Discussion:
In June 2023, the City entered a three (3) year agreement with HdL in the amount of $50,000 to provide the City with sales tax and economic analysis and allocation audit recovery services. The services include ongoing sales and use tax audits of businesses to help identify and correct distribution and allocation errors including transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; formula errors; misreporting of “point of sales” to the wrong location; delays in reporting new outlets; misallocating use tax payments to the allocation pools or wrong jurisdictions; and erroneous fund transfers and adjustments. In the third quarter of 2023, HdL discovered a significant adjustment, resulting in a notable increase in invoice amounts for audit revenue recovery services. Specifically, one business previously unreported earnings ranging between $100,000 and $140,000 per quarter was discovered, with the City receiving invoices equivalent to 15% of these earnings, amounting to $15,000 to $20,000 per quarter.
Considering this particular account, alongside other cases with ongoing billing cycles, it is projected that the City can anticipate approximately $131,439 in invoices for the remaining quarters covered by the agreement (fourth quarter 2023 through fourth quarter 2025). Additionally, the total invoiced amount for the initial period of the agreement, spanning from the first quarter of 2023 to the third quarter of 2023, sums up to $89,481.
Thus, the cumulative invoiced amount for the entire term of the agreement is estimated to be $221,000.
In light of the existing not-to-exceed (NTE) limit of $50,000 set for audit services, staff proposes a request for an additional $171,000 to cover the remaining invoices for a new NTE project amount of $221,000. It is important to note that this total includes a conservative estimation for potential future cases that may be filed and subsequently recovered by the City.
Conclusion:
Staff recommends that the City Council approve Amendment No. 1 to extend the contract amount with Hinderliter, De Llamas and Associates by $171,000 for a new NTE project amount of $221,000, authorize the City Manager to execute the related documents.
Steve Carmona
SC:AG:MP:DS:ep
Enclosures: 1) Amendment No. 1
2) Agreement No. 23-2214
AMENDMENT NO. 1
TO THE PROFESSIONAL SERVICES AGREEMENT NO. 23-2214
WITH HINDERLITER DE LLAMAS AND ASSOCIATES
THIS AMENDMENT NO. 1 TO AGREEMENT NO. 23-2214 FOR PROFESSIONAL SERVICES WITH HINDERLITER DE LLAMAS AND ASSOCIATES (“Amendment No. 1"), effective as of the date specified in paragraph 5 hereof, is made and entered into by and between the CITY OF PICO RIVERA (“CITY”), and HINDERLITER DE LLAMAS AND ASSOCIATES, (“CONSULTANT”).
RECITALS
A. CITY and CONSULTANT (collectively referred to as the “PARTIES”) have previously executed that certain Agreement for Professional Services, Agreement No. 23-2214 (“Agreement”) relating to professional services in the City of Pico Rivera.
B. The PARTIES desire to amend said Agreement as set forth herein, pursuant to Section 5.1 of the Agreement authorizing revisions mutually agreed upon by the PARTIES in writing.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. MODIFICATION OF SCOPE OF SERVICES TO BE PERFORMED BY CONSULTANT.
The Scope of Services to be performed by CONSULTANT, as set forth in the Agreement shall be modified as follows:
Section 5.1 of the Agreement shall be stricken and modified as follows:
5.1 Consultant shall perform the services identified in the Revised Scope of Services (Exhibit "A-1"). The 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 for the Revised Scope of Services contemplated by Amendment No. 1 exceed the sum of Two Hundred Twenty-One Thousand Dollars ($221,000) for the entire Term of the Agreement unless specifically approved in advance, in writing, by City.
Enclosure 1
10a
Amendment No. 1 to Agreement No. 23-2214
HINDERLITER DE LLAMAS AND ASSOCIATES
2. TIME FOR COMPLETION OF MODIFIED WORK AND SERVICES.
Consultant shall undertake and complete the modified work (Revised Scope of Work) and services set forth in Exhibit “A-1. Notwithstanding any other provision of this Amendment No. 1, this modification in no way affects, nor should it be construed to affect, the timing of any aspect of the work included in the Agreement, particularly the deadlines contained therein. However, the “Expiration Date” defined in Section 3.4 of the Agreement is hereby amended as follows:
3.4 “Expiration Date”: At the completion of construction, however, no sooner than the City Council’s approval of the “Notice of Completion”.
3. MODIFICATION OF CONSULTANT’S COMPENSATION.
The compensation to be paid by CITY to CONSULTANT for the Revised Scope of Work (Exhibit “A-1”) and services identified in this Amendment No. 1 shall be as follows:
Total compensation in accordance with the Consultant’s Fee Proposal dated 06/19/2023 for an amount not to exceed Two Hundred Twenty-One Thousand Dollars ($221,000).
4. EFFECT OF AMENDMENTS.
Except as modified herein, either expressly or by necessary implication, the terms and provisions of the Agreement between the CITY and CONSULTANT shall remain in full force and effect.
5. EFFECTIVE DATE.
Unless otherwise specified herein, this Amendment No. 1 shall become effective as of the date set forth below on which the last of the parties, whether CITY or CONSULTANT, executes this Amendment No. 1.
[End of Amendment No. 1]
[Signatures on the Following Page]
Amendment No. 1 to Agreement No. 23-2214
HINDERLITER DE LLAMAS AND ASSOCIATES
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed and attested by their respective officers hereunto duly authorized. “CITY” “CONSULTANT”
CITY OF PICO RIVERA, a California HINDERLITER DE LLAMAS AND ASSOCIATES municipal corporation
______________________________ _________________________________ Steve Carmona, City Manager Andrew Nickerson, President/CEO Dated: ________________________ Dated: ____________________________ ATTEST: APPROVED AS TO FORM
___________________________ _________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney ENCLOSURE 2
10b
To: Mayor and City Council
From: City Manager
Meeting Date: February 27, 2024
Subject: AWARD A PROFESSIONAL SERVICES AGREEMENT
WITH CIVICWELL FOR PROJECT MANAGEMENT
SUPPORT SERVICES FOR THE ROSEMEAD/LAKEWOOD
BOULEVARD COMPLETE CORRIDOR PROJECT
Recommendation:
1. Award a Professional Services Agreement, in a form approved by the City Attorney to CivicWell to provide professional project management support, project coordination, community outreach, engagement, and communication services for the Rosemead/Lakewood Boulevard Complete Corridor Project, NonCIP No. 30059, for an amount not-to-exceed $110,000, and authorize the City Manager to execute the agreement.
Fiscal Impact:
The fiscal year (FY) 2023-24 Adopted Budget includes a Caltrans grant award in the amount of $585,334 in the Miscellaneous State Grant Fund (Account No. 699.70.7300- 54500 -NonCIP.30059). The Caltrans grant will fully cover the expenses related to CivicWell’s agreement. No additional appropriations are required.
Background:
In 2020, the City of Pico Rivera (City) developed a community and economic recovery framework to proactively address major challenges introduced by the COVID-19 Pandemic such as the economic downturn, climate change, impacts from the Whittier Narrows Dam Safety Project, and multiple unfunded State and federal mandates.
After an in-depth analysis, community engagement, and guidance from the City Council, five (5) major corridors – the San Gabriel River, Rio Hondo, Historic Whittier Boulevard, Washington Boulevard, and Rosemead Boulevard – were prioritized based on the ability to strategically leverage local infrastructure investments with state and federal funding 11 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024
AWARD A PROFESSIONAL SERVICES AGREEMENT WITH CIVICWELL FOR
PROJECT MANAGEMENT SUPPORT SERVICES FOR THE ROSEMEAD/LAKEWOOD
BOULEVARD COMPLETE CORRIDOR PROJECT
opportunities while advancing holistic community development and economic growth. To date, this strategic approach has proven to be effective.
The following table illustrates a subset of recent grants received along the identified corridors:
Project Funder Grant Amount
Rosemead Blvd. Median Beautification Project Caltrans $3,916,167 Rosemead Blvd. BRT Technical Assessment Metro $250,000
Washington Blvd. Bridge over the Rio Hondo
Project
Metro/Gateway CCOG $3,769,267
Historic Whittier Boulevard Multimodal Plan Caltrans $332,000 Whittier Blvd. Bike/Ped Connection to Pio Pico
State Historic Park
Rivers & Mountains
Conservancy
$244,100
Given the emphasis on revitalizing major corridors, staff developed a comprehensive vision for Rosemead Boulevard that aligns with other cities in the corridor as well as regional policies and transformative projects, such as the Metro E-Line Extension along Washington Boulevard. The concept for a unified, regional north-south bus rapid transit corridor arose from various Complete Streets plans and projects along Rosemead/Lakewood Boulevard that are generally related but largely planned independently city by city. Nevertheless, the common goal is to convert the originally designated highway into a multimodal boulevard.
For example, in 2019, the Gateway Cities Council of Governments (GCCOG) developed a Complete Streets Master Plan from Pico Rivera to Long Beach that introduces active transportation facilities. Also, the San Gabriel Valley Council of Governments (SGVCOG) is finalizing the San Gabriel Valley Transit Feasibility Study, which identifies and proposes a new bus rapid transit line on Rosemead Boulevard from East Pasadena to Pico Rivera’s planned Metro light rail station on Washington Boulevard.
The Rosemead/Lakewood Boulevard Complete Corridor Plan aims to build synergy and streamline ongoing efforts in the San Gabriel Valley and the Gateway Cities to plan and build a 28-mile multimodal corridor that incorporates, where feasible, high-quality active transportation facilities and dedicated bus guideways to improve regional mobility, improve safety for vulnerable road users, and stimulate transit-oriented community and economic development. As the linchpin city between the San Gabriel Valley and Gateway Cities sub-regions, the City is spearheading efforts to facilitate the early planning stages until a better-equipped regional planning entity such as Metro, a dedicated JPA, the COG’s can undertake the project in full.
In 2023, the City worked closely with CivicWell, a 501(c)3 non-profit organization, to submit and successfully secure a grant from the Caltrans Sustainable Communities Grant Program. The Rosemead/Lakewood Boulevard Complete Corridor Plan will update the CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024
AWARD A PROFESSIONAL SERVICES AGREEMENT WITH CIVICWELL FOR
PROJECT MANAGEMENT SUPPORT SERVICES FOR THE ROSEMEAD/LAKEWOOD
BOULEVARD COMPLETE CORRIDOR PROJECT
GCCOG’s Complete Streets Master Plan to incorporate enhanced transit infrastructure where feasible while identifying opportunities for new urban and economic development along the corridor. This grant only funds planning efforts from Pico Rivera to Long Beach.
Discussion:
On August 31, 2023, Caltrans announced the Sustainable Transportation Planning Grant Program awards for FY 2023-24. A statewide total of 161 grant applications were received with requests totaling approximately $66.8 million for Sustainable Communities Competitive and Strategic Partnerships Grants. Of these applications, 90 were selected for grant awards, totaling approximately $41.6 million.
To advance State-level goals regarding strong community participation and to develop a community-oriented final product, the grant scoring criteria offered favorable points to city applicants that incorporate non-profit organizations as formal sub-applicants and official project partners. As a result, the City partnered with CivicWell as the official sub-applicant to provide project management services. On October 10, 2023, the City Council approved Resolution No. 7299, which memorialized the project itself, the management approach, and authorized the City Manager to execute a Restricted Grant Agreement with Caltrans. The final Grant Agreement was signed and executed on December 28, 2023.
Given the regional nature of the project and staff’s limited capacity, CivicWell will support with the following activities:
Project coordination meetings
Quarterly progress reports and invoicing
Professional consultant procurement
Data collection and corridor conditions assessment
Stakeholder meetings and engagement (with support from the GCCOG) Community outreach and engagement (with support from the GCCOG) Project branding, materials, and collateral
Plan development support and review
The plan will be developed in partnership and subject to approval from the cities of Pico Rivera, Downey, Bellflower, Paramount, Lakewood, and Long Beach. The Plan will also be presented with hopes of approval from the GCCOG Transportation Committee and the GCCOG Governing Board. The full performance period for this grant is until April 2025.
Conclusion:
Staff recommends the award of a Professional Services Agreement to CivicWell, to CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024
AWARD A PROFESSIONAL SERVICES AGREEMENT WITH CIVICWELL FOR
PROJECT MANAGEMENT SUPPORT SERVICES FOR THE ROSEMEAD/LAKEWOOD
BOULEVARD COMPLETE CORRIDOR PROJECT
provide project management support, project coordination services, and outreach and engagement assistance for the Rosemead/Lakewood Boulevard Complete Corridor Project for an amount not-to-exceed $110,000.
Steve Carmona
SC:AG:JH:smc:sam
Enclosures: 1) Professional Services Agreement
2) Project Factsheet
AGREEMENT NO. _______
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF PICO RIVERA AND
CIVICWELL
1. IDENTIFICATION
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the City of Pico Rivera, a California municipal corporation (“City”) and CivicWell, a California-based 501(c)3 non-profit organization, (“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 a consultant to provide professional project management and coordination support, and community outreach, engagement, and communication services for the Rosemead/Lakewood Boulevard Complete Corridor Project.
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 February 15, 2024, 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 February 15, 2024 proposed budget to City attached hereto as Exhibit “B.”
3.3 “Commencement Date”: February 27, 2024
3.4 “Expiration Date”: May 30, 2026
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
11a
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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 One Hundred and Ten Thousand Dollars ($110,000.00) 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 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
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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. Diana Voss-Gonzalez 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
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
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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 acknowledges 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
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.
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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 its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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.
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
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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
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 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
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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.
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.
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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).
If to City: If to Consultant:
Steve Carmona, City Manager
City of Pico Rivera
PO Box 1016
6615 Passons Blvd.
Michele Warren, COO
CivicWell
PO Box 188800
Sacramento, CA 95814
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
Pico Rivera, California 90660-1016
Email: [email protected]
With a copy to:
Email: [email protected]
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.
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
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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.
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
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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
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
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
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
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
33. MANDATORY CALTRANS CONTRACT PROVISIONS
Consultant acknowledges that the funding associated with the Scope of Services under this Agreement requires compliance with the California Department of Transportation (“Caltrans”) Sustainable Communities Grant Restrict Grant Agreement (“RGA”). Consultant agrees that it will be responsible for ensuring that all required contractual requirements under the RGA, including but not limited to those listed under Exhibit C, which are attached hereto and incorporated here by reference. Should any conflict arise between the requirements of Exhibit C and this Agreement, the provisions of Exhibit C shall control to the minimum extent required to resolve such conflict.
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 CIVICWELL
______________________________ ___________________________________ Steve Carmona, City Manager Michele Warren, COO
Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
EXHIBIT A
SCOPE OF SERVICES
Page | 1
City of Pico Rivera
Rosemead/Lakewood Boulevard
Complete Corridor Plan
(BRT + ATP + TOD)
CivicWell - Scope of Work
Revised: 2/15/2024
The following scope of work outlines tasks culminating in the development of the Rosemead/Lakewood Boulevard Complete Corridor Plan (herein after referred to as the “RoseWood Corridor Plan”). Development of the RoseWood Corridor Plan is funded by a Caltrans Sustainable Communities Grant received by the City of Pico Rivera.
In partnership with the City of Pico Rivera (City), Project Management will be led by CivicWell and include direct implementation support with project partners, stakeholders and technical consultants selected to develop and evaluate alternatives and produce the plan. This project will result in a comprehensive study and conceptual plan for high-quality rapid transit with active transportation spanning the 16.7-mile stretch of Rosemead and Lakewood Boulevard from the City of Pico Rivera to the City of Long Beach.
In addition, this scope of work supports integration with concurrent region-wide projects, including planning for a 9.6-mile bus rapid transit line on Rosemead Blvd through the San Gabriel Valley from Pico Rivera to East Pasadena, and planning for east-west passenger rail lines such as Metro Foothill Gold Line, Eastside Gold Line, the West Santa Ana Branch, the Green Line, and a new commuter rail station along the LA-to-Anaheim commuter rail corridor.
All work and activities included in this scope of work are expected to be completed by February 2026, with the delivery of the Multimodal Streetscape Plan due no later than April 2026 per the Caltrans Restricted Grant Agreement. 11c
Exhibit A
Page | 2
-------------------------------------------------------------------------------------------------------------------- Task 01: Project Administration
Project Management
CivicWell will assist the City with overall project management and procurement process for consultant selection. CivicWell will help the City assemble a few stakeholder and advisory groups and support the Gateway City Council of Governments with meeting agendas, content, facilitation, and documentation involved with multi-jurisdictional project input, guidance and review of plan documents, will organize community engagement events, develop publicity materials, and document public input. CivicWell staff will facilitate community engagement activities including in-person and virtual workshops, pop up events, stakeholder listening sessions and focus group meetings.
Project Meetings
CivicWell will coordinate monthly team project calls (City staff, consultant, GCCOG staff and others as needed) to plan and facilitate execution of all project activities.
Quarterly Progress Reports
CivicWell will support the City with the preparation of quarterly grant project reports to Caltrans District staff.
Quarterly Invoicing
CivicWell will support the City with the preparation of requests for reimbursement to Caltrans District staff. CivicWell will submit monthly invoices to the city.
Task 01 – Deliverables
Final Contract/Agreement between the City and CivicWell Meeting agendas, notes & action items
Quarterly progress reports
Quarterly invoice packages
--------------------------------------------------------------------------------------------------------------------- Task 02: Consultant Procurement
The City, with assistance from CivicWell, will procure a consultant with transit, active transportation and urban planning, design and engineering expertise. The RFP will follow the proper procurement procedures established by both Caltrans and the City for these projects. The RFP will be sent to the City’s list of pre-qualified firms for planning and Page | 3
engineering services that will be established through a competitive process. The City, with support from CivicWell, will assemble a review panel to evaluate each proposal. Inperson or videoconference interviews will be held with proposers if deemed necessary.
Once chosen, a contract will be executed for services with the selected consultant to collect data, conduct analysis, develop design concepts and recommendations, and produce the plan. Once a contract is in place, the City and CivicWell will conduct a kickoff meeting and site visit with the project consultant.
Task 02 – Deliverables
Copy of the Request for Proposals for Consultant
Copy of the contract between the consultant and the City Meeting notes from the project kick-off with City, consultant and CivicWell --------------------------------------------------------------------------------------------------------------------- Task 1: Data Collection and Corridor Conditions
Assessment
This task will be led by the selected consultant with support and oversight by the City of Pico Rivera and CivicWell, and available studies and planning data provided by stakeholders (Metro, SCAG, Caltrans, etc.) and jurisdictions (GCCOG, corridor municipalities, etc.).
Site Visits
CivicWell will coordinate logistics with the City of Pico Rivera, consultant and project stakeholders to conduct a city-by-city field review of the corridor to observe and assess existing right of way, roadway, traffic control, pedestrian, bicycle and transit conditions and infrastructure, and adjacent land uses. The site visits will take place in conjunction with meetings with city staff in each jurisdiction, enabling the project team and local agencies to tour assess portions of the boulevard together. Meetings with individual cities are described under Task 3 below.
Task 1 – Deliverables
Inventory of collected data, materials and photos from site visit and review of existing plans and studies (consultant responsible for this deliverable with support from CivicWell) Base maps in digital and large print formats ((consultant responsible for this deliverable) Technical report with maps and graphics summarizing existing and future conditions (consultant responsible for this deliverable)
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Task 2: Engagement with Jurisdictions and Agencies
The project will include a series of independent meetings with each jurisdiction as well as a series of meetings with the technical advisory committee established for the project and the GCCOG Policy Committee, and ad hoc meetings with individual councils and commissions.
Corridor Cities - Technical Advisory Committee
CivicWell will provide agenda development, coordination and facilitation support for technical advisory committee meetings comprised of public works directors and city engineers from each city within the corridor. The TAC will will also include representatives from local and regional agencies such as Metro, SCAG, Caltrans, transit operators (i.e.
Long Beach Transit, Montebello Bus Lines, etc.) The TAC will meet at least 6 times during the course of the project for coordinated interagency briefings, input, and feedback.
Additional meetings may be held as needed. The first meeting will focus on project goals, relevant existing and proposed policies, plans, programs and initiatives, and potential funding sources for further vetting, design and implementation. The second will focus on the assessment of corridor conditions, trends, future directions, needs and opportunities.
Subsequent meetings will focus on stakeholder and community input received (described under the next task), conceptual designs and recommendations, and preferred alternatives.
Meetings with Corridor Cities
Independent meetings will be held with key staff and officials from each of the six jurisdictions along the corridor. CivicWell will schedule and attend all meetings.
Participants will include representatives from planning and community development, transportation, engineering and public works, and local transit agencies (Long Beach Transit, Montebello Bus Lines, Bellflower Bus, etc.). Two rounds of meetings are anticipated. The first round will take place in person in conjunction with the corridor assessment described under Task 1 to tour corridor segments, collect information about policy, planning and available technical data, and identify strengths, needs and opportunities as seen from the view of the respective municipalities. The second round will likely take place virtually to discuss proposed scenarios and concepts for transit enhancements and collect feedback.
Policymaker Engagement
At least 2 meetings of the GCCOG City Managers Policy Steering Committee, 2 meetings of the Transportation Committee, 2 meetings of full COG Board will be conducted during the duration of the project. GCCOG will host the meetings with agenda development, coordination and facilitation support from CivicWell and technical presentations from Page | 5
members of the consultant team. An additional 2 meetings will be held with representatives from county, state, and federal legislative offices representing the corridor.
The first meeting with each group will focus on project goals and objectives, strategies for successful community outreach, and best methods for information sharing, review and feedback from elected bodies. Other meetings will focus on existing conditions, input from stakeholders, residents and City staff, and draft concepts and recommendations.
Informational materials and slide decks will be made available for attendees to share with their respective city councils, county supervisors, committees and commissions, and/or other decision-making and advisory bodies. Members of the consultant team will be available to attend council briefings as needed to respond to questions and receive input.
Task 2 – Deliverables
TAC agendas, list of attendees, meeting materials and notes Corridor city meeting agendas, list of attendees, meeting materials and notes PC meeting agendas, list of attendees, meeting materials and notes --------------------------------------------------------------------------------------------------------------------- Task 3: Stakeholder and Community Engagement
CivicWell, with support from the City of Pico Rivera and GCCOG, will identify key stakeholders, assemble a Stakeholder Advisory Group (SAG), develop an outreach and engagement strategy, and produce and distribute outreach materials. Activities to be completed are described below.
Communications and Engagement Plan
CivicWell, with input from the City, GCCOG and consultant, will prepare a Community Engagement Plan to inform residents, businesses and other stakeholders about the project and upcoming community events throughout the project area. The plan will provide a coordination strategy between key players, project milestones and timeline for plan development. It will also outline coordination with other key planning activities and local community events. The plan will describe:
Development and execution of a strong digital presence, including a project website to host all final project documents, calendar of events, social media feeds, surveys and sentiment analysis tools, videos, etc. Each city and other relevant agencies, stakeholders and community-based organizations will be asked to link Page | 6
their respective organization websites and social media feeds to the dedicated project website.
A comprehensive list of stakeholders comprised of agency contacts, chamber, trade and business associations, and nonprofit and community-based organizations, such as Norwalk Unides, Happy City Coalition, Bike LA, Move LA, and Streets for All, that represent diverse interests key to the development of concepts and recommendations.
The schedule and set of task descriptions for carrying out the community and stakeholder involvement activities with timing and milestones. Means for direct engagement with low-income communities, communities of color and non-English speaking populations identified under Task 1 review of demographics, other qualitative and quantitative indicators and deployment of CivicWell’s Diversity, Equity and Inclusion Litmus Test assessment methodology.
Translation needs will be provided when needed and documented throughout the process.
Establishment and role of the Stakeholder Advisory Group described below. Development of a comprehensive outreach list and contact management strategy. Specific ways that community input will be sought and integrated at various phases of the planning process, including at events in each city, such as farmers markets and street festivals.
Pico Rivera Youth Ambassador Program involvement in outreach and planning activities.
Stakeholder Advisory Group
CivicWell, in coordination with the City of Pico Rivera, GCCOG and consultant, will convene a Stakeholder Advisory Group (SAG) of approximately 20 - 30 participants from a cross-section of organizations, stakeholder and advocacy groups that work with or represent seniors and older adults, school districts, community colleges and universities, people with disabilities, service workers, affordable housing sector, bicyclists, environmental interests and others that rely on and benefit from transit and active transportation to meet their mobility needs and support environmental sustainability and economic resilience.
The SAG will meet quarterly throughout the duration of the project and development of the plan. The group will review and provide input on the communications and engagement plan, help determine strategies for engaging all segments of the corridor communities and maximizing participation at public events, as well as opportunities for coordination and synergy with other community initiatives and planning activities impacting the community. Meetings will also provide a venue for discussion of plan concepts and strategies for implementation.
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Focus Groups
CivicWell, with input from the advisory group and close coordination with the selected consultant, will organize approximately 5 to 10 listening sessions to learn about mobility and transit needs across sectors and population segments. Participants may include, but not be limited to representatives from:
● Affordable housing agencies, managers and developers
● Spanish-speaking and other non-English speaking populations ● Large employers, chambers of commerce and business associations ● Retail, recreation, sports and entertainment destinations ● K-12 school district representatives
● Community college, vocational learning and university representatives ● Public health departments and social services agencies and non-profits ● Organizations that work with and represent seniors, veterans and people with disabilities
● Environmental justice and social equity advocacy groups ● Bicycling and active transportation organizations and advocacy groups Project Branding, Content and Dissemination
CivicWell, working with the consultant, will lead production of materials in English, Spanish and others languages as necessary to inform all segments of the corridor communities about the planning process and how they can participate. Targeted efforts will be made to reach lower-income, underserved community members that have been historically overlooked, excluded or been reticent to participate in public planning processes. Specific tasks will include:
Drawing from examples from other successful planning, outreach and engagement efforts, project branding will be identified using a consistent logo, story line and messaging to increase visibility, awareness, interest and participation. Flyers and posters in English, Spanish and other languages as needed will be produced publicizing events for distribution. A “BRT and Complete Streets 101” informational factsheet, with examples and case studies will be prepared to include on the project website and in presentations, posters and boards. Materials will be shared digitally, and through email, newsletters and social media sources. Advisory group members and select stakeholders will be asked to distribute flyers and information about the project and ways to participate through their networks and at standing meetings, festivals and other community events.
Opportunities will be identified to engage with stakeholders through print materials and word of mouth at places where residents go for other purposes such as coffee shops, recreational centers, civic, faith-based and cultural centers, and other Page | 8
gathering places. Community-based organizations will be solicited for promotion and direction on how to best reach and communicate with their constituents. Announcements and press releases will be prepared and distributed to local and regional media and other outlets. Advisory group members will be consulted to identify social media platforms that residents use. Announcements, project information, presentations and plan documents will be posted on the City’s Virtual City Hall project website and GCCOG’s website, and events will be publicized on social media platforms and through newsletters.
Project Website
The project website initiated by Streets for All will be utilized to house all project information including, but not limited to a storyboard map, videos, messages and notifications, surveys, analysis, and reports. CivicWell will maintain the website with content provided by cities and the consultant. The project website will be used to keep stakeholders and residents updated on the planning effort, to distribute notices about events, and to provide downloadable copies of draft and final documents. Links and content will be provided to corridor cities and other GCCOG member jurisdictions to post on their websites. All community presentations will be offered virtually, be recorded, and hosted on the project website.
Resident and Employee Surveys
CivicWell will work with the consultant to develop electronic surveys that will be posted on the project website and/or circulated through other channels to residents, employees and small and large employers for data on person travel patterns, modes and needs.
Special emphasis will be placed on collecting input from historically marginalized populations to inform solutions that increase access to affordable and healthy transit and transportation opportunities. Paper surveys will be available for completion or pick up at in-person events, city halls and other locations for those who do not have access to the internet or prefer to complete by hand.
Mobility Needs and Opportunities Forums and Pop-Up Engagement CivicWell will lead planning and coordination with the consultant to conduct forums to engage and educate community members about bus rapid transit, complete streets, transit oriented development, and activities and conversations to learn about their mobility and transit needs and service models that best suit their communities. CivicWell, with help from the advisory group and local co-hosts, will arrange facilities and food (in accord with grant guidelines for eligible snack and refreshment expenses), and other supporting promotional and celebratory activities for in person events..
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Two rounds of forums are planned to be held in three locations selected for convenience and accessibility to community members throughout the corridor for a total of six events.
CivicWell, in coordination with the City of Pico Rivera, advisory group and consultant, will develop detailed agendas for the events and activities. The conceptual scope of events includes:
● First Round – Possibilities and Needs. CivicWell and the consultant will present tools and strategies for complete streets, first and last miles to transit, zero emission enhanced transit and BRT service types and infrastructure, and transit oriented development. Small group map activities or stations will be included where participants will identify issues and mark up opportunity sites. Facilitated small group walking assessments of corridor sections may also be included where feasible.
● Second Round – Concepts and Recommendations. CivicWell will review the stakeholder and community input to date, and the consultant will present the results of the corridor conditions assessment, concepts for BRT and initial recommendations for implementation. Breakouts and weighing activities will be used to gauge preferences and concerns.
These forums with be supplemented with pop up tables, booths, and/or surveys and information materials at one well-attended event in each city, such as famers markets and street festivals, that are identified in the communications and engagement plan with input from the advisory group. CivicWell will organize and staff the events with participation from members of the consultant team as needed and other project stakeholder representatives.
On-line Survey of Proposed Concepts and Recommendations Recognizing that not all community members will be able to attend the workshops and to ensure broader public feedback and input, the proposed concepts will be posted on-line around the time of the public review period with a survey in English and Spanish allowing people to weigh in over the course of a few weeks with their preferences, concerns, comments and suggestions. The survey will be available in paper format for those who do not have internet access or prefer to complete by hand. CivicWell will support the consultant with development of the survey and will publicize it to encourage participation.
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Task 3 – Deliverables
Communication and Engagement Plan
Advisory group participant lists and meeting notes
Stakeholder focus group participant lists and notes
Outreach, education, information and publicity materials Content for project webpage
Resident and employee surveys and results summary
Forum agendas, PowerPoint Presentations, attendee lists and notes --------------------------------------------------------------------------------------------------------------------- Task 4: Plan Development
Building upon the corridor assessment and jurisdiction, stakeholder and community input described in the previous tasks, the consultant will develop components that will make up the final plan document. CivicWell will produce and provide an engagement report to the consultant that summarizes the meetings, events and activities with stakeholders and community members and the input and feedback received for guidance on the preferred strategy.
CivicWell will support management of the consultant throughout the development of the Rosewood Complete Corridor Plan on behalf of the City. This will include coordination and facilitation of consultant tasks and deliverables with:
TAC, SAG, and GCCOG input;
Publicity, communications, community outreach and engagement Documentation of the public process and outcomes for inclusion in plans, future implementation and grant proposals
Initial review of key draft deliverables, circulation for comment, collection of feedback for edits and revisions
Review and feedback through the engagement activities with local governments, regional agencies, stakeholders and community members.
CivicWell will support the consultant with input, coordination and review in the performance of their services:
Data collection, analysis, and existing conditions reports BRT and Complete Streets conceptual designs and feasibility analysis Implementation strategy with phasing, cost estimates, steps for funding for full design and construction, and management framework to carry the project forward Draft plan documents for administrative and technical review Final plan documents, public, Council and GCCOG Reviews Page | 11
Task 4 – Deliverables
BRT options, analysis and preferred concept with maps, graphics and illustrations Implementation strategy with costs estimates, phasing, funding sources and proposed management plan
Administrative and public review draft plan documents and comments received --------------------------------------------------------------------------------------------------------------------- Task 5: Final Plan Review and Approval
CivicWell will assist the City and GCCOG with communication and updates regarding GCCOG Policy Committee and Board meetings to approve and adopt the final Rosewood Complete Corridor Plan.
Task Deliverables
Agendas, staff reports and presentations
Meeting minutes with Board approval
Final Plan that includes a summary of next steps towards implementation, credits FHWA, FTA, and/or Caltrans on the cover or title page, submitted to Caltrans in an ADA accessible electronic copy.
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
EXHIBIT B
APPROVED FEE SCHEDULE
Grant Total: $585,334
CivicWell Expenses CivicWell Total Consultant
New
Breakdown
Grant
Breakdown
City
Match Project Total
01 $13,128 $13,128 $0 $13,128 $13,128
02 $10,000 $10,000 $0 $10,000 $16,360
1 $11,000 $11,000 $70,000 $81,000 $116,320
2 $18,000 $2,050 $20,050 $40,000 $60,050 $64,052
3 $36,024 $7,850 $43,874 $60,500 $104,374 $115,104
4 $7,000 $7,000 $285,294 $292,294 $239,532
5 $3,968 $520 $4,488 $20,000 $24,488 $20,838
$99,120 $10,420 $109,540 $475,794 $585,334 $585,334 $75,836 $661,170 $75,836
CivicWell Budget
Stakeholder and Community Engagement
Plan Development
Final Plan Review and Approval
Totals
Task
Project Administration
Consultant Procurement
Data Collection and Corridor Conditions Assessment
Engagement with Jurisdictions and Agencies
Exhibit B
PROFESSIONAL SERVICES AGREEMENT
CIVICWELL – ROSEMEAD/LAKEWOOD BLVD PROJECT
EXHIBIT C
MANDATORY CALTRANS CONTRACT PROVISIONS
ARTICLE I CONSULTANT’S REPORTS OR MEETINGS
A. CONSULTANT shall submit progress reports at least once a month. The report should be sufficiently detailed for the CITY’s Contract Administrator to determine, if CONSULTANT is performing to expectations, or is on schedule; to provide communication of interim findings, and to sufficiently address any difficulties or special problems encountered, so remedies can be developed.
B. CONSULTANT’s Project Manager shall meet with CITY’s Contract Administrator, as needed, to discuss progress on the AGREEMENT.
ARTICLE II STATEMENT OF WORK
A. See Exhibit A
ARTICLE III PERFORMANCE PERIOD
A. See Section 3 of the Agreement
ARTICLE IV ALLOWABLE COSTS AND PAYMENTS
Option 4 below
(Option 1 - Use paragraphs A through K below for Cost-Plus-Fixed Fee AGREEMENTs. Use Exhibit 10-H1: Cost Proposal Format)
A. The method of payment for this AGREEMENT will be based on actual cost plus a fixed fee. CITY will reimburse CONSULTANT for actual costs (including labor costs, employee benefits, travel, equipment rental costs, overhead and other direct costs) incurred by CONSULTANT in performance of the work. CONSULTANT will not be reimbursed for actual costs that exceed the estimated wage rates, employee benefits, travel, equipment rental, overhead, and other estimated costs set forth in the approved CONSULTANT’S Cost Proposal, unless additional reimbursement is provided for by AGREEMENT amendment. In no event, will CONSULTANT be reimbursed for overhead costs at a rate that exceeds CITY’s approved overhead rate set forth in the Cost Proposal. In the event, that CITY determines that a change to the work from that specified in the Cost Proposal and AGREEMENT is required, the AGREEMENT time or actual costs reimbursable by CITY shall be adjusted by AGREEMENT amendment to accommodate the changed work. The maximum total cost as specified in Paragraph “I” of this Article shall not be exceeded, unless authorized by AGREEMENT amendment.
B. The indirect cost rate established for this AGREEMENT is extended through the duration of this specific AGREEMENT. CONSULTANT’s agreement to the extension of the 1-year applicable period shall not be a condition or qualification to be considered for the work or AGREEMENT award.
C. In addition to the allowable incurred costs, CITY will pay CONSULTANT a fixed fee of $(AMOUNT). The fixed fee is nonadjustable for the term of the AGREEMENT, except in the event of a significant change in the scope of work and such adjustment is made by AGREEMENT amendment.
EXHIBIT C
D. Reimbursement for transportation and subsistence costs shall not exceed the rates specified in the approved Cost Proposal.
E. When milestone cost estimates are included in the approved Cost Proposal, CONSULTANT shall obtain prior written approval for a revised milestone cost estimate from the Contract Administrator before exceeding such cost estimate.
F. Progress payments will be made monthly in arrears based on services provided and allowable incurred costs. A pro rata portion of CONSULTANT’s fixed fee will be included in the monthly progress payments. If CONSULTANT fails to submit the required deliverable items according to the schedule set forth in Article III Statement of Work, CITY shall have the right to delay payment or terminate this AGREEMENT.
G. No payment will be made prior to approval of any work, nor for any work performed prior to approval of this AGREEMENT.
H. CONSULTANT will be reimbursed promptly according to California Regulations upon receipt by CITY’s Contract Administrator of itemized invoices in duplicate. Invoices shall be submitted no later than thirty (30) calendar days after the performance of work for which CONSULTANT is billing. Invoices shall detail the work performed on each milestone and each project as applicable.
Invoices shall follow the format stipulated for the approved Cost Proposal and shall reference this AGREEMENT number and project title. Final invoice must contain the final cost and all credits due CITY including any equipment purchased under the provisions of Article XI Equipment Purchase.
The final invoice should be submitted within sixty (60) calendar days after completion of CONSULTANT’s work. Invoices shall be mailed to CITY’s Contract Administrator at the following address:
(CITY/NAME OF CONTRACT ADMINISTRATOR)
(ADDRESS)
I. The total amount payable by CITY including the fixed fee shall not exceed $(Amount).
J. For personnel subject to prevailing wage rates as described in the California Labor Code, all salary increases, which are the direct result of changes in the prevailing wage rates are reimbursable.
(Option 2 - For Cost per Unit of Work AGREEMENTs, replace paragraphs A & B of Option 1 with the following paragraphs A, B, and C and re-letter the remaining paragraphs. Adjust as necessary for work specific to your project. Use Exhibit 10-H3: Cost Proposal Format).
A. The method of payment for the following items shall be at the rate specified for each item, as described in this Article. The specified rate shall include full compensation to CONSULTANT for the item as described, including but not limited to, any repairs, maintenance, or insurance, and no further compensation will be allowed therefore.
B. The specified rate to be paid for vehicle expense for CONSULTANT’s field personnel shall be $(Amount) per approved Cost Proposal. This rate shall be for fully equipped vehicle(s) specified in Article III Statement of Work, as applicable. The specified rate to be paid for equipment shall be, as listed in the approved Cost Proposal.
C. The method of payment for this AGREEMENT, except those items to be paid for on a specified rate basis, will be based on cost per unit of work. CITY will reimburse CONSULTANT for actual costs (including labor costs, employee benefits, travel, equipment-rental costs, overhead and other direct costs) incurred by CONSULTANT in performance of the work. CONSULTANT will not be reimbursed for actual costs that exceed the estimated wage rates, employee benefits, travel, equipment rental, overhead and other estimated costs set forth in the approved Cost Proposal, unless additional reimbursement is provided for, by AGREEMENT amendment. In no event, will CONSULTANT be reimbursed for overhead costs at a rate that exceeds CITY approved overhead rate set forth in the approved Cost Proposal. In the event, CITY determines that changed work from that specified in the approved Cost Proposal and AGREEMENT is required; the actual costs reimbursable by CITY may be adjusted by AGREEMENT amendment to accommodate the changed work. The maximum total cost as specified in Paragraph “I,” of this article shall not be exceeded unless authorized by AGREEMENT amendment. (Option 3 - Use paragraphs A through P for Specific Rates of Compensation Agreements [such as on-call Agreements]. This payment method shall only be used when it is not possible at the time of procurement to estimate the extent or duration of the work or to estimate costs with any reasonable degree of accuracy. The specific rates of compensation payment method should be limited to AGREEMENTs or components of AGREEMENTs for specialized or support type services where the CONSULTANT is not in direct control of the number of hours worked, such as construction engineering and inspection. Use Exhibit 10-H2: Cost Proposal Format).
A. CONSULTANT will be reimbursed for hours worked at the hourly rates specified in the CONSULTANT’s approved Cost Proposal. The specified hourly rates shall include direct salary costs, employee benefits, prevailing wages, employer payments, overhead, and fee. These rates are not adjustable for the performance period set forth in this AGREEMENT. CONSULTANT will be reimbursed within thirty (30) days upon receipt by CITY’S Contract Administrator of itemized invoices in duplicate.
B. In addition, CONSULTANT will be reimbursed for incurred (actual) direct costs other than salary costs that are in the approved Cost Proposal and identified in the approved Cost Proposal and in the executed Task Order.
C. Specific projects will be assigned to CONSULTANT through issuance of Task Orders.
D. After a project to be performed under this AGREEMENT is identified by CITY, CITY will prepare a draft Task Order; less the cost estimate. A draft Task Order will identify the scope of services, expected results, project deliverables, period of performance, project schedule and will designate a CITY Project Coordinator. The draft Task Order will be delivered to CONSULTANT for review.
CONSULTANT shall return the draft Task Order within ten (10) calendar days along with a Cost Estimate, including a written estimate of the number of hours and hourly rates per staff person, any anticipated reimbursable expenses, overhead, fee if any, and total dollar amount. After agreement has been reached on the negotiable items and total cost; the finalized Task Order shall be signed by both CITY and CONSULTANT.
E. Task Orders may be negotiated for a lump sum (Firm Fixed Price) or for specific rates of compensation, both of which must be based on the labor and other rates set forth in CONSULTANT’s approved Cost Proposal.
CONSULTANT shall be responsible for any future adjustments to prevailing wage rates including, but not limited to, base hourly rates and employer payments as determined by the Department of Industrial Relations. CONSULTANT is responsible for paying the appropriate rate, including escalations that take place during the term of the AGREEMENT.
F. (City to include either (a) or (b) below; delete the other one) (a) Reimbursement for transportation and subsistence costs shall not exceed State rates. (b) Reimbursement for transportation and subsistence costs shall not exceed the rates as specified in the approved Cost Proposal. CONSULTANT will be responsible for transportation and subsistence costs in excess of State rates.
G. When milestone cost estimates are included in the approved Cost Proposal, CONSULTANT shall obtain prior written approval in the form of an AGREEMENT amendment for a revised milestone cost estimate from the Contract Administrator before exceeding such estimate.
H. Progress payments for each Task Order will be made monthly in arrears based on services provided and actual costs incurred.
I. CONSULTANT shall not commence performance of work or services until this AGREEMENT has been approved by CITY and notification to proceed has been issued by CITY’S Contract Administrator. No payment will be made prior to approval or for any work performed prior to approval of this AGREEMENT.
J. A Task Order is of no force or effect until returned to CITY and signed by an authorized representative of CITY. No expenditures are authorized on a project and work shall not commence until a Task Order for that project has been executed by CITY.
K. CONSULTANT will be reimbursed within thirty (30) days upon receipt by CITY’S Contract Administrator of itemized invoices in duplicate. Separate invoices itemizing all costs are required for all work performed under each Task Order. Invoices shall be submitted no later than thirty (30) calendar days after the performance of work for which CONSULTANT is billing, or upon completion of the Task Order. Invoices shall detail the work performed on each milestone, on each project as applicable. Invoices shall follow the format stipulated for the approved Cost Proposal and shall reference this AGREEMENT number, project title and Task Order number.
