Finance Committee
March 12, 2025

CITY OF RIVERSIDE, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2024

Prepared by the Finance Department
Kristie Thomas, Finance Director/Assistant Chief Financial Officer

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

CITY OF RIVERSIDE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024

TABLE OF CONTENTS
Page

INTRODUCTORY SECTION
Letter of Transmittal................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................i GFOA Certificate of Achievement................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................viii Legislative and City Officials................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ix Organizational Chart................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ix

FINANCIAL SECTION
Independent Auditors' Report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 Management's Discussion and Analysis................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................20 Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................21 Fund Financial Statements:

Balance Sheet - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................23 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................25 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................26 Statement of Net Position - Proprietary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................27 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................29 Statement of Cash Flows - Proprietary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................30 Statement of Net Position - Fiduciary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................32 Statement of Changes in Net Position - Fiduciary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................33 Notes to Basic Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................34 Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................85 Schedule of Pension Plan Contributions................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................87 Schedule of Changes in Total OPEB Liability and Related Ratios................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................88

CITY OF RIVERSIDE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024

TABLE OF CONTENTS
PAGE
Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet - Non-Major Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................90 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-Major Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................92 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Non-Major Special Revenue Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................94 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Capital Project Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................97 Combining Statement of Net Position - Non-Major Enterprise Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................100 Combining Statement of Revenues, Expenses, and Changes in Net Position - Non-Major Enterprise Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................102 Combining Statement of Cash Flows - Non-Major Enterprise Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................103 Combining Statement of Net Position - Internal Service Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................106 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................107 Combining Statement of Cash Flows - Internal Service Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................108 Balance Sheet - Combining General Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................110 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Combining General Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................111 Balance Sheet - Combining Capital Outlay Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................112 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Combining Capital Outlay Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................113

STATISTICAL SECTION
Net Position by Component................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................115 Changes in Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................116 Fund Balances - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................118 Changes in Fund Balances - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................119 Business-Type Activities - Electricity Revenues by Source................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................120 Governmental Activities - Tax Revenue by Source................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................121 Taxable Sales by Category................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................122

CITY OF RIVERSIDE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024

TABLE OF CONTENTS
PAGE
Assessed Value and Estimated Actual Value of Taxable Property................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................123 Direct and Overlapping Property Tax Rates................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................124 Principal Property Taxpayers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................125 Property Taxes Levies and Collections................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................126 Electricity Sold by Type of Customer................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................127 Electricity Rates................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................128 Top 10 Electricity Customers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................129 Ratios of Outstanding Debt by Type................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................130 Ratios of General Bonded Debt Outstanding................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................131 Direct and Overlapping Governmental Activities Debt................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................132 Legal Debt Margin Information................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................134 Pledged-Revenue Coverage................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................135 Demographic and Economic Statistics................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................136 Principal Employers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................137 Full-Time Equivalent City Government Employees by Function................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................138 Operating Indicators by Function................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................139 Capital Asset Statistics by Function................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................140

December 16, 2024
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 fiscal year ended June 30, 2024.

This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a rational basis for making these representations, management has established a comprehensive 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 management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City’s financial statements have been audited by CliftonLarsonAllen, 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, 2024. The independent auditors' report is presented as the first component of the financial section of this ACFR.

The independent audit of the financial statements of the City was part of the federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only o n 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 statements 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 auditors’ 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-year 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 responsible, among other things, for passing ordinances, adopting the budget, 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. i
The City p rovides a full range of services which include general government, public safety ( police, fire, disaster preparedness, and building inspection), construction and maintenance of highways and streets, economic development, culture and recreation, electric, water, airport, refuse, sewer, and senior citizen/handicap transportation. In addition to general City a ctivities, the Council is financially a ccountable for the Riverside Housing Authority, Riverside Public Financing Authority, Riverside Municipal Improvements Corporation, and the Successor Agency, which was formed to hold the assets of the former Redevelopment Agency; therefore, these entities are 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 principles generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments within the general, special revenue, and capital project funds. Formal budgets 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, department 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, as well as 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, followed by presentation at a City Council meeting. Following Council review, a public hearing is set to obtain citizen comments. The City C ouncil generally c onducts the public hearing and adopts the budget during one of its June meetings. The City Manager is legally authorized to transfer budgeted amounts between divisions and accounts within the same department and fund over the course of the fiscal year. 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. For the General Fund, this comparison is presented on page 26 as part of the basic financial statements for the governmental funds. For governmental 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 94.

Local economy: The City is located in 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 316,690 which places it as the 12th largest in California. As one of largest cities in the region, Riverside serves as a major economic hub and driver of growth. Its diverse economy encompasses a wide range of industries, including healthcare, education, manufacturing, and logistics, which not only provides local employment opportunities but also bolsters the broader Southern California economy. Additionally, Riverside's strategic location as a transportation and logistics hub, with access to major highways and distribution centers, demonstrates its critical role in facilitating the movement of goods within the region.

The City of Riverside saw an increase in the unemployment rate from 4.5% as of July 2023 to 5.3% as of July 2024. The City's unemployment rate is lower than the State of California (5.8%) and lower than the County of Riverside (5.9%), but higher than the United States (4.5%). The primary drivers for the increase in employment in the Riverside metro area's nonfarm payrolls were in the categories of education and health services; mining and logging; and government, which saw increases in employment from July 2023 to July 2024.

In the Riverside metro area, there was an overall increase in the consumer price index of 2.8%, with food prices increasing by 1.8%, and energy prices decreasing by 3.7%, compared to the United States city average, which experienced an overall increase of 2.9%, with an increase of 2.2% in food prices, and a increase of 1.1% in energy prices.
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In August 2024, Riverside home prices were up 4% compared to last y ear, selling for a median price of $635,000. On average, homes in Riverside currently sell after 32 days on the market compared to 28 days last year. There were 180 homes sold in August this year, up from 166 last year.

Goals and Vision: On October 20, 2020, Council approved the Envision Riverside 2025 Strategic Plan, which is comprised of two components:

1. City Council Strategic Policy, which sets forth the priorities and policy direction of the City Council to advance Riverside’s potential and to frame the work efforts over the next five years including the 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 progress toward achieving City Council priorities and includes the Actions and Performance Measures which will be evaluated and updated 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 city 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, economy, and environment reach their fullest potential for the public good.

Cross-Cutting Threads: Major themes that should be reflected in all our outcomes include Community Trust, Equity, Fiscal Responsibility, Innovation, and Sustainability and Resiliency.
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Strategic Priorities and Indicators
Arts, Culture and Recreation Indicators: Community Well-Being Indicators: Economic Opportunity Indicators:
 Lifelong Learning  Housing Supply and Attainability  Workforce Development  Shared Uses and Partnerships  Public Safety  Business Development and Success  Arts and Cultural Opportunities  Public Health  Local Investment  Access to Parks, Trails and Open Spaces  Placemaking  Regional Partnerships  Programs and Amenities  Homelessness  Economic Mobility  Household Resilience
Environmental Stewardship Indicators: High Performing Government Indicators:

Infrastructure, Mobility, and Connectivity
Indicators:
 Water Quality, Supply, Efficiency and Reliability  Community Centered Services  Access to Transportation Choices  Climate Resiliency, Carbon Footprint and Air Quality  Adaptive Organization  Infrastructure Quality and Reliability  Usage, Condition and Quality of Public Lands  Financial Health  Outside Investment  Local Food System Vitality  Equity in Delivery of City Services  Smart City Ecosystem  Environmental Justice  Civic Engagement  Greening Facilities  Renewable Resource Usage and Waste Reduction  City Team Engagement  Fleet and Systems With the adoption of the Priority Based Budgeting methodology, the City Council's Strategic Priorities assume a pivotal role in resource allocation decisions, guiding the budget development process for future fiscal years.

Long-term financial planning: In June 2024, the City adopted the 2024-2026 biennial budget, reflecting its unwavering commitment to strategic financial management, promoting financial stability, growing the economy, and enhancing the quality of life for all Riverside residents. The budget is balanced year over year, allowing for robust investments in public safety, housing, homelessness response, parks and library i mprovements, funding for the arts, and community events - everything that makes Riverside a great place to live, work, play, and raise a family. While the City budget aligns with the City Council's strategic priorities, it is also shaped by robust community outreach and engagement, starting with the public outreach through the "Your Money, Your Voice" budget workshops, utilizing in-person meetings and public surveys to gather input from residents and business owners. The City also conducted a statistically valid Quality of Life survey of Riverside residents measuring satisfaction with City services and helping city leadership make informed decisions aligning budget resources to meet resident priorities. Riverside's strong economy enables a strong City budget that meets today's needs and lays the foundation for continued success. The City of Riverside is well-positioned to meet future challenges and enhance the quality of life for all its residents.

Alongside the City's strategic priorities, the following budget priorities were fundamental in the decision-making process during budget development:

1. Financial Stability: Ensuring the City's fiscal health and resilience by responsibly managing short and long-term finances. This priority involves setting the appropriate cost recovery f or city s ervices currently s ubsidized by g eneral revenues, identifying new revenue sources through economic growth and innovative solutions, and addressing critical needs in a responsible and sustainable manner.

2. Public Safety: Prioritizing the safety and well-being of residents by allocating resources to law enforcement, fire protection, and community safety. This includes investing in crime prevention and response capabilities to enhance public safety outcomes. iv

3. Housing & Homelessness: Addressing the housing needs of residents and mitigating homelessness through strategic investments in affordable housing, supportive services, and homeless prevention programs. This priority focuses on providing shelter, supportive housing, and pathways to stable housing for vulnerable populations.

4. City Infrastructure: Investing in the maintenance, improvement, and expansion of essential infrastructure systems such as transportation, parks, and public facilities. This includes repairing aging infrastructure and promoting sustainable infrastructure development to support the City 's growth and quality of life.

5. Growing the City's Economy: Cultivating robust economic growth, job creation, and business development opportunities to fortify t he City's financial prosperity a nd vitality. This priority e ntails nurturing an environment conducive to business success, attracting fresh investments, bolstering local enterprises, and championing initiatives for workforce advancement. By fostering economic expansion, this priority not only enriches the livelihoods of residents but also amplifies revenue streams for the City, ensuring sustainable financial strength and resilience.

The General Fund budget totals $361.23 million in FY 2024/25 and $371.81 million in FY 2025/26. The budget is balanced with the use of Section 115 Trust Set-Aside funds. Per City C ouncil action in relation to the FY 2022/23 year-end financial report, $35 million was set aside to offset Section 115 Trust contributions and alleviate pressure on the General Fund budget, while ensuring the desired level of contributions to the Trust. The FY 2024-2026 biennial budget utilizes $4.76 million in FY 2024/25 and $4.35 million in FY 2025/26 of Section 115 Trust Set-Aside funds. Including these uses, Section 115 Trust contributions in the FY 2024-2026 Biennial Budget total $21M; the General Fund Long-Term Plan includes total contributions of $35M over five years. In future years, the Section 115 Trust may be used to smooth fluctuations in required CalPERS unfunded accrued liability (UAL) payments, shielding the budget from fiscal shocks and preventing drastic operational adjustments.

Property and sales taxes are the City's largest revenues sources, making up about 52% of total budgeted revenues. The Federal Reserve's 2023 interest rate hikes, aimed at curbing inflation, increased borrowing costs for homes, vehicles, and equipment, which in turn dampened consumer and business spending. As a result, FY 2023/24 General Fund sales tax revenue was slightly lower than FY 2022/23, declining by 1.4%. The FY 2024-2026 biennial budget projects a modest increase in sales tax for FY 2024/25, with a return to ty pical growth expected as interest rates are anticipated to decline in the latter half of 2024. Meanwhile, the City has experienced significant growth in assessed property values over the past decade, with the budget anticipating steady annual growth in property tax revenues. Additionally, new revenue sources, such as the March JPA tax and revenue sharing agreement and the cannabis tax, are expected to help General Fund revenues keep pace with rising costs.

American Rescue Plan Act (ARPA): O n March 11, 2021, President Biden signed into law the $1.9 trillion American Rescue Plan Act (ARPA), which included sending checks to families and offering small business support to stimulate demand and address the country’s high unemployment. The ARPA established the Coronavirus State and Local Fiscal Recovery Funds (SLFRF), which provide a combined $350 billion in assistance to eligible state, local, territorial, and Tribal governments to assist in the recovery from economic and health impacts of the COVID-19 pandemic by providing resources to address impacts resulting from the crisis. 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 in alignment with specificed statutory categories, including:

1. To respond to the COVID-19 public health emergency or its negative economic impacts;

2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the recipient that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;

3. For the provision of government services, to the extent of the reduction in the revenue of such recipients due to the COVID-19 public health emergency , relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; and

4. To make necessary investments in water, sewer, or broadband infrastructure. v
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. On August 20, 2024, the City Council approved the reallocation for various spending plan items based on a review of activity to date and in process, as well as reassessment of needs. Below is a consolidation of the funding breakdown by Expenditure Category

1. Public Health $ 1,949,457 %2.58

2. Negative Economic Impacts 26,030,805 34.51

3. Public Health Negative Economic Impacts: Public Sector Capacity 400,000 0.53

4. Premium Pay - -

5. Infrastructure 10,000 0.01

6. Revenue Replacement 46,744,926 61.97

7. Administration 300,000 0.40
Total $ 75,435,188 %100.00
The Final Rule was issued on January 6, 2022 and became effective on April 1, 2022. Some key changes include:
 The final rule offers a standard allowance for revenue loss of $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation.
 In some cases, enumerated eligible uses included in the interim f inal rule under responding to the public health emergency h ave been re- categorized in the organization of the final rule to enhance clarity.  In addition to programs and services, the final rule clarifies that recipients can use funds for capital expenditures that support an eligible COVID- 19 public health or economic response.
 The final rule provides an expanded set of households and communities that are presumed to be “impacted” and “disproportionately impacted” by the pandemic, thereby allowing recipients to provide responses to a broad set of households and entities without requiring additional analysis.  The final rule provides a broader set of uses available for these communities as part of COVID-19 public health and economic response in all impacted communities and making certain community d evelopment and neighborhood revitalization activities eligible for disproportionately impacted communities.
 The final rule also allows for a broader set of uses to restore and support government employment, including hiring above a recipient’s pre- pandemic baseline, providing funds to employees that experienced pay cuts or furloughs, avoiding layoffs, and providing retention incentives.

On August 10, 2023, the U.S. Department of Treasury r eleased the 2023 Interim Final Rule that implements three new eligible uses authorized in the Consolidated Appropriations Act, 2023. The new eligible uses allow recipients to use SLFRF funds for emergency relief from natural disasters, community development, and surface transportation projects. The existing eligible uses are generally unchanged, and recipients may continue to use SLFRF funds in accordance with the 2022 Final Rule.
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Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (Program) to the City for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2023. This was the thirty-seventh consecutive year that the City has received this prestigious award. The City received this award for publishing an easily readable and efficiently organized ACFR that satisfied both Generally Accepted Accounting Principles (GAAP) and applicable legal requirements. The award is valid for a period of one year only. We believe that our current ACFR continues to meet the Program’s requirements and we are submitting it to the GFOA again this year.

The Government Finance Officers Association awarded an Outstanding Achievement in Popular Annual Financial Reporting for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2023. The City received this award for the seventh time for the June 30, 2023 report. This is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. The Award is valid for a period of one year only. We believe that our current PAFR continues to meet the Program's requirements and we are submitting it to the GFOA again this year.

The City r eceived the GFOA’s Distinguished Budget Presentation Award for its 2024-2026 Biennial Budget document, which covers the fiscal years commencing on July 1, 2024 and concluding June 30, 2026. To earn this distinguished recognition, 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 tool.

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 the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City’s finances.

Respectfully submitted,
Kristie Thomas
Finance Director
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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, 2023.

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.
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LEGISLATIVE OFFICIALS
Patricia Lock Dawson ...................................................................... Mayor Philip Falcone ................................................... Councilmember – Ward 1 Clarissa Cervantes ........................................... Councilmember – Ward 2 Steven Robillard ............................................... Councilmember – Ward 3 Chuck Conder .................................................. Councilmember – Ward 4 Sean Mill ........................................................... Councilmember – Ward 5 Jim Perry .......................................................... Councilmember – Ward 6 Steve Hemenway ............................................. Councilmember – Ward 7

CITY OFFICIALS
Mike Futrell ........................................................................... City Manager* Rafael Guzman ..................................................... Assistant City Manager Kris Martinez ......................................................... Assistant City Manager Edward Enriquez ......................... Assistant City Manager, CFO/Treasurer

Donesia Gause ..........................................................................City Clerk* Phaedra Norton .................................................................... City Attorney* David Garcia ............................ Interim General Manager - Public Utilities Larry V. Gonzalez ............................................................... Chief of Police Carl Carey ......................................................... General Services Director Erin Christmas .................................................................... Library Director Pamela Galera ................. Parks, Recreation & Community Svcs Director Kristie Thomas ....................................... Finance Director/Assistant CFO Rene Goldman ............................................... Human Resources Director George Khalil ....................................................... Chief Innovation Officer Gilbert Hernandez ................................................... Public Works Director Michael Moore ............................................................................. Fire Chief Robyn Peterson .............................................................. Museum Director Jennifer Lilley ...................Community & Economic Development Director

*Appointed by City Council
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CliftonLarsonAllen LLP
claconnect.com

INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Riverside, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Riverside (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise 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, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof and the budgetary comparison for the Gene ral Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to prov ide a basis for our audit opinions.

Emphasis of Matter
Restatement
As described in Note 26 to the financial statements, the City restated the business-type activities beginning net position and the Water Fund beginning net position. Our opinions are not modified with respect to this matter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 1 Honorable Mayor and Members of the City Council
City of Riverside, California

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
· Exercise professional judgment and maintain professional skepticism throughout the audit. · Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. · Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 Honorable Mayor and Members of the City Council
City of Riverside, California
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios of the pension plans, and schedules of pension plan contributions and schedule of changes in total OPEB liability and related ratio be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual non-major fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual non-major fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic fina ncial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information ex ists, we are required to describe it in our report.
3 Honorable Mayor and Members of the City Council
City of Riverside, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2024, 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.

CliftonLarsonAllen LLP
Irvine, California
December 16, 2024
4 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 June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal, which can be found on page i of this report.

All amounts, 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 introduction to the City’s basic financial statements, comprised of three 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, 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.

The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

The government-wide financial statements distinguish functions of the City t hat are principally s upported by t axes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, highways and streets, and culture and recreation. The business-type activities of the City include Electric, Water, Sewer, Airport, Refuse, 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 Authority, and the Riverside Municipal Improvements Corporation. Although legally s eparate, these entities function for all practical purposes as departments of the City and therefore have been blended as part of the primary government. The Successor Agency to the Redevelopment 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 significance of the relationship between the City and the Successor Agency. The activity of the Successor Agency is reported with the City’s fiduciary 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 accounting used in presenting governmental fund financial statements. Note 1 of the Notes to Basic Financial Statements fully describes 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 20 - 21 of this report.

Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental, proprietary, and fiduciary. 5 Governmental funds - Governmental funds a re 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 reconciling items relate to capital assets and debt. In the Governmental Funds, 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 debt provides cash, which is now available for specified purposes. Accordingly, at the end of the fiscal year, the unrestricted fund balances of the Governmental Funds reflect spendable resources available for appropriation by t he City C ouncil. Spendable balances are not presented on the face of the government-wide financial statements.

The City maintains fifteen individual governmental funds. Information 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 Outlay 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 90 - 98 in this report.

The City adopted an annual appropriated budget for its General Fund for the year ended June 30, 2024. A budgetary comparison statement has been provided to demonstrate compliance with this budget.

The governmental fund financial statements can be found on pages 22 - 25 of this report.

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 Entertainment 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 insurance programs, central stores, and its fleet of vehicles. Because these services predominantly b enefit governmental rather than business-type functions, they h ave been included within governmental activities in the government-wide financial statements. Internal service funds 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 government-wide financial statements (business-type activities), only in more detail. The proprietary fund financial statements provide separate information for the Electric, W ater, and Sewer operations, all of which are considered to be major funds of the City . The five remaining proprietary f unds noted above are combined into a single, aggregated presentation. All internal service funds are also combined into a single, aggregated presentation in the proprietary f und financial statements. Individual fund data for the non-major enterprise funds and the internal service funds is provided in the form of combining statements and can be found on pages 100 - 108 in this report.

The basic proprietary fund financial statements can be found on pages 27 - 31 of this report.

Fiduciary fund - Fiduciary funds are used to account for situations where the City’s role is purely custodial. Fiduciary funds are not reflected in the government- wide financial statement because the 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 32 - 33 of this report. 6 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 34 of this report.

Government-wide Financial Analysis
The following table presents a summarization of the City’s assets, liabilities, deferred inflows and outflows, and net position for its governmental and business-type activities. As noted earlier, a government’s net position may serve over time as a useful indicator of its financial position. (in thousands)
Governmental
Activities
Business-Type
Activities Total
2024 2023 2024 2023 2024 2023
Assets:

Current and other assets $ 704,544 $ 633,853 $ 999,318 $ 856,258 $ 1,703,862 $ 1,490,111 Capital, lease, and subscription assets, net 1,350,155 1,343,379 1,963,201 1,958,937 3,313,356 3,302,316 Total assets 2,054,699 1,977,232 2,962,519 2,815,195 5,017,218 4,792,427 Deferred Outflows of Resources 174,420 196,336 63,486 77,898 237,906 274,234 Liabilities:

Current liabilities 177,907 172,713 151,896 139,888 329,803 312,601 Long-term liabilities 831,959 780,515 1,541,518 1,469,858 2,373,477 2,250,373 Total liabilities 1,009,866 953,228 1,693,414 1,609,746 2,703,280 2,562,974 Deferred Inflows of Resources 22,521 25,610 127,366 112,733 149,887 138,343 Net Position
Net investment in capital assets 1,206,876 1,198,815 785,422 790,844 1,992,298 1,989,659 Restricted - Expendable 230,945 237,159 120,525 96,638 351,470 333,797 Restricted - Nonexpendable 1,676 1,642 - - 1,676 1,642
Unrestricted/(deficit) (242,765) (242,886) 299,278 283,132 56,513 40,246 Total net position $ 1,196,732 $ 1,194,730 $ 1,205,225 $ 1,170,614 $ 2,401,957 $ 2,365,344 The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2,401,957 at June 30, 2024, an increase of $36,613 from June 30, 2023.

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

An additional 15% of the City's net position 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, $(242,765) net deficit is held by the governmental activities and $299,278 is held by the business-type activities. 7 Unrestricted net position in the amount of $56,513, a net position increase of 40% from prior year, is the change in resources available to fund City programs to citizens and debt obligations to creditors. The increase in unrestricted net position is primarily the result of an increase in investment income, as well as an increase in charges for services.

Governmental activities increased the City’s net position by $2,002 to $1,196,732 for the year ended June 30, 2024.

On the following page is a condensed summary of activities of the City’s governmental and business-type operations for the period ended June 30, 2024 with the prior fiscal year presented for comparative purposes. Also included in the following analysis are revenue and expense graphs to aid in understanding the results of the current year’s activities.
(Balance of page intentionally left blank)
8 (in thousands)
Governmental
Activities
Business-Type
Activities Total
2024 2023 2024 2023 2024 2023
Revenues:

Program revenues:

Charges for services $ 47,529 $ 43,087 $ 654,660 $ 628,084 $ 702,189 $ 671,171 Operating grants and contributions 50,327 59,368 3,637 4,374 53,964 63,742 Capital grants and contributions 31,064 34,305 20,343 15,483 51,407 49,788 General revenues:

Sales taxes 174,300 177,722 - - 174,300 177,722
Property taxes 90,383 84,751 - - 90,383 84,751
Other taxes and fees 47,690 49,972 - - 47,690 49,972
Intergovernmental, unrestricted 1,097 467 - - 1,097 467 Investment income 23,089 8,817 31,514 11,191 54,603 20,008 Miscellaneous 6,193 10,331 8,392 10,049 14,585 20,380
Total revenues 471,672 468,820 718,546 669,181 1,190,218 1,138,001 Expenses:

General government 108,301 34,258 - - 108,301 34,258
Public safety 275,631 239,744 - - 275,631 239,744
Highways and streets 55,000 50,588 - - 55,000 50,588
Cultural and recreation 56,685 50,863 - - 56,685 50,863 Interest on long-term debt and fiscal
charges 17,607 18,598 - - 17,607 18,598
Electric - - 409,674 401,427 409,674 401,427
Water - - 80,452 76,475 80,452 76,475
Sewer - - 69,465 67,195 69,465 67,195
Airport - - 2,438 2,385 2,438 2,385
Refuse - - 35,717 32,777 35,717 32,777
Transportation - - 5,648 4,808 5,648 4,808
Public Parking - - 8,046 5,493 8,046 5,493
Civic Entertainment - - 31,557 27,698 31,557 27,698
Total expenses 513,224 394,051 642,997 618,258 1,156,221 1,012,309 Increase (decrease) in net position (41,552) 74,769 75,549 50,923 33,997 125,692 Transfers 43,554 25,421 (43,554) (25,421) - -
Changes in net position 2,002 100,190 31,995 25,502 33,997 125,692 Net Position:

Beginning of year, as previously stated 1,194,730 1,094,540 1,170,614 1,145,112 2,365,344 2,239,652 Error Correction - - 2,616 - 2,616 -
Beginning of year, as restated 1,194,730 1,094,540 1,173,230 1,145,112 2,367,960 2,239,652 End of year $ 1,196,732 $ 1,194,730 $ 1,205,225 $ 1,170,614 $ 2,401,957 $ 2,365,344 9 Governmental Activities - The total change in net position for governmental activities increased by $2.0 million. 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 approximately $2.9 million or 1%. The increase is largely attributable to the $14.3 million increase in rental and investment income due to an economic rebound that produced higher interest earnings on investments. A $6 m illion increase in property t ax revenue resulting from a growth in assessed property v alues also contributed to the overall increase in revenues. The decrease of $(9.0) million in operating contributions and grants is primarily due to a reduction in grant funding received compared to the prior year, as well as delays in incurring associated expenditures, which resulted in deferred revenue recognition.

Expenses:
 While variances between years exist for the various expense functions, the total net increase was approximately $119.2 million or 30%. General Government expenses increased by $74.0 million, driven by higher federal and state grand-funded expenditures and a contingent litigation liability of $37.9 million related to transfers from the Water Fund to the General Fund. Public Safety expenses were up $35.9 million driven by a $17.4 million rise in pension liabilities, $11.9 million in other personnel costs as vacant positions were filled, and $6.6 million in non-personnel costs, including grant expenditures.

