accompanying basic financial statements. Special assessment debt outstandi ng at June 30, 2023 is as follows:
AMOUNT
Rice Avenue/Highway 101 Interchange Assessment District Local Obligation Revenue Bonds (2012 Special District Bond Refinancing to refund 1915 Act Limited Obligation Bonds) 7,025,000$
City of Oxnard Community Facilities District 1 (Westport) Local Obligation Revenue Bonds (2012 Special District Bond Refinancing to refund CFD No. 2000-3 Bonds)
6,110,000
Oxnard Boulevard Interchange Community Facilities District 2000-3 Local Obligation Revenue Bonds (2012 Special District Bond Refinancing to refund CFD No. 1 Bonds)
4,340,000
Oxnard Boulevard/Highway 101 Interchange Assessment District 2000-1 1915 Act Improvement Limited Obligation Bonds 1,315,000 Community Facilities District No. 3
Special Tax Refunding Bond 2013 (Seabridge Mandalay Bay) 19,795,000
TOTAL 38,585,000$
137
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-109-
II. DETAILED NOTES ON ALL FUNDS (Continued)
I. Compensated Absences
The accrual for compensated absences was reported as follows as of June 30, 2023:
BALANCE BALANCE DUE WITHIN
JULY 1, 2022 ADDITIONS PAYMENTS JUNE 30, 2023 ONE YEAR
GOVERNMENTAL ACTIVITIES
General Fund 14,645,187$ 8,780,460$ (6,595,993)$ 16,829,654$ 11,182,517$ Internal Service Fund 707,053 447,206 (409,755) 744,504 491,684 15,352,240 9,227,666 (7,005,748) 17,574,158 11,674,201
BUSINESS-TYPE ACTIVITIES
Water 591,072 461,167 (419,293) 632,946 418,009 Wastewater 723,495 467,053 (441,605) 748,943 494,615 Environmental resources 1,479,434 787,670 (572,923) 1,694,181 1,118,867 Golf Course - 15,032 (11,554) 3,478 2,297 Oxnard Housing Authority 603,347 188,597 (87,237) 704,707 225,662 3,397,348 1,919,519 (1,532,612) 3,784,255 2,259,450 TOTALS 18,749,588$ 11,147,185 $ (8,538,360) $ 21,358,413 $ 13,933,651 $
Accrued compensated absences includes an adj ustment of $490,553 for California Labor Code Section 4850 benefits for public employees in a specified class.
J. Subscription Liabilities
For the year ended June 30, 2023, the financ ial statements include the adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements .
This statement establishes a single model for subscription accounting based on the principle that subscriptions are financings of the right to use an underlying asset. Under this Statement, the City rec ognized subscription liabilities and intangible right-to-use subscription assets for the following software:
BALANCE BALANCE
JULY 1, 2022 ADDITIONS PAYMENTS JUNE 30, 2023
GOVERNMENTAL ACTIVITIES
Pantheon - WebOps -$ 391,910$ (135,000)$ 256,910$ Axon & Taser Software 1,410,602 - (468,353) 942,249 SirsiDynix SymphonyWeb 149,370 - (48,042) 101,328 NeoGov - Software 159,316 - (78,579) 80,737 Govlnvest - Software 144,874 - (71,599) 73,275 Emphasys Software 50,685 - (12,098) 38,587 Deploy Plus Software 47,706 - (18,985) 28,721 DebtBook 36,272 - (16,732) 19,540 TeamDynamix - Enterprise Software - 145,376 (31,425) 113,951 Dito - Google Workspace Enterprise & AU-2021 599,542 - (153,188) 446,354 Total Governmental Activities 2,598,367$ 537,286 $ (1,034,001)$ 2,101,652 $ 138
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-110-
II. DETAILED NOTES ON ALL FUNDS (Continued)
J. Subscription Liabilities (Continued)
BALANCE BALANCE
JULY 1, 2022 ADDITIONS PAYMENTS JUNE 30, 2023
BUSINESS-TYPE ACTIVITIES
Aquatic Informatics - Software - $ 35,594$ (11,680) $ 23,914 $ Total Business-Type Activities - 35,594 (11,680) 23,914 TOTALS 2,598,367$ 572,880 $ (1,045,681)$ 2,125,566 $
The future minimum lease payments payable as of June 30, 2023 are as follows:
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 1,038,083$ 53,260$ 1,091,343$
2025 897,474 27,042 924,516
2026 166,095 4,062 170,157
TOTALS 2,101,652$ 84,364 $ 2,186,016$
FISCAL YEAR PRINCIPAL INTEREST TOTAL
2024 11,456$ 808$ 12,264$
2025 12,458 421 12,879
TOTALS 23,914$ 1,229 $ 25,143 $
Governmental Activities
Business Type Activities
The intangible right-to-use subscription assets and accumulated amortization as of June 30, 2023 are included in capital assets intangible assets as follows:
Subscription Accumulated
Asset Class Asset Value Amortization
Intangible assets - software 3,383,340$ 969,539 $
Total Subscription Assets 3,383,340 $ 969,539 $
139
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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II. DETAILED NOTES ON ALL FUNDS (Continued)
K. Fund Balances
The following funds/subfunds had deficit fund balances as of June 30, 2023:
AMOUNT
Public Liability / Property Damage 3,713,616
Workers' Compensation 20,267,247
Utility Customer Service 567,674
Facilities Maintenance 3,200,655
Equipment Maintenance 2,101,928
Deficits in the Public Liability / Property Damage and Workers’ Compensation Funds result from implementing conservative actuarial assumptions regarding claims liabilities, including incurred but not reported claims. The City expects to replenish the reserve over a 10-year period.
Deficits in Utility Customer Service, Info rmation Services, Facilities Maintenance, and Equipment Maintenance resulted from accr ual of pension and OPEB liabilities. The deficits in these internal service funds are primarily attributable to the implementation of GASB Statements 68 and 75 to record liabilities for employee pensions and other post-employment benefits. These liabilities will be liquidated with revenue received in future years that cannot be accrued in these financial statements.
L. Prior Period Adjustments
The City recorded deferred revenue in the amount of $6,913,980 as of July 1, 2022.
The amount was related to two loans to developers initiated in fiscal year 2020 and 2021 as part of the City’s payments in-lieu of taxes (PILOT) program. The PILOT loans were properly recorded as loans receivable in the governmental activities in both years.
However, it was discovered that the related deferred revenue was inadvertently omitted as of June 30, 2021. The adjustment decreased governmental net position by $6,913,980 as of July 1, 2022.
The City changed its method of allocating pension and OPEB liabilities and related deferred outflows and inflows of resources to governmental activities, business-type activities and internal service funds. GA SB Statements 68 and 75 did not provide specific guidance for allocati ng pension liabilities and rela ted measures among fund financial statements and betw een governmental and business-type activities in the government-wide statement of net position. However, GASB provided guidance for allocating net pension liability to component units as if they were cost-sharing employers.
140
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-112-
II. DETAILED NOTES ON ALL FUNDS (Continued)
L. Prior Period Adjustments (Continued)
In prior years, the City allocated the chang es in the liabilities, deferred outflows and deferred inflows based on current year contri butions. Effective July 1, 2022, the City applied the guidance allocating net pension liabi lity to its business-type activities and internal service funds as if they were component units or cost-shar ing employers. As such, instead of allocating the changes in the liabilities, deferred outflows and deferred inflows, the City allocated each plan’s net pension and OPEB liabilities, deferred outflows and inflows balances to governmental activities, business-type activities and internal service funds. The adjustment increased governmental net position and decreased business-type net position by $14,473,728.
The net position of proprietary funds and internal serv ice funds were adjusted as follows:
Water Fund
Wastewater
Fund
Environmental
Fund
Internal Service
Funds
Net Position, July 1, 2022 141,686,489$ 191,341,549 $ 36,102,547 $ (29,985,071) $ Correction of an Error
To Reflect Change in Allocation of
Pension and OPEB Liabilities (3,531,831) (1,685,067) (9,256,830) 1,098,765 Net Position, July 1, 2022, As Restated 138,154,658$ 189,656,482 $ 26,845,717 $ (28,886,306) $
The net position of governmental and business-type activities were adjusted as follows:
Governmental Business Type
Activities Activities
Net Position, July 1, 2022 1,866,817,291$ 442,062,195 Correction of an Error
To Record Deferred Revenue (6,913,980) -
To Reflect Change in Allocation of
Pension and OPEB Liabilities 14,473,728 (14,473,728) Net Position, July 1, 2022, As Restated 1,874,377,039$ 427,588,467 $
141
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS
The City provides pension bene fits to its employees thr ough four defined benefit plans:
CalPERS Miscellaneous Plan, CalPERS Police Plan, CalPERS Fire, and the Retirement Enhancement Plan. Pension expense for all plans totaled $35,606,744 for the year ended June 30, 2023. Total pension liabilities, fiduciary net position, and net pension liabilities for all plans as of June 30, 2023 are as follows:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Miscellaneous Plan 570,085,887$ 411,628,241$ 158,457,646$ Safety – Police 460,898,247 347,167,238 113,731,009 Safety – Fire 194,713,207 129,686,715 65,026,492 Retirement Enhancement Plan 116,340,606 104,827,204 11,513,402 TOTALS 1,342,037,947$ 993,309,398 $ 348,728,549 $
1. California Public Empl oyees' Retirement System
A. Retirement Plan Description
The City contributes to the California Public Employees' Retirement System (CalPERS), an agent multiple-employer pub lic employee defined benefit plan, which acts as a common investment and administrative agent for participating public entities within the State of California. The City participates in agent multiple-employer plans for its Miscellaneous 2% at 55 and 2% at 62 and Police 3% at 50 and 2.7% at 57, and in the cost-sharing plan for its Fire 3% at 50 and 2.7% at 57. Benefit provisions and all other requirements are estab lished by State st atutes within the Public Employees' Retirement Law. City of Ox nard selects optimal benefit provisions and adopts those benefits through local ordinance. Copies of CalPERS' annua l financial report may be obtained from the CalPERS Executive Office, 400 "P" Street, Sacramento, CA 95814 or from the CalPERS website http://www.calpers.ca.gov. During the year ended June 30, 2013, the California's Public Employees' Pension Reform Act (PEPRA) went into effect. PEPRA requires new benefits and member contributions for new members as defined by PEPRA that are hired after January 1, 2013. Employees who were CalPERS members before January 1, 2013 are considered "Classic Members." 142
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) B. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment.
Classic members or PEPRA Safety members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA Miscellaneous members become eligible for retirement at age 52 with at least five years of service. The service retirement benefit is a monthl y allowance taking into acc ount the benefit factor, years of service, and final compensation. The be nefit factor depends on the benefit formula specified in the employer's contract. The years of service is the amount credited by CalPERS to a member while he or she is employed in this group. The final compensation is the monthly average of the member's highest 12 consecutive months' full-time equivalent monthly pay.
All members are eligible for nonduty disabi lity benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The standard death benefit for Safety members is the Special Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
C. Contributions
Section 20814(c) of the California Public Employees' Retirement Law 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 Ju ly 1 following notice of a change in the rate. The total plan contributions are determined through the 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 dete rmined rate and the contribution rate of employees.
143
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) C. Contributions (Continued)
Participants in the Miscellaneous and Safety plans are required to contribute a percentage of their annual covered salary. The City pays a portion of the contributions required of City employees on their behalf in accordance with respective memoranda of understanding (MOUs). The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members.
For the year ended June 30, 2023, the City's total contributions for the Miscellaneous and Safety Plans were $41,362,556. The City's contributions recognized as part of the pension expense for the year ended J une 30, 2023 were $38,373,520 for the Miscellaneous and Safety Plans.
The Plan's provisions and benefits in effe ct at June 30, 2023 are summarized as follows:
2.0% at 55 2.0% at 62
5 years of service 5 years of service
monthly for life monthly for life
50 - 67+ 52 - 67+
of eligible compensation 1.43% to 2.00% 1.00% to 2.50%
contribution rates 7.18% 7.50%
contribution rates plus 9.450% 15.390%
unfunded accrued liablity 12,739,646$ -$
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a percentage
Required employee
Required employer
Miscellaneous
Prior to On or After
Hire date January 1, 2013 January 1, 2013
144
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) C. Contributions (Continued)
Safety – Police
3.0% at 50 2.7% at 57
5 years of service 5 years of service
monthly for life monthly for life
50 - 55+ 50 - 57+
of eligible compensation 3.00% 2.00% to 2.70%
contribution rates 10.55% 15.50%
contribution rates plus 25.380% 30.960%
unfunded accrued liablity 8,174,228$ -$
Hire date
Benefit formula
Benefit vesting schedule
January 1, 2013
Prior to On or After
January 1, 2013
Required employee
Benefit payments
Monthly benefits as a percentage
Required employer
Retirement age
Safety – Fire
3.0% at 50 2.7% at 57
5 years of service 5 years of service
Monthly for life Monthly for life
50 - 55+ 50 - 57+
of eligible compensation 3.00% 2.00% to 2.70%
contribution rates 8.99% 13.75%
contribution rates plus 25.640% 13.660%
unfunded accrued liablity 5,374,991$ 22,960$ Prior to On or After
Required employer
January 1, 2013 January 1, 2013
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits as a percentage
Required employee
Hire date
Benefit formula
145
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) C. Contributions (Continued)
At June 30, 2022 (measurement date), the following employees were covered by the benefit terms of the Plan:
Plan Members
Miscellaneous
Plan
Safety Plan -
Police Safety Plan - Fire
Active 918 212 125 Transferred 700 37 32 Terminated 1,417 46 17 Retired and beneficiaries 1,187 310 144 TOTALS 4,222 605 318 Number of Members
D. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
Mortality Rate Table1 The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to
2015.
Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
2.75% thereafter
1 The mortality table was developed based on CalPERS specific data. The table includes 15 years of mortality improvements using 90% of Society of Actuaries Scale MP-2016.
All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial exper ience study for the period from 1997 to 2011, including updates to salary increase, mortality, and retirement rates. The Experience Study report can be obtained at CalPERS' website under Forms and Publications. 146
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) E. Discount Rate and Long-Term Expected Rate of Return
The discount rate used to measure the total pension liability was 6.90%. 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, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building block method in which expect ed future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. 147
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-119-
III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) E. Discount Rate and Long-Term Expected Rate of Return (Continued) The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
Current Strategic
Asset Class Allocation
Global Equity Cap-weighted 30.0% 4.5%
Global Equity Non-Cap-weighted 12.0% 3.8%
Private Equity 13.0% 7.3%
Treasury 5.0% 27.0%
Mortgage-backed Securities 5.0% 50.0%
Investment Grade Corporates 10.0% 1.6%
High Yield Bonds 5.0% 2.3%
Emerging Market Debt 5.0% 2.5%
Private Debt 5.0% 3.6%
Real Assets 15.0% 3.2%
Leverage -5.0% -0.6%
(1) An expected inflation of 2.3% used for this period
(2) Figures are based on the 2021-22 Asset Liability Management Study Return(1, 2)
Rate of
148
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
-120-
III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
The City's net pension liability is measured as the total pension liability less the pension plan's fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuaria l valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The following tables show the plan fiduciary net position and the net pensi on liabilities for the Miscellaneous and Safety-Police Plans and the respective c hanges in net pension liabilities recognized over the measurement period.
Miscellaneous Plan Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2021 (Valuation Date) 537,543,718$ 453,220,305 $ 84,323,413 $ Changes Recognized for the Measurement Period
Service cost 10,039,298 - 10,039,298 Interest on the total pension liability 37,384,019 - 37,384,019 Changes of assumptions 17,517,757 - 17,517,757 Differences between expected and actual
experience (4,168,587) - (4,168,587) Net Plan to plan resource movement - - - Employer contributions - 16,634,303 (16,634,303) Employee contributions (paid by employer) - 4,411,331 (4,411,331) Net investment income - (34,125,051) 34,125,051 Benefit payments, included refunds of -
employee contributions (28,230,318) (28,230,318) - Administrative expense - (282,329) 282,329 Other miscellaneous income/(expenses) - - - Net changes 32,542,169 (41,592,064) 74,134,233 Balance at June 30, 2022 (Measurement Date) 570,085,887$ 411,628,241 $ 158,457,646 $
149
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Retirement System (Continued) F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Safety – Police Plan Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2021 (Valuation Date) 429,794,655$ 379,285,078 $ 50,509,577 $ Changes Recognized for the Measurement Period
Service cost 9,872,913 - 9,872,913
Interest on the total pension liability 30,080,445 - 30,080,445 Changes of assumptions 17,360,183 - 17,360,183
Differences between expected and actual
experience (6,075,674) - (6,075,674)
Employer contributions - 14,208,396 (14,208,396)
Employee contributions (paid by employer) - 2,775,823 (2,775,823) Net investment income (28,731,512) 28,731,512
Benefit payments, included refunds of
employee contributions (20,134,275) (20,134,275) - Administrative expense - (236,272) 236,272
Other miscellaneous income/(expenses) - - -
Net changes 31,103,592 (32,117,840) 63,221,432 Balance at June 30, 2022 (Measurement Date) 460,898,247$ 347,167,238 $ 113,731,009 $ The following shows the Safety – Fire Plan's proportionate share of the risk pool collective net pension liability over the measurement period.
Safety – Fire Plan Proportionate
Share of the
Total Pension Plan Fiduciary Net Pension Collective Net Liability Net Position Liability/(Asset) Pension Liability Balance at June 30, 2021
(Valuation Date) 183,650,667 $ 143,560,254 $ 40,090,413 $ 0.74128% Net changes during 2022-2023 11,062,540 (13,873,539) 24,936,079 0.17832% Balance at June 30, 2022
(Measurement Date) 194,713,207$ 129,686,715 $ 65,026,492 $ 0.56296% 150
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The City's proportionate share of the collective net pension liability was determined by CalPERS based on the following allocation methodology:
The schedules of employer allocation by rate plan include three ratios:
(1) Actuarial Accrued Liability - Determined based on the Actuarial Accrued Liability from the most recent Actuarial Valuation Report as of June 30, 2021 used for funding purposes.
(2) Market Value of Assets - Determined based on the sum of the Market Value of Assets (MVA) from the most recent Actuarial Valuation as June 30, 2021 used for funding purposes plus supplemental payments made by employers during the current measurement period to r educe their unfunded actuarial accrued liabilities.
(3) Contributions - Determined based on the legally or statutorily required employer contributions for the fiscal year ended June 30, 2022, including reported contribution adjustments and suspended payroll information. Legally or statutorily required employer contributions were determined by multiplying the employer's contribution rate by the annual benefit compensat ion (payroll) for the fiscal year and excluding payments for benefit improvements known as Golden Handshakes, which CalPERS cons iders to be separately financed employer-specific liabilities.
The total pension liability was allocated based on the rate plan's share of the Actuarial Accrued Liability. The fiduciary net position was allocated based on the rate plan's share of the Market Value of Assets. The net pension liability was derived by subtracting the fiduciary net position from the total pension liability. Deferred outflows of resources, deferred inflows of resources, and pension expense were allocated based on the rate plan's share of contributions.
151
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2023, the Cit y recognized pension expense (benefit) of $20,377,340, $14,385,695, $(2,520,788) for the Miscellaneous, Safety – Police, and Safety – Fire Plans, respectively. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resource s related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent
to the measurement date:
Miscellaneous Plan 18,514,246$ -$
Safety – Police 14,661,488 -
Safety – Fire 8,186,822 -
Net difference between projected and actual
earnings on pension plan investments:
Miscellaneous Plan 20,707,333 -
Safety – Police 17,527,399 -
Safety – Fire 10,268,592 -
Changes of assumptions
Miscellaneous Plan 10,218,692 -
Safety – Police 12,908,854 -
Safety – Fire 6,556,639 -
Differences between expected and actual experiences
Miscellaneous Plan - 2,471,752
Safety – Police 268,536 7,865,538
Safety – Fire 2,691,211 706,136
Change in proportion
Safety – Fire 50,589 392,529
Difference between the employer's contributions and the employer's proportionate share of contributions
Safety – Fire 165,409 1,203,433
TOTALS 122,725,810$ 12,639,388 $
152
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Re tirement System (Continued) F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The deferred outflows of resources relat ed to contributions subsequent to the measurement date of $41,362,556 will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Deferred Outflows/
(Inflows) of Resources
2023 8,860,229$
2024 5,165,660
2025 1,404,214
2026 13,024,170
2027 -
TOTAL 28,454,273$
Deferred Outflows/
(Inflows) of Resources
2023 4,058,878$
2024 4,082,473
2025 3,743,323
2026 10,954,577
2027 -
TOTAL 22,839,251$
Deferred Outflows/
(Inflows) of Resources
2023 5,194,693$
2024 3,856,622
2025 2,115,054
2026 6,263,973
2027 -
TOTAL 17,430,342$
Measurement Period
Ending June 30
Miscellaneous Plan
Safety – Police
Safety – Fire
Measurement Period
Ending June 30
Measurement Period
Ending June 30
153
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) California Public Employees' Retirement System (Continued) G. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90% , as well as what t he net pension liability would be if it were calculated using a disc ount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:
Discount Current Discount
Rate - 1% Discount Rate Rate + 1%
(5.90%) (6.90%) (7.90%)
Net Pension Liability (Asset)
Miscellaneous Plan 236,269,993$ 158,457,646$ 94,675,987$ Safety – Police 179,551,892 113,731,009 60,189,968 Safety – Fire 91,916,082 65,026,492 43,050,328 TOTALS 507,737,967$ 337,215,147 $ 197,916,283 $
2. Retirement Enhancement Plan
A. Plan Description
The City established a Retirement Enhancement Plan (REP), single-employer defined benefit pension plan, effectiv e January 1, 2003 for selected groups of miscellaneous employees (non-safety), Service Employees International Union ( SEIU), International Union of Operating Engi neers (IUOE), Management, and one of the two groups of Confidential employees. REP is a defined be nefit 401(a) tax-qualified multiple agency trust. It meets the requirem ents of a pension trust under the California Government Code. The plan provides supplemental reti rement benefits in addition to PERS. A separate report was not issued for the Retirement Enhancement Plan; therefore, the notes to the financial statem ents are included below. The Cit y reports the R etirement
Enhancement Plan as a pension trust fund in the fiduciary funds financial statements. 154
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Retirement Enhancement Plan (Continued)
A. Plan Description (Continued)
Authorized Investments
For the Retirement Enhancement Plan, the specific investments are managed by the trustee under guidelines approved by the City as follows:
Risk tolerance Market risk
Time horizon Long term
Income of liquidity needs As requested
Account of trust restrictions None
Unique needs and circumstances None
Investment objective Balanced
Strategic ranges 0%-20% Cash
25%-45% Fixed income
50%-70% Equity
Acceptable investments Individual stocks
Individual bonds
Trustee funds
External funds
Index-based securities including
Exchange-Traded Funds (ETF)
Fixed income guidelines Maturity range 2-15 years
Duration range 4-7 years
Investment grade - minimum credit quality
Equity guidelines The core portion of the equity allocation will consist of individual issues. Actively-
managed mutual funds will be utilized for
other market segments in accordance
with the trustee's tactical strategy.
The primary goals of the balanc ed investment objective are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of the total return, although growth through capital appreciation is equally important.
B. Benefits Provided
For employees meeting the eligibility requirements, the plan provides a benefit equal to the "3% at 60" plan factor (formula is a static 3% at age 60 and older), less the PERS "2% at 55" plan factors for all years of City service plus any military service purchased through PERS (prior to July 1, 2003) while an employee of the City of Oxnard. 155
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Retirement Enhancement Plan (Continued)
B. Benefits Provided (Continued)
Eligibility for an immediate benefit is defined as reaching age 50, completing five years of Oxnard service, and retiring concurrently from both the City and PERS after leaving City employment. In addition, a deferred benefit would be available to participants who complete five years of service. The City has full discretionary authority to control, amend, modify, or terminate this plan at any time.
At June 30, 2023, the following employees were covered by the benefit:
Number of
Description Members
Active members 232
Inactives entitled to benefit payments 180
Inactives currently receiving benefit payments 437
TOTAL 849
C. Contributions
Employees and the City contribute a total of 8% of eligible employees' gross wages.
Current employee and City contributions by employee groups are as follows:
City Employee
Contributions Contributions
IUOE 2.70% 5.30%
SEIU 3.50% 4
.50%
Ma
nagement and confidential 3.00% 5.00%
Confidential - hourly 2.50% 5.50%
In addition, the City is required to contribute the remaining amounts necessary to fund the benefit to its members using the actu arial basis recommended by REP actuarial consultants. The actuarially determined contribution for the fiscal year ended June 30, 2023 was 16.2% of eligible employee gross wages. The City contributed $2,609,609 to REP for the year ended June 30, 2023.
