2021 ACFR — Riverside City Council, January 18, 2022

RIVERSIDE, CALIFORNIA

COMPREHENSIVE

FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

RIVERSIDE, CALIFORNIA
ANNUAL

CITY OF RIVERSIDE, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2021

Prepared by the Finance Department
Edward Enriquez, Chief Financial Officer/Treasurer

3900 Main Street, Riverside, California 92522 (951) 826-5660

This report was printed on recycled stock

CITY OF RIVERSIDE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

INTRODUCTORY SECTION Page
Letter of Transmittal…………………………………………………………………………….………………………. i GFOA Certificate of Achievement…………………………………………………………….……………..…...…… ix Legislative and City Officials…………………………………………………………………….……………….…..… x O rganization Chart………………………………………………………………………………..…………………..… x

FINANCIAL SECTION
Independent Auditors’ Report………………………………………….……………………………………….… …… 1 Mana
gement’s Discussion and Analysis……………………………………………………………………………… 4 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position……………………………………..……………………………………………… 21 Statement of Activities…………………………………………………..…………………………………….. 22 Fund Financial Statements:

Balance Sheet
– Governmental Funds……………………………………………………………………... 23
Reconciliation of the Balance Sheet of Governmental Funds to Statement of Net Position…….….… 24 Statement of Revenues , Expenditures and Changes in Fund Balances – Governmental Funds….… 25 Reconciliation of the Statement o f Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities……………………………………………...…..

26 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund……………………………………………………………………………………….…….

27 Statement of Net Position – Proprietary Funds…………………………………………………….…….… 28 Statement of Revenue s, Expenses and Changes in Net Position – Proprietary Funds……………….. 30 Statement of Cash Flows – Proprietary Funds…………………………………………………………….. 31 Statement of Net Position/ (Deficit) – Fiduciary Funds.............................................………..………….. 33 Statement of Chan ges in Net Position/(Deficit) – Fiduciary Funds………………………..…...…….... 34 Notes to Basic Financial Statements……………………………………………………………………… …….

Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios During Measurement Period….… Schedule of Pension Plan Contributions …………………………………………………………………… Other Post-Employment Benefits (OPEB) Schedule of Changes in Total OPEB Liability and Related Ratio…………………………………………………………………………………………………….…
35 78
80 81
Combinin
g and Individual Fund Statements and Schedules:

Combinin g Balance Sheet – Nonmajor Governmental Funds……………………………………………. 83 Combining Statement of Revenues, Expenditures and Changes in F und Balances – Nonmajor Governmental Funds…………………………………………………………………………………….

85 Schedule of Revenues, Expenditures and Changes in Fund Balance s – Budget and Actual – Nonmajor Special Revenue Funds…..……………………………………………………………..….

87 CITY OF RIVERSIDE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

FINANCIAL SECTION (CONT.)

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Capital Project Funds…..……………………………………………………………..….

89 Combinin g Statement of Net Position – Nonmajor Proprietary Funds…………………………………... 91 Combining Statement of Revenue s, Expenses and Changes in Net Position – Nonmajor Proprietary Funds…………………………….……………………......…………………….

93 Combinin g Statement of Cash Flows – Nonmajor Proprietary Funds………………………….……..… 94 Combinin g Statement of Net Position – Internal Service Funds…………………………..………..……. 97 Combining Statement of Revenue s, Expenses and Changes in Net Position – Internal Service Funds………………………………………………………………………..………...

98 Combinin g Statement of Cash Flows – Internal Service Funds………………………………………..… 99 Balance Sheet – Combining General Fund Schedule……....……………………………………………. 102 Statement of Revenues, Expenditures and Changes in Fund Balanc es – Combining General Fund Schedule…………………………..……………………………………….

103
Balance Sheet – Combining Capital Outlay Fund Schedule……..………………………………………. 104 Statement of Revenues, Expenditures and Changes in Fund Balanc es – Combining Capital Outlay Fund Schedule……..………………….………………………………….

105

CITY OF RIVERSIDE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

STATISTICAL SECTION
Table
1 Net Position b y Component – Last Ten Fiscal Years…………………..……....………………….……. 107 2 Chan ges in Net Position – Last Ten Fiscal Years……………………...……….....………………………. 108 3 Fund Balances of Governmental Funds – Last Ten Fiscal Years......................................................... 110 4 Chan ges in Fund Balances of Governmental Funds – Last Ten Fiscal Years.……………………....… 111 5 Business-T ype Activities Electricity Revenues By Source – Last Ten Fiscal Years…....……………... 113 6 Governmental Activities Tax Revenues B y Source – Last Ten Fiscal Years…….………......……….... 114 7 Taxable Sales by Category – Last Ten Calendar Years………………………………………………..… 115 8 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years…...…..… 116 9 Direct and Overlappin g Property Tax Rates – Last Ten Fiscal Years………………………..………..… 117 10 Principal Propert y Taxpayers – Current Year and Nine Years Ago…..……………………..…………… 118 11 Propert y Tax Levies and Collections – Last Ten Fiscal Years…………………………….....………...… 119 12 Electricit y Sold by Type of Customer – Last Ten Fiscal Years…………………………………………… 120 13 Electricit y Rates – Last Ten Fiscal Years………………..……………………………………....……….… 121 14 Top 10 Electricit y Customers – Current Year and Nine Years Ago………………………….....……..… 122 15 Ratios of Outstandin g Debt by Type – Last Ten Fiscal Years……………………………….….……...… 123 16 Ratios of General Bonded Debt Outstandin g – Last Ten Fiscal Years…..………………….………...… 124 17 Direct and Overlappin g Governmental Activities Debt………………………………...….…………….… 125 18 Le gal Debt Margin Information – Last Ten Fiscal Years………………….……………….…………….... 127 19 Pledged-Revenue Coverage Business Type Activity Debt – Last Ten Fiscal Years……..……………. 128 20 Demographic and Economic Statistics – Last Ten Calendar Years.……………………..…………….. 129 21 Principal Employers – Current Year and Nine Years Ago………………………………...………………. 130 22 Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years...………..… 131 23 Operating Indicators by Function – Last Ten Fiscal Years……………………………………………..… 132 24 Capital Asset Statistics by Function – Last Ten Fiscal Years…..……………………………………..… 133

November 9, 2021

To the Honorable Mayor, Members of the City Council and Citizens of the City of Riverside:

It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Riverside (the City) for the fisc al year ended June 30, 2021.

This report consists of management’s representations concerning the finances of the City. Consequently, management assumes ful l responsibility for the completeness and reliability of all the information presented in this report. To provide a rational bas is for making these representations, management has established a comprehensi ve internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As manageme nt, we assert that, to the best of our knowledge and belief, th is financial report is complete and reliable in all material respects.

The City’s financial statements have been audited by Lance, Sol l & Lunghard, LLP a firm of certified public accountants. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2021. T he independent auditor’s report is presented as the first compo nent of the financial section of this ACFR.

The independent audit of the financial statements of the City w as part of the federally mandated “Single Audit” designed to me et the special needs of federal grantor agencies. The standards govern ing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements, with emphasis on those involving the administration of federal awards/grants. These reports will become available in the City’ s separately issued Single Audit Report.

Management has provided an overall analysis of the financial st atements in the form of Management ’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with this section. The City’s MD&A can be found immediately following the independent auditor’s report.

Profile of the City of Riverside

The City of Riverside, incorporated on October 11, 1883, is located in the western portion of Riverside County, about 60 miles east of Los Angeles. The City currently occupies a land area of 81.507 square miles.

The City operates under the council-manager form of government, with a seven-member council elected by ward for four-year overlapping terms. The mayor is elected at large for a four-yea r term and is the presiding officer of the Council but does not have a vote except in the case of a tie. The City Council is responsib le, among other things, for passing ordinances, adopting the bu dget, appointing committees, and hiring the City Manager, City Attorney, and City Clerk. The City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day- to-day operations of the City, and for appointing the heads of various departments. The Council is elected on a non-partisan basis.

The City provides a full range of services which include genera l government, public safety (police, fire, disaster preparednes s and building inspection), construction and maintenance of highways and streets, economic development, culture and recreation, elec tric, water, airport, refuse, sewer, and senior citizen/handicap transportation. In addition to general City activities, the Council is financially accountable for the Riverside Housing Authority, Riverside Public Financing Authority, Riverside Municipal Improvements Corporation and the Successor Agency, which was formed to hold the assets o f the former Redevelopment Agency; therefore, these entities ar e included as an integral part of the City’s financial statements. Additional information on these legally separate entities can be found in note 1 in the Notes to Basic Financial Statements.

Budgets are adopted on a basis consistent with accounting princ iples generally accepted in the United States of America. Annu al appropriated budgets are adopted for all departments within the general, special revenue and capital project funds. Formal bud gets are not employed for debt service funds because debt indenture provisions specify payments. The permanent fund is not budgeted.

Biennially, during the period December through February, depart ment heads prepare estimates of required appropriations for the following two-year budget cycle. These estimates are compiled into a proposed operating budget that includes a summary of proposed expenditures and financial resources and historical data for th e preceding budget cycle. At least thirty-five days prior to th e beginning of the fiscal year, City Manager provides the proposed budget, in writing, to the City Council for review. The operating budge t is presented by the City Manager to the City Council for review. F ollowing Council review, a public hearing is set to obtain citi zen comments. The City Council generally conducts the public hearin g and adopts the budget during one of its June meetings. The Ci ty Manager is legally authorized to transfer budgeted amounts betw een divisions and accounts within the same department. Transfer of appropriations between departments or funds and increased appropriations must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations within a fund. All appropriations shall lapse at the end of the fiscal year to the extent they have not been expended or lawfully encumbered, except for appropriations for capital projects which shall continue to their completion.

In 2020, community outreach on the biennial budget was interrupted by the pandemic which presented significant challenges to staffing levels, the ability to accommodate public meetings, and the unk nown impact of the pandemic on City finances. As a result of th ese challenges, the City temporarily shifted to a one-year budget a nd instituted an emergency budget process compliant with the Ci ty Charter. The City Council adopted an emergency budget for FY 2020/21 following a public hearing on June 16, 2020. For the general fund, this comparison is presented on page 27 as part of the basic financial statements for the governmental funds. For governmental iii

funds other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which begins on page 87.

Local economy: The City is located in Inland Southern California, which consi sts of Riverside and San Bernardino Counties (the “MSA”). The population of Inland Southern California, at appro ximately 4.6 million, is larger than 25 states. The City leads the Inland Southern California in most measures of economic power, includi ng population, income, employment, bank deposits, assessed valuation, office space and college enrollment. The population of the City is 324,302 which places it as the 12th largest in California.

The Inland Empire 2021 forecast of the 19 separate sectors would add 62,400 jobs or 4.15% to its local firms and agencies. Employment would rise from 1,501,900 to 1,564,300. This would leave the economy -3,200 jobs short of its 2019 level of 1,567,500, down -0.20%.

These jobs would have to be made up in 2022. Also, note that se veral of the sectors will remain with annual average employment below their 2019 levels by the end of 2021 as the strong growth in a few sectors like logistics, construction and health care lifts the region.

Starting in November 2019, a new consumer price index for the Riverside-San Bernardino metro area was implemented allowing year to year calculations of inflation. That month, prices in the ar ea were up 1.7% over November 2018. Los Angeles-Anaheim price increases were 3.2% that month. The two indices reached lows in the Covid recession at 0.5% for the inland area and 0.7% for t he coastal counties. In March 2021, the anticipated inflation increases in the post-Covid economy began to materialize. This was expected as prices were severally depressed in the early stages of the pandemic and complete uncertainty of its impact on the economy. Inland Empire prices rose 3.1%. In the L.A.-Orange county area, they were up 2.2% at the end March 2021.

During first calendar quarter 2021, the Inland Empire’s residen tial prices continued to climb putting them above the levels re ached before the Great Recession of 2008. Existing median home prices rose from $375,446 in March 2020 to $436,305 in 2021, up $60,860 or a very strong 16.2%. Prices are now 11.9% above the $389,924 high in 2006. New homes were $489,039 in early 2021, up 6.5% or 29,439 from $454,600 in first quarter 2020. That was $46,839 or 10.7% above the 2006 record of $437,200. These high prices are due to an absence of existing home sellers in the face of growi ng demand from families and investors. Similarly, in the new ho me market, those factors as well as increasing costs of construction contributed to the increase in home prices.

Goals and Vision: On October 20, 2020, Council approved the Envision Riverside 2 025 Strategic Plan, which is comprised of two components:
1) City Council Strategic Policy, which sets forth the prioriti es and policy direction of the City Council to advance Riversid e’s potential and to frame the work efforts over the next five year s including Vision, Cross-Cutting Threads, Strategic Priorities , Indicators and Goals; and

2) Operational Workplan, which sets forth envisioned actions to be carried out by City staff to implement the City Council Strategic Policy, as well as related metrics to track the trendlines of p rogress toward achieving City Council priorities and includes t he Actions and Performance Measures which will be evaluated and up dated by the City Manager on an as-needed basis in conjunction with the City’s budget cycle.

Envision Riverside 2025 Strategic Plan Vision: Riverside is a c ity where every person is respected and cherished, where equity is essential to community well-being, where residents support one another, and where opportunities exist for all to prosper. In Riverside, everyone comes together to help the community, econo my and environment reach their fullest potential for the public good.

Cross-Cutting Threads: Community Trust, Equity, Fiscal Responsibility, Innovation, Sustainability and Resiliency Strategic Priorities and Indicators:

Arts, Culture and Recreation
Indicators:

Community Well-Being Indictors: Economic Opportunity Indicators:
• Lifelong Learning
• Shared Uses and Partnerships
• Arts and Cultural Opportunities
• Access to Parks, Trails and Open
Spaces
• Programs and Amenities

• Housing Supply and Attainability
• Public Safety
• Public Health
• Placemaking
• Homelessness
• Household Resilience
• Workforce Development
• Business Development and Success
• Local Investment
• Regional Partnerships
• Economic Mobility

Environmental Stewardship Indicators: High Performing Government Indicators:

Infrastructure, Mobility, and
Connectivity Indicators:
• Water Quality, Supply, Efficiency and
Reliability
• Climate Resiliency, Carbon Footprint
and Air Quality
• Usage, Condition and Quality of
Public Lands
• Local Food System Vitality
• Environmental Justice
• Renewable Resource Usage and
Waste

• Community Centered Services
• Adaptive Organization
• Financial Health
• Equity in Delivery of City Services
• Civic Engagement
• City Team Engagement

• Access to Transportation Choices
• Infrastructure Quality and Reliability
• Outside Investment
• Smart City Ecosystem
• Greening Facilities, Fleet and
Systems

As the City implements Priority Based Budgeting strategies, whi ch will guide the budget development process for future fiscal years, the City Council’s Strategic Priorities will play a critical role in helping the City make decisions on how to allocate resources.

Long-term financial planning: The impact of the COVID-19 pandemic still looms over the City a nd will continue to impact long term decision making. On March 4, 2020, Governor Newsom declared a state of emergency in California because of COVID-19. On March 13, 2020, the City of Riverside declared a local emergency and closed non-essential facilities to the public. Temporary stay-a t-home orders followed from the State and City in mid-March 2020 and w ere again reinstated in December 2020 for approximately seven weeks. Fortunately, the impact of the pandemic to the City’s budget has not been as dire as originally expected. v

On June 16, 2020, the City Council approved the Fiscal Year 202 0-21 (Emergency) Annual Budget. The adopted budget was the product of a truncated budget process prompted by the COVID-19 pandemic and the Stay-at-Home Order that limited the City’s ability to receive the usual level of engagement in the budget process. Further, the impacts of the COVID- 19 pandemic on City finances were largely unknown at the time of budget adoption due to the stay- at-home order and uncertainty at all levels of the economy. On June 22, 2021, the City Council adopted the City’s Fiscal Year 2021- 22 Annual Budget comprised of $1.1 billion in funding for cityw ide operations and $116 million for capital projects. The FY 2021-2 2 one-year budget is a bridge between the FY 2020-21 Emergency Budget developed during the pandemic and the upcoming FY 2022-2 4 Biennial Budget which will embrace the concepts of Priority Based Budgeting (PBB) to align City resources more closely with the strategic priorities outlined in the City’s Strategic Plan 2025.

Coronavirus Aid, Relief, and Economic Security Act (CARES) : On March 27, 2020, President Trump signed the Coronavirus Aid , Relief, and Economic Security (CARES) Act into law to provide e mergency appropriations during the Coronavirus pandemic (COVID- 19). The CARES Act represented the third package of assistance from the federal government, providing $2.2 trillion in economic relief to individuals, families, businesses, and nonprofit organizatio ns. Funding for governments was also included through the creat ion of the Coronavirus Relief Fund, which allocated $150 billion to various State, local and Tribal governments. The Coronavirus Relief Fund (CRF) was distributed to State, local and Tribal governments ba sed on relative population. Local governments with a population of 500,000 or more were eligible to receive a direct allocation fr om the CRF. Given the population threshold, the City was not el igible to receive a direct allocation.

Throughout the COVID-19 pandemic, the Big City Mayors (BCM) met with federal and state elected officials to advocate for much needed assistance. As part of this effort, the BCM engaged the State’s legislative leaders and Governor to solicit support for the creation of a dedicated funding opportunity for the seven citie s (Long Beach, Oakland, Bakersfield, Anaheim, Santa Ana, Rivers ide, and Stockton) of the coalition that did not receive a direct allocation from the CRF due to population size. This targeted advocacy effort resulted in the inclusion of a specific $225 million set-aside for these seven cities as part of the State budget with the City of Riverside receiving an allocation of approximately $28 million. The CARES Act spending plan was approved by City Council on August 4, 20 20 and on July 13, 2021, a final CARES Act expenditure report was presented to City Council. The CARES Act grant provided much needed assistance to our community and below are some of our achievements:

Housing and Homelessness
Programming benefiting the Housing/Homelessness category included affordable housing projects, shelter services, and Outreach services in response to COVID-19. Key performance areas included:
6 Housing Units 51 Project Room Key
Participants
Increased Outreach Services Assistance for 112 Tenants
Rehabilitation of six units
along 10th Street to support
permanent housing for
formerly homeless individuals.

Local Program providing
individuals with temporary
housing and support services.
 37 Encampments
 17 Housed Individuals
 60 cases managed
Rental Assistance Program
through Fair Housing Council.

Community and Business Support
Programs benefiting the Community and Business Support category included a wide range of key areas including small business grants, distance learning, emotional and social support, suppor t to families and children, food resiliency, and non-profit ass istance.

Community and Business Support highlights include:

Food Resiliency
Programs
Virtual Park Programs Distance Learning
Resources
Socially Distant Family
Events
Other Support
 59,640 Food Boxes
Distributed
 30 Pantries
 17 Community
Distribution Sites
 2,103 Farmers
Market Buck Match
Transactions
 600 Senior Meals
Delivered
 2,500 Program
Participants
 233 Virtual Classes
and 5k
Running/Walking
Activities
 596 iPads
 2,700 Hot Spots
 8 New Public Wi-Fi
Access Points
 Tutoring for 360
Students
 4,830 School
Supply and Story
Time kits
 Drive thru Holiday
Events
 Zoom visits with
Santa
 598 Small Business
Grants
 5,524 Curbside
Activity Boxes
 Childcare Subsidy
for 48 Families of
Essential Workers
 Diaper Distribution
for 480 Families
 21 Computers
Delivered to Senior
Housing Complexes
to Provide Social
and Emotional
Support.
 114 Micro-Grants
for Childcare and
Social Service
Facilities
 150 Local Nonprofit
Grant Subsidies 290
Families Received
Baby Formula

vii

Organizational Needs for COVID-19 Compliance
Expenditures associated with the Organizational Needs for COVID-19 Compliance were aligned with operational needs and organizational compliance to gubernatorial Executive Order N-33-20 and all State Department of Public Health orders. Key performance areas include:

Operational Equipment Automation Tools Facility Readiness Social Distancing Signage  1,441 laptops
 100 Rugged Field Devices
 700 Monitors
 672 Docking Stations
 400 Headsets
 100 Webcams
Software and Systems
replacing paper processes
allowing telecommuting
including 100 Adobe e-sign
license and 200 cybersecurity
patches
 Installation of 60 wall
mount temp check units
 100 Handheld
Temperature Units
 1,728 HVAC Filters
 9 Portable Handwashing
Stations
 Window Wraps
 Door Hangers
 Floor Stickers
 Directional Signs
 Physical Distance Markers

American Rescue Plan Act (ARPA): On March 11, 2021, President Biden passed the $1.9 trillion American Rescue Plan Act (ARPA) that is sending checks to families and offering small business support to drive up demand and counter the country’s high unemployment.

The ARPA established Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund, which provides a combined $350 billion in assistance to eligible state, local, t erritorial, and Tribal governments to assist in the economic an d health recovery by providing resources to address impacts resulting from the crisis. The City will receive one-time fund of approximately $73.5 million from ARPA with the first installment of $36.7 million r eceived in June 2021 and the remainder will be received in June 2022.

Based on the Interim Rule, funding can be utilized for the following:

1. Support public health expenditures: address broad range of p ublic health needs across COVID-19 mitigation, medical expense, behavioral healthcare, and public health resources

2. Address negative economic impacts caused by the public healt h emergency: delivering assistance to workers and families, supporting small businesses, expediting tourism recovery effort s to include travel and hospitality sector, and rebuilding publ ic sector capacity.

3. Replace public sector revenue loss.

4. Serving the hardest-hit communities and families: addressing health disparities and the social determinants of health, investment in housing and neighborhoods, addressing educational disparities, and promoting health childhood environments.

5. Provide premium pay for essential workers.

6. Invest in water, sewer, and broadband infrastructure.

viii

The City’s proposed expenditure plan for the first allocation o f funding was presented to City Council on October 5, 2021 for review and input. The final expenditure plan for the first allocation is expected to be approved by City Council by the end of calend ar year 2021. The second allocation will be brought for consideration to City Council at a future date. Ongoing evaluations of projects/programs will be conducted to ensure that funding is being expended in t he most impactful way. In addition to ongoing assessments, curr ent funding will be used to start programs in phases and will allow for programs to be structured for continued benefits moving forward.

Awards and Acknowledgements

The Government Finance Officers Association (GFOA) awarded a Ce rtificate of Achievement for Excellence in Financial Reporting (Program) to the City for its annual comprehensive financial re port (ACFR) for the fiscal year ended June 30, 2021. This was t he fifteenth consecutive year that the City has received this pres tigious award. The City received this award for publishing an e asily readable and efficiently organized ACFR that satisfied both Gen erally Accepted Accounting Principles (GAAP) and applicable leg al requirements. This award is valid for a period of one year only . We believe that our current ACFR continues to meet the Progra m’s requirements and we are submitting it to the GFOA again this year.

The Government Finance Officers Association (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City for its Popular Annual Financial Report ( PAFR) for the fiscal year ended June 30, 2019. The City receive d the award for the third time for the June 30, 2019 report and has c ontinued to prepare an award-winning report. The City is awaiti ng the award results for the PAFR for fiscal year ended June 30, 2020. This is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. The Award is for a period of one year only. T he City will continue to participate in the program.

Budget Presentation Award: The City received the GFOA’s Distinguished Budget Presentation Award for its annual budget document for the fiscal year beginning July 1, 2020. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department and oversight from the City Manager’s Office. We would like to express our appreciation to all members of the department who assisted and contributed to its preparation. Credit also must be given to the Budget Engagement Commission and Mayor and the City Council for their unfailing support for maintaining the hi ghest standards of professionalism in the management of the Cit y’s finances.

Respectfully submitted,

Edward Enriquez
Chief Financial Officer/City Treasurer

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 Riverside for our Annual
Comprehensive Financial Report for the fiscal year
ended June 30, 2020.

In order to be awarded a Certificate of Achievement, a
governmental unit must publish an easily readable and
efficiently organized Annual Comprehensive Financial
Report, whose contents conform to program standards.

Such reports must satisfy both generally accepted
accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to
meet the Certificate of Achievement Program
requirements, and we are submitting it to GFOA to
determine its eligibility for another certificate.
x

LEGISLATIVE OFFICIALS
Patricia Lock Dawson ..................................................................... Mayor Erin Edwards ................................................... Councilmember – Ward 1 Clarissa Cervantes .......................................... Councilmember – Ward 2 Ronaldo Fierro ................................................ Councilmember – Ward 3 Chuck Conder ................................................. Councilmember – Ward 4 Gaby Plascencia ............................................. Councilmember – Ward 5 Jim Perry ......................................................... Councilmember – Ward 6 Steve Hemenway ............................................ Councilmember – Ward 7

CITY OFFICIALS
Al Zelinka .......................................................................... City Manager* Rafael Guzman ................................................... Assistant City Manager Lea Deesing ........................................................ Assistant City Manager Kris Martinez ........................................... Interim Assistant City Manager

Donesia Gause ....................................................................... City Clerk* Phaedra Norton .................................................................. City Attorney* Todd Corbin ........................................ General Manager - Public Utilities Larry V. Gonzalez .............................................................. Chief of Police Carl Carey ....................................................... General Services Director Erin Christmas ................................................................. Library Director Randy McDaniel .. Interim Parks, Recreation & Community Svcs Director Edward Enriquez .................................. Chief Financial Officer/Treasurer Rene Goldman .............................................. Human Resources Director George Khalil ..................................................... Chief Innovation Officer Gilbert Hernandez ..................................... Interim Public Works Director Michael Moore .......................................................................... Fire Chie f
Robyn Peterson ............................................................. Museum Director David Welch ................... Community & Economic Development Director

*Appointed by City Council

203 N. Brea Blvd., Suite 203
Brea, CA 92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022

INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and Members of the City Council
City of Riverside, California

Report on the Financial Statements

Opinions

We have audited the accompanying financial statements of the go vernmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Riverside, California, (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, 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 Riversi de, California, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then en ded 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 ge nerally 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to m eet our other ethical responsib ilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to pro vide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of these 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 date of the financial statements. 1 To the Honorable Mayor and Members of the City Council City of Riverside, California

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. 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 the GAAS will always detect a material misstatement when it exists. The risk of not det ecting 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, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skept icism 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 responsible to those risks. Such procedures i nclude examining, on a test basis, evidence regarding the amoun ts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the au dit 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 governan ce 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.

Other Reporting Responsibilities

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis , the schedule of changes in net pension liability and related ratios, the schedu le of pension plan contributions, and the schedule of changes i n total OPEB liability and related ratios be presented to supplement the basic financi al statements. Such information is the responsibility of manage ment 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 auditing standards generally accepted in the U nited States of America, which consisted of inquiries of management about th e methods of preparing the information and comparing the inform ation for

2 To the Honorable Mayor and Members of the City Council City of Riverside, California

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.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that co llectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were de rived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic fi nancial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying account ing and other records used to prepare the basic financial state ments or to the basic financial statements themselves, and other additional procedure s in accordance with auditing standards generally accepted in t he United States of America. 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.

The introductory and statistical sections have not been subject ed to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 9, 2021 on our consideration of the City’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’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’s internal control over financial reporting and compliance.

Brea, California
November 9, 2021

3 (amounts expressed in thousands)

Management’s Discussion and Analysis
(Unaudited)

As management of the City, we offer this narrative overview and analysis of financial activities for the fiscal year ended Jun e 30, 2021.

We encourage readers to consider the information presented here in conjunction with additional information furnished in our le tter of transmittal, which can be found on page i of this report. All a mounts, unless otherwise indicated, are expressed in thousands of dollars (0,000).

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introdu ction to the City’s basic financial statements, comprised of th ree components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains certain supplementary information.

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 private-sector business.

The statement of net position presents information on all of the City’s assets, liabilities, and deferred inflows and outflows of resources, with the difference reported as net position. Over time, increa ses or decreases in the City’s net position may serve as a usef ul indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net position chang ed 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 result in cash flows in future fisc al periods (e.g., uncollected taxes and earned but unused vacation leave).

The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergo vernmental revenues (governmental activities) from other functions that are intended to recover all or a si gnificant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City include general gove rnment, public safety, highways and streets, and culture and recreation. The business-type acti vities of the City include Electric, Water, Sewer, Airport, Ref use, Transportation, Public Parking and Civic Entertainment Funds.

The government-wide financial statements include the activities of the City and three blended component units, which consist of the Riverside Housing Authority, Riverside Public Financing Authori ty, and the Riverside Municipal Improvements Corporation. Although legally separate, these entities function for all practical purposes as departments of the City and therefore have been blende d as part of the primary government. The Successor Agency to the Redevelopme nt Agency of the City of Riverside (Successor Agency) is also included as a fiduciary component unit since it would be misleading to exclude the Successor Agency due to the nature and sign ificance of the relationship between the City and the Successor Agency. The activity of the Successor Agency is reported with the City’s fiduciary 4 (amounts expressed in thousands)

funds, which is not included in the government-wide statements since the resources of those funds are not available to support the City’s own programs.

Both the Governmental Activities and the Business-Type Activities are presented on the accrual basis of accounting, a basis of accounting that differs from the modified accrual basis of acco unting used in presenting governmental fund financial statement s. Note 1 of the Notes to Basic Financial Statements fully describe these bases of accounting. Proprietary funds, discussed below, also follow the accrual basis of accounting.

The government-wide financial statements can be found on pages 21-22 of this report.

Fund financial statements A fund is a grouping of related accounts that is used to maintain cont rol over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to en sure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categor ies:
governmental, proprietary, and fiduciary.

Governmental funds Governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike the 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.

It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Reconciliations to facilitate this comparison are provided for both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances. The major reconcil ing items relate to capital assets and debt. In the Governmental F unds, acquisitions of capital assets are treated as “expenditures” because upon purchase of a capital asset, cash used for the acquisition is no longer available for other purposes. The issuance of de bt provides cash, which is now available for specified purposes. According ly, at the end of the fiscal year, the unrestricted fund balances of the Governmental Funds reflect spendable resources available for appropriation by the City Council. Spendable balances are not pr esented on the face of the government-wide financial statements.

The City maintains fifteen individual governmental funds. Infor mation is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Capital Outla y Fund, and General Debt Service Fund which are major funds. Data from the other twelve governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and can be found on pages 83-86 in this report.

The City adopted an annual appropriated budget for its General Fund for the Year ended June 30, 2021. A budgetary comparison statement has been provided to demonstrate compliance with this budget.

The governmental fund financial statements can be found on pages 23-26 of this report. 5 (amounts expressed in thousands)

Proprietary funds The City maintains two different types of proprietary funds, enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for Electric, Water, Sewer, Airport, Refuse, Transportation, Public Parking and Civic Entertainmen t services.

Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for self-insured in surance programs, central stores and its fleet of vehicles. Because these services predominantly benefit governmental rather than busines s-type functions, they have been included within governmental activities in the government-wide financial statements. Internal service f unds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting.

Proprietary funds provide the same type of information as the g overnment-wide financial statements (business-type activities ), only in more detail. The proprietary fund financial statements provide separate information for the Electric, Water and Sewer operatio ns, all of which are considered to be major funds of the City. The five re maining proprietary funds noted above are combined into a single, aggregated presentation. All internal service funds are also combined into a single, aggregated presentation in the proprietar y fund financial statements. Individual fund data for the non-major proprietary funds and the internal service funds is provided in t he form of combining statements and can be found on pages 91-100 in this report.

The basic proprietary fund financial statements can be found on pages 28-32 of this report.

Fiduciary funds Fiduciary funds are used to account for situations where the C ity’s role is purely custodial. Fiduciary funds are not reflected in the government-wide financial statement because th e resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The fiduciary fund financial statements can be found on page 33-34 of this report.

Notes to Basic Financial Statements The notes 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 Basic Financial Statements begin on page 35 of this report.

Government-wide Financial Analysis

The following table presents a summarization of the City’s asse ts, liabilities, deferred inflows and outflows, and net positio n for its governmental and business-type activities. As noted earlier, a government’s net position may serve over time as a useful indi cator of its financial position.

6 (amounts expressed in thousands)

Total
2021 2020 2021 2020 2021 2020
Current and other assets 503,107 $ 403,430 $ 724,367 $ 768,306 $ 1,227,474 $ 1,171,736 $ Capital assets, net 1,337,100 1,250,038 1,976,364 1,971,688 3,313,464 3,221,726 Total Assets 1,840,207 1,653,468 2,700,731 2,739,994 4,540,938 4,393,462 Deferred Outflows of Resources 100,355 434,386 70,694 192,756 171,049 627,142 Current liabilities 112,061 57,827 57,503 55,635 169,564 113,462 Long-term liabilities 854,428 1,140,370 1,610,535 1,743,630 2,464,963 2,884,000 Total Liabilities 966,489 1,198,197 1,668,038 1,799,265 2,634,527 2,997,462 Deferred Inflows of Resources 5,745 23,082 4,549 33,674 10,294 56,756 Net Position:

Net inv estment in capital assets 1,170,232 1,081,991 756,116 751,865 1,926,348 1,833,856 Restricted 164,809 153,806 78,885 75,170 243,694 228,976 Unrestricted (366,713) (369,222) 263,837 272,776 (102,876) (96,446) Total Net Position 968,328 $ 866,575 $ 1,098,838 $ 1,099,811 $ 2,067,166 $ 1,966,386 $ Governmental Business type
Activ ities Activ ities

The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2,067,166 at June 30, 2021, an increase of $100,780 from June 30, 2020.

The City’s net position reflects its investment in capital assets (i.e., land, buildings, machinery, equipment and infrastructu re), net of any related debt that is still outstanding used to acquire those assets and net of unspent bond proceeds and cash held in bond rese rve accounts. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

An additional portion of the City’s net position 12% represents resources that are subject to external restrictions on how they may be used. The remaining unrestricted net position may be used to meet the government’s ongoing obligations to citizens and creditors. Of this amount, $263,837 is held by the business-type activities and $(366,713) net deficit is held by the governmental activities.

Unrestricted net position in the amount of $(102,876), a net position decrease of (7)% from prior year, is the change in resour ces available to fund City programs to citizens and debt obligations to creditors. The negative unrestricted net position is primarily the result of the reporting of the City’s net pension liability in accordance with an accounting standard issued by the Government Accounting Standards Board (GASB) that relates to pension activity; Statement No. 68, “Accounting and Financial Reporting for Pensions – a n amendment of GASB Statement No. 27.”
7 (amounts expressed in thousands)

Governmental activities increased the City’s net position by $101,753 to $968,328 for the year ended June 30, 2021.

On the following page is a condensed summary of activities of t he City’s governmental and business-type operations for the period ended June 30, 2021 with the prior fiscal year presented for comparat ive purposes. Also included in the following analysis are revenue and expense graphs to aid in understanding the results of the current year’s activities.

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8 (amounts expressed in thousands)

Total
2021 2020 2021 2020 2021 2020
Revenues:

Program Rev enues:

Charge for serv ices 34,106 $ 38,060 $ 555,267 $ 546,945 $ 589,373$ 585,005 $ Operating Grants and Contributions 64,405 21,779 3,976 3,473 6 8,381 25,252 Capital Grants and Contributions 28,284 19,945 12,273 13,979 4 0,557 33,924 General Rev enues:

Sales taxes 150,321 128,653 - - 150,321 128,653 Property taxes 71,986 72,609 - - 71,986 72,609 Other taxes and fees 41,905 40,446 - - 41,905 40,446 Inv estment income 4,969 10,185 681 19,838 5,650 30,023 Other 6,487 9,802 11,986 8,211 18,473 18,013 Total Revenues 402,463 341,479 584,183 592,446 986,646 933,925 Expenses:

General gov ernment 97,927 63,651 - - 97,927 63,651 Public safety 219,136 222,061 - - 219,136 222,061 Highways and streets 42,034 46,983 - - 42,034 46,983 Culture and recreation 37,693 37,400 - - 37,693 37,400 Interest on long-term debt 19,083 13,181 - - 19,083 13,181 Electric - - 366,165 350,667 366,165 350,667 Water - - 71,738 73,742 71,738 73,742 Sewer - - 61,029 62,961 61,029 62,961 Entertainment - - 11,885 2,304 11,885 2,304 Airport - - 2,326 26,549 2,326 26,549 Refuse - - 28,428 4,607 28,428 4,607

Transportation - - 4,623 4,628 4,623 4,628 Public parking - - 4,684 21,584 4,684 21,584 Total Expenses 415,873 383,276 550,878 547,042 966,751 930,318 Increase (Decrease) in Net Position (13,410) (41,797) 33,305 45,404 19,895 3,607 Transfers, net 34,879 35,324 (34,278) (35,324) 601 - Change in Net Position 21,469 (6,473) (973) 10,080 20,496 3,607 Net position - Beginning of Year, as previously stated 866,575 873,048 1,099,811 1,089,731 1,966,386 1,962,779 Prior period adjustment 80,284 - - - 80,284 - Net Position, Beginning of Year, as restated 946,859 873,048 1,099,811 1,089,731 2,046,670 1,962,779 Net Position, End of Year 968,328$ 866,575$ 1,098,838$ 1,099,811$ 2,067,166$ 1,966,386$ Governmental Business type
Activ ities Activ ities
9 (amounts expressed in thousands)

Governmental activities. Total change in net position for governmental activities increased by $21,469 while prior fiscal year decreased by $(6,437). Key elements of this year’s activity in relation to the prior year are as follows:

Revenues:
 While variances between years exist for the various revenue categories, the total net increase was $60,984 or 18%. This is lar gely attributable to increases in operating and capital grants and cont ributions of $50,965, primarily from additional funds receive d from the CARES Act ($28,117), COVID related grants ($6,809), homeless related grants ($6,636) and other miscellaneous grants ($9,403).

The increase to sales taxes of $21,668 was primarily from increased sales of vehicles, consumer goods and increases in building and construction. The decrease in charges for services of $(3,954) is primarily attributed to decreases in charges in fees and serv ices due to the COVID 19 pandemic and various shutdowns.

Expenses:
 While variances between years exist for the various expense functions, the total net increase was $32,597 or 8%. This is prima rily related to the Parada II Litigation ($24,000). More information can be found on page 75 of this report. Also, an increase of $5,902 of interest on long-term debt which is primarily attributable to the issuance of the 2020 Pension Obligation Bond in June of 2019.

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10 (amounts expressed in thousands)

Program Revenues and Expenses – Governmental Activities – Fiscal Year Comparison 2021 vs. 2020

11 (amounts expressed in thousands)

Revenues by Source – Governmental Activities – Fiscal Year Comparison 2021 vs. 2020

2020 2021
12 (amounts expressed in thousands)

Business-type activities . Total net position for business-type activities decreased by $(973) while prior fiscal year increased by $10,080. Key elements of this year’s activity in relation to the prior year are as follows:

 Charges for services slightly increased from prior year result ing in an increase of $8,322 or 1.5%. Water charges for service s increased $10,085 due to increases in consumption and water con veyance revenue and Electric Fund charges for services increased by $7,132 primarily due to an increase in consumption of electricity. Conversely, the Civic Entertainment Fund charg es for services decreased by $10,852 due to the ongoing COVID-19 pandemic and closure of the various entertainment venues.

