2023 PAFR — Financial Performance and Budget Committee, January 10, 2024

000
City of Riverside, City Hall
3900 Main Street
Riverside, CA 92522
ExploreRiverside.com
City of Arts & Innovation

POPULAR ANNUAL

FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
Riverside, California

It is important to note, this PAFR is unaudited and is presented on a non-GAAP basis*. This means that the presentation of financial data in this report differs from the GAAP basis presentation in the City’s ACFR. The differences are as follows: the use of prescribed accounting methods and financial statement formats; the presentation of segregated funds; and the disclosure of all material financial and non-financial matters in notes to the financial statements.

We hope that you find this report helpful and encourage you to access the City’s website (www.RiversideCA.gov/Finance) or contact the Finance Department at (951) 826- 5660 for more detailed information about the City’s finances.

Sincerely,

Kristie Thomas
Financial Director/Assistant Chief Financial Officer

Dear Reader,
The City of Riverside is pleased to present our Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2023. Our PAFR provides an overview of the City’s financial position in a manner that is easy to understand. The information in this report is based on the audited results presented in the City’s Annual Comprehensive Financial Report (ACFR). This report also includes information about the City’s economic outlook and organizational outstanding debt structure. * Generally Accepted Accounting Principles (GAAP) is a combination of authoritative standards and the commonly accepted way of recording and reporting accounting information. To review the audited GAAP-based, full disclosure financial statements, please refer to the City’s ACFR, which is available on the City’s website at www.RiversideCA.gov/Finance/

IN THIS REPORT
ABOUT THE CITY AND ITS LEADERSHIP ............................................................................................. 2 CITY DEMOGRAPHICS AND KEY STATISTICS ..................................................................................... 3 WHAT’S NEW: FINANCIAL HIGHLIGHTS ............................................................................................ 4 THE CITY’S FINANCIAL POSITION ...................................................................................................... 5 THE CITY’S ASSETS AND INVESTMENTS ............................................................................................. 6 WHAT THE CITY OWES ....................................................................................................................... 7 STATEMENT OF ACTIVITIES ................................................................................................................ 8 CITY VISION, ACTIVITIES, AND SPENDING ....................................................................................... 9 GOVERNMENTAL ACTIVITY: FINANCIAL HIGHLIGHTS .................................................................. 10 MEASURE Z REVENUE AND SPENDING ........................................................................................... 11 BUSINESS-TYPE ACTIVITIES: FINANCIAL HIGHLIGHTS .................................................................... 12 GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) PAFR AWARD ................................. 14

1 14
Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Report to the City of Riverside for its Popular Annual Financial Report for the fiscal year ended June 30, 2017 through 2021. The Award for Outstanding achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports.

In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal.

An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. There has been a delay in the review of our Popular Annual Financial Report for the fiscal year ended June 30, 2022. We believe this report conformed to GFOA standards and the City of Riverside will receive its sixth award. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements. We are submitting it to GFOA to determine its eligibility for another Award.

GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) PAFR AWARD AWARD
REVIEW

PENDING

BUSINESS-TYPE ACTIVITIES: FINANCIAL HIGHLIGHTS (CONTINUED) 13 ABOUT THE CITY AND ITS LEADERSHIP

2 The City of Riverside, incorporated on October
11, 1883, is in the western portion of Riverside
County, about 60 mile east of Los Angeles. The
City currently occupies a land area of 81.5
square miles.

The City is a part of Inland Southern California,
which consists of Riverside and San Bernardino
Counties (the “MSA”). The population of Inland
Southern California, at approximately 4.6
million, is larger than 26 states. The population
of the City is 313,676 which places it as the 12th
largest in California.
12th
largest city in
California
59th
largest
incorporated
city in the United
States by population
The City of Riverside operates under the council-manager form of government. Under this organizational structure, the City Council appoints a City Manager to act as the Chief Operating Officer. The City Council sets policy direction and the City Manager implements those policies. The Mayor is elected at-large, while Council members are elected by voters in each of seven separate wards. The Mayor shall be the presiding officer at all meetings of the City Council and shall have a voice in all its proceedings but shall not vote except to break a City Council tie-vote. The Mayor shall be the official head of the City for all ceremonial purposes.