156
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Retirement Enhancement Plan (Continued)
D. Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 total pension liabilities were based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal, Level % of pay
Actuarial Assumptions
Contribution Policy City contributes full ADC
Discount Rate and Long-Term Expected Rate
of Return on Assets 5.75% at June 30, 2023
5.75% at June 30, 2022
Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
General Inflation 2.5% annually
Mortality, Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Mortality projected fully generational with Scale MP-2021
Salary Increases Aggregate - 2.75% Annually
Merit - CalPERS 2000-2019 Experience Study
E. Discount Rate
The discount rate used to measure the tota l pension liability for the Plan was 5.75%.
The pension trust is projected to have suffici ent assets to pay benefits per the Plan's current contribution policy.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 60.00% 4.56%
Fixed Income 40.00% 0.78%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 5.75%
157
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Retirement Enhancement Plan (Continued)
F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
The City's net pension liability is measured as the total pension liability less the pension plan's fiduciary net position. The net pensio n liability of the Retirement Enhancement Plan is measured as of June 30, 2023, and the total pension liability for the Pl an used
to calculate the net pension lia bility was determined by an actuarial valuation as of June 30, 2021.
The following table shows the net pension liabi lities for the Plan and the respective changes in net pension liabilities recognized over the measurement period.
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 112,615,803$ 96,434,721 $ 16,181,082 $ Changes Recognized for the Measurement Period
Service cost 1,421,253 - 1,421,253
Interest on the total pension liability 6,438,258 - 6,438,258 Changes of assumptions - -
Differences between expected and actual
experience - - -
Employer contributions - 2,609,609 (2,609,609)
Employee contributions (paid by employer) - 1,510,731 (1,510,731) Net investment income - 8,595,013 (8,595,013)
Benefit payments, included refunds of
employee contributions (4,134,708) (4,134,708) - Administrative expenses -
(188,162) 188,162
Net changes 3,724,803 8,392,483 (4,667,680) Balance at June 30, 2023 (Measurement Date) 116,340,606$ 104,827,204 $ 11,513,402 $ 158
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Retirement Enhancement Plan (Continued)
F. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
For the year ended June 30, 2023, The City recognized pension expense of $3,364,497, for the Retirement Enhancement
Plan. At June 30, 2023, the City reported
deferred outflows of resources and deferred in flows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net difference between projected
and actual earnings on pension
plan investments 3,133,349$ -$
Changes in assumptions 324,818 171,826
Differences between expected and
actual experiences 603,554 -
TOTALS 4,061,721$ 171,826 $
Amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period Deferred Outflows/
Ending June 30 (Inflows) of Resources
2024 1,037,559$
2025 303,667
2026 3,159,837
2027 (611,168)
TOTAL 3,889,895$
G. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 5.75% , as well as what t he net pension liability would be if it were calculated using a disc ount rate that is 1 percentage-point lower (4.75%) or 1 percentage-point higher (6.75%) than the current rate:
Current
Discount Rate - 1% Discount Rate Discount Rate + 1%
(4.75%) (5.75%) (6.75%)
Net Pension Liability 24,990,415$ 11,513,402 $ 292,663 $ 159
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued)
3. Deferred Compensation Plan
The City sponsors a deferred compensation plan that qualifies under Section 457(b) of the Internal Revenue Code (IRC). The Plan accepts payroll-deducted contributions for participant-directed investing. Contributions are limited to an annual maximum amount as established under the IRC. Employee salary reduction contributions are tax deferred and are immediately 100% vested. The assets of the Plan are held in trust for the exclusive benefit of plan participants and thei r beneficiaries. Plan assets are not the property of the City or subject to the claims of the City's general creditors.
4. Post-employment Benefits Other than Pensions (OPEB) A. Plan Description
The City has established the City of Oxnard Retiree Health Insurance Plan, a single- employer defined benefit health care plan administered through CalPERS. Employees who retire from the City and receive a CalPERS pension are eligible for post- employment medical benefits. Retirees can enroll in any of the available CalPERS medical plans. This benefit continues for t he life of the retiree and surviving spouse.
Benefit provisions for CalPERS are established by the Public Employees Medical and Hospital
Care Act (PEMHCA).
B. Benefits Provided
Employees become eligible to retire and receive the City-paid healthcare benefits upon attainment of age 50 and five years of covered CalPERS service. Benefits are paid for the lifetime of the retiree, spouse or surviving spouse, and dependents up to the age of
26. The City's contribution on behalf of all eligible retirees and surviving spouses is the same as its contribution for active employees ($149 for 2022 and $151 for 2023, indexed by the Medical CPI thereafter.)
The City contributes the minimum amount
allowed under Government Code Section
22825 of the Public Employ ees Medical and Hospital Care Act. The required contribution is based on pay-as-you-go fi nancing requirements. Retirees must contribute any premium amounts in excess of the City contribution. No assets are accumulated in a trust that meets the criteria in Paragraph 4 of GASB Statement No.
75. C. Employees Covered by Benefit Terms
At June 30, 2022, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefit payments 405 Active plan members 1,179
1,584
160
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Post-employment Benefits Other than Pensions (OPEB) (Continued) D. Total OPEB Liability
The City's total OPEB liability of $49,001,476
was measured as of June 30, 2022, and
was determined by an actuarial valuation as of July 1, 2021.
Actuarial assumptions and other inputs. The total OPEB liabi lity in the July 1, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Actuarial cost method Entry Age, Level Percent of Pay
Valuation of fiduciary net
position
No assets held in an irrevocable trust as of the
measurement date
Recognition of deferred inflows
and outflows of resources
Closed period equal to the average of the expected
remaining service lives of all employees provided
with OPEB
Salary increases 3.00 percent
Inflation rate 2.75 percent
Healthcare cost trend rate 4.00 percent for 2022-2023; 5.20 percent for 2024- 2069; 4.00 percent for 2070 and later years;
Medicare ages: 4.00 percent for all years.
The actuarial assumptions used in the July 1, 2021 valuation were based on a review of plan experience during the period July 1, 2019 to June 30, 2021. 161
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Post-employment Benefits Other than Pensions (OPEB) (Continued) E. Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2021 61,762,596$
Changes for the year:
Service Cost 3,402,813
Interest 1,241,427
Changes of benefit terms -
Differences between expected and actual experience -
Changes in assumptions or other inputs (16,385,002)
Benefit payments (1,020,358)
Net changes (12,761,120)
Balance at June 30, 2022 49,001,476$
Sensitivity of the total OPEB liability to changes in the discoun t rate. The following
presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a disc ount rate that is 1 percentage point lower (2.69 percent) or 1 percentage point higher (3.69 percent) than the current discount rate (4.69 percent):
1% Decrease Discount Rate 1% Increase
(2.69%) (3.69%) (4.69%)
Total OPEB liability 57,403,567$ 49,001,476$ 42,312,313$ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates:
-1% Current +1%
3.00% for 2022-2023, 4.00% for 2022-2023, 5.00% for 2022-2023,
4.20% for 2024-2069, 5.20% for 2024-2069, 6.20% for 2024-2069, and Decreasing and Decreasing and Decreasing
to 3.00%; to 4.00%; to 5.00%;
Medicare at 2.00% Medicare at 3.00% Medicare at 4.00%
for all years for all years for all years
Total OPEB Liability 41,045,343$ 49,001,476$ 59,332,519$ Trend Rate
162
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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III. DEFINED BENEFIT PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued) Post-employment Benefits Other than Pensions (OPEB) (Continued) F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended
June 30, 2023, the City recognized an OPEB expense of
$4,574,273. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent
to the measurement date 1,054,697$ -$
Differences between expected and
actual experience 1,786,258 1,811,263
Changes of assumptions or other inputs 10,616,377 15,344,371 Total 13,457,332$ 17,155,634 $
The deferred outflows of resources relat ed to OPEB contributions subsequent to the measurement date of $1,054,697 will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2023.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year ended June 30
2024 (69,975)$
2025 (69,975)
2026 (69,975)
2027 163,391
2028 (758,190)
Thereafter (3,948,275)
(4,752,999)$
163
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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IV. RISK MANAGEMENT
The City provides general liability and workers' compensation insurance under self- insurance programs with an annual limit p
er occurrence of $1 million for each program.
Excess insurance in the layer of $1 million to $15 million per occurrence/$18 million annual aggregate is purchased for general liability claims and statutory coverage is purchased for workers' compensation claims. The City contracts with outside service agencies to assist in the administration of the se lf-insurance programs. Estima ted liabilities related to outstanding workers' compensat ion and public liability claims , including estimates for incurred but not reported clai ms, are based upon actuarial studies and are recorded in internal service funds.
All funds of the City participate in general liability and workers' compensation insurance programs and make payments to internal service funds on the basis of loss experience and exposure. The total unpaid claims and claims adjustment expense liability (long-term obligations) of $44,559,232 recor ded at June 30, 2023, is based on results of actuarial studies and includes an estimate for claims in curred but not reported at the balance sheet date. Claims liabilities ar e calculated considering the effect s of inflation, recent claims settlement trends including frequency and amount of pay outs, and other economic and societal factors. General liability and workers' compensation liabilities are carried at present value using a discount rate of 1.0%.
In addition, the City is in compliance with the requirements of G ASB Statement No. 10, which requires that a liability for claims be reported if informa tion prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated.
A. General Liability
The City is self-insured for general liability claims up to $1,000,000. The City purchases commercial excess liability insurance with limits of $25 million per occurrence. Self- insured general liability claims are administered through a third-party administrator, with the City Attorney’s approval required for settlements over $15,000. Litigated claims are settled directly through the City Attorney’s Office.
The City's excess general liability insuranc e premium for Fiscal Year 2022-2023, inclusive of brokerage fees, was $2,600,504. During the past five-year period, the average claims filed each year for general liability amounted to 181 claims totaling $1,403,855 per year (an average of $7,756 per claim). In addition, there have been no insurance settlements that have exceeded the City's insurance coverage for each of the past three years.
164
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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IV. RISK MANAGEMENT (Continued)
A. General Liability (Continued)
The total unpaid claims and claims adjustment expense liability (long-term obligations) recorded at June 30, 2023 was $7,388,152. The following schedule presents the changes in self-insurance claims liabilities for the past two years:
PUBLIC LIABILITY AND
PROPERTY DAMAGE
FY 2022-2023 FY 2021-2022
Unpaid claims and claims adjustment expenses - July 1 6,518,368$ 6,344,805 $ Incurred Claims and Claims Adjustment Expenses
Increase (decrease) in provision for insured events 658,045 162,903 Increase (decrease) in actuarially incurred but not
reported claims (IBNR) 211,739 10,660
Total Incurred Claims and Claims Adjustment Expenses 869,784 173,563 Unpaid claims and claims adjustment expenses - June 30 7,388,152 $ 6,518,368 $ CLAIMS AND JUDGMENTS DUE WITHIN ONE YEAR 2,592,113$ 2,208,342 $ B. Workers' Compensation
The City is self-insured for workers' compensation claims up to $1,000,000. For claims over $1,000,000, the City has purchased excess workers' compensation insurance through PRISM, a California risk-sharing Jo int Powers Authority. The claims are processed by a third-party administrator similar to general liability claims.
The City's premium for workers' compensation insurance coverage in Fiscal Year 2022- 2023 was $623,535. Within the City's self-insured program for workers' compensation, there has been an average of 285 claims filed per year for the past five years, with an average of approximately $5,704, 824 per year in total repor ted losses (an average of $20,017 per claim). In addition, there hav e been no settlements that have exceeded the City's insurance coverage for each of the past three years.
The total unpaid claims and claims adjustment expense liability (long-term obligations) recorded at June 30, 2023 was $37,171,080.
165
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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IV. RISK MANAGEMENT (Continued)
B. Workers' Compensation (Continued)
The following schedule presents the changes in self-insuranc e claims liabilities for the past two years:
WORKERS'
COMPENSATION
FY 2022-2023 FY 2021-2022
Unpaid claims and claims adjustment expenses - July 1 29,583,599$ 28,919,771 $ Incurred Claims and Claims Adjustment Expenses
Increase (decrease) in provision for insured events 4,870,491 (827,181) Increase (decrease) in actuarially incurred but not
reported claims (IBNR) 2,716,990 1,491,009
Total Incurred Claims and Claims Adjustment Expenses 7,587,481 663,828 Unpaid claims and claims adjustment expenses - June 30 37,171,080 $ 29,583,599 $ CLAIMS AND JUDGMENTS DUE WITHIN ONE YEAR 6,794,132$ 6,222,498 $ V. OTHER INFORMATION
A. Commitments and Contingencies
As of June 30, 2023, the City had significant construction commitments as follows:
AMOUNT
Governmental Activities 166,188,924$
Water 43,457,804
Wastewater 101,059,407
Environmental Resources 4,985,398
Golf Course 588,786
Information Systems 293,487
TOTAL 316,573,806$
166
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
A. Commitments and Contingencies (Continued)
The City uses “encumbrances” to contro l expenditure commitments for the year.
Encumbrances represent commitments rela ted to contracts not yet performed and purchase orders not yet filled. Commitments for such expenditures are encumbered to reserve applicable appropriations. As of June 30, 2023, total encumbrances for the governmental and proprietary funds are reported as follows:
AMOUNT
GOVERNMENTAL FUNDS
General Fund* 3,210,885$
Developer Fees 1,325,694
State and Federal Grants 1,679,853
Nonmajor Funds 14,871,664
TOTAL GOVERNMENTAL FUNDS 21,088,096$
PROPRIETARY FUNDS
Water funds 12,453,902 $
Wastewater funds 50,723,026
Environmental resources funds 338,841
TOTAL PROPRIETARY FUNDS 63,515,769$
TOTAL INTERNAL SERVICE FUNDS 543,145$
* Includes $1,073,364 of Measure "O" Encumbrances
There are various lawsuits and claims pending against the City. Management believes that all contingencies requiring accrual or disclosure are reflected in these financial statements.
The City has received significant financial as
sistance from numerous federal and state
agencies in the form of grants and entitlements. The disbursement of funds received under these programs generally require compliance with terms and conditions specified in the grant agreements and are subject to audit by grantor agencies. Any disallowed claims resulting from such audits could becom e a liability of the Cit y. However, in the opinion of management, liabilities resulting from disallowed claims, if any, will not have a material effect on the City's financial position at June 30, 2023. 167
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
B. Risk and Uncertainties
Measure M and N Litigation
In City of Oxnard v. Starr , the City sought a court determi nation that two initiatives approved by voters in November 2020 were unl awful uses of the initiative power.
Measure M restricts when and how the City conducts meetings governed by the Ralph M.
Brown Act. Measure N conc erns the City’s Measure O sales tax, which the voters approved in 2008. In particular, it ties M easure O’s continued existence to improving the City’s streets and alleys to specified levels in the Pave ment Condition Index on a precise schedule. If the City does not meet those timed goals, Measure O would expire early. The trial court ruled in the City's favor in August of 2021, finding both Measure M and Measure N invalid. Star r, the initiatives' proponent, appealed and, in a January 2023 decision, the Court of Appeal affirmed t he trial court’s ruling that Measure N is invalid, but it found Measure M is valid. Despite Starr achieving only partial success regarding meeting procedures, California law entitles his attorney to a fee award, which the parties stipulated in the amount of $465,000. De spite the City's success in preserving the projected average annual Meas ure O revenue of $ 21,000,000 until its sunset in March of 2029, California law pr ecludes Starr from being compelled to pay the City's attorney fees or otherwise be held accountable as the proponent of an invalid initiative.
Infrastructure Use Fee Litigation
In Starr v. City of Oxnard, petitioner challenged the legality of the City’s collection of infrastructure use fees (IUF) paid by the City’s utility funds (water, wastewater and solid waste enterprise funds) to the City’s General Fund and Street Maintenance Fund to cover unique and quantifiable burdens utilities place on the City’s general services. The writ petition, filed in 2017, alleged the IUF was not bas ed on actual costs associated with utility operations, and was thus unlawfu l. The court agreed with petitioner, and issued a writ of mandate in March of 2021 or dering the City to take three actions (1) reduce utility rates as necessary to remove any IUF included in those rates, (2) cease IUF transfers from the City’s utility funds to ot her funds, and (3) reimburse the utility funds for transfers made since FY 2014-2015, completing $36,470,697 in total reimbursements over a three-year period or by the end of FY 2023-2024. The City has complied with these orders as follows: (1) the City Council approved (a) issuance of a refund to utility customers totaling $7,112,897 for IUFs paid through rates from January 2020 through August 2021, and (b) lowering utility rates effective September 2021, such that projected rate revenue through t he end of FY 2021-2022 were reduced by $3,556,448; (2) the City ceased IUF transfers fr om its utility funds to other funds; and (3) as of fiscal year ending June 30, 2023, the City has transferred $28.7 million back to its utility funds. The City will fully transfer out the remaining balance of $7.7 million in the upcoming fiscal year 2024. The City also paid petiti oner’s counsel $355,000 in attorney fees and $16,335 toward his costs.
168
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
B. Risk and Uncertainties (Continued)
Infrastructure Use Fee Litigation (Continued)
The court issued its writ of mandate without prejudice to the City developing and implementing a credible and reasonable means of imposing an IUF that complies with Proposition 218. The Second Amended Final Judgm ent in the IUF litigation reserved the court’s jurisdiction to modify the judgment through a later evidentiary hearing and adjudication of whether a new IUF rectifies the deficienc ies in the previous IUF.
Accordingly, the City has developed a new IUF methodology focused on street impacts of utility operations that it intends to present to the court. If the court finds the new IUF complies with Proposition 218, the City will seek to modify the judgment to allow the City to implement the new IU F. If implemented, the new IUF would reduce the City’s reimbursement obligation and provide additional funding fo r street maintenance. The amount of such reduction or additional funding cannot be dete rmined at this time, but would be substantially less than the previous IUF fee the court found to be invalid.
Public Works Contracts
The City entered into three separate construction agreements fo r public projects within
the City. A public project is subject to the requirements of the Public Contract Code and the Standards and Specifications for Public Works Construction. The projects were formally noticed, and requested contractors send a sealed bid to the City. The projects were formally bid pursuant to the Uniform Construction Cost Accounting Act. Typically, a contractor is locked into the bid or cont ract amount it submitte d to the City for the public project. There are circ umstances when the contract price may increase when there is an increase in material costs, unforeseen circumstances that result in increased labor and equipment costs, or extra work. The Contractors on three separate projects requested additional funding for their work on the projects. The City has contested the Contractor’s requests for additional funding. There is a set procedure the contractor must follow prior to initiating any litigation against the City for funds in excess of the contract amount. In the matte r of the three projects t he likelihood of an unfavorable outcome is possible and the contingent lo ss is estimated to range between $775,000 and $1,175,000.
The City of Oxnard (“City”) entered into a construction agreement with Teichert Energy & Utilities Group (“Teichert”) for the La Colonia Neig hborhood Cast Iron Pipe Replacement Project (“La Coloni a Project”). This was a public project subject to the requirements of the Public Contract Code and the Standards and Specifications for Public Works Construction. The La Colonia Project was formally noticed, and requested contractors send a sealed bid to the City, and was formally bid pursuant to the Uniform Construction Cost Accounting Act.
169
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
B. Risk and Uncertainties (Continued)
Public Works Contracts (Continued)
Teichert was the lowest responsive and responsible bidder for the La Colonia Project, and the City awarded the contract to Teichert. Typically, a contractor is locked into the bid or contract amount it submitted to the City in its Bid for the public project. There are circumstances when the contra ct price may increase when there is an increase in material costs, unforeseen circumstances that result in increased labor and equipment costs, or extra work. The La Colonia Project was set to be completed in 90 working days.
Teichert claimed it encountered differing site conditions, among other items, that delayed the project by approximately 200 days. Teichert submitted a claim to the City demanding an additional $2.9 million in project funds. The demand was denied, and the parties demand, and engaged in mediation whic h was not successful. The next step would be f
or Teichert to file a lawsuit against the City. For this particular matter the likelihood of an unfavorable outcome is possible and the contingent loss is estimated to range between $350,000 and $1,800,000.
C. Notes to the Financial Statements - Successor Agency a. Reporting Entity
On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in acco rdance with AB 1X 26 as part of City resolution number 14,135, to oversee the wi nding down of the agency's affairs and liquidation of the agency's assets effect ive February 1, 2012. AB 1484 essentially transferred authority over the Successor Agency to an Oversight Board, also established pursuant to AB 1X 26 and the California Department of Finance. As specified in California Senate Bill 107 and beginning on July 1, 2018, all Oversight Boards in the County were consolidated into one Oversight B oard, the Ventura County Consolidated Oversight Board.
The 7-member Oversight Board is comprised of representatives of the local agencies from Ventura County cities, special dist ricts, and K-14 educational agencies. The County Oversight Board members have a fi duciary responsibility to holders of enforceable obligations, as well as to the local agencies that would benefit from property tax distributions fr om the former redevelopment project areas. Oversight boards direct the staff and approve the actions of the Su ccessor Agency.
170
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
C. Notes to the Financial Statements - Successor Agency (Continued) b. Cash and Investments
Cash and investments with fiscal agents of the Successor Agency are comprised of the following at June 30, 2023:
FAIR
VALUE
Deposits and investments 7,849,593$
Restricted investments with fiscal agents 3,584,739
TOTAL 11,434,332$
Detailed notes on cash and cash investments can be found in the City's notes to the financial statements.
c. Notes Receivable
Notes receivable consists of the following:
BALANCE BALANCE
JULY 1, 2022 ADDITIONS DELETIONS JULY 1, 2023
Heritage Square 66,982$ -$ -$ 66,982$
Baldwin Company 17,873 - - 17,873
Strand Cinemas 486,708 - (56,134) 430,574
Oxnard Theater Group 12,957,875 1,793,500 - 14,751,375 Allowance for uncollectible (12,957,875) (1,793,500) - (14,751,375) TOTALS 571,563$ - $ (56,134)$ 515,429 $ 171
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
C. Notes to the Financial Statements - Successor Agency (Continued) d. Capital Assets
Changes in the Successor Agency's capital assets for the year ended June 30, 2023 are as follows:
BALANCE BALANCE
JULY 1, 2022 INCREASES DECREASES JUNE 30, 2023
FIDUCIARY ACTIVITIES
Capital Assets, being depreciated
Buildings 905,636 $ -$ -$ 905,636$
Improvements other than
buildings 17,368,821 - - 17,368,821
Equipment and machinery 34,013 - - 34,013
Infrastructure 33,107,189 - - 33,107,189
Total Capital Assets, Being
Depreciated 51,415,659 - - 51,415,659
Less: Accumulated Depreciation
Buildings (593,355) (17,498) - (610,853)
Improvements other than
buildings (5,535,871) (441,111) - (5,976,982) Equipment and machinery (34,013) - - (34,013)
Infrastructure (15,308,792) (855,044) - (16,163,836) Total Accumulated Depreciation (21,472,031) (1,313,653) - (22,785,684) Total Capital Assets, being
depreciated, net 29,943,628 (1,313,653) - 28,629,975 TOTALS 29,943,628$ (1,313,653) $ - $ 28,629,975$ e. Long-Term Debt
The following is a summary of changes in the Successor Agency's long-term debt for the year ended June 30, 2023:
BALANCE BALANCE DUE WITNIN
JULY 1, 2022 ADDITIONS REDUCTIONS JUNE 30, 2023 ONE YEAR Tax allocation refunding
bonds Series 2004A 5,285,000$ - $ (960,000)$ 4,325,000$ 1,005,000$ Tax allocation bond
financing
Series 2006 13,060,000 - (670,000) 12,390,000 700,000 HERO project tax
allocation bonds
Series 2008 8,945,000
- (290,000) 8,655,000 295,000
TOTAL LONG-TERM
INDEBTEDNESS 27,290,000$ - $ (1,920,000)$ 25,370,000 $ 2,000,000 $ 172
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
C. Notes to the Financial Statements - Successor Agency (Continued) e. Long-Term Debt (Continued)
The summary annual debt service require ments are shown below for Successor Agency long-term debt:
YEAR PRINCIPAL INTEREST TOTAL
2024 2,000,000$ 1,205,881$ 3,205,881$
2025 2,095,000 1,111,950 3,206,950
2026 2,190,000 1,013,301 3,203,301
2027 2,295,000 909,487 3,204,487
2028 1,170,000 830,781 2,000,781
2029-2033 6,720,000 3,305,158 10,025,158
2034-2038 7,475,000 1,409,253 8,884,253
2039-2040 1,425,000 33,844 1,458,844
TOTALS 25,370,000$ 9,819,655 $ 35,189,655 $
Description of Long-term Debt
Tax Allocation Refunding Bonds, Series 2004A
Tax Allocation Refunding Bonds, Series 200 4A were issued on May 4, 2004 in the amount of $19,185,000. These are twenty-two-year bonds with a net interest cost of
4.58%. The bonds were issued to refinanc e the Tax Alloc ation Refunding Bonds,
Series 1994A and to finance additional redeve lopment activities within the Central City Revitalization and Downtown Project Area. The balance outstanding as of June 30, 2023 is $4,325,000.
