Services requested consist of design and construction support services to help evaluate the best approach to revitalize the Youth Center for safe and comfortable use by the public. This includes project management; site inspection; preliminary engineering; final engineering; preparing plans, specifications, and estimates (PS&E); assisting with project advertisement; and providing construction support.
On October 26, 2022, a mandatory pre-proposal meeting was held on site at the Youth Center. This allowed City staff to provide clarifications on the scope of work requested and provide an opportunity for prospective proposers to review the site to gain a detailed understanding of the repairs needed. Only two (2) firms attended the mandatory pre-proposal meeting.
On November 9, 2022, one (1) proposal was received from Dahlin Group, Inc. Public Works and Parks and Recreation staff reviewed the proposal and determined Dahlin was qualified to perform the work. Review criteria weighed factors such as the team’s capabilities and experience with facility design, experience on projects for public agencies, quality of past performance for the city or similar agencies, workload, and an understanding of operations to ensure delivery of a comprehensive product that will be tailored to the City’s unique needs.
Upon the selection of Dahlin Group, Inc., staff negotiated a fee of $62,000. Staff believes this is an appropriate fee for the scope of services contemplated.
On September 30, 2020, the City entered into two separate grant agreements with the State of California. Per Capita funding allocating $177,952 and Per Capita Urban County funding allocating $39,136 for a total of $217,088. A portion of the grant, $125,000, was utilized to complete the Rio Hondo Park Playground Renovation and the remaining $92,088 was programmed towards the Youth Center Renovation project.
In addition, $107,475 has been allocated for the project from the City’s Community Development Block Grant Program budget. Additionally, $150,000 has been allocated from the General Fund to the Capital Improvement Fund in the FY 2022-23 CIP Project Number 50034 budget.
If approved this contract will result in final plans, specifications, and estimate (PS&E) to repair the facility. Until that time, the total project costs including construction are unknown. Once the PS&E is completed, staff may need to return to City Council to request additional funding prior to proceeding with construction.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 YOUTH CENTER RENOVATION PROJECT (CIP NO. 50034) – AWARD
PROFESSIONAL SERVICES AGREEMENT FOR ARCHITECT/ENGINEER SERVICES
The total project budget is summarized as follows:
Funding Category Estimated Budget
State of CA Per Capita Funds $ 52,952
State of CA Per Capita Urban County Fund $ 39,136
Capital Improvement Fund $ 150,000
CDBG Funding $ 107,475
TOTAL PROJECT BUDGET: $ 349,563
Less: Encumbered and Expensed $ (34,655)
AVAILABLE PROJECT APPROPRIATION: $ 314,908
Development and completion of the design phase of the Youth Center Renovation Project is anticipated by June 2023. Upon completion of design, staff will return to the City Council to seek approval of the plans and specifications prior to issuing a Notice Inviting Bids (NIB) to solicit bids for the construction phase of the project.
Conclusion:
Staff recommends an award of a professional services agreement to Dahlin Group, Inc. to provide Architect/Engineer (A-E) services for design and construction support of the Youth Center Renovation Project, CIP No. 50034 for an amount not-to-exceed $62,000 and an amendment to the FY 2022-23 Budget of $92,088.
Steve Carmona
SC:TR:kk
Enclosure: 1) Professional Services Agreement
Task Description Amount
A-E Services for Youth Center Renovation $62,000
Project Management $14,655
Construction Unknown
Total Estimated Task Cost $76,655
AGREEMENT NO. _______
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF PICO RIVERA AND
DAHLIN GROUP, INC.
1. IDENTIFICATION
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the City of Pico Rivera, a California municipal corporation (“City”) and Dahlin Group, Inc., a California corporation (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as “Parties.”
2. RECITALS
2.1 City has determined that it requires professional services from Consultant to provide Professional Architectural/Engineering design and construction support services for the Youth Center Renovation Project, CIP 50034.
2.2 Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.
NOW, THEREFORE, for and in consideration of the performance by the Parties of the mutual covenants and conditions herein contained, the Parties hereto agree as follows:
3. DEFINITIONS
3.1 “Scope of Services”: Such professional services as are set forth in the Consultant’s November 12, 2022 proposal to City attached hereto as Exhibit “A” and incorporated herein by this reference.
3.2 “Approved Fee Schedule”: Such compensation rates as are set forth in the Consultant’s November 12, 2022 proposal to City attached hereto as Exhibit “B.”
3.3 “Commencement Date”: January 25, 2023
3.4 “Expiration Date”: December 31, 2024
4. TERM
The Term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall expire at 11:59 p.m. on the Expiration Date unless extended by written agreement of the Parties or terminated in accordance with Section 22 below.
Enclosure 1
12a
Professional Services Agreement
DAHLIN GROUP, INC.
5. CONSULTANT’S SERVICES
5.1 Consultant shall perform the services identified in the Scope of Services.
City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the Parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the sum of SIXTY-TWO THOUSAND DOLLARS ($62,000) unless specifically approved in advance, in writing, by City.
5.2 Consultant shall perform all work to the highest professional standards of Consultant’s profession and in a manner reasonably satisfactory to City.
6. COMPENSATION
6.1 City agrees to compensate Consultant for the services provided under this Agreement, and Consultant agrees to accept in full satisfaction for such services, payment in accordance with the Approved Fee Schedule.
6.2 Consultant shall submit to City an invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within ten (10) business days of receipt of each invoice, City shall notify Consultant in writing of any disputed amounts included on the invoice. Within thirty (30) calendar days of receipt of each invoice, City shall pay all undisputed amounts included on the invoice. City shall not withhold applicable taxes or other authorized deductions from payments made to Consultant.
6.3 Payments for any services requested in writing by City and not included in the Scope of Services shall be made to Consultant by City on a time-and-materials basis using Consultant’s standard fee schedule. Fees for such additional services shall be paid within sixty (60) days of the date Consultant issues an invoice to City for such services.
7. BUSINESS LICENSE
Consultant shall obtain a City business license prior to commencing performance under this Agreement.
8. COMPLIANCE WITH LAWS
Consultant shall keep informed of State, Federal and Local laws, ordinances, codes and regulations that in any manner affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. The Consultant shall, at all times, Professional Services Agreement
DAHLIN GROUP, INC.
comply with such laws, ordinances, codes and regulations. Without limiting the generality of the foregoing, if Consultant is an out-of-state corporation or LLC, it must be qualified and registered to do business in the State of California pursuant to sections 2105 and 17708.02 of the California Corporations Code. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section.
9. CONFLICT OF INTEREST
Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both: (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute; and (ii) City has not consented in writing prior to Consultant’s performance of such work.
10. PERSONNEL
Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Services. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant’s services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City’s premises. Stephanie Fujimura shall be Consultant’s Project Administrator and shall have direct responsibility for management of Consultant’s performance under this Agreement. No change shall be made in Consultant’s Project Administrator without City’s prior written consent.
11. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material (“written products”) developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant. If any state, federal, or local law requires mandatory copyright protection for Consultant’s work product, City shall comply with such laws to the extent feasible.
12. INDEPENDENT CONTRACTOR
Professional Services Agreement
DAHLIN GROUP, INC.
12.1 Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not at any time represent that it is, or that any of its agents or employees are, in any manner employees of City.
12.2 The Parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship, joint-employer relationship, or any other relationship between Consultant or Consultant’s employees except as set forth in this Agreement.
12.3 City shall have no direct or indirect control over Consultant’s employees or sub-consultants with respect to wages, hours, and working conditions. In addition, City shall not deduct from the Compensation paid to Consultant any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to Consultant, Consultant’s employees or subconsultants. City shall have no responsibility to provide Consultant, its employees or subconsultants with workers’ compensation insurance or any other insurance.
12.4 The Parties further acknowledge the following: (i) that Consultant shall provide the services outlined in the Scope of Services directly to City; (ii) Consultant maintains a business location at the address listed under Section 20 that is separate and distinct from the City; (iii) Consultant contracts with other businesses to provide the same or similar services and maintains a clientele without restriction from the City; (iv) Consultant advertises and holds itself out to the public as available to provide the same or similar services; (v) unless otherwise specified in this Agreement, Consultant provides its own tools, vehicles, and equipment necessary for performing the Scope of Services; (vi) Consultant has proposed and negotiated its own rates; and (vii) consistent with the nature and demands of the project and the City’s business hours, Consultant may set its own hours and location of work.
13. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is legally required. Upon request, all City data and any copies thereof shall be returned to City upon the termination or expiration of this Agreement.
14. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES
Professional Services Agreement
DAHLIN GROUP, INC.
No official or employee of the City shall be personally liable to Consultant in the event of any default or breach by City, or for any amount which may become due to Consultant.
15. INDEMNIFICATION
15.1 The Parties agree that City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to City. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify and protect City as set forth herein. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
15.2 To the full extent permitted by law, Consultant shall indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant or any of its officers, employees, servants, agents, or subconsultants in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
15.3 City shall have the right to offset against the amount of any compensation due Consultant under this Agreement any amount due City from Consultant as a result of Consultant’s failure to pay City promptly any indemnification arising under this Section 15 or related to Consultant’s failure to either: (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.
15.4 The obligations of Consultant under this Section 15 will not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives Professional Services Agreement
DAHLIN GROUP, INC.
its statutory immunity under such statutes or laws as to City, its officers, agents, employees, and volunteers.
15.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section 15 from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible and indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subconsultants or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees.
15.6 City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.
15.7 PERS ELIGIBILITY INDEMNITY. In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.
Professional Services Agreement
DAHLIN GROUP, INC.
16. INSURANCE
16.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:
16.1.1 Comprehensive general liability, and Umbrella or Excess Liability Insurance covering all operations by or on behalf of Consultant providing insurance for bodily injury liability and property damage liability for the following and including coverage for:
16.1.1.1 Premises, operations, and mobile equipment
16.1.1.2 Products and completed operations
16.1.1.3 Broad form property damage (including completed operations)
16.1.1.4 Explosion, collapse, and underground hazards
16.1.1.5 Personal Injury
16.1.1.6 Contractual liability
Coverage shall be in the amount of One Million Dollars ($1,000,000) per occurrence combined single limit; Two Million Dollars ($2,000,000) aggregate for products/completed operation; Two Million Dollars ($2,000,000) general aggregate (General aggregate must apply separately to Consultant’s work under this Agreement.); and Two Million Dollars ($2,000,000) umbrella or excess liability.
16.1.2 Automobile Liability Insurance for owned, hired and non-owned vehicles utilized by Consultant, its employees or subconsultants, in the amount of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.
16.1.3 Worker’s Compensation Insurance as required by the laws of the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease.
16.1.4 Professional Liability Insurance against errors and omissions in the performance of the work under this Agreement with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence of claim/ Two Million Dollars ($2,000,000) in the aggregate.
16.2 Consultant shall require each of its subconsultants, if any, to maintain Professional Services Agreement
DAHLIN GROUP, INC.
insurance coverage that meets all of the requirements of this Agreement.
16.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.
16.4 Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either: (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.
16.5 At all times during the term of this Agreement, Consultant shall maintain on file with City’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and, for the general liability and automobile liability policies, naming the City as an additional insured. Consultant shall, prior to commencement of work under this Agreement, file with City’s Risk Manager such certificate(s).
16.6 Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall provide such proof to City at least two weeks prior to the expiration of the coverages.
16.7 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
16.8 The general liability and automobile policies of insurance provided by Consultant shall be primary to any coverage available to City. Any insurance or selfinsurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.
16.9 All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against the City.
16.10 Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.
Professional Services Agreement
DAHLIN GROUP, INC.
16.11 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 15 of this Agreement.
16.12 If Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
17. MUTUAL COOPERATION
17.1 City shall provide Consultant with all pertinent data, documents, and other requested information as is reasonably available to City for the proper performance of Consultant’s services under this Agreement.
17.2 In the event any claim or action is brought against City relating to Consultant’s performance in connection with this Agreement, Consultant shall render any reasonable assistance that City may require.
18. RECORDS AND INSPECTIONS
Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.
19. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary in the performance of this Agreement. This includes, but shall not be limited to, encroachment permits and building and safety permits and inspections.
20. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile, email, or overnight courier service during Consultant’s and City’s regular business hours; or (ii) on the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the Parties may, from time to time, designate in writing).
Professional Services Agreement
DAHLIN GROUP, INC.
If to City: If to Consultant:
Steve Carmona, City Manager
City of Pico Rivera
PO Box 1016
6615 Passons Blvd.
Pico Rivera, California 90660-1016
Facsimile: (562) 801-4765
Stephanie Fujimura, Principal
Dahlin Group, Inc.
18818 Teller Avenue, Suite 260
Irvine, California 92612
With a courtesy copy to:
Arnold M. Alvarez-Glasman, City Attorney
13181 Crossroads Parkway North
Suite 400 - West Tower
City of Industry, CA 91746
Facsimile: (562) 692-2244
21. SURVIVING COVENANTS
The Parties agree that the covenants contained in Sections 13, 15 and Paragraph 17.2 of Section 17, of this Agreement shall survive the expiration or termination of this Agreement.
22. TERMINATION
22.1. City shall have the right to terminate this Agreement for any reason on five (5) calendar days’ written notice to Consultant. Consultant shall have the right to terminate this Agreement for any reason on sixty (60) calendar days’ written notice to City. The effective date of termination shall be upon the date specified in the notice of termination. Consultant agrees that in the event of such termination, City’s obligation to pay Consultant shall be limited to payment only for those services satisfactorily rendered, as solely determined by the City, prior to the effective date of termination. Consultant agrees to cease all work under this Agreement on or before the effective date of any notice of termination. All City data, documents, objects, materials, or other tangible things shall be returned to City upon the termination or expiration of this Agreement.
22.2 If City terminates this Agreement due to no fault or failure of performance by Consultant, then Consultant shall be paid based on the work satisfactorily performed, as solely determined by the City, at the time of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.
Professional Services Agreement
DAHLIN GROUP, INC.
23. ASSIGNMENT
Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any Party other than Consultant.
24. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
24.1 In the performance of this Agreement, Consultant shall not discriminate against any employee, subconsultant, or employment applicant because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation. Consultant will take affirmative action to ensure that subconsultants, employees, and employment applicants are treated without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.
24.2 Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.
24.3 Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.
25. WARRANTIES
25.1 Each Party has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement or been provided with an opportunity to receive independent legal advice and has freely and voluntarily waived and relinquished the right to do so. Each Party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such Party’s failure to perform under this Agreement.
25.2 In executing this Agreement, each Party has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever.
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25.3 It is agreed that each Party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either Party has the full right and authority to fully commit and bind such Party to the provisions of this Agreement.
26. CAPTIONS
26.1 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph thereof, as the case may be, and not such heading, shall control and govern in the construction of this Agreement.
26.2 Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).
27. NON-WAIVER
27.1 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing.
27.2 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any Party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such Party of any of all of such other rights, powers or remedies.
27.3 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to causes beyond the control and without the fault or negligence of Consultant.
28. COURT COSTS AND ATTORNEY FEES
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In the event legal action shall be necessary to enforce any term, covenant or condition herein contained, the Party prevailing in such action, whether reduced to judgment or not, shall be entitled to its reasonable court costs, including accountants’ fees and expert witness fees, if any, and attorneys’ fees expended in such action. The venue for any litigation shall be Los Angeles County, California.
29. SEVERABILITY
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
30. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the State of California.
31. COUNTERPARTS
This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile or email transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the Party whose signature appears in the facsimile or email and shall be binding upon such Party in the same manner as though an originally signed copy had been delivered.
32. ENTIRE AGREEMENT
All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the Parties. Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed by City and Consultant.
Professional Services Agreement
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TO EFFECTUATE THIS AGREEMENT, the Parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below. “CITY” “CONSULTANT”
CITY OF PICO RIVERA DAHLIN GROUP, INC.
______________________________ ___________________________________ Erik Lutz, Mayor Gregor Markel, Principal-In-Charge
Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Anna M. Jerome, City Clerk Arnold M. Alvarez-Glasman, City Attorney Professional Services Agreement
DAHLIN GROUP, INC.
EXHIBIT A
SCOPE OF SERVICES
PICO RIVERA YOUTH CENTER
SUMMARY - BASE SCOPE
The Pico Rivera Youth center is an
existing 3,420 SF one story wood framed
building that was originally constructed
in 1976. The original concrete slab,
existing wood trusses, wood roof
framing, and roof finish are still intact
and serviceable. In the past few years,
the wood corbel gutter supports have
started to deteriorate and break from the
structure. This has created entry points
for water to get inside the exterior walls
and caused sustained visible damage to
the south exterior wall.
The City’s main priority is to make the
necessary structural and architectural
repairs to safely reopen the Youth Center.
The main location of the existing water
damage is at the south exterior wall of
the building. The structural framework
for the north and south wall will both
need to be further reviewed to determine
what structural members are lacking
structural integrity. The north exterior
wall will need to be investigated further
for structural damage due to water
intrusion due to missing existing corbels
similar to the south wall.
All of the existing corbels will need to be
removed and a new attachment system
will be designed in order to hang the
existing gutters and replaced corbels. All
corbels are to be replaced with a more
durable product. All corbel penetration
openings will need to be repaired and
finished.
The metal gutters and downspouts are
to be replaced and attached in a more
secure fashion.
SCOPE OF SERVICES & PROJECT APPROACH
WORK PLAN
The base scope will be investigated with
a Structural Assessment to find the full
extend of damage and scope of repairs.
We have provided a fixed fee for this
project documentation and time &
expense for Construction Administration .
The total project budget for the base
scope of this Project is $200,000 per
Q&A document supplied on 11/1/22.
The goal of the project is to have the
work completed for reopening of the
Youth Center in Spring/Summer of 2023.
Information provided by the Client
includes:
• 1976 - Original Building floor
plans, elevations, foundation plan,
electrical plan, plumbing plan, panel
layout plan, floor framing plans,
room schedule and site plan.
• On-site Inspection Report completed
by Interwest Consulting Group dated
7/29/2022
FIXED FEE TIME &
EXPENSE
TASK 1
KICK OFF MEETING
& SITE VISIT
1.1 KICKOFF MEETING
DAHLIN will facilitate a kickoff meeting with all stakeholders and design team with the goal of setting expectations, budget and preliminary schedule. The Design Team will make one (1) visit to the Site to familiarize themselves with the existing conditions. $4,700
1.2 REVIEW OF EXISTING DOCUMENTS
DAHLIN will review all existing documentation, plans and reports regarding Redwood Hall. We will identify any gaps in information and recommend additional testing or studies.
DELIVERABLES
• Summary of existing conditions and assessment goals
• Site visit report
• Preliminary schedule and milestones
• Meetings: 1 Kickoff Meeting & Site Visit
TASK 2
ASSESSMENTS
& DESIGN
DEVELOPMENT
2.1 STRUCTURAL ASSESSMENT & DESIGN DEVELOPMENT
DAHLIN and DAHLIN’s Consultants will complete an independent inspection and analysis of the existing structure to verify findings of the June 2022 inspection report.
Once design direction is selected, DAHLIN and DAHLIN’s
Consultants will assemble Design Development drawings for the Project
$17,500
DELIVERABLES
• Structural Assessment - including findings, recommendations and necessary calculations
• Hazard Report
• Recommended repair solution
• ROM Cost estimate
• 100% Design Development Drawing Package
• Meetings: 1 meeting with staff
Kickoff & Structural Assessment
SCOPE OF SERVICES
FIXED FEE TIME &
EXPENSE
TASK 3
CONSTRUCTION
DOCUMENTS
3.1 CONSTRUCTION DOCUMENTS - BASE SCOPE
With the base scope design, DAHLIN will proceed with
Construction Documents. We will provide milestone submittals at 50% CD as well as a single cost estimate at 100%CD. DAHLIN will provide technical book specifications for use to complement the Drawing Set.
$22,800
DELIVERABLES
• 90% CD - Permit Submittal Set
• Plan Check Review and Response
• 100% CD - For Construction Set with Cost Estimate
• Technical Specifications Book for Public Bid
TASK 4
CONSTRUCTION
ADMINISTRATION
4.1 BID & CONSTRUCTION ADMINISTRATION
DAHLIN will provide Construction Administration services, limited to one hundred and twenty (120) hours and estimated four (4) month construction period. Services required beyond that period and/or beyond the estimated hours are Additional Services. We will assist CM / City PM with RFI Responses, Submittal Reviews, issuance of revisions via ASI /OPR and weekly OAC meetings - maximum of 4 total onsite OAC Meetings.
$17,000
CAP
DELIVERABLES
• Field Reports
• Close out Documents
• Final record drawings: PDFs & AutoCAD files of As-Designed Drawings (As Constructed drawings can be provided as an additional service.)
SCOPE OF SERVICES CONTINUED
Documentation & Construction Administration
Professional Services Agreement
DAHLIN GROUP, INC.
EXHIBIT B
APPROVED FEE SCHEDULE
FEE SUMMARY
BASE SCOPE FEES
TASK 1 KICK OFF MEETING & SITE VISIT $4,700 (FIXED)
TASK 2 ASSESSMENTS & DESIGN DEVELOPMENT $17,500 (FIXED) TASK 3 CONSTRUCTION DOCUMENTS $22,800 (FIXED)
TASK 4 CONSTRUCTION ADMINISTRATION $17,000 (TIME & EXPENSE) OTHER DIRECT COSTS $5,000 (EXPENSE)
GRAND TOTAL OF ESTIMATED BASE SCOPE FEES $45,000 - FIXED FEE $22,000 - TIME & EXPENSE
Professional Services Agreement
DAHLIN GROUP, INC.
EXHIBIT C
SCHEDULE OF PERFORMANCE
Professional Services Agreement
DAHLIN GROUP, INC.
EXHIBIT D
TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS
1. This Agreement calls for services that, in whole or in part, constitute “public works” as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code (“Chapter 1”). Further, Consultant acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. Therefore, as to those Services that are “public works”, Consultant shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein.
2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above.
3. Consultant shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5, and has provided proof of registration to City prior to the Effective Date of this Agreement. Consultant shall not perform work with any subconsultant that is not registered with DIR pursuant to Section 1725.5. Consultant and subconsultants shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If the Consultant or any subconsultant ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City.
4. Pursuant to Labor Code Section 1771.4, Consultant’s Services are subject to compliance monitoring and enforcement by DIR. Consultant shall post job site notices, as prescribed by DIR regulations.
5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party upon request.
Consultant acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant shall post such rates at each job site covered by this Agreement.
6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Consultant shall, as a penalty to City, forfeit $200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subconsultant.
Professional Services Agreement
DAHLIN GROUP, INC.
7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subconsultant to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.
8. Consultant shall comply with and be bound by the provisions of Labor Code seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program.
Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subconsultants shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement.
9. The Consultant shall not perform Work with any Subconsultant that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or state law providing for the debarment of consultants from public works. The Consultant and Subconsultants shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777.1 or any other federal or state law providing for the debarment of consultants from public works. If the Consultant or any subconsultant becomes debarred or suspended during the duration of the Project, the Consultant shall immediately notify City.
10. Consultant acknowledges that eight hours labor constitutes a legal day’s work.
Consultant shall comply with and be bound by Labor Code Section 1810. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by the Consultant or by any subconsultant for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.
11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ Professional Services Agreement
DAHLIN GROUP, INC.
compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
12. For every subconsultant who will perform work on the Project, Consultant shall be responsible for such subconsultant’s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Consultant shall include in the written contract between it and each subconsultant a copy of those statutory provisions and a requirement that each subconsultant shall comply with those statutory provisions. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subconsultant’s compliance, including without limitation, conducting a periodic review of the certified payroll records of the subconsultant and upon becoming aware of the failure of the subconsultant to pay his or her workers the specified prevailing rate of wages.
Consultant shall diligently take corrective action to halt or rectify any failure.
13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend (at Consultant’s expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent consultants serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including Consultant, its subconsultants, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys’ fees, and other related costs and expenses. All duties of Consultant under this Section shall survive the termination of the Agreement.
A Regular Meeting of the Water Authority was held in the Council Chamber, Pico Rivera City Hall, 6615 Passons Boulevard, Pico Rivera, California.
Meeting was jointly held with the City Council, Water Authority and Successor Agency to the Pico Rivera Redevelopment Agency. Items appear as listed on the combined agenda for the meeting of December 13, 2022.
Authority President Dr. Sanchez called the meeting to order at 6:02 p.m.
PRESENT: Camacho, Elias, Lara, Lutz, Sanchez
ABSENT: None
PUBLIC COMMENTS: None
PUBLIC HEARING: None
CONSENT CALENDAR:
11. Minutes:
• Approved Water Authority meeting of September 27, 2022
12. Advance Meter Infrastructure (CIP No. 50072) – Award Professional Services Agreement. (500)
1. Awarded a Professional Services Agreement to MeterSys to provide implementation consulting services for the Advance Meter Infrastructure (AMI) Project (CIP No. 50072) for an amount not-to-exceed $208,150 and authorized the Executive Director to execute an agreement in a form approved by the General Counsel.
Agreement No. 22-69
Motion by Vice President Lutz, seconded by Commissioner Camacho to approve Consent Calendar Item Nos. 11 through 12. Motion carries by the following roll call vote:
AYES: Camacho, Elias, Lara, Lutz, Sanchez
NOES: None
CONSENT CALENDAR ITEMS PULLED FOR FURTHER DISCUSSION: None REGULAR AGENDA: None
ADJOURNMENT:
Tuesday, December 13, 2022
13 12-13-22 Water Minutes
President Lutz adjourned the Water Authority meeting at 8:20 p.m. in memory of Efrain Aguilar, Tommy Guillen, Silvia De La Rosa, and Henrietta Salazar. There being no objection it was so ordered.
AYES: Camacho, Garcia, Lara, Sanchez, Lutz
ABSENT: None
________________________________
Erik Lutz, President
ATTEST:
________________________________
Anna M. Jerome, Authority Secretary
I hereby certify that the foregoing is a true and correct report of the proceedings of the Water Authority regular meeting dated December 13, 2022 and approved by the Water Authority on January 24, 2023.
_______________________________
Anna M. Jerome, Authority Secretary
To: President and Commissioners
From: Executive Director
Meeting Date: January 24, 2023
Subject: APPROVE AMENDMENT NO. 3 TO PROFESSIONAL
SERVICES AGREEMENT WITH AKM CONSULTING
ENGINEERS
Recommendation:
1. Approve an amendment to AKM’s Consulting Engineer’s professional services agreement in a not-to-exceed amount of $18,240.
Fiscal Impact:
The Adopted Budget fiscal year (FY) 2022-23 includes budget of $301,000 in GL account 550.70.7340-54500-CIP.50027 for construction management and inspection services for the Electrical Switchboard Replacement at Plant No. 3 Project. No additional appropriation is required at this time.
Discussion:
On April 13, 2021, the Pico Rivera Water Authority Commissioners approved Professional Services Agreement No. 21-53 with AKM Consulting Engineers for construction management and inspection services to assist the Pico Rivera Water Authority with the Electrical Switchboard Replacement at Plant No. 3 Project, CIP No. 50027.
Due to the contractor’s performance delays with the project, an amendment is needed to provide construction and inspection services for the remainder of the work to complete the project. The amendment includes a term extension through June 30, 2023, to the agreement and additional services in a not-to-exceed amount of $18,240.
Conclusion:
Staff recommends approving Amendment No. 3 to AKM’s Consulting Engineer’s professional services agreement in a not-to-exceed amount of $18,240 and term extension to complete the project through June 30, 2023. 14 PICO RIVERA WATER AUTHORITY AGENDA REPORT – JANUARY 24, 2023 APPROVE AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT WITH
AKM CONSULTING ENGINEERS
The City Attorney has reviewed the attached amendment (Enclosure 1).
Steve Carmona
SC:TR:NC:np
Enclosure: 1) Amendment No. 3
THIRD AMENDMENT NO. _______
TO PROFESSIONAL SERVICES AGREEMENT NO. 21-53
BETWEEN THE PICO RIVERA WATER AUTHORITY AND
AKM CONSULTING ENGINEERS
1. IDENTIFICATION
This Third Amendment to Agreement No. 21-53 for Professional Services (“Third Amendment”) is entered into as of December 30, 2022, and is an amendment to that certain Professional Services Agreement by and between the Pico Rivera Water Authority (“PRWA”) and AKM Consulting Engineers (“Consultant”) (collectively referred to as “Parties”) dated April 15, 2021, as amended (collectively, the “Agreement”).
2. RECITALS
2.1 On April 15, 2021, PRWA and Consultant entered into the Agreement for construction management and inspection services.
2.2 In a First Amendment dated December 31, 2021, the Parties agreed to extend the Term of the Agreement until May 1, 2022.
2.3 In a Second Amendment dated May 1, 2022, the Parties agreed to extend the Term of the Agreement until December 31, 2022.
2.4 Pursuant to Section 32 of the Agreement, the Parties may only amend the Agreement in a writing executed by both Parties.
2.5 PRWA and Consultant desire to further extend the term of the Agreement and add additional services as set forth herein, pursuant to Section 5 of the Agreement.
NOW, THEREFORE, for and in consideration of the performance by the Parties of the mutual covenants and conditions herein contained, the Parties hereto agree as follows:
3. EXTRA WORK
In accordance with Section 5. Consultant’s Services of the Agreement, the Scope of Work included in Exhibit A of the Agreement shall hereby be supplemented with Consultant’s proposal attached hereto as Exhibit A-1. Exhibit A-1 is hereby incorporated by reference into the Agreement.
4. COMPENSATION
As compensation for the Extra Work described in Exhibit A-1, the not to exceed fee amount under Section 5. Consultant’s Services of the Agreement shall hereby be increased by Eighteen Thousand Two Hundred Forty Dollars ($18, 240.00) for Fiscal Year 2022-2023.
Enclosure 1
14a
Amendment No. ______
AKM CONSULTING SERVICES
5. Subsection 3.4 of the Agreement is hereby amended to read as follows:
3.4 “Expiration Date”: June 30, 2023
6. Except as expressly modified by this Third Amendment, all provisions of the Agreement shall remain in full force and effect.
7. The provisions of this Third Amendment shall constitute the entire agreement of the Parties with respect to the subject matter included in this Third Amendment and shall supersede any other agreement, amendment, understanding, or arrangement, whether written or oral, between the Parties with respect to the subject matter of this Third Amendment.
8. The person or persons executing this Third Amendment on behalf of each of the Parties warrants and represents that he or she has the authority to execute this Third Amendment on behalf of that Party and has the authority to bind that Party to the performance of its obligations hereunder.
TO EFFECTUATE THIS AGREEMENT, the Parties have caused their duly authorized representatives to execute this Third Amendment on the dates set forth below. “PRWA” “CONSULTANT”
PICO RIVERA WATER AUTHORITY AKM CONSULTING ENGINEERS
______________________________ ___________________________________ Steve Carmona, Executive Director Zeki Kayiran, President Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Anna M. Jerome, Authority Secretary Arnold M. Alvarez-Glasman, General Counsel EXHIBIT “A-1”
(AKM Proposal)
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To: Mayor and City Council
From: City Manager
Meeting Date: January 24, 2023
Subject: INTRODUCTION AND FIRST READING OF REMOVAL OF
UNAUTHORIZED CONTAINERS PROVISIONS AND
PROCEDURES ORDINANCE
Recommendation:
1. Introduce and conduct the first reading of an ordinance adding Section 8.12.470 through 8.12.560 to Chapter 8.12, “Garbage and Rubbish,” of Title 8, “Health and Safety,” of the Pico Rivera Municipal Code, which will require a majority vote of the City Council.
Fiscal Impact:
There is no impact on the General Fund. Adopting this ordinance may generate new revenue from fees and fines associated with removing unauthorized containers, of which the amount is unknown.
Background:
On October 11, 2022, the City Council directed the City Manager to address concerns related to the use and operation of unpermitted waste containers in the City of Pico Rivera, specifically requesting staff to remove bins that do not belong to NASA, the City’s waste hauler. The primary concerns relate to the growing number of unsightly and poorly maintained containers in the public Right-of-Way (ROW), impacting residents’ quality of life, public safety, and regulatory compliance with the State.
Additionally, the City Council is concerned about the exclusive collection rights established through the refuse collection franchise agreement between NASA and the City.
The franchise agreement between the City and NASA (Agreement No. 12-1290-3), specifically, Sections 2.8 (b) and (g), allows for self-hauling of solid waste, recyclables, organics, and finally, Construction and Demolition (C&D), with some limitations (further explained below). Staff is proposing a new ordinance that removes unauthorized containers from public view that complies with the existing franchise agreement between the City and NASA.
15 CITY COUNCIL AGENDA REPORT- MEETING OF JANUARY 24, 2023
INTRODUCTION AND FIRST READING OF REMOVAL OF UNAUTHORIZED
CONTAINERS PROVISIONS AND PROCEDURES ORDINANCE
Discussion:
The proposed ordinance provides staff and respective contractors with the authority and tools to enforce provisions and procedures related to removing unauthorized waste containers and hauling within the City. The ordinance provides two (2) options the public can use for waste removal and diversion: 1) Contract directly with NASA or 2) Self-haul under specific circumstances. Finally, the ordinance outlines the process of removing containers that do not comply with NASA’s services or self-hauling provisions.
Self-Hauling Construction and Demolition (C&D) Material Section 2.8 (g) of Agreement No. 12-1290-3 allows for the self-hauling of C&D waste and debris but must meet all the following requirements:
C&D material and debris are removed by a licensed construction or demolition company as part of a total service offered by the said company; The licensed construction or demolition company must utilize its own equipment; and
The licensed construction or demolition company performs the associated services in the city.
This definition of “self-hauler” prevents third-party waste haulers (e.g., competitors of NASA) from renting their equipment to contractors or residents, functioning as a proxy and jeopardizing the contractual obligations from the City to NASA.
Removal of Unauthorized Containers
The proposed ordinance aims to remove any container placed in the public ROW and private property not owned or operated by NASA or has not received the necessary permits from the City. The ordinance grants the City Manager the authority to immediately remove said unauthorized containers, dispose of waste found in the containers, store the containers, and recover the costs associated with removing the containers through fines and fees. If the owner of the container does not pay the imposed fines and fees, the City may recover the cost through the proceeds of auctioning the container. If the City does not recover all expenses through the auction process, the City will invoice the remaining amount to the owner of the container.
Benefits of the Proposed Ordinance
The ordinance granting the City Manager the authority to remove unauthorized waste containers from the public ROW and private property will improve quality of life, health and safety and ensure compliance with State waste diversion regulations.
Quality of Life. The City has received several reports on unsightly and poorly maintained containers used for collecting C&D waste and debris, often in public view for CITY COUNCIL AGENDA REPORT- MEETING OF JANUARY 24, 2023
INTRODUCTION AND FIRST READING OF REMOVAL OF UNAUTHORIZED
CONTAINERS PROVISIONS AND PROCEDURES ORDINANCE
long periods. Addressing the unsightliness of the unkept containers can contribute to preserving property values and be a source of community pride.
Health and Safety. Proper placement of large C&D containers in the public ROW is detrimental to vehicular and pedestrian safety. The improper placement of large containers can reduce visibility for drivers and passengers alike, increasing the risk of accidents. For this reason, the ordinance aims to improve safety by allowing NASA to properly place the containers or allow City staff to review and recommend the proper placement of said containers.
Compliance with State Regulations. Assembly Bill (AB) 939 required jurisdictions to meet diversion goals addressing waste from construction and demolition (C&D) sources. To meet AB 939 goals and requirements, jurisdictions like the City of Pico Rivera rely on accurately reporting waste diversion, usually through the contracted waste hauler. However, when an individual or private entity decides to improperly selfhaul, capturing waste diversion becomes increasingly difficult, jeopardizing the City’s ability to meet state goals. Limiting C&D waste collection to NASA or requiring contractors to register as self-haulers ensures compliance with state regulations and improves the City’s ability to meet state diversion goals.
Finally, should the City Council adopt the ordinance, staff will implement the ordinance by modifying the permitting process to include the self-hauling stipulations, giving the City the necessary tools to remove unauthorized containers from public view, including the public ROW and private property.
Conclusion:
Staff recommends that the City Council introduce and conduct the first reading on an ordinance, which will require a majority vote of the City Council establishing provisions and procedures for removing unauthorized waste containers in the City of Pico Rivera.
Steve Carmona
SC:AG:VHF:smc
Enclosures: 1) Ordinance
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PICO
RIVERA, CALIFORNIA, ADDING SECTION 8.12.470 THROUGH 8.12.560 TO CHAPTER 8.12 OF TITLE 8 OF THE PICO RIVERA MUNICIPAL
CODE TO ESTABLISH THE REMOVAL OF UNAUTHORIZED
CONTAINERS PROVISIONS AND PROCEDURES IN THE CITY OF PICO RIVERA
WHEREAS, state recycling law, Assembly Bill 939 of 1989, the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq., as amended, supplemented, superseded, and replaced from time to time), requires cities and counties to reduce, reuse, and recycle (including composting) Solid Waste generated in their jurisdictions to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment; and
WHEREAS, the Pico Rivera Municipal Code section 8.12.020 defines “collection” as the operation of gathering together garbage, rubbish, and waste material, and transporting the same to the point of disposal; and
WHEREAS, the City of Pico Rivera has awarded an exclusive solid waste franchise to NASA Services; and
WHEREAS, the franchise agreement between the City of Pico Rivera and NASA Services allows for the self-hauling of waste, recyclables, and organics materials under specific circumstances; and
WHEREAS, a franchise system provides residents with quality waste collection services, consistent rates, improved customer service, and special features, such as annual clean-up events and bulky item pick-up included with the standard service; and WHEREAS, the franchise waste haulers are selected through a competitive process where waste haulers are requested to submit proposals for consideration and criteria for selecting the best-qualified waste hauler include price, work plan, financial resources, references, experience, environmental record, procurement and/or contract/agreement disputes; and
WHEREAS, state recycling law, Assembly Bill 341 of 2011 places requirements on businesses and multi-family property owners that generate a specified threshold amount of Solid Waste to arrange for recycling services and requires local agencies to implement a Mandatory Commercial Recycling program; and WHEREAS, state organics recycling law, Assembly Bill 1826 of 2014 requires businesses and multi-family property owners that generate a specified threshold amount of Solid Waste, Recycling, and Organic Waste per week to arrange for recycling services for that waste, requires local agencies to implement a recycling program to divert Organic Waste from businesses subject to the law, and requires local agencies to implement a Mandatory Commercial Organics Recycling program; and
Enclosure 1
15a
ORDINANCE NO. ____
WHEREAS, state organics recycling law, Senate Bill 1383 of 2016, the Short-lived Climate Pollutant Reduction Act of 2016, took effect on January 1, 2017, and set Statewide Organic Waste disposal reduction targets of 50 percent by 2020 and 75 percent by 2025, based on the 2014 organics waste disposal baseline, set forth in Section 39730.6 of the Health and Safety Code, and requires California's Department of Resources Recycling and Recovery (CalRecycle) to develop regulations to reduce organics in landfills as a source of methane ("SB 1383 Regulations"); and WHEREAS, the SB 1383 Regulations place requirements on multiple entities, including counties, cities, residential households, Commercial Businesses (including Multi-Family Residential Dwellings), Commercial Edible Food Generators, haulers, SelfHaulers, Food Recovery Organizations, and Food Recovery Services to support the achievement of statewide Organic Waste disposal reduction targets with compliance required beginning January 1, 2022; and
WHEREAS, by January 1, 2022, the SB 1383 Regulations require local agencies to adopt and enforce an ordinance or other enforceable mechanisms to implement relevant provisions of the SB 1383 Regulations concerning the regulation of organic waste collection services, generators of organic waste, waste haulers, and generators and processors of edible food, together with enforcement mechanisms and administrative civil penalties for violations of local regulations; and WHEREAS, the City of Pico Rivera desires to establish provisions and procedures for the illegal collection of solid waste, recyclables, and organic materials throughout the City.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Pico Rivera as follows:
SECTION 1. Incorporation of Recitals. The City Council for the City of Pico Rivera finds and declares the foregoing are true and correct and incorporates said recitals fully into this ordinance as substantive findings.
SECTION 2. Section 8.12.020 “Definitions,” in Chapter 8.12.560 “Garbage and Rubbish,” of Title 8, “Health and Safety,” is hereby amended and replaced as follows:
The definitions in this section shall govern the construction of this chapter.
A. "C&D Diversion Requirement" means the percentage of Construction and Demolition debris for each project that must be diverted from landfills.
B. "C&D Generator" means a residential or commercial entity that produces construction and demolition debris.
C. “Collection” means the operation of gathering together garbage, rubbish and waste material, and transporting the same to the point of disposal.
ORDINANCE NO. ____
D. "Collector" means a solid waste collector with a written franchise, contract or permit for the collection of solid waste, issued as set forth in this chapter, including salvaging or salvage collecting.
E. “Commercial premises” means any property located within the boundaries of the city, occupied or used for any purpose other than residential uses with less than four dwelling units, authorized or permitted in the PA, C-N, C-C, C-G, CPD and C-M zones, under the provisions of Title 18 of the Pico Rivera Municipal Code, and those mobile home parks, rental housing projects, apartment houses and other multiple dwellings containing four or more dwelling units, where one contract for the collection of refuse for all units within such park, project, house or multiple dwelling is made by the management thereof on behalf of all units thereof.
F. “Container” means containers, whether residential, multi-family residential, commercial, industrial, or institutional, provided for temporary accumulation and collection of solid waste for removal from all premises located within the city.
Containers include but are not limited to, solid waste containers with capacity of at least one cubic yard and roll-off type service containers.
G. “Contractor” means the person entering into a contract with the city for the collection and disposal of garbage, rubbish and waste material.
H. “Disposal” means the complete operation of treating and disposing of the accumulations of rubbish, waste material and the products or residue arising from such treatment.
I. 1. “Exceptional materials” means those wastes and other materials not included in the definition of rubbish, garbage or waste material, including:
a. Any object not easily moved by one person, such as discarded automobile bodies, refrigerators, stoves or other bulky or heavy objects; or b. Waste material resulting from any manufacturing, building or construction operation;
c. Manure, offal, waste from any poultry yard or stable; d. Logs, stumps or limbs from trees exceeding four inches in diameter or three feet in length; and
e. Sod, dirt or similar material.
2. “Waste material,” as used in this subsection, shall be exclusive of that waste material defined in subsection M of this section.
ORDINANCE NO. ____
J. “Garbage” means waste animal and vegetable matter of every kind and character, including such waste food, animal and vegetable matter as accumulates in hotels, restaurants, eating houses and private homes, in the kitchens and on the tables of such places; and also including such waste animal and vegetable matter as accumulates in meat markets, grocery stores and fruit and vegetable markets.
The particular designations herein shall not be deemed to exclude the general.
K. “Householder” means the owner or occupant of any residential dwelling.
L. “Industrial premises” means those premises upon which the primary and principal activities are of an industrial nature and which activities and uses fall within I-L and I-G zones, including those requiring conditional use permits.
M. “Person” means an individual, group of individuals, and/or any legal entity recognized by the laws of the state.
N. ”Refuse,” when used in this chapter without qualification, means any and all garbage, rubbish or waste material located upon or originating in or upon any residential or commercial property in the city, except materials expressly excluded from the terms of this chapter.
O. “Residential property” means any property occupied or used for any purpose authorized or permitted in the RE, SF, PUD and R-M zones under the provisions of Title 18 of the Pico Rivera Municipal Code, as may be amended from time to time, and located within the boundaries of the city, except as provided in the definition of commercial premises in subsection B of this section.
P. “Rubbish or waste material” means all solid waste consisting of both combustible and noncombustible waste, such as shrubbery and yard trimmings and clippings, grass, weeds, leaves, wood, chips, paper, pasteboard, cardboard, magazines, books, rubber, rags, carpets, bedding, clothing, boots, shoes, hats, straw, packing materials, glass, crockery, bottles, shelves, tin cans, metals, ashes, cinders, and other similar waste materials which ordinarily accumulated from the operation of a household or business.
Q. "Salvage" means refuse for which a permit to treat as Salvage has been obtained under this Chapter and which includes recyclable material. Salvage is source-separated recyclable materials consisting of source-separated commingled recyclable materials, sources-separated recyclable materials, and source-separated single-category recyclable materials.
R. "Salvage Collector" means any individual, partnership, joint venture, unincorporated private organization, or private corporation regularly engaged in the business of providing Salvage collection services including those who use third-party haulers.
ORDINANCE NO. ____
S. "Salvage Generator" means any individual, partnership, joint venture, unincorporated private organization, or corporation which created, accumulates, imports, or causes to be imported into the City Salvage which is sold or given to a Salvage Collector.
T. "Self-hauler" means any individual, partnership, joint venture, unincorporated private organization, or private corporation engaged in salvaging that it creates, accumulates, imports, or causes to be imported into the City. Any person that self-hauls any solid waste or recyclables within the City without a valid permit shall be subject to all fines, fees, and penalties identified in this Chapter.
Furthermore, a Self-hauler of C&D waste debris must meet all of the following requirements to be considered a self-hauler:
1. C&D material and debris are removed by a licensed construction or demolition company as part of a total service offered by the said company;
2. The licensed construction or demolition company must utilize its own equipment; and
3. The licensed construction or demolition company performs the associated services in the city.
U. "Third Party Hauler" means any commercial carrier or common carrier who transports Salvage or recyclable material at the direction, request, or hiring of a Salvage collector.
SECTION 3. Section 8.12.470 through 8.12.560 in Chapter 8.12 “Garbage and Rubbish,” of Title 8, “Health and Safety,” is hereby added to the Pico Rivera Municipal Code as follows:
Title 8 HEALTH AND SAFETY
Chapter 8.12 GARBAGE AND RUBBISH
Section 8.12.470 Authorization required to collect.
No person, collector, or Salvage collector shall engage in the collection, caring, conveyance, Salvage, or transportation of any Solid Waste or Recyclable Material from or at any location within the limits of the City without the express written consent of the City Council by means of a franchise or permit granted by the City Council or, where authorized, the City Manager, pursuant to this Chapter or other provisions set forth in the City of Pico Rivera Municipal Code.
