The ACFR provides a financial summary for the City of Pico Rivera (City) and its component units: the Housing Agency Authority, the Water Authority, and the Successor Agency. Major sections of the ACFR are the Introductory Section (including the Transmittal Letter and the Management's Discussion and Analysis), the Finance Section, the Notes to the Financial Statements, and the Statistical Section.
Management's Discussion and Analysis (MD&A) immediately follows the independent auditor’s 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 numerous financial schedules providing information on various aspects of the City's financial standing. The City's net position (assets less liabilities) increased by $36 million, from $374.7 million to $410.7 million. Citywide revenues and transfers totaled $138.3 million, reflecting an increase of $12.9 million over the prior year. Expenses were $102.3 million, representing an increase of $12.2 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 the 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 and 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 2024- 25 budget, which the City Council adopted on June 25, 2024.
Significant City Accomplishments and Initiatives
The City has experienced challenges and successes in FY 2023-24, and we are thrilled to celebrate these achievements. Our City is now better equipped to handle the issues that our community and local government will face in the future. The accomplishments throughout this fiscal year demonstrate our dedication to working together for the greater good of our community. These achievements, along with numerous others, show our unwavering commitment to carrying out our strategic initiatives, advancing the City's economic well-being, and improving the standard of living for both our residents and businesses.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
The City’s performance goals, priorities, and strategies focus on the following areas:
Fiscal and Organizational Sustainability
Economic Development and Land Use
Infrastructure
Health, Wellness and Safety
Community Engagement
The City’s FY 2023-24 Accomplishments Report brochure is attached in its entirety to this report as Enclosure 2. The report comprises the City's Guiding Plan, projects, awards, and recognition grouped according to strategic priorities and the plans and goals for the FY 2024-25.
The entire ACFR can be found on the City's website, along with the prior year's financial statements, to promote transparency. In addition, the FY 2023-24 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 2023-24 General Fund revenues and transfersin totaled $62 million for the year, compared to $59.4 million in expenditures and transfers-out. The difference of $2.7 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 2023-24 General Fund Results:
Operating Revenues $ 60,364,578
Transfers In - Others 1,679,327
Revenues & Transfers In Total $ 62,043,905
Operating Expenditures * $ 50,132,168
Transfers Out - Others 9,242,796
Expenditures & Transfers Out Total $ 59,374,964
FY 2023-24 Results (Revenues Less Expenditures): $ 2,668,941 * Amounts are grouped and presented differently from the ACFR statements for this report.
The positive result stems from greater revenues than the budget and expenditures below the budget due to the following major components:
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).
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
For the fiscal year that concluded on June 30, 2024, the CGF revenues totaled $60.36 million, with the General Fund revenues accounting for $59.33 million. These revenues outperformed the Amended Budget estimates by approximately $1.03 million or 3%.
The most substantial positive variances can be attributed to Sales Tax and Business License revenue.
The City’s financial position remained stable at the close of the FY 2023-24, supported by steady revenue streams and prudent fiscal management. Sales Tax, Property Tax, Business License Tax, and Use of Money revenues continued to perform well, reflecting sustained economic activity. The City faced several economic factors, such as stable inflation rates, ongoing labor market recovery, and financial market fluctuations, which may continue to impact future revenue forecasts. Despite these challenges, the City remains vigilant in monitoring these trends and is committed to proactive fiscal management to ensure the continued delivery of essential services. Local economic indicators have continued to exhibit growth. Notably, sales tax revenues in California have continued to show growth, reflecting the state’s robust consumer demand. • Sales Tax revenues came in higher than adjusted budget estimates by $1.2 million. Year-end results exceeded estimates due to inflation, robust consumer confidence, and the City's ongoing economic recovery in major sales taxgenerating groups, including State and County Pools, Restaurants and Hotels, and Autos and Transportation. The City experienced a 2.7% year-over-year sales tax trend growth, in contrast with Los Angeles County's negative 1.8% trend.
• Property Tax revenue slightly exceeded budget estimates due to an increase in median home prices compared to the prior year. Continuing the trend from 2022, sales volume held steady from the prior year; the median price continued to increase due to the increase in reassessed home prices upon sale, high demand, and limited properties for sale, as reflected in the 2023/24 tax rolls. The median sale price of Pico Rivera detached single-family homes from January through October 2023 was $701,000, an increase of $34,000 (4.9%) from the median sale price in the same period in 2022. High interest rates and a reduced number of home sales have contributed to a slower sales market. However, due to the high housing demand in Los Angeles County, we are still experiencing an increase in sales prices year after year.
• Utility Users Tax (UUT) came in under the budget estimates due to a decrease in the pricing of natural gas billed charges (piped gas per therm, or UGT) and usage. When comparing Utility (piped) gas prices per therm (UGT), the Bureau of Labor Statistics showed that Los Angeles area households were paying an average of 22% less per UGT in 2023 than in 2022. The normalization of previously inflated utility prices led to lower-than-expected revenue collections in FY 2023-24.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
• Business License Tax (BLT) came in $2 million under the amended budget estimates, primarily due to the discrepancies between actual collections and revenue forecasts based on examination of industry-specific factors and the provision of collection and audit-related services. Staff continues to work with the City’s BLT consultant, HdL, to enforce Measure AB. Despite the underperforming revenue estimates, the BLT revenues in FY 2023-24 are higher than those collected in the prior year by $1.2 million. In FY 2024-25, the City anticipates a further increase in Business License revenues as businesses increasingly adjust to the updated fee structures when renewing their licenses one and a half years after the implementation of Measure AB. • Charges for Services, which include Parks and Recreation revenues, came in over budgeted estimates primarily due to increased demand and participation in Parks and Recreation programs and services. The most notable increases are in Contract Programs, Camps, Field and Facility Rentals, Youth Sports, and Trips and Tours, which indicate the diverse needs of the community. • License and Permits came in under budgeted estimates primarily due to a decrease in Plan Check fees. In FY 2022-23, there were two (2) significant developments. In FY 2023-24, these development projects were deferred to unspecified future dates.
• Franchise Tax came in over the budgeted estimates due to an increase in the price and consumption of electricity generated by utility and service providers operating within the City’s jurisdiction, compared to the prior fiscal year. • Transient Occupancy Tax (TOT), the hotel visitor tax, came in under the budgeted estimates primarily due to the closure of a notable hotel establishment after an extended period of inoperability caused by internal operational modifications. On April 23, 2024, the City Council approved a resolution to subdivide the property at 6540 Rosemead Boulevard, formerly the site of the Knights Inn Hotel, into a 95-unit townhouse condominium development. The project includes the demolition and removal of the existing hotel. While this transition has temporarily impacted TOT revenues, it is anticipated to result in a shift toward higher Property Tax revenue upon the project’s completion. • All Other Revenues came in over budget estimates, which include Fines and Forfeitures, Use of Money, Cost Reimbursement, and Intergovernmental Revenue. The most notable increases are primarily attributed to the Use of Money and Fines and Forfeitures categories. The Use of Money increase is due to enhanced returns on our investment portfolio which includes interest income.
While our investments have shown positive results for FY 2023-24, we must remain cautious as we proceed into FY 2024-25. Our investment portfolio account faces various risks, including market volatility and regulatory and policy CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
changes that could significantly impact the value of our assets. Staff will continue to closely monitor market conditions and requirements to continue to maintain fiscal health while achieving targeted financial goals. The increase in Fines and Forfeitures is attributed to Other Court Fines, primarily from collections related to parking citations.
Table 2 below shows revenues by category.
Table 2. General Fund Revenues by Category
Revenue Source
FY 23-24
ADOPTED
BUDGET
FY 23-24
AMENDED
BUDGET
FY 23-24
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER
(UNDER)
AMENDED
BUDGET
Sales Tax $ 24,937,496 $ 24,937,496 $ 26,136,067 $ 1,198,571 5% Property Tax 14,026,142 14,026,142 14,163,088 136,946 1% Utility Users Tax 4,178,135 4,178,135 3,881,820 (296,315) (8%) Franchise Tax 970,000 970,000 1,048,670 78,670 8%
Transient Occupancy Tax (TOT) 560,000 560,000 522,694 (37,306) (7%) Business License Tax 6,493,628 6,493,628 4,442,065 (2,051,563) (46%) Charges for Services 395,130 395,130 671,973 276,843 41% Licenses & Permits 2,417,665 2,417,665 2,131,485 (286,180) (13%) All Other Revenues* 3,829,360 3,829,360 6,334,965 2,505,605 40% OPERATING REVENUE 57,807,556 57,807,556 59,332,826 1,525,270 3% Transfers In - Others** 1,757,097 1,797,097 1,679,327 (117,770) (7%) TOTAL - GENERAL FUND REVENUE $ 59,564,653 $ 59,604,653 $ 61,012,153 $ 1,407,500 2% *Includes Fines & Forfeitures, Charges for Services, Use of Money, Other Revenue, and Intergovernmental Revenue **Includes Transfer In (Gas Tax)
Table 3 on the next page shows other Combined General Fund Revenues under the General Liability Insurance Fund, the Workers Compensation Insurance Fund, the Water Enterprise Fund, and the Pension Section 115 Trust Fund. [This space intentionally left blank]
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
Table 3. Total Combined General Fund Revenues
General Fund (Fund 100) $ 59,332,826
General Liability Insurance Fund (Fund 105) 572,011
Workers Compensation Insurance Fund (Fund 106) 171,500
Water Enterprise (Fund 551) 114,465
Section 115 Pension Trust Fund (Fund 875) 173,776
Total General Fund Operating Revenues FY 2023-24: 60,364,578 Transfers In 1,679,327
Total General Fund Revenues FY 2023-24: $ 62,043,905
Expenditure
At the end of June, the General Fund expenditures totaled $57.97 million, including operating expenditures of $48.72 million, which were $7.36 million (or 13%) lower than initially estimated in the Amended Budget. At the end of the fiscal year, all departments had expenditures below their budget estimates. Table 4 shows the General Fund expenditures by major category, and the major variances are detailed in Table 5.
Table 4. General Fund Operating Expenditure Summary
• Salaries and Benefits expenditures came in lower than budgeted by $2.17 million, primarily due to an average of 12 vacancies in full-time positions throughout the year.
• Maintenance and Operations came in lower than budgeted by $5.19 million, of which $2.10 million was identified as projects or services continuing into the next fiscal year. As such, these projects and services have been properly included in the Year-End Open Purchase Order report that spans all departments. Other variances were mainly due to ongoing appropriations for programs and multi-year projects that were in progress as of June 30, 2024.
These Council-driven projects require funding over multiple fiscal years.
GENERAL FUND OPERATING EXPENDITURE SUMMARY
FY 23-24
ADOPTED
BUDGET
FY 23-24
AMENDED
BUDGET
FY 23-24
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER/
(UNDER)
AMENDED
BUDGET
TOTAL Salaries & Benefits 22,128,607 22,085,572 19,913,213 $ (2,172,359) (10%) TOTAL Maintenance & Operations 31,259,543 34,003,675 28,811,480 (5,192,195) (15%) TOTAL GENERAL FUND OPERATING EXPENDITURE SUMMARY $ 53,388,150 56,089,247 48,724,692 $ (7,364,555) (13%) CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
Examples include the Community Economic and Development (CED) Strategic Plans and Studies, upgrades to City facilities, online permitting services, community outreach enhancements, etc.
Table 5. General Fund Expenditures by Department
DEPARTMENT / EXPENDITURE CATEGORY
FY 23-24
ADOPTED
BUDGET
FY 23-24
AMENDED
BUDGET
FY 23-24
ACTUALS
$
AMENDED
BUDGET
vs.
ACTUALS
% OVER/
(UNDER)
AMENDED
BUDGET
ADMINISTRATION
Salaries & Benefits $ 1,656,809 $ 1,656,809 $ 1,624,604 $ (32,205) (2%) Maintenance & Operations 747,174 1,272,358 808,424 (463,934) (36%) TOTAL ADMINISTRATION 2,403,983 2,929,167 2,433,028 (496,139) (17%) PUBLIC SAFETY ***
Law Enforcement - Los Angeles County Sheriff 13,964,004 14,299,669 13,122,134 Flock Safety 106,965
PM Law Enforcement Services, LLC 60,000
Soundthinking, Inc. (ShotSpotter) 49,500
Southwest Patrol, Inc. 27,720
TOTAL PUBLIC SAFETY 13,964,004 14,299,669 13,366,319 (933,350) (7%)
ADMINISTRATIVE SERVICES
Salaries & Benefits 2,371,763 2,299,728 1,786,968 (512,760) (22%) Maintenance & Operations 1,013,613 1,099,716 1,039,895 (59,821) (5%) TOTAL ADMINISTRATIVE SERVICES 3,385,376 3,399,444 2,826,863 (572,581) (17%) COMMUNITY & ECONOMIC DEVELOPMENT ****
Salaries & Benefits 4,067,240 4,070,240 3,513,053 (557,187) (14%) Maintenance & Operations 3,217,901 3,850,716 1,363,993 (2,486,723) (65%) TOTAL COMMUNITY & ECONOMIC DEVELOPMENT 7,285,141 7,920,956 4,877,046 (3,043,910) (38%)
HUMAN RESOURCES
Salaries & Benefits 799,375 821,375 830,319 8,944 1%
Maintenance & Operations 434,137 412,137 337,859 (74,278) (18%) TOTAL HUMAN RESOURCES 1,233,512 1,233,512 1,168,179 (65,334) (5%)
PARKS & RECREATION
Salaries & Benefits 5,811,854 5,815,854 5,218,405 (597,449) (10%) Maintenance & Operations 1,833,050 2,208,935 1,672,922 (536,013) (24%) TOTAL PARKS & RECREATION 7,644,904 8,024,789 6,891,327 (1,133,462) (14%)
PUBLIC WORKS
Salaries & Benefits 5,406,534 5,406,534 5,030,140 (376,394) (7%) Maintenance & Operations 5,491,644 6,297,624 6,198,411 (99,213) (2%) TOTAL PUBIC WORKS 10,898,178 11,704,158 11,228,551 (475,607) (4%) Non-Departmental
Salaries & Benefits 2,015,032 2,015,032 1,909,723 (105,309) (5%) Maintenance & Operations 4,558,020 4,562,520 4,023,656 (538,864) (12%) TOTAL NON-DEPARTMENTAL 6,573,052 6,577,552 5,933,378 (644,174) (10%) TOTAL GENERAL FUND OPERATING EXPENDITURES 53,388,150 56,089,247 48,724,692 (6,431,205) (11%) Transfers Out - Operating 1,065,000 1,065,000 1,065,000 - 0% Transfers Out - Non-Operating 5,111,503 8,221,473 8,177,796 (43,677) (1%)
TOTAL GENERAL FUND EXPENDITURES &
TRANSFERS OUT $ 59,564,653 $ 65,375,720 $ 57,967,488 $ (7,408,232) (11%) CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
Table 6 shows the Other General Fund expenditures under the Liability Claims, Workers’ Compensation Claims Funds, Strategic Goals-CED, and our Section 115 Pension Trust Fund.
Table 6. Total General Fund Expenditures
General Fund (Fund 100) $ 48,724,692
General Liability Insurance Fund (Fund 105) 938,412
Workers Compensation Insurance Fund (Fund 106) 95,085
Strategic Goals-CED (Fund 180) 366,234
Section 115 Pension Trust Fund (Fund 875) 7,745
Total General Fund Operating Expenditures FY 2023-24: 50,132,168 Transfers Out 9,242,796
Total General Fund Revenues FY 2023-24: $ 59,374,964
Discussion of departments with significant variances from the amended budget are as follows:
• Administration year-end expenditures came in 17% lower than the amended budget, primarily due to a vacant position in the City Clerk’s division and ongoing contracts for projects, such as the Climate Action Plan, the Historical Whittier Blvd Multi-Modal Revitalization Plan, and the Whittier Narrows Dam projects, that will continue into FY 2024-25.
• Public Safety year-end expenditures came in 7% below the budget, primarily due to some public safety enhancements, such as the services provided by Southwest Patrol Inc., which started late in FY 2023-24 and were carried over into FY 2024-25.
• Administrative Services year-end expenditures came in 17% lower than the amended budget due to vacancy salary savings and lower professional services expenditures. The ongoing professional services expenditures for some software licensing and business license tax in the Administrative Services and IT budget were lower, as the projects and programs will continue into FY 2024-25. • Community and Economic Development actual expenditures came in 38% 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 CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
into FY 2024-25. The contracts and projects include Professional and Contracted Services such as the Mobile Home Rent Stabilization Ordinance services, implementation of the Online Permit Program, Architectural Review services, Vehicle Miles Traveled development services, the Emergency Operations Center, and other Community and Economic Development Strategic Plans and Studies that are expected to be ongoing in FY 2024-25. • Human Resources came in 5% under budget, mainly due to slightly reduced Maintenance and Operations expenditures in investigative and legal services.
Additionally, expenditures on professional services related to personnel matters, including the Affordable Care Act and IRS reporting, were lower than expected. • Parks and Recreation came in 14% under budget, mainly due to salary savings from vacant full-time and part-time positions, primarily in Recreation Administration, Recreation Facilities and Programs, Senior Services, Camps, and Marketing and Promotions. Additionally, Maintenance and Operations 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, and the Special Events division holding two (2) fewer events in FY 2023-24 compared to FY 2022-23.
• Public Works came in 4% under budget due to a combination of salary savings from an average of three (3) vacant positions. Maintenance and Operations expenditures came in under budget, primarily due to ongoing professional and contracted services for architectural and engineering services, street and sewer maintenance services, and facility and park repair projects that are expected to continue in FY 2024-25.
• 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 slightly less than the budgeted amount and included a combination of $5.11 million, $1.3 million, and $1.09 million, and $678 thousand to fund Capital Improvement Projects, including Street Resurfacing and Sewer Main Improvement projects, Smith Park turf replacement, vehicle replacement, Median and Parkway Beautification project, Teen Center project, Aquatic Center, and the Senior Center Restrooms and ADA Improvement project.
Fund Balance – General Fund
The FY 2023-24 General Fund operating revenue actuals are $1.4 million higher than the amended budget due to stronger than anticipated Sales Tax, Property Tax, CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
Business License, and Use of Money revenues. The actual General Fund operating expenditure is below the amended budget by $7.4 million, resulting from staff vacancies throughout the year and the continuation of some programs and projects into FY 2024-
25. Table 7 reflects the General Fund Balance per GASB 54 classifications as of June 30, 2024.
Table 7 – Fiscal Year End 2023-24 General Fund Balance
General Fund Balance
Balance as of
June 30, 2023
FY 2023-24
Revenues
FY 2023-24
Expenditures
Balance as of
June 30, 2024
Nonspendable (Advances Receivable and Others) $ 26,900,752 $ 27,360,759 Committed (Fund Balance Requirement - 50% of GF Revenues ) 28,903,778 29,660,398 Restricted (Pension Contribution and Others) 1,335,720 1,510,564 Assigned (Fund Balance Policy Designations) * 20,990,019 25,239,889 Unassigned (See Table 8 for Unassigned Balances) 4,139,702 1,167,302 $ 82,269,971 62,043,905 (59,374,964) $ 84,938,912
* The assigned fund balance includes $10,775,626 in appropriations previously approved by the City Council, Non-spendable Fund Balance
The City has over $27 million in long-term receivables/advances in the non-spendable form at the end of FY 2023-24.
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, $29,660,398 was designated as the Reserved/Committed General Fund Balance as of June 30, 2024.
Restricted Fund Balance
At the end of FY 2023-24, most of the balance was due to the PARS Section 115 account’s balance of $1,454,751, which was restricted to pension contributions.
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 a 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 Benefits (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:
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
• 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 the other combined General Fund balances of $2,397,989, open purchase orders of $2,097,663, appropriations of $10,775,626 previously approved by the City Council, and a few items outlined below. These planned appropriations were not expensed by June 30, 2024, and were carried over into FY 2024-25. A list of the Open Purchase Orders is attached (Enclosure 3).
Assigned Fund Balance – Other Designations
• Smith Park Aquatic Center - Staff has been actively pursuing grant opportunities for the project. If additional funding is obtained, staff will reassess the project budget and seek the City Council’s approval to reallocate some or all of the General Fund designation of $5,838,211 for the project to other imminent operating and/or CIP needs.
• Rio Hondo Park (CIP. 50097): Staff has been pursuing grant opportunities to address a $1 million funding shortfall for the Rio Hondo Park Renovation Project.
On February 27, 2024, staff recommended designating $1 million from the FY 2022-23 surplus to the project if grant funding could not be secured. Despite exploring various options, the City will need to cover the $1 million shortfall from the General Fund. Therefore, staff has included this designation in the assigned fund balance.
• Public Safety Contracts – The City allocated $14,248,970 for Law Enforcement Contracted Services (100.15.1500-54500) in the FY 2023-24 budget, with a remaining balance of $207,672. As part of the City's ongoing commitment to the health, wellness, and safety of the community, efforts have been made to strengthen public safety through partnerships with the Los Angeles County Sheriff’s Department, Los Angeles Probation Office, SoundThinking for ShotSpotter gunshot detection, Southwest Patrol for increased security presence in parks, and Netwatch for proactive video monitoring. The remaining balance of $207,672 can be designated toward future enhancements in public safety.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
• Property Acquisitions – Staff recommends reserving $1 million for property acquisition to support the City’s long-term goals of expanding public services, infrastructure, and community development. Securing this funding will allow the City to act quickly on strategic opportunities for land or building purchases, ensuring it is well-positioned to meet future needs for public facilities or other essential projects that enhance the quality of life for its residents. • General Plan Maintenance Fees – The City collects these 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 $64,531 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 $290,674 from the General Fund Unassigned Balance to the Liability Claims Fund.
o Liability Claims Fund (Fund 105) – In FY 2023-24, the City exceeded its budget for insurance claim payments by $290,674, resulting in a fund deficit of the same amount in the Liability Claims Fund as of June 30, 2024. This overage was primarily due to claims filed in prior years but settled during the current fiscal year. Many of these claims remained inactive for extended periods due to factors such as court and attorney unavailability and delays exacerbated by COVID-19. To rectify this negative balance appropriately, staff recommends transferring $290,674 from the General Fund to the Liability Claims Fund. This transfer will not impact the net Unassigned General Fund Balance, as both the General Fund and Liability Claims Fund are consolidated within a single fund in the ACFR.
In summary, at the end of FY 2023-24, the total Assigned General Fund Balance was $25,239,888, resulting in an Unassigned General Fund Balance (Undesignated Reserve) of $1,167,302. Staff recommends allocating the entire $1,167,302 to address the following emerging priorities:
• Various Park Kitchen and Concession Equipment Replacement - $200,000 In 2013, the City renovated most park facilities, installing refrigerators, freezers, and ice makers with a lifespan of 10-12 years. As a result, many of these appliances are aging and require frequent repairs, costing approximately 50% of the price of new units. Staff recommends designating $200,000 from the General Fund Unassigned Fund Balances to replace 11 refrigerators, 10 freezers, and 6 ice makers at various park facilities. This replacement will reduce repair costs, enhance efficiency, and provide long-term savings.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
• Washington Blvd over the Rio Hondo Channel – Bridge - $246,000 On August 7, 2024, damage occurred to the Washington Boulevard Bridge over the Rio Hondo Channel during work associated with the Major Corridors Median Beautification Project. While removing a curb and median, the contractor inadvertently cut through the reinforced concrete bridge deck, resulting in a hole.
Public Works responded promptly by securing the area with a steel plate, installing caution devices, and closing the westbound left-turn lane onto Bluff Road.
Emergency repairs are necessary to address the damage, as the bridge deck will be critical for traffic diversions during the future replacement of the Washington Boulevard Bridge. Public Works solicited bids from three (3) contractors and plans to award the contract and commence repairs immediately. A report will be presented to the Council on January 28, 2025.
Since the repairs were unanticipated, no funding was allocated. Staff recommends allocating $82,000 from Proposition C Funds and $246,000 from the Unassigned General Fund Balance, totaling $328,000, to cover the projected expenses. • Health and Wellness Programs - $100,000
To foster a healthier and more engaged workforce, staff recommends designating $100,000 to support a comprehensive health and wellness program. This investment will fund programs such as imaging screenings, nutrition counseling, mental health resources, wellness challenges, and improving employee well-being, productivity, and organizational stability.
• Section 115 Pension Trust - $621,302
According to the most recent CalPERS valuation report, the City’s Unfunded Accrued Liability (UAL) was $48.9 million as of June 30, 2023, reflecting an increase of $4.1 million from the previous fiscal year. Please note that the valuation report is typically about a year behind. The report also indicates that the City’s future contributions and UAL are expected to increase over the next five (5) years.
Since January 2018, the City has established a Section 115 Pension Trust with Public Agency Retirement Services (PARS), initially funded with $1 million. As of June 30, 2024, the account balance had grown to $1,454,751, reflecting an average annual return of 5.9% over six (6) years. This performance notably exceeds the
3.5% average annual return for Treasury Bonds during the same period, as reported by the U.S. Treasury (https://fiscaldata.treasury.gov/datasets/average-interest-ratestreasury-securities/average-interest-rates-on-u-s-treasury-securities).
To strengthen the City's financial resilience and address rising pension liabilities, staff recommends an additional $621 thousand investment into the Section 115 Pension Trust. This approach offers a more advantageous return than Treasury Bonds and supports the pension plans' funded status by reducing the potential for future contribution increases. Moreover, it provides a strategic buffer against market CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
uncertainties, enhancing the City's fiscal sustainability and long-term organizational stability.
Should the City Council approve the designation of the recommendations, the Adjusted Unassigned/Undesignated Fund Balance is as follows:
Table 8 – Adjusted General Fund Unassigned Fund Balance Date Description Amount
6/30/2024 General Fund Unassigned Fund Balance 1,167,302 Various Park Kitchen and Concession Equipment Replacement 200,000 Washington Blvd over RHC - Bridge Emergency (CIP 50120) 246,000 Health and Wellness 100,000
Section 115 Pension Trust Fund 621,302
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 9 below reflects the Enterprise Fund balances.
Table 9 – Enterprise Funds Year-End Results
Net Assets / Fund
Water
Operations P.R.I.M.E Golf Course Sports Arena
Revenue $ 15,036,146 $ 28,765,231 $ 1,363,773 $ 365,787 Expenses $ 9,464,358 $ 21,514,631 $ 1,774,466 $ 236,499 Changes in Net Assets $ 5,571,788 $ 7,250,600 $ (410,693) $ 129,288 Beginning Fund Balance $ 39,755,318 $ 10,384,331 $ (3,604,402) $ 701,512 Ending Fund Balance $ 45,327,106 $ 17,634,931 $ (4,015,095) $ 830,800 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, $15.04 million was received from charges for services, and the operating expenses were $9.46 million. The non-operating revenues and expenses included $701,000 in CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
investment income and $2.11 million in grants from the Water Replenishment District for the Per-and Polyfluorinated Substances (PFAS) Treatment. The Water Fund's net position increased by $5.57 million from the prior year to $45.33 million. Revenues exceeded expenses, mainly due to continuing appropriations for programs and projects that were in progress and expected to be completed in FY 2024-25.
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 so that power purchase and rate-setting authority are exercised locally. Southern California Edison (SCE) still provides the transmission and billing of all electricity. 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 concerning 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, the operating revenues received were $28.15 million, and operating expenses were $21.51 million. The implementation of the rate increases approved by the City Council in February 2023 has generated sufficient revenue to sustain PRIME’s operations and maintenance, as well as to fulfill approved reserves in accordance with PRIME’s adopted policies. Moreover, these enable the procurement of future energy at competitive prices. Lower expenses are the result of an extended cold winter in consecutive years, reducing the demand for higher-cost energy. In FY 2023-24, net assets increased by about $7.25 million, mostly due to the City’s continued attention to proactively setting rates and proactively procuring clean energy contracts.
Golf Course Fund
During FY 2023-24, the Pico Rivera Golf Course experienced a slight increase in demand for golf activities, particularly Golf Course Concessions, Green Fees, and Driving Range Fees. However, this was offset by an increase 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. These combined factors resulted in a net operating loss of $411 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 $129,000.
CITY COUNCIL AGENDA REPORT – MEETING OF JANUARY 28, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2024, AND FISCAL YEAR 2023-24 GENERAL FUND YEAR-END RESULTS
Conclusion:
This year-end report presents an overview of the City's General Fund operating revenues and expenditures for FY 2023-24. Staff recommends that the City Council receive and file the report. Staff also recommends the City Council approve budget transfers of $290,674 out of the General Fund Unassigned Balance to reduce the negative balance of the Liability Claims Fund. Lastly, the staff’s recommendation is to allocate the remaining available General Fund Balance of $1,167,302 towards the Parks kitchen and concession equipment replacement, emergency repair for the Washington Boulevard Bridge over the Rio Hondo Channel, Health and Wellness programs, and Section 115 Pension Plan.
Staff will continue to monitor each revenue source and expenditure activity closely and will evaluate opportunities to enhance revenues and reduce expenditures.
Steve Carmona
SC:AG:JG:DS:ep
Enclosures: 1) Annual Comprehensive Financial Report (ACFR), Year Ending June 30, 2024
2) City of Pico Rivera End of the Year Accomplishments Report, FY 2023- 24 3) General Fund Purchase Orders Rolled over to FY 2024-25 Fiscal Year Ended June 30, 2024
PICO RIVERA ACFR
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
2024
City of
California
Enclosure 1
CITY OF PICO RIVERA
CALIFORNIA
www.pico-rivera.org
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
Prepared by:
Administrative Services
Department
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
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 20
STATEMENT OF ACTIVITIES 21
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
DESCRIPTION OF MAJOR FUNDS 23
BALANCE SHEET 24
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION 26
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 27
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES 29
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 30
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION 31
STATEMENT OF CASH FLOWS 32
FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND 34
STATEMENT OF FIDUCIARY NET POSITION 35
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 36
NOTES TO FINANCIAL STATEMENTS 37
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN 88
SCHEDULE OF CONTRIBUTIONS – MISCELLANEOUS PLAN 90
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – COUNCIL PLAN 92
SCHEDULE OF CONTRIBUTIONS – COUNCIL PLAN 94
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS 96
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN 97
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 98
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND 99
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND 100
COUNTY GRANTS SPECIAL REVENUE FUND 101
STATE GRANTS SPECIAL REVENUE FUND 102
CAPITAL IMPROVEMENT CAPITAL PROJECT FUND 103
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 104
SUPPLEMENTARY INFORMATION
OTHER GOVERNMENTAL FUNDS
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 105
COMBINING BALANCE SHEET 107
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 112
SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL
REVENUE FUND 118
STATE GAS TAX SPECIAL REVENUE FUND 119
LIGHTING ASSESSMENT DISTRICT SPECIAL REVENUE FUND 120
PROP A SPECIAL REVENUE FUND 121
PROP C SPECIAL REVENUE FUND 122
MEASURE R SPECIAL REVENUE FUND 123
MEASURE M SPECIAL REVENUE FUND 124
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
HOME GRANT SPECIAL REVENUE FUND 125
CALHOME GRANT SPECIAL REVENUE FUND 126
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND 127
ECONOMIC SUSTAINABILITY SPECIAL REVENUE FUND 128
IMAGE ENHANCEMENT SPECIAL REVENUE FUND 129
SEWER MAINTENANCE SPECIAL REVENUE FUND 130
REACH GRANTS SPECIAL REVENUE FUND 131
CABLE/PEG SUPPORT SPECIAL REVENUE FUND 132
TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND 133 MEASURE W SPECIAL REVENUE FUND 134
FEDERAL GRANTS SPECIAL REVENUE FUND 135
PARAMOUNT/MINES LANDSCAPE MAINTENANCE ASSESSMENT
CAPITAL PROJECTS FUND 136
DESCRIPTION OF NONMAJOR ENTERPRISE FUND
NONMAJOR ENTERPRISE FUND – COMBINING STATEMENT OF NET
POSITION 138
OTHER ENTERPRISE FUNDS – COMBINING STATEMENT OF
REVENUES, EXPENSES, AND CHANGES IN NET POSITION 139
STATISTICAL SECTION (UNAUDITED)
DESCRIPTION OF STATISTICAL SECTION CONTENTS 140
FINANCIAL TRENDS
NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS 141
CHANGE IN NET POSITION – LAST TEN FISCAL YEARS 143
FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN
FISCAL YEARS 147
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS 149
REVENUE CAPACITY
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE – LAST TEN FISCAL YEARS 151
REVENUE BASE BY CATEGORY – LAST TEN FISCAL YEARS 153
PROPERTY TAX LEVIES AND TAX COLLECTIONS – LAST TEN
FISCAL YEARS 154
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES – LAST TEN YEARS 155
CITY OF PICO RIVERA, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
PRINCIPAL PROPERTY TAXPAYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 157
TOP 25 SALES TAX PRODUCERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 158
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS 159 RATIOS OF GENERAL BONDED DEBT OUTSTANDING – LAST TEN
FISCAL YEARS 160
DIRECT AND OVERLAPPING DEBT 161
LEGAL DEBT MARGIN INFORMATION – LAST TEN FISCAL YEARS 162
PLEDGED REVENUE BOND COVERAGE
1999 WATER AUTHORITY REVENUE BONDS – LAST TEN FISCAL YEARS 164 2016 LEASE REVENUE BONDS 164
2018 CERTIFICATES OF PARTICIPATION 164
2021 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING
BONDS 164
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS – LAST TEN FISCAL YEARS 165 PRINCIPAL EMPLOYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 166
OPERATING INFORMATION
FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION – LAST TEN FISCAL YEARS 167
OPERATING INDICATORS BY FUNCTION – LAST TEN FISCAL YEARS 168 CAPITAL ASSET STATISTICS BY FUNCTION – LAST TEN FISCAL YEARS 170
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
Andrew C. Lara
Mayor
John R. Garcia
Mayor Pro Tem
Gustavo V. Camacho
Councilmember
Erik Lutz
Councilmember
Dr. Monica Sanchez
Councilmember
(i)
November 27, 2024
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, 2024
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, 2024, 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, 2024, 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.