Program Revenues and Expenses - Governmental Activities - Fiscal Year Comparison 2024 vs. 2023 10 Revenues by Source - Governmental Activities - Fiscal Year Comparison 2024 vs. 2023 Business-Type Activities - Total net position for business-type activities increased by $34.6 million as compared to the prior year. Key elements of this year’s activity in relation to the prior year are as follows:
 Charges for services increased from the prior year, resulting in an increase of $26.6 million or 4%. Investment income increased $20.3 million from the prior year as a result of favorable economic conditions. Electric Fund charges for services increased by $10.5 million and Water Fund $2.7 million primarily due to an increase in consumption, as well as rate plan increases. Public Parking is up $4.1 million, primarily attributable to an increase in parking fees alongside higher demand, and an increase in parking fines. The Civic Entertainment Fund charges for services increased by $ 3.8 million due to an increase in entertainment venue events compared to the prior year.  Overall expenses increased by $24.7 million or 4.0%. The Electric Fund, Water Fund, and Sewer Fund had an increase in operating expenses of $8.2 million, $4.8 million, and $2.2 million, respectively, primarily due to increases in personnel, maintenance and operation, and general related costs. The Electric Fund maintenance and operation expenses increased primarily d ue to a combination of exceptionally e levated winter natural gas prices and elevated power prices, along with global market disturbances. The W ater Fund operating expenses increased primarily due to an increase in maintenance and operation, as well as an increase in materials and supplies. The Sewer Fund operating expenses increased primarily due to an increase in personnel related costs, chemical costs, and bad debt expense.
11 Revenues by Source - Business-Type Activities - Fiscal Year Comparison 12 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 financing 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 Non-Major Governmental Funds. As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. (in thousands)
General Fund Capital Outlay Fund
General Debt Service
Fund
Non-Major
Governmental Funds
Total
Governmental Funds
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Assets $ 346,067 $ 307,324 $ 107,710 $ 85,412 $ 13,877 $ 15,254 $ 185,359 $ 178,867 $ 653,013 $ 586,857 Liabilities $ 40,433 $ 41,440 $ 8,553 $ 2,457 $ 876 $ 1,195 $ 67,553 $ 69,685 $ 117,415 $ 114,777 Deferred inflows of resources 17,776 12,507 842 154 - - 52,156 48,669 70,774 61,330 Fund Balances
Nonspendable 3,963 2,115 - - - - 1,832 1,736 5,795 3,851 Restricted 60,166 32,695 40,963 82,801 13,001 14,059 63,818 58,777 177,948 188,332 Committed 138,061 111,301 23,365 - - - - - 161,426 111,301 Assigned 33,579 35,566 33,987 - - - - - 67,566 35,566
Unassigned 52,089 71,700 - - - - - - 52,089 71,700
Total fund balances 287,858 253,377 98,315 82,801 13,001 14,059 65,650 60,513 464,824 410,750 Total liabilities, deferred
inflows, and fund
balances $ 346,067 $ 307,324 $ 107,710 $ 85,412 $ 13,877 $ 15,254 $ 185,359 $ 178,867 $ 653,013 $ 586,857 As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $464,824, an increase of $54,074 compared to the prior year. Additionally, 1% of the fund balance, or $5,795, is nonspendable, which comprises the portion of fund balance that cannot be spent due to form. $177,948, or 38%, of fund 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 c reditors or grantors. Committed fund balance of $161,426, or 35% o f the fund balance, was set aside for economic contingencies. Committed for economic contingencies consists of 20% of the 2024-25 G eneral Fund adopted expenditure budget of $361 m illion, or $72,246; $5,000 for General Fund – Measure Z; $12,187 for future capital projects; $5,000 for technology related projects; $8,108 for Water Fund transfers pending the outcome of litigation; $336 for mine reclamation; $35,000 for the section 115 trust to cover future pension costs; and $184 for public works equipment. A total of $67,566, or 15%, of fund balance is constrained by t he City’s intent to utilize fund balance for specific purposes, which is reported within the fund balance classification assigned. The remainder of the fund balance, $52,089, or 11%, is unassigned, meaning it is available for spending at the City’s discretion. The City’s governmental funds reported combined total assets of $653,013 at June 30, 2024, an increase of $66,156 compared to the prior year. Liabilities and deferred inflows of resources amounted to $188,189, an increase of $12,082 from the 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 $287,858, in comparison to $253,377 in the prior year. The increase in fund balance is primarily due to an increase in property taxes of $6 million and investment income of $11.1 million, alongside a reduction of transfers in of $14 million and reduction of transfers out of $24 million. The Capital Outlay Fund is used to account for the acquisition or construction of major capital facilities. The total fund balance was $98,315, compared to $82,801 in the prior year. The increase was due to an issuance of long-term debt totaling $21.2 million to fund capital projects. 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 $13,001, compared to $14,059 in the prior year. The Non-Major Governmental Funds fund balance was $65,650, compared to $60,513 in the prior year.
13 Proprietary funds - The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

The unrestricted net position of the Electric, Water, and Sewer Funds at the end of the year amounted to $183,511, $20,445, and $84,749, respectively. The unrestricted net position for the Electric, Water, and Sewer Funds in the prior year was $174,199, $19,375, and $77,165, respectively. The increase in unrestricted net position of the Electric Fund in the amount of $9,312 was primarily due to an increase in investment income. The increase in unrestricted net position of the Water Fund in the amount of $1,070 was primarily attributable to an increased investment in capital assets. The increase in unrestricted net position for the Sewer Fund totaling $7,584 is primarily a result of increased investment income, as well as an increase in sewer connection fees tied to development.

Electric Water Sewer
Non-Major Enterprise
Funds
Total Business-Type
Funds
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Assets $ 1,379,360 $ 1,239,900 $ 743,314 $ 731,921 $ 648,205 $ 646,557 $ 193,873 $ 196,817 $ 2,964,752 $ 2,815,195 Deferred outflows of resources 34,671 45,624 15,230 16,990 7,361 8,309 6,224 6,975 63,486 77,898 Liabilities 889,826 764,935 315,368 335,124 385,967 400,776 104,486 108,911 1,695,647 1,609,746 Deferred inflows of resources 15,671 17,237 103,504 86,374 1,466 1,959 6,725 7,163 127,366 112,733 Net position
Net investment in capital assets 230,789 254,990 304,422 295,560 174,764 167,469 75,447 72,825 785,422 790,844 Restricted 94,234 74,163 14,805 12,478 8,620 7,497 2,866 2,500 120,525 96,638 Unrestricted/(deficit) 183,511 174,199 20,445 19,375 84,749 77,165 10,573 12,393 299,278 283,132 Total net position $ 508,534 $ 503,352 $ 339,672 $ 327,413 $ 268,133 $ 252,131 $ 88,886 $ 87,718 $ 1,205,225 $ 1,170,614 14 General Fund Budgetary Highlights
Original
Budget
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues $ 325,788 $ 350,182 $ 358,357 $ 8,175
Expenditures:

Current:

General government 25,410 30,862 17,141 13,721
Public safety 217,663 236,633 222,242 14,391
Highways and streets 25,317 30,502 24,703 5,799
Culture and recreation 36,835 44,203 38,598 5,605
Capital outlay 2,150 13,937 5,300 8,637
Debt service - - 2,882 (2,882)
Total expenditures 307,375 356,137 310,866 45,271
Excess/(deficiency) of revenues over/(under) expenditures 18,413 (5,955) 47,491 53,446 Other Financing Sources/(Uses): (8,241) (23,812) (13,010) 10,802 Net change in fund balance 10,172 (29,767) 34,481 64,248 Fund Balance:

Beginning of year 253,377 253,377 253,377 -
End of year $ 263,549 $ 223,610 $ 287,858 $ 64,248
The reason for the increase in final budgeted revenues compared to the Original Budget is primarily due to an $8.9 million budget adjustment for updated property tax projections, as well as a $9.3 million budget adjustment for sales and use tax revenue projections. The Final Budget for expenditures is higher than the Original Budget due to prior year encumbrances and carryovers totaling $35.6 million as well as supplemental appropriations approved by the City Council during the fiscal year. Supplemental appropriations in expenditures leveraged higher revenue projections to fund an additional $8.6 million in personnel costs and $6.2 million in operating expenditures. Personnel adjustments supported the addition of nearly 42 new positions and incorporated the fiscal impact of recent labor negotiations.

Operating expenditure appropriations funded expanded services and operations, including extended library hours, enhanced security for libraries and community centers, maintenance and equipment purchases, and community events designed to encourage engagement, promote tourism, and foster economic development throughout the City. Additional supplemental appropriations totaling $16.1 million in other financing sources/uses (in the form of transfers out) provided funding for capital projects, including $10 million for the Museum renovation, $3.5 million to supplement grant funding for a new library, and various other infrastructure projects.

Actual revenues exceeded Final Budget projections due to higher-than-anticipated revenues from numerous sources, such as property tax and interest earnings, and due to unbudgeted revenues, including the sales of capital assets totaling $2.5 million. Actual expenditures were less than f inal budgeted amounts by approximately $45.3 million. This is primarily attributable to fiscal year-end encumbrances totaling $37 million and other unexpended funds at fiscal year-end, some of which are expected to be carried over to the next fiscal year.

Capital Assets and Debt Administration
Capital Assets - T he City’s capital assets for governmental and business-type activities as of June 30, 2024 a mounted to $3,310,179 ( net of accumulated depreciation). This investment includes land, intangibles, buildings and improvements, machinery and equipment, park facilities, roads, highways, and bridges. The City's net capital assets for the current fiscal year increased by $11,267, comprised of an increase of $7,090 for governmental activities and an increase of $4,177 for business-type activities primarily caused by additions exceeding depreciation expense. 15 Major capital improvements during the current fiscal year included ongoing projects for governmental activities consisting primarily of roads totaling $36.9 million; purchase of vehicles, trailers and/or heavy equipment totaling $8.7 million; and helicopters totaling $10.9 million. Capital improvements in business-type activities included $16.5 m illion in Electric Utility c apital improvements primarily r elated to transformer replacements, improvements to communications network, underground improvements, metering infrastructure, and major streetlight projects; and $18.2 m illion in Water Utility p rojects primarily r elated to main replacements, system expansion, transmission pipelines, distribution facilities, and water well projects.

Additional information on the City’s capital assets can be found in Note 5 on page 49 of this report.

City of Riverside's Capital Assets
(net of depreciation)
(in thousands)
Governmental
Activities
Business-Type
Activities Total
2024 2023 2024 2023 2024 2023
Land $ 377,534 $ 383,379 $ 103,422 $ 103,456 $ 480,956 $ 486,835 Construction in progress 64,546 51,002 165,714 131,870 230,260 182,872 Buildings 97,507 102,405 437,260 451,277 534,767 553,682 Improvements other than buildings 84,305 94,884 1,191,328 1,209,419 1,275,633 1,304,303 Machinery and equipment 44,944 31,193 37,512 32,712 82,456 63,905 Intangibles - - 27,240 29,565 27,240 29,565
Infrastructure 678,867 677,750 - - 678,867 677,750
Total $ 1,347,703 $ 1,340,613 $ 1,962,476 $ 1,958,299 $ 3,310,179 $ 3,298,912 Lease and Subscription Assets - T he City's investment in lease and subscription assets for governmental and business-type activities as of June 30, 2024 amounted to $3,177 ( net of accumulated amortization). The lease and subscription assets investment includes land, buildings, machinery and equipment, and subscription-based information technology arrangements (SBITAs).

Additional information on the City’s lease and subscription assets can be found in Note 5 on page 49 of this report.

City of Riverside's Lease and Subscription Assets
(net of amortization)
(in thousands)
Governmental
Activities
Business-Type
Activities Total
2024 2023 2024 2023 2024 2023
Land $ - $ - $ 89 $ 163 $ 89 $ 163
Buildings 144 398 124 199 268 597
Machinery and equipment 435 290 218 189 653 479
SBITA 1,873 2,078 294 87 2,167 2,165
Total $ 2,452 $ 2,766 $ 725 $ 638 $ 3,177 $ 3,404
16 Long-term debt - At the end of the current fiscal year, the City had total debt outstanding of $2,059,835 which includes bonded debt of $1,844,676.

City of Riverside's Long-Term Debt
(in thousands)
Governmental
Activities
Business-Type
Activities Total
2024 2023 2024 2023 2024 2023
Lease revenue bonds $ 61,163 $ 65,093 $ 5,688 $ 6,168 $ 66,851 $ 71,261 General obligation bonds 1,756 3,411 - - 1,756 3,411
Pension obligation bonds 313,830 321,413 95,253 103,705 409,083 425,118 Certificates of participation 75,067 80,584 23,191 24,582 98,258 105,166 Revenue bonds - - 1,268,727 1,163,676 1,268,727 1,163,676 Arbitrage payable - - 673 - 673 -
Notes payable - - 36,525 55,070 36,525 55,070
Contracts payable - - 931 933 931 933
Financed purchased 16,152 19,230 1,134 1,476 17,286 20,706 Compensated absences 34,445 31,425 12,350 12,084 46,795 43,509 Claims and judgments 101,617 53,112 - - 101,617 53,112
Landfill capping - - 8,944 9,425 8,944 9,425
Lease liability 586 699 443 563 1,029 1,262
SBITA liability 1,119 1,930 241 86 1,360 2,016
Total $ 605,735 $ 576,897 $ 1,454,100 $ 1,377,768 $ 2,059,835 $ 1,954,665 The City’s total debt increase by $106,059 or 29.6% during the current fiscal year. The net increase is primarily related to the issuance of new revenue bonds in the Electric Fund, as well as an increase in claims and judgments related to the Self Insurance Fund.

The City’s Water Utility m aintains “AA+” and “AA+” ratings from S&P Global Ratings and Fitch, respectively, for their revenue bonds, while the Electric Utility maintains “AA-” ratings from both rating agencies for fixed rate bonds. The City’s general obligation bond ratings from S&P Global Ratings and Fitch 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 $1,022,298 at June 30, 2024, which applies only to general obligation debt. At June 30, 2024, the City had $1,756 of general obligation debt, resulting in available legal debt capacity of $1,024,054.

Additional information on the City’s long-term debt can be found in Note 9 beginning on page 55 of this report. 17 Economic Factors and Next Year's Budget
On June 25, 2024, the City Council adopted the FY 2024-2026 Biennial Budget, which includes $1.46 billion in funding for citywide operations and $137.5 million for capital projects in FY 2024-25, and $1.48 billion in funding for citywide operations and $140.8 million for capital projects in FY 2025-26.

The General Fund budget is supported by strong property tax performance, driven by increases in property value assessments, alongside new revenue sources such as the March JPA tax and revenue sharing agreement, and cannabis tax. The budget anticipates an economic slowdown in 2025, which is expected to impact sales tax revenue, followed by a g radual recovery in 2026. To support future growth and sustainability, the City is undertaking initiatives to enhance revenue, including a comprehensive fees and charges study, a development impact fee study, and a business tax discovery program. Additionally, the budget allocates funding for an Economic Impact Study a nd Strategic Plan, a Sports Attraction Study, and a Convention Center Expansion Study, all of which aim t o identify opportunities to expand the City’s economy and build a thriving community. On October 10, 2024, the City Council approved an 8% cannabis business tax.

The budget also addresses several fiscal challenges, including rising retirement costs, infrastructure investments, and contingency p lanning for the ongoing litigation of the Water Fund transfer to the General Fund (Water GFT). Increased infrastructure investments of $5 million annually will supplement existing budgets for facilities repair and maintenance, street improvements, vehicle replacement, and technology upgrades. An additional allocation of $4.1 million increased the biennial funding for Fire Vehicle replacements to $13.0 million, while $5.3 million is allocated for the replacement of Police radios. Water GFT revenue of $8.5 million in FY 2024-25 and $9.2 million in FY 2025-26 will be placed in reserve pending the outcome of ongoing litigation. In addition to the required UAL pay ments, the budget includes General Fund contributions to the Section 115 Trust totaling $21 million.

The biennial budget incorporates rate increases for the Electric, Water, and Refuse Funds, as part of five-year rate plans approved by the City Council in 2023.

Capital projects to maintain utility infrastructure are also funded for the Electric, Water, and Sewer Funds.

Rising retirement costs are a key consideration in the City’s long-term financial planning and are factored into ongoing efforts to maintain fiscal health. CalPERS investment returns have fluctuated significantly over the last ten years, leading to swings in funding levels reported in CalPERS actuarial reports and projected payments toward the unfunded accrued liability (UAL). The CalPERS discount rate, comparable to an assumed annual rate of return, is 6.8%. As of June 30, 2024, CalPERS reported a preliminary net return of 9.3% on its investments for the 12-month period ending June 30, 2024. The preliminary 9.3% net investment return stands in contrast to the prior fiscal year, when the net investment return was 5.8%. The 2024 investment return outpaced the discount rate, comparable to an assumed rate of return and a policy marker established by the CalPERS Board of Administration. It was also a notable improvement from the two most recent fiscal years, where investment returns were influenced by a variety of economic and geopolitical challenges. As of June 30, 2024, total fund annualized returns for the 5- year period stood at 6.6%, the 10-year period at 6.2%, the 20-year period at 6.7%, and the 30-year period at 7.7%.

CalPERS transitioned to collecting employer contributions for the plan's unfunded liability as fixed dollar amounts effective on July 1, 2018, moving away from the previous method that combined a contribution rate with the normal cost rate. In the fiscal year 2019-20, the City issued a pension obligation bond to help reduce future pension contributions. The City also established a Section 115 Trust to manage the long-term fiscal impact of rising retirement costs. As of June 30, 2024, the trust holds $66 million in assets. In future years, the trust will help mitigate significant increases in annual UAL payments, ensuring the City can maintain service levels and fund ongoing operations. The 2024-2026 biennial budget includes required UAL payments of $15,414 in FY 2024-25 and $29,147 in FY 2025-26. The funded status for each of the Safety and Miscellaneous Plans is above 85%.

Annual Valuation Report as of June 30, 2022 Annual Valuation Report as of June 30, 2023 Miscellaneous Plan Miscellaneous Plan
 Unfunded Liability Payment: $4,769  Unfunded Liability Payment (Prepayment option): $14,084  Funded Status: 89.9%  Funded Status 86.6%
Safety Plan Safety Plan
 Unfunded Liability Payment (Prepayment option): $10,645  Unfunded Liability Payment (Prepayment option): $15,063  Funded Status: 86.4%  Funded Status: 85.8%
18 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, California 92522.
19 CITY OF RIVERSIDE

STATEMENT OF NET POSITION
JUNE 30, 2024
(amounts expressed in thousands)
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets:

Cash and investments $ 488,222 $ 461,537 $ 949,759
Receivables, net of allowance for uncollectible 122,997 73,681 196,678 Leases receivable 10,554 106,855 117,409
Inventory 10,087 5,038 15,125
Prepaid items 2,134 14,321 16,455
Deposits - 1,829 1,829
Internal balances 1,413 (1,413) -
Restricted assets:

Cash and cash equivalents - 141,322 141,322
Cash and investments 67,833 179,272 247,105
Benefit/Conservation Programs receivable - 1,247 1,247
Regulatory assets - 12,966 12,966
Derivative instruments - 1,108 1,108
Land and improvements held for resale 1,304 - 1,304
Advances to Successor Agency Trust Fund - 1,555 1,555
Capital assets:

Capital assets, not depreciated 442,080 290,632 732,712 Capital assets, net of depreciation 905,623 1,671,844 2,577,467 Lease and subscription assets, net of amortization 2,452 725 3,177 Total assets 2,054,699 2,962,519 5,017,218
Deferred Outflows of Resources:

Changes in derivative values 1,035 449 1,484
Deferred charge on refunding 1,111 7,150 8,261
Pension related items 166,837 53,037 219,874
OPEB related items 5,437 2,850 8,287
Total deferred outflows of resources 174,420 63,486 237,906 Liabilities:

Accounts payable and other current liabilities 44,464 40,650 85,114 Unearned revenue 59,152 924 60,076
Deposits 12,298 14,777 27,075
Accrued interest 1,876 18,560 20,436
Noncurrent liabilities:

Due within one year
Long-term obligations 24,002 53,836 77,838
Compensated absences 17,496 9,233 26,729
Claims and judgments 16,921 - 16,921
Landfill capping - 559 559
Decommissioning liability - 12,244 12,244
OPEB liability 1,081 771 1,852
Lease liability 212 219 431
SBITA liability 405 123 528
Due in more than one year
Long-term obligations 443,966 1,378,286 1,822,252
Compensated absences 16,949 3,117 20,066
Claims and judgments 84,696 - 84,696
Landfill capping - 8,385 8,385
Decommisioning liability - 33,838 33,838
Regulatory liability - 20,598 20,598
Derivative instruments 2,261 1,811 4,072
Net pension liability 255,640 75,622 331,262
OPEB liability 27,359 19,519 46,878
Lease liability 374 224 598
SBITA liability 714 118 832
Total liabilities 1,009,866 1,693,414 2,703,280
Deferred Inflows of Resources
Change in derivative values - 1,664 1,664
Deferred charges on refunding - 551 551
Pension related items 5,271 3,236 8,507
OPEB related items 6,896 3,793 10,689
Lease related items 10,354 118,122 128,476
Total deferred inflows of resources 22,521 127,366 149,887 Net Position:

Net investment in capital assets 1,206,876 785,422 1,992,298 Restricted - Expendable:

Housing 43,494 - 43,494
Debt service 13,001 39,029 52,030
Public works 42,136 - 42,136
Capital projects 52,710 - 52,710
Landfill capping - 2,500 2,500
Programs and regulatory requirements - 73,170 73,170
Economic development 19,438 - 19,438
Unfunded accrued liability 60,166 5,826 65,992
Restricted - Nonexpendable:

Permanent fund principal 1,676 - 1,676
Unrestricted/(deficit) (242,765) 299,278 56,513
Total net position $ 1,196,732 $ 1,205,225 $ 2,401,957
See Notes to Financial Statements
20 CITY OF RIVERSIDE

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Program Revenues Net (Expenses) Revenues and Changes in Net Position Primary Government
Expenses
Indirect Expenses
Allocation
Charges for
Services
Operating
Contributions
and Grants
Capital
Contributions
and Grants
Governmental
Activities
Business-Type
Activities Total
Function/Programs
Primary Government:

Governmental Activities:

General government $ 108,301 $ (21,903) $ 17,582 $ 38,260 $ 1,331 $ (29,225) $ - $ (29,225) Public safety 275,631 14,753 14,937 10,853 - (264,594) - (264,594) Highways and streets 55,000 3,226 7,078 970 29,095 (21,083) - (21,083) Culture and recreation 56,685 3,924 7,932 244 638 (51,795) - (51,795) Interest on long-term debt and fiscal charges 17,607 - - - - (17,607) - (17,607) Total governmental activities 513,224 - 47,529 50,327 31,064 (384,304) - (384,304) Business-Type Activities:

Electric 409,674 - 429,853 - 7,553 - 27,732 27,732
Water 80,452 - 81,425 - 6,532 - 7,505 7,505
Sewer 69,465 - 75,395 - 5,123 - 11,053 11,053
Airport 2,438 - 2,039 46 69 - (284) (284)
Refuse 35,717 - 33,444 - - - (2,273) (2,273)
Transportation 5,648 - 276 3,591 1,066 - (715) (715)
Public Parking 8,046 - 10,228 - - - 2,182 2,182
Civic Entertainment 31,557 - 22,000 - - - (9,557) (9,557) Total business-type activities 642,997 - 654,660 3,637 20,343 - 35,643 35,643 Total primary government $ 1,156,221 $ - $ 702,189 $ 53,964 $ 51,407 $ (384,304) $ 35,643 $ (348,661) General Revenues:

Taxes:

Sales taxes 174,300 - 174,300
Property taxes 90,383 - 90,383
Utility users' taxes 32,218 - 32,218
Franchise taxes 6,694 - 6,694
Transient occupancy taxes 8,778 - 8,778
Intergovernmental, unrestricted 1,097 - 1,097
Investment income 23,089 31,514 54,603
Miscellaneous 6,193 8,392 14,585
Transfers 43,554 (43,554) -
Total general revenues and transfers 386,306 (3,648) 382,658 Change in net position 2,002 31,995 33,997
Net Position:

Beginning of year, as previously stated 1,194,730 1,170,614 2,365,344 Error correction - 2,616 2,616
Beginning of year, as restated $ 1,194,730 $ 1,173,230 $ 2,367,960 End of year $ 1,196,732 $ 1,205,225 $ 2,401,957
See Notes to Financial Statements
21 CITY OF RIVERSIDE

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
General Fund
Capital Outlay
Fund
General Debt
Service Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
Assets:

Cash and investments $ 218,709 $ 103,537 $ 6,485 $ 115,244 $ 443,975 Cash and investments with fiscal agent 60,166 6 7,331 330 67,833 Receivables, net of allowance for uncollectible
Interest 1,131 521 12 582 2,246
Property taxes 1,884 - 49 88 2,021
Sales taxes 30,250 - - - 30,250
Utility billed 1,347 - - - 1,347
Utility unbilled 1,198 - - - 1,198
Accounts 9,258 451 - 168 9,877
Intergovernmental 4,182 3,195 - 16,464 23,841
Notes 10 - - 51,198 51,208
Leases receivable 10,554 - - - 10,554
Prepaid items 1,978 - - 156 2,134
Due from other funds 3,225 - - - 3,225
Land and improvements held for resale 175 - - 1,129 1,304 Advances to other funds 2,000 - - - 2,000
Total assets $ 346,067 $ 107,710 $ 13,877 $ 185,359 $ 653,013 Liabilities, Deferred Inflows of Resources, and Fund
Balances:

Liabilities:

Accounts payable $ 9,982 $ 7,964 $ 56 $ 6,320 $ 24,322
Accrued payroll 18,008 - - 71 18,079
Retainage payable 2 368 - 642 1,012
Intergovernmental 178 - - 5 183
Unearned revenue - 221 - 58,931 59,152
Deposits 12,263 - - 35 12,298
Due to other funds - - - 1,549 1,549
Advances from other funds - - 820 - 820
Total liabilities 40,433 8,553 876 67,553 117,415
Deferred Inflows of Resources:

Unavailable revenue 7,422 842 - 52,156 60,420
Lease related items 10,354 - - - 10,354
Total deferred inflows of resources 17,776 842 - 52,156 70,774 Fund Balances:

Nonspendable:

Inventories, prepaids, and deposits 1,978 - - 156 2,134 Advances and notes 1,810 - - - 1,810
Land and improvements held for resale 175 - - - 175
Permanent fund principal - - - 1,676 1,676
Restricted:

Housing and redevelopment - - - 11,290 11,290
Debt service - - 13,001 - 13,001
Transportation and public works - 40,963 - 41,622 82,585 Other purposes - - - 10,906 10,906
Unfunded accrued liability 60,166 - - - 60,166
Committed:

Economic contingency 77,246 - - - 77,246
Other purposes 60,815 23,365 - - 84,180
Assigned:

General government 11,649 - - - 11,649
Public safety 6,615 - - - 6,615
Highways and streets 5,788 - - - 5,788
Culture and recreation 2,120 - - - 2,120
Continuing projects 7,407 33,987 - - 41,394
Unassigned 52,089 - - - 52,089
Total fund balances 287,858 98,315 13,001 65,650 464,824 Total liabilities, deferred inflows of resources, and
fund balances $ 346,067 $ 107,710 $ 13,877 $ 185,359 $ 653,013 See Notes to Financial Statements
22 CITY OF RIVERSIDE

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
(amounts expressed in thousands)
Total fund balances - governmental funds $ 464,824
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and, therefore, are not reported as assets in the governmental funds 1,338,546
Lease and subscription assets, net of accumulated amortization, used in governmental activities and are not current financial resources and, therefore, are not reported as assets in the governmental funds 2,429 Deferred outflows on refunding charges are not available resources and, therefore, are not reported on the funds 1,111 Deferred outflows on pension related items 164,301
Deferred outflows on OPEB related items 5,259
Deferred inflows on pension related items (5,117)
Deferred inflows on OPEB related items (6,686)
Revenue not available to pay for current period expenditures are reported as unavailable revenue in the governmental funds 60,420 Accrued interest payable for the current portion of interest due on various debt issues has not been reported in the governmental funds (1,876) Long-term liabilities, as listed below, are not due and payable in the current period and, therefore, are not reported in the governmental funds General obligation bonds (1,756)
Pension obligation bonds (309,892)
Certificates of participation (75,067)
Lease revenue bonds (61,163)
Financed purchase (15,315)
Compensated absences (34,040)
Net pension liability (252,026)
OPEB liability (27,227)
Lease liability (566)
SBITA liability (1,118) (778,170)
The City uses derivative instruments to hedge its exposure to changing interest rates through the uses of interest swaps. The following related items have been reflected in the Statement of Net Position:

Net fair value of interest rate swaps (2,261)
Deferred amount related to the hedgeable portion of derivative instrument 1,035 (1,226) 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. (47,083) Net position of governmental activities $ 1,196,732
See Notes to Financial Statements
23 CITY OF RIVERSIDE

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
General Fund
Capital Outlay
Fund
General Debt
Service Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
Revenues:

Taxes $ 310,828 $ - $ 1,545 $ - $ 312,373
Licenses and permits 12,617 - - 3,875 16,492
Intergovernmental 3,523 12,186 - 62,802 78,511
Charges for services 13,628 - - 1,823 15,451
Fines and forfeitures 993 - - - 993
Special assessments 482 1,006 1,235 5,864 8,587
Rental and investment income 15,754 2,989 457 3,639 22,839 Miscellaneous 532 341 - 1,506 2,379
Total revenues 358,357 16,522 3,237 79,509 457,625
Expenditures:

Current:

General government 17,141 - - 15,043 32,184
Public safety 222,242 - - 15,467 237,709
Highways and streets 24,703 - - 674 25,377
Culture and recreation 38,598 - - 4,638 43,236
Capital outlay 5,300 30,916 - 37,312 73,528
Debt service:

Principal 2,458 - 20,878 151 23,487
Interest and fiscal charges 424 - 17,226 44 17,694
Issuance costs - - 247 - 247
Total expenditures 310,866 30,916 38,351 73,329 453,462 Excess/(deficiency) of revenues
over/(under) expenditures 47,491 (14,394) (35,114) 6,180 4,163 Other Financing Sources/(Uses):

Transfers in 57,065 33,050 33,802 2,213 126,130
Transfers out (76,027) (3,142) - (3,407) (82,576)
Issuance of long-term debt - - 21,190 - 21,190
Premium on issuance of long-term debt - - 2,435 - 2,435 Proceeds from sale of capital assets 4,388 - - 1 4,389
Payment to refunding escrow agent - - (23,371) - (23,371) Issuance of debt related to leases and
subscriptions 1,564 - - 150 1,714
Total other financing sources/(uses) (13,010) 29,908 34,056 (1,043) 49,911 Net change in fund balances 34,481 15,514 (1,058) 5,137 54,074 Fund Balances:

Beginning of year 253,377 82,801 14,059 60,513 410,750
End of year $ 287,858 $ 98,315 $ 13,001 $ 65,650 $ 464,824 See Notes to Financial Statements
24 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 YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Net change in fund balances - total governmental funds $ 54,074 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 costs of those assets is allocated over their estimated useful lives as depreciation and amortization expense.