SEWER FUND
Water
Sewer
23,667,466
annual water
consumption (CCF*)
17,575
New Connections

26.98 Average Daily
Sewage Treatment
(Millions of gallons)
The Water Fund accounts for the activities of the City’s water distribution operations and the Sewer Fund accounts for the activities of the City’s sewer systems. To give an overview of the overall financial health of each fund, a five-year history of the fund balance is below. The total includes non-spendable assets and funds that are restricted for specific purposes. Fund balance does not reflect funds available for new water and sewer operations spending.

FUND BALANCE – WATER AND SEWER FUNDS
In thousands of dollars

$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23

CITY KEY STATISTICS
Average Household
Size: 3.12*
Unemployment Rate: 4.5%
Source: September 2023 Labor Force Data
California Employment Development
Department
Median Age: 33.9*
Average Household
Income: $101,167*
2022 Estimated Population
313,676
Source: California Department of Finance

34.1% of the Population
25 years & over
have a college degree*
(Associates, Bachelor’s, Graduate/Professional)
EXPENSES: BUSINESS-TYPE ACTIVITIES
The business-type activities of the City include Electric, Water, Sewer, Civic Entertainment and Others (Refuse, Public Parking, Airport, and Transportation services).

(In thousands of dollars)

3,010.5
Acres of Parks
8 Library Branches
FY 2018-19
FY 2019-20
FY 2020-21
FY 2021-22
FY 2022-23
$330,000
$340,000
$350,000
$360,000
$370,000
$380,000
$390,000
$400,000
$410,000
$420,000

CHARGES FOR SERVICE - ELECTRIC
In thousands of dollars
Fire
Public Works
Police
Culture &
Recreation
4 Police Stations &
1 Police Substations
626 Police Personnel
(Sworn & Non-Sworn)

CITY DEMOGRAPHICS AND KEY STATISTICS
14 Fire Stations
1 Training Facility
252 Fire Personnel
45,073 Calls Answered
BUSINESS-TYPE ACTIVITIES: FINANCIAL HIGHLIGHTS
3 12

CITY DEMOGRAPHICS

$605,000
Median Sale Price in Riverside
Source: Redfin calculations of home data from
MLS and/or public records September 2023

* Source: United States Census Bureau, 2022 American Community Survey 1-Year Estimates – Most recent data available at time of publication Hispanic or Latino
(of any race)*

55.4%
White*

27.3%
Asian*

8.2% Black*

5.4%
Mixed or
Other
Race*

3.7%
893.28
Streets (miles)
2023 SPENDING – BUSINESS-TYPE ACTIVITIES

Electric is the largest business -type function
in the City with $ 401 million in spending
during Fiscal Year 2022-23. Water and Sewer
business activities have the next largest level
of spending with more than $ 143.7 million
during the fiscal year ($76.5 million and $67.2
million, respectively).

Electric
$401,427

64.9%
Water
$76,475

12.4% Sewer
$67,195

10.9% Refuse
$32,777

5.3%
Civic
Entertainment
$27,698

4.5%
Others
$12,686

2.0%
14 Community
Centers
43 Playgrounds &
44 Softball/Baseball
Diamonds

14.6 Street Resurfacing
(miles)
30,745
Streetlights
The Electric Fund accounts for the activities of the City’s electric distribution operations. To give an overview of the overall financial health of the fund, a five -year history of the fund balance is below.

The total includes non -spendable assets and funds that are restricted for specific purposes. Fund balance does not reflect funds available for new electric distribution operations spending.