(ii)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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 70 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
(iii)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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. 7352 were formally adopted by the City Council on June 25, 2024, 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, 2024, after thorough review by appropriate Administrative Services Department staff, will either be released or re-appropriated for use in Fiscal Year (FY) 2024- 25, 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 2024-25 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 (iv)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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, 2024, 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, 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, 2024
(v)
▪ Health, Wellness and Safety
▪ Community Engagement
Fiscal and Organizational Sustainability Accomplishments Administration
Created a partnership with the Foundation for California Community Colleges (FCCC) for the CivicBuys Cooperative Purchasing Program. CivicBuys Collaborative Purchase Agreement allows the City to leverage the collective purchasing power of multiple agencies to secure competitive pricing on a wide range of goods and services. Successfully obtained the Certification for the City Manager and Assistant City Manager in AI Programs through UC Berkeley's Haas School Emeritus Program in "Artificial Intelligence:
Business Strategies and Applications." Additionally, the Director of Innovation and Communications has been certified through MIT's Professional Education in "Applied Generative AI for Digital Transformation."
City Clerk
Provided Ethics Training for City employees and elected officials to ensure compliance with current laws and regulations.
Completed the conversion of records from the City’s previous Electronic Content Management System from Questys to Laserfiche.
Launched the City’s Records Repository, “Laserfiche”, featuring a personalized instructional video hub on Sharepoint for employees.
Initiated the Document Conversion project by digitally converting approximately 520 Community and Economic Address files.
Successfully updated the City’s Records Retention Schedule Debuted the City’s enhanced Pico Rivera Municipal Code “eCode360” portal PRIME
Successfully exceeded the City’s Reserve Policy by reserving 73% of PRIME revenues through efforts towards prudent fiscal stewardship, competitive rate-setting, and mindful spending.
Administrative Services
Completed the FY 2022-23 Accomplishments Book
Provided Monthly Financial Reporting to t h e C i t y Council on revenues and expenditures for all funds, ensuring financial transparency and reporting. Implemented industry "Best Practices":
o Updated the Investment Policy
o Updated Capital Asset Capitalization Policy
Updated the Procurement Policy, which allows for increased limits and greater efficiency while maintaining internal control
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
(vi)
Implemented "Paperless" AP Workflows in Laserfiche
Presented a balanced Budget for FY 2024-25
Received GFOA Award for Excellence in Financial Reporting for FY 2022-23 Annual Comprehensive Financial Report (ACFR)
Received GFOA Award for Distinguished Budget Presentation for Biennial Budget FY 2023- 25 Upgraded 75 desktops/laptops
Completed ArcGIS Enterprise upgrade that enhances the organization’s ability to manage and analyze spatial data. This comprehensive GIS software supports enterprise-wide mapping and spatial analysis, enabling data-driven decisions through improved location intelligence. Migrated Laserfiche Content Management improving document storage, retrieval, and business process automation. This scalable platform enhances productivity by streamlining workflows and ensuring compliance with robust information management tools. Upgraded Acrobat Pro citywide, providing advanced tools for creating, editing, and managing PDF documents, enhancing efficiency and document management capabilities across departments.
Implemented Neptune 360 support, enhancing water utility management with advanced tools for infrastructure monitoring, data analysis, and resource optimization. Migrated ClubProfit Cloud, providing golf course management with an integrated platform for membership management, tee time reservations, billing, POS, and reporting, streamlining operations and enhancing efficiency.
Implemented Citywide password vault is a secure, centralized. tool for storing and managing passwords and sensitive information, enhancing data security and accessibility. Implemented Bluebeam Revu software, offering advanced tools for digital collaboration, document markup, and project workflow management, enhancing efficiency in architecture, engineering, and construction processes.
Implemented an electronic Request for Approval to Hire form.
Human Resources
Updated 15 job descriptions and titles to better reflect departmental roles Filled 31 full-time positions and 104 part-time positions Recovered $42,546 subrogation claims
Transitioned the administration of employee leave requests from a third-party administrator to internal management, resulting in cost savings to the City. Revitalized the City’s Safety Committee to proactively address safety concerns and implement measures to create a safer environment.
Hosted a Health Fair for City Staff during the annual open enrollment period, providing direct access to insurance vendors to support informed decision-making about coverage options. Facilitated health screenings for staff through Longevity, Inc. as part of the City’s wellness initiative to promote employee health and well-being.
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
(vii)
Successfully partnered with Kaiser Permanente to provide mobile health screenings to staff Successfully coordinated health speaking engagement with a certified nutritionist for staff Established a workplace violence prevention plan and provided training to staff in compliance with SB 553
Finalized a software agreement with Trakstar to transition performance evaluations from paper to an electronic system, enabling improved tracking of overdue evaluations and automated reminder notifications.
Community and Economic Development
Successfully completed the FEMA DR-4699 reimbursement process for damages incurred during the February 2023 storms. The City received $19,350 in reimbursements. Performed monthly radio tests over the Countywide Integrated Radio System (CWIRS), providing communications backup in preparation for a local emergency.
Economic Development and Land Use Accomplishments
Community and Economic Development
Approved a Conditional Use Permit application for a 95-unit Townhome development on a four-acre site at 6540 Rosemead Blvd (former site of Knights Inn Motel). Oversight for the construction completion of a new public storage facility located at 6605 Rosemead Blvd. Construction of a 4-story building with 640 storage units for rent. The estimated valuation is over $8.2 million.
Entitled a Conditional Use Permit at 6730 Rosemead Blvd for Yu-Me restaurant (formerly Sizzler restaurant).
Completed the Business Attraction and Façade Rehabilitation Grant Program Guidelines designed by David Hidalgo Architects that will provide needed financial assistance to property owners and ensure appropriate design.
Completed the Whittier and Durfee Commercial Façade Design Guidelines as designed by David Hidalgo Architects that will encourage the revitalization of Whittier Blvd and Durfee Ave. Completed the rehabilitation oversight of the Rise Apartments (formerly Whittier Manor). Completed the rehabilitation oversight of the construction of Los Amores de Julia located at 8800 Washington Blvd.
Processed the 0.6-acre property at 9003 Beverly Blvd through the Surplus Land Act and entered into an Exclusive Negotiating Agreement with Tierra Mia Coffee Company. Initiated the construction and project management of KB Homes Azul project at the northeast corner of Stephens and Durfee Ave for a multi-unit condominium development. Completed the construction of a new Starbucks location on the northwest corner of Slauson Ave and Reeve Road.
Processed a Conditional Use Permit for the construction of a new two-story, 6,494 squarefoot manufacturing facility on a vacant parcel at 9220 Bermudez Street.
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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Processed a Conditional Use Permit to allow an auto repair shop within a multi-tenant building at 9110 Bermudez Street.
Completed the construction of Topline Nails located at 8652 Whittier Blvd. Processed two moratoriums for various underutilized commercial land uses including trade schools and rest homes.
Processed a Precise Plan of Design for the construction of a new 5,024 square foot two-story industrial building on a vacant parcel at 7655 Serapis Ave. Entitled a small car wash at 6416 Rosemead Blvd for a property that has been vacant since 2020.
Infrastructure Accomplishments
Public Works
Obtained a total of $4,704,390 in Highway Safety Improvement Program (HSIP) Cycle 11 grant funding for FY 2023-24 consisting of:
o Citywide Sign Audit and Roadway Safety Sign Enhancement Project in the amount of $2,539,170
o Citywide Traffic Signal Enhancement Project in the amount of $1,917,720 o School Crossings Safety Enhancement Project in the amount of $247,500 Awarded $300,000 to complete the City’s Comprehensive Safety Action Plan under the Safe Streets and Roads for All Program (SS4A).
Awarded $411,000 to complete the Pico Rivera Active Transportation Master Plan under 2023 Active Transportation Program (ATP).
Successfully awarded and began construction for the following capital projects:
o Pico Rivera Regional Bikeway Project along Mines Ave
o PFOA/PFAS Water Treatment System at three (3) facilities o Median Beautification on Major Corridors Projects
o Rosemead Blvd Median and Parkway Beautification Project Began design phase for the following capital projects:
o Citywide Sign Audit and Roadway Safety Sign Enhancement Project o Citywide Traffic Signal Enhancement Project
o School Crossings Safety Enhancement Project
o Pico Park Outdoor Restrooms
o Rio Hondo Park Renovation
Continued design phase for the following capital projects:
o Alebrije Dog Park
o Smith Park Aquatics Center Renovations
Completed design phase for the following capital projects:
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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o Water Main Replacement Project
Completed the following capital projects:
o Residential Resurfacing Program - Overlay and Reconstruction Project o Annual Sidewalk Improvements Project
o Annual Signing and Striping Project
o Overlay Improvements on Whittier Blvd
o Electrical Switchboard Replacement Project
o Completed Senior Center Indoor Restroom renovations
Upgraded the following:
o LED Lighting at City Hall Main Conference Room, Rivera Park, Smith Park, and Pico Park
o Light fixtures and new ceiling tiles at Rivera Park Multipurpose Room o City Hall Employee Breakroom renovation
o Exterior color lighting at City Hall
Parks & Recreation
Completed the final phase of the Utility Box Art program.
Health, Wellness and Safety Accomplishments
Administration
Successfully implemented ShotSpotter Gunshot Detection, Location, and Forensics System in the City. This state-of-the-art technology is designed to improve public safety by detecting and accurately locating gunfire incidents in real-time. Successfully implemented park patrol services in collaboration with Southwest Patrol, deploying three security officers to enhance safety in public parks and other facilities.
PRIME
Successfully adopted the PRIME Power Choice Program (Tesla Solar + Battery Program).
This program allows residents of Pico Rivera to lease Tesla solar panels and battery systems for a 25-year term, including installation, maintenance, and a low, stable rate for the lease term period.
Received the 2023 Gateway Cities Council of Governments Energy Action Award – Gold, to recognize cities in their efforts and participation in energy efficiency and climate initiatives. Successfully secured additional funding and initiated the Climate Action Plan, Phase II – Vulnerabilities Assessment and Climate Action Dashboard. Completed the Climate Action Plan’s Vulnerabilities Assessment element. The Vulnerability Assessment evaluates the susceptibility of a community to climate risks, considering exposure and sensitivity to climate impacts, as well as the capacity to adapt.
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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Implemented the Bigbelly Pilot Program at Smith Park to enhance operational efficiency, quality of life, and environmental stewardship. Bigbelly offers solar-powered trash compacting bins that meet the City’s criteria for compliance with State recycling mandates and efficiency. Developed and implemented an organic waste diversion enforcement program to meet the State’s January 1, 2024, milestone under the SB 1383 mandate, which requires all jurisdictions to transition from education, and outreach to enforcing through notices and penalties.
Secured funding to implement the XeroHome online system, valued at $250,000. XeroHome is a digital platform that utilizes public data on residential properties to provide personalized recommendations for home energy efficiency upgrades, helping residents save on utility bills and reduce their carbon footprint.
Successfully secured $115,000 in incentives from the Southern California Regional Energy Network (SoCalREN) to complete the Heat Pump Water Heater (HPWH) Project, replacing eight units at three City facilities
Increased OhmConnect registrations with 41 new active participants for FY 2023-24.
OhmConnect is a platform that enables and incentivizes residents to participate in energysaving activities.
Community Engagement Accomplishments
Community and Economic Development
Hosted the first graduating class of Emprendedor@s, which is an 8-week in-person intensive course in Spanish for small business owners and individuals looking to grow their business.
The City worked with Asociacion de Emprendedor@s to teach these classes on a weekly basis.
Successfully partnered with Rio Hondo America’s Job Center of California (AJCC) and the Pico Rivera Chamber of Commerce to host a job fair at Pico Park.
Parks & Recreation
The PlayPASS subsidy program successfully provided registration fee assistance to over 60 income-eligible youth, enabling them to participate in recreational sports programs. Awarded a $20,000 grant from the National Recreation and Parks Association (NRPA) towards the PlayPASS program.
Served over 12,000 meals for the Summer Food Service Program Awarded the Purple Heart City Award
Awards received:
o “Purple Heart City Award” unanimously approved by the City Council to proudly designate the City of Pico Rivera as a Purple Heart City. This designation recognizes and pays tribute to residents who have served their country. The City was the first among the Gateway Cities to receive this honor.
o “Photography Award of Distinction” from the California Association of Public Information Officials (CAPIO) for “Sunsets over Pico Rivera” SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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o “Student Conference Scholarship Award” Winner - District 13 (CPRSD13) to Jacob Hodgden-Baltierra
o 3rd place for Graphic Design and Art from the National City-County Communications & Marketing Association (3CMA) for “Pico Rivera Transit” Successfully partnered with AJUA (Asociación de Jaliscienses Unidos en Acción) for the Fiestas Patrias event
Successfully partnered with Point Man Antelope Valley for the Mobile Vietnam Memorial Wall Successfully hosted fourteen (14) city-wide Special Events 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 Valencia Academy of the Arts.
Successfully served approximately 586 students through the REACH program. Successfully held six (6) Pool Days, in partnership with local cities, to ensure residents had access to aquatic programs, pending the Aquatic Center renovation. Served approximately 20,000 in-person nutritious meals through the Southeast Area Social Service Funding Authority Congregate Lunch Program
Successfully partnered with AARP to offer the AARP Income Tax Preparation program at the Pico Rivera Senior Center. IRS-certified volunteers electronically filed tax returns for 200 individuals.
Veterans Service Officer assisted more than 290 individuals at the Pico Rivera Senior Center Over 1,468 Case Worker Appointments were provided at the Senior Center, where a bilingual case worker assists individuals aged 50 and older. Services include support with programs such as CalFresh food assistance, Medi-Cal, housing, caregiver services, DMV needs, utility assistance, and social security benefits.
Partnered with local organizations to offer more than 20 health and wellness presentations. Dial-A-Ride program provided over 14,000 trips and over 200 new participants Recreation Transit/Trips and Tours provided 23 excursions Successfully provided (10) issues of the City’s Community Publication, ”The Profile” PRIME
Hosted four community events to educate the public on proper organic waste diversion and gifted composting bins, aiming to achieve 75% organic waste reduction by 2025.
Public Works
Sponsored an outreach event at Rivera Middle School as part of National Public Works Week.
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 (xii)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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 $9.1 million as of June 30, 2024.
The total fund balance grew by $2.69 million to $84.94 million, which represents 140% 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.
The nation faces moderate growth, stable inflation rates, and ongoing labor market recovery.
Although inflation shows signs of slowing, there are rising pressures from geopolitical tensions and potential trade policy changes. Job growth is expected to slow due to demographic shifts affecting labor force participation. In response, the Federal Reserve will likely continue lowering interest rates to stimulate the economy. Geopolitical conflicts may increase oil prices and impact inflation, while trade policies could raise costs for consumers and businesses.
For this reason, the City must continue developing responsible budgets that deliver essential services to our residents and align with the City Council's priorities. Efforts to prioritize the City’s fiscal health will persist as future budgets are developed, with an emphasis on maintaining and ensuring financial sustainability and stability.
OTHER INFORMATION
GFOA Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pico Rivera for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This was the 26th 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 2023-24 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.
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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 2025.
Acknowledgments
The Administrative Services Department takes primary responsibility for the preparation and accurate presentation of this report. This accomplishment results from the professionalism, dedication, and hard work of all department members. We also extend our appreciation to other departments for their support in providing essential operational information for this report. Lastly, we thank the City Council for their prudent financial stewardship and leadership, which have been instrumental in guiding the City of Pico Rivera and ensuring its continued financial stability.
Respectfully,
Jane Guo
Director of Administrative Services
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CITY OF PICO RIVERA
CITY OFFICIALS
City Council
Andrew C. Lara, Mayor
John R. Garcia, Mayor Pro Tem
Gustavo V. Camacho, Councilmember
Erik Lutz, Councilmember
Dr. Monica Sánchez, Councilmember
Executive Team
City Manager Steve Carmona
Assistant City Manager Angelina Garcia
City Clerk Cynthia Ayala
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
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Residents of Pico Rivera
City Attorney
Arnold M. Alvarez-Glasman
City Manager
Steve Carmona
City Clerk
Cynthia Ayala
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, 2023
Executive Director/CEO
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FINANCIAL SECTION
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CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
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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, 2024, 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, 2024, 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.
Honorable City Council
City of Pico Rivera, California
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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, 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 November 27, 2024, 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
November 27, 2024
(5)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
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, 2024, 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 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 City's financial position 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).
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The City's governmental activities include general government, public safety, public works, community development, recreation, non-departmental, 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 20 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 states 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 24-25) and in the governmental funds statement of revenues, expenditures, and changes in fund balances (pages 27-28) for the General Fund, the Housing Agency Section 8 Fund, the American Rescue Plan Fund, the County Grants, the State Grants, the Capital Improvement Fund, and the 2018 Series A COP Fund since these funds are considered major funds. Data from the additional twenty-three (23) 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 107.
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 98-103 and 118-136. The governmental fund financial statements can be found on pages 20 through 29 of this report. (7)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
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 30 through 32 and pages 138 through 139 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 35 and 36 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 37 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 88 through 97 of this report.
Other Supplementary Information
Other supplementary information includes combining and individual budgetary comparison schedules for nonmajor Governmental Funds, combining statements for other enterprise funds, and Agency Funds and Internal Service funds. Other supplementary information can be found on pages 107 through 136 of this report.
FINANCIAL HIGHLIGHTS
Citywide
Comparing the fiscal year ending June 30, 2024, with June 30, 2023, the City's total net position increased by $35.951 million, from $374.704 million to $410.655 million. Of this amount, there was an increase in total assets of $42.408 million to $545.634 million, an increase in total liabilities of $8.555 million to $145.663 million, a decrease in deferred outflows of resources of $204 thousand and a decrease of deferred inflows of resource of $2.301 million. Citywide revenues totaled $138.255 million, an increase of $12.948 million over the prior year.
Expenses were $102.305 million, an increase of $12.169 million over the preceding year. (8)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
During the year, the City actively worked on several capital improvement projects, resulting in some capital outlay, including $5.946 million in the Pico Rivera Regional Bikeway project, $2.298 million in the Per-and Polyfluorinated Substances (PFAS) Treatment, $1.2 million in the residential resurfacing program, $1.944 million in the Smith Park Aquatic Center Renovation project, etc. As a result, the City’s capital assets, after depreciation, increased by $15.801 million to $353.611 million.
Citywide – Governmental Activities
Governmental Activities revenues increased $6.709 million to $92.758 million (prior to any transfers and capital contribution). The net increase resulted from a combination of a few main factors: increases of $5.495 million in operating grant, $3.523 million in investment earnings, $1.406 million in other taxes, 1.019 million in sales taxes, $363 thousand in property taxes, offset by decreases of $2.260 million in capital grants and contribution, $1.143 million in charges for services, $816 thousand in miscellaneous revenues, and $779 thousand in capital grants.
Governmental Activities expenditure increased by $6.994 million to $69.315 million. This is mainly attributed to a combination of increases and decreases as follows: $3.079 million increase in Public Works, $2.097 million in General Government, $717 thousand in Public safety, and $712 thousand in Parks and Recreation.
Fund Level – General Fund
Comparison of FY 2023-24 Actuals to FY 2022-23 Actuals:
General Fund revenues were $60.365 million, an increase of $2.940 million over the prior year. The increase was mainly due to increased investment and rental revenues, sales taxes, property taxes, and business license revenues:
o Investment and rental revenues increased by $2.625 million. The increase was mainly attributed to higher investment market value returns than last fiscal year. o Tax revenues increased by $1.169 million as the City received $1.019 million more sales taxes, primarily due to the impact of inflation on consumer goods. The City received $363 thousand more property taxes due to increased property assessments compared to the prior fiscal year.
o Licenses and permits revenue increased by $1.079 million due to increased Business License Tax (BLT) revenues of $1.171 million. 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. The City has experienced more BLT revenues as more and more businesses renewed their licenses under the new fee structure implemented in January 2023 following the enactment of Measure AB.
o Miscellaneous revenues decreased by $997 thousand, primarily due to legal settlements of $811 thousand in the prior fiscal year.
General Fund expenditures were $51.197 million, a $3.352 million increase from the prior year:
o Public Safety expenditures increased by $715 thousand as the Los Angeles County Sheriff's Department increased the public safety contract by 8% in FY 2023-24. (9)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
o Public Works expenditures increased by $1.177 million as the department filled some vacancies and experienced increased contracted services and supplies due to inflation. o Parks and Recreation expenditures increased by $1.010 million, driven by increases in salaries and benefits, filling vacant positions, and higher costs associated with special events.
Additionally, there has been a rising need for hourly staffing for parks and seasonal programs, such as camps.
o Community Development expenditures increased by $320 thousand, primarily due to filling vacancies and increase in Planning, Economic Development, and Building and Safety Services for ongoing projects such as Permitting Software, Mobile Home Ordinance, Land Use Plan, and Façade Enhancements.
The General Fund's fund balance increased by $2.669 million to $84.939 million as of June 30, 2024.
Comparison of FY 2023-24 Actuals to FY 2023-24 Final Amended Budget: The General Fund's actual net change in fund balance was $2.669 million, which is $8.827 million higher than the budgeted deficit of ($6.158) million. This variance is primarily attributed to the following factors:
Revenues: Actual revenues were higher than budgeted for in different categories:
o Investment and Rental Revenues: Actual revenues exceeded the budget by $2.929 million due to improved market value returns compared to the previous fiscal year. o Taxes and Assessments: Actual revenues were $1.081 million higher than budgeted, primarily driven by higher-than-expected sales tax collections.
o Licenses and Permits: Actual revenues were $2.056 million below budgeted amounts. In November 2022, City voters overwhelmingly approved Measure AB, which modernized the City’s outdated BLT fee structure and introduced greater equity for small businesses. However, businesses in the City required more time than anticipated to adjust to the new fee structure, which was implemented in January 2023 after Measure AB's enactment.
Expenditure: Actual spending was lower than budgeted across multiple departments:
o General Government: $834 thousand under budget, primarily due to vacant positions. o Public Safety: $933 thousand under budget, driven by lower-than-anticipated rates from the Los Angeles County Sheriff's Department.
o Public Works: $476 thousand under budget, mainly due to vacant positions and delays in contract services.
o Parks and Recreation: $1.133 million under budget, attributed to vacant positions and delays in some professional and contracted services.
o Community Development: $3.113 million under budget, primarily due to lower-thananticipated and delayed expenditure on professional and contracted services. (10)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
The expenditure variances were primarily driven by supply chain disruptions, unfilled staff positions, and delays in securing contracts with professional firms and contractors, which impeded departments from fully executing their planned activities. Additionally, approximately $1.767 million in General Fund encumbrance was carried forward to cover some of the delayed professional and contracted services.
Fund Level – Proprietary Funds
The City had four Enterprise Funds in Fiscal Year 2023-24.
Business-type Activities – Enterprise Funds – Overall, the total net position of these funds increased by $12.541 million to $59.778 million as of June 30, 2024. Total assets increased by $13.098 million to $101.030 million, mainly driven by a $6.027 million rise in Pico Rivera Innovative Municipal Energy (PRIME) fund cash and investments and a $2.812 million increase in PRIME prepaid amounts. The cash increase was largely attributable to a net income of $7.251 million in FY 2023-24, driven by a particularly hot summer. Total liabilities increased by $732 thousand to $42.897 million, comprised of a $777 thousand increase in current liabilities and a $44 thousand decrease in noncurrent liabilities. Significant changes within current liabilities include a $355 thousand increase in Accounts Payable and a $278 thousand rise in Accrued Liabilities. All of them were settled in July and August, indicating only a timing difference.
Total operating revenues increased $6.074 million to $42.143 million, and operating expenses increased $5.238 million to $32.591 million. Most changes were related to the operation of PRIME.
The Charges for Services revenue increased by $4.302 million due to higher electricity prices and usage in the hot summer. At the same time, the cost of PRIME's power supply has increased by $2.474 million.
Fund Level – Fiduciary Funds
The Fiduciary Fund is discussed later in this document.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City of Pico Rivera presents its financial statements under the reporting models required by the Governmental Accounting Standard Board (GASB) pronouncements. The most recent pronouncement implemented by the City, GASB 100, requires accounting and financial reporting for each type of accounting change and error correction.
Below is the schedule of the Statement of Net Position for the years ended June 30, 2024, and 2023, 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, 2024, the City's combined net position (governmental and business-type activities) totaled $410.655 million, an increase of $35.951 million from the prior year.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
City of Pico Rivera
Statement of Net Position
Fiscal Year ended June 30, 2024, and June 30, 2023
Net position consists of three categories: net investment in capital assets, restricted assets, and unrestricted assets. The most significant amount of the net position (governmental and business-type activities), approximately $311.950 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 capital assets are used to provide services to citizens, they are not available to fund the city's day-to-day activities.
On June 30, 2024, the City's restricted net position was $32.103 million or 7.82% 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 $66.602 million is unrestricted and may be used to meet the government's ongoing obligations to citizens and creditors. The unrestricted amount increased by $18.279 million compared to the June 30, 2023 amount.
Governmental Activities - Governmental activities' assets increased $29.869 million to $465.041 million, deferred outflow of resources decreased $155 thousand, liabilities increased $8.381 million to $123.202 million, deferred inflows of resources decreased $2.077 million, and total net position increased $23.410 million to $350.877 million when compared to the prior year. Cash and investments increased by $12.956 million to $108.363 million compared to the prior year.
This increase is attributed to the City’s governmental activities during FY 2023-24. 2024 2023 2024 2023 2024 2023 Assets: Current and Other Assets $ 135,473,526 $ 120,066,304 $ 38,926,286 $ 28,384,914 $ 174,399,812 $ 148,451,218 Internal Balances 20,436,212 19,701,636 (20,436,212) (19,701,636) - - Land held for resale 1,701,360 1,701,360 - - 1,701,360 1,701,360 Receivables from Successor Agency 15,724,611 15,070,401 197,206 192,770 15,921,817 15,263,171 Capital and Leased Assets 291,705,001 278,632,226 61,906,073 59,177,953 353,611,074 337,810,179 Total Assets $ 465,040,710 $ 435,171,927 $ 80,593,353 68,054,001 $ 545,634,063 $ 503,225,928 Deferred Outflow of resources $ 12,993,886 $ 13,149,379 $ 2,207,264 $ 2,255,705 $ 15,201,150 15,405,084 Liabilities: Current liabilities $ 29,821,714 $ 22,437,477 $ 6,441,112 $ 5,664,351 $ 36,262,826 $ 28,101,828 Long-term liabilities 41,435,646 41,600,203 6,299,062 7,491,870 47,734,708 49,092,073 Net OPEB Obligation 16,305,924 15,511,905 2,118,847 1,609,402 18,424,771 17,121,307 Net Pension Liabilities 35,639,209 35,272,270 7,601,404 7,520,930 43,240,613 42,793,200 Total Liabilities 123,202,493 $ 114,821,855 22,460,425 22,286,553 $145,662,918 $137,108,408 Deferred Inflows of resources $ 3,954,819 $ 6,031,718 $ 562,450 $ 786,394 $ 4,517,269 6,818,112 Net Position: Net investment in capital assets $ 257,453,378 $ 244,677,341 $ 54,496,158 $ 50,610,138 $ 311,949,536 295,287,479 Restricted 32,103,004 31,184,653 - - 32,103,004 31,184,653 Unrestricted 61,320,902 51,605,739 5,281,584 (3,373,379) 66,602,486 48,232,360 Total Net Position $ 350,877,284 $ 327,467,733 $ 59,777,742 $ 47,236,759 $ 410,655,026 $ 374,704,492 Governmental Activities Business-Type Activities Total
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
Accounts receivable increased by $2.141 million, mainly due to a $4.387 million increase in the State Grant Funds receivable, as the City expects to receive grant reimbursements in FY 2024-25 for amounts billed in FY 2023-24. This rise was partially offset by a $1.604 million decrease in the Measure R fund and a $1 million decrease in County Grants receivables, as the City collected the amounts billed in FY 2022-23 during FY 2023-24.
Capital assets increased by $13.073 million as the City progressed with various capital improvement projects, including $5.946 million for the Pico Rivera Regional Bikeway project, $1.2 million for the residential resurfacing program, and $1.944 million for the Smith Park Aquatic Center Renovation, among others.
Unearned revenue increased by $7.709 million after the City received $10 million from the County for the Smith Park Aquatic Center project, with $2.2 million spent in FY 2023-24. Deferred inflows of resources decreased by $2.077 million, primarily in connection with the City’s Other Post-Employment Benefits (OPEB) and Pension Plans. There were $27.873 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 ending June 30, 2015, and was first reported on the financial statements for FY 2014-
15. There were $16.415 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 $12.539 million to $80.593 million, deferred outflow resources decreased by $48 thousand to $2.207 million, liabilities increased by $174 thousand to $22.460 million, deferred inflow of resources decreased by $224 thousand to $562 thousand, and total net position increased $12.541 million to $59.778 million when compared to the prior year. Cash and investments increased by $7.072 million to $27.919 million compared to the prior year. This increase is attributed to the City’s business-type activities operation during FY 2023-24. Capital assets increased by $2.728 million as the City progressed with various capital improvement projects, including $2.298 million in the per- and polyfluorinated substances (PFAS) project. Liabilities increased by $174 thousand, mainly driven by a $776 thousand increase in current liabilities at the end of the fiscal year due to timing differences and a $590 thousand rise in OPEB and pension liabilities. The increase was partially offset by the payment of $1.193 million in principal on the Water Authority Revenue Bond Series 1999 A.
There were $5.942 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 ending June 30, 2015, and was first reported on the financial statements for FY 2014-
15. There were $2.133 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 (13)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
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 below:
City of Pico Rivera
Statement of Activities
Fiscal Year ended June 30, 2024, and June 30, 2023
Governmental Activities – Total revenues increased by $6.709 million, and expenses increased by $6.994 million compared to the previous year.
Overall, program revenues increased by $2.4 million, primarily due to an increase of $5.494 in operating grants and contributions, offset by decreases of $834 thousand million in charges for services and $2.260 million in capital grants and contributions. Overall, general revenues increased by $4.309 million, with a $3.523 million increase in investment earnings due to favorable market conditions, an increase of $1.098 million from other taxes, 2024 2023 2024 2023 2024 2023
Revenues
Program Revenues:
Charges for services $ 5,137,811 $ 5,972,134 $ 42,143,353 $ 36,069,315 $ 46,972,902 $ 42,041,449 Operating grants an contributions 27,540,888 22,046,380 246,661 - 27,540,888 22,293,041 Capital grans and contributions 946,727 3,207,183 70,935 2,518,595 1,017,662 5,725,778 General Revenues: - - - - Property taxes 15,379,635 15,016,822 15,379,635 15,016,822 Sales and use taxes 26,136,067 25,116,979 - - 26,136,067 25,116,979 Franchise taxes 2,084,370 2,063,404 - - 2,084,370 2,063,404 Utility users taxes 3,881,820 4,001,578 - - 3,881,820 4,001,578 Other taxes 4,964,759 3,867,144 - - 5,273,021 3,867,144 Investment earnings 5,558,556 2,035,505 1,170,718 423,345 6,729,274 2,458,850 Gain on bond defeasance - - - - Gain on sale of capital assets 149,904 928,625 - - 149,904 928,625 Miscellaneous 977,447 1,793,456 - - 977,447 1,793,456
Total Revenues 92,757,984 86,049,210 43,385,006 39,257,916 136,142,990 125,307,126 Expenses
General Government 12,731,508 10,634,542 12,731,508 10,634,542 Public safety 13,379,213 12,661,589 13,379,213 12,661,589 Public works 18,936,919 15,857,499 18,936,919 15,857,499 Parks and recreation 9,252,519 8,540,605 9,252,519 8,540,605 Health and welfare 7,372,371 7,274,930 7,372,371 7,274,930 Community development 6,295,744 5,957,282 6,295,744 5,957,282 Interest and fiscal charges 1,346,707 1,394,492 1,346,707 1,394,492 Enterprise operations - - 32,989,954 27,814,867 32,989,954 27,814,867 Total Expenses 69,314,981 62,320,939 32,989,954 27,814,867 102,304,935 90,135,806 Increase/Decrease in net position
before transfers 23,443,003 23,728,271 10,395,052 11,443,049 33,838,055 35,171,320 Transfers (33,452) (56,438) 33,452 56,438 - - Capital Contribution 2,112,479 2,112,479 - Change in net position: 23,409,551 23,671,833 12,540,983 11,499,487 35,950,534 35,171,320 Net position-beginning of year 327,467,733 303,795,900 47,236,759 35,737,272 374,704,492 339,533,172 Net position-end of year $ 350,877,284 $ 327,467,733 $ 59,777,742 $ 47,236,759 $ 410,655,026 $ 374,704,492 Governmental Activities Business-Type Activities Total
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
including business license taxes, a $1.019 million rise in sales taxes mainly due to inflation, and an additional $363 thousand from property taxes as assessment values climbed. These gains were offset by declines in miscellaneous revenues, with $816 thousand less due to a $615 thousand drop in Image Enhancement Fee revenue and a $779 thousand decrease in capital grants. Expenses increased by $6.994 million in FY 2023-24, influenced by several major areas: General Government costs rose by $2.097 million, Public Safety by $717 thousand, Public Works by $3.079 million, Parks and Recreation by $712 thousand, and Community Development by $338 thousand.
These increases resulted from cost-of-living adjustments in salaries and benefits, filling vacant positions, higher spending on contracted services and supplies, and OPEB and pension-related transactions.