Credits due CITY that include any equipment purchased under the provisions of Article XI Equipment Purchase, must be reimbursed by CONSULTANT prior to the expiration or termination of this AGREEMENT. Invoices shall be mailed to CITY’s Contract Administrator at the following address:
(NAME OF CITY/ NAME OF CONTRACT ADMINISTRATOR)
(ADDRESS)
L. The period of performance for Task Orders shall be in accordance with dates specified in the Task Order. No Task Order will be written which extends beyond the expiration date of this AGREEMENT.
M. The total amount payable by CITY for an individual Task Order shall not exceed the amount agreed to in the Task Order, unless authorized by amendment.
N. If CONSULTANT fails to satisfactorily complete a deliverable according to the schedule set forth in a Task Order, no payment will be made until the deliverable has been satisfactorily completed.
O. Task Orders may not be used to amend the language (or the terms) of this AGREEMENT nor to exceed the scope of work under this AGREEMENT.
P. The total amount payable by CITY for all Task Orders resulting from this AGREEMENT shall not exceed $ (Amount). It is understood and agreed that there is no guarantee, either expressed or implied that this dollar amount will be authorized under this AGREEMENT through Task Orders. (Option 4 - Use paragraphs A through E below for lump sum agreements. Use Exhibit 10-H1:
Cost Proposal Format)
A. The method of payment for this AGREEMENT will be based on lump sum. The total lump sum price paid to CONSULTANT will include compensation for all work and deliverables, including travel and equipment described in Article III Statement of Work. No additional compensation will be paid to CONSULTANT, unless there is a change in the scope of the work or the scope of the project. In the instance of a change in the scope of work or scope of the project, adjustment to the total lump sum compensation will be negotiated between CONSULTANT and CITY.
Adjustment in the total lump sum compensation will not be effective until authorized by AGREEMENT amendment and approved by CITY.
B. Progress payments may be made monthly in arrears based on the percentage of work completed by CONSULTANT. If CONSULTANT fails to submit the required deliverable items according to the schedule set forth in Article III Statement of Work, CITY shall have the right to delay payment or terminate this AGREEMENT in accordance with the provisions of Article VI Termination.
C. CONSULTANT shall not commence performance of work or services until this AGREEMENT has been approved by CITY and notification to proceed has been issued by CITY’S Contract Administrator. No payment will be made prior to approval of any work, or for any work performed prior to approval of this AGREEMENT.
D. CONSULTANT will be reimbursed within thirty (30) days upon receipt by CITY’S Contract Administrator of itemized invoices in duplicate. Invoices shall be submitted no later than thirty (30) calendar days after the performance of work for which CONSULTANT is billing. Invoices shall detail the work performed on each milestone, on each project as applicable. Invoices shall follow the format stipulated for the approved Cost Proposal and shall reference this AGREEMENT number and project title. Final invoice must contain the final cost and all credits due CITY that include any equipment purchased under the provisions of Article XI Equipment Purchase. The final invoice must be submitted within sixty (60) calendar days after completion of CONSULTANT’s work unless a later date is approved by the CITY. Invoices shall be mailed to CITY’s Contract Administrator at the following address:
(CITY/NAME OF CONTRACT ADMINISTRATOR)
(ADDRESS)
E. The total amount payable by CITY shall not exceed $(Amount).
ARTICLE V TERMINATION
A. See Section 22 of the Agreement.
B. CITY may temporarily suspend this AGREEMENT, at no additional cost to CITY, provided that CONSULTANT is given written notice (delivered by certified mail, return receipt requested) of temporary suspension. If CITY gives such notice of temporary suspension, CONSULTANT shall immediately suspend its activities under this AGREEMENT. A temporary suspension may be issued concurrent with the notice of termination.
C. In addition to right to terminate or suspend the AGREEMENT contained herein, if CONSULTANT fails to perform any of the obligations under this AGREEMENT, CITY may, in its sole discretion, require CONSULTANT to cure any deficiencies in its performance by providing a Notice of Cure in compliance with Section 20 of the AGREEMENT, specifying the applicable cure period to perform the requested cure items. If CONSULTANT does not provide such a cure prior to the expiration of the cure period, CONSULTANT shall be liable for the cost and expense incurred by CITY as a result of such default, including but not limited to the costs and expense associated with obtain a replacement CONSULTANT to complete the Statement of Work. This provision shall not be interpreted to limit any administrative or civil penalties, sanctions, or remedies CITY may have under the CITY’s municipal code or under any applicable laws.
ARTICLE VI COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS A. The CONSULTANT agrees that 48 CFR Part 31, Contract Cost Principles and Procedures, shall be used to determine the allowability of individual terms of cost.
B. The CONSULTANT also agrees to comply with Federal procedures in accordance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
C. Any costs for which payment has been made to the CONSULTANT that are determined by subsequent audit to be unallowable under 48 CFR Part 31 or 2 CFR Part 200 are subject to repayment by the CONSULTANT to CITY.
D. When a CONSULTANT or Subconsultant is a Non-Profit Organization or an Institution of Higher Education, the Cost Principles for Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards shall apply.
ARTICLE VII RETENTION OF RECORD/AUDITS
For the purpose of determining compliance with Gov. Code § 8546.7, the CONSULTANT, Subconsultants, and CITY shall maintain all books, documents, papers, accounting records, Independent CPA Audited Indirect Cost Rate workpapers, and other evidence pertaining to the performance of the AGREEMENT including, but not limited to, the costs of administering the AGREEMENT. All parties, including the CONSULTANT’s Independent CPA, shall make such workpapers and materials available at their respective offices at all reasonable times during the AGREEMENT period and for three (3) years from the date of final payment under the AGREEMENT and records for real property and equipment acquired with federal funds must be retained for three (3) years after final disposition. CITY, Caltrans Auditor, FHWA, or any duly authorized representative of the Federal government having jurisdiction under Federal laws or regulations (including the basis of Federal funding in whole or in part) shall have access to any books, records, and documents of the CONSULTANT, Subconsultants, and the CONSULTANT’s Independent CPA, that are pertinent to the AGREEMENT for audits, examinations, workpaper review, excerpts, and transactions, and copies thereof shall be furnished if requested without limitation.
ARTICLE VIII AUDIT REVIEW PROCEDURES
A. Any dispute concerning a question of fact arising under an interim or post audit of this AGREEMENT that is not disposed of by AGREEMENT, shall be reviewed by CITY’S Director of Finance.
B. Not later than thirty (30) calendar days after issuance of the final audit report, CONSULTANT may request a review by CITY’S Director of Finance of unresolved audit issues. The request for review will be submitted in writing.
C. Neither the pendency of a dispute nor its consideration by CITY will excuse CONSULTANT from full and timely performance, in accordance with the terms of this AGREEMENT.
D. CONSULTANT and subconsultant AGREEMENTs, including cost proposals and Indirect Cost Rates (ICR), may be subject to audits or reviews such as, but not limited to, an AGREEMENT audit, an incurred cost audit, an ICR Audit, or a CPA ICR audit work paper review. If selected for audit or review, the AGREEMENT, cost proposal and ICR and related work papers, if applicable, will be reviewed to verify compliance with 48 CFR Part 31 and other related laws and regulations.
In the instances of a CPA ICR audit work paper review it is CONSULTANT’s responsibility to ensure federal, CITY, or local government officials are allowed full access to the CPA’s work papers including making copies as necessary. The AGREEMENT, cost proposal, and ICR shall be adjusted by CONSULTANT and approved by CITY Contract Administrator to conform to the audit or review recommendations. CONSULTANT agrees that individual terms of costs identified in the audit report shall be incorporated into the AGREEMENT by this reference if directed by CITY at its sole discretion. Refusal by CONSULTANT to incorporate audit or review recommendations, or to ensure that the federal, CITY or local governments have access to CPA work papers, will be considered a breach of AGREEMENT terms and cause for termination of the AGREEMENT and disallowance of prior reimbursed costs.
E. CONSULTANT’s Cost Proposal may be subject to a CPA ICR Audit Work Paper Review and/or audit by the Independent Office of Audits and Investigations (IOAI). IOAI, at its sole discretion, may review and/or audit and approve the CPA ICR documentation. The Cost Proposal shall be adjusted by the CONSULTANT and approved by the CITY Contract Administrator to conform to the Work Paper Review recommendations included in the management letter or audit recommendations included in the audit report. Refusal by the CONSULTANT to incorporate the Work Paper Review recommendations included in the management letter or audit recommendations included in the audit report will be considered a breach of the AGREEMENT terms and cause for termination of the AGREEMENT and disallowance of prior reimbursed costs.
1. During IOAI’s review of the ICR audit work papers created by the CONSULTANT’s independent CPA, IOAI will work with the CPA and/or CONSULTANT toward a resolution of issues that arise during the review. Each party agrees to use its best efforts to resolve any audit disputes in a timely manner. If IOAI identifies significant issues during the review and is unable to issue a cognizant approval letter, CITY will reimburse the CONSULTANT at an accepted ICR until a FAR (Federal Acquisition Regulation) compliant ICR {e.g. 48 CFR Part 31; GAGAS (Generally Accepted Auditing Standards); CAS (Cost Accounting Standards), if applicable; in accordance with procedures and guidelines of the American Association of State Highways and Transportation Officials (AASHTO) Audit Guide; and other applicable procedures and guidelines}is received and approved by IOAI.
Accepted rates will be as follows:
a. If the proposed rate is less than one hundred fifty percent (150%) - the accepted rate reimbursed will be ninety percent (90%) of the proposed rate. b. If the proposed rate is between one hundred fifty percent (150%) and two hundred percent (200%) - the accepted rate will be eighty-five percent (85%) of the proposed rate.
c. If the proposed rate is greater than two hundred percent (200%) - the accepted rate will be seventy-five percent (75%) of the proposed rate.
2. If IOAI is unable to issue a cognizant letter per paragraph E.1. above, IOAI may require CONSULTANT to submit a revised independent CPA-audited ICR and audit report within three (3) months of the effective date of the management letter. IOAI will then have up to six (6) months to review the CONSULTANT’s and/or the independent CPA’s revisions.
3. If the CONSULTANT fails to comply with the provisions of this paragraph E, or if IOAI is still unable to issue a cognizant approval letter after the revised independent CPA audited ICR is submitted, overhead cost reimbursement will be limited to the accepted ICR that was established upon initial rejection of the ICR and set forth in paragraph E.1. above for all rendered services. In this event, this accepted ICR will become the actual and final ICR for reimbursement purposes under this AGREEMENT.
4. CONSULTANT may submit to CITY final invoice only when all of the following items have occurred: (1) IOAI accepts or adjusts the original or revised independent CPA audited ICR; (2) all work under this AGREEMENT has been completed to the satisfaction of CITY; and, (3) IOAI has issued its final ICR review letter. The CONSULTANT MUST SUBMIT ITS FINAL INVOICE TO CITY no later than sixty (60) calendar days after occurrence of the last of these items. The accepted ICR will apply to this AGREEMENT and all other agreements executed between CITY and the CONSULTANT, either as a prime or subconsultant, with the same fiscal period ICR.
ARTICLE XI EQUIPMENT PURCHASE AND OTHER CAPITAL EXPENDITURES A. Prior authorization in writing by CITY’s Contract Administrator shall be required before CONSULTANT enters into any unbudgeted purchase order, or subcontract exceeding five thousand dollars ($5,000) for supplies, equipment, or CONSULTANT services. CONSULTANT shall provide an evaluation of the necessity or desirability of incurring such costs.
B. For purchase of any item, service, or consulting work not covered in CONSULTANT’s approved Cost Proposal and exceeding five thousand dollars ($5,000), with prior authorization by CITY’s Contract Administrator, three competitive quotations must be submitted with the request, or the absence of proposal must be adequately justified.
C. Any equipment purchased with funds provided under the terms of this AGREEMENT is subject to the following:
1. CONSULTANT shall maintain an inventory of all nonexpendable property. Nonexpendable property is defined as having a useful life of at least two years and an acquisition cost of five thousand dollars ($5,000) or more. If the purchased equipment needs replacement and is sold or traded in, CITY shall receive a proper refund or credit at the conclusion of the AGREEMENT, or if the AGREEMENT is terminated, CONSULTANT may either keep the equipment and credit CITY in an amount equal to its fair market value, or sell such equipment at the best price obtainable at a public or private sale, in accordance with established CITY procedures; and credit CITY in an amount equal to the sales price. If CONSULTANT elects to keep the equipment, fair market value shall be determined at CONSULTANT’s expense, on the basis of a competent independent appraisal of such equipment. Appraisals shall be obtained from an appraiser mutually agreeable to by CITY and CONSULTANT, if it is determined to sell the equipment, the terms and conditions of such sale must be approved in advance by CITY.
2. Regulation 2 CFR Part 200 requires a credit to Federal funds when participating equipment with a fair market value greater than five thousand dollars ($5,000) is credited to the project.
ARTICLE X CONFLICT OF INTEREST
A. During the term of this AGREEMENT, the CONSULTANT shall disclose any financial, business, or other relationship with CITY that may have an impact upon the outcome of this AGREEMENT or any ensuing CITY construction project. The CONSULTANT shall also list current clients who may have a financial interest in the outcome of this AGREEMENT or any ensuing CITY construction project which will follow.
B. CONSULTANT certifies that it has disclosed to CITY any actual, apparent, or potential conflicts of interest that may exist relative to the services to be provided pursuant to this AGREEMENT.
CONSULTANT agrees to advise CITY of any actual, apparent or potential conflicts of interest that may develop subsequent to the date of execution of this AGREEMENT. CONSULTANT further agrees to complete any statements of economic interest if required by either CITY ordinance or State law.
C. The CONSULTANT hereby certifies that it does not now have nor shall it acquire any financial or business interest that would conflict with the performance of services under this AGREEMENT.
D. The CONSULTANT hereby certifies that the CONSULTANT or subconsultant and any firm affiliated with the CONSULTANT or subconsultant that bids on any construction contract or on any Agreement to provide construction inspection for any construction project resulting from this AGREEMENT, has established necessary controls to ensure a conflict of interest does not exist.
An affiliated firm is one, which is subject to the control of the same persons, through joint ownership or otherwise.
ARTICLE XI NON-DISCRIMINATION CLAUSE AND STATEMENT OF COMPLIANCE A. The CONSULTANT’s signature affixed herein and dated shall constitute a certification under penalty of perjury under the laws of the State of California that the CONSULTANT has, unless exempt, complied with the nondiscrimination program requirements of Gov. Code §12990 and 2 CCR § 8103.
B. During the performance of this AGREEMENT, CONSULTANT and its subconsultants shall not deny the AGREEMENT’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. CONSULTANT and subconsultants shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.
C. CONSULTANT and subconsultants shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 et seq.), the applicable regulations promulgated there under (2 CCR §11000 et seq.), the provisions of Gov. Code §§11135-11139.5, and the regulations or standards adopted by CITY to implement such article. The applicable regulations of the Fair Employment and Housing Commission implementing Gov. Code §12990 (a-f), set forth 2 CCR §§8100-8504, are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full.
D. CONSULTANT shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this clause.
E. CONSULTANT and its subconsultants shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.
F. CONSULTANT shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this AGREEMENT.
G. The CONSULTANT, with regard to the work performed under this AGREEMENT, shall act in accordance with Title VI of the Civil Rights Act of 1964 (42 U.S.C. §2000d et seq.). Title VI provides that the recipients of federal assistance will implement and maintain a policy of nondiscrimination in which no person in the United States shall, on the basis of race, color, national origin, religion, sex, age, disability, be excluded from participation in, denied the benefits of or subject to discrimination under any program or activity by the recipients of federal assistance or their assignees and successors in interest.
H. The CONSULTANT shall comply with regulations relative to non-discrimination in federallyassisted programs of the U.S. Department of Transportation (49 CFR Part 21 - Effectuation of Title VI of the Civil Rights Act of 1964). Specifically, the CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by 49 CFR §21.5, including employment practices and the selection and retention of Subconsultants.
I. CONSULTANT, subrecipient or subconsultant will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR 26 on the basis of race, color, sex, or national origin. In administering the CITY components of the DBE Program Plan, CONSULTANT, subrecipient or subconsultant will not, directly, or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE Program Plan with respect to individuals of a particular race, color, sex, or national origin.
ARTICLE XII DISADVANTAGED BUSINESS ENTERPRISES (DBE) PARTICIPATION A. CONSULTANT, subrecipient (CITY), or subconsultant shall take necessary and reasonable steps to ensure that DBEs have opportunities to participate in the contract (49 CFR 26). To ensure equal participation of DBEs provided in 49 CFR 26.5, The CITY shows a contract goal for DBEs. CONSULTANT shall make work available to DBEs and select work parts consistent with available DBE subconsultants and suppliers.
CONSULTANT shall meet the DBE goal shown elsewhere in these special provisions or demonstrate that they made adequate good faith efforts to meet this goal. It is CONSULTANT’s responsibility to verify at date of proposal opening that the DBE firm is certified as a DBE by using the California Unified Certification Program (CUCP) database and possesses the most specific available North American Industry Classification System (NAICS) codes or work code applicable to the type of work the firm will perform on the contract. Additionally, the CONSULTANT is responsible to document the verification record by printing out the CUCP data for each DBE firm. A list of DBEs certified by the CUCP can be found at https://dot.ca.gov/programs/civil-rights/dbesearch.
All DBE participation will count toward the California Department of Transportation’s federally mandated statewide overall DBE goal. Credit for materials or supplies CONSULTANT purchases from DBEs counts towards the goal in the following manner:
100 percent counts if the materials or supplies are obtained from a DBE manufacturer. 60 percent counts if the materials or supplies are purchased from a DBE regular dealer. Only fees, commissions, and charges for assistance in the procurement and delivery of materials or supplies count if obtained from a DBE that is neither a manufacturer nor regular dealer. 49CFR26.55 defines "manufacturer" and "regular dealer." This AGREEMENT is subject to 49 CFR Part 26 entitled “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs”.
CONSULTANTs who enter into a federally-funded agreement will assist the CITY in a good faith effort to achieve California's statewide overall DBE goal.
B. The goal for DBE participation for this AGREEMENT is ________ %. Participation by DBE CONSULTANT or subconsultants shall be in accordance with information contained in Exhibit 10O2: Consultant Contract DBE Commitment attached hereto and incorporated as part of the AGREEMENT. If a DBE subconsultant is unable to perform, CONSULTANT must make a good faith effort to replace him/her with another DBE subconsultant, if the goal is not otherwise met.
C. CONSULTANT can meet the DBE participation goal by either documenting commitments to DBEs to meet the AGREEMENT goal, or by documenting adequate good faith efforts to meet the AGREEMENT goal. An adequate good faith effort means that the CONSULTANT must show that it took all necessary and reasonable steps to achieve a DBE goal that, by their scope, intensity, and appropriateness to the objective, could reasonably be expected to meet the DBE goal. If CONSULTANT has not met the DBE goal, complete and submit Exhibit 15-H: DBE Information – Good Faith Efforts to document efforts to meet the goal. Refer to 49 CFR Part 26 for guidance regarding evaluation of good faith efforts to meet the DBE goal.
D. Contract Assurance
Under 49 CFR 26.13(b):
CONSULTANT, subrecipient or subconsultant shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. CONSULTANT shall carry out applicable requirements of 49 CFR 26 in the award and administration of federal-aid contracts.
Failure by the CONSULTANT to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying CONSULTANT from future proposing as non-responsible E. Termination and Substitution of DBE Subconsultants
CONSULTANT shall utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless CONSULTANT or DBE subconsultant obtains the CITY’s written consent. CONSULTANT shall not terminate or substitute a listed DBE for convenience and perform the work with their own forces or obtain materials from other sources without authorization from the CITY. Unless the CITY’s consent is provided, the CONSULTANT shall not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE on the Exhibit 10-02 Consultant Contract DBE Commitment form, included in the Bid.
The CITY authorizes a request to use other forces or sources of materials if CONSULTANT shows any of the following justifications:
1. Listed DBE fails or refuses to execute a written contract based on plans and specifications for the project.
2. The CITY stipulated that a bond is a condition of executing the subcontract and the listed DBE fails to meet the CITY’s bond requirements.
3. Work requires a consultant's license and listed DBE does not have a valid license under Contractors License Law.
4. Listed DBE fails or refuses to perform the work or furnish the listed materials (failing or refusing to perform is not an allowable reason to remove a DBE if the failure or refusal is a result of bad faith or discrimination).
5. Listed DBE's work is unsatisfactory and not in compliance with the contract.
6. Listed DBE is ineligible to work on the project because of suspension or debarment.
7. Listed DBE becomes bankrupt or insolvent.
8. Listed DBE voluntarily withdraws with written notice from the Contract
9. Listed DBE is ineligible to receive credit for the type of work required.
10. Listed DBE owner dies or becomes disabled resulting in the inability to perform the work on the Contract.
11. The CITY determines other documented good cause.
CONSULTANT shall notify the original DBE of the intent to use other forces or material sources and provide the reasons and provide the DBE with 5 days to respond to the notice and advise CONSULTANT and the CITY of the reasons why the use of other forces or sources of materials should not occur.
CONSULTANT’s request to use other forces or material sources must include:
1. One or more of the reasons listed in the preceding paragraph.
2. Notices from CONSULTANT to the DBE regarding the request.
3. Notices from the DBEs to CONSULTANT regarding the request.
If a listed DBE is terminated or substituted, CONSULTANT must make good faith efforts to find another DBE to substitute for the original DBE. The substitute DBE must perform at least the same amount of work as the original DBE under the contract to the extent needed to meet or exceed the DBE goal.
F. Commitment and Utilization
The CITY’s DBE program must include a monitoring and enforcement mechanism to ensure that DBE commitments reconcile to DBE utilization.
The CITY shall request CONSULTANT to:
1. Notify the CITY’s contract administrator or designated representative of any changes to its anticipated DBE participation
2. Provide this notification before starting the affected work
3. Maintain records including:
Name and business address of each 1st-tier subconsultant Name and business address of each DBE subconsultant, DBE vendor, and DBE trucking company, regardless of tier
Date of payment and total amount paid to each business (see Exhibit 9-F Monthly Disadvantaged Business Enterprise Payment)
If CONSULTANT is a DBE CONSULTANT, they shall include the date of work performed by their own forces and the corresponding value of the work.
If a DBE is decertified before completing its work, the DBE must notify CONSULTANT in writing of the decertification date. If a business becomes a certified DBE before completing its work, the business must notify CONSULTANT in writing of the certification date. CONSULTANT shall submit the notifications to the CITY. On work completion, CONSULTANT shall complete a Disadvantaged Business Enterprises (DBE) Certification Status Change, Exhibit 17-O, form and submit the form to the CITY within 30 days of contract acceptance.
Upon work completion, CONSULTANT shall complete Exhibit 17-F Final Report – Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Subcontractors and submit it to the CITY within 90 days of contract acceptance. The CITY will withhold $10,000 until the form is submitted. The CITY will release the withhold upon submission of the completed form.
In the CITY’s reports of DBE participation to Caltrans, the CITY must display both commitments and attainments.
G. A DBE is only eligible to be counted toward the AGREEMENT goal if it performs a commercially useful function (CUF) on the AGREEMENT. CUF must be evaluated on an agreement by agreement basis. A DBE performs a Commercially Useful Function (CUF) when it is responsible for execution of the work of the AGREEMENT and is carrying out its responsibilities by actually performing, managing, and supervising the work involved. To perform a CUF, the DBE must also be responsible, with respect to materials and supplies used on the AGREEMENT, for negotiating price, determining quality and quantity, ordering the material and installing (where applicable), and paying for the material itself. To determine whether a DBE is performing a CUF, evaluate the amount of work subcontracted, industry practices, whether the amount the firm is to be paid under the AGREEMENT is commensurate with the work it is actually performing, and other relevant factors.
H. A DBE does not perform a CUF if its role is limited to that of an extra participant in a transaction, AGREEMENT, or project through which funds are passed in order to obtain the appearance of DBE participation. In determining whether a DBE is such an extra participant, examine similar transactions, particularly those in which DBEs do not participate.
I. If a DBE does not perform or exercise responsibility for at least thirty percent (30%) of the total cost of its AGREEMENT with its own work force, or the DBE subcontracts a greater portion of the work of the AGREEMENT than would be expected on the basis of normal industry practice for the type of work involved, it will be presumed that it is not performing a CUF.
J. CONSULTANT shall maintain records of materials purchased or supplied from all subcontracts entered into with certified DBEs. The records shall show the name and business address of each DBE or vendor and the total dollar amount actually paid each DBE or vendor, regardless of tier. The records shall show the date of payment and the total dollar figure paid to all firms.
DBE CONSULTANT’s shall also show the date of work performed by their own forces along with the corresponding dollar value of the work.
K. If a DBE subconsultant is decertified during the life of the AGREEMENT, the decertified subconsultant shall notify CONSULTANT in writing with the date of decertification. If a subconsultant becomes a certified DBE during the life of the AGREEMENT, the subconsultant shall notify CONSULTANT in writing with the date of certification. Any changes should be reported to CITY’s Contract Administrator within thirty (30) calendar days.
L. After submitting an invoice for reimbursement that includes a payment to a DBE, but no later than the 10th of the following month, the prime contractor/consultant shall complete and email the Exhibit 9- F: Disadvantaged Business Enterprise Running Tally of Payments to [email protected] with a copy to the Agency.
M. Any subcontract entered into as a result of this AGREEMENT shall contain all of the provisions of this section.
ARTICLE XIII FUNDING REQUIREMENTS
A. It is mutually understood between the parties that this AGREEMENT may have been written before ascertaining the availability of funds or appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that would occur if the AGREEMENT were executed after that determination was made.
B. This AGREEMENT is valid and enforceable only if sufficient funds are made available to CITY for the purpose of this AGREEMENT. In addition, this AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the Congress, State Legislature, or CITY governing board that may affect the provisions, terms, or funding of this AGREEMENT in any manner.
C. It is mutually agreed that if sufficient funds are not appropriated, this AGREEMENT may be amended to reflect any reduction in funds.
D. CITY has the option to terminate the AGREEMENT pursuant to Article VI Termination, or by mutual agreement to amend the AGREEMENT to reflect any reduction of funds.
ARTICLE XIV OWNERSHIP OF DATA
A. It is mutually agreed that all materials prepared by CONSULTANT under this AGREEMENT shall become the property of City, and CONSULTANT shall have no property right therein whatsoever.
Immediately upon termination, City shall be entitled to, and CONSULTANT shall deliver to City, reports, investigations, appraisals, inventories, studies, analyses, drawings and data estimates performed to that date, whether completed or not, and other such materials as may have been prepared or accumulated to date by CONSULTANT in performing this AGREEMENT which is not CONSULTANT’s privileged information, as defined by law, or CONSULTANT’s personnel information, along with all other property belonging exclusively to City which is in CONSULTANT’s possession. Publication of the information derived from work performed or data obtained in connection with services rendered under this AGREEMENT must be approved in writing by City.
B. Additionally, it is agreed that the Parties intend this to be an AGREEMENT for services and each considers the products and results of the services to be rendered by CONSULTANT hereunder to be work made for hire. CONSULTANT acknowledges and agrees that the work (and all rights therein, including, without limitation, copyright) belongs to and shall be the sole and exclusive property of City without restriction or limitation upon its use or dissemination by City.
C. Nothing herein shall constitute or be construed to be any representation by CONSULTANT that the work product is suitable in any way for any other project except the one detailed in this Contract. Any reuse by City for another project or project location shall be at City’s sole risk.
D. Applicable patent rights provisions regarding rights to inventions shall be included in the contracts as appropriate (48 CFR 27 Subpart 27.3 - Patent Rights under Government Contracts for federal-aid contracts).
E. CITY may permit copyrighting reports or other agreement products. If copyrights are permitted; the AGREEMENT shall provide that the FHWA shall have the royalty-free nonexclusive and irrevocable right to reproduce, publish, or otherwise use; and to authorize others to use, the work for government purposes.
ARTICLE XV CONFIDENTIALITY OF DATA
A. All financial, statistical, personal, technical, or other data and information relative to CITY’s operations, which are designated confidential by CITY and made available to CONSULTANT in order to carry out this AGREEMENT, shall be protected by CONSULTANT from unauthorized use and disclosure.
B. Permission to disclose information on one occasion, or public hearing held by CITY relating to the AGREEMENT, shall not authorize CONSULTANT to further disclose such information, or disseminate the same on any other occasion.
C. CONSULTANT shall not comment publicly to the press or any other media regarding the AGREEMENT or CITY’s actions on the same, except to CITY’s staff, CONSULTANT’s own personnel involved in the performance of this AGREEMENT, at public hearings, or in response to questions from a Legislative committee.
D. CONSULTANT shall not issue any news release or public relations item of any nature, whatsoever, regarding work performed or to be performed under this AGREEMENT without prior review of the contents thereof by CITY, and receipt of CITY’S written permission.
ARTICLE XVI TITLE VI ASSURANCES
APPENDICES A - E of the TITLE VI ASSURANCES
The U.S. Department of Transportation Order No.1050.2A requires all federal-aid Department of Transportation contracts between an agency and a consultant to contain Appendices A and E of the Title VI Assurances. Include Appendices B, C, and D if appliable as shown below. In addition, the consultant must include the Title VI Assurances Appendices A and E, and if applicable Appendices B, C, and D in all subcontracts to perform work under the contract.
The clauses of Appendix B of this Assurance shall be included as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a CITY.
The clauses set forth in Appendix C and Appendix D of this Assurance shall be included as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the CITY with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.
APPENDIX A
During the performance of this Agreement, the contractor, for itself, its assignees and successors in interest (hereinafter collectively referred to as CONSULTANT) agrees as follows:
a. Compliance with Regulations: CONSULTANT shall comply with the regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to as the REGULATIONS), which are herein incorporated by reference and made a part of this agreement.
b. Nondiscrimination: CONSULTANT, with regard to the work performed by it during the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in the selection and retention of sub-applicants, including procurements of materials and leases of equipment. CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the agreement covers a program set forth in Appendix B of the Regulations.
c. Solicitations for Sub-agreements, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by CONSULTANT for work to be performed under a Sub- agreement, including procurements of materials or leases of equipment, each potential sub-applicant or supplier shall be notified by CONSULTANT of the CONSULTANT’S obligations under this Agreement and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin. d. Information and Reports: CONSULTANT shall provide all information and reports required by the Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the recipient or FHWA to be pertinent to ascertain compliance with such Regulations or directives. Where any information required of CONSULTANT is in the exclusive possession of another who fails or refuses to furnish this information, CONSULTANT shall so certify to the recipient or FHWA as appropriate, and shall set forth what efforts CONSULTANT has made to obtain the information.
e. Sanctions for Noncompliance: In the event of CONSULTANT’s noncompliance with the nondiscrimination provisions of this agreement, the recipient shall impose such agreement
sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
i. withholding of payments to CONSULTANT under the Agreement within a reasonable period of time, not to exceed 90 days; and/or ii. cancellation, termination or suspension of the Agreement, in whole or in part. f. Incorporation of Provisions: CONSULTANT shall include the provisions of paragraphs (1) through (6) in every sub-agreement, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto.
CONSULTANT shall take such action with respect to any sub-agreement or procurement as the recipient or FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance, provided, however, that, in the event CONSULTANT becomes involved in, or is threatened with, litigation with a sub-applicant or supplier as a result of such direction, CONSULTANT may request the recipient enter into such litigation to protect the interests of the State, and, in addition, CONSULTANT may request the United States to enter into such litigation to protect the interests of the United States.
APPENDIX B-D
(Not Applicable)
APPENDIX E
During the performance of this contract, the CONSULTANT, for itself, its assignees, and successors in interest (hereinafter referred to as the “CONSULTANT”) agrees to comply with the following nondiscrimination statutes and authorities, including, but not limited to:
Pertinent Non-Discrimination Authorities:
Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part
21. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), prohibits discrimination on the basis of sex;
Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CR Part 27; The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), prohibits discrimination on the basis of age);
Airport and Airway Improvement Act of 1982, (49 U.S.C. § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not);
Titles II and III of the Americans with Disabilities Act, which prohibit discrimination of the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations 49 C.F.R. parts 37 and 38; The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations;
Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).
ARTICLE XVII COMPLIANCE WITH LAWS
CONSULTANT agrees that it shall perform all duties and obligations under this AGREEMENT in compliance with all applicable laws including, but not limited to, all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387) as applicable. Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Rosemead/Lakewood Blvd.
Complete Corridor Project (ATP+BRT+TOD)
Project Summary Project Funding
Overview
A 28-mile, north-south mul�modal corridor
that accommodates high-quality ac�ve
transporta�on (ATP) facili�es, bus rapid transit
(BRT), and transit-oriented development
(TOD).
Planning &
Design
$8M – Northern segment – San Gabriel Valley
$12M – Southern segment – Gateway Ci�es
$20M – TOTAL
*Plan includes a flexible implementa�on strategy for ci�es.
Partners
Southern Segment: Ci�es of Pico Rivera,
Lakewood, Long Beach, Gateway Ci�es COG, &
LA Metro
Construc�on
Es�mate $200M - $300M – Full corridor
Benefits
• Regional mobility
• Ac�ve lifestyles & public health
• Safer streets & placemaking
• Environmental sustainability
• Economic growth
• Connec�vity & access to des�na�ons
Secured
Local
Funding
Pico Rivera $50,000 Feasibility Study
Metro $250,000 Technical Modeling
Caltrans $660,000 Vision Master Plan
Timeline
2024 – Planning + Early Design
2026 – Full Design + Environmental
2030 – Comple�on + Revenue Service
Target
Funding
Congressional Earmarks, USDOT – RAISE Grant,
SCAG, Caltrans, Metro & others
Immediate Goal
Secure $20M to master plan, fully design, and environmentally clear the en�re 28-mile corridor by the end of 2027.
Federal Strategy State Strategy
Coordinated Earmark Request: Work with corridor ci�es and stakeholders to submit a coordinated, regional funding
request to Senator Padilla & Senator Butler.
TOTAL REQUEST = up to $20M
1) Secure leters of support from corridor ci�es & representa�ves 2) Present project to Senate Transporta�on Commitee
3) Create a Select Commitee in the Assembly
GOAL: Leverage federal requests & address any funding gaps. ***The image is strictly for illustra�ve purposes and subject to changed based on input from corridor ci�es & communi�es.*** 28 miles North-South
ENCLOSURE 2
11b
We, the undersigned cities, agencies, and organizations support the Rosemead/Lakewood Boulevard Complete Corridor Project and the pursuit of funding for the planning stages of the project. *Letters furnished upon request.
Rosemead/Lakewood Blvd. Complete Corridor Project – Signature Page – As of February 2024 1 Linda T. Sanchez
US Representative
38th District, California
Susan Rubio
CA Senator
22th District
Bob Archuleta
CA Senator
30th District
Lena Gonzalez
CA Senator
33rd District
Lisa Calderon
CA Assembly Member
56th District
Anthony Rendon
CA Assembly Member
62nd District
Janice Hahn
Supervisor, District 4
Los Angeles County
Kome Ajise
Executive Director
So Cal Association of Govt’s
Nancy Pfeffer
Executive Director
Gateway Cities COG
Steve Carmona
City Manager
City of Pico Rivera
Thaddeus McCormack
City Manager
City of Lakewood
Tom Modica
City Manager
City of Long Beach
Jesus M. Gomez
City Manager
City of Norwalk
Lee Torres
Acting Public Work Director
City of El Monte
Gloria Olmos
Mayor
City of South El Monte
Chris Hanna
Executive Secretary
LA/OC Building &
Construction Trades Council
AFL-CIO
Jane Close Conoley
President
Cal State Long Beach
Kenneth A. McDonald
President & CEO
Long Beach Transit
Daniel Andrade
Executive Director
Pico Rivera Chamber of
Commerce
Michael Schneider
CEO
Streets for All
Marisa Garcia
Director of Activism
Move LA
Jesse Flores
Coordinator
Norwalk Unides
David Diaz, MPH
Executive Director
ActiveSGV
Eli Akira Kaufman
Ex. Director
Bike LA
Alex Contreras
Executive Director
Happy City Coalition
We, the undersigned cities, agencies, and organizations support the Rosemead/Lakewood Boulevard Complete Corridor Project and the pursuit of funding for the planning stages of the project. *Letters furnished upon request.
Rosemead/Lakewood Blvd. Complete Corridor Project – Signature Page – As of February 2024 2 Christy Zamani
Executive Director
Day One
To: Mayor and City Council
From: City Manager
Meeting Date: February 27, 2024
Subject: TREASURER’S MONTHLY INVESTMENT TRANSACTION
REPORT AS OF JANUARY 31, 2024
Recommendation:
1. Receive and file the Treasurer’s Monthly Investment Transaction Report as of January 31, 2024.
Fiscal Impact:
There is no fiscal impact to the General Fund from this item.
Background:
Per the City of Pico Rivera (City) Investment Policy approved by the City Council on August 1, 2023, the City Treasurer submits a monthly investment transaction report to the City Council within 45 days of the end of the reporting period in accordance with California Government Code Section 53607.
Discussion:
This report updates the City Council on the City’s monthly transactions of the City’s investment portfolio for the month ending January 31, 2024. Staff is committed to ensuring the City’s investment portfolio aligns with safety, liquidity, and yield objectives.
As part of this commitment, staff continuously research alternative investment opportunities to enhance the City’s portfolio.
Cryptocurrency
In January 2024, the U.S. Securities and Exchange Commission (SEC) approved Cryptocurrency as a form of exchange-traded funds (ETFs). Upon learning of this, staff engaged with our investment brokers at Chandler Asset Management (Chandler) and Commercial Bank of California (CBC) to obtain an understanding of how this may impact the City’s Investment Policy and investment options. It was confirmed by Chandler and CBC that Cryptocurrency is not an approved asset class under the California Government Code. Specifically, per section 53601 (I): “Shares of beneficial interest issued by 12 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 TREASURER’S MONTHLY INVESTMENT TRANSACTION REPORT AS OF JANUARY 31, 2024
diversified management companies are eligible for purchases, provided they invest in security and obligations authorized by subdivisions (a) to (k) and (m) to (q) and comply with the investment restrictions of article 2 section 53630.” This section states that a local agency can purchase shares of beneficial interest issued by diversified management companies only if the investments are included in the specified types of securities and obligations outlined in the California Government Code. Therefore, an underlying asset class must be approved by the California Government Code to be eligible through a mutual fund. This regulation aims to ensure prudent investment practices within the state.
Given that Cryptocurrency isn't among the approved underlying asset classes by the State of California, the City's investment portfolios do not include Cryptocurrency. Staff remains committed to investing in assets that align with the City’s safety, liquidity, and yield goals.
Conclusion:
As of January 31, 2024, the City’s portfolio remains highly rated, liquid, and stable. All investments are maintained in accordance with California Government Code Section 53601 and the City’s investment policy approved by the City Council on August 1, 2023.
Steve Carmona
SC:AG:MP:JM:ep
Enclosures: 1) LAIF Statement for the Month Ending January 31, 2024. 2) Chandler Asset Management Transaction Ledger for the Month Ending January 31, 2024.
3) Commercial Bank of California Insured Cash Sweep Statement for the Month Ending January 31, 2024.