 Overall expenses increased by $3,836 or 0.7%. The Electric Fund had increased operating expenses of $15,866, primarily due to increase personnel services and maintenance and operation costs ; while the Water and Sewer Funds showed a decrease in operating costs of $(1,878) and $(1,820), respectively primary due to a decrease in personnel costs.

Revenues by Source – Business-Type Activities – Fiscal Year Comparison

13 (amounts expressed in thousands)

Financial Analysis of the City’s Funds

Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s f inancing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

The following table summarizes the balance sheet of the City’s General Fund, Capital Outlay Fund, and Other Governmental Funds . As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.

2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Total assets $ 201,980 $ 172,931 $ 54,804 $ 64,886 $ 13,165 $ 13,421 $ 169,940 $ 105,538 $ 439,889 $ 356,776 Total liabilities $ 38,774 $ 35,513 $ 3,674 $ 5, 657 $ 1,873 $ 2,211 $ 67,553 $ 13,167 $ 111,874 $ 56,548 Deferred inflows of resources
Unav ailable rev enue 3,559 3,549 772 211 - - 47,556 42,898 51,887 46,658 Fund balances
Nonspendable 1,870 1,446 - - - - 1,477 1,510 3,347 2,956 Restricted 10,697 10,699 50,358 59,018 11,292 11,210 53,354 47,990 125,701 128,917 Committed 62,400 59,280 - - - - - - 62,400 59,280 Assigned 24,890 21,260 - - - - - - 24,890 21,260 Unassigned 59,790 41,184 - - - - - (27) 59,790 41,157 Total fund balance 159,647 133,869 50,3 58 59,018 11,292 11,210 54,831 49,473 276,128 253,570 Total liabilities, deferred
inflows and fund balances $ 201,980 $ 172,931 $ 54,804 $ 64,886 $ 13,165 $ 13,421 $ 169,940 $ 105,538 $ 439,889 $ 356,776 General Fund Capital Outlay Fund Governmental Funds Governmental FundsGeneral Debt Service

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $276,128 an increase of $22,558 compared to the prior year. Additionally, 1% of the fund balance $3,347 is nonspendable, which comprises the portion of fund balance that cannot be spent due to form. $125,701 or 46% of f und balance is restricted, which represents the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or gran tors. Committed fund balance of $62,400 or 23% of the fund balance was set aside for economic contingencies. Committed for economic contingenc ies consists of 20% of the 2021-22 General Fund adopted expenditure budget of $287,000 or $57,400 and $5,000 for General Fund – Measure Z. $24,890 or 9% of fund balance is constrained by the City’s intent to utilize fund balance for specific purposes, wh ich is reported within the fund balance classification assigned. The remainder of the fund balance $59,790 or 22% is unassigned, meaning it is available for spending at the City’s discretion. The City’s governmental funds reported combined total assets of $439,889 at June 30, 14 (amounts expressed in thousands)

2021, an increase of $83,113 compared to the prior year. Liabil ities and deferred inflows of resources amounted to $163,761, a n increase of $60,555 from prior year.

The General Fund is the principal operating fund of the City. At the end of the current fiscal year, total fund balance equaled $159,647, in comparison to $133,869 in the prior year. The increase in fund balance is primarily due to increased sales and use taxes as we ll as the cost saving efforts by City Departments. The Capital Outlay Fun d is used to account for the acquisition or construction of major capital facilities. The total fund balance was $50,358, compared to $59,018 in prior year. The decrease was due to increased capital p rojects.

The General Debt Service Fund accounts for the accumulation of resources and payment of long-term debt principal and interest. The total fund balance was $11,292, compared to $11,210 in prior ye ar. The Other Governmental Funds are made up of various non-major funds. The fund balance was $54,831, compared to $49,473 in pri or year. The increase was mainly due to the increase in the Gas Tax Special Revenue Fund of $2,118 and the Housing Special Revenue Fund of $1,945 in the current year.

Proprietary funds. The City’s proprietary funds provide the same type of informa tion found in the government-wide financial statements, but in more detail.

Unrestricted net position of the Electric, Water and Sewer Fund s at the end of the year amounted to $201,521, $6,220, and $63,285 respectively. The unrestricted net position for the Electric, Water and Sewer Funds in the prior year was $221,466, $(1,210), and $57,371, respectively. The decrease in unrestricted net position of the Electric Fund ($19,945) was primarily attributable increase in personnel services and maintenance and operations expenses. The increase in unrestricted net position of the Water Fund ($7,430) was pri marily attributable to increases in charges for services. The increase in unrestricted net position for the Sewer Fund ($5,914) is pr imarily a result of increased charges for services and reduced personnel service costs.

15 (amounts expressed in thousands)

General Fund Budgetary Highlights
Original Final Actual Variance with
Budget Budget Amounts Final Budget
Total Revenues $256,238 $256,202 $300,372 $44,170
Expenditures:

General Government 11,241 22,126 4,612 17,514
Public Safety 205,919 196,447 190,115 6,332
Highways & Streets 19,152 18,253 16,203 2,050
Culture & Recreation 31,578 32,699 26,104 6,595
Capital Outlay 281 3,394 692 2,702
Total Expenditures 268,171 272,919 237,726 35,193
Excess (deficiency) of revenues over (under) expenditures (11,933) (16,717) 62,646 79,363 Other financing sources (2,458) (22,400) (36,868) (14,468) Net change in fund balances (14,391) (39,117) 25,778 64,895 Fund balance - Beginning of Year 133,869 133,869 133,869 0 Fund balance - End of Year $119,478 $94,752 $159,647 $64,895

The primary reason for final budgeted revenues and expenditures increasing from the Original Budget is due to the City passing a n emergency budget due to the unknown effects of the COVID 19 pandemic.

Actual amounts differed from the final fund budget are as follows:

Actual expenditures were less than final budgeted amounts by approximately $35,193. This is primarily associated with unspent appropriations for projects that were not completed during the year (which are carried over to the next fiscal year) as well a s the cost saving efforts by City Departments.

Capital Asset and Debt Administration

Capital assets. The City’s investment in capital assets for governmental and business-type activities as of June 30, 2021 amounted to $3,313,464 (net of accumulated depreciation). This investment includes land, intangibles, buildings and improvements, machiner y and equipment, park facilities, roads, highways, and bridges. The total increase in the City’s net capital assets for the current fiscal year was $91,738; an increase of $87,062 for governmental activities ($80,284 is related to a prior period adjustment for land and infrastructure additions due to a change in calculation of street mileage from a system upgrade which maintains street mileage) and an increa se of $4,676 for business-type activities.
16 (amounts expressed in thousands)

Major capital improvements during the current fiscal year included ongoing projects: consisting primarily of roads of $26,313; sewer mains and tertiary treatment plant of $9,129; $9,665 in Water Utility projects primarily related to main replacements, booster station replacement, well projects and pump station replacements and meters; and $30 ,167 in Electric Utility capital improvements primarily related t o substation equipment, meter purchases, trans poles and fixtures, and street lighting.

City of Riverside’s Capital Assets
(net of depreciation)
2021 2020 2021 2020 2021 2020
Land $376,616 $338,504 $100,111 $99,985 $476,727 $438,489 Construction in progress 30,820 68,398 126,187 104,990 157,007 173,388 Buildings 111,601 72,053 473,476 482,697 585,077 554,750 Improvements other than
Buildings 107,316 117,693 1,213,090 1,218,014 1,320,406 1,335,707 Machinery and equipment 33,113 34,825 32,712 32,091 65,825 66,916 Intangibles - 3 30,788 33,911 30,788 33,914 Infrastructure 677,634 618,562 - - 677,634 618,562 Total $1,337,100 $1,250,038 $1,976,364 $1,971,688 $3,313,464 $3,221,726 Governmental Business Type
Activities Activities Total

Additional information on the City’s capital assets can be found in note 5 on page 47 of this report.

17 (amounts expressed in thousands)

Long-term debt. At the end of the current fiscal year, the City had total deb t outstanding of $2,062,498 which includes bonded debt of $1,849,092.

City of Riverside’s Long-Term Debt

The City’s total debt decreased by $(46,484) or (2.2)% during the current fiscal year. The net decrease is primarily related to payments on long term debt.
2021 2020 2021 2020 2021 2020
General Obligation Bonds $6,478 $7,874 -$ -$ $6,478 $7,874 Pension Obligation Bonds 352,824 364,633 116,227 119,625 469,051 484,258 Certificates of Participation 90,215 94,802 27,213 28,483 117,428 123,285 Lease Revenue Bonds 72,471 75,964 7,059 7,473 79,530 83,437 Revenue Bonds - - 1,176,605 1,212,914 1,176,605 1,212,914 Loans Payable 457 899 - - 457 899 Notes Payable - - 64,678 69,519 64,678 69,519 Contracts Payable - - 1,067 1,019 1,067 1,019 Capital Leases 14,922 18,207 2,354 3,633 17,276 21,840
Landfill Capping - - 10,419 10,776 10,419 10,776 Compensated Absences 30,901 29,228 12,005 10,105 42,906 39,333 Claims liability 76,603 53,828 - - 76,603 53,828 Total $644,871 $645,435 $1,417,627 $1,463,547 $2,062,498 $2,108,982 Governmental Business Type
Activities Activities Total

The City’s Water Utility maintains “AAA” and “AA+” ratings, from Standard & Poors and Fitch, respectively, for their revenue b onds, while the Electric Utility maintains “AA-” ratings from both rating agencies for fixed rate bonds and “A or A+” and “AA-” ratings fo r the variable rate bonds from Standard & Poors and Fitch, respectively. The City’s general obligation bond ratings are “AA” and “AA,” respectively.

State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total adjusted assessed valuation. The legal debt limit was $873,171 at June 30, 2021, which applies only to general obligation debt. At June 30, 2021 , the City had $6,478 of general obligation debt, resulting in available legal debt capacity of $866,693.

Additional information on the City’s long-term debt can be found in note 8 beginning on page 50 of this report.

18 (amounts expressed in thousands)

Economic Factors and Next Year’s Budget and Rates

 Unemployment in the County of Riverside is 7.9% compared to 14.8% for the prior year as of June 30, 2021.  Ongoing challenges with the City’s structural deficit currently projected at $10 million which is mitigated through the managed hiring process and maintaining position vacancies.
 The largest impact to the City’s long-term financial stability relates to pension costs from CalPERS.

The cost increases are mainly due to investment losses by CalPERS during the Great Recession as well as demographic changes, which impacted all the California agencies’ retirement plans managed by CalPERS. Additional factors causing cost increases, wh ich impact all or many agencies include:

 Retroactive retirement benefit enhancements for City employees between 2001 and 2006.  Long-term investment returns not meeting expectations.  Increased contributions resulting from the CalPERS anticipated discount rate, or assume rate of return, over the past 15 years.  CalPERS expects retirees to live longer.

As of June 30, 2021, CalPERS reported a preliminary 21.3% net r eturn on investments in the 12-month period, which lagged behin d the fiscal year total fund benchmark of 21.7%.

Under the Funding Risk Mitigation Policy, approved by the CalPERS Board of Administration in 2015, the double-digit return wil l trigger a reduction in the discount rate used to calculate employer and Public Employees’ Pension Reform Act (PEPRA) member contributions. The discount rate, or assumed rate of return, will drop to 6.8% from its current level of 7%.

The Funding Risk Mitigation Policy lowers the discount rate in years of good investment returns. This is the first time it has been triggered.

The 21.3% fiscal year return for the Public Employees’ Retirement Fund (PERF) were driven by Private Equity and Public Equity, with net returns of 43.8% and 36.3%, respectively.

Based on these preliminary fiscal year returns, the funded status of the overall PERF is an estimated 82%. This estimate is ba sed on a 7% discount rate. Under the new 6.8% discount rate, however, the funded status of the overall PERF drops to 80%. This is bec ause existing assets are assumed to grow at a slightly slower rate a nnually into the future. As intended under the Funding Risk Mitigation Policy, the lower discount rate increases the likelihood CalPERS can reach its target over the longer term.

This year’s return brings total fund performance to 10.3% for the five-year time period, 8.5% for the 10-year time period, and 6.9% for the 20-year time period. Over the past 30 years, the PERF returned annualized return of 8.4%.

19 (amounts expressed in thousands)

CalPERS began to collect employer contributions toward the plan ’s unfunded liability as dollar amounts instead of prior method of a contribution rate combined with the normal cost rate effective July 1, 2018. Additionally, in the FY 2019/20, The City issued a pension obligation bond to help reduce future pension contributions. Th e following lists the required unfunded liability contribution component per plan for FY 2021/22:

 Miscellaneous Plan – Unfunded Liability Payment of $10,825  Safety Plan – Unfunded Liability Payment of $10,749

On June 22, 2021, the City Council adopted the City’s Fiscal Year 2021-22 Annual Budget comprised of $1.2 billion in funding for citywide operations and $116 million for capital projects. The FY 202 1-22 one-year budget is a bridge between the FY 2020 -21 Emergency Budget developed during the pandemic and the upcoming FY 2022-2 4 Biennial Budget which will embrace the concepts of P r i o r i t y Based Budgeting (PBB) to align City resources more closely with the strategic priorities outlined in the City’s Strategic Plan 2025.

The General Fund Budget for fiscal year 2021-22 of approximately $287 million was adopted. It represents an increase from the prior year of approximately 6.6%.

Request for information

This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances.

Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, 3900 Main Street City of Riverside, CA 92522. 20 City of Riverside
Statement of Net Position
June 30, 2021
(amounts expressed in thousands)
Assets:

Cash and investments $ 348,129 $ 440,176 $ 788,305 Receivables (net of allowance for uncollectibles) 121,561 79,193 200,754 Inventory 7,420 3,318 10,738 Prepaid items 1,732 19,560 21,292 Deposits - 1,633 1,633 Internal balances 1,237 (1,237) - Other assets - 3,525 3,525 Restricted assets:

Cash and cash equivalents - 72,100 72,100 Cash and investments with fiscal agent 20,064 87,725 107,789 Receivables - 1,354 1,354 Regulatory assets - 14,095 14,095 Land and improvements held for resale 2,964 - 2,964 Advances to Successor Agency Trust Fund - 2,925 2,925 Capital assets, not being depreciated 407,436 247,924 655,360 Capital assets, net of accumulated depreciation 929,664 1,728,440 2,658,104 Total Assets 1,840,207 2,700,731 4,540,938

Deferred Outflows of Resources:

Changes in derivative values 10,949 26,290 37,239 Deferred charge on refunding 2,306 14,577 16,883 Pension related items 79,360 25,742 105,102 OPEB related items 7,740 4,085 11,825 Total Deferred Outflows of Resources 100,355 70,694 171,049

Liabilities:

Accounts payable and other current liabilities 38,333 28,695 67,028 Unearned revenue 60,463 4,331 64,794 Deposits 11,287 12,108 23,395
Accrued interest 1,978
12,369 14,347
Noncurrent liabilities:

Due within one year
Long-term obligations 27,779 44,864 72,643 Compensated absences 15,472 6,997 22,469 Claims liability 15,044 - 15,044 Landfill capping - 559 559 Decommissioning liability - 7,254 7,254 Due in more than one year -
Long-term obligations 509,588 1,350,339 1,859,927 Compensated absences 15,429 5,008 20,437 Claims liability 61,559 - 61,559 Landfill capping - 9,860 9,860 Decommissioning liability - 43,642 43,642 Regulatory liability - 23,382 23,382 Derivative instruments 13,118 33,227 46,345 Net pension liability 165,730 63,836 229,566 OPEB liability 30,709 21,567 52,276 Total Liabilities 966,489 1,668,038 2,634,527

Deferred Inflows of Resources:

Regulatory charges - - - Deferred charge on refunding - 648 648 Pension related items 3,785 2,789 6,574 OPEB related items 1,960 1,112 3,072 Total Deferred Inflows of Resources 5,745 4,549 10,294

Net Position:

Net investment in capital assets 1,170,232 756,116 1,926,348 Restricted for:

Housing 45,644 - 45,644
Debt service 11,292 31,650 42,942
Public works
30,260 - 30,260
Capital projects 57,405 - 57,405 Landfill capping - 2,500 2,500 Programs and regulatory requirements - 44,735 44,735 Economic development 18,731 - 18,731 Nonexpendable 1,477 - 1,477 Unrestricted (366,713) 263,837 (102,876) Total Net Position $ 968,328 $ 1,098,838 $ 2,067,166 The notes to basic financial statements are an integral part of this statement.

Governmental Business-type
Activities Activities Total
21 City of Riverside
Statement of Activities
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)

Business-Type
Functions/Programs
Primary Government:

Governmental Activities:

General government $ 97,927 $ (18,923) $ 11,485 $ 32,231 $ 975 $ (34,313) $ - $ (34,313) Public safety 219,136 12,717 7,649 8,482 - (215,722) - (215,722) Highways and streets 42,034 3,540 11,278 9,800 25,943 1,447 - 1,447 Culture and recreation 37,693 2,666 3,694 13,892 1,366 (21,407) - (21,407) Interest on long-term debt 19,083 - - - - (19,083) - (19,083) Total Governmental Activities 415,873 - 34,106 64,405 28,284 (289,078) - (289,078) Business-Type Activities:

Electric 366,165 - 376,101 - 5,059 - 14,995 14,995 Water 71,738 - 80,252 - 3,062 - 11,576 11,576 Sewer 61,029 - 66,323 - 204 - 5,498 5,498 Airport 2,326 - 1,709 67 39 - (511) (511) Refuse 28,428 - 26,468 - - - (1,960) (1,960)
Transportation 4,623 - 65 3,909 154 - (495) (495) Public Parking 4,684 - 2,968 - - - (1,716) (1,716) Civic Entertainment 11,885 - 1,381 - 3,755 - (6,749) (6,749) Total Business-Type Activities 550,878 - 555,267 3,976 12,273 - 20,638 20,638 Total Primary Government $ 966,751 - $ 589,373 $ 68,381 $ 40,557 $ (289,078) $ 20,638 $ (268,440) General Revenues:

Taxes:

Sales tax 150,321 - 150,321 Property tax 71,986 - 71,986 Utility users tax 30,577 - 30,577 Franchise tax 5,527 - 5,527 Transient occupancy tax 5,801 - 5,801 Intergovernmental, unrestricted 499 - 499 Rental and investment income 4,969 681 5,650 Miscellaneous 5,988 11,986 17,974 Subtotal 275,668 12,667 288,335 Transfers, net 34,879 (34,278) 601 Total General Revenues and Transfers 310,547 (21,611) 288,936
Change in Net Position 21,469 (973) 20,496 Net position, Beginning of Year, as previously stated 866,575 1,099,811 1,966,386 Prior period adjustment 80,284 - 80,284 Net position, Beginning of Year, as restated 946,859 1,099,811 2,046,670 Net position, End of Year $ 968,328 $ 1,098,838 $ 2,067,166 The notes to basic financial statements are an integral part of this statement.

Expenses Allocation Services and Grants and Grants Activities Net (Expenses) Revenues and Changes in Net Position
Program Revenues Primary Government
Activities Total
Governmental
Indirect Operating Capital
Charges for Contributions ContributionsExpenses
22 City of Riverside
Balance Sheet
Governmental Funds
June 30, 2021
(amounts expressed in thousands)
Assets: General Fund Capital Outlay Fund
General Debt Service
Fund
Other
Governmental
Funds
Total Governmental
Funds
Cash and investments 138,975$ 47,109 $ 4,398 $ 99,147 $ 289,629 $ Cash and investments with fiscal agent 10,697 - 8,702 665 20,064 Receivables (net of allowance for uncollectibles)
Interest 258 84 4 119 465 Property taxes 2,369 - 42 100 2,511 Sales tax 30,103 - - - 30,103 Utility billed 2,517 - - - 2,517 Accounts 6,588 437 - 53 7,078 Intergovernmental 4,171 7,163 - 21,683 33,017 Notes - - - 45,379 45,379 Prepaid items 1,695 11 19 5 1,730 Due from other funds 4,432 - - - 4,432 Land and improvements held for resale 175 - - 2,789 2,964 Total Assets 201,980$ 54,804 $ 13,165 $ 169,940 $ 439,889 $ Liabilities:

Accounts payable 4,940$
1,938$ 108$ 5,871$ 12,857$ Accrued payroll 22,372 - - 26 22,398 Retainage payable 2 416 - 1,107 1,525 Intergovernmental 148 - - 1 149 Unearned revenue 25 1,320 - 59,118 60,463 Deposits 11,287 - - - 11,287 Due to other funds - - - 1,430 1,430 Advances from other funds - - 1,765 - 1,765 Total Liabilities 38,774 3,674 1,873 67,553 111,874 Deferred Inflows of Resources:

Unavailable revenue 3,559 772 - 47,556 51,887 Total Deferred Inflows of Resources 3,559 772 - 47,556 51,887 Fund Balances:

Nonspendable:

Inventories, prepaids and deposits 1,695 - - - 1,695 Land and improvements held for resale 175 - - - 175 Permanent fund principal - - - 1,477 1,477 Restricted for:

Housing and redevelopment - - - 18,553 18,553
Debt service - - 11,292 - 11,292 Transportation and public works - 50,358 - 28,526 78,884 Other purposes - - - 6,275 6,275 Unfunded accrued liability 10,697 - - - 10,697 Committed for:

Economic contingency 62,400 - - - 62,400 Assigned to:

General government 3,364 - - - 3,364 Public safety 2,012 - - - 2,012 Highways and streets 1,395 - - - 1,395 Culture and recreation 724 - - - 724 Continuing projects 17,395 - - - 17,395 Unassigned 59,790 - - - 59,790 Total Fund Balances 159,647 50,358 11,292 54,831 276,128 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 201,980$ 54,804$ 13,165$ 169,940$ 439,889$ The notes to basic financial statements are an integral part of this statement. 23 City of Riverside
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2021
(amounts expressed in thousands)
Total fund balances - governmental funds 276,128$
Amounts reported for governmental activities in the Statement of Net Position are different because:
1,330,864
Deferred refunding charges are not available resources and, therefore, are not reported in the funds 2,306 Deferred outflows on pensions related item
s 78,198
Deferred outlflows on OPEB related items 7,494
Deferred inflows on pensions related items (3,659)
Deferred inflows on OPEB related items (1,892)
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds 51,887
Accrued interest payable for the current portion of interest due on various debt issues has not been reported in the governmental funds (1,978)
Long-term liabilities, as listed below, are not due and payable in the current period and, therefore, are not reported in the fund
s
General obligation bonds $ (6,478)
Pension obligation bonds (348,020)
Certificates of participation (90,215)
Lease revenue bonds (72,471)
Loan payable (457)
Capital leases (14,922)
Compensated absences (30,380)
Net pension liability (162,848)
Net OPEB liability (29,435)
(755,226)
Net fair value of interest rate swaps (13,118)
Deferred amount related to the hedgeable portion of the derivative instrument 10,949 (2,169)
Internal service funds are used by management to charge the costs of insurance, centralized purchasing, and fleet management to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position. (13,625) Net Position of Governmental Activities $968,328
The notes to basic financial statements are an integral part of this statement.

Capital assets net of accumulated depreciation used in governmental activities are not current financial resources and, therefore, are not reported in the funds The City uses derivative instruments to hedge its exposure to changing interest rates through the use of interest rate swaps. The following related items have been reflected in the Statement of Net Position.
24 City of Riverside
Governmental Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
General Fund
Capital Outlay
Fund
General Debt
Service Fund
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:

Taxes 265,819$ - $ 1,895$ - $ 267,714$ Licenses and permits 10,265 - - 2,513 12,778 Intergovernmental 3,851 15,660 - 67,715 87,226 Charges for services 13,146 - - 1,432 14,578 Fines and forfeitures 2,100 - - - 2,100 Special assessments 626 420 1,242 5,386 7,674 Rental and investment income 3,796 231 (6) 416 4,437 Miscellaneous 769 46 - 5,147 5,962 Total Revenues 300,372 16,357 3,131 82,609 402,469 Expenditures:

Current:

General government 4,612 14 355 25,906 30,887 Public safety 190,115 - - 10,618 200,733 Highways and streets 16,203 - - 694 16,897 Culture and recreation 26,104 13 - 2,274 28,391 Capital outlay 692 35,946 - 32,610 69,248 Debt service:

Principal -
- 24,439 36 24,475 Interest - 1 20,327 44 20,372 Total Expenditures 237,726 35,974 45,121 72,182 391,003 Excess (Deficiency) of Revenues Over (Under) Expenditures 62,646 (19,617) (41,990) 10,427 11,466 Other Financing Sources (Uses):

Transfers in 53,263 14,441 42,114 3,089 112,907 Transfers out (90,320) (3,508) (42) (8,158) (102,028) Proceeds from the sale capital assets 189 24 - - 213 Total Other Financing Sources (Uses) (36,868) 10,957 42,072 (5,069) 11,092 Net Change in Fund Balances 25,778 (8,660) 82 5,358 22,558 Fund Balances, Beginning of Year 133,869 59,018 11,210 49,473 253,570 Fund Balances, End of Year 159,647$ 50,358 $ 11,292 $ 54,831 $ 276,128 $ The notes to basic financial statements are an integral part of this statement.

Statement of Revenues, Expenditures and Changes in Fund Balances 25 City of Riverside
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Net change in fund balances - total governmental funds 22,558$ 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 their estimated useful lives and reported as depreciation expense.

Capital asset additions $ 55,911
Depreciation expense (48,474)
Gain (loss) on sale of capital assets (613
) 6,824
Repayment of long-term debt principal is an expense in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Whereas, issuance of long-term debt is a current financial resource in the governmental funds, but the issuance increases long-term debt in the statement of net position.

Also, governmental funds report the effect of premiums, discounts, and deferral on loss of refunding when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Principal repayments
General obligation bonds 1,396
Pension obligation bonds 11,670
Certificates of participatio
n 4,587
Lease revenue bonds 3,493
Loans payable 442
Capital leases 3,285 24,873
The City uses derivative instruments to hedge its exposure to changing interest rates through the use of interest swaps. The change in the fair value of the interest swaps are only reflected on the statement of activities. 495 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 1,092 Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as an expenditure in the governmental funds. (1,625) Governmental funds report all contributions in relation to the annual required contribution (ARC) for the City retirement plan as expenditures; however, in the statement of activities only the ARC is an expense. (31,383) Governmental funds report all contributions in relation to the annual required contribution (ARC) for OPEB expenditures; however in the statement of activities only the ARC is an expense. (630) Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 5,229 Internal service funds are used by management to charge the costs of insurance, centralized purchasing and fleet management to individual funds. The net revenue (expense) of certain activities of internal service funds is reported with governmental activities. (5,964)
Change in net position of governmental activities 21,469 $ The notes to basic financial statements are an integral part of this statement. 26 City of Riverside
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Public safety:

Police 130,170 122,572 114,542 8,030 Fire 69,022 67,069 69,532 (2,463) Animal regulation 3,173 3,209 2,703 506 Building and zoning inspection 3,554 3,597 3,338 259 Revenues: Total public safety 205,919 196,447 190,115 6,332 Taxes $ 224,443 224,443 $ 265,819 $ 41,376 Licenses and permits 8,679 8,679 10,265 1,586 Highways and streets 19,152 18,253 16,203 2,050 Intergovernmental 1,395 1,540 3,851 2,311 Charges for services 15,390 15,453 13,146 (2,307) Culture and recreation Fines and forfeitures 1,659 1,659 2,100 441 Library 7,960 7,892 6,624 1,268 Special assessments 513 513 626 113 Museum & cultural affairs 2,128 2,251 1,830 421 Rental and investment income 2,615 2,615 3,796 1,181 Parks, recreation & community services 21,490 22,456 17,609 4,847 Miscellaneous 1,544 1,300 769 (531) Community development - 100 41 59 Total culture and recreation 31,578 32,699 26,104 6,595 Total Revenues 256,238 256,202 300,372 44,170 Capital outlay 281 3,394
692 2,702
Expenditures:

General government: Total Expenditures 268,171 272,919 237,726 35,193 Mayor 981 939 830 109 Council 1,822 1,745 1,513 232 Excess (Deficiency) of Revenues Over
(Under) Expenditures (11,933) (16,717) 62,646 79,363 Manager 7,820 8,729 5,982 2,747 Attorney 6,836 6,399 6,456 (57) Other Financing Sources (Uses):

Clerk 3,403 2,566 2,042 524 Transfers in 79,359 79,364 53,263 (26,101) Community development 16,248 21,579 12,131 9,448 Transfers out (74,062) (94,009) (90,320) 3,689 Human resources 4,795 4,810 4,038 772 Proceeds from sale of capital assets (7,755) (7,755) 189 7,944 General services 6,930 6,986 5,925 1,061 Total Other Financing Sources (Uses) (2,458) (22,400) (36,868) (14,468) Finance 2,993 8,872 7,628 1,244 Innovation & technology 12,873 12,961 11,535 1,426 Net Change in Fund Balance (14,391) (39,117) 25,778 64,895

Subtotal 64,701 75,586 58,080 17,506 Fund Balance, Beginning of Year 133,869 133,869 133,869 - Allocated expenditures (53,460) (53,460) (53,468) 8 Fund Balance, End of Year $ 119,478 $ 94,752 $ 159,647 $ 64,895 Total general government 11,241 22,126 4,612 17,514 continued
The notes to the financial statements are an integral part of this statement.

Actual Variance with
Original Final Amounts Final Budget
Original Final Amounts Final Budget
Budgeted Amounts
Budgeted Amounts Actual Variance with
27 City of Riverside
Statement of Net Position
Proprietary Funds
June 30, 2021
(amounts expressed in thousands)
Assets: Electric Water Sewer
Other
Enterprise
Funds
Total Enterprise
Funds
Governmental
Activities-Internal
Service Funds
Current assets:

Cash and investments 287,294 $ 42,947 $ 103,335 $ 6,600 $ 440,176 $ 58,500 $ Receivables (net allowances for uncollectibles)
Interest 586 85 182 16 869 62 Utility billed 23,012 6,018 6,033 2,261 37,324 - Utility unbilled 15,670 3,688 2,470 989 22,817 - Accounts 5,055 1,249 709 1,200 8,213 136 Property tax receivable - - - 40 40 - Intergovernmental 48 3,465 829 5,588 9,930 293 Other - - - - - - Inventory 971 - 2,306 41 3,318 7,420 Prepaid items 6,275 238 35 41 6,589 2 Deposits 1,333 - - 300 1,633 - Other current assets 300 300
Restricted assets:

Cash and cash equivalents:

Rate stabilization cash and cash equivalents - - 1,000 - 1,000 - Other restricted cash and cash equivalents 56,919 10,474 - 3,707 71,100 -
Public benefit programs receivable 1,202 152 - 1,354 - Total Current Assets 398,365 68,616 116,899 20,783 604,663 66,413 Non-current assets:

Restricted assets:

Cash and investments with fiscal agent 67,617 20,108 - - 87,725 - Regulatory assets 1,757 934 1,252 10,152 14,095 - Prepaid items - Non-current 12,971 - - - 12,971 - Advances to other funds - - 1,765 - 1,765 - Advances to Successor Agency Trust Fund 2,925 - - - 2,925 - Other non-current assets - 3,225 - - 3,225 - Capital assets, net of accumulated depreciation 797,902 499,636 535,335 143,491 1,976,364 6,236 Total Non-Current Assets 883,172 523,903 538,352 153,643 2,099,070 6,236 Total Assets 1,281,537 592,519 655,251 174,426 2,703,733 72,649 Deferred Outflows of Resources:

Changes in derivative values 16,228 3,442 - 6,620 26,290 - Deferred charge on refunding 8,567 5,294 - 716 14,577 - Pension related items 15,820 4,921 3,044 1,957 25,742 1,162

OPEB related items 2,167 871 552 495 4,085 246 Total Deferred Outflows of Resources 42,782 14,528 3,596 9,788 70,694 1,408 Continued
Business-Type Activities - Enterprise Funds
28 City of Riverside
Statement of Net Position
Proprietary Funds
June 30, 2021
(amounts expressed in thousands)
Liabilities: Electric Water Sewer
Other Enterprise
Funds
Total Enterprise
Funds
Governmental
Activities-Internal
Service Funds
Current liabilities:

Accounts payable 17,306 3,495 2,407 3,443 26,651 1,336 Accrued payroll 603 196 120 87 1,006 47 Retainage payable 467 301 247 23 1,038 21 Unearned revenue 67 2,347 - 1,917 4,331 - Deposits 10,563 1,013 6 526 12,108 - Accrued interest 4,085 1,408 6,824 52 12,369 - Due to other funds - - - 3,002 3,002 - Total Current Liabilities 33,091 8,760 9,604 9,050 60,505 1,404 Noncurrent liabilities:

Due within one year
Long-term obligations 19,891 9,591 9,966 5,416 44,864 227 Compensated absences 3,793 1,599 1,107 498 6,997 364 Claims liability - - - - - 15,044 Landfill capping - - - 559 559 Decommissioning liability 7,254 - - - 7,254
Due in more than one year
Long-term obligations 639,791 250,728 375,380 84,440 1,350,339 4,577 Compensated absences 3,389 1,120 344 155 5,008 157 Claims liability - - - - - 61,559 Landfill capping - - - 9,860 9,860 - Decommissioning liability 43,642 - - - 43,642 - Regulatory liability 3,461 3,689 16,231 1 23,382 - Derivative instruments 19,968 5,683 - 7,576 33,227 - Net pension liability 39,233 12,203 7,548 4,852 63,836 2,882 OPEB liability 11,126 4,550 3,142 2,749 21,567 1,274 Total Non-Current Liabilities 791,548 289,163 413,718 116,106 1,610,535 86,084 Total Liabilities 824,639 297,923 423,322 125,156 1,671,040 87,488 Deferred Inflows of Resources:

Deferred charge on refunding - - 648 - 648 Pension related items 1,714 533 330 212 2,789 126 OPEB related items 593 231 150 138 1,112 68 Total Deferred Inflows of Resources
2,307 764 1,128 350 4,549 194 Net Position:

Net investment in capital assets 237,968 291,541 163,210 63,397 756,116 6,236 Restricted for debt service 18,615 7,435 5,600 - 31,650 - Restricted for landfill capping - - - 2,500 2,500 - Restricted for programs and regulatory requirements 39,269 3,164 2,302 - 44,735 - Unrestricted 201,521 6,220 63,285 (7,189) 263,837 (19,861) Total Net Position (Deficit) 497,373$ 308,360$ 234,397$ 58,708$ 1,098,838$ (13,625)$ The notes to basic financial statements are an integral part of this statement.

Business-Type Activities - Enterprise Funds
29 City of Riverside
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Electric Water Sewer
Other Enterprise
Funds
Total Enterprise
Funds
Governmental
Activities-Internal
Service Funds
Operating Revenues:

Charges for services 376,101 $ 80,252 $ 66,323 $ 32,591 $ 555,267 $ 23,666 $ Total Operating Revenues 376,101 80,252 66,323 32,591 555,267 23,666 Operating Expenses:

Personnel services 58,751 14,004 11,791 8,786 93,332 4,798 Contractual services 9,252 2,899 950 9,016 22,117 2,048 Maintenance and operation 220,919 10,761 8,698 10,616 250,994 2,800 General 12,986 16,691 5,712 12,351 47,740 30,325 Materials and supplies 841 715 3,613 1,656 6,825 178 Claims/Insurance 1,861 591 667 593 3,712 13,212 Depreciation 35,654 16,346 14,480 5,310 71,790 832 Amortization - - - 564 564 - Total Operating Expenses 340,264 62,007 45,911 48,892 497,074 54,193 Operating Income (Loss) 35,837 18,245 20,412 (16,301) 58,193 (30,527) Non-Operating Revenues (Expenses):

Operating grants - - - 3,976 3,976 -
Interest revenue 496 (1) 263 (77) 681 (16) Interest expense and fiscal charges (25,901) (9,731) (14,953) (3,054) (53,639) (148) Capital improvement fees - - (165) - (165) - Other non-operating revenues 6,268 3,002 106 1,856 11,232 517 Gain (loss) on disposal of capital assets 628 120 (2) 8 754 73 Total Non-Operating Revenues (Expenses) (18,509) (6,610) (14,751) 2,709 (37,161) 426 Income (Loss) Before Contributions and Transfers 17,328 11,635 5,661 (13,592) 21,032 (30,101) Cash capital contributions 3,456 3,062 88 3,948 10,554 137 Non-cash capital contributions 1,603 - 116 - 1,719 - Transfers in - - - 12,673 12,673 24,000 Transfers out (39,899) (6,972) - (80) (46,951) - Change in Net Position (17,512) 7,725 5,865 2,949 (973) (5,964) Net Position:

Net Position (Deficit), Beginning of Year 514,885 300,635 228,532 55,759 1,099,811 (7,661) Net Position (Deficit), End of Yea
r 497,373$ 308,360 $ 234,397 $ 58,708 $ 1,098,838 $ (13,625) $ The notes to basic financial statements are an integral part of this statement.