Business-Type Activities - The City has three major Enterprise Funds: the Water Fund, the Golf Course Fund, and the Pico Rivera Innovative Municipal Energy Fund (PRIME), which operated for the fifth full year in FY 2023-24.
Revenue rose by $4.127 million, primarily attributed to a $4.302 million increase in PRIME Charges for Services due to higher energy costs and usage during the hot summer of FY 2023-24. Expenses increased by $5.175 million. There are three notable items: a $2.474 million increase in PRIME cost of power, stemming from rising energy costs and higher usage during the summer. An additional $1.458 million for salaries and benefits and $850 thousand more in contractual services, attributed to cost-of-living adjustments for salaries and benefits, the filling of vacancies, greater spending on contracted services and supplies, and OPEB and pension-related transactions.
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 near-term 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, the unassigned fund balance may serve as a useful measure of the City's net resources that are available for appropriation.
As of June 30, 2024, the City's governmental funds reported a combined ending fund balance of $132.145 million, as shown on page 25. The fund balance categories of governmental funds displayed $27.361 million as nonspendable, $35.948 million as restricted, $29.660 million as committed, $43.467 million as assigned, and ($4.291) million as unassigned. (Please refer to Note Number 12 of the Notes to Financial Statements for a detailed breakdown.)
The City reports seven major governmental funds: the General Fund, the Special Revenue Housing Agency Section 8 Fund, the Special Revenue American Rescue Plan Fund, the Special Revenue County Grants Fund, the Special Revenue State Grants Fund, the Capital Projects Capital Improvement Fund, and the Capital Projects 2018 Series A COP Fund, which is described below. Major funds are generally defined as having significant activities or balances in the current year. Other individual government funds may be found in the Supplemental section, which begins on page 106.
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 $84.939 million, an increase of $2.669 million (15)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
from the previous year. The nonspendable amount is $27.361 million, the restricted amount is $1.511 million, the committed amount is $29.660 million, the assigned amount is $25.240 million, and the unassigned amount is $1.167 million.
Housing Agency Section 8 Special Revenue 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. $6.999 million in revenue was received during the year, and $6.674 million was spent. The ending fund balance was $858 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. I n FY 2023-24, $793 thousand more was received compared to the prior year, and overall expenditures were $527 thousand higher.
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 6/30/2024. 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.
County Grants Special Revenue Fund—This fund accounts for various Los Angeles County grants that are received for restricted expenditures on specific programs and projects.
During the fiscal year, the fund had $2.295 million in revenue and $1.510 million in expenditure, mainly related to the Smith Park Aquatic Center project.
State Grants Special Revenue Fund—This fund accounts for various State of California grants received for restricted expenditures on specific programs and projects.
Throughout the fiscal year, the fund received $1.799 million in revenue. It incurred $6.327 million in expenditure, primarily for the Pico Rivera Regional Bikeway project ($2.462 million), the Major Corridors Median Beautification project ($1.243 million), the Rosemead Blvd Median Beautification project ($584 thousand), and an additional $511 thousand for the Pico Rivera Regional Bikeway project.
As of June 30, 2024, the fund had $4.869 million in unavailable revenue, which the City has been gradually collecting.
Capital Improvement Capital Projects Fund – This fund accounts for funds for the acquisition or construction of major capital facilities.
Throughout the fiscal year, the City transferred $7.425 million to this fund to support various capital improvement projects, including $4 million for street paving and $1.3 million for turf replacement at Smith Park. The fund incurred expenditures of $2.511 million, including $547 thousand for ADA and safety improvements at the Senior Center restroom, $462 thousand for renovations at the Teen Center, and $365 thousand for replacing restrooms at Pico Park's outdoor field. 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 issued in FY 2018-19. As of June 30, 2024, the aggregate outstanding principal amount was $13.105 million. (16)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
During the year, there was interest revenue of $257 thousand, a bond principal payment of $300 thousand and interest charges of $532 thousand in expenditures. The ending fund balance was $5.124 million.
Business-type Activities – Enterprise Funds
The enterprise fund group has three major funds: the Water Operations Enterprise fund, the Pico Rivera Municipal Energy (PRIME) fund, and the Pico Rivera Golf Course 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, $12.152 million was received as operating revenue and $2.112 million as capital contributions from the Water Replenishment District for the PFAS project, with operating expenses at $9.464 million. During the year, there was a $701 thousand investment income and $399 thousand bond interest charges. The Water Fund's net position increased by $5.572 million from the prior year to $45.327 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 in such a way that power purchase and rate-setting authorities are exercised locally. Southern California Edison (SCE) still provides transmission of all electricity and billing. However, PRIME utilizes third-party consultants to purchase power and answer billing inquiries from Pico Rivera residents. The benefit is that the overhead is lower, and those cost savings have been passed on to residential and commercial customers.
Operating revenues increased by $4.333 million to $28.339 million during the year, and operating expenses increased by $2.579 million to $21.515 million from the prior year.
Pico Rivera Golf Course Fund – This fund accounts for the operations of the City-owned golf course.
Operating revenues rose by $575 thousand to $1.330 million during the year, while operating expenses increased by $354 thousand to $1.774 million compared to the previous year. As a result, the net position of the Golf Course Fund declined by $411 thousand of the prior year, bringing it to ($4.015) million.
Please refer to pages 24 and 25 for the Balance Sheet of Governmental Funds, page 26 for the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position, pages 27 and 28 for the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds, and page 29 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 30 through 31.
Capital Assets Administration
The City's investments in capital assets on June 30, 2024, were $291.705 million (net of accumulated depreciation of $170.610 million) for its governmental activities and $61.906 million (net of accumulated depreciation of $26.680 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, leased assets, and construction in progress. (17)
CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
City of Pico Rivera
Capital Assets (Net of Accumulated Depreciation)
Fiscal Year ended June 30, 2024 and June 30, 2023
Additional information on the City's capital assets can be found in Note 5 to the basic financial statements on pages 57 to 58 of this report.
Debt Administration
As of June 30, 2024, the City's total indebtedness was $113.369 million, an increase of $672 thousand compared to the prior fiscal year. Debt includes bonds, certificates of participation, pension obligations, postemployment benefits, capital lease obligations, lease liability, 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 $96.054 million.
Governmental activities total indebtedness increased by $1.199 million during the year, primarily due to the increase of claims and judgments by $1.317 million. Please refer to note 6 on pages 59 to 60 for further details.
Business-type activities - Overall, business-type debt at year-end is $17.316 million, decreasing by $527 thousand during the year, primarily due to a $509 thousand increase in other post-employment benefits and a $1.190 million principal payment on the 1999 Water Authority Revenue Bonds. 2024 2023 2024 2023 2024 2023
Land $120,696,364 $120,696,364 $18,174,060 $18,174,060 $138,870,424 $138,870,424 Structures & Improvements 25,590,725 25,590,725 7,132,351 7,132,351 32,723,076 32,723,076 Furniture, Equipment & Vehicles 8,584,980 7,689,601 3,106,401 2,410,638 11,691,381 10,100,239 Infrastructure 286,592,464 252,352,928 22,121,739 17,692,287 308,714,203 270,045,215 Leased Assets 213,988 111,108 - 213,988 111,108
Construction in progress 20,636,053 36,310,556 10,685,501 12,118,244 31,321,554 48,428,800 Rights of Way - 5,579,916 - 5,579,916 5,579,916 5,579,916 Utility Plant - 21,785,673 - 21,785,673 21,785,673 21,785,673 Total Capital Assets $462,314,574 $442,751,282 $88,585,641 $84,893,169 $550,900,215 $527,644,451 Less depreciation (170,609,573) (164,119,056) (26,679,568) (25,715,216) (197,289,141) (189,834,272) Net Capital Assets $291,705,001 $278,632,226 $61,906,073 $59,177,953 $353,611,074 $337,810,179 Governmental Activities Business-Type Activities Total
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
City of Pico Rivera
Outstanding Long-Term Liabilities
Fiscal Year ended June 30, 2024 and June 30, 2023
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
As of June 30, 2024, the General Fund reported an operating surplus of $9.065 million (operating revenues minus operating expenditures). When factoring in Transfers In and Transfers Out, the net change in fund balance was $2.669 million.
The Fiscal Year 2024-25 General Fund budget is balanced. The City's sales tax and property tax revenues are projected to increase 2%-3% in FY 2024-25. The nation is currently facing moderate growth, stable inflation rates, and ongoing labor market recovery. Although inflation shows signs of slowing, there are rising pressures from geopolitical tensions and potential trade policy changes. Job growth is expected to slow due to demographic shifts affecting labor force participation. In response, the Federal Reserve will likely continue lowering interest rates to stimulate the economy. Geopolitical conflicts may increase oil prices and impact inflation, while trade policies could raise costs for consumers and businesses.
With these conditions in mind, the City is committed to developing responsible budgets that provide essential services to residents and reflect the City Council’s priorities. Ongoing efforts will prioritize the City’s fiscal health, emphasizing financial sustainability and stability in future budget planning.
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. 2024 2023 2024 2023 2024 2023
Bonded Indebtedness:
Revenue bonds $ 22,935,000 $ 23,965,000 $ 6,990,000 $ 8,180,000 $ 29,925,000 $ 32,145,000 Certificates of Participation 13,105,000 13,405,000 - - 13,105,000 13,405,000 Bond premium 2,572,829 2,730,302 192,648 232,506 2,765,477 2,962,808 Bond discount - - - - - - Other long-term debt:
Net pension liabilities 35,639,209 35,272,270 7,601,404 7,520,930 43,240,613 42,793,200 Other post-employment benefits 16,305,924 15,511,905 2,118,847 1,609,402 18,424,771 17,121,307 Lease Liability 120,183 61,319 120,183 61,319
Claims and judgements 3,507,000 2,190,000 - - 3,507,000 2,190,000 Compensated absences 1,868,520 1,719,281 412,682 299,293 2,281,202 2,018,574 Total Indebtedness $ 96,053,665 $ 94,855,077 $ 17,315,581 $ 17,842,131 $ 113,369,246 $ 112,697,208 Governmental Activities Business-Type Activities Total
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2024
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.
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CITY OF PICO RIVERA, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Financial Statements.
(20)
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments $ 108,363,183 $ 27,918,853 $ 136,282,036 Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 6,610,294 884,179 7,494,473 Escrow Deposits 2,727 - 2,727 Receivables, Net:
Accounts 8,350,117 7,234,476 15,584,593 Taxes 7,644,168 - 7,644,168 Interest 540,323 76,903 617,226
Internal Balances 20,436,212 (20,436,212) -
Inventories 3,825 - 3,825 Prepaid Items 139,318 2,811,875 2,951,193 Long-Term Receivables 3,819,571 - 3,819,571 Land Held for Resale 1,701,360 - 1,701,360
Receivables from Successor Agency 15,724,611 197,206 15,921,817 Capital Assets, Not Depreciated 141,332,417 34,439,477 175,771,894 Capital Assets, Depreciated, Net 150,372,584 27,466,596 177,839,180 Total Assets 465,040,710 80,593,353 545,634,063
DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 1,382,141 - 1,382,141 Amounts Related to OPEB 3,262,535 423,946 3,686,481 Amounts Related to Pension Plans 8,349,210 1,783,318 10,132,528 Total Deferred Outflows of Resources 12,993,886 2,207,264 15,201,150
LIABILITIES
Accounts Payable 6,857,039 3,430,498 10,287,537 Accrued Interest Payable 333,455 64,075 397,530 Accrued Liabilities 1,005,881 535,277 1,541,158 Deposits 1,171,082 623,112 1,794,194 Retention Payable 427,363 228,940 656,303 Unearned Revenue 13,534,437 262,942 13,797,379 Due to Other Agencies 3,819,571 - 3,819,571 Long-Term Liabilities:
Due Within One Year 2,598,012 1,296,268 3,894,280
Due in More Than One Year:
Long-Term Liabilities 41,435,646 6,299,062 47,734,708 Lease Liability 74,874 - 74,874 Net OPEB Liability 16,305,924 2,118,847 18,424,771 Net Pension Liability 35,639,209 7,601,404 43,240,613 Total Liabilities 123,202,493 22,460,425 145,662,918 DEFERRED INFLOWS OF RESOURCES Amounts Related to OPEB 3,371,797 438,142 3,809,939 Amounts Related to Pension Plans 583,022 124,308 707,330 Total Deferred Inflows of Resources 3,954,819 562,450 4,517,269
NET POSITION
Net Investment in Capital Assets 255,047,492 54,345,848 309,393,340 Restricted for Community Development 14,948,067 - 14,948,067 Restricted for Transportation 14,991,762 - 14,991,762 Restricted for Low- and Moderate-Income Housing 3,655,778 - 3,655,778 Restricted for Pension Contribution 1,454,751 - 1,454,751 Restricted for Other Purposes 1,085,878 - 1,085,878
Unrestricted 59,693,556 5,431,894 65,125,450 Total Net Position 350,877,284 $ 59,777,742 $ 410,655,026 $
CITY OF PICO RIVERA, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Financial Statements.
(21)
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
FUNCTIONS/PROGRAMS
Governmental Activities:
General Government 12,634,852 $ 469,367 $ 6,760,941 $ - $ Public Safety 13,379,213 1,163,574 186,159 - Public Works 19,033,575 1,011,371 7,096,358 946,727 Parks and Recreation 9,252,519 661,269 1,123,808 - Health and Welfare 7,372,371 184,993 5,729,943 - Community Development 6,295,744 1,647,237 6,643,679 - Interest and Fiscal Charges 1,346,707 - - - Total Governmental Activities 69,314,981 5,137,811 27,540,888 946,727 Business-Type Activities:
Water 9,464,358 12,151,949 - 2,183,414 Pico Rivera Innovative Municipal Energy 21,514,631 28,338,604 - - Sports Arena 236,499 322,479 - - Golf 1,774,466 1,330,321 - - Total Business-Type Activities 32,989,954 42,143,353 - 2,183,414 Total 102,304,935 $ 47,281,164 $ 27,540,888 $ 3,130,141 $
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, 2024
See accompanying Notes to Financial Statements.
(22)
Governmental Business-Type
Activities Activities Total
$ - (5,404,544) $ (5,404,544) $
- (12,029,480) (12,029,480)
- (9,979,119) (9,979,119)
- (7,467,442) (7,467,442)
- (1,457,435) (1,457,435)
- 1,995,172 1,995,172
- (1,346,707) (1,346,707)
- (35,689,555) (35,689,555)
4,871,005 - 4,871,005
6,823,973 - 6,823,973
85,980 - 85,980
(444,145) - (444,145)
11,336,813 - 11,336,813
11,336,813 (35,689,555) (24,352,742)
- 15,379,635 15,379,635
- 26,136,067 26,136,067
- 2,084,370 2,084,370
- 3,881,820 3,881,820
- 4,964,759 4,964,759
1,170,718 5,558,556 6,729,274
149,904 - 149,904
- 977,447 977,447
33,452 (33,452) -
1,204,170 59,099,106 60,303,276
12,540,983 23,409,551 35,950,534
47,236,759 327,467,733 374,704,492 $ 59,777,742 350,877,284 $ 410,655,026 $ Changes in Net Position
Net (Expense) Revenue and
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CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF MAJOR FUNDS
JUNE 30, 2024
(23)
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.
County Grants Special Revenue Fund accounts for various Los Angeles County grants that are received for restricted expenditures for specific programs and projects.
State Grants Special Revenue Fund accounts for the various state of California grants that are restricted to expenditures for specific programs and projects.
Capital Improvement Capital Projects Fund accounts for acquisition or construction of major capital facilities.
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 FUNDS
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.
Pico Rivera Golf Course Fund accounts for the operations of the City-owned golf course.
Pico Rivera Sports Arena Fund (NONMAJOR) accounts for funds received from the respective private concessionaires operating each facility.
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, 2024
See accompanying Notes to Financial Statements.
(24)
Housing American
Agency Rescue
General Section 8 Plan
ASSETS
Cash and Investments $ 48,216,064 $ 879,480 $ 4,544,655 Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 1,454,751 - - Escrow Deposits - 2,727 - Receivables:
Accounts 249,663 - - Taxes 6,954,177 - -
Interest 393,825 - - Due from Other Funds 3,457,137 - - Inventories 3,825 - - Advance to Other Funds 20,436,212 - - Long-Term Receivables - - - Prepaid Items 48,794 - - Land Held for Resale 1,701,360 - - Receivables from Successor Agency 13,840,715 - - Total Assets $ 96,756,523 $ 882,207 $ 4,544,655
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 2,640,101 $ 89 $ - Accrued Liabilities 931,544 21,857 - Due to Other Funds - - - Deposits 1,168,355 2,727 - Retention Payable 18,823 - - Unearned Revenue 90,000 - 4,544,655 Due to Other Agencies - - - Total Liabilities 4,848,823 24,673 4,544,655
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 6,968,788 - - Total Deferred Inflows of Resources 6,968,788 - - FUND BALANCES (DEFICIT) Nonspendable 27,360,759 - - Restricted 1,510,564 857,534 - Committed 29,660,398 - - Assigned 25,239,889 - - Unassigned 1,167,302 - - Total Fund Balances (Deficit) 84,938,912 857,534 - Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 96,756,523 $ 882,207 $ 4,544,655 Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
BALANCE SHEET (CONTINUED)
JUNE 30, 2024
See accompanying Notes to Financial Statements.
(25)
Other Total
County State Capital 2018 Series A Governmental Governmental Grants Grants Improvement COP Funds Funds
$ 7,937,749 $ 271,277 $ 18,580,443 $ - $ 26,851,970 $ 107,281,638 - - - 5,155,543 - 6,610,294
- - - - - 2,727
18,354 5,160,976 - - 2,921,124 8,350,117
- - - - 689,991 7,644,168
- 633 - - 138,093 532,551
- - - - - 3,457,137
- - - - - 3,825
- - - - - 20,436,212
- - - - 3,819,571 3,819,571
- - - - 90,524 139,318
- - - - - 1,701,360
- - - - 1,883,896 15,724,611
$ 7,956,103 $ 5,432,886 $ 18,580,443 $ 5,155,543 $ 36,395,169 $ 175,703,529 $ 64,770 $ 2,031,057 $ 353,294 $ - $ 1,767,648 $ 6,856,959 7,346 6,920 - - 38,214 1,005,881
- 1,971,619 - 31,570 1,453,948 3,457,137
- - - - - 1,171,082
- 223,769 - - 184,771 427,363
7,822,023 1,077,759 - - - 13,534,437
- - - - 3,819,571 3,819,571
7,894,139 5,311,124 353,294 31,570 7,264,152 30,272,430 - 4,869,120 - - 1,447,986 13,285,894
- 4,869,120 - - 1,447,986 13,285,894
- - - - - 27,360,759
61,964 - - 5,123,973 28,393,551 35,947,586
- - - - - 29,660,398
- 18,227,149 - - 43,467,038
- (4,747,358) - - (710,520) (4,290,576)
61,964 (4,747,358) 18,227,149 5,123,973 27,683,031 132,145,205 $ 7,956,103 $ 5,432,886 $ 18,580,443 $ 5,155,543 $ 36,395,169 $ 175,703,529 Special Revenue Funds Capital Projects Funds
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CITY OF PICO RIVERA, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Financial Statements.
(26)
Fund Balances (Deficits) for Governmental Funds 132,145,205 $ 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 460,063,144 $
Lease Assets 117,880 Less: Accumulated Depreciation (170,104,955) Subtotal 290,076,069 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. 13,285,894 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. 2,718,169 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 (1,868,520) Claims Payable (3,507,000) Accrued Interest Payable (333,455) Lease Liability (120,183) Revenue Bonds Payable (38,612,829) Deferred Amount on Refunding 1,382,141 Subtotal (43,059,846) 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 3,262,535 Deferred Inflows of Resources Related to OPEB (3,371,797) Net OPEB Liability (16,305,924) Deferred Outflows of Resources Related to Pensions 8,349,210 Deferred Inflows of Resources Related to Pensions (583,022) Net Pension Liability (35,639,209) Subtotal (44,288,207) Net Position of Governmental Activities 350,877,284 $
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Financial Statements.
(27)
Housing American
Agency Rescue
General Section 8 Plan
REVENUES
Taxes and Assessments $ 45,752,339 $ - $ - Licenses and Permits 6,856,107 - - Intergovernmental 275,062 6,980,240 - Charges for Services 1,394,675 - - Fines, Forfeitures, and Penalties 1,213,961 - - Investment and Rental 3,648,783 500 - Miscellaneous 1,120,771 18,026 - Total Revenues 60,261,698 6,998,766 - EXPENDITURES Current:
General Government 11,307,305 - - Public Safety 13,366,320 - - Public Works 11,228,551 - - Parks and Recreation 6,891,330 - - Health and Welfare - 6,674,337 - Community Development 6,308,071 - - Capital Outlay 128,044 - - Debt Service:
Principal 1,030,000 - -
Interest and Fiscal Charges 888,775 - - Lease Principal 44,016 - - Lease Interest 4,560 - - Total Expenditures 51,196,972 6,674,337 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,064,726 324,429 - OTHER FINANCING SOURCES (USES):
Transfers In 1,679,327 - - Transfers Out (8,177,796) - - Lease Proceeds 102,880 - - Loss on Sale of Capital Assets (196) - - Total Other Financing Sources (Uses) (6,395,785) - - NET CHANGE IN FUND BALANCES 2,668,941 324,429 - Fund Balances (Deficits) - Beginning of Year, as previously presented 82,269,971 533,105 - Change within financial reporting entity (nonmajor to major fund) - - - Fund Balances (Deficits) - Beginning of Year, as Restated 82,269,971 533,105 - FUND BALANCES (DEFICITS) - END OF YEAR $ 84,938,912 $ 857,534 $ - Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Financial Statements.
(28)
2018 Other Total
County State Capital Series A Governmental Governmental Grants Grants Improvement COP Funds Funds
$ - $ - $ - $ - $ 2,121,804 $ 47,874,143
- - - - - 6,856,107
2,273,871 1,742,200 - - 14,439,466 25,710,839
- - - - 251,977 1,646,652
- - - - - 1,213,961
- 56,545 - 257,233 1,302,654 5,265,715
21,145 - - - 141,615 1,301,557
2,295,016 1,798,745 - 257,233 18,257,516 89,868,974
- - - - 165,032 11,472,337
- - - - - 13,366,320
- - - - 3,263,439 14,491,990
5,907 - - - 1,115,570 8,012,807
- 698,034 - - - 7,372,371
- - - - 119,597 6,427,668
1,504,318 5,628,618 2,510,616 225,759 8,219,882 18,217,237 - - - 300,000 - 1,330,000
- - - 531,669 - 1,420,444
- - - - - 44,016
- - - - - 4,560
1,510,225 6,326,652 2,510,616 1,057,428 12,883,520 82,159,750 784,791 (4,527,907) (2,510,616) (800,195) 5,373,996 7,709,224 - - 7,425,469 836,669 159,173 10,100,638
- - - - (3,045,996) (11,223,792)
- - - - - 102,880
- - - - - (196)
- - 7,425,469 836,669 (2,886,823) (1,020,470)
784,791 (4,527,907) 4,914,853 36,474 2,487,173 6,688,754 - - - 5,087,499 37,565,876 125,456,451
(722,827) (219,451) 13,312,296 - (12,370,018) -
(722,827) (219,451) 13,312,296 5,087,499 25,195,858 125,456,451 $ 61,964 $ (4,747,358) $ 18,227,149 $ 5,123,973 $ 27,683,031 $ 132,145,205 Special Revenue Funds Capital Projects Funds
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, 2024
See accompanying Notes to Financial Statements.
(29)
Net Change in Fund Balances - Total Governmental Funds $ 6,688,754 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 $ 19,160,731
Loss on Disposal (343,836)
Depreciation Expense (6,981,746)
Subtotal 11,835,149
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 283,712
Grant and Other Revenue Not Available to Pay
for Current-Period Expenditures 2,409,379
Subtotal 2,693,091
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 (1,317,000)
Net Change in Compensated Absences (149,239)
Subtotal (1,466,239)
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 1,330,000
Principal Payments on Lease Liabilities 44,016
Issuance of Lease Liabilities (102,880)
Amortization of Deferred Bond Charges 65,330
Change in Accrued Interest 12,967
Subtotal 1,349,433
Internal service funds were used by management to charge the cost of certain activities to the individual funds. The net revenue of the internal service funds was reported with governmental activities. 1,456,772 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. 1,518,609 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. (666,018)
Change in Net Position of Governmental Activities $ 23,409,551
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Financial Statements.
(30)
Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Enterprise Internal
Operations Energy Course Fund Total Service Fund
ASSETS
Current Assets:
Cash and Investments 12,908,367 $ 13,921,414 $ 176,738 $ 912,334 $ 27,918,853 $ 1,081,545 $ Receivables, Net:
Accounts 2,754,165 4,178,242 302,069 - 7,234,476 -
Interest 71,823 - - 5,080 76,903 7,772 Prepaids - 2,811,875 - - 2,811,875 - Total Current Assets 15,734,355 20,911,531 478,807 917,414 38,042,107 1,089,317 Noncurrent Assets:
Restricted Cash and Investments
with Fiscal Agent 884,179 - - - 884,179 - Receivables from Successor Agency 197,206 - - - 197,206 - Capital Assets, Not Depreciated 34,397,164 - 38,945 3,368 34,439,477 - Capital Assets, Depreciated, Net 27,244,535 - 219,339 2,722 27,466,596 1,628,932 Total Noncurrent Assets 62,723,084 - 258,284 6,090 62,987,458 1,628,932 Total Assets 78,457,439 20,911,531 737,091 923,504 101,029,565 2,718,249 DEFERRED OUTFLOWS OF RESOURCES Amounts Related to OPEB 379,708 44,238 - - 423,946 - Amount Related to Pensions 1,651,597 104,364 9,119 18,238 1,783,318 - Total Deferred Outflows of Resources 2,031,305 148,602 9,119 18,238 2,207,264 - LIABILITIES Current Liabilities:
Accounts Payable 777,890 2,291,635 332,973 28,000 3,430,498 80 Accrued Interest Payable 64,075 - - - 64,075 - Accrued Liabilities 125,698 370,420 35,230 3,929 535,277 - Unearned Revenue 262,942 - - - 262,942 - Deposits 623,112 - - - 623,112 - Retentions Payable 227,267 - 1,673 - 228,940 - Bonds Payable - Current Portion 1,255,000 - - - 1,255,000 - Compensated Absences - Current Portion 36,848 4,420 - - 41,268 - Total Current Liabilities 3,372,832 2,666,475 369,876 31,929 6,441,112 80 Noncurrent Liabilities:
Advance from Other Funds 16,084,289 - 4,351,923 - 20,436,212 - Bonds Payable 5,927,648 - - - 5,927,648 - Compensated Absences 331,630 39,784 - - 371,414 - Net OPEB Liability 1,897,752 221,095 - - 2,118,847 - Net Pension Liability 7,039,936 444,855 38,871 77,742 7,601,404 - Total Noncurrent Liabilities 31,281,255 705,734 4,390,794 77,742 36,455,525 - Total Liabilities 34,654,087 3,372,209 4,760,670 109,671 42,896,637 80 DEFERRED INFLOWS OF RESOURCES Amounts Related to OPEB 392,423 45,719 - - 438,142 - Amounts Related to Pensions 115,128 7,274 635 1,271 124,308 - Total Deferred Inflows of Resources 507,551 52,993 635 1,271 562,450 - NET POSITION Net Investment in Capital Assets 54,081,474 - 258,284 6,090 54,345,848 1,628,932 Unrestricted (8,754,368) 17,634,931 (4,273,379) 824,710 5,431,894 1,089,237 Total Net Position $ 45,327,106 $ 17,634,931 $ (4,015,095) $ 830,800 $ 59,777,742 $ 2,718,169 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, 2024
See accompanying Notes to Financial Statements.
(31)
Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Enterprise Internal
Operations Energy Course Fund Total Service Fund
OPERATING REVENUES
Charges for Services 12,150,139 $ 28,150,577 $ 1,330,321 $ 322,479 $ 41,953,516 $ - $ Miscellaneous 1,810 188,027 - - 189,837 334,370 Total Operating Revenues 12,151,949 28,338,604 1,330,321 322,479 42,143,353 334,370 OPERATING EXPENSES Cost of Power - 20,221,743 - - 20,221,743 - Salaries and Benefits 3,551,741 482,774 43,151 80,027 4,157,693 - Contractual Services 288,032 708,089 155,495 142,000 1,293,616 - Insurance Claims and Expenses 355,633 317 - 2,119 358,069 - Administrative 2,790,697 101,708 1,177,560 10,714 4,080,679 - Utilities 444,809 - 271,304 - 716,113 - Repairs and Maintenance 603,159 - 92,592 - 695,751 51,759 Depreciation 1,031,153 - 34,364 1,639 1,067,156 111,656 Total Operating Expenses 9,065,224 21,514,631 1,774,466 236,499 32,590,820 163,415 OPERATING INCOME (LOSS) 6,823,973 3,086,725 (444,145) 85,980 9,552,533 170,955 NONOPERATING REVENUES (EXPENSES)
Investment Income 700,783 426,627 - 43,308 1,170,718 46,015 Gain on Disposal of Capital Assets - - - - - 150,100 Grants 70,935 - - - 70,935 - Interest Expense (399,134) - - - (399,134) - Total Nonoperating Revenues (Expenses) 372,584 426,627 - 43,308 842,519 196,115
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 7,250,600 3,459,309 (444,145) 129,288 10,395,052 367,070 CAPITAL CONTRIBUTIONS - 2,112,479 - - 2,112,479 - TRANSFERS IN - - 33,452 - 33,452 1,089,702 CHANGES IN NET POSITION 7,250,600 5,571,788 (410,693) 129,288 12,540,983 1,456,772 Net Position (Deficit) - Beginning of Year, as previously presented 39,755,318 10,384,331 - (2,902,890) 47,236,759 1,261,397 Change within financial reporting entity (nonmajor to major fund) - - (3,604,402) 3,604,402 - - Net Position (Deficit) - Beginning of Year, as Restated 39,755,318 10,384,331 (3,604,402) 701,512 47,236,759 1,261,397 NET POSITION (DEFICIT)- END OF YEAR $ 17,634,931 45,327,106 $ (4,015,095) $ 830,800 $ 59,777,742 $ 2,718,169 $ Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Financial Statements.
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Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Sports Internal
Operations Energy Course Arena Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 11,167,986 $ 28,974,783 $ 1,075,499 $ 335,433 $ 41,553,701 $ 334,370 $ Payments to Suppliers (5,000,301) (23,157,792) (1,464,699) (126,833) (29,749,625) (51,679) Payments to Employees (3,052,779) (417,049) (61,009) (77,486) (3,608,323) - Net Cash Provided (Used) by Operating Activities 3,114,906 5,399,942 (450,209) 131,114 8,195,753 282,691 CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Cash Received from Other Funds 176,000 - 558,576 - 734,576 1,089,702 Net Cash Provided by Noncapital Activities 176,000 - 558,576 - 734,576 1,089,702 CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of Capital Assets (1,659,632) - (23,165) - (1,682,797) (1,349,282) Transfers Received from Other Funds for Capital Purposes - - 33,452 - 33,452 - Capital grants received 70,935 - - - 70,935 - Principal Retired (1,190,000) - - - (1,190,000) - Interest Paid (449,900) - - - (449,900) - Net Cash Provided (Used) by Capital and Related Financing Activities (3,228,597) - 10,287 - (3,218,310) (1,349,282) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 692,193 426,627 - 41,963 1,160,783 42,718 Proceeds from Sales of Property - - - - - 150,100 Net Cash Provided by Investing Activities 692,193 426,627 - 41,963 1,160,783 192,818 NET INCREASE IN CASH AND CASH EQUIVALENTS 5,826,569 754,502 118,654 173,077 6,872,802 215,929 Cash and Cash Equivalents - Beginning of Year 13,038,044 8,094,845 58,084 739,257 21,930,230 865,616 CASH AND CASH EQUIVALENTS - END OF YEAR $ 13,921,414 13,792,546 $ 176,738 $ 912,334 $ 28,803,032 $ 1,081,545 $ Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Financial Statements.
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Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Sports Internal
Operations Energy Course Arena Total Service Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES
Operating Income (Loss) 3,086,725 $ 6,823,973 $ (444,145) $ 85,980 $ 9,552,533 $ 170,955 $ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 1,031,153 - 34,364 1,639 1,067,156 111,656 Changes in Operating Assets, Deferred Outflows of Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable (1,245,507) 636,179 (254,822) 12,954 (851,196) - (Increase) Decrease in Deferred Outflows of Resources - Amount Related to OPEB (182,942) (18,161) - - (201,103) - (Increase) Decrease in Deferred Outflows of Resources - Amount Related to Pensions 231,110 14,605 1,276 2,553 249,544 - Increase (Decrease) in Accounts Payable (589,929) 685,940 230,579 28,000 354,590 80 Increase (Decrease) in Accrued Liabilities 11,715 27,343 (18,584) 1,088 21,562 - Increase (Decrease) in Unearned 247,989 - - - 247,989 - Increase (Decrease) in Deposits Payable 13,555 - - - 13,555 - Increase (Decrease) in Retentions Payable 71,958 - 1,673 - 73,631 - Increase (Decrease) in Net OPEB Liability 476,684 32,764 - - 509,448 - Increase (Decrease) in Net Pension Liability 74,529 4,710 412 823 80,474 - Increase (Decrease) in Compensated Absences 88,161 25,228 - - 113,389 - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to OPEB (26,216) (9,763) - - (35,979) - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions (174,079) (11,001) (962) (1,923) (187,965) - Total Adjustments 28,181 (1,424,031) (6,064) 45,134 (1,356,780) 111,736 Net Cash Provided (Used) by Operating Activities 3,114,906 $ 5,399,942 $ (450,209) $ 131,114 $ 8,195,753 $ 282,691 $ Business-Type Activities - Enterprise Funds
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND
JUNE 30, 2024
See accompanying Notes to Financial Statements.