As of June 30, 2023, the total future debt payments for the Tax Allocation Refunding Bonds, Series 2004A, including interest thereon, are as follows:
TAX ALLOCATION
REFUNDING BONDS
FISCAL 2004A
YEAR PRINCIPAL INTEREST TOTAL
2024 1,005,000$ 189,213 $ 1,194,213 $
2025 1,055,000 138,229 1,193,229
2026 1,105,000 84,769 1,189,769
2027 1,160,000 28,710 1,188,710
TOTALS 4,325,000$ 440,921 $ 4,765,921$
173
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
C. Notes to the Financial Statements - Successor Agency (Continued) e. Long-Term Debt (Continued)
Description of Long-term Debt (Continued)
2006 Tax Allocation Bond Financings
Local Obligation Revenue Bonds (2006 Tax Allocation Bond Financings) in the amount of $20,530,000 were issued on December
1, 2006 to purchase the following
obligations being issued simultaneously for: (1) the Oxnard Community Development Commission Ormond Beach Project Area Tax Allocation Bonds, Series 2006 in the amount of $5,750,000; (2) the Oxnard Community Development Commission Southwinds Project Area Tax Allocati on Bonds, Series 2006 in the amount of $3,290,000; and (3) the Oxnard Community Development Commission Historic Enhancement and Revitalization of Oxnard (HERO) Project Area Tax Allocation Bonds, Series 2006 in the amount of $11,490,000. The bonds were issued to finance redevelopment activities (street improvement projects) in the Ormond Beach Project Area, Southwinds Project Area and the HERO Redevelopment Project Areas. These bonds carry a net interest cost of 4. 424%, maturing on September 1, 2036. The outstanding balance as of June 30, 2023 is $12,390,000.
As of June 30, 2023, the total future debt payments for the Tax Allocation Bonds, Series 2006, including interest thereon, are as follows:
TAX ALLOCATION
BONDS
FISCAL SERIES 2006
YEAR PRINCIPAL INTEREST TOTAL
2024 700,000$ 611,740 $ 1,311,740 $
2025 725,000 582,292 1,307,292
2026 755,000 551,537 1,306,537
2027 785,000 519,082 1,304,082
2028 820,000 484,836 1,304,836
2029-2033 4,665,000 1,855,773 6,520,773
2034-2037 3,940,000 560,184 4,500,184
TOTALS 12,390,000$ 5,165,444 $ 17,555,444 $
174
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
C. Notes to the Financial Statements - Successor Agency (Continued) e. Long-Term Debt (Continued)
Description of Long-term Debt (Continued)
Tax Allocation Bonds, Series 2008
Tax Allocation Bonds, Series 2008 were issued on July 1, 2008 in the amount of $11,790,000 for the Oxnard Community Development Commission Historic Enhancement and Revitalization of Oxnard (HERO) Project Area. Proceeds from the sale of bonds are to be used to finance a 500-space parking structure to service a mixed-use retail/commercial development located within the River Park Specific Plan Area. These bonds carry a net interest cost of 4.849%, with a final maturity of September 1, 2038. The outstanding balanc
e as of June 30, 2023 is $8,655,000.
As of June 30, 2023, the total future debt payments for the Tax Allocation Bonds, Series 2008, including interest thereon, are as follows:
HERO PROJECT TAX
ALLOCATION BONDS
FISCAL SERIES 2008
YEAR PRINCIPAL INTEREST TOTAL
2024 295,000$ 404,928 $ 699,928 $
2025 315,000 391,429 706,429
2026 330,000 376,995 706,995
2027 350,000 361,695 711,695
2028 350,000 345,945 695,945
2029-2033 2,055,000 1,449,385 3,504,385
2034-2038 3,535,000 849,069 4,384,069
2039 1,425,000 33,844 1,458,844
TOTALS 8,655,000$ 4,213,290 $ 12,868,290 $
175
CITY OF OXNARD, CALIFORNIA
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED JUNE 30, 2023
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V. OTHER INFORMATION (Continued)
C. Notes to the Financial Statements - Successor Agency (Continued) f. Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. During the current year, the City performed calculations of excess investment earnings on various bonds and financin
gs. Liabilities were calculated for the issues and rebate payments were made as appropriate. No arbitrage liability existed at June 30, 2023.
The Successor Agency is in compliance with all significant covenants related to its debt issues.
g. Commitments and Contingencies
The Successor Agency is a defendant in various claims and legal actions arising in the normal course of operations. In the opinion of the Successor Agency Attorney and Oversight Board, the ultimate liability from such actions and cl aims will not have
a material adverse effect on the Successor Agency's financial position or operations.
The Successor Agency entered into an agreement with a developer that includes a guarantee to cover its lease expense up to $111,300 a month when the developer's revenues are not sufficient to cover its lease expense for a period of 25 years.
The Successor Agency has a reimbursem ent agreement with the developer of RiverPark to reimburse public improv ements (up to $10 million) and affordable housing (up to $4.25 million) for a combined maximum of $14.25 million. Through June 30, 2023, a total of $6.4 million has been repaid on the $10 million infrastructure amount, and a total of $2.9 millio
n repaid on the $4.25 million affordable housing
amount. Therefore, the remaining balance on the combined maximum commitment is $5.0 million.
D. Notes to the Financial Statements - Retirement Enhancement Defined Benefit Retirement Trust Fund
The City joined the Retirement Enhancement Plan (REP) effective January 1, 2003 for selected employee groups (see Note III for additional information on REP). In vestments
for the benefit of eligible employees are in a segregated account and invested under the guidelines authorized by the City.
176
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177
REQUIRED
SUPPLEMENTARY
INFORMATION
178
CITY OF OXNARD, CALIFORNIA
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
CALPERS MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PLAN AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS1
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2023 2022 2021 2020 2019 2018 2017 2016 2015
MEASUREMENT DATE June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30 , 2014 Total Pension Liability
Service Cost 10,039,298$ 9,098,206$ 8,599,200$ 8,704,606$ 8,114,517$ 7,747,249$ 7,242,480$ 7,317,452$ 7,507,381$ Interest 37,384,019 36,491,272 35,518,267 33,651,896 32,139,899 31,142,639 30,496,717 29,025,141 27,937,746 Changes in Assumptions 17,517,757 - - - (1,207,957) 26,464,012 - (7,345,091) - Difference Between Expected and Actual Experience (4,168,587) (240,462) 922,038 7,840,468 (1,859,096) (7,125,579) 1,414,899 (4,271,504) - Benefit Payments, Including Refunds of Member Contributions (28,230,318) (27,728,190) (25,357,357) (24,258,713) (22,807,471) (21,310,118) (19,526,906) (17,440,515) (16,205,985) Net Change in Total Pension Liability 32,542,169 17,620,826 19,682,148 25,938,257 14,379,892 36,918,203 19,627,190 7,285,483 19,239,142 Total Pension Liability, Beginning of Year 537,543,718 519,922,892 500,240,744 474,302,487 459,922,595 423,004,392 403,377,202 396,091,719 376,852,577 Total Pension Liability, End of Year 570,085,887 537,543,718 519,922,892 500,240,744 474,302,487 459,922,595 423,004,392 403,377,202 396,091,719 Plan Fiduciary Net Position
Contributions - Employee 4,411,331 4,101,994 3,375,086 4,232,480 3,693,461 3,542,435 3,490,315 3,701,640 3,730,681 Contributions - Employer 16,634,303 14,868,691 12,795,434 11,842,706 9,799,970 8,433,832 7,657,753 7,2 37,123 6,858,454 Net Investment Income (34,125,051) 84,746,913 18,307,582 22,997,256 28,185,278 34,461,764 1,772,032 7,288,474 47,653,092 Benefit Payments, Including Refunds of Member Contributions (28,230,318) (27,728,190) (25,357,357) (24,258,713) (22,807,471) (21,310,118) (19,526,906) (17,440,515) (16,205,985) Plan to Plan Resource Movement - - 215,792 (95,340) (823) (37,118) - 216,371 - Administrative Expenses (282,329) (377,207) (519,905) (252,854) (525,103) (461,160) (194,504) (445,021) - Other Miscellaneous Income/(Expenses)2 - - - 823 (997,179) - - - - Net
Change in Plan Fiduciary Net Position (41,592,064) 75,612,201 8,816,632 14,466,358 17,348,133 24,629,635 (6,801,310) 558,072 42,036,242 Total Plan Fiduciary Net Position, Beginning of Year3 453,220,305 377,608,104 368,791,472 354,325,114 336,976,981 312,347,346 319,148,656 318,590,584 276,554,342 Total Plan Fiduciary Net Position, End of Year 411,628,241 453,220,305 377,608,104 368,791,472 354,325,114 336,976,981 312,347,346 319,148,656 318,590,584 Net Pension Liability - Ending 158,457,646$ 84,323,413$ 142,314,788$ 131,449,272$ 119,977,373$ 122,945,614$ 110,657,046$ 84,228,546$ 77,501,135$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 72.20% 84.31% 72.63% 73.72% 74.70% 73.27% 73.84% 79.12% 80.43% Covered Payroll4 57,334,653 56,545,716 53,378,028 54,291,812 51,315,482 49,376,987 52,250,772 51,974,236 50,863,015 Net Pension Liability as a Percentage of Covered Payroll 276.37% 149.12% 266.62% 242.12% 233.80% 248.99% 211.78% 162.06% 152.37% 1 2
3 Includes any beginning of year adjustment.
4 Notes to Schedule:
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 was 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 was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Fina ncial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of act ivity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-tim e expense as a result of the adoption of GASB 75.
Additionally, CalPERS employees participate in various State 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 activi ty related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional Years will be added as they become available in the future.
For the year ended on the measurement date. Includes one year's payroll growth using 2.80 percent payroll growth assumption for fiscal year ended June 30, 2022, 2.75% payroll growth for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth ass umption for fiscal years ended June 30, 2014-17.
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. 179
CITY OF OXNARD, CALIFORNIA
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
CALPERS SAFETY PLAN (POLICE) - AGENT MULTIPLE-EMPLOYER DEFINED BENEFIT PLAN AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS1
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2023 2022 2021 2020 2019 2018 2017 2016 2015
MEASUREMENT DATE June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability
Service Cost 9,872,913$ 9,133,023$ 9,489,708$ 9,248,622$ 8,907,068$ 9,267,287$ 8,500,329$ 8,136,777$ 8,379,851$ Interest 30,080,445 29,032,165 28,039,082 26,990,670 25,547,337 24,738,857 24,033,111 22,863,767 21,472,209 Changes in Assumptions 17,360,183 - - - (2,084,250) 22,004,979 - (5,993,052) - Difference Between Expected and Actual Experience (6,075,674) (4,322,687) (3,749,835) 2,416,832 (4,583,299) (8,176,814) (1,859,473) 2,113,477 - Benefit Payments, Including Refunds of Member Contributions (20,134,275) (19,696,563) (18,580,424) (17,313,398) (16,397,629) (15,304,527) (14,506,274) (13,568,341) (12,980,263) Net Change in Total Pension Liability 31,103,592 14,145,938 15,198,531 21,342,726 11,389,227 32,529,782 16,167,693 13,552,628 16,871,797 Total Pension Liability, Beginning of Year 429,794,655 415,648,717 400,450,186 379,107,460 367,718,233 335,188,451 319,020,758 305,468,130 288,596,333 Total Pension Liability, End of Year 460,898,247 429,794,655 415,648,717 400,450,186 379,107,460 367,718,233 335,188,451 319,020,758 305,468,130 Plan Fiduciary Net Position
Contributions - Employee 2,775,823 2,702,869 2,674,167 2,828,130 2,612,259 2,604,837 2,556,415 2,531,718 2,505,819 Contributions - Employer 14,208,396 14,870,411 14,126,597 13,510,982 11,821,073 10,886,085 10,491,299 9,907,130 8,947,610 Net Investment Income (28,731,512) 70,683,062 14,929,602 18,441,113 22,137,131 26,271,673 1,190,876 5,184,911 34,904,812 Benefit Payments, Including Refunds of Member Contributions (20,134,275) (19,696,563) (18,580,424) (17,313,398) (16,397,629) (15,304,527) (14,506,274) (13,568,341) (12,980,263) Plan to Plan Resource Movement - - - - (652) 37,118 - - - Administrative Expenses (236,272) (310,706) (420,539) (200,556) (408,348) (351,254) (145,244) (268,265) - Other Miscellaneous Income/(Expenses)2 - - - 652 (775,460) - - - - N
et Change in Plan Fiduciary Net Position (32,117,840) 68,249,073 12,729,403 17,266,923 18,988,374 24,143,932 (412,928) 3,787,153 33,377,978 Total Plan Fiduciary Net Position, Beginning of Year3 379,285,078 311,036,005 298,306,602 281,039,679 262,051,305 237,907,373 238,320,301 234,533,148 201,155,170 Total Plan Fiduciary Net Position, End of Year 347,167,238 379,285,078 311,036,005 298,306,602 281,039,679 262,051,305 237,907,373 238,320,301 234,533,148 Net Pension Liability - Ending 113,731,009$ 50,509,577$ 104,612,712$ 102,143,584$ 98,067,781$ 105,666,928$ 97,281,078$ 80,700,457$ 70,934,982$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 75.32% 88.25% 74.83% 74.49% 74.13% 71.26% 70.98% 74.70% 76.78% Covered Payroll4 25,623,963 26,304,790 27,059,334 26,209,714 25,330,075 25,914,507 26,539,474 25,228,753 24,705,477 Net Pension Liability as a Percentage of Covered Payroll 443.85% 192.02% 386.60% 389.72% 387.16% 407.75% 366.55% 319.87% 287.12% 1 2
3 Includes any beginning of year adjustment.
4 Notes to Schedule:
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional Years will be added as they become available in the future.
During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (G ASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Additionally, CalPERS employees participate in various State 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 activi ty related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
For the year ended on the measurement date. Includes one year's payroll growth using 2.80 percent payroll growth assumption for fiscal year ended June 30, 2022, 2.75% payroll growth for fiscal years ended June 30, 2018-21; 3.00 percent payroll growth ass umption for fiscal years ended June 30, 2014-17.
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.
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 was 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 was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. 180
CITY OF OXNARD, CALIFORNIA
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS
CALPERS SAFETY PLAN (FIRE) - COST SHARING PLAN
AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS1
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2023 2022 2021 2020 2019 2018 2017 2016 2015
MEASUREMENT DATE June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 City's Proportion of the Collective Net Pension Liability 0.56296% 0.74128% 0.53361% 0.52967% 0.53113% 0.51309% 0.52499% 54.96200% 0.538 57% City's Proportionate Share of the Collective Net Pension Liability 65,026,492$ 40,090,413$ 58,058,911$ 54,275,806$ 51,180,914$ 50,884,705$ 45,427,479$ 37,725,705$ 33,512,523$ City's Covered Payroll2 13,392,657$ 12,212,495 $ 12,319,847 $ 12,168,197 $ 11,824,780 $ 10,987,654 $ 9,030,122 $ 9,283,898 $ 9,105,774 $ City's Proportionate Share of the Collective Net Pension Liability as a Percentage of its Covered Payroll 485.54% 328.27% 471.26% 446.05% 432.83% 463.11% 503.07% 406.36% 368.04% Plan Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 76.68% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% 1 2
Notes to Schedule:
For the year ended on the measurement date.
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional Years will be added as they become available in the future.
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.
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 was 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 was
7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. 181
CITY OF OXNARD, CALIFORNIA
SCHEDULE OF PLAN CONTRIBUTIONS - CALPERS
FOR THE FISCAL YEARS ENDED JUNE 301
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2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Actuarially Determined Contribution2 18,514,246$ 16,634,303 $ 14,868,691 $ 12,795,434 $ 11,842,706 $ 9,799,970 $ 8,433,832 $ 7,657,753 $ 7,237,123 $ 6,858,454 $ Contributions in Relation to the Actuarially
Determined Contribution (18,514,246) (16,634,303) (14,868,691) (12,795,434) (11,842,706) (9,799,970) (8,433,832) (7,657,753) (7,237,123) (6,858,454) Contribution Deficiency - $ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered Payroll3 66,011,164$ 57,334,653 $ 56,545,716 $ 53,378,028 $ 54,291,812 $ 51,315,482 $ 49,376,987 $ 52,250,772 $ 51,974,236 $ 50,863,015 $ Contributions as a Percentage of Covered Payroll 28.05% 29.01% 26.29% 23.97% 21.81% 19.10% 17.08% 14.66% 13.92% 13.48% Actuarially Determined Contribution2 14,661,488$ 14,208,396 $ 14,870,411 $ 14,126,597 $ 13,510,982 $ 11,821,073 $ 10,886,085 $ 10,491,299 $ 9,907,130 $ 8,947,610 $ Contributions in Relation to the Actuarially
Determined Contribution (14,661,488) (14,208,396) (14,870,411) (14,126,597) (13,510,982) (11,821,073) (10,886,085) (10,491,299) (9,907,130) (8,947,610) Contribution Deficiency - $ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered Payroll3 26,647,052$ 25,623,963 $ 26,304,790 $ 27,059,334 $ 26,209,714 $ 25,330,075 $ 25,914,507 $ 26,539,474 $ 25,228,753 $ 24,705,477 $ Contributions as a Percentage of Covered Payroll 55.02% 55.45% 56.53% 52.21% 51.55% 46.67% 42.01% 39.53% 39.27% 36.22% Actuarially Determined Contribution
2 8,186,822$ 7,530,821 $ 6,831,430 $ 6,970,489 $ 5,669,614 $ 4,922,875 $ 4,565,809 $ 4,204,589 $ 4,004,186 $ 4,004,186 $ Contributions in Relation to the Actuarially
Determined Contribution (8,186,822) (7,530,821) (6,831,430) (6,970,489) (5,669,614) (4,922,875) (4,565,809) (4,204,589) (4,004,186) (4,004,186) Contribution Deficiency -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered Payroll3 13,866,932$ 13,392,657 $ 12,212,495 $ 12,319,847 $ 12,168,197 $ 11,824,780 $ 10,987,654 $ 9,030,122 $ 9,283,898 $ 9,105,774 $ Contributions as a Percentage of Covered Payroll 59.04% 56.23% 55.94% 56.58% 46.59% 41.63% 41.55% 46.56% 43.13% 43.97% 1 2
3 For the year ended on the measurement date: 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, 2018-2021; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
MISCELLANEOUS PLAN
SAFETY PLAN - POLICE
SAFETY PLAN - FIRE
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional Years will be added as they become available in the future.
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. 182
CITY OF OXNARD, CALIFORNIA
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
RETIREMENT ENHANCEMENT PLAN - SINGLE-EMPLOYER DEFINED BENEFIT PLAN AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS1
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2023 2022 2021 2020 2019 2018 2017 2016 2015
MEASUREMENT DATE June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability
Service Cost 1,421,253$ 1,420,583$ 1,399,285$ 1,495,654$ 1,696,694$ 1,881,000$ 2,007,000$ 2,043,000$ 2,220,000$ Interest 6,438,258 6,161,761 6,200,597 6,042,463 5,646,888 5,961,000 5,715,000 5,545,000 5,238,000 Changes in Assumptions - (662,756) 5,197,076 - - 1,051,000 - 5,436,000 - Difference Between Expected and Actual Experience - 2,327,996 - - - (6,118,000) - (3,736,000) - Benefit Payments, Including Refunds of Member Contributions (4,134,708) (4,744,506) (4,989,012) (4,834,199) (4,328,954) (3,569,000) (4,068,000) (2,866,000) (2,599,000) Net Change in Total Pension Liability 3,724,803 4,503,078 7,807,946 2,703,918 3,014,628 (794,000) 3,654,000 6,422,000 4,859,000 Total Pension Liability, Beginning of Year, As Restated2 112,615,803 108,112,725 100,304,779 97,600,861 90,818,000 91,612,000 87,958,000 81,536,000 76,677,000 Total Pension Liability, End of Year 116,340,606 112,615,803 108,112,725 100,304,779 93,832,628 90,818,000 91,612,000 87,958,000 81,536,000 Plan Fiduciary Net Position
Contributions - Employee 1,510,731 1,610,537 1,643,999 2,023,945 2,076,972 2,343,000 2,513,000 2,922,000 2,731,000 Contributions - Employer 2,609,609 3,194,442 3,427,026 4,346,415 4,392,047 4,172,000 6,586,000 1,043,000 985,000 Net Investment Income 8,595,013 (12,582,805) 19,861,747 5,524,378 5,618,833 7,609,000 543,000 2,133,000 6,805,000 Benefit Payments, Including Refunds of Member Contributions (4,134,708) (4,744,506) (4,989,012) (4,834,199) (4,328,954) (3,569,000) (4,068,000) (2,866,000) (2,599,000) Administrative Expenses (188,162) (189,753) (100,193) (77,483) (74,067) (72,000) (80,000) (68,000) (65,000) Net Change in Plan Fiduciary Net Position 8,392,483 (12,712,085) 19,843,567 6,983,056 7,684,831 10,483,000 5,494,000 3,164,000 7,857,000 Total Plan Fiduciary Net Position, Beginning of Year, As Restated2 96,434,721 109,146,806 89,303,239 82,320,183 69,712,000 59,229,000 53,735,000 50,571,000 42,714,000 Total Plan Fiduciary Net Position, End of Year 104,827,204 96,434,721 109,146,806 89,303,239 77,396,831 69,712,000 59,229,000 53,735,000 50,571,000 Net Pension Liability/(Asset) - Ending 11,513,402$ 16,181,082$ (1,034,081)$ 11,001,540$ 16,435,797$ 21,106,000$ 32,383,000$ 34,223,000$ 30,965,000$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 90.10% 85.63% 100.96% 89.03% 82.48% 76.76% 64.65% 61.09% 62.02% Covered Payroll3 21,194,951 19,733,210 20,566,553 23,372,218 26,737,000 28,874,000 31,089,909 36,519,391 31,157,782 Net Pension Liability/(Asset) as a Percentage of Covered Payroll 54.32% 82.00% -5.03% 47.07% 61.47% 73.10% 104.16% 93.71% 99.38% 1 2
3 Notes to Schedule:
For the year ended on the measurement date.
GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional Years will be added as they become available in the future.
During Fiscal Year 2019-2020, the City moved the supplemental pension plan from PARS to Mass Mutual. The plan is a single-employer plan, which triggered the presentation and valuation requirements from GASB 67, Financial Reporting for Pension Plans. To present the plan in accordance with GASB 67 and GASB 68, an actuarial adjustment was recorded to change the measurement date and valuation date of the plan. The measurement date and valuation date are now the same date.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes, which occurred after June 30, 2017. This applies for voluntary benefit changes as well as any offers of Two Year Additional Service Credit (a.k.a Golden Handshakes).
183
CITY OF OXNARD, CALIFORNIA
SCHEDULE OF PLAN CONTRIBUTIONS - Retirement Enhancement Plan AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS1
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2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution 3,266,192$ 3,194,442$ 3,515,000$ 4,223,000$ 4,203,000$ 4,406,000$ 4,376,000$ 3,589,787$ 4,184,000$ Contributions in Relation to the Actuarially
Determined Contribution (2,609,609) (3,194,442) (3,427,026) (4,346,415) (4,271,191) (4,392,047) (4,314,000) (3,589,787) (1,043,000) Contribution Deficiency/(Surplus)2 656,583$ - $ 87,974$ (123,415)$ (68,191)$ 13,953$ 62,000$ -$ 3,141,000$ Covered Payroll3 21,194,951$ 19,733,210 $ 20,566,553 $ 23,372,218 $ 24,892,511 $ 26,737,000 $ 28,874,000 $ 31,089,909 $ 36,519,391 $ Contributions as a Percentage of Covered Payroll 12.31% 16.19% 16.66% 18.60% 17.16% 16.43% 14.94% 11.55% 2.86% 1 2
3 GASB Statement No. 68, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2015. Additional Years will be added as they become available in the future.
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.