Capital outlay $ 65,442
Depreciation expense (50,807)
Lease and subscription amortization expense (1,950)
Gain/(Loss) on sale of capital assets (6,899) 5,786
Repayment of long-term debt principal is an expenditure 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 increase 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
Issuance of long-term debt (23,625)
Lease and SBITA proceeds (1,714)
Payment to refunding escrow agent 23,371
Principal repayments
General obligation bonds 1,640
Pension obligation bonds 7,275
Certificates of participation 5,039
Lease revenue bonds 3,539
Financed purchase 3,484
Lease liability 379
SBITA liability 2,128
Amortization of bond premium/discount 680 22,196
The City uses derivative instruments to hedge its exposure to changing interest rates through the uses of interest swaps. The changes in the fair value of the interest swaps are only reflected on the Statement of Activities (146) Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Changes in accrued interest (160)
Changes in compensated absences (3,080)
Changes in net pension liability and related deferred outlows and inflows of resources (40,451) Changes in OPEB liability and related deferred outflows and inflows of resources (1,620) (45,311) Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity 8,253
Internal service funds are used by management to charge the costs of insurance, central purchasing and fleet management to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities (42,850) Change in net position of governmental activities $ 2,002 See Notes to Financial Statements
25 CITY OF RIVERSIDE

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES, IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Budgeted Amounts Actual
Variance to
Final Budget
Positive
Original Final Amounts (Negative)
Revenues:

Taxes $ 291,214 $ 310,759 $ 310,828 $ 69
Licenses and permits 10,852 13,227 12,617 (610)
Intergovernmental 1,439 1,611 3,523 1,912
Charges for services 16,033 16,618 13,628 (2,990)
Fines and forfeitures 1,923 1,919 993 (926)
Special assessments 551 551 482 (69)
Rental and investment income 3,004 4,293 15,754 11,461
Miscellaneous 772 1,204 532 (672)
Total revenues 325,788 350,182 358,357 8,175
Expenditures:

General government:

Mayor 1,141 1,179 1,059 120
Council 1,763 2,087 2,214 (127)
Manager 9,812 11,659 8,219 3,440
Attorney 6,887 7,502 6,922 580
Clerk 2,372 2,705 2,333 372
Community development 20,986 26,051 16,144 9,907
Human resources 4,974 5,963 5,219 744
Housing and human services - 6,191 4,112 2,079
General services 7,499 8,766 7,511 1,255
Finance 10,452 736 9,677 (8,941)
Innovation and technology 15,919 18,403 14,050 4,353
Subtotal 81,805 91,242 77,460 13,782
Allocated expenditures - General Government (56,395) (60,380) (60,319) (61) Total general government 25,410 30,862 17,141 13,721
Public safety:

Police 138,753 146,798 140,883 5,915
Fire 71,276 79,631 73,130 6,501
Animal regulation 3,541 5,080 4,065 1,015
Building and zoning inspection 4,093 5,124 4,164 960
Total public safety 217,663 236,633 222,242 14,391
Highways and streets 25,317 30,502 24,703 5,799
Culture and recreation:

Library 8,697 10,116 8,681 1,435
Museum and cultural affairs 2,445 3,244 2,236 1,008
Parks, recreation and community services 25,693 30,843 27,681 3,162 Total culture and recreation 36,835 44,203 38,598 5,605 Capital outlay 2,150 13,937 5,300 8,637
Debt service:

Principal - - 2,458 (2,458)
Interest and fiscal charges - - 424 (424)
Total expenditures 307,375 356,137 310,866 45,271
Other Financing Sources/(Uses):

Transfers in 64,203 83,129 57,065 (26,064)
Transfers out (72,444) (108,875) (76,027) 32,848
Proceeds from sale of capital assets - 1,934 4,388 2,454 Issuance of debt related to leases and subscriptions - - 1,564 1,564 Total other financing sources/(uses) (8,241) (23,812) (13,010) 10,802 Net change in fund balance 10,172 (29,767) 34,481 64,248 Fund Balance:

Beginning of year - - 253,377 253,377
Ending of year $ 263,549 $ 223,610 $ 287,858 $ 64,248
See Notes to Financial Statements
26 CITY OF RIVERSIDE

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Assets:

Current assets:

Cash and investments $ 258,200 $ 53,449 $ 120,462 $ 29,426 $ 461,537 $ 44,247 Receivables, net of allowance for
uncollectible
Interest 1,626 2,980 619 166 5,391 226
Utility billed 18,372 4,697 4,144 1,920 29,133 -
Utility unbilled 17,496 3,983 2,496 1,202 25,177 -
Accounts 5,581 1,592 451 1,351 8,975 707
Property taxes - - - 5 5 -
Intergovernmental 356 1,589 2,006 1,049 5,000 76
Leases receivable 1,343 847 - 282 2,472 -
Inventory 1,464 - 3,494 80 5,038 10,087
Prepaid items 2,994 218 13 71 3,296 -
Deposits 1,529 - - 300 1,829 -
Restricted assets:

Cash and cash equivalents
Rate stabilization cash and cash
equivalents - - 1,000 - 1,000 -
Other restricted cash and cash
equivalents 90,274 12,993 - 2,500 105,767 -
Benefit/Conservation Programs
receivable 1,221 26 - - 1,247 -
Total current assets 400,456 82,374 134,685 38,352 655,867 55,343 Noncurrent assets:

Restricted assets:

Cash and cash equivalents at fiscal
agent 127,743 34,555 - - 162,298 -
Cash and investments at fiscal agent 48,530 1,840 793 366 51,529 - Leases receivable 11,069 88,722 - 4,592 104,383 -
Prepaid items noncurrent 11,025 - - - 11,025 -
Advances to other funds - - 820 - 820 -
Regulatory assets 2,109 1,332 1,065 8,460 12,966 -
Derivative instruments - - - 1,108 1,108 -
Advances to Successor Agency Trust
Fund 1,555 - - - 1,555 -
Capital assets, not depreciated 152,320 85,725 29,513 23,074 290,632 670 Capital assets, net of depreciation 624,143 448,738 481,150 117,813 1,671,844 8,487 Lease and subscription assets, net of
amortization 410 28 179 108 725 23
Total noncurrent assets 978,904 660,940 513,520 155,521 2,308,885 9,180 Total assets 1,379,360 743,314 648,205 193,873 2,964,752 64,523 Deferred Outflows of Resources:

Changes in derivative values - - - 449 449 -
Deferred charge on refunding 2,155 4,482 - 513 7,150 -
Pension related items 31,018 10,138 6,964 4,917 53,037 2,536 OPEB related items 1,498 610 397 345 2,850 178
Total deferred outflows of
resources 34,671 15,230 7,361 6,224 63,486 2,714
See Notes to Financial Statements
27 CITY OF RIVERSIDE

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Liabilities:

Current liabilities:

Accounts payable 19,704 6,302 2,060 7,288 35,354 751
Accrued payroll 1,376 501 319 294 2,490 117
Retainage payable 206 1,335 298 164 2,003 -
Unearned revenue 762 55 - 107 924 -
Deposits 12,881 1,040 6 850 14,777 -
Accrued interest 9,816 2,512 6,191 41 18,560 -
Due to other funds - - - 233 233 1,443
Benefit/Conservation Programs
payable 750 53 - - 803 -
Long-term obligations 23,680 10,669 13,178 6,309 53,836 628 Compensated absences 5,335 2,034 1,308 556 9,233 355
Claims and judgments - - - - - 16,921
Landfill capping - - - 559 559 -
Decommissioning liability 12,244 - - - 12,244 -
OPEB liability 397 162 113 99 771 46
Lease liability 132 5 4 78 219 4
SBITA liability 50 2 70 1 123 1
Total current liabilities 87,333 24,670 23,547 16,579 152,129 20,266 Noncurrent liabilities:

Long-term obligations 712,106 266,134 333,217 66,829 1,378,286 4,147 Compensated absences 2,065 643 288 121 3,117 50
Advances from other funds - - - 2,000 2,000 -
Claims and judgments - - - - - 84,696
Landfill capping - - - 8,385 8,385 -
Decommissioning liability 33,838 - - - 33,838 -
Regulatory liability - 4,516 16,037 45 20,598 -
Derivative instruments - 831 - 980 1,811 -
Net pension liability 44,227 14,455 9,930 7,010 75,622 3,614 OPEB liability 10,049 4,103 2,860 2,507 19,519 1,167
Lease liability 162 16 16 30 224 16
SBITA liability 46 - 72 - 118 -
Total noncurrent liabilities 802,493 290,698 362,420 87,907 1,543,518 93,690 Total liabilities 889,826 315,368 385,967 104,486 1,695,647 113,956 Deferred Inflows of Resources:

Change in derivative values - 583 - 1,081 1,664 -
Deferred charges on refunding - - 551 - 551 -
Pension related items 1,892 618 425 301 3,236 154
OPEB related items 2,038 806 490 459 3,793 210
Lease related items 11,741 101,497 - 4,884 118,122 -
Total deferred inflows of
resources 15,671 103,504 1,466 6,725 127,366 364
Net position:

Net investment in capital assets 230,789 304,422 174,764 75,447 785,422 9,159 Restricted net position:

Debt service 23,981 9,928 5,120 - 39,029 -
Landfill capping - - - 2,500 2,500 -
Regulatory requirements 34,261 - 2,707 - 36,968 -
Public Benefit Programs 32,482 - - - 32,482 -
Water Conservation Program - 3,720 - - 3,720 -
Unfunded accrued liability 3,510 1,157 793 366 5,826 -
Unrestricted/(deficit) 183,511 20,445 84,749 10,573 299,278 (56,242) Total net position $ 508,534 $ 339,672 $ 268,133 $ 88,886 $ 1,205,225 $ (47,083) See Notes to Financial Statements
28 CITY OF RIVERSIDE

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Operating Revenues:

Charges for services $ 429,853 $ 81,425 $ 75,395 $ 67,987 $ 654,660 $ 37,311 Total operating revenues 429,853 81,425 75,395 67,987 654,660 37,311 Operating Expenses:

Personnel services 61,936 18,805 13,585 11,888 106,214 6,099 Contractual services 8,399 2,598 1,149 20,565 32,711 859 Maintenance and operation 251,850 12,565 11,094 14,978 290,487 4,206 General 17,510 15,094 6,323 23,729 62,656 7,341
Materials and supplies 1,526 1,994 7,402 2,215 13,137 194 Claims/Insurance 4,238 1,240 1,665 962 8,105 64,206
Depreciation 38,081 16,753 14,872 5,882 75,588 1,169
Amortization 200 15 70 646 931 9
Total operating expenses 383,740 69,064 56,160 80,865 589,829 84,083 Operating income/(loss) 46,113 12,361 19,235 (12,878) 64,831 (46,772) Nonoperating Revenues/(Expenses):

Grant subsidies - - - 4,303 4,303 -
Interest revenue 18,715 7,019 4,730 1,050 31,514 2,126
Interest expense and fiscal charges (25,934) (11,388) (13,305) (2,541) (53,168) (185) Capital improvement fees - - 65 - 65 -
Other 3,595 3,400 88 998 8,081 1,900
Gain/(loss) on disposal of capital assets 429 (173) 66 (76) 246 47 Total nonoperating
revenues/(expenses) (3,195) (1,142) (8,356) 3,734 (8,959) 3,888 Income/(loss) before
contributions and operating
transfers 42,918 11,219 10,879 (9,144) 55,872 (42,884)
Capital contributions 7,553 6,532 5,123 469 19,677 34
Transfers in - - - 11,955 11,955 -
Transfers out (45,289) (8,108) - (2,112) (55,509) -
Change in net position 5,182 9,643 16,002 1,168 31,995 (42,850) Net Position:

Beginning of year, as previously stated 503,352 327,413 252,131 87,718 1,170,614 (4,233) Error correction - 2,616 - - 2,616 -
Beginning of year, as restated 503,352 330,029 252,131 87,718 1,173,230 (4,233) End of year $ 508,534 $ 339,672 $ 268,133 $ 88,886 $ 1,205,225 $ (47,083) See Notes to Financial Statements
29 CITY OF RIVERSIDE

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Cash Flows from Operating Activities:

Cash received from customers and users $ 424,286 $ 80,539 $ 76,455 $ 71,525 $ 652,805 $ 2 Cash received from interfund services provided - - - - - 36,944 Cash paid to suppliers for goods or services (279,482) (29,278) (29,533) (59,395) (397,688) (29,797) Cash paid to employees for services (53,663) (15,869) (11,563) (10,405) (91,500) (5,464) Net cash provided/(used) by operating
activities 91,141 35,392 35,359 1,725 163,617 1,685
Cash Flows from Non-Capital Financing
Activities:

Transfers in - - - 11,956 11,956 -
Transfers out (45,289) (8,108) - (2,112) (55,509) -
Payment received from other funds - - - 233 233 798
Payment receipt from advances to other funds 448 - 311 2,000 2,759 - Debt service payment on pension obligation
bonds (5,118) (1,640) (1,021) (678) (8,457) (349)
Other non-operating receipts 3,296 2,908 88 670 6,962 1,897 Grant subsidies (repayments) - - - (1,295) (1,295) -
Net cash provided/(used) by non-capital
financing activities (46,663) (6,840) (622) 10,774 (43,351) 2,346 Cash Flows from Capital and Related Financing
Activities:

Purchase of capital assets (27,366) (30,154) (8,980) (3,384) (69,884) (1,905) Proceeds from sales of capital assets 1,018 258 228 161 1,665 74 Proceeds from revenue bonds, including
premium 283,940 - - - 283,940 -
Principal paid on long-term obligations (17,515) (8,188) (11,460) (5,421) (42,584) - Interest paid on long-term obligations (23,600) (11,646) (15,536) (2,569) (53,351) (186) Bond issuance costs (4,588) - - - (4,588) -
Refunding Escrow Agent (134,114) - - - (134,114) -
Contributions 4,701 2,491 5,015 469 12,676 34
Lease and subscription payments (241) (15) (90) (91) (437) (11) Net cash provided/(used) by capital and
related financing activities 82,235 (47,254) (30,823) (10,835) (6,677) (1,994) Cash Flows from Investing Activities:

Proceeds/(purchase) from/(of) investment
securities 9,605 (1,840) (793) (366) 6,606 -
Interest from investments 18,122 4,382 4,508 1,006 28,018 2,038 Net cash provided/(used) by investing
activities 27,727 2,542 3,715 640 34,624 2,038
Net increase/(decrease) in cash and cash
equivalents 154,440 (16,160) 7,629 2,304 148,213 4,075
Cash and cash equivalents at beginning of year
(excluding noncurrent cash and investments at
fiscal agent) 321,777 117,157 113,833 29,622 582,389 40,172 Cash and cash equivalents at end of year
(excluding noncurrent cash and investments
at fiscal agent) $ 476,217 $ 100,997 $ 121,462 $ 31,926 $ 730,602 $ 44,247 See Notes to Financial Statements
30 CITY OF RIVERSIDE

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Reconciliation of Operating Income to Net Cash
Provided/(Used) by Operating Activities:

Operating income/(loss) $ 46,113 $ 12,361 $ 19,235 $ (12,878) $ 64,831 $ (46,772) Adjustments to Reconcile Operating
Income/(Loss) Net Cash Provided/(Used) by
Operating Activities:

Depreciation 38,081 16,753 14,872 5,882 75,588 1,169
Amortization 200 15 70 646 931 9
(Increase)/decrease in utility billed receivable (588) (218) 1,062 256 512 - (Increase)/decrease in utility unbilled receivable (3,878) (577) (80) (105) (4,640) - (Increase)/decrease in accounts receivable 229 29 (84) (5) 169 (581) (Increase)/decrease in property tax receivable - - - (5) (5) - (Increase)/decrease in intergovernmental
receivable (306) (75) 164 3,189 2,972 213
(Increase)/decrease in inventory - - (260) 9 (251) (1,019) (Increase)/decrease in prepaid items 3,065 (6) 5 15 3,079 2 (Increase)/decrease in deposits (116) - - - (116) -
(Increase)/decrease in Benefit/Conservation
Programs receivable (151) 109 - - (42) -
Increase/(decrease) in accounts payable 2,087 3,739 (1,802) 3,496 7,520 (479) Increase/(decrease) in accrued payroll 173 96 62 89 420 20 Increase/(decrease) in retainage payable (559) 391 143 1 (24) - Increase/(decrease) in unearned revenue 448 3 - 35 486 - Increase/(decrease) in deposits payable 1,147 7 - 168 1,322 - Increase/(decrease) in Benefit/Conservation
Programs payable (117) (82) - - (199) -
Increase/(decrease) in compensated absences (78) 192 150 2 266 (61) Increase/(decrease) in claims and judgments - - - - - 48,505 Increase/(decrease) in landfill capping liability - - - (481) (481) - Increase/(decrease) in decommissioning liability (2,791) - - - (2,791) - Changes in net pension liability/(asset) and
related deferred inflows/(outflows) of resources 7,707 2,482 1,720 1,297 13,206 624 Changes in OPEB liability and related deferred
inflows/(outflows) of resources 475 173 102 114 864 55
Total adjustments 45,028 23,031 16,124 14,603 98,786 48,457 Net cash provided/(used) by operating
activities $ 91,141 $ 35,392 $ 35,359 $ 1,725 $ 163,617 $ 1,685 Non-Cash Investing, Capital, and Financing
Activities:

Capital contributions - capital assets $ 2,852 $ 4,041 $ 108 $ - $ 7,001 $ - Reconciliation of Statements of Cash Flows to
Statement of Net Position:

Cash and investments $ 258,200 $ 53,449 $ 120,462 $ 29,426 $ 461,537 $ 44,247 Rate stabilization cash and cash equivalents - - 1,000 - 1,000 - Other restricted cash and cash equivalents 90,274 12,993 - 2,500 105,767 - Cash and cash equivalents at fiscal agent 127,743 34,555 - - 162,298 - Cash and cash equialents at end of year $ 476,217 $ 100,997 $ 121,462 $ 31,926 $ 730,602 $ 44,247 See Notes to Financial Statements
31 CITY OF RIVERSIDE

STATEMENT OF NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Private-Purpose
Trust Fund
Successor
Agency Trust
Fund Custodial Fund
Assets:

Cash and investments $ 34,624 $ 640
Cash and investments with fiscal agent 4,156 13,997
Receivables, net of allowance for uncollectible
Interest 157 5
Property taxes - 62
Accounts 523 -
Intergovernmental 1,123 -
Notes 1,551 -
Direct financing receivable 2,730 -
Leases receivable 187 -
Deposits 2 -
Land and improvements held for resale 5,209 -
Capital assets:

Capital assets, not depreciated 185 -
Total assets 50,447 14,704
Liabilities:

Current liabilities:

Accounts payable 232 -
Accrued interest 2,267 -
Long-term obligations 13,448 -
Due to bond holders - 14,704
Noncurrent liabilities:

Advances from City 1,555 -
Long-term obligations 142,480 -
Total liabilities 159,982 14,704
Deferred Inflows of Resources:

Deferred charges on refunding 483 -
Lease related items 183 -
Total deferred inflows of resources 666 -
Net Position:

Restricted for other governments (110,201) -
Total net position $ (110,201) $ -
See Notes to Financial Statements
32 CITY OF RIVERSIDE

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Private-Purpose
Trust Fund
Successor
Agency Trust
Fund Custodial Fund
Additions:

Property taxes $ 19,108 $ -
Special assessments - 4,286
Rental and investment income 1,234 254
Miscellaneous 71 -
Total additions 20,413 4,540
Deductions:

Professional services and other deductions 1,353 265
Redevelopment projects 221 -
Principal - 2,435
Interest and fiscal charges 5,036 1,995
Total deductions 6,610 4,695
Changes in Net Position 13,803 (155)
Net Position:

Beginning of year (124,004) 155
End of year $ (110,201) $ -
See Notes to Financial Statements
33 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Note 1. Summary of Significant Accounting Policies
The City of Riverside (City) was incorporated on October 11, 1883 as a Charter City a nd 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 operations 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 p urpose is to provide safe and sanitary housing accommodations for persons with low or moderate income. The Housing Authority’s activity h as been combined with that of the primary government because City C ouncil members serve as the Housing Authority’s commissioners and because the City i s financially a ccountable and operationally responsible for all matters.

Riverside Public Financing Authority (Public Financing Authority) was organized in December 1987 by t he City a nd the Redevelopment Agency. 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 b ecame the Successor Agency t o the Redevelopment Agency. The Parking Authority o f the City o f 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 g overnment because City C ouncil members serve as the Public Financing Authority’s board members and because the Public Financing Authority exclusively provides financing assistance to the primary government.

The City i s also financially a ccountable and operationally r esponsible for all matters.

Riverside Municipal Improvements Corporation ( Municipal Improvements Corporation) was created in 1978 and operates under provisions of the Nonprofit Public Benefit Corporation Law of the State of California. The 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 the City Council serve as the Municipal Improvements Corporation’s directors 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 t o the Redevelopment Agency o f the City o f Riverside (Successor Agency) is a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency p ursuant to City Council actions taken on March 15, 2011 and January 10, 2012. The activity of the Successor Agency i s overseen by a n Oversight Board comprised of individuals appointed by various government agencies and the City of Riverside as Successor Agency o f the former Redevelopment Agency. 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 City and the Successor Agency is such that it would be misleading to exclude the Successor Agency from the City’s financial statements. The Successor Agency is presented herein in the City’s fiduciary funds as a private-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 Department, 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 a ctivities of the City a nd its component units. I nterfund activity h as been removed from these statements except for utility charges, as this would distort the presentation of function costs and program revenues. Governmental 34 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
activities, which normally a re supported by t axes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support.

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 decreases in net position may serve as a useful indicator of whether the financial position of the City i s improving or deteriorating.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly i dentifiable 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 i ncluded among program revenues are reported instead as general revenues. Indirect expenses are allocated to the various functions based on a proportionate utilization of the services rendered. Such allocations consist of charges for accounting, human resources, information technology and other similar support services.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary f unds, 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 i s incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied on the property. Grants and similar items are recognized as revenue as soon as all eligibility r equirements have been met. An allowance for doubtful accounts is maintained for the utility and other miscellaneous receivables.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.

Revenues are recognized as soon as they are both measurable and available.

Revenues are considered to be available when they a re collectible within the current period or soon enough thereafter to pay liabilities of the current period.

Revenues are considered to be available if they are generally collected within 60 days after year end, except for revenue associated with neglected property abatement which is eleven (11) 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 a re recorded when a liability is incurred under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property t axes, special assessments, sales taxes, franchise taxes, 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 w hen 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 f und accounts for the construction and installation of street and highway c apital 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.
35 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
The Sewer fund accounts for the activities of the City’s sewer systems.

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.

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

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

Fiduciary f unds include private-purpose trust and custodial funds. The private-purpose trust fund accounts for assets and activities of the dissolved Redevelopment Agency, which is accounted for in the Successor Agency T rust. The custodial funds are used to account for special assessments that service no-commitment debt.

The Permanent fund is a governmental fund that is used to report resources that are legally r estricted to the extent that only e arnings, and not principal, may be used for purposes that support the City’s Library programs. Non-expendable net position on the Statement of Net Position includes $1.7 m illion of permanent fund principal which are considered nonexpendable.

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

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

Proprietary f unds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally r esult from providing services and producing and delivering goods in connection with a proprietary f und’s principal ongoing operations. The Sewer fund also recognizes, as operating revenue, the portion of connection fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as 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 following approaches: the market approach, the cost approach or the income approach.

Cash accounts of all funds are pooled for investment purposes to 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 l iquid and are classified as cash equivalents 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 a pplicable bond covenants.

Restricted cash and investments also include cash set aside for nuclear decommissioning, public benefit programs, regulatory r equirements and rate stabilization because their use is legally r estricted to a specific 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 a nalyzing customer accounts for all balances over 60 days old. The allowance for doubtful accounts is then adjusted at fiscal year-end based on the amount equal to the annual uncollectible accounts. Utility customer closed accounts are written off when deemed uncollectible. Recoveries to utility c ustomer receivables previously w ritten off are recorded when received. For non-utility a ccounts receivables, delinquent notices after 60 days are sent to customers with outstanding balances. After 120 days, accounts still outstanding are referred to 36 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
the City’s collection agency. As of June 30, 2024, the City had an allowance for doubtful account balance of $9,750 for all accounts receivables.

G. Land and Improvements Held of Resale
Land and improvements held for resale were generally a cquired for future development projects. The properties 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 infrastructure assets (e.g., roads, bridges, sidewalks, right of way, and similar items), are reported in the applicable governmental activities and business-type activities of the government-wide financial statements and in the proprietary funds and the fiduciary private-purpose trust fund statements of net position. The government defines capital assets as assets with an initial, individual 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; allocated indirect charges such as engineering, construction and transportation equipment, retirement plan contributions and other 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 are recorded at acquisition value. 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 using the straight-line method. Estimated useful lives used to compute depreciation are as follows:

Buildings 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. Leases and Subscription-Based Information Technology Arrangements Leases are defined by the general government as the right-to-use an underlying asset. As lessee, the City r ecognizes a lease liability a nd an intangible lease asset at the beginning of a lease unless the lease is considered a short-term lease or transfers ownership of the underlying asset. Lease assets are measured based on the net present value of the future lease payments at inception, using the weighted average cost of capital, which approximate the incremental borrowing rate. Re-measurement of a lease liability o ccurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The City calculates the amortization of the discount on the lease liability a nd report that amount as outflows of resources. Payments are allocated first to accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations but are recognized as outflows of resources in the period in which the obligation was incurred. As lessor, the City r ecognizes a lease receivable. The lease receivable is measured using the net present value of future lease payments to be received for the lease term and deferred inflow of receivables at the beginning of the lease term. Periodic amortization of the discount on the receivable are reported as interest revenue for that period. Deferred inflows of resources are recognized as inflows on a straight-line basis over the term of the lease. This recognition does not apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain regulated leases. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivables occur when there are modifications, including but not limited to changes in the contract price, lease term, and adding or removing an underlying asset to the lease agreements. In the case of a partial or full lease termination, the carrying value of the lease receivable and the related deferred inflow of resources will be reduced and will include a gain or loss for the difference. For lease contracts that are short-term, the City r ecognizes short- 37 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
term lease payments as inflows of resources (revenues) based on the payment provisions of the lease contract. Liabilities are only recognized if payments are received in advance, and receivables are only r ecognized if payments are received subsequent to the reporting period. Leases between the Airport System and air carriers and other aeronautical users are subject to external laws and regulations. As permitted by GASB No. 87, paragraph 43, the Airport System recognizes inflows of resources based on the payment provisions of the lease contract, and the accounting policies do not apply to regulated leases.

Subscription-Based Information Technology A rrangements (SBITAs) are contracts that convey c ontrol of the right-to-use another party’s information technology (IT) software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction. To determine whether a contract conveys control of the right-to-use the underlying IT assets, the City assesses both the right to obtain the present service capacity from use of the underly ing IT assets and the right to determine the nature and manner of use of the underlying IT assets as specified in the contract. Contracts that solely provide IT support services are excluded from the definition of a SBITA. The subscription term is the period during which the City has a noncancellable right-to-use the underlying IT assets, plus the periods covered by t he City’s option to extend the SBITA if it is reasonably c ertain, based on all relevant factors, that the government will exercise that option.

Periods for which both the government and the SBITA vendor have an option to terminate the SBITA without permission from the other party (or if both parties have to agree to extend) are cancellable periods and are excluded from the subscription term.

L. Compensated Absences
City e mployees 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 to policy, and unused vacation is paid in cash upon separation.

City e mployees generally r eceive one day o f sick leave for each month of employment with unlimited accumulation. Upon retirement or death, 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 f unds is recorded as an expense and as a liability of those funds as the benefits accrue to employees.

M. Derivative Instruments
The City’s derivative instruments are accounted for in accordance with Government Accounting 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 debt 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 7 for further discussion related to the City’s interest rate swaps.

Various transactions permitted in the Utility’s Power Resources Risk Management Policies may be considered derivatives, including energy a nd/or gas transactions for swaps, options, forward arrangements and congestion revenue rights. The City h as determined that all of its contracts including congestion revenue rights fall under the scope of “normal purchases and normal sales” and are exempt from GASB 53.