FUND BALANCE – ELECTRIC FUND
In thousands of dollars

ELECTRIC FUND
112,751 Active Electric
Meters - includes Residential,
Commercial, and Industrial
2,175 annual
consumption
(millions of kwh)
473.0 employee
positions approved to
provide Electric – related
services
FY 2020-21
$497,373
FY 2021-22
$505,563 FY 2022-23
$503,352
FY 2019-20
$514,885 FY 2018-19
$510,732

FY 2018-19
$928,034
FY 2019-20
$933,925
FY 2020-21
$986,646
FY 2021-22
$1,051,974
FY 2022-23
$1,138,001
FY 2018-19
$886,921
FY 2019-20
$930,318
FY 2020-21
$966,751
FY 2021-22
$880,131
FY 2022-23
$1,012,309
Revenue Expenses
Overall, the City as a whole has seen revenue
increasing and expenses trending upward. For the
year ended June 30, 2023 , revenue exceeded
expenses by nearly $ 125.7 million. The positive
increase in unrestricted net position is primarily the
result of the increases in sales tax, property tax,
investment income, and miscellaneous one -time
revenue.

FIVE-YEAR REVENUES VS EXPENSES – CITYWIDE
In thousands of dollars

WHAT’S NEW: FINANCIAL HIGHLIGHTS MEASURE Z REVENUE AND SPENDING 11 4
Long-Term Financial Planning
On June 2 1, 202 2, the City Council adopted
the City’s 2022- 2024 Biennial Budget . The
budget for Fiscal Year 2023- 24 was
subsequently amended and re- adopted on
June 27, 2023, and is comprised of $1.38 billion
in funding for citywide operations, including
$140.5 million for capital projects. The Biennial
Budget embrace s the concepts of Priority
Based Budgeting (PBB) that align City
resources with the strategic priorities outlined in
the Envision Riverside Strategic Plan 2025.
*excludes Measure Z spending
$360.4 Million
General Fund
2022-23 Budget
Final Budget*
$327.1 Million
General Fund
2023-24 Budget
Adopted Budget*
1 Priority Based Budgeting Strategy
implementation process progressing

2,626.65 Full-Time Equivalent
City Employees providing services to
our community
1 General Fund Reserve aspiration
goal of 20% of expenditures
reaffirmed by City Council and met
($65.5 million)
In May 2017, the City began receiving revenue for the Measure Z additional one-cent sales and use tax authorized by voters during the November 2016 election. In Fiscal Year 2022-23, the City received $82.9 million in Measure Z revenue. Unspent revenue will be used for approved purposes in future fiscal years.

American Rescue Plan Act (ARPA)
On March 11, 2021, President Biden passed the $1.9 trillion American Rescue Plan Act (ARPA). The ARPA established the Coronavirus State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund, which aid eligible state, local, territorial, and Tribal governments to assist in the recovery from economic and health impacts of the COVID-19 pandemic.

The City received one-time funding of approximately $73.5 million from ARPA with the first installment of $36.7 million received in June 2021 and $36.8 million received in June 2022. The City may use the funds to best support the needs of the community providing the use of the funds aligns with statutory categories.

On November 9, 2021, the City Council approved the ARPA spending plan for the first allocation in the amount of $36.7 million. On February 7, 2023, the City Council approved the ARPA spending plan for the second allocation in the amount of $36.8 million.

For more information about the City’s plan for ARPA spending, please visit:
https://www.riversideca.gov/citymanager/arpa
$36.8 million American Rescue Plan
Act spending plan (second allocation)
approved by City Council

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

MEASURE Z
In thousands of dollars
Measure Z - Revenue
Taxes $84,016
Rental and Investment Income (1,105)
Miscellaneous 10
Total Revenue $82,921

Measure Z - Expenditures
Current:

General Government 3,548
Public Safety 24,631
Highways and Streets 1,593
Culture and Recreation 451
Capital Outlay and Debt Service 12,755
Total Expenditures $42,978
Excess of Revenues Over Expenditures $39,943

Measure Z - Other Financing Sources (Uses)
Transfers out (36,406)
Transfers out to General Fund* (18,266)
Issuance of debt related to leases and subscriptions 337 Total Other Financing Sources (Uses) ($54,335)
INCREASE IN MEASURE Z BALANCE ($14,392)
Measure Z -Net Position
Fund Balance, Beginning of Year 89,445
Add increase in fund balance (14,392)
FUND BALANCE, END OF YEAR $75,053

* Measure Z funds are within the General Fund. Per accounting standards, transfers within the same fund are not reflected in the Statement of Revenues, Expenditures and Changes in Fund Balances; however, General Fund transfers are reflected in this schedule for transparency purposes.