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City of Pico Rivera Portfolio
Chandler Investment Transactions
January 2024
Transaction
Date
Tran Category Tran Type
Description
Security Description Quantity Price Principal Interest Total Amount 1/2/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 2,059.62 1.00000 2,059.62 - 2,059.62 1/5/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 401,925.78 1.00000 401,925.78 - 401,925.78 1/6/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,125.00 1.00000 1,125.00 - 1,125.00 1/10/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 9,600.00 1.00000 9,600.00 - 9,600.00 1/15/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,309.48 1.00000 1,309.48 - 1,309.48 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 358.42 1.00000 358.42 - 358.42 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 3,539.86 1.00000 3,539.86 - 3,539.86 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 11,722.71 1.00000 11,722.71 - 11,722.71 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,438.50 1.00000 1,438.50 - 1,438.50 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 394.62 1.00000 394.62 - 394.62 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 678.00 1.00000 678.00 - 678.00 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,483.50 1.00000 1,483.50 - 1,483.50 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 6,140.29 1.00000 6,140.29 - 6,140.29 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 8,788.79 1.00000 8,788.79 - 8,788.79 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 527.58 1.00000 527.58 - 527.58 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 591.58 1.00000 591.58 - 591.58 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 428.38 1.00000 428.38 - 428.38 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,503.62 1.00000 1,503.62 - 1,503.62 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 933.17 1.00000 933.17 - 933.17 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 5,705.76 1.00000 5,705.76 - 5,705.76 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 15,429.95 1.00000 15,429.95 - 15,429.95 1/16/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 3,902.26 1.00000 3,902.26 - 3,902.26 1/17/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 205,000.00 1.00000 205,000.00 - 205,000.00 1/17/2024 Acquisitions Purchase John Deere Capital Corp Note 400,000.00 1.00518 402,072.00 450.00 402,522.00 1/17/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 7,311.03 1.00000 7,311.03 - 7,311.03 1/18/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 279.75 1.00000 279.75 - 279.75 1/18/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 2,327.87 1.00000 2,327.87 - 2,327.87 1/19/2024 Acquisitions Purchase ROYAL BANK OF CANADA Note 305,000.00 0.99975 304,923.75 - 304,923.75 1/22/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 3,605.17 1.00000 3,605.17 - 3,605.17 1/22/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 294.00 1.00000 294.00 - 294.00 1/22/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 336.25 1.00000 336.25 - 336.25 1/22/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 4,722.66 1.00000 4,722.66 - 4,722.66 1/25/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,312.08 1.00000 1,312.08 - 1,312.08 1/25/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 930.42 1.00000 930.42 - 930.42 1/25/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 503.75 1.00000 503.75 - 503.75 1/25/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 172.00 1.00000 172.00 - 172.00 1/25/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,143.75 1.00000 1,143.75 - 1,143.75 1/25/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,327.92 1.00000 1,327.92 - 1,327.92 1/25/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 8,757.90 1.00000 8,757.90 - 8,757.90 1/30/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,500.00 1.00000 1,500.00 - 1,500.00 1/30/2024 Acquisitions Purchase Toyota Auto Receivables OT 2024-A A3 170,000.00 0.99980 169,965.98 - 169,965.98 1/31/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 1,000,000.00 1.00000 1,000,000.00 - 1,000,000.00 1/31/2024 Acquisitions Purchase US Treasury Bill 425,000.00 0.99100 421,173.76 - 421,173.76 1/31/2024 Acquisitions Purchase First American Govt Obligation Fund Class Y 17,375.00 1.00000 17,375.00 - 17,375.00 1/31/2024 Acquisitions Purchase US Treasury Bill 425,000.00 0.98197 417,339.00 - 417,339.00 1/17/2024 Acquisitions Short Sale First American Govt Obligation Fund Class Y (402,522.00) 1.00000 (402,522.00) - (402,522.00) 1/31/2024 Acquisitions Short Sale First American Govt Obligation Fund Class Y (838,512.76) 1.00000 (838,512.76) - (838,512.76) 1/17/2024 Dispositions Closing Purchase First American Govt Obligation Fund Class Y (402,522.00) 1.00000 (402,522.00) - 402,522.00 1/31/2024 Dispositions Closing Purchase First American Govt Obligation Fund Class Y (838,512.76) 1.00000 (838,512.76) - 838,512.76 1/17/2024 Dispositions Maturity John Deere Capital Corp Note 205,000.00 1.00000 205,000.00 - (205,000.00) 1/31/2024 Dispositions Maturity US Treasury Note 1,000,000.00 1.00000 1,000,000.00 - (1,000,000.00) Enclosure 2
12b
City of Pico Rivera Portfolio
Chandler Investment Transactions
January 2024
1/16/2024 Dispositions Paydown American Express Credit Trust 2023-1 A - - - 527.58 (527.58) 1/16/2024 Dispositions Paydown John Deere Owner Trust 2022-A A3 5,960.58 1.00000 5,960.58 179.71 (6,140.29) 1/16/2024 Dispositions Paydown John Deere Owner Trust 2022-C A3 - - - 933.17 (933.17) 1/16/2024 Dispositions Paydown Mercedes-Benz Auto Receivables 2022-1 A2 15,006.27 1.00000 15,006.27 423.68 (15,429.95) 1/16/2024 Dispositions Paydown Mercedes-Benz Auto Lease Trust 2021-B A3 11,718.80 1.00000 11,718.80 3.91 (11,722.71) 1/16/2024 Dispositions Paydown Hyundai Auto Receivables Trust 2023-A A3 - - - 591.58 (591.58) 1/16/2024 Dispositions Paydown Mercedes-Benz Auto Receivable 2023-1 A3 - - - 394.62 (394.62) 1/16/2024 Dispositions Paydown Toyota Auto Receivables Trust 2021-D A3 3,868.78 1.00000 3,868.78 33.48 (3,902.26) 1/16/2024 Dispositions Paydown GM Auto Receivable Trust 2023-2 A3 - - - 428.38 (428.38) 1/16/2024 Dispositions Paydown John Deere Owner Trust 2023-C A3 - - - 1,438.50 (1,438.50) 1/16/2024 Dispositions Paydown John Deere Owner Trust 2021-A A3 3,532.60 1.00000 3,532.60 7.26 (3,539.86) 1/16/2024 Dispositions Paydown John Deere Owner Trust 2021-B A3 5,676.72 1.00000 5,676.72 29.04 (5,705.76) 1/16/2024 Dispositions Paydown American Express Credit Trust 2022-2 A - - - 678.00 (678.00) 1/16/2024 Dispositions Paydown American Express Credit Trust 2023-3 A - - - 1,503.62 (1,503.62) 1/16/2024 Dispositions Paydown Chase Issuance Trust 23-A1 A - - - 1,483.50 (1,483.50) 1/16/2024 Dispositions Paydown Honda Auto Receivables Trust 2022-1 A3 8,574.74 1.00000 8,574.74 214.05 (8,788.79) 1/16/2024 Dispositions Paydown John Deere Owner Trust 2022-B A3 - - - 358.42 (358.42) 1/18/2024 Dispositions Paydown Honda Auto Receivables Trust 2020-3 A3 2,327.15 1.00000 2,327.15 0.72 (2,327.87) 1/18/2024 Dispositions Paydown Honda Auto Receivables 2022-2 A3 - - - 279.75 (279.75) 1/22/2024 Dispositions Paydown GM Financial Auto Leasing 2023-3 A3 - - - 336.25 (336.25) 1/22/2024 Dispositions Paydown Honda Auto Receivables Owner 2023-1 A3 - - - 294.00 (294.00) 1/22/2024 Dispositions Paydown Honda Auto Receivables Trust 2021-1 A3 3,601.24 1.00000 3,601.24 3.93 (3,605.17) 1/22/2024 Dispositions Paydown Honda Auto Receivables Trust 2021-4 A3 4,676.69 1.00000 4,676.69 45.97 (4,722.66) 1/25/2024 Dispositions Paydown BMW Vehicle Lease Trust 2022-1 A3 8,737.64 1.00000 8,737.64 20.26 (8,757.90) 1/25/2024 Dispositions Paydown FHLMC K069 A2 - - - 1,327.92 (1,327.92) 1/25/2024 Dispositions Paydown BMW Vehicle Lease Trust 2023-1 A3 - - - 172.00 (172.00) 1/25/2024 Dispositions Paydown FHLMC K054 A2 - - - 1,143.75 (1,143.75) 1/25/2024 Dispositions Paydown FHLMC K081 A2 - - - 503.75 (503.75) 1/25/2024 Dispositions Paydown FHLMC K073 A2 - - - 1,312.08 (1,312.08) 1/25/2024 Dispositions Paydown FHLMC K085 A2 - - - 930.42 (930.42) 1/5/2024 Dispositions Sale Amazon.com Inc Note 400,000.00 1.00047 400,188.00 1,737.78 (401,925.78) 1/17/2024 Dispositions Sale First American Govt Obligation Fund Class Y 402,522.00 1.00000 402,522.00 - (402,522.00) 1/19/2024 Dispositions Sale First American Govt Obligation Fund Class Y 304,923.75 1.00000 304,923.75 - (304,923.75) 1/30/2024 Dispositions Sale First American Govt Obligation Fund Class Y 169,965.98 1.00000 169,965.98 - (169,965.98) 1/31/2024 Dispositions Sale First American Govt Obligation Fund Class Y 838,512.76 1.00000 838,512.76 - (838,512.76) 1/8/2024 Dispositions Security Withdrawal First American Govt Obligation Fund Class Y 2,558.83 1.00000 2,558.83 - (2,558.83) 1/26/2024 Dispositions Security Withdrawal First American Govt Obligation Fund Class Y 252.90 1.00000 252.90 - (252.90) 1/2/2024 Other Transactions Dividend First American Govt Obligation Fund Class Y 292,749.87 - 2,059.62 - 2,059.62 1/6/2024 Other Transactions Interest FFCB Note 200,000.00 - 1,125.00 - 1,125.00 1/10/2024 Other Transactions Interest Toyota Motor Credit Corp Note 400,000.00 - 9,600.00 - 9,600.00 1/15/2024 Other Transactions Interest International Finance Corp Note 240,000.00 - 1,137.60 - 1,137.60 1/15/2024 Other Transactions Interest Salesforce.com Inc Callable Note Cont 7/15/2022 55,000.00 - 171.88 - 171.88 1/17/2024 Other Transactions Interest John Deere Capital Corp Note 205,000.00 - 461.25 - 461.25 1/17/2024 Other Transactions Interest Morgan Stanley Callable Note Cont 7/17/2025 145,000.00 - 3,392.28 - 3,392.28 1/17/2024 Other Transactions Interest Toronto-Dominion Bank Note 125,000.00 - 3,457.50 - 3,457.50 1/30/2024 Other Transactions Interest US Bancorp Callable Note Cont 6/28/2024 125,000.00 - 1,500.00 - 1,500.00 1/31/2024 Other Transactions Interest US Treasury Note 1,000,000.00 - 11,250.00 - 11,250.00 1/31/2024 Other Transactions Interest US Treasury Note 700,000.00 - 6,125.00 - 6,125.00 Changes of Market Values and Accrued Interests 42,266.73 Net Investment Transactions $ 120,015.26
Beginning Balance as of 12/31/2023 32,322,182.02
Ending Balance as of 1/31/2024 $ 32,442,197.28
Contact Us
(714) 431-7000
Account
CITY OF PICO RIVERA
Date
01/31/2024
Page
1 of 5
IntraFi Cash ServiceSM, or ICS®, Monthly Statement
The following information is a summary of activity in your account(s) for the month of January 2024 and the list of FDIC-insured institution(s) that hold your deposits as of the date indicated. These deposits have been placed by us, as your agent and custodian, in deposit accounts through IntraFi Cash Service. Funds in your deposit accounts at the FDIC-insured institutions at which your funds have been placed will be "deposits," as defined by federal law.
Summary of Accounts
Account ID Deposit Option Interest Rate Opening Balance Ending Balance *********354 Savings 4.25% $20,715,863.64 $28,605,490.96 TOTAL $20,715,863.64 $28,605,490.96
CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC.
Commercial Bank of California
19752 MacArthur Blvd.
Suite 100
Irvine, CA 92612
123517-01A
CITY OF PICO RIVERA
6615 PASSIONS BLVD
PICO RIVERA, CA 90660
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RETURN SERVICE REQUESTED
Enclosure 3
12c
DETAILED ACCOUNT OVERVIEW
Account ID: *********354
Account Title: CITY OF PICO RIVERA
Account Summary - Savings
Statement Period 1/1-1/31/2024 Average Daily Balance $24,789,730.75 Previous Period Ending Balance $20,715,863.64 Interest Rate at End of Statement Period 4.25% Total Program Deposits 9,500,009.04 Annual Percentage Yield Earned 4.34% Total Program Withdrawals (1,700,000.00) YTD Interest Paid 89,618.28 Interest Capitalized 89,618.28
Current Period Ending Balance $28,605,490.96
Account Transaction Detail
Date Activity Type Amount Balance
01/03/2024 Deposit $9.04 $20,715,872.68
01/04/2024 Deposit 3,500,000.00 24,215,872.68
01/18/2024 Withdrawal (1,700,000.00) 22,515,872.68
01/23/2024 Deposit 5,000,000.00 27,515,872.68
01/25/2024 Deposit 1,000,000.00 28,515,872.68
01/31/2024 Interest Capitalization 89,618.28 28,605,490.96 Summary of Balances as of January 31, 2024
FDIC-Insured Institution City/State FDIC Cert No. Balance Access Bank Omaha, NE 58727 $247,807.70
Alpine Bank Glenwood Springs, CO 23091 247,894.79
American Bank & Trust Company, Inc. Bowling Green, KY 35568 577.41 Ameris Bank Atlanta, GA 20504 247,894.79
Anderson Brothers Bank Mullins, SC 9923 247,894.79
AuburnBank Auburn, AL 35 0.07
Axos Bank San Diego, CA 35546 247,894.76
BOKF, National Association Tulsa, OK 4214 247,894.76
BTC Bank Bethany, MO 10618 247,807.65
Banc of California Los Angeles, CA 24045 247,894.80
Bank Iowa West Des Moines, IA 14521 247,865.68
Bank of Marin Novato, CA 32779 247,258.96
Bank of Washington Washington, MO 12627 247,877.78
BankUnited Miami Lakes, FL 58979 247,894.79
Bankers Trust Company Des Moines, IA 953 57.56
Bankwell Bank New Canaan, CT 57368 247,894.79
Benchmark Bank Plano, TX 19215 247,201.39
Byline Bank Chicago, IL 20624 247,878.92
CASS COMMERCIAL BANK Des Peres, MO 1068 247,894.72
CNB Bank Clearfield, PA 13876 247,802.85
CalPrivate Bank Coronado, CA 58291 247,125.18
Date
01/31/2024 Page
2 of 5
CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC.
DETAILED ACCOUNT OVERVIEW
Account ID: *********354
Account Title: CITY OF PICO RIVERA
Summary of Balances as of January 31, 2024
FDIC-Insured Institution City/State FDIC Cert No. Balance Capitol Bank Madison, WI 34074 247,894.79
Cedar Rapids Bank and Trust Company Cedar Rapids, IA 57244 247,201.39 Central Bank Houston, TX 17612 0.01
Citizens Bank of Philadelphia, MS Philadelphia, MS 12204 247,894.80 City National Bank of Florida Miami, FL 20234 247,287.75 Coastal Carolina National Bank Myrtle Beach, SC 58864 247,258.96 Coastal Community Bank Everett, WA 34403 247,894.80
CorTrust Bank National Association Mitchell, SD 6063 390.38 Customers Bank Malvern, PA 34444 247,201.39
D. L. Evans Bank Burley, ID 11666 247,894.79
Dime Community Bank Hauppauge, NY 6976 247,894.80
Dogwood State Bank Raleigh, NC 57095 247,232.08
EagleBank Silver Spring, MD 34742 247,894.80
Enterprise Bank & Trust Clayton, MO 27237 247,894.79
Esquire Bank, National Association Jericho, NY 58140 521.35 FFB Bank Fresno, CA 58090 247,258.95
Farmers State Bank Waterloo, IA 12855 247,258.96
First American Bank Artesia, NM 2240 247,894.72
First Bank & Trust Brookings, SD 3973 178.63
First Bank of Berne Berne, IN 9288 92.94
First Commerce Bank Lewisburg, TN 57465 247,894.72
First Financial Northwest Bank Renton, WA 29058 247,894.80 First Foundation Bank Irvine, CA 58647 247,894.80
First Horizon Bank MEMPHIS, TN 4977 247,894.80
First International Bank & Trust Watford City, ND 10248 693.39 First National Bank of Omaha Omaha, NE 5452 247,894.79
First State Community Bank Farmington, MO 17323 247,258.96 First-Citizens Bank & Trust Company Raleigh, NC 11063 247,648.35 FirstBank Nashville, TN 8663 247,894.80
Firstrust Savings Bank Conshohocken, PA 26647 247,894.79 Five Points Bank Grand Island, NE 20488 247,894.79
Five Star Bank Roseville, CA 35361 247,894.79
Flushing Bank Uniondale, NY 58564 247,894.74
Franklin Bank & Trust Company Franklin, KY 17937 247,233.16 Fulton Bank, N.A. Lancaster, PA 7551 247,894.80
German American Bank Jasper, IN 17393 247,807.65
Glens Falls Natl Bank and Trust Co Glens Falls, NY 7074 247,894.80 Grand Savings Bank Grove, OK 32084 247,894.78
Great Southern Bank Reeds Spring, MO 29546 247,172.61
Date
01/31/2024 Page
3 of 5
CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC. %RzH XBLq+q3]'I
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60912
DETAILED ACCOUNT OVERVIEW
Account ID: *********354
Account Title: CITY OF PICO RIVERA
Summary of Balances as of January 31, 2024
FDIC-Insured Institution City/State FDIC Cert No. Balance Hancock Whitney Bank Gulfport, MS 12441 247,894.80
Hanmi Bank Los Angeles, CA 24170 247,894.80
Heritage Bank of Commerce San Jose, CA 33905 247,894.79 INB Springfield, IL 3664 247,894.78
International Finance Bank Miami, FL 24823 247,894.79
Israel Discount Bank of New York New York City, NY 19977 247,894.80 Katahdin Trust Company Patten, ME 12874 651.53
Kennebunk Savings Bank Kennebunk, ME 13063 476.07
Landmark National Bank Manhattan, KS 5826 247,258.94
Leader Bank, National Association Arlington, MA 57134 247,894.80 Liberty National Bank Lawton, OK 11522 247,894.79
Live Oak Banking Company Wilmington, NC 58665 247,201.39 MVB Bank, Inc Fairmont, WV 34603 247,894.78
MainStreet Bank Fairfax, VA 57742 247,894.80
MapleMark Bank Dallas, TX 3182 247,172.61
Mascoma Bank Lebanon, NH 18013 247,804.51
Mercantile Bank Grand Rapids, MI 34598 247,185.53
Merchants Bank of Indiana Carmel, IN 8056 247,894.80
MidFirst Bank Oklahoma City, OK 4063 247,287.75
MidWestOne Bank Iowa City, IA 14843 247,894.80
Mission Valley Bank Sun Valley, CA 57101 491.00
NBT Bank, National Association Norwich, NY 7230 247,894.80 NexBank Dallas, TX 29209 247,894.79
OMB Bank Springfield, MO 8252 230.18
Old National Bank Evansville, IN 3832 247,894.80
OneLocal Bank Norwood, MA 26555 217.52
Origin Bank Ruston, LA 12614 247,894.80
Park National Bank Newark, OH 6653 247,894.80
Parke Bank Sewell, NJ 34888 247,289.57
Patriot Bank Stamford, CT 33928 490.09
Pinnacle Bank Nashville, TN 35583 247,894.80
Poppy Bank Santa Rosa, CA 57903 247,028.76
Popular Bank New York, NY 34967 247,894.80
Raymond James Bank St. Petersburg, FL 33893 247,894.80
Republic Bank & Trust Company Louisville, KY 23627 247,894.80 S&T Bank Indiana, PA 11124 587.29
SMBC MANUBANK Los Angeles, CA 18618 247,894.79
Salem Five Cents Savings Bank Salem, MA 23296 247,258.96 Sandy Spring Bank Olney, MD 4865 247,201.39
Date
01/31/2024 Page
4 of 5
CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC.
DETAILED ACCOUNT OVERVIEW
Account ID: *********354
Account Title: CITY OF PICO RIVERA
Summary of Balances as of January 31, 2024
FDIC-Insured Institution City/State FDIC Cert No. Balance Santa Cruz County Bank Watsonville, CA 57591 247,894.77 Sauk Valley Bank & Trust Company Sterling, IL 35131 247,146.67 Shore United Bank, N.A. Easton, MD 4832 247,894.74
SmartBank Pigeon Forge, TN 58463 247,201.39
South State Bank, N.A. Winter Haven, FL 33555 247,894.80 SouthPoint Bank Birmingham, AL 58088 247,201.39
Southside Bank Tyler, TX 18297 67.50
Synovus Bank Columbus, GA 873 247,894.80
T Bank, National Association Dallas, TX 57703 216.10
TBK Bank, SSB Dallas, TX 23498 247,894.79
Texas Bank Brownwood, TX 19559 247,894.74
Texas Bank and Trust Company Longview, TX 17842 247,894.79 The American National Bank of Texas Terrell, TX 23474 247,894.80 The Bank of Tampa Tampa, FL 21031 247,894.79
The Central Trust Bank Jefferson City, MO 12633 247,894.73 The Citizens Bank Batesville, AR 17211 115.10
The First National Bank of McGregor Mcgregor, TX 3330 247,801.29 The Huntington National Bank Columbus, OH 6560 247,258.96 The Park Bank Madison, WI 19608 247,764.76
The Washington Trust Company of Westerly Westerly, RI 23623 247,894.80 Third Coast Bank, SSB Humble, TX 58716 247,894.72
TowneBank Portsmouth, VA 35095 247,894.80
Traditions Bank York, PA 57377 247,201.39
Tri-County Bank Brown City, MI 977 28.78
Truist Bank Charlotte, NC 9846 247,894.80
U.S. Bank National Association Cincinnati, OH 6548 247,894.78 Union Bank & Trust Lincoln, NE 13421 111,549.77
United Bank Fairfax, VA 22858 247,894.80
United Community Bank Blairsville, GA 16889 247,894.79
Valley National Bank Wayne, NJ 9396 247,894.80
VeraBank Henderson, TX 3250 247,894.74
Veritex Community Bank Dallas, TX 57665 247,894.78
Waterford Bank, N.A. Toledo, OH 58433 247,230.17
WestStar Bank El Paso, TX 32941 247,894.74
Western Alliance Bank Phoenix, AZ 57512 247,894.80
Winter Park National Bank Winter Park, FL 59105 247,807.65 Zions Bancorporation, N. A. Salt Lake City, UT 2270 247,894.80 Date
01/31/2024 Page
5 of 5
CONTAINS CONFIDENTIAL INFORMATION IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC. %RzL XBLq+q3]'I
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60912
To: Mayor and City Council
From: City Manager
Meeting Date: February 27, 2024
Subject: VEHICLE REPLACEMENT – PURCHASE OF TWO (2) 2024 TOYOTA RAV4 VEHICLES FOR THE PUBLIC WORKS
DEPARTMENT
Recommendation:
1. Authorize the purchase of two (2) 2024 Toyota RAV4 LE, Front Wheel Drive, 8- speed automatic transmission, in the aggregate amount of $66,685 from Toyota of Whittier; and
2. Authorize the City Manager to execute all documents related to the purchase of the recommended vehicles.
Fiscal Impact:
The Fiscal Year (FY) 2023-24 Budget includes approximately $195,000 available funds between Fund 170 (Equipment Replacement Fund) Account No. 170.40.4030- 57300(Furniture & Equipment) and Fund 550 (Water Authority Fund) Account No. 550.40.4920-57300 (Furniture & Equipment) for the requested $66,685 purchase of the two vehicles for the Public Works Department. No additional appropriations are required at this time.
Background:
At the September 22, 2022, Council meeting, Council authorized the purchase of eight (8) Ford F-150 2-wheel drive regular cab pick-up trucks by way of the National Cooperative Purchasing Alliance (NCPA). Unfortunately, due to supply chain issues, NCPA notified staff that this pending order will not be fulfilled. Given this information, the agreement and purchase order with NCPA was terminated. At the September 26, 2023, City Council meeting, City Council authorized the purchase of six (6) Ford F-250 pickup trucks from Rush Truck Centers instead. Additionally, in January 2024, staff was able to purchase one (1) Ford F-150 from Reeves Ford via a purchase order. This still leaves one (1) vehicle short of the original eight (8) vehicles. 13 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2023 VEHICLE REPLACEMENT- PURCHASE OF TWO (2) 2024 TOYOTA RAV4 VEHICLES
FOR THE PUBLIC WORKS DEPARTMENT
Discussion:
Finding a Ford F-150 pickup truck has been difficult due to supply shortages and low inventory from Ford dealers. Staff has explored several alternatives to ensure staff is properly equipped with the vehicles needed. There are two vehicles needing immediate replacement:
1. A 2016 Ford F-150 with 160,000 miles (Unit No. 291) assigned to the Water Division needs replacement due to the age and mileage of the vehicle. This is the last vehicle to be replaced from the original list of eight (8). This vehicle is utilized by the customer service representative, who responds to all reports and concerns from the residents regarding water-related usage, water leaks, water meter issues, and on-and-off services.
2. A 2006 Chevy C3500 with 125,000 miles (Unit No. 246), assigned to the Streets Division is currently inoperable due to a blown engine. The Streets Maintenance Division uses Unit No. 246 to spray herbicides and control weed growth on medians, parkways, and city-owned facilities. Due to the extensive repairs needed and associated costs, staff recommends replacing this vehicle.
Due to the difficulties encountered by Public Works staff in procuring heavy duty vehicles, staff recommends repurposing two (2) pickup trucks currently assigned to our Public Works Superintendent and Utilities Superintendent. These two supervisory staff will still need vehicles, but do not require heavy duty vehicles. Instead, staff recommends purchasing 2024 Toyota RAV4’s for the supervisory staff noted above. Below are two tables describing staff’s approach for replacing these vehicles with existing, yet newer vehicles.
Table 1 – Summary of Vehicle Repurposing from Supervisory Staff to Staff Table 2 – Summary of Vehicle Repurposing/Proposed Vehicles – Supervisory Staff Unit No. Mileage Yr. / Make /
Model
Repurposed
Unit No.
Yr. / Make /
Model
Mileage
246 125,000 2006 Chevy
C3500
249 2019 Ford
F350 Super
Duty
7,550
291 160,000 2016 Ford
F150
286 2017 Ford
F150
19,000
Unit No. Yr. / Make / Model Proposed Vehicle Replacement 249 2019 Ford F350 Super Duty 2024 Toyota RAV4
286 2017 Ford F150 2024 Toyota RAV4
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2023 VEHICLE REPLACEMENT- PURCHASE OF TWO (2) 2024 TOYOTA RAV4 VEHICLES
FOR THE PUBLIC WORKS DEPARTMENT
Vehicle Unit No. 249, assigned to the Public Works Superintendent, is a 2019 Ford F-350 Super Duty with 7,550 miles. The Utilities Superintendent’s vehicle, Unit No. 286, is a 2017 Ford F150 with 19,000 miles.
The Public Works Maintenance Superintendent oversees the maintenance of streets, medians, and alleys and addresses public requests and construction projects. The Water Division Superintendent is responsible for handling resident service calls, inspecting water plants and construction projects, addressing reports of water leaks, and responding to residents’ concerns about water quality. The Superintendents are provided with City assigned vehicles during working hours to carry out their duties.
Staff plans on exchanging Vehicle Unit No. 246 (125,000 miles) with Vehicle Unit No. 249 (7,550 miles) and Vehicle Unit No. 291 (160,000 miles) with Vehicle Unit No. 286 (19,000 miles) since these vehicles are similar to the old units, better suited for maintenance duties, and have more years of service left. The repurposed vehicles are of similar model (Ford F-150 and Ford F-350) to the vehicle model which it is replacing.
To replace Vehicle Unit Nos. 249 and 286, staff recommends purchasing two (2) 2024 Toyota RAV4 vehicles to replace the Superintendents’ vehicles. Since the Superintendents only report to job sites and do not require specialized vehicle specifications to haul equipment, the proposed Toyota RAV4 fulfills the needs of the superintendent's duties.
At the November 14, 2023 Council meeting, City Council authorized the purchase of three (3) Toyota Rav4 vehicles for Parking Enforcement purposes. Toyota of Whittier was contacted by staff, and they are willing to honor their price from November 2023 ($33,342 per vehicle) for the purchase of two (2) additional Toyota Rav4 vehicles. It is recommended that the Toyota Rav4 vehicles be assigned to both Superintendents, as this vehicle size is better suited for their operational needs.
Per the Pico Rivera Municipal Code (PRMC) 3.20.030B and 3.20.080B, the City can procure through Sole Source when only one (1) vendor can obtain a commodity or equipment. Toyota of Whittier was the only local dealership with the available inventory to deliver two (2) 2024 RAV4 vehicles within the desired specifications and delivery date.
The recommended vehicle purchases will avoid operational interruptions and ensure that staff are properly equipped with a safe vehicle to continue providing efficient and effective services.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2023 VEHICLE REPLACEMENT- PURCHASE OF TWO (2) 2024 TOYOTA RAV4 VEHICLES
FOR THE PUBLIC WORKS DEPARTMENT
Conclusion:
Staff recommends that the City Council authorize the purchase of two (2) 2024 Toyota RAV4 vehicles from Toyota of Whitter for the amount not-to-exceed $66,685 and authorize the City Manager to execute all related documents for the purchase of both vehicles.
Steve Carmona
SC:NN:JG:np
Enclosure: 1) Toyota of Whitter Quote
Toyota of Whittier
14577 East Whittier Blvd.
Whittier CA 90605
562-698-2591
2024 RAV4
RAV4 LE
Model: 2024 RAV4 LE 2.5L 4-cyl. engine AT FWD 4430C
VIN: 2T3H1RFV5RC07D404
Stock: N/A
Engine: 2.5-Liter 4-Cyl
Transmission: Direct Shift 8-speed EXTERIOR
Ice Cap
INTERIOR
Black Fabric
PRICE
Base MSRP * $28,675.00
Factory Installed Packages &
Accessories
$90.00
Dealer Installed Packages &
Accessories
$1,990.00
Port Installed Packages & Accessories $743.00
Delivery Processing and Handling $1,350.00
Total Advertised Price $32,848.00
FUEL ECONOMY
30MPG 27MPG 35MPG
Combined City/Hwy City Highway
INSTALLED PACKAGES & ACCESSORIES
50 State Emissions FIO $0.00
Rear cargo area cover FIO $90.00
Door Edge Guards
Help prevent door edge dings and chipped paint with this protective finishing touch. • Thermoplastic-coated stainless steel is precisely color matched to the exterior paint • Compression-fitted to door edge contours
• Blend seamlessly to complement exterior styling.
PIO $155.00
Mudguards
Help protect your paint finish from road debris and the damage it causes. • Designed to integrate with RAV4 exterior styling
• Set includes four mudguards.
PIO $150.00
All-Weather Liner Package
All-Weather Liner Package includes:.
All-Weather Floor Liners
Cargo Liner
PIO $309.00
Blackout Emblem Overlays for RAV4 Gas
Molded from tough and durable black ABS plastic, blackout emblem overlays are engineered to precisely fit over existing badge, making it easy to customize in minutes.
Designed to fit permanently over existing chrome badging •Easy to install-simply remove tape liner and apply over clean badges PIO $129.00
Enclosure 1
13a
Clear Guard Door Edge Guards
Door edge guards work by lining or wrapping around the edges that tend to accidentally hit hard surfaces when vehicle doors are opened without regard to nearby trees, concrete walls, or even other cars and trucks.
DIO $495.00
ELO-GPS Theft Protection
Elo GPS gives you real-time location information nationwide using any PC, tablet or cell phone. Have peace of mind that Elo GPS protects you from theft and assists with vehicle recovery if it is lost or stolen. Just call the police to file a report, then call our hotline and we’ll take it from there. Be alerted to your vehicle’s location, battery levels, check engine lights, and maintenance and service requirements with simple notifications so you’ll never be caught off guard again and can worry about the things in life that really matter.
DIO $1,495.00
Total Optional Equipment $2,823.00
Vehicle Base Model $28,675.00
Delivery Processing and Handling $1,350.00
FEATURES
Mechanical & Performance
Tow Prep Equipment: 100-amp alternator
Brakes: Active Cornering Assist (ACA)
Engine: 2.5-Liter Dynamic Force 4-Cylinder DOHC D-4S Injection with Dual Variable Valve Timing with intelligence (VVT-i), with SPORT, Eco, NORMAL Modes, 203 hp @ 6,600 rpm; 184 lb.-ft. @ 5,000 rpm
Transmission: Direct Shift-8-speed Electronically Controlled automatic Transmission with intelligence (ECT-i) and sequential shift mode
Suspension: Independent MacPherson strut front suspension with stabilizer bar; multi-link rear suspension with stabilizer bar Engine: Induction system: (D-4S) Dual-Injection (Direct-Injection and Port-injection) EFI with Electronic Throttle Control System with intelligence (ETCS-i)
Drivetrain: Front-Wheel Drive (FWD)
Body Construction: Reinforced unitized steel body
Engine: 2.5-Liter 4-Cyl
Weight Rating: 4610 lbs
Engine: Compression ratio: 13.0:1
Steering: Electric Power Steering (EPS); power-assisted rack-andpinion Tow Prep Equipment: Automatic transmission fluid cooler Engine: Emission rating: Ultra Low Emission Vehicle (ULEV) Brakes: Power-assisted ventilated 12.0-in. front disc brakes; ventilated 11.1-in. rear disc brakes
Capability: Hill Start Assist Control (HAC)
Drive Modes: SPORT, Eco, and NORMAL drive modes
• Front-Wheel Drive (FWD)
Direct Shift 8-speed
Steering
Steering ratio 14.4:1
Turning circle diameter, curb-to-curb (ft.) 36.1
Steering wheel turns (lock-to-lock) 2.76
Exterior
17-in. steel wheels with silver 6-spoke wheel covers
Color-keyed upper front bumper, and black lower front bumper, overfenders and rear bumper
Aerodynamic underbody panels with vortex generators, front and rear wheel spats, and integrated rear spoiler
Intermittent windshield wipers and intermittent rear window wiper Black power outside mirrors with folding feature
Color-keyed outside door handles
Color-keyed roof-mounted shark-fin antenna
LED Daytime Running Lights (DRL)
Privacy glass on all rear side, quarter and liftgate windows Dual chrome-tipped exhaust
Black hexagon-patterned bar front grille
LED projector low- and high-beam headlights with chrome accent, Automatic High Beams (AHB) and auto on/off
LED taillights
Exterior Dimensions
Wheelbase 105.9
Overall length/width 180.9/73.0
Overall height with/without antenna 67.0
Track (front/rear) 63.0/63.7
2024 TOYOTA RAV4 LE - 2T3H1RFV5RC07D404
Interior
Rear liftgate window defogger
LED front-seat reading lights, dome light and cargo area light Passenger-side lockable glove compartment
Center console with covered storage compartment, two cup holders, drive mode, Electric Parking Brake (EPB) and automatic Brake Hold controls, and front storage tray
Sun visors with illuminated vanity mirrors
Day/night rearview mirror
Three USB ports— USB media port in front storage tray and two additional charge ports in front center console
Power windows with auto up/down and jam protection in all positions
Black in-dash storage trays
Soft-touch dash and armrests, with stitched dash accents Climate control system with dust and pollen filter and rear-seat vents
Shift lever with sequential mode
Urethane tilt/telescopic 3-spoke steering wheel with controls for audio, Multi-Information Display (MID), Bluetooth® hands-free phone, voice-command, Dynamic Radar Cruise Control (DRCC), Lane Departure Alert (LDA) and Lane Trace Assist (LTA)
Black interior door handles
Fabric-trimmed seats; 6-way adjustable front driver's seat; 4-way adjustable front passenger seat with seatback pocket
Height-adjustable rear cargo area deck board
2 front and 2 rear cup holders; 2 front and 2 rear bottle holders Front-door storage pockets with bottle holders
Black carpet flooring with driver-side footrest
Electric Parking Brake (EPB) with Brake Hold
One 12V/120W auxiliary power outlet in front instrument panel storage tray and one 12V/120W auxiliary power outlet in second row
60/40 split reclining fold-flat rear seat with center armrest and cup holders
Ash Gray fabric-trimmed headliner
Remote keyless entry system with lock, unlock, panic functions and remote illuminated entry
Digital speedometer and instrumentation with analog tachometer, coolant temperature, and fuel gauges; 7-in. digital MultiInformation Display (MID) with customizable settings, odometer, tripmeters, clock, outside temperature, rear passenger seatbelt indicators, fuel economy information, trip timer, shift-position and scheduled maintenance indicators, and warning messages
Power door locks with shift-linked automatic lock/unlock feature Turn signal stalk with headlight controls and one-touch 3-blink lane change turn signals
Overhead console with maplights, sunglasses storage and Safety Connect® button
Audio Multimedia
8-in. Toyota Audio Multimedia, six speakers, with wireless Apple CarPlay® & Android Auto™ compatible, SiriusXM® with 3-month Platinum Plan trial subscription. See toyota.com/audio-multimedia for details. S
ToyotaCare
No cost maintenance plan $0 (No Cost) 24-hour Roadside Assistance $0 (No Cost) Safety & Convenience
Trailer-Sway Control (TSC)
Hill Start Assist Control (HAC)
Adjustable front shoulder anchors
LATCH (Lower Anchors and Tethers for Children) includes lower anchors on outboard rear seats and tether anchors on all rear seats
Front and rear side-impact door beams
Toyota Safety Sense™ 2.5 — Pre-Collision System w/Pedestrian Detection , Full-Speed Range Dynamic Radar Cruise Control , Lane Departure Alert w/Steering Assist , Lane Tracing Assist , Automatic High Beams , Road Sign Assist
Tire Pressure Monitor System (TPMS) with direct pressure readout and individual tire location alert
Anti-theft system with engine immobilizer
3-point seatbelts for all seating positions; driver-side Emergency Locking Retractor (ELR) and Automatic/Emergency Locking Retractor (ALR/ELR) on all passenger seatbelts
Front and outboard second-row seatbelts with seatbelt
pretensioners with force limiters
Star Safety System™ — includes Enhanced Vehicle Stability Control (VSC), Traction Control (TRAC), Anti-lock Brake System (ABS), Electronic Brake-force Distribution (EBD), Brake Assist (BA) and Smart Stop Technology® (SST)
Child-protector rear door locks and power window lockout control Eight airbags — includes driver and front passenger Advanced Airbag System, driver and front passenger seat-mounted side airbags, driver's knee airbag, front passenger seat cushion airbag, and front and rear side curtain airbags
Backup camera with dynamic gridlines
Connected Services
Remote Connect — remotely interact with your vehicle through the Toyota app via your smartwatch. Depending on grade, allows you to lock/unlock doors, start and stop the vehicle, locate your Drive Connect — includes Cloud Navigation with Google Points of Interest (POI) data, Intelligent Assistant with Hey, Toyota, and Destination Assist. Subscription required after trial. 4G network 2024 TOYOTA RAV4 LE - 2T3H1RFV5RC07D404
last parked location, check vehicle status and monitor guest drivers. Subscription required after trial. 4G network dependent.
Subscription required, select features only
Safety Connect® — includes Emergency Assistance Button, Enhanced Roadside Assistance, Automatic Collision Notification, and Stolen Vehicle Locator. Subscription required. 4G network dependent. Up to 10-year trial subscription
Wi-Fi Connect — includes AT&T Wi-Fi hotspot and Integrated Streaming (Apple Music® and Amazon Music ) compatibility. 1- month trial subscription for music services. Subscription required after trial. 4G network dependent. Up to 30-day/3 GB trial subscription
dependent. Capable, subscription required
Service Connect — receive personalized maintenance updates and vehicle health reports. Subscription required after trial. 4G network dependent. Up to 10-year trial subscription
*
ToyotaCare, which covers normal factory scheduled maintenance for 2 years or 25,000 miles, whichever comes first, is included as part of the sales price of the vehicle for qualifying buyers. See participating dealer for eligibility and coverage details.
Disclaimer: This document is only representative of some of the information contained on an actual window sticker, and is not meant to replace or substitute for the actual window sticker on the vehicle. Please see your retailer for further information. 2024 TOYOTA RAV4 LE - 2T3H1RFV5RC07D404
Toyota of Whittier
14577 East Whittier Blvd.
Whittier CA 90605
562-698-2591
2024 RAV4
RAV4 LE
Model: 2024 RAV4 LE 2.5L 4-cyl. engine AT FWD 4430C
VIN: 2T3H1RFV8RC267274
Stock: 24976
Engine: 2.5-Liter 4-Cyl
Transmission: Direct Shift 8-speed EXTERIOR
Ice Cap
INTERIOR
Black Fabric
PRICE
Base MSRP * $28,675.00
Dealer Installed Packages &
Accessories
$1,495.00
Port Installed Packages & Accessories $872.00
Delivery Processing and Handling $1,350.00
Total Advertised Price $32,392.00
FUEL ECONOMY
30MPG 27MPG 35MPG
Combined City/Hwy City Highway
INSTALLED PACKAGES & ACCESSORIES
50 State Emissions FIO $0.00
Door Edge Guards
Help prevent door edge dings and chipped paint with this protective finishing touch. • Thermoplastic-coated stainless steel is precisely color matched to the exterior paint • Compression-fitted to door edge contours
• Blend seamlessly to complement exterior styling.
PIO $155.00
Mudguards
Help protect your paint finish from road debris and the damage it causes. • Designed to integrate with RAV4 exterior styling
• Set includes four mudguards.
PIO $150.00
Dual USB Power Port (Rear Only)
Power ports provide additional capability to your vehicle giving you access and power to charge your multimedia USB devices.
Includes:
•Two rear USB ports
•Innovative smart USB connector, either way is up
•Two fast charging 2.4A power ports
•Blue LED power status light shines through flip cap.
PIO $129.00
All-Weather Liner Package
All-Weather Liner Package includes:.
All-Weather Floor Liners
Cargo Liner
PIO $309.00
Blackout Emblem Overlays for RAV4 Gas
Molded from tough and durable black ABS plastic, blackout emblem overlays are engineered to precisely fit over existing badge, making it easy to customize in minutes.
Designed to fit permanently over existing chrome badging •Easy to install-simply remove tape liner and apply over clean badges PIO $129.00
ELO-GPS Theft Protection
Elo GPS gives you real-time location information nationwide using any PC, tablet or cell phone. Have peace of mind that Elo GPS protects you from theft and assists with vehicle recovery if it is lost or stolen. Just call the police to file a report, then call our hotline and we’ll take it from there. Be alerted to your vehicle’s location, battery levels, check engine lights, and maintenance and service requirements with simple notifications so you’ll never be caught off guard again and can worry about the things in life that really matter.
DIO $1,495.00
Total Optional Equipment $2,367.00
Vehicle Base Model $28,675.00
Delivery Processing and Handling $1,350.00
FEATURES
Mechanical & Performance
Tow Prep Equipment: 100-amp alternator
Brakes: Active Cornering Assist (ACA)
Engine: 2.5-Liter Dynamic Force 4-Cylinder DOHC D-4S Injection with Dual Variable Valve Timing with intelligence (VVT-i), with SPORT, Eco, NORMAL Modes, 203 hp @ 6,600 rpm; 184 lb.-ft. @ 5,000 rpm
Transmission: Direct Shift-8-speed Electronically Controlled automatic Transmission with intelligence (ECT-i) and sequential shift mode
Suspension: Independent MacPherson strut front suspension with stabilizer bar; multi-link rear suspension with stabilizer bar Engine: Induction system: (D-4S) Dual-Injection (Direct-Injection and Port-injection) EFI with Electronic Throttle Control System with intelligence (ETCS-i)
Drivetrain: Front-Wheel Drive (FWD)
Body Construction: Reinforced unitized steel body
Engine: 2.5-Liter 4-Cyl
Weight Rating: 4610 lbs
Engine: Compression ratio: 13.0:1
Steering: Electric Power Steering (EPS); power-assisted rack-andpinion Tow Prep Equipment: Automatic transmission fluid cooler Engine: Emission rating: Ultra Low Emission Vehicle (ULEV) Brakes: Power-assisted ventilated 12.0-in. front disc brakes; ventilated 11.1-in. rear disc brakes
Capability: Hill Start Assist Control (HAC)
Drive Modes: SPORT, Eco, and NORMAL drive modes
• Front-Wheel Drive (FWD)
Direct Shift 8-speed
Steering
Steering ratio 14.4:1
Turning circle diameter, curb-to-curb (ft.) 36.1
Steering wheel turns (lock-to-lock) 2.76
Exterior
17-in. steel wheels with silver 6-spoke wheel covers
Color-keyed upper front bumper, and black lower front bumper, overfenders and rear bumper
Aerodynamic underbody panels with vortex generators, front and rear wheel spats, and integrated rear spoiler
Intermittent windshield wipers and intermittent rear window wiper Black power outside mirrors with folding feature
Color-keyed outside door handles
Color-keyed roof-mounted shark-fin antenna
LED Daytime Running Lights (DRL)
Privacy glass on all rear side, quarter and liftgate windows Dual chrome-tipped exhaust
Black hexagon-patterned bar front grille
LED projector low- and high-beam headlights with chrome accent, Automatic High Beams (AHB) and auto on/off
LED taillights
Exterior Dimensions
Wheelbase 105.9 Overall height with/without antenna 67.0 2024 TOYOTA RAV4 LE - 2T3H1RFV8RC267274
Overall length/width 180.9/73.0 Track (front/rear) 63.0/63.7 Interior
Rear liftgate window defogger
LED front-seat reading lights, dome light and cargo area light Passenger-side lockable glove compartment
Center console with covered storage compartment, two cup holders, drive mode, Electric Parking Brake (EPB) and automatic Brake Hold controls, and front storage tray
Sun visors with illuminated vanity mirrors
Day/night rearview mirror
Three USB ports— USB media port in front storage tray and two additional charge ports in front center console
Power windows with auto up/down and jam protection in all positions
Black in-dash storage trays
Soft-touch dash and armrests, with stitched dash accents Climate control system with dust and pollen filter and rear-seat vents
Shift lever with sequential mode
Urethane tilt/telescopic 3-spoke steering wheel with controls for audio, Multi-Information Display (MID), Bluetooth® hands-free phone, voice-command, Dynamic Radar Cruise Control (DRCC), Lane Departure Alert (LDA) and Lane Trace Assist (LTA)
Black interior door handles
Fabric-trimmed seats; 6-way adjustable front driver's seat; 4-way adjustable front passenger seat with seatback pocket
Height-adjustable rear cargo area deck board
2 front and 2 rear cup holders; 2 front and 2 rear bottle holders Front-door storage pockets with bottle holders
Black carpet flooring with driver-side footrest
Electric Parking Brake (EPB) with Brake Hold
One 12V/120W auxiliary power outlet in front instrument panel storage tray and one 12V/120W auxiliary power outlet in second row 60/40 split reclining fold-flat rear seat with center armrest and cup holders
Ash Gray fabric-trimmed headliner
Remote keyless entry system with lock, unlock, panic functions and remote illuminated entry
Digital speedometer and instrumentation with analog tachometer, coolant temperature, and fuel gauges; 7-in. digital MultiInformation Display (MID) with customizable settings, odometer, tripmeters, clock, outside temperature, rear passenger seatbelt indicators, fuel economy information, trip timer, shift-position and scheduled maintenance indicators, and warning messages
Power door locks with shift-linked automatic lock/unlock feature Turn signal stalk with headlight controls and one-touch 3-blink lane change turn signals
Overhead console with maplights, sunglasses storage and Safety Connect® button
Audio Multimedia
8-in. Toyota Audio Multimedia, six speakers, with wireless Apple CarPlay® & Android Auto™ compatible, SiriusXM® with 3-month Platinum Plan trial subscription. See toyota.com/audio-multimedia for details. S
ToyotaCare
No cost maintenance plan $0 (No Cost) 24-hour Roadside Assistance $0 (No Cost) Safety & Convenience
Trailer-Sway Control (TSC)
Hill Start Assist Control (HAC)
Adjustable front shoulder anchors
LATCH (Lower Anchors and Tethers for Children) includes lower anchors on outboard rear seats and tether anchors on all rear seats Front and rear side-impact door beams
Toyota Safety Sense™ 2.5 — Pre-Collision System w/Pedestrian Detection , Full-Speed Range Dynamic Radar Cruise Control , Lane Departure Alert w/Steering Assist , Lane Tracing Assist , Automatic High Beams , Road Sign Assist
Tire Pressure Monitor System (TPMS) with direct pressure readout and individual tire location alert
Anti-theft system with engine immobilizer
3-point seatbelts for all seating positions; driver-side Emergency Locking Retractor (ELR) and Automatic/Emergency Locking Retractor (ALR/ELR) on all passenger seatbelts
Front and outboard second-row seatbelts with seatbelt
pretensioners with force limiters
Star Safety System™ — includes Enhanced Vehicle Stability Control (VSC), Traction Control (TRAC), Anti-lock Brake System (ABS), Electronic Brake-force Distribution (EBD), Brake Assist (BA) and Smart Stop Technology® (SST)
Child-protector rear door locks and power window lockout control Eight airbags — includes driver and front passenger Advanced Airbag System, driver and front passenger seat-mounted side airbags, driver's knee airbag, front passenger seat cushion airbag, and front and rear side curtain airbags
Backup camera with dynamic gridlines
Connected Services
Remote Connect — remotely interact with your vehicle through the Toyota app via your smartwatch. Depending on grade, allows you to lock/unlock doors, start and stop the vehicle, locate your last Drive Connect — includes Cloud Navigation with Google Points of Interest (POI) data, Intelligent Assistant with Hey, Toyota, and Destination Assist. Subscription required after trial. 4G network 2024 TOYOTA RAV4 LE - 2T3H1RFV8RC267274
parked location, check vehicle status and monitor guest drivers.