N. 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 the government-wide financial statements and in the proprietary funds and fiduciary funds statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.

Bonds payable are reported net of the applicable bond premium or discount.

Any liability f or arbitraged interest is recorded in the fund incurring the liability and interest income is reduced by t he amount of liability i ncurred during the 38 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
year. As of June 30, 2024, the City h as an arbitrage liability r elated to Water Revenue Bonds, 2022A.

In the fund financial statements, government fund types recognize 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 discounts on debt issuance are reported as other financing uses.

Decommissioning
The City h as a 1.79 percent undivided ownership interest in Units 2 and 3 of San Onofre Nuclear Generating Station (SONGS), located south of the City of San Clemente in northern San Diego County. Both Units 2 and 3 of SONGS were permanently retired on June 2013. Consequently, the units are no longer a source of supply for the Electric Utility, but remain associated with certain of its costs, including those associated with the units' shutdown and decommissioning (see Note 13 for nuclear decommissioning liability).

The other owners are SCE, with a 78.21 percent interest (including the 3.16 percent interest it acquired from the City of Anaheim in 2006), and San Diego Gas & Electric Company (SDG&E), with a 20.00 percent interest.

In 2005, the California Public Utilities Commission (CPUC) authorized a project to install four new steam generators in Units 2 and 3 at SONGS and remove and dispose of the predecessor generators. SCE completed the installation of these steam generators in 2010 and 2011 for Units 2 and 3, respectively. The Electric Utility's share of the cost to replace the steam generators was approximately $ 13.4 million. Replacement of the steam generators was expected to enable plant operations to continue through at least 2022, and perhaps beyond, subject to the approval of the NRC
In January 2012, a water leak occured in one of the heat transfer tubes of Unit 3's steam generators, causing it to be shut down. At that time, Unit 2 was off- line for a planned outage when unexpected wear in areas of tube-to-support structure were found. Units 2 and 3 remained offline for extensive inspections, testing and analysis of their system generators. On June 7, 2013, SCE unilaterally announced its plan to retire Units 2 and 3 permanently.

As a result of SCE's decision to permanently retire SONGS Units 2 and 3, the decommissioning phase of the plant began in June 2013. The process of decommissionining the nuclear power plant is expected to take many years and is governed by N RC regulations. According to SCE's decommissioning cost estimate document as of March 2018 in 2017 dollars, total decommissioning costs for Units 2 and 3 were estimated at $4.7 billion, of which the Electric Utility's share was $84 million.

In August 2021, SCE provided the updated decommissioning cost estimate document in 2020 dollars. According to the update, total decommissioning costs for Units 2 and 3 are estimated at $5.2 billion, of which the Electric Utility's share is $93.8 million.

As of June 30, 2024, the Electric Utility h as set aside $45,009 i n cash investments with the trustee and $10,885 i n an designated decommissioning reserve for the Electric Utility’s estimated share of the decommissioning costs.

Increases to the funds held for decommissioning liability a re from investment earnings. The investment earnings are included in investment income 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 decommissioning liability are from actual funds drawn from the trust for decommissioning costs invoiced by SCE.

On February 2 3, 2016, the City C ouncil 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 Utility began drawing decommissioning trust funds to pay for decommissioning costs in the fiscal year ended June 30, 2017. As of June 30, 2024, the Electric Utility has paid to date $49,537 i n decommissioning obligations which have been reimbursed by t he trust funds.

O. Claims and Judgments Payable
Claims and judgments payable are recognized when it is probable that 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, 2024, the City had an obligation related to claims and judgments which is reflected as a liability o n the government-wide statements and is more fully described in Note 11.
39 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
P. 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 amounts, long-term loans, and notes receivable, unless the proceeds are restricted, committed or assigned. Also, amounts that must be maintained intact legally o r contractually, such as the principal of a permanent fund are reported within the nonspendable category.  Restricted fund balance is the portion of fund balance that is subject to externally e nforceable limitations by l aw, enabling legislation or 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 C ouncil through adoption of a resolution prior to the end of the fiscal year.

Once adopted, the limitation imposed by r esolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. On September 6, 2016, the City Council approved the General Fund Reserve Policy s etting a 10% minimum i n the Emergency R eserve and 5% in the Contingency Reserve with an aspirational goal of 15% in the Emergency Reserve.

The Emergency R eserve was established for the purpose of addressing any e xtremely u nusual and infrequent occurrences, such as a major natural disaster or a major unforeseen settlement.

Utilization of the Emergency R eserve requires declaration of an emergency b y a two-thirds majority o f the City C ouncil, and specification of the maximum dollar amount to be used. The Contingency R eserve was established for the purpose of providing a “bridge” to facilitate 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 R eserve, including specification of the maximum dollar amount to be used, requires approval by a t wo-thirds majority o f the City C ouncil. The reserves committed at June 30, 2024 w ere calculated utilizing fiscal year 2024-2025 a dopted General Fund expenditure budget, including appropriation adjustments, of $361,227.

On April 2, 2019, the City C ouncil approved the General Fund - Measure Z Contingency R eserve Policy s etting a required $5,000 i n 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 t han making immediate and drastic budget reductions without the time for proper evaluation.

Utilization of the Contingency R eserve, 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 resources.

Intent can be expressed by the City Council or by an official to which the City C ouncil delegates the authority. On February 2 2, 2011, the City C ouncil approved a policy w hereby t he authority t o 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 C ouncil directives. The City a lso uses budget and finance policy t o authorize the assignment of fund balance, which is done through the adoption of the budget and subsequent budget amendments throughout the year.
 Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.

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

Within unrestricted resources, committed resources are used first followed by assigned resources, and finally unassigned resources.
40 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Q. Net Position
Net position represents the difference between assets and deferred outflows less liabilities and deferred inflows. Net position invested in capital assets consists of capital assets, net of accumulated depreciation, lease and subscription assets, net of amortization reduced by the outstanding balances of any borrowings used for the related acquisition, construction or improvement of those assets excluding unspent debt proceeds. Restricted net position represents restricted assets less liabilities and deferred inflows related to those assets. Restricted assets are recorded when there are limitations imposed on their use either through legislation adopted by t he City o r through external restrictions imposed by c reditors, grantors or laws or regulations of other governments. Restricted resources are used first to fund appropriations.

R. Interfund Transactions
Interfund transactions are accounted for as revenues and expenditures or expenses. Transactions, which constitute reimbursements, are eliminated in the reimbursed fund and accounted for as expenditures or expenses in the fund to which the transaction is applicable.

During the year, transactions occur between individual funds for goods provided or services rendered. Related receivables and payables are classified as "due from/to other funds" on the accompanying fund 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 r esidual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
S. 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 r equirements. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized.

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

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

U. 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 assets) 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 assets) that apply to future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time.

V. 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 certain expenses and revenues that would otherwise be recognized when incurred, provided that the City i s recovering or expects to recover or refund such amounts in rates charged to its customers. Accordingly, regulatory a ssets and/or deferred regulatory c harges have been recorded in the Electric, Water, Sewer and Refuse funds.

W. 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 by the counties along with other special district taxes and assessments and voter approved debt. General property t ax revenues are collected and pooled by t he 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 t axes are calculated on assessed values as of January 1 f or 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 two installments. The first 41 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
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 a ccrues only t hose taxes, which are received within sixty days after the year-end. Under the Teeter plan, the County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100% of the levy.

X. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally a ccepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures.

Specifically, the City h as made certain estimates and assumptions relating to the revenues due and expenditures incurred through fiscal year end, collectability o f its receivables, the valuation of property h eld 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.

Y. Pensions
For purposes of measuring the net pension asset/liability a nd deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary n et position of the City o f Riverside California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary n et position have been determined on the same basis as they a re reported by C alPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Z. 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 OPEB liability i s defined as the liability of employers contributing to employees for benefits provided through a defined benefit OPEB plan that is administered through a trust.

AA. New Accounting Pronouncements
The City has adopted and implemented the following Governmental Accounting Standards Board (GASB) pronouncement effective for fiscal year 2023-2024:

GASB Statement No. 99, Omnibus 2022 - This Statement provides clarification on previously i ssued Statement including classification and reporting of derivative instruments within the scope of Statement No. 53 Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument, clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives, clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability P ayment Arrangements, related to (a) the determination of the public-private and public- public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset, clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short-term SBITA, and recognition and measurement of a subscription liability, extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt, accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP), disclosures related to nonmonetary transactions, pledges of future revenues when resources are not received by t he pledging government, clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements, terminology u pdates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and terminology used in Statement 53 to refer to resource flows statements.

GASB Statement No. 100, Accounting Changes and Error Corrections. – This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity a nd describes the transactions or other events that constitute those changes. It prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections, and requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity 42 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
be reported by a djusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. Refer to Note 26 for current year adjustments related to GASB statement No. 100.

The following GASB pronouncement is effective for the succeeding fiscal year:

Fiscal Year 2025
GASB Statement No. 101, Compensated Absences - This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. It also requires that a liability for certain types of compensated absences—including parental leave, military l eave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability f or specific types of compensated absences not be recognized until the leave is used. Further, this Statement establishes guidance for measuring a liability f or leave that has not been used, generally u sing an employee’s pay rate as of the date of the financial statements.

Note 2. Legal Compliance - Budgets
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments within the general, special revenue and capital project funds. Formal budgets are not employ ed for debt service funds because debt indenture provisions specify p ayments. The permanent fund is not budgeted.

Biannually, during the period December through February, department heads prepare estimates of required appropriations for both operating and capital needs for the upcoming fiscal years. These estimates are compiled into a proposed biennial budget that includes a summary of proposed revenues and expenditures, along with historical data for the two preceding fiscal years. The City M anager presents the operating budget and capital improvement plan to the City Council for review, and public hearings are conducted to obtain citizen input. Following a mid-cycle review of the second budget year, the City Manager presents an amended budget proposal. The City Council then conducts a public hearing and re-adopts the budget for the second year, as the City’s Charter requires annual budget adoption. The City M anager is legally a uthorized to transfer budgeted amounts between divisions and accounts within the same department and fund. However, transfers of appropriations between departments or funds, as well as any i ncreases in appropriations, must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations at the departmental level within a fund.

In connection with the preparation of its biennial budgets, the City p repares Five-Year Financial Plans for the General Fund and Measure Z for the purpose of helping City p olicy m akers and management to understand the fiscal gaps that may exist between revenue forecasts and projected expenditure requirements. The Five-Year Financial Plans provide a guide for establishing City d epartment budget targets, which are intended to be used by C ity departments to develop budget proposals that are constrained by the resources anticipated to be available in the upcoming fiscal year.

Note 3. Cash and Investments
Cash and investments at fiscal year-end consist of the following:

Investments $ 1,046,416
Investments with fiscal agent 299,793
1,346,209
Cash on hand and deposits with financial institutions 45,394 Total $ 1,391,603
The amounts are reflected in the statements of net position of the government- wide and fiduciary fund financial statements:

Cash and investments $ 949,759
Restricted cash and cash equivalents 141,322
Restricted cash and investments 247,105
Total per statement of net position 1,338,186
Fiduciary fund cash and investments 35,264
Fiduciary fund cash and investments with fiscal agent 18,153 Total $ 1,391,603
43 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by o utside fiscal agents under the provisions of bond indentures, which are administered by outside agencies.

Interest income earned on pooled cash and investments is allocated monthly to funds based on the beginning and month-end balances. Interest income from cash and investments held at fiscal agents is credited directly t o the related account. Bank deposits are covered by federal depository 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 accordance with California Government Code Section 53601, the City T reasurer may invest or deposit in the following types of investments:

Max
Maturity
Max % of
Portfolio
Max % in
One Issuer
Local Agency Investment Fund (State Pool) N/A N/A N/A
Money Market Mutual Funds N/A %20 %N/A
Mutual Funds N/A %20 %10
Joint Powers Authority Pools N/A N/A N/A
Medium-Term Corporate Notes1 5 years %30 %5
Municipal Bonds1 5 years %30 %5
Negotiable Certificates of Deposit2 5 years %30 %5
Mortgage Pass-Through and Asset-Backed Securities3 5 years %20 %5 Certificates of Deposit Placement Services4 5 years %30 %5 Collateralized Time Deposits4 5 years %30 %5
Federally Insured Time Deposits 5 years %30 %5
Supranational Securities3 5 years %30 %10
Federal Agency Obligations 5 years N/A %25
U.S. Treasury Obligations 5 years N/A N/A
Repurchase Agreements 1 year N/A N/A
Commercial Paper of "prime" quality5 270 days %25 %5
Bankers' Acceptance2 180 days %10 %5
Reverse Repurchase Agreements6 92 days %20 N/A
1 Minimum c redit rating of A (or its equivalent) by a t least one nationally recognized statistical rating organization at the time of purchase 2 Issued by o rganizations having short-term obligations rated A-1 (or its equivalent) and long-term obligations rated A (or its equivalent) by at least one nationally recognized statistical rating organization
3 Minimum c redit rating of AA (or its equivalent) by a t nationally r ecognized statistical rating organization
4 Or no more than 15% of the portoflio may be invested in any combination of non-negotiable certificates of deposit as set forth in Federally I nsured Time Deposits, Collaterized Time Deposits, and Certificate of Deposit Placement Services. No more than 30% of the portfolio may be invested in any combination of non-negotiable or negotiable certificates of deposit 5 Or no more than 10% of outstanding commercial paper of any single issuer may be purchased
6 Securities sold pursuant to a reverse purchase agreement must have been owned and fully paid for by the City for a minimum of 30 days prior to sale The City’s investment policy p rovides the following three exceptions to the above: (1) investments authorized by debt agreements, (2) investments in the City o f Riverside - 115 Trust for Pension and (3) funds reserved in the San Onofre Nuclear Generating Station Decommissioning Account for which the five-year maturity l imitation may be extended to the term of the operating license.

Investments Authorized by Debt Agreements
Provisions of debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy, govern investments of debt proceeds held by b ond fiscal agents. Permitted investments are specified in related trust agreements and include the following:
 Securities with Direct Obligations of the U.S. Government and its sponsored agencies
 Bankers' Acceptances rated in the single highest classification  Commerical Paper rated AA or higher at the time of purchase  Investments in money m arket 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 Aa2/AA or higher by both Moody's and S&P  Investment Agreements
No maximum percentage of the related debt issue or maximum investment in 44 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
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, 2024, the City h ad $65,992 o f restricted cash and investments reported in a Section 115 Trust restricted for future pension contributions. $60,166 of these funds are in the General Fund, $3,510 are in the Electric Fund, $1,157 are in the Water Fund, $793 are in the Sewer Fund, $38 are in the Airport Fund, $259 are in the Refuse Fund, and $69 are in the Public Parking Fund.

At June 30, 2024, the Plan's assets are being held with two trustees, US Bank and Charles Schwab and Company. The trustees have delegated investment authority to Highmark Capital Management and Shuster Advisory Group, LLC; respectively. Highmark Capital Management and Shuster Advisory Group, LLC are SEC-registered investment advisors, with the full investment discretion over the managed Plan assets. 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: Moderate-Term 3 - 5 years
 Anticipated Cash Flows: Assets in the Plan will seek to mitigate the impact of future rate increases from CalPERS.
 Investment Objective: Moderate Growth
 Risk Tolerance: Moderate Growth
 Strategic Asset Allocation: Moderate Growth
Strategic Asset
Allocation Ranges Policy
Cash 0% - 10% 2%
Fixed income 28% - 48% 38%
Equity 50% - 70% 60%
 Investment Advisor has full investment discretion over the assets in the account that are managed. I nvestment Advisor is authorized to purchase, sell, exchange, invest, re-invest and manage the designated assets held in the account without prior approval or subsequent approval of any o ther party t o the plan. This management shall be based upon the account's investment objectives provided by t he Employer/Plan Sponsor/Plan Administrator.

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 t hat prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identifcal assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy a re described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in an active market
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 markets;  Quoted prices for identical or similar assets or liabilities in markets that are inactive;
 Inputs other than quoted prices that are observable for the asset 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 reflect the City's own assumptions about the inputs market participants would use in pricing the asset or liability ( including assumptions about risk). The unobservable inputs are developed based on the best information available in the circumstances 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 u sing the institutional bond quotes with evaluations based on various market and industry inputs.
45 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
The City h as the following recurring fair value measurements as of June 30, 2024:

Total
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Mortgage Pass-Through Securities $ 31,387 $ - $ 31,387 $ - Asset-Backed Securities 90,836 - 90,836 -
U.S. Treasury Obligations 340,864 - 340,864 -
Federal Agency Obligations 96,756 - 96,756 -
Medium-Term Corporate Notes 208,962 - 208,962 -
Supranational Securities 63,336 - 63,336 -
Held by Fiscal Agent:

Asset-Backed Securities 1,988 - 1,988 -
U.S. Treasury Obligations 34,980 - 34,980 -
Federal Agency Obligations 3,439 - 3,439 -
Medium-Term Corporate Notes 10,715 - 10,715 -
Supranational Securities 3,851 - 3,851 -
Total 887,114 $ - $ 887,114 $ -
Investments not subject to
fair value hierarchy:

Joint Powers Authority 213,275
Local Agency Investment Fund 1,310
Mutual Funds 50,945
Money Market Mutual Funds 193,565
Total Investments $ 1,346,209
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 o f its fair value to changes in market interest rates. The City’s investment policy r equires 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 e venly o ver time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity o f the fair values of the City’s investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by t he following table that shows the distribution of the City’s investments by maturity:

Remaining Maturity (in Months)
Total
12 Months
or Less
13 to 36
Months
37 to 60
Months
More than
60 Months
Money Market Mutual Funds $ 1,000 $ 1,000 $ - $ - $ -
Joint Powers Authority Pools 213,275 213,275 - - -
Mortgage Pass-Through Securities 31,387 9,582 4,492 17,313 - Asset-Backed Securities 90,836 5,097 31,026 54,713 -
U.S. Treasury Obligations 340,864 - 106,948 233,916 -
Federal Agency Obligations 96,756 29,778 40,442 26,536 - Medium-Term Corporate Notes 208,962 31,896 92,070 84,996 - Supranational Securities 63,336 4,140 22,988 36,208 -
Held by Fiscal Agent
Money Market Mutual Funds 192,565 192,565 - - -
Mutual Funds 50,945 50,945 - - -
Local Agency Investment Fund 1,310 1,310 - - -
Asset-Backed Securities 1,988 - 1,343 645 -
U.S. Treasury Obligations 34,980 3,206 20,360 11,225 189 Federal Agency Obligations 3,439 2,196 1,243 - -
Medium-Term Corporate Notes 10,715 3,415 3,588 3,712 -
Supranational Securities 3,851 988 1,916 947 -
Total $ 1,346,209 $ 549,393 $ 326,416 $ 470,211 $ 189
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:
46 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Ratings as of Year End *
Total AAA AA A Unrated
Money Market Mutual Funds $ 1,000 $ 1,000 $ - $ - $ -
Joint Powers Authority Pools 213,275 213,275 - - -
Mortgage Pass-Through Securities 31,387 28,474 2,913 - - Asset-Backed Securities 90,836 69,631 - - 21,205
U.S. Treasury Obligations 340,864 - 340,864 - -
Federal Agency Obligations 96,756 - 96,756 - -
Medium-Term Corporate Notes 208,962 6,325 64,367 102,550 35,720 Supranational Securities 63,336 - - - 63,336
Held by Fiscal Agent
Money Market Mutual Funds 192,565 43,394 - - 149,171
Mutual Funds 50,945 - - - 50,945
Local Agency Investment Fund 1,310 - - - 1,310
Asset-Backed Securities 1,988 949 - - 1,039
U.S. Treasury Obligations 34,980 - 34,980 - -
Federal Agency Obligations 3,439 - 3,439 - -
Medium-Term Corporate Notes 10,715 - 2,502 5,726 2,487
Supranational Securities 3,851 - - - 3,851
Total $ 1,346,209 $ 363,048 $ 545,821 $ 108,276 $ 329,064 *Fitch rating used with "-" and "+" removed for simplicity Concentration on Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stated above. For fiscal year ended June 30, 2024, the City did not have any investments in any one issuer (other than U.S. Treasury s ecurities, money m arket funds, and external 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 f inancial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City’s investment policy r equires that a third-party b ank trust department hold all securities owned by t he City. All trades are settled on a delivery vs. payment basis through the City’s safekeeping agent. The City h as no deposits with financial institutions; bank balances are swept daily i nto a money m arket account.

The pledge to secure deposits is administered by the California Commissioner of Business Oversight. Collateral is required for demand deposits 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 State or its municipalities, school districts, and district corporations are pledged. Collateral of 150% is required if a deposit is secured by f irst mortgages or first trust deeds upon improved residential real property l ocated 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 other than the institution in which 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 C alifornia Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).

The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Investment in Joint Powers Authority
The City is a voluntary participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by t he California Asset Management Trust and created through a joint powers agency a s a pooled short-term porfolio and cash management vehicle for California public agencies under California Government Code Section 53601(p). CAMP is governed by a seven-member Board of Trustees comprised of finance directors and treasurers of California public agencies. The City reports its investments in CAMP at the fair value amounts provided by C AMP, and is exempt from the fair value hierarchy.
47 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Note 4. Direct Financing Receivable
The former Redevelopment Agency had a direct financing arrangement with the State of California (the State) for a twelve-story o ffice building, which was transferred to the Successor Agency. The term is for thirty years and the State takes ownership of the facility a t the conclusion of that term. The financing arrangement calls for semi-annual payments not less than the debt service owed on the related lease revenue bonds issued by the former Redevelopment Agency for the purchase and renovation of the building.

The future minimum payments to be received are as follows:

Fiscal Year
2025 $ 2,823
Less: amount applicable to interest (93)
Total direct financing receivable $ 2,730
48 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Note 5. Capital, Lease, and Subscription Assets
The following is a summary o f changes in the capital assets during the fiscal year ended June 30, 2024:

Governmental Activities:

Beginning
Balance
Additions/
Transfers In
Deletions/
Transfers Out Reclassifications
Ending
Balance
Capital assets, not depreciated:

Land $ 383,379 $ 634 $ (6,479) $ - $ 377,534
Construction in progress 51,002 29,772 (53) (16,175) 64,546 Total capital assets, not
depreciated 434,381 30,406 (6,532) (16,175) 442,080
Capital assets, being depreciated:

Buildings 190,202 - - - 190,202
Improvements other than buildings 273,877 47 - 665 274,589 Machinery and equipment 124,274 11,898 (8,173) 11,447 139,446 Intangibles, depreciable 219 - - - 219
Infrastructure 1,217,228 23,635 (8,900) 4,063 1,236,026 Total capital assets, being
depreciated 1,805,800 35,580 (17,073) 16,175 1,840,482
Less: accumulated depreciation
for:

Buildings (87,797) (4,898) - - (92,695)
Improvements other than buildings (178,993) (11,291) - - (190,284) Machinery and equipment (93,081) (9,206) 7,785 - (94,502) Intangibles, depreciable (219) - - - (219)
Infrastructure (539,478) (26,581) 8,900 - (557,159)
Total accumulated
depreciation (899,568) (51,976) 16,685 - (934,859)
Total capital assets being
depreciated, net 906,232 (16,396) (388) 16,175 905,623
Governmental Activities
capital assets, net $ 1,340,613 $ 14,010 $ (6,920) $ - $ 1,347,703 Lease and subscription assets,
being amortized
Buildings 900 - - - 900
Machinery and equipment 580 413 (409) - 584
Subscription-based information
technology arrangements 3,761 1,376 (1,004) - 4,133
Total lease and
subscription assets 5,241 1,789 (1,413) - 5,617
Less accumulated amortization
Buildings (502) (254) - - (756)
Machinery and equipment (290) (123) 264 - (149)
Subscription-based information
technology arrangements (1,683) (1,580) 1,003 - (2,260) Total lease and
subscription assets
accumulated
amortization (2,475) (1,957) 1,267 - (3,165)
Total lease and
subscription assets, net 2,766 (168) (146) - 2,452
Capital, lease, and
subscription assets, net $ 1,343,379 $ 13,842 $ (7,066) $ - $ 1,350,155 Business-Type Activities:

Beginning
Balance
Additions/
Transfers In
Deletions/
Transfers Out Reclassifications
Ending
Balance
Capital assets, not depreciated:

Land $ 103,456 $ 204 $ - $ (238) $ 103,422
Intangible assets 21,496 - - - 21,496
Construction in progress 131,870 70,011 - (36,167) 165,714 Total capital assets, not
depreciated 256,822 70,215 - (36,405) 290,632
Capital assets, being depreciated:

Buildings 678,748 413 - - 679,161
Improvements other than buildings 2,046,268 35,497 - (3,881) 2,077,884 Machinery and equipment 113,227 10,643 - (1,611) 122,259 Intangibles, depreciable 30,848 610 - - 31,458
Total capital assets, being
depreciated 2,869,091 47,163 - (5,492) 2,910,762
Less: accumulated depreciation
for:

Buildings (227,471) (14,430) - - (241,901)
Improvements other than buildings (836,849) (52,584) - 2,877 (886,556) Machinery and equipment (80,515) (5,639) - 1,407 (84,747) Intangibles, depreciable (22,779) (2,935) - - (25,714)
Total accumulated
depreciation (1,167,614) (75,588) - 4,284 (1,238,918)
Total capital assets being
depreciated, net 1,701,477 (28,425) - (1,208) 1,671,844 Business-Type activities
capital assets, net $ 1,958,299 $ 41,790 $ - $ (37,613) $ 1,962,476 Lease and subscription assets,
being amortized
Land 312 - - - 312
Buildings 348 - - - 348
Machinery and equipment 345 181 (194) - 332
Subscription-based information
technology arrangements 161 353 - - 514
Total lease and
subscription assets 1,166 534 (194) - 1,506
Less accumulated amortization
Land (149) (74) - - (223)
Buildings (149) (75) - - (224)
Machinery and equipment (156) (72) 114 - (114)
Subscription-based information
technology arrangements (74) (146) - - (220)
Total lease and
subscription assets
accumulated
amortization (528) (367) 114 - (781)
Total lease and
subscription assets, net 638 167 (80) - 725
Capital, lease, and
subscription assets, net $ 1,958,937 $ 41,957 $ (80) $ (37,613) $ 1,963,201 49 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Depreciation expense was charged to various functions as follows:

Governmental Activities:

General government $ 3,610
Public safety 8,441
Highways and streets 27,551
Culture and recreation 11,205
Internal service funds 1,169
Total depreciation expense - Governmental
Activities $ 51,976
Business-Type Activities:

Electric $ 38,081
Water 16,753
Sewer 14,872
Airport 751
Refuse 765
Transportation 285
Public Parking 1,004
Civic Entertainment 3,077
Total depreciation expense -
Business-Type Activities $ 75,588
Amortization expense was charged to various functions as follows:

Governmental Activities:

General government $ 1,581
Public safety 71
Highways and streets 10
Culture and recreation 286
Internal service funds 9
Total amortization expense - Governmental
Activities $ 1,957
Business-type Activities:

Electric $ 200
Water 15
Sewer 70
Airport 2
Refuse 5
Transportation 1
Public Parking 74
Total amortization expense - Governmental
Activities $ 367
Note 6. Leases and Subscription-Based Information Technology Arrangements
Leases Receivable
Leases are financings of the right-to-use an underlying asset and a lessor is required to recognize a lease receivable and a deferred inflow of resources.

The City of Riverside has various leases as a Lessor for the use of various land, building and equipment as of the end of the fiscal year. The terms range from 2 to 55 y ears beginning on the contract commencement date. As of June 30, 2024, the value of the lease receivable is $117,409. The leases have interest rates ranging from 0.52% to 3.35%. The value of the deferred inflow of resources as of June 30, 2024 w as $128,476 and the City r ecognized lease revenue of $6,493 during the fiscal year.

Governmental Activities
Fiscal Year Principal Interest Total Payments
2025 $ 1,021 $ 246 $ 1,267
2026 1,059 226 1,285
2027 1,062 206 1,268
2028 957 187 1,144
2029 846 168 1,014
2030-2034 2,049 647 2,696
2035-2039 383 539 922
2040-2044 504 479 983
2045-2049 576 396 972
2050-2054 674 297 971
2055-2059 906 165 1,071
2060-2064 517 20 537
Total $ 10,554 $ 3,576 $ 14,130
50 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2025 $ 2,472 $ 1,969 $ 4,441
2026 2,582 1,947 4,529
2027 2,386 1,924 4,310
2028 1,853 1,916 3,769
2029 1,459 1,902 3,361
2030-2034 5,232 9,199 14,431
2035-2039 4,440 8,370 12,810
2040-2044 8,698 7,434 16,132
2045-2049 9,887 6,561 16,448
2050-2054 11,802 5,572 17,374
2055-2059 13,887 4,420 18,307
2060-2064 16,072 3,060 19,132
2065-2069 17,804 1,523 19,327
2070-2074 8,281 237 8,518
Total $ 106,855 $ 56,034 $ 162,889
Lease Liability
Leases are financings of the right-to-use an underlying asset and a lessee is required to recognize a lease liability and an intangible lease asset.