Functions of the City can be separated into two categories, those that are principally supported by taxes and intergovernmental revenues (governmental activities ) and those that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).

FIVE-YEAR REVENUE HISTORY – GOVERNMENTAL
In thousands of dollars

Sales and Use Tax – consumable tax placed on retail sales, leases or rentals of most goods, and any taxable services as mandated.

Property Tax – legally enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10.

Charges for Services – revenues that arise from charges to customers, applicants, or others who purchase, use, or directly benefit from the goods, services, or privileges provided, or are otherwise directly affected by the service.

Grants and Contributions (operating and capital) – revenues arising from mandatory and voluntary non-exchange transactions with other governments, organizations, or individuals that are restricted for use in a particular program.

Utility User’s Tax 6.5% usage tax on landline telephone, electricity, gas, water, and cable. The tax is collected by the utility company as part of its regular billing procedure and then remitted to the City.

Other consists of franchise tax, transient tax, intergovernmental (unrestricted), rental and investment income, and miscellaneous income, including one-time revenues.

$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Sales and Use
Tax
Property Tax Charges for
Services
Grants and
Contributions
Utility User's Tax Other
Millions
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23

THE CITY’S FINANCIAL POSITION GOVERNMENTAL ACTIVITY: FINANCIAL HIGHLIGHTS 5 10
The Statement of Net Position financial statement presents information about the City’s assets, liabilities, deferred outflows (e.g., prepaid items), and deferred inflows (e.g., advance collections) . The City’s net financial position is the balance of all assets and deferred outflows, less all liabilities and deferred inflows. Over time, increases or decreases in the City’s net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. For the fiscal year ended June 30, 2023, the City’s net position improved by $125.7 million.

STATEMENT OF NET POSITION – ALL FUNDS
In thousands of dollars
City Assets – What We Own 2022 2023
Current Assets consisting mainly of cash and amounts owed to the City $1,567,526 $1,490,111 Net Capital Assets consisting primarily of buildings, equipment, and vehicles 3,306,450 3,302,316 TOTAL CITY ASSETS $4,873,976 $4,792,427
Deferred Outflows of Resources, positive effect on Net Position 109,078 274,234 Total City Assets and Deferred Outflows $4,983,054 $5,066,661

City Liabilities – What We Owe 2022 2023
Current Liabilities consisting of all amounts the City owes $346,946 $312,601 Non-Current Liabilities consisting of long-term debt owed, including pension obligations 2,016,291 2,250,373
TOTAL CITY LIABILITIES $2,363,237 $2,562,974
Deferred Inflows of Resources, negative effect on Net Position 380,165 138,343 Total City Liabilities and Deferred Inflows $2,743,402 $2,701,317 CITY NET FINANCIAL POSITION $2,239,652 $2,365,344

GENERAL FUND
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 recorded in another fund. Fund balance highlights are below.

FUND BALANCE OVERVIEW – GENERAL FUND
Excludes Measure Z Activity
(In thousands of dollars)
FY 2022-223 Fund Balance
$178,324
Non-Spendable
(e.g., Deposits & Inventory)
$1,829
Committed (Fund use
determined by formal Council
or Board Approval)
$106,301
Restricted (Fund use
restricted for a specific
purpose)
$32,695
Assigned (Fund use intended
for a specific purpose)
$12,799
Unassigned
(Available for Use)
$24,700

SPENDING: GOVERNMENTAL ACTIVITIES
The City’s governmental activities include general government, public safety, highways and streets, and culture and recreation. These activities are principally supported by general revenue including taxes and investment income. The table below reflects a five- year history of spending for these activities.