Business-Type Activities - Enterprise Funds
30 City of Riverside
Proprietary Funds
Statement of Cash Flows
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Cash Flows from Operating Activities:

Cash received from customers and users $ 371,206 $ 78,233 $ 65,097 $ 31,690 $ 546,226 $ - Cash received from interfund services provided - - - - - 47,394 Cash paid to other suppliers for goods or services (226,585) (24,787) (19,818) (33,978) (305,168) (49,138) Cash paid to employees for services (68,796) (20,610) (11,367) (7,771) (108,544) (6,178) Cash received from others - 1,138 - - 1,138 - Net Cash Provided (Used) by Operating Activities 75,825 33,974 33,912 (10,059) 133,652 (7,922) Cash Flows from Non-Capital Financing Activities:

Transfers in - - - 12,673 12,673 24,000 Transfers out (39,899) (6,972) - (80) (46,951) - Operating grants - - - 3,335 3,335 - Receipts (payments) on interfund advances 458 - 314 3,002 3,774 670 Payments on pension obligation bonds (2,015) (672) (847) (566) (4,100) (287) Other receipts (payments) from non-operating revenue 6,268 - 106 1,856 8,230 517 Net Cash Provided (Used) by Non-Capital Financing
Activities (35,188) (7,644) (427) 20,220 (23,039) 24,900 Cash Flows from Capital and Related Financing Activities:

Purchase of capital assets (41,455)
(16,398) (11,460) (5,612) (74,925) (787) Proceeds from the sale of capital assets 628 132 - 320 1,080 73 Principal paid on long-term obligations (15,890) (6,557) (11,106) (5,330) (38,883) - Interest paid on long-term obligations (29,678) (9,955) (14,743) (3,704) (58,080) - Capital improvement fees - - (165) - (165) - Contributions 3,456 3,062 88 (15) 6,591 137 Net Cash Provided (Used) by Capital and Related
Financing Activities (82,939) (29,716) (37,386) (14,341) (164,382) (577) Cash Flows from Investing Activities:

Interest from investments 791 28 328 (55) 1,092 31 Net Cash Provided (Used) by Investing Activities 791 28 328 (55) 1,092 31 Net Increase (Decrease) in Cash and Cash Equivalents (41,511) (3,358) (3,573) (4,235) (52,677) 16,432 Cash and Investments, Beginning of Year (including $97,983 for Electric, $28,826 for Water, $8,270 for Sewer in restricted accounts) 453,341 76,887 107,908 14,542 652,678 42,068 Cash and Investments, End of Year (including $67,617 for Electric and $20,108 for Water in restricted accounts) $ 411,830 $ 73,529 $ 104,335 $ 10,307 $ 600,001 $ 58,500 Continued
Electric Water Sewer Funds Funds Service Funds
Governmental
Other Total Activities-
Enterprise Enterprise Internal
31 City of Riverside
Proprietary Funds
Statement of Cash Flows
For the fiscal year ended June 30, 2021
(amounts expressed in thousands) Continued
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities:

Operating income (loss) $ 35,837 $ 18,245 $ 20,412 $ (16,301) $ 58,193 $ (30,527) Other receipts - 1,138 - - 1,138 - Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation and amortization 35,654 16,346 14,480 5,874 72,354 832 Changes in assets, liabilities and deferred inflows/outflows of resources:

Utility billed receivable (5,118) (1,777) (2,212) (856) (9,963) - Utility unbilled receivable (1,946) (359) (102) (90) (2,497) - Accounts receivable 5,104 (56) 570 (687) 4,931 (92) Property tax receivable - - - (40) (40) - Intergovernmental receivable 26 (2,249) 522 - (1,701) (180) Inventory - - (134) 31 (103) (428) Prepaid and deposit items 99 (13) (20) 42 108 15 Benefit programs receivable (219) 12 - - (207) - Regulatory asset - - 61 639 700 - Accounts payable (1,249) 911 (126) 673 209 (183) Accrued payroll 4
(32) (20) (7) (55) (2) Retainage payable (33) 8 102 23 100 21 Unearned revenue (6) 2,305 - (48) 2,251 - Deposits payable 1,298 100 - 22 1,420 - Compensated absences 1,320 430 97 53 1,900 48 Claims liability - - - - - 22,775 Landfill capping - - - (357) (357) - Decommissioning liability (4,812) - - - (4,812) - Regulatory liability - - (65) 1 (64) - Net OPEB liability and related changes in deferred outflows and inflows of resources 183 73 15,950 43 16,249 20 Net pension liability and related changes in deferred outflows and inflows of resources 9,683 (1,108) (15,603) 926 (6,102) (221) Net Cash Provided (Used) by Operating Activities $ 75,825 $ 33,974 $ 33,912 $ (10,059) $ 133,652 $ (7,922) Schedule of noncash financing and investing activities:

Gain/(loss) on retirement of capital assets $ - $ - $ (2) $ - $ (2) $ - Capital contributions 1,603 -
116 - 1,719 -
Payment on note payable including interest offset by rent credit- 1,864 - - 1,864 - Capital assets - transfer (from)/to governmental activities - - - (601) (601) - The notes to basic financial statements are an integral part of this statement.

Governmental
Activities-
Internal
Service Funds
Total
Enterprise
FundsElectric
Other
Enterprise
FundsSewerWater
32 City of Riverside
Statement of Net Position
Fiduciary Funds
June 30, 2021
(amounts expressed in thousands)
Assets:

Cash and investments $ 26,986 $ 438 Cash and investments with fiscal agent 4,043 8,531 Receivables
Interest 46 2
Property taxes - 74
Accounts 67 -
Intergovernmental 795 -
Notes 2,199 -
Direct financing lease receivable 9,710 - Deposits 2 -
Land and improvements held for resale 7,440 - Capital assets, net of accumulated depreciation 185 - Total Assets 51,473 9,045
Liabilities:

Accounts payable 15 1
Accrued interest 2,528 -
Advances from other funds 2,925 - Noncurrent liabilities
Due within one year
Long-term obligations 7,193 2,175 Due in more than one year
Long-term obligations 179,782 36,790 Total Liabilities 192,443 38,966
Deferred Inflows of Resources:

Deferred charge on refunding 808 - Total Deferred Inflows of Resources 808 - Net Position:

Restricted for other governments (141,778) (29,921) Total Net Position (Deficit) $ (141,778) $ (29,921) The notes to basic financial statements are an integral part of this statement Private-Purpose
Custodial
Fund
Trust Fund
Successor Agency
Trust Fund
33 City of Riverside
Statement of Changes in Net Position
Fiduciary Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Private-Purpose
Trust Fund
Successor Agency
Trust Fund Custodial Fund
Additions:

Property tax revenue 13,483$ - $
Special Assessments - 4,309 Rental and investment income 236 14 Total Additions 13,719 4,323
Deductions:

Professional services and other deductions 1,153 1,602 Redevelopment projects 535 - Interest expense 6,539 1,892
Total Deductions 8,227 3,494
Change in Net Position 5,492 829 Net Position:

Net Position (Deficit), Beginning of Year, as previously stated (147,270) - Prior Period Adjustment (30,750)
Net Position (Deficit), Beginning of Year, restated (147,270) (30,750) Net Position (Deficit), End of Year (141,778) $ (29,921) $ The notes to basic financial statements are an integral part of this statement 34 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

1. Summary of Significant Accounting Policies

The City of Riverside (City) was incorporated on October 11, 18 83 as a Charter City and operates under a Council-Manager form of Government. The more significant accounting policies reflected in the financial statements are summarized as follows:

A. Reporting Entity

The financial statements present the City and its component units, entities for which the City is financially accountable. Blended component units are legally separate entities, but in substance are part of the City's oper ations and their data is combined with that of the City's. The City has no component units that meet the criteria for discrete presentation. All of the City's component units have a June 30 year end.

Blended Component Units

Riverside Housing Authority (Housing Authority) was established in 2006 by the City. The Housing Authority’ s primary purpose is to provid e safe and sanitary housing accommodations for persons with low or moderat e income.

The Housing Authority’s activity has been combined with that of the primary government because City Council members serve as the Housing Authority’s commissioners and because the City is financially accountable a nd operationally responsible for all matters.

Riverside Public Financing Authority (Public Financing Authorit y) was organized in December 1987 by the City and the Redevelopment Ag ency.

Pursuant to Assembly Bill 1X 26 (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies were dissolved effective February 1, 2012. Subsequently, the City became the Successor Agency to the Redevelopment Agency. The Parking Authority of the City of Riverside was added as an additional member of the Public Financing Authority on August 14, 2012. The Public Financing Authority’s activity has been combined with that of the primary government because City Council member s serve as the Public Financing Authority’s board members and because the Public Financing Authority exclusively provides financing assistance t o the primary government. The City is also financially accountable and opera tionally responsible for all matters.

Riverside Municipal Improvements Corporation (Municipal Improve ments Corporation) was created in 1978 and operates under provisions of the Nonprofit Public Benefit Corporation Law of the State of Califo r n i a . T h e Municipal Improvements Corporation's primary purpose is to provide financing assistance by obtaining land, property and equipment on behalf of the City.

The activity of the Municipal Improvements Corporation has been combined with that of the primary government because three members of th e City Council serve as the Municipal Improvements Corporation’s direc tors and because the Municipal Improvements Corporation exists to serve exclusively the primary government. The City is financially accountable and operationally responsible for all matters.

Fiduciary Component Unit

Successor Agency to the Redevelopment Agency of the City of Riverside (Successor Agency) is a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency pursu ant to City Council actions taken on March 15, 2011 and January 10, 2012. The activity of the Successor Agency was overseen by an Oversight Board comp rised of individuals appointed by various government agencies and the Ci ty of Riverside as Successor Agency of the former Redevelopment Agenc y. In 2018, the oversight was transferred to the Riverside Countywide Oversight Board, as a result of state legislation that consolidated all oversight boards to successor agencies. The Countywide Oversight Board was created to oversee the winddown activities of the various successor agencies in Riverside County.

The nature and significance of the relationship between the Cit y and the Successor Agency is such that it would be misleading to exclude t h e Successor Agency from the City’s financial statements. The Succ essor Agency is presented herein in the City’s fiduciary funds as a p rivate-purpose trust fund.

Complete financial statements are prepared for the Riverside Public Financing Authority and the Successor Agency to the Redevelopment Agency of the City of Riverside, which can be obtained from the City's Finance Dep artment, 3900 Main Street, Riverside, California, 92522 or online at www.riversideca.gov.

B. Government-wide and Fund Financial Statements

The government-wide financial statements report information on all of the non-fiduciary activities of the City and its component units. Interfund activity has been removed from these statem ents except for utility charg es, as this would distort the presentation of function costs and program re venues.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from busine ss-type activities, which rely to a significant extent on fees and charges for support. 35 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

The statement of net position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources , with the difference reported as net position. Over time, increases or de creases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities demonstrates the degree to which th e direct expenses of a given function or segment are offset by program revenues.

Direct expenses are those that a re clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly includ ed among program revenues are reported instead as general revenues. Ind irect expenses are allocated to the various functions based on a prop ortionate utilization of the services rendered. Such allocations consist of charges for accounting, human resources, information technology and other s imilar support services.

Separate financial statements are provided for governmental fun ds, proprietary funds, and fiduciar y funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide, proprietary and fiduciary funds financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is inc urred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year f or which they are levied on the property. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. An allo wance for doubtful accounts is maintained for the utility and other misce llaneous receivables.

Governmental fund financial statements are reported using the c urrent financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both m easurable and available. Revenues are considered to be available when the y are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues are considered to be available i f t h e y a r e generally collected within 60 days after year end, except for revenue associated with neglected property abatement which is eleven (1 1) months and except for grant revenue, including reimbursement received from Transportation Uniform Mitigation Fees, which is six (6) months . Grant revenue is recognized if received within six (6) months of year end to enable the matching of revenue with applicable expenditures. Expenditures generally are recorded when a liability is incurred under accrual account ing. However, debt
service expenditures, as well as expenditures related to c ompensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, special assessm ents, sales taxes, franchise tax es, licenses, charges for services, amounts due from other governments and interest associated with the current fiscal period are all considered to be susceptible to accrual. Other revenue items such as fines and permits are considered to be measurable and available only when the government receives cash and are therefore not susceptible to accrual.

The government reports the following major governmental funds:

The General fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Capital Outlay fund accounts for the construction and insta llation of street and highway capital improvements for the City, including improvements funded by the ½ % sales tax approved by Riverside County in 1988.

The General Debt Service fund accounts for the accumulation of resources and payment of long-term debt obligations of the City and related entities.

The government reports the following major proprietary funds:

The Electric fund accounts for the activities of the City’s electric distribution operations.

The Water fund accounts for the activities of the City’s water distribution operations.

The Sewer fund accounts for the activities of the City’s sewer systems.

36 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Additionally, the government reports the following fund types:

Special Revenue funds account for proceeds of specific revenue sources that are legally restricted or otherwise committed or assigned for specific purposes.

Internal Service funds account for self-insurance, central stores and central garage on a cost reimbursement basis.

Fiduciary funds include private-purpose trust and custodial fun ds. The private-purpose trust fund accounts for assets and activities o f the dissolved Redevelopment Agency, which is accounted for in the Successor Agency Trust. The custodial funds are used to account for speci al assessments that service no-commitment debt.

The Permanent fund is a governmental fund that is used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s Library progra ms.

Non-expendable net position on the Statement of Net Position in cludes $1.5 million of permanent fund principal which are considered nonexpendable.

Amounts reported as program revenues include 1) charges to cust omers for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special asse ssments.

Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses f rom non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connec tion with a proprietary fund’s principal ongoing operations. The Sewer fund a l s o recognizes, as operating revenue, the portion of connection fee s intended to recover the cost of connecting new customers to the system. Op erating expenses for enterprise funds and internal service funds includ e the cost of sales and services, administrative expenses, and depreciation o n capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

D. Cash and Investments

The City values its cash and investments in accordance with the provisions of Governmental Accounting Standards Board Statement No. 72 (GASB 72), Fair Value Measurement and Application , which requires governmental entities to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value.

The techniques should be consistent with one or more of the fol lowing approaches: the market approach, the cost approach or the income approach.

Cash accounts of all funds are pooled for investment purposes t o enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair value except for investments in investment contracts which are recorded at contract value. All highly liquid investments (including restricted assets) with a maturity of 90 days or less when purchased are considered cash equivalents.

Cash and investments held on behalf of proprietary funds by the City Treasurer are considered highly liquid and are classified as cash equival ents for the purpose of presentation in the statement of cash flows.

E. Restricted Cash and Investments

Certain proceeds of long-term indebtedness, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants.

Restricted cash and investments also include cash set aside for nuclear decommissioning, public benefit programs, regulatory requiremen ts and rate stabilization because their use is legally restricted to a spec ific purpose.

Unspent proceeds received from the City’s landfill capping surcharge are also recorded as restricted assets.

F. Allowance for Doubtful Accounts

Management determines the allowance for doubtful accounts by an alyzing customer accounts for all balances over 60 days old. The allowa nce for doubtful accounts is then adjusted at fiscal year-end based on the amount equal to the annual uncollectible accounts. Utility customer cl osed accounts are written off when deemed uncollectible. Recoveries to utility customer receivables previously written off are recorded when received. For non-utility accounts receivables, delinquent notices after 60 days are sent to customers with outstanding balances. Aft er 120 days, accounts still outst anding are referred to the City’s collection agency. As of June 30, 2021, the City had an allowance for doubtful account balance of $10,536.

37 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

G. Land and Improvements Held for Resale

Land and improvements held for resale were generally acquired f or future development projects. The propert ies are carried at the lower of cost or net realizable value.

H. Inventory

Supplies are valued at cost using the average-cost method. Costs are charged to user departments when consumed rather than when purchased.

I. Prepaid Items

Payments to vendors for services benefiting future periods are recorded as prepaid items and expenditures are recognized when items are consumed.

J. Capital Assets

Capital assets, which include property, plant, equipment, and i nfrastructure assets (e.g., roads, bridges, sidewalks, right of way, and simi lar items), are reported in the applicable governmental activities and business-type activities of the government-wide financial statements and in the propriet ary funds and the fiduciary private-purpose tru st fund statements of net posi tion. The government defines capital assets as assets with an initial, in dividual cost of more than five thousand dollars and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Costs include: labor; materials; inte rest during construction; allocated indirect charges such as engineering, construction and transportation equipment, retirement plan contributions and oth er fringe benefits. Donated capital assets or donated works of art and similar items are recorded at acquisition cost at the date of donation. Capital assets received in a service concession arrangement a re recorded at acquisition va lue.

Intangible assets that cost more than one hundred thousand dollars with useful lives of at least three years are capitalized and are recorded at cost. Interest incurred during the construction phase is expensed in the period incurred.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets other than land are depreciated us ing the straight-line method. Estimated useful lives used to compute depreciation are as follows:

Buildin
gs and Improvements 30-50 years
Improvements other than Buildings 20-99 years
Intangibles - Depreciable 3-15 years
Machinery and Equipment 3-15 years
Infrastructure 20-100 years

K. Compensated Absences

City employees receive 10 to 25 vacation days a year based upon length of service. A maximum of two years' vacation accrual may be accumulated, any excess vacation must be used in accordance with policy, and unused vacation is paid in cash upon separation.

City employees generally receive one day of sick leave for each month of employment with unlimited accumulation. Upon retirement or deat h, certain employees or their estates receive a percentage of unused sick leave paid in a lump sum based on longevity. The General, Electric and Water funds have been primarily used to liquidate such balances.

The liability associated with these benefits is reported in the government-wide statements. Vacation and sick leave of proprietary funds is recorded as an expense and as a liability of those funds as the benefits accrue to employees.

L. Derivative Instruments

The City’s derivative instruments are accounted for in accordance with Government Accounti ng Standards Board Statement No. 53 (GASB 53 ), Accounting and Financial Reporting for Derivative Instruments, which requires the City to report its derivative instruments at fair value. Changes in fair value for effective hedges that are achieved with derivative instruments are reported as deferrals in the statements of net position.

The City uses derivative instruments to hedge its exposure to changing interest rates through the use of interest rate swaps. The City had deb t that was layered with “synthetic fixed rate” swaps, which was refunded in 2008 and 2011. The balance of the deferral account for each swap is included as part of the deferred charge on refunding associated with the new bonds. The swaps were also employed as a hedge against the new debt. Hedge accounting was applied to that portion of the hedging relationship, which was determined to be effective. The negative fair value of the interest rate swaps related to the new hedging relationship has been recorded and deferred on the statement of net position. See Note 6 for further discussion related to the City ’s interest rate swaps.

38 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Various transactions permitted in the Utilit y’s Power Resources R i s k Management Policies may be considered derivatives, including energy and/or gas transactions for swaps, options, forward arrangements and c ongestion revenue rights. The City has determined that all of its contrac ts including congestion revenue rights fall under the scope of “normal purch ases and normal sales” and are exempt from GASB 53.

M. Long-Term Obligations

Long-Term Debt

Long-term debt and other long-term obligations are reported as liabilities in the applicable governmental and business-type activities columns in t h e government-wide financial statements and in the proprietary fun ds and fiduciary funds statements of net position. Bond premiums and d iscounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond p remium or discount.

In the fund financial statements, government fund types recogni ze bond issuance costs as expenditures during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discoun ts on debt issuance are reported as other financing uses.

Decommissioning

Federal regulations require the Electric Utility to provide for the future decommissioning of its ownership share of Units 2 & 3 at San Onofre Nuclear Generating Station (SONGS). The Electric Utility has establishe d trust accounts to accumulate resources for the decommissioning of the nuclear power plant and restoration of t he beachfront at San Onofre. Ba sed on the most current SONGS 2017 Decommissioning Cost Estimate (DCE), th e Electric Utility has fully funded its share of SONGS decommissi oning costs.

The SONGS 2020 DCE is expected to be submitted to the Californi a Public Utilities Commission in 2021 for approval.

As of June 30, 2021, the Electric Utility has set aside $48,647 in cash investments with the trustee and $13,838 in a designated decomm issioning reserve for the Electric Utility’s estimated share of the decommissioning costs.

Increases to the funds held for decommissioning liability are f rom investment earnings. The investment earnings are included in investment in come in the Electric Utility’s financial statements. An equivalent amount is reflected as decommissioning expense which is considered part of production and purchased power. Decreases to the funds held for decommissionin g liability are from actual funds drawn from the trust for decommissioning costs invoiced by SCE.

On February 23, 2016, the City Council adopted a resolution authorizing the commencement of SONGS decommissioning effective June 7, 2013. This resolution allows the Electric Utility to access the decommissioning trust funds to pay for its share of decommissioning costs. The Electric Uti lity began drawing decommissioning trust funds to pay for decommissioning costs in the fiscal year ended June 30, 2017. As of June 30, 2021, the Elect ric Utility has paid to date $36,398 in decommissioning obligations, which have been reimbursed by the trust funds.

N. Claims and Judgments Payable

Claims and judgments payable are recognized when it is probable t h a t a liability has been incurred and the amount of loss can be reasonably estimated.

Such claims, including an estimate for claims incurred but not reported at year end, are recorded as liabilities in the self-insurance internal service fund. As of June 30, 2021, the City had an obligation related to claims and judgments which is reflected as a liability on the government-wide statements and is more fully described in Note 10.

O. Fund Equity

In the fund financial statements, governmental fund balance is made up of the following components:

 Nonspendable fund balance is the portion of fund balance that cannot be spent due to form. Examples include inventories, prepaid am ounts, long-term loans, and notes receivable, unless the proceeds are restricted, committed or assig ned. Also, amounts that must be maintained intact legally or contractually, such as the princip al of a permanent fund are reported within the nonspendable category.

 Restricted fund balance is the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation o r limitations imposed by creditors or grantors.

 Committed fund balance is the portion of fund balance that can only be used for specific purposes due to formal action of the City Cou ncil throug
h adoption of a resolution prior to the end of the fiscal year.

Once adopted, the limitation imposed by resolution remains in place until 39 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

a similar action is taken (the adoption of another resolution) to remove or revise the limitation. The City Council approved the General Fund Reserve Policy setting a 10% minimum in the Emergency Reserve and 5% in the Contingency Reserve with an aspirational goal of 15% in the Emergency Reserve. The Emergency Reserve was established for th e purpose of addressing any extremely unusual and infrequent occurrences, such as a major natural disaster or a major unfore seen settlement. Utilization of the Emergency Reserve requires declaration of an emergency by a two-thirds majority of the City Council, and specification of the maximum dollar amount to be used. The Contingency Reserve was established for the purpose of providin g a “bridge” to facilitate a measured and thoughtful reduction in expenditures during times of economic downturn, rather than mak ing immediate and drastic budget reductions without the time for pr oper evaluation. Utilization of the Contingency Reserve, including specification of the maximum do llar amount to be used, requires approval by a two-thirds majority of the City Council. The rese rves committed at June 30, 2021 were calculated utilizing fiscal yea r 2021-2022 adopted General Fund expenditure budget of $287,000.

On April 2, 2019, the City Council approved the General Fund - Measure Z Contingency Reserve Policy setting a required $5,000 in the Contingency Reserve. The Contingency Reserve was established to cover necessary expenses in order to provide time for a measured and thoughtful reduction in expenditures during times of economic downturn, rather than making immediate and drastic budget reductions without the time for proper evaluation. Utilization of the Contingency Rese rve, including specification of the maximum dollar amount to be used , requires the affirmative votes of at least five members of the City Council.

 Assigned fund balance reflects the City’s intended use of reso urces.

Intent can be expressed by the City Council or by an official to which the City Council delegates the authority. On February 22, 2011, th e City Council approved a policy whereby the authority to assign fund balance was delegated to the City’s Chief Financial Officer, which authorized the assignment of fund balance for specific programs or purposes in accordance with City Council directives. The City also uses budget and finance policy to authorize the assignment of fund balance, whi ch is done through the adoption of t he budget and subsequent budget amendments throughout the year.

 Unassigned fund balance is the re sidual classification that in cludes all spendable amounts in the General Fund not contained in other classifications.

When expenditures are incurred for purposes for which both rest ricted and unrestricted (committed, assigned or unassigned) fund balances are available, the City’s policy is to use restricted amounts before unrestricted amounts.

Within unrestricted resources, committed resources are used first followed by assigned resources, and finally unassigned resources.

P. Net Position

Net position represents the di fference between assets and defer red outflows less
liabilities and deferred inflows. Net position invested i n capital assets consists of capital assets, net of accumulated depreciation, re duced by the outstanding balances of any borrowings used for the related acq uisition, construction or improvement of those assets excluding unspent d ebt proceeds. Restricted net position represents restricted assets less liabilities and deferred inflows related to t hose assets. Restricted assets are recorded when there are limitations imp osed on their use either through legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Restricted resources are used first to fund appropriations.

Q. Interfund Transactions

Interfund transactions are accounted for as revenues and expend itures or expenses. Transactions, which con stitute reimbursements, are eliminated in the reimbursed fund and accounted for as expenditures or expens es in the fund to which the transaction is applicable.

During the year, transactions occur between individual funds fo r goods provided or services rendered. Related receivables and payables are classified as "due from/to other funds" on the accompanying fun d level statements. The noncurrent portion of long-term interfund loans receivable are reported as advances and, for governmental fund types, are equally offset by nonspendable fund balance to indicate that the receivable is not in spendable form.

Any residual balances outstanding between the governmental acti vities and business-type activities are repo rted in the government-wide fi nancial statements as “internal balances.”
40 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

R. Unearned Revenue

Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to meeting all eligibility requirements. In subsequent periods, when both revenue recognition criteria are met, or when the government has a lega l claim to the resources, revenue is recognized.

S. Unavailable Revenue

Unavailable revenue arises only under a modified accrual basis of accounting.

Accordingly, unavailable revenue is reported only in the govern mental funds balance sheet. These amounts are deferred and recognized as an inflow of resources (revenue) in the period that the amounts become available.

T. Deferred Outflows and Deferred Inflows of Resources

When applicable, the statement of net position and the balance sheet will report a separate section for deferred outflows of resources. Deferred outflows of resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore will not be recognized as an expense or expenditure until that time.

Conversely, deferred inflows of resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time.

U. Regulatory Assets and Deferred Regulatory Charges

In accordance with GASB Statement No. 62, enterprise funds that are used to account for rate-regulated activities are permitted to defer ce rtain expenses and revenues that would otherwise be recognized when incurred, provided that the City is recovering or expects to recover or refund suc h amounts in rates charged to its customers. Accordingly, regulatory assets and/or deferred regulatory charges have been recorded in the Electric, Water, S ewer and Refuse funds.

V. Property Tax Calendar

Under California law, general property taxes are assessed for up to 1% of the property’s assessed value. General property taxes are collected b y t h e counties along with other special district taxes and assessment s and voter approved debt. General property tax revenues are collected and pooled by the county throughout the fiscal year and then allocated and paid to the county, cities and school districts based on complex formulas prescribed by State statutes.

Property taxes are calculated on assessed values as of January 1 for the ensuing fiscal year. On January 1 of the fiscal year the levy is placed and a lien is attached to the property. Property taxes are due in tw o installments.

The first installment is due November 1 and is delinquent after December 10.

The second installment is due February 1 and is delinquent after April 10. The City generally accrues only those taxes, which are received wit hin sixty days after the year-end. Under the T eeter plan, the County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100% of the levy.

W. Use of Estimates

The preparation of financial statements in conformity with acco unting principles generally accepted in the United States of America r equires management to make estimates and assumptions that affect the re ported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial stat ements, and the reported amoun ts of revenue and expenditures. Specifically, the City has made certain estimates and assumptions relating to the revenues due and expenditures incur red through fiscal year end, collectability of its receivables, the valuati on of property held for resale, the useful lives of capital assets, and the ultimate outcome of claims and judgments. Actual results may differ from those estimates and assumptions.

X. Pensions

For purposes of measuring the net pension liability and deferre d outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Riverside California Public Employees’ Retirement System (CalPERS) plans (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 purpos e, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investmen ts are reported at fair value.

Y. Other Post-Employment Benefit (OPEB)

OPEB refers to the benefits, other than pensions, that the City provides as part of an employee’s retirement benefits. The net OPEB liability is defined as the 41 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

liability of employers contributing to employees for benefits p rovided through a defined benefit OPEB plan that is administered through a trust.

Z. New Accounting Pronouncements

Effective July 1, 2020, the accompanying financial statements reflect the implementation of Government Accounting Standards Board Statement No. 84 (GASB 84) and Government Accounting Standards Board Statemen t No.

90. GASB 84 establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1 ) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separa te criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. Governments with activities meeting the criteria present a statement of fiduciary net position and a statement of changes in fiduciary net position. An exception to that requirement is provided for a business-type activity that normally expects to hold cust odial assets for three months or less. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, an d (4) custodial funds. Custodial funds generally should report fiduciary activi ties that are not held in a trust or equivalent arrangement that meets specific c riteria. This Statement also provides for rec ognition of a liability to the b eneficiaries in a fiduciary fund when an event has occurred that compels the government to disburse fiduciary resources. Events that compel a government t o disburse fiduciary resources occur when a demand for the resources has b een made or when no further action, approval, or condition is required to be taken or met by the beneficiary to release the assets. For fiscal year 2020/ 21, the City reported custodial fund and private purpose trust fund.

GASB 90 objectives are to impro ve the consistency and comparabi lity of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statemen t information for certain component units. It defines a majority equity inter est and specifies that a majority equity interest in a legally separate organizat ion should be reported as an investment if a government’s holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including perman ent and term endowments) or permanent fund. Those governments and funds shou ld measure the majority equity inter est at fair value. For all oth er holdings of a majority equity interest in a legally separate organization, a government should report the legally separate organization as a component unit, a nd the government or fund that holds the equity interest should report an asset related to the majority equity interest using the equity method. This S tatement

establishes that ownership of a majority equity interest in a l egally separate organization results in the government being financially accountable for the legally separate organization and, therefore, the government should report that organization as a component unit. The implementation of this st atement had no impact on the City’s financial statements for fiscal year 2020/21.

The City early adopted GASB Statement No. 98, the Annual Comprehensive Financial Report, which establishes the term annual comprehensive financial report and its acronym ACFR. The new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. T h i s statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive annual financial report sounds like a profoundly objectionable racial slur. This Statement’s introduction of the new term is founded on a commitment to prom oting inclusiveness.

2. Legal Compliance – Budgets

Budgets are adopted on a basis con sistent with accounting princ iples generally accepted in the United States of America. Annual app ropriated budgets are adopted for all departments within the general, spe cial revenue and capital project funds. Formal budgets are not employed for debt service funds because debt indenture provisions specify payments. The p ermanent fund is not budgeted.

Biannually, during the period December through February, department heads prepare estimates of required appropriations for the following two-year budget cycle. These estimates are compiled into a proposed operating b udget that includes a summary of proposed expenditures and financial resou rces and historical data for the preceding budget cycle. At least thirty-five days prior to the beginning of the fiscal year, the City Manager provides the proposed budget, in writing, to the City Council for review. Following Council review, a public hearing is set to obtain citizen comments. The City Cou ncil generally conducts the public hearing and adopts the budget during one of i t s J u n e meetings. The City Manager is legally authorized to transfer bu dgeted amounts between divisions and accounts within the same departme nt.

Transfer of appropriations between departments or funds and inc reased 42 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

appropriations must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations within a fund. All appropriations shall lapse at the end of the fiscal year to the extent they have not been expended or lawfully encumbered, except for appropriations for capital p rojects which shall continue to their completion.

In 2020, community outreach on the biennial budget was interrup ted by the pandemic which presented significant challenges to staffing levels, the ability to accommodate public meetings, and the unknown impact of the pandemic on City finances. As a result of these challenges, the City tem porarily shifted to a one-year budget and instituted an emergency budget process compliant with the City Charter. The City Council adopted an emergency bu dget for FY 2020/21 following a public hearing on June 16, 2020.

3. Cash and Investments

Cash and investments at fiscal year-end consist of the following:

Investments 825,710$
Investments at fiscal agent 119,495
945,205
Cash on hand and deposits with financial institutions 62,987 1,008,192$
The amounts are reflected in the statements of net position of the government-wide and fiduciary fund financial statements:

Cash and investments 788,305$
Restricted cash and cash equivalents 72,100
Restricted cash and investments with fiscal agent 107,789 Total per statement of net position 968,194
Fiduciary fund cash and investments 27,424
Fiduciary fund cash and investments with fiscal agent 12,574 1,008,192$
The City follows the practice of pooling cash and investments o f all funds except for funds required to be held by outside fiscal agents u nder the provisions of bond indentures, which are administered by outside agencies.

Interest income earned on pooled cash and investments is alloca ted monthly to funds based on the beginning and month-end balances. Intere st income from cash and investments held at fiscal agents is credited dir ectly to the related account. Bank deposits are covered by federal deposito ry insurance for the first $250 or by collateral held in the pledging bank’s trust department in the name of the City.

Authorized Investments

Under provisions of the City's investment policy, and in accord ance with California Government Code Section 53601, the City Treasurer may invest or deposit in the following types of investments:

M a x
Maturit
y
Max % of
Portfolio
Local Agency Investment Fund (State Pool) N/A 100%
Money Market Funds N/A 20%
Mutual Funds N/A 20%
Joint Powers Authority Pools N/A 100%
Medium-Term Corporate Notes 5 Years 30%
Municipal Bonds 5 Years 30%
Negotiable Certificates of Deposit 5 Years 30%
Mortgage Pass-Through and
Asset-Backed Securities 5 Years 20%
Certificates of Deposit Placement Services 5 Years 30% Collateralized Time Deposits 5 Years 30%
Federally Insured Time Deposits 5 Years 30%
Supranational Securities 5 Years 30%
Federal Agency Securities 5 Years N/A
U.S. Treasury Notes/Bonds 5 Years N/A
Repurchase Agreements 1 Year N/A
Commercial Paper of “prime” quality 270 Days 25%
Bankers’ Acceptances 180 Days 10%
Reverse Repurchase Agreements 92 Days 20%

Investments in Corporate Medium-Term Notes may be invested in s ecurities rated “A” or better by at least one nationally recognized stati stical rating agencies. No more than 5% of the market value of the portfolio may be invested in any single issuer.

Investments in Negotiable Certif icates of Deposit exceeding fed eral deposit insurance limits shall be issued by institutions which have lon g-term debt obligations rated “A” (or the equivalent) or better and short-t erm debt obligations, if any, rated “A1” (or the equivalent) or better b y at least one nationally recognized statistical rating agencies. No more than 5% of one 43 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

market value of the portfolio may be invested in any single issuer of negotiable or non-negotiable certificates of deposit.

Investments in Commercial Paper may be invested in securities r ated “A1” (or the equivalent) or higher by at least one nationally recogn ized statistical rating agency. In addition, debt other than Commercial Paper, i f any, issued by corporations in this category must be rated at least “A” (or the equivalent) or better by at least one nationally recognized statistical rating agency. No more than 5% of the market value of the portfolio may be invested in any single issuer. For purposes of this issuer limitation, holdings of Com mercial Paper shall be combined with holdings of Medium-Term Corporate Notes. No more than 25% of the total market value of the portfolio may be inve sted in Commercial Paper. No more than 10% of the outstanding Commercia l Paper of any single issuer may be purchased.

The City’s investment policy provides the following three excep tions to the above: (1) investments authorized by debt agreements, (2) investments in the City of Riverside - 115 Trust for Pension and (3) funds reserve d in the San Onofre Nuclear Generating Station Decommissioning Account for w hich the five-year maturity limitation may be extended to the term of th e operating license.

Investments Authorized by Debt Agreements

Provisions of debt agreements, rather than the general provisio ns of the California Government Code or the City’s investment policy, gov ern investments of debt proceeds held by bond fiscal agents. Permit ted investments are specified in related trust agreements and inclu de the following:

 Securities of the U.S. Governm ent and its sponsored agencies  Bankers’ Acceptances rated in the single highest classificatio n  Commercial Paper rated AA or h igher at the time of purchase  Investments in money market funds rated in the single highest classification, except for certain debt proceeds which have no minimum rating requirement
 Municipal obligations rated Aaa/AAA or general obligations of states with ratings of at least A2/A or higher by both
Moody’s and S&P
 Investment Agreements

No maximum percentage of the related debt issue or maximum investment in one issuer is specified.

Investments in the City of Riverside - 115 Trust for Pension

The City has established the City of Riverside - 115 Trust for Pension (the Plan) to accumulate resources for future contributions to CalPERS. As of June 30, 2021, the City had $10,697 of restricted cash and inve stments reported in the General Fund in a Section 115 Trust restricted for future pension contributions. The City has retained US Bank as the trustee. US Bank has delegated investment authority to HighMark Capital Manageme nt, an SEC-registered investment adviser, with the full investment discretion over the managed assets in the account. The goal of the Plan’s investment program is to provide a reasonable level of growth which will result in sufficient assets to pay the present and future obligations of the Plan.

 Investment Time Horizon: Intermediate-Term 5 - 7 years  Anticipated Cash Flows: Assets in the Plan will seek to mitigate the impact of future rate increases from CalPERS.
 Investment Objective: Moderately Conservative
 Risk Tolerance: Moderately Conservative
 Portfolio Type: Index Plus (passive)
 Strategic Asset Allocation:

Strategic Asset
Allocation Ranges Policy
Cash 0% - 20% 5%
Fixed Income 50% - 80% 65%
Equity 20% - 40% 30%

 Investment Limitations: The follo wing investment transactions are prohibited:
o Direct investments in precious m etals (precious metals mutual funds and exchange-traded funds are permissible).
o Venture Capital
o Short sales*
o Purchases of Letter Stock, Private Placements, or direct payments
o Leveraged Transactions*
o Commodities Transactions Puts, calls, straddles, or other opti on strategies*
o Purchases of real estate, wit h the exception of REITs o Derivatives, with exception o f Exchange Traded Funds (ETFs)* *Permissible in diversified mutual funds and exchange-traded funds 44 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Disclosures Relating to Fair Value Measurement and Application

Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the input s to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical ass ets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of air value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
 Quoted prices for similar assets or liabilities in active mark ets;  Quoted prices for identical or similar assets or liabilities in markets that are inactive;
 Inputs other than quoted prices t hat are observable for the as set or liability;

 Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflec t the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the ci rcumstances and may include the City’s own data.

The fair value of the City’s investments in categorized within Level 2 of the fair value hierarchy using the institutional bond quotes with evalua tions based on various market and industry inputs.

The City has the following recurring fair value measurements as of June 30, 2021:

Total
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Joint Pow ers Authority Pool 136,400$ 136,400$ -$ -$ Mortgage Pass-Through Securities 33,527 - 33,527 - Asset-Backed Securities 25,311 - 25,311 - U.S. Treasury Obligations 181,064 - 181,064 - Federal Agency Obligations 134,493 - 134,493 - Medium-Term Corporate Notes 118,940 - 118,940 - Supranational Securities 28,579 - 28,579 - Negotiable Certificates of Deposits 9,463 - 9,463 - Held by Fiscal Agent:

Asset-Backed Securities 1,174 - 1,174 - Commercial Paper 1,000 - 1,000 - U.S. Treasury Obligations 28,616 - 28,616 - Federal Agency Obligations 2,666 - 2,666 - Medium-Term Corporate Notes 10,121 - 10,121 - Supranational Securities 2,032 - 2,032 - Total 713,386$ 136,400$ 576,986$ -$ Investments not subject to
fair value hierarchy:

Local Agency Investment Fund 151,237
Mutual Funds 10,567
Money Market Funds 59,254
Investment Contracts 10,761
Total Investments 945,205$

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 ch anges in market interest rates. The City’s investment policy requires that the interest rate risk exposure be managed 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 ov er time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Cit y’s investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following tabl e that shows the distribution of the City’s investments by maturity:

45 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Total
12 months or
Less
13 to 36
Months
37 to 60
Months
More than
60 Months
Money Market Funds 7,933 $ 7,933 $ - $ - $ - $ Joint Powers Authority Pool 136,400 136,400 - - - Local Agency Investment Fund 150,000 150,000 - - - Mortgage Pass-Through Securities 33,527 11,138 20,602 1,787 - Asset-Backed Securities 25,311 - 7,173 18,138 US Treasury Obligations 181,064 27,615 115,765 37,684 - Federal Agency Obligations 134,493 15,335 49,309 69,849 - Medium-Term Corporate Notes 118,940 18,355 22,541 78,044 - Supranational Securities 28,579 - - 28,579 - Neg Certificate of Deposit 9,463 9,463 - - - Held by Fiscal Agent
Money Market Funds 51,321 51,321 - - - Mutual Funds 10,567 10,567 - - - Local Agency Investment Fund 1,237 1,237 - - - Asset-Backed Securities 1,174 - - 1,174 Investment Contracts 10,761 - - - 10,761 Commercial Paper 1,000 1,000 - - - US Treasury Obligations 28,616 12,145 9,334 7,137 - Federal Agency Obligations 2,666 - 2,666 - - Medium-Term Corporate Notes 10,121 - 1,366 8,755 - Supranational Securities 2,032 - - 2,032 - Total 945,205$ 452,509$ 228,756$ 253,179$ 10,761$ Remaining Maturity (in Months)

The City assumes that callable investments will not be called.