The City of Riverside has various leases as Lessee for the use of various land, building and equipment as of the end of the fiscal year. The City is required to make principal and interest payments through fiscal year 2029. As of June 30, 2024, the value of the lease liability is $1,029. The leases have an interest rates ranging from 0.52% to 2.50%. The value of the lease asset as of June 30, 2024 of $2,476 w ith accumulated amortization of $1,466 a nd is included with land, buildings, and machinery and equipment on the table below:

Amount of Lease Assets by
Major Classes of Underlying
Asset
Asset Class
Lease Asset
Value
Accumulated
Amortization
Land $ 312 $ (223)
Buildings 1,248 (980)
Machinery and equipment 916 (263)
$ 2,476 $ (1,466)
Governmental Activities:

Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
Lease liability $ 699 $ 413 $ - $ (526) $ 586 $ 212
Business-Type Activities::

Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
Lease liability $ 563 $ 180 $ - $ (300) $ 443 $ 219
Governmental Activities
Fiscal Year Principal Interest Total Payments
2025 $ 212 $ 9 $ 221
2026 129 7 136
2027 97 5 102
2028 85 2 87
2029 63 - 63
Total $ 586 $ 23 $ 609
51 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2025 $ 219 $ 5 $ 224
2026 120 3 123
2027 36 2 38
2028 37 1 38
2029 31 - 31
Total $ 443 $ 11 $ 454
Subscription-Based Information Technology Arrangements Liability The City o f Riverside h as several subscription-based information technology arrangements (SBITA) for the use of various software as of the end of the fiscal year. The City is required to make principal and interest payments through fiscal year 2034. As of June 30, 2024, the value of the subscription liability w as $1,360. The subscriptions have interest rates ranging from 0.52% to 2.78%.

The value of the subscription asset as of June 30, 2024 i s $4,647 w ith accumulated amortization of $2,480.

Governmental Activities:

Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
SBITA liability $ 1,930 $ 1,323 $ - $ (2,134) $ 1,119 $ 405 Business-Type Activities::

Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
SBITA liability $ 86 $ 345 $ - $ (190) $ 241 $ 123
Governmental Activities
Fiscal Year Principal Interest Total Payments
2025 $ 405 $ 19 $ 424
2026 339 12 351
2027 80 9 89
2028 39 8 47
2029 39 7 46
2030-2034 217 14 231
Total $ 1,119 $ 69 $ 1,188
Business-Type Activities
Fiscal Year Principal Interest Total Payments
2025 $ 123 $ 3 $ 126
2026 118 1 119
Total $ 241 $ 4 $ 245
Note 7. Derivative Instruments
Interest Rate Swaps
The City has three cash flow hedging derivative instruments, which were pay- fixed swaps. These swaps were employed as a hedge against debt that was 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 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. Hedge accounting was also applied to the swap associated with the debt issued in 2012, which was also determined to be effective.

In February 2024, the City issued Electric Revenue Bonds 2024A that refunded 100% of the remaining 2008A Electric bonds, 2008C Electric bonds and 2011A Electric bonds. The City h as three remaining cash flow hedging derivative instruments, 2011A Water Bonds, 2008 COPS and 2012 Convention Center 52 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Financing.

The following is a summary of the derivative activity for the year ended June 30, 2024:

Notional
Amount
Fair Value
as of
06/30/24
Change in
Fair Value
for Fiscal
Year
Governmental Activities
2008 Renaissance Certificates of Participation* $ 52,923 $ (2,261) $ 1,120 Business-Type Activities
2008 Renaissance Certificates of Participation* 23,777 (980) 486 2011 Water Refunding/Revenue Bonds Series A 24,050 (831) 546 2012 Convention Center Financing 23,829 1,108 19
* The 2008 Riverside Renaissance Certificates of Participation were distributed between Governmental Activities and Business-Type Activities to properly reflect thier proportional share.

Objective: In order to lower borrowing costs as compared to fixed-rate bonds, the City e ntered into interest rate swap agreements in connection with it's $61,125 2011A Water Revenue Bonds, $128,300 2008 Certificates of Participation (“COP”) and $41,650 Convention Center.

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 the Water swap. 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 financing consists of an initial 21-month variable rate interest only period 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 index plus 150 basis points. The notional value of the swaps and the principal amounts of the associated debt decline at a smaller rate until the debt is completely retired in fiscal year 2037.

The bond and the related swap agreement for the 2011A Water Revenue/Refunding Bonds mature on October 1, 2035. The 2008 Certificates of Participation mature on March 1, 2037. The loan with PNC Bank, N.A. will be paid in full on April 1, 2034.

As of June 30, 2024, rates were as follows:
2011 Water
Refunding/
Revenue
Bonds
Series A
2008
Renaissance
COPs
2012
Convention
Center
Financing
Rates Rates Rates
Interest rate swap:

Fixed payment to counterparty %3.20000 %3.36200 %3.24000 Variable payment from counterparty %(0.93099) %(0.83002) %(2.53304) Net interest rate swap payments %2.26901 %2.53198 %0.70696 Variable rate bond coupon payments %0.81071 %0.70613 %2.53304 Synthetic interest rate on bonds %3.07972 %3.23811 %3.24000 Fair Value: As of June 30, 2024, in connection with all swap arrangements, the transactions had a combined net negative fair value of $2,964. Because the coupons on the City’s variable-rate bonds adjust to changing interest rates, the bonds do not have a corresponding fair value decrease. The fair value was developed by a p ricing service using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by t he yield curve correctly a nticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement of the swap.

Credit risk: The City i s not exposed to substantial credit risk because each swap, with the exception of the Convention Center Financing swap have a negative fair value. The swap counterparties, Bank of America, N.A., PNC Financial Services Group, Inc. and J.P. Morgan Chase & Co. were rated 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 collateralized by t he counterparty w ith U.S. Government securities if the counterparties’ rating decreases to negotiated trigger points. Collateral would be posted with a third-party custodian. At June 30, 2024, there is no requirement 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 variable-rate payments received by t he City o n these hedging derivative instruments are based on a rate or index other than interest rates the city pays on its hedged 53 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
variable-rate debt. If a change occurs that results in the rates’ 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 termination 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 i f either counterparty’s credit quality f alls below “BBB-" as issued by Standard and Poor’s. The City or the counterparty may terminate a swap if the other party f ails to perform under the terms of the contract. If a swap is terminated, the variable-rate bond would no longer carry a s ynthetic 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, 2024, the debt service requirements of the variable-rate debt and net swap payments assuming current interest rates remain the same, for their term are summarized in the following table. As rates vary, variable-rate bond interest payments and net swap payments will vary.

Variable-Rate Bonds
Fiscal Year Principal Interest
Interest Rate
Swaps, Net Total
2025 $ 6,943 $ 1,370 $ 2,736 $ 11,049
2026 7,212 1,278 2,595 11,085
2027 7,481 1,183 2,448 11,112
2028 7,754 1,083 2,296 11,133
2029 7,930 981 2,138 11,049
2030-2034 59,995 2,865 7,053 69,913
2035-2039 28,675 323 1,117 30,115
Total $ 125,990 $ 9,083 $ 20,383 $ 155,456
Note 8. Letters of Credit
The City’s 2008 Certificates of Participation and 2011 Water Revenue Bonds (Series A) require an additional layer of security b etween the City a nd the purchaser of the bonds. The City has entered into the following letters of credit (“LOC”) in order to provide liquidity s hould all or a portion of the debt be optionally tendered to the remarketer without being successfully remarketed:

Debt Issue LOC Provider
LOC
Expiration
Date
Annual
Commitment
Fee
2008 Certificates of Participation Bank of America, N.A. 2026 0.350% 2011A Water Revenue Bonds PNC Bank, N.A. 2025 0.230%
To the extent that remarketing proceeds are insufficient or not available, tendered amounts will be paid from drawings made under an irrevocable 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 semi-annually (2008 COPs) or quarterly ( 2011A Water Bonds) not to exceed a 5-year period. For the 2008 COPs, the City would be required to pay annual interest equal to the Bank Rate in effect on such date plus 3%, where the Bank Rate is currently calculated at the highest of (i) the Prime Rate plus 1%, (ii) the Federal Funds Rate plus 2%, and (iii) 7%. For the 2011A Water Bonds, the City w ould be required to pay annual interest equal to the highest of (i) the Prime Rate plus 3%, (ii) the Overnight Bank Rate plus 3.5%, and (iii) 9%. No amounts have ever been drawn against the two letters of credit due to a failed remarketing. The various indentures allow the City to convert the mode of the debt in the case of a failed remarketing.

On February 1 , 2019, the City e ntered into a subordinate letter of credit agreement with U.S. Bank, National Association. The agreement was renewed on February 1 , 2022. The Subordinate Letter of Credit is a tool approved through the Electric and Water Utility F ive-Year Rate Plan to manage rate increases by enabling the Electric Utility and Water Utility to reduce cash levels while maintaining compliance with the Riverside Public Utilities Cash Reserve Policy. Under the terms and conditions of 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 for purposes of the capital or operating financial needs of the Water System. There were no borrowings against the LOC as of June 30, 2024.
54 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Note 9. Long-Term Obligations
Changes in Long-Term Obligations:

Below is a summary of changes in long-term obligations during the fiscal year:

Governmental Activities:

Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
General obligation bonds $ 3,411 $ - $ - $ (1,655) $ 1,756 $ 1,740 Pension obligation bonds 321,413 - - (7,583) 313,830 9,841 Certificates of participation 80,584 23,625 - (29,142) 75,067 5,034 Lease revenue bonds 65,093 - - (3,930) 61,163 3,588
Direct borrowings:

Financed purchase 19,230 587 - (3,665) 16,152 3,799
$ 489,731 $ 24,212 $ - $ (45,975) $ 467,968 $ 24,002
Business-Type Activities:

Beginning
Balance (As
Corrected) Additions Reclass Reductions
Ending
Balance
Due Within
One Year
Revenue bonds $ 1,163,676 $ 283,940 $ - $ (178,889) $1,268,727 $ 38,515 Arbitrage payable - 673 - - 673 -
Pension obligation bonds 103,705 - - (8,452) 95,253 9,366 Certificates of participation 24,582 - - (1,391) 23,191 1,421 Lease revenue bonds 6,168 - - (480) 5,688 466
Direct borrowings:

Notes payable 39,970 - - (3,445) 36,525 3,567
Contracts payable 933 - - (2) 931 150
Financed purchase 1,476 - - (342) 1,134 351
$ 1,340,510 $ 284,613 $ - $ (193,001) $1,432,122 $ 53,836 Governmental Activities:

General Obligation Bonds - Governmental Activities:

Principal
Outstanding
$20,000 Fire Facility P rojects, Election of 2003 General Obligation Bond; 3.0% to 5.5%, due in annual installments from $410 to $1,740 through August 1, 2024. $ 1,740
Add: unamortized bond premium 16
Total general obligation bonds $ 1,756
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
2025 $ 1,740 $ 48 $ 1,788
Premium 16 - 16
Total $ 1,756 $ 48 $ 1,804
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 t o properly r eflect their proportional share. Pension Obligation bonds are not
collateralized by assets, nor do they constitute an obligation of the City o f Riverside whereby t he City i s obligated to levy o r pledge any form of taxation.
55 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
In 2020, the 2017 Taxable Pension Obligation Bonds
outstanding balances in the Successor Agency were distributed between Governmental Activities and Business-Type 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; $15,299 relates to Governmental Activities. $ 4,993
$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. $324,567 relates to
Governmental Activities 308,951
Subtotal 313,944
Less: unamortized bond discount (114)
Total pension obligation bonds $ 313,830
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
2025 $ 9,841 $ 11,353 $ 21,194
2026 9,884 11,123 21,007
2027 10,966 10,868 21,834
2028 10,343 10,570 20,913
2029 11,500 10,283 21,783
2030-2034 77,652 45,003 122,655
2035-2039 109,392 26,851 136,243
2040-2044 71,447 7,615 79,062
2045-2049 2,919 113 3,032
Discount (114) - (114)
Total $ 313,830 $ 133,779 $ 447,609
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 through September 1, 2036. $ 5
$128,300 2008 Riverside Renaissance Certificates of
Participation are secured with collateral of the Adulka 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 e ntered 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; $89,507 relates to Governmental Activities. 53,509 $21,190 2023 Riverside Public Financing Authority L ocal Measure A Sales Tax Revenue (Installment Sale) Refunding Certificates of Participation. On 7/27/2023 these bonds refunded and replaced the 2013 Pavement Rehab Certificates of
Participation. The City e ntered into an installment sale with a fixed rate of 5%. The annual payments are $1,830 to $2,595 through June 1, 2033. 19,360
Subtotal 72,874
Plus: unamortized bond premium 2,193
Total certificates of participation $ 75,067
Remaining Certificates of Participation debt service payments will be made from unrestricted revenues of the Debt Service Fund. Annual debt service requirements to maturity are as follows:
56 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Fiscal Year Principal Interest Total
2025 $ 5,034 $ 2,740 $ 7,774
2026 5,263 2,540 7,803
2027 5,493 2,332 7,825
2028 5,727 2,115 7,842
2029 5,902 1,888 7,790
2030-2034 30,868 5,702 36,570
2035-2039 14,587 870 15,457
Premium 2,193 - 2,193
Total $ 75,067 $ 18,187 $ 93,254
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 t o properly r eflect their proportional share.

On August 15, 2012, the City i ssued the Series 2012A Lease Revenue Refunding Bonds in the amount of $41,240. T he 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 o n May 1 a nd November 1 of each year, commencing May 1, 2013. The rate of interest varies from 2% to 5% per annum d epending on maturity d ate. P rincipal is payable in annual installments ranging from $1,295 to $2,840 commencing November 1, 2013 and ending November 1, 2033. I n 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. $28,442 relates to
Governmental Activities. $ 16,345
$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 Tyler Mall North Plaza, the North Plaza parking, 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 Participation (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. 12,465
$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 t he City upon issuance of the 2012A Lease Revenue Bonds. It adds the remainder of the City H all 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. 26,075
Subtotal 54,885
Add: unamortized bond premium 6,278
Total lease revenue bonds $ 61,163
Remaining lease revenue bond debt service payments will be made from unrestricted revenues of the Debt Service Fund. Annual debt service requirements to maturity are as follows:
57 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Fiscal Year Principal Interest Total
2025 $ 3,588 $ 2,389 $ 5,977
2026 3,733 2,242 5,975
2027 3,896 2,078 5,974
2028 4,074 1,895 5,969
2029 4,263 1,703 5,966
2030-2034 24,351 5,369 29,720
2035-2039 10,980 788 11,768
Premium 6,278 - 6,278
Total $ 61,163 $ 16,464 $ 77,627
Business-Type Activities:

The following debt has been issued for the purpose of generating capital resources for use in acquiring or constructing municipal facilities 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 b ecome due or upon the entry of any decree or order of bankruptcy of the City.
$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. $ 123,515
$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 r efunded the 2008 Electric Revenue Bonds Series A and C. The refunding transactions resulted in a total net present value savings of $36,810. 232,480
$31,390 2023A Electric Refunding/Revenue Bonds; Series A fixed rate bonds, 5.0%, due in annual installments from $990 to $2,395 through October 1, 2043. T he bonds refunded the 2013A Electric Revenue bonds. 31,390
$213,295 2024 Electric Refunding/Revenue Bonds; Series A fixed rate bonds, 5.0%, due in annual installments from $460 to $11,455 through October 1, 2050. The bonds refunded 100% of the remaining 2008A Electric Revnue bonds, 2008C Electric Revenue bonds, and 2011A Electric Revenue Bonds. 213,295 Subtotal 600,680
Add: Unamortized bond premium 76,815
Subtotal - Electric 677,495
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 b ecome 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. 60,115
58 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
$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%. F or information on the swap agreements see Note 6. B onds 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. T he 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. 93,895
$58,025 2022 Water Revenue Bonds; Series A fixed rate bonds,

5.0%, due in annual installments from $3,618 to $3,695 through October 1, 2052. 57,290
Subtotal 235,350
Add: Unamortized bond premium 20,815
Subtotal - Water 256,165
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. 167,490
$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. T he bonds advanced
refunded the 2009 Direct Pay B uild America Bonds Series B.

The refunding transaction resulted in a total net present value savings of $18,932. 134,135
Subtotal 301,625
Add: unamortized bond premium 33,442
Subtotal - Sewer 335,067
Total revenue bonds $ 1,268,727
Remaining revenue bond debt service payments will be made from revenues of the Electric, Water and Sewer Enterprise funds. Annual debt service requirements to maturity are as follows:

Electric
Fiscal Year Principal Interest Total
2025 $ 18,005 $ 31,946 $ 49,951
2026 18,475 28,763 47,238
2027 19,360 27,822 47,182
2028 20,320 26,830 47,150
2029 21,330 25,789 47,119
2030-2034 129,835 110,797 240,632
2035-2039 158,065 74,832 232,897
2040-2044 129,245 33,611 162,856
2045-2049 74,590 12,551 87,141
2050-2054 11,455 286 11,741
Premium 76,815 - 76,815
Total $ 677,495 $ 373,227 $ 1,050,722
59 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Water
Fiscal Year Principal Interest Total
2025 $ 8,460 $ 10,664 $ 19,124
2026 8,840 10,257 19,097
2027 9,245 9,831 19,076
2028 9,665 9,385 19,050
2029 10,095 8,920 19,015
2030-2034 56,485 37,481 93,966
2035-2039 69,015 24,003 93,018
2040-2044 24,815 12,364 37,179
2045-2049 25,315 6,642 31,957
2050-2054 13,415 1,383 14,798
Premium 20,815 - 20,815
Total $ 256,165 $ 130,930 $ 387,095
Sewer
Fiscal Year Principal Interest Total
2025 $ 12,050 $ 14,551 $ 26,601
2026 12,670 13,933 26,603
2027 13,320 13,283 26,603
2028 14,000 12,600 26,600
2029 14,720 11,882 26,602
2030-2034 85,720 47,284 133,004
2035-2039 109,710 23,300 133,010
2040-2044 39,435 1,695 41,130
Premium 33,442 - 33,442
Total $ 335,067 $ 138,528 $ 473,595
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 the Successor Agency t o properly r eflect 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 Governmental Activities and Business-Type 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 Type Activities. $ 5,437
$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. $107,598 relates to Business- Type Activities. 89,816
Total pension obligation bonds $ 95,253
60 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Remaining pension obligation bond debt service payments will be made from unrestricted revenues of the Business-Type Activities funds. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 9,366 $ 3,153 $ 12,519
2026 9,636 2,932 12,568
2027 9,244 2,683 11,927
2028 6,182 2,430 8,612
2029 4,925 2,259 7,184
2030-2034 22,613 9,164 31,777
2035-2039 24,223 4,429 28,652
2040-2044 9,064 665 9,729
Total $ 95,253 $ 27,715 $ 122,968
Certificates of Participation – Business Type 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 shares.
$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 e ntered 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; $38,793 relates to the Civic Entertainment Fund. $ 23,191 Total certificates of participation $ 23,191
Remaining certificates of participation debt service payments will be made from unrestricted revenues of the Civic Entertainment Fund. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 1,421 $ 768 $ 2,189
2026 1,482 719 2,201
2027 1,542 669 2,211
2028 1,603 617 2,220
2029 1,633 563 2,196
2030-2034 9,192 1,934 11,126
2035-2039 6,318 377 6,695
Total $ 23,191 $ 5,647 $ 28,838
Lease Revenue Bonds – Business Type Activities:

Principal
Outstanding
In 2019, the Series 2012A Lease Revenue Refunding Bonds were distributed between Governmental Activities, Business- Type Activities, and the Successor Agency t o properly r eflect their proportional share.
61 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
On August 15, 2012, the City i ssued the Series 2012A Lease Revenue Refunding Bonds in the amount of $41,240. The bonds are secured by l ease payments on a portion of the City H all 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 o n May 1 a nd November 1 of each year, commencing May 1, 2013. The rate of interest varies from 2% to 5% per annum d epending on maturity d ate. P rincipal 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. $9,898 relates to Business- Type Activities. $ 5,688
Total lease revenue bonds $ 5,688
Remaining lease revenue bond debt service payments will be made from unrestricted revenues of the Parking Fund. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 466 $ 236 $ 702
2026 481 220 701
2027 502 199 701
2028 527 173 700
2029 554 146 700
2030-2034 3,158 329 3,487
Total $ 5,688 $ 1,303 $ 6,991
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, 2024:

Governmental Long-Term Obligations:

Certificates of participation $ 7,555
Total $ 7,555
The City has a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity t ables 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, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by t he debt agreement) are indicated in the table below. The debt service coverage ratios also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment.

Description of
Pledge Revenue
Annual Amount of
Pledge Revenue
(net of expenses,
where required)
Annual Debt Service
Payments (all of
debt secured by
this revenue)
Coverage
Ratio
for FY
06/30/24
Electric revenues $ 116,861 * $ 50,694 2.31
Water revenues 41,463 * 20,914 1.98
Sewer revenues 39,013 26,599 1.47
*Excludes non-cash pension expense
There are also a number of limitations and restrictions contained in Assessment Bond indentures. The City b elieves they a re in compliance with all significant limitations and restrictions.
62 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Direct Borrowings: Notes Payable - Business-Type
Activities:

Principal
Outstanding
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 Payments and damages for breach of the Lease. $ 11,285 In July 1 9, 2012, the City s ecured 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 convention 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 p eriod 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. F or information on the swap agreement see Note 6. A t 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. 25,240 Total notes payable $ 36,525
Remaining notes payable debt service payments will be made from unrestricted revenues of the Water Fund, Public Parking Fund, and Civic Entertainment Fund. Annual debt service requirements to maturity are as follows:

Non-Major Enterprise Funds
Fiscal Year Principal Interest Total
2025 $ 3,567 $ 1,200 $ 4,767
2026 3,688 1,075 4,763
2027 3,811 945 4,756
2028 3,940 811 4,751
2029 4,073 673 4,746
2030-2034 17,446 1,288 18,734
Total $ 36,525 $ 5,992 $ 42,517
Direct Borrowings: Contracts Payable
Principal
Outstanding
Water stock acquisition rights payable on demand to various water companies $ 931
Direct Borrowings: Financed Purchase
The City purchased various equipment through financing arrangements in the governmental and proprietary fund types. These activities are recorded for both governmental and business-type activities in the government-wide financial statements. The assets and related obligations in governmental funds are not recorded in the fund statements. For proprietary f unds, the assets and their related liabilities are reported directly i n the fund. Amortization applicable to proprietary a ssets acquired through financing arrangements is included with depreciation for financial statement presentation.
63 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
The future minimum obligations as of June 30, 2024 were as follows:

Fiscal Year
Governmental
Activities
Business-Type
Activities
2025 $ 4,134 $ 375
2026 3,039 375
2027 3,000 375
2028 2,087 57
2029 1,238 -
Thereafter 3,715 -
Total minimum installments 17,213 1,182
Less: Amount representing interest
(rates ranging from 1.2% to 9%) (1,061) (48)
Total financed purchase $ 16,152 $ 1,134
Note 10. Compensated Absences
A liability i s recorded for unused vacation and similar compensatory l eave 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 e ither paid time-off or payments upon termination or retirement.

Below is a summary o f changes in compensated absences during the fiscal year:

Governmental Activities:

Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Compensated absences $ 31,425 $ 19,018 $ (15,998) $ 34,445 $ 17,496 Business-Type Activities:

Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Compensated absences $ 12,084 $ 9,284 $ (9,018) $ 12,350 $ 9,233 Note 11. 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 retention of $3,000. The City h as four General Liability policies: a primary and and three excess General Liability policies. The primary General Liability policy coverage has a limit of $5,000 and the Excess General Liability policies provide an additional $20,000 of coverage, with a self- insured retention of $3,000. Both the primary a nd excess General liability policies cover general and auto liability claims including but not limited to Law Enforcement Liability a nd Public Officials Errors and Ommissions. There has been one claim settled in the last three fiscal years that exceed the City's self- insured retention. Internal service funds have been established to account for and finance the uninsured risks of loss. The addition of $37.9 million claims and judgement liability related to the Simpson v. City of Riverside was recorded in fiscal year 2024. More information regarding the Simpson v. City of Riverside can be found in Note 25.

All funds of the City p articipate in the Risk Management program and make payments to the Internal Service Funds based on actuarial estimates of the amounts needed to fund prior and current year claims and incidents that have been incurred but not reported. Interfund premiums are accounted for as quasi- external transactions and are therefore recorded as revenues of the Internal Service Funds in the fund financial statements.
64 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Changes in the self-insurance fund’s claims and judgments amounts are:

Governmental Activities:

Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Claims and judgments $ 53,112 $ 61,371 $ (12,866) $ 101,617 $ 16,921 Unpaid claims, June 30,2022 $ 78,790
Incurred claims (including IBNR's) 1,938
Claim payments and adjustments (27,616)
Unpaid claims, June 30,2023 53,112
Incurred claims (including IBNR's) 61,371
Claim payments and adjustments (12,866)
Unpaid claims, June 30,2024 $ 101,617
Note 12. Landfill Capping
State and Federal laws and regulations require the City to place a final cover on all active landfills when closed and to perform certain maintenance and monitoring functions at the landfill site for 30 years after closure. 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 1 20 acres, operated as a "Class II Sanitary L andfill" until its closure in 1985. During its operation, the landfill did not accept hazardous waste and no clean up and abatement or cease and desist orders have been issued to the City. The capacity used at June 30, 2024 was 100%. The remaining post closure period is currently 15 years.

The estimated costs as determined and updated by t he Public Works Department are associated with flood control upgrades, 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, deflation, technology, or change in laws or regulations. The City i s recovering such costs in rates charged to its customers. The portion of costs to be recovered through future rates is classified as a regulatory a sset and will be amortized over future periods.

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

Business-Type Activities:

Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Landfill capping $ 9,425 $ - $ (481) $ 8,944 $ 559
Note 13. Nuclear Decommissioning Liability
As of June 30, 2024, decommissioning liability b alance was $46,082 w ith a portion reflected as current liabilities payable from restricted assets. As a result of the updated SCE decommissioning cost estimate and the increase in the Electric Utility's estimated share, the decommissioning liability was increased by $5.7 million in fiscal year 2022. The offset of this liability increase was recorded as an extraordinary item in fiscal year 2022.

The Electric Utility no longer 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 of other assumptions and estimates, the Electric Utility h as set aside funds in the designated decommissioning reserve of $2,000 per year through fiscal year 2024, as approved by the Board of Public Utilities and City Council. Beginning in fisal year 2025, the Electric Utility will continue to set aside funds in the designated decommissioing reserve of $1,000 per year, as approved by the Board of Public Utilities and City Council.

Below is a summary o f changes in decommissioning liability d uring the fiscal year:

Business-Type Activities:

Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Decommissioning liability $ 48,873 $ 863 $ (3,654) $ 46,082 $ 12,244 65 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Note 14. Commitments and Contingencies
Intermountain Power Agency
The Electric Utility has a power purchase contract with Intermountain Power Agency (IPA) for the delivery of electric power. The Electric Utility’s share of IPA power is equal to 7.6 percent, or approximately 1 37.1 MW, of the net generation output of IPA’s 1,800 MW c entral Utah coal-fueled generating station, known as Intermountain Power Project (IPP). The contract expires in 2027.

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

On September 29, 2006, Senate Bill (SB) 1368 was enacted into law. The bill requires electric service providers to limit financial investments in power plants to those that adhere to greenhouse gas performance standards as determined by t he Public Utilities Commission. Pursuant to this legislation, the Electric Utility i s prohibited from renewing its participation 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 P ower Sales Contract, which amended the IPP 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 IPP renewal agreements, including the 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 e xecuted 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 d esigned capacity, which is within the maximum participation level approved by t he City C ouncil. The Electric Utility’s corresponding Southern Transmission System allocation is 5.278 percent or approximately 1 27 MW.

Further, under the Renewal Power Sales Contract, the Electric Utility had 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 Repowering” of the IPP Repower Project, which reduced the design capacity of 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 member of SCPPA, a joint powers agency (see Note 9). SCPPA provides for the financing and construction of electric generating and transmission projects for participation by some or all of its members. To the extent the Electric Utility participates in take-or-pay projects developed by SCPPA, it has entered into Power Purchase or Transmission Service Agreements, entitling the Electric Utility t o the power output or transmission service, as applicable, and the Electric Utility w ill be obligated 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:

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
Terms of Take or Pay Commitments
As part of the take-or-pay c ommitments with IPA and SCPPA, the Electric Utility h as agreed to pay i ts share of current and long-term obligations.