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Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governmental units.
Successor Agency to the City of Pico Rivera Redevelopment Agency Private-Purpose Trust Fund accounts for the activities of the Successor Agency to the Pico Rivera Redevelopment Agency.
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
See accompanying Notes to Financial Statements.
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Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and Investments 6,170,493 $
Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 3,494 Accounts Receivable 1,026 Interest Receivable 33,534 Loans Receivable 312,353 Capital Assets:
Capital Assets, Not Depreciated 258,023
Capital Assets, Depreciated, Net 47,525 Total Assets 6,826,448 DEFERRED OUTFLOWS OF RESOURCES Loss on Refunding 331,841 LIABILITIES
Accrued Liabilities 2,680
Interest Payable 7,997
Payable to City of Pico Rivera 49,641,274 Payable to Pico Rivera Housing Assistance Agency 1,883,896 Payable to the County of Los Angeles 42,243,223 Bond payable 6,355,000
Total Liabilities 100,134,070 NET POSITION
Held in Trust for Successor Agency (92,975,781) Total Net Position (92,975,781) $
CITY OF PICO RIVERA, CALIFORNIA
FIDUCIARY FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Financial Statements.
(36)
Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ADDITIONS
Taxes 6,864,442 $
Contributions 1,065,000
Investment Earnings 295,653 Total Additions 8,225,095
DEDUCTIONS
Administrative Expenses 98,937
Interest 2,314,589 Depreciation 4,766 Total Deductions 2,418,292 CHANGE IN NET POSITION 5,806,803
Net Position - Beginning of Year (98,782,584) NET POSITION - END OF YEAR $ (92,975,781) This page intentionally left blank.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The former Pico Rivera Redevelopment Agency was dissolved effective February 1, 2012, as a result of Assembly Bill x1 26 (the Dissolution Act). It is no longer considered to be a component unit of the City. On January 10, 2012, the City accepted a fiduciary role as the Successor Agency to serve as the custodian for the assets and to wind down the affairs of the former RDA. Successor Agency activity is reported in a fiduciary private-purpose trust fund.
The City’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City’s more significant accounting policies are described below.
B. Government-Wide and Fund Financial Statements
The statement of net position and statement of activities (i.e., the government-wide financial statements) display information on all of the nonfiduciary activities of the primary government (the City) and its blended component units. Eliminations have been made to minimize the effect of interfund activity. These statements distinguish between the City’s governmental and business-type activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each function of the City’s governmental activities and for each segment of the City’s business-type activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include (1) charges paid by the recipients of goods or services offered by the functions or programs and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating items.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year that the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements have been satisfied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.”
Under the modified accrual basis of accounting, revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims payable, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term liabilities are reported as other financing sources.
Property taxes, taxpayer-assessed taxes, such as sales taxes, gas taxes, and transient occupancy taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. Amounts owed to the City, which are not available, are recorded as receivables and deferred inflows of resources.
Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Long-term receivables in governmental funds are reported on the balance sheets in spite of their spending measurement focus.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(40)
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 County Grants Special Revenue Fund accounts for grants received from Los Angeles County that are received for restricted expenditures for specific programs and projects.
The State Grants Special Revenue Fund accounts for grants received from the state of California that are received for restricted expenditures for specific programs and projects.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The Capital Improvement Capital Projects Fund accounts acquisition or construction of major capital facilities.
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.
The Pico Rivera Golf Course Fund account for the operations of the City-owned golf course.
The City reports the following nonmajor enterprise fund:
The Pico Rivera Sports Arena Fund accounts for funds received from the respective private concessionaires operating each facility.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
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 100
Accounting Changes and Error Corrections – An Amendment to GASB Statement No. 62 defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. The Statement prescribes the accounting and financial reporting for each type of accounting change and for error corrections. See Note 16 for further information on how the implementation of GASB Statement No. 100 had on the City’s financial statements.
E. Investments
Investments are recorded at fair value (quoted market price or best available estimate thereof). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Interest earned on cash and investments is credited to the fund, which holds the investment.
F. Property Taxes
Property taxes include assessments on both secured and unsecured property. Secured property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments by December 10 and April 10.
The County of Los Angeles (the County) bills and collects the property taxes and remits them to the City in installments during the year. The City records property taxes as revenue when received from the County, except for property taxes received within 60 days after fiscal year-end, which are accrued at June 30.
The County is permitted by State of California law (Article XIII A of the California Constitution) to levy taxes at 1% of full fair value (at the time of purchase) and can increase the property’s value at no more than 2% per year. The City receives a share of this basic levy.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets (Continued)
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.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(45)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Compensated Absences (Continued)
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 and 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 pensions and OPEB 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. Deferred outflows related to pensions resulting from the difference in expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided pensions through the plans.
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:
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(46)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Deferred Outflows/Inflows of Resources (Continued)
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, 2024
(47)
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, 2024
(48)
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, 2024
(49)
NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2024 are classified in the accompanying financial statements as follows:
Government Fiduciary
Wide Funds Total
Unrestricted Assets:
Cash and Investments 136,282,036 $ 6,170,493 $ 142,452,529 $ Restricted Cash and Investments:
Cash and Investments with Fiscal Agents 7,494,473 3,494 7,497,967 Escrow Deposits 2,727 - 2,727 Total Cash and Investments 143,779,236 $ 6,173,987 $ 149,953,223 $ Statement of Net Position
Cash and investments at June 30, 2024 consisted of the following:
Cash on Hand $ 6,295
Deposits with Financial Institutions 52,200,335
Investments 97,746,593 Total Cash and Investments 149,953,223 $ 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, 2024
(50)
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, 2024
(51)
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 57,470,397 $ - $ - $ 57,470,397 $ U.S. Government Sponsored
Agency Securities 196,844 966,001 3,942,724 5,105,569 U.S. Treasury Notes 5,259,344 2,699,321 5,465,696 13,424,361 Money Market Mutual Funds 95,699 - - 95,699 Supranational 663,656 - 1,243,468 1,907,124 Negotiable Certificates of Deposit 684,071 - - 684,071 Medium-Term Notes 1,918,001 1,411,895 8,231,509 11,561,405 Held by Fiscal Agent:
Money Market Mutual Funds 6,043,216 - - 6,043,216 PARS Trust Pooled Investments 1,454,751 - - 1,454,751 Total 73,785,979 $ 5,077,217 $ 18,883,397 $ 97,746,593 $ 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, 2024 AAA AA+ AA Other Rated Local Agency Investment Fund N/A $ 57,470,397 $ - $ - $ - $ - $ 57,470,397 U.S. Government Sponsored
Agency Securities N/A 5,105,569 476,408 4,629,161 - - - U.S. Treasury Notes* N/A 13,424,361 - - - - 13,424,361 Money Market Mutual Funds N/A 95,699 95,699 - - - - Supranational A 1,907,124 1,907,124 - - - - Negotiable CD A- 684,071 684,071 - Medium-Term Notes A 11,561,405 2,182,382 390,889 129,961 8,017,426 840,747 Held by Fiscal Agent:
Money Market Mutual Funds N/A 6,043,216 6,043,216 - - - - PARS Trust Pooled Investments N/A 1,454,751 - - - - 1,454,751 Total $ 97,746,593 $ 10,704,829 $ 5,020,050 $ 129,961 $ 8,701,497 $ 73,190,256 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, 2024
(52)
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, 2024 A-1+ AA- A+ A ANegotiable CD 684,071 $ 684,071 $ - $ - $ - $ - $ Medium-Term Notes 8,017,426 - 177,443 2,819,893 3,429,037 1,591,053 Total 8,701,497 $ 684,071 $ 177,443 $ 2,819,893 $ 3,429,037 $ 1,591,053 $ 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, 2024, 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, 2024
(53)
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 - $ 1,907,124 $ - $ 1,907,124 $
Medium-Term Notes - 11,561,405 - 11,561,405 U.S. Treasury Notes - 13,424,361 - 13,424,361 U.S. Government Sponsored
Agency Securities - 5,105,569 - 5,105,569 Total Leveled Investments - $ 32,682,530 $ - $ 32,682,530 Investments Not Subject to Fair Value Hierarchy:
Local Agency Investment Fund 57,470,397
Money Market Mutual Funds 95,699 Held by Trustee:
Money Market Mutual Funds 6,043,216 PARS Trust Pooled Investments 1,454,751 Total Investment Portfolio 97,746,593 $
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(54)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2024, 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 4,351,923 Total 20,436,212 $ 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 2023-24. The balance of the advance at June 30, 2024, 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, 2024, is as follows:
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds 1,453,948 $
State Grants Special Revenue Fund 1,971,619 2018 Series A COP Special Revenue Fund 31,570 Total 3,457,137 $ 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, 2024
(55)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) Transfers
Transfers Out Transfers In Amount
General Fund Other Governmental Funds (1) 159,173 $
Capital Improvement (1) 6,895,469 Golf Course Enterprise Fund (1) 33,452 Equipment Replacement Internal Service Fund (1) 1,089,702
Other Governmental Funds General Fund (2) 1,679,327
Capital Improvement (2) 530,000 2018 Series A COP Capital Projects Fund (3) 836,669
Total 11,223,792 $
(1) The General Fund transferred $6,895,469 to Capital Improvement Fund for approved capital outlays, $159,173 to Other Governmental to subsidize expenditures, $33,452 to the Golf Course Enterprise Fund for capital outlays and $1,089,702 to the Equipment Replacement Internal Service Fund to replace nine vehicles and equipment. (2) The Other Governmental Funds – State Gas Tax Fund transferred $1,679,327 to General Fund for approved street maintenance activities and capital outlays. The Lighting Assessment District Fund transferred $530,000 to the Capital Improvement Fund for approved capital outlays.
(3) The Other Governmental Fund – Measure M transferred $836,669 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, 2024 is $2,542,128 and is included in the HOME Grant Special Revenue Fund. At June 30, 2024, the City has an allowance of $11,863 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, 2024 totaled $176,409. At June 30, 2024, the City has an allowance of $44,042 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, 2024
(56)
NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
Loans receivable consists of low-interest home improvement loans made form the CalHOME Grant Special Revenue Fund. These loans shall be due and payable in full when the borrower’s legal interest in the property, which is security for the loan, is sold, transferred, or conveyed. The outstanding principal balance at June 30, 2024 is $1,101,034.
At June 30, 2024, the City has an allowance of $156,645 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.
Home improvement loans to low- and moderate-income households have been made from the Housing Agency LMIHF Special Revenue Fund. These loans are payable in 10 years or when borrowers sell their property, whichever comes first. The outstanding balances, net of an $35,044 allowance, were zero at June 30, 2024.
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, 2024 was $287,050 and $192,917, 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 18,454,287 $ - $ 262,942 $ Sales Tax Deferral Loan to Allow Former
Redevelopment Agency to Meet its Debt
Service Obligations 30,924,045 - - Loans to Make Payments to Supplemental Educational Revenue Augmentation Fund - 1,883,896 - Subtotal 49,378,332 1,883,896 262,942 Reserve on Long-Term Loans (4,613,572) - (65,736) Reserve on Sales Tax Deferral Loan (30,924,045) - - Total 13,840,715 $ 1,883,896 $ 197,206 $
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(57)
NOTE 5 CAPITAL AND LEASE ASSETS
Governmental Activities
Capital and leased asset activity for the year ended June 30, 2024, was as follows:
Balance at Balance at
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital Assets, Not Being
Depreciated:
Land 120,696,364 $ - $ - $ - $ 120,696,364 $
Construction in Progress 36,310,556 18,602,925 (38,842) (34,238,586) 20,636,053 Total Capital Assets, Not Being Depreciated 157,006,920 18,602,925 (38,842) (34,238,586) 141,332,417 Capital Assets, Being Depreciated and Amortized
Structures and Improvements 25,590,725 - - - 25,590,725 Furniture and Equipment 7,689,601 1,803,258 (907,879) - 8,584,980 Infrastructure 252,352,928 950 34,238,586 286,592,464 Right to Use Asset - Equipment 111,108 102,880 - - 213,988 Total Capital Assets, Being Depreciated and Amortized 285,744,362 1,907,088 (907,879) 34,238,586 320,982,157 Less Accumulated Depreciation for:
Structures and Improvements (13,676,859) (552,401) - - (14,229,260) Furniture and Equipment (5,723,150) (371,821) 602,885 - (5,492,086) Infrastructure (144,668,077) (6,124,042) - - (150,792,119) Less Accumulated Amortization for:
Right to Use Asset - Equipment (50,970) (45,138) - - (96,108) Total Accumulated Depreciation/Amortization (164,119,056) (7,093,402) 602,885 - (170,609,573) Total Capital Assets, Being Depreciated Amortized, Net 121,625,306 (5,186,314) (304,994) 34,238,586 150,372,584 Governmental Activities Capital and Leased Assets 278,632,226 $ 13,416,611 $ (343,836) $ - $ 291,705,001 $ Depreciation expense was charged to functions of the governmental activities as follows:
General Government 48,927 $
Public Safety 12,893 Public Works 5,674,002 Parks and Recreation 1,357,580 Total Depreciation Expense 7,093,402 $
Amortization expense was charged to general government.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(58)
NOTE 5 CAPITAL AND LEASE ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2024, was as follows:
Balance at Balance at
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital Assets, Not Being
Depreciated:
Land 18,174,060 $ - $ - $ - $ 18,174,060 $
Rights of Way 5,579,916 - - - 5,579,916 Construction in Progress 12,118,244 3,153,382 - (4,586,125) 10,685,501 Total Capital Assets, Not Being Depreciated 35,872,220 3,153,382 - (4,586,125) 34,439,477 Capital Assets, Being Depreciated:
Structures and Improvements 7,132,351 - - - 7,132,351 Utility Plant in Service 21,785,673 - - - 21,785,673 Equipment 2,410,638 641,894 (102,804) 156,673 3,106,401 Infrastructure 17,692,287 - - 4,429,452 22,121,739 Total Capital Assets, Being Depreciated 49,020,949 641,894 (102,804) 4,586,125 54,146,164 Less Accumulated Depreciation for:
Structures and Improvements (4,328,520) (93,523) - - (4,422,043) Utility Plant in Service (8,712,515) (367,621) - - (9,080,136) Equipment (1,588,065) (167,734) 102,804 - (1,652,995) Infrastructure (11,086,116) (438,278) - - (11,524,394) Total Accumulated Depreciation (25,715,216) (1,067,156) 102,804 - (26,679,568) Total Capital Assets, Being Depreciated, Net 23,305,733 (425,262) - 4,586,125 27,466,596 Business-Type Activities Capital Assets, Net 59,177,953 $ 2,728,120 $ - $ - $ 61,906,073 $ Depreciation expense was charged to functions of the business-type activities as follows:
Water Operations 1,031,153 $
Sports Arena 1,639 Golf Course 34,364 Total Depreciation Expense 1,067,156 $
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(59)
NOTE 6 LONG-TERM LIABILITIES
Changes in long-term liabilities activity for the year ended June 30, 2024, were as follows:
Balance at Balance at Due Within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Governmental Activities:
Other Debt:
2016 Lease Revenue Bonds $ 23,965,000 $ - $ (1,030,000) $ 22,935,000 $ 1,065,000 $ 21,870,000 Bond Premium 2,144,182 - (134,028) 2,010,154 - 2,010,154 2018 Series A Certificates
of Participation 13,405,000 - (300,000) 13,105,000 320,000 12,785,000 Bond Premium 586,120 - (23,445) 562,675 - 562,675
Other Liabilities:
Lease Liability 61,319 102,880 (44,016) 120,183 45,309 74,874 Compensated Absences 1,719,281 912,747 (763,508) 1,868,520 373,703 1,494,817 Claims and Judgements 2,190,000 2,087,946 (770,946) 3,507,000 794,000 2,713,000 Total Governmental
Activities $ 44,070,902 $ 3,103,573 $ (3,065,943) $ 44,108,532 $ 2,598,012 $ 41,510,520 Business-Type Activities:
Other Debt:
Revenue Bonds Payable 8,180,000 $ - $ (1,190,000) $ 6,990,000 $ 1,255,000 $ 5,735,000 $ Add (Less):
Bond Premium 232,506 - (39,858) 192,648 - 192,648
Subtotal Revenue
Bonds Payable 8,412,506 - (1,229,858) 7,182,648 1,255,000 5,927,648 Other Liabilities:
Compensated Absences 299,293 246,554 (133,165) 412,682 41,268 371,414 Total Business-Type
Activities 8,711,799 $ 246,554 $ (1,363,023) $ 7,595,330 $ 1,296,268 $ 6,299,062 $ Governmental Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amounts of $1,868,520 at June 30, 2024 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, 2024
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NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
2016 Lease Revenue Bonds (Continued)
Annual debt service for the 2016 PFA Bonds is as follows:
Year Ending June 30, Principal Interest Total
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 1,200,000 724,300 1,924,300 2030 - 2034 6,830,000 2,681,056 9,511,056 2035 - 2039 8,570,000 959,981 9,529,981
2040 1,880,000 28,200 1,908,200
Total 22,935,000 $ 7,615,737 $ 30,550,737 $
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
2025 320,000 $ 516,669 $ 836,669 $
2026 335,000 500,669 835,669 2027 350,000 483,919 833,919 2028 370,000 466,418 836,418 2029 385,000 447,918 832,918 2030 - 2034 2,240,000 1,930,594 4,170,594
2035 - 2039 2,765,000 1,342,906 4,107,906 2040 - 2044 3,280,000 772,975 4,052,975 2045 - 2047 3,060,000 165,375 3,225,375
Total 13,105,000 $ 6,627,443 $ 19,732,443 $
Business-Type Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amount of $412,682 at June 30, 2024 is expected to be paid in future years from future resources.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024, is $600,000.
Annual debt service for the Series 1999 A bonds is as follows:
Year Ending June 30, Principal Interest Total
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 6,990,000 $ 1,194,050 $ 8,184,050 $
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024 totaled $272,581.
NOTE 8 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2024:
Deferred Deferred Pension
Pension Outflows Inflows Expense
Liability of Resources of Resources (Credit)
Miscellaneous Plan $ 43,189,789 $ 10,132,499 $ 706,308 $ 5,423,990 Council Plan 50,824 29 1,022 4,547
Total $ 43,240,613 $ 10,132,528 $ 707,330 $ 5,428,537
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, 2024
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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, 2023, the measurement date, are summarized as follows:
On or After
June 26, 2012,
Prior to Prior to On or After
Hire Date June 26, 2012 January 1, 2013 January 1, 2013 Benefit Formula 2.5%@55 2%@60 2%@62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 - 55 50 - 63 52 - 67
Monthly Benefits, as a Percent of
Eligible Compensation 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 7.67% 7.67% 7.50%
Required Employer Contribution Rates:
Normal Cost Rate 10.370% 12.850% 7.930%
Payment of Unfunded Liability 3,106,856 $ - $ - $
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(64)
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, 2023, 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 279 5
Inactive Employees Entitled to But
Not Yet Receiving Benefits 155 2
Active Employees 146 1
Total 580 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, 2024, the City contributed $4,666,971 and $3,591 to the Miscellaneous Plan and Council Plan, respectively.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(65)
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, 2023, using an annual actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. The net pension liability of the Council Plan is measured as of June 30, 2024, using an actuarial valuation date of June 30, 2023. 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 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Council Plan
Valuation Date June 30, 2022 June 30, 2023
Measurement Date June 30, 2023 June 30, 2024
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Normal Cost
Method Method
Actuarial Assumptions:
Discount Rate 6.90% 6.50%
Inflation 2.30% 2.30%
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, 2021. (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.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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 6.9%.
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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2023.
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 % 0.94 % 0.91 %
U.S. Core Fixed Income 27.00 2.52 2.36
U.S. Short Govt/Credit Bonds 6.75 1.65 1.59
U.S. High Yield Bonds 1.25 4.43 3.87
U.S. Large & Mid Cap Equity 32.00 5.41 3.74
U.S. Mid Cap Equity 6.00 5.98 3.90
U.S. Small Cap Equity 9.00 6.99 4.41
Foreign Developed Equity 7.00 6.92 5.12
Emerging Markets Equity 4.00 9.34 6.21
U.S. REITs 2.00 6.91 4.72
Total 100.00 %
Assumed Inflation - Mean 2.31 % 2.30 %
Assumed Inflation Standard Deviation 1.45 % 1.45 %
Portfolio Real Mean Return 4.61 % 3.90 %
Portfolio Nominal Mean Return 6.91 % 6.32 %
Portfolio Standard Deviation 11.45 %
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability (Continued)
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
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, 2022
(Measurement Date) 129,259,869 $ 86,527,311 $ 42,732,558 $ Changes in the Year:
Service Cost 1,994,117 - 1,994,117
Interest on the Total Pension Liability 8,789,337 - 8,789,337 Differences between Expected and
Actual Experience 464,821 - 464,821 Contribution - Employer - 4,536,987 (4,536,987) Contribution - Employee - 943,383 (943,383) Net Investment Income - 5,374,302 (5,374,302) Administrative Expenses - (63,628) 63,628 Benefit Payments, Including Refunds of Employee Contributions (6,680,125) (6,680,125) - Net Changes 4,568,150 4,110,919 457,231 Balance at June 30, 2023 (Measurement Date) 133,828,019 $ 90,638,230 $ 43,189,789 $ Increase (Decrease)
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2023
(Measurement Date) 223,339 $ 162,697 $ 60,642 $
Changes in the Year:
Service Cost 785 - 785
Interest on the Total Pension Liability 14,108 - 14,108 Changes in Economic/Demographic (1,648) - (1,648) Changes in Assumptions (652) - (652) Contribution - Employer - 3,591 (3,591) Net Investment Income - 19,641 (19,641) Administrative Expenses - (821) 821 Benefit Payments, Including Refunds of Employee Contributions (14,373) (14,373) - Net Changes (1,780) 8,038 (9,818) Balance at June 30, 2024 (Measurement Date) 221,559 $ 170,735 $ 50,824 $
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 60,816,890 $ 43,189,789 $ 28,626,191 $ Miscellaneous
1% Decrease Current Discount 1% Increase
(5.5%) Rate (6.5%) (7.5%)
Net Pension Liability 71,911 $ 50,824 $ 33,144 $
Council
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024, the City recognized pension expense of $5,423,990 and $4,547 for the miscellaneous and council plans, respectively. At June 30, 2024, 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 4,666,971 $ - $ Differences Between Expected and Actual Experience 298,813 (706,308) Change in Assumptions 1,085,859 - Net Differences Between Projected and Actual Earnings on Plan Investments 4,080,856 - Total Miscellaneous Plan 10,132,499 $ (706,308) $ Differences Between Expected and Actual Experience - $ (732) $ Change in Assumptions - (290) Net Differences Between Projected and Actual Earnings on Plan Investments 29 - Total Council Plan 29 $ (1,022) $ An amount of $4,666,971 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, 2025. 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
2025 $ 1,265,435 $ (2,050)
2026 529,028 5,421
2027 2,854,992 (2,475)
2028 109,765 (1,889)
2029 - - Thereafter - -
Payable to the Pension Plans
At June 30, 2024, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2024.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024, the City’s payroll covered by the defined contribution plan was $2,337,162. The City made employer contributions of $87,645 (3.75% of current covered payroll), and employees contributed $87,645 (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.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(72)
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, 2023, the following current and former employees were covered by the benefit terms under the plan:
Inactive Employees or Beneficiaries
Currently Receiving Benefits 110
Inactive Employees or Beneficiaries Entitled to but
not yet Receiving Benefits 23 Active Employees 144
Total 277
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, 2024, the City’s cash contributions were $1,105,433 in cash benefit payments and $517,000 contributions to the trust, estimated implied subsidy was $137,000 and administrative expense paid by were $3,541 resulting in total contributions of $1,762,974.
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023. 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, 2024
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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, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2023
Measurement Date June 30, 2023
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 8.50% Non-Medicare/7.50% Medicare (Non-Kaiser), 6.25% Medicare (Kaiser)
Decreasing to 3.45% in 2076
Mortality Derived from CalPERS 2000-2019
Experience Study
The actuarial assumptions used in the June 30, 2023, 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, 2023, 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 %
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2022
(Measurement Date) 23,379,452 $ 6,258,145 $ 17,121,307 $ Changes in the Year:
Service Cost 458,013 - 458,013
Interest on the Total
OPEB Liability 1,452,067 - 1,452,067 Differences Between Actual and Expected Experience (113,234) - (113,234) Changes in Assumptions 1,682,592 - 1,682,592 Changes in Benefit Terms - - - Contribution - Employer - 1,777,258 (1,777,258) Net Investment Income - 404,126 (404,126) Administrative Expenses - (5,410) 5,410 Benefit Payments (1,208,807) (1,208,807) - Net Changes 2,270,631 967,167 1,303,464 Balance at June 30, 2023 (Measurement Date) 25,650,083 $ 7,225,312 $ 18,424,771 $ Increase (Decrease)
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Changes in the Net OPEB Liability (Continued)
Change of Benefit Terms
There were no changes of benefit terms.
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 21,615,357 $ 18,424,771 $ 15,761,653 $ 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 (7.50% Non-Medicare/6.50% Medicare (Non-Kaiser)/5.25 Medicare (Kaiser) decreasing to 2.45%) or one percentage point higher (9.5% Non-Medicare/8.5% Medicare (Non-Kaiser)/7.25% Medicare (Kaiser) decreasing to
4.45%) than the current healthcare cost trend rates:
Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
Net OPEB Liability 15,509,627 $ 18,424,771 $ 21,959,634 $ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense of $516,728. At June 30, 2024, 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 $ 1,762,974 $ - Differences Between Actual and Expected Experience - (3,345,822) Change in Assumptions 1,431,459 (464,117)
Net Differences Between Projected and Actual Earnings
on Plan Investments 492,048 - Total 3,686,481 $ (3,809,939) $
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
An amount of $1,762,974 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, 2025. 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
2025 (981,056) $
2026 (654,773) 2027 (372,306)
2028 (276,495)
2029 234,232 Thereafter 163,966
Payable to the OPEB Plan
At June 30, 2024, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2024.
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.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024, $2,132,000 has been accrued for general liability claims and $1,375,000 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, 2024, 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, 2024 and 2023, are as follows:
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Year Liability Estimates Payments Liability
2022-2023 $ 2,308,000 $ 233,100 $ (351,100) $ 2,190,000 2023-2024 2,190,000 2,087,946 (770,946) 3,507,000
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The City’s governmental fund balances at June 30, 2024, are tabulated below, followed by explanations as to the nature and purpose of each classification.
Housing 2018 Other Total Agency County State Capital Series A Govt. Govt. General Section 8 Grants Grants Improvement COP Funds Funds Other Continuing Appropriations Long-Term Receivables/Advances $ 27,308,140 $ - $ - $ - $ - $ - $ - $ 27,308,140 Inventories 3,825 - - - - - - 3,825
Prepaid Items 48,794 - - - - - - 48,794 Restricted for: Housing Agency - 857,534 - - - - - 857,534 State Gas Tax - - - - - - 3,043,472 3,043,472 HOME - - - - - - 2,831,172 2,831,172 CalHome Grant - - - - - - 705,599 705,599 Lighting Assessment District - - - - - - 3,088,625 3,088,625 Park Development - - - - - - 99,008 99,008
Prop A - - - - - - 4,187,624 4,187,624
Prop C - - - - - - 2,380,974 2,380,974 Measure R - - - - - - 2,984,586 2,984,586 AQMD - - - - - - 562,540 562,540 County Grants - - 61,964 - - - - 61,964
Economic Development
Assistance Grant - - - - - - 953,748 953,748
Image Enhancement - - - - - - 1,424,894 1,424,894 Reach Grants - - - - - - 914,362 914,362 Cable/PEG Support - - - - - - 320,065 320,065
Housing Agency LMIHF - - - - - - 2,798,244 2,798,244 Measure W - - - - - - 2,013,142 2,013,142 Maintenance District - - - - - - 85,496 85,496
CASp Service 55,813 - - - - - - 55,813 Pension Contribution 1,454,751 - - - - - - 1,454,751 Capital Improvements - - - - - 5,123,973 - 5,123,973 Committed to: Emergency Reserve/ Economic Stabilization/
Stimulus 29,660,398 - - - - - - 29,660,398
Assigned to:
OPEB Unfunded Liability 921,240 - - - - - - 921,240
Leave Liability 612,290 - - - - - - 612,290
Equipment Replacement 662,878 - - - - - - 662,878 Self-insured Retention 500,000 - - - - - - 500,000 Claim Liability Carrover 97,368 - - - - - - 97,368
Water Enterprise 2,300,621 - - - - - - 2,300,621
Bond Refinancing/Reserve 1,000,000 - - - - - - 1,000,000 Capital improvements 2,000,000 - - - 18,227,149 - - 20,227,149 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 2,097,663 - - - - - - 2,097,663
Other Continuing Appropriations 12,047,829 - - - - - - 12,047,829 Unassigned 1,167,302 - - (4,747,358) - - (710,520) (4,290,576) Total Fund Balances (Deficit) $ 84,938,912 $ 857,534 $ 61,964 $ (4,747,358) $ 18,227,149 $ 5,123,973 $ 27,683,031 $ 132,145,205 Projects Funds
Capital Revenue Funds Special
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, 2024
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NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS (CONTINUED) Updated Reserve Policies: Committed and Assigned Fund Balances The City Council first adopted updated comprehensive reserve policies conforming to GASB Statement 54 on June 14, 2016. Annually, as part of the budget development process, these policies are updated and approved by the City Council.
The latest version of the policies reconfirmed a commitment for “Emergency Reserve/ Economic Uncertainty Reserve” and established assignments.
Committed Fund Balances
Committed funds describe a portion of the fund balance that is constrained by limitations imposed by the City Council. The City Council imposed limitation must occur no later than the close of the reporting period (i.e., end of the fiscal year) and remains binding unless removed under the same manner. A commitment is made by City Council adoption of a resolution that states the amount and purpose of the commitment.
The City Council adopted reserve policies effective June 12, 2018, that established a commitment for emergencies/economic stabilization equal to an amount calculated as 25% of the General Fund’s annual operating revenues. On July 28, 2020, the City Council adopted revised risk-based General Fund Reserve Policies, which increased the General Fund’s commitment to emergencies/economic stabilization from 25% to 50% of the General Fund’s annual operating revenues. For the fiscal year ending June 30, 2024, this commitment is equal to $29,660,398.
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.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS (CONTINUED) Assigned Fund Balances (Continued)
Specifically, this reserve policy establishes assignments for the following short-term and long-term needs at the various levels specified:
OPEB Unfunded Liability
Leave Liability
Equipment Replacement
Self-Insured Retention
Bond Refinancing/Reserve
Capital Improvement (Unfunded/Unprogrammed)
Deferred Maintenance
Energy Efficiency
Economic Sustainability
Purchase Agreements
Other Continuing Appropriations
For the fiscal year ended June 30, 2024, the total General Fund assignments equal $25,239,888.
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, 2024, the General Fund unassigned fund balance is $1,167,302.
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024:
Major Funds:
State Grants Special Revenue Fund 4,747,358 $
Other Governmental Funds:
Community Development Block Grant Special
Revenue Fund 285,463 Measure M Special Revenue Fund 285,851 Transportation Development Act Special Revenue Fund 5,821 Federal Grants Special Revenue Fund 133,385 Major Enterprise Fund - Golf Course Fund 4,015,095
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 6,121,110 $ 6,674,337 $ (553,227) $ State Grants
Special Revenue Fund 4,809,760 6,326,652 (1,516,892) Other Governmental Funds:
Economic Sustainability
Special Revenue Fund 97,445 119,597 (22,152) Measure W
Special Revenue Fund 819,170 881,639 (62,469)
CITY OF PICO RIVERA, CALIFORNIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024 totaled $690,075.
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, 2024, the total payments made by PRIME under the take or pay contracts was $14,798,584. At June 30, 2024, the remaining take or pay contracts for PRIME is $94,222,287 through 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, 2024
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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, 2023 Additions Deletions June 30, 2024
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 (138,411) (3,533) - (141,944) Furniture and Equipment (5,110) - - (5,110) Infrastructure (22,150) (1,233) - (23,383) Total Accumulated Depreciation (165,671) (4,766) - (170,437) Total Capital Assets, Being Depreciated, Net 52,291 (4,766) - 47,525 Successor Agency Activities, Capital Assets, Net 310,314 $ (4,766) $ - $ 305,548 $
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, 2024 is $312,353.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024, the net advance balance was $18,454,287, which included accrued interest of $9,291,717 and a 25% reserve against this balance totaling $4,613,572 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, 2024, the balance of the City Deferrals including interest was $30,924,045.
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 $30,924,045 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, 2024
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NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Payable to the City of Pico Rivera (Continued)
Sales Tax Loan from the City of Pico Rivera (Continued) AB 1484 specifies the actions to be taken and the method of repayment for advances and loans between the Successor Agency, the City, and the Water Authority. Upon application and approval by the Successor Agency and the oversight board, loan agreements (advances) entered into by the former Redevelopment Agency and the City shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the advances were for legitimate redevelopment purposes.
The advances are to be repaid with a defined schedule over a reasonable term of years at an interest rate not to exceed the interest rate earned by the funds deposited into LAIF. The annual advance repayments are subject to certain limitations, including the requirement that 20% of all advance repayments are to be transferred to the Housing Agency Low and Moderate Income Housing Special Revenue Fund to fund Housing Successor Agency activity. Additionally, repayments are subject to a formula distribution and have a lower priority for repayment as described in AB 1484 (Health and Safety Code Section 34191.4(2)(A).
Management believes, in consultation with legal counsel, that the obligations of the Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency under the requirements of the Dissolution Act and AB 1484. The City’s position on this issue is not a position of settled law, and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would not be in favor of the City.