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 actual rating as of year-end for each investment type:

Total AAA AA A Unrated
Money Market Funds 7,933$ 2,766 $ - $ - $ 5,167$ Joint Pow ers Authority Pool 136,400 136,400 - - - Local Agency Investment Fund 150,000 - - - 150,000 Mortgage Pass-Through Securities 33,527 33,527 - - - Asset-Backed Securities 25,311 20,576 - - 4,735 US Treasury Obligations 181,064 181,064 - - - Federal Agency Obligations 134,493 129,123 - - 5,370 Medium-Term Corporate Notes 118,940 - 35,575 66,059 17,306 Supranational Securities 28,579 19,269 - - 9,310 Neg Certificate of Deposit 9,463 - - - 9,463 Held by Fiscal Agent
Money Market Funds 51,321 10,956 - - 40,365 Mutual Funds 10,567 - - - 10,567 Local Agency Investment Fund 1,237 - - - 1,237 Asset-Backed Securities 1,174 1,174 - - - Investment Contracts 10,761 - - - 10,761 Commercial Paper 1,000 - - - 1,000 US Treasury Obligations 28,616 28,616 - - - Federal Agency Obligations 2,666 2,666 - - - Medium-Term Corporate Notes 10,121 - 2,879 6,547 695 Supranational Securities 2,032 2,032 - - - Total 945,205$ 568,169$ 38,454$ 72,606$ 265,976$ *Fitch rating used, with - and + removed for simplicity.

Rating as of Year E nd *

Concentration on Credit Risk

The investment policy of the City contains no limitations on th e amount that can be invested in any one issuer beyond that stated above. Fo r fiscal year ended June 30, 2021, the City did not have any investments in any one issuer (other than U.S. Treasury securities, money market funds, and e xternal investment pools) that represent 5% or more of total City investments.

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 t hat 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 City’s investment policy requires that a third-party bank t rust department hold all securities owned by the City. All trades are settled on a delivery vs. 46 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

payment basis through the City’s safekeeping agent. The City has no deposits with financial institutions; bank balances are swept daily into a money market account.

The pledge to secure deposits is administered by the California Commissioner of Business Oversight. Collateral is required for demand deposi ts at 110% of all deposits not covered by federal depository insurance (FDIC) if obligations of the United States and its agencies, or obligations of the St ate or its municipalities, school districts, and district corporations are pledged. Collateral of 150% is required if a deposit is secured by first mortgages or first trust deeds upon improved residential real property located in California. All such collateral is considered to be held by the pledging financial institutions’ trust departments or agents in the name of the City. Obligations pledged to secure deposits must be delivered to an institution ot her than the institution in wh ich the deposit is made; however, the trust department of the same institution may hold them.

Written custodial agreements are required to provide, among other things, that the collateral securities are held separate from the assets of the custodial institution.

Investment in State Investment Pool

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 amortize d cost of that portfolio). The balance available for withdrawal is based on th e accounting records maintained by LAIF, which are recorded on an amortized cost basis.

4. Direct Financing Lease Receivable

The former Redevelopment Agency had a direct financing lease arrangement with the State of California (the State) for a twelve-story office building, which was transferred to the Successor Agency. The lease term is for thirty years and the State takes ownership of the facility at the conclusion of that term. The lease calls for semi-annual payments not less than the debt ser vice owed on the related lease revenue bonds issued by the former Redevelopment Agency for the purchase and renovation of the building.

The future minimum lease payments to be received are as follows:

Fiscal Year
2022 2,724$
2023 2,759
2024 2,786
2025 2,823
Total Due 11,092
Less: Amount applicable to interest (1,382)
Total direct financing lease receivable 9,710 $

5. Capital Assets

The following is a summary of changes in the capital assets during the fiscal year ended June 30, 2021.

Beginning Additons/ Deletions/ Ending
Balance Trans fers In Trans fers Out R eclassifications Balance 338,504$ 38,112 $ * - $ - $ 376,616$ 68,398 41,057 (612) (78,023) 30,820 Total capital assets not depreciated 406,902 79,169 (612) (78,023) 407,436 146,607 15 - 43,610 190,232 262,688 45 - 1,016 263,749 115,029 3,924 (4,591) 1,720 116,082 219 - - - 219 1,076,049 53,828 ** - 31,677 1,161,554 Total capital assets being depreciated 1,600,592 57,812 (4,591) 78,023 1,731,836 (74,554) (4,077) - - (78,631) (144,995) (11,438) - - (156,433) (80,204) (7,355) 4,590 - (82,969) (216) (3) - - (219) (457,487) (26,433) - - (483,920) Total accumulated depreciation (757,456) (49,306) 4,590 - (802,172) Total capital assets being
depreciated, net 843,136 8,506 (1) 78,023 929,664 Governmental activities
capital assets, net 1,250,038$ 87,675$ (613)$ -$ 1,337,100$ * 37,951 related to prior period adjustment
** 42,333 related to prior period adjustment
Improvements other than buildings
Machinery and equipment
Intangibles, depreciable
Infrastructure
Governmental activities:

Less accumulated depreciation for:

Buildings
Capital assets, not depreciated:

Land
Construction in progress
Capital assets being depreciated:

Buildings
Machinery and equipment
Intangibles, depreciable
Infrastructure
Improvements other than buildings

47 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Beginning Additons/ Deletions/ Ending
Balance Transfers In Transfers Out Reclassifications Balance 99,985$ 124$ -$ 2$ 100,111$ 21,574 52 - - 21,626 104,990 74,058 - (52,861) 126,187 Total capital assets not depreciated 226,549 74,234 - (52,859) 247,924 666,650 29 - 5,110 671,789 1,923,535 1,595 (969) 42,235 1,966,396 104,334 633 (2,382) 5,514 108,099 26,277 - - - 26,277 Total capital assets being depreciated 2,720,796 2,257 (3,351) 52,859 2,772,561 (183,953) (14,360) - - (198,313) (705,521) (48,740) 955 - (753,306) (72,243) (5,515) 2,371 - (75,387) (13,940) (3,175) - - (17,115) Total accumulated depreciation (975,657) (71,790) 3,326 - (1,044,121) Total capital assets being
depreciated, net 1,745,139 (69,533) (25) 52,859 1,728,440 Business-type activities
capital assets, net 1,971,688$ 4,701$ (25)$ -$ 1,976,364$ Intangibles, depreciable
Machinery and equipment
I
ntangibles, non-depreciable
Business-type activities:

Less accumulated depreciation for:

Buildings
Capital assets, not depreciated:

Land
Construction in progress
Capital assets being depreciated:

Buildings
Improvements other than buildings
Intangibles, depreciable
Machinery and equipment
Improvements other than buildings

Depreciation expense was charged to various functions as follows:

General government 3,698$
Public safety 6,955
Highway and streets, including general infrastructure 27,108 Culture and recreation 10,713
Internal service funds 832
Total depreciation expense - governmental activities 49,306$ Governmental activities:

Electric 35,654$
Water 16,346
Sewer 14,480
Airport 712
Refuse 859
Transportation 464
Public Parking 796
Civic Entertainment 2,479
Total depreciation expense - business-type activities 71,790 $ Business-type activities:

6. Derivative Instruments

Interest Rate Swaps

The City has six cash flow hedging derivative instruments, which are pay-fixed swaps. These swaps were employed as a hedge against debt that w as refunded in 2008 and 2011 and against debt issued in 2012. The balance of the deferral account for each swap is included as part of the d eferred charge on refunding associated with the new bonds. The swaps were also employed as a hedge against the new debt. Hedge accounting was applied to that portion of the hedging relationship, which was determined to be effective.

Hedge accounting was also applied to the swap associated with t he debt issued in 2012, which was also determined to be effective.

The following is a summary of the derivative activity for the y ear ended June 30, 2021:

Change in
Fair Value Fair Value
Notional as of for Fiscal
Amount 06/30/21 Year
Governmental activities
2008 Renaissance Certificates of Participation* 62,787$ (13,118) $ 4,772 $ Business-type activities
2008 Renaissance Certificates of Participation* 27,213 (5,686) 2,068 2008 Electric Refunding/Revenue Bonds Series A 32,450 (4,731) 1,767 2008 Electric Refunding/Revenue Bonds Series C 32,150 (7,520) 2,767 2011 Electric Refunding/Revenue Bonds Series A 37,450 (7,717) 2,949 2011 Water Refunding/Revenue Bonds Series A 24,050 (5,683) 2,091 2012 Convention Center Financing 29,707 (1,890) 1,349 * The 2008 Riverside Renaissance Certificates of Participation were distributed between Governmental Activities and Business-Type Activities to properly reflect their proportional share.

Objective: In order to lower borrowing costs as compared to fixed-rate bonds, the City entered into interest rate swap agreements in connecti on with its $141,840 2008 Electric Revenue Bonds (Series A and C), $56,450 2011A Electric Revenue Bonds, $59,000 2011A Water Revenue Bonds and $128,300 2008 Certificates of Participation (“COP”). Also, in 2012, the City entered into an additional interest rate swap agreement in connection with the $41,650 Convention Center financing with BBVA Compass Bank.

Terms: Per the existing swap agreements, the City pays a counterparty a fixed payment and receives a variable payment computed as 62.68% of the London Interbank Offering Rate (“LIBOR”) one month index plus 12 basis points for 48 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

the Electric and Water swaps. For the COP swap, the City pays a fixed payment and receives a variable payment computed as 63.00% of the LIBOR one-month index plus 7 basis points. The Convention Center fin ancing consists of an initial 21-month variable rate interest only per iod during construction, which swaps to a fixed rate for the remaining 20- year amortization whereby the City will pay a fixed payment and will receive a variable payment computed at 65.01% of the LIBOR one month inde x plus 150 basis points. The notional value of the swaps and the prin cipal amounts of the associated debt decline at a smaller rate until the debt is completely retired in fiscal year 2037.

The bonds and the related swap agreements for the 2008A Electric Revenue Bonds mature on October 1, 2029, 2008C Electric and 2011A Elect ric and 2011A Water Revenue/Refunding Bonds mature on October 1, 2035. The 2008 Certificates of Participation mature on March 1, 2037. The loan with BBVA Compass Bank will be paid in full on April 1, 2034.

As of June 30, 2021, rates were as follows:

2008 Electric 2008 Electric 2011 Electric
Refunding/ Refunding/ Refunding/
Revenue Revenue Revenue
Bonds Bonds Bonds
Series A Series C Series A
Rates Rates Rates
Interest rate swap:

Fixed payment to counterparty 3.11100% 3.20400% 3.20100% Variable payment from counterparty -0.58168% -0.58230% -0.60582 % Net interest rate swap payments 2.52932% 2.62170% 2.59518% Variable rate bond coupon payments 0.48121% 0.48066% 0.58006% Synthetic interest rate on bonds 3.01053% 3.10236% 3.17524% 2011 Water
Refunding/ 2012
Revenue 2008 Convention
Bonds Renaissance Center
Series A COPs Financing
Rates Rates Rates
Interest rate swap:

Fixed payment to counterparty 3.20000% 3.36200% 3.24000% Variable payment from counterparty -0.57363% -0.54260% -2.10871 % Net interest rate swap payments 2.62637% 2.81940% 1.13129% Variable rate bond coupon payments 0.55643% 0.50358% 2.10871% Synthetic interest rate on bonds 3.18280% 3.32298% 3.24000%

Fair Value: As of June 30, 2021, in connection with all swap ar rangements, the transactions had a combined net negative fair value of $46,345. Because the coupons on the City’s variable-rate bonds adjust to changing interest rates, the bonds do not have a correspondi ng fair value decrease. The fair value was developed by a pricing service using the zero-coupon method . T h i s method calculates the future net settlement payments required b y the swap, assuming that the current forward rates implied by the yield cu rve correctly anticipate future spot interest rates. These payments are then d i s c o u n t e d using the spot rates implied by the current yield curve for hyp othetical zero-coupon bonds due on the date of each future net settlement of the swap.

Credit risk: The City is not exposed to credit risk on the swaps because those swaps have a negative fair value. The swap counterparties, Bank of America, N.A., Merrill Lynch Capital Services, Inc., BBVA Compass Bank a nd J.P. Morgan Chase & Co. were rated A+, A-, A and A- respectively by Standard & Poor’s. To mitigate the potential for credit risk for these swaps, the swap agreements require the fair value of the swap to be collaterali zed by the counterparty with U.S. Government securities if the counterpart ies’ rating decreases to negotiated trigger points. Collateral would be po sted with a third-party custodian. At June 30, 2021, there is no requiremen t for collateral posting for any of the outstanding swaps.

Basis risk: The City is exposed to basis risk on its pay-fixed interest rate swap and rate cap hedging derivative instruments because the variabl e-rate payments received by the City on these hedging derivative instr uments are based on a rate or index other than interest rates the city pay s on its hedged variable-rate debt. If a change occurs that results in the rat es’ moving to convergence, the expected cost savings may not be realized.

Termination risk: The derivative contract uses the International Swap Dealers Association Master Agreement, which includes standard terminati on events, such as failure to pay and bankruptcy. The Schedule to the Master Agreement includes an “additional termination event.” That is, a swap may be terminated by the City if either counterparty’s credit quality falls below “BBB-“as issued by Standard and Poor’s. The City or the counterparty may terminat e a swap if the other party fails to perform under the terms of the contrac t. If a swap is terminated, the variable-rate bond would no longer carry a synthetic interest rate. Also, if at the time of termination, a swap has a negative fair value, the City would be liable to the counterparty for a payment equal to the swap’s fair value.

Swap payments and associated debt: As of June 30, 2021, the debt service requirements of the variable-rate debt and net swap payments as suming current interest rates remain the same, for their term are summ arized in the 49 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

following table. As rates vary, variable-rate bond interest pa yments and net swap payments will vary.

Interest Rate
Fiscal Year Principal Interest Swaps, Net Total
2022 6,947$ 1,750 $ 6,063 $ 14,760$ 2023 7,130 1,609 5,498 14,237 2024 6,104 1,539 5,354 12,997 2025 6,247 1,470 5,214 12,931 2026 13,180 1,377 4,938 19,495 2027-2031 81,323 5,134 19,161 105,618 2032-2036 96,516 1,600 7,076 105,192 2037-2041 5,023 19 108 5,150 Total 222,470$ 14,498 $ 53,412 $ 290,380$ Variable-Rate Bonds

7. Letters of Credit

The City’s 2008 Certificates of Participation, 2011 Electric Re venue Bonds (Series A), and 2008 Electric Revenue Bonds (Series A and C) re quire an additional layer of security bet ween the City and the purchaser of the bonds.

The City has entered into the following letters of credit (“LOC ”) in order to provide liquidity should all or a portion of the debt be optionally tendered to the remarketer without being successfully remarketed:

Debt Issue

LOC Provide
r

LOC
Expiration
Date

Annual
Commitment
Fee
2008 Certificates of Participation Bank of America, N.A. 2023 0.470% 2008A Electric Revenue Bonds Barclays Bank, PLC 2024 0.395% 2008C Electric Revenue Bonds Barclays Bank, PLC 2024 0.395% 2011A Electric Revenue Bonds

Bank of America N.A. 2023 0.295%
To the extent that remarketing proceeds are insufficient or not available, tendered amounts will be paid from drawings made under an irrev ocable direct-pay letter of credit.

Liquidity advances drawn against the LOC that are not repaid will be converted to an installment loan with principal to be paid quarterly not to exceed a 5-year period. The City would be required to pay annual interest equal to the highest of 8.0%, the Prime Rate plus 2.50%, the Federal Funds Rate plus 2.50% and 150% of the yield on the 30-year U.S. Treasury Bond. No amounts have ever been drawn against the four letters of credit due to a failed r emarketing. The various indentures allow the City to convert the mode of the de bt in the case of a failed remarketing.

On February 1, 2019, the City entered into a subordinate letter of credit agreement with U.S. Bank, National Association. The Subordinat e Letter of Credit is a tool approved through the Electric and Water Utility Five-Year Rate Plan to manage rate increases by enabling the Electric Utility and Water Utility to reduce cash levels while maintaining compliance with the Riv erside Public Utilities Cash Reserve Policy. Under the terms and conditions o f the agreement, the City may borrow up to $35,000 for purposes of the capital or operating financial needs of the Electric System and $25,000 fo r purposes of the capital or operating financ ial needs of the Water System. T here were no borrowings against the LOC as of June 30, 2021.

8. Long-Term Obligations

Changes in Long-Term Obligations: Below is a summary of change s in long-term obligations during the fiscal year:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
General obligation bonds 7,874$ -$ (1,396)$ 6,478$ 1,475$ 364,633 - (11,809) 352,824 14,597 94,802 - (4,587) 90,215 4,675 Lease revenue bonds 75,964 - (3,493) 72,471 3,248 Direct borrowings:

Loan payable 899 - (442) 457 457 18,207 - (3,285) 14,922 3,327 562,379$ -$ (25,012)$ 537,367$ 27,779$ Certificates of participation
Governmental activities:

Pension obligation bonds
Capital leases

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Revenue bonds 1,212,914$ - $ (36,309)$ 1,176,605$ 31,970$ 119,625 - (3,398) 116,227 5,508 28,483 - (1,270) 27,213 1,300 Lease revenue bonds 7,473 - (414) 7,059 434 Direct borrowings:

Notes payable 69,519 - (4,841) 64,678 4,729 Contracts payable 1,019 52 (4) 1,067 150 3,633 - (1,279) 2,354 773 1,442,666$ 52$ (47,515)$ 1,395,203$ 44,864$ Business-type activities:

Pension obligation
Certificates of
Capital leases

50 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Governmental activities:

Principal
General Obligation Bonds – Governmental Activities: Outsta nding

$20,000 Fire Facility Projects, Election of 2003
General Obligation Bond; 3.0% to 5.5%, due in
annual installments from $410 to $1,740 through
August 1, 2024.

$ 6,414
Add: Unamortized bond premium 64
Total General Obligation Bonds $6,478

Remaining general obligation bond debt service payments will be made from unrestricted revenues of the General fund. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 1,475$ 306$ 1,781$ 2023 1,560 229 1,789 2024 1,640 141 1,781 2025 1,739 48 1,787 Premium 64 - 64 Total 6,478$ 724 $ 7,202 $

Pension Obligation Bonds – Governmental Activities:

Principal
Outstanding
In 2018, the 2017 Taxable Pension Obligation Bonds
were distributed between Governmental Activities,
Business-Type Activities and the Successor Agency to
properly reflect their proportional share. Pension
Obligation bonds are not collateralized by assets, nor do they constitute an obligation of the City of Riverside
whereby the City is obligated to levy or pledge any form of taxation.

In 2020, the 2017 Taxable Pension Obligation Bonds
outstanding balances in the Successor Agency were
distributed between Govern mental Activities and
Business-Type Activities.

$89,540 California Statewide Community Development
Authority (Public Safety) 2004 Taxable Pension
Obligation Bond; 2.65% to 5.896%, due in annual
installments from $1,125 to $10,715 through
June 1, 2023.

$20,445

$31,960 2017 Taxable Pension Obligation Bonds Series
A; 1.25% to 3.125%, due in annual installments from
$2,910 to $3,580 through June 1, 2027; $15,299 relates
to Governmental Activities.

$432,165 2020 Taxable Pension Obligation Bonds
Series A; 1.646% to 3.857% due in annual installments
from $2,920 to $28,310 through June 1, 2045. $324,582
relates to Governmental Activities

Subtotal
Less: Unamortized bond discount
Total Pension Obli
gation Bonds

9,593

323,015

353,053
(229)
$352,824

Remaining pension obligation bond debt service payments will be made from unrestricted revenues of the General Fund. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 14,597$ 12,954$ 27,551$ 2023 16,890 12,284 29,174 2024 7,623 11,523 19,146 2025 9,840 11,353 21,193 2026 9,884 11,123 21,007 2027-2031 57,923 51,277 109,200 2032-2036 97,390 38,775 136,165 2037-2041 103,412 18,500 121,912 2042-2046 35,494 2,752 38,246 Discount (229) - (229) Total 352,824$ 170,541 $ 523,365 $

51 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Certificates of Participation – Governmental Activities:

Principal
Outstanding
In 2019, the 2008 Riverside Renaissance Certificates of Participation were distributed between Governmental
Activities and Business-Type Activities to properly reflect their proportional share.

$19,945 2006 Galleria at Tyler Public Improvements
Certificates of Participation are secured with collateral of the two level 912 space parking structure located near
Tyler Street and Nordstrom store, the Tyler Mall North
Plaza, the North Plaza parking, storm drains related to those improvements, and portions of two arterial streets;

4.0% to 5.0%, due in annual installments from $435 to
$1,270 throu
gh September 1, 2036.

$128,300 2008 Riverside Renaissance Certificates of
Participation are secured with collateral of the Andulka Park, Fairmount Park and Golf Course, Arlington
Heights Sports Park, Orange Terrace Park, Orange
Terrace Community Center and Orange Terrace Library;
issued at a variable rate; however, the City entered into an agreement to convert to a fixed rate of 3.4%. For
information on the swap agreement see Note 6. Due in
annual installments from $2,900 to $7,200 through
March 1, 2037; $71,159 relates to Governmental
Activities.

62,787

$35,235 2013 Pavement Rehab Certificates of
Participation are secured by Measure A Sales Tax
receipts; 4.0% to 5.0%, due in annual installments from $1,285 to $2,855 through June 1, 2033.

Subtotal
Plus: Unamortized bond premium
Total Certificates of Participation

26,660

89,452
763
$90,215

Remaining Certificates of Participation debt service payments w ill be made from unrestricted revenues of the Debt Service Fund. Annual deb t service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 4,675$ 3,408$ 8,083$ 2023 4,830 3,223 8,053 2024 5,054 3,031 8,085 2025 5,224 2,826 8,050 2026 5,463 2,612 8,075 2027-2031 30,861 9,649 40,510 2032-2036 28,318 3,421 31,739 2037-2041 5,027 127 5,154 Premium 763 - 763 Total 90,215$ 28,297 $ 118,512 $

Lease Revenue Bonds – Governmental Activities:

Principal
Outstanding
In 2019, the Series 2012A Lease Revenue Refunding
Bonds were distributed between Governmental
Activities, Business-Type Activities, and Successor
Agency to properly reflect their proportional share.

On August 15, 2012, the City issued the Series 2012A
Lease Revenue Refunding Bonds in the amount of
$41,240. The bonds are secured by lease payments on
a portion of the City Hall Complex and the Lincoln Police Patrol Center. The bonds were issued to refinance the
2003 Certificates of Participation. Interest on the bonds is payable semi-annually on May 1 and November 1 of
each year, commencing May 1, 2013. The rate of
interest varies from 2% to 5% per annum depending on
maturity date. Principal is payable in annual installments ranging from $1,295 to $2,840 commencing
November 1, 2013 and ending November 1, 2033. In
the event of default, the Trustee may retain the Lease
Agreement and hold the City liable for all Base Rental
Payments on an annual basis. The rental payments may
not be accelerated. $23,683 relates to Governmental
Activities.

$15,980 2019A Lease Revenue Refunding Bonds
(Galleria at Tyler Public Improvements) are secured by
lease payments on the two level 912 space parking
structure located near Tyler Street and Nordstrom store, the T
yler Mall North Plaza, the North Plaza parkin g,

$20,287

52 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

storm drains related to those improvements, and
portions of two arterial streets. The bonds were issued to refinance all but $5 of the outstanding 2006 Lease
Revenue Certificates of Partic ipation (Galleria at Tyler Public Improvements); 2.75% to 4.0%, due in annual
installments from $605 to $1,180 through
November 1, 2036. The refunding transaction resulted
in a total net present value savings of $1,140. In the
event of default, the Trustee may retain the Lease
Agreement and hold the City liable for all Base Rental
Payments on an annual basis. The rental payments may
not be accelerated.

$33,505 2019B Lease Revenue Refunding Bonds
(Main Library Project); 3.0% to 5.0%, due in annual
installments from $1,245 to $2,645 through
November 1, 2036. The bonds are secured by an
amendment to the Ground Lease entered into by the City
upon issuance of the 2012A Lease Revenue Bonds. It
adds the remainder of the City Hall Complex, the
Corporation Yard Administration Building and annex,
Bobby Bonds Park, and the Main Library site. In the
event of default, the Trustee may retain the Lease
Agreement and hold the City liable for all Base Rental
Payments on an annual basis. The rental payments may
not be accelerated.

Subtotal
Add: Net unamortized bond premium/discount
Total Lease Revenue Bonds

14,675

30,095

65,057
7,414
$72,471
Remaining lease revenue bond debt service payments will be made f r o m unrestricted revenues of the debt service fund. Annual debt se rvice requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 3,248$ 2,844$ 6,092$ 2023 3,384 2,700 6,084 2024 3,539 2,542 6,081 2025 3,588 2,389 5,977 2026 3,733 2,242 5,975 2027-2031 21,346 8,468 29,814 2032-2036 22,394 3,275 25,669 2037-2041 3,825 90 3,915 Premium 7,414 - 7,414 Total 72,471$ 24,550 $ 97,021 $

Direct Borrowings: Loans Payable – Governmental
Activities:

Principal
Outstanding
2012 financing arrangement in the amount of $4,000 for
the construction of Ryan Bonaminio Park at the
Tequesquite Arroyo, secured by lease payments for Fire
Station #’s 2, 3, 8, 9, 11, and 12. The debt will be paid with resources from the General Fund in semi-annual
debt service payments of approximately $468 per year
over a 10-year period, which includes interest at an
annualized rate of 3.05%. In the event of default, the
Corporation may terminate the Lease and require the
City to continue to make lease payments in the same
manner as previousl
y.

$457

The remaining loans payable debt service payment will be made f rom unrestricted revenues of the General Fund. Annual debt service requirement to maturity is as follows:

Fiscal Year Principal Interest Total
2022 457$ 10 $ 467 $
Total 457$ 10 $ 467 $

53 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands) Business-t
ype activities:

The followi
ng debt has been issued for the purpose of generating capital resources for use in acquiring or constructing municipal facili ties or infrastructure projects.

Revenue Bonds – Business-Type Activities:

Principal
Outstanding
Electric
All electric revenue bonds are covenanted per the
Amended and Restated Resolution No. 17662 (Electric)
Master Resolution that upon the occurrence and
continuation of an event of default, the owners of 25% in aggregate amount of Bond Obligation may, by written
notice to the City, declare the entire unpaid principal and accreted value of the bonds due and payable should the
City fail to pay its debts as they become due or upon the entry of any decree or order of bankruptcy of the City. $141,840 2008 Electric Refunding/Revenue Bonds;
Series A & C. The bonds were issued at a variable rate; however, the City entered into an agreement to convert
to a fixed rate of 3.1% and 3.2% for the Series A & C
bonds, respectively. See Note 6 for information on the swap agreements. Bonds are due in annual installments
from $700 to $7,835 through October 1, 2035. In 2019,
the Electric Fund refunded $40,425 of the outstanding
balance. $66,615
$140,380 2010 Electric Revenue Bonds fixed rate bonds,
3% to 7.65%, due in annual installments from $95 to
$33,725 through October 1, 2040. 130,990
$56,450 2011 Electric Revenue Refunding Bonds; Series
A. The bonds were issued at a variable rate; however,
the City entered into an agreement to convert to a fixed rate of 3.2%. For information on the swap agreements
see Note 6. Bonds are due in annual installments from
$725 to $5,175 through October 1, 2035. Upon event of
default, the bank may declare the outstanding amount of the obligations payable to be due immediately. During
fiscal
year 2019-20, the bonds originally issued as private
placement bonds were rem
arketed as public securities in
order to obtain a lower rate. The structure is the same and the existing swap is the same. 37,450
$79,080 2013 Electric Revenue Refunding Bonds; Series
A fixed rate bonds, 3% to 5.25%, due in annual
installments from $795 to $12,685 through
October 1, 2043. 37,275
$283,325 2019 Electric Refunding/Revenue Bonds;
Series A, fixed rate bonds, 5.0%, due in annual
installments from $3,545 to $24,005 through
October 1, 2048. The bonds refunded the 2008 Electric
Revenue Bonds Series D and partially refunded the 2008
Electric Revenue Bonds Series A and C. The refunding
transactions resulted in a total net present value savings of $36,810. 267,835
Subtotal 540,165
Add: Unamortized bond premium
Subtotal
47,657
587,822
Water
All water
revenue bonds are covenanted per the
Amended and Restated Resolution No. 17664 (Water)
Master Resolution that upon the occurrence and
continuation of an event of default, the owners of 25% in aggregate amount of Bond Obligation may, by written
notice to the City, declare the entire unpaid principal and accreted value of the bonds due and payable should the
City fail to pay its debts as they become due or upon the entry of any decree or order of bankruptcy of the City. $67,790 2009 Water Revenue Bonds; Series B fixed rate
bonds, 5.1% to 6.3%, due in annual installments from
$2,475 to $4,985 through October 1, 2039. 67,790
$59,000 2011 Water Refunding/Revenue Bonds; Series
A. The bonds were issued at a variable rate; however, the City entered into an agreement to convert to a fixed rate of 3.2%. For information on the swap agreements see
54 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Note 6. Bonds are due in annual installments from $600 to $3,950 through October 1, 2035.

24,050
$114,215 2019 Water Refunding/Revenue Bonds; Series
A, fixed rate bonds, 5.0%, due in annual installments from $1,680 to $8,455 through October 1, 2048. The bonds
refunded the 2008 Water Revenue Bonds Series B and
partially refunded and partially unwound the swap on the 2011 Water Revenue Bonds Series A. The refunding
transactions resulted in a total net present value savings of $10,759.

106,990

Subtotal

198,830
Add: Unamortized bond premium 18,476
Subtotal

217,306
Sewer

All sewer revenue bonds are covenanted per Resolution
No. 21860 Sewer Master Resolution that upon the
occurrence and continuation of an event of default, the owners of 25% in aggregate amount of Bond Obligation
may, by written notice to the City, declare the entire
unpaid principal and accreted value of the bonds due and payable should the City fail to pay its debts as they
become due or upon the entry of any decree or order of
bankruptcy of the City.

$200,030 2015 Sewer Revenue Bonds; Series A fixed
rate bonds, 4% to 5%, due in annual installments from
$4,790 to $14,175 through August 1, 2040.

184,965
$153,670 2018 Sewer Revenue Bonds; Series A fixed
rate bonds, 4% to 5%, due in annual installments from
$2,905 to $11,775 through August 1, 2039. The bonds
advanced refunded the 2009 Direct Pay Build America
Bonds Series B. The refunding transaction resulted in a total net present value savings of $18,932.

Subtotal
Add: Unamortized bond premium
Subtotal

147,185

332,150
39,327
371,477
Total Revenue Bonds $1,176,605

Remaining revenue bond debt service payments will be made from revenues of the Electric, Water, and Sewer Enterprise funds. Annual deb t service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 16,035$ 24,954$ 40,989$
2023 16,760 24,174 40,934
2024 17,515 23,362 40,877
2025 18,335 22,488 40,823
2026 19,305 21,580 40,885
2027-2031 109,365 94,522 203,887
2032-2036 130,895 67,788 198,683
2037-2041 167,130 33,900 201,030
2042-2046 29,105 7,310 36,415 2047-2051 15,720 1,205 16,925 Premium 47,657 - 47,657 Total 587,822$ 321,283 $ 909,105 $
Electric

Fiscal Year Principal Interest Total
2022 6,640$ 8,793$ 15,433$
2023 6,915 8,491 15,406
2024 7,215 8,167 15,382
2025 7,540 7,823 15,363
2026 7,875 7,463 15,338
2027-2031 44,900 31,365 76,265
2032-2036 53,675 20,917 74,592
2037-2041 46,400 8,598 54,998 2042-2046 10,225 3,189 13,414 2047-2051 7,445 571 8,016 Premium 18,476 - 18,476 Total 217,306$ 105,377$ 322,683$
Water

55 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Fiscal Year Principal Interest Total
2022 9,295$ 16,146$ 25,441$ 2023 9,770 15,669 25,439 2024 11,460 15,139 26,599 2025 12,050 14,551 26,601 2026 12,670 13,933 26,603 2027-2031 73,780 59,226 133,006 2032-2036 94,740 38,266 133,006 2037-2041 108,385 12,551 120,936 Premium 39,327 - 39,327 Total 371,477$ 185,481$ 556,958$
Sewer

Pension Obligation Bonds – Business Type Activities:

Principal
Outstanding
In 2018, the 2017 Taxable Pension Obligation Bonds
were distributed between Governmental Activities,
Business-Type Activities, and Successor Agency to
properly reflect their proportional share. Pension
Obligation Bonds are not collateralized by assets, nor do they constitute a debt of the City of Riverside whereby the City is obligated to levy or pledge any form of
taxation.

In 2020, the 2017 Taxable Pension Obligation Bonds
outstanding balances in the Successor Agency were
distributed between Govern mental Activities and
Business-T
ype Activities.

$31,960 2017 Taxable Pension Obligation Bonds Series
A; 1.25% to 3.125%, due in annual installments from
$2,910 to $3,580 through June 1, 2027. $16,661 relates
to Business T
ype Activities.

$10,447

$432,165 2020 Taxable Pension Obligation Bonds
Series A; 1.646% to 3.857% due in annual installments
from $2,920 to $28,310 through June 1, 2045. $107,583
relates to Business-Type Activities.

105,780
Total Pension Obligation Bonds $116,227

Remaining pension obligation bond debt service payments will be made from unrestricted revenues of the Business-type activities funds. An nual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 5,508$ 3,596$ 9,104$
2023 7,010 3,488 10,498
2024 8,457 3,342 11,799
2025 9,365 3,153 12,518
2026 9,636 2,932 12,568
2027-2031 27,727 11,504 39,231 2032-2036 25,925 7,397 33,322 2037-2041 20,483 2,621 23,104 2042-2046 2,116 108 2,224 Total 116,227$ 38,141$ 154,368$
Pension Obligation Bonds

Certificates of Participation – Business Type Activities:

$27,213

56 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Total Certificates of Participation $27,213
Remaining certificates of participation debt service payments w ill be made from unrestricted revenues of the Civic Entertainment Fund. Ann ual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 1,300$ 904$ 2,204$
2023 1,330 860 2,190
2024 1,391 815 2,206
2025 1,421 768 2,189
2026 1,482 719 2,201
2027-2031 8,254 2,805 11,059
2032-2036 9,857 1,300 11,157
2037-2041 2,178 55 2,233
Total 27,213$ 8,226 $ 35,439 $

Lease Revenue Bonds – Business Type Activities:

In 2019, the Series 2012A Lease Revenue Refunding
Bonds were distributed between Governmental Activities, Business-Type Activities, and the Successor Agency to
properly reflect their proportional share.

Principal
Outstanding
On August 15, 2012, the City issued the Series 2012A
Lease Revenue Refunding Bonds in the amount of
$41,240. The bonds are secured by lease payments on
a portion of the City Hall Complex and the Lincoln Police Patrol Center. The bonds were issued to refinance the
2003 Certificates of Participat ion. Interest on the bonds is payable semi-annually on May 1 and November 1 of
each year, commencing May 1, 2013. The rate of interest varies from 2% to 5% per annum depending on maturity
date. Principal is payable in annual installments ranging from $1,295 to $2,840 commencing November 1, 2013 and ending November 1, 2033. In the event of default, the Trustee may retain the Lease Agreement and hold the
City liable for all Base Rental Payments on an annual
basis. The rental payments may not be accelerated.
$8,242 relates to Business-T
ype Activities.

$7,059
Total Lease Revenue Bonds $7,059
Remaining lease revenue bond debt service payments will be made f r o m unrestricted revenues of the Parking Fund. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 434$ 302$ 736$
2023 457 280 737
2024 480 256 736
2025 466 236 702
2026 481 220 701
2027-2031 2,772 726 3,498 2032-2036 1,969 120 2,089 Total 7,059$ 2,140 $ 9,199 $

The following are legally required debt service cash reserves. These amounts, at a minimum, are held by the City or fiscal agents at June 30, 2021:

Governmental long-term obligations:

Certificates of participation 7,426$
Total 7,426$
Enterprise funds:

Electric 10,805$
Total 10,805$
The City has a number of debt issuances outstanding that are co llateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, d ebt service payments as a percentage of the pledged gross revenue (or net o f certain expenses where so required by the debt agreement) are indicated in the table below. The debt service coverage ratios also approximate the re lationship of debt service to pledged revenue for the remainder of the term o f the commitment.
57 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Annual Amount of Annual Debt Service Coverage
Pledged Revenue Payments (all of Ratio
Description of (net of expenses, debt secured by for FY Pledged Revenue where required) this revenue) 06/30/21
Electric revenues 89,371$ * 44,923$ 1.99 Water revenues 37,614 * 16,692 2.25 Sewer revenues 35,990 26,631 1.35 * Excludes non-cash pension expense

There are also a number of limit ations and restrictions contained in Assessment Bond indentures. The City believes they are in comp liance with all significant limitations and restrictions.

Direct Borrowings: Notes Payable – Business Type
Activities:

Note payable consists of several agreements with
Hillwood Enterprises, L.P. and related entities
(collectively Hillwood) for t heir development of logistic centers located in the City of San Bernardino. As a part of these agreements, the Water Utility leases land to
Hillwood and also purchased land from Hillwood with a
subsequent lease-back to the entity. In addition, the
agreements require Hillwood to relocate wells located on the properties as well as terminate an existing lease. In consideration of the cost of the land purchase, well
relocations and lease termination, the Water Utility will make payments to Hillwood in the form of a credit with
Hillwood’s rental payments to the Water Utility for the first 15 years of the leases.

Public Parking Fund and Civic Entertainment Fund loan
for Fox Entertainment Plaza project secured with
collateral of the Fox Theater, Fox Entertainment Plaza, and Parking Garage No. 7. 3.85%, payable in net annual
installments of $1,747, beginning June 16, 2011 through December 16, 2031. In the event of default, the City
would continue to remain liable for the payment of Rental Pa
yments and damages for breach of the Lease.