ORDINANCE NO. ____
Section 8.12.480 Unauthorized containers.
It is unlawful for any person to utilize containers for the collection, deposit or transport of Solid Waste, commercial Solid Waste, Construction, Demolition and Deconstruction debris, Green Waste, or other Solid Waste unless such containers have been issued by the Collector. It is unlawful for any person to utilize containers for the collection, deposit, or transfer of Recyclable Material or other Solid Waste or Recyclable Solid Waste unless such containers have been issued by the Collector or a Salvage Collector authorized by the City Manager to issue such containers. Such containers shall be subject to removal as set forth in Section
8.12.520
Section 8.12.490 Enforcement.
Pursuant to California Penal Code Section 836.5, the City Manager, persons designated by the City Manager, and all City code enforcement officers are hereby authorized to enforce the provisions of this Chapter as well as those of California Penal Code Sections 373 (a), 374.2, 374.3, 374.4, and 375; California Government Code Section 68055 et seq.; and California Vehicle Code Sections 374.7, 374.8, 23111 and 23112. The City Manager may promulgate administrative regulations to provide those integrated waste management services which are not specifically provided for in this Chapter.
Section 8.12.500 Violation.
Violations of this Chapter are punishable as set forth in Chapter 1.20 of this code.
Section 8.12.510 Civil action by collector.
Nothing in this Chapter shall be deemed to limit the right of a collector to bring a civil action against any person who violates this Chapter, nor shall a conviction for such violation exempt any person from a civil action brought by a Collector.
Section 8.12.520 Unauthorized container impoundment.
Any container used for storing or transporting Salvage or Solid Waste which is not the property of the Collector or under the control of a duly permitted Salvage collector in the City, may be removed from any premises in the City and impounded without notice to the owner of the container.
Such removal and impoundment may be made by any person or entity designated by the City Manager. In the event the container has contents, the contents may be disposed of if the City Manager determines disposal to be necessary, in his or her sole discretion, to preserve the public health, safety and welfare. Any such container shall be held under his or her direction subject to the right of the owner ORDINANCE NO. ____
thereof to take it upon payment of a sum as provided in a fee schedule. The fee schedule shall be inclusive of the amounts incurred to recover the costs of removing and impoundment of the container, the disposing of the contents of any such container caused to be removed by the City, including both the costs incurred by the collector/hauler performing such removal and the City's administrative costs, the fee schedule shall be an amount equal to the City's maximum authorized daily service rate charged for the subject size container, plus any processing charges, disposal charges, storage fees, and overhead charges incurred. The processing charges and disposal charges of the container's content shall be based on the rates of the City-designated local transfer station and landfill. Storage fees for the container shall be based on the rates of the City-designated local storage facility.
Within twenty-four (24) hours of the time that the City has removed and impounded the container and its contents if any, the City Manager shall cause to be sent to the owner of the container written notice advising the owner that the container has been removed and is in the possession of the City and, that if said container is not redeemed by the owner within thirty (30) days, said container will be subject to sale. If the container is not redeemed by the owner within thirty (30) days after such removal and impoundment, it may be thereafter sold at public auction under the direction of the City Manager to the highest bidder after the City Manager has within forty (40) days from the date of removal and impoundment of the container, sent by regular mail with a prepaid postage notice of such sale to the person owning or in control of such container and to four (4) or more other collectors at least ten (10) days before such sale. The proceeds of any such sale shall be applied to the cost of such sale and to the cost of removal and holding of such container plus twenty-five percent (25%) of such costs for the overhead expenses of the City in causing such sale. Any balance such proceeds shall be paid upon demand to the person who owns such container at the time of its removal. In the instance of a deficiency where the sales price of the container does not generate sufficient money to pay for the costs of removal, storage, and overhead charges, the City Manager shall submit an invoice to the owner of the container, for payment in an amount equal to the deficiency. The container may be redeemed by the owner at any time prior to the sale and upon payment of the amounts due and owing pursuant to this section.
Section 8.12.530 Self-hauler–Permit required.
Every Self-hauler within the City shall secure a permit to create, accumulate, import, or cause to be imported or transport Salvage. Applications for self-hauler permits required under this Chapter shall be filed with the City Manager upon printed forms to be prescribed and supplied by the City Manager. Within thirty days after receipt of all information requested of an applicant, the City Manager shall either grant or deny the Self-hauler permit and shall immediately notify the applicant by electronic mail or first-class mail of the action taken. The permit shall ORDINANCE NO. ____
provide for the payment of fees to the City in an amount established from time to time by the City Manager.
Section 8.12.540 Reporting requirements.
Each Salvage Collector, Salvage Generator or Self-Hauler operating under the provisions of this code shall be required at the discretion of the City to submit monthly, quarterly and annual reports containing information relative to its Salvaging activities including collection tonnage of Salvage or Recyclable Solid Waste collected within the City limits and other information as may be reasonably required by the City to determine the effectiveness of services provided, effectiveness of City and/or Salvage Collector, Salvage Generator or Self-hauler sponsored programs for compliance, as well as current collection tonnages within the City. Such records shall be submitted in a format approved by the City with the affixed signature of a duly authorized representative of the Salvage Collector, Salvage Generator, or Self-hauler. Such reports shall be submitted to the City pursuant to a schedule established by the City Manager. Notwithstanding the foregoing, each Salvage Collector, Salvage Generator, or Self-hauler shall submit, on or before the twenty-eighth (28th) day of each month, a monthly weight report prepared on a form approved by the City which shall enable the City to determine the volume of Salvage for the preceding month.
Each Salvage Collector, Salvage Generator, or Self-hauler shall maintain all records relating to the services provided for in this Chapter for twenty-five (25) months from the date upon which such services are provided. The City shall have the right, upon reasonable advanced notice, to inspect and/or audit records that may be relevant to the operations within the City or relating to the imposition of any fees which be imposed by the City. Such records shall be made available to the City at the regular place of business of the Salvage Collector, Salvage Generator, or Self-hauler. Should an inspection or audit of a Salvage Collector, Salvage Generator, or Self-hauler result in the obtaining of proprietary information between the Salvage Collector, Salvage Generator, or Self-hauler and the City, any exchange of information between the City and the Salvage Collector, Salvage Generator, or Self-hauler shall be considered to be proprietary between the City and the Salvage Collector, Salvage Generator or Self-hauler and of the utmost confidential nature to the extent allowable by law.
Section 8.12.550 Containers and equipment.
All Salvage shall be collected, accumulated, or transported in containers, bales, or other methods approved by the City Manager. Salvage shall not be collected in a packer box system where the material has been packed into a closed container.
Each such container shall at all times be kept in good repair and maintained in a clean and sanitary condition. Each such container shall bear upon at least two (2) of its sides the name and telephone number of the Salvage Collector, which name ORDINANCE NO. ____
and telephone number shall be in legible letters and numerals. Any container which does not comply with the requirements of this section shall be subject to removal as provided in Section 8.12.520 of this Chapter.
Section 8.12.560 Cooperation with City.
Each Salvage Collector, Salvage Generator, or Self-hauler shall cooperate with the City and/ or designated consultants in Solid Waste disposal characterization studies and waste stream audits and shall implement measures adequate to achieve the City's source reduction, recycling, and waste stream diversion goals for the Solid Waste stream. Each Salvage Collector, Solid Waste Generator, or Self hauler, at its own expense shall submit to the City information and reports necessary for the City to meet its reporting obligations imposed by the Act and/ or other legislation and the regulations implementing the Act and/ or other legislation.
SECTION 4. The owner of any container may appeal the actions of the city manager or his/her designee in removing a container and the imposition of fees within ten (10) days from the date of serving the notice to abate or within ten (10) days of serving the notice of removal. The person to whom notice was given may file an appeal of the nuisance finding to the city manager. Such appeal shall be in writing and shall identify the property subject to the notice. Failure to file a timely appeal shall constitute a waiver of all rights to an administrative appeal hearing and adjudication of the notice to abate or any portion thereof. The city manager shall then appoint a hearing officer to hear the appeal, which hearing officer may not be an employee of the city. Notice of the date and time of the hearing shall be given in writing. The date of the hearing shall be no sooner than five (5) days from the date when the notice of the hearing is given to the appellant and to the enforcement officer. The hearing shall be conducted within twenty (20) days from the filing of the appeal or at such later date as may be agreed to by both appellant and the city. At the time of the hearing, the hearing officer shall hear testimony of all competent persons desiring to testify and review all documents, photographs or other evidence respecting the condition constituting the nuisance. If the appellant fails to attend the hearing, the hearing will proceed without the appellant and he or she will be deemed to have waived his or her rights to present evidence or testimony at the hearing. At the conclusion of the hearing, the hearing officer shall determine whether or not a nuisance exists or existed.
If a determination is made supporting the finding of a nuisance, the appellant shall be served a written notice of the hearing officer’s decision directing the abatement of the nuisance or payment of fees within ten (10) days. The decision of the hearing officer is final.
SECTION 5. Any provision of the City of Pico Rivera’s Municipal Code inconsistent with the provisions of this ordinance, to the extent of such inconsistency and no further, is hereby repealed or modified to the extent necessary to affect the provisions of this ordinance.
ORDINANCE NO. ____
SECTION 6. The City Clerk shall certify to the adoption of this ordinance. The City Council hereby finds that there are no newspapers of general circulation published and circulated within the City. The City Clerk shall therefore cause this ordinance to be posted in five public places within the City as specified in the Pico Rivera Municipal Code within fifteen (15) days of its final passage and this ordinance shall take effect thirty (30) days following its final passage.
SECTION 7. The City Clerk shall certify to the adoption of this ordinance causing it to be posted as required by law.
APPROVED AND ADOPTED this _____ day of ______, 2023.
___________________________
Erik Lutz, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Anna M. Jerome, City Clerk Arnold M. Alvarez-Glasman, City Attorney
STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Anna M. Jerome, City Clerk of the City of Pico Rivera, do hereby certify that the foregoing Ordinance No. _____was adopted at a regular meeting of the City Council of the City of Pico Rivera, held on Tuesday, __________, 2023, with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Anna M. Jerome, City Clerk
To: Mayor and City Council
From: City Manager
Meeting Date: January 24, 2023
Subject: ANNUAL COMPREHENSIVE FINANCIAL REPORT,
FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR
2021-22 GENERAL FUND YEAR-END RESULTS
Recommendation:
1. Receive and file the Annual Comprehensive Financial Report, fiscal year (FY) ending June 30, 2022; and;
2. Approve Budget Transfers that allocate the FY 2021-22 Unassigned General Fund Balance of $87,913.
Fiscal Impact:
The discussion below provides a summary of the financial data found in the Annual Comprehensive Financial Report (ACFR) for the FY ending June 30, 2022. The recommended budget transfers of $87,913 from the General Fund (GL Account No. 100.98.9800-56900) will eliminate the negative balances for the Liability Claims Fund (GL Account No. 105.00.0000-47900), the Workers’ Compensation Claims Fund (GL Account No. 106.00.0000-47900), and the Financial System Software Fund (GL Account No. 450.00.0000-47900).
Discussion:
The ACFR is prepared by using the guidelines set forth by the Government Accounting Standards Board (GASB) and audited by CliftonLarsonAllen, LLP (CLA), Certified Public Accountants and Consultants. For the year ended June 30, 2022, these financial statements received an unmodified opinion by CLA. Their opinion is located at the beginning of the financial section of the report (Enclosure 1).
The ACFR provides a financial summary for the City of Pico Rivera (City) and its component units: the Housing Agency (Authority), Water Authority and Successor Agency. Major sections of the ACFR are the Introductory Section (including the Transmittal Letter, the Management's Discussion and Analysis), Finance Section, Notes to the Financial Statements and Statistical Section.
17 CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Management's Discussion and Analysis (MD&A) immediately follows the independent auditors' report and provides a narrative overview and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
Financial Statement Highlights
The ACFR includes many financial schedules that provide information related to various aspects of the City's financial standing. The City's net position (assets less liabilities) increased by $26.0 million, from $313.6 million to $339.5 million. Citywide revenues totaled $115.3 million, an increase of $20.7 million over the prior year. Expenses were $89.4 million, an increase of $4.4 million over the prior year.
Reserves and Fund Balance Policy
In an effort to further secure the City's long-term financial health, the City Council first adopted comprehensive reserve policies as part of the FY 2016-17 budget adoption process. These policies solidified the City's commitment to setting aside funds for economic uncertainty while expanding the policy to allow for assignments of fund balance for capital projects, equipment replacement, leave accruals and other expenses.
On July 28, 2020, the City Council adopted revised "risk-based" General Fund and Proprietary Fund Reserve Policies, which increased the General Fund's Emergencies/Economic Stabilization Reserve from 25% to 50%. The revised policy also set certain triggers to allow staff and City Council to reassess budgeted service/personnel levels during economic downturns to ensure ongoing economic stability. The revised policies were incorporated as part of the FY 2022-23 budget, which the City Council adopted on June 28, 2022.
Significant City Accomplishments and Initiatives
FY 2021-22 has been a very fruitful year for the City, and we are proud to present the accomplishments as the City of Pico Rivera is exceptionally well positioned to meet current and future challenges facing local government and our community. This fiscal year’s accomplishments signify the City’s commitment to working together in a collaborative manner for the betterment of the greater community. These accomplishments, and many more, demonstrate our diligence and commitment to implementing our strategic priorities and ensuring the City’s economic prosperity and bettering the lives of our citizens and businesses. The City’s performance goals, priorities, and strategies focus on the following areas:
Fiscal and Organization Sustainability
Economic Development and Land Use
Infrastructure
Health, Wellness and Safety
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Community Engagement
The City’s FY 2021-22 Accomplishments Report brochure is attached in its entirety to this report as Enclosure 2. The report includes the City’s Guiding Plan, Awards, and Recognition categorized by strategic priority, as well as the initiatives and visions for FY 2022-23.
The entire ACFR can be found on the City's website, placed there with the prior year's financial statements to promote transparency. In addition, the FY 2021-22 ACFR is attached in its entirety to this report as Enclosure 1.
General Fund Year-End Results
This report is to inform the City Council of the City's year-end financial positions. FY 2021-22 General Fund revenues and transfers-in ended the year in excess of expenditures and transfers-out, which resulted in a year-end surplus of $22 thousand, as shown in Table 1.
Table 1 – General Fund Year-end Results
FY 2021-22 General Fund Results
Operating Revenues $49,034,402 49,034,402
Operating Transfers In 1,479,066 1,479,066
Revenues & Transfers In Total * $50,513,468 $ - $ 50,513,468 Operating Expenditures $42,076,943 5,000,000 47,076,943 Sales Tax Pledge for Debt Payment $ 1,065,000 1,065,000 Operating Transfers Out 2,349,335 2,349,335
Expenditures & Transfers Out Total * $45,491,278 5,000,000 50,491,278 FY 2021-22 Results (Revenues Less Expenditures): $ 5,022,190 $ (5,000,000) $ 22,190 * Amounts are grouped and presented differently from the ACFR statements for this report.
Operating
Bond
Refinancing Total
The City’s operating revenues and transfers-in were over operating expenditures and transfers-out by $5.02 million at the end of FY 2021-22. In December 2021, the City transferred $5 million from the General Fund to the Successor Agency Fund and took advantage of the low-interest rate to refund the outstanding Successor Agency Tax Allocation Bonds (TABs) 2001 (7%) with TABs 2021, which has a more favorable interest rate (1.51%). As a result of the transfer, the City had a net surplus of $22 thousand for FY 2021-22.
The surplus resulted from greater revenues than budget and expenditures below budget due to the following major components:
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Revenue
For the fiscal year ended June 30, 2022, General Fund revenues came in at $50.74 million, which outperformed the Amended Budget estimates by approximately $3.04 million, or 5%. The highest positive variances are associated with Sales Tax, Licenses & Permits, and Utility Users Tax.
In California, the pandemic and higher energy prices shallowed growth. Conversely, the retail trade, hospitality, health care and social services have solid gains in employment.
The robust labor market, strong consumer spending, and an easing of pandemic-related supply chain constraints all contributed to the state economy's continued growth. • Sales Tax revenues came in higher than adjusted budget estimates by $2.24 million. The City utilizes HdL Companies for sales tax analysis and to provide sales tax projections that address the impacts of the pandemic. Year-end results exceeded estimates due to a combination of factors such as AB 147 adding new sales and use tax revenues collected from out-of-state retailers shipping to California since FY 2020-21, consumer confidence stabilized, and more consumers shopped online in FY 2021-22. The increase in online sales has resulted in a more consistent shift in sales tax collection to the State and County Pools due to the rise of online shopping rather than traditional brickand-mortar stores. • Utility Users Tax (UUT) came in over the budgeted estimates due to an increase in usage and pricing of electric and natural gas billed charges.
When comparing prices of Electricity per Kilowatt Hour (EKH) and Utility (piped) gas per therm (UGT), the Bureau of Labor Statistics shows Los Angeles households are paying an average of 14% per EKH higher in 2022, than per EKH paid in 2021. The average cost of UGT in 2022 was 23% higher than compared to 2021.
• Business License. The City projected FY 2021-22 new Business License applications based on the FY 2020-21 actual amounts, which included some delinquent accounts. As the City caught up and resolved most of the delinquencies in FY 2020-21, the actual FY 2021-22 amount came marginally under the budgeted estimates.
• Parks and Recreation came in over budgeted estimates primarily due to the expansion of recreation programs and contract class offerings in FY 2021-22.
The reopening of limited programs and services has increased participation and revenue.
• License & Permits came in over the budgeted estimates due to several factors: an increase in activity of permits for Building, Plumbing, Electrical, and Plan Checks; increased Plan Check fees and Other Licenses and CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Permits fees primarily due to the increase in building and project valuations; and the User Fee increases due to the annual adoption of the Schedule of Fees aligned with the Consumer Price Index (CPI).
• Franchise Tax came in over the budgeted estimates due to an increase in usage and pricing of the electric and natural gas charges related to CPI increases.
• Transient Occupancy Tax (TOT), the hotel visitor tax, came in over the budgeted estimates due to the rebound of travel and lodging while more COVID-19 restrictions were being lifted. Currently, the average TOT rate is 10%.
• All Other Revenues came in under budgeted estimates primarily due to State Grants and Interest Income. Beginning in FY 2021-22, the State Grant funding for the Summer Lunch Program moved from the General Fund to the Miscellaneous Local Grants Fund to comply with the specific special fund program reporting requirements. Also, interest income and fair value of investments have decreased due to the market conditions in FY 2021-22. In accordance with GASB 31, all unrealized investment gains and losses, including changes in the fair value of investment, are required to be reported in the operating statement.
Table 2 below shows revenues by category.
Table 2. General Fund Revenues by Category
Revenue Source
FY 21-22
ADOPTED
BUDGET
FY 21-22
AMENDED BUDGET
FY 21-22
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER
(UNDER)
AMENDED
BUDGET
Sales Tax $ 20,334,350 $ 22,313,428 $ 24,551,320 $ 2,237,892 9% Property Tax 12,231,509 12,480,733 12,458,947 (21,786) (0%) Utility Users Tax 3,130,682 3,130,682 3,567,128 436,446 12% Franchise Tax 812,000 812,000 1,006,998 194,998 19%
Transient Occupancy Tax (TOT) 433,620 433,620 533,482 99,862 19% Business License Tax 1,433,801 1,433,801 1,393,135 (40,666) (3%) Parks & Recreation Fees 322,632 158,532 288,814 130,282 45% Licenses & Permits 1,324,616 1,524,616 2,222,131 697,515 31% All Other Revenues* 3,789,973 3,789,973 3,210,826 (579,147) (18%) OPERATING REVENUE 43,813,183 46,077,385 49,232,782 3,155,397 6% Cares Act - - 28,703 28,703 100%
Transfers In - Others** 1,620,456 1,620,456 1,479,066 (141,390) (10%) TOTAL - GENERAL FUND REVENUE $ 45,433,639 $ 47,697,841 $ 50,740,551 $ 3,042,710 6% *Includes Fines & Forfeitures, Charges for Services, Use of Money, Other Revenue, and Intergovernmental Revenue **Includes Transfer In (Gas Tax)
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Table 3 below shows other General Fund Revenues under the Water Enterprise and Pension Section 115 Trust Incomes.
Table 3. Total General Fund Revenues
General Fund (Fund 100) $ 50,740,551
Water Enterprise (Fund 551) (34,780)
Section 115 Pension Trust Fund (Fund 875) (192,302)
Total General Fund Revenues FY 2021-22: $ 50,513,468
Expenditure
At the end of June, General Fund expenditures totaled $50.29 million, including operating expenditures of $37.71 million, which were $5.41 million, or 13% underestimates (Amended Budget to Actuals). At the end of the fiscal year, expenditures for nearly all departments were under budget estimates. Table 4 shows the General Fund Expenditures by major category. The major variances are discussed in detail in Table 5.
Table 4. General Fund Operating Expenditure Summary
GENERAL FUND OPERATING EXPENDITURE SUMMARY
FY 21-22
ADOPTED
BUDGET
FY 21-22
AMENDED
BUDGET
FY 21-22
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER/
(UNDER)
AMENDED
BUDGET
TOTAL Salaries & Benefits $18,792,511 18,082,400 17,131,699 $ (950,701) (5%) TOTAL Maintenance & Operations 26,641,128 25,043,080 20,579,034 (4,464,046) (18%) TOTAL GENERAL FUND OPERATING EXPENDITURE SUMMARY $45,433,639 43,125,480 37,710,732 $ (5,414,748) (13%) • Salaries & Benefits expenditures came in lower than budgeted by $951 thousand, primarily due to an average of eight (8) vacancies throughout the year.
• Maintenance and Operations came in lower than budgeted by $4.46 million, of which $1.28 million were from carried-over encumbrances; they have properly been included in the Year-End Open Purchase Order report that spans all departments. The other variances were mainly due to continuing appropriations for programs and projects that were in progress and expected to be completed by the end of FY 2022-23, including the Public Works vehicle replacement, IT infrastructure improvements, community outreach enhancements, facility improvements, etc.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Table 5. General Fund Expenditures by Department
DEPARTMENT / EXPENDITURE CATEGORY
FY 21-22
ADOPTED
BUDGET
FY 21-22
AMENDED
BUDGET
FY 21-22
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER/
(UNDER)
AMENDED
BUDGET
ADMINISTRATION
Salaries & Benefits $ 1,505,174 $ 1,505,174 $ 1,477,530 $ (27,644) (2%) Maintenance & Operations 434,560 1,130,653 353,566 (777,087) (69%) TOTAL ADMINISTRATION 1,939,734 2,635,827 1,831,096 (804,731) (31%) PUBLIC SAFETY ***
Law Enforcement - Los Angeles County Sheriff 12,713,448 13,232,015 12,135,586 (1,096,429) (8%) Revenue Loss Credit - ARPA Funded - (10,227,800) (10,227,800) - 0% TOTAL PUBLIC SAFETY 12,713,448 3,004,215 1,907,786 (1,096,429) (36%) COMMUNITY & ECONOMIC DEVELOPMENT ****
Salaries & Benefits 3,751,249 3,472,849 3,158,091 (314,758) (9%) Maintenance & Operations 1,986,437 2,568,002 1,430,195 (1,137,807) (44%) Transfers Out to Successor Agency Fund 1,065,000 6,065,000 6,065,000 - 0% TOTAL COMMUNITY & ECONOMIC DEVELOPMENT 6,802,686 12,105,851 10,653,286 (1,452,565) (24%)
ADMINISTRATIVE SERVICES
Salaries & Benefits 1,730,251 1,583,911 1,463,201 (120,710) (8%) Maintenance & Operations 695,751 1,458,312 744,062 (714,250) (49%) TOTAL ADMINISTRATIVE SERVICES 2,426,002 3,042,223 2,207,263 (834,960) (27%) Non-Departmental
Salaries & Benefits 2,036,868 2,036,868 1,861,032 (175,836) (9%) Maintenance & Operations 4,195,874 4,195,874 4,052,584 (143,290) (3%) TOTAL NON-DEPARTMENTAL 6,232,742 6,232,742 5,913,616 (319,126) (5%)
HUMAN RESOURCES
Salaries & Benefits 649,436 649,436 678,682 29,246 5%
Maintenance & Operations 436,650 457,050 383,835 (73,215) (16%) TOTAL HUMAN RESOURCES 1,086,086 1,106,486 1,062,517 (43,969) (4%)
PARKS & RECREATION
Salaries & Benefits 4,592,966 4,522,966 4,201,397 (321,569) (7%) Maintenance & Operations 1,000,518 1,444,397 1,380,119 (64,278) (4%) TOTAL PARKS & RECREATION 5,593,484 5,967,363 5,581,517 (385,846) (6%)
PUBLIC WORKS
Salaries & Benefits 4,526,567 4,311,196 4,291,765 (19,431) (0%) Maintenance & Operations 4,112,890 4,719,577 4,261,887 (457,690) (10%) TOTAL PUBIC WORKS 8,639,457 9,030,773 8,553,652 (477,121) (5%) TOTAL GENERAL FUND OPERATING EXPENDITURES 45,433,639 43,125,480 37,710,732 (5,414,748) (13%) Transfers Out - ARPA Allocation to CIP 10,227,800 10,227,800 - 0% Transfers Out - Others 2,349,335 2,349,335 - 0%
TOTAL GENERAL FUND EXPENDITURES &
TRANSFERS OUT $ 45,433,639 $ 55,702,615 $ 50,287,867 $ (5,414,748) (10%) *** See table 6
**** See table 6
ADMIN = City Council, Admin, City Clerk, City Attorney
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Table 6 below shows the reconciliations between actual expenditures per payments and the amounts on ACFR for Public Safety and Community & Economic Development expenditures:
Table 6. Reconciliation between Actual and ACFR Expenditures – Public Safety and Community & Economic Development Expenditures
Sales Tax
Pledge
for Debt
Payment
Public Safety *** $ 12,135,586 (10,227,800) $ 1,907,786 Community & Economic Development **** $ 4,588,286 5,000,000 1,065,000 $ 10,653,286 Actual
Amounts
ARPA
Revenue
Bond
Refinancing
ACFR
Amounts
Table 7 below shows Other General Fund expenditures under the Liability Claims and Workers’ Compensation Claims Funds.
Table 7. Total General Fund Expenditures
General Fund (Fund 100): $ 50,287,868
Liability Claims (Fund 105): 26,640
Workers Compensation Claims (Fund 106): 176,771
Total General Fund Expenditures FY 2021-22: $ 50,491,278 Discussion of departments with significant variances from the amended budget are as follows:
• Administration year-end expenditures came in 31% lower than the amended budget, primarily due to ongoing contracts for projects, such as the multi-year document scanning project and the Historical Whittier Blvd Multi-Modal Revitalization Plan projects that will continue into FY 2022-23. • Public Safety *** As illustrated in Table 6, in FY 2021-22, the City incurred actual Public Safety expenditures of $12,135,586. As the City recognized $10,227,800 in ARPA revenues and offset that amount with law enforcement expenditures, the amount reported on ACFR became $1,907,786.
When comparing the actual expenditures of $12,135,586 with the budgeted amount of $13,232,015, the actual came in 8% below budget primarily due to the ongoing Automated License Plate Reader (ALPR) program by Flock Safety, which was approved in FY 2021-22 and will continue into FY 2022-23. The ALPR program is a system of cameras and supporting software that captures license plate information and instantly compares plate numbers to a database that aids law enforcement in criminal investigations and crime reductions. • Administrative Services year-end expenditures came in 27% lower than the amended budget due to salary savings and lower IT software and license CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
expenditures. The Software Licensing and Furniture and Equipment expenditures in the IT division came in lower due to some multi-year IT projects, which were part of the IT Assessment recommendations approved by the City Council in FY 2021-22 and will continue into FY 2022-23.
• Community & Economic Development (CED) **** As illustrated in Table 6, in FY 2021-22, the City incurred actual CED expenditures of $4,588,286. Per GASB No. 38, the transfers between the general government and a fiduciary fund (Successor Agency Fund, in this case) must be reclassified. Therefore, we adjusted the CED expenditures by the Successor Agency transfers of $6,065,000 to $10,653,286.
When comparing the actual expenditures of $4,588,286 with the budget, the actual came in 24% below budget due to salary savings from vacant positions and ongoing contracts and projects that will continue into FY 2022-23. The contracts and projects include Professional and Contracted Services such as legal services, implementation of the Online Permit Program, the Permanent Local Housing Allocation Program (PLHAP), and other Community and Economic Development Strategic Plans and Studies.
• Parks & Recreation came in 6% under budget, mainly due to salary savings from vacant Full-time positions and Hourly Salary savings primarily in Recreation Facilities and Programs, Special Events, Camps, and Crossing Guards. As more COVID-19 restrictions lift, Parks & Recreation gradually restored its programs and services but has not reached the pre-pandemic levels. Therefore, the pertinent Maintenance and Operation expenditures came in slightly below budget.
• Public Works came in 5% under budget due to a combination of salary savings in unfilled full-time and hourly positions. Maintenance and Operation expenditures came in under budget primarily due to ongoing Professional and Contracted Services for legal services, Traffic Signal maintenance, Storm Water Lift Stations maintenance, and projects that are expected to be completed in FY 2022-23.
Fund Balance – General Fund
The FY 2021-22 General Fund operating revenue actuals are $3.16 million higher than the amended budget due to stronger than anticipated Sales Tax, Utility User's Tax, and Licenses & Permits revenues. The General Fund operating expenditure actuals are below the amended budget by $5.4 million as a result of salary and benefit savings from staff vacancies during the year and the delay of some programs and projects accordingly.
The FY 2021-22 adopted General Fund budget included a 6.2% expenditure reduction stemming from the projected downfall in revenues. FY 2021-22 Year-End projections CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
provided in the FY 2021-22 Third Quarter Budget Review showed revenues tracking better than expected at $2,887,134 above expenditures. The General Fund Year-End Revenues were trending higher than anticipated, primarily due to improved Sales Tax revenues received to date since March 31, 2022.
Table 8 reflects the General Fund Balance per GASB 54 classifications as of June 30, 2022.
Table 8 – Fiscal Year End 2021-22 General Fund Balance
As previously mentioned, the City transferred $5 million from the General Fund Bond Reserve to the Successor Agency Fund to refund TABs 2001 with TABs 2021.
Therefore, the Unassigned Fund Balance of $6.46 million is mainly attributable to the release of $5 million bond refinancing reserve.
Non-spendable Fund Balance
The City has over $26 million in long-term receivables/advances in the non-spendable form at the end of FY 2021-22.
Reserved/Committed Fund Balance
The City Council adopted a risk-based General Fund Policy, which increased the General Fund's Reserve from 25% to 50%. To meet the City's Reserve Policy target of 50% of actual revenues, $24,517,211 was designated as the Reserved/Committed General Fund Balance as of June 30, 2022.
General Fund Balance, June 30, 2022:
Nonspendable (Advances Receivable) 26,139,104
Committed (Fund Balance Requirement - 50% of FY 2021-22 GF Revenues) 24,517,211 Restricted (Pension Contribution) 1,180,688
Assigned (Fund Balance Policy Designations)
OPEB Unfunded Liability 822,080
Leave Liability 195,780
Equipment Replacement 846,020
Self-insured Retention 500,000
Bond Refinancing/Reserve 1,000,000
Capital Improvements 2,000,000
Deferred Maintenance 1,000,000
Energy Efficiency 1,000,000
Economic Sustainability 1,000,000
Open Purchase Orders Carried Over 1,277,109
Other Continuing Appropriation 5,285,802
Total Assigned Fund Balance 14,926,791
Unassigned 6,458,368
Total General Fund Balance, June 30, 2022: $ 73,222,162 CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Restricted Fund Balance
At the end of FY 2021-22, the PARS Section 115 account's balance of $1,180,688 was restricted for the Pension contribution.
Designated (Assigned) Funds
Assigned funds describe the portion of the General Fund reserves that reflect the use of resources by the City Council intended to provide a means and source of funding for various near-term and long-term needs. For example, funds can be assigned to address long-term liabilities such as Other Post Employment Benefit (OPEB) unfunded liabilities and leave accrual liabilities. Funds can also be assigned to address equipment replacement needs as well as to set aside funding for unfunded/unprogrammed future capital and/or infrastructure projects.
Specifically, this reserve policy establishes assignments for the following short-term and long-term needs at the various levels specified:
• OPEB (Other Post Employment Benefit) Unfunded Liability • Leave Liability
• Equipment Replacement
• Self-insured Retention
• Bond Refinancing/Reserve
• Capital Improvement (Unfunded/Unprogrammed)
• Deferred Maintenance / Infrastructure Maintenance
• Energy Efficiency Projects
• Economic Sustainability
At the end of FY 2021-22, the Assigned Fund Balance was $14,926,791. Other than the designations listed above, it also included open purchase orders of $1,277,109 and other continuing appropriations of $5,285,802. These were planned purchases and appropriations not completed by June 30, 2022, and they were carried over into FY 2022-23. A list of the Open Purchase Orders is attached (Enclosure 3).
In reviewing the City’s other governmental funds, staff identified the need to transfer $87,913 of the General Fund Unassigned Balance to the Liability Claims Fund, the Workers’ Compensation Claims Fund, and the Financial System Software Fund to eliminate these funds’ negative balances.
• Insurance Funds: As the City did not allocate claims payments in FY 2020-21 and FY 2021-22 to the General Fund, a deficit of $474,005 exists in the Liability Claims Fund and Workers’ Compensation Claims Fund as of June 30, 2022.
Staff recommends a transfer of $126,329 to the Liability Claims Fund and another of $347,676 to the Workers' Compensation Fund to properly eliminate the negative balances for these two (2) funds. The transfers have no fiscal CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
impact on the net Unassigned General Fund Balance because the General Fund, Liability Claims Fund, and Workers' Compensation Claims Fund are grouped under one fund in the ACFR. For future fiscal years, staff will propose appropriations in the budgets to cover the estimated claims expenditures properly.
• Financial System Software Fund: Staff discovered that a previously unidentified $87,913 of expenditures related to annual software costs were not properly reported in a prior fiscal year. As such, those balances must now be recorded in the General Fund in FY 2022-23.
Enterprise Funds (Proprietary Funds) Year-End Results
Proprietary funds use the accrual basis of accounting, which is the same method used by private businesses. Proprietary funds can be classified as either "enterprise funds" or "internal service funds". The City has four (4) enterprise funds: the Water Enterprise Fund (550), the Golf Course Fund (570), the Sports Arena Fund (590), and the Pico Rivera Innovative Municipal Energy (PRIME) Fund (560). Table 9 reflects the Enterprise Fund balances as discussed below.
Table 9 – Enterprise Funds Year-End Results
Net Assets / Fund
Water
Operations P.R.I.M.E Golf Course Sports Arena
Revenue $ 11,180,400 $ 18,030,558 $ 847,876 $ 347,209
Expenses $ 8,465,543 $ 17,222,547 $ 1,254,001 $ 176,188 Changes in Net Assets $ 2,886,654 $ 808,011 $ (406,125) $ 165,691 Beginning Fund Balance $ 30,491,833 $ 3,784,711 $ (2,533,234) $ 202,319 Ending Fund Balance $ 33,378,487 $ 4,930,134 $ (2,939,359) $ 368,010 There are two (2) major funds in the enterprise fund group, the Water Operations Enterprise fund, and the PRIME fund, which are discussed on the next page.
Water Operations Enterprise Fund
The Water Operations Enterprise Fund accounts for the operation and maintenance of the City's water treatment, water transmission and distribution system. During the year, $11.152 million was received from charges for services, and the operating expenses were $8.466 million. The non-operating revenues and expenses included $441 thousand in investment income, $153 thousand in grants, $683 thousand gain on bond defeasance of the Water Authority Revenue Bonds, Series 2001, and $1.105 million bond interest charges. The Water Fund's net position increased by $2.887 million from the prior year to $33.378 million. Revenues exceeded expenses came mainly due to continuing appropriations and contingencies for programs and projects that were in progress and expected to be completed by the end of FY 2022-23.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Pico Rivera Innovative Municipal Energy (PRIME) Fund
The City established a Community Choice Aggregation (CCA) operation. PRIME is operated as a modified Joint Powers Authority (JPA), with the City of Lancaster as the lead agency of the JPA. CCAs operate such that power purchase and rate-setting authority is exercised locally. Southern California Edison (SCE) still provides transmission of all electricity as well as billing. However, PRIME utilizes third-party consultants to purchase power and answer billing inquiries from Pico Rivera residents.
The benefit is that the overhead is lower, and those cost savings have been passed on to residential and commercial customers. The changes in market conditions for the cost of power and related power products have made it difficult to project the ever-changing fluctuations in the energy market.
During the year, operating revenues increased by $3.231 million to $18.031 million, and operating expenses increased by $1.105 million to $17.223 million from the prior year.
In FY 2021-22, the price and usage of energy have seen unanticipated increases, driven by the heat waves during the summer months and low water levels affecting the hydroelectric power supply. In response to the energy market changes, the City implemented two (2) rate increases, which became effective at the beginning of FY 2021-22, to generate sufficient revenues to fund ongoing operations and maintain approved reserves according to PRIME’s adopted policies. While the unpredictability of weather and future energy prices are a continuing theme, FY 2021-22 net assets increased by about $808 thousand, mostly due to the City’s continued attention to proactively setting rates and proactively procuring clean energy contracts.
Golf Course Fund
In FY 2021-22, as pandemic restrictions lifted and residents had more access to other activities, there was less demand for golf play. Additionally, the U.S. Army Corp of Engineers (USACE) closed the Golf Course for October 2021 and then allowed it to reopen in November with a smaller makeshift Course. USACE also closed down the driving range, which was one of the main selling points. Therefore, compared to FY 2020-21, the Golf Course’s revenues decreased by $101 thousand in FY 2021-22.
Conversely, the Golf Course experienced an increase in expenses due to the restaurant and banquet facility becoming fully operational with more staffing. Consequently, there was a net operating loss of $406 thousand.
Sports Arena Fund
The Pico Rivera Sports Arena experienced rebounded activities as the pandemic restrictions lifted, resulting in revenues exceeding expenditures as more events were held in the outdoor venue. It should be noted that the City Council approved debt forgiveness of $102,053 for FY 2021-22 to ease the pandemic-related economic hardships and restrictions for the management company, LEBA Inc., from hosting events. As a result, the Sports Arena had a net income of $166 thousand. Events held at the Sports Arena have gradually increased and approaching pre-pandemic levels.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2022 AND FISCAL YEAR 2021-22 GENERAL FUND YEAR-END RESULTS
Conclusion:
This year-end report presents an overview of the City's General Fund operating revenues and expenditures for the FY 2021-22. Staff recommends that the City Council approve budget transfers of $87,913 out of the Unassigned General Fund Balance to eliminate the negative balances for the Liability Claims Fund, the Workers’ Compensation Claims Fund, and the Financial System Software Fund.
Staff will continue to monitor each revenue source and expenditure activity closely and will evaluate opportunities to enhance revenues and reduce expenditures.
Steve Carmona
SC:AG:JG:DS:ep
Enclosures: 1) Annual Comprehensive Financial Report (ACFR), Year Ending June 30, 2022
2) Pico Rivera Fiscal Year 2021-22 Accomplishments Report 3) General Fund Purchase Orders Rolled over to FY 2022-23
Fiscal Year Ended June 30, 2022
PICO RIVERA ACFR
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
2022
City of
California
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CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL I
CITY OFFICIALS XI
ORGANIZATIONAL CHART XII
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING XIII
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 6
FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 21
STATEMENT OF ACTIVITIES 22
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
DESCRIPTION OF MAJOR FUNDS 25
BALANCE SHEET 26
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION 29
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 30
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES 32
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 33
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 34
STATEMENT OF CASH FLOWS 35
FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND 37
STATEMENT OF FIDUCIARY NET POSITION 38
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 39
NOTES TO FINANCIAL STATEMENTS 41
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN 93
SCHEDULE OF CONTRIBUTIONS – MISCELLANEOUS PLAN 94
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – COUNCIL PLAN 95
SCHEDULE OF CONTRIBUTIONS – COUNCIL PLAN 96
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS 97
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN 98
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 99
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND 100
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND 101
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 102
SUPPLEMENTARY INFORMATION
OTHER GOVERNMENTAL FUNDS
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 105
COMBINING BALANCE SHEET 108
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 114
SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 120
STATE GAS TAX SPECIAL REVENUE FUND 121
LIGHTING ASSESSMENT DISTRICT SPECIAL REVENUE FUND 122
PROP A SPECIAL REVENUE FUND 123
PROP C SPECIAL REVENUE FUND 124
MEASURE R SPECIAL REVENUE FUND 125
MEASURE M SPECIAL REVENUE FUND 126
HOME GRANT SPECIAL REVENUE FUND 127
CALHOME GRANT SPECIAL REVENUE FUND 128
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND 129
COUNTY GRANTS SPECIAL REVENUE FUND 130
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
STATE GRANTS SPECIAL REVENUE FUND 131
ECONOMIC SUSTAINABILITY SPECIAL REVENUE FUND 132
IMAGE ENHANCEMENT SPECIAL REVENUE FUND 133
SEWER MAINTENANCE SPECIAL REVENUE FUND 134
REACH GRANTS SPECIAL REVENUE FUND 135
CABLE/PEG SUPPORT SPECIAL REVENUE FUND 136
TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND 137 MEASURE W SPECIAL REVENUE FUND 138
FEDERAL GRANTS SPECIAL REVENUE FUND 139
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND 140
PARAMOUNT/MINES LANDSCAPE MAINTENANCE ASSESSMENT
CAPITAL PROJECTS FUND 141
OTHER ENTERPRISE FUNDS
DESCRIPTION OF OTHER ENTERPRISE FUNDS 142
COMBINING STATEMENT OF NET POSITION 143
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 144
COMBINING STATEMENT OF CASH FLOWS 145
STATISTICAL SECTION (UNAUDITED)
DESCRIPTION OF STATISTICAL SECTION CONTENTS 149
FINANCIAL TRENDS
NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS 150
CHANGE IN NET POSITION – LAST TEN FISCAL YEARS 152
FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN FISCAL
YEARS 156
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS 158
REVENUE CAPACITY
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE – LAST TEN FISCAL YEARS 160
REVENUE BASE BY CATEGORY – LAST TEN FISCAL YEARS 162
PROPERTY TAX LEVIES AND TAX COLLECTIONS – LAST TEN FISCAL YEARS 163
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES – LAST TEN YEARS 164
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
PRINCIPAL PROPERTY TAXPAYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 166
TOP 25 SALES TAX PRODUCERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 167
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS 168 RATIOS OF GENERAL BONDED DEBT OUTSTANDING – LAST TEN FISCAL YEARS 170
DIRECT AND OVERLAPPING DEBT 171
LEGAL DEBT MARGIN INFORMATION – LAST TEN FISCAL YEARS 172
PLEDGED REVENUE BOND COVERAGE
1999 WATER AUTHORITY REVENUE BONDS – LAST TEN FISCAL YEARS 174 2001 WATER AUTHORITY REVENUE BONDS – LAST TEN FISCAL YEARS 174 2016 LEASE REVENUE BONDS 174
2018 CERTIFICATES OF PARTICIPATION 174
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS – LAST TEN FISCAL YEARS 175 PRINCIPAL EMPLOYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 176
OPERATING INFORMATION
FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION – LAST TEN FISCAL YEARS 177
OPERATING INDICATORS BY FUNCTION – LAST TEN FISCAL YEARS 178 CAPITAL ASSET STATISTICS BY FUNCTION – LAST TEN FISCAL YEARS 180
INTRODUCTORY SECTION
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Angelina Garcia
Director of Administrative Services/
Interim Assistant City Manager
City of Pico Rivera
ADMINISTRATIVE SERVICES
6615 Passons Boulevard ∙ Pico Rivera, California 90660
(562) 801-4245
Web: www.pico-rivera.org e-mail: [email protected] City Council
Dr. Monica Sánchez
Mayor
Erik Lutz
Mayor Pro Tem
Gustavo V. Camacho
Councilmember
Raul Elias
Councilmember
Andrew C. Lara
Councilmember
December 2, 2022
Honorable Mayor and City Council
City of Pico Rivera, California
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Honorable Mayor and City Councilmembers:
I am pleased to present the Annual Comprehensive Financial Report of the City of Pico Rivera for the fiscal year ended June 30, 2022, as mandated by both local ordinances and state statutes. These ordinances and statutes require that the City of Pico Rivera (City) issue annually a report on its financial position and activity, and that an independent firm of certified public accountants audit this report. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds and component units of the City. In addition, to the best of our knowledge, there are no untrue statements of material fact within the financial statements or omissions of material fact to cause the financial statements to be misleading.
All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.
The Annual Comprehensive Financial Report (ACFR) is prepared using the guidelines set forth by the Government Accounting Standards Board (GASB) and audited by CliftonLarsonAllen LLP (CLA), Certified Public Accountants & Consultants. For the year ended June 30, 2022, these financial statements received an unmodified opinion by CLA.
Their opinion is located at the beginning of the financial section of this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent auditors' report and provides a narrative overview and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
City of Pico Rivera Profile
The City of Pico Rivera is a thriving community that offers opportunities to all who live, work and visit in the City. Situated on the eastern edge of the Los Angeles basin and the southern edge of the area known as the San Gabriel Valley, Pico Rivera is approximately 13 miles southeast of downtown Los Angeles, with a population of 63,000. Formed through the merging of two historic communities, Pico and Rivera, the City was officially incorporated in January 1958 as the 61st general law city in Los Angeles County. Originally an agricultural area, the community evolved into a residential and industrial area following the end of World War II. Within the City’s nine square miles, more than 120 acres are devoted to recreational uses, including just under 100 acres of local parks.
The City of Pico Rivera is a general law city and operates under the Council-Manager form of government whereby the City Council provides policy direction to a City Manager appointed by the Council. As the City’s chief administrator, the City Manager is responsible for overseeing City employees who implement all City's programs, services, and projects.
Five (5) City Council members are elected, at large, for staggered four-year term. The council members select two (2) of the members to serve as Mayor and Mayor Pro Tem.