For the 12-month period ended on June 30 of each year, as reported by the City. 184
CITY OF OXNARD, CALIFORNIA
SCHEDULE OF CHANGES IN THE CITY'S
TOTAL OPEB LIABILITY AND RELATED RATIOS
AS OF JUNE 30 FOR THE LAST TEN FISCAL YEARS1
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2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service Cost 3,402,813$ 2,837,493$ 2,150,451$ 1,772,005$ 1,967,866$ 1,779,949$ Interest 1,241,427 1,408,859 1,513,925 1,340,211 1,116,107 1,055,268 Changes in Benefit Terms - - - - - - Difference Between Expected and Actual Experience - (2,378,752) (9,059) 3,528,946 - - Changes in Assumptions (16,385,002) 5,708,710 5,726,271 5,299,408 (2,392,006) - Benefit Payments, Including Refunds of Member Contributions (1,020,358) (955,556) (925,981) (1,000,579) (931,942) (851,701) Net Change in Total OPEB Liability (12,761,120) 6,620,754 8,455,607 10,939,991 (239,975) 1,983,516 Total OPEB Liability, Beginning of Year, As Restated 61,762,596 55,141,842 46,686,235 35,746,244 36,120,738 34,137,222 Total OPEB Liability, End of Year 49,001,476 61,762,596 55,141,842 46,686,235 35,880,763 36,120,738 Plan Fiduciary Net Position
Contributions - Employer 1,020,358 955,556 925,981 1,000,579 931,942 - Net Investment Income - - - - - -
Benefit Payments, Including Implicit Subsidy (1,020,358) (955,556) (925,981) (1,000,579) (931,942) - Trustee Fees - - - - - -
Administrative Expenses - - - - - -
Net Change
in Plan Fiduciary Net Position - - - - - - Total Plan Fiduciary Net Position, Beginning of Year - - - - - - Total Plan Fiduciary Net Position, End of Year - - - - - - Net OPEB Liability - Ending 49,001,476$ 61,762,596$ 55,141,842$ 46,686,235$ 35,880,763$ 36,120,738$ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered Employee Payroll 98,675,659 94,051,309 93,553,694 85,907,755 83,423,271 83,423,271 Net Pension Liability as a Percentage of Covered Payroll 49.66% 65.67% 58.94% 54.34% 43.01% 43.30% 1 Notes to Schedule:
GASB Statement No. 75, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2018. Additional years will be added as they become available in the future.
Changes in Benefit Terms: None
Changes of Assumptions: Based on a review of plan experience during the period July 1, 2019 to June 30, 2021. The discount rate used to measure the City’s Total OPEB liability is based on the following information:
No assets are accumulated in a trust or equivalent arrangement to pay related benefits for the OPEB plan. 185
CITY OF OXNARD, CALIFORNIA
GENERAL FUND GROUP
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
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ORIGINAL FINAL ACTUAL VARIANCE WITH
BUDGET BUDGET AMOUNTS FINAL BUDGET
REVENUES
Taxes
Property 66,624,000 66,624,000 67,668,142 1,044,142$ Sales 113,875,752 113,875,752 128,533,831 14,658,079 Transient occupancy 5,602,162 5,602,162 5,271,128 (331,034) Business license (net of refund) 6,400,000 6,400,000 6,677,266 277,266 Franchise 4,309,360 4,309,360 4,933,598 624,238
Other taxes 985,175 985,175 679,570 (305,605)
Licenses and permits 3,906,040 3,906,040 4,273,740 367,700 Intergovernmental 2,495,849 2,495,849 2,342,238 (153,611) Charges for services 13,436,241 13,436,241 11,962,462 (1,473,779) Fines and forfeitures 2,729,499 2,729,499 2,814,558 85,059 Investment income (loss) 938,000 938,000 (95,212) (1,033,212) Special assessments 345,129 345,129 350,055 4,926
Miscellaneous 3,346,748 5,646,748 5,127,357 (519,391) Total Revenues 224,993,955 227,293,955 240,538,733 13,244,778
EXPENDITURES
General Government 27,972,185 24,079,166 21,684,582 (2,394,584) Public Safety 105,196,662 108,509,571 111,414,131 2,904,560 Public works 27,631,742 30,731,631 25,554,420 (5,177,211) Community Development 13,619,319 15,044,579 12,251,385 (2,793,194) Culture, leisure and libraries 14,583,404 15,043,477 13,054,976 (1,988,501) Housing 4,052,362 6,505,585 4,230,846 (2,274,739) Capital outlay 545,390 1,552,282 1,212,351 (339,931) Principal 2,635,000 2,635,000 1,447,308 (1,187,692) Interest and fiscal charges 465,869 465,869 456,480 (9,389) Total Expenditures 196,701,933 204,567,160 191,306,479 (13,260,681) EXCESS OF REVENUES OVER EXPENDITURES 28,292,022 22,726,795 49,232,254 26,505,459
OTHER FINANCING SOURCES (USES)
Inception of subscription-based IT arrangements - - 1,567,026 1,567,026$ Transfer from fiduciary fund 91,621 91,621 91,621 - Transfers in 3,863,384 3,928,723 3,022,237 (906,486) Transfers out (38,520,960) (57,516,141) (20,678,587) 36,837,554 Net Other Financing Sources (Uses) (34,565,955) (53,495,797) (15,997,703) 37,498,094 NET CHANGE IN FUND BALANCES (6,273,933) (30,769,002) 33,234,551 64,003,553 FUND BALANCES, JULY 1 57,995,759 57,995,759 57,995,759 - FUND BALANCES, JUNE 30 51,721,826$ 27,226,757 $ 91,230,310 $ 64,003,553 $ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
Reimbursement of IUF fees were included in the City's budget as other financing uses. In the General Fund financial statements , the reimbursement of IUF fees are reported as reductions of advances from other funds. 186
CITY OF OXNARD, CALIFORNIA
AFFORDABLE HOUSING FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
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FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Intergovernmental -$ -$ 53,231$ 53,231$
Interest on investments (17,953) (17,953) 27,669 45,622 Miscellaneous - - 125 125
Total Revenues (17,953) (17,953) 81,025 98,978
EXPENDITURES
Housing 71,165 1,729,515 24,010 1,705,505 Total Expenditures 71,165 1,729,515 24,010 1,705,505
EXCESS (DEFICIENCY) OF REVENUES OVER ( UNDER)
EXPENDITURES (89,118) (1,747,468) 57,015 1,804,483 NET CHANGE IN FUND BALANCES (89,118) (1,747,468) 57,015 1,804,483 FUND BALANCES, JULY 1 3,388,548 3,388,548 3,388,548 - FUND BALANCES, JUNE 30 3,299,430$ 1,641,080 $ 3,445,563 $ 1,804,483 $ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
187
CITY OF OXNARD, CALIFORNIA
DEVELOPMENT FEES SPECIAL REVENUE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-158-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Growth and development fees 3,599,741 $ 4,022,425 $ 4,168,962$ 146,537$ Fines and forfeitures 10,389 10,389 - (10,389) Interest on investments 236,075 235,402 221,349 (14,053) Miscellaneous 299,511 299,511 111,369 (188,142)
Total Revenues 4,145,716 4,567,727 4,501,680 (66,047)
EXPENDITURES
General government 13,646 32,668 24,256 8,412
Public safety 12,827 - - -
Public works 9,207 9,207 9,207 -
Community development 3,954,152 4,513,646 345,052 4,168,594 Culture, leisure and libraries 10,146 10,448 1,054 9,394 Housing 500,545 2,159,565 505,622 1,653,943
Total Expenditures 4,500,523 6,725,534 885,191 5,840,343 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (354,807) (2,157,807) 3,616,489 5,774,296
OTHER FINANCING SOURCES (USES)
Transfers out (4,049,303) (16,617,181) (3,356,873) 13,260,308 Net Other Financing Sources (Uses) (4,049,303) (16,617,181) (3,356,873) 13,260,308 NET CHANGE IN FUND BALANCES (4,404,110) (18,774,988) 259,616 19,034,604 FUND BALANCES, JULY 1 55,564,159 55,564,159 55,564,159 - FUND BALANCES, JUNE 30 51,160,049$ 36,789,171 $ 55,823,775 $ 19,034,604 $ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
188
CITY OF OXNARD, CALIFORNIA
STATE AND FEDERAL GRANTS FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-159-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Intergovernmental 7,121,734$ 100,059,501$ 28,659,747$ (71,399,754)$ Interest 2,773 2,773 1,424 (1,349)
Miscellaneous 13,000 154,381 9,271 (145,110) Total Revenues 7,137,507 100,216,655 28,670,442 (71,546,213)
EXPENDITURES
Current
General government - 3,085,850 155,000 2,930,850
Public safety - 6,955,469 2,574,472 4,380,997
Public works 17,987 2,627,567 899,769 1,727,798 Community development 32,262 648,346 206,088 442,258 Culture, leisure and libraries 6,148,245 9,096,483 3,506,373 5,590,110 Housing 762,906 7,224,722 1,096,052 6,128,670 Capital outlay - 594,714 199,696 395,018
Debt service
Principal - - 103,614 (103,614)
Interest - - 4,251 (4,251)
Total Expenditures 6,961,400 30,233,151 8,745,315 21,487,836 EXCESS OF REVENUES OVER ( UNDER) EXPENDITURES 176,107 69,983,504 19,925,127 (50,058,377)
OTHER FINANCING SOURCES (USES)
Inception of subscription-based IT arrangements - - 302,595 302,595 Transfers in 32,262 119,711 60,945 (58,766) Transfers out (866,489) (71,531,671) (20,635,132) 50,896,539 Net Other Financing Sources (Uses) (834,227) (71,411,960) (20,271,592) 51,140,368 NET CHANGE IN FUND BALANCES (658,120) (1,428,456) (346,465) 1,081,991 FUND BALANCES, JULY 1 653,007 653,007 653,007 - FUND BALANCES, JUNE 30 (5,113)$ (775,449)$ 306,542 $ 1,081,991 $ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measurement focus and the modified accrual basis of accounting consistent with generally accepted accounting principles (GAAP).
189
CITY OF OXNARD, CALIFORNIA
CAPITAL IMPROVEMENTS FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-160-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
EXPENDITURES
Capital outlay 47,357,414 161,277,070 43,436,296 117,840,774 Total Expenditures 47,357,414 161,277,070 43,436,296 117,840,774 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (47,357,414) (161,277,070) (43,436,296) (117,840,774)
OTHER FINANCING SOURCES (USES)
Transfers in 47,357,414 161,277,068 44,544,038 (116,733,030) Net Other Financing Sources (Uses) 47,357,414 161,277,068 44,544,038 (116,733,030) NET CHANGE IN FUND BALANCES - (2) 1,107,742 1,107,744 FUND BALANCES, JULY 1 - - - -
FUND BALANCES, JUNE 30 -$ (2)$ 1,107,742$ 1,107,744$ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
190
SUPPLEMENTARY
INFORMATION
191
GENERAL FUND GROUP
192
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General Fund Group Funds
The general fund accounts for a government’s main operating fund.
General Fund - This fund is used to account for all financ ial resources traditionally associated with government activities that are not required l egally to be accounted for in another fund.
Principal sources of revenues ar e property tax, sales tax, tr ansient occupancy (hotel) tax, business license tax, franchise fees, licenses and permits, and State shared revenues and billings for outside and interfund services. Expenditures in the General Fund primarily consist of general administration, police and fire protection, parks and streets maintenance, recreation and transportation services, and community development.
Half Cent Sales Tax “Measure O” Fund - On November 4, 2008, Oxnard voters approved a general purpose sales tax for one half cent for twenty years. Its purpose is “to protect, maintain, and enhance vital City services including police, fire and emergency response, increasing street paving and sidewalk/pothole repair to improve tr affic flow, expanding y outh recreation, after- school and anti-gang preventi on programs, acquiring prope rty for parks/open space preservation, upgrading storm water drains, improving senior servic es, increasing building code
compliance, and other general City services."
Street Maintenance Fund - This fund is used for the reimburse ment of costs imposed by the City’s utility enterprise funds (water, wastewater, environmental resources) on the public right- of-way.
Performing Arts & Convention Center Fund - This fund accounts for the City's cultural activities related to artistic and recreational performances. Revenues are derived mainly from admission tickets and contributions from patrons. These revenues are used to pay for operating expenditures, capital improvement projects, acquisition of equipment and sound systems.
Other General Funds - These funds account for Oxnard Police Department Training program, system payroll control, donations to the City from private parti es for specified purposes and developer deposits.
193
CITY OF OXNARD, CALIFORNIA
COMBINING BALANCE SHEET
GENERAL FUND GROUP
JUNE 30, 2023
-162-
101 - General 104 - Half Cent 105 - Street 641 - Performing Fund Sales Tax Maintenance Arts Center
ASSETS
Cash and investments 60,980,496 $ 17,514,779 $ 1,727,955 $ 374,986 $ Accounts and other receivables 3,834,796 65,317 - - Due from other funds 229,584 1,768,016 - - Due from other government 22,718,936 3,300,714 - - Due from fiduciary fund 104,247 - - - Prepaid expenses 377,939 - - -
Lease receivable 479,158 - - -
Advances to other funds - 1,821,056 - -
Total Ass
ets 88,725,156$ 24,469,882 $ 1,727,955 $ 374,986 $
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
LIABILITIES
Accounts payable 7,502,585$ 579,137$ -$ 36,022$ Other liabilities 5,793,653 152,143 - -
Due to other funds 9,477,843 - - -
Advances from other funds 1,821,056 - - - Unearned revenues - - - -
Total Liabilitie
s 24,595,137 731,280 - 36,022
DEFERRED INFLOW OF RESOURCES
Deferred inflow on leases 457,577 - - -
Total Liabilities and Deferred Inflows of Resources 25,052,714 731,280 - 36,022
FUND BALANCES
Nonspendable
Prepaid expenses 377,939 - - -
Lease receivable, net 21,581 - - -
Advances to other funds (1,821,056) 1,821,056 - - Committed to:
Measure "O" eligible services - 21,917,546 - -
Capital projects 19,545,280 - - -
Streets maintenance - - 1,108,904 -
Assigned to:
Operating reserves 27,812,072 - - -
Unassigned 17,736,626 - 619,051 338,964
Total Fund Balances 63,672,442 23,738,602 1,727,955 338,964 TOTAL LIABILITIES AND FUND BALANCES 88,725,156$ 24,469,882 $ 1,727,955 $ 374,986 $
GENERAL FUND
194
-163-
Other* Total
ASSETS
5,880,189$ 86,478,405$ Cash and investments
759,552 4,659,665 Accounts and other receivables 7,480 2,005,080 Due from other funds
334,203 26,353,853 Due from other government
- 104,247 Due from fiduciary fund
- 377,939 Prepaid expenses
- 479,158 Lease receivable
- 1,821,056 Advances to other funds
6,981,424$ 122,279,403$ Total Assets
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
LIABILITIES
417,971$ 8,535,715$ Accounts payable
4,584,555 10,530,351 Other liabilities
226,551 9,704,394 Due to other funds
- 1,821,056 Advances from other funds
- - Unearned revenues
5,229,077 30,591,516 Total Liabilities
DEFERRED INFLOW OF RESOURCES
- 457,577 Deferred inflow on leases
5,229,077 31,049,093 Total Liabilities and Deferred Inflows of Resources
FUND BALANCES
Nonspendable
- 377,939 Prepaid expenses
- 21,581 Lease receivable, net
- - Advances to other funds
Committed to:
- 21,917,546 Measure "O" eligible services
1,059,447 20,604,727 Capital projects
- 1,108,904 Streets maintenance
Assigned to:
- 27,812,072 Operating reserves
692,900 19,387,541 Unassigned
1,752,347 91,230,310 Total Fund Balances
6,981,424$ 122,279,403$ TOTAL LIABILITIES AND FUND BALANCES
GENERAL FUND
195
CITY OF OXNARD
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GENERAL FUND GROUP
FOR THE YEAR ENDED JUNE 30, 2023
-164-
101 - General 104 - Half Cent 105 - Street 641 - Performing Fund Sales Tax Maintenance Arts Center
REVENUES
Taxes 194,703,430 $ 19,060,105 $ - $ -$ Licenses and permits 4,273,740 - - -
Intergovernmental 2,342,238 - - -
Charges for services 11,670,991 - - 291,471
Fines and forfeitures 2,814,558 - - -
Investment income (loss) 9,379 (104,591) - - Special assessments 15,852 - - -
Miscellaneous 3,741,640 - - -
Total Revenues 219,571,828 18,955,514 - 291,471
EXPENDITURES
Current
General government 20,626,969 991,198 - -
Public safety 107,084,843 4,313,320 - -
Public works 22,451,538 1,404,774 - -
Community development 11,905,624 345,761 - - Culture, leisure and libraries 12,329,558 638,497 - 77,131 Housing 2,194,884 2,170,705 - -
Capital Outlay 1,166,267 46,084 - -
Debt Service
Principal 490,094 957,214 - -
Interest and fiscal charges 179,421 277,059 - - Total Expenditures 178,429,198 11,144,612 - 77,131
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 41,142,630 7,810,902 - 214,340
OTHER FINANCING SOURCES (USES)
Inception of subscription-based IT arrangements 1,344,855 222,171 - - Transfer from fiduciary fund 91,621 - - -
Transfers in 1,975,768 - - -
Transfers out (15,214,303) (4,911,809) (300,167) - Total Other Financing Sources (Uses) (11,802,059) (4,689,638) (300,167) - NET CHANGE IN FUND BALANCES 29,340,571 3,121,264 (300,167) 214,340 FUND BALANCES, JULY 1 34,331,870 20,617,338 2,028,122 124,624 FUND BALANCES, JUNE 30 63,672,441$ 23,738,602 $ 1,727,955 $ 338,964 $ *
GENERAL FUND
Other funds include: General Fund Carryover (102), Oxnard Police Department (OPD) Training (103), Stormwater Management (114), Payroll Clearing Trust (542), Carnegie Art Trust (543), Housing Payroll Trust (545), City Artworks Trust (546), City Corps Trust (555), and Contributions/Donations Trust (571).
196
-165-
Other* Total
REVENUES
-$ 213,763,535$ Taxes
- 4,273,740 Licenses and permits
- 2,342,238 Intergovernmental
- 11,962,462 Charges for services
- 2,814,558 Fines and forfeitures
- (95,212) Investment income (loss)
334,203 350,055 Special assessments
1,385,717 5,127,357 Miscellaneous
1,719,920 240,538,733 Total Revenues
EXPENDITURES
Current
66,415 21,684,582 General government
15,968 111,414,131 Public safety
1,698,108 25,554,420 Public works
- 12,251,385 Community development
9,790 13,054,976 Culture, leisure and libraries (134,743) 4,230,846 Housing
- 1,212,351 Capital Outlay
- Debt Service
- 1,447,308 Principal
- 456,480 Interest and fiscal charges
1,655,538 191,306,479 Total Expenditures
EXCESS OF REVENUES OVER (UNDER)
64,382 49,232,254 EXPENDITURES
OTHER FINANCING SOURCES (USES)
- 1,567,026 Inception of subscription-based IT arrangements - 91,621 Transfer from fiduciary fund
1,046,469 3,022,237 Transfers in
(252,308)
(20,678,587) Transfers out
794,161 (15,997,703) Total Other Financing Sources (Uses) 858,543 33,234,551 NET CHANGE IN FUND BALANCES 893,805 57,995,759 FUND BALANCES, JULY 1
1,752,348$ 91,230,310$ FUND BALANCES, JUNE 30
GENERAL FUND
197
CITY OF OXNARD, CALIFORNIA
GENERAL FUND - 101 - GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-166-
ORIGINAL FINAL ACTUAL VARIANCE WITH
BUDGET BUDGET AMOUNTS FINAL BUDGET
REVENUES
Taxes
Property 66,624,379 66,624,379$ 67,668,142$ 1,043,763$ Sales 95,663,752 95,663,752 109,473,726 13,809,974
Transient occupancy 5,602,162 5,602,162 5,271,128 (331,034) Business license (net of refund) 6,400,000 6,400,000 6,677,266 277,266 Franchise 4,309,360 4,309,360 4,933,598 624,238
Other taxes 985,175 985,175 679,570 (305,605)
Licenses and permits 3,906,040 3,906,040 4,273,740 367,700 Intergovernmental 2,495,849 2,495,849 2,342,238 (153,611) Charges for services 13,188,241 13,188,241 11,670,991 (1,517,250) Fines and forfeitures 2,729,499 2,729,499 2,814,558 85,059 Investment income 896,078 896,078 9,379 (886,699) Special assessments 66,221 66,221 15,852 (50,369) Miscellaneous 3,344,748 3,344,748 3,741,640 396,892 Total Revenues 206,211,504 206,211,504 219,571,828 13,360,324
EXPENDITURES
Current
General government 26,959,338 23,066,319 20,626,969 2,439,350 Public safety 101,195,919 104,508,828 107,084,843 (2,576,015) Public works 24,169,438 24,424,327 22,451,538 1,972,789 Community development 13,256,933 14,662,193 11,905,624 2,756,569 Culture and leisure 13,537,538 13,969,455 12,329,558 1,639,897 Housing 2,948,815 3,189,130 2,194,884 994,246
Capital outlay 528,000 1,534,892 1,166,267 368,625 Debt service
Principal - - 490,094 (490,094)
Interest and fiscal charges 159,168 159,168 179,421 (20,253) Total Expenditures 182,755,149 185,514,312 178,429,198 7,085,114 EXCESS OF REVENUES OVER EXPENDITURES 23,456,355 20,697,192 41,142,630 20,445,438 198
GENERAL FUND - 101 - GENERAL FUND (Continued)
BUDGETARY COMPARISON SCHEDULE
-167-
ORIGINAL FINAL ACTUAL VARIANCE WITH
BUDGET BUDGET AMOUNTS FINAL BUDGET
OTHER FINANCING SOURCES (USES)
Inception of subscription-based IT arrangements -$ -$ 1,344,855$ 1,344,855$ Transfer from fiduciary fund - - 91,621 91,621
Transfers in 2,146,606 2,136,945 1,975,768 (161,177) Transfers out (33,537,218) (49,161,318) (15,214,303) 33,947,015 Net Other Financing Sources (Uses) (31,390,612) (47,024,373) (11,802,059) 35,222,314 NET CHANGE IN FUND BALANCES (7,934,257) (26,327,181) 29,340,571 55,667,752 FUND BALANCES, JULY 1 34,331,870 34,331,870 34,331,870 - FUND BALANCES, JUNE 30 26,397,613$ 8,004,689 $ 63,672,441 $ 55,667,752 $ Note to Budgetary Comparison
Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
199
CITY OF OXNARD, CALIFORNIA
GENERAL FUND - 104 - HALF CENT SALES TAX
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-168-
ORIGINAL FINAL ACTUAL VARIANCE WITH
BUDGET BUDGET AMOUNTS FINAL BUDGET
REVENUES
Taxes
Sales 18,212,000$ 18,212,000$ 19,060,105$ 848,105$ Investment income (loss) 41,548 41,548 (104,591) (146,139) Total Revenues 18,253,548 18,253,548 18,955,514 701,966
EXPENDITURES
Current
General government 1,012,847 1,012,847 991,198 21,649 Public safety 4,000,743 4,000,743 4,313,320 (312,577) Public works 1,464,618 2,034,618 1,404,774 629,844 Community development 362,386 382,386 345,761 36,625 Culture and leisure 816,392 844,548 638,497 206,051
Housing 1,103,547 3,316,455 2,170,705 1,145,750 Capital outlay 17,390 17,390 46,084 (28,694)
Debt service
Principal 2,635,000 2,635,000 957,214 1,677,786
Interest and fiscal charges 306,701 306,701 277,059 29,642 Total Expenditures 11,719,624 14,550,688 11,144,612 3,406,076 EXCESS OF REVENUES OVER EXPENDITURES 6,533,924 3,702,860 7,810,902 4,108,042
OTHER FINANCING SOURCES (USES)
Inception of subscription-based IT arrangements - - 222,171 222,171 Transfers out (4,983,742) (6,944,071) (4,911,809) 2,032,262 Net Other Financing Sources (Uses) (4,983,742) (6,944,071) (4,689,638) 2,254,433 NET CHANGE IN FUND BALANCES 1,550,182 (3,241,211) 3,121,264 6,362,475 FUND BALANCES, JULY 1 20,617,338 20,617,338 20,617,338 - FUND BALANCES, JUNE 30 22,167,520$ 17,376,127 $ 23,738,602 $ 6,362,475 $ Note to Budgetary Comparison
Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
200
NONMAJOR
GOVERNMENTAL
FUNDS
201
-169-
Nonmajor Governmental Funds
Special revenue funds are used to account for th e proceeds of specific revenue sources (other than capital outlay and debt service funds that are legally restricted to expenditures for particular purposes).
HUD and CDBG Grants Fund - This special revenue fund is used to account for federal entitlement that is used to pr ovide housing loans
to low/moderate income families and
community development block grants to develop viable urban communities.
Public Safety Retirement Fund - This special revenue fund is used to account for voter- approved property tax for public safety uniformed employees' retirement.