Payable to the Pico Rivera Housing Assistance Agency
Prior to dissolution, the former Redevelopment Agency had borrowed low- and moderate-income housing set-aside funds to make the payments to the Supplemental Education Revenue Augmentation Fund in accordance with the State of California mandate.
These loans are to be repaid to the Redevelopment Agency in its capacity as the Successor Agency. Total outstanding balance at June 30, 2024 was $1,883,896.
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.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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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, 2024, the net advance balance was $262,942, which includes accrued interest of $132,942 and a 25% reserve against this balance totaling $65,736 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
2025 $ 3,720,000 $ 67,874 $ 3,787,874
2026 2,635,000 19,895 2,654,895
Total 6,355,000 $ 87,769 $ 6,442,769 $
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, 2024, the balance of the County Deferral including interest was $42,075,014. There is no fixed payment schedule for the repayment of the County Deferral.
Additionally, at June 30, 2024 the Successor Agency also has a payable to the County of Los Angeles for the gross proceeds received on the sale of land totaling $168,209.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
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NOTE 16 ACCOUNTING CHANGES AND ERROR CORRECTIONS
Change in Fund Presentation from Major to Nonmajor
Effective July 1, 2023, Special Revenue Fund County Grants, Special Revenue Fund State Grants and Capital Projects Fund Capital Improvement met the criteria to be reported as a major governmental fund. For the fiscal year ended June 30, 2023, these funds were reported as nonmajor governmental funds. The Golf Course Enterprise Fund met the criteria to be reported as a major enterprise fund. For the fiscal year ended June 30, 2023, this fund was reported as a nonmajor enterprise fund. The effect of these changes within the financial reporting entity are shown in the table below.
Changes to or
June 30, 2023 Within the
As Previously Financial June 30, 2023
Presented Reporting Entity As Restated
Governmental Funds:
Major Funds:
General Fund 82,269,971 - 82,269,971 Special Revenue Housing Agency Section 8 533,105 - 533,105 Special Revenue American Rescue Plan - - - Special Revenue County Grants - (722,827) (722,827) Special Revenue State Grants - (219,451) (219,451) Capital Project Capital Improvement - 13,312,296 13,312,296 Capital Project 2018 Series A COP 5,087,499 - 5,087,499 Nonmajor Governmental Funds: 37,565,876 (12,370,018) 25,195,858 Total Governmental Funds 125,456,451 $ - $ 125,456,451 $ Proprietary Funds:
Major Funds:
Water Operations 39,755,318 - 39,755,318 Pico Rivera Innovative Municpal Energy 10,384,331 - 10,384,331 Golf Course - (3,604,402) (3,604,402) Nonmajor Enterprise Fund: (2,902,890) 3,604,402 701,512 Total Proprietary Funds 47,236,759 $ - $ 47,236,759 $ This page intentionally left blank.
REQUIRED SUPPLEMENTARY INFORMATION
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. (88)
2024 2023 2022 2021 2020
Measurement Period: June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:
Service Cost $ 1,994,117 $ 1,902,845 $ 1,825,934 $ 1,776,130 $ 1,749,749 Interest on Total Pension Liability 8,789,337 8,484,446 8,390,682 8,115,666 7,844,359 Differences Between Expected
and Actual Experience 464,821 (2,724,330) (227,395) (96,456) 2,207,380 Changes in Assumptions - 4,188,315 - - - Benefit Payments, Including Refunds of Employee Contributions (6,680,125) (6,277,953) (5,938,611) (5,747,216) (5,685,436) Net Change in Total Pension Liability 4,568,150 5,573,323 4,050,610 4,048,124 6,116,052 Total Pension Liability - Beginning of Year 129,259,869 123,686,546 119,635,936 115,587,812 109,471,760 Total Pension Liability - End of Year (a) $ 133,828,019 $ 129,259,869 $ 123,686,546 $ 119,635,936 $ 115,587,812 Plan Fiduciary Net Position:
Plan-to-Plan Resource Movement $ - $ - $ - $ - $ - Contributions - Employer 4,536,987 4,024,396 3,785,703 3,510,945 3,152,902 Contributions - Employee 943,383 758,203 773,207 824,722 817,187 Net Investment Income 5,374,302 (7,209,341) 17,874,219 3,795,360 4,813,665 Administrative Expenses (63,628) (59,361) (78,792) (107,987) (52,319) Benefit Payments (6,680,125) (6,277,953) (5,938,611) (5,747,216) (5,685,436) Net Change in Plan Fiduciary Net Position 4,110,919 (8,764,056) 16,415,726 2,275,824 3,045,999 Plan Fiduciary Net Position - Beginning of Year 86,527,311 95,291,367 78,875,641 76,599,817 73,553,818 Plan Fiduciary Net Position - End of Year (b) 90,638,230 $ 86,527,311 $ 95,291,367 $ 78,875,641 $ 76,599,817 $ Net Pension Liability - Ending (a)-(b) 43,189,789 $ 42,732,558 $ 28,395,179 $ 40,760,295 $ 38,987,995 $ Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 67.73% 66.94% 77.04% 65.93% 66.27% Covered Payroll $ 14,458,762 $ 12,290,342 $ 11,613,022 $ 11,103,243 $ 10,774,630 Net Pension Liability as Percentage of
Covered Payroll 298.71% 347.69% 244.51% 367.10% 361.85%
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%
From Fiscal Year June 30, 2023 to June 30, 2024:
There were no changes in assumptions.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
MISCELLANEOUS PLAN (CONTINUED)
LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (89)
2019 2018 2017 2016 2015
Measurement Period: June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:
Service Cost $ 1,668,403 $ 1,660,852 $ 1,410,606 $ 1,411,834 $ 1,447,138 Interest on Total Pension Liability 7,428,615 7,124,315 6,980,849 6,826,754 6,624,512 Differences Between Expected
and Actual Experience 1,411,957 (1,258,219) (1,495,731) (845,358) - Changes in Assumptions (828,380) 5,943,062 - (1,681,626) - Benefit Payments, Including Refunds of Employee Contributions (5,375,555) (4,857,602) (4,769,549) (4,686,299) (4,544,162) Net Change in Total Pension Liability 4,305,040 8,612,408 2,126,175 1,025,305 3,527,488 Total Pension Liability - Beginning of Year 105,166,720 96,554,312 94,428,137 93,402,832 89,875,344 Total Pension Liability - End of Year (a) $ 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 2,902,032 2,552,475 2,352,483 2,240,763 2,552,214 Contributions - Employee 838,924 741,941 681,785 716,687 671,298 Net Investment Income 5,870,873 7,274,632 328,225 1,459,065 10,012,754 Administrative Expenses (314,561) (94,514) (39,896) (73,643) - Benefit Payments (5,375,555) (4,857,602) (4,769,549) (4,686,299) (4,544,162) Net Change in Plan Fiduciary Net Position 3,921,542 5,616,932 (1,446,952) (343,415) 8,692,104 Plan Fiduciary Net Position - Beginning of Year 69,632,276 64,015,344 65,462,296 65,805,711 57,113,607 Plan Fiduciary Net Position - End of Year (b) 73,553,818 $ 69,632,276 $ 64,015,344 $ 65,462,296 $ $ 65,805,711 Net Pension Liability - Ending (a)-(b) 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 67.19% 66.21% 66.30% 69.32% 70.45% Covered Payroll $ 9,958,832 $ 9,605,299 $ 8,817,942 $ 8,675,393 $ 8,586,318 Net Pension Liability as Percentage of
Covered Payroll 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%
From Fiscal Year June 30, 2023 to June 30, 2024:
There were no changes in assumptions.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (90)
2024 2023 2022 2021 2020
Actuarially Determined Contribution $ 4,666,971 $ 4,587,084 $ 4,115,660 $ 3,510,945 $ 3,511,156 Contributions in Relation to the Actuarially
Determined Contributions (4,666,971) (4,587,084) (4,115,660) (3,510,945) (3,511,156) Contribution Deficiency (Excess) - $ - $ - $ - $ - $
Covered Payroll $ 15,182,721 $ 14,458,762 $ 12,290,342 $ 11,613,022 $ 11,103,243 Contributions as a Percentage of
Covered Payroll 30.74% 31.73% 33.49% 30.23% 31.62%
Notes to Schedule:
Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Methods and Assumptions Used to
Determine Contribution Rates:
Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Market Value Market Value Market Value Market Value Market Value Inflation 2.30% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 7.10% (3) 7.375% (3) 7.375% (3) 7.375% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (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.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
MISCELLANEOUS PLAN (CONTINUED)
LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (91)
2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 3,152,687 $ 2,902,032 $ 2,552,475 $ 2,352,483 $ 2,240,763 Contributions in Relation to the Actuarially
Determined Contributions (3,152,687) (2,902,032) (2,552,475) (2,352,483) (2,240,763) Contribution Deficiency (Excess) - $ - $ - $ - $ - $
Covered Payroll $ 10,774,630 $ 9,958,832 $ 9,605,299 $ 8,817,942 $ 8,675,393 Contributions as a Percentage of
Covered Payroll 29.26% 29.14% 26.57% 26.68% 25.83%
Notes to Schedule:
Valuation Date 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 Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Market Value Market Value Market Value Market Value Market Value Inflation 2.50% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.15% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (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.
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. (92)
2024 2023 2022 2021 2020
Measurement Period: June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Total Pension Liability:
Service Cost $ 785 $ 748 $ 748 $ 2,351 $ 2,283
Interest on Total Pension Liability 14,108 14,076 14,044 12,821 11,252 Differences Between Expected
and Actual Experience - - - - - Changes in Economic/Demographic (1,648) - - 22,057 22,367 Changes in Assumptions (652) - - (2,461) 2,623
Benefit Payments, Including Refunds of
Employee Contributions (14,373) (14,372) (14,214) (14,492) (14,412) Net Change in Total Pension Liability (1,780) 452 578 20,276 24,113 Total Pension Liability - Beginning of Year 223,339 222,887 222,309 202,033 177,920 Total Pension Liability - End of Year (a) 221,559 223,339 222,887 222,309 202,033 Plan Fiduciary Net Position:
Contributions - Employer 3,591 3,591 3,591 7,183 10,774 Contributions - Employee - - - - - Net Investment Income 19,641 13,057 (26,881) 42,720 3,916 Administrative Expenses (821) (803) (959) (925) (834)
Benefit Payments (14,373) (14,372) (14,214) (14,492) (14,412) Net Change in Plan Fiduciary Net Position 8,038 1,473 (38,463) 34,486 (556) Plan Fiduciary Net Position - Beginning of Year 162,697 161,224 199,687 165,201 165,757 Plan Fiduciary Net Position - End of Year (b) 170,735 162,697 161,224 199,687 165,201 Net Pension Liability - Ending (a)-(b) $ 50,824 $ 60,642 $ 61,663 $ 22,622 $ 36,832 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 77.06% 72.85% 72.33% 89.82% 81.77% Covered Payroll $ 10,655 $ 10,655 $ 10,655 $ 9,865 $ 32,924 Net Pension Liability as Percentage of
Covered Payroll 477.00% 569.14% 578.72% 229.32% 111.87%
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.
During June 30, 2024, the inflation rate changed from 2.5% to 2.3%.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
COUNCIL PLAN (CONTINUED)
LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (93)
2019 2018 2017 2016 2015
Measurement Period: June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability:
Service Cost $ 6,794 $ 6,533 $ 6,809 $ 6,547 $ 6,329
Interest on Total Pension Liability 11,243 11,848 11,642 11,117 10,751 Differences Between Expected
and Actual Experience - - - (9,032) - Changes in Economic/Demographic - (16,557) - - - Changes in Assumptions - - 8,226 7,389 - Benefit Payments, Including Refunds of Employee Contributions (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Total Pension Liability 5,638 (8,602) 16,251 5,595 6,654 Total Pension Liability - Beginning of Year 172,282 180,884 164,633 159,038 152,384 Total Pension Liability - End of Year (a) 177,920 172,282 180,884 164,633 159,038 Plan Fiduciary Net Position:
Contributions - Employer 14,227 18,648 17,266 18,647 17,957 Contributions - Employee - - - - - Net Investment Income 9,833 10,214 13,784 83 2,392 Administrative Expenses (808) (762) (655) (575) (540)
Benefit Payments (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Plan Fiduciary Net Position 10,853 17,674 19,969 7,729 9,383 Plan Fiduciary Net Position - Beginning of Year 154,904 137,230 117,261 109,532 100,149 Plan Fiduciary Net Position - End of Year (b) 165,757 154,904 137,230 117,261 109,532 Net Pension Liability - Ending (a)-(b) $ 12,163 $ 17,378 $ 43,654 $ 47,372 $ 49,506 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 93.16% 89.91% 75.87% 71.23% 68.87% Covered Payroll $ 39,460 $ 55,406 $ 57,622 $ 55,406 $ 57,622 Net Pension Liability as Percentage of
Covered Payroll 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.
During June 30, 2024, the inflation rate changed from 2.5% to 2.3%.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
COUNCIL PLAN
LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (94)
2024 2023 2022 2021 2020
Actuarially Determined Contribution $ 2,937 $ 7,715 $ 7,715 $ 7,715 $ 9,938 Contributions in Relation to the
Actuarially Determined Contributions (3,591) (3,591) (3,591) (7,183) (10,774) Contribution Deficiency (Excess) (654) $ 4,124 $ 4,124 $ 532 $ (836) $ Covered Payroll $ 10,655 $ 10,655 $ 10,655 $ 9,865 $ 32,924 Contributions as a Percentage of
Covered Payroll 33.70% 33.70% 33.70% 72.81% 32.72%
Notes to Schedule:
Valuation Date 6/30/2023 6/30/2022 6/30/2021 6/30/2019 6/30/2019 Methods and Assumptions Used to
Determine Contribution Rates:
Single Employer Plan Entry Age Entry Age Entry Age Entry Age Entry Age Normal Normal Normal Normal Normal
Amortization Method Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, 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 3-Year Fixed Asset Valuation Method Market Market Market Market Market Inflation 2.30% 2.50% 2.50% 2.50% 2.50%
Salary Increases 0.00% 0.00% 0.00% 3.00% 3.00%
Investment Rate of Return 6.50% 6.50% 6.50% 6.50% 6.50% Retirement Age 55 Years 55 Years 55 Years 55 Years 55 Years Mortality (2) (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.
(2) Pre-Retirement: Consistent with the nonindustrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS
COUNCIL PLAN (CONTINUED)
LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (95)
2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 17,226 $ 17,900 $ 18,616 $ 17,266 $ 17,957 Contributions in Relation to the
Actuarially Determined Contributions (14,227) (18,648) (17,266) (18,647) (17,957) Contribution Deficiency (Excess) 2,999 $ (748) $ 1,350 $ (1,381) $ - $ Covered Payroll $ 39,460 $ 55,406 $ 57,622 $ 55,406 $ 57,622 Contributions as a Percentage of
Covered Payroll 36.05% 33.66% 29.96% 33.66% 31.16%
Notes to Schedule:
Valuation Date 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 Normal Normal Normal Normal Normal
Amortization Method Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, Closed Period Closed Period Closed Period Closed Period Closed Period Remaining Amortization Period 5-Year Fixed 5-Year Fixed 7-Year Fixed 7-Year Fixed 9-Year Fixed Asset Valuation Method Market Market Market Market Market Inflation 2.75% 2.75% 2.75% 2.75% 3.00%
Salary Increases 4.00% 4.00% 4.00% 4.00% 4.00%
Investment Rate of Return 6.50% 6.50% 6.50% 7.00% 7.00% Retirement Age 55 Years 55 Years 55 Years 55 Years 55 Years Mortality (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.
(2) Pre-Retirement: Consistent with the nonindustrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.
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. (96)
Fiscal Year-End 2024 2023 2022 2021 2020 2019 2018
Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:
Service Cost 458,013 $ 445,755 $ 568,492 $ 585,937 $ 605,152 $ 614,912 $ 597,000 $ Interest on Total OPEB Liability 1,452,067 1,410,651 1,832,841 1,790,952 1,873,005 1,792,862 1,717,000 Differences Between Expected and Actual Experience (113,234) - (5,246,807) - (2,149,380) - - Changes in Assumptions 1,682,592 - (412,400) (495,461) (269,581) - - Benefit Payments (1,208,807) (1,203,248) (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Total OPEB Liability 2,270,631 653,158 (4,458,952) 595,702 (1,166,230) 1,211,774 1,102,000 Total OPEB Liability - Beginning of Year 23,379,452 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) 25,650,083 23,379,452 22,726,294 27,185,246 26,589,544 27,755,774 26,544,000 Plan Fiduciary Net Position:
Contributions - Employer 1,777,258 2,159,703 1,203,599 1,288,526 1,227,833 1,199,000 5,212,000 Net Investment Income 404,126 (978,822) 1,356,239 168,441 277,177 331,815 165,000 Administrative Expenses (5,410) (4,268) (4,388) (5,129) (3,369) (10,734) (1,000) Benefit Payments (1,208,807) (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 967,167 (26,635) 1,354,372 166,112 276,215 324,081 4,164,000 Plan Fiduciary Net Position - Beginning of Year 6,258,145 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 - Plan Fiduciary Net Position - End of Year (b) 7,225,312 6,258,145 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 Net OPEB Liability - Ending (a)-(b) 18,424,771 $ 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 28.17% 26.77% 27.65% 18.14% 17.92% 16.17% 15.69% Covered Payroll 14,315,004 $ 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 Payroll 128.71% 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.
From fiscal year June 30, 2023 to June 30, 2024:
Medical trend rate decreased for Non-Medicare and Medicare. * Fiscal year 2018 was the first year of implementation; therefore, only seven years are shown.
CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (97)
2024 2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution 1,776,000 $ 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 (1,762,974) (1,777,258) (2,159,703) (1,203,599) (1,288,526) (1,227,833) (1,199,000) Contribution Deficiency (Excess) 13,026 $ (11,258) $ 975,297 $ 1,861,401 $ 1,501,474 $ 1,511,167 $ 1,489,000 $ Covered Payroll 15,182,721 $ 14,315,004 $ 12,284,836 $ 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 $ Contributions as a Percentage of
Covered Payroll 11.61% 12.42% 17.58% 9.26% 10.33% 9.95% 11.62% Notes to Schedule:
Valuation Date 6/30/2023 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 2.50% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%
Medical Trend Non-Medicare- 8.5%
Decreasing to 3.45%
Medicare (Non-Kaiser)- 7.50%
Decreasing to 3.45%
Medicare (Kaiser)- 6.25%
Decreasing to 3.45%
Investment Rate of Return 6.25% 6.25% 6.25% 6.75% 6.75% 6.75% 6.75% Mortality
* Fiscal year 2018 was the first year of implementation; therefore, only seven years are shown.
Experience Study 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%
Non-Medicare - 6.5% Non-Medicare - 7.25% Non-Medicare - 7.25% Decreasing to 4.0%
Decreasing to 4.0%
CalPERS 1997-2015 CalPERS 1997-2015
Medicare - 6.3%
Decreasing to 4.0%
Medicare - 6.3%
Decreasing to 4.0%
Medicare (Kaiser) - 4.6%
CalPERS 2000-2019
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2024
See accompanying Note to Required Supplementary Information. (98)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes and Assessments 44,671,773 $ 44,671,773 $ 45,752,339 $ 1,080,566 $ Licenses and Permits 8,912,293 8,912,293 6,856,107 (2,056,186) Intergovernmental 482,000 482,000 275,062 (206,938) Charges for Services 1,440,030 1,440,030 1,394,675 (45,355) Fines, Forfeitures, and Penalties 1,307,000 1,307,000 1,213,961 (93,039) Investment and Rental 719,360 719,360 3,648,783 2,929,423 Miscellaneous 316,700 316,700 1,120,771 804,071 Total Revenues 57,849,156 57,849,156 60,261,698 2,412,542 EXPENDITURES Current:
General Government 11,678,648 12,244,526 11,410,185 834,341 Public Safety 13,964,004 14,299,669 13,366,320 933,349 Public Works 10,898,178 11,704,158 11,228,551 475,607
Parks and Recreation 7,644,904 8,024,789 6,891,330 1,133,459 Community Development 7,283,641 9,421,476 6,308,071 3,113,405 Capital Outlay 13,185 - (11,979) 25,164 Debt Service:
Principal 1,030,000 1,030,000 1,030,000 -
Interest and Fiscal Charges 888,775 888,775 888,775 - Lease Principal - - 44,016 (44,016) Lease Interest - - 4,560 (4,560) Total Expenditures 53,388,150 57,626,578 51,196,972 6,429,606 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 222,578 4,461,006 9,064,726 8,842,148 OTHER FINANCING SOURCES (USES) Transfers In 1,717,097 1,797,097 1,679,327 (117,770) Transfers Out (6,176,503) (8,177,796) (8,177,796) - Lease Proceeds - - 102,880 102,880 Loss on Sale of Capital Assets - - (196) (196) Total Other Financing Sources (Uses) (4,459,406) (6,380,699) (6,395,785) (15,086) NET CHANGE IN FUND BALANCE (6,158,121) 1,600 2,668,941 8,827,062 Fund Balance - Beginning of Year 82,269,971 82,269,971 82,269,971 - FUND BALANCE - END OF YEAR $ 76,111,850 82,271,571 $ 84,938,912 $ 8,827,062 $ Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
See accompanying Note to Required Supplementary Information. (99)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental 5,742,769 $ 5,742,769 $ 6,980,240 $ 1,237,471 $ Investment and Rental - - 500 500 Miscellaneous 29,000 29,000 18,026 (10,974) Total Revenues 5,771,769 5,771,769 6,998,766 1,226,997 EXPENDITURES Current:
Health and Welfare 6,121,110 6,121,110 6,674,337 (553,227) NET CHANGE IN FUND BALANCE (349,341) (349,341) 324,429 673,770 Fund Balance - Beginning of Year 533,105 533,105 533,105 - FUND BALANCE - END OF YEAR $ 183,764 183,764 $ 857,534 $ 673,770 $ Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
See accompanying Note to Required Supplementary Information. (100)
Variance with
Final Budget
Positive
Original Final Actual (Negative)
OTHER FINANCING SOURCES (USES)
Transfers Out - $ - $ - $ - $
Fund Balance - Beginning of Year - - - - FUND BALANCE - END OF YEAR $ - - $ - $ - $ Budgeted Amounts
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COUNTY GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
See accompanying Note to Required Supplementary Information. (101)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 10,093,531 $ 2,273,871 $ (7,819,660) $ Miscellaneous - 21,145 21,145 Total Revenues 10,093,531 2,295,016 (7,798,515) EXPENDITURES Current:
Parks and Recreation 223,259 5,907 217,352
Capital Outlay 4,537,491 1,504,318 3,033,173
Total Expenditures 4,760,750 1,510,225 3,250,525 NET CHANGE IN FUND BALANCE 5,332,781 784,791 (4,547,990) Fund Balance (Deficit) - Beginning of Year (722,827) (722,827) - FUND BALANCE - END OF YEAR $ 61,964 4,609,954 $ (4,547,990) $
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
STATE GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
See accompanying Note to Required Supplementary Information. (102)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 29,584,764 $ 1,742,200 $ (27,842,564) $ Investment and Rental 2,200 56,545 54,345 Total Revenues 29,586,964 1,798,745 (27,788,219)
EXPENDITURES
Current:
Health and Welfare 1,389,683 698,034 691,649 Capital Outlay 3,420,077 5,628,618 (2,208,541) Total Expenditures 4,809,760 6,326,652 (1,516,892)
NET CHANGE IN FUND BALANCE (4,527,907) 28,197,281 32,725,188 Fund Balance (Deficit)- Beginning of Year (219,451) (219,451) - FUND BALANCE (DEFICIT) - END OF YEAR $ (4,747,358) 27,977,830 $ (32,725,188) $
CITY OF PICO RIVERA, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT CAPITAL PROJECT FUND
YEAR ENDED JUNE 30, 2024
See accompanying Note to Required Supplementary Information. (103)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
EXPENDITURES
Current:
Capital Outlay 4,330,413 $ 2,510,616 $ 1,819,797 $
OTHER FINANCING SOURCES (USES)
Transfers in 2,313,966 7,425,469 (5,111,503) Total Other Financing Sources (Uses) 2,313,966 7,425,469 (5,111,503)
NET CHANGE IN FUND BALANCE (2,016,447) 4,914,853 6,931,300 Fund Balance - Beginning of Year 13,312,296 13,312,296 - FUND BALANCE - END OF YEAR $ 18,227,149 11,295,849 $ 6,931,300 $
CITY OF PICO RIVERA, CALIFORNIA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
(104)
NOTE 1 BUDGETARY CONTROL AND ACCOUNTING
The City of Pico Rivera (the City) adopts annual budgets for governmental funds on a basis that is the same as accounting principles generally accepted in the United States of America.
The City’s budget is a detailed operating plan, which identifies estimated costs and results in relation to estimated revenues. The budget includes (1) the programs, projects, services, and activities to be provided during the fiscal year; (2) the estimated resources (inflows) and amounts available for appropriation; and (3) the estimated charges to appropriations. The budget represents a process through which policy decisions are made, implemented, and controlled.
The following procedures establish the budgetary data reflected in the financial statements:
The budget is prepared under the City Manager’s direction and adopted by the City Council, generally prior to June 30 of each year. It is revised periodically during the year by the City Council. The budget presented in the financial statements includes the original and final amounts. The budget serves as a policy document for the deliverance of public services; however, expenditures are individually approved by the City Council. The City Manager is authorized to transfer amounts within individual fund budgets without the approval of City Council. Additional appropriations during the year may be submitted to the City Council for review and approval.
Budget information is presented for the governmental fund types. There were no budgeted appropriations for the Housing Agency Low and Moderate Income Housing Special Revenue Fund, which is used to account for all successor agency housing activities; the Park Development Special Revenue Fund, which accounts for funds received on new residential construction for the purpose of improving and/or developing the City’s park system; the 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; and the Measure A special revenue fund which accounts for Measure A activities. 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
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS
JUNE 30, 2024
(105)
SPECIAL REVENUE FUNDS
Special Revenue Funds account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes. Special Revenue Funds include the following:
Community Development Block Grant Fund accounts for funds received from the U.S. Department of Housing and Urban Development for the purpose of Housing Rehabilitation, Social Services, and qualified capital improvements.
State Gas Tax Fund accounts for the City’s proportionate share of gas tax monies collected by the state of California, which are used for street construction and maintenance.
Light Assessment District Fund accounts for monies received for lighting services deemed to benefit the properties and businesses against which the special benefit assessments are levied. The assessments are levied once a year and are collected by the Los Angeles County Tax Collector, and remitted to the City.
Park Development Fund accounts for funds received on new residential construction for the purpose of improving and/or developing the City’s park system.
Prop A Fund accounts for the ½% sales tax approved by Prop A in Los Angeles County, which is restricted for transportation programs and projects.
Prop C Fund accounts for the ½% sales tax approved by Prop C, which is restricted for transportation programs and projects.
Measure R Fund accounts for monies received and expenditures relative to Measure R projects.
Measure M Fund accounts for monies received and expenditures relative to Measure M projects.
Measure A Fund accounts for monies received and expenditures relative to Measure A projects.
HOME Grant Fund accounts for funds received from the U.S. Department of Housing and Urban Development for the purpose of housing loans and rehabilitation.
CalHOME Grant Fund accounts for funds received from the state of California for the purpose of providing home rehabilitation loans.
Air Quality Improvement Fund accounts for the additional vehicle registration fees received from the Southern California Air Quality Management District for the purpose of air pollution reduction.
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2024
(106)
SPECIAL REVENUE FUNDS (CONTINUED)
Economic Sustainability Fund accounts for funds received from the companies developing the Pico Rivera Towne Center under the terms of the improvement and reimbursement agreements with the Redevelopment Agency.
Image Enhancement Fund accounts for funds received from all developers for the enhancement of the image of the City of Pico Rivera.
Sewer Maintenance Fund accounts for direct assessments on property for annual and long-term maintenance of the sewer system.
Reach Grants Fund accounts for funds received from the state of California for the after-school learning program.
Cable/PEG Support Fund accounts for fees received that are restricted to upgrades to the City’s cable system.
Transportation Development Act Fund accounts for funds received from the state of California Department of Transportation for the development and support of public transportation needs.
Housing Agency Low and Moderate Income Housing Fund (LMIHF) accounts for assets received from dissolution of the former Pico Rivera Redevelopment Agency dedicated to low- and moderateincome housing activities pursuant to the California Health and Safety Code.
Measure W accounts for the revenues and expenditures provided to the city by the Los Angeles County Measure W Safe Clean Water Program. The revenues are a parcel tax to be utilized to increase the local water supply, improve water quality, and invest in making the City of Pico Rivera greener or more livable.
Federal Grants Fund accounts for the various federal grants that are restricted to expenditures for specific programs and projects.
CAPITAL PROJECTS FUNDS
Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities. Capital Projects Funds include the following:
Paramount/Mines Landscape Maintenance Assessment Fund accounts for funds received for the installation and maintenance of common areas deemed to benefit the properties against which the special benefit assessments are levied.