The City provides a full range of municipal services including public works, water, construction and maintenance of roads and highways, planning and zoning, recreation and cultural activities, and general administrative support such as overall agency management, procurement of goods and services, payroll, recruitment, risk management budget preparation and monitoring and accounting. The City contracts some municipal services with other public agencies, these include: the Los Angeles County Sheriff's Department for law enforcement service, the Los Angeles County Fire Department for fire protection and paramedic emergency services, and the Los Angeles County Library System to operate its two (2) community libraries.
The Annual Comprehensive Financial Report presents the financial status of the City and its component units. Although each component unit is a separate legal entity from the City, their respective financial operations are closely related. This combined presentation better represents the financial activities of the City of Pico Rivera as a whole.
The following component units are reported on a blended basis as part of the primary government because their boards are comprised of all City Council members or they are, in substance, part of the City’s operations:
Pico Rivera Water Authority
Pico Rivera Housing Assistance Agency
Pico Rivera Public Financing Authority
Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
FINANCIAL INFORMATION
Budgetary Controls
The City of Pico Rivera maintains strict budgetary controls, with the objective of ensuring compliance with legal provisions contained in the annual appropriated budgets approved by the City Council and the Water Authority. Activities of the General fund, Special Revenue, Enterprise, and Capital Projects funds are included in the annual appropriated budgets of the government units. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department/function level within each fund. Formal budgetary integration is employed as a management control device. Budgetary controls from the Adopted Budget Resolution No. 7199 were formally adopted by the City Council on June 28, 2022, that includes controls such as Department Directors authorized to move appropriations from one object to another, within each budgetary program/division and within the same fund, provided that the total approved appropriations for a budget program and within the same fund are not exceeded. The City also maintains an encumbrance accounting system as one method of maintaining budgetary control. These encumbrances lapse at year-end, and any unexpended balance is eligible to be carried over to the following year's budget appropriations with City Council approval of the Adopted Budget Resolution. As adopted in the resolution, all encumbrances remaining as of June 30, 2022, after thorough review by appropriate Administrative Services Department staff, will either be released or re-appropriated for use in Fiscal Year (FY) 2022- 23, as appropriate, in the respective funds, departments, programs, and accounts/objects.
Reserves and Fund Balance Policy
In an effort to further secure the City’s long-term financial health, the City Council first adopted comprehensive reserve policies as part of the FY 2016-17 budget adoption process. These policies solidified the City’s commitment to setting aside funds for economic uncertainty while expanding the policy to allow for assignments of fund balance for capital projects, equipment replacement, leave accruals, and other expenses.
The policies were further refined and adopted by City Council as part of the FY 2021-22 budget process. On July 28, 2020, the Pico Rivera City Council adopted revised “riskbased” General Fund and Proprietary Fund Reserve Policies, which increased the General Fund’s Emergencies/Economic Stabilization Reserve from 25 percent to 50 percent. The revised policy also set certain triggers to allow staff and City Council to reassess budgeted service levels during economic downturns to ensure ongoing economic stability. The full set of policies is included as an appendix to the FY 2022-23 Budget.
The City strives to be well-positioned to weather potential economic downturns, natural disasters or other calamities which might impinge upon operating revenue. The City’s reserves, as governed by the adopted reserve policies, have been classified in an effort to address any number of one-time uses. Future budgets will address these reserves, seeking Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
to further strengthen the City’s economic health by setting aside additional fund balance for anticipated uses (i.e., addressing long-term unfunded liabilities).
Internal Control
The Administrative Services Department of the City is responsible for establishing and maintaining an appropriate internal control structure. The internal control system is designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
Significant Financial Events
There were no changes to financial policies that resulted in a significant impact on the June 30, 2022 financial statements.
Long-term Financial Planning
The City utilizes two (2) long-term planning tools that serve as a guide to best allocate resources to meet the City’s needs over time. The first of which is the Five-Year Capital Improvement Program (CIP), which provides efficient and effective delivery of resources for the improvement and maintaining public infrastructure and facilities. The Five-Year Capital Improvement Plan is updated annually during the budget process.
The second long-term planning tool is the City’s Five-Year Financial Forecast (Forecast).
The Forecast establishes the foundation for guiding policy and making financial decisions, taking into account any forecasted challenges and opportunities before they arise. This Forecast allows for creating a baseline and alternative revenue and spending forecasts, including historical and projected annual periods for the next five (5) years. The Forecast also allows for testing the impact of assumptions and proposed initiatives on projected budget gaps and fund balances.
Significant City Accomplishments and Initiatives
The City of Pico Rivera is exceptionally well positioned to meet current and future challenges facing local government and our community. These accomplishments signify the City’s commitment to work together in a collaborative manner for the betterment of the greater community. These accomplishments and many more demonstrate our diligence and commitment to implementing our strategic priorities and ensuring the City’s economic Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
prosperity and bettering the lives of our citizens and businesses. The City’s performance goals, priorities, and strategies focus on the following areas:
Fiscal and Organization Sustainability
Economic Development and Land Use
Infrastructure
Health, Wellness and Safety
Community Engagement
Fiscal and Organizational Sustainability Accomplishments:
Adopted a Five-year Strategic Plan, including a revised vision, mission and goals, and departmental action plans
Received grant awards of $6.66 million from various granting agencies Implemented Code of Ethics & Conduct Policy
Refinanced two (2) Bonds to generate a substantial savings of approximately $10.95 million
Obtained an AA Bond Rating by Standard and Poor’s (S&P) after S&P evaluated the City’s creditworthiness for potential issuance of Pension Obligation Bonds Received GFOA Award for Excellence in Financial Report for the 2021 Annual Comprehensive Financial Report (ACFR)
Received GFOA Award for Distinguished Budget Presentation for the FY 2021-23 Biennial Budget
Implemented Cylance Advanced Guard– Ransomware protection Implementation of industry “Best Practices”:
o Amended Procurement Policies and Procedures and related Municipal Code Sections
o Adopted Capital Asset Capitalization Policy
o Adopted Pension Obligation Bonds/Pension Policy
o Renewed the Investment Policy
o Certified the Investment Policy with California
o Municipal Treasurers Association
Completed Phase 1 of the Citywide Telecommunications System Replacement:
o Migrated to Microsoft Office 365
o Implemented GoTo - Cloud-based phone system
o Implemented Office 365 - Cloud-based e-mail and collaboration suite o Implemented Pulseway – Cloud-based remote monitoring and management o Completed IT Glue – Centralized IT documentation platform o Implemented ESET – Cloud-based antivirus protection
Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
Economic Development and Land Use Accomplishments
Finalized tenant improvement renovations for Chase Bank and three (3) new retail tenant improvement plans at Crossroads Plaza
Approved a 54,000 square foot retail project at Beverly Crossing near the southeast corner of Beverly & Rosemead Boulevards and finalize the review of a drive through queuing lane
Approved a Mobile home Rent Stabilization Ordinance and established a property registration program
Approved a Digital Billboard Ordinance established for two (2) areas for revenue sharing development agreements
Approved a Vacant Lot Ordinance to improve the visual appearance of vacant properties
Approved a Smoke Shop Ordinance and established a Smoke Shop moratorium Approved a Flavored Tobacco Ordinance and established a Tobacco Retail Licensing Fee program
Approved a Car Wash moratorium to study the impacts to surrounding properties Approved an Industrial Uses Ordinance with additional clarification on zoning code and amended the Land Use Chart to require a Conditional Use permit for industrial zones
Cooperative Agreements with Industrial Developers for revenue generating uses (Baybar Road and Carlson Site projects)
Issued (25) grants for the Small Business Grant program to small businesses operating within Community Development Block Grant eligible areas impacted from COVID-19
Property acquisition for redevelopment of underutilized real estate near Whittier Blvd Infrastructure Accomplishments
• Allocated American Rescue Plan Act Funding of $14.8 million to critical Capital Improvement Projects
• Received award of $8.5 million in State-level direct funding request to renovate and rehabilitate the Smith Park Aquatic Center
• Received award of $8.5 million in State-level direct funding request to renovate and rehabilitate Rio Hondo Park
• Received award of $8.1 million for two (2) grants under Clean California Local Grant Program for Medians and Parkway Beautification Projects • Received award of $244,100 from the Rivers & Mountains Conservancy for the Whittier Blvd. Bike & Pedestrian Bridge Project
• Received award of $500,000 from LA Metro as a co-applicant for the Eastside Open Street Event along Whittier Blvd.
• Completed the Durfee Avenue Grade Separation project. Total project budget approximately $108 million
Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
• Completed the Rio Hondo Park playgrounds replacement projects • Completed three (3) Hot Spots Intersection
• Improvement projects for the reduction of traffic congestion • Completed the design of two (2) Highway Safety Improvement Projects to improve the safety and accessibility for motorists, pedestrians, and cyclists • Completed the design of the Americans with Disabilities Act (ADA) City Hall improvements project to ensure ADA compliance and standards • Completed construction of Telegraph Raised Median Improvements • Completed Water Main Replacement project at Olympic Blvd, Garrick Ave, and Pico Vista Rd
• Completed Well 4 Rehabilitation and Base Raising
• Completed Security Fencing Upgrades at Plant 2 & Well 5 • Installed ten (10) new Water Service Connections for Accessory Dwelling Units (ADU)
• Completed beautification of patio area and walkway including landscape and concrete repairs at the Senior Center
• Upgraded light poles and irrigation system at the Women’s Auxiliary Park Health and Wellness & Safety Accomplishments
Successfully provided a Grab and Go summer meal program for children ages 18 and under. 59,647 meals were provided with the help of volunteers who donated approximately 1,485 hours to the Summer Food Service Program Awarded a grant from No Kid Hungry in the amount of $24,500, which supported the existing Summer Food Service Program in helping provide additional staff support, equipment, personal protective equipment, and promotional materials Operated a COVID-19 testing center that served 4,300 people, and three (3) pop-up vaccine clinics helping to inoculate 400 people
Partnered with Pico Care Pharmacy to provide Pfizer and Moderna booster vaccines at the Pico Rivera Senior Center
Completed Flock Safety project and installed Automated License Plate Recognition (ALPR) systems that automatically capture vehicles’ license plate information Completed Verkada - Cloud-based Video Security for Surveillance at City parks and City Yard
Distributed a total of $323,921 to PRIME customers to provide COVID-19 debt relief as part of the California Arrearage Payment Program (CAPP). Provided over 70 free Smart Thermostats to residents to save money and reduce electricity demand during extreme heat events.
Enhanced essential Emergency Operations Center (EOC) Communications Center equipment, including replacement of defective satellite modem, verification/inspection of emergency phone system, inventoried all EOC laptops and Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
installed secured charging station-equipped storage cabinet to ensure the emergency equipment is not only secured, but always ready for emergency use Participated in the California Water and Wastewater Arrearage Payment Program (CWWAPP), and assisted with providing financial relief to 296 eligible customers of more than $148,000 in credits, to those impacted by COVID-19 and past due on their water utility bill payments
Credit more than 300 Water Customer Accounts for Past Due Invoices, totaling $150,000
Enrolled in the Low-Income Household Water Assistance Program (LIHWAP) that is federally funded and administered by the U.S. Department of Health and Human Services and the California Department of Community Services and Development.
LIHWAP is a customer-based program for low-income households that are qualified to use a one-time credit for past due and current balances, including any penalties up to $2,000 on water bills or wastewater bills.
Installed two (2) outdoor water bottle filling stations with drinking fountains and pet fountains at Smith Park, Pico Park, Rio Hondo Park, and Rivera Park Planted 62 trees at Pio Pico Park with the assistance of the Urban Forest and volunteers for Arbor Day
Community Engagement Accomplishments:
Completed The Roldan Futsal Pitch and Basketball Courts “Mini-Pitch” at Pico Park Completed the first Community Survey in 14-years to collect statistically reliable data on residents’ satisfaction, priorities, and concerns
Publicly launched Virtual City Hall, inclusive of a new city website and mobile app, a service request work management system, a code/parking enforcement case management system, a new portal for council meeting agendas & minutes, a GIS data and story map portal, a crime & safety data analytics and mapping tool, a portal for all RFP/Qs, multi-language settings, a new portal for all city and private development projects and plans
Hosted a variety of drive-thru/parking lot Special Events for older adults, including a Luau, Mariachi Concert, Moonlight Drive-In, and Jolly Holidays to keep participants entertained safely
Successfully and safely brought back in-person Summer & Winter Camps for youth ages Kindergarten through 8th grade; camps were fully booked for each session offered
Virtual “Rec at Home” program, including 14 virtual special events and contests, 29 Rec at Home videos, and 250 posted activities
Held Mayor’s Women’s Conference
The City of Pico Rivera will continue working on developing future financial plans that achieve an optimal level of service to the community through efficient, effective and innovative strategies. In order to improve productivity and efficiency, our goal is not only to Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
ensure financial sustainability but also to strive to strategically position the City to execute its 21st Century Vision of a sustainable, equitable, and vibrant community to live, work, and visit.
Economic Condition and Outlook
As can be seen in the MD&A, the City’s financial condition is sound. The General Fund did see operating revenues exceed operating expenditures by $11.1 million as of June 30, 2022.
Total fund balance grew by twenty-two thousand dollars to $73.2 million – an amount that represents 149% of operating revenue. Further details of these and related financial statistics can be found in the MD&A and the Notes sections on the following pages.
The relative health of the City’s finances can be attributed to four (4) successive fiscal years of focused attention on improving the alignment of ongoing expenditures with ongoing revenues. While the City has enjoyed positive financial health in the recent past, it is important that all efforts are made to guard against any future economic downturns which would impinge upon the City’s main sources of revenue: sales and property tax.
While the nation’s economy is facing the challenges of elevated inflation, restrained supply in the markets for goods, services, and labor, tightened Federal monetary policies and market volatility, no City is immune to future slowdowns in the economy.
For this reason, it is important that the City continues to develop responsible budgets that provide essential services to our residents and fulfills City Council priorities. The efforts to focus on City’s fiscal health will continue as subsequent budgets are developed, with an emphasis on maintaining and ensuring financial sustainability and security.
OTHER INFORMATION
GFOA Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pico Rivera for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This was the 24th consecutive year that the City had achieved this prestigious award. To be awarded a Certificate of Achievement, a government entity must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one (1) year. We believe that our ACFR for FY 2021-22 continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate, just one more way to celebrate the City’s glorious past and prosperous future.
Honorable Mayor and City Councilmembers
Subject: Annual Comprehensive Financial Report of the City of Pico Rivera for the Fiscal Year Ended June 30, 2022
Independent Audit
The City requires an annual audit by independent certified public accountants. The accounting firm of CLA conducted this year's audit. The auditors' report on the governmentwide financial statements and combining and individual fund statements and schedules is included in the financial section of this report.
Single Audit
As a recipient of federal, state, and county financial assistance, the City is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management. In years when over $750,000 is expended on Federal financial assistance programs, the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and the Uniform Guidance. Results of the Single Audit are reported separately and will be available by March 2023.
Acknowledgments
The Administrative Services Department takes primary responsibility for the preparation and accuracy of this report. The professionalism, commitment, and effort of all the members of the Department have made this presentation possible. The assistance from other departments in providing operational information for this report is also appreciated. Finally, we thank the City Council for their prudent financial management and leadership in guiding the City of Pico Rivera and helping ensure the City’s continued financial health.
Respectfully,
Angelina Garcia
Director of Administrative Services/Interim Assistant City Manager (xi)
CITY OF PICO RIVERA
CITY OFFICIALS
City Council
Dr. Monica Sánchez, Mayor
Erik Lutz, Mayor Pro Tem
Gustavo V. Camacho, Councilmember
Raul Elias, Councilmember
Andrew C. Lara, Councilmember
Executive Team
City Manager Steve Carmona
Interim Assistant City Manager Angelina Garcia
City Clerk Anna M. Jerome
Director of Administrative Services Angelina Garcia
Director of Community and Economic Development Michael Garcia Director of Human Resources Vacant
Director of Parks and Recreation Pamela Yugar
Interim Director of Public Works Terry Rodrigue
Residents of Pico Rivera
City Attorney
Arnold M. Alvarez-Glasman
City Manager
Steve Carmona
City Clerk
Anna M. Jerome
Director of
Parks and Recreation
Pamela Yugar
Director of Community and
Economic Development
Michael Garcia
Interim
Director of Public Works
Terry Rodrigue
Director of Administrative
Services
Angelina Garcia
City Council
Interim
Assistant City Manager
Angelina Garcia
Director of Human Resources
Vacant
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pico Rivera
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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FINANCIAL SECTION
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(1)
INDEPENDENT AUDITORS’ REPORT
Honorable City Council
City of Pico Rivera, California
Pico Rivera, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Pico Rivera (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Pico Rivera’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pico Rivera, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1D to the financial statements, effective July 1, 2021, the City adopted new accounting guidance, Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
Honorable City Council
City of Pico Rivera, California
(2)
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ 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 auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Honorable City Council
City of Pico Rivera, California
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios of the pension plans and schedules of pension plan contributions, schedule of changes in net OPEB liability and related ratio, the schedule of contributions – OPEB Plan, and the budgetary comparison schedules for the general and major special revenue funds, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual non-major fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Honorable City Council
City of Pico Rivera, California
(4)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2022, on our consideration of the City of Pico Rivera’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 the City of Pico Rivera’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Pico Rivera’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
December 2, 2022
(5)
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2022
(6)
The Management Discussion and Analysis (MD&A) provides a narrative introduction, overview and analysis that will assist in understanding the City's financial statements. We encourage readers to consider the information presented here in conjunction with the City's financial statements as of June 30, 2022, the transmittal letter and the notes to the basic financial statements.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts: the management's discussion and analysis (this portion), the basic financial statements, notes to the basic financial statements and required supplementary information. In addition to the required parts, we have included the optional combining statements for other governmental funds, other enterprise funds, fiduciary funds and a statistical section. This discussion and analysis are intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements and (3) notes to basic financial statements. This report also contains supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to a business in the private sector.
The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference between the two reported as net position.
Net position is then shown as restricted or unrestricted. Over time, increases or decreases in the net position may serve as an indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the most recent 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, revenues and expenses are reported in this statement for some items that will only affect cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). (7)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2022
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government, public safety, public works, community development, recreation, nondepartmental, and interest on long-term debt.
The government-wide financial statements include not only the City itself (known as the primary government) but also three legally separate entities: the Pico Rivera Public Financing Authority, the Pico Rivera Water Authority, and the Pico Rivera Housing Assistance Agency. The City is financially accountable for these entities, and financial information for these blended component units is reported within the financial information presented for the primary government itself.
The government-wide financial statements can be found beginning on page 21 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated 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. All of the City's funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the governmentwide financial statements, governmental fund financial statements focus on near-term inflows 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 the City's near-term financial requirements.
Since 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 City's near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
This document reports thirty (30) governmental funds. Information is presented separately in the governmental funds balance sheet (pages 26 - 27) and in the governmental funds statement of revenues, expenditures and changes in fund balances (pages 30 - 31) for the General Fund, the Housing Agency Section 8 Fund, American Rescue Plan Fund, and the 2018 Series A COP Fund since these funds are considered major funds. Data from the additional twenty-six (26) governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements in the other governmental funds supplementary information section of this report which begins on page108.
The City adopts an annual appropriated budget for its General Fund as well as its other governmental funds.
Budgetary comparison schedules are presented on pages– 99 – 101 and 120 - 141. The governmental fund financial statements can be found on pages 26 through 32 of this report. (8)
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Proprietary Funds - Proprietary funds use the accrual basis of accounting, which is the same method used by private businesses. Proprietary funds can be classified as either “enterprise funds” or “internal service funds.” The City proprietary funds consist of enterprise funds and internal service fund. The City has four enterprise funds: the Water Enterprise Fund, the Golf Course Fund the Sports Arena Fund and the Pico Rivera Innovative Municipal Energy (PRIME) fund. The PRIME fund was established during Fiscal Year 2017- 18 and is utilized to capture the activity of the City's Community Choice Aggregate enterprise function. The basic proprietary fund financial statements can be found beginning on pages 33 through 36 and pages 143 through 146 of this report.
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City has one Fiduciary fund: the Successor Agency to the City of Pico Rivera Redevelopment Agency Private-Purpose Trust Fund. This fund is not reflected in the government-wide financial statements because the resource of this fund is not available to support the City's own programs.
The accounting used for fiduciary funds is the full accrual accounting method. The fiduciary fund financial statements can be found on pages 38 and 39 of this report.
Notes to Financial Statements
The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found beginning on page 41 of this report.
Required Supplementary Information
The required supplementary information (RSI) schedules further explain and support the information in the financial statements. This section includes the schedules of the City's funding for its employee pension program, other post-employment benefit (OPEB) programs and the budgetary comparison for the general and major special revenue funds. The required supplementary information can be found on pages 93 through 101 of this report.
Other Supplementary Information
Other supplementary information includes combining and individual budgetary comparison schedules for non-major Governmental Funds and combining statements for other enterprise funds. Other supplementary information can be found on pages 108 through 146 of this report.
FINANCIAL HIGHLIGHTS
Citywide
Comparing the fiscal year ending June 30, 2022 with June 30, 2021, the City's total net position increased by $25.955 million, from $313.578 million to $339.533 million. Of this amount, there was a decrease in total assets of $1.501 million to $468.901 million, a decrease in total liabilities of $41.430 million to $121.026 million, a decrease of deferred outflows of resources of $94 thousand and an increase of deferred inflows of resource of $14.067 million. Citywide revenues totaled $115.003 million, an increase of $20.432 million over the prior year.
Expenses were $89.048 million, an increase of $4.369 million over the prior year.
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Citywide capital assets, after depreciation, increased by $6.309 million to $313.451 million. This increase includes $5.937 million in depreciation offset by the street, park, and water system construction projects in progress and completion of the street, park, and water system projects partially offset by the auction of obsolete vehicles and equipment.
Citywide – Governmental Activities
Governmental Activities revenues increased $17.663 million to 83.312 million (prior to any transfers).
This net increase resulted from a combination of a few main factors: the City recognized ARPA revenue of $10.772 million to offset the public safety expenses, $2.401 million more capital grants, $3.226 more sales tax, and an increase in property tax about $830 thousand.
Governmental Activities expenses increased $4.070 million to $61.149 million. It is mainly attributed to $6.162 million increase in Community Development activities, which was due to the $6.065 million the City transferred to the Successor Agency, including $5.000 million for refunding Tax Allocation Bonds (TABs) 2001 with TARBs 2021 and the annual sales tax pledge of $1.065 million to the Successor Agency for bond payment. The Parks and Recreation and Health and Welfare activities experienced increases of $588 thousand and $166 thousand. On the flip side, Public Works, General Government, and Public Safety activities experienced reduced expenses of $2.277 million, 363 thousand, and $170 thousand, respectively.
Fund Level – General Fund
General Fund revenues were $49.034 million, an increase of $3.798 million over the prior year.
The increase was mainly due to increased sales taxes, property taxes, and utility user taxes and plan check fees.
Tax revenues increased by $4.572 million as the City received more sales taxes as consumer confidence stabilized and more consumers shopped online in FY 2022; also, the inflation was attributed to the increase of the sales taxes. The City received more property taxes due to increased property assessments compared to the prior fiscal year. Intergovernmental revenue decreased by $479 thousand, mainly attributed to the one-time $920 thousand Coronavirus Aid, Relief, and Economic Security Act (CARES Act) funding and credits received in FY 2021.
Licenses and permits revenue increased by $403 thousand, as more building permits and plan checks were pulled when more residents performed home improvement in FY 2022. Fines, forfeitures, and penalties revenue went up by $91 thousand primarily due to increased administrative citations.
Investment and rental revenues were down by $1.359 million. The decrease was mainly from investments where there was a temporary decline in market value at the end of the fiscal year. In the Local Agency Investment Fund (LAIF), for instance, each participating dollar was valued at $0.98712.
Charges for services and miscellaneous revenues increased by $253 thousand and $318 thousand,
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respectively, due to increasing in-person programs, services, and special events as the pandemic restrictions were gradually lifted.
General Fund expenditures were $37.914 million, a $313 thousand decreases from the prior year.
It was primarily due to the transfer of $6.065 million to the Successor Agency and $10.228 million offset of the ARPA funding related to "General Revenue Loss" with the law enforcement operating expenses.
Additionally, as more COVID-19 restrictions are lifted, the City had more events and activities and, in turn, $1.003 million more Parks and Recreation expenditures. The City also has $1.938 million more General Government expenditures in insurance, software, payroll, retirement expenses, etc. The Public Works and Community and Economic Development departments have vacancies and must utilize more contracted services to perform tasks such as plan checks, project management, etc.
The General Fund's fund balance increased by $22 thousand to $73.222 million as of June 30, 2022.
Fund Level – Proprietary Funds
The City had four Enterprise Funds in Fiscal Year 2021-22.
Business-type Activities – Enterprise Funds – Overall, the total net position of these funds increased $3.792 million to $35.737 million at June 30, 2022.
Total assets decreased by $16.902 million to $80.914 million primarily due to the elimination of $19.302 million receivable from Successor Agency. In December 2021, the Successor Agency refunded TABs 2001 and paid back the amounts owed to the Water Fund. Netting out this decrease, there was an increase of $3.440 million in net capital assets compared to the prior fiscal year. Total liabilities decreased by $22.777 million to $43.785 million, mainly due to the City retiring the Water Authority Revenue Bonds 2001 of $19.115 million and paying down $1.065 million in other bonds payable. There were also a $2.399 million decrease in current liabilities and a $1.389 million decrease in net pension liability compared to the prior fiscal year. Total operating revenues increased $3.124 million to $30.406 million, and operating expenses increased $1.040 million to $26.794 million. Most changes were related to the operation of Pico Rivera Innovative Municipal Energy (PRIME). The Charges for Services revenue increased by $3.232 million due to more demand for PRIME. At the same time, the cost of PRIME's power supply has increased by $2.587 million. The PRIME salaries and benefits decreased by $1.549 million, attributed to Pension and OPEB adjustments of $774 thousand and some vacant positions.
Fund Level – Fiduciary Funds
The Fiduciary Fund is discussed later in this document.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
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The City of Pico Rivera is presenting its financial statements under the reporting models required by the Governmental Accounting Standard Board (GASB) pronouncements. The most recent pronouncements implemented by the City, GASB 68 and GASB 75, require the reporting of pension obligations and Other Post Employment Benefit (OPEB) obligations, respectively, on these financial statements. Shown on the next page is the schedule of Statement of Net Position for the years ended June 30, 2022 and 2021, covering Governmental Activities and Business-Type Activities (i.e., enterprise funds).
Net position serves as an indicator of a government's financial position over time. As of June 30, 2022, the City's combined net position (governmental and business-type activities) totaled $339.533 million, an increase of $25.955 million from the prior year.
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City of Pico Rivera
Statement of Net Position
Fiscal Year ended June 30, 2022 and June 30, 2021
Net position consists of three categories: net investment in capital assets, restricted assets, and unrestricted assets. The largest amount of the net position (governmental and business-type activities), approximately $277.541 million is the City's investment in capital assets which includes land, buildings, infrastructure, furniture and equipment net of accumulated depreciation and related debt for acquiring these capital assets.
Since the capital assets are used to provide services to citizens, these assets are not available to fund the City's day-to-day activities.
2022 2021 2022 2021 2022 2021
Assets:
Current and Other Assets 107,909,207 97,361,551 30,650,156 $31,690,036 $138,559,363 $129,051,587 Internal Balances 22,367,512 22,198,908 (22,367,512) (22,198,908) - - Land held for resale 1,701,360 - - - 1,701,360 -
Receivables from Successor Agency 14,999,752 14,716,744 189,699 19,491,804 15,189,451 34,208,548 Capital Assets 263,552,334 260,683,238 49,898,279 46,458,063 313,450,613 307,141,301 Total Assets $410,530,165 $394,960,441 $58,370,622 $75,440,995 $468,900,787 $470,401,436 Deferred Outflow of resources $6,896,596 $6,867,812 $965,262 $900,289 $7,861,858 $7,768,101 Liabilities:
Current liabilities $18,743,425 $19,960,381 $5,720,275 $8,597,709 $24,463,700 $28,558,090 Long-term liabilities 42,951,499 44,031,850 8,712,416 26,827,448 51,663,915 70,859,298 Net OPEB Obligation 14,846,687 20,096,119 1,594,827 2,158,719 16,441,514 22,254,838 Net Pension Liabilities 23,242,557 34,179,750 5,214,285 6,603,167 28,456,842 40,782,917 Total Liabilities $99,784,168 $118,268,100 $21,241,803 $44,187,043 $121,025,971 $162,455,143 Deferred Inflows of resources $13,846,693 $1,927,735 $2,356,809 $208,612 $16,203,502 $2,136,347 Net Position:
Net investment in capital assets $237,260,527 $234,764,478 $40,280,888 $36,403,397 $277,541,415 $271,167,875 Restricted 27,978,094 23,672,803 - - 27,978,094 23,672,803 Unrestriced 38,557,279 23,195,137 (4,543,616) (4,457,768) 34,013,663 18,737,369 Total Net Position $303,795,900 $281,632,418 $35,737,272 $31,945,629 $339,533,172 $313,578,047 Governmental Activities Business-Type Activities Total
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On June 30, 2022, the City's restricted net position was $27.978 million or 8.24% of the total net position.
These are assets subject to external restrictions, constitutional provisions, or enabling legislation that limits how these assets may be used. The restricted net position includes the Housing Section 8 Grant Fund, Home Grant Fund, and other special revenue funds. The remaining balance of the net position of $34.014 million is unrestricted and may be used to meet the government's ongoing obligations to citizens and creditors. The unrestricted amount increased by $15.277 million when compared to the June 30, 2021 amount.
Governmental Activities - Governmental activities' assets increased $15.570 million to $410.530 million, liabilities decreased $18.484 million to $99.784 million, and total net position increased $22.163 million to $303.796 million when compared to the prior year.
Cash and investments increased by $12.309 million to $79.459 million primarily due to the receipt of the 2nd tranche of American Rescue Plan Act (ARPA) funding of $7.386 million. The City received $14.772 million of ARPA funding, half in May 2021 and the other half in June 2022. In FY 2021-22, the City offset $10.228 million of the ARPA funding related to "General Revenue Loss" with the law enforcement operating expenses, which are eligible expenses per guidelines set forth by the U.S. Treasury Department. There is $4.544 million remaining as unearned revenue in the American Rescue Plan Fund as of June 30, 2022. As the City paid down outstanding bond payable principal, long-term liabilities decreased $1.080 million to $42.951 million.
There were $27.279 million in pension liabilities along with deferred outflow of resources and deferred inflows of resources that are related to the implementation of GASB 68, which was first effective for fiscal years ending June 30, 2015 and was first reported in the financial statements for Fiscal Years 2014-15.
There were $19.309 million in Other Post Employment Benefit (OPEB) liabilities along with deferred outflow ore resources and deferred inflows of resources related to the implementation of GASB 75, effective for FY 2017-18. Similar to GASB 68, OPEB liabilities, deferred outflows/inflows of resources and expenses related to post-employment benefits (i.e., retiree health care) must be recognized in the financial statements.
Business-Type Activities - Business-type activities assets decreased by $17.070 million to $58.371 million.
Liabilities decreased by $17.070 million to $21.242 million, primarily due to the Water Operation paying down the Water Authority Revenue Bonds, Series 2001.
The share of Net pension liability, due to required GASB 68 reporting first effective for fiscal years ending June 30, 2015, was $5.214 million.
There were $1.595 million in Other Post Employment Benefit (OPEB) liabilities included as part of the implementation of GASB 75, effective for FY 2017-18.
The Statement of Activities for the Governmental Activities and Business-type Activities is shown on the following page.
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City of Pico Rivera
Statement of Activities
Fiscal Year ended June 30, 2022 and June 30, 2021
**Fiscal year 2021 expense amounts were reclassified to be consistent with presentation of fiscal year 2022 expenses.
Governmental Activities – Total revenues increased by $17.663 million, and expenses increased by $4.070 million compared to the previous year.
Overall, program revenues increased by $13.469 million due to an increase of $923 thousand in Charges for Services as the economy gradually rebounded in FY 2022, recognizing $10.773 million in ARPA revenues, and $2.401 million more capital grants and contributions. Overall, general revenues increased by $4.194 million. The sales and use taxes increased by $3.226 million, mainly attributed to stabilized consumer confidence, more consumers shopping online, and higher inflation in FY 2021-22. The property taxes increased by $830 thousand due to a rise in 2022 2021 2022 2021 2022 2021
Revenues
Program Revenues:
Charges for services 4,837,941 3,914,793 30,406,043 27,281,651 35,243,984 31,196,444 Operating grants an contributions 26,561,448 16,416,848 476,602 - 27,038,050 16,416,848 Capital grans and contributions 5,387,593 2,986,830 - - 5,387,593 2,986,830 General Revenues: - -
Property taxes 13,831,113 13,000,934 13,831,113 13,000,934 Sales and use taxes 24,551,320 21,325,436 - - 24,551,320 21,325,436 Franchise taxes 1,956,998 1,876,407 - - 1,956,998 1,876,407 Utility users taxes 3,567,128 3,157,258 - - 3,567,128 3,157,258 Other taxes 1,926,617 2,055,932 - - 1,926,617 2,055,932 Unrestricted Investment earnings (197,845) 542,108 449,236 1,640,357 251,391 2,182,465 Gain on bond defeasance - - 683,028 - 683,028 -
Miscellaneous 889,854 372,853 - - 889,854 372,853
Total Revenues 83,312,167 65,649,399 32,014,909 28,922,008 115,327,076 94,571,407 Expenses
General Government 8,089,449 8,452,818 8,089,449 8,452,818 Public safety 12,144,703 12,314,336 - - 12,144,703 12,314,336 Public works 14,700,643 16,977,788 - - 14,700,643 16,977,788 Parks and recreation 7,457,649 6,869,152 - - 7,457,649 6,869,152 Health and welfare 6,414,485 6,248,362 - - 6,414,485 6,248,362 Community development 10,891,361 4,729,823 - - 10,891,361 4,729,823 Interest and fiscal charges 1,450,395 1,486,071 - - 1,450,395 1,486,071 Enterprise operations - - 28,223,266 27,600,212 28,223,266 27,600,212 Total Expenses 61,148,685 57,078,350 28,223,266 27,600,212 89,371,951 84,678,562 Increase/Decrease in net position
before transfers 22,163,482 8,571,049 3,791,643 1,321,796 25,955,125 9,892,845 transfers - - - -
Change in net position: 22,163,482 8,571,049 3,791,643 1,321,796 25,955,125 9,892,845 - -
Net position-beginning of year 281,632,418 273,061,369 31,945,629 30,623,833 313,578,047 303,685,202 - -
Net position-end of year 303,795,900 281,632,418 35,737,272 31,945,629 339,533,172 313,578,047 Governmental Activities Business-Type Activities Total
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property assessments.
Expenses increased by $4.070 million. In FY 2022, the Community Development expenses increased by $6.162 million, primarily due to the City transferring $6.065 million to the Successor Agency to refund the TABs 2001 and to make the annual bond payment. The expenses of Parks and Recreation increased by $588 thousand due to increasing in-person programs, services, and Special Events as the pandemic restrictions gradually lifted. Conversely, the General Government expenses decreased by $363 thousand due to pension expense transactions, and the Public Works expenses decreased by $2.277 million due to capital outlay capitalization and pension expense transactions.
Business-Type Activities - The City has two major Enterprise Funds, Water Fund and the Pico Rivera Innovative Municipal Energy (PRIME), which operated for the fourth full year in FY 2021-22. Revenue increased by $2.769 million, primarily due to Charges for Services revenue up by $3.108 million, investment income down by $1.191 million, and $683 thousand gain on bond defeasance when the City retired Water Authority Revenue Bond 2001.
Expenses decreased by $299 thousand, primarily due to the rising cost of the purchased power of $2.587 million, decreasing in salaries and benefits of $1.549 million resulting from Pension and OPEB adjustments, and decreasing of investment expense of $741 thousand as the City retired Water Authority Revenue Bond 2001 in the middle of the fiscal year.
FUND FINANCIAL STATEMENTS
Governmental Funds - The City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The focus of the City's governmental funds is to provide information on nearterm inflows and outflows during the fiscal year and balances of spendable resources at the end of the fiscal year. Such information may be useful in assessing the City's financing requirements to meet the current needs. In particular, unassigned fund balance may serve as a useful measure of the City's net resources available for appropriation.
As of June 30, 2022, the City's governmental funds reported a combined ending fund balance of $121.739 million, as shown on page 26. The fund balance categories of governmental funds displayed $26.139 million as nonspendable, $38.610 million as restricted, $24.517 million as committed, $26.517 million as assigned, and $5.955 million as unassigned. (Please refer to Note Number 12 of the Notes to Financial Statements for a detailed breakdown.)
The City chooses to report four major governmental funds: the General Fund, the Special Revenue Housing Agency Section 8 Fund, Special Revenue American Rescue Plan Fund, and the Capital Projects 2018 Series A COP, which is described below. Major Funds are defined generally as having significant activities or balances in the current year. Other governmental individual funds may be found in the Supplemental section begins on page 108.
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General Fund - The General Fund is the chief operating fund of the City and is used for all the general revenues of the City not specifically levied or collected for other City funds and its related expenditures. At the end of the current fiscal year, the General Fund had a fund balance of $73.222 million, an increase of $22 thousand from the previous year. The nonspendable amount is $26.139 million, the restricted amount is $1.181 million, the committed amount is $24.517 million, the assigned amount is $14.927million, and the unassigned amount is $6.458million.
Housing Agency Section 8 Fund – This Fund accounts for monies received from the U.S. Department of Housing and Urban Development for rental assistance for low-income families to meet their housing needs.
During the year, $6.299 million in revenue was received, and $6.075 million was spent. The ending fund balance was $475 thousand.
This fund's largest revenue source is the actual Section 8 Federal Funding used to provide housing assistance to eligible residents. Actual revenue is a function of the number of housing vouchers issued. For FY 2022- 23, $665 thousand more was received compared to the prior year, and overall expenditures were $299 thousand higher when compared to the prior year.
American Rescue Plan Special Revenue Fund – This fund accounts for funds received from the U.S. (federal) government to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses. The City received the 1st and the 2nd tranches of the allocation, of $7.386 million each, in May 2021 and June 2022 respectively. The City offset $10.228 million in "General Revenue Loss" funds with the law enforcement operating expenses in FY 2021-22.
There is $4.544 million remaining as unearned revenue in the American Rescue Plan Fund as of 6/30/2022.
The City will obligate all funds by December 31, 2024, and expend all funds by December 31, 2026, per the guidelines set forth by the U.S. Treasury Department. 2018 Series A COP Capital Projects Fund – This fund accounts for activity related to the City's capital projects financed with the 2018 Series A Certificates of Participation that were issued in FY 2018-19 in the aggregate outstanding principal amount of $13.695 million at June 30, 2022.
During the year, there was an interest revenue of $8 thousand, a bond principal payment of $275 thousand and interest charges of $557 thousand in expenditures. The ending fund balance was $12.377 million.
Business-type Activities – Enterprise Funds
The enterprise fund group has two major funds: the Water Operations Enterprise fund and the Pico Rivera Municipal Energy (PRIME) fund, which are discussed below.
Water Operations Enterprise Fund - The Water Operations Enterprise Fund accounts for the operation and maintenance of the City's water treatment, water transmission and distribution system. During the year, $11.180 million was received as revenue, mainly from charges for services, with expenses coming in at $8.466 million. During the year, there were a $441 thousand investment income and $1.105 million bond interest charges. The Water Fund's net position increased by $2.887 million from the prior year to $33,378 million.
Pico Rivera Innovative Municipal Energy (PRIME) Fund – PRIME was created in FY 2017-18. The City established a Community Choice Aggregation (CCA) operation. PRIME is operated as a modified Joint Powers Authority (JPA), with the City of Lancaster as the lead agency of the JPA. CCAs operate such that power purchase and rate-setting authority is exercised locally. Southern California Edison (SCE) still provides transmission of all electricity as well as billing. However, PRIME utilizes third-party consultants
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to purchase power and answer billing inquiries from Pico Rivera residents. The benefit is that the overhead is lower, and those cost savings have been passed on to residential and commercial customers.
During the year, revenues increased $3.232 million to $18.031 million, and operating expenses increased $782 thousand to $16.899 million from the prior year.
Please refer to pages 26 and 27 for the Balance Sheet of Governmental Funds, page 29 for the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position, pages 30 and 31 for the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds, and page 32 for the Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities. For the Water Operations Enterprise Fund, see pages 33 through 36.
Capital Assets Administration
The City's investments in capital assets at June 30, 2022 were $263.552 million (net of accumulated depreciation of $158.125 million) for its governmental activities and $49.898 million (net of accumulated depreciation of $24.338 million) for its business-type activities. The investment in capital assets includes land, buildings, structures and improvements, infrastructure (roads, sidewalks, streetlights, etc.), furniture, vehicles, equipment and construction in progress.
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City of Pico Rivera
Capital Assets (Net of Accumulated Depreciation)
Fiscal Year ended June 30, 2022 and June 30, 2021
Additional information on the City's capital assets can be found in Note 5 to the basic financial statements on pages 60 to 61 of this report.
Debt Administration
As of June 30, 2022, the City had total indebtedness of $100.084 million, a decrease of $38.875 million.
Debt includes bonds, certificates of participation, pension obligation, post-employment benefits, capital lease obligation and compensated absences. State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its total assessed valuation.
Governmental activities - Overall, governmental activities total indebtedness at year end is $83.409 million. Governmental activities total indebtedness decreased by $16.924 million during the year. The decrease is primarily due to reductions in the net pension and OPEB liabilities. Please refer to note 6 beginning on page 62 for further detail.
Business-type activities - Overall, business-type debt at year end is $16.675 million. Business-type activities total indebtedness decreased during the year by $21.951 million. The decrease is primarily due to the defeasance of Water Authority Revenue Bond 2001. Please refer to note 6 beginning on page 62 for further detail.
2022 2021 2022 2021 2022 2021
Land* $118,908,710 $118,908,710 $18,174,060 $18,174,060 $137,082,770 $137,082,770 Structures & Improvements 25,590,725 25,590,725 5,228,051 5,228,051 30,818,776 30,818,776 Furniture, Equipment & Vehicles 7,291,797 7,021,999 1,473,468 1,081,077 8,765,265 8,103,076 Infrastrucuture 247,089,714 241,887,977 17,692,287 16,055,216 264,782,001 257,943,193 Leased Assets 111,108 - - - 111,108 -
Construction in progress 22,684,844 19,461,809 4,302,493 2,061,999 26,987,337 21,523,808 Rights of Way - - 5,579,916 5,579,916 5,579,916 5,579,916 Utility Plant - - 21,785,673 21,785,673 21,785,673 21,785,673 Total Capital Assets $421,676,898 $412,871,220 $74,235,948 $69,965,992 $495,912,846 $482,837,212 Less depreciation (158,124,564) (152,187,982) (24,337,669) (23,507,929) (182,462,233) (175,695,911) Net Capital Assets $263,552,334 $260,683,238 $49,898,279 $46,458,063 $313,450,613 $307,141,301 *Includes value of "Water Rights" for Business-Type Activities Governmental Activities Business-Type Activities Total
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City of Pico Rivera
Outstanding Long-Term Liabilities
Fiscal Year ended June 30, 2022 and June 30, 2021
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The General Fund realized a $892 thousand operating surplus (operating revenues less operating expenditures) as of June 30, 2022. (When Transfer In/Transfer Out are included, the net change in fund balance was $22 thousand.)
The Fiscal Year 2022-23 General Fund budget is balanced. The City's sales tax and property tax revenues are coming in stronger than in FY 2021-22 and are projected to recover with a 2%-3% increase in FY 2022-
23. However, as the City continues to experience challenges due to the COVID-19 pandemic and resulting economic disruption, the revenues to be received may be lower than projected amounts.
The budget document will be the basis of an ongoing effort to monitor the City's finances. Staff provides monthly and quarterly updates to the City Council to ensure the City stays on its financial plan, our ongoing budgets remain balanced and on the path to a sustainable future.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances for readers of the financial statements. Questions concerning any of the information in this report or request for additional financial information should be addressed to the Director of Administrative Services, City of Pico Rivera, California.