Subscription required after trial. 4G network dependent.
Subscription required, select features only
Safety Connect® — includes Emergency Assistance Button, Enhanced Roadside Assistance, Automatic Collision Notification, and Stolen Vehicle Locator. Subscription required. 4G network dependent. Up to 10-year trial subscription
Wi-Fi Connect — includes AT&T Wi-Fi hotspot and Integrated Streaming (Apple Music® and Amazon Music ) compatibility. 1- month trial subscription for music services. Subscription required after trial. 4G network dependent. Up to 30-day/3 GB trial subscription
dependent. Capable, subscription required
Service Connect — receive personalized maintenance updates and vehicle health reports. Subscription required after trial. 4G network dependent. Up to 10-year trial subscription
*
ToyotaCare, which covers normal factory scheduled maintenance for 2 years or 25,000 miles, whichever comes first, is included as part of the sales price of the vehicle for qualifying buyers. See participating dealer for eligibility and coverage details.
Disclaimer: This document is only representative of some of the information contained on an actual window sticker, and is not meant to replace or substitute for the actual window sticker on the vehicle. Please see your retailer for further information. 2024 TOYOTA RAV4 LE - 2T3H1RFV8RC267274
To: Mayor and City Council
From: City Manager
Meeting Date: February 27, 2024
Subject: ANNUAL COMPREHENSIVE FINANCIAL REPORT,
FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL
YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Recommendation:
1. Receive and file the Annual Comprehensive Financial Report, fiscal year (FY) ending June 30, 2023;
2. Approve Budget Transfers that allocate the FY 2022-23 Unassigned General Fund Balance of $202,840, and;
3. Approve a General Fund allocating the remaining FY 2022-23 Unassigned General Fund Balance of $4,089,702 towards vehicle purchases, the Smith Park Turf Replacement, and Measure AB Revenue Replacement.
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, 2023.
The recommended budget transfers of $202,840 from the General Fund (GL Account No. 100.98.9800-56900) will reduce the negative balances for the Liability Claims Fund (GL Account No. 105.00.0000-47900), the Sewer Maintenance Fund (GL Account No. 225.00.0000-47900), the Federal Aid STPL45351 Fund (GL Account No. 638.00.0000- 47900), the Highway Bridget Program Fund (GL Account No. 661.00.0000-47900), and the Miscellaneous Federal Grant Fund (GL Account No. 698.00.0000-47900). The recommended funding allocations in the amount of $4,089,702 will provide critical needs identified by City staff.
Discussion:
The ACFR is prepared 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, 2023, these financial 14 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
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.
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. The 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 $35.2 million, from $339.5 million to $374.7 million. Citywide revenues totaled $125.3 million, an increase of $10.3 million over the prior year. Expenses were $90.1 million, an increase of $1.1 million over the prior year.
Reserves and Fund Balance Policy
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 the City Council to reassess budgeted service/personnel levels during economic downturns to ensure ongoing economic stability. The policies are reviewed annually to ensure they remain sufficient to weather a downturn in our economy and were most recently incorporated as part of the FY 2023-24 budget, which the City Council adopted on June 27, 2023.
Significant City Accomplishments and Initiatives
In FY 2022-23, the City has experienced challenges and success, and we take pride in showcasing these achievements. Our City is now better equipped to tackle the present and future challenges that confront local government and our community. The accomplishments throughout this fiscal year underscore our dedication to working collaboratively for the greater good of our community. These achievements, along with numerous others, underscore our unwavering commitment to implementing our CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
strategic priorities, fostering the City's economic well-being, and enhancing the quality of life for our residents 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
The City’s FY 2022-23 Accomplishments Report brochure is attached in its entirety to this report as Enclosure 2. The report comprises the City's Guiding Plan, Awards, and Recognition grouped according to strategic priorities and the plans and goals for the FY 2023-24.
The entire ACFR can be found on the City's website, with the prior year's financial statements to promote transparency. In addition, FY 2022-23 ACFR is attached in its entirety to this report as Enclosure 1.
General Fund Year-End Results
This report is designed to inform the City Council of the City's year-end financial positions and results of operations. FY 2022-23 General Fund revenues totaled $59.3 million for the year, compared to $50.2 in expenditures and transfers-in. The difference of $9.05 million is shown in Table 1. Later in this report, staff will provide recommendations for allocating this surplus.
Table 1 – General Fund Year-end Results
FY 2022-23 General Fund Results:
Operating Revenues 56,495,651 $
Sale of Capital Assets 928,625
Transfers In 1,847,348
Revenues & Transfers In Total 59,271,624 $
Operating Expenditures 47,845,207 $
Transfers Out - Others 2,378,608
Expenditures & Transfers Out Total 50,223,815 $
FY 2022-23 Results (Revenues Less Expenditures): 9,047,809 $ The positive result stems from greater revenues than budget and expenditures below budget due to the following major components:
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Revenue
In the ACFR, the Combined General Fund (CGF) comprises the following funds:
General Fund (GF Fund 100), General Liability Insurance Fund (Fund 105), Worker’s Compensation Claim Fund (Fund 106), Water Enterprise Fund (Fund 551), and Section 115 Pension Trust Fund (Fund 875).
For the fiscal year that concluded on June 30, 2023, the CGF revenues totaled $59.27 million, with the General Fund revenues accounting for $58.72 million, outperforming the Amended Budget estimates by approximately $5.3 million or 9%. The most substantial positive variances can be attributed to Sales Tax, Property Tax, Utility Users Tax, Business License, and All Other Revenue.
At the commencement of FY 2022-23, California's economic prospects faced challenges due to persistently high inflation, continuing interest rate hikes by the Federal Reserve, and further declines in the stock market. However, the economy has been safeguarded from recession by consistent household spending, a situation that stands out despite inflation surpassing Federal Reserve objectives and interest rates on loans and credit cards climbing. In California, the performance of sales tax has continued to exhibit growth.
Sales Tax revenues came in higher than adjusted budget estimates by $621 thousand. Year-end results exceeded estimates due to factors such as inflation, favorable consumer confidence, and the City's ongoing economic recovery in major sales tax-generating groups. The major sales tax generating groups include General Consumer Goods, Restaurants and Hotels, and Business and Industry. It is important to note that the attributed growth is largely due to the result of higher-priced goods and the continued rebounding from the impact of the pandemic a year ago.
Property Tax revenue came in higher than the budget estimates due to an increase in median home prices compared to the prior year. Continuing the trend from 2020, 2021 sales volume increased slightly from the prior year; the median price continued to increase due to low interest rates, high demand, and limited properties for sale, as reflected on the 2022/23 tax rolls. The median sale price of Pico Rivera detached single-family homes from January through October 2022 was $690,000, an increase of $80,000 (13.1%) from the median sale price in the same period for 2021.
Utility Users Tax (UUT) came in over the budget estimates due to increased usage and pricing of electric and natural gas billed charges. When comparing prices of Electricity per Kilowatt Hour (EKH) and Utility (piped) gas per term (UGT), the Bureau of Labor Statistics shows Los Angeles households are paying an average of 8% per EKH higher in 2023 than per EKH paid in 2022. The average cost of UGT in 2023 was 21% higher than in 2022.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Business License came in $1.8 million over the amended budget estimates, primarily due to Measure AB. In November 2022, the City voters overwhelmingly approved Measure AB to modernize the City’s outdated Business License fee structure and to provide equity for small businesses. In FY 2023-24, the City anticipates a further increase in Business License revenues as businesses renew their licenses according to the new fee structure throughout the year. Parks and Recreation came in over budgeted estimates primarily due to the expansion of recreation programs and contract class offerings in FY 2022-23.
The reopening of in-person programs and services has increased participation and revenue. Field and Facility Rentals, Special Events, Contract Programs, and Camps are the most notable increases.
License and Permits came in over the budgeted estimates primarily due to an increase in Building permits, Plumbing permits, Heating and Air Conditioning permits, Plan Check fees, Zoning and Planning fees, and Storm Drain (Los Angeles County Hazardous Waste Materials) revenue categories that continue to show favorable growth. It is important to note that certain fee hikes are associated with the rise in building and project valuations. Franchise Tax came in over the budgeted estimates due to an increase in the price and consumption of electricity and gas within the City compared to the prior fiscal year.
Transient Occupancy Tax (TOT), the hotel visitor tax, came in over the budgeted estimates and has been consistently on the rise, driven by an uptick in travel activity and a growing number of hotel/motel reservations, now reaching levels comparable to those before the pandemic.
All Other Revenues came in under the budgeted estimates, which include Fines and Forfeitures, Use of Money, Cost Reimbursement, and Intergovernmental Revenue. The most notable increases are primarily attributed to Sales of Property, Interest Income, and Cost Reimbursements. The one-time revenue for Sales of Property is for the sale of a vacated property site of $0.9 million.
Interest Income has risen compared to the previous year, which can be attributed to the favorable market yields and interest returns. The increase in Cost Reimbursements is attributed to the reimbursement receipts received from Federal and State Grants.
Table 2 on the following page shows revenues by category.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Table 2. General Fund Revenues by Category
Revenue Source
FY 22-23
ADOPTED
BUDGET
FY 22-23
AMENDED
BUDGET
FY 22-23
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER
(UNDER)
AMENDED
BUDGET
Sales Tax 24,482,589 $ 24,495,689 $ 25,116,980 $ 621,291 $ 2% Property Tax 13,044,410 13,044,410 13,569,293 524,883 4% Utility Users Tax 3,159,400 3,159,400 4,001,578 842,178 21% Franchise Tax 970,000 970,000 1,077,004 107,004 10%
Transient Occupancy Tax (TOT) 565,020 565,020 597,129 32,109 5% Business License Tax 1,459,062 1,459,062 3,270,015 1,810,953 55% Parks & Recreation Fees 445,211 445,211 595,679 150,468 25% Licenses & Permits 2,166,564 2,346,564 2,575,557 228,993 9% All Other Revenues* 3,715,872 4,828,577 6,071,696 1,243,119 20% OPERATING REVENUE 50,008,128 51,313,933 56,874,931 5,560,998 10% Transfers In - Others** 1,825,300 2,114,797 1,847,348 (267,449) (14%) TOTAL - GENERAL FUND REVENUE 51,833,428 $ 53,428,730 $ 58,722,279 $ 5,293,549 $ 9% *Includes Fines & Forfeitures, Charges for Services, Use of Money, Other Revenue, and Intergovernmental Revenue **Includes Transfer In (Gas Tax)
Table 3 below shows other Combined General Fund Revenues under the General Liability Insurance Fund, the Water Enterprise Fund, and the Pension Section 115 Trust Fund.
Table 3. Total Combined General Fund Revenues
General Fund (Fund 100) $ 58,722,297
General Liability Insurance Fund (Fund 105) 397,989
Water Enterprise (Fund 551) 36,279
Section 115 Pension Trust Fund (Fund 875) 115,059
Total General Fund Revenues FY 2022-23: $ 59,271,624
Expenditure
At the end of June, the General Fund expenditure totaled $49.47 million, including operating expenditures of $46.02 million, which were $8.33 million, or 15% lower than what was initially estimated in the Amended Budget. At the end of the fiscal year, most departments had expenditures that were below their budget estimates. Table 4 shows the General Fund Expenditures by major category. The major variances are elaborated upon in Table 5.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Table 4. General Fund Operating Expenditure Summary
GENERAL FUND OPERATING EXPENDITURE SUMMARY
FY 22-23
ADOPTED
BUDGET
FY 22-23
AMENDED
BUDGET
FY 22-23
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER/
(UNDER)
AMENDED
BUDGET
TOTAL Salaries & Benefits 20,577,367 20,481,328 18,717,533 (1,763,795) $ (9%) TOTAL Maintenance & Operations 29,043,366 33,872,669 27,306,945 (6,565,724) (19%) TOTAL GENERAL FUND OPERATING EXPENDITURE SUMMARY $ 54,353,997 49,620,733 46,024,477 (8,329,520) $ (15%) Salaries and Benefits expenditures came in lower than budgeted by $1.76 million, primarily due to an average of eleven vacancies in full-time positions throughout the year.
Maintenance and Operations came in lower than budgeted by $6.57 million, of which $2.32 million were identified as projects or services continuing into the next fiscal year. As such, they have been properly included in the YearEnd Open Purchase Order report that spans all departments. Other variances were mainly due to ongoing appropriations for programs and multiyear projects that were in progress as of June 30, 2023. These Council driven projects require funding over multiple fiscal years. Examples include the CED Strategic Plans and Studies, upgrades to the City Hall Council Chamber and Media Division System, the Automated License Plate Reader (ALPR) program by Flock Safety, community outreach enhancements, etc. [This space intentionally left blank]
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Table 5. General Fund Expenditures by Department
DEPARTMENT / EXPENDITURE CATEGORY
FY 22-23
ADOPTED
BUDGET
FY 22-23
AMENDED
BUDGET
FY 22-23
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER/
(UNDER)
AMENDED
BUDGET
ADMINISTRATION
Salaries & Benefits 1,597,743 $ 1,622,835 $ 1,788,102 $ $ 10% 165,267 Maintenance & Operations 621,675 1,608,318 780,873 (51%) (827,445) TOTAL ADMINISTRATION 2,219,418 3,231,153 2,568,974 (662,179) (20%) PUBLIC SAFETY ***
Law Enforcement - Los Angeles County Sheriff 12,854,647 13,398,518 12,651,645 (746,873) (6%) TOTAL PUBLIC SAFETY 12,854,647 13,398,518 12,651,645 (746,873) (6%) COMMUNITY & ECONOMIC DEVELOPMENT ****
Salaries & Benefits 3,870,328 3,848,041 3,448,790 (10%) (399,251) Maintenance & Operations 3,642,837 4,424,456 1,474,937 (67%) (2,949,519) TOTAL COMMUNITY & ECONOMIC DEVELOPMENT 7,513,165 8,272,497 4,923,727 (3,348,770) (40%)
ADMINISTRATIVE SERVICES
Salaries & Benefits 2,126,529 1,957,478 1,690,146 (14%) (267,332) Maintenance & Operations 805,997 1,331,282 1,015,434 (24%) (315,848) TOTAL ADMINISTRATIVE SERVICES 2,932,526 3,288,760 2,705,581 (583,179) (18%) Non-Departmental
Salaries & Benefits 1,914,700 1,914,700 1,832,545 (4%) (82,155) Maintenance & Operations 4,892,690 4,851,239 4,415,203 (9%) (436,036) TOTAL NON-DEPARTMENTAL 6,807,390 6,765,939 6,247,749 (518,190) (8%)
HUMAN RESOURCES
Salaries & Benefits 670,160 634,795 657,857 4% 23,062
Maintenance & Operations 386,632 435,632 336,579 (23%) (99,053) TOTAL HUMAN RESOURCES 1,056,792 1,070,427 994,436 (75,991) (7%)
PARKS & RECREATION
Salaries & Benefits 5,131,020 5,127,327 4,494,252 (12%) (633,075) Maintenance & Operations 1,158,541 1,830,496 1,386,432 (24%) (444,064) TOTAL PARKS & RECREATION 6,289,561 6,957,823 5,880,684 (1,077,139) (15%)
PUBLIC WORKS
Salaries & Benefits 5,266,887 5,376,152 4,805,841 (11%) (570,311) Maintenance & Operations 4,680,347 5,992,728 5,245,841 (12%) (746,887) TOTAL PUBIC WORKS 9,947,234 11,368,880 10,051,682 (1,317,198) (12%) TOTAL GENERAL FUND OPERATING EXPENDITURES 49,620,733 54,353,997 46,024,477 (8,329,520) (15%) Transfers Out - Operating 1,065,000 1,065,000 1,065,000 0% - Transfers Out - Non-Operating 2,378,609 1,147,695 2,378,609 0% -
TOTAL GENERAL FUND EXPENDITURES &
TRANSFERS OUT 51,833,428 $ 57,797,606 $ 49,468,086 $ (8,329,520) $ (14%) Table 6 below shows Other General Fund expenditures under the Liability Claims, Workers’ Compensation Claims Funds, and our Section 115 Pension Trust Fund.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Table 6. Total General Fund Expenditures
Discussion of departments with significant variances from the amended budget are as follows:
Administration year-end expenditures came in 20% 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 and the Whittier Narrows Dam projects that will continue into FY 2023-24.
Public Safety year-end expenditures came in 6% below budget primarily due to the carry-over encumbrance from the prior year for the ongoing Automated License Plate Reader (ALPR) program by Flock Safety, which was approved in FY 2021-22 and continued 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 18% lower than the amended budget due to vacancy salary savings and lower IT software and license expenditures. The ongoing Professional Services expenditures for some Software Licensing, Business License Tax, and Tobacco Retail License in the Administrative Services and IT Budget came in lower as the projects and programs will continue into FY 2023-24.
Community and Economic Development (CED) actual expenditures came in 40% below budget due to salary savings from an average of three (3) vacant positions throughout the fiscal year and ongoing contracts and projects that will continue into FY 2023-24. The contracts and projects include Professional and Contracted Services such as Building and Planning Inspector services, implementation of the Online Permit Program, the Permanent Local Housing Allocation Program (PLHAP), and other Community and Economic Development Strategic Plans and Studies that are expected to be ongoing in FY 2023-24.
General Fund (Fund 100) $ 49,468,086
General Liability Insurance Fund (Fund 105) 598,156
Workers Compensation Claims Fund (Fund 106) 150,547
Section 115 Pension Trust Fund (Fund 875) 7,026
Total General Fund Revenues FY 2022-23: $ 50,223,815
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Parks and Recreation came in 15% under budget, mainly due to salary savings from vacant Full-time positions and Part-time positions salary savings primarily in Recreation Facilities and Programs, Senior Services, Camps, and Youth Sports.
Maintenance and Operation expenditures came in below budget primarily due to Contracted Services for the Aquatics division holding a reduced number of contracted programming events, the Marketing and Promotions division not printing the Recreation Guide along with difficulties purchasing materials that were backordered, and the Senior Services division for the Senior Center Americans with Disabilities Act (ADA) and Safety project that is expected to be ongoing in FY 2023-24.
Public Works came in 12% 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 median island maintenance, landscaping services, traffic signal maintenance, stormwater lift station maintenance, and other projects that are expected to continue in FY 2023-24. Notably, contracted services for traffic signal maintenance encountered a reduced number of service calls and repairs, particularly for streetlight knockdowns and replacements. Additionally, challenges arose in obtaining materials for contracted services related to fire suppression retrofitting at City facilities, leading to project delays. Consequently, staff conducted more in-house maintenance and repairs to facilities that are expected to continue in FY 2023-24. Ongoing projects and agreements for median island maintenance and landscaping services were in progress, set to continue in FY 2023-24.
Operating Transfers Out came in at budgeted estimates for the annual transfer of $1.065 million in Sales Tax Pledges from the General Fund to the Successor Agency (Fund 851).
Non-Operating Transfers Out came in at budgeted estimates and included a combination of $1.147 million, $562 thousand, and $332 thousand from the FY 2022-23 Amended Budget for funding for Community and Economic Development Strategic Projects, General Fund Capital Improvement Projects, and FY 2022-23 Mid-Year budget adjustments for the Liability Claims, Workers Compensation, and Financial System Funds.
Fund Balance – General Fund
The FY 2022-23 General Fund operating revenue actuals are $5.29 million higher than the amended budget due to stronger than anticipated Sales Tax, Property Tax, Utility User's Tax, and Business License revenues. The General Fund operating expenditure actuals are below the amended budget by $8.47 million, resulting from staff vacancies throughout the year and the continuance of some programs and projects into FY 2023-
24. CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
The FY 2022-23 General Fund Year-End projections provided in the FY 2022-23 Third Quarter Budget Review showed revenues tracking better than expected at $4.25 million above expenditures. The General Fund Year-End Revenues were trending higher than anticipated, primarily due to improved Sales Tax, Property Tax, Utility Users Tax, and Interest Income revenues received to date since March 31, 2023, ending June 30, 2023, FY 2022-23 General Fund revenues came in better than expected at $6.75 million above expenditures due to revenues exceeding Third Quarter projections and departments actively continuing to reduce expenditures and impacts on the General Fund.
Table 7 reflects the General Fund Balance per GASB 54 classifications as of June 30, 2023.
Table 7 – Fiscal Year End 2022-23 General Fund Balance
General Fund Balance, June 30, 2023:
Nonspendable (Advances Receivable and Others) 26,900,752 $ Committed (Fund Balance Requirement - 50% of FY 2022-23 GF Revenues) 28,903,778 Restricted (Pension Contribution and Others) 1,335,720
Assigned (Fund Balance Policy Designations)
OPEB Unfunded Liability 856,070
Leave Liability 592,400
Equipment Replacement 556,020
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 2,328,070
Appropriation Approved by the City Council Previously 8,895,628 Other Designations
Rio Hondo Park Renovation Project 1,000,000
General Plan Maintenance Fee 58,991
Negative Fund Balances - Other Governmental Funds 202,840 Total Assigned Fund Balance 20,990,019
Unassigned 4,139,702
Total General Fund Balance, June 30, 2023: 82,269,971 $ * See Table 8 for more details
Non-spendable Fund Balance
The City has nearly $27 million in long-term receivables/advances in the non-spendable form at the end of FY 2022-23.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
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 the General Fund revenues, $28,903,778 was designated as the Reserved/Committed General Fund Balance as of June 30, 2023.
Restricted Fund Balance
At the end of FY 2022-23, the majority of the balance was due to the PARS Section 115 account’s balance of $1,288,720, which was restricted for the Pension contribution.
Assigned/Designated Fund Balance
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
Other than the designations listed above, the assigned balance also included open purchase orders of $2,328,070, appropriations of $8,895,628 previously approved by the City Council, and a few items outlined below. These planned appropriations were not expensed by June 30, 2023, and were thus carried over into FY 2023-24. A list of the Open Purchase Orders is attached (Enclosure 3), and a list of the appropriations approved by the City Council previously is included in Table 8 below.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Table 8 – Appropriations Approved by the City Council Previously Appropriations Approved by the City Council Previously
City Council Date Description Balance as of
6/30/2023
1/11/2022 Automatic Plate Rater (Flock) System - $90K per FY for 5 FY Starting 7/1/2023 340,000 $ 4/12/2022 Economic Development Initiatives 1,535,000
4/12/2022 Teen Center Design 200,000
4/12/2022 ADA Implementation Coordinator 100,000
4/12/2022 City Hall Council Chambers & Media Division System Upgrades (CIP. 50074) 340,000 4/12/2022 Whittier Boulevard Specific Plan (Project # 4687) 19,995 4/12/2022 Low-Income Youth Sports Subsidy Program (Pico Rivera Playpass) 4,300 5/9/2023 Smith Park Aquatic Center 6,000,000
10/10/2023 Smith Park Aquatic Center (161,789)
6/13/2023 Summer Street Fest - for two additional days 184,143 6/13/2023 Fiestas Patrias 136,238
6/13/2023 Movies in the Park - for two additional movies 13,775 9/26/2023 Senior Center Restrooms Ada Improvement Project (CIP No. 50036) 22,177 10/10/2023 Teen Center Renovation Construction Project 161,789 Total Appropriations Approved by the City Council Previously 8,895,628 $ Assigned Fund Balance – Other Designations
Rio Hondo Park Soccer Field (CIP 21365) and Rio Hondo Park Renovation Project (CIP No. 50097) – In 2017, the City received a grant award from the State of California of $947,331 for the renovation of the Rio Hondo Park Soccer Field and in 2022, the City received $8.5 million in grants from the State of California for the renovation of Rio Hondo Park. City staff have been working with an architectural firm to provide the design for this project. The renovation includes an upgrade to the restrooms, walkway lighting, and basketball courts. In addition, new park amenities such as increased safety lighting, bleachers, a dedicated walking path and shade structures to offer more picnicking opportunities. It is estimated this project will have a total cost of approximately $11.7 million, which is $2.2 million more that the current funding.
To address the shortfall, staff is working on a request to the California Department of Forestry and Fire Protection - CAL FIRE Urban and Community Forestry Program and Green Schoolyards Funding Source to redirect $2.475 million in funding that was originally awarded to the Ruben Salazar Fields to this project. The 2022-2023 Urban and Community Forestry Green Schoolyards program allocated funds for projects supporting transformative nature-based designs that promote physical activity, mental health, and overall wellbeing for students and staff and local schools. This grant was awarded to the City in July 2023, and required a local match to fund the remaining cost of “Phase 1” of the fields, which neither the City nor the El Rancho Unified School District (ERUSD) are able to fund.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
In the event this funding cannot be redirected, staff recommends designating $1 million from this year’s surplus to the Rio Hondo Park Renovation Project. The remaining portion of the shortfall can come from the proceeds generated from the sale of 9003 Beverly Boulevard to Tierra Mia, which is estimated at $1.5 million. General Plan Maintenance Fees – The City collects the fees from building, electrical, plumbing, and mechanical permit applicants. The City utilizes the fees to review and update the City’s Comprehensive General Plan, including statemandated revisions and matters initiated by the Planning Commission and City Council. The accumulative unspent balance of $58,991 will be transferred to the CED Strategic Goals Fund when General Plan expenses are incurred. Negative Fund Balance – In reviewing the City’s other governmental funds, staff identified the need to transfer $202,840 of the General Fund Unassigned Balance to the Liability Claims Fund, Sewer Maintenance Fund, Federal Aid STPL5351 Fund, Highway Bridge Program Fund, and Miscellaneous Federal Grant Fund to reduce these funds’ negative balances.
Liability Claims Fund (Fund 105) – In FY 2022-23, the City exceeded its budget for insurance claim payments by $43,677, resulting in a fund deficit of the same amount in the Liability Claims Fund as of June 30, 2023. To rectify this negative balance appropriately, staff recommends transferring $43,667 from the General Fund to the Liability Claims Fund. This transfer will not affect the net Unassigned General Fund Balance, as both the General Fund and Liability Claims Fund are consolidated within a single fund in the ACFR.
Sewer Maintenance Fund (Fund 225) - On August 25, 2015, the City Council approved granting jurisdiction to the County of Los Angeles (County) to include the City into a County sewer maintenance district. Since then, the County has collected the annual sewer fee revenues to maintain and improve the City’s sewer system while the City has received minimal revenues. The City incurred expenditures associated with the Master Plan for Water, Sewer, and Storm Drain in the Sewer Maintenance, resulting in a fund deficit of $20,380 as of June 30, 2023. Staff recommends transferring $20,380 from the General Fund to the Sewer Maintenance fund to eliminate the negative fund balance. Federal Grant Funds - Some Federal Grant funds have negative balances as of June 30, 2023:
o Federal Aid STPL5351 (Fund 638) – The City incurred expenditures of $763,343 for the Whittier Blvd-Paramount Blvd to West City Limit Rehabilitation project (Capital Improvement Project (CIP) 21246) in Fund 638. The City submitted its final grant reimbursement request to Caltrans CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
in December 2017 and received total reimbursements of $763,000, resulting in a fund deficit of $343.
o Highway Bridge Program (Fund 661) - In March 2022, staff inadvertently posted the federal grant reimbursement received for the Washington Blvd Bridge Over the Rio Hondo River (CIP 21285) project to the General Fund instead of the appropriate Highway Bridge Program Fund, resulting in a deficit of $1,836 in the Highway Bridge Program Fund.
o Miscellaneous Federal Grant (Fund 698) – The City incurred expenditures of $969,796 for the Paramount Blvd Raised Medians project (CIP 21272) in Fund 698. This included $44,326 in non-participating costs that were ineligible for grant reimbursement. Furthermore, the project’s federal grant reimbursement rate was 90% for eligible expenditures, resulting in an additional $92,288 in non-reimbursable costs. Therefore, a transfer of $136,614 is required to address the shortfall in Fund 698 for this CIP.
In summary, at the end of FY 2022-23, the total Assigned General Fund Balance was $20,990,019, resulting in an Unassigned General Fund Balance (Undesignated Reserve) of $4,139,702.
Since the conclusion of the FY 2022-23 audit in December 2023, the City Council has approved an additional appropriation, which resulted in a further modification to the General Fund unassigned fund balance (Table 9):
Table 9 – Adjusted General Fund Unassigned Fund Balance Adjusted General Fund Unassigned Fund Balance
Date Description Amount
6/30/2023 General Fund Unassigned Fund Balance $ 4,139,702 12/12/2023 City Council Compensation Adjustments Pursuant to SB 329 50,000 Adjusted General Fund Unassigned Fund Balance 4,089,702 $ Following is a set of recommendations to address emerging issues that staff is requesting to fund with the $4,089,702 in Unassigned (Undesignated) Fund Balance:
Vehicle and Equipment Replacement for Public Works - $1,089,702 The City is responsible for the preventative maintenance, repair, acquisition, and replacement of City vehicles and equipment to provide vital services to the community and accomplish operational goals and purposes safely and effectively.
The City strives to maintain the fleet at a sufficient level to minimize future repair and maintenance costs. The timely replacement of vehicles and related equipment avoids frequent unplanned operation interruptions. The Public Works Department has identified the immediate need to replace nine (9) vehicles and equipment. Staff recommends allocating $1,089,702 to replace the needed vehicles and equipment to prevent substantial delays and increase efficiencies in daily operations.
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Smith Park Stadium Turf Replacement - $1,300,000
Smith Park is considered a community-wide park providing competitive football, softball, baseball, and soccer fields along with other park uses. In 2013, the City replaced the natural turf at Smith Park Stadium with artificial materials. The reason for the replacement was ongoing problems including failure of the natural turf leading to large and deep bare patches. The warranty for the current artificial material is eight (8) years. With 11 years of use, the material has exceeded its expected lifespan and is in need of replacement. For many years, the field served as the community’s only all-weather field allowing play in all conditions. Revenue Replacement Designation – Measure AB Revenue/Taxpayer Protection and Accountability Act - $1,700,000
As mentioned previously, the Measure AB Ballot Initiative was implemented subsequent to the 2022 elections. The intent was to restructure the Business License fee schedule and update the fee rates across the various segments of the business sector in the community. As of the date of this writing, and as will be communicated to the City Council in the FY 2023-24 Midyear Review Agenda Report, the revenues collected through December 31, 2023, are coming in lower than expected. Based on our review and inquiry of our Business License Tax consultants, HdL, it appears that this revenue source will come in about $2.1 below expected projections. Due to this expected shortfall, staff recommends designating these monies towards the FY 2023-24 General Fund budget. This would ensure the continuance of planned services, ongoing projects, and most importantly, it would ensure that planned infrastructure projects remain in motion.
Additionally, the Taxpayer Protection and Government Accountability Act would amend the California Constitution with provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, and may make it more difficult to impose fines and penalties for violation of state and local laws. The measure puts billions of local government tax and fee revenues at risk statewide with related core public service impacts. The measure would significantly negatively impact the City’s operations and core service delivery.
The initiative includes provisions that would retroactively void all state and local taxes or fees adopted after January 1, 2022, if they did not align with the provisions of this initiative. For the City, this would mean the possible loss of the additional revenues from the voter-approved Measure AB Business License Tax passed by the voters in November 2022. At that time, we will know the results of this act.
Should the City Council approve the designation of the recommendations, the Adjusted Unassigned/Undesignated Fund Balance is as follows:
CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Adjusted General Fund Unassigned Fund Balance
Date Description Amount
6/30/2023 General Fund Unassigned Fund Balance $ 4,089,702 Smith Park Turf Replacement 1,300,000
Equipment Replacement - Vehicle Purchases 1,089,702
Revenue Replacement Designation (TPA/Measure AB) 1,700,000 Adjusted General Fund Unassigned Fund Balance - $
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 10 reflects the Enterprise Fund balances as discussed below.
Table 10 – Enterprise Funds Year-End Results
Net Assets / Fund
Water
Operations P.R.I.M.E Golf Course Sports Arena
Revenue 10,989,386 $ $ 24,006,009 $ 755,542 $ 318,378 Expenses 7,000,116 $ $ 18,935,357 $ 1,420,585 $ (2,795) Changes in Net Assets 6,376,831 $ $ 5,454,197 $ (665,043) $ 333,502 Beginning Fund Balance 33,378,487 $ $ 4,930,134 $ (2,939,359) $ 368,010 Ending Fund Balance 39,755,318 $ $ 10,384,331 $ (3,604,402) $ 701,512 There are four (4) major funds in the enterprise fund group, the Water Operations Enterprise fund, the PRIME fund, the Golf Course fund, and the Sports Arena 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, $10.98 million was received from charges for services, and the operating expenses were $7.00 million. The non-operating revenues and expenses included $274 thousand in investment income and $2.52 million in grants from the Water Replenishment District for the Per-and Polyfluorinated Substances (PFAS) Treatment. The Water Fund's net position increased by $6.38 million from the prior year to $39.76 million. Revenues exceeded expenses, mainly due to continuing appropriations for programs and projects that were in progress and expected to be completed in FY 2023-24.
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 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
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 of “greener” energy 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 received were $24 million, and operating expenses were $18.94 million. In FY 2022-23, 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 unpredictable weather changes, the PRIME Fund implemented a rate increase approved by the City Council in February 2023. In FY 2022-23, many CCAs across the state adopted rate hikes to stay competitive in pricing, particularly in light of escalating rates from InvestorOwned Utilities such as SCE. While the unpredictability of weather and future energy prices is a continuing theme, FY 2022-23 net assets increased by about $5.45 million, mostly due to the City’s continued attention to proactively setting rates and proactively procuring clean energy contracts.
Golf Course Fund
During FY 2022-23, the Pico Rivera Golf Course faced reduced demand for golf activities as patrons had access to various other recreational options following the lifting of pandemic restrictions. Moreover, the closure of the driving range by the U.S. Army Corps of Engineers (USACE) further contributed to decreased revenue. On the flip side, the Golf Course saw an uptick in expenses, primarily driven by the costs associated with Contracted Services for management, maintenance of the buildings and grounds, and the utilities required for the restaurant, banquet facility rentals, and grounds maintenance. As a result of these factors, there was a net operating loss of $665 thousand.
Sports Arena Fund
The Pico Rivera Sports Arena experienced a resurgence in its activities, returning to pre-pandemic levels for rentals and events. This increased operational capacity led to revenues surpassing expenditures, with a higher number of events taking place in the outdoor venue. Consequently, the Sports Arena achieved a net income of $334,000.
Conclusion:
This year-end report presents an overview of the City's General Fund operating revenues and expenditures for FY 2022-23. Staff recommends that the City Council receive and file the report. Staff also recommends the City Council approve budget transfers of $202,840 out of the General Fund Unassigned Balance to reduce the negative balances for the Liability Claims Fund, the Sewer Maintenance Fund, the Federal Aid STPL45351 Fund, the Highway Bridget Program Fund, and the CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 27, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Miscellaneous Federal Grant Fund. Lastly, the staff’s recommendation is to allocate the remaining General Fund Unassigned Balance of $4,089,702 towards Vehicle/Equipment Replacement, Smith Park Turf Replacement, and the Measure AB Revenue Replacement. 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:MS:DS:ep
Enclosures: 1) Annual Comprehensive Financial Report (ACFR), Year Ending June 30, 2023
2) City of Pico Rivera End of the Year Accomplishments Report, FY 2022- 23 3) General Fund Purchase Orders Rolled over to FY 2023-24 Fiscal Year Ended June 30, 2023
PICO RIVERA ACFR
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
2023
City of
California
Enclosure 1
14a
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CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
CITY OFFICIALS xiv
ORGANIZATIONAL CHART xv
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN
FINANCIAL REPORTING xvi
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 5
FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 18
STATEMENT OF ACTIVITIES 19
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
DESCRIPTION OF MAJOR FUNDS 21
BALANCE SHEET 22
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION 24
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 25
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES 27
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 28
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION 29
STATEMENT OF CASH FLOWS 30
FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND 32
STATEMENT OF FIDUCIARY NET POSITION 33
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 34
NOTES TO FINANCIAL STATEMENTS 35
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN 84
SCHEDULE OF CONTRIBUTIONS – MISCELLANEOUS PLAN 85
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – COUNCIL PLAN 86
SCHEDULE OF CONTRIBUTIONS – COUNCIL PLAN 87
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS 88
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN 89
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 90
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND 91
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND 92
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 93
SUPPLEMENTARY INFORMATION
OTHER GOVERNMENTAL FUNDS
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 94
COMBINING BALANCE SHEET 96
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 102
SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL
REVENUE FUND 108
STATE GAS TAX SPECIAL REVENUE FUND 109
LIGHTING ASSESSMENT DISTRICT SPECIAL REVENUE FUND 110
PROP A SPECIAL REVENUE FUND 111
PROP C SPECIAL REVENUE FUND 112
MEASURE R SPECIAL REVENUE FUND 113
MEASURE M SPECIAL REVENUE FUND 114
HOME GRANT SPECIAL REVENUE FUND 115
CALHOME GRANT SPECIAL REVENUE FUND 116
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND 117
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
COUNTY GRANTS SPECIAL REVENUE FUND 118
STATE GRANTS SPECIAL REVENUE FUND 119
ECONOMIC SUSTAINABILITY SPECIAL REVENUE FUND 120
IMAGE ENHANCEMENT SPECIAL REVENUE FUND 121
SEWER MAINTENANCE SPECIAL REVENUE FUND 122
REACH GRANTS SPECIAL REVENUE FUND 123
CABLE/PEG SUPPORT SPECIAL REVENUE FUND 124
TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND 125 MEASURE W SPECIAL REVENUE FUND 126
FEDERAL GRANTS SPECIAL REVENUE FUND 127
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND 128
PARAMOUNT/MINES LANDSCAPE MAINTENANCE ASSESSMENT
CAPITAL PROJECTS FUND 129
OTHER ENTERPRISE FUNDS
DESCRIPTION OF OTHER ENTERPRISE FUNDS 130
COMBINING STATEMENT OF NET POSITION 131
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 132
COMBINING STATEMENT OF CASH FLOWS 133
STATISTICAL SECTION (UNAUDITED)
DESCRIPTION OF STATISTICAL SECTION CONTENTS 134
FINANCIAL TRENDS
NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS 135
CHANGE IN NET POSITION – LAST TEN FISCAL YEARS 137
FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN
FISCAL YEARS 141
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS 143
REVENUE CAPACITY
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE – LAST TEN FISCAL YEARS 145
REVENUE BASE BY CATEGORY – LAST TEN FISCAL YEARS 147
PROPERTY TAX LEVIES AND TAX COLLECTIONS – LAST TEN
FISCAL YEARS 148
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES – LAST TEN YEARS 149
PRINCIPAL PROPERTY TAXPAYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 151
TOP 25 SALES TAX PRODUCERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 152
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS 153 RATIOS OF GENERAL BONDED DEBT OUTSTANDING – LAST TEN
FISCAL YEARS 154
DIRECT AND OVERLAPPING DEBT 155
LEGAL DEBT MARGIN INFORMATION – LAST TEN FISCAL YEARS 156
PLEDGED REVENUE BOND COVERAGE
1999 WATER AUTHORITY REVENUE BONDS – LAST TEN FISCAL YEARS 158 2001 WATER AUTHORITY REVENUE BONDS – LAST TEN FISCAL YEARS 158 2016 LEASE REVENUE BONDS 158
2018 CERTIFICATES OF PARTICIPATION 158
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS – LAST TEN FISCAL YEARS 159 PRINCIPAL EMPLOYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 160
OPERATING INFORMATION
FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION – LAST TEN FISCAL YEARS 161
OPERATING INDICATORS BY FUNCTION – LAST TEN FISCAL YEARS 162 CAPITAL ASSET STATISTICS BY FUNCTION – LAST TEN FISCAL YEARS 164
INTRODUCTORY SECTION
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Jane Guo
Director
City of Pico Rivera
ADMINISTRATIVE SERVICES
6615 Passons Boulevard ∙ Pico Rivera, California 90660
(562) 801-4336
Web: www.pico-rivera.org e-mail: [email protected]
City Council
Erik Lutz
Mayor
Andrew C. Lara
Mayor Pro Tem
Gustavo V. Camacho
Councilmember
John R. Garcia
Councilmember
Dr. Monica Sanchez
Councilmember
December 1, 2023
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, 2023
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, 2023, 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, 2023, 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.