FIVE-YEAR SPENDING HISTORY – GOVERNMENTAL
In thousands of dollars

Public Safety expenditures reflect the costs associated with providing police and fire services to residents and visitors.

Culture and Recreation expenditures enrich the quality of life in Riverside through recreational and cultural activities as well as support the educational and informational needs of the community.

Highways and Streets expenditures are related to the design, construction, maintenance, and operation of public facilities and infrastructure within the City.

General Government expenditures are for the administration offices, including the Mayor, City Council, City Manager, City Attorney, City Clerk, Community Development, Finance, Human Resources, General Services, and Innovation Technology.

Interest on Long-Term Debt and Fiscal Charges expenditures are for the interest expense and fiscal charges associated with debt financing.
$0
$50
$100
$150
$200
$250
$300
Public Safety Culture and
Recreation
Highways and
Streets
General
Government
Interest on Long-
Term Debt and
Fiscal Charges
Millions
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY2022-23

THE CITY’S ASSETS AND INVESTMENTS CITY VISION, ACTIVITIES, AND SPENDING 9 6
Improvements other
than Buildings
$1,304,303

39.6%
Infrastructure
$677,750

20.5%
Buildings
$553,682

16.8%
Land
$486,835

14.7%
Construction in
Progress
$182,872

5.5%
Machinery &
Equipment
$63,905

1.9%
Other Capital
Assets
$32,969

1.0%
$3,302,316
(In thousands of dollars)

CAPITAL ASSETS, NET OF DEPRECIATION AND AMORTIZATION

The City’s capital asset investment includes
land, buildings and improvements,
machinery and equipment, park facilities,
roads, highways, bridges , and other
capital assets (intangibles, lease, and
subscription assets).

Major capital improvements included
projects for road ( $30.3 million), storm
drains ($2.5 million), purchase of vehicles,
trailers, and heavy equipment ($3.7
million), water utility ( $16.3 million), and
electric utility capital improvements ($ 25.5
million).

INVESTMENT MANAGEMENT AND FUNDS ALLOCATION
The prioritized objective of the City’s investment program is to preserve principal, ensure sufficient liquidity, and generate a market rate of return. The City’s investments comply with California Government Code Section 53601 guidelines for permissible investment types and limits. In addition, all investments comply with the City Council’s adopted investment policy which mitigates the City’s risk.

The chart below reflects the types of investments held by the City or its Fiscal Agent as of June 30, 2023.

In thousands of dollars

US Treasury
Obligations
$307,141

27.8%
Medium Term
Corporate Notes
$207,454

18.8%
Joint Power
Authority Pools
$181,643

16.4%
Securities
$151,157

13.7% Federal
Agency
Obligations
$133,768

12.1%
Money Market
Funds
$81,509

7.4%
Other Investment
Types
$42,935

3.8%
INVESTMENT TYPE ● $ 1,105,607

Average Purchase Yield to Maturity
Yield to maturity is the total return of
investment anticipated on a bond if the
bond is held until it matures. This figure
is expressed as an annual rate. Based
on information prepared by the City’s
investment consultant at year -end, the
City’s average purchase
yield to
maturity increased significantly when
compared to the previous year.

1.23 %
June 2022

2.89 %
June 2023
To review more comprehensive information about the City’s funds in the audited GAAP -based, full disclosure financial statements, please refer to the City’s ACFR which is available on the City’s website at www.RiversideCA.gov/Finance/

The City of Riverside is committed to providing high quality municipal services to ensure a safe, inclusive, and livable community.

The City provides a full range of services which include general government, public safety, highway and street maintenance, economic development, culture and recreation, electric, water, airport, refuse, sewer, and senior citizen/handicap transportation.

The City issues bonds to support spending for construction, capital asset purchases, and improvements and unfunded pension liability.

Water, Electric, and Sewer
Revenue Bonds
$1,163.7 million
Issued to acquire, purchase, construct, or improve
major capital facilities. The revenue generated by
the facility or activity supporting the facility is
pledged as security for the repayment of debt.