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
(107)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
ASSETS
Cash and Investments - $ 3,021,869 $ 3,092,882 $ 98,479 $ Restricted Cash and Investments
Accounts Receivable 373,326 - - - Taxes Receivable - 424,533 44,263 - Interest Receivable - 16,311 16,707 529 Long-Term Receivables 176,409 - - - Prepaid Items - - - - Receivables from Successor Agency - - - - Total Assets 549,735 $ 3,462,713 $ 3,153,852 $ 99,008 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 336,851 $ 395,426 $ 50,543 $ - $
Accrued Liabilities - 3,003 14,684 - Retention Payable 24,814 20,812 - - Due to Other Funds 31,920 - - - Due to Other Agencies 176,409 - - - Total Liabilities 569,994 419,241 65,227 - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue 265,204 - - - FUND BALANCES (DEFICITS) Restricted - 3,043,472 3,088,625 99,008 Unassigned (285,463) - - - Total Fund Balances (Deficits) (285,463) 3,043,472 3,088,625 99,008 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 549,735 $ 3,462,713 $ 3,153,852 $ 99,008 $ Special Revenue Funds
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2024
(108)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ 2,575,875 4,262,738 $ 2,969,957 $ - $ - $ 2,819,309 $ 705,599 $ 8,611 26,701 282,412 1,656,950 - - -
106,148 - 100,366 - - - -
14,220 23,036 16,862 194 - 11,863 -
- - - - - 2,542,128 1,101,034
- - - 90,524 - - -
- - - - - - - $ 2,704,854 4,312,475 $ 3,369,597 $ 1,747,668 $ - $ 5,373,300 $ 1,806,633 $ $ 294,319 115,243 $ 107,296 $ 179,405 $ - $ - $ - $
3,077 8,266 1,586 1,341 - - -
17,873 1,342 3,038 87,672 - - -
- - - 1,059,717 - - -
- - - - - 2,542,128 1,101,034
315,269 124,851 111,920 1,328,135 - 2,542,128 1,101,034 8,611 - 273,091 705,384 - - -
2,380,974 4,187,624 2,984,586 - - 2,831,172 705,599
- - - (285,851) - - -
2,380,974 4,187,624 2,984,586 (285,851) - 2,831,172 705,599 $ 2,704,854 4,312,475 $ 3,369,597 $ 1,747,668 $ - $ 5,373,300 $ 1,806,633 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2024
(109)
Air
Quality Economic Image Sewer Reach
Improvement Sustainability Enhancement Maintenance Grants ASSETS
Cash and Investments 560,533 $ 953,458 $ 1,437,209 $ - $ 965,320 $ Restricted Cash and Investments
Accounts Receivable - - - - - Taxes Receivable - - - - - Interest Receivable 3,000 5,181 7,685 - 3,319 Long-Term Receivables - - - - - Prepaid Items - - - - - Receivables from Successor Agency - - - - - Total Assets 563,533 $ 958,639 $ 1,444,894 $ - $ 968,639 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable 993 $ 4,891 $ 20,000 $ - $ 48,442 $
Accrued Liabilities - - - - 5,835 Retention Payable - - - - - Due to Other Funds - - - - - Due to Other Agencies - - - - - Total Liabilities 993 4,891 20,000 - 54,277 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - - - FUND BALANCES (DEFICITS)
Restricted 562,540 953,748 1,424,894 - 914,362 Unassigned - - - - - Total Fund Balances (Deficits) 562,540 953,748 1,424,894 - 914,362 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 563,533 $ 958,639 $ 1,444,894 $ - $ 968,639 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2024
(110)
Total
Transportation Housing Special
Cable/PEG Development Agency Measure Federal Revenue
Support Act LMIHF W Grants Funds
$ - 305,384 $ 907,526 $ 2,090,790 $ - $ 26,766,928 $
30,224 - - - 542,900 2,921,124
- 14,681 - - - 689,991
- - 6,822 11,910 - 137,639
- - - - - 3,819,571
- - - - - 90,524
- - 1,883,896 - - 1,883,896 $ 30,224 320,065 $ 2,798,244 $ 2,102,700 $ 542,900 $ 36,309,673 $ $ 1,813 - $ - $ 60,338 $ 152,088 $ 1,767,648
422 - - - - 38,214
- - - 29,220 - 184,771
3,588 - - - 358,723 1,453,948
- - - - - 3,819,571
5,823 - - 89,558 510,811 7,264,152
30,222 - - - 165,474 1,447,986
- 320,065 2,798,244 2,013,142 - 28,308,055
(5,821) - - - (133,385) (710,520)
(5,821) 320,065 2,798,244 2,013,142 (133,385) 27,597,535 $ 30,224 320,065 $ 2,798,244 $ 2,102,700 $ 542,900 $ 36,309,673 $ Special Revenue Funds (Continued)
CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2024
(111)
Capital Projects Fund
Paramount/Mines Total
Landscape Other
Maintenance Governmental
Assessment Funds
ASSETS
Cash and Investments 85,042 $ 26,851,970 $
Restricted Cash and Investments
Accounts Receivable - 2,921,124 Taxes Receivable - 689,991 Interest Receivable 454 138,093
Long-Term Receivables - 3,819,571 Prepaid Items - 90,524 Receivables from Successor Agency - 1,883,896 Total Assets 85,496 $ 36,395,169 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable - $ 1,767,648 Accrued Liabilities - 38,214 Retention Payable - 184,771 Due to Other Funds - 1,453,948 Due to Other Agencies - 3,819,571 Total Liabilities - 7,264,152
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 1,447,986
FUND BALANCES (DEFICITS)
Restricted 85,496 28,393,551 Unassigned - (710,520) Total Fund Balances (Deficits) 85,496 27,683,031 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 85,496 $ 36,395,169 $
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CITY OF PICO RIVERA, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2024
(112)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
REVENUES
Taxes and Assessments - $ - $ 2,104,694 $ - $
Intergovernmental 649,205 3,283,174 - - Charges for Services - - - 90,000 Investment and Rental - 140,722 121,140 4,570 Miscellaneous - - - - Total Revenues 649,205 3,423,896 2,225,834 94,570 EXPENDITURES Current:
General Government - - - - Public Works - 71,634 1,013,167 - Parks and Recreation - - - - Community Development - - - - Capital Outlay 778,131 1,793,418 - - Total Expenditures 778,131 1,865,052 1,013,167 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,558,844 (128,926) 1,212,667 94,570 OTHER FINANCING SOURCES (USES) Transfers In - - - - Transfers Out - (1,679,327) (530,000) - Total Other Financing Sources (Uses) - (1,679,327) (530,000) - NET CHANGE IN FUND BALANCES (120,483) (128,926) 682,667 94,570 Fund Balances (Deficits) - Beginning of Year, as previously presented (156,537) 3,163,955 2,405,958 4,438 Change within financial reporting entity (nonmajor to major) - - - - Fund Balances (Deficits) - Beginning of Year, as Restated (156,537) 3,163,955 2,405,958 4,438 FUND BALANCES (DEFICITS) - END OF YEAR $ 3,043,472 (285,463) $ 3,088,625 $ 99,008 $ 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, 2024
(113)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ - - $ - $ - $ - $ - $ - $
1,407,689 1,629,219 1,972,841 2,132,818 - - -
- - - - - - -
142,489 207,801 137,974 23,518 - 131,725 -
- 28,097 - - - 28,456 1,096
1,550,178 1,865,117 2,110,815 2,156,336 - 160,181 1,096 - - - - 1 - -
194,900 1,382,538 101,550 47,197 - - -
- - - - - - -
- - - - - - -
1,530,078 - 739,898 2,051,376 - - -
1,724,978 1,382,538 841,448 2,098,573 1 - -
(174,800) 482,579 1,269,367 57,763 (1) 160,181 1,096
- - - - - - -
- - - (836,669) - - -
- - - (836,669) - - -
(174,800) 482,579 1,269,367 (778,906) (1) 160,181 1,096 2,555,774 3,705,045 1,715,219 493,055 1 2,670,991 704,503 - - - - - - -
2,555,774 3,705,045 1,715,219 493,055 1 2,670,991 704,503 $ 2,380,974 4,187,624 $ 2,984,586 $ (285,851) $ - $ 2,831,172 $ 705,599 $ 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, 2024
(114)
Air
Quality County State
Improvement Grants Grants
REVENUES
Taxes and Assessments - $ - $ - $
Intergovernmental 74,713 - - Charges for Services - - - Investment and Rental 27,351 - - Miscellaneous - - - Total Revenues 102,064 - - EXPENDITURES Current:
General Government - - - Public Works 43,579 - - Parks and Recreation - - - Community Development - - - Capital Outlay - - - Total Expenditures 43,579 - - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - 58,485 - OTHER FINANCING SOURCES (USES) Transfers In - - - Transfers Out - - - Total Other Financing Sources (Uses) - - - NET CHANGE IN FUND BALANCES - 58,485 - Fund Balances (Deficits) - Beginning of Year as previously presented 504,055 (722,827) (219,451) Change within financial reporting entity (nonmajor to major) - 722,827 219,451 Fund Balances (Deficits) - Beginning of Year,
as Restated 504,055 - - FUND BALANCES (DEFICITS) - END OF YEAR $ - 562,540 $ - $ 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, 2024
(115)
Transportation Housing
Economic Image Sewer Reach Cable/PEG Development Agency Sustainability Enhancement Maintenance Grants Support Act LMIHF $ - - $ - $ 5,453 $ - $ - $ - $
- - - 1,118,461 - 41,664 -
161,977 - - - - - -
70,668 94,072 - 28,279 - - 64,372
- - - - 76,802 - 7,164
232,645 94,072 - 1,152,193 76,802 41,664 71,536
165,031 - - - - - -
- - - - 9,599 42,924 -
- - - 1,115,570 - - -
- 119,597 - - - - -
- - - - - - -
165,031 119,597 - 1,115,570 9,599 42,924 -
67,614 (25,525) - 36,623 67,203 (1,260) 71,536
- - 20,380 - - - -
- - - - - - -
- - 20,380 - - - -
67,614 (25,525) 20,380 36,623 67,203 (1,260) 71,536
1,357,280 979,273 (20,380) 877,739 252,862 (4,561) 2,726,708 - - - - - - -
1,357,280 979,273 (20,380) 877,739 252,862 (4,561) 2,726,708 $ 1,424,894 953,748 $ - $ 914,362 $ 320,065 $ (5,821) $ 2,798,244 $ 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, 2024
(116)
Total
Special
Measure Federal Revenue
W Grants Funds
REVENUES
Taxes and Assessments - $ - $ 2,110,147 $
Intergovernmental 894,003 1,235,679 14,439,466 Charges for Services - - 251,977 Investment and Rental 104,091 - 1,298,772 Miscellaneous - - 141,615 Total Revenues 998,094 1,235,679 18,241,977 EXPENDITURES Current:
General Government - - 165,032 Public Works 286,442 69,909 3,263,439 Parks and Recreation - - 1,115,570 Community Development - - 119,597 Capital Outlay 595,197 731,784 8,219,882 Total Expenditures 881,639 801,693 12,883,520 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 433,986 116,455 5,358,457 OTHER FINANCING SOURCES (USES) Transfers In - 138,793 159,173 Transfers Out - - (3,045,996) Total Other Financing Sources (Uses) - 138,793 (2,886,823)
NET CHANGE IN FUND BALANCES 572,779 116,455 2,471,634 Fund Balances (Deficits) - Beginning of Year as previously presented 1,896,687 (706,164) 24,183,623 Change within financial reporting entity (nonmajor to major) - - 942,278 Fund Balances (Deficits) - Beginning of Year, as Restated 1,896,687 (706,164) 25,125,901 FUND BALANCES (DEFICITS) - END OF YEAR $ (133,385) 2,013,142 $ 27,597,535 $ 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, 2024
(117)
Capital Projects Fund
Paramount/Mines Total Total
Landscape Capital Other
Capital Maintenance Projects Governmental
Improvement Assessment Funds Funds
$ 11,657 - $ 11,657 $ 2,121,804 $
- - - 14,439,466
- - - 251,977
3,882 - 3,882 1,302,654
- - - 141,615
15,539 - 15,539 18,257,516
- - - 165,032
- - - 3,263,439
- - - 1,115,570
- - - 119,597
- - - 8,219,882
- - - 12,883,520
15,539 - 15,539 5,373,996
- - - 159,173
- - - (3,045,996)
- - - (2,886,823)
15,539 - 15,539 2,487,173 13,312,296 $69,957 13,382,253 37,565,876 (13,312,296) - (13,312,296) (12,370,018) 69,957 - 69,957 25,195,858 $ 85,496 - $ 85,496 $ 27,683,031 $
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, 2024
(118)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 738,790 $ 649,205 $ (89,585) $
Total Revenues 738,790 649,205 (89,585) EXPENDITURES
Capital Outlay 891,497 778,131 113,366 Total Expenditures 891,497 778,131 113,366
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (128,926) (152,707) 23,781 Fund Balance (Deficit) - Beginning of Year (156,537) (156,537) - FUND BALANCE (DEFICIT) - END OF YEAR $ (285,463) (309,244) $ (23,781) $
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, 2024
(119)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 3,293,461 $ 3,283,174 $ (10,287) $
Investment and Rental - 140,722 140,722 Total Revenues 3,293,461 3,423,896 130,435
EXPENDITURES
Current:
Public Works 313,154 71,634 241,520 Capital Outlay: 3,465,194 1,671,776 1,793,418 Total Expenditures 3,778,348 1,865,052 1,913,296
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (484,887) 1,558,844 2,043,731
OTHER FINANCING USES
Transfers Out (1,757,098) (1,679,327) 77,771 NET CHANGE IN FUND BALANCE (120,483) (2,241,985) 2,121,502 Fund Balance - Beginning of Year 3,163,955 3,163,955 - FUND BALANCE - END OF YEAR $ 3,043,472 921,970 $ 2,121,502 $
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, 2024
(120)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 1,833,428 $ 2,104,694 $ 271,266 $ Investment and Rental 31,040 121,140 90,100
Total Revenues 1,864,468 2,225,834 361,366 EXPENDITURES Current:
Public Works 1,127,594 1,013,167 114,427 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,212,667 736,874 475,793 OTHER FINANCING SOURCES (USES) Transfers Out (530,000) (530,000) - NET CHANGE IN FUND BALANCE 682,667 206,874 475,793 Fund Balance - Beginning of Year 2,405,958 2,405,958 - FUND BALANCE - END OF YEAR $ 3,088,625 2,612,832 $ 475,793 $
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, 2024
(121)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 1,775,740 $ 1,629,219 $ (146,521) $
Investment and Rental 71,530 207,801 136,271 Miscellaneous - 28,097 28,097 Total Revenues 1,847,270 1,865,117 17,847
EXPENDITURES
Current:
Public Works 1,971,023 1,382,538 588,485 NET CHANGE IN FUND BALANCE 482,579 (123,753) 606,332 Fund Balance - Beginning of Year 3,705,045 3,705,045 - FUND BALANCE - END OF YEAR $ 4,187,624 3,581,292 $ 606,332 $
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, 2024
(122)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 3,695,488 $ 1,407,689 $ (2,287,799) $ Investment and Rental 70,820 142,489 71,669
Total Revenues 3,766,308 1,550,178 (2,216,130) EXPENDITURES Current:
Public Works 115,000 194,900 (79,900) Capital Outlay: 2,134,731 1,530,078 604,653 Total Expenditures 2,249,731 1,724,978 524,753 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (174,800) 1,516,577 (1,691,377) Fund Balance - Beginning of Year 2,555,774 2,555,774 - FUND BALANCE - END OF YEAR $ 2,380,974 4,072,351 $ (1,691,377) $
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, 2024
(123)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 2,167,409 $ 1,972,841 $ (194,568) $
Investment and Rental 43,390 137,974 94,584
Total Revenues 2,210,799 2,110,815 (99,984)
EXPENDITURES
Current:
Public Works 162,317 101,550 60,767 Capital Outlay 1,451,250 739,898 711,352 Total Expenditures 1,613,567 841,448 772,119 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,269,367 597,232 672,135 Fund Balance - Beginning of Year 1,715,219 1,715,219 - FUND BALANCE - END OF YEAR $ 2,984,586 2,312,451 $ 672,135 $
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, 2024
(124)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 4,476,757 $ 2,132,818 $ (2,343,939) $ Investment and Rental 18,190 23,518 5,328 Total Revenues 4,494,947 2,156,336 (2,338,611) EXPENDITURES Current:
Public Works 91,584 47,197 44,387 Capital Outlay 2,082,687 2,051,376 31,311 Total Expenditures 2,174,271 2,098,573 75,698
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,320,676 57,763 (2,262,913)
OTHER FINANCING USES
Transfers Out (831,669) (836,669) 5,000 NET CHANGE IN FUND BALANCE (778,906) 1,489,007 (2,267,913) Fund Balance - Beginning of Year 493,055 493,055 - FUND BALANCE (DEFICIT) - END OF YEAR $ (285,851) 1,982,062 $ (2,267,913) $
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, 2024
(125)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Investment and Rental - $ 131,725 $ 131,725 $
Miscellaneous 9,000 28,456 19,456 Total Revenues 9,000 160,181 151,181 Fund Balance - Beginning of Year 2,670,991 2,670,991 - FUND BALANCE - END OF YEAR $ 2,831,172 2,679,991 $ 151,181 $
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, 2024
(126)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Miscellaneous - $ 1,096 $ 1,096 $
Fund Balance - Beginning of Year 704,503 704,503 - FUND BALANCE - END OF YEAR $ 705,599 704,503 $ 1,096 $
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, 2024
(127)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 81,000 $ 74,713 $ (6,287) $
Investment and Rental 9,030 27,351 18,321 Total Revenues 90,030 102,064 (12,034)
EXPENDITURES
Current:
Public Works 168,099 43,579 124,520 NET CHANGE IN FUND BALANCE 58,485 (78,069) 136,554 Fund Balance - Beginning of Year 504,055 504,055 - FUND BALANCE - END OF YEAR $ 562,540 425,986 $ 136,554 $
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, 2024
(128)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Investment and Rental 18,630 $ 94,072 $ 75,442 $
EXPENDITURES
Current:
Community Development 97,445 119,597 (22,152) NET CHANGE IN FUND BALANCE (25,525) (78,815) 53,290 Fund Balance - Beginning of Year 979,273 979,273 - FUND BALANCE - END OF YEAR $ 953,748 900,458 $ 53,290 $
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, 2024
(129)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Charges for Services 150,000 $ 161,977 $ 11,977 $
Investment and Rental 12,500 70,668 58,168 Total Revenues 162,500 232,645 70,145
EXPENDITURES
Current:
General Government 599,063 165,031 434,032 NET CHANGE IN FUND BALANCE 67,614 (436,563) 504,177 Fund Balance - Beginning of Year 1,357,280 1,357,280 - FUND BALANCE - END OF YEAR $ 1,424,894 920,717 $ 504,177 $
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, 2024
(130)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
EXPENDITURES
Current:
General Government 30,104 $ - $ 30,104 $
Total Expenditures 30,104 - 30,104
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (30,104) - 30,104
OTHER FINANCING USES
Transfers In 20,380 20,380 - NET CHANGE IN FUND BALANCE 20,380 (9,724) 30,104 Fund Balance (Deficit) - Beginning of Year (20,380) (20,380) - FUND BALANCE - END OF YEAR $ - (30,104) $ 30,104 $
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, 2024
(131)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments 19,000 $ 5,453 $ (13,547) $
Intergovernmental 1,238,234 1,118,461 (119,773)
Investment and Rental 8,680 28,279 19,599 Total Revenues 1,265,914 1,152,193 (113,721) EXPENDITURES Current:
Parks and Recreation 1,283,822 1,115,570 168,252 NET CHANGE IN FUND BALANCE 36,623 (17,908) 54,531 Fund Balance - Beginning of Year 877,739 877,739 - FUND BALANCE - END OF YEAR $ 914,362 859,831 $ 54,531 $
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, 2024
(132)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Miscellaneous - $ 76,802 $ 76,802 $
EXPENDITURES
Current:
Public Works 37,355 9,599 27,756 Capital Outlay 180,616 - 180,616 Total Expenditures 217,971 9,599 208,372
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 67,203 (217,971) 285,174 Fund Balance - Beginning of Year 252,862 252,862 - FUND BALANCE - END OF YEAR $ 320,065 34,891 $ 285,174 $
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, 2024
(133)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 71,888 $ 41,664 $ (30,224) $
EXPENDITURES
Current:
Public Works 47,922 42,924 4,998 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,260) 23,966 (25,226) Fund Balance (Deficit) - Beginning of Year (4,561) (4,561) - FUND BALANCE (DEFICIT) - END OF YEAR $ (5,821) 19,405 $ 25,226 $
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, 2024
(134)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental 954,810 $ 894,003 $ (60,807) $
Investment and Rental - 104,091 104,091 Total Revenues 954,810 998,094 43,284
EXPENDITURES
Current:
Public Works 280,000 286,442 (6,442) Capital Outlay: 539,170 595,197 (56,027) Total Expenditures 819,170 881,639 (62,469) NET CHANGE IN FUND BALANCE 116,455 135,640 (19,185) Fund Balance - Beginning of Year 1,896,687 1,896,687 - FUND BALANCE - END OF YEAR $ 2,013,142 2,032,327 $ (19,185) $
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, 2024
(135)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Intergovernmental $ 17,778,762 $ 1,235,679 $ (16,543,083)
EXPENDITURES
Current:
Public Works - 69,909 (69,909)
Capital outlay 3,469,719 731,784 2,737,935
Total Expenditures 3,469,719 801,693 2,668,026
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 14,309,043 433,986 (13,875,057)
OTHER FINANCING SOURCES (USES)
Transfers in 138,793 138,793 - Total Other Financing
Sources (Uses) 138,793 138,793 - NET CHANGE IN FUND BALANCE 14,447,836 572,779 13,875,057 Fund Balance (Deficit) - Beginning of Year (706,164) (706,164) - FUND BALANCE (DEFICIT) - END OF YEAR $ 13,741,672 $ (133,385) $ (13,875,057)
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, 2024
(136)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)
REVENUES
Taxes and Assessments - $ 11,657 $ 11,657 $
Investment and Rental 1,200 3,882 2,682 Total Revenues 1,200 15,539 14,339 Fund Balance - Beginning of Year 69,957 69,957 - FUND BALANCE - END OF YEAR $ 85,496 71,157 $ 14,339 $
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF NONMAJOR ENTERPRISE FUND
JUNE 30, 2024
(137)
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.
CITY OF PICO RIVERA, CALIFORNIA
NONMAJOR ENTERPRISE FUND
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
(138)
Sports Total NonMajor
Arena Enterprise Fund
ASSETS
Current Assets:
Cash and Investments 912,334 $ 912,334 $
Receivables, Net:
Interest 5,080 5,080 Total Current Assets 917,414 917,414 Noncurrent Assets:
Capital Assets, Not Depreciated 3,368 3,368 Capital Assets, Depreciated, Net 2,722 2,722 Total Noncurrent Assets 6,090 6,090
Total Assets 923,504 923,504 DEFERRED OUTFLOWS OF RESOURCES Amount Related to Pensions 18,238 18,238 LIABILITIES
Current Liabilities:
Accounts Payable 28,000 28,000 Accrued Liabilities 3,929 3,929 Total Current Liabilities 31,929 31,929 Noncurrent Liabilities:
Net Pension Liability 77,742 77,742
Total Noncurrent Liabilities 77,742 77,742
Total Liabilities 109,671 109,671 DEFERRED INFLOWS OF RESOURCES Amounts Related to Pensions 1,271 1,271 NET POSITION
Net Investment in Capital Assets 6,090 6,090
Unrestricted 824,710 824,710 Total Net Position (Deficit) 830,800 $ 830,800 $
CITY OF PICO RIVERA, CALIFORNIA
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2024
(139)
Sports Golf Total NonMajor
Arena Course Enterprise Fund
OPERATING REVENUES
Charges for Services 322,479 $ - $ 322,479 $
Total Operating Revenues 322,479 - 322,479 OPERATING EXPENSES Salaries and Benefits 80,027 - 80,027 Contractual Services 142,000 - 142,000 Insurance Claims and Expenses 2,119 - 2,119 Administrative 10,714 - 10,714 Depreciation 1,639 - 1,639 Total Operating Expenses 236,499 - 236,499 OPERATING GAIN 85,980 - 85,980
NONOPERATING REVENUES
Investment Income 43,308 - 43,308 CHANGE IN NET POSITION 129,288 - 129,288 Net Position (Deficit) - Beginning of Year,
as previously presented 701,512 (3,604,402) (2,902,890) Change within financial reporting entity (nonmajor to major fund) - 3,604,402 3,604,402 Net Position (Deficit) - Beginning of Year, as Restated 701,512 - 701,512 NET POSITION - END OF YEAR $ - 830,800 $ 830,800 $ This page intentionally left blank.
STATISTICAL SECTION
(UNAUDITED)
This page intentionally left blank.
CITY OF PICO RIVERA, CALIFORNIA
DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2024
(140)
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. 141-150
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. 151-158 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. 159-164 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. 165-166 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. 167-171
CITY OF PICO RIVERA, CALIFORNIA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(141)
2014-15 2015-16 2016-17 2017-18
Governmental Activities:
Net investment in capital assets 224,650,021 $ 231,562,736 $ 223,976,465 $ 230,499,724 $ Restricted 14,236,953 11,854,987 13,274,422 16,360,144 Unrestricted 22,142,254 23,639,282 25,960,550 18,735,128 Total governmental activities net position 261,029,228 267,057,005 263,211,437 265,594,996 Business-type Activities:
Invested in Capital Assets, net of related debt Net investment in capital assets 31,370,373 31,761,672 32,604,651 33,236,723 Restricted Restricted - - - -
Unrestricted Unrestricted (18,465,237) (16,385,687) (13,590,642) (13,570,480) Total business-type activities net position 12,905,136 15,375,985 19,014,009 19,666,243 Primary Government:
Restricted Net investment in capital assets 256,020,394 263,324,408 256,581,116 263,736,447 Restricted Restricted 14,236,953 11,854,987 13,274,422 16,360,144 Unrestricted Unrestricted 3,677,017 7,253,595 12,369,908 5,164,648 Total primary government net position $ 273,934,364 $ 282,432,990 $ 282,225,446 $ 285,261,239 Source: Statement of Net Position
CITY OF PICO RIVERA, CALIFORNIA
NET POSITION BY COMPONENT (CONTINUED)
LAST TEN FISCAL YEARS
(142)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 235,399,358 232,291,558 $ 234,764,478 $ 237,260,527 $ 244,677,341 $ 257,453,378 $ 22,661,392 19,565,580 23,672,803 27,978,094 31,184,653 32,103,004 15,000,619 17,860,702 23,195,137 38,557,279 51,605,739 61,320,902 273,061,369 269,717,840 281,632,418 303,795,900 327,467,733 350,877,284 34,129,206 33,680,356 36,403,397 40,280,888 50,610,138 54,496,158 - - - - - -
(3,505,373) (10,315,352) (4,457,768) (4,543,616) (3,373,379) 5,281,584 30,623,833 23,365,004 31,945,629 35,737,272 47,236,759 59,777,742 269,528,564 265,971,914 271,167,875 277,541,415 295,287,479 311,949,536 22,661,392 19,565,580 23,672,803 27,978,094 31,184,653 32,103,004 11,495,246 7,545,350 18,737,369 34,013,663 48,232,360 66,602,486 $ 293,082,844 $ 303,685,202 $ 313,578,047 $ 339,533,172 $ 374,704,492 $ 410,655,026
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(143)
2014-15 2015-16 2016-17 2017-18
Expenses:
Governmental Activities:
General government General government 9,248,597 $ 8,790,816 $ 10,048,704 $ 8,190,494 $ Leisure Public safety 10,457,770 10,468,357 12,330,023 11,885,957 Transportation Public works 14,545,183 14,472,969 15,104,130 12,488,922 Public Protection Parks and recreation 5,600,669 5,585,521 6,263,237 7,146,278 Development Health and welfare 4,840,878 5,266,352 5,587,157 5,311,548 Environmental Community development 2,761,524 2,827,231 2,540,908 4,407,647 Interest Interest and fiscal charges 1,656,613 1,626,960 2,628,006 1,013,498 Total governmental activities net expenses 49,111,234 49,038,206 54,502,165 50,444,344 Business-type Activities:
Water 8,044,302 7,865,853 8,155,205 8,382,375 Pico Rivera Innovative Municipal Energy - - - 4,900,927 Water Other enterprise funds 1,320,585 1,624,391 1,622,319 2,270,317 Total business-type activities net expenses 9,364,887 9,490,244 9,777,524 15,553,619 Program Revenues:
Governmental Activities:
Charges for services:
General government 574,846 $ 606,726 $ 739,432 $ 493,265 $ Public safety 1,125,660 1,022,464 962,627 1,044,921 Public works 1,821,210 1,788,821 786,053 801,487 Parks and recreation 743,400 578,529 773,631 791,906 Health and welfare 232,824 202,262 174,314 198,238
Community development 644,344 746,395 873,536 1,196,287 Operating contributions and grants 12,236,612 12,817,403 11,093,802 16,678,586 Capital contributions and grants 2,287,187 1,620,798 778,116 2,874,341 Total governmental activities program revenues 19,666,083 19,383,398 16,181,511 24,079,031 Business-type Activities:
Charges for services:
Water utility 8,698,444 8,304,240 8,819,676 9,802,992 Pico Rivera Innovative Municipal Energy - - - 5,354,524 Other enterprise funds 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 9,694,992 9,606,892 10,298,569 16,334,488 Primary government program revenues 29,361,075 $ 28,990,290 $ 26,480,080 $ 40,413,519 $ Net (Expense)/Revenue:
Governmental activities (29,445,151) $ (29,654,808) $ (38,320,654) $ (26,365,313) $ Business-type activities 330,105 116,648 521,045 780,869 Total primary government net expense (29,115,046) $ (29,538,160) $ (37,799,609) $ (25,584,444) $ Source: City of Pico Rivera Finance Division
Statement of Activities
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(144)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 11,832,065 10,589,517 $ 8,799,110 $ 8,089,449 $ 10,634,542 $ 12,731,508 $ 12,460,600 11,998,792 12,314,336 12,144,703 12,661,589 13,379,213 15,688,114 16,339,812 16,834,980 14,700,643 15,857,499 18,936,919 7,319,903 7,958,749 6,765,477 7,457,649 8,540,605 9,252,519 5,508,857 5,416,605 6,248,362 6,414,485 7,274,930 7,372,371 5,269,424 4,194,760 4,630,014 10,891,361 5,957,282 6,295,744 1,527,256 1,507,430 1,486,071 1,450,395 1,394,492 1,346,707 59,606,219 58,404,010 57,078,350 61,148,685 62,320,939 69,314,981 8,743,689 8,506,305 9,503,242 9,570,530 7,461,720 9,464,358 12,800,550 12,944,076 16,116,785 17,222,547 18,935,357 21,514,631 1,411,093 1,804,018 1,980,185 1,430,189 1,417,790 2,010,965 22,955,332 23,254,399 27,600,212 28,223,266 27,814,867 32,989,954 $ 310,572 657,280 $ 415,826 $ 545,101 $ 1,161,745 $ 469,367 $ 970,410 1,114,647 1,160,968 1,163,935 1,144,044 1,163,574 852,467 836,847 878,464 882,256 991,248 1,011,371
359,398 579,751 63,530 279,041 487,136 661,269
9,104 205,328 155,361 285,648 184,645 184,993
826,524 982,241 1,240,644 1,681,960 2,003,316 1,647,237 13,826,068 13,168,680 16,416,848 26,561,448 22,046,380 27,540,888 5,855,720 3,604,445 2,986,830 5,387,593 3,207,183 946,727 23,010,263 21,149,219 23,318,471 36,786,982 31,225,697 33,625,426 10,376,513 9,904,084 10,641,130 11,180,400 10,989,386 12,151,949 16,685,058 13,581,101 14,798,777 18,030,558 24,006,009 28,338,604 1,056,567 1,119,812 1,841,744 1,195,085 1,073,920 1,652,800 - - - 476,602 246,661 -
- - - - 2,518,595 70,935
28,118,138 24,604,997 27,281,651 30,882,645 38,834,571 42,214,288 $ 51,128,401 45,754,216 $ 50,600,122 $ 67,669,627 $ 70,060,268 $ 75,839,714 $ $ (36,595,956) (37,254,791) $ (33,759,879) $ (24,361,703) $ (31,095,242) $ (35,689,555) $ 5,162,806 1,350,598 (318,561) 2,659,379 11,019,704 9,224,334 $ (31,433,150) (35,904,193) $ (34,078,440) $ (21,702,324) $ (20,075,538) $ (26,465,221) $
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(145)
2014-15 2015-16 2016-17 2017-18
General Revenues and Other Changes
in Net Position:
Governmental Activities:
Property taxes 9,611,244 $ 10,049,454 $ 10,591,691 $ 11,173,640 $ Sales taxes 16,368,367 17,766,538 17,637,948 17,575,729 Franchise taxes 1,646,884 1,654,275 1,582,026 1,703,255 Utility users taxes 3,525,036 3,385,361 3,276,321 3,142,090 Other taxes 1,760,876 1,850,151 1,632,337 1,807,130
Investment Earnings 151,636 193,684 347,422 637,086 Other 613,592 283,352 450,783 662,225 Transfers 611,727 479,232 (1,043,442) 42,027 Gain on sale of property 257,194 174,424 - - Special Item 1,059,577 (704,496) - - Total governmental activities 35,606,133 35,131,975 34,475,086 36,743,182 Business-type Activities:
Investment Earnings 2,226,339 2,128,937 2,073,537 2,025,078 Other 12,179 - - - Transfers (611,727) (479,232) 1,043,442 (42,027) Gain on bond defeasance - - - - Extraordinary item - 704,496 - - Total business-type activities 1,626,791 2,354,201 3,116,979 1,983,051 Total primary government 37,232,924 $ 37,486,176 $ 37,592,065 $ 38,726,233 $ Change in Net Position:
Governmental activities 6,160,982 $ 5,477,167 $ (3,845,568) $ 10,377,869 $ Business-type activities 1,956,896 2,470,849 3,638,024 2,763,920 Total primary government 8,117,878 $ 7,948,016 $ (207,544) $ 13,141,789 $ Source:City of Pico Rivera Finance Division
Statement of Activities
CITY OF PICO RIVERA, CALIFORNIA
CHANGE IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(146)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 12,259,774 11,734,058 $ 13,000,934 $ 13,831,113 $ 15,016,822 $ 15,379,635 $ 19,364,272 19,468,221 21,325,436 24,551,320 25,116,979 26,136,067 1,787,568 1,729,336 1,876,407 1,956,998 2,063,404 2,084,370 3,064,500 2,939,221 3,157,258 3,567,128 4,001,578 3,881,820 1,690,687 1,968,094 2,055,932 1,926,617 3,867,144 4,964,759 1,502,934 1,528,199 542,108 (197,845) 2,035,505 5,558,556 269,750 1,007,091 372,853 889,854 1,793,456 977,447
- - - - (56,438) -
- - - - 928,625 149,904
- - - - - -
39,939,485 40,374,220 42,330,928 46,525,185 54,767,075 59,132,558 2,096,023 2,140,163 1,640,357 449,236 423,345 1,170,718 - - - - - -
- - - - 56,438 -
- - - 683,028 - -
- - - - - -
2,096,023 2,140,163 1,640,357 1,132,264 479,783 1,170,718 $ 42,035,508 42,514,383 $ 43,971,285 $ 47,657,449 $ 55,246,858 $ 60,303,276 $ $ 3,343,529 3,119,429 8,571,049 22,163,482 23,671,833 23,443,003 7,258,829 3,490,761 1,321,796 3,791,643 11,499,487 10,395,052 $ 10,602,358 6,610,190 $ 9,892,845 $ 25,955,125 $ 35,171,320 $ 33,838,055 $
CITY OF PICO RIVERA, CALIFORNIA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(147)
2014-15 2015-16 2016-17 2017-18
General Fund:
Nonspendable 25,222,739 $ 25,198,662 $ 25,209,917 $ 25,168,800 $ Restricted 2,358,919 2,368,600 - - Committed 9,316,732 9,479,500 9,476,700 9,665,400 Assigned 10,272,833 14,376,800 14,426,700 13,256,200 Unassigned 4,341,395 12,882,331 10,851,445 12,063,120 Reserved - - - - Unreserved - - - - Total general fund 51,512,618 $ 64,305,893 $ 59,964,762 $ 60,153,520 $ All Other Governmental Funds:
Nonspendable - $ - $ - $ 4,508 $
Restricted 11,366,458 11,074,536 12,927,436 15,566,814 Assigned 600,000 600,000 600,000 600,000 Unassigned (2,869,762) (2,141,161) (1,749,394) (1,607,854) Total all other governmental funds 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)
(148)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 22,096,478 28,002,854 $ 23,232,000 $ 26,139,104 $ 26,900,752 $ 27,360,759 $ 1,087,825 1,061,066 1,372,990 1,180,688 1,335,720 1,510,564 10,169,300 10,284,000 20,510,328 24,517,211 28,903,778 29,660,398 13,991,300 14,039,900 13,717,940 14,926,791 20,990,019 25,239,889 17,752,704 9,067,136 14,366,714 6,458,368 4,139,702 1,167,302 - - - - - -
- - - - - - $ 65,097,607 62,454,956 $ 73,199,972 $ 73,222,162 $ 82,269,971 $ 84,938,912 $ $ - - $ - $ - $ - $ - $