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
City of Pico Rivera Profile
The City of Pico Rivera is a thriving community that offers opportunities to all who live, work, and visit. 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 60,000. 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 terms. 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
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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. 7289 were formally adopted by the City Council on June 27, 2023, that include 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, 2023, after thorough review by appropriate Administrative Services Department staff, will either be released or re-appropriated for use in Fiscal Year (FY) 2023- 24, 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 the City Council as part of the FY 2021-22 budget process. On July 28, 2020, the Pico Rivera 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 percent to 50 percent. The revised policy also set certain triggers to allow staff and the 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 2023-24 Budget.
The City strives to be well-positioned to weather potential economic downturns, natural disasters, or other calamities that 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 to further strengthen the City’s economic health by setting aside additional fund balance for anticipated SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
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, 2023, 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 maintenance of 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 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 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
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
▪ Health, Wellness and Safety
▪ Community Engagement
Fiscal and Organizational Sustainability Accomplishments Administration
Successfully placed Measure AB on the ballot, and in November 2022, voters overwhelmingly approved it with a 75% approval.
Conducted the City's General Municipal Election that included two (2) approved Measures
Held the City’s annual City Council Goal setting retreat Updated the City's Biennial Conflict-of-Interest Code Implemented an Online Records Center Public Portal and Public Records Request Automation Process
Successfully adopted the City’s first Legislative Platform Successfully led an advocacy trip to Sacramento, CA, for the California Contract Cities Conference, where City Council members and staff met with Assemblymembers Lisa Calderon and Senators Lena Gonzalez and Bob Archuleta
Successfully led an advocacy trip to Washington DC where City Council members and staff met with US Congressional Representatives Judy Chu (D28), Grace Napolitano (D31), Linda Sanchez (D38), Robert Garcia (D42), Nanette Barragan (D44); US Senator Alex Padilla and the Office of the late Senator Feinstein; the US Departments of Transportation and Economic Development Administration; and President Biden’s Infrastructure Team
Administrative Services
Completed the FY 2021-22 Accomplishments Publication Book Published the "Budget-in-Brief" document, which provides the community with a summary of the City's Annual Budget, Priorities, and Accomplishments Received GFOA Award for Excellence in Financial Report for the 2022 Annual Comprehensive Financial Report (ACFR)
Received GFOA Award for Distinguished Budget Presentation for Year 2 of the FY 2021-23 Biennial Budget
Implemented industry "Best Practices":
o Updated the Investment Policy
o Updated Capital Asset Capitalization Policy
Implemented TravelBank Apps to track and reconcile credit card transactions seamlessly online.
Presented a balanced Biennial Budget for FY 2023-25
Upgraded Virtual City Hall - 3Di Systems with VCH 311 platform to actively engage citizens with the City to maintain a clean & safe community Upgraded new City Phone system from a legacy on-premises system to a modern voice-over IP Cloud system
Upgraded new Email system (Office 365) from Exchange 2007 Implemented IT Standardization of documentation and remote tools, including IT Glue SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
for the centralized documentation platform and Pulseway for the remote monitoring and management platform
Implemented Cyber Security Measures for Ransomware Protection, Cloud Antivirus, Multi-Factor Authentication (MFA), and Penetration Testing Enhanced Threat ZERO prevention-based platform for identifying and managing the presence of compromises & sophisticated threat actors
Upgraded Internet Redundancy of Failover Internet line to prevent ISP-Related service interruptions
Human Resources
Successfully recruited for all executive positions.
Completed CEA, SEIU, and SEIU Directors Labor Negotiations Rolled out Phase One of Supervisory/Management/Leadership Training Successfully received and reviewed 2,298 employment applications Provided New Hire Orientations to 19 full-time employees and 33 part-time employees Successfully facilitated and certified 17 full-time and 53 part-time interviews from eligibility list
Implemented new training platform, Vector Solutions
Successfully renewed all lines of insurance for FY 2023-24 Recertified Heat Stress, CPR, and Mandated Reporter Trainings Economic Development and Land Use Accomplishments
Initiated a partnership with the Rivers & Mountains Conservancy, City of Montebello, and the Los Angeles County Department of Public Works to explore, plan, and implement passive recreation facilities at Rio Hondo Coastal Basin Spreading Grounds
Executed a Memorandum of Understanding with Landify to plan, design, and develop new parks, open spaces, trails, and recreational facilities at Ruben Salazar High School and other suitable sites throughout the City
Collaborated with ERUSD to pursue and secure public and private funding opportunities for the renovation of Ruben Salazar High School Processed a Specific Plan and Conditional Use Permit for the Mercury Mixed Unit Housing Development for a 6-story 255-unit mixed-use project at 8255 Washington Boulevard
Processed a Conditional Use Permit application for a 350,000-square-foot warehouse development on a 19-acre site for Insite Warehouse Development Entitled the development of a 70,000-square-foot office building for training and development at the Southern California Gas Company Office Building headquarters located at 8101 Rosemead Boulevard
Entitled a 1,030-square-foot Starbucks location at the former Tamarack Inn at 9257 Slauson Avenue
Processed a Conditional Use Permit for the development of a 45-unit townhome development located at 4820 Durfee Avenue
Entitled a 4-story modern architectural-style Public Storage facility on a site that had SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
been vacant for 42 years
Issued grants of up to $10,000 to 14 additional businesses, successfully concluding the COVID-19 impact relief program for small businesses Completed 3 home rehabilitation projects in partnership with Habitat for Humanity for low- and moderate-income households
Sold an underutilized street portion on Baybar Road and generated $1 million for City coffers
Disposed of a 5,000-square-foot former Redevelopment Agency site located at 8631 Beverly Boulevard in the amount of $180,000
Disposed of a 1,144 square-foot underutilized former Redevelopment Agency parcel located on the northwest corner of Paramount Boulevard and Beverly Boulevard. Acquired a 5,000-square-foot site located at 9201 Whittier Boulevard in a parking deficient area for the development of additional parking spaces Acquired a vacant Veterans of Foreign Wars post located at 4865 Durfee Avenue. The 9,000-square-foot lot will allow the City to develop additional parking for local businesses, including the American Legion
Acquired the former Montebello Bus Lines and Metro terminal at the southwest corner of Passons Boulevard and Jackson Street. The 20,000-square-foot lot will be developed into the future Passons Active Depot park
Submitted a two-part federal request to US Senator Padilla and the late Senator Feinstein for the FY 24 Water Resources Development Act to address the impacts of the Whittier Narrows Dam Safet Modification Project
Infrastructure Accomplishments
● Submitted the following:
o A grant proposal to the US Economic Development Administration in the amount of $597,400 for the Southeast LA Micro EV Tech Hub and Pico Rivera Nucleus
o A grant proposal to the California Regional Trails Program in the amount of $1.4 million for the Pio Pico State Historic Park Trail Connection Project o A FY24 California State Budget Request with Assemblymember Lisa Calderon in the amount of $1.125 million for the Historic Whittier Boulevard Paseo Project o A grant with the Rivers and Mountains Conservancy through Prop 1 in the amount of $1.1 million for the Historic Whittier Boulevard Los Paseos Project o A Caltrans Clean CA Local Grant in the amount of $3.5 million for the Historic Whittier Boulevard Los Paseos Project
● Received awards for the following:
o A Caltrans Sustainable Community Planning Grant in the amount of $585,334 for the Rosemead/Lakewood Boulevard Complete Corridor Project o A FY24 California State Budget Request with Assemblymember Lisa Calderon in the amount of $1.125 million for the Alebrije Dog Park o A $1,050,000 million dollar grant for The PAD project from Congresswoman Linda Sánchez
o A New Mini-Pitch from National Recreation and Parks Association (NRPA) SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
valued at $100,000
o A Congressional Community Funding Request through Congresswoman Linda Sánchez in the amount of $1.5 million for the Historic Whittier Boulevard Los Paseos Project
● Began design phase of the following capital improvement projects:
o Alebrije Dog Park
o Youth Center Renovation
o Rio Hondo Park Renovation
o Utility Box Art Program
o Pico Park Outdoor Restrooms
● Developed a new design for the Smith Park Aquatic Center ● Upgraded the following:
o LED Lighting at Rivera Park Gym and Multi-purpose Room o HVAC unit for the Rivera Park Multi-purpose Room
o Suppression System for Pico Park Kitchen
o HVAC Compressor at City Hall
● Completed the following capital improvement projects:
o City Hall and City Hall West ADA Improvements
o Senior Center ADA Parking Lot Renovation
o Beverly and San Gabriel River Parkway Median Improvements o Whittier Blvd Overlay
o Whittier Blvd Landscape Median Improvements
o Rosemead Blvd and Beverly Blvd Hot Spot and Block Wall at Lindell o Highway Safety Improvement Program (HSIP) Cycle 7 Traffic Signal Upgrades o Highway Safety Improvement Program (HSIP) Cycle 8 Traffic Signal Upgrades o Citywide Resurfacing Slurry and Cape Seal (2023)
o Rosemead Blvd North of Whittier Blvd Street Rehabilitation o Annual Signing and stripping
o Chip Seal/ARAM (Asphalt Rubber Aggregate Membrane) Street Rehabilitation o Overlay and Reconstruction of Streets
o Well Rehabilitation
o Electrical Switchboard Replacement at Plant No. 3
o Citywide Traffic Signal Upgrades
o Phase 1 of Smith Park Aquatic Renovation
o Design for Rosemead Blvd Median and Parkway Beautification o Design for Major Corridors, Median and Parkway Beautification o Design for Regional Bikeway Phase I - Mines Ave Improvements o Design for Senior Center Tenant Improvements
o Design for Youth Center Renovation
o Installation of new canopies for the outdoor area at the Senior Center o Remodeling of outdoor restrooms at the Golf Course
o Installation of new sewer lines for Clubhouse at Golf Course o Rebuilding of pumps in the Storm Water Lift Stations at Rosemead Blvd and SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Rex Rd.
● Purchased three (3) new transportation vehicles. Two (2) vehicles for Recreation Transit and one for Dial-A-Ride
● Participated, presented, and was recognized by the Association of State Dam Safety Officials and the US Army Corps of Engineers for the City’s public outreach and engagement program regarding the Whitter Narrows Dam project ● Successfully secured the endorsement and support from US Senator Alex Padilla for the Rosemead/Lakewood Boulevard Complete Corridor Project ● Successfully established a partnership with the City of Long Beach to advance the Rosemead/Lakewood Boulevard Complete Corridor Project
● Successfully incorporated the Rosemead/Lakewood Boulevard Complete Corridor Project into SCAG’s Federal Transportation Improvement Program list of projects, therefore making the Project eligible for federal funding Health and Wellness & Safety Accomplishments
Completed Vehicles Miles Traveled (VMT) Analysis
Completed the Local Roadway Safety Plan
Completed the Facilities Management Plan and Security System. Upgraded rain gutters at the City Yard
Officially joined the California Jobs First – Los Angeles Collaborative to fund, establish, and support the long-term viability of the South East LA Micro EV Tech Hub and Pico Rivera Nucleus
In collaboration with the City’s Public Safety Ad Hoc Committee, completed the installation of 36 Automated License Plate Reader cameras by Flock Safety, a new and innovative program to improve ways of mitigating and solving crime using automated license plate recognition
Increased PRIME energy generation rates to successfully meet the City’s reserve policy for PRIME to 50% while continuing to provide a 3% discount on energy compared to Southern California Edison’s rates
Awarded an agreement to develop the City’s first-ever Climate Action Plan (CAP). A CAP is a comprehensive strategy that outlines measures and policies to mitigate climate change, aiming to reduce greenhouse gas emissions, adapt to climate change conditions, and foster a transition to a low-carbon economy Celebrated five years of PRIME operations with $1 million in cumulative savings since its inception
Maintained an approximate 94% PRIME customer retention rate Completed converting and installing 428 LED lights, bringing the total converted LED lights to 3,341, generating 1.8 million kWh in energy savings, or $567,000 in annual cost savings
Increased OhmConnect registrations with 63 new active participants for FY 2022-23.
OhmConnect is a platform that enables and incentivizes residents to participate in energy-saving activities, especially during summer heat events, to help prevent energy blackouts
Collaborated with the Southern California Association of Governments (SCAG) and completed a study to determine the need for Electric Vehicle (EV) Charging Stations SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
in the City in anticipation of the State's target to have 5 million zero-emission vehicles on the road by 2030. The study identified a need for 1,856 EV charging stations in the City by 2030
Received the 2022 Gateway Cities Council of Governments Energy Action Award – Gold. The awards are divided into four tiers, no award, bronze, silver, and gold (the most prestigious award), to recognize cities in their efforts and participation in energy efficiency and climate initiatives
Distributed organic waste bins to all eligible commercial accounts, reaching 100% compliance with SB 1383 State mandates
Successfully incorporated legislative language into the State Climate Resiliency Bond, prioritizing communities impacted by climate disasters or by projects mitigating disasters, such as dams for park funding
Submitted over 20 letters to the State Legislature expressing the City’s position for the record on various issues, including zoning, local control, climate resilience, and public safety
Successfully partnered with Beverly Hospital to offer Wellness Classes and Health Screenings at the Senior Center
Assisted 93 households in collaboration with the Southern California Housing Rights Center, delivering fair housing services, including discrimination prevention, referrals, case management, and resolution of landlord-tenant disputes Resolved 810 code enforcement cases generated on a complaint basis Successfully introduced a City Ordinance prohibiting participation in and speculation of illegal street takeovers
The City Council recognized the importance of public safety and the need for effective coordination between law enforcement agencies and community stakeholders. To enhance this coordination, the City Council launched a pilot program in February 2023 that added a Public Safety Coordinator position in the City Community Engagement Accomplishments
● Opened the Roldan Mini-Pitch and established a public/private partnership with the Roldan Family
● Developed PlayPASS subsidy program. The program will subsidize the registration fee for income-eligible youth to be able to participate in recreational youth sports programs, and over 50 participants were awarded assistance ● Awarded a $20,000 grant from the National Recreation and Parks Association (NRPA) towards the PlayPASS program
● Served over 12,500 meals for the Summer Food Service Program ● Secured $450,000 in grant funding towards the Outdoor Equity Program (OEP) from California State Parks that will offer new outdoor excursions and experiences to our community
● Successfully hosted thirteen (13) city-wide Special Events ● Successfully held six (6) Pool Days, in partnership with local cities, to ensure residents had access to aquatic programs, pending the Aquatic Center renovation ● Held the REACH program at eight (8) Elementary sites: Birney Tech Academy, Durfee Elementary, Magee Academy of Arts & Sciences, North Ranchito Elementary, Rio Vista Elementary, Rivera Elementary, South Ranchito Dual Language Academy, and SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Valencia Academy of the Arts
● Successfully served approximately 482 students through the REACH program ● Resumed the Pico Rivera Senior Center Meal program
● Senior Clubs resumed Club meetings. A grand total of 200 seniors met regularly ● Opened the Veterans Resource Center at the Pico Rivera Senior Center ● Appointed over 130 Veterans Service Officers
● Appointed over 1,200 Case Workers
● Held the Ribbon Cutting ceremony to roll out the City's new Transportation/Dial-A-Ride program, "Pico Rivera Transit (PRT)". Over 160 Pico Rivera senior and disabled residents signed up for program
● Dial-A-Ride program provided over 11,000 trips and over 300 new participants ● Recreation Transit/Trips and Tours provided 23 excursions ● Issued 12 Profiles to the community for public information ● Successfully engaged and solicited input from over 5,000 people throughout phases 1 and 2 of the Historic Whittier Boulevard Specific Plan and Multimodal Plan, which will be used to develop initial concepts and recommendations for revitalizing “uptown” Pico Rivera
● Hosted city tours with Pico Rivera stakeholders and leaders to the City of Orange and Pasadena to explore, draw comparisons, and learn from best and experimental practices for creating vibrant mixed-use community and economic development districts
● Successfully partnered with El Rancho Unified School District to launch the Pico Rivera Youth Ambassador Program, engaging local high-school students with realworld city projects and exposing them to career paths in urban planning, civil engineering, architecture, public policy, public administration, and more ● Launched “The Boulevard Bulletin”: A quarterly newsletter distributed communitywide that provides updates on the Historic Whittier Boulevard Program ● Acquired and activated the Pico Rivera IDEA Lab to support the Whittier Boulevard Revitalization Program delivery and serve as the on-site project and student and youth engagement center
● Successfully adopted a resolution and applied with the Local Agency Formation Commission to initiate the establishment of the Lower San Gabriel River Recreation and Park District
● Held a successful Clean California Bulky Item Dump Day Event in partnership with Caltrans.
● Distributed meals to 378 senior citizens through the Southeast Area Social Services Funding Authority’s (SASSFA) congregate nutritional program in Pico Rivera, targeting vulnerable individuals aged 60 and above to prevent premature institutionalization ● Awards Received:
o “Photography Award of Distinction” from California Association of Public Information Officials (CAPIO).
o “Best of the Best" award for Pico Rivera Transit Graphic Design - Print from California Association of Public Information Officials (CAPIO). o “Epic Award” for Pico Rivera Transit Graphic Design from the California Association of Public Information Officials (CAPIO)
o “Rebrand Award of Distinction” for Pico Rivera Transit from the California Association of Public Information Officials (CAPIO)
o 1st place “Award in Excellence in Marketing” for the Pico Rivera Transit Dial-A- SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Ride program from the California Association of Coordinated Transportation (CalAct)
o “Award of Excellence” recipient for Pico Park Roldan Mini-Pitch in the “Excellence in Design Park Planning” Category from California Parks & Recreation Society (CPRS)
o 2022 CAPIO EPIC Award in Graphic Design – Online category for 2021’s Community Bike Ride. The project also received 1 of the 3 “Best in Show Award” for all statewide entries
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 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 $8.65 million as of June 30, 2023.
The total fund balance grew by $9.048 million to $82.270 million – an amount that represents 146% 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 five (5) 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 essential to implement all available measures to safeguard against potential economic downturns that could impinge upon the City’s primary revenue sources: sales, property, and business license tax. Given the ongoing national economic challenges, including continuing inflation, constrained supply in the goods, services, and labor markets, more stringent Federal monetary policies, and market volatility, the City must proactively enhance revenues and improve operational efficiency to prevent impact from 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 fulfill City Council priorities. The efforts to focus on the 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 SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
30, 2022. This was the 25th 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 2022-23 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.
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 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 2024.
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,
Jane Guo
Director of Administrative Services
(xiv)
CITY OF PICO RIVERA
CITY OFFICIALS
City Council
Erik Lutz, Mayor
Andrew C. Lara, Mayor Pro Tem
Gustavo V. Camacho, Councilmember
John R. Garcia, Councilmember
Dr. Monica Sánchez, Councilmember
Executive Team
City Manager Steve Carmona
Assistant City Manager Angelina Garcia
City Clerk Vacant
Director of Administrative Services Jane Guo
Director of Community and Economic Development Alvaro Betancourt Director of Human Resources Karine Shirinian
Director of Innovation and Communications Javier Hernandez Director of Parks and Recreation Pamela Yugar
Director of Public Works Noe Negrete
Residents of Pico Rivera
City Attorney
Arnold M. Alvarez-Glasman
City Manager
Steve Carmona
City Clerk
Vacant
Director of
Parks and Recreation
Pamela Yugar
Director of Community and
Economic Development
Alvaro Betancourt
Director of
Public Works
Noe Negrete
Director of
Administrative Services
Jane Guo
City Council
Assistant City Manager
Angelina Garcia
Director of
Human Resources
Karine Shirinian
Director of Innovation and
Communications
Javier Hernandez
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, 2022
Executive Director/CEO
FINANCIAL SECTION
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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, 2023, 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, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the 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.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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)
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 1, 2023, 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 1, 2023
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(5)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
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, 2023, 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, agency 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). (6)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
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 18 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 government-wide 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 22-23) and in the governmental funds statement of revenues, expenditures and changes in fund balances (pages 25-26) 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 page 94.
The City adopts an annual appropriated budget for its General Fund as well as its other governmental funds.
Budgetary comparison statements are presented on pages 90-92 and 108 - 129. The governmental fund financial statements can be found on pages 18 through 27 of this report. (7)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
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 maintains only one type of proprietary fund: enterprise funds. 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 28 through 30 and pages 130 through 133 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 32 and 34 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 35 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 84 through 93 of this report.
Other Supplementary Information
Other supplementary information includes combining and individual budgetary comparison schedules for non-major Governmental Funds, combining statements for other enterprise funds and Agency Funds and Internal Service funds. Other supplementary information can be found on pages 94 through 133 of this report.
FINANCIAL HIGHLIGHTS
Citywide
Comparing the fiscal year ended June 30, 2023 with June 30, 2022, the City's total net position increased by $35.171 million, from $339.533 million to $374.704 million. Of this amount, there was an increase in total assets of $34.325 million to $503.226 million, an increase in total liabilities of $16.082 million to $137.108 million, an increase in deferred outflows of resources of $7.543 million and a decrease of deferred inflows of resource of $9.385 million. Citywide revenues totaled $125.307 million, an increase of $10.304 million over the prior year.
Expenses were $90.136 million, an increase of $1.088 million over the prior year. (8)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
• During the year, the City actively worked on several capital improvement projects, resulting in some capital outlays including: $8.322 million in the residential resurfacing program, $4.272 million in the Per-and Polyfluorinated Substances (PFAS) Treatment, $3.284 million in the Advance Metering Infrastructure project, $2.043 million in the traffic signal upgrade, to name a few. As a result, the City’s capital assets, after depreciation, increased by $24.360 million to $337.810 million.
Citywide – Governmental Activities
Governmental Activities revenues increased $2.737 million to $86,049 million (prior to any transfers).
The net increase resulted from a combination of a few main factors: increases of $1.134 million in charges for services, $2.233 million in investment earnings, $1.186 million in property taxes, $566 thousand in sales taxes, $434 thousand in utility users taxes, $1.941 million in other taxes, and $1.832 million in miscellaneous revenues, offset by decreases of $4.515 million in operating grants and $2.180 in capital grants.
Governmental Activities expenditures increased by $1.172 million to $62.321 million. This is mainly attributed to a combination of increases and decreases as follows: $2.545 million increase in General Government, $1.157 million in Public Works, and $1.083 million in Parks and Recreation, total increases offset by a decrease in Community Development expenditures of $4.934 million.
Fund Level – General Fund
General Fund revenues were $56.496 million, an increase of $7.461 million over the prior year.
The increase was mainly due to increased sales taxes, property taxes, utility user taxes, plan check fees, investment income, and miscellaneous income.
Tax revenues increased by $2.166 million as the City received $566 thousand more sales taxes, primarily due to the impact of inflation on consumer goods. The City received $1.110 million more property taxes due to the sales of several industrial parcels in FY 2023 and increased property assessments compared to the prior fiscal year. Utility user tax increased by $434 thousand due to increased usage and pricing of electric and natural gas billed charges. Intergovernmental revenue decreased by $546 thousand as less reimbursement was received than the prior fiscal year for the street and highway maintenance projects. Licenses and permits revenue increased by $2.165 million due to increased building permits, plumbing permits, heating air conditioning permits, plan check fees, zoning and planning fees, and storm drains revenue categories that continue to show favorable growth. Fines, forfeitures, and penalties revenue decreased by $27 thousand, primarily due to decreased court fines.
Investment and rental revenues increased by $1.930 million. The increase was mainly attributed to higher investment market value returns compared to the last fiscal year. Charges for services increase by $252 thousand due to increasing in-person programs, services, and special events.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
Miscellaneous revenues increased by $1.522 million primarily due to legal settlements of $811 thousand and insurance reimbursement of $398 thousand for the golf course. General Fund expenditures were $47.845 million, a $9.931 million increase from the prior year.
This was primarily due to the prior year's law enforcement costs being offset by $10.228 million from ARPA funding related to "General Revenue Loss" with the law enforcement operating expenses.
The Public Works expenditures increased by $1.498 million as the department filled some vacancies and experienced increased contracted services and supplies due to inflation. Community and Economic expenditures decreased by $4.664 million as the prior fiscal year amount included $5 million transferred from the General Fund to the Successor Agency to refinance the 2001 Tax Allocation Bonds with the 2021 Tax Allocation Bonds. The General Fund's fund balance increased by $9.048 million to $82.270 million as of June 30, 2023.
Fund Level – Proprietary Funds
The City had four Enterprise Funds in Fiscal Year 2022-23.
Business-type Activities – Enterprise Funds – Overall, the total net position of these funds increased by $11.500 million to $47.237 million at June 30, 2023.
Total assets increased by $7.018 million to $87.932 million, primarily due to an increase of $7 million in water fund capital assets resulting from the Per-an Polyfluoroalkyl Substances (PFAS) project and the Advanced Metering Infrastructure (AMI) System that the City worked on in FY 2022-23.
Total liabilities decreased by $1.621 million to $42.164 million, comprised of $3.439 million decrease in current liabilities., and an increase of $1.818 million in noncurrent liabilities. As of June 30, 2022, PRIME owed $3.383 million to the General Fund. The balance was paid off as of June 30, 2023, decreasing the current liabilities by $3.383 million. There are three notable changes in the noncurrent liabilities: an increase of $2.307 million in the net pension liability, an increase of $$717 thousand in Advances from the General Fund to the Golf Course Fund, and a decrease of $1.230 million in bonds payable as the City pays down the Water Authority Revenue Bond Series 1999 A.
Total operating revenues increased $8.182 million to $38.588 million, and operating expenses increased $235 thousand to $27.353 million. Most changes were related to the operation of Pico Rivera Innovative Municipal Energy (PRIME). The Charges for Services revenue increased by $5.582 million, primarily due to more demand for PRIME. At the same time, the cost of PRIME's power supply has increased by $1.138 million.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
Fund Level – Fiduciary Funds
The Fiduciary Fund is discussed later in this document.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
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 96, require the reporting of subscription-based information technology arrangements (SBITAs).
Shown on the next page is the schedule of Statement of Net Position for the years ended June 30, 2023 and 2022, 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, 2023, the City's combined net position (governmental and business-type activities) totaled $374.705 million, an increase of $35.171 million from the prior year.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
City of Pico Rivera
Statement of Net Position
Fiscal Year ended June 30, 2023 and June 30, 2022
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 $295.287 million is the City's investment in capital assets, including 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-today activities. (Balance of page intentionally left blank)
2023 2022 2023 2022 2023 2022
As s ets :
C urre nt a nd Othe r A s s e ts $ 120,066,304 $ 107,909,207 $ 28,384,914 $ 30,650,156 $ 14 8 ,4 5 1,2 18 $ 13 8 ,5 5 9 ,3 6 3 Inte rna l B a la nc e s 19,701,636 22,367,512 (19,701,636) (22,367,512) - - La nd he ld fo r re s a le 1,701,360 1,701,360 - - 1,7 0 1,3 6 0 1,7 0 1,3 6 0 R e c e iv a ble s fro m S uc c e s s o r A g e nc y 15,070,401 14,999,752 192,770 189,699 15 ,2 6 3 ,17 1 15 ,18 9 ,4 5 1 Capital As s e ts 278,632,226 263,552,334 59,177,953 49,898,279 3 3 7 ,8 10 ,17 9 3 13 ,4 5 0 ,6 13 To tal As s e ts $ 435,171,927 $ 410,530,165 $ 68,054,001 $ 58,370,622 $ 503,225,928 $ 468,900,787 D e fe rre d Outflo w o f re s o urc e s $ 13,149,379 $ 6,896,596 $ 2,255,705 $ 965,262 $ 15 ,4 0 5 ,084 $ 7 ,8 6 1,8 5 8 Lia bilitie s :
C urre nt lia bilitie s $ 22,437,477 $ 18,743,425 $ 5,664,351 $ 5,720,275 $ 2 8 ,10 1,8 2 8 $ 2 4 ,4 6 3 ,7 0 0 Lo ng -te rm lia bilitie s 41,600,203 42,951,499 7,491,870 8,712,416 4 9 ,0 9 2 ,0 7 3 5 1,6 6 3 ,9 15 Ne t OP EB Obligatio n 15,511,905 14,846,687 1,609,402 1,594,827 17 ,12 1,3 0 7 16 ,4 4 1,5 14 N e t P e ns io n Lia bilitie s 35,272,270 23,242,557 7,520,930 5,214,285 42,793,200 28,456,842 To ta l Lia bilitie s $ 114,821,855 $ 99,784,168 $ 22,286,553 $ 21,241,803 $ 13 7 ,10 8 ,4 0 8 $ 12 1,0 2 5 ,9 7 1 D e fe rre d Inflo ws o f re s o urc e s $ 6,031,718 $ 13,846,693 $ 786,394 $ 2,356,809 $ 6 ,8 18 ,112 $ 16 ,2 0 3 ,5 0 2 Ne t P o s itio n:
Ne t inve s tme nt in c apital as s e ts $ 244,677,341 $ 237,260,527 $ 50,610,138 $ 40,280,888 $ 2 9 5 ,2 8 7 ,4 7 9 $ 2 7 7 ,5 4 1,4 15 R e s tric te d 31,184,653 27,978,094 - - 3 1,18 4 ,6 5 3 2 7 ,9 7 8 ,0 9 4 Unre s tric te d 51,605,739 38,557,279 (3,373,379) (4,543,616) 4 8 ,2 3 2 ,3 6 0 3 4 ,0 13 ,6 6 3 To tal Ne t P o s itio n $ 327,467,733 $ 303,795,900 $ 47,236,759 $ 35,737,272 $ 3 7 4 ,7 0 4 ,4 9 2 $ 3 3 9 ,5 3 3 ,17 2 Go v e rnm e nta l A c tiv itie s B us ine s s -Type
Ac tivitie s To tal
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
On June 30, 2023, the City's restricted net position was $31.185 million or 8.32% 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 $48.232 million is unrestricted and may be used to meet the government's ongoing obligations to citizens and creditors. The unrestricted amount increased by $14.21 million when compared to the June 30, 2022 amount.
Governmental Activities - Governmental activities' assets increased $24.642 million to $435.172 million, liabilities increased $15.038 million to $114.822 million, and total net position increased $23.672 million to $327.468 million when compared to the prior year.
Cash and investments increased by $15.948 million to $95.407 million compared to the prior year. As the City paid down outstanding bond payable principal, long-term liabilities decreased by $1.351 million to $41.600 million.
There were $27.207 million in pension liabilities along with the deferred outflow of resources and deferred inflows of resources that are related to the implementation of GASB 68, which was first effective for FY ended June 30, 2015, and was first reported on the financial statements for FY 2014-15.
There were $17.934 million in Other Post Employment Benefit (OPEB) liabilities along with deferred outflow of resources and deferred inflows of resources relative 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 increased by $9.683 million to $68.054 million.
Liabilities increased by $1.045 million to $22.287 million, primarily due to a $2.3 million rise in pension liabilities, which is offset by the payment of $1.125 million in principal on Water Authority Revenue Bond Series 1999 A.
There were $5.8 million in pension liabilities along with the deferred outflow of resources and deferred inflows of resources that are related to the implementation of GASB 68, which was first effective for FY ended June 30, 2015, and was first reported on the financial statements for FY 2014-15.
There were $1.861 million in Other Post Employment Benefit (OPEB) liabilities along with deferred outflow of resources and deferred inflows of resources relative 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.
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
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
City of Pico Rivera
Statement of Activities
Fiscal Year ended June 30, 2023 and June 30, 2022
Governmental Activities – Total revenues increased by $2.737 million, and expenses increased by $1.172 million compared to the previous year.
Overall, program revenues decreased by $5.561 million, primarily due to a decrease of $4.515 million in operating grants and a decrease of $2.180 in capital grants. Overall, general revenues increased by $8.298 million, including the property taxes up by $1.186 million, the sales and use taxes increased by $566 thousand, the utility user taxes by $434 thousand, the other taxes by $1.941 million as the City’s business licenses increased $1.877 million due to Measure AB approved by the City voters in November 2021, the investment earnings by $2.233 million due to stronger investment returns compared to the prior fiscal year, and the City sold a property with a gain of $929 thousand.
2023 2022 2023 2022 2023 2022
Revenues
P ro gram Revenues :
Charges fo r s ervices $ 5,972,134 $ 4,837,941 $ 36,069,315 $ 30,406,043 $ 4 2 ,0 4 1,4 4 9 $ 3 5 ,2 4 3 ,9 8 4 Operating grants an co ntributio ns 22,046,380 26,561,448 246,661 476,602 2 2 ,2 9 3 ,0 4 1 2 7 ,0 3 8 ,0 5 0 Capital grans and co ntributio ns 3,207,183 5,387,593 2,518,595 - 5,725,778 5,387,593 General Revenues : - -
P ro perty taxes 15,016,822 13,831,113 15 ,0 16 ,8 2 2 13 ,8 3 1,113 Sales and us e taxes 25,116,979 24,551,320 - - 2 5 ,116 ,9 7 9 2 4 ,5 5 1,3 2 0 Franchis e taxes 2,063,404 1,956,998 - - 2 ,0 6 3 ,4 0 4 1,9 5 6 ,9 9 8 Utility us ers taxes 4,001,578 3,567,128 - - 4 ,0 0 1,5 7 8 3 ,5 6 7 ,12 8 Other taxes 3,867,144 1,926,617 - - 3 ,8 6 7 ,14 4 1,9 2 6 ,6 17 Unres tricted Inves tment earnings 2,035,505 (197,845) 423,345 449,236 2,458,850 2 5 1,3 9 1 Gain o n bo nd defeas ance - - 683,028 - 683,028
Gain o n s ale o f capital as s ets 928,625 - - 928,625 - Mis cellaneo us 1,793,456 889,854 - - 1,7 9 3 ,4 5 6 889,854 To tal Revenues $ 86,049,210 $ 83,312,167 $ 39,257,916 $ 32,014,909 $ 12 5 ,3 0 7 ,12 6 $ 115 ,3 2 7 ,0 7 6 Expens es
General Go vernment 10,634,542 8,089,449 10 ,6 3 4 ,5 4 2 8 ,0 8 9 ,4 4 9 P ublic s afety 12,661,589 12,144,703 - - 12 ,6 6 1,5 8 9 12 ,14 4 ,7 0 3 P ublic wo rks 15,857,499 14,700,643 - - 15 ,8 5 7 ,4 9 9 14 ,7 0 0 ,6 4 3 P arks and recreatio n 8,540,605 7,457,649 - - 8,540,605 7,457,649 Health and welfare 7,274,930 6,414,485 - - 7 ,2 7 4 ,9 3 0 6 ,4 14 ,4 8 5 Co mmunity develo pment 5,957,282 10,891,361 - - 5 ,9 5 7 ,2 8 2 10 ,8 9 1,3 6 1 Interes t and fis cal charges 1,394,492 1,450,395 - - 1,3 9 4 ,4 9 2 1,4 5 0 ,3 9 5 Enterpris e o peratio ns - - 27,814,867 28,223,266 2 7 ,8 14 ,8 6 7 2 8 ,2 2 3 ,2 6 6 To tal Expens es $ 62,320,939 $ 61,148,685 $ 27,814,867 $ 28,223,266 $ 9 0 ,13 5 ,8 0 6 $ 8 9 ,3 7 1,9 5 1 Increas e/Decreas e in net po s itio n
befo re trans fers 23,728,271 22,163,482 11,443,049 3,791,643 3 5 ,17 1,3 2 0 2 5 ,9 5 5 ,12 5 trans fers (56,438) - 56,438 - -
Change in net po s itio n: $ 23,671,833 $ 22,163,482 $ 11,499,487 $ 3,791,643 $ 3 5 ,17 1,3 2 0 $ 2 5 ,9 5 5 ,12 5 Net po s itio n-beginning o f year 303,795,900 281,632,418 35,737,272 31,945,629 3 3 9 ,5 3 3 ,17 2 3 13 ,5 7 8 ,0 4 7 Net po s itio n-end o f year $ 327,467,733 $ 303,795,900 $ 47,236,759 $ 35,737,272 $ 3 7 4 ,7 0 4 ,4 9 2 $ 3 3 9 ,5 3 3 ,17 2 Go v e rnm e nta l A c tiv itie s B us ine s s -Type Ac tivitie s To tal -
-
-
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
Expenses increased by $1.172 million in FY 2022-23. There are a few main factors: the General Government expenses increased by $2.545 million, Public Works expenses increased by $1.157 million, and Parks and Recreation expenses increased by $1.083 million due to vacancies filling, higher contracted services and supplies, and the pension transactions. The Community Development expenses decreased by $4.934 million, as the prior fiscal year amount included $5 million transferred from the General Fund to the Successor Agency to refinance the 2001 Tax Allocation Bonds with the 2021 Tax Allocation Bonds.
Business-Type Activities - The City has two major Enterprise Funds, the Water Fund and the Pico Rivera Innovative Municipal Energy (PRIME), which operated for the fourth full year in FY 2022-23. Revenue increased by $7.243 million, primarily due to Charges for Services revenue up by $5.664 million and capital grants of $2.519 million received from the Waer Replenishment District for the PFAS project.
Expenses decreased by $408 thousand. There are two notable items: $1.239 million less pension expenses allocated for the Water Fund, and the rising cost of the purchased power of $1.138 million in FY 2022-23.
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, 2023, the City's governmental funds reported a combined ending fund balance of $125.456 million, as shown on page 23. The fund balance categories of governmental funds displayed $26.900 million as nonspendable, $33.007 million as restricted, $28.904 million as committed, $34.302 million as assigned, and $2.343 million as unassigned. (Please refer to Note Number 12 of the Notes to Financial Statements for a detailed breakdown.)
The City reports four major governmental funds: the General Fund, the Special Revenue Housing Agency Section 8 Fund, the 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, which begins on page 94.
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
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 $82.303 million, an increase of $9.081 million from the previous year. The nonspendable amount is $26.900 million, the restricted amount is $1.336 million, the committed amount is $28.904 million, the assigned amount is $20.990 million, and the unassigned amount is $4.173 million.
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, $6.206 million in revenue was received, and $6.148 million was spent. The ending fund balance was $533 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, $93 thousand less was received compared to the prior year, and overall expenditures were $72 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 6/30/2023. 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 $13.405 million at June 30, 2023.
During the year, there was interest revenue of $265 thousand, a bond principal payment of $290 thousand and interest charges of $546 thousand in expenditures. The ending fund balance was $5.088 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, $13.508 million was received as revenue, mainly from charges for services, with expenses coming in at $7 million. During the year, there was a $274 thousand investment income and $461 thousand bond interest charges. The Water Fund's net position increased by $6.377 million from the prior year to $39.755 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 to purchase power and answer billing inquiries from Pico Rivera residents. The benefit is that the overhead (15)
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
is lower, and those cost savings have been passed on to residential and commercial customers.
During the year, revenues increased $5.975 million to $24.006 million, and operating expenses increased $1.713 million to $18.935 million from the prior year.
Please refer to pages 22 and 23 for the Balance Sheet of Governmental Funds, page 24 for the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position, pages 25 and 26 for the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds, and page 27 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 28 through 29.
Capital Assets Administration
The City's investments in capital assets at June 30, 2023 were $278.632 million (net of accumulated depreciation of $164.119 million) for its governmental activities and $59.178 million (net of accumulated depreciation of $25.715 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.
City of Pico Rivera
Capital Assets (Net of Accumulated Depreciation)
Fiscal Year ended June 30, 2023 and June 30, 2022
Additional information on the City's capital assets can be found in Note 5 to the basic financial statements on pages 54 to 55 of this report.
Debt Administration
As of June 30, 2023, the City had a total indebtedness of $ 112.636 million, an increase of $12.551 million.
Debt includes bonds, certificates of participation, pension obligations, post-employment benefits, lease obligations, 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 $94.794 million. Governmental activities total indebtedness increased by $11.385 million during the year, primarily due to the increase of net pension liabilities by $12.030 million with no significant changes in staffing.
Please refer to note 6 on pages 56 to 57 for further details. 2023 2022 2023 2022 2023 2022
Land* $ 120,696,364 $ 118,908,710 $ 18,174,060 $ 18,174,060 $ 13 8 ,8 7 0 ,4 2 4 $ 13 7 ,0 8 2 ,7 7 0 Structures & Impro vements 25,590,725 25,590,725 7,132,351 5,228,051 3 2 ,7 2 3 ,0 7 6 3 0 ,8 18 ,7 7 6 Furniture, Equipment & Vehicles 7,689,601 7,291,797 2,410,638 1,473,468 10 ,10 0 ,2 3 9 8 ,7 6 5 ,2 6 5 Infras tructure 252,352,928 247,089,714 17,692,287 17,692,287 2 7 0 ,0 4 5 ,2 15 2 6 4 ,7 8 2 ,0 0 1 Leas ed As s ets 111,108 111,108 - - 111,10 8 111,108
Co ns tructio n in pro gres s 36,310,556 22,684,844 12,118,244 4,302,493 48,428,800 26,987,337 Rights o f Way - - 5,579,916 5,579,916 5 ,5 7 9 ,9 16 5 ,5 7 9 ,9 16 Utility P lant - - 21,785,673 21,785,673 2 1,7 8 5 ,6 7 3 2 1,7 8 5 ,6 7 3 To tal Capital As s ets $ 442,751,282 $ 421,676,898 $ 84,893,169 $ 74,235,948 $ 5 2 7 ,6 4 4 ,4 5 1 $ 4 9 5 ,9 12 ,8 4 6 Les s depreciatio n (164,119,056) (158,124,564) (25,715,216) (24,337,669) (18 9 ,8 3 4 ,2 7 2 ) (18 2 ,4 6 2 ,2 3 3 ) Net Capital As s ets $ 278,632,226 $ 263,552,334 $ 59,177,953 $ 49,898,279 $ 3 3 7 ,8 10 ,17 9 $ 3 13 ,4 5 0 ,6 13 *Includes value o f "Water Rights " fo r Bus ines s -Type Activities Go v e rnm e nta l A c tiv itie s B us ine s s -Type A c tiv itie s To tal (17)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
Business-type activities - Overall, business-type debt at year-end is $17.842 million. Business-type activities total indebtedness increased during the year by $1.167 million due to the increase of net pension liabilities by $2.307 million with no significant changes in staffing; this increase has been offset by $1.125 million principal payment for the 1999 Water Authority Revenue Bonds. Please refer to note 6 on pages 57 to 58 for further details.
City of Pico Rivera
Outstanding Long-Term Liabilities
Fiscal Year ended June 30, 2023 and June 30, 2022
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The General Fund realized a $9.579 million operating surplus (operating revenues less operating expenditures) as of June 30, 2023. (When Transfer In/Transfer Out are included, the net change in fund balance was $9.048 million.)
The Fiscal Year 2023-24 General Fund budget is balanced. The City's sales tax and property tax revenues are projected to increase 2%-3% in FY 2023-24. Given the ongoing national economic challenges, including continuing inflation, constrained supply in the goods, services, and labor markets, more stringent Federal monetary policies and market volatility, the City will continue enhancing revenues and improving operational efficiency to ensure financial sustainability and security.