Certificates of Participation
$105.2 million
Used as a lease-purchase financing mechanism for
public b
uildings such as the Convention Center.

Pension Obligation Bonds
$425.1 million
Used to pay some of the pension plan’s unfunded
pension liability.

The City’s net pension liability as of
June 30, 2023, was $297.1 million.*
Lease Revenue Bonds
$71.3 million
Used to finance public improvements such as City
Hall, Galleria at Tyler, Police Patrol Ce nte
r, and a
Main Library Project.

General Obligation Bonds
$3.4 million
Issued for the construction or acquisition of major
capital assets. The security pledge d
for the bonds
is the general taxing power of the government.

Net Pension Liability/(Asset)*
Miscellaneous vs
Safety Employees
The largest impact to the City’s long-
term financial stability relates to the
increase in pension costs from
CalPERS. In Fiscal Year 202 1-22, the
City had a net pension asset instead
of a liability . This means the present
value of pension assets was greater
than the projected pension
obligations.* In Fiscal Year 2022- 23,
the City returned to a net pension
liability primarily due to a negative
CalPERS investment return.

For more information about how the
City is handling the CalPERS
challenge, please visit:

Miscellaneous Safety
FY 2021-22 FY 2022-23
Governmental Business-Type
FY 2021-22 FY 2022-23
Net Pension Liability/(Asset) by
Fund Type
Governmental vs Business -Type
Activities
($88.7)
Million ($95.1)
Million
As of June 30, 2023, the City had outstanding long-term bonded debt totaling $1.77 billion. A five-year history of the long-term debt for governmental and business-type activities is below.

Long-Term Bond Debt Outstanding*
In thousands of dollars

https://riversideca.gov/citymanager/
calpers-challenge
*Based on Governmental Accounting Standards Board Pronouncement No. 68 Generally Accepted Accounting Principles reporting requirements which differs from the annual CalPERS actuarial report which contains information regarding the current financial status of the City’s retirement plans and employer funding requirements.

The Statement of Activities presents the City’s revenue and expenses in a format that reflects the financial burden for each of the City’s functions. All changes are reported as soon as the underlying event for the change occurs, regardless of the timing of the related cash flow.

For the fiscal year ended June 30, 2023, the City’s governmental and business-type activities resulted in an increase of net position totaling more than $125.7 million. The table below provides an overview of the effect of the City’s functions on its net financial position.

STATEMENT OF ACTIVITIES – ALL FUNDS
In thousands of dollars
Program Revenue 2022 2023
Charges for Services $639,546 $671,171
Operating Grants and Contributions 56,244 63,742
Capital Grants and Contributions 59,035 49,788
Total Program Revenue $754,825 $784,701

General Revenue and Net Transfers 2022 2023
Sales Tax $173,933 $177,722
Property Tax 79,790 84,751
Utility Users’ Tax 32,464 34,963
Franchise Tax 5,955 6,422
Transient Occupancy Tax 8,764 8,587
Intergovernmental, unrestricted 661 467
Rental and Investment Income (20,937)* 20,008
Miscellaneous and Transfers, net 16,519 20,380
Total General Revenue and Net Transfers $297,149 $353,300 TOTAL PROGRAM, GENERAL REVENUES, AND NET TRANSFERS $1,051,974 $1,138,001

Program Expenses 2022 2023
General Government $66,937 $34,258
Public Safety 169,742 239,744
Highways and Streets 41,125 50,588
Culture and Recreation 38,885 50,863
Interest on Long-Term Debt and Fiscal Charges 19,806 18,598 Electric 354,752 401,427
Water 69,303 76,475
Sewer 59,060 67,195
Refuse 28,449 32,777
Civic Entertainment 21,804 27,698
Other Business-Type Activities 10,268 12,686
TOTAL PROGRAM EXPENSES $880,131 $1,012,309
INCREASE IN NET POSITION $171,843 $125,692
Net Position 2022 2023
Net Position, Beginning of year, as previously stated $2,067,166 $2,239,652 Prior period adjustment** 643
Add increase in net position 171,843 125,692
NET POSITION, ENDING $2,239,652 $2,365,344

WHAT THE CITY OWES STATEMENT OF ACTIVITIES
7 8
$66.1
Million
FY 2021-2022
$1,779,938
FY 2022-2023
$1,768,632
FY 2019-2020
$1,911,768 FY 2018-2019
$1,533,336
*Excludes debt issued by the City that is not a financial obligation of the City such as Fiduciary Funds.