2022 2021 2022 2021 2022 2021
Bonded Indebtedness:
Revenue bonds 24,960,000 25,915,000 9,305,000 29,485,000 34,265,000 55,400,000 Certificates of Participation 13,695,000 13,970,000 - - 13,695,000 13,970,000 Bond premium 2,887,775 3,045,248 272,364 312,225 3,160,139 3,357,473 Bond discount - - - (251,506) - (251,506)
Other long-term debt:
Net pension liabilities 23,242,557 34,179,750 5,214,285 6,603,167 28,456,842 40,782,917 Other post-employment benefits 14,846,687 20,096,119 1,594,827 2,158,719 16,441,514 22,254,838 Claims and judgements 2,308,000 1,696,000 - - 2,308,000 1,696,000 Compensated absences 1,468,505 1,430,502 288,947 318,588 1,757,452 1,749,090 Total Indebtedness 83,408,524 100,332,619 16,675,423 38,626,193 100,083,947 138,958,812 Governmental Activities Business-Type Activities Total
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CITY OF PICO RIVERA, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 79,458,616 $ 23,655,895 $ 103,114,511 $ Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 15,266,673 1,073,136 16,339,809 Escrow Deposits 515 - 515
Receivables, Net:
Accounts 2,897,477 5,879,517 8,776,994
Taxes 6,220,656 - 6,220,656
Interest 74,552 17,603 92,155
Internal Balances 22,367,512 (22,367,512) -
Inventories 3,825 24,005 27,830
Prepaid Items 102,954 - 102,954
Long-Term Receivables 3,865,948 - 3,865,948
Lease Receivable 17,991 17,991
Land Held for Resale 1,701,360 - 1,701,360
Receivables from Successor Agency 14,999,752 189,699 15,189,451 Capital Assets, Not Depreciated 141,593,554 28,056,469 169,650,023 Capital Assets, Depreciated, Net 121,873,157 21,841,810 143,714,967 Leased Assets, Depreciated, Net 85,623 - 85,623
Total Assets 410,530,165 58,370,622 468,900,787
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 1,566,426 - 1,566,426
Amounts Related to OPEB 1,950,212 209,492 2,159,704
Amounts Related to Pension Plans 3,379,958 755,770 4,135,728 Total Deferred Outflows of Resources 6,896,596 965,262 7,861,858
LIABILITIES
Accounts Payable 5,280,411 3,369,577 8,649,988
Accrued Interest Payable 360,897 85,296 446,193
Accrued Liabilities 1,221,044 462,188 1,683,232
Deposits 703,274 598,434 1,301,708
Retention Payable 314,919 40,027 354,946
Unearned Revenue 4,544,655 10,858 4,555,513
Due to Other Agencies 3,863,920 - 3,863,920
Long-Term Liabilities:
Due Within One Year 2,454,305 1,153,895 3,608,200
Due in More Than One Year:
Long-Term Liabilities 42,951,499 8,712,416 51,663,915
Net OPEB Liability 14,846,687 1,594,827 16,441,514
Net Pension Liability 23,242,557 5,214,285 28,456,842
Total Liabilities 99,784,168 21,241,803 121,025,971
DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 6,412,143 688,790 7,100,933
Amounts Related to Pension Plans 7,416,559 1,668,019 9,084,578 Amounts Related to Leases 17,991 - 17,991
Total Deferred Inflows of Resources 13,846,693 2,356,809 16,203,502
NET POSITION
Net Investment in Capital Assets 237,260,527 40,280,888 277,541,415 Restricted for Community Development 8,014,358 - 8,014,358 Restricted for Transportation 14,672,241 - 14,672,241
Restricted for Low- and Moderate-Income Housing 3,143,655 - 3,143,655 Restricted for Pension Contribution 1,180,688 - 1,180,688 Restricted for Other Purposes 967,152 - 967,152
Unrestricted 38,557,279 (4,543,616) 34,013,663
Total Net Position $ 303,795,900 $ 35,737,272 $ 339,533,172
CITY OF PICO RIVERA, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
FUNCTIONS/PROGRAMS
Governmental Activities:
General Government 8,089,449 $ 545,101 $ 1,580,009 $ - $ Public Safety 12,144,703 1,163,935 10,389,085 -
Public Works 14,700,643 882,256 6,614,161 5,387,593
Parks and Recreation 7,457,649 279,041 917,184 -
Health and Welfare 6,414,485 285,648 1,093,987 -
Community Development 10,891,361 1,681,960 5,967,022 -
Interest and Fiscal Charges 1,450,395 - - -
Total Governmental Activities 61,148,685 4,837,941 26,561,448 5,387,593 Business-Type Activities:
Water 9,570,530 11,180,400 152,671 -
Pico Rivera Innovative Municipal Energy 17,222,547 18,030,558 323,931 - Sports Arena 176,188 347,209 - -
Golf 1,254,001 847,876 - -
Total Business-Type Activities 28,223,266 30,406,043 476,602 - Total 89,371,951 $ 35,243,984 $ 27,038,050 $ 5,387,593 $
GENERAL REVENUES
Taxes:
Property
Sales and Use
Franchise
Utility Users
Other
Unrestricted Investment Earnings
Gain on bond defeasance
Miscellaneous
Total General Revenues and Transfers
CHANGE IN NET POSITION
Net Position - Beginning of Year
NET POSITION - END OF YEAR
Program Revenues
CITY OF PICO RIVERA, CALIFORNIA
STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Governmental Business-Type
Activities Activities Total
$ (5,964,339) $ - $ (5,964,339)
(591,683) - (591,683)
(1,816,633) - (1,816,633)
(6,261,424) - (6,261,424)
(5,034,850) - (5,034,850)
(3,242,379) - (3,242,379)
(1,450,395) - (1,450,395)
(24,361,703) - (24,361,703)
- 1,762,541 1,762,541
- 1,131,942 1,131,942
- 171,021 171,021
- (406,125) (406,125)
- 2,659,379 2,659,379
(24,361,703) 2,659,379 (21,702,324)
13,831,113 - 13,831,113
24,551,320 - 24,551,320
1,956,998 - 1,956,998
3,567,128 - 3,567,128
1,926,617 - 1,926,617
(197,845) 449,236 251,391
- 683,028 683,028
889,854 - 889,854
46,525,185 1,132,264 47,657,449
22,163,482 3,791,643 25,955,125
281,632,418 31,945,629 313,578,047
$ 303,795,900 $ 35,737,272 $ 339,533,172
Changes in Net Position
Net (Expense) Revenue and
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CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF MAJOR FUNDS
JUNE 30, 2022
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GOVERNMENTAL FUNDS
General Fund is the City’s primary operating fund and accounts for all the financial resources of the general government, except those required to be accounted for in another fund.
Housing Agency Section 8 Special Revenue Fund accounts for rental assistance expenditures incurred to assist very low and low-income families in meeting their housing needs. Funds are provided by the U.S. Department of Housing and Urban Development.
American Rescue Plan Special Revenue Fund accounts for funds received from the U.S. (federal) government to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses. 2020 Series A COP Capital Projects Fund accounts for activity related to the City’s capital projects that are funded by the 2020 Series A Certificates of Participation.
ENTERPRISE FUND
Water Operations Fund accounts for the operation and maintenance of the City’s water treatment, water transmission, and distribution system.
Pico Rivera Innovative Municipal Energy (PRIME) Fund accounts for the operation of the City’s Community Choice Aggregation Program, which allows residents to choose their electric power provider and the source of their electricity.
INTERNAL SERVICE FUND (NONMAJOR)
This fund accounts for the financing of services provided from one department to another on a costreimbursement basis.
Equipment Replacement Fund accounts for expenditures made for the purpose of purchasing equipment to replace obsolete, broken, or other items in which it is economically unfeasible to continue repairing.
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Housing American
Agency Rescue
General Section 8 Plan
ASSETS
Cash and Investments 37,176,143 $ 574,038 $ $ 4,544,655 Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 1,180,688 - -
Escrow Deposits - 515 -
Receivables:
Accounts 557,472 - -
Taxes 5,788,732 - -
Interest 52,599 12 -
Due from Other Funds 5,052,308 - -
Inventories 3,825 - -
Lease Receivables 17,991 - -
Advance to Other Funds 19,160,397 - -
Long-Term Receivables - - -
Prepaid Items 102,954 - -
Land Held for Resale 1,701,360 - -
Receivables from Successor Agency - 13,360,588 -
Total Assets $ 84,155,057 $ 574,565 $ 4,544,655
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 2,418,778 $ 1,298 $ -
Accrued Liabilities 1,110,820 36,350 -
Due to Other Funds 176,000 61,351 -
Deposits 702,759 515 -
Retention Payable 16,041 - -
Unearned Revenue - - 4,544,655
Due to Other Agencies - - -
Total Liabilities 4,424,398 99,514 4,544,655
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 6,490,506 - -
Deferred inflows of resources related to leases 17,991 - - Total Deferred Inflows of Resources 6,508,497 - -
FUND BALANCES (DEFICIT)
Nonspendable - 26,139,104 -
Restricted 1,180,688 475,051 -
Committed 24,517,211 - -
Assigned 14,926,791 - -
Unassigned 6,458,368 - -
Total Fund Balances (Deficit) 475,051 73,222,162 -
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 84,155,057 $ 574,565 $ 4,544,655 Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
BALANCE SHEET (CONTINUED)
JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Capital Projects
Other Total
2018 Series A Governmental Governmental
COP Funds Funds
$ - $ 36,116,863 $ 78,411,699
14,085,985 - 15,266,673
- - 515
- 2,340,005 2,897,477
- 431,924 6,220,656
- 20,787 73,398
- - 5,052,308
- - 3,825
- - 17,991
- - 19,160,397
- 3,865,948 3,865,948
- - 102,954
- - 1,701,360
- 1,639,164 14,999,752
$ 14,085,985 $ 44,414,691 $ 147,774,953
$ 1,274,118 $ 1,583,357 $ 5,277,551
2,803 71,071 1,221,044
373,037 1,234,805 1,845,193
- - 703,274
59,236 239,642 314,919
- - 4,544,655
- 3,863,920 3,863,920
1,709,194 6,992,795 17,770,556
- 1,757,005 8,247,511
- - 17,991
- 1,757,005 8,265,502
- - 26,139,104
12,376,791 24,577,156 38,609,686
- - 24,517,211
- 11,590,609 26,517,400
- (502,874) 5,955,494
12,376,791 35,664,891 121,738,895
$ 14,085,985 $ 44,414,691 $ 147,774,953
Fund
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CITY OF PICO RIVERA, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Fund Balances (Deficits) for Governmental Funds 121,738,895 $ Amounts reported for governmental activities in the statement of net position are different because:
Capital and leased assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds:
Capital Assets 421,565,790 $
Leased Assets 111,108
Less: Accumulated Depreciation (158,124,564)
Subtotal 263,552,334
Interest receivable on certain long-term loans and certain grants receivable are not available to pay for current-period expenditures and therefore are deferred in the governmental funds. In the statement of net position, these receivables are recognized as earned revenues. 8,247,511 Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the statement of net position. 1,045,211
Long-term liabilities and related accrued interest payable are not due and payable in the current period and therefore are not reported in the governmental funds:
Compensated Absences (1,468,505)
Claims Payable (2,308,000)
Accrued Interest Payable (360,897)
Lease Liability (86,524)
Revenue Bonds Payable (41,542,775)
Deferred Amount on Refunding 1,566,426
Subtotal (44,200,275)
Pension and OPEB related debt applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions and OPEB are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for
governmental activities:
Deferred Outflows of Resources Related to OPEB 1,950,212 Deferred Inflows of Resources Related to OPEB (6,412,143) Net OPEB Liability (14,846,687)
Deferred Outflows of Resources Related to Pensions 3,379,958 Deferred Inflows of Resources Related to Pensions (7,416,559) Net Pension Liability (23,242,557)
Subtotal (46,587,776)
Net Position of Governmental Activities 303,795,900 $
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Housing American
Agency Rescue
General Section 8 Plan
REVENUES
Taxes and Assessments 42,417,105 $ - $ - $
Licenses and Permits 3,612,057 - -
Intergovernmental 807,076 6,255,260 10,227,800
Charges for Services 1,309,387 - -
Fines, Forfeitures, and Penalties 1,199,256 - -
Investment and Rental (906,232) 451 -
Miscellaneous 595,753 43,334 -
Total Revenues 49,034,402 6,299,045 10,227,800
EXPENDITURES
Current:
General Government 9,271,265 - -
Public Safety 1,907,786 - 10,227,800
Public Works 8,553,652 - -
Parks and Recreation 5,581,524 - -
Health and Welfare - 6,075,409 -
Community Development 10,652,585 - -
Capital Outlay - - -
Debt Service:
Principal 955,000 - -
Interest and Fiscal Charges 965,250 - -
Lease Principal 24,584 - -
Lease Interest 2,497 - -
Total Expenditures 37,914,143 6,075,409 10,227,800
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 223,636 11,120,259 -
OTHER FINANCING SOURCES (USES):
Transfers In 1,479,066 - -
Transfers Out (12,577,135) - -
Total Other Financing Sources (Uses) (11,098,069) - -
NET CHANGE IN FUND BALANCES 223,636 22,190 -
Fund Balances (Deficits) - Beginning of Year 251,415 73,199,972 - FUND BALANCES (DEFICITS) - END OF YEAR $ 475,051 73,222,162 $ - $ Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Capital
Projects Fund
2018 Other Total
Series A Governmental Governmental
COP Funds Funds
$ 1,893,796 - $ 44,310,901 $
- - 3,612,057
16,065,596 - 33,355,732
128,110 - 1,437,497
- - 1,199,256
538,107 8,290 (359,384)
594,299 23 1,233,409
19,219,908 8,313 84,789,468
37,971 - 9,309,236
- - 12,135,586
8,820,527 - 17,374,179
1,504,458 - 7,085,982
339,076 - 6,414,485
906,281 - 11,558,866
219,003 2,340,156 2,559,159
- 275,000 1,230,000
- 557,169 1,522,419
- - 24,584
- - 2,497
11,827,316 3,172,325 69,216,993
7,392,592 (3,164,012) 15,572,475
11,577,135 832,169 13,888,370
(2,311,235) - (14,888,370)
9,265,900 832,169 (1,000,000)
16,658,492 (2,331,843) 14,572,475
19,006,399 14,708,634 107,166,420
$ 35,664,891 12,376,791 $ 121,738,895 $
CITY OF PICO RIVERA, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Net Change in Fund Balances - Total Governmental Funds $ 14,572,475 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 activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital expenses in the current period:
Capital Expenditures $ 9,624,234
Loss on Disposal (929,664)
Depreciation Expense (5,936,582)
Subtotal 2,757,988
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds:
Adjustment to Interest Income on Notes Receivable
and Advances to Other Funds 51,265
Grant and Other Revenue Not Available to Pay
for Current-Period Expenditures (1,517,471)
Subtotal (1,466,206)
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds:
Net Change in Claims Payable (612,000)
Net Change in Compensated Absences (38,003)
Subtotal (650,003)
Long-term liability activities are presented as financing sources and uses in the governmental funds but are reported as long-term liabilities in the statement of net position:
Principal Payments on Long-Term Liabilities 1,230,000
Principal Payments on Lease Liabilities 24,584
Amortization of Deferred Bond Charges 65,329
Change in Accrued Interest 9,192
Subtotal 1,329,105
Internal service funds were used by management to charge the cost of certain activities to the individual funds. The net revenue of the internal service funds was reported with governmental activities. 1,213,537 OPEB expense reported in the governmental funds includes the insurance premiums paid. In the statement of activities, OPEB expenses includes the change in the OPEB liability, and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources. 1,446,692 Pension expense reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. 2,959,894
Change in Net Position of Governmental Activities $ 22,163,482
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund
ASSETS
Current Assets:
Cash and Investments 15,629,654 $ 7,604,033 $ 422,208 $ 23,655,895 $ $ 1,046,917 Receivables, Net:
Accounts 1,890,024 3,867,901 121,592 5,879,517 -
Interest 17,222 - 381 17,603 1,154
Due from Successor Agency - 176,000 - 176,000 -
Inventories, at Cost - - 24,005 24,005 -
Total Current Assets 17,712,900 11,471,934 568,186 29,753,020 1,048,071 Noncurrent Assets:
Restricted Cash and Investments
with Fiscal Agent 873,136 200,000 - 1,073,136 -
Receivables from Successor Agency - 189,699 - 189,699 - Capital Assets, Not Depreciated 28,014,156 - 42,313 28,056,469 - Capital Assets, Depreciated, Net 21,601,289 - 240,521 21,841,810 - Total Noncurrent Assets 50,678,280 200,000 282,834 51,161,114 - Total Assets 68,391,180 11,671,934 851,020 80,914,134 1,048,071
DEFERRED OUTFLOWS OF RESOURCES
Amounts Related to OPEB 192,214 17,278 - 209,492 -
Amount Related to Pensions 690,206 54,061 11,503 755,770 - Total Deferred Outflows of Resources 882,420 71,339 11,503 965,262 -
LIABILITIES
Current Liabilities:
Accounts Payable 721,270 2,452,414 195,893 3,369,577 2,860 Accrued Interest Payable 85,296 - - 85,296 -
Accrued Liabilities 143,048 263,817 55,323 462,188 -
Due to Other Funds - 3,383,115 - 3,383,115 -
Unearned Revenue 10,858 - - 10,858 -
Deposits 596,634 - 1,800 598,434 -
Retentions Payable 40,027 - - 40,027 -
Bonds Payable - Current Portion 1,125,000 - - 1,125,000 - Compensated Absences - Current Portion 25,579 3,316 - 28,895 - Total Current Liabilities 2,747,712 6,102,662 253,016 9,103,390 2,860 Noncurrent Liabilities:
Advance from Other Funds 16,084,289 - 3,076,108 19,160,397 - Bonds Payable 8,452,364 - - 8,452,364 -
Compensated Absences 230,211 29,841 - 260,052 -
Net OPEB Liability 131,532 1,463,295 - 1,594,827 -
Net Pension Liability 372,982 4,761,942 79,361 5,214,285 - Total Noncurrent Liabilities 30,992,101 534,355 3,155,469 34,681,925 - Total Liabilities 33,739,813 6,637,017 3,408,485 43,785,315 2,860
DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 631,983 56,807 - 688,790 -
Amounts Related to Pensions 1,523,317 119,315 25,387 1,668,019 - Total Deferred Inflows of Resources 2,155,300 176,122 25,387 2,356,809 -
NET POSITION
Net Investment in Capital Assets 39,998,054 - 282,834 40,280,888 - Unrestricted (6,619,567) 4,930,134 (2,854,183) (4,543,616) 1,045,211 Total Net Position $ 33,378,487 $ 4,930,134 $ (2,571,349) $ 35,737,272 $ 1,045,211 Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(34)
Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund
OPERATING REVENUES
Charges for Services 11,151,961 $ 17,973,913 $ 1,194,916 $ 30,320,790 $ - $ Miscellaneous 28,439 56,645 169 85,253 236,861
Total Operating Revenues 11,180,400 18,030,558 1,195,085 30,406,043 236,861
OPERATING EXPENSES
Cost of Power - 16,609,791 - 16,609,791 -
Salaries and Benefits 3,535,743 (423,772) 69,723 3,181,694 - Contractual Services 187,396 686,885 198,851 1,073,132 - Insurance Claims and Expenses 294,594 169 1,192 295,955 - Administrative 2,854,537 349,474 868,362 4,072,373 -
Utilities 483,659 - 193,762 677,421 -
Repairs and Maintenance 336,642 - 41,531 378,173 12,229 Depreciation 772,972 - 56,768 829,740 -
Total Operating Expenses 8,465,543 17,222,547 1,430,189 27,118,279 12,229 OPERATING INCOME (LOSS) 2,714,857 808,011 (235,104) 3,287,764 224,632
NONOPERATING REVENUES
(EXPENSES)
Investment Income 441,085 13,481 (5,330) 449,236 (11,095) Grants 152,671 323,931 - 476,602 -
Gain on bond defeasance 683,028 683,028
Interest Expense (1,104,987) - (1,104,987) - -
Total Nonoperating
Revenues (Expenses) 171,797 337,412 (5,330) 503,879 (11,095)
INCOME (LOSS) BEFORE
TRANSFERS 2,886,654 1,145,423 (240,434) 3,791,643 213,537 TRANSFERS IN - - - - 1,000,000
CHANGES IN NET POSITION 2,886,654 1,145,423 (240,434) 3,791,643 1,213,537 Net Position - Beginning of Year 30,491,833 3,784,711 (2,330,915) 31,945,629 (168,326) NET POSITION - END OF YEAR $ 33,378,487 $ 4,930,134 $ (2,571,349) $ 35,737,272 $ 1,045,211 Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 10,853,672 $ 17,180,422 $ 1,092,370 $ 29,126,464 $ 236,861 $ Payments to Suppliers (5,755,194) (17,001,774) (1,254,544) (24,011,512) (9,369) Payments to Employees (2,591,870) (310,369) (78,878) (2,981,117) - Net Cash Provided (Used) by Operating Activities 2,506,608 (131,721) (241,052) 2,133,835 227,492
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Proceeds (Repayments) of Long-Term Advances (261,971) - - (261,971) - Grants received 152,671 323,931 - 476,602 -
Cash Paid to Other Funds - - - - (168,326)
Cash Received from Other Funds 20,120,000 478,629 (48,054) 20,550,575 1,000,000 Net Cash Provided (Used) by Noncapital Activities 20,010,700 802,560 (48,054) 20,765,206 831,674
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of Capital Assets (4,269,956) - - (4,269,956) - Principal Retired (20,180,000) - - (20,180,000) -
Interest Paid (1,254,165) - - (1,254,165) -
Net Cash Used by Capital and
Related Financing Activities (25,704,121) - - (25,704,121) -
CASH FLOWS FROM INVESTING ACTIVITIES
FMV Adjustment (220,292) - (5,956) (226,248) (12,991)
Interest Received 767,190 13,481 344 781,015 742
Net Cash Provided (Used) by Investing Activities 546,898 13,481 (5,612) 554,767 (12,249)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 684,320 (2,639,915) (294,718) (2,250,313) 1,046,917 Cash and Cash Equivalents - Beginning of Year 19,142,705 7,119,713 716,926 26,979,344 - CASH AND CASH EQUIVALENTS - END OF YEAR $ 7,804,033 16,502,790 $ 422,208 $ 24,729,031 $ 1,046,917 $ Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating Income (Loss) 2,714,857 $ 808,011 $ (235,104) $ 3,287,764 $ 224,632 $ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 772,972 - 56,768 829,740 -
Changes in Operating Assets, Deferred Outflows of
Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable (246,477) (850,136) (102,715) (1,199,328) - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to OPEB (77,801) (4,127) - (81,928) - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to Pensions (84,428) 98,576 2,807 16,955 - Increase (Decrease) in Accounts Payable (1,637,642) 644,545 51,124 (941,973) 2,860 Increase (Decrease) in Accrued Liabilities 47,862 46,145 3,791 97,798 - Increase (Decrease) in Unearned 975 - - 975 -
Increase (Decrease) in Deposits Payable (81,226) - - (81,226) - Increase (Decrease) in Retentions Payable 39,276 - - 39,276 - Increase (Decrease) in Net OPEB Liability (472,876) (91,016) - (563,892) - Increase (Decrease) in Net Pension Liability (414,615) (931,347) (42,920) (1,388,882) - Increase (Decrease) in Compensated Absences (23,620) (6,021) - (29,641) - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to OPEB 454,060 36,356 - 490,416 - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions 1,515,291 117,293 25,197 1,657,781 - Total Adjustments (208,249) (939,732) (5,948) (1,153,929) 2,860 Net Cash Provided (Used) by Operating Activities 2,506,608 $ (131,721) $ (241,052) $ 2,133,835 $ 227,492 $ Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND
JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governmental units.
Successor Agency to the City of Pico Rivera Redevelopment Agency Private-Purpose Trust Fund accounts for the activities of the Successor Agency to the Pico Rivera Redevelopment Agency.
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and Investments $ 7,179,874
Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 3,520
Accounts Receivable 1,026
Interest Receivable 17,076
Loans Receivable 332,597
Land Held for Resale 75,400
Capital Assets:
Capital Assets, Not Depreciated 258,023
Capital Assets, Depreciated, Net 57,056
Total Assets 7,924,572
DEFERRED OUTFLOWS OF RESOURCES
Loss on Refunding 774,296
LIABILITIES
Accrued Liabilities 4,172
Interest Payable 16,950
Payable to City of Pico Rivera 47,342,448
Payable to Pico Rivera Housing Assistance Agency 1,639,164 Payable to the County of Los Angeles 47,875,556
Bond payable 13,470,000
Total Liabilities 110,348,290
NET POSITION
Held in Trust for Successor Agency (101,649,422)
Total Net Position $ (101,649,422)
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
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Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ADDITIONS
Taxes $ 4,957,246
Contributions 6,065,000
Investment Earnings (170,968)
Total Additions 10,851,278
DEDUCTIONS
Administrative Expenses 64,255
Interest 2,612,008
Depreciation 4,369
Total Deductions 2,680,632
CHANGE IN NET POSITION 8,170,646
Net Position - Beginning of Year (109,820,068)
NET POSITION - END OF YEAR $ (101,649,422)
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CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES A. Description of the Reporting Entity
The City of Pico Rivera (the City) was incorporated in January 1958 under the general laws of the state of California. The City is a full-service city and operates under a City Council-Manager form of government.
The Pico Rivera Public Financing Authority (the Financing Authority) was formed as a joint powers authority between the City and the Pico Rivera Redevelopment Agency (the former RDA). Its purpose is to assist in the financing of public capital improvements or projects whenever there are significant public benefits.
The Pico Rivera Water Authority (the Water Authority) was formed as a joint powers authority between the City and the former RDA. Its purpose is to assist the City in its financing objectives by leasing and financing improvements to the City’s water supply and distribution system.
The Pico Rivera Housing Assistance Agency (the Agency) was formed to provide safe and sanitary dwelling accommodations in the City to low- and moderate-income individuals.
The City is the primary government unit. Component units are those entities that are financially accountable to the primary government, either because the City appoints a voting majority of the component unit’s board, or because the component unit provides a financial benefit or imposes a financial burden on the City.
The Water Authority and Financing Authority (collectively, the Authorities) and the Agency have been accounted for as “blended” component units of the City. Despite being legally separate, these entities are so intertwined with the City that they are, in substance, part of the City’s operations. Accordingly, the balances and transactions of the Authorities and Agency are reported within the funds of the City. The activities of the Financing Authority are included in the City’s General Fund. Separate financial statements are not available. The activities of the Water Authority are reported in the Water Operations Enterprise Fund. Separate financial statements of the Water Authority may be obtained at City Hall. The activities of the Agency are reported in two Special Revenue Funds (Housing Agency Section 8 Special Revenue Fund and Low and Moderate Income Housing Fund). Separate financial statements are not available.
The following specific criteria were used in determining that the Authorities and the Agency are blended component units.
The members of the City Council also act as the governing body of the Authorities and the Agency.
The Authorities and the Agency are managed by employees of the City. A portion of the City’s salary and overhead expenses are billed to the Agency each year.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The former Pico Rivera Redevelopment Agency was dissolved effective February 1, 2012, as a result of Assembly Bill x1 26 (the Dissolution Act). It is no longer considered to be a component unit of the City. On January 10, 2012, the City accepted a fiduciary role as the Successor Agency to serve as the custodian for the assets and to wind down the affairs of the former RDA. Successor Agency activity is reported in a fiduciary private-purpose trust fund.
The City’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City’s more significant accounting policies are described below.
B. Government-Wide and Fund Financial Statements
The statement of net position and statement of activities (i.e., the government-wide financial statements) display information on all of the nonfiduciary activities of the primary government (the City) and its blended component units. Eliminations have been made to minimize the effect of interfund activity. These statements distinguish between the City’s governmental and business-type activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each function of the City’s governmental activities and for each segment of the City’s business-type activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include (1) charges paid by the recipients of goods or services offered by the functions or programs and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating items.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year that the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements have been satisfied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.”
Under the modified accrual basis of accounting, revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims payable, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term liabilities are reported as other financing sources.
Property taxes, taxpayer-assessed taxes, such as sales taxes, gas taxes, and transient occupancy taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. Amounts owed to the City, which are not available, are recorded as receivables and deferred inflows of resources.
Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Long-term receivables in governmental funds are reported on the balance sheets in spite of their spending measurement focus.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
These long-term receivables relate to grant-funded revolving loan programs and are offset by amounts due to the granting agencies since the funding will revert to them upon conclusion of the loan programs.
The City’s fiduciary fund financial statements include a Private-Purpose Trust Fund. The Private-Purpose Trust Fund is reported using the “economic resources measurement focus” and the “accrual basis of accounting.”
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with a self-balancing set of accounts established for the purpose of carrying out specific activities or attaining certain objectives in accordance with applicable regulations, restrictions, or limitations. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund and accounts for all the financial resources of the general government, except those required to be accounted for in another fund.
The Housing Agency Section 8 Special Revenue Fund accounts for rental assistance expenditures incurred to assist very low and low-income families in meeting their housing needs. Funds are provided by the U.S. Department of Housing and Urban Development.
The American Rescue Plan Special Revenue Fund accounts for funds received from the U.S. (federal) government for expenditures incurred to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses.
The 2018 Series A COP Capital Projects Fund accounts for activity related to the City’s capital projects that are financed with the 2018 Series A Certificates of Participation that were issued in the current fiscal year.
The City reports the following major enterprise funds:
The Water Operations Fund accounts for the operation and maintenance of the City’s water treatment, water transmission, and distribution system.
The Pico Rivera Innovative Municipal Energy (PRIME) Fund accounts for the operations of the City’s Community Choice Aggregation Program, which allows residents to choose their electric power provider and the source of their electricity.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Additionally, the City reports the following fund types:
Governmental Funds
Special Revenue Funds account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes.
Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities.
Proprietary Funds
Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises. Costs are financed or recovered primarily through user charges.
Internal Service Fund accounts for the financing of services relating to equipment replacement provided to one department from another on a cost-reimbursement basis.
Fiduciary Fund
Private-Purpose Trust Fund accounts for the Los Angeles County-Auditor Controller’s semiannual property tax distributions from the Redevelopment Property Tax Trust Fund of the Successor Agency of the former Pico Rivera Redevelopment Agency to pay amounts due on enforceable obligations of the former Pico Rivera Redevelopment Agency and to pay for specified administrative costs.
D. New Accounting Pronouncements
GASB 87
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Investments
Investments are recorded at fair value (quoted market price or best available estimate thereof). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Interest earned on cash and investments is credited to the fund, which holds the investment.
F. Property Taxes
Property taxes include assessments on both secured and unsecured property. Secured property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments by December 10 and April 10.
The County of Los Angeles (the County) bills and collects the property taxes and remits them to the City in installments during the year. The City records property taxes as revenue when received from the County, except for property taxes received within 60 days after fiscal year-end, which are accrued at June 30.
The County is permitted by State of California law (Article XIII A of the California Constitution) to levy taxes at 1% of full fair value (at the time of purchase) and can increase the property’s value at no more than 2% per year. The City receives a share of this basic levy.
G. Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation, and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the governmentwide financial statements as “internal balances.” The principal portion of advances between funds, as reported in the fund financial statements, is offset by a nonspendable fund balance in the General Fund to indicate that they are not available for appropriation and are not available financial resources.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs costs, charges the appropriate benefiting fund, and then reduces its related costs as a reimbursement. All other interfund transactions are treated as transfers.
H. Inventories and Prepaid Items
Inventories are recorded as expenditures when consumed rather than when purchased.
These inventories are valued at cost and consist of expendable materials and supplies.
When payments to vendors reflect costs applicable to future accounting periods, they are recorded as prepaid items and the expense is recorded using the consumption method.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(47)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Inventories and Prepaid Items (Continued)
Inventories and prepaid items are offset by a nonspendable fund balance in the governmental funds to indicate that they are not available for appropriation and are not expendable financial resources.
I. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets in the financial statements because their use is limited by applicable bond covenants.
J. Capital Assets
Capital assets, which include lands, buildings, improvements, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are recorded at the lower of actual historical cost or acquisition value (as of the date donated for contributed assets). The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Building and Structures 40 Years
Improvements Other than Buildings 40 Years
Furniture and Equipment Up to 25 Years
Infrastructure Up to 60 Years
It is the City’s policy to capitalize all land, building, improvements, and equipment with an estimated useful life greater than one year, except assets costing less than $5,000, and to capitalize infrastructure assets costing $50,000 or more. Costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the operating statement of the related fund. In governmental funds, the sale of capital assets is included in the statement of revenues, expenditures, and changes in fund balances as proceeds from sale.
K. Land Held for Resale
Land held for resale is carried at the lower of acquisition cost or fair value.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Compensated Absences
Employees accrue vacation and sick leave benefits. An employee may accumulate vacation leave up to 320 hours and sick leave up to 800 hours. Beginning annually in June, an employee with accumulated sick leave may choose to take any or all of the fiscal year’s accumulated sick leave as cash provided it does not exceed 81 hours. Each year in December, employees may opt to cash out any or all vacation leave that exceeds 150 hours. Employees must maintain a balance of 150 hours on the books.
All leave pay (vacation and sick) is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if these amounts have matured as a result of employee resignations and retirements. The adopted reserve policies (see Note 12) provide for an assignment of fund balance in the General Fund for overall “leave liability” above and beyond the liability recorded in the financial statements.
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
Deferred amount on refunding reported in the government-wide statement of net position. A deferred amount 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 life of the refunded or refunding debt.
Deferred outflow related to pensions and OPEB, which are equal to the employer contributions made after the measurement date of the net pension liability and net OPEB liability.
Deferred outflows related to pensions resulting from changes in actuarial assumptions and differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided pensions through the plans.
Deferred outflows related to pensions resulting changes in actuarial assumptions.
These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided pensions through the plans.
Deferred outflows related to pensions resulting from the difference in projected and actual earnings on investments of the pension plan fiduciary net position.
These amounts are amortized over five years.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(49)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources, represents a acquisition of net asset that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following that qualify for reporting in this category:
Deferred inflows from unavailable revenues, which is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: taxes, investment income, and grants. These amounts are unavailable and will be recognized as an inflow of resources in the period that the amounts become available.
Deferred inflows related to OPEB resulting changes in actuarial assumptions.
These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided OPEB through the plan.
Deferred inflows related to pensions and OPEB resulting from the difference between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided pensions and OPEB through the plans. Deferred inflows related to pensions and OPEB resulting from the difference in projected and actual earnings on investments of the pension and OPEB plan fiduciary net position. These amounts are amortized over five years.
N. Long-Term Obligations
In the government-wide financial statements and proprietary fund types fund financial statements, long-term debt and other long-term obligations are included as liabilities.
Bond premiums and discounts are amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, when paid. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as an expenditure.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(50)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
P. Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the City’s OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Q. Fund Balances
Fund balance is the difference between the assets, deferred outflows of resources, liabilities, and deferred inflows of resources reported in the City’s governmental funds.
There are generally limitations on the purpose for which all or a portion of the resources of a governmental fund may be used. The force behind these limitations can vary significantly, depending upon their source. Consequently, the fund balance reported in the annual financial statements is categorized into five components whereby each component identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent.
The fund balances reported on the fund statements consist of the following categories:
Nonspendable – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted – This classification includes amounts that can be spent only for specific purposes stipulated by constitution and external resource providers or through enabling legislation.
Committed – This classification includes amounts that can be used only for the specific purposes determined by the City Council through the adoption of a resolution prior to the end of the year. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken to remove or revise the limitation.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. Fund Balances (Continued)
Assigned – This classification includes amounts to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed.
Through the adoption of a resolution to approve the City’s fund balance policy, the City Council has authorized the City Manager to assign fund balance. In governmental funds, other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed.
Unassigned – This classification includes the residual balance for the government’s General Fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply the restricted fund balance first.
When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply the committed fund balance first, then the assigned fund balance, and finally the unassigned fund balance.
R. Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is classified in the following categories:
Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s practice to consider restricted - net position to have been depleted before unrestricted - net position is applied; however, it is at the City Council’s discretion.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Statement of Cash Flows
For purposes of the statement of cash flows, cash equivalents are defined as investments with original maturities of 90 days or less, which are readily convertible to known amounts of cash and not subject to significant changes in value from interest rate fluctuations.
T. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumption that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and related disclosures. Actual results could differ from those estimates.
NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2022, are classified in the accompanying financial statements as follows:
Government Fiduciary
Wide Funds Total
Unrestricted Assets:
Cash and Investments 103,114,511 $ 7,179,874 $ 110,294,385 $ Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 16,339,809 3,520 16,343,329 Escrow Deposits 515 - 515
Total Cash and Investments 119,454,835 $ 7,183,394 $ 126,638,229 $ Statement of Net Position
Cash and investments at June 30, 2022, consisted of the following:
Cash on Hand 9,372 $
Deposits with Financial Institutions 13,533,093
Investments 113,095,764
Total Cash and Investments 126,638,229 $
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City’s Investment Policy (Continued)
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity Allowed* in One Issuer U.S. Treasury Obligations 5 years 20% None
U.S. Government Sponsored
Agency Securities 5 years 20% None
Banker’s Acceptance Notes 180 days 20% 5%
Municipal Securities 5 years 30% 5%
Commercial Paper 270 days 25% 5%
Corporate Medium Term Notes 5 years 30% 5%
Collateralized Mortgage Obligations 5 years 20% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Money Market Mutual Funds N/A 20% 10%
Supranational Securities N/A 20% 10%
Local Government Investment Pool N/A None None
Local Agency Investment Fund N/A None 75,000,000 $
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
N/A - Not Applicable
Investments Authorized by Debt Agreements
Investments of debt proceeds held by a bond trustee are governed by the provisions of debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held by a bond trustee include U.S. Treasury Obligations, U.S. Government Sponsored Agency Securities, Certificates of Deposit, Commercial Paper, Local Agency Bonds, Banker’s Acceptance Notes, Money Market Mutual Funds, Investment Contracts, and Repurchase Agreements. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker’s Acceptance Notes, which are limited to one year.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk (Continued)
Information about the sensitivity of the fair values of the City’s investments (including investments held by a bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 -60
Investment Type or Less Months Months Total
Local Agency Investment Fund 71,039,487 $ - $ - $ 71,039,487 $ U.S. Government Sponsored
Agency Securities 1,692,019 2,590,192 468,101 4,750,312 U.S. Treasury Notes 2,074,445 3,731,781 6,306,705 12,112,931 Money Market Mutual Funds 197,231 - - 197,231
Collateralized Mortgage Obligations 784,332 401,976 - 1,186,308 Supranational - 507,140 639,339 1,146,479
Medium-Term Notes 1,089,782 2,356,873 3,073,032 6,519,687 Held by Fiscal Agent:
Money Market Mutual Funds 14,962,641 - - 14,962,641
PARS Trust Pooled Investments 1,180,688 - - 1,180,688
Total 93,020,625 $ 9,587,962 $ 10,487,177 $ 113,095,764 $ Remaining Maturity (in Months)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements and the actual rating, as reported by Standard & Poor’s, as of year-end for each investment type:
Minimum
Legal Total as of Not
Investment Type Rating June 30, 2022 AAA AA+ AA Other Rated Local Agency Investment Fund N/A $ - 71,039,487 $ - $ - $ - $ 71,039,487 $ U.S. Government Sponsored
Agency Securities N/A - 4,750,312 4,750,312 - - -
U.S. Treasury Notes* N/A - 12,112,931 - - - 12,112,931
Money Market Mutual Funds N/A 197,231 197,231 - - - -
Supranational A 1,146,479 1,146,479 - - - -
Collateralized Mortgage Obligations A 1,186,308 - - - - 1,186,308 Certificates of Deposits - - -
Medium-Term Notes A 6,519,687 1,344,416 278,016 264,102 3,833,052 800,101 Held by Fiscal Agent:
Money Market Mutual Funds N/A 14,962,641 14,962,641 - - - - PARS Trust Pooled Investments N/A - 1,180,688 - - - 1,180,688 Total 113,095,764 $ 17,650,767 $ 5,028,328 $ 264,102 $ 3,833,052 $ 86,319,515 $ Rating as of Fiscal Year-End
* U.S. Treasury Notes are not required to be rated.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk (Continued)
The ratings for the “Other” category above are as follows:
Total as of
Investment Type June 30, 2022 AA- A+ A AMedium-Term Notes 3,833,052 $ 253,536 $ $ 769,202 $ 2,466,873 $ 343,441 Rating as of Fiscal Year-End
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments other than the following provision for deposits.
The California Government Code requires that a financial institution secure deposits made by state or 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 a value of 150% of the secured public deposits. At June 30, 2022, the City and the Successor Agency deposits (bank balances) were insured by the Federal Deposit Insurance Corporation and the remaining balances were collateralized under California law.
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.
Investment in Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized-cost basis.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Cash and Investments – Pension Trust
The City established a trust account with Public Agency Retirement Services (PARS) to hold assets that are legally restricted for use in administering the City’s pension plans. The Pension Trust’s specific cash and investments are managed by a third-party portfolio manager and invested under a pool arrangement using certain investment guidelines offered by PARS and approved by the City.
Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the assets and liabilities through corroboration with market data, and Level 3 inputs are significant unobservable inputs.
Assets classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices
Level 1 Level 2 Level 3 Total
Held by Trustee:
Supranational - $ 1,146,479 $ - $ 1,146,479 $
Collateralized Mortgage Obligations - 1,186,308 - 1,186,308 Medium-Term Notes - 6,519,687 - 6,519,687
U.S. Treasury Notes - 12,112,931 - 12,112,931
U.S. Government Sponsored
Agency Securities - 4,750,312 - 4,750,312
Total Leveled Investments - $ 25,715,717 $ - $ 25,715,717 Investments Not Subject to Fair Value Hierarchy:
Local Agency Investment Fund 71,039,487
Money Market Mutual Funds 197,231
Held by Trustee:
Money Market Mutual Funds 14,962,641
PARS Trust Pooled Investments 1,180,688
Total Investment Portfolio $ 113,095,764
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2022, is as follows:
Advances To/From Other Funds
Advances to Other Funds Advances from Other Funds Amount General Fund Water Operations Enterprise Fund 16,084,289 $ Golf Course Enterprise Fund 3,076,108
Total 19,160,397 $
In 1999, the Water Authority received an advance from the City’s General Fund in connection with the acquisition of water operation capital assets. The Water Authority is obligated to pay off this advance from surplus revenues over 50 years. No interest accrues on this advance. Payments will vary with the level of surplus revenues. No payments were made in fiscal year 2021-22. The City adjusted the balance by $261,971 for excess of fund in the reserve requirement. The balance of the advance at June 30, 2022, is $16,084,289.
The Authority’s current outstanding revenue bonds will be paid in full by 2033. The debt service payments will be partially funded by receipts from the receivables due from the Successor Agency, as well as operating income over the next 16 years.
Management has estimated that cash flows from these sources will exceed the debt service requirements of the revenue bonds, and any excess cash flows will be used to pay down the advance from the City. Additionally, once the outstanding revenue bonds are paid in full in fiscal year 2033, the operating income will be available to pay down the advance from the City. Management believes that the Water Authority will have the ability to pay this obligation in full prior to the advance’s original maturity date in 2049.
The General Fund made several advances to the Golf Course Enterprise Fund to fund operating expenses. No interest accrues on this advance. Payments will vary with the level of surplus revenues. No payments are expected on this advance in the near term and therefore the City has classified this advance as a noncurrent liability in the accompanying enterprise fund financial statements.
Due To/From Other Funds
The composition of interfund balances as of June 30, 2022, is as follows:
Receivable Fund Payable Fund Amount
General Fund Housing Agency Section 8 Special
Revenue Fund 61,351 $
2018 Series A COP Capital
Projects Fund 373,037
Other Governmental Funds 1,234,805
PRIME Enterprise Fund 3,383,115
Water Operations Enterprise Fund General Fund 176,000
Total 5,228,308 $
The amounts loaned from the General Fund are short-term loans to fund operations of the various funds.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) Transfers
Transfers Out Transfers In Amount
General Fund Other Governmental Funds (1) $ 11,577,135
Equipment Replacement
Internal Service Fund (1) 1,000,000
Other Governmental Funds General Fund (2) 1,479,066
2018 Series A COP Capital Projects
Fund (3) 832,169
Total $ 14,888,370
(1) The General Fund transferred $11,577,135 to Other Governmental Fund and $1,000,000 to Equipment Replacement Fund for vehicle and equipment replacement. (2) The Other Governmental funds – State Gas Tax Fund transferred $1,479,066 to General Fund for approved street maintenance activities.
(3) The Other Governmental Fund - Measure M transferred $832,169 for debt service on the 2018 Series A Certificates of Participation.
NOTE 4 LONG-TERM RECEIVABLES
Low-interest home improvement loans were made under the City’s Home Loan Program.
These loans shall be due and payable in full when the borrower’s legal interest in the property, which is security for the loan, is sold, transferred, or conveyed. The outstanding principal balance at June 30, 2022, is $2,586,210 and is included in the HOME Grant Special Revenue Fund. At June 30, 2022, the City has an allowance of $815,629 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.
Loans receivable consist of low interest and no interest home improvement loans made from the Community Development Block Grant Special Revenue Fund to qualified low-income homeowners. The low-interest loans are payable in monthly installments over a period of 1 to 20 years. Those loans earning no interest are payable in one lump sum at the time the property is sold or refinanced. Payments received on these loans (principal and interest) are reloaned on a revolving basis under the Home Improvements Program. The outstanding principal balance at June 30, 2022, totaled $176,409. At June 30, 2022, the City has an allowance of $40,321 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
Loans receivable consists of low-interest home improvement loans made form the CalHOME Grant Special Revenue Fund. These loans shall be due and payable in full when the borrower’s legal interest in the property, which is security for the loan, is sold, transferred, or conveyed. The outstanding principal balance at June 30, 2022, is $1,103,329. At June 30, 2022, the City has an allowance of $136,865 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.
Home improvement loans to low- and moderate-income households have been made from the Housing Agency LMIHF Special Revenue Fund. These loans are payable in 10 years or when borrowers sell their property, whichever comes first. The outstanding balances, net of an $50,003 allowance, at June 30, 2022 were zero.
Loan receivable from a restaurant group, which was offered as a bridge loan for the purposes of establishing an upscale restaurant in the City was made from the Economic Sustainability Special Revenue Fund. The loan amount of $287,050 bears interest at the rate of 3% per annum. The loan matures on the earlier of (a) 45 days after the borrower requested disbursement of the allowance in accordance with a lease agreement, (b) 45 days after the borrower has delivered all required documentation as outlined in the lease agreement, or (c) 365 days from the commencement date. The outstanding principal and interest balance at June 30, 2022, was $287,050 and $109,617. The City has an allowance against the outstanding principal and interest as the City cannot ensure the collectability of this loan.