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 and 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 requests for additional financial information should be addressed to the Director of Administrative Services, City of Pico Rivera, California.
2023 2022 2023 2022 2022 2021
Bo nded Indebtednes s :
Revenue bonds $ 23,965,000 $ 24,960,000 $ 8,180,000 $ 9,305,000 $ 3 2 ,14 5 ,0 0 0 $ 3 4 ,2 6 5 ,0 0 0 Certificates o f P articipatio n 13,405,000 13,695,000 - - 13 ,4 0 5 ,0 0 0 13 ,6 9 5 ,0 0 0 Bo nd premium 2,730,302 2,887,775 232,506 272,364 2 ,9 6 2 ,8 0 8 3 ,16 0 ,13 9 Bo nd dis co unt - - - - - -
Other lo ng-term debt:
Net pens io n liabilities 35,272,270 23,242,557 7,520,930 5,214,285 42,793,200 28,456,842 Other po s t-emplo yment benefits 15,511,905 14,846,687 1,609,402 1,594,827 17 ,12 1,3 0 7 16 ,4 4 1,5 14 Claims and judgements 2,190,000 2,308,000 - - 2 ,19 0 ,0 0 0 2 ,3 0 8 ,0 0 0 Compensated absences 1,719,281 1,468,505 299,293 288,947 2 ,0 18 ,5 7 4 1,7 5 7 ,4 5 2 To tal Indebtednes s $ 94,793,758 $ 83,408,524 $ 17,842,131 $ 16,675,423 $ 112 ,6 3 5 ,8 8 9 $ 10 0 ,0 8 3 ,9 4 7 Go v e rnm e nta l A c tiv itie s B us ine s s -Type A c tiv itie s To tal
CITY OF PICO RIVERA, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(18)
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 95,407,096 $ 20,847,087 $ 116,254,183 $ Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 6,829,385 1,083,143 7,912,528 Escrow Deposits 2,339 - 2,339
Receivables, Net:
Accounts 6,209,115 6,383,280 12,592,395
Taxes 7,147,881 - 7,147,881
Interest 458,680 71,404 530,084
Internal Balances 19,701,636 (19,701,636) -
Inventories 3,825 - 3,825
Prepaid Items 152,617 - 152,617
Long-Term Receivables 3,855,366 - 3,855,366
Land Held for Resale 1,701,360 - 1,701,360
Receivables from Successor Agency 192,770 15,070,401 15,263,171 Capital Assets, Not Depreciated 157,006,920 35,872,220 192,879,140 Capital Assets, Depreciated, Net 121,625,306 23,305,733 144,931,039 Total Assets 435,171,927 68,054,001 503,225,928
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding - 1,474,284 1,474,284
Amounts Related to OPEB 2,147,827 222,843 2,370,670
Amounts Related to Pension Plans 9,527,268 2,032,862 11,560,130 Total Deferred Outflows of Resources 13,149,379 2,255,705 15,405,084
LIABILITIES
Accounts Payable 7,780,790 3,075,905 10,856,695
Accrued Interest Payable 346,422 74,983 421,405
Accrued Liabilities 847,771 513,715 1,361,486
Deposits 901,332 609,557 1,510,889
Retention Payable 416,907 155,309 572,216
Unearned Revenue 5,824,425 14,953 5,839,378
Due to Other Agencies 3,849,131 - 3,849,131
Long-Term Liabilities:
Due Within One Year 2,470,699 1,219,929 3,690,628
Due in More Than One Year:
Long-Term Liabilities 41,600,203 7,491,870 49,092,073
Net OPEB Liability 15,511,905 1,609,402 17,121,307
Net Pension Liability 35,272,270 7,520,930 42,793,200
Total Liabilities 114,821,855 22,286,553 137,108,408
DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 4,569,717 474,121 5,043,838
Amounts Related to Pension Plans 1,462,001 312,273 1,774,274 Total Deferred Inflows of Resources 6,031,718 786,394 6,818,112
NET POSITION
Net Investment in Capital Assets 244,677,341 50,610,138 295,287,479 Restricted for Community Development 10,896,869 - 10,896,869 Restricted for Transportation 14,552,153 - 14,552,153
Restricted for Low- and Moderate-Income Housing - 3,259,813 3,259,813 Restricted for Pension Contribution 1,288,720 - 1,288,720 Restricted for Other Purposes 1,187,098 - 1,187,098
Unrestricted 51,605,739 (3,373,379) 48,232,360
Total Net Position $ 327,467,733 $ 47,236,759 $ 374,704,492
CITY OF PICO RIVERA, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(19)
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
FUNCTIONS/PROGRAMS
Governmental Activities:
General Government 10,634,542 $ 1,161,745 $ 3,062,648 $ - $ Public Safety 1,144,044 12,661,589 214,702 -
Public Works 15,857,499 991,248 7,012,517 3,207,183
Parks and Recreation 8,540,605 487,136 1,857,430 -
Health and Welfare 7,274,930 184,645 1,598,505 -
Community Development 5,957,282 2,003,316 8,300,578 -
Interest and Fiscal Charges 1,394,492 - - -
Total Governmental Activities 62,320,939 5,972,134 22,046,380 3,207,183 Business-Type Activities:
Water 7,461,720 10,989,386 - 2,518,595
Pico Rivera Innovative Municipal Energy 24,006,009 18,935,357 246,661 - Sports Arena (2,795) 318,378 - -
Golf 1,420,585 755,542 - -
Total Business-Type Activities 27,814,867 36,069,315 246,661 2,518,595 Total $ 90,135,806 $ 42,041,449 $ 22,293,041 $ 5,725,778
GENERAL REVENUES
Taxes:
Property
Sales and Use
Franchise
Utility Users
Other
Unrestricted Investment Earnings
Gain on sale of capital assets
Miscellaneous
Transfers
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, 2023
See accompanying Notes to Financial Statements.
(20)
Governmental Business-Type
Activities Activities Total
$ - (6,410,149) $ $ (6,410,149)
- (11,302,843) (11,302,843)
- (4,646,551) (4,646,551)
- (6,196,039) (6,196,039)
- (5,491,780) (5,491,780)
- 4,346,612 4,346,612
- (1,394,492) (1,394,492)
- (31,095,242) (31,095,242)
6,046,261 - 6,046,261
5,317,313 - 5,317,313
321,173 - 321,173
- (665,043) (665,043)
11,019,704 - 11,019,704
11,019,704 (31,095,242) (20,075,538)
- 15,016,822 15,016,822
- 25,116,979 25,116,979
- 2,063,404 2,063,404
- 4,001,578 4,001,578
- 3,867,144 3,867,144
423,345 2,035,505 2,458,850
928,625 - 928,625
- 1,793,456 1,793,456
56,438 (56,438) -
479,783 54,767,075 55,246,858
11,499,487 23,671,833 35,171,320
35,737,272 303,795,900 339,533,172
$ 47,236,759 327,467,733 $ 374,704,492 $
Changes in Net Position
Net (Expense) Revenue and
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CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF MAJOR FUNDS
JUNE 30, 2023
(21)
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. 2018 Series A COP Capital Projects Fund accounts for activity related to the City’s capital projects that are funded by the 2018 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, 2023
See accompanying Notes to Financial Statements.
(22)
Housing American
Agency Rescue
General Section 8 Plan
ASSETS
Cash and Investments 47,223,118 $ 551,892 $ 4,544,655 $ Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 1,288,720 - -
Escrow Deposits - 2,339 -
Receivables:
Accounts 153,258 - -
Taxes 6,679,717 - -
Interest 322,298 - -
Due from Other Funds 2,347,765 - -
Inventories 3,825 - -
Advance to Other Funds 19,877,636 - -
Long-Term Receivables - - -
Prepaid Items 147,363 - -
Land Held for Resale 1,701,360 - -
Receivables from Successor Agency 13,557,003 - -
Total Assets $ 93,302,063 $ 554,231 $ 4,544,655
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 2,240,838 $ 3,207 $ -
Accrued Liabilities 780,674 15,580 -
Due to Other Funds 176,000 - -
Deposits 898,993 2,339 -
Retention Payable - - -
Unearned Revenue 202,011 - 4,544,655
Due to Other Agencies - - -
Total Liabilities 4,298,516 21,126 4,544,655
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 6,733,576 - -
Total Deferred Inflows of Resources 6,733,576 - -
FUND BALANCES (DEFICIT)
Nonspendable 26,900,752 - -
Restricted 1,335,720 533,105 -
Committed 28,903,778 - -
Assigned 20,990,019 - -
Unassigned 4,139,702 - -
Total Fund Balances (Deficit) 82,269,971 533,105 -
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 93,302,063 $ 554,231 $ 4,544,655 Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
BALANCE SHEET (CONTINUED)
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(23)
Capital Projects
Other Total
2018 Series A Governmental Governmental
COP Funds Funds
$ 42,120,982 100,833 $ 94,541,480 $
- 5,540,665 6,829,385
- - 2,339
- 6,055,857 6,209,115
- 468,164 7,147,881
- 131,907 454,205
- - 2,347,765
- - 3,825
- - 19,877,636
- 3,855,366 3,855,366
- 5,254 152,617
- - 1,701,360
- 1,513,398 15,070,401
$ 5,641,498 $ 54,150,928 $ 158,193,375
$ 519,714 $ 5,017,031 $ 7,780,790
9 51,508 847,771
- 2,347,765 2,523,765
- - 901,332
34,276 382,631 416,907
- 1,077,759 5,824,425
- 3,849,131 3,849,131
553,999 12,725,825 22,144,121
- 3,859,227 10,592,803
- 3,859,227 10,592,803
- - 26,900,752
5,087,499 26,083,500 33,039,824
- - 28,903,778
- 13,312,296 34,302,315
- (1,829,920) 2,309,782
5,087,499 37,565,876 125,456,451
$ 5,641,498 $ 54,150,928 $ 158,193,375
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, 2023
See accompanying Notes to Financial Statements.
(24)
Fund Balances (Deficits) for Governmental Funds $ 125,456,451 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 $ 441,952,014
Lease Assets 60,138
Less: Accumulated Depreciation (163,771,232)
Subtotal 278,240,920
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. 10,592,803 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. 1,261,397
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 (1,719,281)
Claims Payable (2,190,000)
Accrued Interest Payable (346,422)
Lease Liability (61,319)
Revenue Bonds Payable (40,100,302)
Deferred Amount on Refunding 1,474,284
Subtotal (42,943,040)
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 2,147,827 Deferred Inflows of Resources Related to OPEB (4,569,717) Net OPEB Liability (15,511,905)
Deferred Outflows of Resources Related to Pensions 9,527,268 Deferred Inflows of Resources Related to Pensions (1,462,001) Net Pension Liability (35,272,270)
Subtotal (45,140,798)
Net Position of Governmental Activities 327,467,733 $
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(25)
Housing American
Agency Rescue
General Section 8 Plan
REVENUES
Taxes and Assessments $ 44,582,928 $ - $ -
Licenses and Permits 5,776,946 - -
Intergovernmental 261,178 6,172,837 -
Charges for Services 1,561,583 - -
Fines, Forfeitures, and Penalties 1,171,765 - -
Investment and Rental 1,023,396 446 -
Miscellaneous 2,117,855 32,558 -
Total Revenues 56,495,651 6,205,841 -
EXPENDITURES
Current:
General Government 10,960,163 - -
Public Safety 12,651,644 - -
Public Works 10,051,681 - -
Parks and Recreation 5,880,692 - -
Health and Welfare - 6,147,787 -
Community Development 5,988,525 - -
Capital Outlay 364,171 - -
Debt Service:
Principal 995,000 - -
Interest and Fiscal Charges 926,250 - -
Lease Principal 25,205 - -
Lease Interest 1,876 - -
Total Expenditures 47,845,207 6,147,787 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 8,650,444 58,054 -
OTHER FINANCING SOURCES (USES):
Transfers In 1,847,348 - -
Transfers Out (2,378,608) - -
Sale of Capital Assets 928,625 - -
Total Other Financing Sources (Uses) 397,365 - -
NET CHANGE IN FUND BALANCES 9,047,809 58,054 -
Fund Balances (Deficits) - Beginning of Year 475,051 73,222,162 - FUND BALANCES (DEFICITS) - END OF YEAR $ 533,105 82,269,971 $ - $ Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(26)
Capital
Projects Fund
2018 Other Total
Series A Governmental Governmental
COP Funds Funds
$ - $ 2,117,129 $ 46,700,057
- - 5,776,946
- 16,264,085 22,698,100
- 777,380 2,338,963
- - 1,171,765
265,256 542,454 1,831,552
- 93,173 2,243,586
265,256 19,794,221 82,760,969
- 628 10,960,791
- - 12,651,644
- 3,443,088 13,494,769
- 1,715,243 7,595,935
- 1,127,143 7,274,930
- 184,369 6,172,894
7,554,545 11,117,856 19,036,572
290,000 - 1,285,000
546,172 - 1,472,422
- - 25,205
- - 1,876
8,390,717 17,588,327 79,972,038
(8,125,461) 2,205,894 2,788,931
836,169 2,378,608 5,062,125
- (2,683,517) (5,062,125)
- - 928,625
836,169 (304,909) 928,625
(7,289,292) 1,900,985 3,717,556
12,376,791 35,664,891 121,738,895
$ 5,087,499 $ 37,565,876 $ 125,456,451
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, 2023
See accompanying Notes to Financial Statements.
(27)
Net Change in Fund Balances - Total Governmental Funds $ 3,717,556 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 $ 21,208,515
Loss on Disposal (710)
Transfer of assets (56,438)
Depreciation Expense (6,462,781)
Subtotal 14,688,586
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 191,915
Grant and Other Revenue Not Available to Pay
for Current-Period Expenditures 2,153,377
Subtotal 2,345,292
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 118,000
Net Change in Compensated Absences (250,776)
Subtotal (132,776)
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 1,285,000
Principal Payments on Lease Liabilities 25,205
Amortization of Deferred Bond Charges 65,331
Change in Accrued Interest 14,475
Subtotal 1,390,011
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. 216,186 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. 1,374,823 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. 72,155
Change in Net Position of Governmental Activities $ 23,671,833
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(28)
Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund
ASSETS
Current Assets:
Cash and Investments 12,154,901 $ $ 7,894,845 $ 797,341 $ 20,847,087 $ 865,616 Receivables, Net:
Accounts 1,508,658 4,814,421 60,201 6,383,280 -
Interest 67,669 - 3,735 71,404 4,475
Due from Successor Agency 176,000 - - 176,000 -
Total Current Assets 13,907,228 12,709,266 861,277 27,477,771 870,091 Noncurrent Assets:
Restricted Cash and Investments
with Fiscal Agent 883,143 200,000 - 1,083,143 -
Receivables from Successor Agency 192,770 - 192,770 - - Capital Assets, Not Depreciated 35,829,907 - 42,313 35,872,220 - Capital Assets, Depreciated, Net 23,070,834 - 234,899 23,305,733 391,306 Total Noncurrent Assets 59,976,654 200,000 277,212 60,453,866 391,306 Total Assets 73,883,882 12,909,266 1,138,489 87,931,637 1,261,397
DEFERRED OUTFLOWS OF RESOURCES
Amounts Related to OPEB 196,766 26,077 - 222,843 -
Amount Related to Pensions 1,882,707 118,969 31,186 2,032,862 - Total Deferred Outflows of Resources 2,079,473 145,046 31,186 2,255,705 -
LIABILITIES
Current Liabilities:
Accounts Payable 1,367,819 1,605,692 102,394 3,075,905 - Accrued Interest Payable 74,983 - - 74,983 -
Accrued Liabilities 113,983 343,077 56,655 513,715 -
Unearned Revenue 14,953 - - 14,953 -
Deposits 609,557 - 609,557 - -
Retentions Payable 155,309 - 155,309 - -
Bonds Payable - Current Portion 1,190,000 - 1,190,000 - - Compensated Absences - Current Portion 28,032 1,898 - 29,929 - Total Current Liabilities 3,554,636 1,950,667 159,049 5,664,351 - Noncurrent Liabilities:
Advance from Other Funds 16,084,289 - 3,793,347 19,877,636 - Bonds Payable 7,222,506 - - 7,222,506 -
Compensated Absences 252,285 17,078 - 269,364 -
Net OPEB Liability 1,421,068 188,334 - 1,609,402 -
Net Pension Liability 6,965,407 440,145 115,378 7,520,930 - Total Noncurrent Liabilities 31,945,555 645,557 3,908,725 36,499,838 - Total Liabilities 35,500,191 2,596,224 4,067,774 42,164,189 -
DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 418,639 55,482 - 474,121 -
Amounts Related to Pensions 289,207 18,275 4,791 312,273 - Total Deferred Inflows of Resources 707,846 73,757 4,791 786,394 -
NET POSITION
Net Investment in Capital Assets 50,332,926 - 277,212 50,610,138 - Unrestricted (10,577,608) 10,384,331 (3,180,102) (3,373,379) 1,261,397 Total Net Position $ 39,755,318 $ 10,384,331 $ (2,902,890) $ 47,236,759 $ 1,261,397 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, 2023
See accompanying Notes to Financial Statements.
(29)
Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund
OPERATING REVENUES
Charges for Services $ 10,980,819 $ 23,848,107 $ 1,073,920 $ 35,902,846 $ - Miscellaneous 8,567 157,902 - 166,469 226,950
Total Operating Revenues 10,989,386 24,006,009 1,073,920 36,069,315 226,950
OPERATING EXPENSES
Cost of Power - 17,747,976 - 17,747,976 -
Salaries and Benefits 2,374,453 243,012 81,859 2,699,324 - Contractual Services (275,385) 665,906 52,595 443,116 - Insurance Claims and Expenses 275,926 132 1,207 277,265 - Administrative 2,691,469 278,331 915,642 3,885,442 -
Utilities 436,968 - 243,745 680,713 -
Repairs and Maintenance 332,656 - 92,875 425,531 5,340
Depreciation 1,164,029 - 29,867 1,193,896 19,748
Total Operating Expenses 7,000,116 18,935,357 1,417,790 27,353,263 25,088 OPERATING INCOME (LOSS) 3,989,270 5,070,652 (343,870) 8,716,052 201,862
NONOPERATING REVENUES
(EXPENSES)
Investment Income 274,132 136,884 12,329 423,345 14,324 Grants 2,518,595 246,661 - 2,765,256 -
Interest Expense (461,604) - - (461,604) -
Total Nonoperating
Revenues (Expenses) 383,545 2,331,123 12,329 2,726,997 14,324
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS 6,320,393 5,454,197 (331,541) 11,443,049 216,186 CAPITAL CONTRIBUTIONS 56,438 - - 56,438 -
NET INCOME (LOSS) 6,376,831 5,454,197 (331,541) 11,499,487 216,186
SPECIAL ITEM
Forgiveness of Debt - - - - -
CHANGES IN NET POSITION 6,376,831 5,454,197 (331,541) 11,499,487 216,186 Net Position - Beginning of Year 33,378,487 4,930,134 (2,571,349) 35,737,272 1,045,211 NET POSITION - END OF YEAR $ 39,755,318 $ 10,384,331 $ (2,902,890) $ 47,236,759 $ 1,261,397 Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(30)
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 11,387,770 $ 23,059,489 $ 1,135,311 $ 35,582,570 $ 226,950 $ Payments to Suppliers (2,699,803) (19,539,067) (1,379,676) (23,618,546) (8,200) Payments to Employees (2,862,260) (230,040) (82,471) (3,174,771) - Net Cash Provided (Used) by Operating Activities 5,825,707 3,290,382 (326,836) 8,789,253 218,750
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Grants received - 246,661 - 246,661 -
Cash Received from Other Funds - (3,383,115) 717,239 (2,665,876) - Net Cash Provided (Used) by Noncapital Activities - (3,136,454) 717,239 (2,419,215) -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of Capital Assets (10,392,887) - (24,245) (10,417,132) (411,054) Capital grants received 2,518,595
Principal Retired (1,125,000) - - (1,125,000) -
Interest Paid (511,775) - - (511,775) -
Net Cash Used by Capital and
Related Financing Activities (9,511,067) - (24,245) (9,535,312) (411,054)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 220,614 136,884 8,975 366,473 11,003
Net Cash Provided by Investing Activities 220,614 136,884 8,975 366,473 11,003
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 290,812 (3,464,746) 375,133 (2,798,801) (181,301) Cash and Cash Equivalents - Beginning of Year 16,502,790 7,804,033 422,208 24,729,031 1,046,917 CASH AND CASH EQUIVALENTS - END OF YEAR $ 8,094,845 13,038,044 $ 797,341 $ 21,930,230 $ 865,616 $ Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(31)
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) 3,989,270 $ 5,070,652 $ (343,870) $ 8,716,052 $ 201,862 $ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 1,164,029 - 29,867 1,193,896 19,748
Changes in Operating Assets, Deferred Outflows of
Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable 381,366 (946,520) 61,391 (503,763) - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to OPEB (4,552) (8,799) - (13,351) - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to Pensions (1,192,501) (64,908) (19,683) (1,277,092) - Increase (Decrease) in Accounts Payable 646,549 (846,722) (93,499) (293,672) (2,860) Increase (Decrease) in Accrued Liabilities (29,065) 79,260 1,332 51,527 - Increase (Decrease) in Unearned 4,095 - - 4,095 -
Increase (Decrease) in Deposits Payable 12,923 - (1,800) 11,123 - Increase (Decrease) in Retentions Payable 115,282 - - 115,282 - Increase (Decrease) in Net OPEB Liability (42,227) 56,802 - 14,575 - Increase (Decrease) in Net Pension Liability 2,203,465 67,163 36,017 2,306,645 - Increase (Decrease) in Compensated Absences 24,527 (14,181) - 10,346 - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to OPEB (213,344) (1,325) - (214,669) - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions (1,234,110) (101,040) (20,596) (1,355,746) - Total Adjustments 1,836,437 (1,780,270) 17,034 73,201 16,888 Net Cash Provided (Used) by Operating Activities 5,825,707 $ 3,290,382 $ (326,836) $ 8,789,253 $ 218,750 $ Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(32)
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, 2023
See accompanying Notes to Financial Statements.
(33)
Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and Investments $ 5,713,882
Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 1,958
Accounts Receivable 1,026
Interest Receivable 37,322
Loans Receivable 322,627
Capital Assets:
Capital Assets, Not Depreciated 258,023
Capital Assets, Depreciated, Net 52,291
Total Assets 6,387,129
DEFERRED OUTFLOWS OF RESOURCES
Loss on Refunding 553,069
LIABILITIES
Accounts Payable 2,080
Accrued Liabilities 2,369
Interest Payable 12,545
Payable to City of Pico Rivera 48,282,876
Payable to Pico Rivera Housing Assistance Agency 1,513,398 Payable to the County of Los Angeles 45,939,514
Bond payable 9,970,000
Total Liabilities 105,722,782
NET POSITION
Held in Trust for Successor Agency (98,782,584)
Total Net Position $ (98,782,584)
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(34)
Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ADDITIONS
Taxes $ 3,824,139
Contributions 1,065,000
Sale of Property 90,838
Investment Earnings 123,024
Total Additions 5,103,001
DEDUCTIONS
Administrative Expenses 248,090
Interest 1,983,308
Depreciation 4,765
Total Deductions 2,236,163
CHANGE IN NET POSITION 2,866,838
Net Position - Beginning of Year (101,649,422)
NET POSITION - END OF YEAR $ (98,782,584)
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CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2023
(36)
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, 2023
(37)
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, 2023
(38)
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, 2023
(39)
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 96
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a rightto-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosure regarding SBITA. This statement had no effect on the City.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(40)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(41)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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.
Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.
SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term.
SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(42)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Land Held for Resale
Land held for resale is carried at the lower of acquisition cost or fair value.
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 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 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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(43)
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 an 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.
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.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(44)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(45)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. Fund Balances (Continued)
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.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(46)
NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2023 are classified in the accompanying financial statements as follows:
Government Fiduciary
Wide Funds Total
Unrestricted Assets:
Cash and Investments $ 116,254,183 $ 5,713,882 $ 121,968,065 Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 7,912,528 1,958 7,914,486 Escrow Deposits 2,339 - 2,339
Total Cash and Investments $ 124,169,050 $ 5,715,840 $ 129,884,890 Statement of Net Position
Cash and investments at June 30, 2023 consisted of the following:
Cash on Hand $ 6,295
Deposits with Financial Institutions 15,679,660
Investments 114,198,935
Total Cash and Investments $ 129,884,890
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, 2023
(47)
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, 2023
(48)
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 to 60
Investment Type or Less Months Months Total
Local Agency Investment Fund 75,195,173 $ - $ - $ 75,195,173 $ U.S. Government Sponsored
Agency Securities 3,070,079 189,354 707,112 3,966,545
U.S. Treasury Notes 5,663,782 2,889,344 6,181,602 14,734,728 Money Market Mutual Funds 184,301 - - 184,301
Collateralized Mortgage Obligations 164,759 - 1,392,836 1,557,595 Supranational 506,671 634,795 - 1,141,466
Medium-Term Notes 2,165,641 1,941,658 5,597,341 9,704,640 Held by Fiscal Agent:
Money Market Mutual Funds 6,425,767 - - 6,425,767
PARS Trust Pooled Investments 1,288,720 - - 1,288,720
Total 94,664,893 $ 5,655,151 $ 13,878,891 $ 114,198,935 $ 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, 2023 AAA AA+ AA Other Rated Local Agency Investment Fund N/A 75,195,173 $ - $ - $ - $ - $ 75,195,173 $ U.S. Government Sponsored
Agency Securities N/A 3,966,545 - 3,966,545 - - -
U.S. Treasury Notes* N/A 14,734,728 - - - - 14,734,728
Money Market Mutual Funds N/A 184,301 184,301 - - - -
Supranational A 1,141,466 1,141,466 - - - -
Collateralized Mortgage Obligations A 1,557,595 947,072 - - - 610,523 Certificates of Deposits - - -
Medium-Term Notes A 9,704,640 1,731,505 389,388 1,030,298 5,719,306 834,143 Held by Fiscal Agent:
Money Market Mutual Funds N/A 6,425,767 6,425,767 - - - - PARS Trust Pooled Investments N/A 1,288,720 - - - - 1,288,720 Total 114,198,935 $ 10,430,111 $ 4,355,933 $ 1,030,298 $ 5,719,306 $ 92,663,287 $ 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, 2023
(49)
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, 2023 A+ A AMedium-Term Notes 5,719,306 $ 2,312,099 $ 2,540,222 $ 866,985 $ 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, 2023, 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, 2023
(50)
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 - $ 1,141,466 $ - $ 1,141,466 $
Collateralized Mortgage Obligations - 1,557,595 - 1,557,595 Medium-Term Notes - 9,704,640 - 9,704,640
U.S. Treasury Notes - 14,734,728 - 14,734,728
U.S. Government Sponsored
Agency Securities - 3,966,545 - 3,966,545
Total Leveled Investments - $ 31,104,974 $ - $ 31,104,974 Investments Not Subject to Fair Value Hierarchy:
Local Agency Investment Fund 75,195,173
Money Market Mutual Funds 184,301
Held by Trustee:
Money Market Mutual Funds 6,425,767
PARS Trust Pooled Investments 1,288,720
Total Investment Portfolio $ 114,198,935
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(51)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2023, 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 3,793,347
Total $ 19,877,636
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 2022-23. The balance of the advance at June 30, 2023, 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 15 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, 2023, is as follows:
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 2,347,765
Water Operations Enterprise Fund General Fund 176,000
Total $ 2,523,765
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, 2023
(52)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) Transfers
Transfers Out Transfers In Amount
General Fund Other Governmental Funds (1) $ 2,378,608
Other Governmental Funds General Fund (2) 1,847,348
2018 Series A COP Capital Projects
Fund (3) 836,169
Total $ 5,062,125
(1) The General Fund transferred $2,290,695 to Other Governmental for approved capital outlays and $87,913 to Other Governmental to subsidize expenditures. (2) The Other Governmental Funds – State Gas Tax Fund and Lighting Assessment District Fund transferred $1,557,851 and $289,497, respectively to General Fund for approved street maintenance activities and capital outlays.
(3) The Other Governmental Fund – Measure M transferred $836,169 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, 2023 is $2,570,592 and is included in the HOME Grant Special Revenue Fund. At June 30, 2023, the City has an allowance of $845,014 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, 2023 totaled $176,409. At June 30, 2023, the City has an allowance of $42,179 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.
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, 2023 is $1,102,130.
At June 30, 2023, the City has an allowance of $146,741 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, 2023
(53)
NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
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 $42,209 allowance, were zero at June 30, 2023.
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. All sums unpaid at maturity shall thereafter bear interest at the rate of ten percent (10%) per annum. The outstanding principal and interest balance at June 30, 2023 was $287,050 and $149,283, respectively.
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 18,076,005 $ - $ 257,027 $ Sales Tax Deferral Loan to Allow Former
Redevelopment Agency to Meet its Debt
Service Obligations 29,949,844 - -
Loans to Make Payments to Supplemental
Educational Revenue Augmentation Fund - 1,513,398 -
Purchase of Former Redevelopment Agency's Tax
Allocation Bonds, Series 2001 Treated as a Loan
(See Note 15 for details) - - -
Subtotal 48,025,849 1,513,398 257,027
Reserve on Long-Term Loans - (4,519,002) (64,257)
Reserve on Sales Tax Deferral Loan - (29,949,844) -
Total 13,557,003 $ 1,513,398 $ 192,770 $
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(54)
NOTE 5 CAPITAL AND LEASE ASSETS
Governmental Activities
Capital and leased asset activity for the year ended June 30, 2023, was as follows:
Balance at Balance at
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital Assets, Not Being
Depreciated:
Land 118,908,710 $ 1,787,654 $ - $ - $ 120,696,364 $
Construction in Progress 22,684,844 18,889,636 (710) (5,263,214) 36,310,556 Total Capital Assets, Not
Being Depreciated 141,593,554 20,677,290 (710) (5,263,214) 157,006,920 Capital Assets, Being Depreciated
and Amortized
Structures and Improvements 25,590,725 - - - 25,590,725 Furniture and Equipment 7,291,797 942,279 (304,386) (240,089) 7,689,601 Infrastructure 247,089,714 - 5,263,214 252,352,928
Right to Use Asset - Equipment 111,108 - - - 111,108
Total Capital Assets, Being
Depreciated and Amortized 280,083,344 942,279 (304,386) 5,023,125 285,744,362 Less Accumulated Depreciation for:
Structures and Improvements (13,120,992) (555,867) - - (13,676,859) Furniture and Equipment (5,971,704) (239,483) 304,386 183,651 (5,723,150) Infrastructure (139,006,383) (5,661,694) - - (144,668,077) Less Accumulated Amortization for:
Right to Use Asset - Equipment (25,485) (25,485) - - (50,970) Total Accumulated
Depreciation (158,124,564) (6,482,529) 304,386 183,651 (164,119,056) Total Capital Assets, Being
Depreciated Amortized, Net 121,958,780 (5,540,250) - 5,206,776 121,625,306 Governmental Activities
Capital and Leased Assets 263,552,334 $ 15,137,040 $ (710) $ (56,438) $ 278,632,226 $ Depreciation expense was charged to functions of the governmental activities as follows:
General Government $ 395,487
Public Safety 9,945
Public Works 4,879,040
Parks and Recreation 1,164,219
Community Development 8,353
Total Depreciation Expense 6,457,044 $
Amortization expense was charged to general government.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(55)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2023, was as follows:
Balance at Balance at
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital Assets, Not Being
Depreciated:
Land 18,174,060 $ - $ - $ - $ 18,174,060 $
Rights of Way 5,579,916 - - - 5,579,916
Construction in Progress 4,302,493 7,815,751 - - 12,118,244 Total Capital Assets, Not
Being Depreciated 28,056,469 7,815,751 - - 35,872,220
Capital Assets, Being Depreciated:
Structures and Improvements 5,228,051 1,904,300 - - 7,132,351 Utility Plant in Service 21,785,673 - - - 21,785,673
Equipment 1,473,468 697,081 - 240,089 2,410,638
Infrastructure 17,692,287 - - - 17,692,287
Total Capital Assets,
Being Depreciated 46,179,479 2,601,381 - 240,089 49,020,949 Less Accumulated Depreciation for:
Structures and Improvements (4,277,493) (51,027) - - (4,328,520) Utility Plant in Service (8,344,891) (367,624) - - (8,712,515) Equipment (1,055,025) (349,389) - (183,651) (1,588,065) Infrastructure (10,660,260) (425,856) - - (11,086,116)
Total Accumulated
Depreciation (24,337,669) (1,193,896) - (183,651) (25,715,216) Total Capital Assets,
Being Depreciated, Net 21,841,810 1,407,485 - 56,438 23,305,733 Business-Type Activities
Capital Assets, Net 49,898,279 $ 9,223,236 $ - $ 56,438 $ 59,177,953 $ Depreciation expense was charged to functions of the business-type activities as follows:
Water Operations $ 1,164,029
Sports Arena 1,718
Golf Course 28,149
Total Depreciation Expense 1,193,896 $
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(56)
NOTE 6 LONG-TERM LIABILITIES
Changes in long-term liabilities activity for the year ended June 30, 2023, were as follows:
Balance at Balance at Due Within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Governmental Activities:
Other Debt:
2016 Lease Revenue Bonds 24,960,000 $ - $ (995,000) $ 23,965,000 $ 1,030,000 $ 22,935,000 $ Bond Premium 2,278,210 - (134,028) 2,144,182 - 2,144,182 2018 Series A Certificates
of Participation 13,695,000 - (290,000) 13,405,000 300,000 13,105,000 Bond Premium 609,565 - (23,445) 586,120 - 586,120
Other Liabilities:
Lease Liability 86,524 (25,205) 61,319 25,843 35,476
Compensated Absences 1,468,505 992,004 (741,228) 1,719,281 343,856 1,375,425 Claims and Judgements 2,308,000 233,100 (351,100) 2,190,000 771,000 1,419,000 Total Governmental
Activities 45,405,804 $ 1,225,104 $ (2,560,006) $ 44,070,902 $ 2,470,699 $ 41,600,203 $ Business-Type Activities:
Other Debt:
Revenue Bonds Payable 9,305,000 $ - $ (1,125,000) $ 8,180,000 $ 1,190,000 $ 6,990,000 $ Add (Less):
Bond Premium 272,364 - 232,506 (39,858) - 232,506
Subtotal Revenue
Bonds Payable 9,577,364 - (1,164,858) 8,412,506 1,190,000 7,222,506 Other Liabilities:
Compensated Absences 288,947 156,876 (146,530) 299,293 29,929 269,364 Total Business-Type
Activities 9,866,311 $ 156,876 $ (1,311,388) $ 8,711,799 $ 1,219,929 $ 7,491,870 $ Governmental Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amounts of $1,719,281 at June 30, 2023 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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(57)
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
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 1,175,000 749,550 1,924,550
2029 - 2033 6,520,000 3,016,556 9,536,556
2033 - 2037 8,255,000 1,265,006 9,520,006
2038 - 2040 3,705,000 111,975 3,816,975
Total $ 23,965,000 $ 8,504,512 $ 32,469,512
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
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 370,000 466,419 836,419
2029 - 2033 2,130,000 2,037,094 4,167,094
2033 - 2037 2,670,000 1,501,106 4,171,106
2038 - 2042 3,170,000 998,725 4,168,725
2043 - 2047 3,760,000 404,075 4,164,075
Total $ 13,405,000 $ 7,440,345 $ 20,845,345
Business-Type Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amount of $299,293 at June 30, 2023 is expected to be paid in future years from future resources.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2023, is $600,000.
Annual debt service for the Series 1999 A bonds is as follows:
Year Ending June 30, Principal Interest Total
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 $ 8,180,000 $ 1,643,950 $ 9,823,950
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.
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.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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NOTE 7 COMMITMENTS AND CONTINGENCIES (CONTINUED)
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, 2023 totaled $272,364.
NOTE 8 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2023:
Deferred Deferred Pension
Pension Outflows Inflows Expense
Liability of Resources of Resources (Credit)
Miscellaneous Plan 42,732,558 $ 11,550,349 $ $ 4,089,334 (1,774,274) $ Council Plan 60,642 9,781 - 11,728
Total 42,793,200 $ 11,560,130 $ (1,774,274) $ 4,101,062 $ 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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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 hired 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, 2022, 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 Sche 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 Compensati 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required Employee C 7.30% 7.30% 6.75%
Required Employer Contribution Rates:
Normal Cost Rate 9.380% 11.290% 7.860%
Payment of Unfund $ - 3,328,789 $ - $
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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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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 270 5
Inactive Employees Entitled to But
Not Yet Receiving Benefits 155 2
Active Employees 142 1
Total 567 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, 2023, the City contributed $4,587,084 and $3,591 to the Miscellaneous Plan and Council Plan, respectively.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The net pension liability of the Council Plan is measured as of June 30, 2023, using an actuarial valuation date of June 30, 2021. 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, 2021 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Council Plan
Valuation Date June 30, 2021 June 30, 2021
Measurement Date June 30, 2022 June 30, 2023
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Normal Cost
Method Method
Actuarial Assumptions:
Discount Rate 6.90% 6.50%
Inflation 2.30% 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.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 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) Less of contract cost-of-living adjustments up to 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter.
Change of Assumptions
The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30% from the measurement date June 30, 2021 to June 30, 2022 for the CalPERS plan.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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 6.9% 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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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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
Strategic Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap-weighted 30.00% 4.45%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management Study.
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 5.00 % 0.51 % 0.49 %
U.S. Core Fixed Income 37.41 2.07 1.93
U.S. Broad Equity Market 44.24 5.56 3.90
Foreign Developed Equity 7.11 6.89 5.07
Emerging Markets Equity 4.47 9.58 6.18
U.S. REITs 1.77 6.96 4.74
Total 100.00 %
Assumed Inflation - Mean 2.32 % 2.32 %
Assumed Inflation Standard Deviation 1.42 % 1.42 %
Portfolio Real Mean Return 4.30 % 3.70 %
Portfolio Nominal Mean Return 6.62 % 6.12 %
Portfolio Standard Deviation 10.51 %
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2021
(Measurement Date) $ 95,291,367 123,686,546 $ 28,395,179 $ Changes in the Year:
Service Cost 1,902,845 - 1,902,845
Interest on the Total Pension Liability - 8,484,446 8,484,446 Differences between Expected and
Actual Experience - (2,724,330) (2,724,330)
Changes in Assumptions 4,188,315 - 4,188,315
Plan-to-Plan Resource Movement - - -
Contribution - Employer 4,024,396 - (4,024,396)
Contribution - Employee - 758,203 (758,203)
Net Investment Income - 7,209,341 (7,209,341)
Administrative Expenses - 59,361 (59,361)
Benefit Payments, Including Refunds
of Employee Contributions (6,277,953) - (6,277,953)
Net Changes 5,573,323 14,337,379 (8,764,056)
Balance at June 30, 2022
(Measurement Date) $ 86,527,311 129,259,869 $ 42,732,558 $ Increase (Decrease)
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2022
(Measurement Date) $ 161,224 222,887 $ 61,663 $
Changes in the Year:
Service Cost 748 - 748
Interest on the Total Pension Liability - 14,076 14,076 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 - 13,057 (13,057)
Administrative Expenses - (803) 803
Benefit Payments, Including Refunds
of Employee Contributions (14,372) (14,372) -
Net Changes 452 1,473 (1,021)
Balance at June 30, 2023
(Measurement Date) $ 162,697 223,339 $ 60,642 $
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
(5.9%) Rate (6.9%) (7.9%)
Net Pension Liability $ 59,980,815 $ 42,732,558 $ 28,501,945 Miscellaneous
1% Decrease Current Discount 1% Increase
(5.5%) Rate (6.5%) (7.5%)
Net Pension Liability $ 60,642 81,794 $ 42,889 $
Council
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2023, the City recognized pension expense of $4,089,334 and $11,728 for the miscellaneous and council plans, respectively. At June 30, 2023, 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 4,587,084 $ - $ Differences Between Expected and Actual Experience - (1,774,274) Change in Assumptions 2,637,087 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 4,326,178 -
Total Miscellaneous Plan 11,550,349 $ $ (1,774,274)
Differences Between Expected and Actual Experience - $ - $ Change in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Plan Investments 9,781 -
Total Council Plan 9,781 $ - $
An amount of $4,587,084 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, 2024. 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
2024 1,167,648 $ 2,202 $
2025 989,661 859
2026 286,457 7,308
2027 2,745,225 (588)
2028 - -
Thereafter - -
Payable to the Pension Plans
At June 30, 2023, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2023, the City’s payroll covered by the defined contribution plan was $1,728,604. The City made employer contributions of $64,824 (3.75% of current covered payroll), and employees contributed $64,824 (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, 2023
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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, 2022, 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 3
Active Employees 145
Total 261
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, 2023, the City’s cash contributions were $1,068,807 in cash benefit payments and $565,000 contributions to the trust, estimated implied subsidy was $140,000 and administrative expense paid by were $3,451 resulting in total contributions of $1,777,258.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, rolled forward to June 30, 2022 using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2022
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 6.50% 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, 2022, the measurement date, are summarized in the following table:
New Long-Term
Strategic Expected Real
Asset Class Allocation Rate of Return
CERBT:
Global Equity 49.00 % 4.56 %
Fixed Income 23.00 1.56
TIPS 5.00 (0.08)
Commodities 3.00 1.22
REITs 20.00 4.06
Total 100.00 %
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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
There were no changes in assumptions in the current measurement period.
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, 2021
(Measurement Date) $ 6,284,780 22,726,294 $ 16,441,514 $ Changes in the Year:
Service Cost 445,755 - 445,755
Interest on the Total
OPEB Liability - 1,410,651 1,410,651
Differences Between Actual
and Expected Experience - - -
Changes in Assumptions - - -
Changes in Benefit Terms - - -
Contribution - Employer 2,159,703 - (2,159,703)
Net Investment Income - 978,822 (978,822)
Administrative Expenses - 4,268 (4,268)
Benefit Payments (1,203,248) - (1,203,248)
Net Changes 653,158 679,793 (26,635)
Balance at June 30, 2022
(Measurement Date) $ 6,258,145 23,379,452 $ 17,121,307 $ Increase (Decrease)
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(72)
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.
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 19,963,894 $ 17,121,307 $ 14,743,017 $ 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 (5.50% Non-Medicare/4.65% Medicare (Non-Kaiser)/4.6 Medicare (Kaiser) decreasing to 2.75%) or one percentage point higher (7.5% 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 14,288,854 $ 17,121,307 $ 20,567,930 $ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $188,988. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to Measurement Date $ 1,777,258 $ - Differences Between Actual and Expected Experience - (4,396,817) Change in Assumptions - (647,021)
Net Differences Between Projected and Actual Earnings
on Plan Investments 593,412 -
Total $ 2,370,670 $ (5,043,838)
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(73)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
An amount of $1,777,258 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, 2024. 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
2024 $ (1,213,886)
2025 (1,219,034)
2026 (892,751)
2027 (610,284)
2028 (514,471)
Thereafter -
Payable to the OPEB Plan
At June 30, 2023, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023.