State Gas Tax Fund - This special revenue fund is used to account for the allocated share of Gas Tax Revenue. Spending of gas tax is legally restricted to be used for maintenance and improvement of public streets.
Debt Service Fund - This fund accounts for the accumula tion of resources and payments of principal and interest of the City's general long-term debt.
Capital Outlay Fund - This fund accounts for financing and construction of general government capital projects.
Certified Unified Program Agencies (CUPA) Fund - This special revenue fund is used to account for fees collected for regulation and management of hazardous materials in the City.
Fees are to be used in the administration of the CUPA program.
Traffic Safety Fund - This special revenue fund is used to account for shared revenues received from fines and forfeitures under t he State of California Vehicle Co de. Fund is restricted to be expended only for improvement and maintenance of traffic control equipment/devices.
Transportation Development Fund - This special revenue fund is used to account for Transportation Development Act revenues and to be used for street maintenance and road improvements, and construction of pedestrian and bike facilities.
Maintenance Assessment Districts Fund - This special revenue fund is used to account for assessment revenues and expenditures related to waterways and landscape maintenance of various district areas in the City.
202
CITY OF OXNARD, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
-170-
HUD
AND CDBG PUBLIC DEBT CAPITAL
GRANTS SAFETY STATE SERVICE OUTLAY CUPA TRAFFIC
FUND RETIREMENT GAS TAX FUND FUND FUND SAFETY
ASSETS
Cash and cash equivalents 233,560$ 2,263,361$ 277,629$ 23,217$ 23,926,322$ 1,480,490$ 88,788$ Investments with fiscal agents - - 517 11,572 12,069,443 - - Accounts and other receivables - - 13,993 - 126,660 7,169 983 Due from other funds - - - - - - -
Due from other government 3,322,805 274,229 1,236,600 - - - 21,884 Due from fiduciary fund - - - - 11,224 - - Notes receivable 9,228,988 - - - - - - Lease receivable - - - - - - -
Total Assets 12,785,353$ 2,537,590 $ 1,528,739 $ 34,789 $ 36,133,649$ 1,487,659 $ 111,655 $
LIABILITIES
Accounts payable 1,084,606$ 1,907$ 105,374$ -$ 130,215 $ 12,296$ 170$ Other liabilities 14,517 114,938 57,276 - 94,461 7,766 1,656 Due to other funds 1,914,327 - - - - - -
Unearned revenues 335,827 - - - - - -
Total Liabilities 3,349,277 116,845 162,650 - 224,676 20,062 1,826
DEFERRED INFLOW OF RESOURCES
Deferred inflow on loans 9,228,988 - - - - - - Deferred inflow on leases - - - - - - -
Total Deferred Inflow on Resources 9,228,988 - - - - - -
FUND BALANCES
Nonspendable
Lease receivable, net - - - - - - -
Restricted for:
Debt service - - - 34,789 6,582,350 - -
Public works - transportation - - 1,366,089 - - - 109,829 Maintenance districts - - - - - - -
Housing 207,088 - - - - - -
Public safety - 2,420,745 - - - 1,467,597 -
Infrastructure - - - - 8,795,324 - -
Grants - - - - 20,531,299 - -
Total Fund Balances 207,088 2,420,745 1,366,089 34,789 35,908,973 1,467,597 109,829
TOTAL LIABILITIES AND
FUND BALANCES 12,785,353$ 2,537,590 $ 1,528,739 $ 34,789 $ 36,133,649$ 1,487,659 $ 111,655 $ 203
-171-
TRANSPORTATION MAINTENANCE TOTAL NONMAJOR
DEVELOPMENT ASSESSMENT GOVERNMENTAL
FUND DISTRICTS FUND FUNDS
ASSETS
2,838,750$ 12,180,095$ 43,312,212$ Cash and cash equivalents - - 12,081,532 Investments with fiscal agents
9,137 48,644 206,586 Accounts and other receivables - - - Due from other funds
- 100,026 4,955,544 Due from other government
- - 11,224 Due from fiduciary fund
- - 9,228,988 Notes receivable
255,053 - 255,053 Lease receivable
3,102,940$ 12,328,765 $ 70,051,139 $ Total Assets
LIABILITIES
66,115$ 760,707 $ 2,161,390 $ Accounts payable 5,809 22,034 318,457 Other liabilities
- - 1,914,327 Due to other funds
1,804,798 - 2,140,625 Unearned revenues
1,876,722 782,741 6,534,799 Total Liabilities
DEFERRED INFLOW OF RESOURCES
- - 9,228,988 Deferred inflow on loans
251,162 - 251,162 Deferred inflow on leases
251,162 - 9,480,150 Total Deferred Inflow of Resources
FUND BALANCES
Nonspendable
3,891 - 3,891 Lease receivable, net
Restricted for:
- - 6,617,139 Debt Service
971,165 - 2,447,083 Public works - transportation
- 11,546,024 11,546,024 Maintenance districts
- - 207,088 Housing
- - 3,888,342 Public safety
- - 8,795,324 Infrastructure
- - 20,531,299 Grants
975,056 11,546,024 54,036,190 Total Fund Balances
TOTAL LIABILITIES AND
3,102,940$ 12,328,765 $ 70,051,139 $ FUND BALANCES 204
CITY OF OXNARD, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
-172-
HUD
AND CDBG PUBLIC DEBT CAPITAL
GRANTS SAFETY STATE SERVICE OUTLAY
FUND RETIREMENT GAS TAX FUND FUND
REVENUES
Taxes -$ 11,181,797$ -$ -$ 369,835$
Licenses and permits - - - - -
Intergovernmental 4,908,822 - 9,600,473 - -
Growth and development fees - - - - -
Charges for services - - 488,367 - -
Fines and forfeitures - - - - -
Investment income - - 16,015 11,414 443,704
Special assessments - - - - -
Miscellaneous 34,596 - 7,984 - 100,000
Total Revenues 4,943,418 11,181,797 10,112,839 11,414 913,539
EXPENDITURES
Current
General government - 61,513 - - 1,644
Public safety - 15,626,995 - - -
Public works 118,510 - 4,838,109 - 292,330
Culture, leisure and libraries 216,457 - - - 331
Housing 4,204,871 - - - 108,805
Capital outlay - - - - -
Debt Service
Principal - - 740,000 4,978,174 -
Interest and fiscal charges - - 578,725 2,740,856 81,330 Total Expenditures 4,539,838 15,688,508 6,156,834 7,719,030 484,440
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 403,580 (4,506,711) 3,956,005 (7,707,616) 429,099
OTHER FINANCING SOURCES (USES)
Issuance of debt - - - - 5,320,000
Transfer to fiduciary fund - - - - (2,446,040) Transfers in 65,630 - 360,880 7,719,029 -
Transfers out (403,580) - (7,644,418) - (12,532,377)
Net Other Financing Sources (Uses) (337,950) - (7,283,538) 7,719,029 (9,658,417) NET CHANGE IN FUND BALANCES 65,630 (4,506,711) (3,327,533) 11,413 (9,229,318) FUND BALANCES, JULY 1 141,458 6,927,456 4,693,622 23,376 45,138,291 FUND BALANCES, JUNE 30 207,088$ 2,420,745$ 1,366,089 $ 34,789 $ 35,908,973$ 205
-173-
TRANSPORTATION MAINTENANCE TOTAL NONMAJOR
CUPA TRAFFIC DEVELOPMENT ASSESSMENT GOVERNMENTAL
FUND SAFETY FUND DISTRICTS FUND FUNDS
REVENUES
-$ -$ -$ -$ 11,551,632$ Taxes
1,107,708 - - - 1,107,708 Licenses and permits
- 188,893 434,032 - 15,132,220 Intergovernmental
- - - - - Growth and development fees
- - - 665,768 1,154,135 Charges for services
2,000 - - - 2,000 Fines and forfeitures
7,091 10,923 40,296 72,842 602,285 Investment income - - - 6,153,806 6,153,806 Special assessments
21,248 - 270,642 332,288 766,758 Miscellaneous 1,138,047 199,816 744,970 7,224,704 36,470,544 Total Revenues
EXPENDITURES
Current
- - - - 63,157 General government
742,923 433,734 - 250,778 17,054,430 Public safety - 1,906 848,737 6,569,079 12,668,671 Public works
- - - - 216,788 Culture, leisure and libraries
- - - - 4,313,676 Housing
- - - 71,056 71,056 Capital outlay
Debt Service
- - - - 5,718,174 Principal
- - - - 3,400,911 Interest and fiscal charges 742,923 435,640 848,737 6,890,913 43,506,863 Total Expenditures
EXCESS OF REVENUES OVER
395,124
(235,824) (103,767) 333,791 (7,036,319) (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
- - - - 5,320,000 Issuance of debt
- - - - (2,446,040) Transfer to fiduciary fund - - - 631,525 8,777,064 Transfers in
(23,578) (352) (646,535) (299,516) (21,550,356) Transfers out (23,578) (352) (646,535) 332,009 (9,899,332) Net Other Financing Sources (Uses) 371,546 (236,176) (750,302) 665,800 (16,935,651) NET CHANGE IN FUND BALANCES 1,096,051 346,005 1,725,358 10,880,224 70,971,841 FUND BALANCES, JULY 1 1,467,597$ 109,829 $ 975,056 $ 11,546,024$ 54,036,190 $ FUND BALANCES, JUNE 30 206
CITY OF OXNARD, CALIFORNIA
HUD AND CDBG GRANTS
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-174-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Intergovernmental 3,700,123 $ 14,976,374 $ 4,908,822 $ (10,067,552)$ Micellaneous - - 34,596 34,596
Total Revenues 3,700,123 14,976,374 4,943,418 (10,032,956)
EXPENDITURES
Public works 35,550 163,550 118,510 45,040
Culture, leisure and libraries 315,000 404,515 216,457 188,058 Housing 2,395,341 11,912,437 4,204,871 7,707,566 Capital outlay - 120,000 - 120,000
Total Expenditures 2,710,341 12,436,952 4,539,838 8,015,624 EXCESS OF REVENUES OVER ( UNDER) EXPENDITURES 989,782 2,539,422 403,580 (2,017,332)
OTHER FINANCING SOURCES (USES)
Transfers in - - 65,630 (65,630)
Transfers out (954,232) (2,375,872) (403,580) 1,972,292 Total Other Financing Sources (Uses) (954,232) (2,375,872) (337,950) 1,906,662 NET CHANGE IN FUND BALANCES 35,550 163,550 65,630 (110,670) FUND BALANCES, JULY 1 141,458 141,458 141,458 - FUND BALANCES, JUNE 30 177,008$ 305,008 $ 207,088 $ (110,670) $ Note to Budgetary Comparison
Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
207
CITY OF OXNARD, CALIFORNIA
NONMAJOR - PUBLIC SAFETY RETIREMENT
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-175-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Taxes 9,297,557 $ 9,297,557 $ 11,181,797 $ 1,884,240 $ Total Revenues 9,297,557 9,297,557 11,181,797 1,884,240
EXPENDITURES
Government 140,226 140,226 61,513 78,713
Public safety 15,609,634 15,609,634 15,626,995 (17,361) Total Expenditures 15,749,860 15,749,860 15,688,508 61,352
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (6,452,303) (6,452,303) (4,506,711) 1,945,592 NET CHANGE IN FUND BALANCES (6,452,303) (6,452,303) (4,506,711) 1,945,592 FUND BALANCES, JULY 1 6,927,456 6,927,456 6,927,456 - FUND BALANCES, JUNE 30 475,153$ 475,153 $ 2,420,745$ 1,945,592 $ Note to Budgetary Comparison
Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
208
CITY OF OXNARD, CALIFORNIA
NONMAJOR - STATE GAS TAX FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-176-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Intergovernmental 10,637,796 $ 10,637,796 $ 9,600,473 $ (1,037,323) $ Charges for services 1,500,000 1,500,000 488,367 (1,011,633) Investment income 23,412 23,412 16,015 (7,397)
Miscellaneous - - 7,984 7,984
Total Revenues 12,161,208 12,161,208 10,112,839 (2,048,369)
EXPENDITURES
Public works 7,674,546 7,674,546 4,838,109 2,836,437 Debt Service
Principal 740,000 740,000 740,000 -
Interest 578,725 578,725 578,725 -
Total Expenditures 8,993,271 8,993,271 6,156,834 2,836,437
EXCESS OF REVENUES OVER ( UNDER)
EXPENDITURES 3,167,937 3,167,937 3,956,005 788,068
OTHER FINANCING SOURCES (USES)
Transfers in - - 360,880 360,880
Transfers out (3,124,986) (9,688,769) (7,644,418) 2,044,351 Total Other Financing Sources (Uses) (3,124,986) (9,688,769) (7,283,538) 2,405,231 NET CHANGE IN FUND BALANCES 42,951 (6,520,832) (3,327,533) 3,193,299 FUND BALANCES, JULY 1 4,693,622 4,693,622 4,693,622 - FUND BALANCES, JUNE 30 4,736,573$ (1,827,210)$ 1,366,089 $ 3,193,299 $ Note to Budgetary Comparison
Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
209
CITY OF OXNARD, CALIFORNIA
NONMAJOR - DEBT SERVICE FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-177-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Investment income -$ - $ 11,414$ 11,414 $ Total Revenues - - 11,414 11,414
EXPENDITURES
Debt Service
Principal 7,041,471 7,041,471 4,978,174 2,063,297 Interest 3,989,370 3,989,370 2,740,856 1,248,514 Total Expenditures 11,030,841 11,030,841 7,719,030 3,311,811
EXCESS OF REVENUES OVER ( UNDER)
EXPENDITURES (11,030,841) (11,030,841) (7,707,616) 3,323,225
OTHER FINANCING SOURCES (USES)
Transfers in 11,030,843 11,030,843 7,719,029 (3,311,814) Total Other Financing Sources (Uses) 11,030,843 11,030,843 7,719,029 (3,311,814) NET CHANGE IN FUND BALANCES1 2 2 11,413 11,411 FUND BALANCES, JULY 1 23,376 23,376 23,376 - FUND BALANCES, JUNE 30 23,378$ 23,378 $ 34,789 $ 11,411 $
Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
210
CITY OF OXNARD, CALIFORNIA
NONMAJOR - CAPITAL OUTLAY FUNDS
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-178-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Taxes 395,053$ 395,053$ 369,835$ (25,218)$ Investment income 54,337 54,337 443,704 389,367 Miscellaneous - - 100,000 100,000
Total Revenues 449,390 449,390 913,539 464,149
EXPENDITURES
General government 872 872 1,644 (772) Public works - 5,437,375 292,330 5,145,045
Culture, leisure and libraries - 1,500,000 331 1,499,669 Housing 85,716 2,888,428 108,805 2,779,623
Capital outlay - 3,095,000 - 3,095,000
Debt Service
Interest - - 81,330 (81,330)
Total Expenditures 86,588 12,921,675 484,440 12,437,235
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 362,802 (12,472,285) 429,099 12,901,384
OTHER FINANCING SOURCES (USES)
Proceeds from bonds 27,510,000 28,000,657 5,320,000 (22,680,657) Transfer to custodial fund - - (2,446,040) (2,446,040) Transfers in - 4,351,591 - (4,351,591)
Transfer out (24,003,495) (43,852,660) (12,532,377) 31,320,283 Total Other Financing Sources (Uses) 3,506,505 (11,500,412) (9,658,417) 1,841,995 NET CHANGE IN FUND BALANCES 3,869,307 (23,972,697) (9,229,318) 14,743,379 FUND BALANCES, JULY 1 45,138,291 45,138,291 45,138,291 - FUND BALANCES, JUNE 30 49,007,598$ 21,165,594 $ 35,908,973 $ 14,743,379 $ Note to Budgetary Comparison
Schedule:
Budgets are prepared using a current financial resources measuremen t focus and the modified accrua l basis of accounting consist ent with generally accepted accounting principles (GAAP).
211
CITY OF OXNARD, CALIFORNIA
NONMAJOR - CUPA
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-179-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Licenses and permits -$ 1,073,200$ 1,107,708$ 34,508$ Growth and development fees - - - - Fines and forfeitures - 10,389 2,000 (8,389) Investment income - 9,065 7,091 (1,974) Miscellaneous - 11,228 21,248 10,020 Total Revenues - 1,103,882 1,138,047 34,165
EXPENDITURES
Public safety - 1,078,594 742,923 335,671 Total Expenditures - 1,078,594 742,923 335,671 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - 25,288 395,124 369,836
OTHER FINANCING SOURCES (USES)
Transfers out - (23,578) (23,578) - Total Other Financing Sources (Uses) - (23,578) (23,578) - NET CHANGE IN FUND BALANCES - 1,710 371,546 369,836 FUND BALANCES, JULY 1 1,096,051 1,096,051 1,096,051 - FUND BALANCES, JUNE 30 1,096,051$ 1,097,761 $ 1,467,597 $ 369,836 $ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measurement focus and the modified accrual basis of accounting consist ent with generally accepted accounting principles (GAAP).
212
CITY OF OXNARD, CALIFORNIA
NONMAJOR - TRAFFIC SAFETY
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-180-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Intergovernmental 285,969$ 285,969 $ 188,893$ (97,076)$ Investment income 2,742 2,742 10,923 8,181 Total Revenues 288,711 288,711 199,816 (88,895)
EXPENDITURES
Public safety 550,760 550,760 433,734 117,026 Public works - 3,782 1,906 1,876
Total Expenditures 550,760 554,542 435,640 118,902
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (262,049) (265,831) (235,824) 30,007
OTHER FINANCING SOURCES (USES)
Transfers out - (85,732) (352) 85,380
Total Other Financing Sources (Uses) - (85,732) (352) 85,380 NET CHANGE IN FUND BALANCES (262,049) (351,563) (236,176) 115,387 FUND BALANCES, JULY 1 346,005 346,005 346,005 - FUND BALANCES, JUNE 30 83,956$ (5,558) $ 109,829 $ 115,387 $ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measurement focus and the modified accrual basis of accounting consistent with generally accepted accounting principles (GAAP).
213
CITY OF OXNARD, CALIFORNIA
NONMAJOR - TRANSPORTATION DEVELOPMENT FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-181-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Intergovernmental 613,130$ 613,130$ 434,032$ (179,098)$ Investment income 22,705 22,705 40,296 17,591 Miscellaneous 251,089 251,089 270,642 19,553 Total Revenues 886,924 886,924 744,970 (141,954)
EXPENDITURES
Public works 1,022,975 1,095,029 848,737 246,292 Total Expenditures 1,022,975 1,095,029 848,737 246,292
EXCESS OF REVENUES OVER ( UNDER)
EXPENDITURES (136,051) (208,105) (103,767) 104,338
OTHER FINANCING SOURCES (USES)
Transfers out - (2,509,931) (646,535) 1,863,396 Total Other Financing Sources (Uses) - (2,509,931) (646,535) 1,863,396 NET CHANGE IN FUND BALANCES (136,051) (2,718,036) (750,302) 1,967,734 FUND BALANCES, JULY 1 1,725,358 1,725,358 1,725,358 - FUND BALANCES, JUNE 30 1,589,307$ (992,678) $ 975,056 $ 1,967,734$ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measurement focus and the modified accrual basis of accounting consist ent with generally accepted accounting principles (GAAP).
214
CITY OF OXNARD, CALIFORNIA
NONMAJOR - MAINTENANCE ASSESSMENT DISTRICTS
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2023
-182-
FINAL
ORIGINAL BUDGETED ACTUAL VARIANCE WITH
BUDGET AMOUNTS AMOUNTS FINAL BUDGET
REVENUES
Charges for services 1,342,529 $ 1,342,529 $ 665,768 $ (676,761) $ Investment income 66,707 66,707 72,842 6,135 Special assessments 5,967,224 5,967,224 6,153,806 186,582 Miscellaneous 13,410 13,410 332,288 318,878 Total Revenues 7,389,870 7,389,870 7,224,704 (165,166)
EXPENDITURES
Public safety 258,117 258,117 250,778 7,339 Public works 9,174,702 9,433,841 6,569,079 2,864,762 Capital outlay 120,988 133,034 71,056 61,978 Total Expenditures 9,553,807 9,824,992 6,890,913 2,934,079
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (2,163,937) (2,435,122) 333,791 2,768,913
OTHER FINANCING SOURCES (USES)
Transfers in 207,677 214,977 631,525 416,548 Transfer out (640,270) (2,377,953) (299,516) 2,078,437 Total Other Financing Sources (Uses) (432,593) (2,162,976) 332,009 2,494,985 NET CHANGE IN FUND BALANCES (2,596,530) (4,598,098) 665,800 5,263,898 FUND BALANCES, JULY 1 10,880,224 10,880,224 10,880,224 - FUND BALANCES, JUNE 30 8,283,694$ 6,282,126 $ 11,546,024 $ 5,263,898 $ Note to Budgetary Comparison Schedule:
Budgets are prepared using a current financial resources measurement focus and the modified accrual basis of accounting consist ent with generally accepted accounting principles (GAAP).
215
INTERNAL SERVICE
FUNDS
216
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Internal Service Funds
Internal Service Funds are established to account for goods and services provided by one City department to other City departments or related entities, generally on a cost-recovery basis.
Public Liab
ility and Property Damage Fund - This fund is used to account for the City's self- insurance program of providi ng public liability and property damage insurance coverage and claims adjustment services to the City's operating funds.
Workers' Compensation Fund - This fund is used to account for the City's self-insurance program for workers' compensation claims.
Utility Customer Services Fund - This fund is used to account for the costs associated with administering the operation of the Customer Services Division and to distribute these costs to the various City utilities such as water, sewer, and refuse.
Information Services Fund - This fund is used to account fo r the costs associ ated with the City's information technology and financial system s and to distribute these costs to the departments using the systems on a pro-rata basis. Included are costs for hardware and software maintenance, cloud comput ing and computer oper ation costs, and some centralized supplies.
Facilities Maintenance Fund - This fund is used to account for the operation and maintenance of City facilities, properties, and related capital projects.
Equipment Maintenance Fund - This fund is used to account for automotive fleet maintenance and services provided to City departments.