Receivables from Successor Agency
Water
Other Operations
General Governmental Enterprise
Description Fund Funds Fund
Long-Term Loans to Finance Improvements
and Operations Related to and Within the
Former Redevelopment Agency's Project Areas $ 17,814,118 $ - $ 252,932 Sales Tax Deferral Loan to Allow Former
Redevelopment Agency to Meet its Debt
Service Obligations 29,275,398 - -
Loans to Make Payments to Supplemental
Educational Revenue Augmentation Fund - 1,639,164 -
Purchase of Former Redevelopment Agency's Tax
Allocation Bonds, Series 2001 Treated as a Loan
(See Note 15 for details) - - -
Subtotal 47,089,516 1,639,164 252,932
Reserve on Long-Term Loans (4,453,530) - (63,233)
Reserve on Sales Tax Deferral Loan (29,275,398) - -
Total $ 13,360,588 $ 1,639,164 $ 189,699
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 5 CAPITAL AND LEASED ASSETS
Governmental Activities
Capital and leased asset activity for the year ended June 30, 2022, was as follows:
Transfers of
Balance at Construction Balance at
July 1, 2021 Additions Deletions In Progress June 30, 2022 Capital Assets, Not Being
Depreciated:
Land 118,908,710 $ - $ - $ - $ 118,908,710 $
Construction in Progress 19,461,809 9,354,436 (929,664) (5,201,737) 22,684,844 Total Capital Assets, Not
Being Depreciated 138,370,519 9,354,436 (929,664) (5,201,737) 141,593,554 Capital Assets, Being Depreciated:
Structures and Improvements 25,590,725 - - - 25,590,725 Furniture and Equipment 7,021,999 269,798 - - 7,291,797 Infrastructure 241,887,977 - 5,201,737 247,089,714
Total Capital Assets,
Being Depreciated 274,500,701 269,798 - 5,201,737 279,972,236 Less Accumulated Depreciation for:
Structures and Improvements (12,595,633) (525,359) - - (13,120,992) Furniture and Equipment (5,728,611) (243,093) - - (5,971,704) Infrastructure (133,863,738) (5,142,645) - - (139,006,383) Total Accumulated
Depreciation (152,187,982) (5,911,097) - - (158,099,079) Total Capital Assets,
Being Depreciated, Net 122,312,719 (5,641,299) - 5,201,737 121,873,157 Leased Assets
Right to Use Asset - Equipment 111,108 - - - 111,108
Accumulated amortization - (25,485) - - (25,485)
Total Capital Assets, Not
Being Depreciated 111,108 (25,485) - - 85,623
Governmental Activities
Capital and Leased Assets 260,794,346 $ 3,687,652 $ (929,664) $ - $ 263,552,334 $ Depreciation expense was charged to functions of the governmental activities as follows:
General Government 404,685 $
Public Safety 9,117
Public Works 4,421,619
Parks and Recreation 1,072,389
Community Development 3,287
Total Depreciation Expense 5,911,097 $
Amortization expense was charged to general government.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 5 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2022, was as follows:
Transfers of
Balance at Construction Balance at
July 1, 2021 Additions Deletions In Progress June 30, 2022 Capital Assets, Not Being
Depreciated:
Land $ 18,174,060 $ - $ - $ - $ 18,174,060
Rights of Way 5,579,916 - - 5,579,916 -
Construction in Progress 2,061,999 4,063,374 (185,809) (1,637,071) 4,302,493 Total Capital Assets, Not
Being Depreciated 25,815,975 4,063,374 (185,809) (1,637,071) 28,056,469 Capital Assets, Being Depreciated:
Structures and Improvements 5,228,051 - - 5,228,051 -
Utility Plant in Service 21,785,673 - - 21,785,673 -
Equipment 1,081,077 392,391 - 1,473,468 -
Infrastructure 16,055,216 - - 1,637,071 17,692,287
Total Capital Assets,
Being Depreciated 44,150,017 392,391 - 1,637,071 46,179,479 Less Accumulated Depreciation for:
Structures and Improvements (4,205,940) (71,553) - (4,277,493) - Utility Plant in Service (8,007,905) (336,986) - (8,344,891) - Equipment (1,018,792) (36,233) - (1,055,025) -
Infrastructure (10,275,292) (384,968) - (10,660,260) -
Total Accumulated
Depreciation (23,507,929) (829,740) - (24,337,669) -
Total Capital Assets,
Being Depreciated, Net 20,642,088 (437,349) - 1,637,071 21,841,810 Business-Type Activities
Capital Assets, Net $ 46,458,063 $ 3,626,025 $ (185,809) $ 49,898,279 - $ Depreciation expense was charged to functions of the business-type activities as follows:
Water Operations $ 772,972
Sports Arena 30,305
Golf Course 26,463
Total Depreciation Expense $ 829,740
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 6 LONG-TERM LIABILITIES
Changes in long-term liabilities activity for the year ended June 30, 2022, were as follows:
Balance at Balance at Due Within Due in More
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Governmental Activities:
Other Debt:
2016 Lease Revenue Bonds 25,915,000 $ - $ $ 24,960,000 (955,000) $ 995,000 $ 23,965,000 $ Bond Premium 2,412,238 - 2,278,210 (134,028) - 2,278,210 2018 Series A Certificates
of Participation 13,970,000 - 13,695,000 (275,000) 290,000 13,405,000 Bond Premium 633,010 - 609,565 (23,445) - 609,565
Other Liabilities:
Lease Liability 111,108 86,524 (24,584) 25,205 61,319
Compensated Absences 1,430,502 659,250 1,468,505 (621,247) 286,100 1,182,405 Claims and Judgements 1,696,000 923,371 2,308,000 (311,371) 858,000 1,450,000 Total Governmental
Activities 46,167,858 $ 1,582,621 $ $ 45,405,804 (2,344,675) $ 2,454,305 $ 42,951,499 $ Business-Type Activities:
Other Debt:
Revenue Bonds Payable 29,485,000 $ - $ $ 9,305,000 (20,180,000) $ 1,125,000 $ 8,180,000 $ Add (Less):
Bond Premium 312,225 - 272,364 (39,861) - 272,364
Bond Discount - (251,506) 251,506 - - -
Subtotal Revenue
Bonds Payable 29,545,719 - 9,577,364 (19,968,355) 1,125,000 8,452,364 Other Liabilities:
Compensated Absences 318,588 91,267 288,947 (120,908) 28,895 260,052 Total Business-Type
Activities 29,864,307 $ 91,267 $ $ 9,866,311 (20,089,263) $ 1,153,895 $ 8,712,416 $ Governmental Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amounts of $1,468,505 at June 30, 2022, are expected to be paid in future years from future resources. The General Fund typically has been used in prior years to liquidate the liability for compensated absences.
2016 Lease Revenue Bonds
In July of 2016, the Finance Authority issued Lease Revenue Refunding Bonds, Series 2016 (the 2016 PFA Bonds) in the aggregate principal amount of $30,470,000. The bonds pay interest at a rate from 2.675% to 5.25% payable semiannually on March 1 and September 1, commencing on September 1, 2016. The bonds were issued to refund the City’s 2009 Lease Revenue Bonds, purchase a surety bond for the reserve requirement, purchase a municipal bond insurance policy, and pay costs of issuance of the bonds.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
2016 Lease Revenue Bonds (Continued)
Annual debt service for the 2016 PFA Bonds is as follows:
Year Ending June 30, Principal Interest Total
2023 995,000 $ 926,250 $ 1,921,250 $
2024 1,030,000 888,775 1,918,775
2025 1,065,000 860,550 1,925,550
2026 1,085,000 828,200 1,913,200
2027 1,130,000 783,900 1,913,900
2028 - 2032 6,260,000 3,300,000 9,560,000
2033 - 2037 7,920,000 1,593,413 9,513,413
2038 - 2040 5,475,000 249,675 5,724,675
Total 24,960,000 $ 9,430,763 $ 34,390,763 $
2018 Series A Certificates of Participation
In August of 2018, the Pico Rivera Public Finance Authority issued Local Transportation Sales Tax Revenue Certificates of Participation, Series 2018 (2018 Series A COP), in the aggregate principal amount of $14,695,000. The certificates of participation pay interest at a rate from 3.375% to 5.000% payable semiannually on June 1 and December 1, commencing on December 1, 2018. The proceeds from the sale of the certificates of participation will be used to finance the design, acquisition, and construction of certain local roadway and street improvement projects within the jurisdiction of the City, to purchase a debt service reserve policy, and to pay costs incurred in connection with the execution, sale, and delivery of the certificates of participation.
Annual debt service for the 2018 Series A COP is as follows:
Year Ending June 30, Principal Interest Total
2023 290,000 $ 546,169 $ 836,169 $
2024 300,000 531,669 831,669
2025 320,000 516,669 836,669
2026 335,000 500,669 835,669
2027 350,000 483,919 833,919
2028 - 2032 2,030,000 2,138,594 4,168,594
2033 - 2037 2,570,000 1,603,525 4,173,525
2038 - 2042 3,060,000 1,105,825 4,165,825
2043 - 2047 3,635,000 531,300 4,166,300
2048 805,000 28,175 833,175
Total 13,695,000 $ 7,986,514 $ 21,681,514 $
Business-Type Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amount of $288,947 at June 30, 2022, is expected to be paid in future years from future resources.
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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Water Authority Revenue Bonds, Series 1999 A
The Water Authority issued $17,940,000 of Revenue Bonds (Series 1999 A) dated May 1, 1999. These bonds were issued to finance the lease and improvements of the Water Operations Enterprise Fund.
The Series 1999 A bonds are due in whole or in part through May 2029 and bear interest rates ranging from 3.25% to 5.5%. Interest is payable semiannually on May 1 and November 1 of each year. The bonds are subject to optional redemption in whole or in part on any interest payment due on or after May 1, 2009, by lot, with premiums ranging from 0% to 2%.
The bond indenture requires a Water Rate Stabilization Fund to be held and maintained by the trustee for the benefit of the owners of the bonds. The Water Rate Stabilization Fund is required to have a balance of not less than $600,000. All funds in the Water Rate Stabilization Fund are pledged to secure payment of the bonds. The balance in the Water Rate Stabilization Fund at June 30, 2022, is $600,000.
Annual debt service for the Series 1999 A bonds is as follows:
Year Ending June 30, Principal Interest Total
2023 $ 1,125,000 $ 511,775 $ 1,636,775
2024 1,190,000 449,900 1,639,900
2025 1,255,000 384,450 1,639,450
2026 1,320,000 315,425 1,635,425
2027 1,395,000 242,825 1,637,825
2028 1,470,000 166,100 1,636,100
2029 1,550,000 85,250 1,635,250
Total $ 9,305,000 $ 2,155,725 $ 11,460,725
Water Authority Revenue Bonds, Series 2001
On January 30, 2001, the Water Authority issued at a $796,798 discount, $40,710,000 in Revenue Bonds, 2001 Series. Proceeds of $38,020,100 were used to purchase 2001 Tax Allocation Refunding Bonds from the former Redevelopment Agency. During the fiscal year, the Bonds were paid off, see details on Note 15.
NOTE 7 COMMITMENTS AND CONTINGENCIES
Litigation
Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that they will have a material adverse effect on the accompanying financial statements.
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NOTE 7 COMMITMENTS AND CONTINGENCIES (CONTINUED)
Grant Audit Contingencies
Under the terms of certain grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial.
Economic Development Subsidy
In order to retain the operations of a certain employer within the City, the City has entered into an economic development subsidy agreement with this employer. Under this agreement, the City is to pay the employer an amount equal to 25% of sales tax revenues generated by the employer up to a sales tax revenue threshold and 55% of sales tax revenues in excess of that threshold, payable on or before July 30 for the previous calendar years for the period from January 1, 2017 through December 31, 2027. In no event will the total payments to the employer exceed $3,280,000 for the term of the agreement. Payment on this agreement is contingent on the employer meeting certain operating covenants and other restrictive covenants; accordingly, there has been no accrual included in these financial statements. Payments made to this employer for the year ended June 30, 2022, totaled $376,249.
NOTE 8 DEFINED BENEFIT PENSION PLANS
General Information about the Pension Plans
Plan Descriptions
CalPERS Plan
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, which is an agent multiple-employer defined benefit pension plan administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan are established by state statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website.
City Council Retirement Enhancement Plan
The City also has available a supplemental retirement benefit plan for City Council members (Council Plan) elected on or after July 1, 2002. This plan is a singleemployer defined benefit pension plan administered by the Public Agency Retirement Services (PARS), who serves as the trustee for the Council Plan. As a result of California Public Employees’ Pension Reform Act (PEPRA) amendments, the City has closed this plan to any new City Council members elected or appointed on or after January 1, 2013.
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) Benefits Provided
CalPERS Plan
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, which is equal to one year of full-time employment.
The City has three different retirement benefit tiers based on date of hire:
Tier I: 2.5% at 55 for employees hired on or before June 30, 2012 Tier II: 2.0% at 60 for employees after June 30, 2012
Tier III: 2.0% at 62 for all new members to CalPERS, as defined by Assembly Bill 340/PEPRA
All members are eligible for nonindustrial disability benefits after five 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 cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The CalPERS plans provisions and benefits in effect at June 30, 2021, the measurement date, are summarized as follows:
On or After
June 26, 2012,
Prior to Prior to On or After
Hire Date June 26, 2012 January 1, 2013 January 1, 2013 Benefit Formula 2.5%@55 2%@60 2%@62
Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 - 55 50 - 63 52 - 67
Monthly Benefits, as a Percent of
Eligible Compensation 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 7.30% 7.30% 6.25%
Required Employer Contribution Rates:
Normal Cost Rate 10.970% 11.290% 7.860%
Payment of Unfunded Liability 3,012,659 $ - $ $ -
Miscellaneous Plan
City Council Retirement Enhancement Plan
The Council Plan provides a benefit equal to 4% of final compensation times benefit service, capped at 10 years of service. This plan is a single-employer defined benefit plan. Eligibility for these benefits is defined as reaching age 55 and completing five years of continuous City Council service. Employees terminating employment with the City after five years of service but prior to age 55 will receive a deferred retirement benefit to commence at age 55.
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) Benefits Provided (Continued)
City Council Retirement Enhancement Plan (Continued)
The Council Plan provisions and benefits in effect at June 30, 2022, the measurement date, are summarized as follows:
Council Plan
Prior to
Hire Date January 1, 2013
Benefit Formula 4%@55
Benefit Vesting Schedule 5 years of service
Benefit Payments monthly for life
Retirement Age 55
Monthly Benefits, as a Percent of Eligible Compensation 1.67% to 3.33% Required Employee Contribution Rates 0.0%
Required Employer Contribution Rates 33.70%
Employees Covered
As of the measurement date, the following employees were covered by the benefit terms for each plan:
Miscellaneous Council Plan
Inactive Employees or Beneficiaries
Currently Receiving Benefits 272 5
Inactive Employees Entitled to But
Not Yet Receiving Benefits 153 2
Active Employees 135 1
Total 560 8
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. The Council Plan only requires employer contributions equal to an actuarially determined rate. During the fiscal year June 30, 2022, the City contributed $4,115,660 and $3,591 to the Miscellaneous Plan and Council Plan, respectively.
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NOTES TO FINANCIAL STATEMENTS
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability
The City’s net pension liability for each plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the CalPERS plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020, rolled forward to June 30, 2021, using standard update procedures. The net pension liability of the Council Plan is measured as of June 30, 2022, using an actuarial valuation date of June 30, 2022. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 and June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Council Plan
Valuation Date June 30, 2020 June 30, 2022
Measurement Date June 30, 2021 June 30, 2022
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Normal Cost
Method Method
Actuarial Assumptions:
Discount Rate 7.15% 6.50%
Inflation 2.50% 2.50%
Projected Salary Increase (1) 0.00%
Mortality Rate Table (2) (3)
Post Retirement Benefit Income (4)
(1) Varies by entry age and service.
15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
(3) Pre-retirement and Post-retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Agency CalPERS pension Plans after June 30, 2017
(4) Contract cost-of-living adjustments up to 2.00% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter. (2) The mortality table was developed based on CalPERS-specific data. The table includes Change of Assumptions
There were no changes in the assumptions in the current year.
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for the Miscellaneous Plan and 6.5% for the Council Plan and reflects the long-term expected rate of return for each Plan net of investment expenses and without reduction for administrative expenses. The projection of cash flows used to determine the discount rate of Miscellaneous Plan 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 Miscellaneous Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on the plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Additionally, the Council Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return of
6.5%.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations, as well as the expected pension fund (PERF) cash flows. Using historical returns of all 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 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 equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability (Continued)
Discount Rate (Continued)
The table below reflects the 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. The target allocation shown was adopted by CalPERS Board of Directors effective on July 1, 2015.
New Real Return Real Return
Strategic Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00 % 4.80 % 5.98 %
Global Fixed Income 28.00 1.00 2.62
Inflation Sensitive - 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Estate 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
Total 100.00 %
(a) In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period.
The actuaries of the Council Plan determined that the best-estimate range for the longterm expected rate of return is determined by adding expected inflation to expected longterm real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary’s investment consulting practice as of June 30, 2022.
Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Target Real Rate Real Rate
Asset Class Allocation of Return (a) of Return (a)
U.S. Cash 6.96 % 0.21 % 0.20 %
U.S. Core Fixed Income 35.98 1.95 1.84
U.S. Equity Market 45.73 5.70 4.10
Foreign Developed Equity 5.58 7.30 5.56
Emerging Markets Equity 3.74 9.44 5.97
U.S. REITs 2.01 6.27 4.11
Total 100.00 %
(a) An expected inflation of 1.25% used in calculating the long-term expected rate of return.
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
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NOTES TO FINANCIAL STATEMENTS
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan are as follows:
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2020
(Measurement Date) $ 119,635,936 $ 78,875,641 $ 40,760,295 Changes in the Year:
Service Cost 1,825,934 - 1,825,934
Interest on the Total Pension Liability 8,390,682 - 8,390,682 Differences between Expected and
Actual Experience (227,395) - (227,395)
Changes in Assumptions - - -
Plan-to-Plan Resource Movement - - -
Contribution - Employer - 3,785,703 (3,785,703)
Contribution - Employee - 773,207 (773,207)
Net Investment Income - 17,874,219 (17,874,219)
Administrative Expenses - (78,792) 78,792
Benefit Payments, Including Refunds
of Employee Contributions (5,938,611) (5,938,611) -
Net Changes 4,050,610 16,415,726 (12,365,116)
Balance at June 30, 2021
(Measurement Date) $ 123,686,546 $ 95,291,367 $ 28,395,179 Increase (Decrease)
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JUNE 30, 2022
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Changes in the Net Pension Liability (Continued)
The changes in the net pension liability for the Council Plan are as follows:
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2021
(Measurement Date) 222,309 $ 199,687 $ 22,622 $
Changes in the Year:
Service Cost 748 - 748
Interest on the Total Pension Liability 14,044 - 14,044 Differences between Actual and
Expected Experience - - -
Changes in Economic/Demographic - - -
Changes in Assumptions - - -
Changes in Benefit Terms - - -
Contribution - Employer - 3,591 (3,591)
Contribution - Employee - - -
Net Investment Income - (26,881) 26,881
Administrative Expenses - (959) 959
Benefit Payments, Including Refunds
of Employee Contributions (14,214) (14,214) -
Net Changes 578 (38,463) 39,041
Balance at June 30, 2022
(Measurement Date) 222,887 $ 161,224 $ 61,663 $
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each pension plan, calculated using the discount rate for each plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Current Discount 1% Increase
(6.15%) Rate (7.15%) (8.15%)
Net Pension Liability 44,413,608 $ 28,395,179 $ 15,110,486 $ Miscellaneous
1% Decrease Current Discount 1% Increase
(5.5%) Rate (6.5%) (7.5%)
Net Pension Liability 83,579 $ 61,663 $ 43,279 $
Council
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Changes in the Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS and PARS financial reports, respectively.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense of $1,699,798 and $20,171 for the miscellaneous and council plans, respectively. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension Contributions Subsequent to Measurement Date 4,115,660 $ - $ Differences Between Expected and Actual Experience - (173,109) Change in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Plan Investments - (8,910,340)
Total Miscellaneous Plan 4,115,660 $ (9,083,449) $
Differences Between Expected and Actual Experience 3,728 $ (1,129) $ Change in Assumptions 1,357 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 14,983 -
Total Council Plan 20,068 $ (1,129) $
An amount of $4,115,660 reported as deferred outflows of resources related to contributions to the miscellaneous plan subsequent to the measurement date will be recognized as a reduction of the net pension liability of the miscellaneous plan in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ending June 30, Miscellaneous Council
2023 (2,369,766) $ 6,800 $
2024 (2,119,796) 2,792
2025 (2,135,117) 1,449
2026 (2,458,770) 7,898
2027 - -
Thereafter - -
Payable to the Pension Plans
At June 30, 2022, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2022.
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NOTES TO FINANCIAL STATEMENTS
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NOTE 9 DEFINED CONTRIBUTION PENSION PLANS
The City provides pension benefits for all of its part-time employees through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered by Nationwide Retirement Solutions. All part-time employees are eligible to participate from the date of employment. Federal legislation requires contributions of at least 7.5% to a retirement plan, and the City Council resolved to match the employees’ contributions of 3.75%. The City’s contributions for each employee (and interest earned by the accounts) are fully vested immediately.
For the year ended June 30, 2022, the City’s payroll covered by the defined contribution plan was $1,713,978. The City made employer contributions of $64,056 (3.75% of current covered payroll), and employees contributed $64,056 (3.75% of current covered payroll).
The City also offers its employees a deferred compensation plan created in accordance with Internal Revenue Code 457. The plan, available to all City employees, permits them to defer a portion of their salaries until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The plan assets are under the participants control and are principally invested in demand deposits and mutual funds and are held in a trust for the exclusive benefit of the participants and their beneficiaries. The assets are not the property of the City and, as such, are not subject to the claims of the City’s general creditors. As a result, these assets are not reported in the financial statements.
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
General Information about the OPEB Plan
Plan Description
The City has established an agent multiple-employer Defined Benefit Postemployment Healthcare Plan (DPHP) that provides postretirement medical benefits to retirees through the California Public Employees Medical and Hospital Care Act (PEMCHA) and managed through the California Employers’ Retiree Benefit Trust (CERBT). The plan provides retiree medical benefits to eligible retirees and their eligible dependents.
Employees must retire directly from the City under CalPERS. Employees must also meet basic retirement requirements per CalPERS. That is, employees must be at least age 50 and have at least five years of CalPERS service or qualify for a disability retirement.
The benefits received by the retired employees vary based on the date they were hired by the City. For employees hired on or before June 30, 2012, the City pays the full premium for the retiree and his/her dependents. For employees hired after June 30, 2012, the City contributes the PEMCHA minimum. The PEMCHA minimum is updated annually by the CalPERS board. Regardless of hire date, the same benefit continues to the surviving spouse.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) General Information about the OPEB Plan (Continued)
Plan Description (Continued)
The City’s obligation to pay medical costs for retirees relates only to those medical coverage costs provided through CalPERS. The City is not obligated to pay Medicare Part B premiums for those retirees who are age 65 or above and who are enrolled in a supplemental Medicare plan. When the retiree reaches age 65, the Basic Medical Plan is required to be transferred to a supplemental Medicare plan. A separate financial report is not prepared for the plan.
Employees Covered
As of the measurement date of June 30, 2021, the following current and former employees were covered by the benefit terms under the plan:
Inactive Employees or Beneficiaries
Currently Receiving Benefits 113
Inactive Employees or Beneficiaries Entitled to but
not yet Receiving Benefits 20
Active Employees 137
Total 270
Contributions
The DPHP and its contribution requirements are established by City policy and may be amended by the City Council. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2022, the City’s cash contributions were $1,052,248 in cash benefit payments and $954,000 contributions to the trust, estimated implied subsidy was $151,000 and administrative expense paid by were $2,455 resulting in total contributions of $2,159,703.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Total OPEB Liability
Actuarial Assumptions
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.25%
Inflation 2.50%
Projected Salary Increase 2.75% per annum, in aggregate Expected Long-Term Investment Rate of Return 6.25%
Healthcare Cost Trend Rates 6.25% Non-Medicare/5.65% Medicare (Non-Kaiser), 4.6% Medicare (Kaiser)
decreasing to 3.75% in 2076
Mortality Derived from CalPERS 2000-2019
experience study
The actuarial assumptions used in the June 30, 2021, valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.
The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2021, the measurement date, are summarized in the following table:
New Long-Term
Strategic Expected Real
Asset Class Allocation Rate of Return
CERBT:
Global Equity 59.00 % 4.56 %
Fixed Income 25.00 0.78
TIPS 5.00 (0.08)
Commodities 3.00 1.22
REITs 8.00 4.06
Total 100.00 %
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Total OPEB Liability (Continued)
Actuarial Assumptions (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the DPHP’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on DPHP plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Change in Assumptions
Discount rate was updated based on newer capital market assumptions, inflation rate decreased 25 basis point, demographic assumptions were updated to CalPERS 2000-2019 Experience Study. mortality improvement scale was updated to Scale MP-2021, medical trend rate for Kaiser Senior Advantage was decreased and Medicare Advantage age-related claims were removed.
Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2020
(Measurement Date) $ 27,185,246 $ 4,930,408 $ 22,254,838 Changes in the Year:
Service Cost 568,492 - 568,492
Interest on the Total
OPEB Liability 1,832,841 - 1,832,841
Differences Between Actual
and Expected Experience (5,246,807) - (5,246,807)
Changes in Assumptions (412,400) - (412,400)
Changes in Benefit Terms - - -
Contribution - Employer - 1,203,599 (1,203,599)
Net Investment Income - 1,356,239 (1,356,239)
Administrative Expenses - (4,388) 4,388
Benefit Payments (1,201,078) (1,201,078) -
Net Changes (4,458,952) 1,354,372 (5,813,324)
Balance at June 30, 2021
(Measurement Date) $ 22,726,294 $ 6,284,780 $ 16,441,514 Increase (Decrease)
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NOTES TO FINANCIAL STATEMENTS
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Changes in the Net OPEB Liability (Continued)
Change of Benefit Terms
There were no changes of benefit terms.
Subsequent Events
CalPERS approved new CERBT asset allocations in March 2022. This is not expected to impact the expected long-term rate of return assumption for CERBT Strategy 1.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.25%) or one percentage point higher (7.25%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability 19,243,555 $ 16,441,514 $ 14,101,033 $ Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.25% Non-Medicare/4.65% Medicare (Non-Kaiser)/3.6% Medicare (Kaiser) decreasing to 2.75%) or one percentage point higher (7.25% Non-Medicare/6.65% Medicare (Non-Kaiser)/5.6% Medicare (Kaiser) decreasing to
4.75%) than the current healthcare cost trend rates:
Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
Net OPEB Liability 13,846,633 $ 16,441,514 $ 19,594,631 $
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB expense of $557,609. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to Measurement Date $ 2,159,703 $ - Differences Between Actual and Expected Experience - (5,544,145) Change in Assumptions - (829,925)
Net Differences Between Projected and Actual Earnings
on Plan Investments - (726,864)
Total $ 2,159,703 $ (7,100,934)
An amount of $2,159,703 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Year Ending June 30, Amount
2023 (1,509,373) $
2024 (1,499,170)
2025 (1,504,318)
2026 (1,178,035)
2027 (895,567)
Thereafter (514,471)
Payable to the OPEB Plan
At June 30, 2022, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2022.
NOTE 11 RISK MANAGEMENT
The City began its self-insured liability program with CSAC Excess Insurance Authority (CSAC) on July 1, 2017. Claims occurring prior to July 1, 2017, are fully covered by California Joint Powers Insurance Authority (CJPIA). The City is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City handled those risks with the purchase of commercial insurance. The City pays an annual premium to the CSAC pool for its general liability and workers’ compensation insurance coverage. For its general liability insurance, the City, through CSAC has a self-insured retention amount of $100,000 per occurrence.
General claims above $100,000 up to $25,000,000 are shared by the pool.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 11 RISK MANAGEMENT (CONTINUED)
For its workers’ compensation liability insurance, the City, through CSAC has a self-insured retention amount of $125,000 per occurrence. Workers’ compensation claims above $125,000 up to statutory limits are shared by the pool. The City retains a risk of loss due to the fact that actual losses may exceed estimated claims or overage amounts. The City also maintained property coverage, pollution coverage, master crime coverage and cyber liability coverage with CSAC.
Claims, expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. At June 30, 2022, $1,139,000 has been accrued for general liability claims and $1,169,000 has been accrued for workers compensation claims. This amount represents an estimate of amounts to be paid for reported claims and incurred but not yet reported claims based upon past experience, modified for current trends, and information. While the ultimate amount of losses incurred through June 30, 2022, is dependent on future developments, based upon information from the City Attorney, the City’s claims administrators, and others involved with the administration of the programs, City management believes the accrual is adequate to cover such losses.
Changes in the claims liability amount in fiscal years ended June 30, 2022 and 2021, are as follows:
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Year Liability Estimates Payments Liability
2020-2021 1,404,000 $ 562,514 $ (270,514) $ 1,696,000 $ 2021-2022 1,696,000 923,371 (311,371) 2,308,000
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The City’s governmental fund balances at June 30, 2022, are tabulated below, followed by explanations as to the nature and purpose of each classification.
Special
Revenue Funds
Housing 2018 Other Total
Agency Series A Govt. Govt.
General Section 8 COP Funds Funds
Nonspendable:
Long-Term Receivables/
Advances 26,032,325 $ - $ - $ - $ 26,032,325 $
Inventories 3,825 - - - 3,825
Prepaid Items 102,954 - - - 102,954
Restricted for:
Housing Agency 475,051 - - - 475,051
State Gas Tax - - - 4,543,892 4,543,892
HOME - - - 2,579,299 2,579,299
CalHome Grant - - - 703,303 703,303
Lighting Assessment District - - - 1,309,912 1,309,912
Park Development - - - 229,025 229,025
Prop A - - - 3,319,585 3,319,585
Prop C - - - 3,154,909 3,154,909
Measure R - - - 1,682,727 1,682,727
Measure M - - - 387,616 387,616
AQMD - - - 454,527 454,527
Economic Development
Assistance Grant - - - 963,014 963,014
Image Enhancement - - - 567,731 567,731
Reach Grants - - - 492,506 492,506
Cable/PEG Support - - - 300,872 300,872
Housing Agency LMIHF - - - 2,668,604 2,668,604
Measure W - - - 1,161,998 1,161,998
Paramount/Mines Landscape
Maintenance District - - - 57,636 57,636
Pension Contribution 1,180,688 - - - 1,180,688
Capital Improvements - - 12,376,791 - 12,376,791
Committed to:
Emergency Reserve/
Economic Stabilization/
Stimulus 24,517,211 - - - 24,517,211
Assigned to:
OPEB Unfunded Liability - 822,080 - - 822,080
Leave Liability - 195,780 - - 195,780
Equipment Replacement 846,020 - - - 846,020
Self-insured Retention 500,000 - - - 500,000
Bond Refinancing/Reserve 1,000,000 - - - 1,000,000
Capital improvements 2,000,000 - - 11,590,609 13,590,609 Deferred Maintenance 1,000,000 - - - 1,000,000
Energy Efficiency - 1,000,000 - - 1,000,000
Economic Sustainability - 1,000,000 - - 1,000,000
Open Purchase Orders 1,277,109 - - - 1,277,109
Other Continuing Appropriations 5,285,802 - - - 5,285,802 Unassigned 6,458,368 - - 5,955,494 (502,874)
Total Fund Balances 73,222,162 $ 475,051 $ 12,376,791 $ 35,664,891 $ 121,738,895 $ Capital
Projects Fund
Nonspendable Fund Balances
Long-term receivables/advances cannot be spent since they are not in spendable form.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS (CONTINUED) Updated Reserve Policies: Committed and Assigned Fund Balances The City Council first adopted updated comprehensive reserve policies conforming to GASB Statement 54 on June 14, 2016. Annually, as part of the budget development process, these policies are updated and approved by the City Council.
The latest version of the policies reconfirmed a commitment for “Emergency Reserve/ Economic Uncertainty Reserve” and established assignments.
Committed Fund Balances
Committed funds describe a portion of the fund balance that is constrained by limitations imposed by the City Council. The City Council imposed limitation must occur no later than the close of the reporting period (i.e., end of the fiscal year) and remains binding unless removed under the same manner. A commitment is made by City Council adoption of a resolution that states the amount and purpose of the commitment.
The City Council adopted reserve policies effective June 12, 2018, that established a commitment for emergencies/economic stabilization equal to an amount calculated as 25% of the General Fund’s annual operating revenues. On July 28, 2020, the City Council adopted revised risk-based General Fund Reserve Policies, which increased the General Fund’s commitment to emergencies/economic stabilization from 25% to 50% of the General Fund’s annual operating revenues. For the fiscal year ending June 30, 2022, this commitment is equal to $24,517,211.
Generally, appropriations and access to these committed funds will be reserved for emergency situations. Examples of such emergencies include, but are not limited to the following:
Reduction in revenue equal to or greater than 20% of adopted General Fund revenues in a given fiscal year.
An unplanned major catastrophic event such as a natural disaster requiring expenditures over 10% of the General Fund-adopted appropriations in a given fiscal year.
Unfunded and/or unpredictable state or federal legislative or judicial mandates. Any other unforeseen event that causes the City to expend funds in excess of 10% of General Fund-adopted appropriations in a given fiscal year.
Assigned Fund Balances
Assigned funds describe the portion of the General Fund reserves that reflect the use of resources by the City Council intended to provide a means and source of funding for various near-term and long-term needs. This policy grants authority to assign funds to the Director of Finance. Assignment of reserves may be modified by the Director of Finance as part of the annual budget process. Use of assigned funds requires formal action by the City Council to appropriate funds in the appropriate account.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS (CONTINUED) Assigned Fund Balances (Continued)
Specifically, this reserve policy establishes assignments for the following short-term and long-term needs at the various levels specified:
OPEB Unfunded Liability
Leave Liability
Equipment Replacement
Self-Insured Retention
Bond Refinancing/Reserve
Capital Improvement (Unfunded/Unprogrammed)
Deferred Maintenance
Energy Efficiency
Economic Sustainability
For the fiscal year ended June 30, 2022, total assignments equal $14,926,791.
Unassigned Fund Balance
The General Fund may have net resources in excess of what is classified in one of the four previous categories (nonspendable, restricted, committed, or assigned). This amount is presented as the unassigned fund balance amount. Only the General Fund can report a positive unassigned fund balance. However, all governmental funds can report a negative unassigned fund balance.
This policy dictates that any amount of fund balance will be classified as “unassigned” after funding the emergency/economic stabilization reserve commitment plus the various assigned reserves made in accordance with the preceding section. This policy allows for “unassigned” funds and places no specific restrictions on their use. In general, the City Council could choose to utilize “unassigned” fund balance for one-time projects or uses in a given fiscal year. For the fiscal year ended June 30, 2022, the General Fund unassigned fund balance is $6,458,368.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 13 OTHER REQUIRED DISCLOSURES
Deficit Fund Balances or Net Position
The following funds reported deficit fund balances or net position at June 30, 2022:
Other Governmental Funds:
Community Development Block Grant Special
Revenue Fund 1,762 $
County Grants Special Revenue Fund 107,244
State Grants Special Revenue Fund 155,554
Sewer Maintenance Special Revenue Fund 20,548
Transportation Development Act Special Revenue Fund 5,492 Federal Grants Special Revenue Fund 212,274
Other Enterprise Fund - Golf Course Fund 2,939,359
Management expects to eliminate the deficits with the collection of unavailable revenues or transfers from the General Fund. The Golf Course Enterprise Fund deficit will be eliminated through a combination of right-sizing of operations, improved revenue collection, and a longterm advance from the General Fund.
Excess of Expenditures Over Appropriations
Expenditures exceeded budgeted appropriations in the following funds:
Final Budget Actual Variance
Major Funds:
Housing Agency Section 8
Special Revenue Fund 5,363,930 $ 6,075,409 $ (711,479) $ Other Governmental Funds:
HOME Grant
Special Revenue Fund - 193 (193)
NOTE 14 PICO RIVERA INNOVATIVE MUNICIPAL ENERGY
The City has registered as a Community Choice Aggregator (CCA) and established Pico Rivera Innovative Municipal Energy (PRIME) for the purpose of delivering electric services to certain customers located within the City of Pico Rivera. The City entered into an administrative services agreement with California Choice Energy Authority (CCEA), for administration, energy procurement, contract negotiation, contract administration, resource planning services and other services provided to the PRIME program. This contract has a term of the longer of three years from the effective date of April 11, 2017, or the longest term of any energy contract to which the CCEA is a party on behalf of the City. Payments to CCEA for the fiscal year ended June 30, 2022 totaled $678,776.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 14 PICO RIVERA INNOVATIVE MUNICIPAL ENERGY (CONTINUED) CCEA master “Take or Pay” agreements with different energy providers that PRIME uses to purchase energy to provide for future electric capacity for customers. PRIME enters into separate contracts with the providers and these contracts constitute an obligation of PRIME to purchase a set volume of electricity at a set price throughout the terms of the contracts.
During the fiscal year ended June 30, 2022, the total payments made by PRIME under the take or pay contracts was $15,565,916. At June 30, 2022, the remaining take or pay contracts for PRIME is $11,102,689 through December 2036.
NOTE 15 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency to the City of Pico Rivera Redevelopment Agency on February 1, 2012, as a result of the dissolution of the former Redevelopment Agency.
The City is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to these assets and liabilities are as follows:
Capital Assets
Balance at Balance at
July 1, 2021 Additions Deletions June 30, 2022
Capital Assets, Not Being
Depreciated:
Land $ 258,023 $ - $ - $ 258,023
Total Capital Assets, Not
Being Depreciated 258,023 - - 258,023
Capital Assets, Being Depreciated:
Structures and Improvements 162,237 - - 162,237
Furniture and Equipment 5,110 - - 5,110
Infrastructure 50,615 - - 50,615
Total Capital Assets,
Being Depreciated 217,962 - - 217,962
Less Accumulated Depreciation:
Structures and Improvements (131,641) (3,238) - (134,879) Furniture and Equipment (5,110) - - (5,110)
Infrastructure (19,786) (1,131) - (20,917)
Total Accumulated
Depreciation (156,537) (4,369) - (160,906)
Total Capital Assets,
Being Depreciated, Net 61,425 (4,369) - 57,056
Successor Agency Activities,
Capital Assets, Net $ 319,448 $ (4,369) $ - $ 315,079
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Loans Receivable
Two low-interest loans were issued by the former Redevelopment Agency for a commercial rehabilitation project. The loans bear interest rates from 1% to 3% and payments on these loans are to begin in 10-26 years from the date of the loan. The amount of the loans outstanding at June 30, 2022, is $332,597.
Payable to the City of Pico Rivera
The City had an agreement with the former Redevelopment Agency providing for the advance of funds to finance improvements and operations relating to and within the former Redevelopment Agency’s project areas. The former Redevelopment Agency had been accruing interest on the original advances at a rate of 12% per annum, which were adjusted retroactively to 7% in fiscal year 2011-12. In fiscal year 2012-13, the Department of Finance ruled that the rate for which interest was accrued on advances to former redevelopment agencies could not exceed effective LAIF rates. Therefore, the City retroactively recalculated interest using existing LAIF rates. As a result, the balance of the advance was written down by $3,916,128 during fiscal year 2012-13. At June 30, 2022, the net advance balance was $17,814,118, which included accrued interest of $8,651,548 and a 25% reserve against this balance totaling $4,453,530 due to the estimated collectability by the General Fund as a result of the winding down of the affairs of the former Redevelopment Agency.
Sales Tax Loan from the City of Pico Rivera
The City and former Redevelopment Agency entered into an agreement whereby the City will defer its portion of sales tax revenues (City Deferrals) generated within the project area and advance the monies to the former Redevelopment Agency to allow the former Redevelopment Agency to meet its debt service obligations. The former Redevelopment Agency had been accruing interest on the original deferrals at a rate of 7%. In fiscal year 2012-13, the Department of Finance ruled that the rate for which interest was accrued on advances to the former Redevelopment Agencies could not exceed effective LAIF rates. Therefore, the City retroactively recalculated interest using existing LAIF rates. As a result, the balance of the advance was written down by $6,463,413 during fiscal year 2012-13. At June 30, 2022, the balance of the City Deferrals including interest was $29,275,398.
In previous years, the sales tax loan from the City was reported as a commitment with the interest rate and outstanding balance described in the footnotes, but the sales tax loan was not recorded as a liability in the financial statements due to uncertainty as to the City’s intent to enforce collection. In March 2011, the City Council took action and approved a resolution acknowledging the receivable owed by the former Redevelopment Agency and affirming the City’s willingness to enforce collection of the amount.
Accordingly, the liability of $29,275,398 has been recorded in the statement of fiduciary net position. Under the terms of the agreement, payments are to be made by the Successor Agency to the City to the extent money is available. Due to the payment terms, the long-term nature of the loan, and management’s expectation that repayment will not begin for some time, the City has fully reserved against the receivable on the statement of net position.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Payable to the City of Pico Rivera (Continued)
Sales Tax Loan from the City of Pico Rivera (Continued) AB 1484 specifies the actions to be taken and the method of repayment for advances and loans between the Successor Agency, the City, and the Water Authority. Upon application and approval by the Successor Agency and the oversight board, loan agreements (advances) entered into by the former Redevelopment Agency and the City shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the advances were for legitimate redevelopment purposes.
The advances are to be repaid with a defined schedule over a reasonable term of years at an interest rate not to exceed the interest rate earned by the funds deposited into LAIF. The annual advance repayments are subject to certain limitations, including the requirement that 20% of all advance repayments are to be transferred to the Housing Agency Low and Moderate Income Housing Special Revenue Fund to fund Housing Successor Agency activity. Additionally, repayments are subject to a formula distribution and have a lower priority for repayment as described in AB 1484 (Health and Safety Code Section 34191.4(2)(A).
Management believes, in consultation with legal counsel, that the obligations of the Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency under the requirements of the Dissolution Act and AB 1484. The City’s position on this issue is not a position of settled law, and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would not be in favor of the City.
Payable to the Pico Rivera Housing Assistance Agency
Prior to dissolution, the former Redevelopment Agency had borrowed low- and moderate-income housing set-aside funds to make the payments to the Supplemental Education Revenue Augmentation Fund in accordance with the State of California mandate.
These loans are to be repaid to the Redevelopment Agency in its capacity as the Successor Agency. Total outstanding balance at June 30, 2022 was $1,639,164.
Although the repayment terms on these loans were due in a previous period, the City does not expect the Successor Agency to the former Redevelopment Agency to have enough residual for payment of these obligations in the near future, and therefore, this liability is considered long-term. Repayment funding availability is calculated by the Los Angeles County Auditor-Controller’s office twice a year and will be requested when substantial funds are available for the repayment of these loans.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Payable to the Pico Rivera Water Authority
The Water Authority had an agreement with the former Redevelopment Agency dated January 15, 1990, providing for the advance of funds to finance improvements relating to and within the former Redevelopment Agency’s project areas. Interest had been accrued on these advances at a rate of 7%. In fiscal year 2012-13, the Department of Finance ruled that the rate for which interest was accrued on advance to former Redevelopment Agency could not exceed effective LAIF rates. Therefore, interest has been retroactively recalculated using LAIF rates. As a result, the balance of the advance was written down by $89,272 during fiscal year 2012-13. At June 30, 2022, the net advance balance was $252,932, which includes accrued interest of $122,932 and a 25% reserve against this balance totaling $63,233 due to the estimated collectability by the Water A as a result of the winding down of the affairs of the former Redevelopment Agency.
In January 2001, the Water Authority used the proceeds of its Revenue Bonds, Series 2001 (see Note 6) to purchase the former Redevelopment Agency’s Tax Allocation Refunding Bonds, Series 2001 issue for $38,020,100, which was recorded by the former Redevelopment Agency as advances from the Water Authority. Principal and interest payments on the advance are scheduled to cover and coincide with the Water Authority’s debt service requirements on its Revenue Bonds, Series 2001. During the year, the Water Authority’s advances to the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund was paid off from the proceeds of the 2021 Tax Allocation Refunding Bonds.
Tax Allocation Refunding Bonds
On December 16, 2021, the Successor Agency issued Tax Allocation Refunding Bonds, Series 2021 (the 2021 SA TARBs), in the aggregate principal amount of $13,470,000.
These bonds were issued to refinance the 2001 Successor Agency’s Tax Allocation Refunding Bonds, Series 2001 (2001 SA TARBs). At the closing date, the outstanding principal balance on the 2001 SA TABs was $18,242,289. The City contributed $5,000,000 from the General Fund Bond Refinancing Reserve to fully defease the outstanding 2001 SA TARBs.
The redemption price of the 2001 TABs ($18,242,289) was applied to 1) redeem and defease the Pico River Water Authority Revenue Bonds, 2001 Series A (2001 Water Bonds), in full, at a redemption price of approximately $17,261,471, and 2) pay $980,818 into the Water Fund. In addition, approximately $2,100,000 held by U.S. Bank, as trustee for the 2001 Water Bond, was transferred by the Trustee to the Water Fund upon the defeasance of the 2001 Water bonds.
The Bond refunding resulted in cash flow difference of $10,870,632 and an economic gain of $4,268,954 (difference between present values of the old debt and new debt service payment, net of City contribution of $5,000,000).
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Tax Allocation Refunding Bonds (Continued)
The 2021 SA TARBs pay interest at a rate of 1.5% payable semiannually on June 1 and December 1, commencing on June 1, 2022. Annual debt service for the 2021 SA TARBs is as follows:
Year Ending June 30, Principal Interest Total
2023 3,500,000 $ 176,972 $ 3,676,972 $
2024 3,615,000 123,254 3,738,254
2025 3,720,000 67,874 3,787,874
2026 2,635,000 19,895 2,654,895
Total 13,470,000 $ 387,995 $ 13,857,995 $
Payable to the County of Los Angeles
The former Redevelopment Agency and County entered into an agreement whereby the County will defer its share of tax increment (County Deferral) generated within the project area and remit it to the Successor Agency to meet the former Redevelopment Agency’s debt service obligations. The County Deferral accrues simple interest equal to 5% of the current year’s annual deferral amount. The County Deferral is to be repaid with the excess of property tax revenues received by the Successor Agency in excess of its debt payment requirements. The County Deferral is recorded as revenue when received. At June 30, 2022, the balance of the County Deferral including interest was $46,082,854. There is no fixed payment schedule for the repayment of the County Deferral.