Principal
Outstanding

$18,139

14,970
On July 19, 2012, the City secured financing in the
amount of $41,650 with BBVA Compass Bank for the
renovation and expansion of the Riverside Convention
Center (Civic Entertainment Fund) secured with
collateral of the conventi on center facility. In
March 2014, the financing arrangement with BBVA was
increased to $44,650. The financing consists of an initial 21-month variable rate interest only period during
construction that has a swap transaction layered over
the remaining 20-year amortization resulting in a
“synthetic fixed” rate of 3.24% for 20 of the 22 years. For information on the swap agreement see Note 6. At the
end of the construction period, principal and interest are due on the first of each month, with equal payments each year of approximately $2,850. In the event of default, the outstanding amount of the site lease payment drawn
by the City and not repaid will bear interest at a default rate that will be charged until the default is cured.

Total Notes Pa
yable

31,569

$64,478

Remaining notes payable debt service payments will be made from unrestricted revenues of the Water Fund, Public Parking Fund, a nd Civic Entertainment Fund. Annual debt service requirements to maturi t y a r e a s follows:

Fiscal Year Principal Interest Total
2022 1,500$ 383$ 1,883$ 2023 1,576 350 1,926 2024 1,655 314 1,969 2025 1,739 277 2,016 2026 1,827 237 2,064 2027-2031 8,656 528 9,184 2032-2036 1,186 19 1,205 Total 18,139$ 2,108 $ 20,247 $ Water Fund

58 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Fiscal Year Principal Interest Total
2022 3,229$ 1,552$ 4,781$ 2023 3,338 1,439 4,777 2024 3,446 1,322 4,768 2025 3,568 1,200 4,768 2026 3,688 1,075 4,763 2027-2031 20,389 3,341 23,730 2032-2036 8,881 377 9,258 Total 46,539$ 10,306$ 56,845$ Non-major Enterprise Funds

Direct Borrowings: Contracts Payable
Principal
Outstanding

Water stock acquisition rights payable on demand to
various water companies

$1,067

Direct Borrowings: Capital Leases

The City leases various equipment through capital leasing arran gements in the governmental and proprietary fund types. These activities are recorded for both governmental and business-type activities in the governmen t-wide financial statements. The asset s and related obligations under leases in governmental funds are not recorded in the fund statements. For proprietary funds, the assets and their related liabilities are reported di rectly in the fund.

Amortization applicable to proprietary assets acquired through capital lease arrangements is included with depreciation for financial statem ent presentation.

The assets acquired through capital leases are as follows:

Governmental Business-type
Asset Activities Activities
Machinery and equipment 26,926 8,007
Subtotal 26,926 8,007
Less: Accumulated depreciation (10,132) (5,290) Total 16,794$ 2,717$

The future minimum lease obligations as of June 30, 2021 were as follows:

Governmental Business-type
Fiscal Year Activities Activities
2022 3,640$ 819$
2023 2,808 626
2024 2,715 259
2025 2,715 259
2026 1,619 260
Thereafter 2,429 260
Total minimum lease payments 15,926 2,483 Less: Amount representing interest
(rates ranging from 1.2% to 9%) (1,004) (129) Total capital lease payable 14,922$ 2,354$

9. Compensated Absences

A liability is recorded for unused vacation and similar compens atory leave balances since the employees’ entitlement to these balances are attributable to services already rendered and it is probably that virtually all of these balances will be liquidated by either paid time-off or payments upon termination or retirement.

Below is a summary of changes in compensated absences during th e fiscal year:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities 29,228 $ 16,305$ (14,632) $ 30,901$ 15,472 $ 10,105 7,832 (5,932) 12,005 6,997 39,333 $ 24,137$ (20,564) $ 42,906$ 22,469 $
Compensated absences:

Business-type activities

10. Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Property insurance coverage has a limit of $1,000,000 with a deductible of $100. Earthquake and flood insurance coverage has a limit of $25,000, with a deductible of 5% (subject to $100 minimum for earthquake and $100 for flood). Workers’ compensation insurance coverage has a limit of $25,000, with a self-insured r etention of $3,000. The City has two General Liability policies: a primary and an excess General Liability policy. The primary General Liability policy coverage has a limit of $15,000 and the Excess General Liability policy provides an additional $10,000 of coverage, with a self-insured retention of $3,000. Both the primar
y and excess General liability
59 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

policies cover general and auto liability claims including but not limited to Law Enforcement Liability and Public Officials errors and omissions. There were no claims settled in the last three fiscal years that exceed insur ance coverage.

Internal service funds have been established to account for and finance the uninsured risks of loss.

All funds of the City participate in the Risk Management progra m and make payments to the Internal Service Funds based on actuarial estim ates of the amounts needed to fund prior and current year claims and incidents that have been incurred but not reported. Interfund premiums are account ed for as quasi-external transactions and are therefore recorded as reven ues of the Internal Service Funds in the fund financial statements.

Changes in the self-insurance fund’s claims liability amounts are:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Claims liability 53,828$ 35,818 $ (13,043)$ 76,603$ 15,044$ Governmental activities

Unpaid claims, June 30, 2019 $ 48,459
Incurred claims (including IBNR's) 12,324
Claim payments and adjustments (6,955)
Unpaid claims, June 30, 2020 53,828
Incurred claims (including IBNR's) 35,818
Claim payments and adjustments (13,043)
Unpaid claims, June 30, 2021 76,603$

11. Landfill Capping

State and Federal laws and regulations require the City to plac e a final cover on all active landfills when closed and to perform certain main tenance and monitoring functions at the landfill site for 30 years after cl osure. To comply with these laws and regulations, the City is funding the costs of closure and "final capping" of the Tequesquite landfill located in the City . This area, comprised of approximately 120 acres, operated as a "Class II S anitary Landfill" until its closure in 1985. During its operation, the landfill did not accept hazardous waste and no clean up and abatement or cease and desi st orders have been issued to the City. The capacity used at June 30, 2021 was 100%.

The remaining post closure period is currently 20 years.

The estimated costs as determined and updated by the Public Wor ks Department are associated with flood control up
grades, remediation of
possible ground water contamination and control of methane gas. All potential costs have been recognized in the financial statements. However, there is the potential for these estimates to change due to inflation, defla tion, technology, or change in laws or regulations. The City is recovering such costs in rates charged to its customers. The portion of costs to be recovered through future rates is classified as a regulatory asset and will be amortized over future periods.

Below is a summary of changes in landfill capping liability dur ing the fiscal year:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Landfill capping 10,776$ -$ ( 357)$ 10,419$ 559 $ Business-type activities

12. Nuclear Decommissioning Liability

As of June 30, 2021, decommissioning liability balance was $50, 896 with a portion reflected as current li abilities payable from restricte d assets. Due to adequate funding of the liability, the Electric Utility no long er provides additional funding to the trustee. However, since the decommissioning cost estimate is subject to a number of uncertainties including the cost of disposal of nuclear waste, site remediation costs, as well as a number o f other assumptions and estimates, the Electric Utility will continue to set aside funds in the unrestricted designated decommissioning reserve of $2,00 0 per year, as approved by the Board of Public Utilities and City Council.

Below is a summary of changes in decommissioning liability duri ng the fiscal year:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Decommissioning liability 55,708$ 628 $ (5,440) $ 50,896$ 7,254 $ Business-type activities

13. Commitments and Contingencies

Intermountain Power Agency

The Electric Utility has entered into a power purchase contract w i t h Intermountain Power Agency (IPA) for the delivery of electric p ower. The Electric Utility’s share of IPA power is equal to 7.6 percent, or approximately 137.1 MW, of the net generation output of IPA’s 1,800 MW coal-fueled generating station, known as Intermountain Power Project (IPP), located in central Utah. The contract expires in 2027 and the debt fully matures in 2024. 60 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

The contract constitutes an obligation of the Electric Utility to make payments solely from operating revenues. The power purchase contract req uires the Electric Utility to pay certain minimum charges that are based on debt service requirements and other fixed cost s. Such payments are considered a cost of production.

On September 29, 2006, Senate Bill 1368 (SB 1368) was enacted i nto law.

The bill requires electric servic e providers to limit financial investments in power plants to those that adhere to greenhouse gas performance standards as determined by the Public Utilities Commission. Pursuant to this legislation, the Electric Utility is prohibi ted from renewing its participat ion in IPP if it remains a coal fueled generating resource.

In order to facilitate the continued participation in the IPP, the IPA Board issued the Second Amendatory Power Sales Contract, which amended the I PP Contract allowing the plant to replace the coal units with combined cycle natural gas units by July 1, 2025. On June 16, 2015, the City Council approved the Intermountain Power Project renewal agreements, including t he Second Amendatory Power Sales Contract and the Renewal Power Sales Contract, and authorized participation in the IPP Repower Project for up to 5 percent in generation capacity or 60 MW. The Second Amendatory Power Sales Contract became effective March 16, 2016.

On January 5, 2017, the Electric Utility executed the Renewal Power Sales Contract and the Electric Utility accepted an offer of 4.167 percent entitlement or 50 MW generation capacity in the IPP Repower Project based on the 1,200 MW designed capacity, which is within the maximum participation level approved by the City Council. The Electric Utility’s correspond ing Southern Transmission System allocation is 5.278 percent or approximatel y 127 MW.

Further, under the Renewal Power Sales Contract, the Electric U tility has the right to exit from the Repower Project by no later than November 1, 2019, if it is determined that the Repower Project is not cost beneficial to its customers.

On September 11, 2018, the City Council approved “Alternative R epowering” of the IPP Repower Project, which reduced the design capacity o f the future plant from 1,200 MW to 840 MW.

On May 7, 2019, the City Council authorized termination of the Renewal Power Sales Contract between the IPA and the Electric Utility effective November 1, 2019, and the Electric Utility’s exit from the IPP Repower Project upon the expiration date of the current Power Sales Contract on June 15, 2027, due to numerous uncertainties surrounding the IPP Repower Project.

The Electric Utility is a membe r of SCPPA, a joint powers agenc y. SCPPA provides for the financing and construction of electric generat ing and transmission projects for participation by some or all of its members. To the extent the Electric Utility parti cipates in take-or-pay project s developed by SCPPA, it has entered into Power P urchase or Transmission Servi ce Agreem
ents, entitling the Electr ic Utility to the power output or transmission service, as applicable, and the Electric Utility will be obliga ted for its proportionate share of the project costs whether or not such generation output of transmission service is available.

The projects and the Electric Utility’s proportionate share of SCPPA’s obligations, including final maturities and contract expirations are as follows:

Terms of Take or Pay Commitments

As part of the take-or-pay commitments with IPA and SCPPA, the Electric Utility has agreed to pay its share of current and long-term ob ligations.

Management intends to pay these obligations from operating reve nues received during the year that payment is due. A long-term obligation has not been recorded on the accompanying financial statements for these commitments. Take-or-pay commitments terminate upon the later o f contract expiration or final maturity of outstanding bonds for each project.

The outstanding debts associated with the take-or-pay obligatio ns have fixed interest rates which range from 2.295 percent to 5.00 percent. The schedule below details the amount of principal and interest that is due and payable by the Electric Utility as part of t he take-or-pay contract for ea ch project in the fiscal year indicated.

Project Percent Share Entitlement Final Maturity Contract Expiration Palo Verde Nuclear Generating Station 5.40% 12.3 MW 2017 2030 Southern Transmission System 10.20% 244.0 MW 2027 2027
Mead-Phoenix Transmission 4.00% 18.0 MW 2020 2030
Mead-Adelanto Transmission 13.50% 118.0 MW 2020 2030
61 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

In addition to debt service, the Electric Utility’s entitlement s require the payment of fuel costs, operating and maintenance, administrative and general and other miscellaneous costs associated with the generation an d transmission facilities discuss ed above. These costs do not hav e a similar structured payment schedule as debt service varies each year. T he costs incurred for the years ended June 30, 2021 and 2020, are as fol lows (in thousands):

1 Excludes variable cost.

These costs are included in production and purchased power or transmission expense on the Statements of Revenues, Expenses and Changes in Net Position.

The Electric Utility has become a Participating Transmission Owner with the California Independent System Operator (CAISO) and has turned o ver the operational control of its trans mission entitlements including the Southern Transmission System, Mead-Phoe nix and Mead-Adelanto Transmissio n Projects. In return, users of the California’s high voltage transmission grid are charged for, and the Electric Utility receives reimbursement fo r, transmission revenue requirements, including the costs associated with these three transmission projects.

Hoover Uprating Project

The Electric Utility’s entitlement in the Hoover project through SCPPA terminated on September 30, 2017. On August 23, 2016, the City Council approved a 50-year Electric Service Contract (ESC) and an Amend ed and Restated Implementation Agreement (IA) with the Western Area Po wer Administration (Western), Bureau of Reclamation for 30 MW of hy droelectric power. The contract with Western is effective as of October 1, 2017. The ESC extends the Electric Utility’s 30 MW entitlement in the Hoover project an additional 50 years. The IA is a supplemental agreement to the ESC that establishes administrative, budgetary and project oversight by creating project committees and process for decision making plant operations.

Nuclear Insurance

The Price-Anderson Act (the Act) requires that all utilities wi th nuclear generating facilities purchase the maximum private primary nucl ear liability insurance available ($450 million) and participate in the indus try’s secondary financial protection plan. The secondary financial protection program is the industry’s retrospective assessment plan that uses deferred premium charges from every licensed reactor owner if claims and/or costs result ing from a nuclear incident at any licensed reactor in the United States w ere to exceed the primary nuclear insurance at that plant’s site. Effective June 10, 2021, the Act limits liability from third- party claims to approximately $13.5 billion per incident. Under the industry wide retrospective assessment program provided for under the Act, assessments are limited to $137.6 million pe r reactor for each nuclear incident occurring at any nuclear reactor in the U nited States, with payments under the program limited to $20.5 million per reactor, per year, per event to be indexed for inflation every five years. Based o n the Electric Utility’s interest in Palo Verde, the Electric Utility would be responsible for a maximum assessment of $1.3 million, limited to payments of $0.2 million per incident, per year. If the public liability limit above is insu fficient, federal regulations may impose further revenue-raising measures to pay claims, including a possible additional assessment on all licensed reactor operators.

Renewable Portfolio Standards (RPS)

On April 12, 2011, the California Renewable Energy Resources Act (SBX1-2) was signed into law by the Governor, which officially created t he first set of tiered RPS targets of 20% by 2013, 25% by 2016 and 33% by 2020. SBX1-2 specified that publicly owned utilities must meet these defined targets via interim Compliance Period (CP) targets to achieve the end goal of 33% RPS by December 31, 2020 as follows: CP1 - an average of 20 percent of retail

IPA SCPPA TOTAL
Debt Service
Payment Intermountain Southern
(in thousands) Power Transmission All
Year Ending June 30, Project System Projects
2022 8,228$ 9,369$ 17,597$
2023 8,064 7,083 15,147
2024 840 7,125 7,965
2025 - 3,261 3,261
2026 - 3,257 3,257
2027-2031 - 6,507 6,507 Total 17,132$ 36,602$ 53,734$
Palo Verde
Intermountain Nuclear Southern Mead- Mead-
Power Generating Trans mis s ion Phoenix Adelanto All
FISCAL YEAR Project 1 Station 1 Syste m Tra nsmission Tra nsmission Proje cts 2021 20,648 $ 2,951 $ 5,126 $ 44 $ 424$ 29,193$ 2020 20,156$ 2,870$ 5,533$ 50$ 541$ 29,150$ 62 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

sales during the 3-year period from 2011-2013; CP2 – no less than 25 percent of retail sales by December 31, 2016; and CP3 – no less than 33 percent of retail sales by December 31, 202 0. The Riverside Public Utiliti es Board and City Council approved the RPS Enforcement Program required by SBX1-2 on November 18, 2011 and December 13, 2011, respectively, and furt her approved the Electric Utility’s R PS Procurement Plan (a.k.a. Pr ocurement Policy) implementing the new RPS mandates on May 3, 2013 and Ma y 14, 2013, respectively. The Electric Utility has met the procurement requirements of SBX1-2 for CP1 (2011-2013) a nd CP2 (2014-2016). The addition al future mandates are expected to be met with resource procurement actio ns as outlined in the Electric Utility’s RPS Procurement Plan. For ca lendar year 2020, renewable resources provided 42 percent of retail sales requirements.

On October 7, 2015, the Governo r signed into law Senate Bill 35 0 (SB 350) increasing the RPS mandate from 33 percent by 2020 to 50 percen t by December 31, 2030. In addition, SB 350 required that an updated R P S Procurement Policy must be appr oved and adopted before January 1, 2019 and be incorporated into the Elec tric Utility’s Integrated Reso urce Plan. An Updated 2018 Renewable Energy Procurement Policy was adopted by t h e Board and City Council on September 10, 2018 and October 9, 201 8, respectively. The Electric Utility expects to be able to subst antially meet the increased RPS mandates imposed by SB 350 with the actions descr ibed in the updated procurement policy and the portfolio of renewable r esources outlined below.

On September 10, 2018, the 100 Percent Clean Energy Act of 2018 (Senate Bill 100) was signed into law by the California Governor. This bill further increases the RPS goals of SBX1 -2 and SB 350 while maintaining the 33 percent RPS target by December 31, 2020, but modifying the RPS percentages to be 44 percent by December 31, 2024, 52 percent by December 31, 2027, 60 percent by December 31, 2030, with an end goal of 100 percent of total retail sales of electricity in California generated from eligible renewable energy resources and zero-carbon resources by December 31, 2045 . It is expected that the California Energy Commission will have furthe r guidance and enforcement procedures for publicly owned utilities to meet these increased mandates. The Electric Utility will continue to monitor the outcome and impacts of any upcoming workshops and regulations in meeting the new requirements.

In an effort to increase the share of renewables in the Electric Utility’s power portfolio, the Electric Utility ent ered into power purchase agr eements (PPA) and power sales agreements (PSA) with vari ous entities describe d below in general on a “take-and-pay” basis. The contracts in the followi ng tables were executed as part of compliance with RPS mandates.

Long-term
renewable PPAs and PSAs in operation (dollars in thousands):

1 All contracts are contingent on energy delivered from specific related generating facilities. The Electric Utility has no commitment to pay any amounts except for energy delivere d on a monthly basis from these facilities except for any economic curtailments directed by the Electric Utility.

Long-term renewable PPAs with expected delivery:

2 Represents solar capacity only; battery capacity is 11 MW and 4-hour duration.

Cap-and-Trade Program

Assembly Bill (AB) 32, enacted in 2006, mandated that the California Air Resources Board (CARB) develop regulations for the reduction of greenhouse gas (GHG) emissions to the 1990 levels by the year 2020. Subsequently, Estimated
Maximum Contract Annual Cost
Supplier Type Contract 1 Expiration For 2021
Wintec Energy, Ltd. Wind 1.3 MW 2/19/2024 150 $
WKN Wagner Wind 6.0 MW 12/22/2032 1,318
Terraform Power - AP North Lake Photovoltaic 20.0 MW 8/11/2040 4,83 3 Dominion - Columbia II Photovoltaic 11.1 MW 12/22/2034 2,313 GlidePath Power Solutions - GPS Cabazon Wind LLC Wind 39.0 MW 1/1/2025 4,299 Capital Dynamics - Kingbird Solar B, LLC Photovoltaic 14.0 MW 12/31/2036 2,867 FTP Solar
sPower - Summer Solar Photovoltaic 10.0 MW 12/31/2041 1,748 sPower - Antelope Big Sky Ranch Photovoltaic 10.0 MW 12/31/2041 1,748 sPower - Antelope DSR 1 Solar Photovoltaic 25.0 MW 12/19/2036 3 ,825 Capital Dynamics - Tequesquite Landfill Solar Photovoltaic 7.3 MW 12/31/2040 1,402 American Renewable Power-Loyalton Biomass 0.8 MW 4/19/2023 615 Roseburg Forest Products Biomass 0.5 MW 2/16/2026 179
CalEnergy - Salton Sea Portfolio Geothermal 86.0 MW 12/31/2039 54,798 Atlantica - Coso Geothermal Geothermal 10.0 MW 12/31/2042 2,698 Total 241.0 MW 82,793 $
Energy
Delivery Contract
Maximum Expected No Later Term
Supplier Type Contract 1 Delivery Than In Years
Avangrid Renewable - Camino Solar plus Storage Hybrid (Solar & B attery) 44.0 MW 2 Delayed 10/31/2022 15 Atlantica - Coso Geothermal Geothermal 20.0 MW 1/1/2027 1/1/2027 15 Total 64.0 MW
63 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Senate Bill (SB 32), enacted in 2016, extended the requirements of AB 32 and codified that it was the State’s goal to reduce GHG emissions t o 40% below 1990 levels by the year 2020. SB 398 was then enacted in 2017 clarifying that it was the State legislature’s in tent to continue the Cap-and-T rade Program and regulations until 2030. In January 2013, emission compliance obligations developed by CARB began under the Cap-and-Trade Program (Progra m).

This Program requires electric utilities to have GHG allowances on an annual basis to offset GHG emissions associated with generating electricity. To ease the transition and mitigate the rate impacts to retail customer s, CARB will allocate certain amounts of GHG allowances at no cost to electrical distribution utilities. The Electric Utility’s free allocation of GHG allowances is expected to be sufficient to meet the Electric Utility’s direct GHG compliance obligations.

At times, the Electric Utility ma y have allocated allowances in excess of its compliance obligations that can be sold into the CARB quarterly auctions. In fiscal year ended June 30, 2021 the Electric Fund received $8,251 in proceeds related to the sale of the GHG allowances, which are included o n the Statements of Revenues, Expenses and Changes in Net Position as other operating revenue. The Electric Utility has established a restricted Regulatory Requirement reserve to comply with regulatory restrictions and governing requirements related to the use of the GHG proceeds. The available funds are to be utilized for qualifying projects, consistent with the goa ls of AB 32 to benefit the retail ratepayers. The balance in the Regulatory Re quirement reserve was $14,555 as of June 30, 2021.

The Electric Utility also purchas es GHG allowances, which can b e used in future periods for GHG compliance regulations. The balance of purchased GHG allowances was $971 as of June 30, 2021 is recorded as inventory in the Statements of Net Position.

Low Carbon Fuel Standard Program

Assembly Bill (AB) 32, enacted in 2006, mandated that the California Air Resources Board (CARB) develop regulations for the reduction of greenhouse gas (GHG) emissions to the 1990 levels by the year 2020. Subse quently, Senate Bill (SB 32), enacted in 2016, extended the requirements of AB 32 and codified that is was the State’ s goal to reduce GHG emissions t o 40% below 1990 levels by the year 2020. Like the Cap-and-Trade Program, t he Low Carbon Fuel Standard (LCFS) Progr am is a key component of the m arket mechanisms authorized by these b ills to achieve the State’s GHG emissions reduction goals. The LCFS regulation was initially approved by CARB in 2009.

The program then underwent some litigation in the State of California and the regulation was re-adopted in 2015 with modifications and went i nto effect in 2016. LCFS seeks to reduce the carbon intensity (CI) of fuels used for transportation by establishing an annual CI target. Fuels that have a CI greater than the target have a compliance obligation and are required to turn in LCFS credits; fuels with a CI lower than the target may generate credits.

Electricity is considered a fuel subject to the program when it is used as a transportation fuel in electric vehicles. However, because the CI of electricity is substantially lower than the annual CI targets under the program, electricity is a fuel that generates LCFS credits and participation in the Program is voluntary. The City opted into the LCFS program in March 2018 a nd began generating LCFS credits for the first quarter of 2018. These cr edits are associated with two sources – unmetered electricity used to charge residents’ electric vehicles at their homes (residential base credits) and from electric forklifts charging at private businesses (forklift credits). CA RB calculates the credits that the Electric Utility receives, and the Electric Utility submits reports quarterly to receive the credits.

The LCFS regulation was amended in 2018 and required that elect ric utilities that have opted into the LCFS Program participate in and manage a statewide point-of-sale rebate program for new electric vehicles. This pr ogram is called the California Clean Fuel Reward Program (CFR) and the City joined the program in May 2020. To fund the program, electric utilities ar e required to contribute proceeds received from the sales of residential base c r e d i t s beginning with the credits the Electric Utility received in Q4 2019 (generated from electricity used for transportation in Q2 2019). Resident ial base credits the Electric Utility received prior to that time are not subject to the contribution requirements. Additionally, a small “start-up” contribution fr om proceeds is required to be submitted by January 31, 2021. After the initial deposit of funds in November 2020, deposits to the CFR program are required by M arch 31 annually.

In fiscal year ended June 30, 2021, the Electric Utility’s proceeds from the sale of LCFS credits of $1,166. These proceeds are included on the Statements of Revenues, Expenses and Changes in Net Position as other operati ng revenue. The Electric Utility ha s established a restricted Regu latory Requirement reserve to comply with regulatory restrictions and governing requirements related to the use of the LCFS proceeds. The availa ble funds are
to be utilized for qualifying projects that support the Electric Utility’s customers who are existing and future electric vehicle owners. Qualifying projects as of June 30, 2021 is approximately $440. The balance in the Regulat ory Requirement reserve as of June 30, 2021 was $2,368.

64 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

14. Other Post-Employment Benefits (OPEB)

Plan description - The City’s defined benefit OPEB plan, Retiree Health Plan, provides continuation of medical (including prescription drugs) and dental coverage benefits to retirees and surviving spouses in the form of an implied rate subsidy. The Retiree Health Benefits plan is a single empl oyer defined benefit OPEB plan administered by the City. No assets are accum ulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

Benefits provided - Eligibility for continuation of coverage requires retirement from the City and CalPERS with at least 5 years of City service. The retiree is responsible for 100% of the premium cost for coverage, which is based on the blended experience of both the active and retired employees. Th e City is not required by law or contractual agreement to provide funding oth er than the pay-as-you-go amount necessary to provide current benefit to eligible retirees and beneficiaries. Retiree and spousal coverage terminate when the retirees become covered under another employer health plan, or when the retiree reaches Medicare eligibility ago, which is currently age 65. Ho wever, retiree benefit continues to the surviving spouse if the retiree elects the CalPERS survivor annuity.

Employees covered by benefit terms – At June 30, 2020, the following employees were covered by the benefit terms:

Inactive plan members or beneficiaries currently receiving benefits 274 Inactive plan members entitled to but not yet reveiving benefits- Active plan members 2,138
Total 2,412

Significant Actuarial Assumptions Used in Calculating the Total OPEB Liability

The total OPEB liability was determined by an actuarial valuati on using the following actuarial assumptions:

Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Funding Policy: Pay-as-you-go for implicit rate subsidy Discount Rate: 3.51% as of July 1, 2019 and 2.66% as of June 30, 2020 per annum. This discount rate is the maximum of the
range of 3-20 year munici pal bond rate indices: S&P
Municipal Bond 20 Year High Grade Rate Index, Bond
Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year
Bond Index.

Inflation Rate: 3.0% per annum
Salary Inflation: 3.0% per annum
Salary Increases The benefits are not payroll related but the C ity’s cost for each individual’s projected City contribution is allocated over their lifetime as a level-percentage of pay. For cost method purposes the merit increases from the most
recent CalPERS pension plan valuation will be used
Mortality Based on the CalPERS 2017 Experience Study

Sensitivity analysis of total OPEB liability for healthcare cost trend rates.

The following presents the total net OPEB liability, calculatin g using the healthcare cost trend rate of 6.25% decreasing to 4.50%, as well as what the total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower (5.25% decreasing to 3.50 %) or 1- percentage-point higher (7.25% decreasing to 5.50%) than the current rate:

1% Decrease
Current Healthcare
Cost Trend Rate 1% Increase
(5.25% decreasing to

3.50%)
(6.50% decreasing
to 4.50%)
(7.25% decreasing
to 5.50%)
Total Net OPEB liability 45,698$ 52,276$ 60,157$

Sensitivity analysis of total net OPEB liability for discount rates

The following presents the total OPEB liability, calculating us ing the discount rate of 2.66%, as well as what the total OPEB liability would b e if it were calculated using a discount rate that is 1-percenrtage-point lower (1.66%) or 1-percentage-point higher (3.66%) than the current rate:

1% Decrease
(1.66%)
Current
Discount Rate
(2.66%)
1% Increase
(3.66%)
Total Net OPEB liability 57,443$ 52,276 $ 47,617 $

65 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Change in total OPEB liability

For fiscal year 2021, the City recognized total OPEB expense of $992. The following table shows the change in the total OPEB liability for the year ended June 30, 2021:

2020
Beginning total OPEB liability 50,004 $
Service cost 2,569
Interest 1,810
Differences between expected and actual experience (2,300) Changes of assumptions 2,225
Benefit of implied subsidy payments (2,032)
Net changes 2,272
Ending total OPEB liability 52,276 $

Deferred outflows/inflows of resources

At June 30, 2021, the City reported deferred outflows of resour ces and deferred inflows of resources related to OPEB from the following sources:

Deferred
outflows of
Deferred inflows
of resources
Contributions subsequent to
the measurement date 2,193 $ - $
Differences between expected
and actual experience 227 2,046
Changes of assumptions 9,405 1,026
Total 11,825 $ 3,072 $

Amounts reported as deferred outflows/(inflows) of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ending June 30,
Deferred
outflows/(inflows)
of resources
2022 838 $
2023 838
2024 838
2025 838
2026 1,047
Thereafter 2,161
6,560$

15. City Employees Retirement Plan

(A) Plan Description. The City of Riverside contributes to the California Public Employees Retirement System (CalPERS), an agent multiple employer public employee defined benefit pension plan. CalPERS provides retirem ent and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within t he State of California. Benefit provisions and all other requirements are e stablished by state statute and City ordinance. A copy of CalPERS’ annual fin ancial report may be obtained online at www.calpersca.gov.

(B) Funding Policy. The City has contributed at the actuarially determined rate provided by CalPERS’ actuaries. Participants are required to contribute 8% for miscellaneous employees and 9% for safety employees of their an nual covered salary. The City has a multiple tier retirement plan wi th benefits varying by plan. The City pays the employees’ contributions to CalPERS for both miscellaneous and safety employees hired on or before specific dates as follows:

Safety (Police):
 1
st Tier (RPOA, RPOA Supervisory & RPAA Management) - The retirement formula is 3% at age 50 for employees hired on or before February 16, 2012 (R POA, RPAA Management) or
June 8, 2012 (RPOA Supervisory). Effective January 1, 2018, employees were required to pay 1.5% of their pensionable income, with the City contributing the other 7.5%. Only in the event that annual wages increase in excess of 2%, will the following apply: Effective January 1, 2019, employees were required to pay an additional portion of their pensionable income. The portion is a three-year increase of 1.5% (2019), 1.5% (2020) and 1.5% (2021); 66 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

However, the 2021 increase did not take affect; therefore, in 2021 employees were contributing 4.5% pensionable income.
 2 nd Tier (RPOA, RPOA Supervisory & RPAA Management) - The retirement formula is 3% at age 50 for RPOA and RPAA
Management employees hired on or after February 17, 2012 and RPOA Supervisory employees hired on or after June 8, 2012 pay their share (9%) of contributions.
 3 rd Tier (RPOA, RPOA Supervisory & RPAA) – The retirement formula is 2.7% at age 57 for new members hired on or after January 1, 2013 and the employee must pay the normal cost to CalPERS which is currently at 12.75%. Classic members
(CalPERS members prior to 12/31/12) hired on or after
January 1, 2013 may be placed in a different tier.

Safety (Fire):
 1
st Tier - The retirement formula is 3% at age 50 for employees hired before June 11, 2011. Effective January 1, 2019, employees were required to pay a portion of their pensionable income. This portion is a three-year increase of 2.5% (2019), 2.5% (2020) an d 3% (2021). However, the 2021 increase was only 2%; therefore, in 2021 employees were contributing 7% of their pensionable income.
 2
nd Tier - The retirement formula is 3% at age 55 and new employees hired on or after June 11, 2011 pay their share (9%) of contributions.
 3
rd Tier – The retirement formula is 2.7% at age 57 for new members hired on or after January 1, 2013. A new member, as defined by the Public Employees’ Pension Reform Act (PEPRA), hired on or after January 1, 2013 pay 50% of the normal cost to CalPERS which is currently 12.75% of compensation.

Miscellaneous:
 1 st Tier –
o The retirement formula is 2.7% at age 55
for employees hired on or before October 18, 2011.

Effective January 1, 2018 for unrepresented employees
(Sr. Management, Management, Professional,
Para-professional, Supervisory, Confidential, and
Executive units, excluding the Chief of Police and the Fire Chief), the employees were required to pay 2% of their
pensionable income, with the City contributing the other 6%. Effective January 1, 2019, employees were required
to pay an additional portion of their pensionable income.

This portion is a three-year increase of 2% (2019),
2% (2020) and 2% (2021). As of 2021, employees are
contributing the entire 8% of their pensionable income.

o The retirement formula is 2.7% at age 55 for SEIU and SEIU Refuse employees hired before June 7, 2011.

Currently, employees are required to pay 7% of their
pensionable income with the City contributing the other 1%. Effective January 1, 2019, employees were required
to pay an additional portion of their pensionable income.

This portion is a two-year increase of 1% (2019) and
1% (2020). As of 2020, employees are contributing the
entire 8% of their pensionable income.

o The retirement formula is 2.7% at age 55 for IBEW and IBEW Supervisory employees hired on or before
October 18, 2011. Effective November 1, 2017
employees were required to pay 2% of their total
pensionable income with the City paying the remaining
6%. Effective each November 1
st, employees will be
required to pay an additional portion of their pensionable income. This portion is a three-year increase of
2% (2018), 2% (2019) and 2% (2020). As of
November 2020, employees are contributing the entire
8% of their pensionable income.

 2
nd Tier - The retirement formula is 2.7% at age 55, and:
o Miscellaneous employees, I BEW, and IBEW Supervisory
hired on or after October 19, 2011 pay their share (8%) of contributions.
o SEIU and SEIU Refuse employees hired on or after
June 7, 2011 pay their share (8%) of contributions.

 3
rd Tier – The retirement formula is 2% at age 62 for new members hired on or after January 1, 2013 and the employee must pay the normal cost to CalPERS which is currently at 7.75%. Classic members (CalPERS members prior to 12/31/12) hired on or after January 1, 2013 may be placed in a different tier.

The contribution requirements of plan members and the City are established and may be amended by CalPERS.

67 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

(C) Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefi ts are based on years of credited service, equal to one year of full-time employment.

Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non- duty disability benefits after five years of service. The death benefit is one of the following:
the Basic Death Benefit, the 195 9 Survivor Benefit Level III, o r the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

(D) Employees Covered - At June 30, 2020, the following employees were covered by the benefit terms of each Plan: Inactive employees or beneficiaries currently receiving benefits are 2,301 and 811 for the Miscella neous and Safety Plans, respectively. Inactive employees entitled to but not yet receiving benefits are 1,427 and 174 for Miscellaneous and Safety Plans, respectively.

Active employees were 1,559 and 583 for Miscellaneous and Safet y Plans, respectively.

(E) Contributions – Section 20814(c) of the California Public E mployees’ Retirement Law requires that the employer contribution rates fo r all public employers be determined on an annual basis by the actuary and s hall be effective on the July 1 following notice of a change in the rat e. Funding contributions for both Plans are determined annually on an actu arial basis as of June 30 by CalPERS. The actuarially determined rate is the e stimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded acc rued liability.

The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

(F) Net Pension Liability - The City’s net pension liability for each Plan is measured as the total pension lia bility, less the pension plan’ s fiduciary net position. The net pension liab ility of each of the Plans is mea sured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The liability for the governmental activities is primarily liquidated from the General Fund.

A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Assumptions – The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method
Actuarial Assumptions
Discount Rate 7.15% 7.15%
Inflation 2.5% 2.5%
Salary Increase
Mortality Rate Table 1
Post Retirement Benefit
Increase
details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details Entry-Age Normal Cost Method
Derived using CalPERS' membership data for all funds
Varies by Entry Age and Service
The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter
1 The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-

Long-term Expected Rate of Return - 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, n et of pension plan investment expense and inflation) are developed for each m ajor asset class.

In determining the long-term expe cted rate of return, CalPERS t ook into account both short-term and long-term market return expectation s as well as the expected pension fund cash fl ows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ yea rs) 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 ro unded single equivalent expected return that arrived at the same present val ue of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed admin istrative expenses. The expected real rates of return by asset class are as followed:

68 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Current Target Real Return Real Return
Asset Class 1
Allocation Years 1 - 10 2 Years 11+ 3
Global Equity 50.0% 4.80% 5.98%
Fixed income 28.0% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% - -0.92%

1. In the System’s CAFR, Fixed Inc ome is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Asse ts are included in both Global Equity Securities and Global Debt Securities.

2. An expected inflation of 2 .00% used for this period

3. An expected inflation of 2 .92% used for this period

Discount Rate - The discount rate used to measure the total pen sion liability was 7.15%. The projection of cash flows used to determine the d iscount rate assumed that contributions from plan members will be made at th e current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan memb ers.

Therefore, the long-term expected rate of return on plan invest ments was applied to all periods of projected benefit payments to determi ne the total pension liability.

Changes in Assumptions – In 2020, there was no changes in assumptions.

(G) Changes in the Net Pension Liability

The changes in the Net Pension Liability for each Plan follows:

Miscellaneous
Total Plan
Pension Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 1,430,160 $ 1,137,966 $ 292,194 $ Changes in the year:

Service Cost 25,919 - 25,919 Interest on Total Pension Liability 101,080 - 101,080 Differences between Expected
and Actual Experience 6,220 - 6,220 Contribution - employer - 239,156 (239,156) Contribution - employee - 10,957 (10,957) Net Investment Income - 56,837 (56,837) Benefit Payments, including
Refunds of Employee
Contributions (71,266) (71,266) - Administrative Expenses - (1,604) 1,604 Other Misc. Income/(Expense) - - - Net Changes 61,953 234,080 (172,127) Balance at June 30, 2020 1,492,113 $ 1,372,046 $ 120,067 $ Increase (Decrease)

Safety
Total Plan
Pension Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 1,137,203$ 829,821$ 307,382$ Changes in the year:

Service Cost 22,391 - 22,391 Interest on Total Pension Liability 80,940 - 80,940 Differences between Expected
and Actual Experience 11,896 - 11,896 Contribution - employer - 263,061 (263,061) Contribution - employee - 9,454 (9,454) Net Investment Income - 41,765 (41,765) Benefit Payments, including
Refunds of Employee
Contributions (56,537) (56,537) - Administrative Expenses - (1,170) 1,170 Other Misc. Income/(Expense) - - - Net Changes 58,690 256,573 (197,883) Balance at June 30, 2020 1,195,893$ 1,086,394$ 109,499$ 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 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:

69 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Miscellaneous Current
Discount Rate Discount Rate Discount Rate
-1% (6.15%) (7.15%) +1% (8.15%)
Plan's Net Pension Liability/(Asset) 320,850$ 120,067$ (45,188)$ Safety Current
Discount Rate Discount Rate Discount Rate
-1% (6.15%) (7.15%) +1% (8.15%)
Plan's Net Pension Liability/(Asset) 271,457$ 109,499$ (23,605)$ Pension Plan Fiduciary Net Position – Detailed information abou t each pension plan’s fiduciary net position is available in the separ ately issued CalPERS financial reports.

H. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions.

For the year ended June 30, 2021, the City recognized pension e xpense of $90,164. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement
date, net 26,274 $ - $
Changes of assumptions - (3,445) Differences between expected and actual experience 7,064 (1,800) Net differences between projected and actual
earnings on plan investments 15,081 - Total 48,419$ (5,245)$

Safety Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement
date, net 22,925 $ - $
Changes of assumptions 5,433 (1,327) Differences between expected and actual experience 15,020 (2) Net differences between projected and actual
earnings on plan investments 13,305 - Total 56,683 $ (1,329) $

$49,199 reported as deferred outfl ows of resources related to c ontributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal period rather th an in the current fiscal period.

Amortization of Deferred Outflows and Deferred Inflows of Resources - Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are reco gnized in pension expense system atically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net Difference between
projected and actual earnings 5 year straight-line amortization All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that
are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period

The remaining amounts reported as deferred outflows of resource s and deferred (inflows) of resources related to pensions will be rec ognized as pension expense as follows:

Fiscal Year Miscellaneous Safety
2021 $ (4,235) $ 8,341
2022 7,099 9,197
2023 7,892 9,281
2024 6,144 5,610
$ 16,900 $ 32,429

Subsequent Events - There were no subsequent events that would materially affect the results presented in this disclosure.

16. Other Long-Term Obligations

Changes in Long-Term Obligations: Below is a summary of changes in long- term obligations during the fiscal year for the former Redevelopment Agency, which is accounted for in the Successor Agency Trust (a fiduciary fund):

70 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Lease revenue bonds 13,790$ - $ (2,149)$ 11,641$ 2,242$ Tax allocation bonds 177,256 - (5,840) 171,416 4,923 Direct borrow ings:
3,918 - - 3,918 28 194,964$ - $ (7,989)$ 186,975$ 7,193$ N otes payable

Lease Revenue Bonds – Successor Agency:

Principal
Outstanding

$26,255 State of California Department of General
Services Project, 2003 Lease Revenue Refunding
Bonds, Series A are secured by lease payments made
by the State of California Department of General
Services for the California Tower office building; 2% to 5% due in annual installments from $545 to $2,230
through Oct. 1, 2024. The bonds are subject to
acceleration under the Trust Agreement upon the
occurrence of an event of default and with the consent
of the Insurer. There is no remedy of acceleration of the total Base Rental over the term of the Lease.

$8,085
$4,810 State of California Dept. of General Services
Project, 2003 Lease Revenue Refunding Bonds, Series
B are secured by lease payments made by the State of
California Department of General Services for the
California Tower office building; $310 serial bonds

1.20% to 1.42% through Oct.1, 2004; $620 term bonds
at 3.090% due Oct. 1, 2008; $1,110 term bonds at

4.340% due Oct. 1, 2014 and $2,770 term bonds at

5.480% due Oct. 1, 2024. The bonds are subject to
acceleration under the Trust Agreement upon the
occurrence of an event of default and with the consent
of the Insurer. There is no remedy of acceleration of the total Base Rental over the term of the Lease.

1,290

In 2019, the 2012A Lease Revenue Refunding bonds
were distributed between Governmental Activities,
Business-Type Activities, and the Successor Agency to
properly reflect their proportional share.

On August 15, 2012, the City issued the Series 2012A
Lease Revenue Refunding Bonds in the amount of
$41,240. The bonds are secured by lease payments on
a portion of the City Hall Complex and the Lincoln Police Patrol Center. The bonds were issued to refinance the
2003 Certificates of Participation. Interest on the bonds is payable semi-annually on May 1 and November 1 of
each year, commencing May 1, 2013. The rate of
interest varies from 2% to 5% per annum depending on
maturity date. Principal is payable in annual installments ranging from $1,295 to $2,840 commencing
November 1, 2013 and ending November 1, 2033. In the
event of default, the Trustee may retain the Lease
Agreement and hold the City liable for all Base Rental
Payments on an annual basis. The rental payments may
not be accelerated. $2,415 relates to the Successor
Agency.

Subtotal
Add: Unamortized bond premium
Total Lease Revenue Bonds

2,069

11,444
197
$11,641

Remaining debt service will be paid by the Successor Agency Trust from future property tax revenues. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 2,242$ 510$ 2,752$ 2023 2,399 392 2,791 2024 2,556 267 2,823 2025 2,716 135 2,851 2026 141 64 205 2027-2031 812 213 1,025 2032-2036 578 35 613 Premium 197 - 197 Total 11,641$ 1,616$ 13,257$

Tax Allocation Bonds – Successor Agency:

On October 16, 2014, the Successor Agency to the
Redevelopment Agency of the City of Riverside issued
2014 Subordinate Tax Allocation Refunding Bonds
(Series A and B) in the amount of $62,980. The bonds
were issued to refund certain obli
gations of the former

71 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Redevelopment Agency of the City of Riverside. Interest is due semi-annually on March 1 and September 1,
commencing March 1, 2015. Principal is due in annual
installments from $160 to $4,745 through
September 1, 2034. The rate of interest varies from

0.6% to 5% per annum.

$114,815 2018 Tax Allocation Refunding Bonds Series
A and B. The bonds were issued to refund the 2007
Riverside Public Financing Authority Redevelopment
Agency Tax Allocation Bonds; Series A, B, C, and D.

Principal is payable in annual installments from $140 to $9,180 through September 1, 2037. The rate of interest
varies from 3.125% to 5% per annum. The refunding
transaction resulted in a total net present value savings of $20,000.

$37,900

114,815
Subtotal
Add: Unamortized bond premium
Total Tax Allocation Bonds
152,715
18,701
$171,416

The Successor Agency Tax Allocation Bonds are secured by tax re venues deposited in the Redevelopment Property Tax Trust Fund for the Agency established and held by the County of Riverside Auditor-Controller pursuant to Section 34813(a)(2) of the Dissolution Act. Upon event of default, the principal due on the Bonds is subject to acceleration.

Remaining debt service will be paid by the Successor Agency Trust from future property tax revenues. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 4,923$ 7,061$ 11,984$ 2023 4,710 6,823 11,533 2024 10,280 6,450 16,730 2025 10,690 5,928 16,618 2026 10,795 5,392 16,187 2027-2031 51,660 19,011 70,671 2032-2036 44,365 7,737 52,102 2037-2041 15,292 579 15,871 Premium 18,701 - 18,701 Total 171,416$ 58,981$ 230,397$

Notes Payable – Successor Agency: Principal
Outstanding
These notes payable have been issued to promote
development and expansion within the City’s
redevelopment areas.

Pepsi Cola Bottling Company of Los Angeles, 10.5%,
payable in net annual installments of $341, subject to
recording of completion. Interest accrues on the
outstanding note balance upon issuance of the
Certificate of Completion. P rincipal and interest on the note are payable solely from Project Property Tax
Increment. Payments start upon the time sufficient
increment is generated in one year to pay the annual
principal and interest on the note. Upon 25 years from
the first anniversary date of the certificate of completion, all unpaid principal together with any accrued interest will be for
given.

$2,987

Smith’s Food & Drug Centers Inc., 6% payable in
variable installments, subject to payment of annual
Community Facilities District assessment. The note is
secured under a developer a
greement.

931

Total Notes Payable $ 3,918

Remaining debt service will be paid by the Successor Agency Trust from future property tax revenues. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2022 28$ 314$ 342$ 2023 31 311 342 2024 34 307 341 2025 38 304 342 2026 42 300 342 2027-2031 1,217 1,423 2,640 2032-2036 471 1,238 1,709 2037-2041 777 932 1,709 2042-2046 1,280 430 1,710 Total 3,918$ 5,559$ 9,477$

72 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

Assessment Districts and Communi ty Facilities Districts Bonds (Not obligations of the City):

As of June 30, 2021, the City has several series of Assessment District and Community Facility District Bonds outstanding in the amount of $38,965.

Bonds were issued for improvements in certain districts and are long-term obligations of the property owners. The City Treasurer acts as an agent for the property owners in collecting the assessments, forwarding the collections to bondholders and initiating foreclosure proceedings, if applicable. Since the debt does not constitute an obligation of the City, it is not r eflected as a long- term obligation of the City and is not reflected in the accompa nying basic financial statements.

Beginning Ending Due Within
Balance * Additions Reductions Balance One Year
Community facilities districts 21,740$ -$ (595)$ 21,145$ 670$ Assessm ent districts 19,250 - (1,430) 17,820 1,505 40,990$ -$ (2,025)$ 38,965$ 2,175$ * As restated

17. Interfund Assets, Liabilities and Transfers

Due From/To Other Funds: These balances resulted from expenditures being incurred prior to receipt of the related revenue source.

The following table shows amounts receivable/payable between fu nds within the City at June 30, 2021:

Receivable Funds Payable Funds Amount
General Fund Nonmajor Governmental Funds 1,430$
Nonmajor Enterprise Funds 3,002
$ 4,432

Advances To/From Other Funds: These balances consist of advanc es used to fund capital projects in advance of related financing/assess ments and for other long-term borrowing purposes.

The following table shows amounts advanced from funds within th e City to other funds within the City at June 30, 2021:

Receivable Funds Payable Funds Amount
Sewer Fund General Debt Service Fund 1,765$
In addition, the following advances to the former Redevelopment Agency are accounted for in the Private-Purpose Trust Fund of the Successor Agency:

Receivable Fund Amount
Electric Fund 2,925$
Transfers In/Out: Transfers are primarily used to (1) move revenues to the fund that statute or budget requires to expend them, and (2) move re ceipts restricted to debt service from the funds collecting the receip ts to the debt service fund as debt service payments become due.

The following table shows amounts transferred to/from funds wit hin the City for the year ended June 30, 2021:

General Fund Capital Outlay Fund 511$
General Debt Serv ice Fund 42
Nonmajor Governmental Funds 5,839
Electric Fund 39,899
Water Fund 6,972
53,263
Capital Outlay Fund General Fund 14,441
Debt Service Fund General Fund 37,159
Capital Outlay Fund 2,997
Nonmajor Governmental Funds 1,958
42,114
Nonmajor Governmental Funds General Fund 2,648
Nonmajor Governmental Funds 361
Nonmajor Enterprise Funds 80
3,089
Nonmajor Enterprise Funds General Fund 12,072
Governmental Activities * 601
12,673
Internal Service Fund General Fund 24,000
Total 149,580$
* Transfer of capital asset from Gov ernmental Activ ities to Civic Entertainment Fund

73 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

18. Deficit Net Position

Deficit net position exists in the non-major enterprise fund, T ransportation ($157). The deficit is primarily due to the net pension and net OPEB liabilities.

Deficit net position exists in t he Self-Insurance Internal Serv ice Fund ($32,395). This City adopted a Self-Insurance Reserve Policy that addresses the on-going deficit in fund bal ance. In the past, the City began funding a portion of the deficit in the internal service fund via self-in surance rate increases phased in over several years. However, the increases continue to be offset by unusually large losses incurred during the year combined with an adjustment for the increase in the amount estimated for claims and judgments.

Management believes that there are sufficient funds on hand to cover current payment obligations and plans to continue to control costs and increase rates, as needed.

Deficit net position exists in the Successor Agency Private-Purpose Trust Fund ($141,778). The deficit in the Successor Agency Trust Fund wil l be reduced over the years as the related debt is paid-off with funds recei ved from the Redevelopment Property Tax Trust Fund (RPTTF), which is adminis tered by the County Auditor-Controller.

Deficit net position exists in the Custodial Fund ($29,921). The deficit in the Custodial Fund will be reduced ov er the years as the related de bt is paid-off from funds received from special tax and assessments paid by th e residents within the special districts.

19. Construction Commitments

As of June 30, 2021, the Electric Utility had commitments (encu mbrances) of approximately $22,799 with respect to unfinished capital projec ts, of which $13,694 is expected to be funded by unrestricted cash reserves, $8,103 to be funded by bonds, and $1,002 to be funded by restricted cash reserves.

20. Forward Purchase/Sale Agreements

In order to meet summer peaking requirements, the Electric Util ity may contract on a monthly or quarte rly basis, for the purchase or s ale of natural gas, electricity and/or capacity products on a short-term horiz on. As of June 30, 2021, the Electri c Utility has net commi tments for fiscal y ear 2022 and thereafter, of approximately $11,707, with a market value of $16,749.

21. Economic Contingency

A portion of fund balance has been committed within the General Fund and Measure Z fund for future economic contingencies. The amount that has been set aside for the General Fund is $57,400, which equals to approximately 20% of the 2021-2022 General Fund adopted expenditure budget. For the General Fund Measure Z Fund, $5,000 has been set aside. In addition, on January 19, 2021, City Council committed $15,600 for potential future issues.

22. Litigation

The City is a defendant in variou s lawsuits arising in the norm al course of business. Present lawsuits and other claims against the City are incidental to the ordinary course of operations and are largely covered by th e City’s self- insurance program. In the opinion of management and the City Attorney, such claims and litigation will not have a materially adverse effect upon the financial position or results of operation of the City.

23. Tax Abatements

In November 2012, the City entered into a tax sharing agreement with a local business to incentivize an expansion of their facility. Assistance is provided in the form of a rebate of sales and property taxes over fifteen years in an amount not to exceed $4,500. The agreement expires on the earlier of: 1) total cumulative tax rebate of $4,500; or 2) fifteen years in fiscal 2027-28.

Incremental Sales Tax Revenue can be generated from sales, over the fiscal 2011-12 base period, reported to the State Board of Equalization at the business site and from third party vendor transactions occurring using the business site as the point of sale. Incremental Property Tax Revenue is generated from the increase in County assessed valuation over t he 2012-13 base period values, for the parcels designated in the agreement. For parcels acquired after 2012-13 in the project area, the acquisition price will become its base year valuation. The initial 2012-13 base year assessed valuation is $114,293 and has been adjusted to $125,043 for the parcels acquired in 2014-

15. The business is due 100% of the incremental Property tax revenue due to the City from the project area tax rate. It is calculated as 1 1% of the value determined from taking 1% of the difference of current net assessed valuation over the adjusted base valuation. The cumulative rebate payment a s o f 6/30/2021 is $1,048.

74 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

24. Subsequent Events

Parada II Litigation
On September 12, 2018, a petition for writ of mandate entitled Parada v. City of Riverside ( “Parada II ”) was filed against the City seeking to invalidate, rescind and void under Proposition 26, the Electric System’s ra tes approved by City Council on May 22, 2018, which took effect on January 1, 2019, challenging the portion of the electric rates that are attributable to the General Fund. The petition did not seek any monetary relief from the Ge neral Fund.

The trial court divided the case into two stages for hearings: a liability phase and a damages phase. On April 17, 2020, the Court in the liabil ity phase of Parada II litigation entered a tentative ruling finding the Cit y’s electric rates attributable to the General Fund transfer violate Article XIII C of the California Constitution. The formal hearing on the matter took place on June 5, 2020, but the Court asked for further briefing on the issue of whether or not the plaintiffs failed to exhaust their administrative remedies. On October 9, 2020, the Court confirmed its tentative ruling and entered an order denying the City’s request for interlocutory remand. The court has set a hearing for February 24, 2021, to set a briefing schedule for determining appropriate remedies /damages in the case. The City expects the second phase of the trial relating t o plaintiffs’ available remedies to occur in the second quarter of 2021. How ever, due to the impact of the Coronavirus on the Courts, the exact timing of the completion of the trial is uncertain at this time.

The ruling by the Court in Parada II will likely have a material adverse impact on the City’s General Fund. The General Fund receives approxima tely $40 million annually (up to the maximum amount of 11.5% of Electric Fund revenues) from the Electric Fund. Based on the Court’s order in the liability phase of the trial, approximately $19-32 million of the General Fund transfer is potentially attributable to rate payer revenue that was not app roved by the voters. However, that amount w ill be determined during the dama ges phase of the trial. Additionally, the City may be required to refund rate payers for the portions of the rates that were determined to violate Article X III C of the California Constitution from the date the writ of mandate was f iled. However, the trial court has not issued any ruling as to what the amount of any damages would be. Based on the Court’s order in the liability phase of the trial, the City estimates that the amount of a refund would be $19 to $32 milli on per year, beginning January 1, 2019, until date of settlement or issuance of a final, non-appealable judgment by the trial court after anticipated ap peals are resolved. This amount could vary depending upon whether or not the City decides to repeal and replace the challenged rates pending appeal. Currently, petitioners have sought monetary re lief solely from the Electri c System.

However, the City can make no assurance that the City’s General Fund may not be held liable for all or a portion of any refund or other remedy the Court ultimately orders. The City believes that all or a portion of any refund, if owed, could be paid from rate payer revenues in the Electric Fund and that any judgment would likely be allowed by the Court to be paid over a multi-year period. If the electric rates attributable to the General Fund transfer are determined to be invalid or are otherwise repealed and replaced by the City, the City could seek voter approval for the General Fund transfe r like it did for the Water Fund. The City has a variety of revenue sources and expense reductions available to it to address any future budget deficit s caused by the potential loss of the General Fund transfer, including but not limited to the use of Measure Z revenues.

On May 17, 2021, the City and the Paradas entered into a condit ional settlement agreement. This settlement is conditioned on: (1) the Riverside City Council’s placement of a ballot measure on City ballots in Nove mber 2021 to approve the City’s General Fund Transfer practices as a general tax (“Ballot Measure”); and (2) vo ter approval of the Ballot Measure. The Ri verside City Council placed the Ballot Measure on the ballot for the Novembe r 2, 2021 election. The Parties have stayed the lawsuit until certification of the results of the Ballot Measure. If voters approve the Ballot Measure, the C ity will refund to customers of its electric utility an amount equal to $24 mil lion less the amount awarded to Plaintiffs’ counsel in fees, paid over a five year period beginning no later than February 1, 2022. If voters do not appr ove the Ballot Measure, this litigation will then resume.

On or about September 16, 2021, a petition for writ of mandate entitled Petitioner Riversiders Against Increased Taxes v. City of Riverside, et al. was filed against the City challenging the Ballot Measure on the gr ounds that the Ballot Measure cannot be adopted at the November 2021 election because that election is a “special” election and under Proposition 218, a ballot measure to impose a general tax can only be submitted to voters at a general election.

On November 9, 2021, the court has set a trial date for this lawsuit for January 7, 2022 and has ordered a stay of the certification of the Ball ot Measure Election results pending the January 7
th hearing but did not otherwise delay or
cancel the election for the Ballot Measure.

The election was held on November 2, 2021, and the initial repo rt from the County Registrar of Voters, as of November 3, 2021, is that Mea sure C was approved by voters. However, the election results have not yet been certified by the City as noted above, and the Parada lawsuit continues to be stayed pending certification of the results.

75 City of Riverside
Notes to Basic Financial Statements
For the year ended June 30, 2021 ( a m o u n t s e x p r e s s e d i n thousands)

25. Prior Period Adjustments

A prior period adjustment of $80,284 was made to Governmental Activities for land and infrastructure additions due to a change in calculatio n of street mileage from a system upgrade which maintains street mileage.

The restatement of beginning net position of Governmental Activ ities is summarized as follows:

Governmental Activities

Net position at July 1, 2020, as previously stated 866,575$ Land additions 37,951
Infrastructure additions 42,333
Net position at July 1, 2020, as restated 946,859$

A prior period adjustment of $30,750 was made to the Custodial Fund for implementation of GASB 84 which establishes criteria for identi fying fiduciary activities of all state and local governments.

The restatement of beginning net position of the Custodial Fund is summarized as follows:

Custodial Fund

Net position at July 1, 2020, as previously stated 10,240$ Community facilities districts debt (21,740)
Assessment districts debt (19,250)
Net position at July 1, 2020, as restated (30,750)$

76 Consists of the following:
• Schedule of Changes in Net Pension Liability and Related Ratios • Schedule of Pension Plan Contributions
• Schedule of Changes in Total OPEB Liability and Related Ratios

Required Supplementary Information
77 CITY OF RIVERSIDE

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(amounts expressed in thousands)
2014 2015 2016 2017 2018 2019 2020

TOTAL PENSION LIABILITY
Service Cost 23,320$ 22,228 $ 22,189 $ 24,766 $ 25,117 $ 25,017 $ 25,919 $ Interest 84,965 87,436 90,913 92,725 92,595 96,836 101,080 Difference Between Expected and Actual Experience - (21,782) - 79,037 (37,885) 6,927 6,220 Changes in Assumptions - (23,548) (8,417) (26,068) (19,805) - - Benefit Payments, Including Refunds of employee Contributions (50,770) (53,853) (57,702) (60,108) (63,483) (67,073) (71,266) Net Change in Total Pension Liability 57,515 10,481 46,983 110,352 (3,461) 61,707 61,953 Total Pension Liability - Beginning 1,146,583 1,204,098 1,214,579 1,261,562 1,371,91 4 1,368,453 1,430,160 Total Pension Liability - Ending (a) 1,204,098$ 1,214,579 $ 1,261,562 $ 1,371,91 4$ 1,368,453$ 1,430,160$ 1,492,113$

PLAN FIDUCIARY NET POSITION
Contribution - Employer 27,583$ 25,996 $ 29,426 $ 30,477 $ 29,920 $ 34,627 $ 239,156 $ Contribution - Employee 2,294 4,380 5,187 6,115 9,749 10,286 10,957 Net Investment Income 145,843 21,671 4,958 104,771 86,307 71,046 56,837 Benefit Payments, Including Refunds of Employee Contributions (50,770) (53,853) (57,702) (60,108) (63,483) (67,073) (71,266) Administrative and Other Expenses - (1,056) (594) (1,290) (4,664) (776) (1,604) Net Change in Fiduciary Net Position 124,950 (2,862) (18,725) 79,965 57,829 48,110 234,080 Plan Fiduciary Net Position - Beginning 848,699 973,649 970,787 952,062 1,032,027 1,089,856 1,137,966 Plan Fiduciary Net Position - Ending (b) 973,649$ 970,787 $ 952,062 $ 1,032,027 $ 1,089,856 $ 1,137,966 $ 1,372,046 $ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 230,449$ 243,792 $ 309,500 $ 339,887 $ 278,597 $ 292,19 4$ 120,067$

80.86% 79.93% 75.47% 75.23% 79.64% 79.57% 91.95%
Covered Payroll 109,990$ 110,891 $ 118,512 $ 117,637 $ 121,957 $ 128,881 $ 131,492 $ 209.52% 219.85% 261.15% 288.93% 228.44% 226.72% 91.31%
(2) Net of administrative expenses.

Notes to Schedule:

Changes of Assumptions:

In fiscal year 2018-19 and 2019-20, there were none
In fiscal year 2017-18, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.

There were no changes in the discount rate.

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll Benefit Changes: There were no changes in benefits.

In fiscal year 2016-17, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
78 CITY OF RIVERSIDE `

SAFETY PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(amounts expressed in thousands)
2014 2015 2016 2017 2018 2019 2020

TOTAL PENSION LIABILITY
Service Cost 18,818$ 18,187 $ 18,144 $ 21,373 $ 20,390 $ 21,454 $ 22,391 $ Interest 62,249 64,815 67,513 70,337 73,104 76,922 80,940 Difference Between Expected and Actual Experience - (16,117) - 59,768 (4,644) 10,897 11,896 Changes in Assumptions - (6,835) (4,373) (18) 868 - - Benefit Payments, Including Refunds of employee Contributions (38,981) (42,076) (44,609) (47,009) (50,477) (52,564) (56,537) Net Change in Total Pension Liability 42,086 17,97 4 36,675 104,451 39,241 56,709 58,690 Total Pension Liability - Beginning 840,067 882,153 900,127 936,802 1,041,253 1,080,494 1,137,203 Total Pension Liability - Ending (a) 882,153$ 900,127 $ 936,802 $ 1,041,253 $ 1,080,49 4$ 1,137,203$ 1,195,893 $

PLAN FIDUCIARY NET POSITION
Contribution - Employer 23,156$ 23,384 $ 26,483 $ 26,775 $ 25,451 $ 29,254 $ 263,061 $ Contribution - Employee 365 924 1,837 2,449 6,402 7,679 9,454 Net Investment Income 107,032 15,632 3,478 76,844 62,933 51,750 41,765 Benefit Payments, Including Refunds of Employee Contributions (38,981) (42,076) (44,609) (47,009) (50,478) (52,564) (56,537) Administrative and Other Expenses (816) (428) (1,145) (3,403) (567) (1,170) Net Change in Fiduciary Net Position 91,572 (2,952) (13,239) 57,91 4 40,905 35,552 256,573 Plan Fiduciary Net Position - Beginning 620,069 711,641 708,689 695,450 753,36 4 794,269 829,821 Plan Fiduciary Net Position - Ending (b) 711,641$ 708,689 $ 695,450 $ 753,36 4$ 794,269$ 829,821$ 1,086,394$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 170,512$ 191,438 $ 241,352 $ 287,889 $ 286,225 $ 307,382 $ 109,499 $

80.67% 78.73% 74.24% 72.35% 73.51% 72.97% 90.84%
Covered Payroll 63,734$ 63,612$ 68,707$ 66,226$ 68,251$ 73,237$ 76,955$ 267.54% 300.95% 351.28% 434.71% 419.37% 419.71% 142.29% (2) Net of administrative expenses.

Notes to Schedule:

Changes of Assumptions:

There were no changes in the discount rate.

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll
Benefit Changes: There were no changes in benefits.

SCHEDULE OF PENSION PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(amounts expressed in thousands)
2014 2015 2016 2017 2018 2019 2020 2021
Miscellaneous Plan
Actuarially Determined Contribution 20,505$ 21,063$ 24,885$ 26,955$ 29,948$ 34,486$ 38,889$ 26,274$ Contribution in Relation to the Actuarially Determined Contribution (27,584) (25,997) (29,426) (30,477) (29,948) (34,486) (239,220) (26,274) Contribution Deficiency (Excess) (7,079)$ (4,934)$ (4,541)$ (3,522)$ -$ -$ (200,331)$ -$ Covered Payroll 109,990$ 110,891$ 118,512$ 117,637$ 121,957$ 128,881$ 131,492$ 131,216$ Contributions as a Percentage of Covered Payroll 25.08% 23.44% 24.83% 25.91% 24.56% 26.76% 181.93% 20.02% Safety Plan
Actuarially Determined Contribution 17,341$ 18,452$ 21,886$ 23,076$ 25,289$ 29,047$ 32,785$ 22,925$ Contribution in Relation to the Actuarially Determined Contribution (23,156) (23,384) (26,483) (26,775) (25,289) (29,047) (263,016) (22,925) Contribution Deficiency (Excess) (5,815)$ (4,932)$ (4,597)$ (3,699)$ -$ -$ (230,231)$ -$ Covered Payroll 63,734$ 63,612$ 68,707$ 66,226$ 68,251$ 73,237$ 76,955$ 78,813$ Contributions as a Percentage of Covered Payroll 36.33% 36.76% 38.54% 40.43% 37.05% 39.66% 341.78% 29.09% Note to Schedule:

Actuarial Valuation Date: June 30, 2018
Actuarial Cost Method: Entry Age Normal
Amortization of Unfunded Actuarial Accrued Liability:

Assumption/ Golden
Investment Non-Investment Method Change Benefit Change Handshake 30 Years 30 Years 20 Years 20 Years 5 Years

2.75% 2.75% 2.75% 2.75% 2.75%
0% 0% 0% 0% 0%
55500
55500
Asset Valuation Method: Market Value of Assets
Discount Rate: 7.0%
Overall Payroll Growth: 2.75%
Inflation: 2.50%
Retirement Age: 2018 CalPERS Experience Study
Mortality: 2018 CalPERS Experience Study, with ongoing improvement using 90 percent of Scale MP-2016 (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation. - Active Plans
- Inactive Plans
Ramp Up
Ramp Down
Driver
Amortization Period
Escalation Rate
(Gain) / Loss
Source
80 CITY OF RIVERSIDE

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(amounts expressed in thousands)
Reporting period June 30, 2018 2019 2020 2021
Measurement period June 30, 2017 2018 2019 2020
Total OPEB Liability
Service cost 2,554$ 2,403 $ 2,435 $ 2,569 $ Interest on the total OPEB liability 1,090 1,301 1,392 1,810 Differences between expected and actual experience - - 292 (2,300) Changes in assumptions (1,668) (306) 9,550 2,225 Changes in benefit terms - -
Benefit payments (1,732) (1,846) (2,003) (2,032) Net change in total OPEB liability 244 1,552 11,666 2,272 Total OPEB liability - beginning 36,542 36,786 38,338 50,004 Total OPEB liability - ending (a) 36,786 $ 38,338 $ 50,004 $ 52,276 $ Covered-employee payroll 170,858$ 170,858$ 185,967$ 191,546$ Total OPEB liability as a percentage of covered-employee payroll 21.53% 22.44% 26.89% 27.29% Notes to Schedule:
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

Changes in assumptions: For the measurement period ending June 30, 2020, the discount rate was changed from 3.51 percent to 2.66 percent.

There are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan.
81 Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.

Urban Areas Security Initiative (UASI) Fund – To account for UASI grants received from the U.S. Department of Homeland Security.

Grants and Restricted Programs Fund – To account for federal, state, and local grants along with other restricted program revenue.

Gas Tax Fund– To account for the construction and maintenance of the road network system of the City. Financing is provided by the City’s share of state gasoline taxes which state law requires to be used to maintain streets.

Air Quality Improvements Fund– To account for qualified air pollution reduction programs funded by the South Coast Air Quality Management District.

Housing & Community Development Fund– To account for federal grants received from the Department of Housing and Urban Development (HUD). The grants are used for the development of a viable urban community by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes.

National Pollution Discharge Elimination System (NPDES) Storm Drain Fund– To account for storm drain maintenance and inspection required for California storm water permits. Activities are funded by a special assessment district of Riverside County, California.

Special Districts Fund– To account for Loving Homes, Village at Canyon Crest, Sycamore Highlands, Riverwalk, Riverwalk Parks Projects, and Street Lighting districts.

Housing Fund – To account for the housing activities for persons with low or moderate income.

Capital Projects Funds
Capital Projects Fundsare used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

Special Capital Improvement Fund– To account for the acquisition, construction and installation of capital improvements and a Community Facilities District within the City.

Storm Drain Fund – To account for the acquisition, construction and installation of storm drains in the City.

Transportation Fund– To account for the construction and installation of street and highway improvements in accordance with Articles 3 and 8 of the Transportation Development Act of 1971 of the State of California.

Permanent Fund
Permanent Fundsare used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government’s programs.

Library Special Fund – To account for the monies held in trust for the benefit of the Riverside City Public Library System. 82 City of Riverside
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
(amounts expressed in thousands)
Assets:

Urban Areas
Security Initiative
Grants and
Restricted
Programs Gas Tax
Air Quality
Improvements
Housing &
Community
Development
NPDES Storm
Drain Special Districts Housing Total
Cash and investments - $ 39,901$ 25,389 $ 1,336 $ 11,956 $ 387 $ 409 $ 13,217 $ 92,595 $ Receivable (net of allowance for uncollectibles)
Interest - 8 46 2 28 - - 24 108 Property taxes - - - - - - 100 - 100 Accounts - 32 - - 8 - - 13 53 Intergovernmental 821 3,489 775 107 5,174 219 - - 10,585 Notes - - - - 15,199 - - 30,180 45,379 Prepaid items - 4 - - 1 - - - 5 Land and improvements held for resale - - - - 443 - - 2,346 2,789 Total Assets 821 $ 43,434 $ 26,210 $ 1,445 $ 32,809 $ 606 $ 509$ 45,780$ 151,614$
Liabilities:

Accounts payable - $ 2,994$ 463 $ - $ 2,207$ - $ 33 $ 125 $ 5,822 $ Accrued payroll - 6 - - 6 3 - 11 26 Retainage payable - 162 875 - 39 - - - 1,076 Intergovernmental - - - - - - 1 - 1 Unearned revenue - 37,407 - - 11,826 - - - 49,233 Due to other funds 821 - - - - - - - 821 Total Liabilities 821 40,569 1,338 - 14,078 3 34 136 56,979 Deferred Inflows of Resources:

Unavailable revenue - 1,734 - - 15,642 - - 30,180 47,556 Total Deferred Inflows of Resources - 1,734 - - 15,642 - - 30,180 47,556 Fund Balances:

Restricted for:

Housing and redevelopment - - - - 3,089 - - 15,464 18,553 Transportation and public works - 1,131 24,872 1,445 - 603 475 - 28,526 Total Fund Balances - 1,131 24,872 1,445 3,089 603 475 15,464 47,079 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 821$ 43,434$ 26,210$ 1,445$ 32,809$ 606$ 509$ 45,780$ 151,614$ Continued
Special Revenue Funds
83 City of Riverside
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
(amounts expressed in thousands)
Permanent
Fund
Assets:

Special Capital
Improvement Storm Drain Transportation Total Library Special Total Nonmajor
Governmental
Funds
Cash and investments 5,075$ -$ -$ 5,075$ 1,477$ 99,147$ Cash and investments with fiscal agent 665 - - 665 - 665 Receivable (net of allowance for uncollectibles)
Interest 11 - - 11 - 119 Property taxes - - - - 100 Accounts - - - - - 53 Intergovernmental - 10,815 283 11,098 - 21,683 Notes - - - - - 45,379 Prepaid items - - - - - 5 Land and improvements held for resale - - - - - 2,789 Total Assets 5,751$ 10,815$ 283$ 16,849$ 1,477$ 169,940$ Liabilities:

Accounts payable 20$ 29$ -$ 49$ -$ 5,871$ Accrued payroll - - - - - 26 Retainage payable 5 26
- 31 - 1,107 Intergovernmental - - - - - 1 Unearned revenue - 9,857 28 9,885 - 59,118 Due to other funds - 354 255 609 - 1,430 Total Liabilities 25 10,266 283 10,574 - 67,553 Deferred Inflows of Resources:

Unavailable revenue - - - - - 47,556 Total Deferred Inflows of Resources - - - - - 47,556 Fund Balances:

Nonspendable:

Permanent fund principal - - - - 1,477 1,477 Restricted for:

Housing and redevelopment - - - - - 18,553 Transportation and public works - - - - - 28,526 Other purposes 5,726 549 - 6,275 - 6,275 Total Fund Balances 5,726 549 - 6,275 1,477 54,831 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 5,751$ 10,815$ 283$ 16,849$ 1,477$ 169,940$ Capital Projects
84 City of Riverside
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Urban Area
Security Initiative
Grants and
Restricted
Programs Gas Tax
Air Quality
Improvement
Housing &
Community
Development
NPDES Storm
Drain Special Districts Housing Total
Revenues:

Intergovernmental 1,191 $ 32,643 $ 13,216 $ 424 $ 19,028 $ - $ - $ - $ 66,502$ Charges for services - 1,411 - 21 - - - - 1,432 Special assessments - - - - - 1,309 4,077 - 5,386 Rental and investment income - 66 2 29 200 3 7 132 439 Miscellaneous - 752 - - 376 - - 3,891 5,019 Total Revenues 1,191 34,872 13,218 474 19,604 1,312 4,084 4,023 78,778 Expenditures:

Current: .