217
CITY OF OXNARD, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2023
-184-
PUBLIC
LIABILITY/ UTILITY
PROPERTY WORKERS' CUSTOMER INFORMATION
DAMAGE COMPENSATION SERVICE SERVICES
ASSETS
Current Assets
Cash and investments 4,519,272 $ 17,407,226$ 1,510,032$ 6,465,058$ Accounts and other receivables (net of allowance
for doubtful accounts) - - - -
Due from fiduciary fund - - - -
Total Cur
rent Assets 4,519,272 17,407,226 1,510,032 6,465,058 Noncurrent Assets
Advances to other funds - 654,808 - -
Total Noncurr
ent Assets - 654,808 - -
CAPITAL ASSE
TS
Buildings and improvements - - - -
Machinery, equipment, and vehicles 62,621 - - 1,898,659 Intangible assets - - - 1,037,734
Construction in progress - - - 416,358
Total Capital Assets 62,621 - - 3,352,751
Less: Accumulated depreciation 62,621 - - 1,523,071 Net Total Capital Assets (net of accumulated depreciation) - - - 1,829,680 Total Assets 4,519,272 18,062,034 1,510,032 8,294,738
DEFERRED OUTFLOW OF RESOURCES
Deferred outflow on pension plans 155,526 250,123 637,598 1,506,608 Deferred outflow on other post-employment benefit plans (OPEB) - 28,140 104,887 209,774 Total Deferred Outflow of Resources 155,526 278,263 742,485 1,716,382
LIABILITIES
Current Liabilities
Accounts payable 502,990 441,541 129,423 778,993 Other liabilities 4,735 9,825 22,821 66,236
Compensated absences payable - current - 28,614 71,154 125,578 Other post-employment benefits payable - current - 1,682 6,167 12,334 Self-insurance claims - due within one year 2,592,113 6,794,132 - - Subscription liabilities - current - - - 399,449
Total Current Liabilities 3,099,838 7,275,794 229,565 1,382,590 Noncurrent Liabilities
Compensated absences payable - 14,713 36,587 64,571 Other post-employment benefits payable - 101,152 377,122 754,243 Net pension liabilities 485,024 790,643 2,011,496 4,762,139 Self-insurance claims 4,796,039 30,376,948 - -
Subscription liabilities - - - 498,504
Total Noncurrent Liabilities 5,281,063 31,283,456 2,425,205 6,079,457 Total Liabilities 8,380,901 38,559,250 2,654,770 7,462,047
DEFERRED INFLOW OF RESOURCES
Deferred inflow on pension plans 7,513 12,308 31,291 74,130 Deferred inflow on other post-employment benefit plans (OPEB) - 35,986 134,130 268,261 Total Deferred Inflow of Resources 7,513 48,294 165,421 342,391
NET POSITION
Net investment in capital assets - - - 931,727
Unrestricted (3,713,616) (20,267,247) (567,674) 1,274,955 TOTAL NET POSITION (3,713,616)$ (20,267,247)$ (567,674) $ 2,206,682 $ 218
-185-
FACILITIES EQUIPMENT
MAINTENANCE MAINTENANCE TOTAL
ASSETS
Current Assets
1,967,115$ 1,516,544$ 33,385,247$ Cash and investments Accounts and other receivables (net of allowance
(9,948) - (9,948) for doubtful accounts)
- 36 36 Due from fiduciary fund
1,957,167 1,516,580 33,375,335 Total Current Assets Noncurrent Assets
- - 654,808 Advances to other funds
- - 654,808 Total Noncurrent Assets
CAPITAL ASSETS
196,868 238,542 435,410 Buildings and improvements 398,974 4,641,592 7,001,846 Machinery, equipment, and vehicles - - 1,037,734 Intangible assets
- - 416,358 Construction in progress
595,842 4,880,134 8,891,348 Total Capital Assets
435,132 4,283,599 6,304,423 Less: Accumulated depreciation 160,710 596,535 2,586,925 Net Total Capital Assets (net of accumulated depreciation) 2,117,877 2,113,115 36,617,068 Total Assets
DEFERRED OUTFLOW OF RESOURCES
1,587,282 890,086 5,027,223 Deferred outflow on pension plans 342,802 323,615 1,009,218 Deferred outflow on other post-employment benefit plans (OPEB) 1,930,084 1,213,701 6,036,441 Total Deferred Outflow of Resources
LIABILITIES
Current Liabilities
128,928 878,889 2,860,764 Accounts payable
55,594 28,294 187,505 Other liabilities
208,610 57,728 491,684 Compensated absences payable - current 20,184 19,062 59,429 Other post-employment benefits payable - - 9,386,245 Self-insurance claims - due within one year - - 399,449 Subscription liabilities - current
413,316 983,973 13,385,076 Total Current Liabilities Noncurrent Liabilities
107,266 29,683 252,820 Compensated absences payable 1,232,515 1,163,523 3,628,555 Other post-employment benefits payable 4,979,835 2,794,334 15,823,471 Net pension liabilities - - 35,172,987 Self-insurance claims
- - 498,504 Subscription liabilities
6,319,616 3,987,540 55,376,337 Total Noncurrent Liabilities 6,732,932 4,971,513 68,761,413 Total Liabilities
DEFERRED INFLOW OF RESOURCES
77,307 43,390 245,939 Deferred inflow on pension plans 438,377 413,841 1,290,595 Deferred inflow on other post-employment benefit plans (OPEB) 515,684 457,231 1,536,534 Total Deferred Inflow of Resources
NET POSITION
160,710 596,535 1,688,972 Net investment in capital assets (3,361,365) (2,698,463) (29,333,410) Unrestricted (3,200,655)$ (2,101,928) $ (27,644,438)$ TOTAL NET POSITION 219
CITY OF OXNARD, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
-186-
PUBLIC
LIABILITY/ UTILITY
PROPERTY WORKERS' CUSTOMER INFORMATION
DAMAGE COMPENSATION SERVICE SERVICES
OPERATING REVENUES
Charges for services 6,731,504 $ 9,537,413 $ 2,826,891 $ 11,965,538 $ Miscellaneous - - - 4,644
Total Operating Income 6,731,504 9,537,413 2,826,891 11,970,182
OPERATING EXPENSES
Salaries and wages 238,117 691,179 1,479,631 1,884,892 Contractual services 261,416 808,285 99,699 1,714,306
Operating supplies - - - 177,365
Utilities - 1,116 21,526 595,845
Depreciation 516 - - 570,195
General and administrative 3,748,293 725,546 959,294 979,317 Repairs and maintenance - - 42,075 352,829
Claims expense 3,268,434 11,350,768 - -
Total Operating Expenses 7,516,776 13,576,894 2,602,225 6,274,749 OPERATING INCOME (LOSS) (785,272) (4,039,481) 224,666 5,695,433
NONOPERATING REVENUES (EXPENSES)
Gain (loss) on disposal of assets - - - -
Total Nonoperating Revenues (Expenses) - - - -
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS (785,272) (4,039,481) 224,666 5,695,433 TRANSFERS IN - - - 260,067
TRANSFERS OUT - - (29,552) (141,582)
CHANGES IN NET POSITION (785,272) (4,039,481) 195,114 5,813,918 NET POSITION - JULY 1. AS PREVIOUSLY STATED (2,615,680) (16,537,438) (90,631) (1,862,100) PRIOR-PERIOD ADJUSTMENT (312,664) 309,672 (672,157) (1,745,136) NET POSITION - JULY 1 (2,928,344) (16,227,766) (762,788) (3,607,236) NET POSITION - JUNE 30 (3,713,616)$ (20,267,247)$ (567,674) $ 2,206,682 $ 220
-187-
FACILITIES EQUIPMENT
MAINTENANCE MAINTENANCE TOTAL
OPERATING REVENUES
6,264,958$ 8,462,074 $ 45,788,378 $ Charges for services 29,335 16,243 50,222 Miscellaneous 6,294,293 8,478,317 45,838,600 Total Operating Income
OPERATING EXPENSES
3,590,222 1,591,100 9,475,141 Salaries and wages 602,360 297,686 3,783,752 Contractual services 318,764 2,175,104 2,671,233 Operating supplies 908,712 2,072,246 3,599,445 Utilities 5,022 182,268 758,001 Depreciation 837,902 752,980 8,003,332 General and administrative - 1,382,753 1,777,657 Repairs and maintenance - - 14,619,202 Claims expense 6,262,982 8,454,137 44,687,763 Total Operating Expenses 31,311 24,180 1,150,837 OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
-
2,098 2,098 Gain (loss) on disposal of assets - 2,098 2,098 Total Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CONTRIBUTIONS
31,311 26,278 1,152,935 AND TRANSFERS - - 260,067 TRANSFERS IN - - (171,134) TRANSFERS OUT 31,311 26,278 1,241,868 CHANGES IN NET POSITION (3,418,635) (5,460,587) (29,985,071) NET POSITION - JULY 1, AS PREVIOUSLY STATED 186,669 3,332,381 1,098,765 PRIOR-PERIOD ADJUSTMENT (3,231,966) (2,128,206) (28,886,306) NET POSITION - JULY 1 (3,200,655)$ (2,101,928) $ (27,644,438)$ NET POSITION - JUNE 30
221
CITY OF OXNARD, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
-188-
PUBLIC
LIABILITY/ UTILITY
PROPERTY WORKERS' CUSTOMER INFORMATION
DAMAGE COMPENSATION SERVICE SERVICES
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 6,731,504 $ 9,537,413 $ 2,826,891 $ 11,970,182 $ Payments to suppliers (3,550,802) (1,392,168) (1,056,156) (3,595,458) Payments to employees (1,149,043) (8,040,570) (1,354,725) (3,144,073) Cash paid to claimants (1,528,866) 3,824,194 - - Net Cash Pr
ovided By (Used In) Operating Activities 502,793 3,928,869 416,010 5,230,651
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Collection/(issuance) of advances - 122,680 - -
Transfers in - - - 260,067
Transfers out - - (29,552) (141,582)
Net Cash Provided By (Used In) Capital Financing Activities - 122,680 (29,552) 118,485
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES (Purchases)/disposals of capital assets - - - (1,022,726) Net Cash Provided By (Used In) Capital Financing Activities - - - (1,022,726)
NET INCREASE (DECREASE) IN CASH AND
INVESTMENTS 502,793 4,051,549 386,458 4,326,410
CASH AND INVESTMENTS - JULY 1 4,016,479 13,355,677 1,123,574 2,138,648 CASH AND INVESTMENTS - JUNE 30 4,519,272$ 17,407,226 $ 1,510,032 $ 6,465,058 $
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) (785,272) $ (4,039,481) $ 224,666 $ 5,695,433 $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used In) Operating Activities
Depreciation and amortization 516 - - 570,195 Changes in Operating Assets and Liabilities
(Increase) decrease in accounts receivable and due from other funds and governments - - - -
Increase (decrease) in accounts payable and other liabilities 449,247 136,463 33,382 139,293 Increase (decrease) in compensated absences - 18,759 6,608 (35,019) Increase (decrease) in other post-employment benefits payable - (55,799) 117,421 (443,172) Increase (decrease) in net pension liabilities (31,482) 281,446 33,933 (696,079) Increase (decrease) in self-insurance liability 869,784 7,587,481 - - Net Cash Pr
ovided By (Used In) Operating Activities 502,793$ 3,928,869 $ 416,010 $ 5,230,651 $ 222
-189-
FACILITIES EQUIPMENT
MAINTENANCE MAINTENANCE TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
6,306,178$ 8,478,477 $ 45,850,645 $ Receipts from customers and users (2,766,671) (6,602,535) (18,963,790) Payments to suppliers (3,494,900) (1,849,658) (19,032,969) Payments to employees - 1 2,295,329 Cash paid to claimants 44,607 26,285 10,149,215 Net Cash Provided By (Used In) Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
- (36) 122,644 Collection/(issuance) of advances - - 260,067 Transfers in - - (171,134) Transfers out - (36) 211,577 Net Cash Provided By (Used In) Capital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES -
(72,133) (1,094,859) (Purchases)/disposals of capital assets - (72,133) (1,094,859) Net Cash Provided By (Used In) Capital Financing Activities
NET INCREASE (DECREASE) IN CASH AND
44,607 (45,884) 9,265,933 INVESTMENTS 1,922,508 1,562,428 24,119,314 CASH AND INVESTMENTS - JULY 1 1,967,115$ 1,516,544 $ 33,385,247$ CASH AND INVESTMENTS - JUNE 30
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
31,311$ 24,180 $ 1,150,837$ Operating income (loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used In) Operating Activities
5,022 182,268 758,001 Depreciation and amortization Changes in Operating Assets and Liabilities
(Increase) decrease in accounts receivable and due from other funds 11,885 160 12,045 and governments (190,080) 19,940 588,245 Increase (decrease) in accounts payable and other liabilities 80,351 (33,248) 37,451 Increase (decrease) in compensated absences (300,691) (314,403) (996,644) Increase (decrease) in other post-employment benefits payable 406,809 147,387 142,014 Increase (decrease) in net pension liabilities -
1 8,457,266 Increase (decrease) in self-insurance liability 44,607$ 26,285 $ 10,149,215$ Net Cash Provided By (Used In) Operating Activities 223
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THIS PAGE LEFT INTENTIONALLY BLANK
224
FIDUCIARY
FUNDS
225
CITY OF OXNARD, CALIFORNIA
COMBINING STATEMENT OF FIDUCIARY NET POSITION -
CUSTODIAL FUNDS
JUNE 30, 2023
-191-
OXNARD
OXNARD PD DOWNTOWN
IMPROVEMENT PROPERTY MANAGEMENT RIVERPARK TOTAL
DISTRICTS ROOM DISTRICT JPA CUSTODIAL
FUND FUND FUND FUND FUNDS
ASSETS
Cash and investments 7,349,155$ 350,460 $ 294,470 $ 971,088 $ 8,965,173$ Investment with Fiscal Agents
Certificates of deposit 798,158 - - - 798,158 Total investment with fiscal agents 798,158 - - - 798,158 Interest receivable - - 883 4,407 5,290 Due from other governments 142,457 - 10,783 - 153,240 Total Assets 8,289,770 350,460 306,136 975,495 9,921,861
LIABILITIES
Accounts payable 218,282 $ 70,773 $ 146,500$ 31,465 $ 467,020$ TOTAL LIABILITIES 218,282 70,773 146,500 31,465 467,020
NET POSITION
Restricted for:
Individuals, organizations, and other governments 8,071,488 279,687 159,636 944,030 9,454,841 TOTAL NET POSITION 8,071,488$ 279,687 $ 159,636 $ 944,030 $ 9,454,841$ 226
CITY OF OXNARD, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION -
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
-192-
OXNARD
OXNARD PD DOWNTOWN
IMPROVEMENT PROPERTY MANAGEMENT RIVERPARK TOTAL
DISTRICTS ROOM DISTRICT JPA CUSTODIAL
FUND FUND FUND FUND FUNDS
ADDITIONS
Taxes 711,602 $ - $ -$ -$ 711,602$
Special assessments 3,505,290 - 355,890 - 3,861,180 Investment income 20,884 - (126) 11,798 32,556
Transfer from City of Oxnard 2,446,040 - - - 2,446,040 Total Additions 6,683,816 - 355,764 11,798 7,051,378
DEDUCTIONS
Administrative Costs
Administrative costs 75,979 - 931 - 76,910
Project improvements - - - 64,213 64,213
Distributions to individuals, organizations, and bond trustees 6,302,148 - 324,500 - 6,626,648 Total Deductions 6,378,127 - 325,431 64,213 6,767,771 CHANGE IN NET POSITION 305,689 - 30,333 (52,415) 283,607 NET POSITION - JULY 1, 2022 7,765,799 279,687 129,303 996,445 9,171,234 NET POSITION - JUNE 30, 2023 8,071,488$ 279,687 $ 159,636 $ 944,030 $ 9,454,841$ 227
STATISTICAL
SECTION
228
-193-
Statistical Section
(Unaudited)
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.
Schedule I Net Position by Component
Schedule II Changes in Net Position
Schedule III Fund Balances of Governmental Funds
Schedule IV Changes in Fund Ba lances of Government Funds Schedule V Government Activities Tax Revenue by Source
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.
Schedule VI Assessed Value and Esti mated Value of Taxable Property Schedule VII Direct and Over lapping Property Tax Rates Schedule VIII Principal Property Taxpayers
Schedule IX Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Schedule X Ratios of Outstanding Debt by Type
Schedule XI Direct and Overlapping Government Activities Debt Schedule XII Legal Debt Margin Information
Schedule XIII Pledged Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
Schedule XIV Demographic and Economic Statistics
Schedule XV Principal Employers
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 the activities it performs.
Schedule XVI Operating Indicators by Function
Schedule XVII Capital Assets by Function
Schedule XVIII Full-time Equivalent City Government Employees by Function 229
City of Oxnard, California
SCHEDULE I
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-194-
2014 2015 2016 2017 2018
Governmental activities
Net investment in capital asset 1,400,890,107 $ 1,455,133,818 $ 1,422,282,798 $ 2,001,415,357 $ 1,994,002,850 $ Restricted 45,801,395 112,198,502 112,286,017 130,642,696 134,054,312 Unrestricted 8,226,160 (220,258,407) (197,252,502) (185,857,985) (234,226,319) Total governmental activities net position 1, 454,917,662$ 1,347,073,913 $ 1,337,316,313 $ 1,946,200,068 $ 1,893,830,843 $ Business-type activities
Net investment in capital asset 287,649,591$ 225,738,617$ 223,977,717$ 228,709,541$ 224,139,834$ Restricted 17,096,075 15,400,679 38,064,498 41,732,645 48,789,711 Unrestricted 44,328,734 28,909,066 3,139,325 7,938,770 20,863,126 Total business-type activities net position 349,074,400$ 270,048,362$ 265,181,540$ 278,380,956$ 293,792,671$ Primary government
Net investment in capital asset 1,688,539,698$ 1,680,872,435 $ 1,646,260,515 $ 2,230,124,898 $ 2,218,142,684 $ Restricted 62,897,470 127,599,181 150,350,515 172,375,341 182,844,023 Unrestricted 52,554,894 (191,349,341) (194,113,177) (177,919,215) (213,363,193) Total primary government net position 1, 803,992,062$ 1,617,122,275 $ 1,602,497,853 $ 2,224,581,024 $ 2,187,623,514 $ Source: Finance Department, City of Oxnard
Fiscal Year
230
City of Oxnard, California
SCHEDULE I (Continued)
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-195-
2019 2020 2021 2022 2023
Governmental activities
1,993,824,011$ 1,993,055,539 $ 1,945,377,175 $ 1,901,675,190 $ 1,916,938,386 $ Net investment in capital asset 94,429,644 105,403,013 111,307,894 108,729,988 113,608,179 Restricted (203,632,014) (227,238,168) (255,508,666) (143,587,887) (117,300,866) Unrestricted 1,884,621,641$ 1,871,220,384 $ 1,801,176,403 $ 1,866,817,291 $ 1,913,245,699 $ Total governmental activities net position Business-type activities
224,259,193$ 232,190,732$ 259,185,934$ 302,265,460$ 294,321,444$ Net investment in capital asset 54,283,623 51,610,199 49,217,330 44,238,652 63,932,130 Restricted 43,176,882 57,516,060 134,183,679 95,558,083 77,722,620 Unrestricted 321,719,698$ 341,316,991$ 442,586,943$ 442,062,195$ 435,976,194$ Total business-type activities net position Primary government
2,218,083,204$ 2,225,246,271 $ 2,204,563,109 $ 2,203,940,650 $ 2,211,259,830 $ Net investment in capital asset 148,713,267 157,013,212 160,525,224 152,968,640 177,540,309 Restricted (160,455,132) (169,722,108) (121,324,987) (48,029,804) (39,578,246) Unrestricted 2,206,341,339$ 2,212,537,375 $ 2,243,763,346 $ 2,308,879,486 $ 2,349,221,893 $ Total primary government net position Fiscal Year
231
City of Oxnard, California
SCHEDULE II
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-196-
2014 2015 2016 2017 2018
Expenses
Governmental activities:
General gov ernment $17,851,478 $12,223,337 $8,354,282 $30,057,710 $56,051,634 Public safety 105,886,922 97,913,468 90,250,713 95,103,088 114,056,089 Transportation 10,151,437 23,333,586 29,435,256 8,753,004 13,352,627 Community dev elopment 16,445,165 13,137,896 12,634,325 12,476,593 17,439,549 Culture, leisure and libraries 24,990,947 32,635,299 32,157,517 30,258,609 34,039,463 Housing - - - - -
Interest on long-term debt 2,792,053 4,517,686 4,920,717 4,755,955 9,745,886 Total gov ernmental activ ities expenses 178,118,002 183,761,272 177,752,810 181,404,959 244,685,248 Business-type activities:
Water $44,839,558 $55,799,990 $56,786,402 $57,904,193 $57,617,733 Wastewater 34,959,148 37,993,468 34,807,726 32,926,365 33,512,156 Env ironmental resource 39,083,017 37,802,942 37,644,732 42,534,157 45,633,543 Performing arts and conv ention center 1,543,601 - - - - Oxnard housing authority 25,617,591 23,584,181 23,441,364 26,060,498 27,888,924 Municipal golf course 6,399,227 - - - -
Total business-type activ ities expenses 152,442,142 155,180,581 152,680,224 159,425,213 164,652,356 Total primary gov ernment expenses $330,560,144 $338,941,853 $330,433,034 $340,830,172 $409,337,604 Program Revenues
Governmental activities:
Charges for services:
General gov ernment $8,808,647 $5,165,703 $20,541,355 $20,460,685 $13,020,442 Public safety 4,878,804 4,904,728 8,015,887 6,528,319 7,913,075 Transportation 3,345,515 2,630,954 5,930,798 3,072,659 1,883,525 Public works - - - - -
Community development 7,767,004 16,542,075 10,212,020 13,353,523 7,583,696 Culture, leisure and libraries 5,334,160 8,453,994 4,297,074 10,903,104 12,448,275 Housing - - - - -
Operating grants and contributions 32,350,516 29,420,545 9,526,620 16,948,122 16,938,767 Capital grants and contributions 7,486,869 12,300,850 9,925,337 3,276,277 3,501,368 Total gov ernmental activ ities program rev enues 69,971,515 79,418,849 68,449,091 74,542,689 63,289,148 Fiscal Year
232
City of Oxnard, California
SCHEDULE II (Continued)
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-197-
2019 2020 2021 2022 2023
Expenses
Governmental activities:
$47,292,219 49,736,893$ 51,432,611$ 46,053,309$ 26,045,796$ General government 110,217,029 114,506,731 120,565,552 113,731,717 132,980,119 Public safety 11,366,628 11,604,027 11,426,788 13,087,346 59,150,684 Transportation 21,205,257 19,160,074 22,205,817 21,689,712 10,057,675 Community development 37,043,785 35,010,443 31,219,370 37,402,631 17,400,561 Culture, leisure and libraries - - - - 10,180,614 Housing
4,451,689 3,811,560 3,850,416 3,721,942 3,548,487 Interest on long-term debt 231,576,607 233,829,728 240,700,554 235,686,657 259,363,936 Total gov ernmental activ ities expenses Business-type activities:
$55,883,239 56,202,066$ 57,774,449$ 66,845,048.00$ 64,460,086 Water 31,783,839 34,668,068 34,083,527 35,836,577 37,234,300 Wastewater 46,314,446 50,550,599 50,609,180 46,956,163 50,482,111 Environmental resource - - - - - Performing arts and convention center 27,634,063 29,914,394 30,782,861 28,211,702 34,437,715 Oxnard housing authority - - 4,741,945 5,334,578 5,694,314 Municipal golf course 161,615,587 171,335,127 177,991,962 183,184,068 192,308,526 Total business-type activ ities expenses $393,192,194 $405,164,855 $418,692,516 $418,870,725 $451,672,462 Total primary gov ernment expenses Program Revenues
Governmental activities:
Charges for services:
$18,177,999 $15,639,751 $16,591,018 $816,910 10,576,686 $ General government 8,637,284 5,147,924 4,984,405 6,752,504 6,475,878 Public safety 2,008,345 2,697,018 5,023,139 3,084,378 - Transportation - - - - 10,8 6 8,488 Public works
12,898,111 15,054,972 17,167,989 11,617,112 8,479,985 Community development 13,953,808 14,420,117 8,803,499 8,743,383 1,097,398 Culture, leisure and libraries - - - - 259,127 Housing
14,689,127 16,059,481 27,187,140 46,713,741 46,187,436 Operating grants and contributions 9,838,626 9,252,544 7,551,745 8,415,870 - Capital grants and contributions 80,203,300 78,271,807 87,308,935 86,143,898 83,944,998 Total gov ernmental activ ities program rev enues Fiscal Year
233
City of Oxnard, California
SCHEDULE II (Continued)
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-198-
2014 2015 2016 2017 2018
Business-type activities:
Charges for services:
Water 52,742,289 48,048,380 47,502,553 50,364,868 62,447,893 Wastewater 31,335,380 32,074,140 30,622,683 39,565,773 41,076,417 Environmental resource 44,392,421 43,394,227 41,498,072 48,039,047 48,910,217 Performing arts and convention center 666,820 - - - - Oxnard housing authority 26,158,985 - 6,569,503 5,267,343 5,968,193 Municipal golf course 4,471,706 5,168,698 - - - Operating grants and contributions 53,734 17,853,909 19,655,951 21,177,738 21,635,711 Capital grants and contributions 671,012 919,149 946,347 963,291 1,349,188 Total business-like activities program revenues 160,492,347 147,458,503 146,795,109 165,378,060 181,387,619 Total primary government program revenues 230,463,862 226,877,352 215,244,200 239,920,749 244,676,767 Net (expense) revenue
Governmental activities (108,146,487) (104,342,423) (109,303,719) (106,862,270) (181,396,100) Business-like activities 8,050,205 (7,722,078) (5,885,115) 5,952,847 16,735,263 Total primary government net expense (100,096,282) (112,064,501) (115,188,834) (100,909,423) (164,660,837) General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 54,783,756 58,633,590 61,571,660 60,802,119 67,165,834 Sales taxes 38,330,268 40,624,737 43,163,411 44,092,707 43,418,876 Transient occupancy taxes 4,239,111 4,649,292 5,044,231 5,174,427 5,749,572 Franchise taxes 3,775,233 4,093,435 3,854,1