Additionally at June 30, 2022, the Successor Agency also has a payable to the County of Los Angeles for the gross proceeds received on the sale of land totaling $1,792,702. (90)
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CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (93)
2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period: 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 1,825,934 $ 1,776,130 $ 1,749,749 $ 1,668,403 $ 1,660,852 $ 1,410,606 $ 1,411,834 $ $ 1,447,138 Interest on Total Pension Liability 8,390,682 8,115,666 7,844,359 7,428,615 7,124,315 6,980,849 6,826,754 6,624,512 Differences Between Expected
and Actual Experience (227,395) (96,456) 2,207,380 1,411,957 (1,258,219) (1,495,731) (845,358) - Changes in Assumptions - - - (828,380) 5,943,062 - (1,681,626) - Changes in Benefits - - - - - - - -
Benefit Payments, Including Refunds of
Employee Contributions (5,938,611) (5,747,216) (5,685,436) (5,375,555) (4,857,602) (4,769,549) (4,686,299) (4,544,162) Net Change in Total Pension Liability 4,050,610 4,048,124 6,116,052 4,305,040 8,612,408 2,126,175 1,025,305 3,527,488 Total Pension Liability - Beginning of Year 119,635,936 115,587,812 109,471,760 105,166,720 96,554,312 94,428,137 93,402,832 89,875,344 Total Pension Liability - End of Year (a) $ 119,635,936 123,686,546 $ 115,587,812 $ 109,471,760 $ 105,166,720 $ 96,554,312 $ 94,428,137 $ 93,402,832 $ Plan Fiduciary Net Position:
Plan-to-Plan Resource Movement - $ - $ $ - $ (171) $ - $ - $ 12 $ - Contributions - Employer 3,785,703 3,510,945 3,152,902 2,902,032 2,552,475 2,352,483 2,240,763 2,552,214 Contributions - Employee 773,207 824,722 817,187 838,924 741,941 681,785 716,687 671,298 Net Investment Income 17,874,219 3,795,360 4,813,665 5,870,873 7,274,632 328,225 1,459,065 10,012,754 Administrative Expenses (78,792) (107,987) (52,319) (314,561) (94,514) (39,896) (73,643) - Benefit Payments (5,938,611) (5,747,216) (5,685,436) (5,375,555) (4,857,602) (4,769,549) (4,686,299) (4,544,162) Net Change in Plan Fiduciary Net Position 16,415,726 2,275,824 3,045,999 3,921,542 5,616,932 (1,446,952) (343,415) 8,692,104 Plan Fiduciary Net Position - Beginning of Year 78,875,641 76,599,817 73,553,818 69,632,276 64,015,344 65,462,296 65,805,711 57,113,607 Plan Fiduciary Net Position - End of Year (b) $ 78,875,641 95,291,367 $ 76,599,817 $ 73,553,818 $ 69,632,276 $ 64,015,344 $ 65,462,296 $ $ 65,805,711 Net Pension Liability - Ending (a)-(b) $ 40,760,295 28,395,179 $ 38,987,995 $ 35,917,942 $ 35,534,444 $ 32,538,968 $ 28,965,841 $ $ 27,597,121 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 77.04% 65.93% 66.27% 67.19% 66.21% 66.30% 69.32% 70.45% Covered Payroll $ 11,613,022 $ 11,103,243 $ 10,774,630 $ 9,958,832 $ 9,605,299 $ 8,817,942 $ 8,675,393 $ 8,586,318 Net Pension Liability as Percentage of
Covered Payroll 244.51% 367.10% 361.85% 360.66% 369.95% 369.01% 333.89% 321.41%
NOTES TO SCHEDULE
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014, measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015, measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
The accounting discount rate reduced from 7.65% to 7.15% From fiscal year June 30, 2018 to June 30, 2019:
Demographic assumptions and inflation rate were changed in accordance with CalPERS Experience Study and Review of Actuarial Assumptions December 2017
From fiscal year June 30, 2019 to June 30, 2020:
There were no changes in assumptions.
From fiscal year June 30, 2020 to June 30, 2021:
There were no changes in assumptions.
From fiscal year June 30, 2021 to June 30, 2022:
There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation; therefore, only eight years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (94)
2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution 4,115,660 $ 3,510,945 $ 3,511,156 $ 3,152,687 $ 2,902,032 $ 2,552,475 $ 2,352,483 $ 2,240,763 $ Contributions in Relation to the Actuarially
Determined Contributions (4,115,660) (3,510,945) (3,511,156) (3,152,687) (2,902,032) (2,552,475) (2,352,483) (2,240,763) Contribution Deficiency (Excess) - $ - $ - $ - $ - $ - $ - $ - $ Covered Payroll 12,290,342 $ 11,613,022 $ 11,103,243 $ 10,774,630 $ 9,958,832 $ 9,605,299 $ 8,817,942 $ 8,675,393 $ Contributions as a Percentage of
Covered Payroll 33.49% 30.23% 31.62% 29.26% 29.14% 26.57% 26.68% 25.83% Notes to Schedule:
Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to
Determine Contribution Rates:
Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1) (1) (1) (1)
Asset Valuation Method Market Value Market Value Market Value Market Value Market Value Market Value Market Value Market Value Inflation 2.75% 2.75% 2.75% 2.50% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) (2)
Investment Rate of Return 7.375% (3) 7.375% (3) 7.375% (3) 7.15% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 2.5% at 55 and 2% at 60 retirement age from 50-67, 2% at 62 retirement age 52-67 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by CalPERS Board of Directors.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
COUNCIL PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (95)
2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period: June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability:
Service Cost 748 $ 2,351 $ 2,283 $ 6,794 $ 6,533 $ 6,809 $ 6,547 $ 6,329 $ Interest on Total Pension Liability 12,821 14,044 11,252 11,243 11,848 11,642 11,117 10,751 Differences Between Expected
and Actual Experience - - - - - - - (9,032)
Changes in Economic/Demographic - 22,057 22,367 - - (16,557) - - Changes in Assumptions - 2,623 (2,461) - - 8,226 7,389 - Benefit Payments, Including Refunds of
Employee Contributions (14,214) (14,492) (14,412) (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Total Pension Liability 20,276 578 24,113 5,638 16,251 (8,602) 5,595 6,654 Total Pension Liability - Beginning of Year 222,309 202,033 177,920 172,282 180,884 164,633 159,038 152,384 Total Pension Liability - End of Year (a) 222,309 222,887 202,033 177,920 172,282 180,884 164,633 159,038 Plan Fiduciary Net Position:
Contributions - Employer 3,591 7,183 10,774 14,227 18,648 17,266 18,647 17,957 Contributions - Employee - - - - - - - -
Net Investment Income 42,720 (26,881) 3,916 9,833 10,214 13,784 83 2,392 Administrative Expenses (959) (925) (834) (808) (762) (655) (575) (540) Benefit Payments (14,214) (14,492) (14,412) (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Plan Fiduciary Net Position 34,486 (38,463) 10,853 (556) 17,674 19,969 7,729 9,383 Plan Fiduciary Net Position - Beginning of Year 199,687 165,201 165,757 154,904 137,230 117,261 109,532 100,149 Plan Fiduciary Net Position - End of Year (b) 199,687 161,224 165,201 165,757 154,904 137,230 117,261 109,532 Net Pension Liability - Ending (a)-(b) $ 22,622 61,663 $ 36,832 $ 12,163 $ 17,378 $ 43,654 $ 47,372 $ 49,506 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 72.33% 89.82% 81.77% 93.16% 89.91% 75.87% 71.23% 68.87% Covered Payroll 10,655 $ 9,865 $ 32,924 $ 39,460 $ 55,406 $ 57,622 $ 55,406 $ 57,622 $ Net Pension Liability as Percentage of
Covered Payroll 578.72% 229.32% 111.87% 30.82% 31.36% 75.76% 85.50% 85.92%
NOTES TO SCHEDULE
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
The June 30, 2015, valuation reflected assumption changes (mortality, disability, and inflation) consistent with the 2014 CalPERS Experience Study. * Fiscal year 2015 was the first year of implementation; therefore, only eight years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
COUNCIL PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (96)
2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 7,715 $ 7,715 $ 9,938 $ 17,226 $ 17,900 $ 18,616 $ 17,266 $ 17,957 Contributions in Relation to the Actuarially
Determined Contributions (3,591) (7,183) (10,774) (14,227) (18,648) (17,266) (18,647) (17,957) Contribution Deficiency (Excess) $ 4,124 $ 532 $ (836) $ 2,999 $ (748) $ 1,350 $ (1,381) $ - Covered Payroll $ 10,655 $ 9,865 $ 32,924 $ 39,460 $ 55,406 $ 57,622 $ 55,406 $ 57,622 Contributions as a Percentage of
Covered Payroll 33.70% 72.81% 32.72% 36.05% 33.66% 29.96% 33.66% 31.16% Notes to Schedule:
Valuation Date 6/30/2021 6/30/2019 6/30/2019 6/30/2017 6/30/2017 7/1/2015 7/1/2015 6/30/2013 Methods and Assumptions Used to
Determine Contribution Rates:
Single Employer Plan Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age normal normal normal normal normal normal normal normal Amortization Method Level dollar, Level dollar, Level dollar, Level dollar, Level dollar, Level dollar, Level dollar, Level dollar, closed period closed period closed period closed period closed period closed period closed period closed period Remaining Amortization Period 3-year fixed 3-year fixed 3-year fixed 5-year fixed 5-year fixed 7-year fixed 7-year fixed 9-year fixed Asset Valuation Method Market Market Market Market Market Market Market Market Inflation 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 3.00% Salary Increases 0.00% 3.00% 3.00% 4.00% 4.00% 4.00% 4.00% 4.00% Investment Rate of Return 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 7.00% 7.00% Retirement Age 55 years 55 years 55 years 55 years 55 years 55 years 55 years 55 years Mortality (1) (1) (1) (1) (1) (1) (1) (1)
(1) Pre-Retirement: Consistent with the nonindustrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (97)
Fiscal Year-End 2022 2021 2020 2019 2018
Measurement Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service Cost 568,492 $ 585,937 $ 605,152 $ 614,912 $ 597,000 $ Interest on Total OPEB Liability 1,832,841 1,790,952 1,873,005 1,792,862 1,717,000 Differences Between Expected and Actual Experience (5,246,807) - (2,149,380) - - Changes in Assumptions (412,400) (495,461) (269,581) - - Benefit Payments (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Total OPEB Liability 595,702 (4,458,952) (1,166,230) 1,211,774 1,102,000 Total OPEB Liability - Beginning of Year 27,185,246 26,589,544 27,755,774 26,544,000 25,442,000 Total OPEB Liability - End of Year (a) 22,726,294 27,185,246 26,589,544 27,755,774 26,544,000 Plan Fiduciary Net Position:
Contributions - Employer 1,203,599 1,288,526 1,227,833 1,199,000 5,212,000 Net Investment Income 1,356,239 168,441 277,177 331,815 165,000 Administrative Expenses (4,388) (5,129) (3,369) (10,734) (1,000) Benefit Payments (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Plan Fiduciary Net Position 1,354,372 166,112 276,215 324,081 4,164,000 Plan Fiduciary Net Position - Beginning of Year 4,930,408 4,764,296 4,488,081 4,164,000 - Plan Fiduciary Net Position - End of Year (b) 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 Net OPEB Liability - Ending (a)-(b) 16,441,514 $ 22,254,838 $ 21,825,248 $ 23,267,693 $ 22,380,000 $ Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 27.65% 18.14% 17.92% 16.17% 15.69% Covered - Employee Payroll 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 $ 9,770,000 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 126.55% 178.40% 176.94% 225.59% 229.07%
NOTES TO SCHEDULE
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2017 to June 30, 2018:
There were no changes in assumptions.
From fiscal year June 30, 2018 to June 30, 2019:
There were no changes in assumptions.
From fiscal year June 30, 2019 to June 30, 2020:
Demographic assumptions were updated to CalPERS 1997-2015 Experience Study.
Mortality improvement scale was updated to Scale MP-2019 From fiscal year June 30, 2020 to June 30, 2021:
ACA excise tax removed
From fiscal year June 30, 2021 to June 30, 2022:
Discount rate was updated based on newer capital market assumptions ad inflation rate decreased 25 basis point Demographic assumptions were updated to CalPERS 2000-2019 Experience Study.
Medical trend rate decreased for Kaiser Senior Advantage and Medicare Advantage age-related claims removed Mortality improvement scale was updated to Scale MP-2021 * Fiscal year 2018 was the first year of implementation; therefore, only five years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (98)
2022 2021 2020 2019 2018
Actuarially Determined Contribution 3,135,000 $ 3,065,000 $ 2,790,000 $ 2,739,000 $ 2,688,000 $ Contributions in Relation to the Actuarially
Determined Contributions (2,159,703) (1,203,599) (1,288,526) (1,227,833) (1,199,000) Contribution Deficiency (Excess) 975,297 $ 1,861,401 $ 1,501,474 $ 1,511,167 $ 1,489,000 $ Covered - Employee Payroll 12,284,836 $ 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 $ Contributions as a Percentage of
Covered - Employee Payroll 17.58% 9.26% 10.33% 9.95% 11.62% Notes to Schedule:
Valuation Date 6/30/2021 6/30/2019 6/30/2019 6/30/2017 6/30/2017 Methods and Assumptions Used to
Determine Contribution Rates:
Agent Multiple Employer Plan
Amortization Method
Asset Valuation Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Medical Trend Non-Medicare -
6.5% decreasing
to 3.75%
Medicare (NonKaiser) - 5.65%
decreasing to
4.0%
Medicare (Kaiser) -
4.6% decreasing
to 4.0%
Investment Rate of Return 6.25% 6.75% 6.75% 6.75% 6.75% Mortality CalPERS 2000-
2019 Experience
Study
* Fiscal year 2018 was the first year of implementation; therefore, only five years are shown.
CalPERS 1997-2015 Experience Study CalPERS 1997-2015 Experience Study Entry age
Level percentage of payroll, closed
Investment gains and losses spread over 5-year rolling period Non-Medicare - 7.25% decreasing to
4.0%
Medicare - 6.3% decreasing to 4.0%
Non-Medicare - 7.25% decreasing to
4.0%
Medicare - 6.3% decreasing to 4.0%
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. (99)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes and Assessments 37,063,961 $ 39,292,263 $ 42,417,105 $ 3,124,842 $ Licenses and Permits 2,738,769 2,938,769 3,612,057 673,288 Intergovernmental 1,299,864 1,299,864 807,076 (492,788) Charges for Services 1,385,236 1,221,136 1,309,387 88,251 Fines, Forfeitures, and Penalties 903,229 903,229 1,199,256 296,027 Investment and Rental 159,341 159,341 (906,232) (1,065,573) Miscellaneous 262,814 262,814 595,753 332,939
Total Revenues 43,813,214 46,077,416 49,034,402 2,956,986
EXPENDITURES
Current:
General Government 9,766,331 11,157,545 9,271,265 1,886,280 Public Safety 12,713,448 13,232,015 1,907,786 11,324,229 Public Works 8,597,127 9,029,243 8,553,652 475,591
Parks and Recreation 5,593,484 5,967,363 5,581,524 385,839 Community Development 5,777,999 12,046,864 10,652,585 1,394,279 Debt Service:
Principal 955,000 955,000 955,000 -
Interest and Fiscal Charges 965,250 965,250 965,250 -
Lease Principal - 24,584 - (24,584)
Lease Interest - - 2,497 (2,497)
Total Expenditures 44,368,639 53,353,280 37,914,143 15,439,137
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (7,275,864) (555,425) 11,120,259 18,396,123
OTHER FINANCING SOURCES (USES)
Transfers In 1,620,456 11,848,256 1,479,066 (10,369,190) Transfers Out (1,065,000) (12,577,135) (12,577,135) -
Total Other Financing
Sources (Uses) 555,456 (728,879) (11,098,069) (10,369,190) NET CHANGE IN FUND BALANCE (8,004,743) 31 22,190 8,026,933 Fund Balance - Beginning of Year 73,199,972 73,199,972 73,199,972 - FUND BALANCE - END OF YEAR $ 65,195,229 73,200,003 $ 73,222,162 $ 8,026,933 $ Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. (100)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental 5,191,400 $ 5,191,400 $ 6,255,260 $ 1,063,860 $ Investment and Rental - - 451 451
Miscellaneous 22,272 22,272 43,334 21,062
Total Revenues 5,213,672 5,213,672 6,299,045 1,085,373
EXPENDITURES
Current:
Health and Welfare 5,363,930 5,363,930 6,075,409 (711,479) NET CHANGE IN FUND BALANCE (150,258) (150,258) 223,636 373,894 Fund Balance - Beginning of Year 251,415 251,415 251,415 - FUND BALANCE - END OF YEAR $ 101,157 101,157 $ 475,051 $ 373,894 $ Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. (101)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental - $ 10,227,800 $ 10,227,800 $ - $
EXPENDITURES
Current:
Public Safety - 10,227,800 10,227,800 -
Public Works - 4,272,455 - 4,272,455
Total Expenditures - 14,500,255 10,227,800 4,272,455
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (4,272,455) - - 4,272,455
OTHER FINANCING SOURCES (USES)
Transfers In 15,530,000 5,302,200 - (5,302,200)
NET CHANGE IN FUND BALANCE 1,029,745 15,530,000 - (1,029,745) Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ 1,029,745 15,530,000 $ - $ (1,029,745) $ Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(102)
NOTE 1 BUDGETARY CONTROL AND ACCOUNTING
The City of Pico Rivera (the City) adopts annual budgets for governmental funds on a basis that is the same as accounting principles generally accepted in the United States of America.
The City’s budget is a detailed operating plan, which identifies estimated costs and results in relation to estimated revenues. The budget includes (1) the programs, projects, services, and activities to be provided during the fiscal year; (2) the estimated resources (inflows) and amounts available for appropriation; and (3) the estimated charges to appropriations. The budget represents a process through which policy decisions are made, implemented, and controlled.
The following procedures establish the budgetary data reflected in the financial statements:
The budget is prepared under the City Manager’s direction and adopted by the City Council, generally prior to June 30 of each year. It is revised periodically during the year by the City Council. The budget presented in the financial statements includes the original and final amounts. The budget serves as a policy document for the deliverance of public services; however, expenditures are individually approved by the City Council. The City Manager is authorized to transfer amounts within individual fund budgets without the approval of City Council. Additional appropriations during the year may be submitted to the City Council for review and approval.
Budget information is presented for the governmental fund types. There were no budgeted appropriations for the Housing Agency Low and Moderate Income Housing Special Revenue Fund, which is used to account for all successor agency housing activities; the Park Development Special Revenue Fund, which accounts for funds received on new residential construction for the purpose of improving and/or developing the City’s park system; the 2009 Lease Revenue Bond Capital Projects Fund, which is used to account for the proceeds of the 2009 Lease Revenue Bonds and all capital expenditures paid from proceeds of the bond; and the 2018 Series A COP Capital Projects Fund, which is used to account for the proceeds of the 2018 Series A Certificates of Participation and all capital expenditures paid from proceeds of the certificates. Accordingly, no budgetary comparison for these funds is presented in the financial statements. Budgeted revenue amounts represent the original budget modified by City Council-authorized adjustments during the year, which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year. The budgets conform, in all material respects, to accounting principles generally accepted in the United States of America. Appropriations lapse at year-end.
Budgetary compliance is monitored without the use of encumbrances. (103)
SUPPLEMENTARY INFORMATION
(104)
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CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
(105)
SPECIAL REVENUE FUNDS
Special Revenue Funds account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes. Special Revenue Funds include the following:
Community Development Block Grant Fund accounts for funds received from the U.S. Department of Housing and Urban Development for the purpose of Housing Rehabilitation, Social Services, and qualified capital improvements.
State Gas Tax Fund accounts for the City’s proportionate share of gas tax monies collected by the state of California, which are used for street construction and maintenance.
Light Assessment District Fund accounts for monies received for lighting services deemed to benefit the properties and businesses against which the special benefit assessments are levied. The assessments are levied once a year and are collected by the Los Angeles County Tax Collector, and remitted to the City.
Park Development Fund accounts for funds received on new residential construction for the purpose of improving and/or developing the City’s park system.
Prop A Fund accounts for the ½% sales tax approved by Prop A in Los Angeles County, which is restricted for transportation programs and projects.
Prop C Fund accounts for the ½% sales tax approved by Prop C, which is restricted for transportation programs and projects.
Measure R Fund accounts for monies received and expenditures relative to Measure R projects.
Measure M Fund accounts for monies received and expenditures relative to Measure M projects.
Measure A Fund accounts for monies received and expenditures relative to Measure A projects.
HOME Grant Fund accounts for funds received from the U.S. Department of Housing and Urban Development for the purpose of housing loans and rehabilitation.
CalHOME Grant Fund accounts for funds received from the state of California for the purpose of providing home rehabilitation loans.
Air Quality Improvement Fund accounts for the additional vehicle registration fees received from the Southern California Air Quality Management District for the purpose of air pollution reduction.
County Grants Fund accounts for various Los Angeles County grants that are received for restricted expenditures for specific programs and projects.
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2022
(106)
SPECIAL REVENUE FUNDS (CONTINUED)
State Grants Fund accounts for the various state of California grants that are restricted to expenditures for specific programs and projects.
Economic Sustainability Fund accounts for funds received from the companies developing the Pico Rivera Towne Center under the terms of the improvement and reimbursement agreements with the Redevelopment Agency.
Image Enhancement Fund accounts for funds received from all developers for the enhancement of the image of the City of Pico Rivera.
Sewer Maintenance Fund accounts for direct assessments on property for annual and long-term maintenance of the sewer system.
Reach Grants Fund accounts for funds received from the state of California for the after-school learning program.
Cable/PEG Support Fund accounts for fees received that are restricted to upgrades to the City’s cable system.
Transportation Development Act Fund accounts for funds received from the state of California Department of Transportation for the development and support of public transportation needs.
Housing Agency Low and Moderate Income Housing Fund (LMIHF) accounts for assets received from dissolution of the former Pico Rivera Redevelopment Agency dedicated to low- and moderateincome housing activities pursuant to the California Health and Safety Code.
Measure W accounts for the revenues and expenditures provided to the city by the Los Angeles County Measure W Safe Clean Water Program. The revenues are a parcel tax to be utilized to increase the local water supply, improve water quality, and invest in making the City of Pico Rivera greener or more livable.
Federal Grants Fund accounts for the various federal grants that are restricted to expenditures for specific programs and projects.
CAPITAL PROJECTS FUNDS
Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities. Capital Projects Funds include the following:
Paramount/Mines Landscape Maintenance Assessment Fund accounts for funds received for the installation and maintenance of common areas deemed to benefit the properties against which the special benefit assessments are levied.
2009 Lease Revenue Bond Capital Projects Fund accounts for the proceeds of the 2009 Lease Revenue Bonds and all capital expenditures paid from the proceeds of the bond. (107)
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CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2022
(108)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
ASSETS
Cash and Investments - $ 4,612,448 $ 1,318,151 $ 228,773 $ Accounts Receivable 305,935 - - -
Taxes Receivable - 331,454 81,262 -
Interest Receivable - 5,186 1,494 252
Long-Term Receivables 176,409 - - -
Receivables from Successor Agency - - - -
Total Assets 482,344 $ 4,949,088 $ 1,400,907 $ 229,025 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 133,766 $ 398,562 $ 72,061 $ - $
Accrued Liabilities 3,169 6,634 18,934 -
Retention Payable - - - -
Due to Other Funds 170,762 - - -
Due to Other Agencies 176,409 - - -
Total Liabilities 484,106 405,196 90,995 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - -
FUND BALANCES (DEFICITS)
Restricted - 4,543,892 1,309,912 229,025
Assigned - - - -
Unassigned (1,762) - - -
Total Fund Balances (Deficits) (1,762) 4,543,892 1,309,912 229,025 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 482,344 $ 4,949,088 $ 1,400,907 $ 229,025 $ Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2022
(109)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ 3,267,442 3,425,176 $ 2,207,773 $ 389,242 $ - $ 2,577,813 $ 703,303 $ - - 1,297,576 - - 6 -
- - - - - - -
3,660 3,757 1,154 495 - - -
- - - - - 2,586,210 1,103,329
- - - - - - -
$ 3,271,102 3,428,933 $ 3,506,503 $ 389,737 $ - $ 5,164,029 $ 1,806,632 $ $ 87,789 97,772 $ 345,360 $ 1,585 $ - $ 548 $ - $
6,352 11,576 3,623 536 - - -
22,052 - 208,258 - - - -
- - - - - - -
- - - - - 2,584,182 1,103,329
116,193 109,348 557,241 2,121 - 2,584,730 1,103,329
- - 1,266,535 - - - -
3,154,909 3,319,585 1,682,727 387,616 - 2,579,299 703,303 - - - - - - -
- - - - - - -
3,154,909 3,319,585 1,682,727 387,616 - 2,579,299 703,303 $ 3,271,102 3,428,933 $ 3,506,503 $ 389,737 $ - $ 5,164,029 $ 1,806,632 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2022
(110)
Air
Quality County State Economic
Improvement Grants Grants Sustainability
ASSETS
Cash and Investments $ 454,033 $ 17,334 $ 226,918 $ 961,954 Accounts Receivable - - 309,671 -
Taxes Receivable - - - -
Interest Receivable 494 - 136 1,060
Long-Term Receivables - - - -
Receivables from Successor Agency - - - -
Total Assets $ 454,527 $ 17,334 $ 536,725 $ 963,014
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ - $ 19,744 $ 15,484 $ -
Accrued Liabilities - 4,777 7,428 -
Retention Payable - - - -
Due to Other Funds - 100,057 359,696 -
Due to Other Agencies - - - -
Total Liabilities - 124,578 382,608 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 309,671 -
FUND BALANCES (DEFICITS)
Restricted 454,527 - - 963,014
Assigned - - - -
Unassigned - (107,244) (155,554) -
Total Fund Balances (Deficits) 454,527 (107,244) (155,554) 963,014 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 454,527 $ 17,334 $ 536,725 $ 963,014 Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2022
(111)
Transportation
Image Sewer Reach Cable/PEG Development
Enhancement Maintenance Grants Support Act
$ - 567,114 $ 552,174 $ 281,679 $ - $
- - - - 132,115
15 - - 19,193 -
- 617 926 - -
- - - - -
- - - - -
$ 15 567,731 $ 553,100 $ 300,872 $ 132,115 $
$ 3,071 - $ 53,169 $ - $ 3,360 $
- - 7,425 - 589
- - - - -
17,492 - - - 41,499
- - - - -
20,563 - 60,594 - 45,448
- - - - 92,159
- 567,731 492,506 300,872 -
- - - - -
(20,548) - - - (5,492)
(20,548) 567,731 492,506 300,872 (5,492)
$ 15 567,731 $ 553,100 $ 300,872 $ 132,115 $
Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2022
(112)
Total
Housing Special
Agency Measure Federal Revenue
LMIHF W Grants Funds
ASSETS
Cash and Investments 1,029,440 $ 1,349,247 $ 15,158 $ 24,185,172 $ Accounts Receivable - - 294,702 2,340,005
Taxes Receivable - - - 431,924
Interest Receivable - 1,493 - 20,724
Long-Term Receivables - - - 3,865,948
Receivables from Successor Agency 1,639,164 - - 1,639,164 Total Assets 2,668,604 $ 1,350,740 $ 309,860 $ 32,482,937 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 179,382 $ 112,839 $ 1,524,492 $
Accrued Liabilities - 28 - 71,071
Retention Payable - 9,332 - 239,642
Due to Other Funds - - 320,655 1,010,161
Due to Other Agencies - - - 3,863,920
Total Liabilities - 188,742 433,494 6,709,286
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 88,640 1,757,005
FUND BALANCES (DEFICITS)
Restricted 2,668,604 1,161,998 - 24,519,520
Assigned - - - -
Unassigned - - (212,274) (502,874)
Total Fund Balances (Deficits) 2,668,604 1,161,998 (212,274) 24,016,646 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 2,668,604 $ 1,350,740 $ 309,860 $ 32,482,937 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2022
(113)
Paramount/Mines Total Total
Landscape Capital Other
Capital Maintenance 2009 Lease Projects Governmental
Improvement Assessment Revenue Bond Funds Funds
$ 57,573 11,874,118 $ - $ 11,931,691 $ 36,116,863 $
- - - - 2,340,005
- - - - 431,924
63 - - 63 20,787
- - - - 3,865,948
- - - - 1,639,164
$ 57,636 11,874,118 $ - $ 11,931,754 $ 44,414,691 $
$ - 58,865 $ - $ 58,865 $ 1,583,357 $
- - - - 71,071
- - - - 239,642
- 224,644 - 224,644 1,234,805
- - - - 3,863,920
- 283,509 - 283,509 6,992,795
- - - - 1,757,005
57,636 - - 57,636 24,577,156
- 11,590,609 - 11,590,609 11,590,609
- - - - (502,874)
57,636 11,590,609 - 11,648,245 35,664,891
$ 57,636 11,874,118 $ - $ 11,931,754 $ 44,414,691 $
Capital Projects Funds
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2022
(114)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
REVENUES
Taxes and Assessments - $ $ - $ 1,863,829 $ -
Intergovernmental 866,285 2,745,847 - -
Charges for Services - - - -
Investment and Rental 300 (74,513) (19,422) (3,688)
Miscellaneous 289 157 89,702 -
Total Revenues 866,874 2,671,491 1,934,109 (3,688)
EXPENDITURES
Current:
General Government - - - -
Public Safety - - - -
Public Works - 626,977 1,160,038 -
Parks and Recreation - - - -
Health and Welfare - - - -
Community Development 509,421 - - -
Pass Through to Other Agencies - - - -
Capital Outlay - - - -
Debt Service:
Principal - - - -
Interest and Fiscal Charges - - - -
Total Expenditures 509,421 626,977 1,160,038 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 357,453 2,044,514 774,071 (3,688)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - (1,478,980) - -
Total Other Financing
Sources (Uses) - (1,478,980) - -
NET CHANGE IN FUND BALANCES 357,453 565,534 774,071 (3,688) Fund Balances (Deficits) - Beginning of Year (359,215) 3,978,358 535,841 232,713 FUND BALANCES (DEFICITS) - END OF YEAR $ (1,762) $ 4,543,892 $ 1,309,912 $ 229,025 Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2022
(115)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ - - $ - $ - $ - $ - $ - $
1,327,486 1,600,385 5,695,653 1,126,471 - - -
- - - - - - -
(53,866) (54,458) (9,046) (7,400) - 74,560 66,103
1,226 2,101 860 411 - 207,958 204,810
1,274,846 1,548,028 5,687,467 1,119,482 - 282,518 270,913 - - - - - - -
- - - - - - -
968,873 1,095,029 4,596,619 114,290 - - -
- - - - - - -
- - - - - - -
- - - - - 193 -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
968,873 1,095,029 4,596,619 114,290 - 193 -
305,973 452,999 1,090,848 1,005,192 - 282,325 270,913
- - - - - - -
- - - (832,169) - - -
- - - (832,169) - - -
305,973 452,999 1,090,848 173,023 - 282,325 270,913
2,848,936 2,866,586 591,879 214,593 - 2,296,974 432,390 $ 3,154,909 3,319,585 $ 1,682,727 $ 387,616 $ - $ 2,579,299 $ 703,303 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2022
(116)
Air
Quality County State Economic
Improvement Grants Grants Sustainability
REVENUES
Taxes and Assessments - $ - $ - $ - $
Intergovernmental 81,250 - 504,541 -
Charges for Services - - - -
Investment and Rental (7,092) - (1,898) 94,111
Miscellaneous - - 123 -
Total Revenues 74,158 - 502,766 94,111
EXPENDITURES
Current:
General Government - - - -
Public Safety - - - -
Public Works 44,886 - - -
Parks and Recreation - 172,401 - -
Health and Welfare - - 339,076 -
Community Development - - - 396,667
Pass Through to Other Agencies - - - -
Capital Outlay - - - -
Debt Service:
Principal - - - -
Interest and Fiscal Charges - - - -
Total Expenditures 44,886 172,401 339,076 396,667
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (172,401) 29,272 163,690 (302,556)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing
Sources (Uses) - - - -
NET CHANGE IN FUND BALANCES (172,401) 29,272 163,690 (302,556) Fund Balances (Deficits) - Beginning of Year 425,255 65,157 (319,244) 1,265,570 FUND BALANCES (DEFICITS) - END OF YEAR $ (107,244) 454,527 $ (155,554) $ 963,014 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2022
(117)
Transportation
Image Sewer Reach Cable/PEG Development
Enhancement Maintenance Grants Support Act
$ 328 - $ 19,280 $ - $ - $
- - 897,904 - 39,954
- 128,110 - - -
- (8,596) (8,420) - -
309 - 3,163 76,393 172
637 119,514 911,927 76,393 40,126
37,971 - - - -
- - - - -
- - - 38,233 34,064
- - 976,827 - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
37,971 - 976,827 38,233 34,064
(37,334) 119,514 (64,900) 38,160 6,062
- - - - -
- - - - -
- - - - -
(37,334) 119,514 (64,900) 38,160 6,062
16,786 448,217 557,406 262,712 (11,554)
$ (20,548) 567,731 $ 492,506 $ 300,872 $ (5,492) $
Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2022
(118)
Total
Housing Special
Agency Measure Federal Revenue
LMIHF W Grants Funds
REVENUES
Taxes and Assessments $ - $ - $ - $ 1,883,437
Intergovernmental - 894,020 285,800 16,065,596
Charges for Services - - - 128,110
Investment and Rental 574,177 (21,848) - 539,004
Miscellaneous 6,625 - - 594,299
Total Revenues 580,802 872,172 285,800 19,210,446
EXPENDITURES
Current:
General Government - - - 37,971
Public Safety - - - -
Public Works - - 141,518 8,820,527
Parks and Recreation - 355,230 - 1,504,458
Health and Welfare - - - 339,076
Community Development - - - 906,281
Pass Through to Other Agencies - - - -
Capital Outlay - - - -
Debt Service: -
Principal - - - -
Interest and Fiscal Charges - - - -
Total Expenditures - 355,230 141,518 11,608,313
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 516,942 580,802 144,282 7,602,133
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - (2,311,149)
Total Other Financing
Sources (Uses) - - - (2,311,149)
NET CHANGE IN FUND BALANCES 516,942 580,802 144,282 5,290,984 Fund Balances (Deficits) - Beginning of Year 2,087,802 645,056 (356,556) 18,725,662 FUND BALANCES (DEFICITS) - END OF YEAR $ 1,161,998 2,668,604 $ (212,274) $ 24,016,646 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2022
(119)
Paramount/Mines Total Total
Landscape Capital Other
Capital Maintenance 2009 Lease Projects Governmental
Improvement Assessment Revenue Bond Funds Funds
$ 10,359 - $ - $ 10,359 $ 1,893,796 $
- - - - 16,065,596
- - - - 128,110
(897) - - (897) 538,107
- - - - 594,299
9,462 - - 9,462 19,219,908
- - - - 37,971
- - - - -
- - - - 8,820,527
- - - - 1,504,458
- - - - 339,076
- - - - 906,281
- - - - -
- 219,003 - 219,003 219,003
-
- - - - -
- - - - -
- 219,003 - 219,003 11,827,316
9,462 (219,003) - (209,541) 7,392,592
- 11,577,135 - 11,577,135 11,577,135
- - (86) (86) (2,311,235)
- 11,577,135 (86) 11,577,049 9,265,900
9,462 11,358,132 (86) 11,367,508 16,658,492
48,174 232,477 86 280,737 19,006,399
$ 57,636 11,590,609 $ - $ 11,648,245 $ 35,664,891 $
Capital Projects Funds
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(120)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 626,682 $ 866,285 $ 239,603 $
Investment and Rental - 300 300
Miscellaneous - 289 289
Total Revenues 626,682 866,874 240,192
EXPENDITURES
Current:
Community Development 3,269,521 509,421 2,760,100
NET CHANGE IN FUND BALANCE 357,453 (2,642,839) 3,000,292 Fund Balance (Deficit) - Beginning of Year (359,215) (359,215) - FUND BALANCE (DEFICIT) - END OF YEAR $ (1,762) (3,002,054) $ 3,000,292 $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
STATE GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(121)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental $ 2,837,890 $ 2,745,847 $ (92,043)
Investment and Rental 10,980 (74,513) (85,493)
Miscellaneous - 157 157
Total Revenues 2,848,870 2,671,491 (177,379)
EXPENDITURES
Current:
Public Works 5,456,088 626,977 4,829,111
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,607,218) 2,044,514 293,665
OTHER FINANCING USES
Transfers Out (1,620,457) (1,478,980) 141,477
NET CHANGE IN FUND BALANCE (4,227,675) 565,534 4,793,209 Fund Balance - Beginning of Year 3,978,358 3,978,358 -
FUND BALANCE - END OF YEAR $ (249,317) $ 4,543,892 $ 4,793,209
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
LIGHTING ASSESSMENT DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(122)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments $ 1,094,185 $ 1,863,829 $ 769,644 Investment and Rental 7,586 (19,422) (27,008)
Miscellaneous - 89,702 89,702
Total Revenues 1,101,771 1,934,109 832,338
EXPENDITURES
Current:
Public Works 1,452,619 1,160,038 292,581
NET CHANGE IN FUND BALANCE 774,071 (350,848) 1,124,919
Fund Balance - Beginning of Year 535,841 535,841 -
FUND BALANCE - END OF YEAR $ 1,309,912 184,993 $ $ 1,124,919
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
PROP A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(123)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 1,279,805 $ 1,600,385 $ 320,580 $
Investment and Rental 10,717 (54,458) (65,175)
Miscellaneous 10,000 2,101 (7,899)
Total Revenues 1,300,522 1,548,028 247,506
EXPENDITURES
Current:
Public Works 1,627,391 1,095,029 532,362
NET CHANGE IN FUND BALANCE 452,999 (326,869) 779,868
Fund Balance - Beginning of Year 2,866,586 2,866,586 -
FUND BALANCE - END OF YEAR $ 3,319,585 2,539,717 $ 779,868 $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
PROP C SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(124)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 1,061,565 $ 1,327,486 $ 265,921 $
Investment and Rental 8,638 (53,866) (62,504)
Miscellaneous - 1,226 1,226
Total Revenues 1,070,203 1,274,846 204,643
EXPENDITURES
Current:
Public Works 8,211,092 968,873 7,242,219
NET CHANGE IN FUND BALANCE 305,973 (7,140,889) 7,446,862 Fund Balance - Beginning of Year 2,848,936 2,848,936 -
FUND BALANCE - END OF YEAR $ 3,154,909 (4,291,953) $ 7,446,862 $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
MEASURE R SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(125)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 796,174 $ 5,695,653 $ 4,899,479 $
Investment and Rental 3,349 (9,046) (12,395)
Miscellaneous - 860 860
Total Revenues 799,523 5,687,467 4,887,944
EXPENDITURES
Current:
Public Works 10,174,689 4,596,619 5,578,070
NET CHANGE IN FUND BALANCE 1,090,848 (9,375,166) 10,466,014 Fund Balance - Beginning of Year 591,879 591,879 -
FUND BALANCE (DEFICIT) - END OF YEAR $ 1,682,727 (8,783,287) $ 10,466,014 $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(126)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 902,330 $ 1,126,471 $ 224,141 $
Investment and Rental 2,620 (7,400) (10,020)
Miscellaneous - 411 411
Total Revenues 904,950 1,119,482 214,532
EXPENDITURES
Current:
Public Works 406,234 114,290 291,944
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,005,192 498,716 506,476
OTHER FINANCING USES
Transfers Out (832,169) (832,169) -
NET CHANGE IN FUND BALANCE 173,023 (333,453) 506,476
Fund Balance - Beginning of Year 214,593 214,593 -
FUND BALANCE - END OF YEAR $ 387,616 (118,860) $ 506,476 $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
HOME GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(127)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Investment and Rental 3,749 $ 74,560 $ 70,811 $
Miscellaneous 1,000,000 207,958 (792,042)
Total Revenues 1,003,749 282,518 (721,231)
EXPENDITURES
Current:
Community Development - 193 (193)
NET CHANGE IN FUND BALANCE 282,325 1,003,749 (721,424)
Fund Balance - Beginning of Year 2,296,974 2,296,974 -
FUND BALANCE - END OF YEAR $ 2,579,299 3,300,723 $ (721,424) $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
CalHOME GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(128)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Investment and Rental - $ $ 66,103 $ 66,103
Miscellaneous - 204,810 204,810
Total Revenues - 270,913 270,913
Fund Balance - Beginning of Year 432,390 432,390 -
FUND BALANCE - END OF YEAR $ 432,390 $ 703,303 $ 270,913
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(129)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 80,900 $ 81,250 $ 350 $
Investment and Rental 1,403 (7,092) (8,495)
Total Revenues 82,303 74,158 (8,145)
EXPENDITURES
Current:
Public Works 174,783 44,886 129,897
NET CHANGE IN FUND BALANCE (92,480) 29,272 121,752
Fund Balance - Beginning of Year 425,255 425,255 -
FUND BALANCE - END OF YEAR $ 332,775 $ 454,527 $ 121,752
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
COUNTY GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(130)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental $ 1,060,000 $ (1,060,000) - $
EXPENDITURES
Current:
Parks and Recreation $ 1,484,929 $ 172,401 $ 1,312,528
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (424,929) (172,401) 252,528
Fund Balance - Beginning of Year 65,157 65,157 -
FUND BALANCE (DEFICIT) - END OF YEAR $ (359,772) $ (107,244) $ 252,528
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
STATE GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(131)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 242,631 $ 504,541 $ 261,910 $
Investment and Rental 459 (1,898) (2,357)
Miscellaneous - 123 123
Total Revenues 243,090 502,766 259,676
EXPENDITURES
Current:
Health and Welfare 4,343,480 339,076 4,004,404
NET CHANGE IN FUND BALANCE 163,690 (4,100,390) 4,264,080 Fund Balance - Beginning of Year (319,244) (319,244) -
FUND BALANCE (DEFICIT) - END OF YEAR $ (155,554) (4,419,634) $ 4,264,080 $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
ECONOMIC SUSTAINABILITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(132)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Investment and Rental 3,846 $ 94,111 $ 90,265 $
EXPENDITURES
Current:
Community Development 471,483 396,667 74,816
NET CHANGE IN FUND BALANCE (302,556) (467,637) 165,081
Fund Balance - Beginning of Year 1,265,570 1,265,570 -
FUND BALANCE - END OF YEAR $ 963,014 797,933 $ $ 165,081
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
IMAGE ENHANCEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(133)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Charges for Services 121,245 $ 128,110 $ 6,865 $
Investment and Rental 1,128 (8,596) (9,724)
Total Revenues 122,373 119,514 (2,859)
Fund Balance - Beginning of Year 448,217 448,217 -
FUND BALANCE - END OF YEAR $ 567,731 570,590 $ (2,859) $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
SEWER MAINTENANCE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(134)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 1,600 $ 328 $ (1,272) $
Miscellaneous - 309 309
Total Revenues 1,600 637 (963)
EXPENDITURES
Current:
General Government 280,300 37,971 242,329
Public Works 5,700 - 5,700
Total Expenditures 286,000 37,971 248,029
NET CHANGE IN FUND BALANCE (37,334) (284,400) 247,066
Fund Balance (Deficit) - Beginning of Year 16,786 16,786 - FUND BALANCE (DEFICIT) - END OF YEAR $ (20,548) (267,614) $ 247,066 $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
REACH GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(135)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments $ - $ 19,280 $ 19,280
Intergovernmental 972,434 897,904 (74,530)
Investment and Rental 1,883 (8,420) (10,303)
Miscellaneous - 3,163 3,163
Total Revenues 974,317 911,927 (62,390)
EXPENDITURES
Current:
Parks and Recreation 1,024,443 976,827 47,616
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (50,126) (64,900) (14,774)
Fund Balance - Beginning of Year 557,406 557,406 -
FUND BALANCE - END OF YEAR $ 507,280 $ 492,506 $ (14,774)
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
CABLE/PEG SUPPORT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(136)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Miscellaneous 25,000 $ 76,393 $ 51,393 $
EXPENDITURES
Current:
Public Works 286,545 38,233 248,312
NET CHANGE IN FUND BALANCE 38,160 (261,545) 299,705
Fund Balance - Beginning of Year 262,712 262,712 -
FUND BALANCE - END OF YEAR $ 300,872 1,167 $ $ 299,705
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(137)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 46,423 $ 39,954 $ (6,469) $
Miscellaneous - 172 172
Total Revenues 46,423 40,126 (6,297)
EXPENDITURES
Current:
Public Works 122,955 34,064 88,891
NET CHANGE IN FUND BALANCE (76,532) 6,062 82,594
Fund Balance (Deficit) - Beginning of Year (11,554) (11,554) - FUND BALANCE (DEFICIT) - END OF YEAR $ (88,086) $ (5,492) $ 82,594
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
MEASURE W SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(138)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental $ 927,000 $ 894,020 $ (32,980)
Investment and Rental - (21,848) (21,848)
Total Revenues 927,000 872,172 (54,828)
EXPENDITURES
Current:
1,453,442 355,230 1,098,212
(526,442) 516,942 1,043,384
645,056 645,056 -
Public Works
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR $ 118,614 $ 1,161,998 $ 1,043,384
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
FEDERAL GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
(139)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 3,060,000 $ 285,800 $ $ (2,774,200)
EXPENDITURES
Current:
Public Works 7,960,338 141,518 7,818,820
NET CHANGE IN FUND BALANCE 144,282 (4,900,338) 5,044,620 Fund Balance (Deficit) - Beginning of Year (356,556) - (356,556) FUND BALANCE (DEFICIT) - END OF YEAR $ (5,256,894) $ 5,044,620 (212,274) $
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
(140)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
EXPENDITURES
Capital Outlay 5,328,139 $ 219,003 $ 5,109,136 $
OTHER FINANCING SOURCES (USES)
Transfers in 4,940,780 11,577,135 6,636,355
NET CHANGE IN FUND BALANCE (387,359) 11,358,132 11,745,491 Fund Balance - Beginning of Year 232,477 232,477 -
FUND BALANCE - END OF YEAR $ (154,882) $ 11,590,609 $ 11,745,491
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
PARAMOUNT/MINES LANDSCAPE MAINTENANCE ASSESSMENT CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2022
(141)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 10,200 $ 10,359 $ 159 $
Investment and Rental 142 (897) (1,039)
Total Revenues 10,342 9,462 (880)
Fund Balance - Beginning of Year 48,174 48,174 -
FUND BALANCE - END OF YEAR $ 58,516 $ 57,636 $ (880)
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF OTHER ENTERPRISE FUNDS
JUNE 30, 2022
(142)
These funds account for operations that are financed and operated in a manner similar to private business enterprises. The Whittier Narrows Recreation Area Other Enterprise Funds are as follows:
Pico Rivera Sports Arena Fund accounts for funds received from the respective private concessionaires operating each facility.