General government - 23,031 - 79 717 - - 2,023 25,850 Public safety 1,191 4,795 - - - - 4,632 - 10,618 Highways and streets - 152 - - - - 542 - 694 Culture and recreation - 2,103 - - - - 24 - 2,127 Capital outlay - 503 11,100 - 18,534 910 - - 31,047 Debt service:

Principal - - - - 11 - - 25 36 Interest - - - - 14 - - 30 44 Total Expenditures 1,191 30,584 11,100 79 19,276 910 5,198 2,078 70,416 Excess (Deficiency) of Revenues Over
(Under) Expenditures - 4,288 2,118 395 328 402 (1,114) 1,945 8,362 Other Financing Sources (Uses):

Transfers in - 1,945 - - - - 1,144 - 3,089 Transfers out - (6,047) - - (361) - - (6,408) Total Other Financing Sources (Uses) - (4,102) - - (361) - 1,144 - (3,319) Net Change in Fund Balances - 186 2,118 395 (33) 402 30 1,945 5,043 Fund Balances, Beginning of Year - 945 22,754 1,050 3,122 201 445 13,519 42,036 Fund Balances, End of Year -$ 1,131$ 24,872$ 1,445$ 3,089$ 603$ 475$ 15,464$ 47,079$ Continued
Special Revenue Funds
85 City of Riverside
Nonmajor Governmental Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Permanent
Fund
Special Capital
Improvement Storm Drain Transportation Total
Library
Special
Total Nonmajor
Governmental
Funds
Revenues:

Licenses and permits 2,388$ 125$ -$ 2,513$ -$ 2,513$ Intergovernmental - 958 255 1,213 - 67,715 Charges for services - - - - - 1,432 Special assessments - - - - - 5,386 Rental and investment income (22) (17) - (39) 16 416 Miscellaneous - - - 128 5,147 Total Revenues 2,366 1,066 255 3,687 144 82,609 Expenditures:

Current:

General government 56 - - 56 - 25,906 Public safety - - - - - 10,618 Highways and streets - - - - - 694 Culture and recreation - - - - 147 2,274 Capital outlay 239 1,096 228 1,563 - 32,610 Debt service:

Principal - - - - - 36 Interest
- - - - - 44 Total Expenditures 295 1,096 228 1,619 147 72,182 Excess (Deficiency) of Revenues Over
(Under) Expenditures 2,071 (30) 27 2,068 (3) 10,427 Other Financing Sources (Uses):

Transfers in - - - - - 3,089 Transfers out (1,750) - - (1,750) - (8,158) Total Other Financing Sources (Uses) (1,750) - - (1,750) - (5,069) Net Change in Fund Balances 321 (30) 27 318 (3) 5,358 Fund Balances, Beginning of Year 5,405 579 (27) 5,957 1,480 49,473 Fund Balances, End of Year 5,726$ 549$ -$ 6,275$ 1,477$ 54,831$ Capital Projects
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 86 City of Riverside
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Revenues:

Intergovernmental $ 9,102 $ 1,191 $ (7,911) $ 52,404 $ 32,643 $ (19,761) $ 13,801 $ 13,216 $ (585) $ 420 $ 424 $ 4 Charges for services - - - 1,583 1,411 (172) - - - 230 21 (209) Rental and investment income - - - - 66 66 150 2 (148) - 29 29 Miscellaneous - - - 926 752 (174) - - - - - - Total Revenues 9,102 1,191 (7,911) 54,913 34,872 (20,041) 13,951 13,218 (733) 650 474 (176) Expenditures:

Current:

General government - - - 33,851 23,031 10,820 - - - 1,000 79 921 Public safety 9,102 1,191 7,911 11,107 4,795 6,312 - - - - - - Highways and streets - - - 483 152 331 - - - - - - Culture and recreation - - - 8,576 2,103 6,473 - - - - - - Capital outlay - - - 806 503 303 32,870 11,100 21,770 242 - 242 Total Expenditures 9,102 1,191 7,911 54,823 30,584 24,239 32,870 11,100 21,770 1,242 79 1,163 Excess (Deficiency) of Revenues Over (Under) Expenditures - - - 90 4,288 4,198 (18,919) 2,118 21,037 (592) 395 987 Other Financing Sources (Uses):

Transfers in (out) - - - 1,657 (4,102) (5,759) - - - - - - Total Other Financing Sources (Uses) - - - 1,657 (4,102) (5,759) - - - - - - Net Change in Fund Balances - - - 1,747 186 (1,561) (18,919) 2,118 21,037 (592) 395 987

Fund Balances, Beginning of Year - - - 945 945 - 22,754 22,754 - 1,050 1,050 - Fund Balances, End of Year $ - $ - $ - $ 2,692 $ 1,131 $ (1,561) $ 3,835 $ 24,872 $ 21,037 $ 458 $ 1,445 $ 987 (continued)
to Final
Budget Actual Budget Budget Actual BudgetBudget Actual Budget Budget Actual Budget to Final
Special Revenue Funds
Urban Area Security Initiative Gas Tax Air Quality Improvement Variance Variance Variance
Final to Final Final to Final Final
Grants and Restricted Programs
Variance
Final
87 City of Riverside
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Special Revenue Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Revenues:

Intergovernmental $ 36,020 $ 19,028 $ (16,992) $ - $ - $ - $ - $ - $ - $ - $ - $ - Special assessments - - - 1,633 1,309 (324) 4,035 4,077 42 - - - Rental and investment income 86 200 114 - 3 3 - 7 7 - 132 132 Miscellaneous 638 376 (262) - - - - - - - 3,891 3,891 Total Revenues 36,744 19,604 (17,140) 1,633 1,312 (321) 4,035 4,084 49 - 4,023 4,023 Expenditures:

Current:

General government 1,001 717 284 - - - - - - 4,617 2,023 2,594 Public safety - - - - - - 4,700 4,632 68 - Highways and streets - - - - - - 737 542 195 - Culture and recreation - - - - - - 282 24 258 - Capital outlay 51,625 18,534 33,091 1,625 910 715 - - - - - - Debt service:

Principal 11 11 - - - - - - - 25 25 - Interest 14 14 - - - - - - - 30 30 - Total Expenditures 52,651 19,276 33,375 1,625 910 715 5,719 5,198 521 4,672 2,078 2,594 Excess (Deficiency) of Revenues Over (Under) Expenditures (15,907) 328 16,235 8 402 394 (1,684) (1,114) 570 (4,672) 1,945 6,617 Other Financing Sources (Uses):

Transfers in (out) (361) (361) - - - - 1,200 1,144 (56) - - - Total Other Financing Sources (Uses) (361) (361) - - - - 1,200 1,144 (56) - - - Net Change in Fund Balances (16,268) (33) 16,235 8 402 394 (484) 30 514 (4,672) 1,945 6,617 Fund Balances, Beginning of Year 3,122 3,122 - 201 201 - 445 445 - 13,519 13,519 - Fund Balances, End of Year $ (13,146) $ 3,089 $ 16,235 $ 209 $ 603 $ 394 $ (39) $ 475 $ 514 $ 8,847 $ 15,464 $ 6,617 (continued)
BudgetBudget Actual Budget Budget Actual
Final to Final Final to Final FinalFinal to Final
Special Revenue Funds
Housing & Community Development NPDES Storm Drain Housing Variance Variance Variance
Special Districts
Variance
Budget Actual Budget
to Final
Budget Actual Budget
88 City of Riverside
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Projects Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Revenues:

Licenses and permits $ - $ - $ - $ 2,838 $ 2,388 $ (450) $ 235 $ 125 $ (110) $ - $ - $ - Intergovernmental 55,192 15,660 (39,532) - - - 12,846 958 (11,888) 360 255 (105) Special assessments 770 420 (350) - - - - - - - - - Rental and investment income 180 231 51 20 (22) (42) 13 (17) (30) - - - Miscellaneous 369 46 (323) - - - - - - - - - Total Revenues 56,511 16,357 (40,154) 2,858 2,366 (492) 13,094 1,066 (12,028) 360 255 (105) Expenditures:

Current:

General government 62 14 48 56 56 - - - - - - - Highways and streets 65 - 65

Culture and recreation 15 13 2
Capital outlay 116,365 35,946 80,419 1,155 239 916 13,484 1,096 12,388 333 228 105 Debt service:

Principal - - - 669 - 669 - - - - - - Interest - 1 (1) - - - - - - - - - Total Expenditures 116,507 35,974 80,533 1,880 295 1,585 13,484 1,096 12,388 333 228 105 Excess (Deficiency) of Revenues Over
(Under) Expenditures (59,996) (19,617) 40,379 978 2,071 1,093 (390) (30) 360 27 27 - Other Financing Sources (Uses):

Transfers in (out) 11,439 10,933 (506) (1,750) (1,750) - - - - - - - Proceeds from sale of capital assets - 24 24 - - - - - - - - - Total Other Financing Sources (Uses) 11,439 10,957 (482) (1,750) (1,750) - - - - - - - Net Change in Fund Balances (48,557) (8,660) 39,897 (772) 321 1,093 (390) (30) 360 27 27 - Fund Balances, Beginning of Year 59,018 59,018 - 5,405 5,405 - 579 579 - (27) (27) - Fund Balances, End of Year $ 10,461 $ 50,358 $ 39,897 $ 4,633 $ 5,726 $ 1,093 $ 189 $ 549 $ 360 $ - $ - $ - Budget Actual Budget Budget BudgetBudget Actual
Final
Budget
Final to Finalto Final
ActualBudget Actual Budget
Capital Projects
Capital Outlay Special Capital Improvement Storm Drain Transportation Variance Variance Variance Variance
Final to Final Final to Final
89 Nonmajor Enterprise Funds
Enterprise Fundsare used to account for the operations that are financed and operated in a manner similar to private business enterprises. The City’s intent is to demonstrate that the cost of services provided to the general public on a continuing basis is financed or recovered through user charges; or the City has decided that the periodic determination of net income is appropriate for accountability purposes.

Airport Fund – To account for the operations of the City’s airport.

Refuse Fund– To account for the operations of the City’s solid waste and sanitation program which provides for the collection and disposal of solid waste on a user charge basis to residents and businesses.

Transportation – To account for the operations of the City’s Senior Citizens’ and Handicapped Transportation System in accordance with Article 4 of the Transportation Development Act of 1971 (SB325) of the State of California. Federal Transit Administration Funds are also accounted for in this fund.

Public Parkin
g – To account for the operations and construction of the City’s public parking facilities.

Civic Entertainment Fund– To account for the operations of the Riverside Fox Theater, Riverside Municipal Auditorium, The Box and Showcase, the Riverside Convention Center, and The Cheech.
90 City of Riverside
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2021
(amounts expressed in thousands)
Civic
Assets: Airport Refuse Transportation Public Parking Entertainment Total Current assets:

Cash and investments 1,359 $ 2,464 $ 1,405$ 1,372$ -$ 6,600$ Receivables (net of allowance for uncollectibles)
Interest 3 9 - 4 - 16 Utility billed - 2,261 - - - 2,261 Utility unbilled - 989 - - - 989 Accounts 173 350 3 665 9 1,200 Property tax receivable 40 - - - - 40 Intergovernmental 50 - 1,553 22 3,963 5,588 Inventory - - - - 41 41 Prepaid items - 12 - - 29 41 Deposits - - - - 300 300 Restricted assets:

Other restricted cash and cash equivalents - 2,500 - - 1,207 3,707 Total Current Assets 1,625 8,585 2,961 2,063 5,549 20,783 Non-current assets:

Regulatory assets - 10,152 - - 10,152 Capital assets, net of accumulated depreciation
21,507 4,389 2,582 28,199 86,814 143,491 Total Non-Current Assets: 21,507 14,541 2,582 28,199 86,814 153,643 Total Assets 23,132 23,126 5,543 30,262 92,363 174,426 Deferred Outflows of Resources:

Change in derivative values - - - - 6,620 6,620 Deferred charge on refunding - - - - 716 716 Pension related items 161 1,011 528 257 - 1,957 OPEB related items 30 259 168 38 - 495 Total Deferred Outflows of Resources 191 1,270 696 295 7,336 9,788 Continued
Business-Type Activities - Enterprise Funds
91 City of Riverside
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2021
(amounts expressed in thousands)
Civic
Liabilities Airport Refuse Transportation Public Parking Entertainment Total Current liabilities:

Accounts payable 105 1,739 104 444 1,051 3,443 Accrued payroll 7 48 23 9 - 87 Retainage payable 23 - - - - 23 Unearned revenue 28 - 1,517 - 372 1,917 Deposits - - - - 526 526 Accrued interest - - - 52 - 52 Due to other funds - - - - 3,002 3,002 Total Current Liabilities 163 1,787 1,644 505 4,951 9,050 Noncurrent liabilities:

Due within one year
Long-term obligations 43 231 117 1,119 3,906 5,416 Compensated absences 57 283 122 36 - 498 Landfill capping - 559 - - - 559 Due in more than one year
Long-term obligations 737 4,430 2,292 15,039 61,942 84,440 Compensated absences 18 88 38 11 - 155 Landfill capping - 9,860 - - - 9,860 Regulatory liability - - - - 1 1 Derivative instruments - - - - 7,576 7,576 Net pension liability 399 2,507 1,309 637 - 4,852 OPEB liability 170 1,489 772 318 - 2,749 Total Non-Current Liabilities 1,424 19,447 4,650 17,160 73,425 116,106 Total Liabilities 1,587 21,234 6,294 17,665 78,376 125,156 Deferred Inflows of Resources:

Pension related items 17 110 57 28 - 212 OPEB related items 8 73 45 12 - 138 Total Deferred Inflows of Resources 25 183 102 40 - 350 Net Position
Net investment in capital assets 21,507 4,389 2,582 13,237 21,682 63,397 Restricted for landfill capping - 2,500 - - - 2,500 Unrestricted 204 (3,910) (2,739) (385) (359) (7,189) Total Net Position 21,711$ 2,979$ (157)$ 12,852$ 21,323$ 58,708$ Business-Type Activities - Enterprise Funds
92 City of Riverside
Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Enterprise Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Airport Refuse Transportation Public Parking
Civic
Entertainment Total
Operating Revenues:

Charges for services 1,709 $ 26,468 $ 65 $ 2,968 $ 1,381 $ 32,591 $ Total Operating Revenues 1,709 26,468 65 2,968 1,381 32,591 Operating Expenses:

Personnel services 760 4,879 2,798 349 - 8,786 Contractual services 287 5,846 28 1,682 1,173 9,016 Maintenance and operation 224 9,437 433 477 45 10,616 General 270 5,003 678 566 5,834 12,351 Materials and supplies 17 1,551 83 5 - 1,656 Claims/Insurance 32 146 65 131 219 593 Depreciation 712 859 464 796 2,479 5,310 Amortization - 564 - - - 564 Total Operating Expenses 2,302 28,285 4,549 4,006 9,750 48,892 Operating Income (Loss) (593) (1,817) (4,484) (1,038) (8,369) (16,301) Non-Operating Revenues (Expenses):

Operating grants 67 - 3,909 - - 3,976 Interest revenue (1)
(34) (30) (6) (6) (77) Interest expense and fiscal charges (24) (143) (74) (678) (2,135) (3,054) Other non-operating revenues 104 401 - 839 512 1,856 Gain (loss) on disposal of capital assets 5 1 2 - - 8 Total Non-Operating Revenues 151 225 3,807 155 (1,629) 2,709 Income (Loss) Before Contributions and Transfers (442) (1,592) (677) (883) (9,998) (13,592) Cash capital contributions 39 - 154 - 3,755 3,948 Transfers in - - - - 12,673 12,673 Transfers out - (80) - - - (80) Change in Net Position (403) (1,672) (523) (883) 6,430 2,949 Net Position:

Net Position, Beginning of Year 22,114 4,651 366 13,735 14,893 55,759 Net Position, End of Year 21,711$ 2,979$ (157)$ 12,852$ 21,323$ 58,708$ Business-Type Activities - Enterprise Funds
93 City of Riverside
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Public Civic
Airport Refuse Transportation Parking Entertainment Totals Cash Flows from Operating Activities:

Cash received from customers and users 1,630 $ 26,005 $ 65 $ 2,345 $ 1,645 $ 31,690 $ Cash paid to other suppliers of goods or services (748) (22,440) (1,419) (2,618) (6,753) (33,978) Cash paid to employees for services (611) (4,774) (2,340) (46) - (7,771) Net Cash Provided (Used) by Operating Activitie
s 271 (1,209) (3,694) (319) (5,108) (10,059) Cash Flows from Non-Capital Financing Activities:

Transfers in - - - - 12,673 12,673 Transfers out - (80) - - - (80) Operating grants 74 - 3,259 2 - 3,335 Receipts (payments) on interfund advances - - - - 3,002 3,002 Payments on pension obligation bonds (52) (291) (148) (75) - (566) Other receipts (payments) from non-operating revenue 104 401 - 839 512 1,856 Net Cash Provided (Used) by Non-Capital Financing
Activities 126 30 3,111 766 16,187 20,220 Cash Flows from Capital and Related Financing Activities:

Purchase of capital assets (515) (1,341) (1) - (3,755) (5,612) Proceeds from the sale of capital assets 5 313 2 - - 320 Principal paid on long-term obligations - - - (1,014) (4,316) (5,330) Interest paid on long-term obligations - - - (645) (3,059) (3,704) Contributions 39 - 154 - (208) (15) Net Cash Provided (Used) by Capital and Related
Financing Activities (471) (1,028) 155 (1,659) (11,338) (14,341)
Cash Flows from Investing Activities:

Sale and (purchase) of investments - - - - - - Interest from investments - (23) (24) (2) (6) (55) Net Cash Provided (Used) by Investing Activitie
s - (23) (24) (2) (6) (55) Net Increase (Decrease) in Cash and Cash Equivalents (74) (2,230) (452) (1,214) (265) (4,235) Cash and investments, Beginning of Year 1,433 7,194 1,857 2,586 1,472 14,542 Cash and Investments, End of Year 1,359$ 4,964 $ 1,405 $ 1,372 $ 1,207 $ 10,307 $ Continued
94 City of Riverside
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands) Continued
Public Civi
c
Airport Refuse Transportation Parking Entertainment Totals Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities:

Operating income (loss) (593)$ (1,817)$ (4,484)$ (1,038)$ (8,369)$ (16,301)$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provied (Used) by Operating Activities:

Depreciation and amortization 712 1,423 464 796 2,479 5,874 Changes in assets, liabilities and deferred inflows/outflows of resources:

Utility billed receivable - (856) - - - (856) Utility unbilled receivable - (90) - - - (90) Accounts receivable (39) (81) - (623) 56 (687) Property tax receivable (40) - - - - (40) Inventory - (12) - - 43 31 Prepaid and deposit items - 2 - - 40 42 Regulatory asset - 564 - - 75 639 Accounts payable 31 (90) 54 243 435 673 Accrued payroll - (5) (3) 1 - (7) Retainage payable 23 - - - - 23 Unearned revenue 28 - (186) - 110 (48) Deposits payable - - - - 22 22 Compensated absences 19 20 7 7 - 53
Landfill capping - (357) - - - (357) Regulatory liability - - - - 1 1 Net OPEB liability and related charges in deferred outflows and inflows of resources 4 21 15 3 - 43 Net pension liability and related charges in deferred outflows and inflows of resources 126 69 439 292 - 926 Net Cash Provided (Used) by Operating Activitie
s 271$ (1,209) $ (3,694) $ (319) $ (5,108) $ (10,059) $ Schedule of noncash financing and investing activities:

Capital assets - transfer (from)/to governmental activities - - - - (601) (601) 95 Internal Service Funds
Internal Service Fundsare used to account for the financing of goods and services provided by one City department to other City departments on a cost-reimbursement basis.

Self-Insurance Trust – To account for the operations of the City’s self-insured workers’ compensation, unemployment and liability programs.

Central Stores Fund– To account for the operations of the City’s centralized supplies inventory, including receiving and delivery services provided to City departments.

Central Garage Fund – To account for the maintenance and repair of all city-owned vehicles and motorized equipment, except for Police vehicles. 96 City of Riverside
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
(amounts expressed in thousands)
Assets: Self-Insurance Trust Central Stores Central Garage Total Current assets:

Cash and investments 45,591 $ 129 $ 12,780$ 58,500$ Receivables (net of allowances for uncollectibles)
Interest 40 - 2 2 6 2 Accounts 29 - 107 136 Intergovernmental 155 - 138 293 Inventory - 7,037 383 7,420 Prepaid items - - 2 2 Total Current Assets 45,815 7,166 13,432 66,413 Non-Current Assets:

Capital assets, net of accumulated depreciation: - 101 6,135 6,236 Total Non-Current Assets: - 101 6,135 6,236 Total Assets 45,815 7,267 19,567 72,649 Deferred Outflows of Resources:

Pension related items 240 141 781 1,162 OPEB related items 60 3 9 147 246 Total Deferred Outflows of Resources
300 180 928 1,408 Liabilities:

Current liabilities:

Accounts payable 294 412 630 1,336 Accrued payroll 10 7 3 0 4 7 Retainage payable - - 2 1 2 1 Total Current Liabilities 304 419 681 1,404 Non-Current Liabilities:

Due within one year
Long-term obligations 30 3 2 165 227 Compensated absences 84 7 4 206 364 Claims liability 15,044 - - 15,044 Due in more than one year
Long-term obligations 611 618 3,348 4,577 Compensated absences 36 3 2 8 9 157 Claims liability 61,559 - - 61,559 Net pension liability 596 349 1,937 2,882
OPEB liability 205 205 864 1,274 Total Non-Current Liabilities 78,165 1,310 6,609 86,084 Total Liabilities 78,469 1,729 7,290 87,488 Deferred Inflows of Resources:

Pension related items 26 1 5 8 5 126 OPEB related items 15 1 1 4 2 6 8 Total Deferred Inflows of Resources 41 2 6 127 194 Net Position:

Net investment in capital assets - 101 6,135 6,236 Unrestricted (32,395) 5,591 6,943 (19,861) Total Net Position (Deficit) (32,395)$ 5,692$ 13,078$ (13,625)$ 97 City of Riverside
Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Self-Insurance
Trust Central Stores Central Garage Totals
Operating Revenues:

Charges for services 13,390 $ 1,379 $ 8,897 $ 23,666 $ Total Operating Revenues 13,390 1,379 8,897 23,666 Operating Expenses:

Personnel services 1,107 668 3,023 4,798 Contractual services 1,914 5 129 2,048 Maintenance and operation 3 44 2,753 2,800 General 29,166 113 1,046 30,325 Materials and supplies - 28 150 178 Claims/Insurance 13,091 9 112 13,212 Depreciation and amortization 3 11 818 832 Total Operating Expenses 45,284 878 8,031 54,193 Operating Income (Loss) (31,894) 501 866 (30,527) Non-Operating Revenues (Expenses):

Interest revenue (59) - 43 (16) Interest expense and fiscal charges (20) (20) (108) (148) Other non-operating revenues 418 1 98 517 Gain (loss) on disposal of capital assets - - 73 73 Total Non-Operating Revenues (Expenses) 339 (19) 106 426 Income (Loss) Before Contributions and Transfers (31,555) 482 972 (30,101) Cash capital contributions - - 137 137 Transfers in 24,000 - - 24,000
Change in Net Position (7,555) 482 1,109 (5,964) Net Position:

Net Position (Deficit), Beginning of Year (24,840) 5,210 11,969 (7,661) Net Position (Deficit), End of Yea
r (32,395)$ 5,692 $ 13,078 $ (13,625) $ Governmental Activities - Internal Service Funds
98 City of Riverside
Combining Statement of Cash Flows
Internal Service Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Cash Flows from Operating Activities:

Cash received from interfund services provided $ 37,347 $ 1,379 $ 8,668 $ 47,394 Cash paid to other suppliers of goods or services (44,652) (828) (3,658) (49,138) Cash paid to employees for services (2,295) (663) (3,220) (6,178) Net Cash Provided (Used) by Operating Activities (9,600) (112) 1,790 (7,922) Cash Flows from Non-Capital Financing Activities:

Transfers in 24,000 - - 24,000 Receipts (payments) on interfund advances - - 670 670 Payments on pension obligation bonds (37) (41) (209) (287) Other receipts (payments) from non-operating revenue 418 1 98 517 Net Cash Provided (Used) by Non-Capital Financing
Activities 24,381 (40) 559 24,900 Cash Flows from Capital and Related Financing Activities:

Purchase of capital assets - (53) (734) (787) Proceeds from the sale of capital assets - - 73 73 Contributions - - 137 137 Net Cash Provided (Used) by Capital and Related
Financing Activities - (53) (524) (577) Cash Flows from Investing Activities:

Interest from investments (17) - 48 31 Net Cash Provided (Used) by Investing Activities (17) - 48 31 Net Increase (Decrease) in Cash and Cash Equivalents 14,764 (205) 1,873 16,432 Cash and Investments, Beginning of Year 30,827 334 10,907 42,068 Cash and Investments, End of Year $ 45,591 $ 129 $ 12,780 $ 58,500 Continued
Total
Self-Insurance
Central Central
Trust Stores Garage
99 City of Riverside
Combining Statement of Cash Flows
Internal Service Funds
For the fiscal year ended June 30, 2021
(amounts expressed in thousands) Continued
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities:

Operating income (loss) $ (31,894) $ 501 $ 866 $ (30,527) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation and amortization 3 11 818 832 Changes in assets, liabilities and deferred inflows/outflows of resources:

Accounts receivable - - (92) (92) Intergovernmental receivable (43) - (137) (180) Inventory - (496) 68 (428) Prepaid and deposit items 15 - - 15 Accounts payable (493) (133) 443 (183) Accrued payroll 1 (1) (2) (2) Retainage payable - - 21 21 Compensated absences 33 19 (4) 48 Claims liability 22,775 - - 22,775 Net OPEB liability and related charges in deferred outflows and inflows of resources 5 3 12 20 Net pension liability and related charges in deferred outflows and inflows of resources (2) (16) (203) (221) Net Cash Provided (Used) by Operating Activities $ (9,600) $ (112) $ 1,790 $ (7,922) There was no noncash financing and investing activities for fiscal year 2020-21 Total
Self-Insurance Central Central
Trust Stores Garage
100

COMBINING GENERAL FUND AND CAPITAL OUTLAY SCHEDULES WITH

MEASURE Z FUND ACTIVITY
101
City of Riverside
Balance Sheet
Combining General Fund Schedule
June 30, 2021
(amounts expressed in thousands)
Assets: General Fund Measure Z Fund
Total General
Fund
Cash and investments 93,155$ 45,820 $ 138,975 $ Cash and investments with fiscal agent 10,697 - 10,697 Receivables (net of allowance for uncollectibles)
Interest 184 74 258 Property taxes 2,369 - 2,369 Sales tax 15,666 14,437 30,103 Utility billed 2,517 - 2,517 Accounts 6,587 1 6,588 Intergovernmental 4,171 - 4,171 Prepaid items 1,587 108 1,695 Due from other funds 4,432 - 4,432 Land & improvements held for resale 175 - 175 Total Assets 141,540$ 60,440 $ 201,980 $ Liabilities:

Accounts payable 4,094$ 846 $ 4,940 $ Accrued payroll 22,152 220 22,372 Retainage payable - 2 2 Intergovernmental 148 - 148 Unearned revenue 25 - 25 Deposits 11,287 - 11,287 Total Liabilities 37,706 1,068 38,774 Deferred Inflows of Resources:

Unavailable revenue 3,559
- 3,559
Total Deferred Inflows of Resources 3,559 - 3,559 Fund Balances:

Nonspendable:

Inventories, prepaids and deposits 1,587 108 1,695 Land and improvements held for resale 175 - 175 Restricted for:

Unfunded accrued liability 10,697 - 10,697 Committed for:

Economic contingency 57,400 5,000 62,400 Assigned to:

General government 2,019 1,345 3,364 Public safety 693 1,319 2,012 Highways and streets 1,389 6 1,395 Culture and recreation 716 8 724 Continuing projects 2,480 14,915 17,395 Unassigned 23,119 36,671 59,790 Total Fund Balances 100,275 59,372 159,647 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 141,540$ 60,440$ 201,980$ 102
City of Riverside
Statement of Revenues, Expenditures and Changes in Fund Balances Combining General Fund Schedule
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
General Fund
Measure Z
Fund
Total General
Fund
Revenues:

Taxes 193,820$ 71,999$ 265,819$
Licenses and permits 10,265 - 10,265 Intergovernmental 3,851 - 3,851 Charges for services 13,146 - 13,146 Fines and forfeitures 2,100 - 2,100 Special assessments 626 - 626 Rental and investment income 3,330 466 3,796 Miscellaneous 769 - 769 Total Revenues 227,907 72,465 300,372 Expenditures:

Current:

General government 2,556 2,056 4,612 Public safety 171,654 18,461 190,115 Highways and streets 15,208 995 16,203 Culture and recreation 25,660 444 26,104 Capital outlay 343 349 692 Total Expenditures 215,421 22,305 237,726 Excess (Deficiency) of Revenues Over (Under) Expenditures 12,486 50,160 62,646 Other Financing Sources (Uses):

Transfers in 52,757 506 53,263 Transfers out (70,450) (19,870) (90,320) Transfers in/(out) to General Fund * 18,266 (18,266) - Gain (loss) on disposal of capital assets 189 - 189 Total Other Financing Sources (Uses) 762 (37,630) (36,868) Net Change in Fund Balances 13,248 12,530 25,778 Fund Balances, Beginning of Year 87,027 46,842 133,869 Fund Balances, End of Year 100,275$ 59,372$ 159,647$ * Per accounting standards, Transfers within the same fund are not reflected in the Statement of Revenues, Expenditures and Changes in Fund Balances; however, they are reflected in this schedule for transparency purposes. 103
City of Riverside
Balance Sheet
Combining Capital Outlay Fund Schedule
June 30, 2021
(amounts expressed in thousands)
Assets:

Capital Outlay
Fund
Measure Z Capital
Outlay Fund
Total Capital
Outlay Fund
Cash and investments 24,653$ 22,456$ 47,109$ Receivables (net of allowance for uncollectibles)
Interest 52 3 2 8 4 Accounts 437 - 437 Intergovernmental 7,163 - 7,163 Total Assets 32,316$ 22,488$ 54,804$ Liabilities:

Accounts payable 508$ 1,430$ 1,938$ Retainage payable 29 387 416 Unearned revenue 1,320 - 1,320 Total Liabilities 1,857 1,817 3,674 Deferred Inflows of Resources:

Unavailable revenue 772 - 772 Total Deferred Inflows of Resources 772 - 772 Fund Balances:

Restricted for:

Transportation and public works 29,687
20,671 50,358
Total Fund Balances 29,687 20,671 50,358 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 32,316$ 22,488$ 54,804$ 104
City of Riverside
Statement of Revenues, Expenditures and Changes in Fund Balances Combining Capital Outlay Fund Schedule
For the fiscal year ended June 30, 2021
(amounts expressed in thousands)
Capital Outlay
Fund
Measure Z Capital
Outlay Fund
Total Capital
Outlay Fund
Revenues:

Intergovernmental 15,660 $ - $ 15,660$ Special assessments 420 - 420 Rental and investment income - 231 231 Miscellaneous 46 - 46 Total Revenues 16,126 231 16,357 Expenditures:

Current:

General government 14 - 14 Culture and recreation 13 - 13 Capital outlay 17,719 18,227 35,946 Debt service: -
Interest 1 - 1 Total Expenditures 17,747 18,227 35,974 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,621) (17,996) (19,617) Other Financing Sources (Uses):

Transfers in 1,526 12,915 14,441 Transfers out (3,002) (506) (3,508) Proceeds from the sale of capital assets 24 - 24 Total Other Financing Sources (Uses) (1,452) 12,409 10,957 Net Change in Fund Balances (3,073) (5,587) (8,660) Fund Balances, Beginning of Year 32,760 26,258 59,018 Fund Balances, End of Year 29,687$ 20,671$ 50,358$ 105
Contents Page
Financial Trends 107
Revenue Capacity 113
These schedules contain informat property and sales taxes.

Debt Capacity 123
Demographic and Economic Information 129
Operating Information 132

These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

This part of the City’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 says about the City’s overall financial health.

Statistical Section
(Unaudited)
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.
106
Table 1
(accrual basis of accounting) (in thousands)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets 1,076,485 $ 1,083,485 $ 1,106,384 $ 1,126,220 $ 1,123,910 $ 1,102,409 $ 1,093,896 $ 1,102,837 $ 1,081,991 $ 1,170,232 $ Restricted 86,325 80,712 96,587 105,847 106,488 104,853 112,183 126,551 153,806 174,666 Unrestricted 23,145 17,989 (2,049) (406,388) (389,278) (362,146) (364,500) (356,340) (369,222) (366,713) Total governmental activities net position 1,185,955 $ 1,182,186 $ 1,200,922 $ 825,679 $ 841,120 $ 845,116 $ 841,579 $ 873,048 $ 866,575 $ 978,185 $ Business-type activities
Net investment in capital assets 666,919 $ 609,691 $ 616,844 $ 626,166 $ 654,870 $ 702,844 $ 800,227 $ 867,206 $ 751,865 $ 756,116 $ Restricted 54,923 69,068 68,507 75,660 85,526 93,570 80,717 67,057 75,170 78,885 Unrestricted 285,062 330,833 359,698 209,469 235,144 245,116 199,143 155,468 272,776 263,837 Total business-type activities net position 1,006,904 $ 1,009,592 $ 1,045,049 $ 911,295 $ 975,540 $ 1,041,530 $ 1,080,087 $ 1,089,731 $ 1,099,811 $ 1,098,838 $ Primary government
Net investment in capital assets 1,743,404 $ 1,693,176 $ 1,723,228 $ 1,752,386 $ 1,778,780 $ 1,805,253$ 1,894,123$ 1,970,043$ 1,833,856$ 1,926,348$ Restricted 141,248 149,780 165,094 181,507 192,014 198,423 192,900 193,608 228,976 253,551 Unrestricted 308,207 348,822 357,649 (196,919) (154,134) (117,030) (165,357) (200,872) (96,446) (102,876) Total primary government net position 2,192,859$ 2,191,778$ 2,245,971$ 1,736,974$ 1,816,660$ 1,886,646$ 1,921,666$ 1,962,779$ 1,966,386$ 2,077,023$ City of Riverside
Net Position by Component
Last Ten Fiscal Years
107
Table 2
(accrual basis of accounting) (in thousands) Page 1 of 2 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental activities:

General government 48,731 $ 54,808$ 39,331 $ 26,587 $ 24,483$ 44,510$ 45,360 $ 51,139$ 63,651 $ 97,927 $ Public safety 148,605 147,652 149,555 154,123 161,284 160,665 216,772 201,942 222,061 219,136 Highways and streets 35,342 35,072 36,564 36,563 38,836 38,585 42,544 43,770 46,983 42,034 Culture and recreation 54,594 40,077 42,252 45,594 47,762 49,406 38,362 31,200 37,400 37,693 Interest on long-term debt 25,087 16,627 17,741 17,025 16,387 16,028 12,414 10,045 13,181 19,083 Total governmental activities expenses 312,359 294,236 285,443 279,892 288,752 309,194 355,452 338,096 383,276 415,873 Business-type activities:

Electric 288,799 292,175 304,416 309,874 307,925 317,335 333,061 347,804 350,667 366,165 Water 56,715 58,768 60,030 62,792 57,769 62,189 68,281 70,912 73,742 71,738 Sewer 43,702 43,945 40,385 35,593 39,978 38,305 54,136 70,137 62,961 61,029 Airport 2,646 2,029 1,662 1,809 1,799 1,998 2,179 1,972 2,304 2,326 Refuse 19,979 20,581 20,831 20,007 21,652 21,953 22,082 24,205 26,549 28,428 Transportation 3,667 3,745 4,067 4,385 4,113 4,221 4,782 4,493 4,607 4,623 Public parking 4,984 5,051 4,610 5,604 5,141 5,448 6,186 5,151 4,628 4,684 Civic Entertainment - - - - - - 19,995 24,151 21,584 11,885 Total business-type activities expenses 420,492 426,294 436,001 440,064 438,377 451,449 510,702 548,825 547,042 550,878 Total primary government expenses 732,851 $ 720,530$ 721,444 $ 719,956 $ 727,129$ 760,643$ 866,154 $ 886,921$ 930,318 $ 966,751 $ Program Revenues
Governmental activities:

Charges for services:

General government 14,662 $ 13,338$ 13,775 $ 17,600 $ 24,944$ 27,441$ 24,605 $ 29,281$ 25,698 $ 11,485 $ Public safety 7,837 7,793 7,444 7,256 3,243 1,167 1,880 2,443 2,138 7,649
Highways and streets 16,532 15,825 17,487 13,868 5,709 5,930 5,554 6,036 5,174 11,278 Culture and recreation 4,622 5,237 7,406 16,319 12,458 22,802 6,078 7,465 5,050 3,694 Operating grants and contributions 31,581 21,485 14,341 12,869 16,321 19,374 22,548 23,966 21,779 64,405 Capital grants and contributions 54,476 32,202 48,433 43,904 31,216 7,617 18,039 27,450 19,945 28,284 Total governmental activities program revenues 129,710 95,880 108,886 111,816 93,891 84,331 78,704 96,641 79,784 126,795 Business-type activities:

Charges for services:

Electric 333,029 347,933 344,037 347,621 354,530 366,066 364,516 363,570 368,969 376,101 Water 65,206 68,489 68,691 66,051 57,250 62,627 66,828 65,177 70,167 80,252 Sewer 37,747 43,772 46,162 50,336 52,664 59,735 65,081 64,282 64,114 66,323 Airport 1,524 1,396 1,100 1,260 1,549 1,578 1,562 1,618 1,743 1,709 Refuse 19,588 20,829 20,677 21,360 21,806 22,567 23,085 23,004 25,109 26,468 Transportation 352 344 413 385 377 359 441 444 309 65 Public parking 4,803 4,777 4,382 4,609 4,918 5,009 6,258 4,604 4,301 2,968 Civic Entertainment - - - - - - 16,393 16,977 12,233 1,381 Operating grants and contributions 2,738 2,718 2,524 3,869 2,322 3,751 3,374 3,093 3,473 3,976 Capital grants and contributions 21,164 11,734 11,486 8,027 18,868 24,151 26,957 10,607 13,979 12,273 Total business-type activities program revenues 486,151 501,992 499,472 503,518 514,284 545,843 574,495 553,376 564,397 571,516 Total primary government program revenues 615,861 $ 597,872$ 608,358 $ 615,334 $ 608,175$ 630,174$ 653,199 $ 650,017$ 644,181 $ 698,311 $ (continued)
City of Riverside
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year
108
Table 2
(accrual basis of accounting) (in thousands) Page 2 of 2 20121 20132 2014 2015 2016 2017 2018 2019 2020 2021
Net Revenues (Expense)
Governmental activities (182,649)$ (198,356)$ (176,557)$ (168,076)$ (194,861)$ (224,863)$ (276,748)$ (241,455)$ (303,492)$ (289,078)$ Business-type activities 65,659 75,698 63,471 63,454 75,907 94,394 63,793 4,551 17,355 20,638 Total primary government net expense (116,990)$ (122,658)$ (113,086)$ (104,622)$ (118,954)$ (130,469)$ (212,955)$ (236,904)$ (286,137)$ (268,440)$ General Revenues and Other Changes in Net Position
Governmental activities:

Taxes
Sales taxes 47,701$ 50,222 $ 55,096$ 59,437 $ 60,976$ 75,883$ 120,338$ 130,645$ 128,653 $ 150,321$ Property taxes 74,179 52,904 51,323 54,864 55,545 59,526 63,515 69,478 72,609 71,986 Utility users taxes 27,320 28,206 28,092 28,076 27,828 27,958 27,498 28,009 29,044 30,577 Franchise taxes 4,883 4,959 5,046 5,543 5,730 4,814 4,972 5,256 5,443 5,527 Transient occupancy taxes 2,995 3,703 4,189 5,280 6,093 6,622 6,793 7,163 5,959 5,801 Intergovernmental, unrestricted 351 337 263 3,153 477 145 172 156 656 499 Investment earnings
4,440 2,786 2,759 3,233 729 6,145 5,187 7,500 10,185 4,969 Miscellaneous 9,273 9,208 5,425 12,395 11,708 2,050 4,278 - 9,146 5,988 Transfers 40,679 42,262 43,100 42,681 41,216 45,716 41,459 37,115 35,324 34,879 Extraordinary items 149,617 - - - - - - - - - Total governmental activities 361,438 194,587 195,293 214,662 210,302 228,859 274,212 285,322 297,019 310,547 Business-type activities:

Investment income 11,405 4,744 8,005 5,319 6,888 2,650 3,939 19,488 19,838 681 Miscellaneous 3,110 5,767 7,081 7,652 22,666 14,662 12,901 10,322 8,211 11,986 Transfers (40,679) (42,262) (43,100) (42,681) (41,216) (45,716) (41,459) (37,115) (35,324) (34,278) Extraordinary items - (41,259) - - - - - - - Total business-type activities (26,164) (73,010) (28,014) (29,710) (11,662) (28,404) (24,619) (7,305) (7,275) (21,611) Total primary government 335,274$ 121,577 $ 167,279$ 184,952 $ 198,640$ 200,455$ 249,593$ 278,017$ 289,744 $ 288,936$ Change in Net Position
Governmental activities 178,789$ (3,769)$ 18,736$ 46,586 $ 15,441$ 3,996$ (2,536)$ 43,867$ (6,473)$ 21,469$ Business-type activities 39,495 2,688 35,457 33,744 64,245 65,990 39,174 (2,754) 10,080 (973) Total primary government 218,284$ (1,081)$ 54,193$ 80,330 $ 79,686$ 69,986$ 36,638$ 41,113$ 3,607 $ 20,496$ 1 The increase in total governmental activities net position is primarily due to the dissolution of the Redevelopment Agency. 2 The decrease in total business-type activities net position is primarily due to the power plant closure.