16 3,703,971 3,925,374
Deed transfer taxes 519,093 758,502 690,805 729,609 818,322 Business license taxes 5,125,801 5,104,859 5,422,499 5,348,086 5,570,488 Penalties on delinquent taxes 157,998 141,127 225,990 228,899 313,847 Investment earnings 1,165,783 807,618 752,064 1,989,004 1,404,527 Sale of capital assets 114,348 - - - -
Special Items - - - - 10,657,104
Transfers (2,207,463) 6,439,487 62,396 442,852 200,818 Extraordinary loss - - - - -
Contributions to other government - - - - (1,940,127) Total governmental activities 106,003,928 121,252,647 120,787,172 122,511,674 137,284,635 Business-type activities:
Investment earnings 2,997,078 2,735,395 2,482,980 2,440,982 1,839,114 Sale of capital assets - - - - -
Contributions from/(to) other government - - - - 1,940,127 Transfers 2,207,463 (6,439,487) (62,396) (442,852) (200,818) Total business-type activities 5,204,541 (3,704,092) 2,420,584 1,998,130 3,578,423 Total primary program 111,208,469 117,548,555 123,207,756 124,509,804 140,863,058 Chang
e in Net Position
Governmental activities (2,142,559) 16,910,224 11,483,453 15,649,404 (44,111,465) Business-type activities 13,254,746 (11,426,170) (3,464,531) 7,950,977 20,313,686 Total primary government 11,112,187 5,484,054 8,018,922 23,600,381 (23,797,779) Source: Finance Department, City of Oxnard
Fiscal Year
234
City of Oxnard, California
SCHEDULE II (Continued)
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-199-
2019 2020 2021 2022 2023
Business-type activities:
Charges for services:
$59,825,449 59,884,394 $62,227,968 $57,211,384 52,868,819 Water 45,098,831 45,109,125 48,021,835 43,448,032 45,599,034 Wastewater 47,534,591 48,694,690 46,757,277 43,365,998 45,650,825 Environmental resource - - - - Performing arts and convention center 5,976,701 4,740,597 6,184,299 5,323,254 5,627,664 Oxnard housing authority - - 5,758,442 6,398,280 6,294,905 Municipal golf course 21,866,012 24,388,234 26,016,248 24,640,627 28,634,591 Operating grants and contributions - - - 1,719,118 2,557,794 Capital grants and contributions 180,301,584 182,817,040 194,966,069 182,106,693 187,233,632 Total business-like activities program revenues $260,504,884 $261,088,847 $282,275,004 $268,250,591 $271,178,630 Total primary government program revenues Net (expense) revenue
(151,373,307) (155,557,921) (153,391,619) (149,542,759) (175,418,938) Governmental activities 18,685,997 11,481,913 16,974,107 (1,077,375) (5,074,894) Business-like activities ($132,687,310) ($144,076,008) ($136,417,512) ($150,620,134) ($180,493,832) Total primary government net expense General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
$70,227,546 72,208,270$ $81,447,932 $78,630,717 78,849,939 Property taxes 48,518,650 46,320,415 67,923,383 118,083,508 128,533,831 Sales taxes 5,557,470 4,302,491 4,267,463 5,117,229 5,271,128 Transient occupancy taxes 3,887,252 3,972,958 4,287,254 4,557,215 5,303,433 Franchise taxes 692,685 673,842 910,934 978,170 679,570 Deed transfer taxes 6,167,475 6,087,060 5,964,716 6,537,611 6,677,266 Business license taxes 361,488 406,774 201,657 92,544 294,969 Penalties on delinquent taxes 5,771,878 3,049,270 968,386 1,055,755 757,515 Investment earnings (69,964) - - - 2,098 Sale of capital assets - 1,514,213 - - - Special Items
243,045 107,452 (82,415,174) 130,897 (12,082,151) Transfers - - - - - Extraordinary loss
789,392 - - - - Co n tributions to other government 142,146,917 138,642,745 83,556,551 215,183,646 214,287,598 Total governmental activities Business-type activities:
7,612,740 3,463,839$ 834,362$ 683,524$ 2,076,950 Investment earnings (417,291) - - - 1,657,939 Sale of capital assets (221,058) 1,147,938 1,046,309 - Contributions to/(from) other government (243,045) (107,452) 82,415,174 (130,897) 9,727,732 Transfers 6,731,346 4,504,325 84,295,845 552,627 13,462,621 Total business-type activities $148,878,263 $143,147,070 $167,852,396 $215,736,273 $227,750,219 Total primary program Change in Net Position
(9,226,390) (16,915,176) (69,835,068) 65,640,887 38,868,660 Governmental activities 25,417,343 15,986,238 101,269,952 (524,748) 8,387,727 Business-type activities $16,190,953 ($928,938) $31,434,884 $65,116,139 $47,256,387 Total primary government Fiscal Year
235
City of Oxnard, California
SCHEDULE III
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-200-
Fiscal Year
2014 2015 2016 2017 2018
General Fund
Unreserved 4,620,492 $ - $ -$ -$ -$
Nonspendable - - - - -
Restricted - - 550,000 835,296 10,558,537
Committed - - - - 12,662,261
Assigned 18,409,417 11,315,859 15,879,092 23,283,091 -
Unassigned 13,916,093 13,459,906 17,858,980 22,150,403 17,241,635 Total general fund 36,946,002$ 24,775,765$ 34,288,072$ 46,268,790$ 40,462,433$ All other governmental funds
Nonspendable -$ -$ 104,736$ -$ -$
Restricted 49,083,954 74,810,464 69,258,707 80,403,821 73,585,992 Committed - - - - -
Assigned 5,498,036 9,639,955 10,007,525 12,774,735 17,563,011 Unassigned (2,062,158) (1,493,635) (290,834) (762,744) - Total all other governmental funds 52,519,832$ 82,956,784$ 79,080,134$ 92,415,812$ 91,149,003$ Source: Finance Department, City of Oxnard
236
City of Oxnard, California
SCHEDULE III (Continued)
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-201-
Fiscal Year
2018 2019 2020 2021 2022 2023
General Fund
-$ -$ -$ -$ -$ -$ Unreserved
- - - - 3,589,072 399,520 Nonspendable
10,558,537 10,527,983 - - - - Restricted 12,662,261 22,560,234 33,066,407 22,896,490 19,056,388 43,631,177 Committed - 282,831 - - - 27,812,072 Assigned
17,241,635 8,863,430 5,274,097 (3,048,424) 35,350,299 19,387,541 Unassigned 40,462,433$ 42,234,478$ 38,340,504$ 19,848,066$ 57,995,759$ 91,230,310$ Total general fund All other governmental funds
-$ -$ -$ -$ -$ 3,891$ Nonspendable
73,585,992 83,901,661 105,403,013 111,307,894 108,729,988 113,608,179 Restricted - - - - - 1,107,742 Committed
17,563,011 13,794,611 1,720,384 1,608,910 22,010,958 - Assigned - - (380,746) (146,682) (163,391) - Unassigned 91,149,003$ 97,696,272$ 106,742,651$ 112,770,122$ 130,577,555$ 114,719,812$ Total all other governmental funds 237
City of Oxnard, California
SCHEDULE IV
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-202-
Fiscal Year
2014 2015 2016 2017 2018
Revenues
T axes $106,888,431 $113,864,415 $119,746,722 $119,850,919 $126,648,408 Licenses and permits 3,628,916 3,092,838 3,402,217 4,222,838 3,306,324 Intergov ernmental 40,960,669 41,721,395 21,455,873 20,224,399 20,440,135 Growth and dev elopment fees 3,512,534 3,442,898 4,452,750 7,100,771 2,342,768 Charges for serv ices 9,617,645 11,144,204 25,471,392 23,969,821 20,570,129 Fines and forfeitures 699,521 765,857 1,413,718 2,537,822 2,438,772 Interest 1,165,783 657,609 657,140 1,949,489 1,271,263
Special assessments 8,022,913 7,993,871 9,613,886 8,367,032 9,018,025 Contributions from property owners - - - - -
Rental income - - - - -
Investment income - - - - -
Miscellaneous 6,803,374 11,233,279 4,987,667 8,588,557 6,339,266 T otal rev enues 181,299,786 193,916,366 191,201,365 196,811,648 192,375,090 Expenditures
General gov ernment 9,926,024 13,384,549 11,368,350 13,360,687 17,769,349 Public safety 93,875,139 95,777,400 93,676,090 94,676,659 102,770,375 T ransportation 9,495,806 9,228,976 7,325,513 8,314,157 12,346,380 Public works - - - - -
Community dev elopment 15,495,566 12,680,862 12,268,857 16,462,067 15,832,210 Culture, leisure and libraries 22,745,632 28,845,257 26,937,798 27,534,000 30,504,647 Housing - - - - -
Capital outlay 13,983,543 13,835,114 20,898,762 8,737,398 16,767,682 Debt Service:
Principal 3,764,935 6,884,661 6,641,368 5,573,572 5,278,145 Interest 2,776,612 4,225,920 4,530,126 4,932,901 9,276,932 T otal expenditures 172,063,257 184,862,739 183,646,864 179,591,441 210,545,720 Excess of rev enues ov er (under) expenditures 9,236,529 9,053,627 7,554,501 17,220,207 (18,170,630) Other Financing Sources (Uses)
Proceeds from financing sources - - - - -
Payment to escrow agent - - - - (27,785,000.00) Proceeds from sale of bonds 363,387 23,765,460 - - 37,608,582.00 Cost of issuance - (3,764,693) - - -
Bond discount - - - - -
Issuance of debt - - - - -
Inception of subscription-based IT arrangements - - - - - Transfer from fiduciary funds - - - - -
Transfer to fiduciary funds - - - - -
T ransfers in 5,570,120 14,594,844 10,964,565 9,632,647 13 ,140,181
T ransfers out (7,777,583) (19,495,238) (11,125,968) (9,957,565) (13,639,820) T otal other financing sources (uses) (1,844,076) 15,100,373 (161,403) (324,918) 9,323,943 Special items:
Bond proceeds from Successor Agency - - - - 9,896,298 Total sp
ecial items - - - - 9,896,298
Net change in fund balances $7,392,453 $24,154,000 $7,393,098 $16,895,289 $1,049,611 Debt service as a percentage of noncapital expenditures 4.14% 6.50% 6.47% 6.44% 6.10% Source: Finance Department, City of Oxnard
238
City of Oxnard, California
SCHEDULE IV (Continued)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-203-
Fiscal Year
2019 2020 2021 2022 2023
Revenues
$135,051,078 $133,565,036 $164,801,682 213,904,450 $ 225,315,167$ Taxes 4,057,972 3,852,280 5,019,520 3,702,771 5,381,448 Licenses and permits 24,527,753 25,312,025 34,738,885 55,129,611 46,187,436 Intergovernmental 6,310,510 2,313,182 12,036,333 4,104,875 4,168,962 Growth and dev elopment fees 21,302,912 23,772,644 19,339,452 17,539,473 13,116,597 Charges for services 2,693,405 3,381,758 1,924,384 2,613,509 2,816,558 Fines and forfeitures 5,293,976 3,049,270 968,386 1,055,755 - Interest
9,142,871 8,223,416 7,461,211 6,932,860 6,503,861 Special assessments - - - - - Contributions from property owners - - - - - Rental income
- - - - 757,515 Investment income
10,982,388 5,615,546 6,580,337 (3,942,474) 6,014,880 Miscellaneous 219,362,865 209,085,157 252,870,190 301,040,830 310,262,424 Total rev enues Expenditures
17,566,664 21,597,780 16,558,258 21,533,767 21,926,995 General government 103,505,038 111,150,931 113,774,066 120,317,318 131,043,033 Public safety 10,808,214 11,198,258 11,093,922 12,787,453 - Transportation - - - - 39,132,067 Public works
19,402,262 17,755,657 23,840,597 20,096,478 12,802,525 Community development 32,696,129 31,859,562 28,871,680 35,483,009 16,779,191 Culture, leisure and libraries - - - - 10,170,206 Housing
16,277,911 8,992,813 23,579,052 28,092,448 44,919,399 Capital outlay Debt Service:
6,121,274 5,952,119 5,835,030 6,542,675 7,269,096 Principal 4,957,649 5,714,456 4,086,553 3,873,096 3,861,642 Interest 211,335,141 214,221,576 227,639,158 248,726,244 287,904,154 Total expenditures 8,027,724 (5,136,419) 25,231,032 52,314,586 22,358,270 Excess of revenues over (under) expenditures Other Financing Sources (Uses)
- - - 3,300,000.00 - Proceeds from financing sources - (39,695,000) - - - Payment to escrow agent
- 44,520,000 - - - Proceeds from sale of bonds
- (983,059) - - - Cost of issuance
- 2,875,507 - - - Bond discount/premuim
- - - - 5,320,000 Issuance of debt
- - - - 1,869,621 Inception of subscription-based IT arrangements - - - - 91,621 Transfer from fiduciary funds
- - - - (2,446,040) Transfer to fiduciary funds 12,370,626 13,668,887 9,801,455 36,942,178 56,404,284 Transfers in (12,096,584) (13,494,482) (47,288,541) (36,601,638) (66,220,948) Transfers out 274,042 6,891,853 (37,487,086) 3,640,540 (4,981,462) Total other financing sources (uses) Special items:
- 1,514,213 - - - Bond proceeds from Successor Agency - 1,514,213 - - - Total special items
$8,301,766 $3,269,647 ($12,256,054) $55,955,126 $17,376,808 Net change in fund balances
5.68% 5.52% 4.50% 4.53% 4.49% Debt service as a percentage of noncapital expenditures 239
City of Oxnard, California
SCHEDULE V
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
-204-
Fiscal Property Sales Business Transient Franchise Deed Penalties Year Tax Tax License Occupancy Tax Tax Transfer Tax and Interest Total 2014 54,783,756 38,287,439 5,125,801 4,239,111 3,775,233 519,093 157,998 106,888,431 2015 58,633,590 40,624,737 5,104,859 4,649,292 4,093,435 758,502 142,127 114,006,542 2016 61,571,660 43,163,411 5,422,499 5,044,231 3,854,116 690,805 225,990 119,972,712 2017 60,802,119 44,092,707 5,348,086 5,174,427 3,703,971 729,609 228,899 120,079,818 2018 67,165,834 43,418,876 5,570,488 5,749,572 3,925,374 818,322 313,847 126,962,313 2019 70,227,546 48,518,650 6,167,475 5,557,470 3,887,252 692,685 361,488 135,412,566 2020 72,208,270 46,320,415 6,087,060 4,302,491 3,972,958 673,842 406,774 133,971,810 2021 81,447,932 67,923,383 5,964,716 4,267,463 4,287,254 910,934 201,657 165,003,339 2022 78,630,717 118,083,508 6,537,644 5,117,229 4,557,215 978,170 92,544 213,997,027 2023 78,849,939 128,533,831 6,677,266 5,271,128 5,303,433 679,570 294,969 225,610,136 240
City of Oxnard, California
SCHEDULE VI
Assessed Value and Estimated Value of Taxable Property
Last Ten Fiscal Years
-205-
Fiscal Personal Less: Tax Exempt Total Taxable Total Direct Estimated Actual as a Percentage Year Land Improvements Property Real Property Asse ssed Value Tax Rate Taxable Value of Actual Value 2014 6,551,413,092 9,120,556,468 638,670,637 694,237,291 15,616,402,906 1.25544% 15,616,402,906 100.00% 2015 7,084,272,773 9,694,262,028 631,218,103 708,835,243 16,700,917,661 1.25556% 16,700,917,661 100.00% 2016 7,653,508,229 10,068,135,286 652,518,246 753,110,464 17,621,051,297 1.24681% 17,621,051,297 100.00% 2017 8,130,791,365 10,403,624,296 664,679,543 784,759,788 18,414,335,416 1.22712% 18,414,335,416 100.00% 2018 8,649,933,708 10,789,755,377 656,241,587 840,285,136 19,255,645,536 1.24657% 19,255,645,536 100.00% 2019 9,158,364,520 11,207,158,483 695,095,800 896,108,612 20,164,510,191 1.24170% 20,164,510,191 100.00% 2020 9,521,436,348 11,777,652,006 754,828,010 971,603,310 21,082,313,054 1.23896% 21,082,313,054 100.00% 2021 10,007,398,417 12,192,935,872 784,723,628 1,041,411,917 21,943,646,000 1.24885% 21,943,646,000 100.00% 2022 10,517,196,744 12,768,851,940 840,576,868 1,138,267,594 22,988,357,958 1.22788% 22,988,357,958 100.00% 2023 11,253,772,579 13,475,931,442 991,305,490 1,123,639,089 24,597,370,422 1.20824% 24,597,370,422 100.00% NOTE: The County does not provide the breakdown of residential and commercial assessed values to the cities. The City also no longer has the information available for the residential and commercial assessed values. The personal property amounts include assessed values for boats and aircraft.
Source: County of Ventura, Office of the Auditor-Controller Finance Department, City of Oxnard; HDL Coren & Cone
241
City of Oxnard, California
SCHEDULE VII
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
-206-
Fiscal Total Direct &
Year Basic (1) Debt Service (2) Total Direct (3) School Districts (4) Water Districts (5) Total Overlapping Overlapping Rates 2014 1.00000% 0.25544% * 1.25544% 0.14140% 0.00350% 0.14490% 1.40034% 2015 1.00000% 0.25556% * 1.25556% 0.12060% 0.00350% 0.12410% 1.37966% 2016 1.00000% 0.24681% * 1.24681% 0.12640% 0.00350% 0.12990% 1.37671% 2017 1.00000% 0.22712% * 1.22712% 0.13840% 0.00350% 0.14190% 1.36902% 2018 1.00000% 0.24657% 1.24657% 0.29110% 0.00350% 0.29460% 1.54117% 2019 1.00000% 0.24170% 1.24170% 0.33120% 0.00350% * 0.33470% 1.57640% 2020 1.00000% 0.23896% 1.23896% 0.36440% 0.00350% 0.36790% 1.60686% 2021 1.00000% 0.24885% 1.24885% 0.38390% 0.00350% 0.38740% 1.63625% 2022 1.00000% 0.22788% 1.22788% 0.34750% 0.00350% 0.35100% 1.57888% 2023 1.00000% 0.20824% 1.20824% 0.31080% 0.00350% 0.31430% 1.52254% NOTE:
* Correction of prior year data
Source: County of Ventura, Office of the Auditor-Controller HdL, Coren & Cone
(5) Overlapping rate for Metroploitan Water District and Calleguas Muni Water Annex#16. Reflects actual overlapping rate.
Not all overlapping rates apply to all city property owners.
City Direct Rates Overlapping Rates
(1) The passage of Proposition 13 on June 6, 1978 established a maximum countywide lev y of 1% of market v alue or $1.00 per $100 of assessed value. (2) Total Direct Rate is the weighted average of all individual direct rates applied by the Entity preparing the statistical section and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rates.
Challenges to recognized enforceable obligations are assumed to hav e been resolv ed during 2012/13. For report purposes, residual revenue is assumed to have been distributed to the City in the same proportion as General Fund Revenue. (4) The school district rates are for applicable school districts (3) Total Direct rate as presented is the Basic Levy plus Direct Debt Service 242
City of Oxnard, California
SCHEDULE VIII
Principal Property Taxpayers
Current Year and Nine Years Ago
-207-
Taxable Percentage of T axable Percentage of
Taxpayer Assessed Total Taxable Assessed Total Taxable
Value Rank Assessed Value Value Rank Assessed Value
Amazon Com Services LLC 325,387,098 1 1.32% - 0.00%
Procter & Gamble Paper Products 320,092,851 2 1.29% 318,375,847 1 2.02% Essex Arbors LP 234,675,633 3 0.95% 202,081,727 2 1.28% SOCM I LLC 141,047,874 4 0.57% 116,023,164 3 0.74% Serenade Apts Properties Owners LLC 119,489,675 5 0.48% - 0.00% Arctic Cold Oxnard LLC 105,089,778 6 0.43% 0.00%
G-I IX Esplanade Property LP 99,840,587 7 0.40% - 0.00% HAAS Automation Inc 99,232,500 8 0.40% 78,059,700 7 0.50% 2060 Zocolo LLC 95,673,601 9 0.39% - 0.00%
New-Indy Oxnard LLC 87,249,117 10 0.35% 69,467,684 9 0.44% Genon Energy West LP - Ormond Beach - 112,900,000 4 0.72% Capri of KW Serenade LLC - 84,691,280 5 0.54%
Prime Penisula LP - 84,540,000 6 0.54%
BG Terminal California LLC - 74,726,336 8 0.47%
Duesenberg Investment Company - 68,471,332 10 0.43%
Other taxpayers 23,091,413,961 93.41% 14,545,411,612 92.32% Totals 24,719,192,675 100.00% 15,754,748,682 100.00%
Source: HdL Coren & Cone
^ Pending appeals on parcels.
2023 2014
243
City of Oxnard, California
SCHEDULE IX
Property Tax Levies and Collections
Last Ten Fiscal Years
-208-
Y ear Collections in
Ended Total Tax Levy Subsequent
June 30 for Fiscal Year (1 )* Amount (2) * Percentage of Levy Years (1) Amount Percentage of Levy 2014 55,460,847 54,486,910 98.24% 456,769 54,943,679 99.07% 2015 59,303,044 57,509,993 96.98% 910,819 58,420,812 98.51% 2016 62,235,867 61,750,178 99.22% 350,407 62,100,585 99.78% 2017 61,751,329 58,086,482 94.07% 1,523,414 59,609,896 96.53% 2018 68,260,701 65,473,266 95.92% 903,482 66,376,748 97.24% 2019 71,278,856 68,423,547 95.99% 1,290,711 69,714,258 97.80% 2020 73,286,724 71,206,672 97.16% 1,175,364 72,382,036 98.77% 2021 82,559,732 77,736,649 94.16% 1,714,499 79,451,148 96.23% 2022 79,699,659 75,775,563 95.08% 1,323,291 77,098,854 96.74% 2023 79,897,712 76,312,644 95.51% 1,932,252 78,244,896 97.93% Source: (1) Finance Department, City of Oxnard
(2) County of Ventura
Correction * Property tax levy and collection amounts include secured and unsecured property taxes, property tax in lieu of vehicle license fee (VLF), public safety property tax and distributions from the Redevelopment Property Tax Trust Fund (RPTTF), and exclude special assessments Fiscal Year of the Levy Total Collections to Date
Collected within the
244
City of Oxnard, California
SCHEDULE X
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
-209-
CEG I K MN O Q
(1)
Fiscal Revenue Certificates of Tax Allocation Capital Revenue Capital Notes Total Primary Percentage of Year Bonds Participation Bonds Leases Bonds Leases Payable Government Personal Incom e 2014 32,453,939 24,755,000 - 9,943,968 347,340,473 2,093,846 - 416,587,226 10.252% 2015 71,026,930 24,064,918 - 22,159,563 316,333,774 1,546,350 - 435,131,535 10.581% 2016 66,823,533 23,464,945 - 21,558,130 305,514,850 1,034,692 - 418,396,150 10.043% 2017 64,280,135 22,839,973 - 19,873,684 295,626,652 552,843 - 403,173,287 9.716% 2018 66,940,356 22,180,000 - 22,695,103 285,697,297 5,073,701 - 402,586,457 9.318% 2019 63,984,454 21,460,000 - 20,060,511 278,192,906 4,590,375 - 388,288,246 8.434% 2020 89,363,537 - - 17,827,064 267,148,736 4,117,507 - 378,456,844 7.957% 2021 85,260,598 - - 15,801,116 273,910,375 3,655,774 269,710 378,897,573 7.599% 2022 80,944,184 - - 16,655,461 264,335,753 11,872,159 269,710 374,077,267 7.295% 2023 76,357,669 - - 19,532,353 252,596,306 9,963,927 269,710 358,719,965 6.688% NOTE: (1) Details regarding the City's outstanding debt can be found in the notes to the financial statements. (2) Demographic and Economic Statistics for personal income and population data HDL Coren & Cone * Corrected to use 2018 Per Capita not 2017 per HDL Coren & Cone Source: Finance Department, City of Oxnard
HDL Coren & Cone
Governmental Activities Business-type Activities
245
City of Oxnard, California
SCHEDULE XI
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022
-210-
Estimated Estimated
Debt Percentage Share of
Governmental Unit Outstanding A pplicable Overlapping Debt City of Oxnard Overlapping Tax Debt (1):
Metropolitan Water District 19,215,000 0.673% 129,317
Ventura County Community College District 244,336,692 15.167% 37,058,546 Oxnard Union High School District 436,477,016 46.449% 202,739,209 Oxnard School District 340,058,816 92.667% 315,122,303
Rio School District 99,552,895 86.163% 85,777,761
Rio School District Community Facilities District No 1 63,015,000 100.000% 63,015,000 Hueneme School District 59,045,506 42.393% 25,031,161
Ocean View School District 9,228,362 40.595% 3,746,254
City of Oxnard Community Facilities District 1 6,180,000 100.000% 6,180,000 City of Oxnard Community Facilities District 3 21,425,000 100.000% 21,425,000 City of Oxnard Boulevard Highway Communities Facilities District 4,340,000 100.000% 4,340,000 City of Oxnard - Rice Av enue/Hwy 101 Assessment District 2001-1 7,060,000 100.000% 7,060,000 City of Oxnard - Oxnard Blv d/Hwy 101 Assessment District 2000-1 1,315,000 100.000% 1,315,000 California Statewide Community Development Authority District No. 2018-1 15,625,000 100.000% 15,625,000 California Statewide Community Development Authority 1915 Act Bond 110,074 100.000% 110,074 Ventura County General Fund Obligations 289,520,000 15.163% 43,899,918 Ventura County Superintendent of Schools - Certificates of Participation 7,350,000 15.163% 1,114,481 Oxnard Union High School District - Certificates of Participation 58,308,222 46.449% 27,083,586 Ocean View School District - Certificates of Participation 4,545,000 40.595% 1,845,043 Oxnard School District - Certificates of Participation 7,820,000 92.667% 7,246,559 Rio School District - Certificates of Participation 970,000 86.163% 835,781 Successor Agency - Tax Increment Debt 25,370,000 99.831% 25,327,112 Subtotal - Ov erlapping Debt 1,720,867,583 896,027,104
City of Oxnard Direct Debt (2):
City of Oxnard Lease Revenue Bonds 58,773,055
City of Oxnard Gas Tax Revenue Bonds 17,584,614
City of Oxnard Lease Purchase Agreements 10,764,076
City of Oxnard Capital Lease Obligations 8,768,277
Subtotal - Direct Debt 95,890,022
Total Direct and Overlapping Debt 991,917,126
Notes:
(1) The percentage of overlapping debt appicable to the City is estimated using assessed property values. Applicable percentages were estimated by determining the portion of the overlapping District's assessed value that is within the boundaries of the City divided by the District's total taxable assessed value.