33,195,861 31,791,493 34,780,540 37,428,998 31,704,104 34,437,022 - 600,000 232,477 11,590,609 13,312,296 18,227,149
(1,257,821) (60,712) (1,046,569) (502,874) (1,829,920) (5,457,878) $ 31,938,040 32,330,781 $ 33,966,448 $ 48,516,733 $ 43,186,480 $ 47,206,293 $
CITY OF PICO RIVERA, CALIFORNIA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(149)
2014-15 2015-16 2016-17 2017-18
Revenues:
Taxes and Assessments 34,083,110 $ 35,534,141 $ 34,592,924 $ 35,567,380 $ Licenses and permits 2,363,477 2,491,636 2,442,190 2,960,639 Intergovernmental 11,703,565 12,214,500 11,927,598 13,433,014 Charges for services 1,889,338 1,871,009 2,124,665 1,851,030 Fines, forfeitures and penalties 1,134,906 1,031,031 898,203 1,002,532 Investment income 336,077 341,746 488,369 812,776 Miscellaneous 2,535,295 785,171 538,177 5,593,359 Total revenues 54,045,768 54,269,234 53,012,126 61,220,730 Expenditures:
General government 6,884,398 6,805,810 11,819,289 12,938,296 Public safety 10,435,184 10,439,469 11,375,573 11,857,271 Public works 9,621,311 9,707,823 10,255,784 14,095,351
Parks and recreation 4,794,720 4,554,724 5,374,259 6,122,665 Health and welfare 4,840,878 5,266,352 5,587,157 5,311,548 Community development 2,730,123 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 7,287,913 2,453,883 1,547,832 Debt service:
Principal retirement 610,000 635,000 980,000 865,000
Interest and other charges 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 46,803,114 49,166,723 54,826,807 58,166,879 Excess (deficiency) of revenues over (under) expenditures 7,242,654 5,102,511 (1,814,681) 3,053,851 Other Financing Sources (Uses):
Transfers in 7,618,952 19,274,660 3,986,323 3,309,866 Transfers out (7,987,933) (10,488,538) (5,029,765) (3,767,839) Lease proceeds - - - - 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) (368,981) 8,786,122 (512,072) (457,973) Special Item:
Forgiveness of debt - (90,000) - - Net change in fund balances 6,873,673 13,798,633 (2,326,753) 2,595,878 Fund balances - July 1 53,166,962 60,040,635 73,839,268 72,121,110 Fund balances - June 30 60,040,635 $ 73,839,268 $ 71,512,515 $ 74,716,988 $ Debt service as a percentage of noncapital
expenditures 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)
(150)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ 39,179,631 38,653,543 $ 39,647,861 $ 44,310,901 $ 46,700,057 $ 47,874,143 $ 2,212,910 2,861,711 3,209,557 3,612,057 5,776,946 6,856,107 15,079,031 12,973,062 19,310,930 33,355,732 22,698,100 25,710,839 1,443,249 1,819,310 1,234,332 1,437,497 2,338,963 1,646,652 952,095 1,109,430 1,108,568 1,199,256 1,171,765 1,213,961 1,523,385 1,433,476 557,114 (359,384) 1,831,552 5,265,715 996,245 1,436,364 600,081 1,233,409 2,243,586 1,301,557 61,386,546 60,286,896 65,668,443 84,789,468 82,760,969 89,868,974 8,291,063 7,901,483 7,367,989 9,309,236 10,960,791 11,575,217 12,433,612 11,971,740 12,286,345 12,135,586 12,651,644 13,366,320 17,986,339 15,527,553 16,457,143 17,374,179 13,494,769 14,491,990 6,356,907 6,993,470 5,766,663 7,085,982 7,595,935 8,012,807 5,508,857 5,416,605 6,248,362 6,414,485 7,274,930 7,372,371 5,231,905 4,157,152 4,591,099 11,558,866 6,172,894 6,427,668 - - - - - -
- - - - - -
571,952 1,633,063 64,075 2,559,159 19,036,572 18,114,357 1,155,000 1,090,000 1,190,000 1,230,000 1,285,000 1,330,000 1,601,001 1,530,496 1,565,994 1,522,419 1,472,422 1,420,444 - - - 24,584 25,205 44,016
- - - 2,497 1,876 4,560
- 398,345 - - - -
- - - - - -
59,136,636 56,619,907 55,537,670 69,216,993 79,972,038 82,159,750 2,249,910 3,666,989 10,130,773 15,572,475 2,788,931 7,709,224 2,986,078 4,667,515 2,491,287 24,116,170 5,062,125 10,100,638 (2,986,078) (4,667,515) (2,491,287) (25,116,170) (5,062,125) (11,223,792) - - - - - 102,880
- - - - 928,625 (196)
- 14,695,000 - - - -
- 703,345 - - - -
- - - - - -
- 15,398,345 - (1,000,000) 928,625 (1,020,470)
- - - - - -
2,249,910 19,065,334 10,130,773 14,572,475 3,717,556 6,688,754 94,785,737 75,720,403 97,035,647 107,166,420 121,738,895 125,456,451 $ 97,035,647 94,785,737 $ 107,166,420 $ 121,738,895 $ 125,456,451 $ 132,145,205 $
6.17% 5.42% 5.46% 4.66% 4.74% 4.44%
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(151)
Transient Motor
Fiscal Property Sales Occupancy Vehicle
Year Taxes Tax Tax In-Lieu Tax
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
2023-24 15,302,866 26,248,659 522,694 76,769
Change from
Base Year 2014-15 59% 60% 34% 178%
Source: City of Pico Rivera Finance Division
CITY OF PICO RIVERA, CALIFORNIA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE (CONTINUED)
LAST TEN FISCAL YEARS
(152)
Utility Business
Franchise Users License
Tax Tax Tax Total
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
3,881,820 2,084,370 4,442,065 52,559,243
27% 10% 224% 60%
CITY OF PICO RIVERA, CALIFORNIA
REVENUE BASE BY CATEGORY
LAST TEN FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)
(153)
Total Total
Taxable Direct
Fiscal Residential Commercial Industrial Other* Tax-Exempt Assessed Tax Year Property Property Property Property Property Value Rate 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 2023-24 4,527,834,493 698,284,332 1,196,139,002 456,195,038 109,615 6,878,562,480 0.0916 *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
(154)
Fiscal Taxes Percent of Collections in Final
Year Levied Amount Levy
Subsequent Year
(Includes Refunds) Amount
Percent of
Levy
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% 144,759.00 4,048,127 100.00% 2023-24 4,029,440 3,926,062 97.43% 103,378.00 4,029,440 100.00% 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
Total Collections to Date
Collected within the
Fiscal Year of Levy
CITY OF PICO RIVERA, CALIFORNIA
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(155)
Agency 2014-15 2015-16 2016-17 2017-18
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 0.09907 0.09630 0.09627 0.19173 LA Community College District 0.04017 0.03575 0.03596 0.04599 LA County Flood Control 0.00000 0.00000 0.00000 0.00000 Los Nietos School District 0.03041 0.08062 0.07063 0.08396 Montebello Unified School District 0.08750 0.08715 0.14705 0.13514 Rio Hondo Community College Dist 0.02821 0.02712 0.02808 0.02748 Whittier City School District 0.05792 0.05757 0.05441 0.04781 Whittier Union High School Dist 0.05270 0.05063 0.06035 0.05781 Total Direct & Overlapping Tax Rate 1.47912 1.50386 1.49625 1.58992 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 0.09381 0.09355 0.09330 0.09301
(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
(156)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.17840 0.17835 0.18754 0.15321 0.14140 0.16870
0.04621 0.02717 0.04016 0.04376 0.02488 0.06023
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.06878 0.06576 0.06442 0.05249 0.05639 0.05089
0.13921 0.09306 0.09706 0.09031 0.12770 0.11275
0.02554 0.02571 0.01361 0.01526 0.01535 0.02182
0.05534 0.05096 0.05151 0.04780 0.04848 0.04575
0.05822 0.05502 0.05433 0.05395 0.05342 0.05063
1.57521 1.49952 1.51214 1.46028 1.47110 1.51428
0.08917 0.08917 0.08917 0.08917 0.08917 0.08917
0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0.09280 0.09245 0.09231 0.09210 0.09184 0.09164
CITY OF PICO RIVERA, CALIFORNIA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(157)
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 87,389,017 $ 1.27%
Vestar California XXVI LLC 81,787,661 1.19% 69,202,196 $ 1.63% Center Point Properties Trust 65,020,797 0.95%
BCORE Mercury Lane Owner LLC 64,504,800 0.94%
Airef Pico Rivera Distribution Center 64,362,000 0.94%
TRPF CAM Pico Rivera Venture LLC 57,630,000 0.84%
Majestic AMB Pico Rivera 49,970,867 0.73% 41,974,791 0.99% 8540 Whittier Boulevard 43,073,002 0.63%
Wal-Mart Real Estate Business Trust 40,063,203 0.58% 33,254,649 0.78% Pico Rivera Holdings LVT LLC 38,632,989 0.56%
Princeton Medical Holdings LLC 30,083,000 0.71%
Showprop Pico Rivera LLC 27,897,571 0.66%
General American Life Insurance Company 27,789,609 0.65% Public Storage Inc 22,132,585 0.52%
AGNL Pastry LP 21,803,917 0.51%
$ 592,434,336 8.61% $ 274,138,318 6.45%
Excludes government and tax-exempt property owners
Total City Value for 2014-15 4,249,444,059 $
Total City Value for 2023-24 6,878,562,480 $
Source: Los Angeles County Assessor 2023-24 and 2014-15 Combined Tax Rolls 2023-24 2014-15
CITY OF PICO RIVERA, CALIFORNIA
TOP 25 SALES TAX PRODUCERS
CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(158)
Taxpayers Business Type Taxpayers Business Type
Arco AM PM Service Stations 76 Service Stations
Arco AM PM Service Stations 76 Service Stations
Bay Cities Container Light Industrial/Printers Arco AM PM Service Stations Beacon Building Products Building Materials Arco AM PM Service Stations Calply Building Materials Cal Wholesale Material Supply Building Materials Chevron Quick-Service Restaurants Chevron Service Stations Chevron Business Services Chevron Service Stations
Chick Fil A Quick-Service Restaurants Cintas Business Services Cintas Business Services Circle K Service Stations
Dal Rae Fine Dining Dal Rae Fine Dining
In N Out Burdger Quick-Service Restaurants Food 4 Less Grocery Stores Lowes Building Materials Home Depot Building Materials
Marshalls Family Apparel Lowes Building Materials
Rush Peterbilt Truck Center New Motor Vehicle Dealers McDonalds Quick-Service Restaurants Saw Service of America Heavy Industrial Oxnard Building Materials Building Materials Suez Mobile Water Drugs/Chemicals Pico Rivera Gas & Carwash Service Stations Target Discount Dept Stores Rush Peterbilt Truck Center New Motor Vehicle Dealers Toshiba American Business Sol Office Equipment Saw Service of America Heavy Industrial Ulta Beauty Specialty Stores Target Discount Dept Stores Unisource Office Supplies/Furniture Unisource Office Supplies/Furniture United Rentals Repair Shop/Equip. Rentals United Rentals Repair Shop/Equip. Rentals Vesta Home Home Furnishings USA Gasoline Service Stations Walmart Supercenter Discount Dept Stores Walmart Supercenter Discount Dept Stores Percentage of Fiscal Year Total Paid by Top 25 Accounts = CY 2023 59.33%
CY 2014 64.42%
NOTE: The names are listed in alphabetical order and not by sales tax volume.
Source: HdL Companies, State Board of Equilization
Fiscal Year 2023-24 Fiscal Year 2014-15
CITY OF PICO RIVERA, CALIFORNIA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(159)
Net Finance Authority Net Total Percentage Debt
Fiscal County Pension Revenue Lease Revenue Pension Primary of Personal Per Year Deferral (2) Obligation (3) Bonds (1) Liability (4) Bonds Obligation (3) Government Income Capita 2014-15 - 24,172,149 32,190,692 - 44,404,619 3,474,478 104,241,938 8.68% 1,631 2015-16 - 25,366,413 31,510,767 - 42,271,468 3,646,800 102,795,448 8.66% 1,599 2016-17 - 28,485,966 32,438,350 - 40,013,319 4,096,656 105,034,291 8.85% 1,640 2017-18 - 31,078,035 31,439,322 - 37,620,169 4,473,787 104,611,313 8.73% 1,628 2018-19 - 30,962,654 45,590,194 - 35,082,018 4,967,451 116,602,317 9.12% 1,821 2019-20 - 33,878,412 44,277,732 - 32,393,869 5,146,415 115,696,428 8.61% 1,826 2020-21 - 34,179,750 42,930,248 - 29,545,719 6,603,167 113,258,884 7.61% 1,793 2021-22 - 23,242,557 41,542,775 86,524 9,577,364 5,214,285 79,576,981 4.79% 1,295 2022-23 - 35,272,270 40,100,302 61,319 8,412,506 7,520,930 91,306,008 5.38% 1,497 2023-24 - 35,639,209 38,612,829 120,183 7,182,648 7,601,404 89,036,090 4.96% 1,464 (1) The Finance Authority Revenue Bonds are backed by lease payments made from General Fund Revenues. These lease payments and long-term debt are included in the Statement of Net Position.
(2)
(3)
(4)
Business-Type Activities
Upon dissolution of the former redevelopment
agency on February 1, 2012, the County deferral
obligation was transferred to the Successor Agency
and is no longer an obligation of the City.
City implement GASB 87 in FY 21/22 and recognize lease liability.
Governmental Activities
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.
CITY OF PICO RIVERA, CALIFORNIA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(160)
Finance
General Authority Total Percent of Debt
Fiscal Obligation Revenue Primary Assessed Per
Year Bonds Bonds (1) Government Value Capita
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
2023-24 - 38,612,829 38,612,829 0.561% 634.87
(1)
Note: Details regarding the outstanding debt can be found in the notes to the financial statements.
Source: City of Pico Rivera Finance Department
The Finance Authority Revenue Bonds are backed by lease payments made from General Fund Revenues. These lease payments and long-term debt are included in the Statement of Net Positon.
CITY OF PICO RIVERA, CALIFORNIA
DIRECT AND OVERLAPPING DEBT
JUNE 30, 2024
(161)
2023-24 Assessed Valuation: 6,878,562,480 $
Total Debt City Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 % Applicable (1) Debt 6/30/24 Metropolitan Water District 18,210,000 $ 0.18% 32,414 $ Los Angeles Community College District 5,155,845,000 0.013 670,260 Rio Hondo Community College District 164,769,080 13.028 21,466,116 El Rancho Unified School District 145,524,346 99.996 145,518,525 Montebello Unified School District 237,721,813 0.679 1,614,131 Whittier Union High School District 157,614,361 0.515 811,714 Los Nietos School District 39,847,715 0.038 15,142 Whittier City School District 65,020,000 1.910 1,241,882 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 171,370,184 $ DIRECT AND OVERLAPPING GENERAL FUND DEBT: Los Angeles County General Fund Obligations 2,479,229,730 $ 0.34% 8,503,758 $ Los Angeles County Superintendent of Schools Certificates of Participation 2,857,300 0.343 9,801 Montebello Unified School District Certificates of Participation 3,910,000 0.679 26,549 Whittier City School District Certificates of Participation 8,365,000 1.91 159,772 City of Pico Rivera General Fund Obligations 22,935,000 100 22,935,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 31,634,880 $ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $6,355,000 100.00% $6,355,000 TOTAL DIRECT DEBT $22,935,000
TOTAL OVERLAPPING DEBT $186,425,064
GROSS COMBINED TOTAL DEBT $209,360,064
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
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CITY OF PICO RIVERA, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(162)
2014-15 2015-16 2016-17 2017-18
Debt limit 643,657,163 $ 673,079,843 $ 710,507,871 $ 750,729,280 $ Total net debt applicable to limit - - - - Legal debt margin 643,657,163 $ 673,079,843 $ 710,507,871 $ 750,729,280 $ Total net debt applicable to the limit as a percent
of debt limit 0.00% 0.00% 0.00% 0.00%
Assessed value 4,249,444,059 $ 4,443,723,085 $ 4,699,049,996 $ 4,960,278,250 $ Add back: exempt real property 41,603,696 43,475,869 37,669,146 44,583,616 Debt limit (15% of total assessed value) 643,657,163 $ 673,079,843 $ 710,507,871 $ 750,729,280 $ Debt applicable to limit - - - - Legal debt margin 643,657,163 $ 673,079,843 $ 710,507,871 $ 750,729,280 $ 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
(163)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
$ # 836,367,534 791,460,728 $ 868,018,885 $ 926,960,187 $ 994,004,218 $ 1,055,642,072 $ - - - - - - $ # 836,367,534 791,460,728 $ 868,018,885 $ 926,960,187 $ 994,004,218 $ 1,055,642,072 $
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$ 5,524,451,955 5,223,378,886 $ 5,741,373,950 $ 6,134,582,164 $ 6,583,483,323 $ 6,958,088,146 $ 51,331,603 53,025,964 45,418,617 45,152,416 43,211,464 79,525,666 $ # 836,367,534 791,460,728 $ # 868,018,885 $ # 926,960,187 $ # 994,004,218 $ 1,055,642,072 $ - - - - - - $ # 836,367,534 791,460,728 $ # 868,018,885 $ # 926,960,187 $ # 994,004,218 $ 1,055,642,072 $ Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
PLEDGED REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
(164)
Less: Net Revenue
Fiscal Gross Direct Available for 1999 Bonded
Year Revenue (1) Costs (2) Debt Service Debt (P & I) Coverage 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 (5,312,036) 6,657,536 1,635,875 4.07% 2017-18 11,825,467 (6,415,875) 5,409,592 1,636,050 3.31% 2018-19 11,995,293 (5,598,283) 6,397,010 1,638,750 3.90% 2019-20 12,398,054 (5,990,423) 6,407,631 1,638,700 3.91% 2020-21 12,260,342 (7,358,233) 4,902,109 1,635,900 3.00% 2021-22 12,457,186 (7,692,571) 4,764,615 1,635,350 2.91% 2022-23 13,838,551 (5,836,085) 8,002,466 1,636,775 4.89% 2023-24 15,036,147 (8,034,074) 7,002,073 1,639,900 4.27% (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 1,061,150 1,926,150 22.64
2018-19 41,859,180 885,000 1,043,650 1,928,650 21.70
2019-20 41,115,931 900,000 1,023,450 1,923,450 21.38
2020-21 45,235,968 925,000 998,225 1,923,225 23.52
2021-22 49,034,402 955,000 965,520 1,920,520 25.53
2022-23 56,495,651 995,000 926,250 1,921,250 29.41
2023-24 60,261,698 1,030,000 888,775 1,918,775 31.41
(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
2019-20 871,222 255,000 577,969 832,969 1.05
2020-21 909,366 265,000 567,769 832,769 1.09
2021-22 1,126,471 275,000 557,169 832,169 1.35
2022-23 1,167,903 290,000 546,169 836,169 1.40
2023-24 1,144,155 300,000 531,669 831,669 1.38
(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
2023-24 5,979,569 3,615,000 123,254 3,738,254 1.60
(1) Total Successor revenues
(2) In 2021, the 2001 Redevelopment Agency Tax Allocation Refunding Bonds was refunded Source: City of Pico Rivera Finance Department
2018 CERTIFICATES OF PARTICIPATION
2021 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING BONDS (2) 2016 LEASE REVENUE BONDS (2)
1999 WATER AUTHORITY REVENUE BONDS - Last Ten Fiscal Years
CITY OF PICO RIVERA, CALIFORNIA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(165)
Per
Personal Capita
Fiscal Income Personal Unemployment
Year Population (1) (in thousands) (2) Income (2) Rate (3) 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%
2023-24 60,820 1,794,670 29,507 4.90%
(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
(166)
% of Total % of Total
City City
Employer Business Type Employees Employment Employees Employment BakeMark USA LLC Manufacturer 594 2.12%
Wal-Mart Supercenter Department Store 251 0.90%
Feit Electric Company Warehouse For Distribution 215 0.77% 186 0.65% Riviera Nursing & Convalescent Healthcare & Hospitals 204 0.73% Target Department Store 192 0.69%
Parts Authority LLC Wholesale Business 190 0.68%
Vesta Home Home Furnishing & Appliances 188 0.67%
Manning Beef LLC Meat - Miscellaneous 147 0.53%
Lowes Hardware Store 140 0.50% 105 0.37%
AMWater Pallet Services LLC Service- Repair 122 0.44%
Home Depot Retailer 138 0.48%
Rush Truck Center New Motor Vehicles 112 0.39%
Bimbo Bakeries Distribution Center 110 0.38%
Superior Grocers Grocery Store 150 0.52%
First Source LLC Warehouse Storage 150 0.52%
Northgate Market Grocery Store 133 0.46%
Bay Cities Container Manufacturer 130 0.45%
Lubricating Specialties Co. Contractor 126 0.44%
Total Top Employers 2243 8.01% 1340 2.26%
Total City Employment (3) 28,000 28,750
(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. 2023-24 (1) 2014-15 (2)
CITY OF PICO RIVERA, CALIFORNIA
FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
(167)
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General Government 30 25 30 30 31 30 29 31 32 34
Public Safety 5 8 8 9 9 7 7 7 7 7
Public Works 54 55 64 65 66 51 51 48 53 52
Parks & Recreation 21 21 26 26 27 24 25 26 27 28
Community Development 16 15 20 19 20 20 20 24 24 23
Water 11 8 9 10 10 10 10 9 11 15
Total 137 132 157 159 163 142 142 145 154 159
Source: City of Pico Rivera Finance Department
Fiscal Year
CITY OF PICO RIVERA, CALIFORNIA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
(168)
Function 2014-15 2015-16 2016-17 2017-18
Police:
Calls dispatched 21,878 24,523 26,177 25,363
Crime reports 10,725 10,268 7,275 6,680
Moving citations 4,250 3,296 3,146 3,931
Parking citations - Sheriff 147 171 158 69
Parking citations issued by Public Safety 15,152 15,468 16,285 15,985 Streets and Highways:
Asphalt repair (in tons) 427 100 2,523 7,263
Curb & gutter repair (lineal ft.) 530 500 146 121
Sidewalk repair (lineal ft.) 1,200 1,600 2,523 7,263
Traffic signals maintained 45 47 47 47
Water:
Number of customer accounts 9,400 9,435 9,435 9,435
Average daily consumption (millions of gallons) 5 4
Sewers:
Feet of sewer mains root cut/chemically treated 11 0* 0 0 Maintenance:
Square ft. graffiti removal 101,419 100,000 150,000 229,000 Streetsweeping miles 21,285 10,400 21,285 21,285
Trees trimmed per year 4,998 5,000 4,000 3,000
Culture and Recreation:
Youth sports 856 818 671 517
Aquatics 16,179 6,960 10,715 10,502
Recreation classes 16,415 4,825 4,932 7,076
Senior Center participants 117,978 110,632 135,889 151,669 (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
(169)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
22,854 31,780 29,039 29,532 30,863 26,666
6,288 5,969 5,255 5,563 5,655 5,185
3,216 1,770 2,720 3,168 2,480 1,703
167 74 20 22 65 68
28,037 16,543 20,974 20,957 20,950 20,111
4,813 4,061 1,312 12,114 30,556 32,661
200 606 1,220 5,904 9,477 10,199
208 2,008 2,400 9,010 3,449 2,337
47 47 48 48 47 47
9,435 9,450 9,452 9,470 9,514 9,515
4 4 4 4 4
0 0 0 0 0 0
117,536 89,299 260,000 265,000 273,000 275,000
21,285 21,285 21,285 21,285 21,285 21,285
2,500 751 614 3,035 2,569 3,577
825 292 0 530 1,440 1,829
11,114 8,811 0 0 0 0
10,398 5,107 2,289 1,678 1,307 1,391
135,354 97,080 0 5,500 35,636 62,048
FISCAL YEAR
CITY OF PICO RIVERA, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
(170)
Fiscal Year
Function 2014-15 2015-16 2016-17 2017-18
Public Safety:
Police stations 1 1 1 1
Number of patrol units 12 12 14 14
Highways and Streets:
Miles of streets 115.2 115.2 115.2 115.2
Traffic Signals 43 47 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 flood control channel 17 17 17 17
Culture and Recreation:
Number of community centers 6 6 6 6
CITY OF PICO RIVERA, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION (CONTINUED)
LAST TEN FISCAL YEARS
(171)
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
1 1 1 1 1 1
14 14 14 14 14 14
115.2 115.2 115.2 115.2 115.2 115.2
47 47 48 50 53 47
8 8 8 8 8 8
3 3 3 3 3 3
98 98 98 98 98 98
17 17 17 17 17 17
6 6 6 6 6 6
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 2023-2024
Enclosure 2
15b
Steve Carmona
City Manager
Angelina Graves
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 2023-2024 Accomplishments Report Dr. Monica Sánchez
Councilmember
John R. Garcia
Mayor
Gustavo V. Camacho
Mayor Pro Tem
Erik Lutz
Councilmember
Andrew C. Lara
Councilmember
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 3 As we close out the fiscal year 2023-24, I am pleased to reflect on the tremendous progress we have made together as a community. This year has been marked by collaboration, innovation, and a steadfast commitment to improving the quality of life for all who live, work, and visit our city. The achievements of this past year are a testament to the dedication of our City Council, staff, and engaged residents.
Economic Development The continued commitment towards economic development and growth was undoubtedly demonstrated by the launch of several new businesses and notable developments include the opening of Los Amores de Julia, Yu-Me restaurant, Starbucks, and a 4-story Public Storage Building. Our dedicated staff provided local businesses with critical support, fostering entrepreneurship and community growth. Together, these efforts all contribute towards a more diversified and resilient economic base.
Public Safety The safety of our community remains a top priority. This year, we were able to enhance the safety of our public parks and City facilities by incorporating security patrol services throughout these parks and facilities. Coupled with the implementation of 24-hour video monitoring services at the facilities provided by Netwatch, N.A., the City is on a course to provide safer parks and facilities for our community. We also invested in modern equipment and technology with the implementation of the ShotSpotter Gunshot Detection and Location System throughout the City, which ensures our first responders have the tools they need to serve effectively.
Infrastructure Improvements The City also continues to make strong and impactful strides in enhancing our city’s infrastructure. In addition to annual Residential Resurfacing of City streets, Sidewalk Improvements, and Annual Signing and Striping, the City’s progress and completion of the major projects below exemplify our ongoing focus towards providing the community safe and reliable infrastructure.
• PFOA/PFAS Water Treatment System: By introducing advanced treatment systems at three facilities, we’ve taken a major step toward providing cleaner, safer drinking water. This aligns with our commitment to environmental stewardship and safeguarding public health. • Median Beautification Projects: Revitalized medians with landscaping and design upgrades have not only improved traffic management but also added aesthetic value, fostering community pride.
• Pico Rivera Regional Bikeway Project: This forward-thinking project is connecting neighborhoods and creating safer, eco-friendly transportation options for cyclists while promoting active lifestyles and reducing our carbon footprint.
Environmental Sustainability Our city continued to lead in environmental stewardship, completing and adopting the PRIME Power Choice Program (Tesla Solar + Battery Program), increased OHMConnect resident registrations for energy-saving activities, and completed the Climate Action Plan Assessment. These efforts are projected to reduce our carbon footprint and align with our commitment to combating climate change.
Community Engagement and Services We expanded community services by launching the Emprendedor@s program, PlayPASS subsidy program, AARP sponsored Income Tax Preparation, and serving meals to our youth and senior community. These vital services enhance the vibrancy and inclusivity of our city. Through surveys and other outreach efforts, we strengthened communication with our residents, ensuring their voices shape the decisions that affect our future.
Financial Sustainability Maintaining fiscal health remains a cornerstone of our city’s governance. This year, we achieved a balanced budget, bolstered our reserves, and secured state grants, federal and local funding, for critical projects. These actions reinforce our long-term financial stability and capacity to invest in future priorities.
Looking ahead, we remain focused on building upon this year’s accomplishments. The upcoming fiscal year promises new opportunities to address challenges and advance initiatives that enhance our city’s livability, sustainability, and economic vitality. I am confident that, with continued collaboration and dedication, we will achieve even greater milestones.
Thank you for your ongoing support and commitment to making our city a place we are all proud to call home.
Sincerely,
Steve Carmona
City Manager
City of Pico RIvera
6615 Passons Blvd.
Pico Rivera, CA 90660
www.pico-rivera.org
Scan the QR code to view the full list
of accomplishments for FY 2022-
2023, or visit pico-rivera.org
4 City of Pico Rivera Fiscal Year 2023 -24 Accomplishments Report
To positively impact our community by providing
excellent city services, facilitating responsible
stewardship of resources, and actively engaging
our residents, businesses, and visitors.
CITY OF PICO RIVERA STRATEGIC PLAN
Pico Rivera will be a leading progressive, thriving,
connected community with a high standard for
quality of life and collaborative governance.
Cra is a skill in planning, making, or executing.
The acronym CRAFT is used to reinforce the
purpose and importance of the organization’s
values:
Collaboration
Respect
Accountability
Fairness and Inclusion
Transparency
ECONOMIC DEVELOPMENT
AND LAND USE
Encourage the development of underutilized space,
plan for growth, and engage businesses to transform
the City as an economic and cultural hub.
HEALTH, WELLNESS
AND SAFETY
Create a safe and thriving City with low crime and
high standards for health and wellness.
COMMUNITY
ENGAGEMENT
Foster a connected, collaborative, and actively
participating City and workforce.
FISCAL AND ORGANIZATION
SUSTAINABILITY Create a City government build to adapt to change INFRASTRUCTURE Plan, fund, build, and maintain reliable and cost-effective infrastructure that contributes to enhancing quality of life.
Our Guiding Plan
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 5 2023-24 City Awards
and Recognition
3rd place for Graphic Design and
Art from the National City-County
Communications & Marketing
Association (3CMA) for “Pico
Rivera Transit”
“Purple Heart
City Award”
unanimously
approved by
the City Council
to proudly
designate the
City of Pico
Rivera as a
Purple Heart
City. This
designation recognizes and pays
tribute to residents who have
served their country. The City
was the first among the Gateway
Cities to receive this honor.
Received the 2023 Gateway Cities
Council of Governments Energy
Action Award – Gold, to recognize
cities in their efforts and
participation in energy efficiency
and climate initiatives.
Obtained a total of $4,704,390
in Highway Safety Improvement
Program (HSIP) Cycle 11 grant
funding for FY 2023-24 consisting
of:
Citywide Sign Audit and Roadway
Safety Sign Enhancement Project
in the amount of $2,539,170
Citywide Traffic Signal
Enhancement Project in the
amount of $1,917,720
School Crossings Safety
Enhancement Project in the
amount of $247,500
Awarded $300,000 to complete
the City’s Comprehensive Safety
Action Plan under the Safe Streets
and Roads for All Program (SS4A).
Received GFOA Award for
Excellence in Financial
Reporting for FY 2022-23 Annual
Comprehensive Financial Report
(ACFR)
“Student Conference Scholarship
Award” Winner - District 13
(CPRSD13) to Jacob HodgdenBaltierra
Awarded a $20,000 grant from
the National Recreation and Parks
Association (NRPA) towards the
PlayPASS program as part of
Youth Sports equity.
“Photography Award of
Distinction” from the California
Association of Public Information
Officials (CAPIO) for “Sunsets over
Pico Rivera”
Awarded $411,000 to complete
the Pico Rivera Active
Transportation Master Plan
under 2023 Active Transportation
Program (ATP).
Received GFOA Award
for Distinguished Budget
Presentation for Biennial Budget
FY 2023-25
6 City of Pico Rivera Fiscal Year 2023-2024 Accomplishments Report Residents of the
City of Pico Rivera
City Attorney
City Manager
City
Council
Director of
Administrative Services
Director of
Human Resources
Director of Innovation
and Communications City
Clerk
Sheriff
Captain
Director of
Public Works
Director of Parks
and Recreation
Director of Community
and Economic Development
Assistant
City Manager
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 7 • Created a partnership with the Foundation for
California Community Colleges (FCCC) for the
CivicBuys Cooperative Purchasing Program.
CivicBuys Collaborative Purchase Agreement
allows the City to leverage the collective purchasing
power of multiple agencies to secure competitive
pricing on a wide range of goods and services.
• Successfully obtained the Certification for the
City Manager and Assistant City Manager in AI
Programs through UC Berkeley’s Haas School
Emeritus Program in “Artificial Intelligence:
Business Strategies and Applications.” Additionally,
the Director of Innovation and Communications
has been certified through MIT’s Professional
Education in “Applied Generative AI for Digital
Transformation.”
• Provided Ethics Training for City employees and
elected officials to ensure compliance with current
laws and regulations.
• Launched the City’s Records Repository,
“Laserfiche”, featuring a personalized instructional
video hub on Sharepoint for employees.
• Presented a balanced budget for FY 2024-25,
demonstrating our unwavering commitment to
financial stewardship and ensuring the effective
allocation of resources to meet the needs of our
community.
• Successfully updated the City’s Records Retention
Schedule: Modernized and streamlined the
City’s records retention schedule to ensure
compliance with current regulations and industry
best practices, enhancing the efficiency and
transparency of document management processes
• Debuted the City’s enhanced Pico Rivera Municipal
Code“eCode360” portal: Introduced the upgraded
“eCode360” portal, providing residents, businesses,
and staff with seamless, user-friendly access to the
Pico Rivera Municipal Code.
• Successfully exceeded the City’s Reserve Policy by
reserving 73% of PRIME revenues through efforts
towards prudent fiscal stewardship, competitive ratesetting, and mindful spending. • Provided Monthly Financial Reporting to the City
Council on revenues and expenditures for all funds,
ensuring financial transparency and reporting.
• Implemented industry “Best Practices”:
Updated the Investment Policy
Updated Capital Asset Capitalization Policy
• Transitioned to a “paperless” accounts payable
system using Laserfiche, revolutionizing our
financial processes by improving efficiency, reducing
processing times, and minimizing environmental
impact.
• Upgraded Acrobat Pro citywide, providing advanced
tools for creating, editing, and managing PDF
documents, enhancing efficiency and document
management capabilities across departments.
• Completed ArcGIS Enterprise upgrade that enhances
the organization’s ability to manage and analyze
spatial data. This comprehensive GIS software
supports enterprise-wide mapping and spatial
analysis, enabling data-driven decisions through
improved location intelligence.