Fiscal Year
City of Riverside
Changes in Net Position
Last Ten Fiscal Years
109
Table 3
(modified accrual basis of accounting, in thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General fund
Nonspendable 25,720 $ 26,421 $ 24,419 $ 23,642 $ 23,094 $ 26,168 $ 1,947 $ 949 $ 1,446 $ 1,870 $ Restricted 2,803 2,196 2,204 2,985 3,067 2,651 2,991 3,411 10,699 10,697 Committed - - - - - - 53,800 65,916 59,280 62,400 Assigned 6,380 10,711 14,505 13,965 9,922 14,968 23,242 26,984 21,260 24,890 Unassigned 39,347 37,763 37,732 39,059 29,495 39,283 7,644 23,907 41,184 59,790 Total general fund 74,250 $ 77,091 $ 78,860 $ 79,651 $ 65,578 $ 83,070 $ 89,624 $ 121,167 $ 133,869 $ 159,647 $ All other governmental funds
Nonspendable 1,539 $ 1,441 $ 1,460 $ 1,625 $ 1,619 $ 1,601 $ 4,855 $ 1,560 $ 1,510 $ 1,477 $ Restricted for: -
Housing and redevelopment 26,911 26,410 26,223 25,523 24,746 24,098 18,827 16,668 16,611 18,553 Debt service 29,080 25,884 26,177 26,203 26,221 6,455 11,509 6,825 11,210 11,292 Transportation and public works 31,075 16,487 54,876 36,347 36,876 34,178 43,499 91,379 84,413 78,884 Other purposes 1,401 2,003 321 2,326 3,628 4,145 3,451 5,505 5,984 6,275 Unassigned - - - - - (24) - - (27) - Total all other governmental funds 90,006 $ 72,225 $ 109,057 $ 92,024 $ 93,090 $ 70,453 $ 82,141 $ 121,937 $ 119,701 $ 116,481 $ Note: Certain reclassifications have been made to prior year balances to conform with current year's presentation.

City of Riverside
Fund Balances of Governmental Funds
Last Ten Fiscal Years
110
Table 4
(modified accrual basis accounting) (in thousands) Page 1 of 2 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues:

Taxes 156,593 $ 139,994$ 143,748$ 153,200$ 156,172$ 174,803$ 223,116$ 240,416$ 241,708 $ 267,714 $ Licenses and permits 9,292 10,173 9,244 11,168 11,611 14,455 12,442 14,317 13,023 12,778 Intergovernmental 66,618 50,734 59,348 49,892 51,896 31,440 42,454 44,950 42,296 87,226 Charges for services 11,774 12,062 15,734 24,737 26,443 31,384 17,438 16,927 15,968 14,578 Fines and forfeitures 6,293 6,234 7,283 3,957 1,941 1,976 3,717 2,078 1,887 2,100 Special assessments 6,276 6,669 6,272 6,757 7,039 7,578 7,113 7,973 6,950 7,674 Use of money and property 8,095 3,878 4,315 5,112 4,370 4,718 3,446 6,548 8,441 4,437 Miscellaneous 10,611 14,933 6,957 6,939 12,578 7,252 8,716 5,370 7,845 5,962 Total revenues 275,552 $ 244,677$ 252,901$ 261,762$ 272,050$ 273,606$ 318,442$ 338,579$ 338,118 $ 402,469 $ Expenditures:

General government 18,835 $ 15,713$ 13,558$ 17,799$ 19,900$ 20,650$ 21,135$ 18,880$ 107,779 $ 30,887 $ Public safety 150,878 150,290 151,721 157,660 164,800 163,712 190,916 198,363 434,208 200,733 Highways and streets 16,651 16,294 16,944 16,594 17,416 17,504 19,207 20,927 22,254 16,897 Culture and recreation 57,538 45,356 34,275 37,527 39,583 40,643 29,382 30,528 28,825 28,391 Capital outlay 75,482 73,581 72,365 60,060 53,208 31,000 33,504 41,585 55,178 69,248 Debt Service:

Principal 83,378 45,006 45,500 49,101 51,987 72,700 21,904 37,867 23,761 24,475 Interest 24,133 15,116 16,787 17,048 16,451 16,115 12,746 10,493 10,773 20,372 Debt issuance costs 169 581 843 172 180 29 24 854 1,185 - Payment for advance refunding - 3,521 - - - - - - - -
Total expenditures 427,064 $ 365,458$ 351,993$ 355,961$ 363,525$ 362,353$ 328,818$ 359,497$ 683,963 $ 391,003 $ Excess of revenues
over (under) expenditures (151,512)$ (120,781)$ (99,092)$ (94,199)$ (91,475)$ (88,747)$ (10,376)$ (20,918)$ (345,845)$ 11,466 $ (continued)
City of Riverside
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
111
Table 4
(modified accrual basis accounting) (in thousands) Page 2 of 2 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
.

Other financing sources (uses):

Transfers in 196,859 $ 56,572 $ 58,469 $ 61,510 $ 61,384 $ 94,521 $ 102,774 $ 94,771 $ 95,932 $ 112,907 $ Transfers out (156,305) (14,178) (15,369) (18,829) (20,168) (48,805) (66,021) (58,688) (60,608) (102,028) Issuance of long term debt 34,940 99,753 87,037 30,940 31,145 31,578 14,500 49,485 320,131 Capital lease financings - 7,203 6,625 4,450 5,846 2,109 - - Proceeds from the sale of capital assets 156 82 931 (114) 261 4,199 461 149 856 213 Other finance sources - bond premium/(discount) - - - - - - - 6,540 - Payments to refunded bond agent - (43,591) - - - - - Total other financing sources (uses) 75,650 105,841 137,693 77,957 78,468 83,602 51,714 92,257 356,311 11,092 Net change in fund balances (75,862) $ (14,940) $ 38,601 $ (16,242)$ (13,007)$ (5,145)$ 41,338 $ 71,339 $ 10,466 $ 22,558 $ Debt service as a percentage of
noncapital expenditures 32.507% 21.039% 21.803% 22.360% 21.714% 26.625% 11.999% 15.143% 5.428% 17.600% (1) (2)
City of Riverside
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(2) Includes one-time payment of $318,944 to CalPERS to paydown the Unfunded Pension Liability for Miscellaneous and Safety personnel. (1) Includes one-time early redemption of $33.3 million of 2011 Redevelopment Tax Allocation Bonds. 112
Table 5
(accrual basis of accounting) (in thousands)
Other
Fiscal Residential Commercial Industrial Wholesale Other Transmission Operating Total Year Sales Sales Sales Sales Sales Revenue Revenue Revenues 2012 110,471 66,047 107,455 50 5,614 30,735 12,657 333,029 2013 118,173 66,632 110,680 638 5,712 32,688 13,410 347,933 2014 111,880 67,063 111,260 115 5,600 32,630 15,489 344,037 2015 114,112 68,572 112,283 60 5,654 30,587 16,353 347,621 2016 116,997 69,759 113,756 3 4,737 32,924 16,354 354,530 2017 117,662 71,456 115,432 9 4,782 35,497 21,228 366,066 2018 115,630 71,128 115,106 2 4,792 37,484 20,374 364,516 2019 116,303 69,878 114,078 344 4,824 35,730 22,413 363,570 2020 121,162 68,958 115,745 (10) 4,849 34,817 23,438 368,959 2021 133,460 68,877 115,206 27 4,864 32,316 21,351 376,101 City of Riverside
Business-Type Activities Electricity Revenues By Source Last Ten Fiscal Years
113
Table 6
(accrual basis of accounting) (in thousands) Utility Transient
Fiscal Sales Property Users Franchise Occupancy Total
Year Tax1 Tax2 Tax Tax Tax Taxes
2012 47,701 74,179 27,320 4,883 2,995 157,078 2013 50,222 52,904 28,206 4,959 3,703 139,994 2014 55,096 51,323 28,092 5,046 4,189 143,746 2015 59,437 54,864 28,076 5,543 5,280 153,200 2016 60,976 55,545 27,828 5,730 6,093 156,172 2017 75,883 59,526 27,958 4,814 6,622 174,803 2018 120,338 63,515 27,498 4,972 6,793 223,116 2019 130,645 69,343 28,009 5,256 7,163 240,416 2020 128,653 72,609 29,044 5,443 5,959 241,708 2021 150,321 71,986 30,577 5,527 5,801 264,212 1 Increase in sales tax in fiscal year 2017 is due to Measure Z which was passed by the voters November 2016 and became effective April 1, 2017. Measure Z is a one percent transaction and use tax.
2 Decrease in property taxes in fiscal years 2012 and 2013 relates to the dissolution of the Redevelopment Agency. Upon the dissolution of the Redevelopment Agency on February 1, 2012, property taxes received by the Successor Agency are reported in a private-purpose trust fund and therefore are excluded from the activities of the primary government.

City of Riverside
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
114
Table 7
Last Ten Calendar Years (in thousands of dollars) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Apparel Stores 168,352 $ 175,320 $ 178,349 $ 188,670 $ 203,001 $ 214,852 $ 210,158 $ 212,036 $ 210,439 $ 147,176 $ General Merchandise 444,125 450,988 463,355 475,147 477,903 478,538 465,490 470,386 465,234 426,500 Food Stores 169,380 181,719 193,368 209,022 217,902 168,854 169,922 184,278 185,859 202,647 Eating and Drinking Places 395,423 422,153 447,841 483,901 533,317 582,262 609,705 639,995 677,763 587,403 Building Materials 349,398 376,011 454,468 514,993 567,790 636,415 666,907 738,178 761,881 813,584 Auto Dealers and Supplies 965,529 1,118,907 1,280,633 1,461,217 1,548,385 1,608,231 1,588,854 1,621,311 1,672,475 1,728,498 Service Stations 419,497 430,322 418,110 413,128 370,257 338,762 360,830 432,991 434,162 327,119 Other Retail Stores 517,583 535,945 550,157 595,305 633,089 692,375 677,850 666,659 636,043 609,428 All Other Outlets 1,072,513 1,008,206 1,154,492 1,312,607 1,461,982 1,474,160 1,481,019 1,700,733 1,701,236 1,995,760 Total 4,501,800$ 4,699,571$ 5,140,773$ 5,653,990$ 6,013,626$ 6,194,449$ 6,230,735$ 6,666,567$ 6,745,092$ 6,838,115$ Source: State of California Board of Equalization and the Hdl Companies.

Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

City of Riverside
Taxable Sales by Category
115
Table 8
Last Ten Fiscal Years (in thousands)
City Dissolved Redevelopment Agency 1
Fiscal
Year Taxable Taxable Total
Ended Less: Assessed Less: Assessed Direct
June 30 Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate2 2012 22,031,328 1,264,151 (6,952,649) 16,342,830 5,395,632 572,153 (270,313) 5,697,472 0.348 2013 22,313,665 1,244,448 (7,142,401) 16,415,712 N/A N/A N/A - 0.348 2014 23,045,134 1,201,634 (7,394,982) 16,851,786 N/A N/A N/A N/A 0.125 2015 24,482,621 1,329,391 (7,945,000) 17,867,012 N/A N/A N/A N/A 0.124 2016 25,710,122 1,225,375 (8,432,984) 18,502,513 N/A N/A N/A N/A 0.124 2017 26,927,989 1,311,356 (9,029,817) 19,209,528 N/A N/A N/A N/A 0.124 2018 28,373,517 1,354,934 (9,791,810) 19,936,641 N/A N/A N/A N/A 0.124 2019 30,196,815 1,420,597 (10,818,883) 20,798,529 N/A N/A N/A N/A 0.124 20203 31,856,912 1,466,408 (10,946,897) 22,376,423 N/A N/A N/A N/A 0.124 2021 33,717,485 1,482,535 (11,915,468) 23,284,552 N/A N/A N/A N/A 0.123 Notes:

In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Assessed valuations are based on 100 percent of estimated actual value. 1 In accordance with the timeline set forth in Assembly Bill 1X 26 (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. 2 Total Direct Rate is the weighted average of all individual direct rates. Beginning in 2013/14, the Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
3Total Taxable Assessed Value for FY 2020 was recorded as an estimate and has been restated to the actual amount per information from the Riverside County Auditor-Controller.

Source: Riverside County Auditor-Controller
City of Riverside
Assessed Value and Estimated Actual Value of Taxable Property 116
Table 9
2011/12 2012/13 2013/14 2014/15 2015/16 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 Basic Levy1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Unified School Districts Debt Service2 0.332 0.325 0.390 0.377 0.487 0.495 0.517 0.521 0.535 0.529 City of Riverside Debt Service 0.006 0.006 0.007 0.006 0.006 0.006 0.006 0.006 0.005 0.005 Metropolitan Water District Original Area 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 Riverside City Community College Debt Service 0.017 0.017 0.018 0.018 0.017 0.016 0.016 0.015 0.015 0.015 Total Direct & Overlapping3 Tax Rates 1.358 1.352 1.418 1.405 1.514 1.521 1.543 1.545 1.559 1.553 City's Share of 1% Levy Per Prop 134 0.113 0.113 0.113 0.113 0.113 0.113 0.113 0.113 0.113 0.113 General Obligation Debt Rate 0.006 0.006 0.007 0.006 0.006 0.006 0.006 0.006 0.005 0.005 Redevelopment Rate5,7 1.004 - - - - - - - - - Total Direct Rate6 0.348 0.348 0.125 0.124 0.124 0.124 0.124 0.124 0.124 0.123 1 In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 2 Includes: Alvord Unified School District, Corona Norco Unified School District, Jurupa Unified School District, Moreno Valley Unified School District, and Riverside Unified School District. 3 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.
4 City's share of 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures. 5 RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. 6 Total Direct Rate is the weighted average of all individual direct rates. Beginning in 2013/14, the Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. 7 In accordance with the timeline set forth in Assembly Bill X1 26 (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

Note: Amounts presented in this table have been restated for prior years to reflect the most current information available.

Source: Riverside County Assessor 2011/12 - 2020/21 Tax Rate Table.

City of Riverside
Direct and Overlapping Property Tax Rates
(Rate per $100 of Assessed Valuation)
Last Ten Fiscal Years
117
Table 10
Current Year and Nine Years Ago (in thousands)
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Property Owner Value Rank Value Value Rank Value
Riverside Healthcare System 323,066 $ 1 1.0% 107,935 $ 3 0.5% Tyler Mall 228,344 2 0.7% 186,759 1 0.8% CPT Riverside Plaza LLC 165,601 3 0.5% 0.0% Rohr Inc 155,881 4 0.5% 86,512 5 0.4% La Sierra University 141,286 5 0.4% 126,273 2 0.6% Corona Pointe Resort LLC 125,826 6 0.4% 0.0% 490 Columbia 123,750 7 0.4% 0.0%
Smiths Food and Drug Centers Inc. 105,177 8 0.3% 0.0% 1001 Columbia Pt LLC 105,088 9 0.3% 0.0%
Charter Communication Entertainment II 94,829 10 0.3% 0.0% State Street Bank and Trust Co 0.0% 88,078 4 0.4% JSP Corona Pointe LLC 0.0% 74,739 7 0.3%
Press Enterprise Company 0.0% 76,314 6 0.3% Canyon Springs Marketplace Corporation 0.0% 67,991 9 0.3% BRE Properties, Inc. 0.0% 69,300 8 0.3%
Riverside Plaza 0.0% 67,343 10 0.3%
Totals 1,568,848 $ 4.7% 951,244 $ 4.3%
Notes:

The amounts shown above include assessed value data for both the City and the Successor Agency.

Source: Riverside County Assessor 2020/21 and 2011/12 Combined Tax Rolls 2021 2012
City of Riverside
Principal Property Taxpayers
118
Table 11
Last Ten Fiscal Years (in thousands)
Fiscal Year Taxes
Ended Levied for
June 30 Fiscal Yea r Amount Percentage of Levy Amount Percentage of Levy 2012 41,020 40,340 98.34% 680 41,020 100.00% 2013 43,333 42,447 97.96% 886 43,333 100.00% 2014 45,138 44,684 98.99% 454 45,138 100.00% 2015 48,846 48,427 99.14% 419 48,846 100.00% 2016 50,023 49,585 99.12% - 50,023 100.00% 2017 53,655 53,252 99.25% - 53,655 100.00% 2018 57,567 57,173 99.32% - 57,567 100.00% 2019 63,003 62,557 99.29% - 63,003 100.00% 2020 66,295 65,729 99.15% - 66,295 100.00% 2021 68,363 67,968 99.42% - 67,968 99.42% Note:

The table reflects amounts related to the City. In addition, it includes amounts related to the Redevelopment Agency through dissolution (1/31/12). The amounts collected by the Redevelopment Agency include monies that were passed-though to other agencies. Current tax levies are the original charge as provided by the County of Riverside. Current tax collections do not include supplemental taxes, aircraft taxes or other property taxes.

The City adopted the Teeter plan available with the County of Riverside effective Fiscal year 2014. Under the Teeter plan the County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100% of the levy.

Source: Riverside County Auditor-Controller and City Finance Department Collected within the
Fiscal Year of the Levy
Total Collections To Date
City of Riverside
Property Tax Levies and Collections
Collections
in
Subsequent
Years
119
Table 12
Last Ten Fiscal Years (in millions of kilowatt-hours)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Type of Customer:

Residential 688 726 700 711 726 730 727 722 723 784 Commercial 413 419 421 428 438 448 447 434 417 405 Industrial 969 1,003 997 995 983 996 999 973 956 916 Wholesale sales 2 14 4 2 0 ¹ 1 0 ¹ 0 ¹ 1 0 ¹ Other 31 31 30 31 23 23 22 21 18 18 Total 2,103 2,193 2,152 2,167 2,170 2,198 2,195 2,150 2,115 2,123 Total direct rate
Monthly Base Rate * 18.06 18.06 18.06 18.06 18.06 18.06 18.06 19.41 20.63 20.63 * Monthly Base Rate includes a Reliability Charge of $5.00 (small residence 100 amp) implemented in January 2008.

In January 2010, the Reliability Charge increased to $10.00 (small residence 100 amp).

In January 2019, the Minimum Customer Charge increased to $8.86, a Network Access Charge of $0.55 was included and the tier 1 rate inc In January 2020, the Minimum Customer Charge increased to $9.66, a Network Access Charge of $0.97 was included and the tier 1 rate inc Source: Riverside Public Utilities, Finance Services
City of Riverside
Electricity Sold by Type of Customer
1 For FY 15/16 and FY 17/18 wholesale MWH was less than 1 MWH. 120
Table 13
City of Riverside
Electricity Rates
Last Ten Fiscal Years
(Average Rate in Dollars per Kilowatt-Hour)
Fiscal
Year Ended
June 30
Residential Commercial Industrial Other
2012 0.16068 0.15991 0.11088 0.17938
2013 0.16274 0.15913 0.11030 0.18375
2014 0.15995 0.15936 0.11156 0.18513
2015 0.16050 0.16022 0.11282 0.18291
2016 0.16119 * 0.15915 * 0.11577 * 0.20908 * 2017 0.16116 * 0.15958 * 0.11586 * 0.21287 * 2018 0.15910 * 0.15902 * 0.11524 * 0.21288 * 2019 0.16111 * 0.16086 * 0.11724 * 0.23448 * 2020 0.16774 * 0.16546 * 0.12105 * 0.26480 * 2021 0.17032 * 0.17024 * 0.12582 * 0.26659 * * Rate calculations were taken from the Sales Stats not the financial statements.

Does not include Public Benefits Charge
Source: Riverside Public Utilities, Finance Services
121
Table 14
City of Riverside
Top 10 Electricity Customers
Current Year and Nine Years Ago
Percent of Percent of
Electricity Total Electric Electricity Total Electric
Electricity Customer Charges Rank Revenues Charges Rank Revenues Local University $11,301,433 1 3.51% $10,005,990 1 3.46% Local Government 8,281,850 2 2.57% 7,880,131 2 2.72% Local Government 7,418,764 3 2.30% 7,343,622 3 2.54% Corporation 4,205,156 4 1.30% 0.00%
Corporation 4,160,466 5 1.29% 0.00%
Local School District 4,122,735 6 1.28% 4,014,894 4 1.39% Corporation 3,858,672 7 1.20% 3,951,734 5 1.36% Corporation 3,429,752 8 1.06% 2,833,591 6 0.98% Hospital 3,297,953 9 1.02% 2,410,157 7 0.83% Local University 2,873,962 10 0.89% 0.00%
Local School Disrict - 2,051,858 8 0.71% Corporation - 1,963,047 9 0.68% Shopping Mall - 1,942,657 10 0.67% $52,950,743 16.42% $44,397,681 15.34%
Retail Sales Per Financial Statements * $322,406,917 289,587,035$ Source: Riverside Public Utilities, Finance Services
* Financial Report - Riverside Public Utilities
2021 2012
122
Table 15
Last Ten Fiscal Years (in thousands)
General Lease Pension Certificates
Fiscal Obligation Revenu e Obligation of Capital Notes/Loans Year Bonds Bonds Bonds 2 Participation Leases Payable
2012 16,107 - 127,480 202,703 5,220 4,000 2013 15,314 43,762 122,005 158,697 8,424 28,652 2014 14,460 42,344 115,775 191,446 13,168 47,611 2015 13,546 40,891 108,725 187,212 14,966 45,574 2016 12,567 39,398 101,000 181,429 12,006 43,482 2017 11,513 37,854 92,592 156,516 17,193 41,325 2018 10,388 36,246 60,883 150,800 25,647 1,746 2019 9,179 80,416 50,486 99,178 21,422 1,329 2020 7,874 75,964 364,633 94,802 18,207 899 2021 6,478 72,471 352,824 90,215 14,922 457 Pension Certificates Lease Total Percentage Debt
Fiscal Revenu e Notes/Loans Capital Obligation of Revenue Primary of Personal Pe r Year Bonds Payable Leases Bonds 2 Participation3 Bonds4 Government Income 1 Capita1 2012 1,063,853 73,821 1,332 - - - 1,494,516 21.94% 4.84 2013 1,031,839 70,798 2,558 - - - 1,482,049 21.41% 4.75 2014 1,094,290 36,030 2,266 - - - 1,557,390 22.54% 4.96 2015 1,239,634 37,225 1,720 - - - 1,689,493 24.64% 5.38 2016 1,208,851 37,793 4,694 - - - 1,641,220 23.60% 5.05 2017 1,180,345 35,255 6,209 - - - 1,578,802 22.11% 4.83 2018 1,139,864 78,583 6,821 18,324 - - 1,529,302 20.81% 4.69 2019 1,241,743 73,673 5,192 14,775 29,692 7,867 1,634,952 21.30% 4.98 2020 1,212,914 69,519 3,633 119,625 28,483 7,473 2,004,026 24.73% 6.11 2021 1,176,605 64,678 2,354 116,227 27,213 7,059 1,931,503 22.73% 5.96 1 These ratios are calculated using personal income and population data for the prior calendar year. 2 The 2005 and 2017 Taxable Pension Obligation Bonds were divided between Governmental Activities, Business-Type Activities, and the Successor Agency. 3 The 2008 Certificates of Participation were divided between Governamental Activities and Business-Type Activities. 4 The 2012 Lease Revenue Refunding Bonds were divided between Governamental Activities, Business-Type Activities and the Successor Agency.

Source: City of Riverside Notes to Financial Statements and Statistical Table 20.

City of Riverside
Ratios of Outstanding Debt by Type
Business-Type Activities
Governmental Activities
123
Table 16
Last Ten Fiscal Years (in thousands, except per capita amount) General Certificates Total Less: Amounts Ne t Percent of Fiscal Obligation Pension of Obligated Debt available in Debt Obligated Debt Assessed Per Year Bonds Bonds Participation Outstanding Service Fund Outstanding Value 1 Capita2 2012 16,107 127,480 202,703 346,290 (31,072) 315,218 1.93% 1,022 2013 15,314 122,005 158,697 296,016 (27,676) 268,340 1.63% 860 2014 14,460 115,775 191,446 321,681 (27,996) 293,685 1.74% 935 2015 13,546 108,725 187,212 309,483 (9,295) 300,188 1.68% 955 2016 12,567 101,000 181,429 294,996 (27,997) 266,999 1.44% 822 2017 11,513 92,592 156,516 260,621 (8,339) 252,282 1.31% 772 2018 10,388 60,883 150,800 222,071 (13,546) 208,525 1.65% 640 2019 9,179 50,486 99,178 158,843 (9,051) 149,792 0.72% 457 2020 7,874 364,633 94,802 467,309 (11,210) 456,099 2.04% 1,390 2021 6,478 352,824 90,215 449,517 (11,292) 438,225 1.88% 1,351 Notes:

General bonded debt is debt payable with governmental fund and enterprise fund resources. 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2 These ratios are calculated using population data for the prior calendar year.

City of Riverside
Ratios of General Bonded Debt Outstanding
Source: City of Riverside Notes to Financial Statements, Statistical Table 8, Statistical Table 15, and Reserve Cash Reconciliation maintained by City Finance Department.
124
Table 17
As of June 30, 2021 Page 1 of 2
2020-21 Assessed Valuation: 33,295,582,720$
Less Dissolved Redevelopment Agency Incremental Valuation: 10,011,030,568 Adjusted Assessed Valuation: 23,284,552,152$
City's Share
Total Debt % Applicable of Debt1
Overlapping debt repaid with property taxes2
Metropolitan Water District 26,830,000$ 1.028 % 275,812$ Riverside County Flood Control and Water Conservation District Zone No. 4 10,260,000 1.903 195,248 Riverside City Community College District 351,058,024 27.880 97,874,977 Alvord Unified School District 205,386,226 72.017 14,912,998 Riverside Unified School District 341,910,000 84.586 289,207,993 Corona-Norco Unified School District 513,748,462 0.001 5,137 Jurupa Unified School District 178,602,972 0.001 1,786 Moreno Valley Unified School District 216,638,521 10.261 22,229,279 Alvord Unified School District Community District No.2006-1 6,520,000 73.302 4,779,290 Riverside Unified School District Community Facilities Districts 65,035,000 88.076-100 64,926,492 City of Riverside Community Facilities Districts 21,145,000 100 21,145,000 City of Riverside 1915 Act Bonds 17,820,000 100 17,820,000 Total overlapping debt repaid with property taxes 533,374,012$ (continued)
City of Riverside
Direct and Overlapping Governmental Activities Debt
125
Table 17
As of June 30, 2021 Page 2 of 2
Other overlapping debt2
Riverside County General Fund Obligations 717,525,698$ 10.715 % 76,882,879$ Riverside County Pension Obligations 881,575,000 10.715 94,460,761 Corona-Norco Unified School District General Fund Obligations 23,728,566 0.001 237 Jurupa Unified School District Certificates of Participation 53,254,440 0.001 533 Moreno Valley Unified School District Certificates of Participation 7,030,000 10.261 721,348 Riverside Unified School District General Fund Obligations 13,232,291 84.586 11,192,666 Western Municipal Water District General Fund Obligations 6,815,211 32.367 22,205,879 Total other overlapping debt 205,464,303
Overlapping tax Increment debt 187,771,228
Total overlapping debt 926,609,543
City direct debt 537,367,000 (3)
Combined total direct and overlapping debt 1,463,976,543$ (1) Debt balances are as of June 30, 2021.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, non-bonded capital lease obligations.

Qualified Zone Academy bonds are included based on principal due at maturity. (3) Excludes debt related to Business Type Activities.

Ratios to 2020-21 Assessed Valuation:

Total debt repaid with property taxes…………………….……..... 1.60% City direct debt ($717,964,000)………...…………..………...…. 1.61% Combined total direct and overlapping debt…………………….... 4.40% Ratios to Dissolved Redevelopment Incremental Valuation ($10,011,030,568):

Total overlapping tax Increment debt…………………………….. 1.88% Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

Source: California Municipal Statistics, Inc., Riverside County Auditor-Controller, City Finance Department and Statistical Table 8.

City of Riverside
Direct and Overlapping Governmental Activities Debt
126
Table 18
Last Ten Fiscal Years (in thousands) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Assessed valuation 16,342,830 $ 16,415,712 $ 16,851,786 $ 17,867,012 $ 18,502,513 $ 19,209,528 $ 19,936,641 $ 20,798,529 $ 22,376,423 $ 23,284,552 $ Conversion percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation 4,085,708 4,103,928 4,212,947 4,466,753 4,625,628 4,802,382 4,984,160 5,199,632 5,594,106 5,821,138 Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit 612,856 615,589 631,942 670,013 693,844 720,357 747,624 779,945 839,116 873,171 Total net debt applicable to limit: 16,107 15,314 14,460 13,546 12,567 11,513 10,388 9,179 7,874 6,478 Le
gal debt margin 596,749 600,275 617,482 656,46 7 681,277 708,844 737,236 770,766 831,242 866,69 3

2.6% 2.5% 2.3% 2.0% 1.8% 1.6% 1.4% 1.2% 0.9% 0.7%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect a the time that the legal debt margin was enacted by the State of California for local governments located within the State.

Source: City of Riverside, Statistical Table 8, Statistical Table 15 and Notes to Financial Statements.

Total net debt applicable to the limit
as a percentage of debt limit
City of Riverside
Legal Debt Margin Information
127
Table 19
Business Type Activity Debt
Last Ten Fiscal Years (in thousands)
Less: Net Less: Net
Fiscal Pledged Operating Available Pledged Operating Available Year Revenue 1 Expenses1 Revenue Principal Interest Coverage Revenue 1 Expenses1 Revenue Principal Interest Coverage 2012 340,098 221,876 118,222 25,174 27,630 2.24 73,557 35,309 38,248 4,708 8,872 2.82 2013 348,187 226,997 121,190 18,486 25,941 2.73 72,700 35,940 36,760 5,395 8,700 2.61 2014 347,541 241,136 106,405 21,632 27,575 2.16 71,317 37,698 33,619 4,574 8,536 2.56 2015 348,244 250,578 * 97,666 15,485 26,532 2.32 66,010 36,725 * 29,285 5,258 8,342 2.15 2016 371,029 249,607 * 121,422 16,460 25,780 2.87 60,047 35,608 * 24,439 5,533 8,063 1.80 2017 368,956 251,998 * 116,958 14,032 25,553 2.95 65,689 37,956 * 27,733 5,486 8,124 2.04 2018 368,116 257,785 * 110,331 15,675 25,045 2.71 71,054 40,737 * 30,317 6,098 8,049 2.14 2019 374,510 279,394 * 95,116 16,449 26,017 2.24 69,965 44,547 * 25,418 6,362 8,780 1.68 2020 378,391 277,064 * 101,327 11,641 26,992 2.62 74,343 45,825 28,518 6,139 9,671 1.80 2021 373,663 284,293 89,370 17,364 27,559 1.99 83,510 45,896 37,614 7,007 9,685 2.25 Less: Net
Fiscal Pledged Operating Available
Year Revenue 1 Expenses1 Revenue Principal Interest Coverage 2012 42,562 29,632 12,930 692 5,471 12.48 2013 52,944 29,999 22,945 7,465 10,891 1.25 2014 52,098 28,930 23,168 7,753 10,781 1.25 2015 51,288 27,598 23,690 8,056 10,958 1.25 2016 68,412 31,864 36,548 8,405 20,786 1.25 2017 78,337 29,921 48,416 9,010 19,621 1.69 2018 68,735 31,513 37,222 9,184 19,136 1.31 2019 71,787 34,084 37,703 14,766 14,455 1.29 2020 70,365 33,704 36,661 8,634 18,434 1.35 2021 66,421 31,431 34,990 9,599 17,032 1.31 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 Amounts have been calculated in accordance with the provisions set forth in the debt covenants. Total operating expenses exclusive of depreciation.

Pledged revenue includes applicable cash set aside in a rate stabilization account in accordance with applicable bond covenants. * Excludes non-cash pension expense
The City of Riverside does not have any pledged revenue related to Govermental Activities.

Sewer Revenue Bonds
Debt Service
City of Riverside
Pledged-Revenue Coverage
Water Revenue Bonds
Debt Service
Electric Revenue Bonds
Debt Service
128
Table 20
Per
Personal Capita
Calendar Income 2 Personal Unemployment
Year Population 1 (in thousands) Income 2 Rate 3
2011 308,511 6,811,923 22,080 13.7
2012 311,955 6,923,217 22,193 9.7
2013 314,034 6,909,376 22,002 8.4
2014 314,221 6,857,559 21,824 7.9
2015 324,696 6,953,323 21,414 6.4
2016 326,792 7,139,080 21,845 5.8
2017 325,860 7,349,024 22,552 5.1
2018 328,101 7,674,374 23,390 3.8
2019 328,155 8,102,150 24,690 3.6
2020 324,302 8,496,064 26,198 9.0
Sources:
1 California State Department of Finance.
2 Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries. Demographic Estimates for 2010 and later are per the US Cenus Bureau, most recent American Community Survey. 3 State of California Empolyment Development Department.

City of Riverside
Demographic and Economic Statistics
Last Ten Calendar Years
129
Table 21
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment County of Riverside 22,000 1 17.5% 11,187 1 7.8% University of California 8,735 2 6.9% 5,554 2 3.9% March Air Force Reserve 7,000 3 5.6% Kaiser 4,346 4 3.5% 4,500 4 3.1% Riverside Unified School District 4,313 5 3.4% 5,580 3 3.9% City of Riverside 2,485 6 2.0% 2,693 5 1.9% Riverside Community Hospital 2,200 7 1.8% 1,880 6 1.3% Riverside Community College District 2,100 8 1.7% 2,087 7 1.4% Alvord Unified School District 1,898 9 1.5% 1,654 9 1.1% California Baptist University 1,442 10 1.1% Parkview Community Hospital 1,350 10 0.9%
Riverside County Office of Education 1,627 8 1.1% Total 56,519 45.0% 38,112 26.4%
Source: City of Riverside, Economic Development Department * Data is not currently available for the fiscal year ended June 30, 2021 due to the disruption caused by the Coronavirus (COVID-19) pandemic. 2019 * 2012
City of Riverside
Principal Employers
Current Year and Nine Years Ago
130
Table 22
2012 2013 2014 1 2015 2016 2017 2018 2019 2020 2021
Function
General government 440.40 413.90 356.25 361.25 394.24 417.55 430.05 453.80 458.30 460.30 Public safety (sworn and non-sworn personnel)
Police 599.93 596.75 551.75 553.75 554.75 512.00 543.00 557.00 571.00 585.00 Fire 255.46 255.46 255.00 255.00 251.00 239.00 242.00 245.00 248.00 251.00 Highways and streets 357.11 362.11 333.48 308.00 308.00 272.00 273.00 271.00 271.00 270.00 Sanitation 56.00 57.00 59.00 57.00 59.00 59.00 59.00 59.00 59.00 62.00 Culture and recreation 341.22 351.48 269.98 274.45 286.75 276.23 276.98 276.07 284.07 283.60 Airport 9.50 9.50 6.00 6.00 6.00 7.00 7.00 7.00 7.00 7.00 Water 181.15 181.15 182.15 181.15 181.15 174.15 158.65 158.65 158.65 164.50 Electric 452.50 459.50 462.50 464.50 466.50 471.75 489.25 475.25 475.25 466.25 Total 2,693.27
2,686.85 2,476.11 2,461.10 2,507.39 2,428.68 2,478.93 2,502.77 2,532.27 2,549.65 1 In fiscal year 2013/14 the City Council deleted a number of long-term unfunded positions.

Source: City of Riverside, Finance Department, FY 2020/21 Budget Master Personnel Detail City of Riverside
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
131
Table 23
City of Riverside
Operating Indicators by Function
Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police
Arrests 7,736 8,362 9,321 10,310 9,242 8,358 8,423 8,295 7,738 8,089 Fire
Number of calls answered 27,637 29,988 30,668 32,943 35,905 36,150 38,501 37,739 37,999 31,918 Inspections 10,074 10,151 12,476 8,770 6,636 6,482 6,519 5,584 7,987 7,175 Public works:

Street resurfacing (miles) 18.43 16.50 35.38 38.75 39.01 27.09 17.37 16.50 18.80 7.30 Parks and recreation
Number of recreation classes 43,318 41,364 45,707 43,007 53,907 53,308 54,025 54,069 34,366 525 1 Number of facility rentals 43,288 43,358 46,432 44,363 47,772 48,097 46,904 66,846 45,741 3241 Water
Number of accounts 64,367 64,591 64,829 65,102 65,094 65,428 65,640 65,803 66,031 66,198 Annual consumption (ccf) 27,062,142 28,186,178 28,887,304 26,007,490 22,529,463 25,340,729 27,514,374 25,827,721 25,526,021 28,625,382 Electric
Number of accounts 107,321 107,525 108,358 108,388 108,776 109,274 109,619 110,480 111,161 111,711 Annual consumption (millions of kwh) 2,103 2,193 2,152 2,167 2,170 2,197 2,195 2,150 2,115 2,122 Sewer:

New connections 18,166 17,607 17,274 17,553 17,669 17,654 17,551 17,540 17,593 17,602 Average daily sewage treatment 29.84 29.57 28.49 27.15 26.35 27.19 26.16 26.86 25.22 25.30 (millions of gallons)
1 Reduction is due to the effects of the COVID 19 pandemic.

Source: City of Riverside, various departments
132
Table 24
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Public Safety
Police
Stations 333333 3334
Substations 444445 4541
Helicopters 443333 2222
Airplane 000000 1111
Fire
Stations 14 14 14 14 14 14 14 14 14 14
Active apparatus 27 28 28 31 33 32 33 55 32 32
Reserve apparatus 9 11 11 8999 1 3 9 1 0
Training facilities 111111 1111
Highways and streets
Streets (miles) 868.70 868.89 871.19 872.16 872.22 872.01 872.24 872.10 872.35 891.28 Streetlights 29,933 29,949 29,968 29,986 30,427 30,467 30,479 30,445 30,489 30,489 Signalized intersections 365 365 367 386 381 382 384 392 397 408 Culture and recreation
Parks acreage 2,811.00 2,891.00 2,911.80 2,926.80 2,983.00 2,983.00 2,988.00 2,988.00 2,988.00 2,988.00 Community centers 11 11 11 11 11 11 11 11 11 12
Playgrounds 41 43 44 44 46 46 46 46 46 46
Swimming pools 777777 7777
Softball & baseball diamonds 44 44 44 44 44 44 44 44 44 44 Library branches 888888 8888
Museum exhibit-fixed 533455 0
1 11 01 0
Museum exhibit-special 1 4 4 5 6 6 11 41 31 1 Water
Fire hydrants 7,682 7,726 7,754 7,758 7,908 7,952 8,173 8,192 9,304 8,012 Sewer
Sanitary sewers (miles) 829 829 829 820 829 827 820 820 820 820 Electric
Miles of overhead distribution system 515.0 513.0 513.0 513.0 513.0 513.0 514.0 514.0 513.0 513.0 Miles of underground system 804.0 810.0 814.0 815.0 817.0 826.0 831.0 834.0 838.0 838.0 1 The decrease in total numbers of Museum's exhibits is due to the closure of the Riverside Metropolitan Museum for expansion and renovation.

Source: City of Riverside, various departments
Fiscal Year
City of Riverside
Capital Asset Statistics by Function
Last Ten Fiscal Years
133

Riverside City CouncilJanuary 18, 2022

Riverside City Council
January 18, 2022