NOTE 11 RISK MANAGEMENT
The City began its self-insured liability program with Public Risk Innovation, Solutions, and Management (PRISM) 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 PRISM pool for its general liability and workers’ compensation insurance coverage. For its general liability insurance, the City, through PRISM has a self-insured retention amount of $200,000 per occurrence. General claims above $200,000 up to $25,000,000 are shared by the pool.
For its workers’ compensation liability insurance, the City, through PRISM has a self-insured retention amount of $250,000 per occurrence. Workers’ compensation claims above $250,000 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 PRISM.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(74)
NOTE 11 RISK MANAGEMENT (CONTINUED)
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, 2023, $890,000 has been accrued for general liability claims and $1,300,000 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, 2023, 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, 2023 and 2022, are as follows:
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Year Liability Estimates Payments Liability
2021-2022 1,696,000 $ 923,371 $ (311,371) $ 2,308,000 $ 2022-2023 2,308,000 233,100 (351,100) 2,190,000
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(75)
NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The City’s governmental fund balances at June 30, 2023, 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
Other Continuing Appropriations
Long-Term Receivables/Advances 26,749,564 $ - $ - $ - $ 26,749,564 $ Inventories 3,825 - - - 3,825
Prepaid Items 147,363 - - - 147,363
Restricted for:
Housing Agency 533,105 - - - 533,105
State Gas Tax - - - 3,163,955 3,163,955
HOME - - - 2,670,991 2,670,991
CalHome Grant - - - 704,503 704,503
Lighting Assessment District - - - 2,405,958 2,405,958
Park Development - - - 4,438 4,438
Prop A- - - 3,705,045 3,705,045
Prop C- - - 2,555,774 2,555,774
Measure R - - - 1,715,219 1,715,219
Measure M - - - 493,055 493,055
Measure A - - - 1 1
AQMD - - - 504,055 504,055
Economic Development
Assistance Grant - - - 979,273 979,273
Image Enhancement - - - 1,357,280 1,357,280
Sewer Maintenance - - - - -
Reach Grants - - - 877,739 877,739
Cable/PEG Support - - - 252,862 252,862
Housing Agency LMIHF - - - 2,726,708 2,726,708
Measure W - - - 1,896,687 1,896,687
Paramount/Mines Landscape
Maintenance District - - - 69,957 69,957
CASp Service 47,000 - - - 47,000
Pension Contribution 1,288,720 - - - 1,288,720
Capital Improvements - - 5,087,499 - 5,087,499
Committed to:
Emergency Reserve/
Economic Stabilization/
Stimulus 28,903,778 - - - 28,903,778
Assigned to:
OPEB Unfunded Liability - 856,070 - - 856,070
Leave Liability - 592,400 - - 592,400
Equipment Replacement 556,020 - - - 556,020
Self-insured Retention 500,000 - - - 500,000
Bond Refinancing/Reserve 1,000,000 - - - 1,000,000
Capital improvements 2,000,000 - - 13,312,296 15,312,296 Deferred Maintenance 1,000,000 - - - 1,000,000
Energy Efficiency - 1,000,000 - - 1,000,000
Economic Sustainability - 1,000,000 - - 1,000,000
Purchase Agreements 2,328,070 - - - 2,328,070
Other Continuing Appropriations 10,157,459 - - - 10,157,459 Unassigned 4,139,702 - - 2,309,782 (1,829,920)
Total Fund Balances 82,269,971 $ 533,105 $ 5,087,499 $ 37,565,876 $ 125,456,451 $ 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, 2023
(76)
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, 2023, this commitment is equal to $28,903,778.
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, 2023
(77)
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, 2023, total assignments equal $20,990,019.
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, 2023, the General Fund unassigned fund balance is $4,139,702.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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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, 2023:
Other Governmental Funds:
Community Development Block Grant Special
Revenue Fund $ 156,537
County Grants 722,827
State Grants Special Revenue Fund 219,451
Sewer Maintenance Special Revenue Fund 20,380
Transportation Development Act Special Revenue Fund 4,561 Federal Grants Special Revenue Fund 706,164
Other Enterprise Fund - Golf Course Fund 3,604,402
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 $ 6,104,088 $ 6,147,787 $ (43,699) Other Governmental Funds:
Economic Sustainability
Special Revenue Fund - 39,667 (39,667)
Image Enhancement
Special Revenue Fund 365 628 (263)
Federal Grants
Special Revenue Fund 2,132,731 2,135,314 (2,583)
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(79)
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, 2023 totaled $661,852.
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, 2023, the total payments made by PRIME under the take or pay contracts was $16,865,661. At June 30, 2023, the remaining take or pay contracts for PRIME is $76,049,205 through December May 2041.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(80)
NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
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, 2022 Additions Deletions June 30, 2023
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 (134,879) - (3,532) (138,411) Furniture and Equipment - (5,110) - (5,110)
Infrastructure (20,917) - (1,233) (22,150)
Total Accumulated
Depreciation (160,906) - (4,765) (165,671)
Total Capital Assets,
Being Depreciated, Net 57,056 - (4,765) 52,291
Successor Agency Activities,
Capital Assets, Net 315,079 $ $ - (4,765) $ 310,314 $
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, 2023 is $322,627.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(81)
NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
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, 2023, the net advance balance was $18,076,005, which included accrued interest of $8,913,435 and a 25% reserve against this balance totaling $4,519,002 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, 2023, the balance of the City Deferrals including interest was $29,949,844.
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 $29,949,844 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, 2023
(82)
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, 2023 was $1,513,398.
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, 2023
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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, 2023, the net advance balance was $257,027, which includes accrued interest of $127,027 and a 25% reserve against this balance totaling $64,257 due to the estimated collectability by the Water A as a result of the winding down of the affairs of the former Redevelopment Agency.
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).
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
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 9,970,000 $ 211,023 $ 10,181,023 $
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, 2023, the balance of the County Deferral including interest was $43,978,603. There is no fixed payment schedule for the repayment of the County Deferral.
Additionally, at June 30, 2023 the Successor Agency also has a payable to the County of Los Angeles for the gross proceeds received on the sale of land totaling $1,960,911.
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REQUIRED SUPPLEMENTARY INFORMATION
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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. (84)
2023 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 June 30, 2014 Total Pension Liability:
Service Cost 1,902,845 $ 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 8,484,446 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 (2,724,330) (227,395) 2,207,380 (96,456) 1,411,957 (1,258,219) (1,495,731) (845,358) - Changes in Assumptions 4,188,315 - - - 5,943,062 (828,380) - (1,681,626) - Changes in Benefits - - - - - - - - -
Benefit Payments, Including Refunds of
Employee Contributions (6,277,953) (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 5,573,323 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 119,635,936 123,686,546 115,587,812 109,471,760 105,166,720 96,554,312 94,428,137 93,402,832 89,875,344 Total Pension Liability - End of Year (a) 129, $ 123,686,546 259,869 $ 119,635,936 $ 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 4,024,396 3,510,945 3,152,902 2,902,032 2,552,475 2,352,483 2,240,763 2,552,214 Contributions - Employee 758,203 773,207 824,722 817,187 838,924 741,941 681,785 716,687 671,298 Net Investment Income 17,874,219 (7,209,341) 3,795,360 4,813,665 5,870,873 7,274,632 328,225 1,459,065 10,012,754 Administrative Expenses (59,361) (78,792) (107,987) (52,319) (314,561) (94,514) (39,896) (73,643) - Benefit Payments (6,277,953) (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 (8,764,056) 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 95,291,367 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) 86,527,311 $ 95,291,367 $ 78,875,641 $ 76,599,817 $ 73,553,818 $ 69,632,276 $ 64,015,344 $ 65,462,296 $ $ 65,805,711 Net Pension Liability - Ending (a)-(b) $ 28,395,179 42,732,558 $ 40,760,295 $ 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 66.94% 77.04% 65.93% 66.27% 67.19% 66.21% 66.30% 69.32% 70.45% 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 $ $ 8,586,318 Net Pension Liability as Percentage of
Covered Payroll 347.69% 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.
From Fiscal Year June 30, 2022 to June 30, 2023:
The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.5% to 2.3% * Fiscal year 2015 was the first year of implementation; therefore, only nine years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (85)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 4,587,084 $ 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 (4,587,084) (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 $ 14,458,762 $ 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 31.73% 33.49% 30.23% 31.62% 29.26% 29.14% 26.57% 26.68% 25.83% Notes to Schedule:
Valuation Date 6/30/2020 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 Entry age Amortization Method (1) (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 Market Value Inflation 2.75% 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) (2)
Investment Rate of Return 7.10% (3) 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) (4)
Mortality (5) (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. (86)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period: June 30, 2023 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 $ 748 $ 2,351 $ 2,283 $ 6,794 $ 6,533 $ 6,809 $ 6,547 $ 6,329 Interest on Total Pension Liability 14,076 14,044 12,821 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 - - (2,461) 2,623 - - 8,226 7,389 - Benefit Payments, Including Refunds of
Employee Contributions (14,372) (14,214) (14,492) (14,412) (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Total Pension Liability 452 578 20,276 24,113 5,638 (8,602) 16,251 5,595 6,654 Total Pension Liability - Beginning of Year 222,887 222,309 202,033 177,920 172,282 180,884 164,633 159,038 152,384 Total Pension Liability - End of Year (a) 223,339 222,887 222,309 202,033 177,920 172,282 180,884 164,633 159,038 Plan Fiduciary Net Position:
Contributions - Employer 3,591 3,591 7,183 10,774 14,227 18,648 17,266 18,647 17,957 Contributions - Employee - - - - - - - - -
Net Investment Income 13,057 (26,881) 42,720 3,916 9,833 10,214 13,784 83 2,392 Administrative Expenses (803) (959) (925) (834) (808) (762) (655) (575) (540) Benefit Payments (14,372) (14,214) (14,492) (14,412) (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Plan Fiduciary Net Position 1,473 (38,463) 34,486 (556) 10,853 17,674 19,969 7,729 9,383 Plan Fiduciary Net Position - Beginning of Year 161,224 199,687 165,201 165,757 154,904 137,230 117,261 109,532 100,149 Plan Fiduciary Net Position - End of Year (b) 162,697 161,224 199,687 165,201 165,757 154,904 137,230 117,261 109,532 Net Pension Liability - Ending (a)-(b) $ 60,642 $ 61,663 $ 22,622 $ 36,832 $ 12,163 $ 17,378 $ 43,654 $ 47,372 $ 49,506 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 72.85% 72.33% 89.82% 81.77% 93.16% 89.91% 75.87% 71.23% 68.87% Covered Payroll $ 10,655 $ 10,655 $ 9,865 $ 32,924 $ 39,460 $ 55,406 $ 57,622 $ 55,406 $ 57,622 Net Pension Liability as Percentage of
Covered Payroll 569.14% 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 nine years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
COUNCIL PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (87)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution 7,715 $ 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) (3,591) (7,183) (10,774) (14,227) (18,648) (17,266) (18,647) (17,957) Contribution Deficiency (Excess) $ 4,124 4,124 $ 532 $ $ 2,999 (836) $ $ 1,350 (748) $ $ - (1,381) $ Covered Payroll 10,655 $ 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% 33.70% 72.81% 32.72% 36.05% 33.66% 29.96% 33.66% 31.16% Notes to Schedule:
Valuation Date 6/30/2022 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 Entry Age Normal 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, Level Dollar, Closed Period 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 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 Market Inflation 2.50% 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 3.00% Salary Increases 0.00% 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% 6.50% 7.00% 7.00% Retirement Age 55 Years 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)
(1) Pre-Retirement: Consistent with the nonindustrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017. * Fiscal year 2015 was the first year of implementation; therefore, only nine years are shown.
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. (88)
Fiscal Year-End 2023 2022 2021 2020 2019 2018
Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service Cost 445,755 $ 568,492 $ 585,937 $ 605,152 $ 614,912 $ 597,000 $ Interest on Total OPEB Liability 1,410,651 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 (1,203,248) (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Total OPEB Liability 653,158 (4,458,952) 595,702 (1,166,230) 1,211,774 1,102,000 Total OPEB Liability - Beginning of Year 22,726,294 27,185,246 26,589,544 27,755,774 26,544,000 25,442,000 Total OPEB Liability - End of Year (a) 23,379,452 22,726,294 27,185,246 26,589,544 27,755,774 26,544,000 Plan Fiduciary Net Position:
Contributions - Employer 2,159,703 1,203,599 1,288,526 1,227,833 1,199,000 5,212,000 Net Investment Income (978,822) 1,356,239 168,441 277,177 331,815 165,000 Administrative Expenses (4,268) (4,388) (5,129) (3,369) (10,734) (1,000) Benefit Payments (1,203,248) (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Plan Fiduciary Net Position (26,635) 1,354,372 166,112 276,215 324,081 4,164,000 Plan Fiduciary Net Position - Beginning of Year 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 - Plan Fiduciary Net Position - End of Year (b) 6,258,145 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 Net OPEB Liability - Ending (a)-(b) 17,121,307 $ 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 26.77% 27.65% 18.14% 17.92% 16.17% 15.69% Covered - Employee Payroll 12,284,836 $ 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 $ 9,770,000 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 139.37% 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 From fiscal year June 30, 2022 to June 30, 2023:
There were no changes in assumptions.
* Fiscal year 2018 was the first year of implementation; therefore, only six years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (89)
2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution 1,766,000 $ 3,135,000 $ 3,065,000 $ 2,790,000 $ 2,739,000 $ 2,688,000 $ Contributions in Relation to the Actuarially
Determined Contributions (1,777,258) (2,159,703) (1,203,599) (1,288,526) (1,227,833) (1,199,000) Contribution Deficiency (Excess) (11,258) $ 975,297 $ 1,861,401 $ 1,501,474 $ 1,511,167 $ 1,489,000 $ Covered - Employee Payroll 14,315,004 $ 12,284,836 $ 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 $ Contributions as a Percentage of
Covered - Employee Payroll 12.42% 17.58% 9.26% 10.33% 9.95% 11.62% Notes to Schedule:
Valuation Date 6/30/2021 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% 2.75%
Medical Trend
Investment Rate of Return 6.25% 6.25% 6.75% 6.75% 6.75% 6.75% Mortality
* Fiscal year 2018 was the first year of implementation; therefore, only five years are shown.
Decreasing to 4.0%
CalPERS 2000-2019 CalPERS 1997-2015 CalPERS 1997-2015
Medicare - 6.3%
Decreasing to 4.0%
Medicare - 6.3%
Decreasing to 4.0%
Medicare (Kaiser) - 4.6%
Experience Study Experience Study
Entry Age
Level Percentage of Payroll, Closed
Investment Gains and Losses Spread Over 5-Year Rolling Period Decreasing to 3.75% Decreasing to 4.0% Decreasing to 4.0% Medicare (Non-Kaiser) - 5.65%
Experience Study
Non-Medicare - 6.5% Non-Medicare - 7.25% Non-Medicare - 7.25% Decreasing to 4.0%
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information. (90)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes and Assessments 42,345,046 $ 42,358,146 $ 44,582,928 $ 2,224,782 $ Licenses and Permits 3,630,246 3,810,246 5,776,946 1,966,700 Intergovernmental 710,658 710,658 261,178 (449,480)
Charges for Services 1,430,126 1,430,126 1,561,583 131,457 Fines, Forfeitures, and Penalties 1,314,076 1,314,076 1,171,765 (142,311) Investment and Rental 242,590 242,590 1,023,396 780,806 Miscellaneous 335,416 519,496 2,117,855 1,598,359
Total Revenues 50,008,158 50,385,338 56,495,651 6,110,313
EXPENDITURES
Current:
General Government 11,096,933 12,765,090 10,960,163 1,804,927 Public Safety 12,854,647 13,398,518 12,651,644 746,874
Public Works 9,947,234 11,368,880 10,051,681 1,317,199
Parks and Recreation 6,289,561 6,957,823 5,880,692 1,077,131 Community Development 7,511,108 9,635,436 5,988,525 3,646,911 Capital Outlay - - (364,171) 364,171
Debt Service:
Principal 995,000 995,000 995,000 -
Interest and Fiscal Charges 926,250 926,250 926,250 -
Lease Principal - - 25,205 (25,205)
Lease Interest - - 1,876 (1,876)
Total Expenditures 49,620,733 56,046,997 47,845,207 8,201,790
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,661,659) 387,425 8,650,444 14,312,103
OTHER FINANCING SOURCES (USES)
Transfers In 1,825,300 2,114,797 1,847,348 (267,449)
Transfers Out (2,212,695) (2,378,608) (2,378,608) -
Proceeds from Bond Issuance - - 928,625 928,625
Total Other Financing
Sources (Uses) (387,395) (263,811) 397,365 661,176
NET CHANGE IN FUND BALANCE (5,925,470) 30 9,047,809 14,973,279 Fund Balance - Beginning of Year 73,222,162 73,222,162 73,222,162 - FUND BALANCE - END OF YEAR $ 67,296,692 73,222,192 $ 82,269,971 $ 14,973,279 $ Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information. (91)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental 5,191,400 $ 5,191,400 $ 6,172,837 $ 981,437 $ Investment and Rental - - 446 446
Miscellaneous 22,272 22,272 32,558 10,286
Total Revenues 5,213,672 5,213,672 6,205,841 992,169
EXPENDITURES
Current:
Health and Welfare 6,062,675 6,104,088 6,147,787 (43,699) NET CHANGE IN FUND BALANCE (849,003) (890,416) 58,054 948,470 Fund Balance - Beginning of Year 475,051 475,051 475,051 - FUND BALANCE - END OF YEAR $ (373,952) $ (415,365) $ 533,105 $ 948,470 Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information. (92)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
OTHER FINANCING SOURCES (USES)
Transfers Out $ (770,391) $ (770,391) $ - $ 770,391
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ (770,391) $ (770,391) $ - $ 770,391 Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
(93)
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; 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.
SUPPLEMENTARY INFORMATION
This page intentionally left blank.
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS
JUNE 30, 2023
(94)
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, 2023
(95)
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:
Capital Improvement Capital Projects Fund accounts for acquisition or construction of major capital facilities.
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.
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CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
(96)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
ASSETS
Cash and Investments $ - $ 4,550,447 $ 2,394,477 $ 4,415 Accounts Receivable 619,139 - 349 -
Taxes Receivable - 379,400 60,123 -
Interest Receivable - 24,111 13,274 23
Long-Term Receivables 176,409 - - -
Prepaid Items - - - -
Receivables from Successor Agency - - - -
Total Assets $ 795,548 $ 4,953,958 $ 2,468,223 $ 4,438
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 483,483 $ 1,771,946 $ 49,921 $ -
Accrued Liabilities - 6,782 12,344 -
Retention Payable - 11,275 - -
Due to Other Funds 135,657 - - -
Unearned Revenue - - - -
Due to Other Agencies 176,409 - - -
Total Liabilities 795,549 1,790,003 62,265 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 156,536 - - -
FUND BALANCES (DEFICITS)
Restricted - 3,163,955 2,405,958 4,438
Assigned - - - -
Unassigned (156,537) - - -
Total Fund Balances (Deficits) (156,537) 3,163,955 2,405,958 4,438 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 795,548 $ 4,953,958 $ 2,468,223 $ 4,438 Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(97)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ 3,793,840 $ 3,546,918 $ 2,533,447 $ 596,794 $ 2,660,371 1 $ $ 704,503 13,373 74,713 1,630,626 - - 6 -
- - - - - - -
19,443 18,557 13,278 3,348 - 10,614 -
- - - - 2,570,592 - 1,102,130
- - - 2,627 - - -
- - - - - - -
$ 3,826,656 $ 3,640,188 $ 4,177,351 $ 602,769 $ 5,241,583 1 $ $ 1,806,633 $ 116,377 $ 937,195 $ 565,099 $ 109,318 $ - $ - $ -
5,234 5,136 5,125 396 - - -
67,370 - 288,401 - - - -
- - - - - - -
- - - - - - -
- - - - - 2,570,592 1,102,130
121,611 1,009,701 858,625 109,714 - 2,570,592 1,102,130 - 74,713 1,603,507 - - - -
3,705,045 2,555,774 1,715,219 493,055 2,670,991 1 704,503 - - - - - - -
- - - - - - -
3,705,045 2,555,774 1,715,219 493,055 2,670,991 1 704,503 $ 3,826,656 $ 3,640,188 $ 4,177,351 $ 602,769 $ 5,241,583 1 $ $ 1,806,633 Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(98)
Air
Quality County State Economic
Improvement Grants Grants Sustainability
ASSETS
Cash and Investments 501,762 $ 17,334 $ 476,607 $ 974,237 $ Accounts Receivable - 1,748,150 1,158,741 -
Taxes Receivable - - - -
Interest Receivable 2,526 - 640 5,036
Long-Term Receivables - - - -
Prepaid Items - - - -
Receivables from Successor Agency - - - -
Total Assets $ 504,288 $ 1,765,484 $ 1,635,988 $ 979,273
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 233 $ 243,296 $ 196,024 $ -
Accrued Liabilities - 5,351 1,981 -
Retention Payable - - - -
Due to Other Funds - 1,500,360 - -
Unearned Revenue - - 1,077,759 -
Due to Other Agencies - - - -
Total Liabilities 1,749,007 233 1,275,764 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 739,304 579,675 -
FUND BALANCES (DEFICITS)
Restricted 504,055 - - 979,273
Assigned - - - -
Unassigned - (722,827) (219,451) -
Total Fund Balances (Deficits) 504,055 (722,827) (219,451) 979,273 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 504,288 $ 1,765,484 $ 1,635,988 $ 979,273 Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(99)
Transportation
Image Sewer Reach Cable/PEG Development
Enhancement Maintenance Grants Support Act
$ - 1,351,423 $ 956,742 $ 252,331 $ - $
- - - - 123,513
- - - 531 28,110
- 6,120 4,648 - -
- - - - -
- - - - -
- - - - -
$ - 1,357,543 $ 961,390 $ 252,862 $ 151,623 $
$ 7,190 263 $ 75,454 $ - $ 683 $
- - 8,197 - 936
- - - - -
13,190 - - - 31,054
- - - - -
- - - - -
20,380 263 83,651 - 32,673
- - - - 123,511
- 1,357,280 877,739 252,862 -
- - - - -
- - (20,380) - (4,561)
1,357,280 877,739 (20,380) 252,862 (4,561)
$ - 1,357,543 $ 961,390 $ 252,862 $ 151,623 $
Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(100)
Total
Housing Special
Agency Measure Federal Revenue
LMIHF W Grants Funds
ASSETS
Cash and Investments 1,207,075 $ 1,911,417 $ 15,158 $ 28,449,299 $ Accounts Receivable - - 662,997 6,031,607
Taxes Receivable - - - 468,164
Interest Receivable - 9,932 - 131,550
Long-Term Receivables 6,235 - - 3,855,366
Prepaid Items - 2,627 - 5,254
Receivables from Successor Agency - 1,513,398 - 1,513,398 Total Assets 2,726,708 $ 1,923,976 $ 678,155 $ 40,454,638 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 27,289 $ 343,893 $ 4,927,664 $
Accrued Liabilities - - - 51,482
Retention Payable - - 15,585 382,631
Due to Other Funds - - 442,860 2,123,121
Unearned Revenue - - - 1,077,759
Due to Other Agencies - - - 3,849,131
Total Liabilities - 27,289 802,338 12,411,788
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 581,981 3,859,227
FUND BALANCES (DEFICITS)
Restricted 2,726,708 1,896,687 - 26,013,543
Assigned - - - -
Unassigned - - (706,164) (1,829,920)
Total Fund Balances (Deficits) 1,896,687 2,726,708 24,183,623 (706,164) Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 2,726,708 $ 1,923,976 $ 678,155 $ 40,454,638 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(101)
Paramount/Mines Total Total
Landscape Capital Other
Capital Maintenance Projects Governmental
Improvement Assessment Funds Funds
$ 69,600 13,602,083 $ 13,671,683 $ 42,120,982 $
- 24,250 24,250 6,055,857
- - - 468,164
357 - 357 131,907
- - - 3,855,366
- - - 5,254
- - - 1,513,398
$ 69,957 13,626,333 $ 13,696,290 $ 54,150,928 $
$ - 89,367 $ 89,367 $ 5,017,031 $
- 26 26 51,508
- - - 382,631
- 224,644 224,644 2,347,765
- - - 1,077,759
- - - 3,849,131
- 314,037 314,037 12,725,825
- - - 3,859,227
69,957 - 69,957 26,083,500
- 13,312,296 13,312,296 13,312,296
- - - (1,829,920)
69,957 13,312,296 13,382,253 37,565,876
$ 69,957 13,626,333 $ 13,696,290 $ 54,150,928 $
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, 2023
(102)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
REVENUES
Taxes and Assessments - $ - $ 2,083,313 $ - $
Intergovernmental 1,579,782 2,944,884 - -
Charges for Services - - - -
Investment and Rental - 79,540 33,636 2,413
Miscellaneous - - - -
Total Revenues 1,579,782 3,024,424 2,116,949 2,413
EXPENDITURES
Current:
General Government - - - -
Public Works - 122,491 731,406 -
Parks and Recreation - - - -
Health and Welfare - - - -
Community Development 144,702 - - -
Capital Outlay 1,589,855 2,724,019 - 227,000
Total Expenditures 1,734,557 2,846,510 731,406 227,000
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 177,914 (154,775) 1,385,543 (224,587)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - (1,557,851) - (289,497)
Total Other Financing
Sources (Uses) - (1,557,851) - (289,497)
NET CHANGE IN FUND BALANCES (154,775) 1,096,046 (1,379,937) (224,587) Fund Balances (Deficits) - Beginning of Year 4,543,892 (1,762) 1,309,912 229,025 FUND BALANCES (DEFICITS) - END OF YEAR $ 3,163,955 (156,537) $ 2,405,958 $ 4,438 $ 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, 2023
(103)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ - - $ - $ - $ - $ - $ - $
1,376,974 1,660,062 1,328,314 1,167,903 1 - -
- - - - - - -
61,183 62,490 40,229 17,402 - 78,475 -
- 15,030 - - - 13,217 1,200
1,438,157 1,737,582 1,368,543 1,185,305 1 91,692 1,200
- - - - - - -
312,423 1,352,122 76,743 243,697 - - -
- - - - - - -
- - - - - - -
- - - - - - -
1,724,869 - 1,259,308 - - - -
2,037,292 1,352,122 1,336,051 243,697 - - -
385,460 32,492 (599,135) 941,608 1 91,692 1,200
- - - - - - -
- - - - (836,169) - -
- - - - (836,169) - -
385,460 32,492 (599,135) 105,439 1 91,692 1,200
3,154,909 3,319,585 1,682,727 387,616 - 2,579,299 703,303 $ 2,555,774 3,705,045 $ 1,715,219 $ 493,055 $ 1 $ 2,670,991 $ 704,503 $ 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, 2023
(104)
Air
Quality County State Economic
Improvement Grants Grants Sustainability
REVENUES
Taxes and Assessments - $ - $ - $ - $
Intergovernmental 77,122 1,077,808 1,061,298 -
Charges for Services - - - -
Investment and Rental 7,891 - 1,948 55,926
Miscellaneous - 1,855 - -
Total Revenues 85,013 1,079,663 1,063,246 55,926
EXPENDITURES
Current:
General Government - - - -
Public Works 35,485 - - -
Parks and Recreation - 647,746 - -
Health and Welfare - - 1,127,143 -
Community Development - - - 39,667
Capital Outlay - 1,047,500 - -
Total Expenditures 35,485 1,695,246 1,127,143 39,667
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 49,528 (615,583) 16,259 (63,897)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing
Sources (Uses) - - - -
NET CHANGE IN FUND BALANCES 49,528 (615,583) 16,259 (63,897) Fund Balances (Deficits) - Beginning of Year 454,527 (107,244) 963,014 (155,554) FUND BALANCES (DEFICITS) - END OF YEAR $ (722,827) 504,055 $ (219,451) $ 979,273 $ 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, 2023
(105)
Transportation
Image Sewer Reach Cable/PEG Development
Enhancement Maintenance Grants Support Act
$ 168 - $ 22,403 $ - $ - $
- - 1,423,983 - 28,110
- 777,380 - - -
- 12,797 6,344 - -
- - - 54,077 -
168 790,177 1,452,730 54,077 28,110
- 628 - - -
- - - 32,703 27,179
- - 1,067,497 - -
- - - - -
- - - - -
- - - 69,384 -
- 628 1,067,497 102,087 27,179
168 789,549 385,233 931 (48,010)
- - - - -
- - - - -
- - - - -
168 789,549 385,233 931 (48,010)
567,731 492,506 (20,548) 300,872 (5,492)
$ (20,380) 1,357,280 $ 877,739 $ 252,862 $ (4,561) $
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, 2023
(106)
Total
Housing Special
Agency Measure Federal Revenue
LMIHF W Grants Funds
REVENUES
Taxes and Assessments - $ - $ - $ 2,105,884 $
Intergovernmental - 896,420 1,641,424 16,264,085
Charges for Services - - - 777,380
Investment and Rental 50,310 30,794 - 541,378
Miscellaneous 7,794 - - 93,173
Total Revenues 58,104 927,214 1,641,424 19,781,900
EXPENDITURES
Current:
General Government - - - 628
Public Works - 192,525 316,314 3,443,088
Parks and Recreation - - - 1,715,243
Health and Welfare - - - 1,127,143
Community Development - - - 184,369
Capital Outlay - - 1,819,000 10,460,935
Total Expenditures - 192,525 2,135,314 16,931,406
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 734,689 58,104 2,850,494 (493,890)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - (2,683,517)
Total Other Financing
Sources (Uses) - - - (2,683,517)
NET CHANGE IN FUND BALANCES 734,689 58,104 166,977 (493,890) Fund Balances (Deficits) - Beginning of Year 1,161,998 2,668,604 24,016,646 (212,274) FUND BALANCES (DEFICITS) - END OF YEAR $ 1,896,687 2,726,708 $ (706,164) $ 24,183,623 $ 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, 2023
(107)
Paramount/Mines Total Total
Landscape Capital Other
Capital Maintenance 2009 Lease Projects Governmental
Improvement Assessment Revenue Bond Funds Funds
$ 11,245 - $ - $ 11,245 $ 2,117,129 $
- - - - 16,264,085
- - - - 777,380
1,076 - - 1,076 542,454
- - - - 93,173
12,321 - - 12,321 19,794,221
- - - - 628
- - - - 3,443,088
- - - - 1,715,243
- - - - 1,127,143
- - - - 184,369
- 656,921 - 656,921 11,117,856
- 656,921 - 656,921 17,588,327
12,321 (656,921) - 2,205,894 (644,600)
- 2,378,608 - 2,378,608 2,378,608
- - - - (2,683,517)
- 2,378,608 - 2,378,608 (304,909)
12,321 1,721,687 - 1,734,008 1,900,985
57,636 11,590,609 - 11,648,245 35,664,891
$ 69,957 13,312,296 $ - $ 13,382,253 $ 37,565,876 $
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, 2023
(108)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 1,091,484 $ 1,579,782 $ 488,298 $
Miscellaneous 50,000 - (50,000)
Total Revenues 1,141,484 1,579,782 438,298
EXPENDITURES
Current:
Community Development 271,023 144,702 126,321
Capital Outlay 1,589,855 2,036,183 446,328
Total Expenditures 2,307,206 1,734,557 572,649
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,165,722) 1,010,947 (154,775)
Fund Balance (Deficit) - Beginning of Year (1,762) - (1,762) FUND BALANCE (DEFICIT) - END OF YEAR $ (156,537) (1,167,484) $ (1,010,947) $
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, 2023
(109)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 3,264,913 $ 2,944,884 $ $ (320,029)
Investment and Rental 10,722 79,540 68,818
Total Revenues 3,275,635 3,024,424 (251,211)
EXPENDITURES
Current:
Public Works 194,825 122,491 72,334
Capital Outlay: 2,726,027 2,008 2,724,019
Total Expenditures 2,920,852 2,846,510 74,342
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 177,914 354,783 (176,869)
OTHER FINANCING USES
Transfers Out (1,825,300) 267,449 (1,557,851)
NET CHANGE IN FUND BALANCE (1,470,517) 90,580 (1,379,937) Fund Balance - Beginning of Year 4,543,892 4,543,892 -
FUND BALANCE - END OF YEAR $ 3,163,955 3,073,375 $ 90,580 $
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, 2023
(110)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 1,094,185 $ 2,083,313 $ 989,128 $ Investment and Rental 7,407 33,636 26,229
Total Revenues 1,101,592 2,116,949 1,015,357
EXPENDITURES
Current:
Public Works 1,183,671 731,406 452,265
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,385,543 (82,079) 1,467,622
OTHER FINANCING SOURCES (USES)
Transfers Out (289,497) - (289,497)
NET CHANGE IN FUND BALANCE 1,096,046 (371,576) 1,467,622 Fund Balance - Beginning of Year 1,309,912 1,309,912 -
FUND BALANCE - END OF YEAR $ 2,405,958 938,336 $ 1,467,622 $
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, 2023
(111)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 1,540,828 $ 1,660,062 $ 119,234 $
Investment and Rental 10,465 62,490 52,025
Miscellaneous 20,000 15,030 (4,970)
Total Revenues 1,571,293 1,737,582 166,289
EXPENDITURES
Current:
Public Works 1,762,437 1,352,122 (410,315)
NET CHANGE IN FUND BALANCE 385,460 (191,144) 576,604
Fund Balance - Beginning of Year 3,319,585 3,319,585 -
FUND BALANCE - END OF YEAR $ 3,705,045 3,128,441 $ 576,604 $
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, 2023
(112)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 1,278,100 $ 1,376,974 $ 98,874 $
Investment and Rental 8,435 61,183 52,748
Total Revenues 1,286,535 1,438,157 151,622
EXPENDITURES
Current:
Public Works 366,495 312,423 54,072
Public Works 1,836,224 1,724,869 111,355
Total Expenditures 2,202,719 2,037,292 165,427
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (916,184) 317,049 (599,135)
Fund Balance - Beginning of Year 3,154,909 3,154,909 -
FUND BALANCE - END OF YEAR $ 2,555,774 2,238,725 $ 317,049 $
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, 2023
(113)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 958,600 $ 1,328,314 $ 369,714 $
Investment and Rental 3,271 40,229 36,958
Total Revenues 961,871 1,368,543 406,672
EXPENDITURES
Current:
Public Works 170,000 76,743 93,257
Capital Outlay 1,259,308 2,010,246 750,938
Total Expenditures 2,180,246 1,336,051 844,195
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 32,492 (1,218,375) 1,250,867
Fund Balance - Beginning of Year 1,682,727 1,682,727 -
FUND BALANCE (DEFICIT) - END OF YEAR $ 1,715,219 464,352 $ 1,250,867 $
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, 2023
(114)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental $ 3,783,400 $ 1,167,903 $ (2,615,497) Investment and Rental 2,558 17,402 14,844
Total Revenues 3,785,958 1,185,305 (2,600,653)
EXPENDITURES
Current:
Public Works 569,859 243,697 326,162
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 941,608 3,216,099 (2,274,491)
OTHER FINANCING USES
Transfers Out (836,169) (836,169) -
NET CHANGE IN FUND BALANCE 2,379,930 105,439 (2,274,491) Fund Balance - Beginning of Year 387,616 387,616 -
FUND BALANCE - END OF YEAR $ 2,767,546 $ 493,055 $ (2,274,491)
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, 2023
(115)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Investment and Rental 3,661 $ 78,475 $ 74,814 $
Miscellaneous - 13,217 13,217
Total Revenues 3,661 91,692 88,031
Fund Balance - Beginning of Year 2,579,299 2,579,299 -
FUND BALANCE - END OF YEAR $ 2,670,991 2,582,960 $ 88,031 $
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, 2023
(116)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Miscellaneous - $ $ 1,200 $ 1,200
Fund Balance - Beginning of Year 703,303 703,303 -
FUND BALANCE - END OF YEAR $ 703,303 $ 704,503 $ 1,200
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, 2023
(117)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 80,900 $ 77,122 $ $ (3,778)
Investment and Rental 1,370 7,891 6,521
Total Revenues 82,270 85,013 (2,743)
EXPENDITURES
Current:
Public Works 77,680 35,485 42,195
NET CHANGE IN FUND BALANCE 49,528 4,590 44,938
Fund Balance - Beginning of Year 454,527 454,527 -
FUND BALANCE - END OF YEAR $ 504,055 459,117 $ 44,938 $
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, 2023
(118)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental $ 1,110,000 $ 1,077,808 $ (32,192)
Miscellaneous 20,000 1,855 (18,145)
Total Revenues 1,130,000 1,079,663 (50,337)
EXPENDITURES
Current:
Parks and Recreation 1,448,312 647,746 800,566
Capital Outlay 1,050,000 1,047,500 2,500
Total Expenditures 2,498,312 1,695,246 803,066
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,368,312) (615,583) 752,729
OTHER FINANCING USES
Transfers In - - -
NET CHANGE IN FUND BALANCE (1,368,312) (615,583) 752,729 Fund Balance - Beginning of Year (107,244) (107,244) -
FUND BALANCE (DEFICIT) - END OF YEAR $ (1,475,556) $ (722,827) $ 752,729
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, 2023
(119)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 21,488,704 $ 1,061,298 $ $ (20,427,406) Investment and Rental 448 1,948 1,500
Total Revenues 21,489,152 1,063,246 (20,425,906)
EXPENDITURES
Current:
Health and Welfare 2,064,201 1,127,143 937,058
NET CHANGE IN FUND BALANCE 19,424,951 19,488,848 (63,897) Fund Balance - Beginning of Year (155,554) - (155,554)
FUND BALANCE (DEFICIT) - END OF YEAR $ (219,451) 19,269,397 $ (19,488,848) $
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, 2023
(120)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Investment and Rental 3,755 $ 55,926 $ 52,171 $
EXPENDITURES
Current:
Community Development - 39,667 (39,667)
NET CHANGE IN FUND BALANCE 16,259 3,755 12,504
Fund Balance - Beginning of Year 963,014 963,014 -
FUND BALANCE - END OF YEAR $ 979,273 966,769 $ 12,504 $
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, 2023
(121)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Charges for Services 139,432 $ 777,380 $ 637,948 $
Investment and Rental 1,102 12,797 11,695
Total Revenues 140,534 790,177 649,643
EXPENDITURES
Current:
General Government 365 628 (263)
NET CHANGE IN FUND BALANCE 789,549 140,169 649,380
Fund Balance - Beginning of Year 567,731 567,731 -
FUND BALANCE - END OF YEAR $ 1,357,280 707,900 $ 649,380 $
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, 2023
(122)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 1,600 $ 168 $ $ (1,432)
EXPENDITURES
Current:
General Government 132,879 - 132,879
Public Works 5,700 - 5,700
Total Expenditures 138,579 - 138,579
NET CHANGE IN FUND BALANCE (136,979) 168 137,147
Fund Balance (Deficit) - Beginning of Year (20,548) (20,548) - FUND BALANCE (DEFICIT) - END OF YEAR $ (157,527) $ (20,380) $ 137,147
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, 2023
(123)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 24,000 $ 22,403 $ $ (1,597)
Intergovernmental 1,114,410 1,423,983 309,573
Investment and Rental 1,839 6,344 4,505
Miscellaneous - - -
Total Revenues 1,140,249 1,452,730 312,481
EXPENDITURES
Current:
Parks and Recreation 1,124,125 1,067,497 56,628
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 385,233 16,124 369,109
Fund Balance - Beginning of Year 492,506 492,506 -
FUND BALANCE - END OF YEAR $ 877,739 508,630 $ 369,109 $
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, 2023
(124)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Miscellaneous 23,000 $ 54,077 $ 31,077 $
EXPENDITURES
Current:
Public Works 37,355 32,703 4,652
Capital Outlay 69,384 69,384 -
Total Expenditures 106,739 102,087 4,652
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (83,739) 35,729 (48,010)
Fund Balance - Beginning of Year 300,872 300,872 -
FUND BALANCE - END OF YEAR $ 252,862 217,133 $ 35,729 $
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, 2023
(125)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 80,000 $ 28,110 $ $ (51,890)
EXPENDITURES
Current:
Public Works 27,232 27,179 53
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 931 52,768 (51,837)
Fund Balance (Deficit) - Beginning of Year (5,492) - (5,492) FUND BALANCE (DEFICIT) - END OF YEAR $ (4,561) 47,276 $ 51,837 $
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, 2023
(126)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 954,810 $ 896,420 $ $ (58,390)
Investment and Rental - 30,794 30,794
Total Revenues 954,810 927,214 (27,596)
EXPENDITURES
Current:
Public Works 351,428 192,525 158,903
NET CHANGE IN FUND BALANCE 734,689 603,382 131,307
Fund Balance - Beginning of Year 1,161,998 1,161,998 -
FUND BALANCE - END OF YEAR $ 1,896,687 1,765,380 $ 131,307 $
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, 2023
(127)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 6,458,823 $ 1,641,424 $ $ (4,817,399)
EXPENDITURES
Current:
Public Works 311,701 316,314 (4,613)
Capital outlay 1,819,000 1,821,030 2,030
Total Expenditures 2,132,731 2,135,314 (2,583)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,326,092 (493,890) (4,819,982)
Fund Balance (Deficit) - Beginning of Year (212,274) - (212,274) FUND BALANCE (DEFICIT) - END OF YEAR $ 4,113,818 $ (706,164) $ (4,819,982)
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, 2023
(128)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
EXPENDITURES
Capital Outlay $ 656,921 1,300,257 $ 643,336 $
OTHER FINANCING SOURCES (USES)
Transfers in 2,378,608 2,378,608 -
NET CHANGE IN FUND BALANCE 1,721,687 1,078,351 643,336
Fund Balance - Beginning of Year 11,590,609 11,590,609 - FUND BALANCE - END OF YEAR $ 13,312,296 12,668,960 $ 643,336 $
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, 2023
(129)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 10,200 $ 11,245 $ 1,045 $
Investment and Rental 139 1,076 937
Total Revenues 10,339 12,321 1,982
Fund Balance - Beginning of Year 57,636 57,636 -
FUND BALANCE - END OF YEAR $ 69,957 67,975 $ 1,982 $
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF OTHER ENTERPRISE FUNDS
JUNE 30, 2023
(130)
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, 2023
(131)
Sports Golf
Arena Course Total
ASSETS
Current Assets:
Cash and Investments $ 739,257 $ 58,084 $ 797,341
Receivables, Net:
Accounts 12,954 47,247 60,201
Interest 3,735 - 3,735
Total Current Assets 755,946 105,331 861,277
Noncurrent Assets:
Capital Assets, Not Depreciated 3,368 38,945 42,313
Capital Assets, Depreciated, Net 4,361 230,538 234,899
Total Noncurrent Assets 7,729 269,483 277,212
Total Assets 763,675 374,814 1,138,489
DEFERRED OUTFLOWS OF RESOURCES
Amount Related to Pensions 20,791 10,395 31,186
LIABILITIES
Current Liabilities:
Accounts Payable - 102,394 102,394
Accrued Liabilities 2,841 53,814 56,655
Total Current Liabilities 2,841 156,208 159,049
Noncurrent Liabilities:
Advances from Other Funds 3,793,347 - 3,793,347
Net Pension Liability 38,459 76,919 115,378
Total Noncurrent Liabilities 76,919 3,831,806 3,908,725 Total Liabilities 79,760 3,988,014 4,067,774
DEFERRED INFLOWS OF RESOURCES
Amounts Related to Pensions 3,194 1,597 4,791
NET POSITION
Net Investment in Capital Assets 7,729 269,483 277,212
Unrestricted 693,783 (3,873,885) (3,180,102)
Total Net Position $ 701,512 $ (3,604,402) $ (2,902,890)
CITY OF PICO RIVERA, CALIFORNIA
OTHER ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2023
(132)
Sports Golf
Arena Course Total
OPERATING REVENUES
Charges for Services $ 318,378 $ 755,542 $ 1,073,920
Other - - -
Total Operating Revenues 318,378 755,542 1,073,920
OPERATING EXPENSES
Salaries and Benefits 52,751 29,108 81,859
Contractual Services (59,325) 111,920 52,595
Insurance Claims and Expenses 1,207 - 1,207
Administrative - 915,642 915,642
Utilities 854 242,891 243,745
Repairs and Maintenance - 92,875 92,875
Depreciation 1,718 28,149 29,867
Total Operating Expenses (2,795) 1,420,585 1,417,790
OPERATING GAIN (LOSS) 321,173 (665,043) (343,870)
NONOPERATING REVENUES
Investment Income 12,329 - 12,329
CHANGE IN NET POSITION 333,502 (665,043) (331,541)
Net Position - Beginning of Year 368,010 (2,939,359) (2,571,349) NET POSITION - END OF YEAR $ 701,512 $ (3,604,402) $ (2,902,890)
CITY OF PICO RIVERA, CALIFORNIA
OTHER ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2023
(133)
Sports Golf
Arena Course Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 408,142 $ 727,169 $ 1,135,311 Payments to Suppliers (14,775) (1,364,901) (1,379,676)
Payments to Employees (59,052) (23,419) (82,471)
Net Cash Provided (Used) by Operating Activities 334,315 (661,151) (326,836)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Proceeds from Due to/from Other Funds - 717,239 717,239 Net Cash Provided by Noncapital Financing
Activities - 717,239 717,239
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 8,975 - 8,975
Net Cash Used by Investing Activities 8,975 - 8,975
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 343,290 31,843 375,133
Cash and Cash Equivalents - Beginning of Year 395,967 26,241 422,208 CASH AND CASH EQUIVALENTS - END OF YEAR $ 739,257 $ 58,084 $ 797,341
RECONCILIATION OF OPERATING GAIN (LOSS) TO
NET CASH USED BY OPERATING ACTIVITIES
Operating Gain (Loss) $ 321,173 $ (665,043) $ (343,870) Adjustments to Reconcile Operating Gain (Loss) to Net
Cash Provided (Used) by Operating Activities:
Depreciation 1,718 28,149 29,867
Changes in Operating Assets, Deferred
Outflows of Resources, Liabilities, and
Deferred Inflows of Resources:
Increase in Accounts Receivables 89,764 (28,373) 61,391 Decrease in Inventories - 24,005 24,005
Decrease in Deferred Outflows of Resources -
Amount Related to Pensions (12,631) (7,052) (19,683)
Increase (Decrease) in Accounts Payable (72,039) (21,460) (93,499) Increase (Decrease) in Accrued Liabilities 520 812 1,332 Increase in Deposits Payable - (1,800) (1,800)
Increase (Decrease) in Net Pension Liability 20,624 15,393 36,017 Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions (14,814) (5,782) (20,596) Total Adjustments 13,142 3,892 17,034
Net Cash Provided (Used) by Operating Activities $ 334,315 $ (661,151) $ (326,836) This page is intentionally left blank.