(2) Excludes debt for business-type activities
Source: California Municipal Statistics, Inc.
246
City of Oxnard, California
SCHEDULE XII
Legal Debt Margin Information
Last Ten Fiscal Years
(in thousands)
-211-
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Debt limit 2,427,380$ 2,593,772$ 2,643,158$ 2,762,153$ 2,888,347$ 3,024,677$ 3,162,347$ 3,291,547$ 3,448,254$ 3,689,606$ Total net debt applicable to limit --------- -
Legal debt margin 2,427,380$ 2,593,772$ 2,643,158$ 2,762,153$ 2,888,347$ 3,024,677$ 3,162,347$ 3,291,547$ 3,448,254$ 3,689,606$ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Legal Debt Margin Calculation for Fiscal Year 2023
Assessed value 19,213,312,687$
Add back: exempt real property 5,384,057,735
Total assessed value 24,597,370,422$
Debt limit (15% of total assessed value) 3,689,605,563$ Debt applicable to limit:
General obligation bonds 328,953,975
Less: assets in debt service funds for principal payments Revenue bonds - governmental activities (76,357,669)
Revenue bonds - business-type activities (252,596,306)
Tax allocation bonds-community development commission - Certificates of participation -
Total net debt applicable limit -
Legal debt margin 3,689,605,563$
Source: County of Ventura
Finance Department, City of Oxnard
247
City of Oxnard, California
SCHEDULE XIII
Pledged Revenue Coverage
Last Ten Fiscal Years
-212-
Fiscal Gross Less: Operating Net Available Debt Service Year Revenues *** Expenses Revenues Principal Interest*** Coverage 2014 53,964,322 35,057,157 18,907,165 3,858,359 10,838,887 1.29 2015 48,512,000 35,981,736 12,530,264 4,017,916 8,602,946 0.99 2016 47,725,068 36,729,222 10,995,846 4,144,638 8,371,561 0.88 2017 50,683,078 37,479,875 13,203,203 4,290,245 8,253,814 1.05 2018 62,750,295 37,781,641 24,968,654 4,474,671 8,960,800 1.86 2019 61,615,626 37,586,305 24,029,321 3,457,368 7,318,141 2.23 2020 61,222,220 39,746,165 21,476,055 4,726,028 7,036,758 1.83 2021 60,368,949 42,772,873 17,596,076 3,393,227 7,120,495 1.67 2022 57,841,672 44,167,359 13,674,313 3,551,317 7,469,013 1.24 2023 58,021,091 43,813,695 14,207,396 5,362,121 7,186,097 1.13 Fiscal Gross Less: Operating Net Av ailable Debt Serv ice Interest Year Revenues Expenses Revenues Principal Expense Coverage 2014 44,670,034 36,624,969 8,045,065 2,681,421 752,146 2.34 2015 43,578,972 35,911,447 7,667,525 2,813,015 254,592 2.50 2016 41,677,411 36,427,580 5,249,831 1,930,153 250,937 2.41 2017* - - - - - -
2018* - - - - - -
2019* - - - - - -
2020* - - - - - -
2021* - - - - - -
2022* - - - - - -
2023* - - - - - -
Note:
The City's bond obligations are secured by the pledge of net system revenues * There were no pledged revenues during this year
** Correction of previously reported amounts
***
Source: Finance Department, City of Oxnard
For Water Revenue Bonds, BAB subsidy is excluded from gross revenues and net against interest expense starting 2015
The above operating expenses do not include depreciation, debt service and infrastructure use fee payments
The above gross revenues include operating revenues (excluding connection fees) and investment Environmental Resources Revenue Bonds
Water Revenue Bonds**
248
City of Oxnard, California
SCHEDULE XIII (Continued)
Pledged Revenue Coverage
Last Ten Fiscal Years
-213-
Gross Less: Operating Net Available Debt Service Interest Fiscal Revenues Expenses Revenues Principal Expense Coverage Year 30,274,729 17,888,757 12,385,972 4,316,967 6,738,688 1.12 2014 31,973,678 20,731,227 11,242,451 4,193,581 6,586,349 1.04 2015 30,204,121 19,472,569 10,731,552 4,302,474 4,731,254 1.19 2016 37,100,396 18,374,360 18,726,036 4,353,176 4,643,123 2.08 2017 40,284,050 19,768,048 20,516,002 4,481,192 4,963,668 2.17 2018 43,701,872 16,722,471 26,979,401 4,433,905 4,293,796 3.09 2019 44,268,629 21,522,952 22,745,677 4,661,097 4,119,088 2.59 2020 48,284,979 21,738,622 26,546,357 4,795,000 4,636,250 2.81 2021 46,356,596 23,918,496 22,438,100 5,035,000 4,396,500 2.38 2022 47,264,371 23,620,616 23,643,755 5,285,000 4,144,750 2.51 2023 Gross Less: Operating Net Available Debt Service Fiscal Revenues Expenses Revenues Principal Interest Coverage Year 26,172,885 24,332,827 1,840,058 270,000 168,169 4.20 2014 23,119,454 22,346,820 772,634 280,000 160,170 1.76 2015 23,119,454 22,587,321 532,133 295,000 149,436 1.20 2016 26,476,702 25,300,241 1,176,461 310,000 132,968 2.66 2017 27,712,683 27,085,179 627,504 320,000 130,683 1.39 2018 27,767,016 26,848,409 ** 918,607 335,000 114,345 2.04 2019 29,554,251 29,171,840 382,411 335,000 97,905 0.88 2020 31,100,628 29,995,087 1,105,541 370,000 77,345 2.47 2021 29,752,261 28,735,630 1,016,631 390,000 59,164 2.26 2022 34,790,336 33,573,245 1,217,091 410,000 41,375 2.70 2023 Oxnard Housin
g Authori ty Revenue Bonds
Wastewater Revenue Bonds**
249
City of Oxnard, California
SCHEDULE XIV
Demographic and Economic Statistics
Last Ten Fiscal Years
-214-
(1) (2) (2) (2) (3) (4)
Fiscal Personal Per Capita Median School Unemployment
Year Population Income (in thous) Income Age Enrollment Rate 2014 203,645 4,063,329 19,953 30.3 39,418 8.6%
2015 206,148 4,112,210 20,210 30.5 39,266 5.8%
2016 206,997 4,166,242 20,127 30.7 39,425 6.2%
2017 207,772 4,149,665 19,972 30.8 41,338 5.6%
2018 206,499 4,320,613 20,923 31.4 39,461 5.1%
2019 209,879 4,603,746 21,935 31.7 39,578 4.8%
2020 206,352 4,756,228 23,049 32.1 39,525 7.7%*
2021 204,675 4,986,380 24,362 32.3 37,761 9.3%
2022 200,050 5,128,178 25,634 32.8 35,227 4.70%
2023 197,477 5,363,539 27,160 33.1 34,105 4.50%
Sources: (1) California Department of Finance, Demographic Research Unit. - Provided by HdL Coren & Cone (3) Oxnard School Districts (Elementary) and Oxnard Union High School District, Oxnard College (4) California Employment Development Department - Provided by HdL Coren & Cone * Calculated based on monthly unemployment data from California EDD for the fiscal year. The rate at the end of the fiscal year was 11.8%.
(2) Demographic and Economic Statistics for personal income and population data provided by HdL Coren & 250
City of Oxnard, California
SCHEDULE XV
Principal Employers
Current Year and Nine Years Ago
-215-
Employer
Reiter 3,728 3.82% DATA NOT AVAILABLE DATA NOT AVAILABLE Amazon 2,000 2.05% DATA NOT AVAILABLE DATA NOT AVAILABLE City of Oxnard 1,683 1.72% DATA NOT AVAILABLE DATA NOT AVAILABLE Oxnard Union High School 1,614 1.65% DATA NOT AVAILABLE DATA NOT AVAILABLE HAAS Automation 1,501 1.54% DATA NOT AVAILABLE DATA NOT AVAILABLE St. John's Regional Medical Center 1,413 1.45% DATA NOT AVAILABLE DATA NOT AVAILABLE Oxnard School District 934 0.96% DATA NOT AVAILABLE DATA NOT AVAILABLE ColourPop 581 0.59% DATA NOT AVAILABLE DATA NOT AVAILABLE Rio School District 599 0.61% DATA NOT AVAILABLE DATA NOT AVAILABLE Oxnard College 572 0.59% DATA NOT AVAILABLE DATA NOT AVAILABLE Subtotal 14,625 14.97%
Rest of Oxnard 78,775 80.62% DATA NOT AVAILABLE DATA NOT AVAILABLE Total 93,400 95.58% DATA NOT AVAILABLE DATA NOT AVAILABLE Source: EDD & Oxnard Businesses
Number of
Employees
Percent of Total
Employment Number of Employees Percent of Total
Employment
2023 2014
251
City of Oxnard, California
SCHEDULE XVI
Operating Indicators by Function
Last Ten Fiscal Years
-216-
Function 2014 2015 2016 2017 2018
Police
Physical arrests 6,169 7,388 7,063 6,641 6,495
Parking violations 25,130 26,033 32,288 32,273 25,663
Traffic violations 17,775 18,596 15,845 16,935 18,745
Fire
Number of calls answered 14,770 15,560 17,678 17,974 25,005 Inspections 3,588 3,030 2,296 1,463 3,710
Highways and streets
Potholes repaired 13,500 13,000 12,500 12,500 12,500
Sanitation
Total number of customers 44,677 44,944 45,266 45,537 45,773 Refuse collected (tons/day) 582 605 608 626 645
Recyclables collected (tons/day) 101 98 101 104 125
Culture and recreation
Community center admissions 22,980 35,857 28,896 26,343 26,196 Water
Total number of customers 41,319 41,437 41,635 42,301 42,041 Average daily consumption (gallons/day) 24,041,322 21,014,055 21,701,750 22,130,222 22,444,527 Wastewater
Total number of customers 38,971 39,210 39,374 39,580 39,735 Average daily sewerage treatment (gallons/day) 19,700,000 19,700,000 19,700,000 18,800,000 19,080,000 Source: Various departments, City of Oxnard
^ Includes total admissions for Palm Vista Senior Center which opened in 2019. ** Decrease due to staffing decrease and Covid-19 limitations ^^Senior Center Admissions - 34,096; Youth Centers Admissions - 16,866 * Starting fiscal year 2019, the City began using a new method calculating the number of potholes repaired. The new method is based on the total quantity of materials used for the year and average quantity of materials used per pothole. 252
City of Oxnard, California
SCHEDULE XVI (Continued)
Operating Indicators by Function
Last Ten Fiscal Years
-217-
2019 2020 2021 2022 2023 Function
Police
6,997 6,018 3,298 3,337 3,602 Physical arrests
36,159 21,709 14,221 29,848 42,762 Parking violations 17,804 14,231 11,025 15,743 10,216 Traffic violations Fire
28,528 30,391 27,424 26,331 22,334 Number of calls answered 3,107 1,817 4,866 3,128 3,300 Inspections
Highways and streets
2,000* 1,300** 1,400 596 4,499 Potholes repaired
Sanitation
46,043 46,576 35,218 39,040 37,113 Total number of customers 706 733 741 716 682 Refuse collected (tons/day)
131 144 154 157 172 Recyclables collected (tons/day)
Culture and recreation
40,760^ 34,707^^ 0^^ 63,917^^ 50,962 Community center admissions Water
42,122 42,804 42,958 43,069 43,127 Total number of customers 20,691,499 20,099,230 21,773,583 21,494,262 18,540,946 Average daily consumption Wastewater
39,808 39,962 40,177 38,650 40,291 Total number of customers 19,700,000 17,300,000 18,000,000 16,410,000 16,290,000 Average daily sewerage treatment 253
City of Oxnard, California
SCHEDULE XVII
Capital Assets by Function
Last Ten Fiscal Years
-218-
Function 2014 2015 2016 2017 2018
Public safety
Police
Stations 1 1 1 1 1
Police vehicles 268 311 233 236 236
Fire
Stations 7 8 8 8 8
Fire Trucks 16 17 17 17 17
Hydrants ^ 5,500 5,500 5,500 5,551 5,551
Sanitation
Collection trucks 51 50 52 52 50
Highways and streets
Streets (miles) 400 400 432 432 451
City-owned streetlights 974 972 980 1,025 1,025
SCE-owned streetlights ^^ 10,192 10,225 10,225 10,240 10,242 Culture and recreation
Parks acreage 550 555 561 561 561
Parks 58 59 62 61 61
Ball diamonds 37 37 22 27 29
Basketball courts 47 48 25 30 30
Craft/Activity buildings 10 10 2 2 2
Gymnasium 2 2 2 2 2
Swimming pools 1 1 1 1 1
Tennis courts 30 30 25 33 32
Community centers 3 3 2 3 3
Library
Number of books 325,906 318,644 316,646 333,016 366,051 Number of microfilms 8,729 8,729 5,885 8,323 7,822
Number of audiotapes 20,423 19,618 18,902 10,922 13,003 Number of videotapes 15,025 14,167 14,259 - -
Number of DVD * - - - 19,249 17,947
Number of CD-ROMS (data disk) 447 16 3,072 - -
Water
Water mains (miles) 600 600 600 624 624
Maximum daily treatment capacity 18,600,000 18,600,000 18,600,000 18,600,000 # 18,600,000 Sewer
Miles of sewer lines 430 430 430 430 430
Source: Various departments, City of Oxnard
^ Total includes only City-owned fire hydrants
* Transitioned from video tapes to DVD's
^^ Totals provided by Southern California Edison with accompanying location map for each light ** Decrease in Acreage due to expired contract with County of Ventura to maintain beach front areas ^^^ Decrease due to update to GIS system adjusting for mains owned by water districts previously listed as City owned *** Decrease due to abandoned sewer lines
254
City of Oxnard, California
SCHEDULE XVII (Continued)
Capital Assets by Function
Last Ten Fiscal Years
-219-
2019 2020 2021 2022 2023 Function
Public safety
Police
11 1 1 1 Stations
240 242 224 211 205 Police vehicles
Fire
88 8 8 8 Stations
17 17 17 3 17 Fire Trucks
5,676 5,678 5,690 6,279 5,782 Hydrants
Sanitation
56 56 52 57 71 Collection trucks
Highways and streets
452 484.5 400 455 439 Streets (miles)
1,025 1,025 972 607 607 City-owned streetlights
10,242 9,950 10,225 9,800 9,800 SCE-owned streetlights Culture and recreation
539 438** 438 438 438 Parks acreage
56 53 53 53 53 Parks
30 30 30 30 30 Ball diamonds
30 30 30 30 30 Basketball courts
22 2 2 2 Craft/Activity buildings
22 2 2 2 Gymnasium
11 1 1 1 Swimming pools
32 32 32 32 32 Tennis courts
33 3 3 3 Community centers
Library
411,482 334,016 331,204 271,862 307,003 Number of books 8,377 8,377 21,700 41,947 41,947 Number of microfilms 20,528 8,996 8,634 8,271 7,886 Number of audiobooks
-- 1 345 0 50 Number of videotapes
21,162 17,522 17,009 16,358 16,337 Number of DVD
-- 1 11 1 11 200 Number of CD-ROMS (data disk)
Water
563^^^ 563 525 527 531 Water mains (miles)
18,600,000 18,600,000 18,600,000 18,600,000 18,600,000 Maximum daily treatment capacity Sewer
430 405*** 406 406 406 Miles of sewer lines
255
City of Oxnard, California
SCHEDULE XVIII
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
-220-
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General government 230 230 228 224 288 279 250.5 253.4 302 295 Public Safety
Police
Officers 249 252 243 252 268 258 258 274 271 240
Civilians 159 157 151 110 114 117 115 84 87 122
Fire
Firefighters & officers 110 125 125 125 150 123 124 123 121 144 Civilians 3 3 3 3 4 8 7 10 13 18
Transportation 44 43 25 16 27 39 39 23.5 10 32
Community development 58 59 50 52 57 58 62 62 63 66
Culture, Leisure, and Libraries 83 81 67 55 95 92.5 79 79.3 108 121 Utilities
Water 50 50 52 53 56 52 60 76.3 78 80
Wastewater 79 80 81 81 74 73 73.5 76.8 79 92
Environmental Resources 80 118 113 118 175 172 173 195 199 197 H o u s i n g 8 2 8 1 8 0 8 1 7 07 17 17 1 6 9 6 5
Total 1,226 1,278 1,218 1,171 1,378 1,342.5 1,312 1,328.3 1400 1472 Note: The numbers abov e represent authorized positions by the City Council.
Source: Per. Adopted Budget Budget Personnel Schedule for FY2022-23 Rev ised FTE Count 256
JUNE 30, 2023
AUDIT REPORT FOR FYE
Finance and Governance Committee Meeting | March 12, 2024 257
Finance and Governance Committee Meeting | March 12, 2024 AGENDA
Independent Auditor’s Opinion ……………..………………………………………. 2 Significant Audit Matters ………….………………………………………………... 3 ACFR Highlights ………………………………...……..……………....................... 7 Revenues – General Fund Group ……………..………………………………...... 13 Expenditures – General Fund Group ....…………..………………………………. 14 Budget vs Actual – General Fund Group ....………….…………………………... 15 1 | Page 1
258
INDEPENDENT AUDITOR’S OPINION
Finance and Governance Committee Meeting | March 12, 2024 | Page 2 259
Finance and Governance Committee Meeting | March 12, 2024 SIGNIFICANT AUDIT MATTERS*
▪ Significant Accounting Policies
▪ GASB 96, Subscription-based
Information Technology
Arrangements (SBITA)
▪ In FY 2022, GASB 87, Leases
▪ Significant Accounting Estimates
▪ Allowances for doubtful accounts
▪ Pension & OPEB
▪ Self-insurance claims payable
▪ Depreciation expense and
accumulated depreciation
| Page 3
* Refer to Eadie and Payne letter to City Council dated February 23, 2024 260
Finance and Governance Committee Meeting | March 12, 2024 | Page 4 * Refer to Eadie and Payne letter to City Council dated February 23, 2024 SIGNIFICANT AUDIT MATTERS*
▪ Significant Disclosures
▪ Cash and investments (Note II.A.)
▪ Long-term debt (Note II.H.)
▪ Deficit fund balances (Note II.K.)
▪ Prior period adjustments (Note II.L.)
▪ Pension & OPEB related (Note III.)
▪ Commitments & contingencies (Note V.A.)
▪ Risks & uncertainties (Note V.B.)
261
Finance and Governance Committee Meeting | March 12, 2024 | Page 5 * Refer to Eadie and Payne letter to City Council dated February 23, 2024 SIGNIFICANT AUDIT MATTERS*
▪ Audit Adjustments
▪ Ventura County Investment Pool: adjustment for accrued interest and fair value adjustment by $943,000 across all City funds.
▪ ISF Intangible assets, net of accumulated amortization, and related subscription liability:
increase by $1.0 million and $0.9 million respectively. ▪ Prior period adjustment for pension and OPEB: increase governmental activities net position by $14.5 million, decreased business-type activities net position by $3.5 million for water fund, $1.7 million for waste water fund, $9.3 million for environmental resources fund. ▪ OPEB and pension balances for FY 2023: net decrease by $5.5 million. ▪ Prior period adjustment for deferred revenue not posted in FY 2021 : decrease governmental activities net position by $6.9 million.
262
Finance and Governance Committee Meeting | March 12, 2024 | Page 6 * Refer to Eadie and Payne letter to City Council dated February 23, 2024 SIGNIFICANT AUDIT MATTERS*
▪ Significant risks
▪ Challenges encountered during audit
▪ ERP implementation
▪ No disagreements with management
▪ Internal control report – tentative end of March 2024 263
Finance and Governance Committee Meeting | March 12, 2024 | Page 7 ACFR HIGHLIGHTS Net Position ($ millions)
Assets and
Deferred Outflows,
$3,305 , 50%
Liabilities and
Deferred
Inflows,
$956 , 14%
Net Position,
$2,349 , 36%
Assets and
Deferred
Outflows, $3,202
, 50%
Liabilities and
Deferred Inflows,
$893 , 14%
Net Position,
$2,309 , 36%
2023 2022
264
Finance and Governance Committee Meeting | March 12, 2024 | Page 8 ACFR HIGHLIGHTS Revenues ($ millions)
$-
$50
$100
$150
$200
$250
Charges for Services Operating Grants and
Contributions
Capital Grants Taxes Other
2023 2022
265
Finance and Governance Committee Meeting | March 12, 2024 | Page 9 ACFR HIGHLIGHTS Expenditures ($ millions)
$-
$20
$40
$60
$80
$100
$120
$140
$26
$133
$59
$10
$17
$10
$4
$64
$37
$50
$6
$34
$15
$121
$59
$13 $17
$7 $4
$67
$36
$47
$5
$28
2023 2022
266
Finance and Governance Committee Meeting | March 12, 2024 Revenues and Expenses Business-Type Activities ($ millions) $-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Water Wastewater Environmental Resources Golf Course Oxnard Housing Authority
$52.9
$45.6 $45.7
$6.3
$33.8
$57.1
$33.8
$51.7
$5.7
$34.4
Program Revenue Expenses
| Page 10
ACFR HIGHLIGHTS
267
Finance and Governance Committee Meeting | March 12, 2024 ACFR HIGHLIGHTS Governmental Funds Fund Balance ($ millions) 2023 – Total $206 2022 – Total $189
Restricted, $114 ,
55%
Committed, $45 ,
22%
Assigned, $28 ,
14%
Unassigned, $19 ,
9%
Nonspendable, $4 ,
2%
Restricted, $109 ,
58%
Committed, $50 ,
26%
Unassigned, $26 ,
14%
| Page 11
268
Finance and Governance Committee Meeting | March 12, 2024 ACFR HIGHLIGHTS General Fund Group ($ millions)
Revenues & Expenditures/Other Financing Sources (Uses)
| Page 12
$-
$50
$100
$150
$200
$250
2023 2022
$241
$221
$207
$183
Revenues Expenditures/Other Financing Sources (Uses)
269
Finance and Governance Committee Meeting | March 12, 2024 REVENUES General Fund Group ($ millions)
$68
$129
$18
$12 $14
$63
$118
$17 $16
$7
$-
$20
$40
$60
$80
$100
$120
$140
Property Taxes Sales Tax Other Taxes Charges for Services All Other Categories 2023 2022
Total Revenues
2023 - 241
2022 - 221
| Page 13
270
Finance and Governance Committee Meeting | March 12, 2024 EXPENDITURES General Fund Group ($ millions)
Total Expenditures
2023 - $191
2022 - $171
$22
$111
$26
$12 $13
$4 $3
$18
$102
$25
$11 $11
$2 $2
$-
$20
$40
$60
$80
$100
$120
General Government Public Safety Public Works Community Development
Culture, Leisure and
Libraries
Housing Capital Outlay & Debt
Service
2023 2022
| Page 14
271
Finance and Governance Committee Meeting | March 12, 2024 | Page 15 BUDGET VS ACTUAL General Fund Group ($ millions)
$67
$114
$17
$13 $16
$68
$129
$18
$12 $14
$-
$20
$40
$60
$80
$100
$120
$140
Property
Taxes
Sales Tax Other Taxes Charges for
Services
All Other
Categories
Budget Actual
Revenues
$24
$109
$31
$15 $15
$7 $5
$22
$111
$26
$12 $13
$4 $3
$-
$20
$40
$60
$80
$100
$120
General
Government
Public Safety Public Works Community
Development
Culture, Leisure
and Library
Services
Housing Capital Outlay
& Debt Service
Budget Actual
Expenditures
272
THANK YOU
Eden C. Casareno
[email protected]
909.809.7662
273