Management intends to pay t hese obligations from operating revenues received during the year that payment is due. A long-term obligation has not 66 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
been recorded on the accompanying financial statements for these commitments. Take-or-pay commitments terminate upon the later of contract expiration or final maturity of outstanding bonds for each project.

The outstanding debts associated with the take-or-pay obligations have fixed interest rates, which range from 4.00 percent to 5.00 percent. The schedule below details the amount of principal and interest that is due and payable by the Electric Utility a s part of the take-or-pay c ontract for each project in the fiscal year indicated:

IPA1 SCPPA Total
Debt Service
Payment Year
Ending June 30,
Intermountain
Power Project
Southern
Transmission
System
All
Projects
2025 $ 6,229 $ 6,798 $ 13,027
2026 6,229 11,636 17,865
2027 9,914 9,999 19,913
2028 - 7,158 7,158
Total $ 22,372 $ 35,591 $ 57,963
1 The Electric Utility's contract with IPA expires in 2027. The Electric Utility will not be responsible for the proportionate share of the IPA Revenue bonds after the contract expires. 2 During fiscal year 2023-24, STS issued 3 Renewal Project bonds. The Electric Utility's contract with STS through SCPPA expires o n June 15, 2027. The Electric Utility will be responsible for the proportionate share of the STS bonds up to the July 1, 2027 debt payment date.

In addition to debt service, the Electric Utility’s entitlements require the payment of fuel costs, operating and maintenance, administrative and general and other miscellaneous costs associated with the generation and transmission facilities discussed above. These costs do not have a similar structured payment schedule as debt service varies each year. The costs incurred for the years ended June 30, 2024 and 2023, are as follows (in thousands):

Fiscal Year
Intermountain
Power Project*
Palo Verde
Nuclear
Generating
Station*
Southern
Transmission
System
Mead-Phoenix
Transmission
Mead-Adelanto
Transmission All Projects
2024 $ 20,106 $ 3,135 $ 3,771 $ 76 $ 640 $ 27,728
2023 20,344 3,010 3,839 90 461 27,744
* Excludes variable costs
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 over the operational control of its transmission entitlements including the Southern Transmission System, Mead-Phoenix, and Mead-Adelanto Transmission Projects. In return, users of California’s high voltage transmission grid are charged for, and the Electric Utility receives reimbursement for, transmission revenue requirements, including the costs associated with these three transmission projects.

Hoover Uprating Project
The Electric Utility’s initial entitlement in the Hoover project through SCPPA terminated on September 30, 2017. On August 23, 2016, the City C ouncil approved a 50-year Electric Service Contract (ESC) and an Amended and Restated Implementation Agreement (IA) with the Western Area Power Administration (Western) Bureau of Reclamation for 30 MW of hydroelectric power. The contract with Western is effective as of October 1, 2017. The ESC extended the Electric Utility’s 30 MW entitlement in the Hoover project through 2067. The IA is a supplemental agreement to the ESC that establishes administrative, budgetary and project oversight by creating project committees and a process for decision making in plant operations.

Nuclear Insurance
The Price-Anderson Act (the Act) requires that all utilities with nuclear generating facilities purchase the maximum private primary n uclear liability insurance available ($450 million) and participate in the industry’s secondary financial protection plan. The secondary f inancial protection program is the industry’s retrospective assessment plan that uses deferred premium charges from every l icensed reactor owner if claims and/or costs resulting from a nuclear incident at any licensed reactor in the United States were to exceed the primary nuclear insurance at that plant’s site. Effective January 1, 2024, the Act limits liability from third-party claims to approximately $16.3 billion per incident.

Under the industry-wide retrospective assessment program provided for under the Act, assessments are limited to $165.9 million per reactor for each nuclear incident occurring at any n uclear reactor in the United States, with payments under the program limited to $24.7 million per reactor, per year, per event to be indexed for inflation every f ive years. Based on the Electric Utility’s interest in 67 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Palo Verde, the Electric Utility would be responsible for a maximum assessment of $1.6 million, limited to payments of $0.2 million per incident, per year. If the public liability limit above is insufficient, federal regulations may impose further revenue-raising measures to pay c laims, 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 the first set of tiered RPS targets of 20% by 2013, 25% by 2016 and 33% by 2020. SBX1-2 specified that publicly o wned 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 sales during the 3-year period from 2011-2013; CP2 – no less than 25 percent of retail sales by D ecember 31, 2016; and CP3 – no less than 33 percent of retail sales by December 31, 2020. The Riverside Public Utilities Board and City Council approved the RPS Enforcement Program required by SBX1-2 on November 18, 2011 and December 13, 2011, respectively, and further approved the Electric Utility’s RPS Procurement Plan (a.k.a.

Procurement Policy) implementing the new RPS mandates on May 3, 2013 and May 1 4, 2013, respectively. The Electric Utility m et the procurement requirements of SBX1-2 for CP1 (2011-2013), CP2 (2014-2016), and CP3 (2017-2020). The additional future mandates are expected to be met with resource procurement actions as outlined in the Electric Utility’s RPS Procurement Plan. For calendar year 2023, renewable resources provided 46 percent of retail sales requirements.

On October 7, 2015, the Governor signed into law SB 350 increasing the RPS mandate from 33 percent by 2020 to 50 percent by December 31, 2030.

In addition, SB 350 required that an updated RPS Procurement Policy b e approved and adopted before January 1, 2019 and be incorporated into the Electric Utility’s Integrated Resource Plan. An updated 2018 Renewable Energy Procurement Policy was adopted by the Board and City Council on September 10, 2018 and October 9, 2018, respectively. The Electric Utility expects to be able to substantially m eet the increased RPS mandates imposed by SB 350 with the actions described in the updated procurement policy and the portfolio of renewable resources outlined below.

On September 10, 2018, the 100 Percent Clean Energy Act of 2018 (SB 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 D ecember 31, 2024, 52 percent by D ecember 31, 2027, 60 percent by December 31, 2030, with an end goal of 100 percent of total retail sales of electricity i n California generated from eligible renewable energy resources and zero-carbon resources by December 31, 2045. It is expected that the California Energy C ommission will have further guidance and enforcement procedures for publicly owned utilities to meet these increased mandates. The Electric Utility w ill continue to monitor the outcome and impacts of any u pcoming 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 entered into power purchase agreements (PPA) and power sales agreements (PSA) with various entities described below in general on a “take-and-pay” basis. The contracts in the following tables were executed as part of compliance with RPS mandates.

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

Supplier Type
Maximum
Contract1
Contract
Expiration
Estimated
Annual
Cost for
2024
Wintec Wind 1.3 MW 02/19/2024 $ 151
WKN Wagner Wind 6.0 MW 12/22/2032 1,375
Terraform Power - AP North Lake Photovoltaic 20.0 MW 08/11/2040 4,992 Onward Energy - Columbia II Photovoltaic 11.1 MW 12/22/2034 2,320 Salka Cabazon HoldCo LLC - GPS Cabazon Wind Wind 39.0 MW 12/31/2027 4,311 Arevon - Kingbird Solar B, LLC Photovoltaic 14.0 MW 12/31/2036 2,875 AES - Summer Solar Photovoltaic 10.0 MW 12/31/2041 1,752 AES - Antelope Big Sky Ranch Photovoltaic 10.0 MW 12/31/2041 1,752 AES - Antelope DSR 1 Solar Photovoltaic 25.0 MW 12/19/2036 3,836 Arevon - Tequesquite Landfill Solar Photovoltaic 7.3 MW 12/31/2040 1,448 Roseburg Forest Products2 Biomass N/A 02/16/2026 179
CalEnergy - Salton Sea Portfolio Geothermal 86.0 MW 12/31/2039 56,609 Atlantica - Coso Geothermal Geothermal 10.0 MW 12/31/2041 6,067 Total3 239.7 MW $ 87,667
1 All contracts are contingent on energy d elivered from specific related generating facilities. The Electric Utility h as no commitment to pay a ny amounts except for energy delivered on a monthly basis from these facilities except for any economic curtailments directed by the Electric Utility. 2 This supply is only available to satisfy SB 859 requirements.

Long-term renewable PPAs with expected delivery:
68 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Supplier Type
Maximum
Contract1 Expected
Delivery
Energy
Delivery
No Later
Than
Contract
Term
In Years
SunZia Wind Power Co. Wind 125.0 MW 2 03/31/2026 03/31/2027 15 Atlantica - Coso Geothermal Geothermal 20.0- MW 0 01/01/2027 01/01/2027 15 Total
145.0-
MW
1 All contracts are contingent on energy d elivered from specific related generating facilities. The Electric Utility h as no commitment to pay a ny amounts except for energy delivered on a monthly basis from these facilities except for any economic curtailments directed by the Electric Utility.

Cap-and-Trade Program
Assembly B ill (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 t he year 2020. Subsequently, 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 to 40% below 1990 levels by the year 2020. AB 398 was then enacted in 2017 clarifying that it was the State legislature’s intent to continue the Cap-and-Trade Program and regulations until 2030. In January 2 013, emission compliance obligations developed by CARB began under the Cap-and-Trade Program (Program). 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 customers, 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 m ay h ave allocated allowances in excess of its compliance obligations that can be sold into the CARB quarterly a uctions. In fiscal year ended June 30, 2024, the Electric Utility r eceived $15,683, in proceeds related to the sale of the GHG allowances which are included on the Statements of Revenues, Expenses, and Changes in Net Position as other operating revenue. The Electric Utility h as established a restricted Regulatory Requirement reserve to comply w ith regulatory r estrictions and governing requirements related to the use of the GHG proceeds. The available funds are to be utilized for qualifying projects, consistent with the goals of AB 32 to benefit the retail ratepayers. The balance in the Regulatory Requirement reserve was $29,845 as of June 30, 2024.

The Electric Utility also purchases GHG allowances which can be used in future periods for GHG compliance regulations. The balance of purchased GHG allowances was $1,464 as of June 30, 2024 and is recorded as inventory in the Statement of Net Position.

Low Carbon Fuel Standard Program
Assembly B ill (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 t he year 2020. Subsequently, 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 to 40% below 1990 levels by the year 2020. Similar to the Cap-and-Trade Program, the Low Carbon Fuel Standard (LCFS) Program is a key c omponent of the market mechanisms authorized by t hese bills 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 into 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 i s 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 o pted into the LCFS program in March 2018 and began generating LCFS credits for the first quarter of 2018. These credits are associated with two sources – unmetered electricity u sed to charge residents’ electric vehicles at their homes (residential base credits) and from electric forklifts charging at private businesses (forklift credits). CARB 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 electric utilities that have opted into the LCFS Program participate in and manage a statewide point-of-sale rebate program for new electric vehicles. This program is called 69 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
the California Clean Fuel Reward Program (CFR) and the City j oined the program in May 2 020. To fund the program, electric utilities are required to contribute proceeds received from the sales of residential base credits beginning with the credits the Electric Utility r eceived in Q4 2019 (generated from electricity used for transportation in Q2 2019). Residential base credits the Electric Utility r eceived prior to that time are not subject to the contribution requirements. Additionally, a “start-up” contribution from 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 March 31 annually.

In fiscal year ended June 30, 2024, the Electric Utility’s proceeds from the sale of LCFS credits were $874. These proceeds are included on 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 LCFS proceeds. The available funds are to be utilized for qualifying programs that support the Electric Utility's customers who are existing and future electric vehicle owners. Total expenses for qualifying programs as of June 30, 2024 was $356. The balance in the Regulatory Requirement reserve as of June 30, 2024 was $4,416.

Note 15. 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 employer defined benefit OPEB plan administered by t he City. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

Benefits provided - Eligibility f or 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. The City is not required by law or contractual agreement to provide funding other 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 a ge, which is currently a ge 65. However, retiree benefit continues to the surviving spouse if the retiree elects the CalPERS survivor annuity.

Employees covered by benefit terms – At June 30, 2023 measurement date, the following employees were covered by the benefit terms:

Inactive plan members or beneficiaries currently receiving benefits 182 Inactive plan members entitled to but not yet receiving benefits - Active plan members 2,113
Total 2,295
Significant Actuarial Assumptions Used in Calculating the Total OPEB Liability The total OPEB liability w as determined by a n actuarial valuation using the following actuarial assumptions:

Valuation Date: June 30, 2023
Measurement Date: June 30, 2023
Funding Policy: Pay-as-you-go for implicit rate subsidy Discount Rate:

3.65% per year net of expenses. This is based on the Bond Buyer 20 Bond Index
Inflation Rate: 2.5% per annum
Salary Inflation: 2.75% per annum
Salary Increases:

Since benefits do not depend on salary (as they do for
pensions), this assumption is only used to determine the accrual pattern of the Actuarial Present Value of Projected Benefit Payments
Mortality: Based on the CalPERS 2021 Experience Study
Changes in Assumption
From measurement periods ended June 30, 2022 to 2023, the discount rate changed from 3.54% to 3.65% and mortality changed based on the CalPERS 2017 to CalPERS 2021 experience study; respectively.
70 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Sensitivity analysis of total OPEB liability for healthcare cost trend rates.

The following presents the total net OPEB liability, calculating using the healthcare cost trend rate of 4.0%, 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 (3.0%) or 1-percentage-point higher (5.0%) than the current rate:

Current Healthcare
1% Decrease Cost Trend Rate 1% Increase
3% 4% 5%
Total OPEB liability $ 42,902 $ 48,730 $ 55,653
Sensitivity analysis of total OPEB liability for discount rates The following presents the total OPEB liability, calculating using the discount rate of 3.65%, as well as what the total OPEB liability w ould be if it were calculated using a discount rate that is 1-percentage-point lower (2.65%) or 1- percentage-point higher (4.65%) than the current rate:
1% Decrease
(2.65%)
Current
Discount Rate
(3.65%)
1% Increase
(4.65%)
Total OPEB liability $ 53,221 $ 48,730 $ 44,629
Change in total OPEB liability
For fiscal year 2024, the City recognized total OPEB expense of $4,139. The liability f or the governmental activities is primarily l iquidated from the General Fund. The following table shows the change in the total OPEB liability for the year ended June 30, 2024:
2024
Beginning total OPEB liability $ 45,471
Service cost 2,576
Interest 1,622
Experience (Gains)/Losses 1,173
Changes of assumptions (274)
Benefit of implied subsidy payments (1,838)
Net changes 3,259
Ending total OPEB liability $ 48,730
Deferred outflows/inflows of resources
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Contributions subsequent to the
measurement date $ 1,602 $ -
Differences between expected
and actual experience 1,206 2,959
Changes of assumptions 5,479 7,730
Total $ 8,287 $ 10,689
An amount of $1,602 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2025, 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
2025 $ (60)
2026 148
2027 187
2028 187
2029 (907)
Thereafter (3,559)
Total $ (4,004)
71 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Note 16. 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 retirement 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 the State of California.

Benefit provisions and all other requirements are established by s tate statute and City ordinance. A copy of CalPERS’ annual financial report may be obtained online at www.calpers.ca.gov.
(B) Funding Policy - The City has contributed at the actuarially determined rate provided by CalPERS’ actuaries. Participants are required to contribute various percentages for miscellaneous employees and for safety e mployees of their annual covered salary b ased on their Tier. The City h as a multiple tier retirement plan with benefits varying by p lan. The City p ays the employees’ contributions to CalPERS for both miscellaneous and safety employees hired on or before specific dates as follows:

Safety (Police):
 1st T ier (RPOA, RPOA Supervisory & R PAA Management) - The retirement formula is 3% at age 50 for employees hired on or before February 1 6, 2012 (RPOA, RPAA Management) or June 8, 2012 (RPOA Supervisory). E ffective January 1 , 2018, employees were required to pay 1 .5% of their pensionable income, with the City contributing the other 7.5%. Only i n the event that annual wages increase in excess of 2%, will the following apply: Effective January 1, 2019, employees were required to pay a n additional portion of their pensionable income. This portion is a three-year increase of 1.5% (2019), 1.5% (2020) and 1.5% (2021). However, the 2021 increase did not take affect. In 2023, RPAA Management had an additional 1% increase and employees are contributing 5.5% pensionable income.

RPOA and RPOA Supervisory r emained at 4.5% contribution of pensionable income. Effective July 7 , 2023, RPOA and RPOA Supervisory employees had a 0.5% increase and RPAA increased by 1%; resulting in RPOA and RPOA Supervisory employees contributing 5% and RPAA employees contributing 6.5% of their pensionable income. Effective March 15, 2024, RPOA Supervisory e mployees increased by a n additional 0.5% for a total requirement of 5.5%.

Effective April 12, 2024, RPAA employees increased by an additional

0.5% for a total requirement of 7%.
 2nd T ier (RPOA, RPOA Supervisory & R PAA 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 t heir share (9%) of contributions.
 3rd 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 t he normal cost to CalPERS which is currently a t 13.50%. 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):
 1st Tier - The retirement formula is 3% at age 50 for employees hired before June 11, 2011. E ffective 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) and 3% (2021).

However, the 2021 increase was only 2 % with the remaining 1% increase in 2022; therefore, in 2022, employees are contributing 8% of their pensionable income. Effective July 7 , 2023, there was a 2% increase resulting in employees contributing 10% of their pensionable income.
 2nd Tier - The retirement formula is 3% at age 55 and new employees hired on or after December 8, 2011 pay t heir share (9%) of contributions. Effective July 7, 2023, there was a 1% increase resulting in employees contributing 10% of their pensionable income.  3rd 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 5 0% of the normal cost to CalPERS which is currently 13.50% of compensation.
72 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Miscellaneous:
 1st Tier –
 The retirement formula is 2.7% at age 55 for employ ees hired on or before October 18, 2011. E ffective 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 were contributing the entire 8% of their pensionable income.  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 a n additional portion of their pensionable income. This portion is a two-year increase of 1% (2019) and 1% (2020). A s of 2020, employees are contributing the entire 8% of their pensionable income.
 The retirement formula is 2.7% at age 55 for IBEW a nd IBEW Supervisory e mployees 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 p aying 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.
 2nd Tier - The retirement formula is 2.7% at age 55, and:
 Miscellaneous employees, IBEW, and IBEW Supervisory h ired on or after October 19, 2011 pay their share (8%) of contributions.  SEIU and SEIU Refuse employees hired on or after June 7, 2011 pay their share (8%) of contributions.
 3rd T ier – The retirement formula is 2% at age 62 for new members hired on or after January 1 , 2013 and the employee must pay t he normal cost to CalPERS which is currently at 8.25%. 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 a re established and may be amended by CalPERS.
(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. Benefits 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 1959 Survivor Benefit Level III, or the Optional Settlement 2W Death Benefit.

The cost of living adjustments for each plan are applied as specified by t he Public Employees’ Retirement Law.
(D) Employees Covered - At June 30, 2023, the following employees were covered by the benefit terms of each Plan: Inactive employees or beneficiaries currently receiving benefits are 2,420 and 885 for the Miscellaneous and Safety Plans, respectively. Inactive employees entitled to but not yet receiving benefits are 1,537 a nd 197 f or Miscellaneous and Safety P lans, respectively. Active employees were 1,652 a nd 562 f or Miscellaneous and Safety P lans, respectively.
(E) Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by t he actuary a nd shall be effective on the July 1 f ollowing notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount 73 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially d etermined rate and the contribution rate of employees.
(F) Net Pension Liability - The City’s net pension liability f or each Plan is measured as the total pension liability, less the pension plan’s fiduciary n et position. The net pension liability of each of the Plans is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 u sing standard update procedures. The liability f or the governmental activities is primarily liquidated from the General Fund.

A summary o f principal assumptions and methods used to determine the net pension liability i s shown below. Actuarial Assumptions – The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table1 Derived using CALPERS' membership data for all funds
Post Retirement Benefit
Increase
The lesser of contract COLA or 2.30% until
Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30% thereafter
1 T he mortality t able used was developed based on CalPERS-specific data.

The probabilities of mortality a re based on the 2021 CalPERS Experience Study a nd Review of Actuarial Assumptions. Mortality r ates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study r eport from November 2021 that can be found on the CalPERS website.

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, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building- block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Asset Class1
Assumed
Asset
Allocation Real Return1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00)% (0.59)%
1 An expected inflation of 2.30% used for this period
2 Figures are based on the 2021 Asset Liability Management Study Discount Rate - The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily r equired rates, actuarially d etermined. 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 members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Changes of Benefit Terms - In 2022, SB 1168 increased the standard retiree 74 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes in Assumptions – There were no assumption changes in 2023. (G) Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:

Miscellaneous Increase (Decrease)
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2022 $ 1,605,413 $ 1,473,712 $ 131,701 Changes recognized for the
measurement period:

Service cost 27,778 - 27,778
Interest on total pension liability 109,814 - 109,814
Changes of Benefit Terms 1,795 - 1,795
Differences between expected and actual
experience 12,692 - 12,692
Net Plan to Plan Resource Movement - 11 (11)
Contributions - employer - 29,150 (29,150)
Contributions - employees - 11,238 (11,238)
Net investment income - 89,464 (89,464)
Benefit payments, including
refunds of employee
contributions (84,559) (84,559) -
Administrative expenses - (1,084) 1,084
Net changes 67,520 44,220 23,300
Balance at June 30,2023 $ 1,672,933 $ 1,517,932 $ 155,001 Safety Increase (Decrease)
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2022 $ 1,340,754 $ 1,175,357 $ 165,397 Changes recognized for the
measurement period:

Service cost 24,896 - 24,896
Interest on total pension liability 91,186 - 91,186
Changes of Benefit Terms 454 - 454
Differences between expected and actual
experience 2,104 - 2,104
Net Plan to Plan Resource Movement - (11) 11
Contributions - employer - 26,238 (26,238)
Contributions - employees - 10,702 (10,702)
Net investment income - 71,711 (71,711)
Benefit payments, including
refunds of employee
contributions (68,451) (68,451) -
Administrative expenses - (864) 864
Net changes 50,189 39,325 10,864
Balance at June 30,2023 $ 1,390,943 $ 1,214,682 $ 176,261 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 w ould be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Miscellaneous
Discount Rate
-1% (5.90%)
Current
Discount Rate
(6.90%)
Discount Rate
+1% (7.90%)
Plan's net pension liability/(asset) $ 380,398 $ 155,001 $ (30,278) 75 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Safety
Discount Rate
-1% (5.90%)
Current
Discount Rate
(6.90%)
Discount Rate
+1% (7.90%)
Plan's net pension liability/(asset) $ 365,129 $ 176,261 $ 21,501 Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary n et position is available in the separately i ssued CalPERS financial reports.

As of June 30, 2024, the City reported net pension liability, deferred outflows of resources, and deferred inflows of resources for both Miscellaneous and Safety Plans as follows:

Net Pension
Liability
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension
Expense
Governmental activities:

Miscellaneous Plan $ 79,379 $ 55,671 $ 3,396 $ 23,969
Safety Plan 176,261 111,166 1,875 53,094
Total Governmental
activities 255,640 166,837 5,271 77,063
Business-type activities:

Miscellaneous Plan 75,622 53,037 3,236 25,068
Total $ 331,262 $ 219,874 $ 8,507 $ 102,131
(H) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions.

For the year ended June 30, 2024, the City recognized pension expense/(credit) of $49,037 to Miscellaneous and $53,094 to Safety for a total of $102,131. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Pension contributions subsequent to measurement
date, net $ 21,237 $ -
Changes of assumptions 7,382 -
Differences between expected and actual
experience 8,780 (6,632)
Net differences between projected and actual
earnings on plan investments 71,309 -
Total $ 108,708 $ (6,632)
Safety
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Pension contributions subsequent to measurement
date, net $ 26,564 $ -
Changes of assumptions 23,532 -
Differences between expected and actual
experience 4,092 (1,875)
Net differences between projected and actual
earnings on plan investments 56,978 -
Total $ 111,166 $ (1,875)
The $47,801 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability i n the subsequent fiscal period rather than 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 a nd fiduciary n et position are recognized in pension expense systematically o ver time.

The first amortized amounts are recognized in pension expense for the y ear 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:
76 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Net difference between
projected and actual earnings
on pension plan investments 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 resources and deferred (inflows) of resources related to pensions will be recognized as pension expense as follows:

Fiscal Year Miscellaneous Safety
2025 $ 17,876 $ 22,682
2026 11,176 16,037
2027 49,674 42,256
2028 2,113 1,752
Total 80,839 82,727
Events Subsequent to Actuarial Valuation Date - There were no subsequent events that would materially affect the results presented in this disclosure.

Note 17. 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 Fund (a fiduciary fund):

Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Lease revenue bonds $ 6,903 $ - $ (2,607) $ 4,296 $ 2,716 Tax allocation bonds 159,529 - (11,815) 147,714 10,690
Direct borrowings:

Notes payable 3,918 - - 3,918 42
$ 170,350 $ - $ (14,422) $ 155,928 $ 13,448
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 l ease payments made by t he State of Califronia Department of General Services for the California Tower office building; 2% to 5% due in annual installments from $545 to $2,230 through October 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. $ 2,230
$4,810 State of California Department of General Services Project, 2003 Lease Revenue Refunding Bonds, Series B are secured by l ease payments made by t he State of California Department of General Services for the California Tower office building; $310 serial bonds 1.20% to 1.42% through October 1, 2004; $620 term bonds at 3.090% due October 1, 2008; $1,110 term bonds at 4.340% due October 1, 2014 and $2,770 term bonds at 5.480% due October 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. 350
In 2019, the 2012A Lease Revenue Refunding bonds were
distributed between Governmental Activities, Business-Type Activities, and the Successor Agency t o properly r eflect their proportional share.
77 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
$41,240 Lease Revenue Refunding Bonds, Series 2012A. 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 o n May 1 a nd November 1 of each year, commencing May 1, 2013. The rate of interest varies from 2% to 5% per annum d epending 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. $2,900 relates to the Successor Agency. 1,666
Subtotal 4,246
Add: Unamortized bond premium 50
Total lease revenue bonds $ 4,296
Remaining debt service will be paid by the Successor Agency Trust from future property t ax revenues. Annual debt service requirements to maturity a re as follows:

Fiscal Year Principal Interest Total
2025 $ 2,716 $ 135 $ 2,851
2026 141 64 205
2027 147 58 205
2028 154 51 205
2029 162 43 205
2030-2034 926 4 930
Premium 50 - 50
Total $ 4,296 $ 355 $ 4,651
Tax Allocation Bonds - Successor Agency:

Principal
Outstanding
$62,980 Subordinate Tax Allocation Refunding Bonds (2014 Series A and B). The bonds were issued to refund certain obligations of the former Redevelopment Agency of the City of Riverside. Interest is due semi-annually o n 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. $ 23,620 $114,815 2018 Tax Allocation Refunding Bonds (Series A and B). The bonds were issued to refund the 2007 Riverside Public Financing Authority R edevelopment Agency T ax 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. 109,185
Subtotal 132,805
Add: Unamortized bond premium 14,909
Total tax allocation bonds $ 147,714
The Successor Agency T ax Allocation Bonds are secured by t ax revenues deposited in the Redevelopment Property T ax 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.
78 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Remaining debt service will be paid by the Successor Agency Trust Fund from future property tax revenues. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 10,690 $ 5,928 $ 16,618
2026 10,795 5,392 16,187
2027 11,135 4,844 15,979
2028 10,230 4,317 14,547
2029 10,785 3,799 14,584
2030-2034 45,705 11,835 57,540
2035-2039 33,465 2,531 35,996
Premium 14,909 - 14,909
Total $ 147,714 $ 38,646 $ 186,360
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. Principal 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 d ate of the certificate of completion, all unpaid principal together with any accrued interest will be forgiven. $ 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 agreement. 931
Total notes payable $ 3,918
Remaining debt service will be paid by the Successor Agency Trust Fund from future property tax revenues. Annual debt service requirements to maturity are as follows:

Fiscal Year Principal Interest Total
2025 $ 42 $ 300 $ 342
2026 46 295 341
2027 51 291 342
2028 57 285 342
2029 63 279 342
2030-2034 427 1,283 1,710
2035-2039 703 1,006 1,709
2040-2044 1,158 551 1,709
2045-2049 1,371 1,268 2,639
Total $ 3,918 $ 5,558 $ 9,476
Assessment Districts and Community Facilities Districts Bonds (Not obligations of the City):

As of June 30, 2024, the City h as several series of Assessment District and Community Facility District Bonds outstanding in the amount of $40,685. Bonds were issued for improvements in certain districts and are long-term obligations of the property owners. The City's only limited commitment on these obligations is that the City Treasurer act 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 reflected as a long-term obligation of the City and is not reflected in the government-wide financial statements.