$131.7
Million
* Negative revenue was due to investments adjusted to fair market value at June 30, 2022. ** A prior period adjustment was made for Fiscal Year 2021-22, the adjustment was made to the Sewer Enterprise Fund for expenses items that should have been included as inventory.

FY 2020-2021
$1,849,092
$165.4
Million
($45.2)
Million
231.0
Million
($51.6)
Million
The City issues bonds to support spending for construction, capital asset purchases, and improvements and unfunded pension liability.

Certificates of Participation
$105.2 million
Used as a lease-purchase financing mechanism for
public b
uildings such as the Convention Center.

Pension Obligation Bonds
$425.1 million
Used to pay some of the pension plan’s unfunded
pension liability.

General Obligation Bonds
$3.4 million
Issued for the construction or acquisition of major
capital assets. The security pledge d
for the bonds
is the general taxing power of the government.

For more information about how the
City is handling the CalPERS
challenge, please visit:

Long-Term Bond Debt Outstanding*
In thousands of dollars

FY 2020-2021
$1,849,092
$165.4
Million
($45.2)
Million
231.0
Million
($51.6)
Million
SPENDING: GOVERNMENTAL ACTIVITIES
The City’s governmental activities include general government, public safety, highways and streets, and culture and recreation. These activities are principally supported by general revenue including taxes and investment income. The table below reflects a five- year history of spending for these activities.

FIVE-YEAR SPENDING HISTORY – GOVERNMENTAL
In thousands of dollars

Public Safety expenditures reflect the costs associated with providing police and fire services to residents and visitors.

Culture and Recreation expenditures enrich the quality of life in Riverside through recreational and cultural activities as well as support the educational and informational needs of the community.

Highways and Streets expenditures are related to the design, construction, maintenance, and operation of public facilities and infrastructure within the City.

THE CITY’S ASSETS AND INVESTMENTS CITY VISION, ACTIVITIES, AND SPENDING 9 6
Improvements other
than Buildings
$1,304,303

39.6%
Infrastructure
$677,750

20.5%
Buildings
$553,682

16.8%
Land
$486,835

14.7%
Construction in
Progress
$182,872

5.5%
Machinery &
Equipment
$63,905

1.9%
Other Capital
Assets
$32,969

1.0%
$3,302,316
(In thousands of dollars)

CAPITAL ASSETS, NET OF DEPRECIATION AND AMORTIZATION

The chart below reflects the types of investments held by the City or its Fiscal Agent as of June 30, 2023.

In thousands of dollars

US Treasury
Obligations
$307,141

27.8%
Medium Term
Corporate Notes
$207,454

18.8%
Joint Power
Authority Pools
$181,643

16.4%
Securities
$151,157

13.7% Federal
Agency
Obligations
$133,768

12.1%
Money Market
Funds
$81,509

7.4%
Other Investment
Types
$42,935

3.8%
INVESTMENT TYPE ● $ 1,105,607

1.23 %
June 2022

The City of Riverside is committed to providing high quality municipal services to ensure a safe, inclusive, and livable community.

FIVE-YEAR REVENUE HISTORY – GOVERNMENTAL
In thousands of dollars

Sales and Use Tax – consumable tax placed on retail sales, leases or rentals of most goods, and any taxable services as mandated.

Property Tax – legally enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on December 10 and April 10.

Other consists of franchise tax, transient tax, intergovernmental (unrestricted), rental and investment income, and miscellaneous income, including one-time revenues.