STATISTICAL SECTION
(UNAUDITED)
This page intentionally left blank.
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2023
(134)
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. 135-144
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. 145-152 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. 153-158 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. 159-160 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. 161-164
CITY OF PICO RIVERA, CALIFORNIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(135)
2013-14 2014-15 2015-16 2016-17
Governmental Activities:
Net investment in capital assets 224,917,267 $ 224,650,021 $ 231,562,736 $ 223,976,465 $ Restricted 13,016,383 14,236,953 11,854,987 13,274,422
Unrestricted 43,883,873 22,142,254 23,639,282 25,960,550 Total governmental activities net position 281,817,523 261,029,228 267,057,005 263,211,437 Business-type Activities:
Net investment in capital assets 30,964,232 31,370,373 31,761,672 32,604,651 Restricted - - - -
Unrestricted (16,212,613) (18,465,237) (16,385,687) (13,590,642) Total business-type activities net position 14,751,619 12,905,136 15,375,985 19,014,009 Primary Government:
Net investment in capital assets 255,881,499 256,020,394 263,324,408 256,581,116 Restricted 13,016,383 14,236,953 11,854,987 13,274,422
Unrestricted 27,671,260 3,677,017 7,253,595 12,369,908
Total primary government net position $ 296,569,142 $ 273,934,364 $ 282,432,990 $ 282,225,446 Source: Statement of Net Position
CITY OF PICO RIVERA, CALIFORNIA
NET POSITION BY COMPONENT (CONTINUED)
LAST TEN FISCAL YEARS
(136)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
$ 232,291,558 230,499,724 $ 235,399,358 $ 234,764,478 $ 237,260,527 $ 244,677,341 $ 19,565,580 16,360,144 22,661,392 23,672,803 27,978,094 31,184,653 17,860,702 18,735,128 15,000,619 23,195,137 38,557,279 51,605,739 269,717,840 265,594,996 273,061,369 281,632,418 303,795,900 327,467,733 33,680,356 33,236,723 34,129,206 36,403,397 40,280,888 50,610,138 - - - -
(10,315,352) (13,570,480) (3,505,373) (4,457,768) (4,543,616) (3,373,379) 23,365,004 19,666,243 30,623,833 31,945,629 35,737,272 47,236,759 265,971,914 263,736,447 269,528,564 271,167,875 277,541,415 295,287,479 19,565,580 16,360,144 22,661,392 23,672,803 27,978,094 31,151,411 7,545,350 5,164,648 11,495,246 18,737,369 34,013,663 482,656,002 $ 293,082,844 285,261,239 $ 303,685,202 $ 313,578,047 $ 339,533,172 $ 374,704,492 $
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(137)
2013-14 2014-15 2015-16 2016-17 2017-18
Expenses:
Governmental Activities:
General government $ 9,248,597 9,954,786 $ 8,790,816 $ 10,048,704 $ 8,190,494 $ Public safety 10,457,770 11,202,782 10,468,357 12,330,023 11,885,957 Public works 10,498,605 14,545,183 14,472,969 15,104,130 12,488,922 Parks and recreation 5,422,037 5,600,669 5,585,521 6,263,237 7,146,278 Health and welfare 5,339,488 4,840,878 5,266,352 5,587,157 5,311,548 Community development 2,761,524 2,511,556 2,827,231 2,540,908 4,407,647 Interest and fiscal charges 1,742,562 1,656,613 1,626,960 2,628,006 1,013,498 Total governmental activities net expenses 46,671,816 49,111,234 49,038,206 54,502,165 50,444,344 Business-type Activities:
Water 8,386,111 8,044,302 7,865,853 8,155,205 8,382,375 Pico Rivera Innovative Municipal Energy - - - - 4,900,927 Other enterprise funds 1,054,837 1,320,585 1,624,391 1,622,319 2,270,317 Total business-type activities net expenses 9,440,948 9,364,887 9,490,244 9,777,524 15,553,619 Total primary government expenses 56,112,764 $ 58,476,121 $ 58,528,450 $ 64,279,689 $ 65,997,963 $ Program Revenues:
Governmental Activities:
Charges for services:
General government $ 574,846 497,518 $ 606,726 $ 739,432 $ 493,265 $ Public safety 1,125,660 1,207,766 1,022,464 962,627 1,044,921 Public works 744,905 1,821,210 1,788,821 786,053 801,487 Parks and recreation 693,884 743,400 578,529 773,631 791,906 Health and welfare 188,767 232,824 202,262 174,314 198,238 Community development 644,344 712,626 746,395 873,536 1,196,287 Operating contributions and grants 13,322,885 12,236,612 12,817,403 11,093,802 16,678,586 Capital contributions and grants 2,378,797 2,287,187 1,620,798 778,116 2,874,341 Total governmental activities
program revenues 19,747,148 19,666,083 19,383,398 16,181,511 24,079,031 Business-type Activities:
Charges for services:
Water utility 8,698,444 8,909,351 8,304,240 8,819,676 9,802,992 Pico Rivera Innovative Municipal Energy - - - - 5,354,524 Other enterprise funds 921,432 996,548 1,302,652 1,478,893 1,176,972 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities
program revenues 9,830,783 9,694,992 9,606,892 10,298,569 16,334,488 Primary government program revenues 29,577,931 $ 29,361,075 $ 28,990,290 $ 26,480,080 $ 40,413,519 $ Net (Expense)/Revenue:
Governmental activities (26,924,668) $ (29,445,151) $ (29,654,808) $ (38,320,654) $ (26,365,313) $ Business-type activities 389,835 330,105 116,648 521,045 780,869 Total primary government net expense (26,534,833) $ (29,115,046) $ (29,538,160) $ (37,799,609) $ (25,584,444) $ 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)
(138)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 11,832,065 10,589,517 $ 8,799,110 $ 8,089,449 $ 10,634,542 $ 12,460,600 11,998,792 12,314,336 12,144,703 12,661,589
15,688,114 16,339,812 16,834,980 14,700,643 15,857,499
7,319,903 7,958,749 6,765,477 7,457,649 8,540,605
5,508,857 5,416,605 6,248,362 6,414,485 7,274,930
5,269,424 4,194,760 4,630,014 10,891,361 5,957,282
1,527,256 1,507,430 1,486,071 1,450,395 1,394,492
59,606,219 58,404,010 57,078,350 61,148,685 62,320,939
8,743,689 8,506,305 9,503,242 9,570,530 7,461,720
12,800,550 12,944,076 16,116,785 17,222,547 18,935,357
1,411,093 1,804,018 1,980,185 1,430,189 1,417,790
22,955,332 23,254,399 27,600,212 28,223,266 27,814,867
$ 82,561,551 81,658,409 $ 84,678,562 $ 89,371,951 $ 90,135,806 $ $ 310,572 657,280 $ 415,826 $ 545,101 $ 1,161,745 $
970,410 1,114,647 1,160,968 1,163,935 1,144,044
852,467 836,847 878,464 882,256 991,248
359,398 579,751 63,530 279,041 487,136
9,104 205,328 155,361 285,648 184,645
826,524 982,241 1,240,644 1,681,960 2,003,316
13,826,068 13,168,680 16,416,848 26,561,448 22,046,380
5,855,720 3,604,445 2,986,830 5,387,593 3,207,183
23,010,263 21,149,219 23,318,471 36,786,982 31,225,697
10,376,513 9,904,084 10,641,130 11,180,400 10,989,386
16,685,058 13,581,101 14,798,777 18,030,558 24,006,009
1,056,567 1,119,812 1,841,744 1,195,085 1,073,920
- - - 476,602 246,661
- - - - 2,518,595
28,118,138 24,604,997 27,281,651 30,882,645 38,834,571
$ 51,128,401 45,754,216 $ 50,600,122 $ 67,669,627 $ 70,060,268 $ $ (36,595,956) (37,254,791) $ (33,759,879) $ (24,361,703) $ (31,095,242) $ 5,162,806 1,350,598 (318,561) 2,659,379 11,019,704
$ (31,433,150) (35,904,193) $ (34,078,440) $ (21,702,324) $ (20,075,538) $
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(139)
2013-14 2014-15 2015-16 2016-17 2017-18
General Revenues and Other Changes
in Net Position:
Governmental Activities:
Property taxes 9,269,468 $ 9,611,244 $ 10,049,454 $ 10,591,691 $ 11,173,640 $ Sales taxes 16,435,053 16,368,367 17,766,538 17,637,948 17,575,729 Franchise taxes 1,641,171 1,646,884 1,654,275 1,582,026 1,703,255 Utility users taxes 3, 3,525,036 504,363 3,385,361 3,276,321 3,142,090 Other taxes 1,710,630 1,760,876 1,850,151 1,632,337 1,807,130 Unrestricted motor vehicle license in lieu
Investment Earnings 39,582 151,636 193,684 347,422 637,086 Other 139,486 613,592 283,352 450,783 662,225
Transfers 648,626 611,727 479,232 (1,043,442) 42,027
Gain on sale of property 257,194 104,912 174,424 - -
Special Item 1,059,577 (9,075,443) (704,496) - -
Total governmental activities 24,417,848 35,606,133 35,131,975 34,475,086 36,743,182 Business-type Activities:
Investment Earnings 2,308,060 2,226,339 2,128,937 2,073,537 2,025,078 Other 95,459 12,179 - - -
Transfers (648,626) (611,727) (479,232) 1,043,442 (42,027) Gain on bond defeasance - - - - -
Extraordinary item - - 704,496 - -
Total business-type activities 1,754,893 1,626,791 2,354,201 3,116,979 1,983,051 Total primary government $ 37,232,924 26,172,741 $ 37,486,176 $ 37,592,065 $ 38,726,233 $ Change in Net Position:
Governmental activities (2,506,820) $ 6,160,982 $ 5,477,167 $ (3,845,568) $ 10,377,869 $ Business-type activities 2,144,728 1,956,896 2,470,849 3,638,024 2,763,920 Total primary government $ 8,117,878 (362,092) $ 7,948,016 $ (207,544) $ 13,141,789 $ 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)
(140)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 12,259,774 11,734,058 $ 13,000,934 $ 13,831,113 $ 15,016,822 $ 19,364,272 19,468,221 21,325,436 24,551,320 25,116,979
1,787,568 1,729,336 1,876,407 1,956,998 2,063,404
3,064,500 2,939,221 3,157,258 3,567,128 4,001,578
1,690,687 1,968,094 2,055,932 1,926,617 3,867,144
1,502,934 1,528,199 542,108 (197,845) 2,035,505
269,750 1,007,091 372,853 889,854 1,793,456
- - - - (56,438)
- - - - 928,625
- - - - -
39,939,485 40,374,220 42,330,928 46,525,185 54,767,075
2,096,023 2,140,163 1,640,357 449,236 423,345
- - - - -
- - - - 56,438
- - - 683,028 -
- - - - -
2,096,023 2,140,163 1,640,357 1,132,264 479,783
$ 42,035,508 42,514,383 $ 43,971,285 $ 47,657,449 $ 55,246,858 $ $ 3,343,529 3,119,429 8,571,049 22,163,482 23,671,833
7,258,829 3,490,761 1,321,796 3,791,643 11,499,487
$ 10,602,358 6,610,190 $ 9,892,845 $ 25,955,125 $ 35,171,320 $
CITY OF PICO RIVERA, CALIFORNIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(141)
2013-14 2014-15 2015-16 2016-17 2017-18
General Fund:
Nonspendable $ 25,222,739 $ 25,222,739 $ 25,198,662 $ 25,209,917 $ 25,168,800 Restricted 2,446,856 2,358,919 2,368,600 - -
Committed 9,330,000 9,316,732 9,479,500 9,476,700 9,665,400 Assigned 8,285,480 10,272,833 14,376,800 14,426,700 13,256,200 Unassigned 48,092 4,341,395 12,882,331 10,851,445 12,063,120 Total general fund $ 51,512,618 45,333,167 $ 64,305,893 $ 59,964,762 $ 60,153,520 $ All Other Governmental Funds:
Nonspendable - $ $ - $ - $ - $ 4,508
Restricted 10,669,538 11,366,458 11,074,536 12,927,436 15,566,814 Assigned 600,000 600,000 600,000 600,000 600,000
Unassigned (3,335,743) (2,869,762) (2,141,161) (1,749,394) (1,607,854) Total all other governmental funds $ 7,933,795 $ 9,096,696 $ 9,533,375 $ 11,778,042 $ 14,563,468 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)
(142)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 22,096,478 28,002,854 $ 23,232,000 $ 26,139,104 $ 26,900,752 $ 1,087,825 1,061,066 1,372,990 1,180,688 1,335,720
10,169,300 10,284,000 20,510,328 24,517,211 28,903,778
13,991,300 14,039,900 13,717,940 14,926,791 20,990,019
17,752,704 9,067,136 14,366,714 6,458,368 4,172,944
$ 65,097,607 62,454,956 $ 73,199,972 $ 73,222,162 $ 82,303,213 $ $ - - $ - $ - $ - $
33,195,861 31,791,493 34,780,540 37,428,998 31,670,862
- 600,000 232,477 11,590,609 13,312,296
(1,257,821) (60,712) (1,046,569) (502,874) (1,829,920)
$ 31,938,040 32,330,781 $ 33,966,448 $ 48,516,733 $ 43,153,238 $
CITY OF PICO RIVERA, CALIFORNIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(143)
2013-14 2014-15 2015-16 2016-17 2017-18
Revenues:
Taxes and Assessments 33,100,095 $ 34,083,110 $ 35,534,141 $ 34,592,924 $ 35,567,380 $ Licenses and permits 2,320,618 2,363,477 2,491,636 2,442,190 2,960,639 Intergovernmental 10,891,308 11,703,565 12,214,500 11,927,598 13,433,014 Charges for services 1,964,785 1,889,338 1,871,009 2,124,665 1,851,030 Fines, forfeitures and penalties 1,224,540 1,134,906 1,031,031 898,203 1,002,532 Investment income 244,614 336,077 341,746 488,369 812,776 Miscellaneous 1,333,203 2,535,295 785,171 538,177 5,593,359 Total revenues 51,079,163 54,045,768 54,269,234 53,012,126 61,220,730 Expenditures:
General government 6,884,398 7,183,738 6,805,810 11,819,289 12,938,296 Public safety 10,435,184 11,188,047 10,439,469 11,375,573 11,857,271 Public works 8,561,977 9,621,311 9,707,823 10,255,784 14,095,351 Parks and recreation 4,890,183 4,794,720 4,554,724 5,374,259 6,122,665 Health and welfare 5,339,488 4,840,878 5,266,352 5,587,157 5,311,548 Community development 2,730,123 2,490,769 2,787,070 3,435,809 4,367,766 Pass through to other agencies - - - - -
Loss on sale of land held for resale - - - - -
Capital outlay 5,175,862 7,719,114 7,287,913 2,453,883 1,547,832 Debt service:
Principal retirement 610,000 585,000 635,000 980,000 865,000 Interest and other charges 1,734,538 1,710,638 1,682,562 655,944 1,061,150 Lease Principal - - - - -
Lease Interest - - - - -
Bond issuance costs - - - 520,424 -
payments to refunding escrow agent - - - 2,368,685 -
Total expenditures 49,692,854 46,803,114 49,166,723 54,826,807 58,166,879 Excess (deficiency) of revenues
over (under) expenditures 1,386,309 7,242,654 5,102,511 (1,814,681) 3,053,851 Other Financing Sources (Uses):
Transfers in 11,719,264 7,618,952 19,274,660 3,986,323 3,309,866 Transfers out (12,118,893) (7,987,933) (10,488,538) (5,029,765) (3,767,839) Sale of capital assets - - - - -
- - - 30,470,000 -
Bond premium - - - 3,082,378 -
Payments to refunding escrow agent - - - (33,021,008) - Total other financing sources (uses) (399,629) (368,981) 8,786,122 (512,072) (457,973) Special Item:
Forgiveness of debt - - (90,000) - -
Net change in fund balances 986,680 6,873,673 13,798,633 (2,326,753) 2,595,878 Fund balances - July 1 52,180,282 53,166,962 60,040,635 73,839,268 72,121,110 Fund balances - June 30 53,166,962 $ 60,040,635 $ 73,839,268 $ 71,512,515 $ 74,716,988 $ Debt service as a percentage of noncapital expenditures 5.53% 5.57% 5.53% 8.64% 3.42% Bond issuance
CITY OF PICO RIVERA, CALIFORNIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(144)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 39,179,631 38,653,543 $ 39,647,861 $ 44,310,901 $ 46,700,057 $ 2,212,910 2,861,711 3,209,557 3,612,057 5,776,946
15,079,031 12,973,062 19,310,930 33,355,732 22,698,100
1,443,249 1,819,310 1,234,332 1,437,497 2,338,963
952,095 1,109,430 1,108,568 1,199,256 1,171,765
1,523,385 1,433,476 557,114 (359,384) 1,831,552
996,245 1,436,364 600,081 1,233,409 2,243,586
61,386,546 60,286,896 65,668,443 84,789,468 82,760,969
8,291,063 7,901,483 7,367,989 9,309,236 10,960,791
12,433,612 11,971,740 12,286,345 12,135,586 12,651,644
17,986,339 15,527,553 16,457,143 17,374,179 13,494,769
6,356,907 6,993,470 5,766,663 7,085,982 7,595,935
5,508,857 5,416,605 6,248,362 6,414,485 7,274,930
5,231,905 4,157,152 4,591,099 11,558,866 6,172,894
- - - - -
- - - - -
571,952 1,633,063 64,075 2,559,159 19,036,572
1,155,000 1,090,000 1,190,000 1,230,000 1,285,000
1,601,001 1,530,496 1,565,994 1,522,419 1,472,422
- - - 24,584 25,205
- - - 2,497 1,876
- 398,345 - - -
- - - - -
59,136,636 56,619,907 55,537,670 69,216,993 79,972,038
2,249,910 3,666,989 10,130,773 15,572,475 2,788,931
2,986,078 4,667,515 2,491,287 24,116,170 5,062,125
(2,986,078) (4,667,515) (2,491,287) (25,116,170) (5,062,125) - - - - 928,625
- 14,695,000 - - -
- 703,345 - - -
- - - - -
- 15,398,345 - (1,000,000) 928,625
- - - - -
2,249,910 19,065,334 10,130,773 14,572,475 3,717,556
94,785,737 75,720,403 97,035,647 107,166,420 121,738,895 $ 97,035,647 94,785,737 $ 107,166,420 $ 121,738,895 $ 125,456,451 $
6.17% 5.42% 5.46% 4.66% 4.74%
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(145)
Transient Motor
Fiscal Property Sales Occupancy Vehicle
Year Taxes Tax Tax In-Lieu Tax
2013-14 9,269,468 $ 16,435,053 $ 367,804 $ 28,547 $
2014-15 9,611,244 16,368,367 390,666 27,575
2015-16 10,049,454 17,766,538 417,938 25,896
2016-17 10,591,691 17,637,948 422,313 28,793
2017-18 11,173,640 17,575,729 424,542 33,713
2018-19 11,734,058 19,468,221 461,474 30,845
2019-20 12,209,094 19,364,271 438,232 50,679
2020-21 12,954,453 21,325,436 433,797 46,481
2021-22 13,758,151 24,551,320 533,482 72,962
2022-23 14,953,118 25,116,980 597,129 63,705
Change from
Base Year 2013-14 61% 53% 62% 123%
Source: City of Pico Rivera Finance Division
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE (CONTINUED)
LAST TEN FISCAL YEARS
(146)
Utility Business
Franchise Users License
Tax Tax Tax Total
$ 3,504,363 1,641,171 $ 1,342,826 $ 32,589,232 $
3,525,036 1,646,884 1,370,210 32,939,982
3,385,361 1,654,275 1,432,213 34,731,675
3,276,231 1,582,026 1,210,024 34,749,026
3,142,090 1,703,255 1,382,588 35,435,557
2,939,221 1,729,336 1,454,896 37,818,051
3,064,500 1,787,568 1,209,199 38,123,543
3,157,258 1,876,407 1,611,415 41,405,247
3,567,128 1,956,998 1,393,084 45,833,126
4,001,578 2,063,404 3,270,000 50,065,914
26% 14% 144% 54%
CITY OF PICO RIVERA, CALIFORNIA
REVENUE BASE BY CATEGORY
LAST TEN FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)
(147)
Total Total
Taxable Direct
Fiscal Residential Commercial Industrial Other* Tax-Exempt Assessed Tax Year Property Property Property Property Property Value Rate 2013-14 2,698,550,967 $ 528,061,894 $ 591,638,354 $ 245,353,016 $ 1,942,210 $ 4,065,546,441 $ 0.0941 2014-15 2,849,419,991 534,153,757 608,797,600 255,121,685 1,951,026 4,249,444,059 0.0938 2015-16 3,004,411,938 550,436,822 623,317,693 263,566,626 1,990,006 4,443,723,085 0.0936 2016-17 3,157,571,430 572,434,427 644,340,185 261,458,977 2,020,352 4,443,723,085 0.0933 2017-18 3,334,334,379 590,956,777 695,508,846 292,833,875 2,060,757 4,915,694,634 0.0930 2018-19 3,517,570,969 596,369,740 740,474,135 315,837,843 100,235 5,170,352,922 0.0927 2019-20 3,706,643,219 629,479,041 771,749,293 365,146,561 102,238 5,473,120,352 0.0924 2020-21 3,895,827,995 639,397,804 823,738,292 382,305,577 104,282 5,741,373,950 0.0923 2021-22 4,079,513,033 657,191,391 978,113,682 374,506,281 105,361 6,089,429,748 0.0921 2022-23 4,322,883,001 678,393,685 1,123,348,084 415,534,522 112,567 6,540,271,859 0.0918 *Other property includes recreational, institutional, vacant, and miscellaneous property.
Source: Los Angeles County Assessor 2022/23 Combined Tax Rolls
CITY OF PICO RIVERA, CALIFORNIA
PROPERTY TAX LEVIES AND TAX COLLECTIONS
LAST TEN FISCAL YEARS
(148)
Collections in Final
Fiscal Taxes Percent of Subsequent Year Percent of
Year Levied Amount Levy (Includes Refunds) Amount Levy
2013-14 $ 2,311,646 2,388,030 $ 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%
2022-23 4,048,127 3,903,368 96.42% 144,759 4,048,127 100.00%
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
Collected within the Total Collections to Date
Fiscal Year of Levy
CITY OF PICO RIVERA, CALIFORNIA
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(149)
Agency 2013-14 2014-15 2015-16 2016-17
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 0.09571 0.09907 0.09630 0.09627 LA Community College District 0.04454 0.04017 0.03575 0.03596 LA County Flood Control 0.00000 0.00000 0.00000 0.00000 Little Lake City School District 0.08537 0.07964 0.06522 0.00000 Los Nietos School District 0.02810 0.03041 0.08062 0.07063 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Montebello Unified School District 0.09457 0.08750 0.08715 0.14705 Rio Hondo Community College Dist 0.02892 0.02821 0.02712 0.02808 Whittier City School District 0.06110 0.05792 0.05757 0.05441 Whittier Union High School Dist 0.04473 0.05270 0.05063 0.06035 Total Direct & Overlapping Tax Rate 1.48654 1.47912 1.50386 1.49625 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 0.09412 0.09381 0.09355 0.09330
(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
(150)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.19173 0.17840 0.17835 0.18754 0.15321 0.14140
0.04599 0.04621 0.02717 0.04016 0.04376 0.02488
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.08396 0.06878 0.06576 0.06442 0.05249 0.05639
0.00350 0.00350 0.00350 0.00350 0.00350 0.00350
0.13514 0.13921 0.09306 0.09706 0.09031 0.12770
0.02748 0.02554 0.02571 0.01361 0.01526 0.01535
0.04781 0.05534 0.05096 0.05151 0.04780 0.04848
0.05781 0.05822 0.05502 0.05433 0.05395 0.05342
1.59342 1.57521 1.49952 1.51214 1.46028 1.47110
0.08917 0.08917 0.08917 0.08917 0.08917 0.08917
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.09301 0.09280 0.09245 0.09231 0.09210 0.09184
CITY OF PICO RIVERA, CALIFORNIA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(151)
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 $ 85,675,510 1.31% $ - 0.00% Vestar California XXVI LLC 80,183,990 1.23% 68,889,447 1.69% Center Point Properties Trust 65,645,880 1.00% - 0.00%
BCORE Mercury Lane Owner LLC 63,240,000 0.97% - 0.00%
Airef Pico Rivera Distribution Center 63,100,000 1.01% - 0.00% TRPF CAM Pico Rivera Venture LLC 56,500,000 0.86% - 0.00% Majestic AMB Pico Rivera 48,991,051 0.75% 41,785,092 1.03% 8540 Whittier Boulevard 42,228,439 0.65% - 0.00%
Wal-Mart Real Estate Business Trust 39,207,236 0.60% 33,235,309 0.82% Pico Rivera Holdings LVT LLC 37,875,481 0.58% - 0.00%
Iron Mountain Information - 0.00% 31,908,174 0.78%
Princeton Medical Holdings LLC - 0.00% 28,442,000 0.70% Showprop Pico Rivera LLC - 0.00% 27,930,753 0.69%
General American Life Insurance Company - 0.00% 27,664,017 0.68% GGF Pico Rivera LLC - 0.00% 26,707,159 0.66%
Bakemark Ingredients West - 0.00% 26,503,382 0.65%
Public Storage Inc - 0.00% 21,761,548 0.54%
$ 582,647,587 8.91% 334,826,881 $ 8.24%
Excludes government and tax-exempt property owners.
Total City Value for 2013-14 $ 4,065,546,441
Total City Value for 2022-23 $ 6,540,271,859
Source: Los Angeles County Assessor 2022-23 and 2013-14 Combined Tax Rolls 2022-23 2013-14
CITY OF PICO RIVERA, CALIFORNIA
TOP 25 SALES TAX PRODUCERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(152)
Taxpayers Business Type Taxpayers Business Type
1 Arco AM PM Service Stations 76 Service Stations
2 Arco AM PM Service Stations Arco AM PM Service Stations 3 Bay Cities Container Light Industrial/Printers Arco AM PM Service Stations 4 Calply Building Materials Bay Cities Container Light Industrial/Printers 5 Chevron Service Stations Cal Wholesale Material Supply Building Materials 6 Chick Fil A Quick-Service Restaurants Chevron Service Stations 7 Cintas Business Services Chevron Service Stations
8 Circle K Service Stations Cintas Business Services
9 Dal Rae Fine Dining Circle K Service Stations
10 Lowes Building Materials Food 4 Less Grocery Stores
11 Marshalls Family Apparel Home Depot Building Materials 12 McDonalds Quick-Service Restaurants Lowes Building Materials 13 Raising Cane's Quick-Service Restaurants Marshalls Family Apparel 14 Ross Family Apparel McDonalds Quick-Service Restaurants 15 Rush Peterbilt Truck Center New Motor Vehicle Dealers Oxnard Building Materials Building Materials 16 Saw Service of America Heavy Industrial Pico Rivera Gas & Carwash Service Stations 17 Shell Service Stations Ross Family Apparel
18 Suez Mobile Water Drugs/Chemicals Rush Peterbilt Truck Center New Motor Vehicle Dealers 19 Sunbelt Rentals Repair Shop/Equip. Rentals Saw Service of America Heavy Industrial 20 Target Discount Dept Stores So Cal Material Handling Warehse/Farm/Const. Equip. 21 Unisource Office Supplies/Furniture Target Discount Dept Stores 22 United Rentals Repair Shop/Equip. Rentals Unisource Office Supplies/Furniture 23 Versai Petroleum Petroleum Prod/Equipment United Rentals Repair Shop/Equip. Rentals 24 Vesta Home Home Furnishings USA Gasoline Service Stations 25 Walmart Supercenter Discount Dept Stores Walmart Supercenter Discount Dept Stores Percentage of Fiscal Year Total Paid by Top 25 Accounts = 2022-23 58.51%
2013-14 64.25%
NOTE: The names are listed in alphabetical order and not by sales tax volume.
Source: HdL Companies, State Board of Equalization
Fiscal Year 2022-23 Fiscal Year 2013-14
CITY OF PICO RIVERA, CALIFORNIA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(153)
Finance
Net Authority Net Total Percentage Debt
Fiscal County Pension Revenue Revenue Pension Primary of Personal Per Year Deferral Obligation (3) Bonds (1) Bonds Obligation (3) Government Income Capita 2012-13 - (2) - 33,475,542 48,155,000 - 81,630,542 7.03% 1,295 2013-14 - (2) - 32,845,617 46,422,768 - 79,268,385 6.69% 1,241 2014-15 - (2) 24,172,149 32,190,692 44,404,619 3,474,478 104,241,938 8.68% 1,631 2015-16 - (2) 25,366,413 31,510,767 42,271,468 3,646,800 102,795,448 8.66% 1,599 2016-17 - (2) 28,485,966 32,438,350 40,013,319 4,096,656 105,034,291 8.85% 1,640 2017-18 - (2) 31,078,035 31,439,322 37,620,169 4,473,787 104,611,313 8.73% 1,628 2018-19 - (2) 30,962,654 45,590,194 35,082,018 4,967,451 116,602,317 9.12% 1,821 2019-20 - (2) 33,878,412 44,277,732 32,393,869 5,146,415 115,696,428 8.61% 1,826 2020-21 - (2) 34,179,750 42,930,248 29,545,719 6,603,167 113,258,884 7.61% 1,793 2021-22 - (2) 23,242,557 41,542,775 9,577,364 5,214,285 79,576,981 4.79% 1,295 2022-23 - (2) 35,272,270 40,100,302 8,412,506 7,520,930 91,306,008 5.38% 1,497 (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) 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. (3) City implement GASB 68 in FY 14/15 and recognize pension obligation. Prior Year Governmental Activities information had been updated to provide figures from FY 17-18 to FY 20-21.
Governmental Activities Business-Type Activities
CITY OF PICO RIVERA, CALIFORNIA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(154)
Finance
General Authority Total Percent of Debt
Fiscal Obligation Revenue Primary Assessed Per
Year Bonds Bonds (1) Government Value Capita
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
2022-23 - 40,100,302 40,100,302 0.613% 657.65
(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.
Note: Details regarding the outstanding debt can be found in the notes to the financial statements.
Source: City of Pico Rivera Finance Department
CITY OF PICO RIVERA, CALIFORNIA
DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
(155)
2022-23 Assessed Valuation: $ 6,540,271,859
Total Debt City’s Share of
6/30/2023 % Applicable (1) Debt 6/30/2023
DIRECT DEBT
City of Pico Rivera 100.000% 23,965,000 23,965,000
TOTAL DIRECT DEBT 23,965,000 23,965,000
OVERLAPPING DEBT:
Metropolitan Water District 19,215,000 0.180% 34,587
Los Angeles Community College District 4,500,730,000 0.013% 585,095 Rio Hondo Community College District 170,234,080 13.077% 22,261,511 El Rancho Unified School District 93,268,121 99.996% 93,264,390 Montebello Unified School District 248,196,585 0.689% 1,710,074 Whittier Union High School District 127,929,361 0.517% 661,395 Los Nietos School District 40,882,715 0.039% 15,944
Whittier City School District 68,080,000 1.918% 1,305,774 TOTAL OVERLAPPING DEBT 5,268,535,862 119,838,771
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 143,803,771 (1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.
Ratios to 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt…...... 1.83%
Total Direct Debt ($23,965,000)................................ 0.37% Combined Total Debt …............................................... 2.20% (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and nonbonded lease obligations.
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CITY OF PICO RIVERA, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(156)
2013-14 2014-15 2015-16 2016-17
Debt limit $ 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 Total net debt applicable to limit - - - -
Legal debt margin $ 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 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 $ 4,249,444,059 $ 4,443,723,085 $ 4,699,049,996 Add back: exempt real property 41,603,696 57,920,073 43,475,869 37,669,146 Total assessed value 4,123,466,514 $ 4,291,047,755 $ 4,487,198,954 $ 4,736,719,142 $ Debt limit (15% of total assessed value) 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 $ Debt applicable to limit - - - -
Legal debt margin $ 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 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 2022/23 Combined Tax Rolls Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION (CONTINUED)
LAST TEN FISCAL YEARS
(157)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
$ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 - - - - - -
$ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$ 4,960,278,250 $ 5,223,378,886 $ 5,524,451,955 $ 5,741,373,950 $ 6,134,582,164 $ 6,583,483,323 44,583,616 53,025,964 51,331,603 45,418,617 45,152,416 43,211,464 $ 5,004,861,866 $ 5,276,404,850 $ 5,575,783,558 $ 5,786,792,567 $ 6,179,734,580 $ 6,626,694,787 $ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 - - - - - -
$ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
PLEDGED REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
(158)
Less: Net Revenue
Fiscal Gross Direct Available for 1999 Bonded
Year Revenue (1) Costs (2) Debt Service Debt (P & I) Coverage 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% 2022-23 13,782,113 (5,779,647) 8,002,466 1,363,775 5.87% (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 $ 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
2022-23 57,424,276 995,000.00 926,250 1,921,250 29.89
(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 $ 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
2022-23 1,167,903 290,000.00 546,169 836,169 1.40
(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
2022-23 6,716,953 3,500,000 176,972 3,676,972 1.83
(1) Total Successor revenues
(2) In 2021, the 2001 Redevelopment Agency Tax Allocation Refunding Bonds was refunded 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
(159)
Per
Personal Capita
Fiscal Income Personal Unemployment
Year Population (1) (in thousands) (2) Income (2) Rate (3) 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%
2022-23 60,975 1,698,355 27,853 5.00%
(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: HDL Companies
CITY OF PICO RIVERA, CALIFORNIA
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(160)
% of Total % of Total
City City
Employer Business Type Employees Employment Employees Employment Wal-Mart Supercenter Department Store 250 0.90% 600 2.22% Feit Electric Company, Inc Warehouse For Distribution 199 0.72% Target Department Store 191 0.69% 186 0.69%
Parts Authority LLC Wholesale Business 191 0.69%
Riviera Nursing & Convalescent Healthcare & Hospitals 173 0.62% Vesta Home Home Furnishing & Appliances 142 0.51%
Manning Beef LLC Meat - Miscellaneous 125 0.45%
American Meat Companies Meat - Wholesale 120 0.43%
El Super Grocery Store 104 0.37%
Unisource Solutions Wholesale Business 103 0.37%
BakeMark Manufacturer 300 1.11%
Los Angeles County Sheriff Patrol Station 153 0.57%
Home Depot Retailer 138 0.51%
Rush Truck Center New Motor Vehicles 112 0.41%
Bimbo Bakeries Distribution Center 110 0.41%
Lowes Retailer 105 0.39%
Total Top Employers 1,598 5.75% 1,704 6.31%
Total City Employment (3) 27,800 27,000
(1) Excludes government and tax-exempt property owners, Source: HDL Companies (2) Source: CAFR 2013-2014, removed government and tax-exempt owners (3) Total City Labor Force provided by EDD Labor Force Data. 2022-23 (1) 2013-14 (2)
CITY OF PICO RIVERA, CALIFORNIA
FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
(161)
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 General Government 29 30 25 30 30 31 30 29 31 32
Public Safety 5 5 8 8 9 9 7 7 7 7
Public Works 47 54 55 64 65 66 51 51 48 53
Parks & Recreation 20 21 21 26 26 27 24 25 26 27
Community Development 16 16 15 20 19 20 20 20 24 24
Water 11 11 8 9 10 10 10 10 9 11
Total 128 137 132 157 159 163 142 142 145 154
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
(162)
Function 2013-14 2014-15 2015-16 2016-17
Police:
Calls dispatched 21,602 21,878 24,523 26,177
Crime reports 9,775 10,725 10,268 7,275
Moving citations 4,822 4,250 3,296 3,146
Parking citations - Sheriff 147 549 171 158
Parking citations issued by Public Safety 15,152 16,303 15,468 16,285 Streets and Highways:
Asphalt repair (in tons) 160 427 100 2,523
Curb & gutter repair (lineal ft.) 26 530 500 146
Sidewalk repair (lineal ft.) 877 1,200 1,600 2,523
Traffic signals maintained 42 45 47 47
Water:
Number of customer accounts 9,393 9,400 9,435 9,435
Average daily consumption (millions of gallons) 5 5 4
Water samples taken (annual) 900 1,162 520
Sewers:
Feet of sewer mains root cut/chemically treated 11 11 0* 0 Maintenance:
Square ft. graffiti removal 95,353 101,419 100,000 150,000 Street sweeping miles 21,285 21,285 10,400 21,285
Trees trimmed per year 4,998 4,258 5,000 4,000
Culture and Recreation:
Youth sports 856 856 818 671
Aquatics 16,179 16,179 6,960 10,715
Recreation classes 16,415 16,415 4,825 4,932
Senior Center participants 117,978 117,978 110,632 135,889 (A) Information is not available
(*) City sewer rights were returned to LA County Public Works in FY 2015-16 Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
OPERATING INDICATORS BY FUNCTION (CONTINUED)
LAST TEN FISCAL YEARS
(163)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
25,363 22,854 31,780 29,039 29,532 30,863
6,680 6,288 5,969 5,255 5,563 5,655
3,931 3,216 1,770 2,720 3,168 2,480
69 167 74 20 22 65
15,985 28,037 16,543 20,974 20,957 20,950
7,263 4,813 4,061 1,312 12,114 30,556
121 200 606 1,220 5,904 9,477
7,263 208 2,008 2,400 9,010 3,449
47 47 47 48 48 47
9,435 9,435 9,450 9,452 9,470 9,514
4444
728 749 840 650
00 0 0 0 0
229,000 117,536 89,299 260,000 265,000 273,000
21,285 21,285 21,285 21,285 21,285 21,285
3,000 2,500 751 614 3,035 2,569
517 825 292 0 530 1,440
10,502 11,114 8,811 0 0 0
7,076 10,398 5,107 2,289 1,678 1,307
151,669 135,354 97,080 0 5,500 35,636
Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
(164)
Function 2013-14 2014-15 2015-16 2016-17
Public Safety:
Police stations 1 1 1 1
Number of patrol units 12 12 12 14
Highways and Streets:
Miles of streets 115.2 115.2 115.2 115.2
Traffic Signals 43 43 47 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
Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION (CONTINUED)
LAST TEN FISCAL YEARS
(165)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
1 11111
14 14 14 14 14 14
115.2 115.2 115.2 115.2 115.2 115.2
47 47 47 48 50 53
8 88888
3 33333
98 98 98 98 98 98
285 285 285 285 285 285
17 17 17 17 17 17
8 88899
6 66666
Fiscal Year
City of Pico Rivera • 6615 Passons Boulevard • Pico Rivera, CA 90660 Tel. no. (562) 942-2000 • www.pico-rivera.org
City of Pico Rivera
End of the Year
Accomplishments Report
Fiscal Year 2022-2023
Enclosure 2
14b
Steve Carmona
City Manager
Angelina Garcia
Assistant City Manager
Cynthia Ayala
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
Noe Negrete
Director of Public Works
2 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 3 On behalf of the City Council and the entire City organization, I would like to bid farewell to FY 2022-23 and step into a new chapter. I am delighted to reflect on the remarkable achievements that have shaped our City throughout the past year. Together, we have navigated challenges, embraced opportunities, and built a stronger, more vibrant community.