Note 18. 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 funds within the City at June 30, 2024:
79 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Receivable Funds Payable Funds Amount
General Fund Non-Major Governmental Funds $ 1,549
Non-Major Enterprise Funds 233
Internal Service Funds 1,443
Total $ 3,225
Advances To/From Other Funds: These balances consist of advances used to fund capital projects in advance of related financing/assessments and for other long-term borrowing purposes.

The following table shows amounts advanced from funds within the City to other funds within the City at June 30, 2024:

Receivable Funds Payable Funds Amount
Sewer General Debt Service Fund $ 820
General Fund Non-Major Enterprise Funds 2,000
Total $ 2,820
In addition, the following advances to the former Redevelopment Agency a re accounted for in the Private-Purpose Trust Fund of the Successor Agency:

Receivable Funds Amount
Electric $ 1,555
Transfers In/Out: T ransfers are primarily u sed to (1) move revenues to the fund that statute or budget requires to expend them, and (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.

The following table shows amounts transferred to/from funds within the City for the year ended June 30, 2024:

Transfers in Funds Transfers Out Funds Amount
General Fund Capital Outlay Fund $ 147
Non-Major Governmental Funds 1,409
Electric Fund 45,289
Water Fund 8,108
Non-Major Enterprise Funds 2,112
57,065
Capital Outlay Fund General Fund 33,050
General Debt Service
Fund General Fund 28,850
Capital Outlay Fund 2,995
Non-Major Governmental Funds 1,957
33,802
Non-Major Governmental
Funds General Fund 2,172
Non-Major Governmental Funds 41
2,213
Non-Major Enterprise
Funds General Fund 11,955
Total $ 138,085
Note 19. Deficit Net Position
Deficit net position exists in the non-major enterprise fund, Transportation $(1,902). The deficit is primarily due to the net pension and OPEB liabilities.

Deficit net position exists in the Self-Insurance Internal Service Fund $(69,456).

This City adopted a Self-Insurance Reserve Policy that addresses the on-going deficit in fund balance. In the past, the City began funding a portion of the deficit in the internal service fund via self-insurance 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. A $37.9 million increase to the claims and judgments liability related to the Simpson v. City of Riverside class action lawsuit also contributed to the deficit.

Deficit net position exists in the Successor Agency Private-Purpose Trust Fund $(110,201). The deficit in the Successor Agency T rust Fund will be reduced over the years as the related debt is paid-off with funds received from the 80 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Redevelopment Property Tax Trust Fund (RPTTF), which is administered by the County Auditor-Controller.

Note 20. Contruction Commitments
As of June 30, 2024, the Electric Utility had commitments (encumbrances) of approximately $76,999 w ith respect to ongoing capital projects, of which $69,136 is expected to be funded by bonds, $7,819 to be funded by unrestricted cash reserves, and $44 to be funded by restricted cash reserves.

Note 21. Forward Purchase/Sale Agreements
In order to meet seasonal energy needs and summer peaking requirements, the Electric Utility contracts on a monthly and/or quarterly basis for the purchase or sale of natural gas, electricity a nd/or capacity p roducts on a one to four year forward horizon. As of June 30, 2024, the Electric Utility has net natural gas and electricity c ommitments for fiscal year 2025 a nd thereafter, of approximately $102,311, with a market value of $85,038. It should be noted that the market value can and typically does change on a daily basis.

Note 22. 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 $72,246 which equals to approximately 20% of the 2024-2025 G eneral Fund adopted expenditure budget. For the General Fund Measure Z Fund, $5,000 has been set aside.

Note 23. Litigation
The City i s a defendant in various lawsuits arising in the normal course of business. Present lawsuits and other claims against the City a re incidental to the ordinary c ourse of operations and are largely c overed by t he 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.

Note 24. 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 v endor transactions occurring using the business site as the point of sale. Incremental Property T ax Revenue is generated from the increase in County a ssessed valuation over the 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 base year assessed valuation was adjusted to $130,349 for parcels acquired in 2023-24. 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 11% of the value determined from taking 1% of the difference of current net assessed valuation over the adjusted base valuation. The cumulative rebate payment as of June 30, 2024 is $2,015.

Note 25. 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 rates approved by C ity Council on May 22, 2018, which took effect on January 1, 2019, by challenging the portion of the electric rates that are attributable to the General Fund. The petition did not seek any monetary relief from the General 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 liability phase of Parada II litigation entered a tentative ruling finding the City’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 had set a hearing for February 2 4, 2021, to set a briefing schedule for determining appropriate remedies /damages in the case. The City expected the second phase of the trial relating to plaintiffs’ available remedies to occur in the second quarter of 2021.

The ruling by t he Court in Parada II was anticipated to likely h ave a material 81 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
adverse impact on the City’s General Fund. The General Fund receives approximately $ 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 approved by t he voters. However, that amount will be determined during the damages phase of the trial. Additionally, the City might have been required to refund rate payers for the portions of the rates that were determined to violate Article XIII C of the California Constitution from the date the writ of mandate was filed.

However, the trial court did not issue 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 estimated that the amount of a refund would be $19 to $32 million per year, beginning January 1, 2019, until date of settlement or issuance of a final, non-appealable judgment by the trial court after anticipated appeals are resolved. This amount could vary d epending upon whether or not the City d ecides to repeal and replace the challenged rates pending appeal.

On May 1 7, 2021, the City a nd the Paradas entered into a conditional settlement agreement. This settlement was conditioned on: (1) the Riverside City Council’s placement of a ballot measure on City ballots in November 2021 to approve the City’s General Fund Transfer practices as a general tax (“Ballot Measure”); and (2) voter approval of the Ballot Measure. The Riverside City Council placed the Ballot Measure on the ballot for the November 2, 2021 election. The Parties stayed the Parada lawsuit until certification of the results of the Ballot Measure. If voters approved the Ballot Measure, the City would refund to customers of its electric utility an amount equal to $24 million less the amount awarded to Plaintiffs’ counsel in fees, paid over a five year period beginning no later than February 1, 2022. If voters did not approve the Ballot Measure, this litigation would then resume.

On or about September 16, 2021, a petition for writ of mandate entitled Riversiders Against Increased Taxes v. City of Riverside, et al. (“RAIT lawsuit”) was filed against the City challenging the Ballot Measure on the grounds 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 set a trial date for the RAIT lawsuit for January 7, 2022 and ordered a stay o f the certification of the Ballot Measure Election results pending the January 7th hearing but did not otherwise delay or cancel the election for the Ballot Measure.

The election was held on November 2, 2021, and the Measure C was approved by voters, with 54.52% voting in favor.

On April 26, 2022 the RAIT lawsuit trial court determined that the November 2021 election was a “special election” rather than a “general election” and therefore did not comply w ith Proposition 218. The RAIT lawsuit trial court further ruled that it lacked power to enjoin the certification of election results or to otherwise invalidate the election. Both sides appealed that ruling.

On May 1 2, 2022, the City a nd the Paradas amended the May 1 7, 2021 Settlement Agreement, with the following additional terms: (a) City a greed to start making refunds to ratepayers by October 1, 2022; (b) if the City prevailed in the appeal of the trial court’s decision in the RAIT lawsuit, no additional refund would be due to the ratepayers; (c) if the City did not prevail in the appeal of the trial court’s decision in the RAIT lawsuit, an additional refund would be implemented in the amount of $705,882 per month, from November, 2021 up to when the City either (i) sets new electric rates; (ii) voters approve a valid ballot measure for the GFT or (iii) the City otherwise stops collecting the electric GFT.

The Parada lawsuit was dismissed on May 13, 2022.

The City C ouncil adopted a resolution certifying the results of the Measure C election on July 1 9, 2022. The plaintiffs from the RAIT lawsuit sought to intervene in the Parada lawsuit and set aside this dismissal. On August 3, 2022, the Parada trial court refused to set aside the dismissal. The City h as now begun to implement the settlement agreement.

On July 25, 2024, the appellate court ruled in favor of the City and against RAIT, holding that the City conducted a proper election in compliance with Proposition 218 and 26. Because the appellate court ruled in favor of the City, no additional refunds are owed to ratepayers by t he City u nder the Parada settlement agreement. On September 4, 2024, RAIT sought California Supreme Court review of the appellate decision and on October 30, 2024, the California Supreme Court declined review of the appellate court’s ruling in favor of the City.

Simpson v. City of Riverside
On December 19, 2019, a class action lawsuit entitled Simpson v. City o f Riverside was filed against the City a lleging that the City i s overcharging customers for water utility service in violation of Article XIIID, Section 6 of the California Constitution, on the grounds that the City i s transferring 11.5% of 82 CITY OF RIVERSIDE

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
water utility revenues to the City’s general fund. The transfer, also known as the “General Fund Transfer”, was approved by voters on June 4, 2013, as a general tax. The plaintiff is seeking refunds for all customers for monies collected in violation in the three years prior to the filing of the lawsuit and an order that the court set aside the Revenue Transfer Re-Approval. The trial was bifurcated into two phases, liability and damages.

The Court issued its ruling on the liability phase on August 17, 2023, finding that the City’s water rates violated Article XIID, Section 6 of the California Constitution because they w ere set in an amount sufficient to recover the General Fund Transfer. A trial hearing related to the second phase of the trial, damages, was held on September 6, 2024. O n December 5, 2024, the trial court issued its ruling on damages. T he court calculated damages in the amount of $37,934,100 from FY 2018/2019 through FY2022/2023, however the court has not yet entered a final judgement and requested a further hearing on damages for FY 2023/2024 and the issues of damages. The further hearing is expected in either January or February 2025. In January 2025, the City Council will review the Court’s preliminary r uling on damages and consider future actions to include whether or not to file an appeal of the ruling.

Damages related to Simpson I ceased to accrue as of the City’s adoption of Resolution No. 24042 setting new water rates for fiscal years 2023-24 to 2027- 28 on September 30, 2023. H owever, on January 2 6, 2024, a class action lawsuit entitled Simpson v. City of Riverside (“Simpson II”) was filed against the City, challenging the City’s newly a dopted water rates, again alleging that the Water Revenue Transfer results in the City overcharging for water utility service in violation of Article XIIID, Section 6 of the State Constitution and asking for the same relief as Simpson I. This lawsuit has been stayed pending the resolution of Simpson I.

On January 2 6, 2024, a case entitled Pongs v. City of Riverside, was filed against the City. Pongs is a reverse validation action challenging the validity of the new rates adopted by R esolution No. 24042 for fiscal years 2023-24 to 2027-28. Pongs alleges multiple violations of Article XIII D (also referred herein as Proposition 218) including, inter alia, illegal transfers of water rate revenue from the City’s water utility into the General Fund, invalid tiered rate structures, and improper spending of water rate revenue on categories unrelated to the provision of water service. No hearing date has been set and claims are similar to Simpson I and II.

Note 26. Prior Period Adjustment
The Water Fund has been restated to reflect a capital contribution of $4,140 received in fiscal year 2023. The Water Fund additionally has been restated to reflect an adjustment to two GASB 87 related leases totaling $1,524, which were implemented in fiscal year 2022. The two GASB 87 lease adjustment affected the lease receivable, deferred inflows - Lease related items, Long-term obligations, and other assets for the Water Fund. On the fund statements, this resulted in a net increase in the Water Funds net position of $2,616. On the government-wide statements, this resulted in a net increase of $2,616 in business-type net position.

June 30, 2023
as Previously
Reported
Error
Correction
June 30, 2023
as Restated
Government-wide
Business-type activities $ 1,170,614 $ 2,616 $ 1,173,230 Proprietary funds
Major fund:

Water Fund $ 327,413 $ 2,616 $ 330,029
83 Required Supplementary Information
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 84 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
(amounts expressed in thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Pension Liability
Service cost $ 23,320 $ 22,228 $ 22,189 $ 24,766 $ 25,117 $ 25,017 $ 25,919 $ 26,168 $ 27,830 $ 27,778 Interest on total pension liability 84,965 87,436 90,913 92,725 92,595 96,836 101,080 105,017 105,283 109,814 Changes in assumptions - (23,548) (8,417) (26,068) (19,805) - - - 19,686 - Changes of Benefit Terms - - - - - - - - - 1,795
Differences between expected and actual
experience - (21,782) - 79,037 (37,885) 6,927 6,220 873 (17,684) 12,692 Benefit payments, including refunds of
employee contributions (50,770) (53,853) (57,702) (60,108) (63,483) (67,073) (71,266) (74,608) (79,265) (84,559) Net change in total pension liability 57,515 10,481 46,983 110,352 (3,461) 61,707 61,953 57,450 55,850 67,520 Total pension liability - beginning 1,146,583 1,204,098 1,214,579 1,261,562 1,371,914 1,368,453 1,430,160 1,492,113 1,549,563 1,605,413 Total pension liability - ending (a) $ 1,204,098 $ 1,214,579 $ 1,261,562 $ 1,371,914 $ 1,368,453 $ 1,430,160 $ 1,492,113 $ 1,549,563 $ 1,605,413 $ 1,672,933 Plan Fiduciary Net Position
Net Plan to Plan Resource Movement - - - - - - - (1) - 11 Contributions - employer $ 27,583 $ 25,996 $ 29,426 $ 30,477 $ 29,920 $ 34,627 $ 239,156 $ 26,274 $ 27,329 $ 29,150 Contributions - employees 2,294 4,380 5,187 6,115 9,749 10,286 10,957 10,358 10,788 11,238 Net investment income 145,843 21,671 4,958 104,771 86,307 71,046 56,837 305,548 (122,366) 89,464 Benefit payments, including refunds of
employee contributions (50,770) (53,853) (57,702) (60,108) (63,483) (67,073) (71,266) (74,608) (79,265) (84,559) Administrative and other income/(expenses) - (1,056) (594) (1,290) (4,664) (776) (1,604) (1,371) (1,020) (1,084) Net change in fiduciary net position 124,950 (2,862) (18,725) 79,965 57,829 48,110 234,080 266,200 (164,534) 44,220 Plan fiduciary net position - beginning 848,699 973,649 970,787 952,062 1,032,027 1,089,856 1,137,966 1,372,046 1,638,246 1,473,712 Plan fiduciary net position - ending (b) $ 973,649 $ 970,787 $ 952,062 $ 1,032,027 $ 1,089,856 $ 1,137,966 $ 1,372,046 $ 1,638,246 $ 1,473,712 $ 1,517,932 Plan net pension liability/(assets) - ending
(a) - (b) $ 230,449 $ 243,792 $ 309,500 $ 339,887 $ 278,597 $ 292,194 $ 120,067 $ (88,683) $ 131,701 $ 155,001 Plan fiduciary net position as a percentage
of the total pension liability %80.86 %79.93 %75.47 %75.23 %79.64 %79.57 %91.95 %105.72 %91.80 %90.73 Covered-employee payroll $ 109,990 $ 110,891 $ 118,512 $ 117,637 $ 121,957 $ 128,881 $ 131,492 $ 131,216 $ 130,060 $ 142,170 Plan net pension liability/(asset) as a
percentage of covered-employee payroll %209.52 %219.85 %261.15 %288.93 %228.44 %226.72 %91.31 %(67.59) %101.26 %109.03 Notes to Schedule:

Benefit Changes: In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes of Assumptions: There were no assumption changes in 2023. 85 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
(amounts expressed in thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Pension Liability
Service cost $ 18,818 $ 18,187 $ 18,144 $ 21,373 $ 20,390 $ 21,454 $ 22,391 $ 23,160 $ 25,734 $ 24,896 Interest on total pension liability 62,249 64,815 67,513 70,337 73,104 76,922 80,940 84,654 87,761 91,186 Changes in assumptions - (6,835) (4,373) (18) 868 - - - 43,994 - Changes of benefit terms - - - - - - - - - 454
Differences between expected and actual
experience - (16,117) - 59,768 (4,644) 10,897 11,896 6,361 (3,506) 2,104 Benefit payments, including refunds of
employee contributions (38,981) (42,076) (44,609) (47,009) (50,477) (52,564) (56,537) (59,739) (63,558) (68,451) Net change in total pension liability 42,086 17,974 36,675 104,451 39,241 56,709 58,690 54,436 90,425 50,189 Total pension liability - beginning 840,067 882,153 900,127 936,802 1,041,253 1,080,494 1,137,203 1,195,893 1,250,329 1,340,754 Total pension liability - ending (a) $ 882,153 $ 900,127 $ 936,802 $ 1,041,253 $ 1,080,494 $ 1,137,203 $ 1,195,893 $ 1,250,329 $ 1,340,754 $ 1,390,943 Plan Fiduciary Net Position
Net Plan to Plan Resource Movement - - - - - - - 1 - (11) Contributions - employer $ 23,156 $ 23,384 $ 26,483 $ 26,775 $ 25,451 $ 29,254 $ 263,061 $ 22,931 $ 24,810 $ 26,238 Contributions - employees 365 924 1,837 2,449 6,402 7,679 9,454 10,492 10,557 10,702 Net investment income 107,032 15,632 3,478 76,844 62,933 51,750 41,765 242,945 (97,579) 71,711 Benefit payments, including refunds of
employee contributions (38,981) (42,076) (44,609) (47,009) (50,478) (52,564) (56,537) (59,739) (63,558) (68,451) Administrative and other income/(expenses) - (816) (428) (1,145) (3,403) (567) (1,170) (1,085) (812) (864) Net change in fiduciary net position 91,572 (2,952) (13,239) 57,914 40,905 35,552 256,573 215,545 (126,582) 39,325 Plan fiduciary net position - beginning 620,069 711,641 708,689 695,450 753,364 794,269 829,821 1,086,394 1,301,939 1,175,357 Plan fiduciary net position - ending (b) $ 711,641 $ 708,689 $ 695,450 $ 753,364 $ 794,269 $ 829,821 $ 1,086,394 $ 1,301,939 $ 1,175,357 $ 1,214,682 Plan net pension liability/(assets) - ending
(a) - (b) $ 170,512 $ 191,438 $ 241,352 $ 287,889 $ 286,225 $ 307,382 $ 109,499 $ (51,610) $ 165,397 $ 176,261 Plan fiduciary net position as a percentage
of the total pension liability %80.67 %78.73 %74.24 %72.35 %73.51 %72.97 %90.84 %104.13 %87.66 %87.33 Covered-employee payroll $ 63,734 $ 63,612 $ 68,707 $ 66,226 $ 68,251 $ 73,237 $ 76,955 $ 78,813 $ 77,338 $ 77,810 Plan net pension liability/(asset) as a
percentage of covered-employee payroll %267.54 %300.95 %351.28 %434.71 %419.37 %419.71 %142.29 %(65.48) %213.86 %226.53 Notes to Schedule:

Benefit Changes: In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes of Assumptions: There were no assumption changes in 2023. 86 CITY OF RIVERSIDE

SCHEDULE OF PENSION PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(amounts expressed in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Miscellaneous Plan
Actuarially determined contribution $ 21,063 $ 24,885 $ 26,955 $ 29,948 $ 34,486 $ 38,889 $ 26,274 $ 27,330 $ 29,144 $ 21,237 Contribution in relation to the actuarially determined contribution (25,997) (29,426) (30,477) (29,948) (34,486) (239,220) (26,274) (27,330) (29,144) (21,237) Contribution deficiency/(excess) $ (4,934) $ (4,541) $ (3,522) $ - $ - $ (200,331) $ - $ - $ - $ - Covered-employee payroll $ 110,891 $ 118,512 $ 117,637 $ 121,957 $ 128,881 $ 131,492 $ 131,216 $ 130,060 $ 142,170 $ 157,294 Contributions as a percentage of covered-employee payroll %23.44 %24.83 %25.91 %24.56 %26.76 %181.93 %20.02 %21.01 %20.50 %13.50 Safety Plan
Actuarially determined contribution $ 18,452 $ 21,886 $ 23,076 $ 25,289 $ 29,047 $ 32,785 $ 22,925 $ 24,773 $ 26,195 $ 26,564 Contribution in relation to the actuarially determined contribution (23,384) (26,483) (26,775) (25,289) (29,047) (263,016) (22,925) (24,773) (26,195) (26,564) Contribution deficiency/(excess) $ (4,932) $ (4,597) $ (3,699) $ - $ - $ (230,231) $ - $ - $ - $ - Covered-employee payroll $ 63,612 $ 68,707 $ 66,226 $ 68,251 $ 73,237 $ 76,955 $ 78,813 $ 77,338 $ 77,810 $ 86,210 Contributions as a percentage of covered-employee payroll %36.76 %38.54 %40.43 %37.05 %39.66 %341.78 %29.09 %32.03 %33.67 %30.81 Notes to Schedule:

Actuarial valuation date: June 30, 2021
Actuarial cost method: Entry Age Normal
Amortization method/period: June 30, 2021 CalPERS Funding Valuation Report Asset valuation method: Fair value of assets
Discount rate: 6.8%
Overall payroll growth: 2.8%
Inflation: 2.3%
Retirement age: 2021 CalPERS experience study
Mortality:
2021 CalPERS Experience Study, projected generationall for future years using 80 percent of the Society of Actuaries' Scale MP-2020.
87 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 2022 2023 2024 Measurement period June 30, 2017 2018 2019 2020 2021 2022 2023 Total OPEB liability
Service cost $ 2,554 $ 2,403 $ 2,435 $ 2,569 $ 2,646 $ 3,184 $ 2,576 Interest on the total OPEB liability 1,090 1,301 1,392 1,810 1,394 1,070 1,622 Differences between expected and actual
experience - - 292 (2,300) (2,267) - 1,173
Changes in assumptions (1,668) (306) 9,550 2,225 (3,086) (5,926) (274) Benefit payments (1,732) (1,846) (2,003) (2,032) (2,193) (1,627) (1,838) Net change in total OPEB liability 244 1,552 11,666 2,272 (3,506) (3,299) 3,259 Total OPEB liability - beginning 36,542 36,786 38,338 50,004 52,276 48,770 45,471 Total OPEB liability - ending $ 36,786 $ 38,338 $ 50,004 $ 52,276 $ 48,770 $ 45,471 $ 48,730 Covered-employee payroll $ 170,858 $ 170,858 $ 185,967 $ 191,546 $ 197,292 $ 203,211 $ 209,307 Total OPEB liability as a percentage of
covered-employee payroll %21.53 %22.44 %26.89 %27.29 %24.72 %22.38 %23.28 (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.

Notes to Schedule:

Changes in assumptions: For the measurement period ending June 30, 2023, the discount rate was changed from 3.54 percent to 3.65 percent.

There are no asset accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan. 88 Non-Major 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 b y 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 - T o 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 - T o 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 Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.

Special Capital Improvement Fund - T o account for the acquisition, construction and installation of capital improvements and a Community F acilities District within the City.

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

Transportation Fund - T o 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 Funds are 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. 89 CITY OF RIVERSIDE

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Special Revenue Funds
Urban Areas
Security
Initiative
Grants and
Restricted
Programs Gas Tax
Air Quality
Improvements
Housing &
Community
Development
NPDES
Strom Drain
Special
Districts Housing Total
Assets:

Cash and investments $ - $ 46,419 $ 32,025 $ 2,301 $ 13,260 $ - $ 1,169 $ 8,015 $ 103,189 Cash and investments with fiscal agent - - - - - - - - - Receivables, net of allowance for uncollectible
Interest - 230 167 12 72 - 4 44 529
Property taxes - - - - - - 88 - 88
Accounts - 132 - - 23 - - 13 168
Intergovernmental 1,585 5,229 1,593 105 6,195 1,600 - - 16,307 Notes - - - - 16,374 - - 34,824 51,198
Prepaid items - 156 - - - - - - 156
Land and improvements held for resale - - - - 443 - - 686 1,129 Total assets $ 1,585 $ 52,166 $ 33,785 $ 2,418 $ 36,367 $ 1,600 $ 1,261 $ 43,582 $ 172,764 Liabilities, Deferred Inflows of Resources, and
Fund Balances:

Liabilities:

Accounts payable $ 677 $ 2,043 $ 1,836 $ 400 $ 943 $ 365 $ 32 $ 16 $ 6,312 Accrued payroll - 27 - - 23 8 - 13 71
Retainage payable - 192 241 - 173 7 - 24 637
Intergovernmental 4 - - - - - 1 - 5
Unearned revenue - 43,141 - - 15,790 - - - 58,931
Deposits - - - - - - - 35 35
Due to other funds 904 - - - - 645 - - 1,549
Total liabilities 1,585 45,403 2,077 400 16,929 1,025 33 88 67,540 Deferred Inflows of Resources:

Unavailable revenue - 514 - - 16,817 - - 34,825 52,156
Total deferred inflows of resources - 514 - - 16,817 - - 34,825 52,156 Fund Balances:

Nonspendable:

Inventories, prepaids, and deposits - 156 - - - - - - 156 Permanent fund principal - - - - - - - - -
Restricted:

Housing and redevelopment - - - - 2,621 - - 8,669 11,290 Transportation and public works - 6,093 31,708 2,018 - 575 1,228 - 41,622 Other purposes - - - - - - - - -
Total fund balances - 6,249 31,708 2,018 2,621 575 1,228 8,669 53,068 Total liabilities, deferred inflows of
resources, and fund balances $ 1,585 $ 52,166 $ 33,785 $ 2,418 $ 36,367 $ 1,600 $ 1,261 $ 43,582 $ 172,764 90 CITY OF RIVERSIDE

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Capital Projects Funds
Permanent
Fund
Special Capital
Improvement Storm Drain Transportation Total Library Special Total
Non-Major
Governmental
Funds
Assets:

Cash and investments $ 9,537 $ 837 $ 5 $ 10,379 $ 1,676 $ 115,244 Cash and investments with fiscal agent 330 - - 330 - 330 Receivables, net of allowance for uncollectible
Interest 49 4 - 53 - 582
Property taxes - - - - - 88
Accounts - - - - - 168
Intergovernmental - 157 - 157 - 16,464
Notes - - - - - 51,198
Prepaid items - - - - - 156
Land and improvements held for resale - - - - - 1,129
Total assets $ 9,916 $ 998 $ 5 $ 10,919 $ 1,676 $ 185,359 Liabilities, Deferred Inflows of Resources, and Fund Balances:

Liabilities:

Accounts payable $ - $ 3 $ 5 $ 8 $ - $ 6,320
Accrued payroll - - - - - 71
Retainage payable 5 - - 5 - 642
Intergovernmental - - - - - 5
Unearned revenue - - - - - 58,931
Deposits - - - - - 35
Due to other funds - - - - - 1,549
Total liabilities 5 3 5 13 - 67,553
Deferred Inflows of Resources:

Unavailable revenue - - - - - 52,156
Total deferred inflows of resources - - - - - 52,156
Fund Balances:

Nonspendable:

Inventories, prepaids, and deposits - - - - - 156
Permanent fund principal - - - - 1,676 1,676
Restricted:

Housing and redevelopment - - - - - 11,290
Transportation and public works - - - - - 41,622
Other purposes 9,911 995 - 10,906 - 10,906
Total fund balances 9,911 995 - 10,906 1,676 65,650
Total liabilities, deferred inflows of resources, and fund balances $ 9,916 $ 998 $ 5 $ 10,919 $ 1,676 $ 185,359 91 CITY OF RIVERSIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Special Revenue Funds
Urban Areas
Security
Initiative
Grants and
Restricted
Programs Gas Tax
Air Quality
Improvements
Housing &
Community
Development
NPDES
Strom Drain
Special
Districts Housing Total
Revenues:

Licenses and permits $ - $ - $ - $ - $ - $ - $ - $ - $ - Intergovernmental 1,882 24,645 16,648 423 18,843 - - - 62,441 Charges for services - 1,782 - 41 - - - - 1,823
Special assessments - - - - - 1,600 4,264 - 5,864
Rental and investment income - 1,157 1,363 78 387 3 15 264 3,267 Miscellaneous - 994 124 - 110 - - 128 1,356
Total revenues 1,882 28,578 18,135 542 19,340 1,603 4,279 392 74,751 Expenditures:

Current:

General government - 10,477 - 94 1,610 - - 2,807 14,988 Public safety 1,882 8,373 - - 216 - 4,996 - 15,467
Highways and streets - 162 - - - - 512 - 674
Culture and recreation - 4,479 - - - - 10 - 4,489
Capital outlay - 1,135 18,559 400 14,944 1,627 - - 36,665 Debt service:

Principal - 52 - - 31 - - 68 151
Interest and fiscal charges - 3 - - 13 - - 28 44
Total expenditures 1,882 24,681 18,559 494 16,814 1,627 5,518 2,903 72,478 Excess/(deficiency) of revenues over/(under)
expenditures - 3,897 (424) 48 2,526 (24) (1,239) (2,511) 2,273 Other Financing Sources/(Uses):