Pico Rivera Golf Course Fund records the operations of the City-owned golf course.
CITY OF PICO RIVERA, CALIFORNIA
OTHER ENTERPRISE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2022
(143)
Sports Golf
Arena Course Total
ASSETS
Current Assets:
Cash and Investments 395,967 $ 26,241 $ 422,208 $
Receivables, Net:
Accounts 102,718 18,874 121,592
Interest 381 - 381
Inventories, at Cost - 24,005 24,005
Total Current Assets 499,066 69,120 568,186
Noncurrent Assets:
Capital Assets, Not Depreciated 3,368 38,945 42,313
Capital Assets, Depreciated, Net 6,079 234,442 240,521
Total Noncurrent Assets 9,447 273,387 282,834
Total Assets 508,513 342,507 851,020
DEFERRED OUTFLOWS OF RESOURCES
Amount Related to Pensions 8,160 3,343 11,503
LIABILITIES
Current Liabilities:
Accounts Payable 72,039 123,854 195,893
Accrued Liabilities 2,321 53,002 55,323
Deposits - 1,800 1,800
Total Current Liabilities 74,360 178,656 253,016
Noncurrent Liabilities:
Advances from Other Funds - 3,076,108 3,076,108
Net Pension Liability 56,295 23,066 79,361
Total Noncurrent Liabilities 56,295 3,099,174 3,155,469 Total Liabilities 130,655 3,277,830 3,408,485
DEFERRED INFLOWS OF RESOURCES
Amounts Related to Pensions 18,008 7,379 25,387
NET POSITION
Net Investment in Capital Assets 9,447 273,387 282,834
Unrestricted 358,563 (3,212,746) (2,854,183)
Total Net Position 368,010 $ (2,939,359) $ (2,571,349) $
CITY OF PICO RIVERA, CALIFORNIA
OTHER ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2022
(144)
Sports Golf
Arena Course Total
OPERATING REVENUES
Charges for Services 347,040 $ 847,876 $ 1,194,916 $
Other 169 - 169
Total Operating Revenues 347,209 847,876 1,195,085
OPERATING EXPENSES
Salaries and Benefits 19,680 50,043 69,723
Contractual Services 121,673 77,178 198,851
Insurance Claims and Expenses 1,192 - 1,192
Administrative - 868,362 868,362
Utilities 3,338 190,424 193,762
Repairs and Maintenance - 41,531 41,531
Depreciation 30,305 26,463 56,768
Total Operating Expenses 176,188 1,254,001 1,430,189
OPERATING GAIN (LOSS) (406,125) 171,021 (235,104)
NONOPERATING REVENUES
Investment Income (5,330) - (5,330)
CHANGE IN NET POSITION (406,125) 165,691 (240,434)
Net Position - Beginning of Year 202,319 (2,533,234) (2,330,915) NET POSITION - END OF YEAR $ (2,939,359) 368,010 $ (2,571,349) $
CITY OF PICO RIVERA, CALIFORNIA
OTHER ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2022
(145)
Sports Golf
Arena Course Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 244,491 $ 847,879 $ 1,092,370 Payments to Suppliers (99,033) (1,155,511) (1,254,544)
Payments to Employees (61,166) (17,712) (78,878)
Net Cash Provided (Used) by Operating Activities 84,292 (325,344) (241,052)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Proceeds from Due to/from Other Funds - (48,054) (48,054) Net Cash Provided by Noncapital Financing
Activities - (48,054) (48,054)
CASH FLOWS FROM INVESTING ACTIVITIES
Market Value Adjustment (5,956) - (5,956)
Interest Received 344 - 344
Net Cash Used by Investing Activities (5,612) - (5,612)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 78,680 (373,398) (294,718)
Cash and Cash Equivalents - Beginning of Year 317,287 399,639 716,926 CASH AND CASH EQUIVALENTS - END OF YEAR $ 395,967 $ 26,241 $ 422,208
CITY OF PICO RIVERA, CALIFORNIA
OTHER ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2022
(146)
Sports Golf
Arena Course Total
RECONCILIATION OF OPERATING GAIN (LOSS) TO
NET CASH USED BY OPERATING ACTIVITIES
Operating Gain (Loss) 171,021 $ (406,125) $ (235,104) $ Adjustments to Reconcile Operating Gain (Loss) to Net
Cash Provided (Used) by Operating Activities:
Depreciation 30,305 26,463 56,768
Changes in Operating Assets, Deferred
Outflows of Resources, Liabilities, and
Deferred Inflows of Resources:
Increase in Accounts Receivables (102,718) 3 (102,715)
Decrease in Deferred Outflows of Resources -
Amount Related to Pensions 6,150 (3,343) 2,807
Increase (Decrease) in Accounts Payable 27,170 23,954 51,124 Increase (Decrease) in Accrued Liabilities 532 3,259 3,791 Increase (Decrease) in Net Pension Liability (65,986) 23,066 (42,920) Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions 17,818 7,379 25,197 Total Adjustments (86,729) 80,781 (5,948)
Net Cash Provided (Used) by Operating Activities 84,292 $ (325,344) $ (241,052) $ (147)
STATISTICAL SECTION
(UNAUDITED)
(148)
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CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2022
(149)
This part of the City of Pico Rivera’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.
Contents: Pages
Financial Trends – These schedules contain trend information that may assist the reader in understanding the City’s current financial performance by placing it in historical perspective. 150-159
Revenue Capacity – These schedules contain information that may help in assessing the viability of the City’s most significant revenue sources – property taxes, transient occupancy tax (TOT), and sales tax. 160-167 Debt Capacity – These schedules present information that may assist the reader in analyzing the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 168-174 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. 175-176 Operating Information – these schedules contain service and infrastructure indicators that may assist the reader in understanding how the information in the City’s financial report relates to the services that the City provides and the activities it performs. 177-181
CITY OF PICO RIVERA, CALIFORNIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(150)
2012-13 2013-14 2014-15 2015-16
Governmental Activities:
Net investment in capital assets 232,734,954 $ 224,917,267 $ 224,650,021 $ 231,562,736 $ Restricted 12,426,012 13,016,383 14,236,953 11,854,987
Unrestricted 39,163,377 43,883,873 22,142,254 23,639,282 Total governmental activities net position 284,324,343 281,817,523 261,029,228 267,057,005 Business-type Activities:
Net investment in capital assets 30,079,954 30,964,232 31,370,373 31,761,672 Restricted - - - -
Unrestricted (17,473,063) (16,212,613) (18,465,237) (16,385,687) Total business-type activities net position 12,606,891 14,751,619 12,905,136 15,375,985 Primary Government:
Net investment in capital assets 262,814,908 255,881,499 256,020,394 263,324,408 Restricted 12,426,012 13,016,383 14,236,953 11,854,987
Unrestricted 21,690,314 27,671,260 3,677,017 7,253,595
Total primary government net position 296,931,234 $ 296,569,142 $ 273,934,364 $ 282,432,990 $ Source: Statement of Net Position
CITY OF PICO RIVERA, CALIFORNIA
NET POSITION BY COMPONENT (CONTINUED)
LAST TEN FISCAL YEARS
(151)
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
$ 230,499,724 223,976,465 $ 232,291,558 $ 235,399,358 $ 234,764,478 $ 237,260,527 $ 16,360,144 13,274,422 19,565,580 22,661,392 23,672,803 27,978,094 18,735,128 25,960,550 17,860,702 15,000,619 23,195,137 38,557,279 265,594,996 263,211,437 269,717,840 273,061,369 281,632,418 303,795,900 33,236,723 32,604,651 33,680,356 34,129,206 36,403,397 40,280,888 - - - - -
(13,570,480) (13,590,642) (10,315,352) (3,505,373) (4,457,768) (4,543,616) 19,666,243 19,014,009 23,365,004 30,623,833 31,945,629 35,737,272 263,736,447 256,581,116 265,971,914 269,528,564 271,167,875 277,541,415 16,360,144 13,274,422 19,565,580 22,661,392 23,672,803 27,978,094 5,164,648 12,369,908 7,545,350 11,495,246 18,737,369 34,013,663 $ 285,261,239 282,225,446 $ 293,082,844 $ 303,685,202 $ 313,578,047 $ 339,533,172 $
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(152)
2012-13 2013-14 2014-15 2015-16 2016-17
Expenses:
Governmental Activities:
General government 8,339,448 $ 9,954,786 $ 9,248,597 $ 8,790,816 $ 10,048,704 $ Public safety 10,946,303 11,202,782 10,457,770 10,468,357 12,330,023 Public works 12,843,460 10,498,605 14,545,183 14,472,969 15,104,130 Parks and recreation 5,483,656 5,422,037 5,600,669 5,585,521 6,263,237 Health and welfare 5,678,172 5,339,488 4,840,878 5,266,352 5,587,157 Community development 2,207,716 2,511,556 2,761,524 2,827,231 2,540,908 Interest and fiscal charges 975,580 1,742,562 1,656,613 1,626,960 2,628,006 Bond issuance costs - - - - -
Total governmental activities net expenses 46,474,335 46,671,816 49,111,234 49,038,206 54,502,165 Business-type Activities:
Water 7,846,884 8,386,111 8,044,302 7,865,853 8,155,205 Pico Rivera Innovative Municipal Energy - - - - -
Other enterprise funds 980,618 1,054,837 1,320,585 1,624,391 1,622,319 Total business-type activities net expenses 8,827,502 9,440,948 9,364,887 9,490,244 9,777,524 Total primary government expenses 55,301,837 $ 56,112,764 $ 58,476,121 $ 58,528,450 $ 64,279,689 $ Program Revenues:
Governmental Activities:
Charges for services:
General government 138,144 $ 497,518 $ 574,846 $ 606,726 $ 739,432 $ Public safety 1,226,044 1,207,766 1,125,660 1,022,464 962,627 Public works 751,194 744,905 1,821,210 1,788,821 786,053 Parks and recreation 763,094 693,884 743,400 578,529 773,631 Health and welfare 142,291 188,767 232,824 202,262 174,314 Community development 468,266 712,626 644,344 746,395 873,536 Operating contributions and grants 12,357,708 13,322,885 12,236,612 12,817,403 11,093,802 Capital contributions and grants 7,346,536 2,378,797 2,287,187 1,620,798 778,116 Total governmental activities
program revenues 23,193,277 19,747,148 19,666,083 19,383,398 16,181,511 Business-type Activities:
Charges for services:
Water utility 7,866,087 8,909,351 8,698,444 8,304,240 8,819,676 Pico Rivera Innovative Municipal Energy - - - - -
Other enterprise funds 898,336 921,432 996,548 1,302,652 1,478,893 Operating grants and contributions - - - - -
Total business-type activities
program revenues 8,764,423 9,830,783 9,694,992 9,606,892 10,298,569 Primary government program revenues 31,957,700 $ 29,577,931 $ 29,361,075 $ 28,990,290 $ 26,480,080 $ Net (Expense)/Revenue:
Governmental activities (23,281,058) $ (26,924,668) $ (29,445,151) $ (29,654,808) $ (38,320,654) $ Business-type activities (63,079) 389,835 330,105 116,648 521,045 Total primary government net expense (23,344,137) $ (26,534,833) $ (29,115,046) $ (29,538,160) $ (37,799,609) $ Source: City of Pico Rivera Finance Division
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(153)
2017-18 2018-19 2019-20 2020-21 2021-22
$ 8,190,494 $ 10,589,517 $ 11,832,065 $ 8,452,818 $ 8,089,449 11,885,957 11,998,792 12,460,600 12,314,336 12,144,703
12,488,922 16,339,812 15,688,114 16,977,788 14,700,643
7,146,278 7,958,749 7,319,903 6,869,152 7,457,649
5,311,548 5,416,605 5,508,857 6,248,362 6,414,485
4,407,647 4,194,760 5,269,424 4,729,823 10,891,361
1,013,498 1,507,430 1,527,256 1,486,071 1,450,395
- 398,345 - - -
50,444,344 58,404,010 59,606,219 57,078,350 61,148,685
8,382,375 8,506,305 8,743,689 9,503,242 9,570,530
4,900,927 12,944,076 12,800,550 16,116,785 17,222,547
2,270,317 1,804,018 1,411,093 1,980,185 1,430,189
15,553,619 23,254,399 22,955,332 27,600,212 28,223,266
$ 65,997,963 $ 81,658,409 $ 82,561,551 $ 84,678,562 $ 89,371,951 $ 493,265 $ 657,280 $ 310,572 $ 415,826 $ 545,101
1,044,921 1,114,647 970,410 1,160,968 1,163,935
801,487 836,847 852,467 878,464 882,256
791,906 579,751 359,398 63,530 279,041
198,238 205,328 9,104 155,361 285,648
1,196,287 982,241 826,524 1,240,644 1,681,960
16,678,586 13,168,680 13,826,068 16,416,848 26,561,448
2,874,341 3,604,445 5,855,720 2,986,830 5,387,593
24,079,031 21,149,219 23,010,263 23,318,471 36,786,982
9,802,992 9,904,084 10,376,513 10,641,130 11,180,400
5,354,524 13,581,101 16,685,058 14,798,777 18,030,558
1,176,972 1,119,812 1,056,567 1,841,744 1,195,085
- - - - 476,602
16,334,488 24,604,997 28,118,138 27,281,651 30,882,645
$ 40,413,519 $ 45,754,216 $ 51,128,401 $ 50,600,122 $ 67,669,627 $ (26,365,313) $ (37,254,791) $ (36,595,956) $ (33,759,879) $ (24,361,703) 780,869 1,350,598 5,162,806 (318,561) 2,659,379
$ (25,584,444) $ (35,904,193) $ (31,433,150) $ (34,078,440) $ (21,702,324)
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(154)
2012-13 2013-14 2014-15 2015-16
General Revenues and Other Changes
in Net Position:
Governmental Activities:
Property taxes $ 8,941,441 $ 9,269,468 $ 9,611,244 $ 10,049,454 Sales taxes 15,028,866 16,435,053 16,368,367 17,766,538 Franchise taxes 1,683,174 1,641,171 1,646,884 1,654,275 Utility users taxes 3,397,538 3,504,363 3,525,036 3,385,361 Other taxes 1,595,125 1,710,630 1,760,876 1,850,151
Unrestricted motor vehicle license in lieu
Investment Earnings 209,340 39,582 151,636 193,684
Other 125,691 139,486 613,592 283,352
Transfers 371,165 648,626 611,727 479,232
Gain on sale of property 205,756 104,912 257,194 174,424 Special Item (10,921,476) (9,075,443) 1,059,577 (704,496) Total governmental activities 20,636,620 24,417,848 35,606,133 35,131,975 Business-type Activities:
Investment Earnings 2,367,181 2,308,060 2,226,339 2,128,937 Other 4,898 95,459 12,179 -
Transfers (371,165) (648,626) (611,727) (479,232)
Gain on bond defeasance - - - -
Extraordinary item (149,583) - 704,496 -
Total business-type activities 1,851,331 1,754,893 1,626,791 2,354,201 Total primary government $ 22,487,951 $ 26,172,741 $ 37,232,924 $ 37,486,176 Change in Net Position:
Governmental activities $ (2,644,438) $ (2,506,820) $ 6,160,982 $ 5,477,167 Business-type activities 1,788,252 2,144,728 1,956,896 2,470,849 Total primary government $ (362,092) (856,186) $ 8,117,878 $ 7,948,016 $ Source: City of Pico Rivera Finance Division
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(155)
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
$ 10,591,691 $ 11,173,640 $ 11,734,058 $ 12,259,774 $ 13,000,934 $ 13,831,113 17,637,948 17,575,729 19,468,221 19,364,272 21,325,436 24,551,320 1,582,026 1,703,255 1,729,336 1,787,568 1,876,407 1,956,998 3,276,321 3,142,090 2,939,221 3,064,500 3,157,258 3,567,128 1,632,337 1,807,130 1,968,094 1,690,687 2,055,932 1,926,617 -
347,422 637,086 1,528,199 1,502,934 542,108 (197,845)
450,783 662,225 1,007,091 269,750 372,853 889,854
(1,043,442) 42,027 - - - -
- - - - - -
- - - - - -
34,475,086 36,743,182 40,374,220 39,939,485 42,330,928 46,525,185 2,073,537 2,025,078 2,140,163 2,096,023 1,640,357 449,236 - - - - - -
1,043,442 (42,027) - - - -
- - - - - 683,028
- - - - - -
3,116,979 1,983,051 2,140,163 2,096,023 1,640,357 1,132,264 $ 37,592,065 $ 38,726,233 $ 42,514,383 $ 42,035,508 $ 43,971,285 $ 47,657,449 $ (3,845,568) $ 10,377,869 $ 3,119,429 3,343,529 8,571,049 22,163,482 3,638,024 2,763,920 3,490,761 7,258,829 1,321,796 3,791,643 $ (207,544) $ 13,141,789 $ 6,610,190 $ 10,602,358 $ 9,892,845 $ 25,955,125
CITY OF PICO RIVERA, CALIFORNIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(156)
2012-13 2013-14 2014-15 2015-16
General Fund:
Nonspendable 25,222,739 $ 25,222,739 $ 25,222,739 $ 25,198,662 $ Restricted 2,334,811 2,446,856 2,358,919 2,368,600
Committed 5,974,566 9,330,000 9,316,732 9,479,500
Assigned 6,745,120 8,285,480 10,272,833 14,376,800
Unassigned 50,490 48,092 4,341,395 12,882,331
Reserved - - - -
Unreserved - - - -
Total general fund $ 40,327,726 $ 45,333,167 $ 51,512,618 $ 64,305,893 All Other Governmental Funds:
Nonspendable $ - $ - $ - $ -
Restricted 14,808,900 10,669,538 11,366,458 11,074,536
Committed - - - -
Assigned 600,000 600,000 600,000 600,000
Unassigned (3,012,144) (3,335,743) (2,869,762) (2,141,161) Reserved - - - -
Unreserved, reported in:
Special revenue funds - - - -
Debt Service funds - - - -
Capital projects funds - - - -
Total all other governmental funds $ 12,396,756 $ 7,933,795 $ 9,096,696 $ 9,533,375 Note: Please refer to MD&A for governmental fund balance change Source: City of Pico Rivera Finance Division
CITY OF PICO RIVERA, CALIFORNIA
FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(157)
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
$ 25,168,800 25,209,917 $ 28,002,854 $ 22,096,478 $ 23,232,000 $ 26,139,104 $ - - 1,061,066 1,087,825 1,372,990 1,180,688
9,476,700 9,665,400 10,284,000 10,169,300 20,510,328 24,517,211 14,426,700 13,256,200 14,039,900 13,991,300 13,717,940 14,926,791 10,851,445 12,063,120 9,067,136 17,752,704 14,366,714 6,458,368 - - - - - -
- - - - - -
$ 59,964,762 $ 60,153,520 $ 62,454,956 $ 65,097,607 $ 73,199,972 $ 73,222,162 $ - $ 4,508 $ - $ - $ - $ -
12,927,436 15,566,814 31,791,493 33,195,861 34,780,540 37,428,998 - - - - -
600,000 600,000 600,000 - 232,477 11,590,609
(1,749,394) (1,607,854) (60,712) (1,257,821) (1,046,569) (502,874) - - - - - -
- - - - - -
- - - - - -
- - - - - -
$ 11,778,042 $ 14,563,468 $ 32,330,781 $ 31,938,040 $ 33,966,448 $ 48,516,733
CITY OF PICO RIVERA, CALIFORNIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(158)
2012-13 2013-14 2014-15 2015-16 2016-17
Revenues:
Taxes and Assessments 30,782,011 $ 33,100,095 $ 34,083,110 $ 35,534,141 $ 34,592,924 $ Licenses and permits 1,912,315 2,320,618 2,363,477 2,491,636 2,442,190 Intergovernmental 18,257,848 10,891,308 11,703,565 12,214,500 11,927,598 Charges for services 1,717,790 1,964,785 1,889,338 1,871,009 2,124,665 Fines, forfeitures and penalties 1,234,368 1,224,540 1,134,906 1,031,031 898,203 Investment income 398,030 244,614 336,077 341,746 488,369 Miscellaneous 951,402 1,333,203 2,535,295 785,171 538,177 Gain on sale of land held for resale - - - - -
Extraordinary item (5,029,315) - - - -
Total revenues 50,224,449 51,079,163 54,045,768 54,269,234 53,012,126 Expenditures:
General government 6,555,866 7,183,738 6,884,398 6,805,810 11,819,289 Public safety 10,940,211 11,188,047 10,435,184 10,439,469 11,375,573 Public works 7,976,019 8,561,977 9,621,311 9,707,823 10,255,784 Parks and recreation 4,967,899 4,890,183 4,794,720 4,554,724 5,374,259 Health and welfare 5,678,172 5,339,488 4,840,878 5,266,352 5,587,157 Community development 2,189,841 2,490,769 2,730,123 2,787,070 3,435,809 Pass through to other agencies - - - - -
Loss on sale of land held for resale - - - - -
Capital outlay 20,528,630 7,719,114 5,175,862 7,287,913 2,453,883 Debt service:
Principal retirement 560,000 585,000 610,000 635,000 980,000 Interest and other charges 1,094,198 1,734,538 1,710,638 1,682,562 655,944 Lease Principal - - - - -
Lease Interest - - - - -
Bond issuance costs - - - - 520,424
payments to refunding escrow agent - - - - 2,368,685
Total expenditures 60,490,836 49,692,854 46,803,114 49,166,723 54,826,807 Excess (deficiency) of revenues
over (under) expenditures (10,266,387) 1,386,309 7,242,654 5,102,511 (1,814,681) Other Financing Sources (Uses):
Transfers in 24,558,694 11,719,264 7,618,952 19,274,660 3,986,323 Transfers out (31,667,462) (12,118,893) (7,987,933) (10,488,538) (5,029,765) - - - - 30,470,000
Bond premium - - - - 3,082,378
Payments to refunding escrow agent - - - - (33,021,008) Total other financing sources (uses) (7,108,768) (399,629) (368,981) 8,786,122 (512,072) Special Item:
Forgiveness of debt - - - (90,000) -
Net change in fund balances (17,375,155) 986,680 6,873,673 13,798,633 (2,326,753) Fund balances - July 1 70,099,637 52,180,282 53,166,962 60,040,635 73,839,268 Fund balances - June 30 52,724,482 $ 53,166,962 $ 60,040,635 $ 73,839,268 $ 71,512,515 $ Debt service as a percentage of noncapital expenditures 4.14% 5.53% 5.57% 5.53% 8.64% Bond issuance
CITY OF PICO RIVERA, CALIFORNIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(159)
2017-18 2018-19 2019-20 2020-21 2021-22
$ 38,653,543 35,567,380 $ 39,179,631 $ 39,647,861 $ 44,310,901 $ 2,960,639 2,861,711 2,212,910 3,209,557 3,612,057
13,433,014 12,973,062 15,079,031 19,310,930 33,355,732
1,851,030 1,819,310 1,443,249 1,234,332 1,437,497
1,002,532 1,109,430 952,095 1,108,568 1,199,256
812,776 1,433,476 1,523,385 557,114 (359,384)
5,593,359 1,436,364 996,245 600,081 1,233,409
- - - - -
- - - - -
61,220,730 60,286,896 61,386,546 65,668,443 84,789,468
12,938,296 7,901,483 8,291,063 7,367,989 9,309,236
11,857,271 11,971,740 12,433,612 12,286,345 12,135,586
14,095,351 15,527,553 17,986,339 16,457,143 17,374,179
6,122,665 6,993,470 6,356,907 5,766,663 7,085,982
5,311,548 5,416,605 5,508,857 6,248,362 6,414,485
4,367,766 4,157,152 5,231,905 4,591,099 11,558,866
- - - - -
- - - - -
1,547,832 1,633,063 571,952 64,075 2,559,159
865,000 1,090,000 1,155,000 1,190,000 1,230,000
1,061,150 1,530,496 1,601,001 1,565,994 1,522,419
- - - - 24,584
- - - - 2,497
- 398,345 - - -
- - - - -
58,166,879 56,619,907 59,136,636 55,537,670 69,216,993
3,053,851 3,666,989 2,249,910 10,130,773 15,572,475
3,309,866 4,667,515 2,986,078 2,491,287 24,116,170
(3,767,839) (4,667,515) (2,986,078) (2,491,287) (25,116,170) - 14,695,000 - - -
703,345 - - - -
- - - - -
(457,973) 15,398,345 - - (1,000,000)
- - - - -
2,595,878 19,065,334 2,249,910 10,130,773 14,572,475
72,121,110 75,720,403 94,785,737 97,035,647 107,166,420 $ 74,716,988 $ 94,785,737 $ 97,035,647 $ 121,738,895 107,166,420 $
3.42% 6.17% # 5.42% # 5.46% # 4.66%
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(160)
Transient Motor
Fiscal Property Sales Occupancy Vehicle Franchise
Year Taxes Tax Tax In-Lieu Tax Tax
2012-13 8,941,441 15,028,866 333,243 12,842 1,683,174
2013-14 9,269,468 16,435,053 367,804 28,547 1,641,171
2014-15 9,611,244 16,368,367 390,666 27,575 1,646,884
2015-16 10,049,454 17,766,538 417,938 25,896 1,654,275
2016-17 10,591,691 17,637,948 422,313 28,793 1,582,026
2017-18 11,173,640 17,575,729 424,542 33,713 1,703,255
2018-19 11,734,058 19,468,221 461,474 30,845 1,729,336
2019-20 12,209,094 19,364,271 438,232 50,679 1,787,568
2020-21 12,954,453 21,325,436 433,797 46,481 1,876,407
2021-22 13,758,151 24,551,320 533,482 72,962 1,956,998
Change from
Base Year 2012-13 54% 63% 60% 468% 16%
Source: City of Pico Rivera Finance Division
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE (CONTINUED)
LAST TEN FISCAL YEARS
(161)
Utility Business
Users License
Tax Tax Total
3,397,538 1,249,040 30,646,144
3,504,363 1,342,826 32,589,232
3,525,036 1,370,210 32,939,982
3,385,361 1,432,213 34,731,675
3,276,231 1,210,024 34,749,026
3,142,090 1,382,588 35,435,557
2,939,221 1,454,896 37,818,051
3,064,500 1,209,199 38,123,543
3,157,258 1,611,415 41,405,247
3,567,128 1,393,084 45,833,126
5% 12% 50%
CITY OF PICO RIVERA, CALIFORNIA
REVENUE BASE BY CATEGORY
LAST TEN FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)
(162)
Total Total
Taxable Direct
Fiscal Residential Commercial Industrial Other* Tax-Exempt Assessed Tax Year Property Property Property Property Property Value Rate 2012-13 2,593,491,912 563,598,205 514,240,434 258,304,110 1,904,130 3,931,538,791 0.2639 2013-14 2,698,550,967 591,638,354 528,061,894 245,353,016 1,942,210 4,065,546,441 0.0941 2014-15 2,849,419,991 608,797,600 534,153,757 255,121,685 1,951,026 4,249,444,059 0.0938 2015-16 3,004,411,938 623,317,693 550,436,822 263,566,626 1,990,006 4,443,723,085 0.0936 2016-17 3,157,571,430 644,340,185 572,434,427 261,458,977 2,020,352 4,443,723,085 0.0933 2017-18 3,334,334,379 695,508,846 590,956,777 292,833,875 2,060,757 4,915,694,634 0.0930 2018-19 3,517,570,969 740,474,135 596,369,740 315,837,843 100,235 5,170,352,922 0.0927 2019-20 3,706,643,219 771,749,293 629,479,041 365,146,561 102,238 5,473,120,352 0.0924 2020-21 3,895,827,995 823,738,292 639,397,804 382,305,577 104,282 5,741,373,950 0.0923 2021-22 4,079,513,033 978,113,682 657,191,391 374,506,281 105,361 6,089,429,748 0.0921 *Other property includes recreational, institutional, vacant, and miscellaneous property.
Source: Los Angeles County Assessor
CITY OF PICO RIVERA, CALIFORNIA
PROPERTY TAX LEVIES AND TAX COLLECTIONS
LAST TEN FISCAL YEARS
(163)
COLLECTED WITHIN THE
FISCAL YEAR OF LEVY
Fiscal TAXES PERCENT OF COLLECTIONS IN FINAL
Year LEVIED AMOUNT LEVY
Subsequent Year
(includes refunds) AMOUNT
PERCENT OF
LEVY
2012-13 2,313,210 2,240,076 96.84% 38,305 2,278,381 98.49% 2013-14 2,388,030 2,311,646 96.80% 38,725 2,350,371 98.42% 2014-15 2,511,683 2,425,171 96.56% 20,888 2,446,059 97.39% 2015-16 2,552,922 2,511,115 98.36% - 2,511,115 98.36%
2016-17 2,674,309 2,638,929 98.68% - 2,638,929 98.68%
2017-18 2,840,017 2,798,898 98.55% - 2,798,898 98.55%
2018-19 2,955,805 2,914,751 98.61% - 2,914,751 98.61%
2019-20 3,169,235 3,055,052 96.40% - 3,055,052 96.40%
2020-21 3,322,924 3,261,695 98.16% - 3,261,695 98.16%
2021-22 3,496,505 3,433,991 98.21% - 3,433,991 98.21%
NOTE: Article XIII-A of the Constitution of the State of California adopted by the electorate in June 1978, precludes the City from a local property tax levy. All general-purpose property taxes are levied by the County and allocated to other governmental entities on a predetermined formula.
Source: County Assessor General Ledger, MuniServices, LLC
TOTAL COLLECTIONS TO DATE
CITY OF PICO RIVERA, CALIFORNIA
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(164)
Agency 2012-13 2013-14 2014-15 2015-16
Basic Levy 1.00000 1.00000 1.00000 1.00000
County Detention Facilities 1987 Debt 0.00000 0.00000 0.00000 0.00000 El Rancho Unified School District 0.09985 0.09571 0.09907 0.09630
LA Community College District 0.04875 0.04454 0.04017 0.03575 LA County Flood Control 0.00000 0.00000 0.00000 0.00000 Little Lake City School District 0.06942 0.08537 0.07964 0.06522 Los Nietos School District 0.03351 0.02810 0.03041 0.08062 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Montebello Unified School District 0.09630 0.09457 0.08750 0.08715 Rio Hondo Community College Dist 0.02812 0.02892 0.02821 0.02712 Whittier City School District 0.03439 0.06110 0.05792 0.05757 Whittier Union High School Dist 0.04556 0.04473 0.05270 0.05063 Total Direct & Overlapping Tax Rate 1.45940 1.48654 1.47912 1.50386 City's Share of 1% Levy Per Prop 13 0.08917 0.08917 0.08917 0.08917 City Redevelopment Rate 0.00000 0.00000 0.00000 0.00000 Total Direct Rate 0.26391 0.09412 0.09381 0.09355
(1) Overlapping rates are those of local and county governments that apply to property owners within the City.
Not all overlapping rates apply to all City property owners. (2) City's Share of 1% Levy is based on the City's share of the general fund tax rate. (3)Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.
CITY OF PICO RIVERA, CALIFORNIA
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES (CONTINUED)
LAST TEN YEARS
(165)
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.09627 0.19173 0.17840 0.17835 0.18754 0.15321
0.03596 0.04599 0.04621 0.02717 0.04016 0.04376
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.07063 0.08396 0.06878 0.06576 0.06442 0.05249
0.00350 0.00350 0.00350 0.00350 0.00350 0.00350
0.14705 0.13514 0.13921 0.09306 0.09706 0.09031
0.02808 0.02748 0.02554 0.02571 0.01361 0.01526
0.05441 0.04781 0.05534 0.05096 0.05151 0.04780
0.06035 0.05781 0.05822 0.05502 0.05433 0.05395
1.49625 1.59342 1.57521 1.49952 1.51214 1.46028
0.08917 0.08917 0.08917 0.08917 0.08917 0.08917
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.09330 0.09301 0.09280 0.09245 0.09231 0.09210
CITY OF PICO RIVERA, CALIFORNIA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(166)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Paramount Pico Rivera Industrial $ 83,995,603 1.38%
Vestar California XXVI LLC 75,216,953 1.24% 67,538,683 $ 1.80% BCORE Mercury Lane Owner LLC 62,000,000 1.02%
Majestic AMB Pico Rivera 48,030,449 0.79% 40,880,783 1.09% 8540 Whittier Boulevard 41,400,435 0.68%
Wal-Mart Real Estate Business Trust 38,210,384 0.63% 32,860,662 0.80% Pico Rivera Holdings LVT LLC 37,132,826 0.61%
Pavilion Affordable Housing LP 33,975,375 0.56%
GGF Pico Rivera LLC 33,242,566 0.55% 26,329,507
Airef Pico Rivera Distribution Center 33,230,739 0.55%
Iron Mountain Information 35,323,793 0.44%
Princeton Medical Holdings LLC 30,287,000 0.81%
General American Life Insurance Company 27,121,587 0.72% Showprop Pico Rivera 24,820,949 0.66%
Bakemark Ingredients West 21,944,870 0.57%
Public Storage Inc 21,338,578 0.57%
$ 486,435,330 7.99% 328,446,412 $ 8.35%
Excludes government and tax-exempt property owners
Total City Value for 2012-13 $ 3,931,538,791
Total City Value for 2021-22 $ 6,089,429,748
Source: Los Angeles County Assessor 2021-22 and 2012-13 Combined Tax Rolls 2021-22 2012-13
CITY OF PICO RIVERA, CALIFORNIA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(167)
Taxpayers Business Type Taxpayers Business Type
1 76 Service Stations 76 Service Stations
2 Arco AM PM Service Stations Arco AM PM Service Stations 3 Arco AM PM Service Stations Arco AM PM Service Stations 4 Calply Building Materials Cal Wholesale Material Supply Building Materials 5 Chevron Service Stations Chevron Service Stations
6 Chevron Service Stations Chevron Service Stations
7 Cintas Business Services Cintas Business Services
8 Dal Rae Fine Dining Circle K Service Stations
9 Lowes Building Materials Food 4 Less Grocery Stores
10 Marshalls Family Apparel Home Depot Building Materials 11 McDonalds Quick-Service Restaurants King Taco Quick-Service Restaurants 12 Miss Lola Fulfillment Centers Kwik/Al Sal Oil Service Stations 13 Raising Cane's Quick-Service Restaurants Lowes Building Materials 14 Ross Family Apparel Marshalls Family Apparel
15 Rush Peterbilt Truck Center New Motor Vehicle Dealers McDonalds Quick-Service Restaurants 16 Saw Service of America Heavy Industrial Oxnard Building Materials Building Materials 17 Shell Service Stations Pico Rivera Gas & Carwash Service Stations 18 Sunbelt Rentals Repair Shop/Equip. Rentals Ross Family Apparel 19 Target Discount Dept Stores Rush Peterbilt Truck Center New Motor Vehicle Dealers 20 Unisource Office Supplies/Furniture Saw Service of America Heavy Industrial 21 United Rentals Repair Shop/Equip. Rentals So Cal Material Handling Warehse/Farm/Const. Equip. 22 Versai Petroleum Petroleum Prod/Equipment Target Discount Dept Stores 23 Vesta Home Home Furnishings Unisource Office Supplies/Furniture 24 Walmart Supercenter Discount Dept Stores United Rentals Repair Shop/Equip. Rentals 25 Whittier Fertilizer Garden/Agricultural Supplies Walmart Supercenter Discount Dept Stores Percentage of Fiscal Year Total Paid by Top 25 Accounts = 2021-22 64.68%
2012-13 65.32%
NOTE: The names are listed in alphabetical order and not by sales tax volume.
Source: Hinderliter, de Llamas & Associates, State Board of Equilization Fiscal Year 2021-22 Fiscal Year 2012-13
CITY OF PICO RIVERA, CALIFORNIA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(168)
Net Finance Authority Net
Fiscal County Pension Revenue Revenue Pension
Year Deferral Obligation (3) Bonds (1) Bonds Obligation 2012-13 - (2) - 48,155,000 33,475,542 -
2013-14 - (2) - 46,422,768 32,845,617 -
2014-15 - 24,172,149 (2) 32,190,692 44,404,619 3,474,478 2015-16 - 25,366,413 (2) 31,510,767 42,271,468 3,646,800 2016-17 - 28,485,966 (2) 32,438,350 40,013,319 4,096,656 2017-18 - 31,078,035 (2) 31,439,322 37,620,169 4,473,787 2018-19 - 30,962,654 (2) 45,590,194 35,082,018 4,967,451 2019-20 - 33,878,412 (2) 44,277,732 32,393,869 5,146,415 2020-21 - 34,179,750 (2) 42,930,248 29,545,719 6,603,167 2021-22 23,242,557 (2) 41,542,775 9,577,364 5,214,285
(1) The Finance Authority Revenue Bonds are backed by lease payments made from General Fund Revenues. These lease payments and long-term debt are included in the Statement of Net Position.
(2)
(3)
Governmental Activities Business-Type Activities
Upon dissolution of the former redevelopment agency
on February 1, 2012, the County deferral obligation
was transferred to the Successor Agency and is no
longer an obligation of the City.
City implement GASB 68 in FY 1415 and recognize pension obligation.
Prior Year Governmental Activities information had been updated to provide figures from FY 17-18 to FY 20-21.
CITY OF PICO RIVERA, CALIFORNIA
RATIOS OF OUTSTANDING DEBT BY TYPE (CONTINUED)
LAST TEN FISCAL YEARS
(169)
Total Percentage Debt
Primary of Personal Per
Government Income Capita
7.03% 1,295 81,630,542
6.69% 1,241 79,268,385
8.68% 1,631 104,241,938
8.66% 1,599 102,795,448
8.85% 1,640 105,034,291
8.73% 1,628 104,611,313
9.12% 1,821 116,602,317
8.61% 1,826 115,696,428
7.61% 1,793 113,258,884
4.79% 1,295 79,576,981
CITY OF PICO RIVERA, CALIFORNIA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(170)
Finance
General Authority Total Percent of Debt
Fiscal Obligation Revenue Primary Assessed Per
Year Bonds Bonds (1) Government Value Capita
2012-13 - 33,475,542 33,475,542 0.851% 530.34
2013-14 - 32,845,617 32,845,617 0.808% 520.92
2014-15 - 32,190,692 32,190,692 0.758% 503.98
2015-16 - 31,510,767 31,510,767 0.709% 493.11
2016-17 - 32,438,350 32,438,350 0.730% 506.49
2017-18 - 31,439,322 31,439,322 0.640% 489.25
2018-19 - 45,590,194 45,590,194 0.882% 711.98
2019-20 - 44,277,732 44,277,732 0.809% 698.67
2020-21 - 42,930,248 42,930,248 0.748% 679.74
2021-22 - 41,542,775 41,542,775 0.682% 676.13
(1)
Note: Details regarding the outstanding debt can be found in the notes to the financial statements.
Source: City of Pico Rivera Finance Department
The Finance Authority Revenue Bonds are backed by lease payments made from General Fund Revenues. These lease payments and long-term debt are included in the Statement of Net Position.
CITY OF PICO RIVERA, CALIFORNIA
DIRECT AND OVERLAPPING DEBT
JUNE 30, 2022
(171)
2021-22 Assessed Valuation: 4,954,321,179 $
Incremental Valuation: 1,135,108,569
Adjusted Assessed Valuation: $3,819,212,610
Total Debt City’s Share of
6/30/2022 % Applicable (1) Debt 6/30/22
DIRECT DEBT
City of Pico Rivera 100.000% 41,542,775 41,542,775
TOTAL DIRECT DEBT 41,542,775 41,542,775
OVERLAPPING DEBT:
Metropolitan Water District 9,835,780 0.368% 36,196
Los Angeles Community College District 4,146,515,000 0.013% 539,047 Rio Hondo Community College District 113,112,824 13.079% 14,794,026 El Rancho Unified School District 99,377,735 99.996% 99,373,760 Montebello Unified School District 155,962,324 0.684% 1,066,782 Whittier Union High School District 142,799,361 0.488% 696,861 Los Nietos School District 41,732,715 0.046% 19,197
Whittier City School District 69,530,000 1.762% 1,225,119 TOTAL OVERLAPPING DEBT 4,778,865,739 117,750,988
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 159,293,763 (1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.
Ratios to 2021-22 Assessed Valuation:
Direct Debt 0.84%
Total Overlapping Tax and Assessment Debt………… 2.38%
Ratios to Adjusted Assessed Valuation:
Direct Debt 1.09%
Total Overlapping Tax and Assessment Debt………… 3.08%
Combined Total Debt………………………………… 4.17%
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.
CITY OF PICO RIVERA, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(172)
Fiscal Year
2012-13 2013-14 2014-15 2015-16
Debt limit $ 596,007,885 $ 618,519,977 $ 643,657,163 $ 673,079,843 Total net debt applicable to limit - - - -
Legal debt margin $ 596,007,885 $ 618,519,977 $ 643,657,163 $ 673,079,843 Total net debt applicable to the limit as a percent
of debt limit 0.00% 0.00% 0.00% 0.00%
Legal Debt Margin Calculation
Assessed value $ 4,065,546,441 3,931,538,791 $ 4,249,444,059 $ 4,443,723,085 $ Add back: exempt real property 41,847,108 57,920,073 41,603,696 43,475,869 Total assessed value $ 4,123,466,514 3,973,385,899 $ 4,291,047,755 $ 4,487,198,954 $ Debt limit (15% of total assessed value) $ 596,007,885 $ 618,519,977 $ 643,657,163 $ 673,079,843 Debt applicable to limit - - - -
Legal debt margin $ 596,007,885 $ 618,519,977 $ 643,657,163 $ 673,079,843 Note: Under state finance law, the City of Pico Rivera 's outstanding general obligation debt should not exceed 15 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.
Source: Los Angeles County Assessor 2016/17 Combined Tax Rolls
CITY OF PICO RIVERA, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION (CONTINUED)
LAST TEN FISCAL YEARS
(173)
Fiscal Year
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
$ 710,507,871 $ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 - - - - - -
$ 710,507,871 $ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$ 4,699,049,996 $ 4,960,278,250 $ 5,223,378,886 $ 5,524,451,955 $ 5,741,373,950 $ 6,134,582,164 37,669,146 44,583,616 53,025,964 51,331,603 45,418,617 45,152,416 $ 4,736,719,142 $ 5,004,861,866 $ 5,276,404,850 $ 5,575,783,558 $ 5,786,792,567 $ 6,179,734,580 $ 710,507,871 $ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 - - - -
$ 710,507,871 $ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187
CITY OF PICO RIVERA, CALIFORNIA
PLEDGED REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
(174)
Less: Net Revenue
Fiscal Gross Direct Available for 1999 Bonded
Year Revenue (1) Costs (2) Debt Service Debt (P & I) Coverage 2012-13 10,148,149 (4,638,606) 5,509,543 1,641,063 3.36% 2013-14 11,311,659 (4,944,349) 6,367,310 1,638,813 3.89% 2014-15 10,934,757 (4,785,711) 6,149,046 1,638,925 3.75% 2015-16 10,787,717 (5,745,991) 5,041,726 1,638,500 3.08% 2016-17 11,969,572 (4,617,562) 7,352,010 1,635,875 4.49% 2017-18 11,825,467 (2,022,475) 9,802,992 1,636,050 5.99% 2018-19 11,995,293 (5,881,508) 6,113,785 1,638,750 3.73% 2019-20 12,398,054 (5,956,123) 6,441,932 1,638,700 3.93% 2020-21 12,260,342 (6,897,155) 5,363,187 1,635,900 3.28% 2021-22 12,457,186 (7,692,571) 4,764,615 1,635,350 2.91% (1) Total Water Authority revenues
(2) Total expenditures less depreciation, amortization on issuance costs and allocated costs Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2016-17 37,906,839 980,000.00 655,944 1,635,944 23.17
2017-18 43,598,587 865,000.00 1,061,150 1,926,150 22.64 2018-19 41,859,180 885,000.00 1,043,650 1,928,650 21.70 2019-20 41,115,931 900,000.00 1,023,450 1,923,450 21.38 2020-21 45,235,968 925,000.00 998,225 1,923,225 23.52
2021-22 49,034,402 955,000.00 965,520 1,920,520 25.53
(1) Total General Fund revenues
(2) In 2016 the City of Pico Rivera refinanced its 2009 Lease Revenue bonds Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2018-19 901,383 205,000.00 486,846 691,846 1.30
2019-20 871,222 255,000.00 577,969 832,969 1.05
2020-21 909,366 265,000.00 567,769 832,769 1.09
2021-22 1,126,471 275,000.00 557,169 832,169 1.35
(1) Total Metropolitan Transportation Authority Measure M local return revenues Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2021-22 8,595,990 - 93,224 93,224 92.21
(1) Total Successor revenues
(2) In 2021 the City of Pico Rivera refinanced its 2001 Redevelopment Agency Tax Allocation Refunding Bonds Source: City of Pico Rivera Finance Department
2016 LEASE REVENUE BONDS (2)
1999 WATER AUTHORITY REVENUE BONDS - Last Ten Fiscal Years 2018 CERTIFICATES OF PARTICIPATION
2021 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING BONDS (2)
CITY OF PICO RIVERA, CALIFORNIA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(175)
Per
Personal Capita
Fiscal Income Personal Unemployment
Year Population (1) (in thousands) (2) Income (2) Rate (3) 2012-13 63,053 1,161,020 18,274 8.60%
2013-14 63,873 1,185,419 18,559 7.10%
2014-15 63,902 1,200,974 18,794 7.60%
2015-16 64,272 1,187,489 18,476 6.20%
2016-17 64,046 1,197,852 18,703 4.80%
2017-18 64,260 1,278,319 19,893 4.70%
2018-19 64,033 1,343,604 20,983 4.20%
2019-20 63,374 1,383,034 21,823 21.00%
2020-21 63,157 1,487,725 23,556 13.40%
2021-22 61,442 1,662,431 27,057 4.60%
(1) Population Projections are provided by the California State Department of Finance Projections. (2) Income Data is provided by the United States Census Data and is adjusted for inflation. (3) Unemployment Rate is provided by the EDD's Bureau of Labor Statistics Department.