FISCAL AND ORGANIZATIONAL
SUSTAINABILITY
8 City of Pico Rivera Fiscal Year 2023-2024 Accomplishments Report
FISCAL AND ORGANIZATIONAL SUSTAINABILITY ACCOMPLISHMENTS
PERFORMANCE ACTIVITY FOR FISCAL AND ORGANIZATION SUSTAINABILITY Performance Activity
Accounts Payable Invoices Processed
ACH Accounts Processed
Distinguished/Excellence Financial/Budget Awards Received Percent of balanced General Fund Adopted Budget
IT Help Desk Requests Resolved
Computers/ Laptops Replaced (Starting FY 2022-23)
Employment Applications Received and Reviewed
Recruitments Opened to Date
New Hire Orientations (Full Time)
New Hire Orientations (Part-Time)
Eligibility Lists Certified/Interviews Facilitated (Full-Time) Eligibility Lists Certified/Interviews Facilitated (Part-Time) Hold City Council Goal-Setting Retreat
Increase publicity available City Council Agendas
Ordinances Adopted into Law
Agreements Approved and Entered in
Public Records Request Fulfilled
File Boxes Destroyed per Record Retention Policy
Digital Records Destroyed per Record Retention Polilcy
PRIME Participate Rate
Provide Monthly City Manager’s Report (Started April 2022) FY 2021-22
6,144
1,784
2 100%
499
-
2,705
57 14
48 33
45 1
100%
15 91
224
24 -
93%
25%
FY 2022-23
5,378
2,041
2 100%
673
67 2,298
43 19
33 17
53 2
100%
14 121
245
21 -
94%
100%
FY 2022-23
6,219
1,688
2 100%
815
75 1,630
23 13
70 14
12 2
100%
16 142
253
92 3,629
94%
100%
• Implemented Neptune 360 support, enhancing
water utility management with advanced tools for
infrastructure monitoring, data analysis, and resource
optimization.
• Implemented Citywide password vault is a secure,
centralized. tool for storing and managing passwords
and sensitive information, enhancing data security
and accessibility.
• Implemented an innovative electronic “Request
for Approval to Hire” form, streamlining the hiring
process to ensure timely and efficient recruitment.
• Recovered $42,546 in subrogation claims,
demonstrating diligence in safeguarding public funds.
• Finalized a software agreement with Trakstar to
transition performance evaluations from paper to
electronic system, enabling improved tracking of
evaluations and notifications.
• Revitalized the City’s Safety Committee to proactively address safety concerns and implement measures to
create a safer environment.
• Hosted a Health Fair for City Staff during the annual open enrollment period, providing direct access to
insurance vendors to support informed decisionmaking about coverage options. • Facilitated health screenings for staff through
Longevity, Inc. as part of the City’s wellness initiative to promote employee health and well-being.
• Successfully developed and implemented a Workplace
Violence Prevention Plan to ensure a secure and
respectful work environment, in full compliance with
SB 553. This initiative included robust training for
staff to recognize, prevent, and respond to potential
workplace violence.
• Successfully completed the FEMA DR-4699
reimbursement process for damages incurred during
the February 2023 storms. The City received $19,350
in reimbursements.
• Migrated ClubProfit Cloud, providing golf course
management iwth an integrated platform for
membership management, tee time reservations,
billing, and streamlining operations and enhancing
efficiency.
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 9
ECONOMIC DEVELOPMENT AND
LAND USE ACCOMPLISHMENTS
PERFORMANCE ACTIVITY FOR ECONOMIC DEVELOPMENT AND LAND USE Performance Activity for Economic Development and Land Use Building Permits Processed
Business Licenses Processed
Utility Billed Accounts Processed
Cash Receipt Transactions Processed
Cash Receipts Amount Collected
New Water Accounts Processed
New Water Accounts Amount Collected
EV Charging Station Permits Issued
Residential Solar Panel Permits Issued
Accessory Dwelling Unit Applications - Open Plan Check* Accessory Dwelling Unit Applications - Permits Issued/ Completed* *Accessory Dwelling unit Applications were previously reported as one category FY 2022-23
1,809
2,683
59,591
62,681
$101,601,223
383
$57,937
-
202
112
-
FY 2022-23
2,597
2,220
59,939
69,035
$101,399,846
355
$57,581
8 292
248
45 FY 2022-23
2,232
4,165
61,425
69,458
$115,721,077
284
$59,518
3 178
109
68 10 City of Pico Rivera Fiscal Year 2023-2024 Accomplishments Report
ECONOMIC DEVELOPMENT AND LAND USE ACCOMPLISHMENTS
• Approved a Conditional Use Permit application for a
95-unit Townhome development on a four-acre site
at 6540 Rosemead Blvd (former site of Knights Inn
Motel).
• Oversight for the construction completion of a new
public storage facility located at 6605 Rosemead Blvd.
Construction of a 4-story building with 640 storage
units for rent. The estimated valuation is over $8.2
million.
• Entitled a Conditional Use Permit at 6730 Rosemead
Blvd for Yu-Me restaurant (formerly Sizzler
restaurant).
• Completed the Business Attraction and Façade
Rehabilitation Grant Program Guidelines designed
by David Hidalgo Architects that will provide needed
financial assistance to property owners and ensure
appropriate design.
• Completed the Whittier and Durfee Commercial
Façade Design Guidelines as designed by David
Hidalgo Architects that will encourage the
revitalization of Whittier Blvd and Durfee Ave.
• Successfully completed rehabilitation oversight of the Rise Apartments (formerly Whittier Manor), ensuring
quality and safe housing for residents
• Completed the rehabilitation oversight of the
construction of Los Amores de Julia located at 8800
Washington Blvd.
• Processed the 0.6-acre property at 9003 Beverly
Blvd through the Surplus Land Act and entered into
an Exclusive Negotiating Agreement with Tierra Mia
Coffee Company.
• Initiated the construction and project management
of KB Homes Azul project at the northeast corner
of Stephens and Durfee Ave for a multi-unit
condominium development.
• Successfully completed the construction of a new
Starbucks location at the northwest corner of Slauson
Ave and Reeve Road. This new location serves as a
key addition to the community, enhancing the area’s
commercial appeal, creating local job opportunities,
and delivering a convenient and welcoming
destination for residents and visitors.
• Processed a Conditional Use Permit for the
construction of a new two-story, 6,494 square-foot
manufacturing facility on a vacant parcel at 9220
Bermudez Street.
• Processed a Conditional Use Permit to allow an auto
repair shop within a multi-tenant building at 9110
Bermudez Street.
• Completed the construction of Topline Nails at
8652 Whittier Blvd, marking a significant milestone
for a business that demonstrated resilience and
determination after recovering from a devastating
fire. This achievement not only restored a small
business but also highlighted the city’s commitment
to supporting businesses in their efforts to rebuild
and thrive.
• Processed two critical moratoriums to address
underutilized commercial land uses, targeting
trade schools and rest homes to better align with
community needs and planning goals.
• Processed a Precise Plan of Design for the
construction of a new 5,024 square foot two-story
industrial building on a vacant parcel at 7655 Serapis
Ave.
• Approved entitlements for a small car wash at 6416
Rosemead Blvd, transforming a property that had
been vacant since 2020 into a productive community
asset.
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 11
INFRASTRUCTURE
ACCOMPLISHMENTS
12 City of Pico Rivera Fiscal Year 2023-2024 Accomplishments Report FY 2023-24
2 1,145
7,030
176
850
800
287
524
• Completed the following significant capital projects, which underscore our commitment to improving
infrastructure and community resources:
ӹ Residential Resurfacing Program – Overlay and
Reconstruction Project: Enhanced road
conditions and improved the safety and
functionality.
ӹ Annual Sidewalk Improvements Project:
Addressed critical pedestrian safety concerns by
repairing and upgrading sidewalk across
the city, ensuring accessibility and mobility
for all.
ӹ Annual Signing and Striping Project: Improved
traffic flow and safety by upgrading street
signage and road markings, contributing to
more organized and efficient transportation.
ӹ Overlay Improvements on Whittier Boulevard:
Upgraded this key corridor with enhanced
pavement quality and structural integrity,
benefiting local businesses and commuters
alike.
ӹ Electrical Switchboard Replacement Project:
Modernized essential electrical infrastructure to
increase reliability and capacity.
Upgraded the following:
ӹ Electrical Switchboard Replacement Project
ӹ LED Lighting at City Hall Main Conference Room,
Rivera Park, Smith Park, and Pico Park
ӹ Light fixtures and new ceiling tiles at Rivera Park
Multipurpose Room
ӹ City Hall Employee Breakroom renovation
ӹ Exterior color lighting at City Hall
• Finalized the Utility Box Art Program, completing the last phase of this popular initiative and showcasing
vibrant public art throughout the City.
• Began design phase for the following capital projects:
ӹ Citywide Sign Audit and Roadway Safety Sign
Enhancement Project
ӹ Citywide Traffic Signal Enhancement Project
ӹ School Crossings Safety Enhancement Project
ӹ Pico Park Outdoor Restrooms
ӹ Rio Hondo Park Renovation
• Successfully awarded contracts and commenced
construction for several transformative capital projects designed to enhance connectivity, sustainability, and
aesthetic appeal across the city:
ӹ Pico Rivera Regional Bikeway Project along Mines
Ave: This ambitious project aims to provide
residents with a safe and accessible bikeway,
promoting alternative transportation and active
lifestyles while reducing traffic congestion and
carbon emissions.
ӹ PFOA/PFAS Water Treatment System at three (3)
facilities: A critical initiative to ensure the delivery of clean, safe, and sustainable water to our
community by addressing emerging
contaminants and improving overall water
quality.
ӹ Median Beautification on Major Corridors
Projects: This initiative enhances the visual
appeal of key transportation corridors,
incorporating drought-tolerant landscaping,
modern design elements, and sustainable
materials to create a welcoming and vibrant city
environment.
ӹ Rosemead Blvd Median and Parkway
Beautification Project: Focused on revitalizing
this essential corridor, the project integrates
aesthetically pleasing landscaping and improved
pedestrian pathways, fostering a sense of pride
and cohesion within the community.
• Advanced the design phase for key projects, including the Alebrije Dog Park and Smith Park Aquatics Center
Renovations, bringing us closer to delivering enhanced
recreational amenities for the community.
• Completed the design phase for the Water Main
Replacement Project, a crucial initiative to ensure
reliable and sustainable water infrastructure for our
residents.
• Successfully secured over $5 million in grant funding for critical traffic, transportation, and safety programs and projects, exemplifying our proactive approach
to leveraging external resources to enhance public
infrastructure and services.
INFRASTRUCTURE ACCOMPLISHMENTS
Performance Activity
Replaced 12-inch Gate Valves
Maintenance Work Orders
Replaced old meters with AMI meters
Replaced Service Connections Citywide
Pothole Repairs Work Orders
Tons of Hot Asphalt Repairs
Encroachment, Grading, Driveway etc. other permits
Inspections
FY 2021-22
2 579
560
195
563
345
304
245
FY 2022-23
2 1,065
2,485
132
1,057
774
307
530
PERFORMANCE ACTIVITY FOR INFRASTRUCTURE
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 13
HEALTH, WELLNESS AND
SAFETY ACCOMPLISHMENTS
14 City of Pico Rivera Fiscal Year 2023-2024 Accomplishments Report • Successfully implemented ShotSpotter Gunshot
Detection, Location, and Forensics System in the City.
This state-of-the-art technology is designed to improve public safety by detecting and accurately locating
gunfire incidents in real-time.
• Successfully implemented park patrol services in
collaboration with Southwest Patrol, deploying three
security officers to enhance safety in public parks and other facilities.
• Successfully adopted the PRIME Power Choice Program
(Tesla Solar + Battery Program). This program allows
residents of Pico Rivera to lease Tesla solar panels
and battery systems for a 25-year term, including
installation, maintenance, and a low, stable rate for the lease term period.
• Successfully secured additional funding and initiated the Climate Action Plan, Phase II – Vulnerabilities
Assessment and Climate Action Dashboard.
• Completed the Climate Action Plan’s Vulnerabilities
Assessment element. The Vulnerability Assessment
evaluates the susceptibility of a community to climate
risks, considering exposure and sensitivity to climate
impacts, as well as the capacity to adapt.
• Increased OhmConnect registrations with 41 new
active participants for FY 2023-24. OhmConnect is a
platform that enables and incentivizes residents to
participate in energy-saving activities.
• Implemented the Bigbelly Pilot Program at Smith Park
to enhance operational efficiency, quality of life, and environmental stewardship. Bigbelly offers solarpowered trash compacting bins that meet the City’s criteria for compliance with State recycling mandates
and efficiency.
• Developed and implemented an organic waste
diversion enforcement program to meet the State’s
January 1, 2024, milestone under the SB 1383
mandate, which requires all jurisdictions to transition from education, and outreach to enforcing through
notices and penalties.
• Secured funding to implement the XeroHome online
system, valued at $250,000. XeroHome is a digital
platform that utilizes public data on residential
properties to provide personalized recommendations
for home energy efficiency upgrades, helping
residents save on utility bills and reduce their carbon footprint.
• Successfully secured $115,000 in incentives from
the Southern California Regional Energy Network
(SoCalREN) to complete the Heat Pump Water Heater
(HPWH) Project, replacing eight units at three City
facilities
• Increased OhmConnect registrations with 41 new
active participants for FY 2023-24. OhmConnect is a
platform that enables and incentivizes residents to
participate in energy-saving activities.
HEALTH, WELLNESS AND SAFETY ACCOMPLISHMENTS
Performance Activity
Tree Trimming Work Orders
Graffiti Removal Work Orders
Square Feet of Graffiti Removed
Illegal Dumping Work Orders
Tons of Trash Collected
Service Requests
Parking Enforcement Citations
Section 8 Requests Processed
Section 8 Housing Assistance Payments
Code Enforcement Cases
Rabies Clinics with Vetcare Services and SNP LA - Pets Served Rabies Clinics with Vetcare Services and SNP LA - Vaccinations American Red Cross Blood Drives - Donors
American Red Cross Blood Drives - Pints Collected
American Red Cross Blood Drives - Lives Saved
FY 2021-22
3,035
2,683
265,000
688
450
5,897
20,979
1,398
$5,130,351
567
336
296
49 54
156
FY 2022-23
712
2,572
293,164
797
618
1,312
17,727
1,201
$5,562,831
754
547
385
88 79
237
FY 2023-24
700
3,200
300,000
700
650
1,252
20,111
1,343
$6,198,025
1,059
360
330
60 54
180
PERFORMANCE ACTIVITY FOR HEALTH, WELLNESS, AND SAFETY
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 15
COMMUNITY ENGAGEMENT
ACCOMPLISHMENTS
• Hosted the first graduating class of Emprendedor@s,
which is an 8-week in-person intensive course in
Spanish for small business owners and individuals
looking to grow their business. The City worked with
asociacion de Emprendedor@s to teach these classes
on a weekly basis.
• Successfully partnered with Rio Hondo America’s
Job Center of California (AJCC) and the Pico Rivera
Chamber of Commerce to host a job fair at Pico Park.
• The PlayPASS subsidy program successfully provided
registration fee assistance to over 60 income-eligible
youth, enabling them to participate in recreational
sports programs.
• Served over 12,000 meals for the Summer Food
Service Program
• Awarded the prestigious Purple Heart City
designation, honoring the sacrifices of our military
service members.
• Partnered with Point Man Antelope Valley to
bring the Mobile Vietnam Memorial Wall to our
community, creating an impactful and moving
tribute to those who served and sacrificed during the
Vietnam War.
• 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
Valencia Academy of the Arts.
• Successfully served approximately 586 students
through the REACH after-school program, offering
them a safe, engaging, and supportive environment
for learning and personal development.
• Successfully held six (6) Pool Days, in partnership
with local cities, to ensure residents had access
to aquatic programs, pending the Aquatic Center
renovation.
• Served approximately 20,000 in-person nutritious
meals through the Southeast Area Social Service
Funding Authority Congregate Lunch Program
• Successfully partnered with AARP to offer the AARP
Income Tax Preparation program at the Pico Rivera
Senior Center. IRS-certified volunteers electronically
filed tax returns for 200 individuals.
• Successfully hosted fourteen (14) city-wide Special
Events
• Veterans Service Officer provided direct assistance to over 290 individuals at the Pico Rivera Senior Center,
ensuring access to vital resources, benefits, and
support services for our valued veterans and their
families.
• Over 1,468 Case Worker Appointments were
provided at the Senior Center, where a bilingual case
worker assists individuals aged 50 and older. Services
include support with programs such as CalFresh food
assistance, Medi-Cal, housing, caregiver services,
DMV needs, utility assistance, and social security
benefits.
16 City of Pico Rivera Fiscal Year 2023-2024 Accomplishments Report
COMMUNITY ENGAGEMENT ACCOMPLISHMENTS
Events
Summer Camp
Winter Camp
Spring Camp
Senior Special Events - average attendance
Firework Spectacular
Movies in the Park (1 of 2)
Movies in the Park (2 of 2)
Summer Street Fest (1 of 2)
Summer Street Fest (2 of 2)
Fiestas Patrias
Halloween Spectacular
Veterans Day Ceremony
Holiday Festival and Tree Lighting
Christmas Baskets Food Distribution
Easter Eggstravaganza
Certified Farmers Market (Wednesdays)
Memorial Day Ceremony
Summer Food Program*
Vietnam Traveling Wall (FY2023-24)
PlayPASS Program (started FY2023-24)
REACH Enrollement
Senior Center Attendance*
*COVID-19 Impact
Approx. Attendees
FY 2021-22
522
103
35 46
12,000
100
300
7,500
8,000
10,000
5,000
450
10,000
1,000
6,000
20,000
450
44,870
n/a
n/a
475
6,629
Approx. Attendees
FY 2022-23
608
116
27 93
15,000
250
250
10,000
8,000
7,000
8,000
400
5,000
1,000
6,500
22,000
400
13,634
n/a
n/a
429
39,774
Approx. Attendees
FY 2023-24
201
120
26 1,612
15,000
200
200
10,000
10,000
6,000
8,000
500
5,000
1,000
1,000
22,000
700
12,441
850
66 586
62,048
PERFORMANCE ACTIVITY FOR COMMUNITY ENGAGEMENT ACCOMPLISHMENTS • Collaborated with local organizations to deliver over 20 health and wellness presentations, empowering
residents with knowledge and tools to lead healthier
lives.
• Dial-A-Ride program provided more than 14,000 trips
to residents, including over 200 new participants,
offering reliable and accessible transportation
options that meet the diverse needs of our
community.
• Successfully partnered with AJUA (Asociación de
Jaliscienses Unidos en Acción) for the Fiestas Patrias
event.
• Recreation Transit/Trips and Tours program
successfully organized and provided 23 excursions,
delivering memorable and enriching experiences for
residents of all ages.
• Published 10 issues of the city’s premier community
publication, “The Profile,” offering timely and
engaging updates on city programs, initiatives, and
events.
• Hosted four community events to educate the
public on proper organic waste diversion and gifted
composting bins, aiming to achieve 75% organic
waste reduction by 2025.
• Sponsored an outreach event at Rivera Middle
School in recognition of National Public Works
Week, showcasing the essential role of public
works services and inspiring the next generation of
community leaders.
• Secured a $20,000 grant from the National
Recreation and Parks Association (NRPA) to support
the PlayPASS program, furthering our mission to
ensure equitable access to recreational opportunities
for income-eligible youth.
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 17 Department Initiatives
LOOKING AHEAD 2025
AND WE’RE NOT DONE...
ADMINISTRATION
City Manager’s Office
• Present to City Council Revenue-Generating alternatives to aid in funding critical infrastructure and other Capital Improve Projects
• Complete the Virtual City Hall and Mobile App
Implementation
Office of Sustainability / PRIME
• Complete the Climate Action Plan.
• Initiate Climate Action Plan Phase II – Vulnerabilities Assessment and Climate Action Dashboard.
• Launch the PRIME Access Program to provide 100%
renewable energy at an additional 20% discount to 11,452 eligible CARE and FERA customers.
• Increase PRIME participation rate to 95% through active engagement and education at community events.
• Secure grant funding for constructing and installing
Electric Vehicle Charging Stations (EVCS) and associated infrastructure.
• Present the Tesla Solar + Battery Program to the City Council to consider implementing the program . This
program would allow residents of Pico Rivera to lease
Tesla solar panels and battery systems for a 25-year term, including installation, maintenance, and a low, stable rate for the lease term period.
• Host six community events to educate the public on
proper organics waste diversion and gift composting bins to achieve 75% organic waste reduction by 2025.
• Develop and implement an organic waste diversion
enforcement program to meet the upcoming January
1, 2024, milestone under the SB 1383 mandate, which
requires all jurisdictions to transition from education and outreach to enforcing through notices and penalties.
• Implement Smart Waste System Pilot Program at Smith
Park to improve operational efficiency, quality of life, and environmental stewardship.
ADMINISTRATIVE SERVICES
• Continue to implement online payments for Utility, Permit, and other payment categories
• Continue to work towards “Paperless” AP Workflows
• Implement “Paperless” Purchase Order Workflows
• Apply for the GFOA Award for Excellence in Financial Report • Apply for the GFOA Award for Distinguished Budget
Presentation
• Publish “Budget-in-Brief” brochure for print and online viewing for FY 2023-25 Budget
• Complete Cloud-based document management software
upgrade
• Continue working towards developing and implementing IT policies and processes
• Continue to upgrade Wireless Infrastructure
• Continue to upgrade Storage and backup infrastructure • Continue to upgrade City-wide Network backbone
• Continue to Upgrade Desktops/ Laptops
• Continue with Monthly IT Training
Waste Management
• Multi-year roll out of AB 1383 programing and expanded waste hauling services
City Clerk
• Implement the Public Records Request Online portal
• Continue working on Statement of Economic Interest Form 700 Automation Process
• Continue converting the City’s Electronic Content
Management System from Questys to Laserfiche
• Continue working on the Online Records Center
• Continue working on Document Conversion (scanning)
Office of Innovation and Communications
• Finalize the deliverables for the Historic Whitter Boulevard Revitalization Program, which include the adoption of a Specific Plan and Multi-Modal plan for the corridor.
• Initiate the Historic Whittier Boulevard Back Alley Paseos Project
• Advocate for project impact mitigation funding and for the preservation or inclusion of Avenida Vicente Fernandez
as part of the scope of the Whitter Narrows Dam Safety
Modification Project.
• Secure funding to complete design and environmental review of the Rosemead/Lakewood Boulevard Complete Corridor
Project.
• Establish a scope and launch the feasibility study for the Pico Rivera Commuter Rail Station in partnership with Los Angeles Metro.
• Complete the City Council Chambers Audio/Visual Upgrades • Initiate Citywide Branding and Marketing Project
• Initiate Rosemead Boulevard Master Plan
• Initiate Downtown Pico Rivera Master Plan
• Initiate River Revitalization Master Plan
18 City of Pico Rivera Fiscal Year 2023-2024 Accomplishments Report
PARKS AND RECREATION
Programs and Services
Facililty and Programming
• Complete renovations for The PAD and The Alebrije
Dog Park.
• Revise City policies and resolutions to allow for the general publics’ rental of Parks and Recreation facilities and fields.
• Complete renovations for the Senior Center patio,
Youth Center, Pico and Rivera Parks’ Gym HVAC, and
Rivera and Smith Parks’ facility roofing
• Align Department operations and programs to provide
long-term sustainability.
• Begin renovation and construction on Rio Hondo Park
Youth Center with estimated completed date of late
2024.
• Implement Rio Hondo Park Nature Program.
• Over 15,000 meals are anticipated to be served for the Summer Food Service Program.
• Complete Pico Park Outdoor Restroom
• Renovate Senior Center Indoor Restrooms
Grants
• Continue to apply for and receive grants to enhance
recreation programming.
• Identify and capitalize on opportunities to acquire and build new recreation facilities or park space.
• Work closely in partnership with S&S LaBarge to
maintain a beautiful Golf Course.
Special Events
• 14 events are scheduled for each of the following Fiscal Year: 2023-24 and 2024-2025: Firework Spectacular,
(2) Movies in the Park, (3) Summer Street Fests,
Fiestas Patrias, Halloween Spectacular, Veterans Day
Ceremony, Holiday Festival and Tree Lighting, Christmas Baskets Food Distribution, Easter Eggstravaganza,
Certified Farmers Market on Wednesday nights, and
Memorial Ceremony.
Aquatic Center
• Develop engineering plans for the Smith Park Aquatic
Center
• Begin construction early 2025.
• Continue partnership with neighboring cities for pool access: approximately 8 Pool Days.
Media and Communications
• 3 Recreation Guides and 12 Profile issues
REACH
• Service 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 Valencia Academy of the Arts
• Approx. 800 students to be served.
Senior Center
• Will host approximately 30 events: Afternoon dances,
Music on Mines, Taco Night, Mother’s Day Tea, Father’s
Day Celebration, Health and Fitness Day, Movie Nights,
Older American Month Celebration Events, etc.
Transportation
• Dial-A-Ride: over 15,000 trips expected.
• Recreation Transit/Trips & Tours: approximately 32
excursions
PUBLIC WORKS
• Construction of the Pico Rivera Regional Bikeway Project along Mines Avenue
• Fully implement PFOA/PFAS Water Treatment System
• Fiber Optics Implementation Phase
• Median Beautification on Major Corridors Project
• Rosemead Blvd Median and Parkway Beautification Project • Residential Resurfacing Program - Overlay and Reconstruction Project
• Annual Sidewalk Improvements Project
• Annual Signing and Striping Project
• HSIP Cycle 11 Grants:
• Citywide Sign Audit and Roadway Safety Sign
Enhancement Project
• Citywide Traffic Signal Enhancement Project
• School Crossings Safety Enhancement Project
COMMUNITY AND ECONOMIC
DEVELOPMENT
• General Plan Update
• Zoning Code Update
• Impact Fee Update
• Update the Filming Permit website for location scouting. • Update, educate and enforce citywide signage ordinance including window signage and banners.
• Educate and enforce the screening of rooftop equipment in residential and commercial areas.
• Rosemead Boulevard/Slauson Avenue Specific Plan
• Washington Blvd Transit Oriented Development (TOD) Specific Plan
• Whittier Blvd Business Improvement District
• Citywide Design Guidelines
• Implementation of the Mobile Home Rent Stabilization
Program
• Implementation of the Vacant Lot Ordinance
• Implementation of the Flavored Tobacco Ordinance
• Whittier Narrows Dam Flood Plan
• Emergency Operation Center Training
• Completion of the Hazard Mitigation Plan
• Continue the disposition and acquisition of property
throughout the City for redevelopment of key sites.
• Implementation of SolarApp to facilitate solar permits. • Implementation of 3di Building Permit software and
Bluebeam.
• Shopping Cart Ordinance.
• Complete the utilization of CDBG Covid funds for the Small Business Grant Program.
• Section 8 Program: Increase owner participation by increasing marketing of vouchers in the City.
HUMAN RESOURCES
• Roll out Supervisory Academy
• Update Rules and Regulations
• Negotiate MOUs for all bargaining unions
• Update all Job Descriptions
City of Pico Rivera Fiscal Year 2023-24 Accomplishments Report 19 City of Pico RIvera
6615 Passons Blvd.
Pico Rivera, CA 90660
www.pico-rivera.org
CITY OF PICO RIVERA CITY HALL
6615 Passons Boulevard
Pico Rivera, CA 90660
(562) 942-2000
CITY OF PICO RIVERA – PUBLIC WORKS DEPARTMENT
6615 Passons Boulevard
Pico Rivera, CA 90660
(562) 801-4421
CITY OF PICO RIVERA – PARKS & RECREATION DEPARTMENT
6767 Passons Boulevard
Pico Rivera, CA 90660
(562) 801-4430
Hours of Operation: 7:30 a.m. – 5:00 p.m.
Monday through Thursday, closed Fridays, weekends,
and federal holidays.
LOS ANGELES COUNTY SHERIFF’S DEPARTMENT
PICO RIVERA STATION
6631 Passons Blvd.
Pico Rivera, CA 90660
(562) 949-2421
[email protected]
Rolled Over PO FYE 2023-24
P.O. No. G/L Account # Department Vendor Description PO Amount Encumbered
Amount
2018-585 100.40.4010-54400 Public Works TKE Engineering Inc. Streets Bartolo Drainage Ditch 140,966 23,189 2022-313 100.30.3020-54400 Community Development Terra Realty Advisors Inc Professional Services - Outdoor Advertising Digital Billboard Signs 27,750 14,908 2023-005 100.30.4020-54500 Community Development Willdan Engineering Building and Safety Services 409,600 37,451 2023-005 100.30.3030-54500 Community Development Willdan Engineering Building and Safety Services 100,000 51,625 2023-160 100.80.8000-54500 Parks & Recreation Interwest Consulting Group Various Admin Projects 40,000 1,913 2023-181 100.30.3020-54400 Community Development 3Di, Inc Engage Permit Solution-Online Permitting Service 168,500 90,000 2023-208 100.30.3010-54400 Community Development Dudek Professional Services for City-wide Design Standard & Guidelines 3,301 - 2023-226 100.30.3020-54400 Community Development D/AQ Corporation dba Daum Com. Real Estate Professional Services - Real Estate Brokerage Services 45,000 45,000 2023-229 100.30.3010-54500 Community Development RSG, Inc Implementing the mobile home rent stabilization ordinance 300,000 215,583 2023-257 100.11.1110-54500 Administration Moore Iacofano & Goltsman Inc Historic Whittier Blvd Multi- Modal and Specific Plan 337,042 71,155 2023-340 100.40.4010-54500 Public Works NCM Engineering Corporation Independent review of entry road bridge over union Pacific RR 49,720 8,040 2023-408 100.11.1111-54500 PRIME Cascadia Consulting Services Change Order - Phase II of the Climate Action Plan 190,000 51,883 2024-030 100.40.4030-54655 Public Works City of Downey Street Lights/Signals - Change Order - 6/30/24 8,000 2,133 2024-069 100.15.1500-54500 Administration Mission Critical Information Systems, Inc. Purchase of Public Safety Communications, Services and Solutions 2,480 2,480 2024-090 100.15.1500-54500 Administration LA County Sheriffs Department Contract City Law Enforcement Services FY 2023-24 13,899,716 857,630 2024-127 100.40.4010-54500 Public Works Ware Malcomb Interior architecture design and engineering services 129,975 22,126 2024-166 100.11.1110-54500 Administration Ollin Strategies Consulting Services - Government Relations Consultant 90,000 16,720 2024-248 100.11.1110-54400 Administration Milagro Media Strategies Strategic Communications, Media Relations, Issues & Reputation 25,000 155 2024-256 100.40.4010-54500 Public Works Tripepi, Smith and Associates, Inc. Consultant to provide communication support for various projects 10,000 8,328 2024-265 100.40.4032-53400 Public Works Barney's Blends, Inc. Stabilizer infield mix 5,168 1,753 2024-269 100.15.1500-54500 Administration PM Law Enforcement Services, LLC Public Safety Coordinator Consulting Services 60,000 30,000 2024-281 100.30.3010-54400 Community Development RRM Design Group, a California Group Professional Services - Architectural Review 49,999 36,533 2024-304 100.30.3010-54400 Community Development Rincon Consultants Inc Professional Services - Peer review IS/MND for 3683 San Gabriel River Parkway 34,953 10,457 2024-306 100.30.3010-54400 Community Development FEHR & PEERS Professional Services - VMT Development Services 10,050 10,050 2024-333 100.80.8220-53500 Parks & Recreation A Tech Espresso & Coffee Service, Inc. Commercial grade coffee machine & water filter 11,312 90 2024-354 100.40.4010-54500 Public Works NCM Engineering Corporation Plan Check Services for entry road walls at 10016 Beverly Blvd. 21,580 21,580 2024-360 100.40.4030-53500 Public Works ACME Tools Concrete Grinder for Maintenance Division 9,036 9,036 2024-363 100.80.8102-54500 Parks & Recreation Pyro Spectaculars, Inc. Fourth of July Firework show 35,000 35,000 2024-364 100.40.4031-54500 Public Works Ortco, Inc Playground equipment repair and replacement @ Smith Park 6,000 4,250 2024-372 100.15.1500-54500 Administration Southwest Patrol, Inc. Security services at various locations across the City of Pico 59,000 31,280 2024-375 100.40.4030-54645 Public Works 2917 - NETWELL NOISE CONTROL, LLC Fabric Sound Panels to help acoustics in Pico Park Gym 27,250 27,250 2024-382 100.40.4031-54500 Public Works Generac Power Systems Inc. Load bank installation for generator at Parks & Rec building 23,500 23,500 2024-386 100.40.4010-54400 Information Technologies Environmental Systems Research Institute ArcGIS License and annual subscription for 6/1/24 - 5/31/25 3,445 3,242 2024-386 100.20.6040-52805 Information Technologies Environmental Systems Research Institute ArcGIS License and annual subscription for 6/1/24 - 5/31/25 2,500 2,353 Total Fund 100 Purchase Orders Rolled Over at FY 2023-24 1,766,691 2024-195 105.70.7320-54500 Public Works Willdan Engineering CM and Inspection services for the Golf Course fire damage 42,193 1,886 2024-305 105.70.7320-54500 Public Works Restoration Management Company Golf Course fire damage project 636,260 259,800 2023-208 180.30.3010-54400 Community Development Dudek Professional Services for City-wide Design Standard & Guidelines 510,639 19,816 2024-334 180.30.3010-54400 Community Development Harris & Associates, Inc Professional Services for Development Impact Study Fee 57,000 49,470 Total Fund 100, 105, and 180 Purchase Orders Rolled Over at FY 2023-24 2,097,663 Enclosure 3
15c
COUNCIL
MEETING
DATE
COUNCIL MEMBER REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager Reports;
Informal Action
DISCUSSION
ITEM
ACTION
ITEM DATE
STATUS:
Complete;
Pending;
On-going;
In-Progress
9/10/2024 Lutz/Lara Create Good Citizen Award Program TBD Pending
GOOD OF THE ORDER