FIVE-YEAR REVENUES VS EXPENSES – CITYWIDE
In thousands of dollars

$360.4 Million
General Fund
2022-23 Budget
Final Budget*
$327.1 Million
General Fund
2023-24 Budget
Adopted Budget*
1 Priority Based Budgeting Strategy
implementation process progressing

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

MEASURE Z
In thousands of dollars
Measure Z - Revenue
Taxes $84,016
Rental and Investment Income (1,105)
Miscellaneous 10
Total Revenue $82,921

Measure Z - Expenditures
Current:

(In thousands of dollars)

3,010.5
Acres of Parks
8 Library Branches
FY 2018-19
FY 2019-20
FY 2020-21
FY 2021-22
FY 2022-23
$330,000
$340,000
$350,000
$360,000
$370,000
$380,000
$390,000
$400,000
$410,000
$420,000

CHARGES FOR SERVICE - ELECTRIC
In thousands of dollars
Fire
Public Works
Police
Culture &
Recreation
4 Police Stations &
1 Police Substations
626 Police Personnel
(Sworn & Non-Sworn)

CITY DEMOGRAPHICS AND KEY STATISTICS
14 Fire Stations
1 Training Facility
252 Fire Personnel
45,073 Calls Answered
BUSINESS-TYPE ACTIVITIES: FINANCIAL HIGHLIGHTS
3 12

CITY DEMOGRAPHICS

$605,000
Median Sale Price in Riverside
Source: Redfin calculations of home data from
MLS and/or public records September 2023

* Source: United States Census Bureau, 2022 American Community Survey 1-Year Estimates – Most recent data available at time of publication Hispanic or Latino
(of any race)*

55.4%
White*

27.3%
Asian*

8.2% Black*

5.4%
Mixed or
Other
Race*

3.7%
893.28
Streets (miles)
2023 SPENDING – BUSINESS-TYPE ACTIVITIES

Electric
$401,427

64.9%
Water
$76,475

12.4% Sewer
$67,195

10.9% Refuse
$32,777

5.3%
Civic
Entertainment
$27,698

4.5%
Others
$12,686

2.0%
14 Community
Centers
43 Playgrounds &
44 Softball/Baseball
Diamonds

The total includes non -spendable assets and funds that are restricted for specific purposes. Fund balance does not reflect funds available for new electric distribution operations spending.

FUND BALANCE – ELECTRIC FUND
In thousands of dollars

BUSINESS-TYPE ACTIVITIES: FINANCIAL HIGHLIGHTS (CONTINUED) 13 ABOUT THE CITY AND ITS LEADERSHIP

SEWER FUND
Water
Sewer
23,667,466
annual water
consumption (CCF*)
17,575
New Connections

FUND BALANCE – WATER AND SEWER FUNDS
In thousands of dollars

$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23

CHARGES FOR SERVICE - WATER AND SEWER
In thousands of dollars
66,441
Number of Accounts
*CCF = Centum Cubic Feet = 748 gallons
FY 2020-21
$234,397
FY 2021-22
$245,674
FY 2022-23
$252,131
FY 2019-20
$228,532 FY 2018-19
$221,576
WATER FUND FY 2020-21
$308,360
FY 2021-22
$322,304
FY 2022-23
$327,413 FY 2019-20
$300,635
FY 2018-19
$302,701
It is important to note, this PAFR is unaudited and is presented on a non-GAAP basis*. This means that the presentation of financial data in this report differs from the GAAP basis presentation in the City’s ACFR. The differences are as follows: the use of prescribed accounting methods and financial statement formats; the presentation of segregated funds; and the disclosure of all material financial and non-financial matters in notes to the financial statements.

Sincerely,

Kristie Thomas
Financial Director/Assistant Chief Financial Officer

GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) PAFR AWARD AWARD
REVIEW

PENDING
000
City of Riverside, City Hall
3900 Main Street
Riverside, CA 92522
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POPULAR ANNUAL

FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
Riverside, California

Financial Performance and Budget CommitteeJanuary 10, 2024

Financial Performance and Budget Committee
January 10, 2024