Source: MuniServices LLC
CITY OF PICO RIVERA, CALIFORNIA
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(176)
% of Total % of Total
City City
Employer Business Type Employees Employment Employees Employment Los Angeles Unified School District Exempt 350 1.20%
Wal-Mart Supercenter Department Store 250 0.86% 425 1.57% Feit Electric Company, Inc Warehouse For Distribution 197 0.67% Target Department Store 191 0.65% 201 0.74%
Parts Authority LLC Wholesale Business 191 0.65%
Riviera Nursing & Convalescent Healthcare & Hospitals 173 0.59% Vesta Home Home Furnishing & Applianc 142 0.49%
Manning Beef LLC Meat - Miscellaneous 125 0.43%
American Meat Companies Meat - Wholesale 111 0.38%
El Rancho Vista Healthcare Center Healthcare & Hospitals 110 0.38% Bay Cities Container Yard Storage Use Only 104 0.36%
El Super Grocery Store 104 0.36%
Raising Cane's Chicken Fingers Restaurant Restaurant - Without Alcoho 104 0.36% Unisource Solutions Wholesale Business 103 0.35%
Amini Innovation Corp Aico Wholesale Business 95 0.33%
Southern California Permanente Medical Group Healthcare & Hospitals 87 0.30% Dal Rae Restaurant Restaurant - With Alcohol Sa 86 0.29% Boxpress Mfg Manufacturing 85 0.29%
Aoclsc, Inc Manufacturing 85 0.29%
Miss Lola Service - General 84 0.29%
Mcdonald's Restaurant - Without Alcoho 82 0.28%
Food 4 Less Grocery Store 75 0.26%
Reeve Store Equipment Co Manufacturing 71 0.24%
ABF Freight System, Inc Exempt 70 0.24%
Krieger Steel Products Manufacturing 68 0.23%
Total Top Employers 3,143 10.76% 626 2.32%
Total City Employment (1) 29,200 27,000
Source: HDL Companies
*This count represents the entire school district not just employees located in Pico Rivera. ** Includes FTE and temp service employees
(1) Total City Labor Force provided by EDD Labor Force Data. 2021-22 2012-13
CITY OF PICO RIVERA, CALIFORNIA
FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
(177)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 General Government 29 29 30 25 30 30 31 30 29 31
Public Safety 5 5 5 8 8 9 9 7 7 7
Public Works 47 47 54 55 64 65 66 51 51 48
Parks & Recreation 20 20 21 21 26 26 27 24 25 26
Community Development 16 16 16 15 20 19 20 20 20 24
Water 11 11 11 8 9 10 10 10 10 9
Total 128 128 137 132 157 159 163 142 142 145
Source: City of Pico Rivera Finance Department
The city historically only reports full-time salaried positions on this schedule.
Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
(178)
Fiscal Year
Function 2012-13 2013-14 2014-15 2015-16
Police:
Calls dispatched 22,369 21,602 21,878 24,523
Crime reports 7,062 9,775 10,725 10,268
Moving citations 4,947 4,822 4,250 3,296
Parking citations - Sheriff 302 549 147 171
Parking citations issued by Public Safety 16,161 16,303 15,152 15,468 Streets and Highways:
Asphalt repair (in tons) 669 160 427 100
Curb & gutter repair (lineal ft.) 1,059 26 530 500
Sidewalk repair (lineal ft.) 4,690 877 1,200 1,600
Traffic signals maintained 51 42 45 47
Water:
Number of customer accounts 9,510 9,393 9,400 9,435
Average daily consumption (millions of gallons) 6 5 5 4 Water samples taken (annual) 783 900 1,162 520
Sewers:
Feet of sewer mains root cut/chemically treated 11 11 11 0* Maintenance:
Square ft. graffiti removal 120,200 95,353 101,419 100,000 Streetsweeping miles 21,285 21,285 21,285 10,400
Trees trimmed per year 4,543 4,258 4,998 5,000
Culture and Recreation:
Youth sports 835 856 856 818
Aquatics 11,800 16,179 16,179 6,960
Recreation classes 14,983 16,415 16,415 4,825
Senior Center participants 133,143 117,978 117,978 110,632 (A) Information is not available
(*) City sewer rights were returned to LA County Public Works in FY 2015-16
CITY OF PICO RIVERA, CALIFORNIA
OPERATING INDICATORS BY FUNCTION (CONTINUED)
LAST TEN FISCAL YEARS
(179)
Fiscal Year
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
26,177 25,363 22,854 31,780 29,039 29,532
7,275 6,680 6,288 5,969 5,255 5,563
3,146 3,931 3,216 1,770 2,720 3,168
158 69 167 74 20 22
16,285 15,985 28,037 16,543 20,974 20,957
2,523 7,263 4,813 4,061 1,312 12,114
146 121 200 606 1,220 5,904
2,523 7,263 208 2,008 2,400 9,010
47 47 47 47 48 48
9,435 9,435 9,435 9,450 9,452 9,470
444
728 749 840
000000
150,000 229,000 117,536 89,299 260,000 265,000
21,285 21,285 21,285 21,285 21,285 21,285
4,000 3,000 2,500 751 614 3,035
671 517 825 292 0 530
10,715 10,502 11,114 8,811 0 0
4,932 7,076 10,398 5,107 2,289 1,678
135,889 151,669 135,354 97,080 0 5,500
CITY OF PICO RIVERA, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
(180)
Fiscal Year
Function 2012-13 2013-14 2014-15 2015-16
Public Safety:
Police stations 1 1 1 1
Number of patrol units 12 12 12 12
Highways and Streets:
Miles of streets 115.2 115.2 115.2 115.2
Traffic Signals 43 43 43 47
Water:
Number of active water wells 8 8 8 8
Number of reservoirs 3 3 3 3
Miles of lines & mains 98 98 98 98
Sewer:
Miles of sanitary sewers 285 285 285 285
Miles of flood control channel 17 17 17 17
Culture and Recreation:
Number of parks 8 8 8 8
Number of community centers 6 6 6 6
CITY OF PICO RIVERA, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION (CONTINUED)
LAST TEN FISCAL YEARS
(181)
Fiscal Year
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
11 1 1 1 1
14 14 14 14 14 14
115.2 115.2 115.2 115.2 115.2 115.2
47 47 47 47 48 50
88 8 8 8 8
33 3 3 3 3
98 98 98 98 98 98
285 285 285 285 285 285
17 17 17 17 17 17
88 8 8 8 9
66 6 6 6 6
City of Pico Rivera • 6615 Passons Boulevard • Pico Rivera, CA 90660 Tel. no. (562) 942-2000 • www.pico-rivera.org
FISCAL YEAR 2021-22
ACCOMPLISHMENTS
REPORT
PICO RIVERA
Enclosure 2
Steve Carmona
City Manager
Angelina Garcia
Assistant City Manager
Anna Jerome
City Clerk
Jane Guo
Director of Administrative Services
Alvaro Betancourt
Director of Community & Economic
Development
Karine Shirinian
Director of Human Resources
Javier Hernandez
Director of Innovation and
Communications
Pamela Yugar
Director of Parks & Recreation
Terry Rodrigue
Interim Director of Public Works
2 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report 16b
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 3 On behalf of the City Council and the entire City organization, I am pleased to present the City Accomplishments Fiscal Year 2021-22 report on the City of Pico Rivera’s initiatives and achievements from July 1, 2021 through June 30, 2022. This report summarizes this past year’s internal and external accomplishments and successes, both organizationally and at large. It showcases just some of the many goals reached this year and highlights further objectives that the City plans to accomplish in the coming years.
The City’s performance goals, priorities, and strategies focus on the following areas:
• Fiscal and Organization Sustainability
• Economic Development and Land Use
• Infrastructure
• Health, Wellness and Safety
• Community Engagement
I am proud of the work my team and I do every day to support and implement the City Council’s goals and priorities to serve the public. As a product of this community, I pride myself on providing-exemplary service to all who live, work, or relax in this community.
“To learn more about the exciting projects, plans, and events throughout the city, I encourage you to explore our city website. I also welcome you to review my monthly City Manager’s report for the latest and greatest here in Pico Rivera.”
Steve Carmona
City Manager
City of Pico RIvera
6615 Passons Blvd.
Pico Rivera, CA 90660
www.pico-rivera.org
Dr. Monica Sánchez
Mayor
Erik Lutz
Mayor Pro Tem
Gustavo V. Camacho
Councilmember
Raul Elias
Councilmember
Andrew C. Lara
Councilmember
4 City of Pico Rivera Fiscal Year 2021 -22 Accomplishments Report
To positively impact our community by providing
excellent city services, facilitating responsible
stewardship of resources, and actively engaging
our residents, businesses, and visitors.
CITY OF PICO RIVERA STRATEGIC PLAN
Pico Rivera will be a leading progressive, thriving,
connected community with a high standard for
quality of life and collaborative governance.
Cra is a skill in planning, making, or executing.
The acronym CRAFT is used to reinforce the
purpose and importance of the organization’s
values:
Collaboration
Respect
Accountability
Fairness and Inclusion
Transparency
ECONOMIC DEVELOPMENT
AND LAND USE
Encourage the development of underutilized space,
plan for growth, and engage businesses to transform
the City as an economic and cultural hub.
HEALTH, WELLNESS
AND SAFETY
Create a safe and thriving City with low crime and
high standards for health and wellness.
COMMUNITY
ENGAGEMENT
Foster a connected, collaborative, and actively
participating City and workforce.
FISCAL AND ORGANIZATION
SUSTAINABILITY Create a City government build to adapt to change INFRASTRUCTURE Plan, fund, build, and maintain reliable and cost-effective infrastructure that contributes to enhancing quality of life.
Our Guiding Plan
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 5 2021-22 City Awards
and Recognition
Awarded $481,729 from the
Outdoor Equity Grants Program
to help establish local activities
and trips to natural areas.
Awarded $50,000 for the Climate
Resiliency Grant from Southern
California Gas Co. to help local
cities prepare for and recover
from climate risks.
Awarded $8.1 million in Clean
California Grants for Median and
Parkway Beautification Projects.
Awarded $2.5 million in
the House Appropriations
Committee’s 2022 energy
and water funding bill for the
advancement of the City’s PFOS
and PFOA Filtration Projects.
Awarded $17 million in the
State of California budget
funding for Rio Hondo Park
and Smith Park Aquatic Center
renovations.
Awarded $300,000 as part of the
California Department of Housing
and Community Development’s
Local Early Action Planning (LEAP)
Grant Program
6 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report Residents of the
City of Pico Rivera
City Attorney
City Manager
City
Council
Director of
Adiministrative Services
Director of
Human Resources
Director of Innovation
and Communications City
Clerk
Sheriff
Captain
Director of
Public Works
Director of Parks
and Recreation
Director of Community
and Economic Development
Assistant
City Manager
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 7
To positively impact our community by providing
excellent city services, facilitating responsible
stewardship of resources, and actively engaging
our residents, businesses, and visitors.
CITY OF PICO RIVERA STRATEGIC PLAN
Pico Rivera will be a leading progressive, thriving,
connected community with a high standard for
quality of life and collaborative governance.
Cra is a skill in planning, making, or executing.
The acronym CRAFT is used to reinforce the
purpose and importance of the organization’s
values:
Collaboration
Respect
Accountability
Fairness and Inclusion
Transparency
ECONOMIC DEVELOPMENT
AND LAND USE
Encourage the development of underutilized space,
plan for growth, and engage businesses to transform
the City as an economic and cultural hub.
HEALTH, WELLNESS
AND SAFETY
Create a safe and thriving City with low crime and
high standards for health and wellness.
COMMUNITY
ENGAGEMENT
Foster a connected, collaborative, and actively
participating City and workforce.
FISCAL AND ORGANIZATION
SUSTAINABILITY Create a City government build to adapt to change INFRASTRUCTURE Plan, fund, build, and maintain reliable and cost-effective infrastructure that contributes to enhancing quality of life.
FY21- 22 ACCOMPLISHMENTS
FISCAL AND ORGANIZATIONAL
SUSTAINABILITY
The City of Pico Rivera is exceptionally well positioned to meet current and future challenges facing local government and our community. This publication signifies the City’s commitment to work together in a collaborative manner for the betterment of the greater community. These accomplishments and many more demonstrate our diligence and commitment to implementing our strategic priorities and ensuring the City’s economic prosperity and bettering the lives of our citizens and businesses.
8 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report • Implementation of industry “Best Practices”:
ӹ Amended Procurement Policies and Procedures and
related Municipal Code Sections
ӹ Adopted Capital Asset Capitalization Policy
ӹ Adopted Pension Obligation Bonds/Pension Policy
ӹ Renewed the Investment Policy
ӹ Certified the Investment Policy with California
Municipal Treasurers Association
ӹ Completed Phase 1 of the Citywide Telecommunition
System Replacement:
ӹ Migrated to Microsoft Office 365
ӹ Implemented Goto - Cloud-based phone system
ӹ Implemented Office 365 - Cloud-based e-mail and
collaboration suite
ӹ Implemented Pulseway – Cloud-based remote
monitoring and management
ӹ Completed IT Glue – Centralized IT documentation
platform
• Implemented ESET – Cloud-based antivirus protection
PERFORMANCE ACTIVITY FOR FISCAL AND ORGANIZATION SUSTAINABILITY Performance Activity
Accounts Payable Invoices Processed
IT Help Desk Request Resolved
ACH Accounts Processed
FY 2020-21
14,328
379
1,708
FY 2021-22
14,811
499
1,784
• Adopted a Five-year Strategic Plan, including
a revised vision, mission and goals, and
departmental action plans
• Received grant awards of $6.66 million from
various granting agencies
• Implemented Code of Ethics & Conduct Policy
• Refinanced two (2) Bonds to generate a substantial
savings of approximately $10.95 million
• Obtained an AA Bond Rating by Standard and
Poor’s (S&P) after S&P evaluated the City’s
creditworthiness for potential issuance of Pension
Obligation Bonds
• Received GFOA Award for Excellence in Financial
Report for the 2021 Annual Comprehensive
Financial Report (ACFR)
• Received GFOA Award for Distinguished Budget
Presentation for Year 2 of the FY 2021-23 Biennial
Budget
• Implemented Cylance Advanced Guard–
Ransomware protection
Measure AB Approved
In the City’s ongoing efforts to advance the vision and priorities from the Strategic Plan, the City continued to explore revenue enhancements to support the City’s ongoing fiscal stability. Measure AB was proposed to modernize the City’s outdated Business License fee structure, which has not been substantially updated in 55 years since 1967. Measure AB promoted equity and fairness for all businesses in the community.
Voters overwhelmingly approved Measure AB with over 75% voting in favor of the item. The City expects $5.8 million each year that goes directly into the City to improve public safety, enhance infrastructure, and sustain clean parks.
FISCAL AND ORGANIZATIONAL SUSTAINABILITY ACCOMPLISHMENTS Create a City government
built to adapt to change.
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 9
ECONOMIC DEVELOPMENT AND
LAND USE ACCOMPLISHMENTS
10 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report • Finalized tenant improvement renovations for Chase Bank and three (3) new retail tenant improvement plans at Crossroads Plaza
• Approved a 54,000 square foot retail project at Beverly Crossing near the southeast corner of Beverly & Rosemead Boulevards and finalize the review of a drive through queuing lane • Approved a Mobile home Rent Stabilization Ordinance and established a property registration program • Approved a Digital Billboard Ordinance established for two (2) areas for revenue sharing development agreements
• Approved a Vacant Lot Ordinance to improve the visual appearance of vacant properties • Approved a Smoke Shop Ordinance and established a Smoke Shop moratorium • Approved a Flavored Tobacco Ordinance and established a Tobacco Retail Licensing Fee program • Approved a Car Wash moratorium to study the impacts to surrounding properties • Approved an Industrial Uses Ordinance with additional clarification on zoning code and amended the Land Use Chart to require a Conditional Use permit for industrial zones • Cooperative Agreements with Industrial Developers for revenue generating uses (Baybar Road and Carlson Site projects)
• Issued (25) grants for the Small Business Grant program to small businesses operating within Community Development Block Grant eligible areas impacted from COVID-19 • Property acquisition for redevelopment of underutilized real estate near Whittier Blvd
PERFORMANCE ACTIVITY FOR ECONOMIC DEVELOPMENT AND LAND USE Performance Activity
Building Permits Processed
Business Licenses Processed
Utility Bills Accounts Processed
Cash Receipts Transactions Processed
Cash Receipts Amount Collected
New Water Accounts Processed
New Water Accounts Amount Collected
FY 2020-21
1,653
2,211
57,549
64,002
$94,618,911
386
$55,393
FY 2021-22
1,809
2,325
59,591
62,681
$101,601,223
383
$57,937
ECONOMIC DEVELOPMENT AND LAND USE ACCOMPLISHMENTS
Encourage the development of vacant/
underutilized space, creatively plan for growth,
and engage the business community to
transform the city as an economic and cultural
hub.
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 11
INFRASTRUCTURE
ACCOMPLISHMENTS
12 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report Improvement projects for the reduction of traffic
congestion
• Completed the design of two (2) Highway Safety
Improvement Projects to improve the safety and
accessibility for motorists, pedestrians, and cyclists
• Completed design of the ADA City Hall improvements
project to ensure Americans with Disabilities Act (ADA) compliance and standards
• Completed construction of Telegraph Raised Median
Improvements
• Completed Water Main Replacement Project at
Olympic Blvd, Garrick Ave, and Pico Vista Rd
• Completed Well 4 Rehabilitation and Base Raising
• Completed Security Fencing Upgrades at Plant 2 &
Well 5
• Installed ten (10) new Water Service Connections for
Accessory Dwelling Units (ADU)
• Completed beautification of Patio area and walkway
including landscape and concrete repairs at the Senior
Center
• Upgraded light poles and irrigation system at the
Women’s Auxiliary Park
• Allocated American Rescue Plan Act Funding of $14.8
million to critical Capital Improvement Projects
• Received award of $8.5 million in State-level direct
funding request to renovate and rehabilitate the Smith
Park Aquatic Center
• Received award of $8.5 mi llion in State-level direct funding request to renovate and rehabilitate Rio
Hondo Park
• Received award of $8.1 million for two (2) grants under Clean California Local Grant Program for Medians and
Parkway Beautification Projects
• Received award of $244,100 from the Rivers &
Mountains Conservancy for the Whittier Blvd. Bike &
Pedestrian Bridge Project
• Received award of $500,000 from LA Metro as a coapplicant for the Eastside Open Street Event along Whittier Bl
• Completed the Durfee Avenue Grade Separation
project. Total project budget approximately $108
million
• Completed the Rio Hondo Park playgrounds
replacement projects
• Completed three (3) Hot Spots Intersection
INFRASTRUCTURE ACCOMPLISHMENTS
Performance Activity
Replaced 12-inch Gate Valves
Maintenance Work Orders
Replaced old meters
Replaced Service Connections Citywide
New 1-inch Service Connections Installed by Contractor for Residential Pothole Repair Works Orders
Encroachment, Grading, Driveway, etc. Permits Issued
FY 2020-21
3 575
1,000
100
13 611
247
FY 2021-22
2 579
560
195
10 563
304
PERFORMANCE ACTIVITY FOR INFRASTRUCTURE
Plan, fund, build, and maintain reliable
and cost-effective infrastructure that
contributes to enhancing quality of life.
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 13
HEALTH, WELLNESS AND
SAFETY ACCOMPLISHMENTS
14 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report • Successfully provided a Grab and Go summer meal
program for children ages 18 and under. 59,647
meals were provided with the help of volunteers who
donated approximately 1,485 hours to the Summer
Food Service Program
• Awarded a grant from No Kid Hungry in the amount of
$24,500, which supported the existing Summer Food
Service Program in helping provide additional staff
support, equipment, PPE, and promotional materials
• Operated a COVID-19 testing center that served 4,300
people, and three (3) pop-up vaccine clinics helping to inoculate 400 people
• Partnered with Pico Care Pharmacy to provide Pfizer
and Moderna booster vaccines at the Pico Rivera
Senior Center
• Completed Flock Safety project and installed
Automated License Plate Recognition (ALPR) systems
that automatically capture vehicles’ license plate
information
• Completed Verkada - Cloud-based Video Security for
Surveillance at City parks and City Yard
• Distributed a total of $323,921 to PRIME customers to provide COVID-19 debt relief as part of the California
Arrearage Payment Program (CAPP).
• Provided over 70 free Smart Thermostats to residents
to save money and reduce electricity demand during
extreme heat events.
Performance Activity
Tree Trimming Work Orders
Graffiti Removal Work Orders
Square Feet of Graffiti Removed
Illegal Dumping Work Orders
Tons of Trash Collected
Parking Enforcement Citations
Section 8 Requests Processed
Section 8 Housing Assistance Payments
Code Enforcement Cases
Rabies Clinic with Vetcare Services and SNP LA - pets served Rabies Clinic with Vetcare Services and SNP LA - vaccinations American Red Cross Blood Drives - donors
American Red Cross Blood Drives - pints collected
American Red Cross Blood Drives - lives saved
FY 2020-21
240
2,583
260,000
1,036
420
20,900
821
$4,799,861
184
335
250
24 22
66 FY 2021-22
3,035
2,683
265,000
688
450
20,979
1,398
$5,130,351
567
336
296
49 54
156
PERFORMANCE ACTIVITY FOR HEALTH, WELLNESS, AND SAFETY
• Enhanced essential Emergency Operations
Center (EOC) Communications Center equipment,
including replacement of defective satellite modem,
verification/inspection of emergency phone system,
inventoried all EOC laptops and installed secured
charging station-equipped storage cabinet to ensure
the emergency equipment is not only secured, but
always ready for emergency use
• Participated in the California Water and Wastewater
Arrearage Payment Program (CWWAPP), and
assisted with providing financial relief to 296 eligible customers of more than $148,000 in credits, to those
impacted by COVID-19 and past due on their water
utility bill payments
• Credit more than 300 Water Customer Accounts for
Past Due Invoices, totaling $150,000
• Enrolled in the Low-Income Household Water
Assistance Program (LIHWAP) that is federally funded
and administered by the U.S. Department of Health
and Human Services and the California Department of
Community Services and Development. LIHWAP is a
customer-based program for low-income households
that are qualified to use a one-time credit for past due and current balances, including any penalties up to
$2,000 on water bills or wastewater bills.
• Installed two (2) outdoor water bottle filling stations with drinking fountains and pet fountains at Smith
Park, Pico Park, Rio Hondo Park, and Rivera Park
• Planted 62 trees at Pio Pico Park with the assistance of the Urban Forest and volunteers for Arbor Day
Create a safe and thriving city with low crime
and high standards for health and wellness.
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 15 Your one-stop shop for
all Pico Rivera city services.
Virtual City Hall (VCH) is a digital platform
that enables you to engage your city from
the palm of your hand.
• Participate in public meetings
• Submit & track service requests
• Pay city bills
• Apply for permits & licenses
• Submit & review plans
• Register for activities & events
• Reserve city facilities, and much more
VCH is designed to support decision making,
improve transparency, enhance operations,
streamline services, and promote fiscal
sustainability. This innovative system can
adapt to emerging needs, shifting
priorities, and evolving
technologies.
Scan the QR code to visit online
or download the app. Create a user
account, explore the new features,
and customize your
own Virtual City
Hall experience
today.
VIRTUALCITY HALL
A New Way to Engage
Submit a Plan Pay a Bill
Bid on Projects
Submit & Track a
Service Request
COMMUNITY ENGAGEMENT
ACCOMPLISHMENTS
16 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report • Completed The Roldan Futsal Pitch and Basketball
Courts “Mini-Pitch” at Pico Park
• Completed the first Community Survey in 14-years
to collect statistically reliable data on residents’
satisfaction, priorities, and concerns
• Publicly launched Virtual City Hall, inclusive of a new city website and mobile app, a service request work
management system, a code/parking enforcement
case management system, a new portal for council
meeting agendas & minutes, a GIS data and story
map portal, a crime & safety data analytics and
mapping tool, a portal for all RFP/Qs, multi-language
settings, a new portal for all city and private
development projects and plans
Date
July 31, 2021
Aug. 3, 2021
Aug. 14, 2021
Aug. 25, 2021
Aug. 28, 2021
Oct. 8, 2021
Oct. 23, 2021
Dec. 4, 2021
April 6, 2022
April 9, 2022
May 30, 2022
Aprox. Attendees
115
500
100
300
300
5,00
9,000
9,000
1,200
8,000
500
Date
Community Bike Ride
National Night Out
Movies Under the Stars
Community Outreach Event
Movies Under the Stars
Jalisco Mariachi Festival
Halloween Spooktacular
Holiday Festival & Tree Lighting
Certified Farmer’s Market (Wednesdays, April 6 - Agusut 31) Easter Eggstravaganza
Memorial Day Ceremony
COMMUNITY ENGAGEMENT ACCOMPLISHMENTS
• Hosted a variety of drive-thru/parking lot Special
Events for older adults, including a Luau, Mariachi
Concert, Moonlight Drive-In, and Jolly Holidays to
keep participants entertained safely
• Successfully and safely brought back in-person
Summer & Winter Camps for youth ages
Kindergarten through 8th grade; camps were fully
booked for each session offered
• Virtual “Rec at Home” program, including 14 virtual
special events and contests, 29 Rec at Home videos,
and 250 posted activities
• Held Mayor’s Women’s Conference
• Successfully held a variety of in-person Special Events Foster a connected, collaborative, and
actively participating city and workforce.
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 17 LOOKING AHEAD 2023
AND WE’RE NOT DONE...
ADMINISTRATION
City Manager’s Office
• Long Term Strategic Plan
• Virtual City Hall & Mobile App
• Historic Whittier Bl. Revitalization Program
• City Council Chamber Audio/Visual Upgrades
• Whittier Narrows Dam Complex (Sports Arena,
safety project, comms plan, etc.)
• Legislative Program & Advocacy
• Office of Sustainability
City Clerk
• Digital Agenda Management
• Meeting/Agenda Portal
• Council Chamber Audio/Visual Upgrades
• Questy’s integration with GIS
• Document Conversion (scanning)
ADMINISTRATIVE SERVICES
• Explore Revenue Enhancements
• Implementation of Transparency Software
• Complete Collective Bargaining with Labor Groups
“Negotiations”
• Implement formal Budget Policy
• Continue working towards “Paperless” Workflows
• Streamline Accounts Payable Importing Process
• Expedite Credit Card Transaction Reconciliation via
Mobile App
• Present a balanced Biennial Budget FY 2023-2025
• Apply for the GFOA Award for Excellence in Financial
Report
• Apply for the GFOA Award for Distinguished Budget
Presentation
• Storage & Backup infrastructure upgrade
• City Wide Network backbone upgrade
• Microsoft O365 SharePoint migration
• Upgrade Desktops / Laptops
• Monthly IT Training
• Implement Cloud-based document management
software upgrade
• Develop and implement IT policies and processes
Pico Rivera Innovative Municipal Energy
• Solar + Battery Storage Distributed Energy Resources
(DER) Pilot Program for PRIME Commercial and
Residential customers
• Launch the Disadvantaged Communities Green
Tariff Program, providing 100% local renewable
energy to low-income residential customers with
a 20% bill discount. PRIME will automatically enroll
approximately 6,500 residential customers that
already participate in the California Alternate Rates
for Energy (CARE) and Family Electric Rate Assistance
(FERA) programs.
• Electric Vehicle Supply Equipment (EVSE) Master Plan
and deployment of Electric Vehicle Charging stations
citywide.
• Development of the Climate Action Plan to reduce
citywide greenhouse gas emissions.
Waste Management
• Multi-year roll out of AB 1383 programing and
expanded waste hauling services
18 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report
PARKS AND RECREATION
• Apply for and receive grants to enhance recreation
programming
• Identify and capitalize on opportunities to acquire
and build new recreation facilities or park space.
• Develop a new design and engineered plans for both
the Smith Park Aquatic Center and the Rio Hondo
Park Youth Center. Begin construction on both
centers with estimated completion dates of late 2024
for the Youth Center and early 2025 for the Aquatic
Center. Each center will be closed to the public for
the duration of the projects.
• Revise City policies and resolutions to allow for
the general publics’ rental of Parks and Recreation
facilities and fields
• Complete renovations for the Senior Center patio,
Youth Center, Pico and Rivera Parks’ Gym HVAC, and
Rivera and Smith Parks’ facility roofing
• Align department operations and programs to
provide for long-term sustainability
• Develop a Parks & Recreation Master Plan
• Development of a Dog Park
PUBLIC WORKS
• Complete PFOA/PFAS Treatment Systems
• Complete COP funded pavement projects
• Complete Traffic Signal Synchronization Program
at three (3) Major Arterials
• Complete Construction of two (2) HSIP Projects
• Complete Design and start Construction of Median
Islands and Parkway Beautification Projects
• Complete Facilities Master Plan
• Complete Security System Master Plan
• Implement a Vehicle Replacement & Maintenance
Program
• Increase Tree Pruning Cycle
• Complete Urban Water Management Plan
• Complete Risk & Resiliency Assessment
HUMAN RESOURCES
• Update the City’s Outdated Job Descriptions
• Ongoing Management of the COVID-19 Pandemic
• Hold ten (10) Employee Trainings
• Develop and implement new employee policies
• Implement three (3) Programs to Prevent and/
or Reduce Work Related Injuries and Workers’
Compensation Claims
COMMUNITY AND ECONOMIC
DEVELOPMENT
• Housing Program for First Responders and
Substantial Rehabilitation Loans for eligible
households
• Washington Blvd TOD Specific Plan
• Whittier Blvd Business Improvement District
• Citywide Design Guidelines
• Sale of 9003 Beverly Blvd and Development of new
retail business
• Feasibility Study of Enhanced Infrastructure
Financing District
• Feasibility Study of Community Revitalization and
Investment Authority
• Virtual City Hall – 3Di Design & Implementation
(Parking, Building, Code and Business License)
• Public Right-of-Way Beautification (Union Pacific,
BNSF, Caltrans, LA County Flood Control, SCE & DWP
areas)
• Section 8 program will seek additional Administrative Funds from HUD to implement increase owner
participation to increase marketing and utilization of
Section 8 vouchers in the City
• Vacant Lot Ordinance Implementation
• Shopping Cart Ordinance
• Creation of Multi-Family Rental Inspection Program
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 19
PFOA/PFAS TREATMENT SYSTEMS
HISTORIC WHITTIER BLVD
REVITALIZATION PROGRAM
ADA RENOVATIONS TO THE
SENIOR CENTER PARKING LOT 2023 AND RESTROOM FACILITIES
LOOKING AHEAD
20 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report History
Pico Rivera was founded in the 1870’s
when major railroad companies completed
rail lines in the area. Newly arrived
farmers planted large groves in the fertile
land between Rio Hondo and San Gabriel
Rivers. Eventually, the two communities,
Pico and Rivera, were established and
grew into a rustic agricultural setting.
During the 1950’s, homes, schools,
and churches developed, along with
commercial/industrial enterprises. These
establishments grew the communities of
Pico and Rivera closer together, giving a
strong sense of civic awareness. During
a 1958 election, the name “Pico Rivera”
was confirmed for the new city and
five citizens were elected to the first
City Council. Thus, Pico Rivera became
the 61st city in Los Angeles County.
Location
The City of Pico Rivera is located in southeastern
Los Angeles County. It sits approximately 11 miles
southeast of downtown Los Angeles, on the eastern
edge of the Los Angeles Basin, and on the southern
edge of the area known as the San Gabriel Valley.
The City of Pico Rivera is bordered by the cities of
Commerce, Downey, Montebello, Santa Fe Springs,
and Whittier.
The ports of Long Beach and Los Angeles as well as
the Los Angeles International Airport (LAX) are close
in proximity to Pico Rivera.
Facts & Figures
Established in 1958
City Population:
62,800 (2020 census)
Median Household Income:
$70,620
Median Home Price:
$677,500
City Recreation:
9 City Parks
Land Size:
9-square miles
Area Code/Zip Code:
(562) / 90660-90662
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 21 Pio Pico California State Park
The City’s five acre park encompasses historic gardens and the beautiful restored adobe home of Pio Pico, one of California’s most remarkable historical figures. Volunteers keep this amazing heritage alive by preserving and protecting it with learning opportunities and service projects.
Pico Rivera Sports Arena
Built in 1979, the 6,000-seat arena is famous
for its Mexican rodeos and Latin entertainment.
This sports arena is known to be the largest
Mexican rodeo ring in the country.
Pico Rivera Historical &
Heritage Museum
Our Historical Museum is housed in an original train
depot from 1887. It offers visitors a look at Pico
Rivera’s colorful past through a variety of photographs, documents, and historical objects.
Paseo Del Rio
The Paseo del Rio at the Rio Hondo
Coastal Basins Spreading Grounds
consists of a bike and pedestrian
trail around the perimeter of the
grounds, iron fencing, landscaping,
and a rest area.
Places of
Interest in
Pico Rivera
Education
The Pico Rivera community is proud of
its educational system. Elementary and
High School students living in the city
are served by the El Rancho Unified
School District and the Montebello
Unified School District. There are also
two parochial schools (grade 1-8) and
one private school (K-12) in town.
Pico Rivera proudly offers residents:
8 Elementary Schools
3 Middle Schools
3 High Schools
1 Pre-Kinder-12 and Adult Programs
In addition, there are nearby community
colleges and universities that provide
higher education including Rio Hondo
College, Cerritos College , Cal State
Los Angeles, Cal State Long Beach,
and Cal Poly Pomona. 22 City of Pico Rivera Fiscal Year 2021-2022 Accomplishments Report General Law City
The City of Pico Rivera is a general law city and operates under the Council-Manager form of government
whereby the City Council provides policy direction to
a City Manager appointed by the Council. As the City’s
Chief administrator, the City Manager is responsible for overseeing City employees who implement all of the
City’s programs, services and projects. Five City Council members are elected, at large, for staggered four-year
terms. The council members select two of the members
to serve as Mayor and Mayor Pro Tem.
Municipal Services
The City provides a full range of municipal services
including public works, water, construction and
maintenance of roads and highways, planning and
zoning, recreation and cultural activities, and general administrative support such as overall agency
management, procurement of goods and services,
payroll, recruitment, risk management, budget
preparation and monitoring and accounting. The City
contracts some municipal services with other public
agencies, these include: the Los Angeles County Sheriff’s Department for law enforcement service, the Los Angeles County Fire Department for fire protection and paramedic emergency services, and the Los Angeles County Library
System to operate its two community libraries.
Our Mission
"To positively impact our community
by providing excellent city services,
facilitating responsible stewardship of
resources, and actively engaging our
residents, businesses, and visitors."
ECONOMIC DEVELOPMENT
AND LAND USE
HEALTH, WELLNESS
AND SAFETY
COMMUNITY
ENGAGEMENT
FISCAL AND ORGANIZATION
SUSTAINABILITY
INFRASTRUCTURE
City Government
City of Pico Rivera Profile
RIVERA PARK
SAN GABRIEL RIVER
RIO HONDO
72 19
ROSEMEAD BOULEVARD
SAN GABRIEL RIVER PKWY
TELEGRAPH ROAD
WASHINGTON BOULEVARD
MINES AVENUE
WHITTIER BOULEVARD
BEVERLY BOULEVARD
PASSONS BOULEVARD
ROSEMEAD BOULEVARD
PARAMOUNT
BOULEVARD
PASSONS
SLAUSON AVENUE
PARAMOUNT
PICO RIVERA
MUNICIPAL
GOLF COURSE STREAMLAND PARK
RIO HONDO
PARK
PIO PICO
PARK
PICO PARK
SMITH
PARK
RIO
VISTA
PARK
CITY
HALL
City of Pico Rivera Fiscal Year 2021-22 Accomplishments Report 23 City of Pico RIvera
6615 Passons Blvd.
Pico Rivera, CA 90660
www.pico-rivera.org
CITY OF PICO RIVERA CITY HALL
6615 Passons Boulevard
Pico Rivera, CA 90660
(562) 942-2000
CITY OF PICO RIVERA – PUBLIC WORKS DEPARTMENT
6615 Passons Boulevard
Pico Rivera, CA 90660
(562) 801-4421
CITY OF PICO RIVERA – PARKS & RECREATION DEPARTMENT
6767 Passons Boulevard
Pico Rivera, CA 90660
(562) 801-4430
Hours of Operation: 7:30 a.m. – 5:00 p.m.
Monday through Thursday, closed Fridays, weekends,
and federal holidays.
LOS ANGELES COUNTY SHERIFF’S DEPARTMENT
PICO RIVERA STATION
6631 Passons Blvd.
Pico Rivera, CA 90660
(562) 949-2421
[email protected]
Rolled Over PO FYE 2021‐22
PO # PO AMOUNT
ENCUMBEREDAMOUNT GL ACCOUNT # DEPARTMENT VENDOR DESCRIPTION 2021‐200 $ 49,431 $ 3,931 100.11.1110‐52800 Administration 3Di, Inc System implementation, training, & maintenance 2021‐200 $ 38,569 $ 10,694 100.11.1110‐52800 Administration 3Di, Inc System implementation, training, & maintenance2022‐193 $ 12,505,023 $ 449,005 100.15.1500‐54500 Administration LA County Sheriffs Department FY 2021‐22 General Law Enforcement Contract 2022‐339 $ 99,000 $ 94,866 100.15.1500‐54500 Administration Flock Safety Installation of Flock Safety / License Plate Rater Cameras on Existing Poles 2022‐404 $ 82,257 $ 82,257 100.11.1110‐54500 Administration CivicWell Program Management Support2022‐405 $ 33,300 $ 31,968 100.11.1110‐54500 Administration Ollin Strategies Consulting Services‐ Government Relations Consultant 2021‐467 $ 20,675 $ 4,885 100.20.6040‐54500 Administrative Services Infinity Technologies FY20‐21 IT Assessment 2022‐380 $ 6,300 $ 6,300 100.20.6040‐52805 Administrative Services Tyler Technologies AP Import 2022‐386 $ 16,517 $ 8,633 100.90.9003‐54300 Administrative Services Goto Communication Telecom Svs VOIP 2020‐543 $ 120,000 $ 119,525 100.12.1200‐54500 City Clerk GRM Information Ma GRM scanning project ‐ 3 year community development 2021‐213 $ 15,000 $ 900 100.30.3020‐54500 Community & Economic Development Costar Realty Info Real estate online service license 2021‐297 $ 13,200 $ 4,373 100.14.1400‐54500 Community & Economic Development Dapeer, Rosenblit & Litvak, LLP Special Counsel Service for El Rodeo Night Club/8825 Washington Blvd 2022‐025 $ 27,811 $ 2,722 100.30.3010‐54400 Community & Economic Development Psomas Peer Review of the Initial Study/Mitigated Negative Declaration 2022‐109 $ 9,000 $ 6,650 100.30.3010‐54400 Community & Economic Development Hinderliter, De Ll Cannabis Management Service 2022‐179 $ 329,999 $ 154,169 100.30.3010‐54400 Community & Economic Development Rincon Consultants Inc Professional Planning Service 2022‐267 $ 14,172 $ 4,960 100.30.3030‐54500 Community & Economic Development Nationwide Cost Recovery Services, LLC Registration fee foreclosur 2022‐272 $ 16,000 $ 1,136 100.30.3020‐54500 Community & Economic Development Costar Realty Information, Inc Renewal for three real estate online service license 2022‐313 $ 27,750 $ 19,812 100.30.3020‐54400 Community & Economic Development Terra Realty Advisors Inc Outdoor Advertising Digital Billboard Signs 2022‐390 $ 19,951 $ 7,836 100.30.3010‐54400 Community & Economic Development Psomas Peer review of the Study/Mitigated Declaration for 8101 Rosemead 2022‐411 $ 4,591 $ 3,435 100.30.3030‐54500 Community & Economic Development So Cal Industries NEC Beverly Blvd. & Rosemead Blvd. Fence 2022‐054 $ 67,800 $ 31,415 100.80.8230‐52400 Parks & Recreation Pgi‐Pacific Graphi Printing Cost 2022‐289 $ 326,351 $ 29,090 100.80.8100‐54500 Parks & Recreation C.S. Legacy Const Pico Park Project Construction 2022‐366 $ 25,232 $ 25,232 100.80.8100‐53500 Parks & Recreation Deere & Company Rio Hondo & Rivera Park: John Deere Gator equipped 2022‐410 $ 6,804 $ 6,804 100.80.8103‐52255 Parks & Recreation Triangle Sports, Inc Uniforms 2022‐410 $ 126 $ 126 100.80.8130‐52255 Parks & Recreation Triangle Sports, Inc Uniforms2018‐585 $ 140,966 $ 50,169 100.40.4010‐54400 Public Works Tke Engineering Inc. Streets Bartolo Drainage Ditch2021‐128 $ 4,776 $ 4,776 100.40.4050‐54500 Public Works IMEG Corp. Update to storm water master plan and survey datum 2021‐151 $ 98,652 $ 8,221 100.40.4031‐54500 Public Works Emcor Services Mesa Energy HVAC maintenance services 2021‐220 $ 150,000 $ 2,777 100.40.4030‐54640 Public Works Nationwide Environmental Services Graffiti Abatement2021‐234 $ 10,000 $ 6,892 100.40.4030‐54655 Public Works County Of Los Angeles Dept Of Public Works Monitoring City traffic signals through KITS‐City 2021‐239 $ 2,750 $ 751 100.40.4010‐54500 Public Works NV5, Inc. Tract Map 74823 review (Burke) 2021‐383 $ 4,100 $ 978 100.40.4010‐54500 Public Works NV5, Inc. Plan check services for 4129 Rosemead 2021‐425 $ 28,000 $ 1,733 100.40.4010‐54500 Public Works NV5, Inc. On Call Plan Check services for 3900 Baybar Rd 2022‐236 $ 10,000 $ 1,152 100.40.4032‐54500 Public Works Ice Star Refriger Refrigerator & Ice Maker Service and Repairs 2022‐245 $ 6,190 $ 6,190 100.40.4040‐54400 Public Works Infinity Technologies Professional GIS Consulting Services 2022‐287 $ 29,900 $ 19,353 100.40.4010‐54500 Public Works HR Green Pacific, Inc Develop a citywide fiber optics master plan 2022‐296 $ 26,000 $ 26,000 100.80.8220‐54500 Public Works Interwest Consulting Group Staff augmentation constrcution management services2022‐296 $ 10,000 $ 1,086 100.80.8000‐54500 Public Works Interwest Consulting Group Staff augmentation constrcution management services 2022‐296 $ 10,000 $ 1,458 100.80.8220‐54500 Public Works Interwest Consulting Group Staff augmentation constrcution management services 2022‐296 $ 5,000 $ 4,620 100.80.8100‐54500 Public Works Interwest Consulting Group Staff augmentation constrcution management services 2022‐308 $ 4,950 $ 2,325 100.40.4010‐54500 Public Works Interwest Consulting Group 9036 Beverly Blvd plan check 2022‐310 $ 29,800 $ 17,150 100.40.4010‐54500 Public Works Fehr & Peers Vehicle Miles Traveled Analysis Guidelines 2022‐317 $ 2,000 $ 115 100.40.4010‐54500 Public Works NV5, Inc. Tentative Parcel Map 83251 review, 10100 Beverly Blvd.2022‐321 $ 4,850 $ 2,030 100.40.4010‐54500 Public Works NV5, Inc. Review utility & st improvement plans for 7105 Paramount blvd 2022‐326 $ 1,600 $ 1,280 100.40.4010‐54500 Public Works Willdan Engineering Traffic letter review for 6605 Rosemead Blvd 2022‐343 $ 1,960 $ 120 100.40.4010‐54500 Public Works Willdan Engineering Professional traffic engineering services for 3900 Baybar Road 2022‐351 $ 4,900 $ 3,220 100.40.4010‐54500 Public Works Interwest Consulting Group Grading plan review for 8101 Rosemead Blvd 2022‐374 $ 4,200 $ 560 100.40.4010‐54500 Public Works Interwest Consulting Group Grading plan review for 9400 Slauson Ave. Carl's Jr. 2022‐375 $ 4,620 $ 3,430 100.40.4010‐54500 Public Works Interwest Consulting Group Precise grading plan/hydrology report/SWPPP/PG Cost Estimate review for 7925 Rosemead Blvd.
TOTAL PURCHASE ORDERS FORYEAR‐END $ 1,277,109
Enclosure 3
16c
To: Mayor and City Council
From: City Manager
Meeting Date: January 24, 2023
Subject: BUDGET CALENDAR – BIENNIAL BUDGET FISCAL YEAR
2023-24 AND FISCAL YEAR 2024-25
Recommendation:
1. Receive and file the fiscal year (FY) 2023-24 and FY 2024-25 Budget Development Calendar.
Fiscal Impact:
There is no fiscal impact associated with this recommendation. Enclosure 1 describes the process, purpose and date for FY 2023-24 and FY 2024-25 budget development.
Discussion:
The proposed dates are intended to meet the following Municipal Code provision:
2.04.090 Legislative and executive action - As a chief administrative officer and advisor of the City Council, the City Manager shall at all times advise the City Council as to all legislative, executive, and administrative duties and responsibilities of the City Council and shall recommend to the City Council such measures, ordinances, or procedures as he or she shall deem necessary or expedient to carry out the purposes of the municipal government. In this regard, the City Manager shall:
A. Prepare and submit to the City Council the biennial budget and administer it after adoption.
The budget calendar lists the dates that the City Council will discuss financial information related to the FY 2023-24 of the FY 2023-25 biennial budgets. In an effort to communicate the budget process and promote public participation, the proposed Budget Calendar sets target dates for major milestones in the development of the budgets. Documentation of a budget calendar assists departments in preparing for the next two-year Operating and Capital Improvement Program (CIP) budget processes.
The detailed Budget Calendar (Enclosure 1) has been included. 17 CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 24, 2023 BUDGET CALENDAR – BIENNIAL BUDGET FISCAL YEAR 2023-24 AND FISCAL YEAR 2024-25