Transfers in - 611 - - 41 - 1,561 - 2,213
Transfers out - (1,616) - - - - - (41) (1,657)
Proceeds from sale of capital assets - 1 - - - - - - 1
Issuance of debt related to leases and subscriptions - 150 - - - - - - 150 Total other financing sources/(uses) - (854) - - 41 - 1,561 (41) 707 Net change in fund balances - 3,043 (424) 48 2,567 (24) 322 (2,552) 2,980 Fund Balances:

Beginning of year - 3,206 32,132 1,970 54 599 906 11,221 50,088 End of year $ - $ 6,249 $ 31,708 $ 2,018 $ 2,621 $ 575 $ 1,228 $ 8,669 $ 53,068 92 CITY OF RIVERSIDE

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Capital Projects Funds
Permanent
Fund
Special Capital
Improvement Storm Drain Transportation Total Library Special Total
Non-Major
Governmental
Funds
Revenues:

Licenses and permits $ 3,687 $ 188 $ - $ 3,875 $ - $ 3,875 Intergovernmental - 199 162 361 - 62,802
Charges for services - - - - - 1,823
Special assessments - - - - - 5,864
Rental and investment income 312 27 - 339 33 3,639
Miscellaneous - - - - 150 1,506
Total revenues 3,999 414 162 4,575 183 79,509
Expenditures:

Current:

General government 55 - - 55 - 15,043
Public safety - - - - - 15,467
Highways and streets - - - - - 674
Culture and recreation - - - - 149 4,638
Capital outlay 185 300 162 647 - 37,312
Debt service:

Principal - - - - - 151
Interest and fiscal charges - - - - - 44
Total expenditures 240 300 162 702 149 73,329
Excess/(deficiency) of revenues over/(under) expenditures 3,759 114 - 3,873 34 6,180 Other Financing Sources/(Uses):

Transfers in - - - - - 2,213
Transfers out (1,750) - - (1,750) - (3,407)
Proceeds from sale of capital assets - - - - - 1
Issuance of debt related to leases and subscriptions - - - - - 150 Total other financing sources/(uses) (1,750) - - (1,750) - (1,043) Net change in fund balances 2,009 114 - 2,123 34 5,137
Fund Balances:

Beginning of year 7,902 881 - 8,783 1,642 60,513
End of year $ 9,911 $ 995 $ - $ 10,906 $ 1,676 $ 65,650 93 CITY OF RIVERSIDE

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

NON-MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Urban Areas Security Initiative Grants and Restricted Programs Gas Tax Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues:

Intergovernmental $ 12,866 $ 1,882 $ (10,984) $ 131,342 $ 24,645 $ (106,697) $ 17,337 $ 16,648 $ (689) Charges for services - - - 1,447 1,782 335 - - -
Rental and investment income - - - 94 1,157 1,063 150 1,363 1,213 Miscellaneous - - - 1,300 994 (306) - 124 124
Total revenues 12,866 1,882 (10,984) 134,183 28,578 (105,605) 17,487 18,135 648 Expenditures:

Current:

General government - - - 34,825 10,477 24,348 - - -
Public safety 12,866 1,882 10,984 13,622 8,373 5,249 - - - Highways and streets - - - 1,143 162 981 - - -
Culture and recreation - - - 40,704 4,479 36,225 - - -
Capital outlay - - - 47,471 1,135 46,336 44,927 18,559 26,368 Principal - - - - 52 (52) - - -
Interest and fiscal charges - - - - 3 (3) - - -
Total expenditures 12,866 1,882 10,984 137,765 24,681 113,084 44,927 18,559 26,368 Excess/(deficiency) of revenues
over/(under) expenditures - - - (3,582) 3,897 7,479 (27,440) (424) 27,016 Other Financing Sources/(Uses):

Transfers in - - - 2,814 611 (2,203) - - -
Transfers out - - - (4,065) (1,616) 2,449 - - -
Proceeds from sale of capital assets - - - - 1 1 - - -
Issuance of debt related to leases and
subscriptions - - - - 150 150 - - -
Total other financing
sources/(uses) - - - (1,251) (854) 397 - - -
Net change in fund balance - - - (4,833) 3,043 7,876 (27,440) (424) 27,016 Fund Balances:

Beginning of year - - - 3,206 3,206 - 32,132 32,132 -
End of year $ - $ - $ - $ (1,627) $ 6,249 $ 7,876 $ 4,692 $ 31,708 $ 27,016 94 CITY OF RIVERSIDE

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

NON-MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Air Quality Improvements Housing & Community Development NPDES Strom Drain Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues:

Intergovernmental $ 428 $ 423 $ (5) $ 40,518 $ 18,843 $ (21,675) $ 397 $ - $ (397) Charges for services 100 41 (59) - - - - - -
Special assessments - - - - - - 1,756 1,600 (156)
Rental and investment income - 78 78 239 387 148 - 3 3
Miscellaneous - - - 1,202 110 (1,092) - - -
Total revenues: 528 542 14 41,959 19,340 (22,619) 2,153 1,603 (550) Expenditures:

Current:

General government 527 94 433 9,061 1,610 7,451 - - -
Public safety - - - 344 216 128 - - -
Capital outlay 400 400 - 49,597 14,944 34,653 2,456 1,627 829 Debt service:

Principal - - - 31 31 - - - -
Interest and fiscal charges - - - 13 13 - - - -
Total expenditures 927 494 433 59,046 16,814 42,232 2,456 1,627 829 Excess/(deficiency) of revenues
over/(under) expenditures (399) 48 447 (17,087) 2,526 19,613 (303) (24) 279 Other Financing Sources/(Uses):

Transfers in - - - - 41 41 - - -
Transfers out - - - - - - - - -
Total other financing
sources/(uses) - - - - 41 41 - - -
Net change in fund balances (399) 48 447 (17,087) 2,567 19,654 (303) (24) 279 Fund Balances:

Beginning of year 1,970 1,970 - 54 54 - 599 599 -
End of year $ 1,571 $ 2,018 $ 447 $ (17,033) $ 2,621 $ 19,654 $ 296 $ 575 $ 279 95 CITY OF RIVERSIDE

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

NON-MAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Special Districts Housing
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues
Special assessments $ 4,146 $ 4,264 $ 118 $ - $ - $ -
Rental and investment income - 15 15 - 264 264
Miscellaneous - - - - 128 128
Total revenues 4,146 4,279 133 - 392 392
Expenditures:

Current:

General government - - - 2,549 2,807 (258)
Public safety 4,793 4,996 (203) - - -
Highways and streets 984 512 472 - - -
Culture and recreation 417 10 407 - - -
Debt service:

Principal - - - 68 68 -
Interest and fiscal charges - - - 28 28 -
Total expenditures 6,194 5,518 676 2,645 2,903 (258)
Excess/(deficiency) of revenues over/(under) expenditures (2,048) (1,239) 809 (2,645) (2,511) 134 Other Financing Sources/(Uses):

Transfers in 1,433 1,561 128 9,267 - (9,267)
Transfers out - - - (9,267) (41) (9,226)
Total other financing sources/(uses) 1,433 1,561 128 - (41) (41) Net change in fund balances (615) 322 937 (2,645) (2,552) 93 Fund Balances:

Beginning of year 906 906 - 11,221 11,221 -
End of year $ 291 $ 1,228 $ 937 $ 8,576 $ 8,669 $ 93
96 CITY OF RIVERSIDE

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Capital Outlay Fund Special Capital Improvement Storm Drain Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues:

Licenses and permits $ - $ - $ - $ 2,585 $ 3,687 $ 1,102 $ 184 $ 188 $ 4 Intergovernmental 70,447 12,186 (58,261) - - - 23,084 199 (22,885) Special assessments 697 1,006 309 - - - - - -
Rental and investment income 180 2,989 2,809 30 312 282 13 27 14 Miscellaneous - 341 341 - - - - - -
Total revenues 71,324 16,522 (54,802) 2,615 3,999 1,384 23,281 414 (22,867) Expenditures:

Current:

General government - - - 55 55 - - - -
Capital outlay 241,784 30,916 210,868 1,085 185 900 23,895 300 23,595 Debt service:

Interest and fiscal charges 2 - 2 - - - - - -
Total expenditures 241,786 30,916 210,870 1,140 240 900 23,895 300 23,595 Excess/(deficiency) of revenues
over/(under) expenditures (170,462) (14,394) 156,068 1,475 3,759 2,284 (614) 114 728 Other Financing Sources/(Uses):

Transfers in 33,050 33,050 - - - - - - -
Transfers out (3,142) (3,142) - (1,750) (1,750) - - - - Issuance of long-term debt 78,000 - (78,000) - - - - - - Total other financing
sources/(uses) 107,908 29,908 (78,000) (1,750) (1,750) - - - - Net change in fund balance (62,554) 15,514 78,068 (275) 2,009 2,284 (614) 114 728 Fund Balances:

Beginning of year 82,801 82,801 - 7,902 7,902 - 881 881 - End of year $ 20,247 $ 98,315 $ 78,068 $ 7,627 $ 9,911 $ 2,284 $ 267 $ 995 $ 728 97 CITY OF RIVERSIDE

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Transportation
Final Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues:

Intergovernmental $ 163 $ 162 $ (1)
Total revenues 163 162 (1)
Expenditures:

Capital outlay 163 162 1
Total expenditures 163 162 1
Other Financing Sources/(Uses):

Transfers in - - -
Fund Balances:

Beginning of year - - -
End of year $ - $ - $ -
98 Non-Major Enterprise Funds
Enterprise Funds are 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 - To account for the operations of the City's airport.

Refuse - 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 Parking - To account for the operations and construction of the City's public parking facilities.

Civic Entertainment - To account for the operations of the Riverside Fox Theater, Riverside Municipal Auditorium, The Box and Showcase, the Riverside Convention Center, and the Cheech.
99 CITY OF RIVERSIDE

COMBINING STATEMENT OF NET POSITION

NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Assets:

Current assets:

Cash and investments $ 2,758 $ 14,085 $ - $ 7,793 $ 4,790 $ 29,426 Receivables, net of allowance for uncollectible
Interest 20 84 - 46 16 166
Utility billed - 1,920 - - - 1,920
Utility unbilled - 1,202 - - - 1,202
Accounts 397 330 35 24 565 1,351
Property taxes 5 - - - - 5
Intergovernmental 1 - 986 62 - 1,049
Leases receivable 240 - - 42 - 282
Inventory - - - - 80 80
Prepaid items - 6 - - 65 71
Deposits - - - - 300 300
Restricted assets:

Cash and cash equivalents - 2,500 - - - 2,500
Total current assets 3,421 20,127 1,021 7,967 5,816 38,352 Noncurrent assets:

Restricted assets:

Cash and investments at fiscal agent 38 259 - 69 - 366
Leases receivable 2,532 - - 2,060 - 4,592
Regulatory assets - 8,460 - - - 8,460
Derivative instruments - - - - 1,108 1,108
Capital assets, not depreciated 10,832 134 - 9,912 2,196 23,074 Capital assets, net of depreciation 9,695 3,300 1,660 17,943 85,215 117,813 Lease and subscription assets, net of amortization 7 3 9 89 - 108 Total noncurrent assets 23,104 12,156 1,669 30,073 88,519 155,521 Total assets 26,525 32,283 2,690 38,040 94,335 193,873
Deferred Outflows of Resources:

Changes in derivative values - - - - 449 449
Deferred charge on refunding - - - - 513 513
Pension related items 321 2,388 1,572 636 - 4,917
OPEB related items 21 180 125 19 - 345
Total deferred outflows of resources 342 2,568 1,697 655 962 6,224 (Continued)
100

CITY OF RIVERSIDE

COMBINING STATEMENT OF NET POSITION

NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Liabilities:

Current liabilities:

Accounts payable 333 3,276 669 571 2,439 7,288
Accrued payroll 17 188 62 27 - 294
Retainage payable 39 - - 125 - 164
Unearned revenue 33 - - - 74 107
Deposits - - - - 850 850
Accrued interest - - - 41 - 41
Due to other funds - - 233 - - 233
Long-term obligations 68 491 196 1,265 4,289 6,309
Compensated absences 72 325 120 39 - 556
Landfill capping - 559 - - - 559
OPEB liability 6 54 28 11 - 99
Lease liability 1 - 2 75 - 78
SBITA liability - 1 - - - 1
Total current liabilities 569 4,894 1,310 2,154 7,652 16,579 Noncurrent liabilities:

Long-term obligations 556 3,685 1,770 11,349 49,469 66,829 Compensated absences 15 71 26 9 - 121
Advances from other funds - - - 2,000 - 2,000
Landfill capping - 8,385 - - - 8,385
Regulatory liability - - - - 45 45
Derivative instruments - - - - 980 980
Net pension liability 458 3,404 2,241 907 - 7,010
OPEB liability 156 1,361 702 288 - 2,507
Lease liability 6 - 7 17 - 30
Total noncurrent liabilities 1,191 16,906 4,746 14,570 50,494 87,907 Total liabilities 1,760 21,800 6,056 16,724 58,146 104,486 Deferred Inflows of Resources:

Change in derivative values - - - - 1,081 1,081
Pension related items 20 146 96 39 - 301
OPEB related items 27 241 137 54 - 459
Lease related items 2,807 - - 2,077 - 4,884
Total deferred inflows of resources 2,854 387 233 2,170 1,081 6,725 Net Position:

Net investment in capital assets 20,488 3,051 1,660 16,082 34,166 75,447 Restricted net position:

Landfill capping - 2,500 - - - 2,500
Unfunded accrued liability 38 259 - 69 - 366
Unrestricted/(deficit) 1,727 6,854 (3,562) 3,650 1,904 10,573 Total net position $ 22,253 $ 12,664 $ (1,902) $ 19,801 $ 36,070 $ 88,886 101

CITY OF RIVERSIDE

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Operating Revenues:

Charges for services $ 2,039 $ 33,444 $ 276 $ 10,228 $ 22,000 $ 67,987 Total operating revenues 2,039 33,444 276 10,228 22,000 67,987 Operating Expenses:

Personnel services 804 6,949 3,400 735 - 11,888
Contractual services 133 7,592 118 4,538 8,184 20,565
Maintenance and operation 356 12,646 556 704 716 14,978 General 238 4,916 918 291 17,366 23,729
Materials and supplies 30 1,944 212 29 - 2,215
Claims/Insurance 102 193 89 135 443 962
Depreciation 751 765 285 1,004 3,077 5,882
Amortization 2 569 1 74 - 646
Total operating expenses 2,416 35,574 5,579 7,510 29,786 80,865 Operating income/(loss) (377) (2,130) (5,303) 2,718 (7,786) (12,878) Nonoperating Revenues/(Expenses):

Grant subsidies 46 - 4,257 - - 4,303
Interest revenue 126 386 156 204 178 1,050
Interest expense and fiscal charges (22) (143) (69) (536) (1,771) (2,541) Other 113 452 86 247 100 998
Gain/(loss) on disposal of capital assets (21) 3 - (58) - (76) Total nonoperating revenues/(expenses): 242 698 4,430 (143) (1,493) 3,734 Income/(loss) before contributions and transfers (135) (1,432) (873) 2,575 (9,279) (9,144) Capital contributions 69 - 400 - - 469
Transfers in 1,000 83 - 900 9,972 11,955
Transfers out - - - (2,112) - (2,112)
Change in net position 934 (1,349) (473) 1,363 693 1,168 Net Position
Beginning of year 21,319 14,013 (1,429) 18,438 35,377 87,718 End of year $ 22,253 $ 12,664 $ (1,902) $ 19,801 $ 36,070 $ 88,886 102

CITY OF RIVERSIDE

COMBINING STATEMENT OF CASH FLOWS

NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Cash Flows from Operating Activities:

Cash received from customers and users $ 2,026 $ 33,655 $ 268 $ 10,419 $ 25,157 $ 71,525 Cash paid to suppliers for goods or services (630) (26,253) (1,255) (5,681) (25,576) (59,395) Cash paid to employees for services (712) (6,216) (2,948) (529) - (10,405) Net cash provided/(used) by operating activities 684 1,186 (3,935) 4,209 (419) 1,725 Cash Flows from Non-Capital Financing Activities:

Transfers in 1,000 83 - 900 9,973 11,956
Transfers out - - - (2,112) - (2,112)
Payment received from other funds - - 233 - - 233
Payment receipt from advances to other funds - - - 2,000 - 2,000 Debt service payment on pension obligation bonds (62) (348) (178) (90) - (678) Other non-operating receipts (payments) 60 451 86 (25) 98 670 Grant subsidies (repayments) 46 - (1,341) - - (1,295)
Net cash provided/(used) by non-capital financing activities 1,044 186 (1,200) 673 10,071 10,774 Cash Flows from Capital and Related Financing Activities:

Purchase of capital assets (805) (116) - (1,047) (1,416) (3,384) Proceeds from sales of capital assets - 3 - 158 - 161
Principal paid on long-term obligations - (105) - (1,153) (4,163) (5,421) Interest paid on long-term obligations (23) (143) (69) (540) (1,794) (2,569) Contributions 69 - 400 - - 469
Lease and subscription payments (6) (7) (2) (76) - (91) Net cash provided/(used) by capital and related financing activities (765) (368) 329 (2,658) (7,373) (10,835) Cash Flows from Investing Activities:

Interest from investments 116 359 173 180 178 1,006
Proceeds from investment securities (38) (259) - (69) - (366) Net cash provided/(used) by investing activities 78 100 173 111 178 640 Net increase/(decrease) in cash and cash equivalents 1,041 1,104 (4,633) 2,335 2,457 2,304 Cash and cash equivalents at beginning of year 1,717 15,481 4,633 5,458 2,333 29,622 Cash and cash equivalents at end of year (excluding noncurrent cash and investments at fiscal agent) $ 2,758 $ 16,585 $ - $ 7,793 $ 4,790 $ 31,926 103

CITY OF RIVERSIDE

COMBINING STATEMENT OF CASH FLOWS

NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Reconciliation of Operating Income to Net Cash Provided/(Used) by Operating Activities:

Operating income/(loss) $ (377) $ (2,130) $ (5,303) $ 2,718 $ (7,786) $ (12,878) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities:

Depreciation 751 765 285 1,004 3,077 5,882
Amortization 2 569 1 74 - 646
(Increase)/decrease in utility billed receivable - 256 - - - 256 (Increase)/decrease in utility unbilled receivable - (105) - - - (105) (Increase)/decrease in accounts receivable (106) 53 (10) 246 (188) (5) (Increase)/decrease in property tax receivable (5) - - - - (5) (Increase)/decrease in intergovernmental receivable 109 - - (55) 3,135 3,189 (Increase)/decrease in inventory - - - - 9 9
(Increase)/decrease in prepaid items - 2 - - 13 15
Increase/(decrease) in accounts payable 184 1,505 639 (42) 1,210 3,496 Increase/(decrease) in accrued payroll 4 65 12 8 - 89
Increase/(decrease) in retainage payable 38 - - 63 (100) 1 Increase/(decrease) in unearned revenue (8) - - - 43 35 Increase/(decrease) in deposits payable - - - - 168 168 Increase/(decrease) in compensated absences 10 12 (34) 14 - 2 Increase/(decrease) in landfill capping liability - (481) - - - (481) Changes in net pension liability/(asset) and related deferred inflows/(outflows) of resources 75 614 443 165 - 1,297
Changes in OPEB liability and related deferred inflows/(outflows) of resources 7 61 32 14 - 114 Total adjustments 1,061 3,316 1,368 1,491 7,367 14,603
Net cash provided/(used) by operating activities $ 684 $ 1,186 $ (3,935) $ 4,209 $ (419) $ 1,725 Reconciliation of Statements of Cash Flows to Statement of Net Position:

Cash and investments $ 2,758 $ 14,085 $ - $ 7,793 $ 4,790 $ 29,426 Cash and cash equivalents - 2,500 - - - 2,500
Cash and cash equialents at end of year $ 2,758 $ 16,585 $ - $ 7,793 $ 4,790 $ 31,926 104
Internal Service Funds
Internal Service Funds are 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 - To account for the operations of the City's centralized supplies inventory, including receiving and delivery s ervices provided to City departments.

Central Garage - To account for the maintenance and repair of all city-owned vehicles and motorized equipment, except for Police vehicles. 105

CITY OF RIVERSIDE

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Governmental Activities - Internal Service Funds
Self Insurance
Trust Central Stores Central Garage
Total Internal
Service Funds
Assets:

Current assets:

Cash and investments $ 32,545 $ - $ 11,702 $ 44,247
Receivables, net of allowance for uncollectible
Interest 164 - 62 226
Accounts 650 - 57 707
Intergovernmental 28 - 48 76
Inventory - 9,641 446 10,087
Total current assets 33,387 9,641 12,315 55,343
Noncurrent assets:

Capital assets, not depreciated - 11 659 670
Capital assets, net of depreciation - 62 8,425 8,487
Lease and subscription assets, net of amortization 11 - 12 23 Total noncurrent assets 11 73 9,096 9,180
Total assets 33,398 9,714 21,411 64,523
Deferred Outflows of Resources:

Pension related items 504 366 1,666 2,536
OPEB related items 44 26 108 178
Total deferred outflows of resources 548 392 1,774 2,714 Liabilities:

Current liabilities:

Accounts payable 134 348 269 751
Accrued payroll 25 15 77 117
Due to other funds - 1,443 - 1,443
Long-term obligations 51 54 523 628
Compensated absences 91 18 246 355
Claims and judgments 16,921 - - 16,921
OPEB liability 7 7 32 46
Lease liability 2 - 2 4
SBITA liability - - 1 1
Total current liabilities 17,231 1,885 1,150 20,266
Noncurrent liabilities:

Long-term obligations 475 475 3,197 4,147
Compensated absences 13 3 34 50
Claims and judgments 84,696 - - 84,696
Net pension liability 718 521 2,375 3,614
OPEB liability 182 184 801 1,167
Lease liability 9 - 7 16
Total noncurrent liabilities 86,093 1,183 6,414 93,690
Total liabilities 103,324 3,068 7,564 113,956
Deferred Inflows of Resources:

Pension related items 30 22 102 154
OPEB related items 48 40 122 210
Total deferred inflows of resources 78 62 224 364
Net Position:

Net investment in capital assets - 73 9,086 9,159
Unrestricted/(deficit) (69,456) 6,903 6,311 (56,242)
Total net position $ (69,456) $ 6,976 $ 15,397 $ (47,083) 106

CITY OF RIVERSIDE

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Governmental Activities - Internal Service Funds
Self Insurance
Trust Central Stores Central Garage
Total Internal
Service Funds
Operating Revenues:

Charges for services $ 23,591 $ 1,519 $ 12,201 $ 37,311 Total operating revenues 23,591 1,519 12,201 37,311
Operating Expenses:

Personnel services 1,436 812 3,851 6,099
Contractual services 523 38 298 859
Maintenance and operation 5 28 4,173 4,206
General 5,857 19 1,465 7,341
Materials and supplies 3 12 179 194
Claims/Insurance 63,986 12 208 64,206
Depreciation - 11 1,158 1,169
Amortization 4 1 4 9
Total operating expenses 71,814 933 11,336 84,083
Operating income (loss) (48,223) 586 865 (46,772)
Nonoperating Revenues/(Expenses):

Interest revenue 1,619 - 507 2,126
Interest expense and fiscal charges (18) (19) (148) (185) Other 1,895 1 4 1,900
Gain/(loss) on disposal of capital assets - - 47 47
Total nonoperating revenues/(expenses) 3,496 (18) 410 3,888 Income/(loss) before contributions and operating
transfers (44,727) 568 1,275 (42,884)
Capital contributions - - 34 34
Change in net position (44,727) 568 1,309 (42,850)
Beginning of year (24,729) 6,408 14,088 (4,233)
End of year $ (69,456) $ 6,976 $ 15,397 $ (47,083)
107

CITY OF RIVERSIDE

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Governmental Activities - Internal Service Funds
Self Insurance
Trust Central Stores
Central
Garage
Total Internal
Service Funds
Cash Flows from Operating Activities:

Cash received from customers and users $ 1 $ 1 $ - $ 2
Cash received from interfund services provided 23,044 1,519 12,381 36,944 Cash paid to suppliers for goods and services (22,009) (1,437) (6,351) (29,797) Cash paid to employees for services (1,257) (811) (3,396) (5,464) Net cash provided/(used) by operating activities (221) (728) 2,634 1,685 Cash Flows from Non-Capital Financing Activities:

Payments received from other funds - 798 - 798
Debt service payment on pension obligation bonds (46) (49) (254) (349) Other non-operating receipts 1,894 - 3 1,897
Net cash provided/(used) by non-capital financing activities 1,848 749 (251) 2,346 Cash Flows from Capital and Related Financing Activities:

Purchase of capital assets - (1) (1,904) (1,905)
Proceeds from sales of capital assets - - 74 74
Interest paid on long-term obligations (19) (19) (148) (186) Contributions - - 34 34
Lease and subscription payments (4) (1) (6) (11)
Net cash provided/(used) by capital and related financing activities (23) (21) (1,950) (1,994)
Cash Flows from Investing Activities:

Interest from investments 1,555 - 483 2,038
Net cash provided/(used) by capital and related financing activities 1,555 - 483 2,038
Net increase/(decrease) in cash and cash equivalents 3,159 - 916 4,075 Cash and cash equivalents at beginning of year 29,386 - 10,786 40,172 Cash and cash equivalents at end of year $ 32,545 $ - $ 11,702 $ 44,247 Reconciliation of Operating Income to Net Cash Provided/(Used) by Operating Activities:

Operating income/(loss) $ (48,223) $ 586 $ 865 $ (46,772) Adjustments to Reconcile Operating Income/(Loss) Net Cash Provided/(Used) by Operating Activities:

Depreciation - 11 1,158 1,169
Amortization 4 1 4 9
(Increase)/decrease in accounts receivable (580) - (1) (581) (Increase)/decrease in intergovernmental receivable 32 - 181 213 (Increase)/decrease in inventory - (1,049) 30 (1,019)
(Increase)/decrease in prepaid items - - 2 2
Increase/(decrease) in accounts payable (141) (279) (59) (479) Increase/(decrease) in accrued payroll 8 1 11 20
Increase/(decrease) in compensated absences 39 (100) - (61) Increase/(decrease) in claims and judgments 48,505 - - 48,505 Changes in net pension liability/(asset) and related deferred inflows/(outflows) of resources 123 92 409 624
Changes in OPEB liability and related deferred inflows/(outflows) of resources 12 9 34 55
Total adjustments 48,002 (1,314) 1,769 48,457
Net cash provided/(used) by operating activities $ (221) $ (728) $ 2,634 $ 1,685 108

Combining General Fund and Capital Outlay Fund Schedules with Measure Z Fund Activity
109

CITY OF RIVERSIDE

BALANCE SHEET

COMBINING GENERAL FUND SCHEDULE
JUNE 30, 2024
(amounts expressed in thousands)
General Fund Measure Z Fund
Total General
Fund
Assets:

Cash and investments $ 152,585 $ 66,124 $ 218,709
Cash and investments with fiscal agent 60,166 - 60,166
Receivables, net of allowance for uncollectible
Interest 794 337 1,131
Property taxes 1,884 - 1,884
Sales taxes 15,713 14,537 30,250
Utility billed 1,347 - 1,347
Utility unbilled 1,198 - 1,198
Accounts 9,257 1 9,258
Intergovernmental 4,182 - 4,182
Notes 10 - 10
Leases receivable 10,554 - 10,554
Prepaid items 1,797 181 1,978
Due from other funds 3,225 - 3,225
Land and improvements held for resale 175 - 175
Advances to other funds 2,000 - 2,000
Total assets $ 264,887 $ 81,180 $ 346,067
Liabilities, Deferred Inflows of Resources, and Fund Balances :

Liabilities:

Accounts payable $ 8,940 $ 1,042 $ 9,982
Accrued payroll 17,363 645 18,008
Retainage payable - 2 2
Intergovernmental 178 - 178
Deposits 12,263 - 12,263
Total liabilities 38,744 1,689 40,433
Deferred Inflows of Resources:

Unavailable revenue 7,422 - 7,422
Lease related items 10,354 - 10,354
Total deferred inflows of resources 17,776 - 17,776
Fund Balances:

Nonspendable:

Inventories, prepaids, and deposits 1,797 181 1,978
Advances and notes 1,810 - 1,810
Land and improvements held for resale 175 - 175
Restricted:

Unfunded accrued liability 60,166 - 60,166
Committed:

Economic contingency 72,246 5,000 77,246
Other purposes 60,815 - 60,815
Assigned:

General government 5,616 6,033 11,649
Public safety 1,135 5,480 6,615
Highways and streets 1,469 4,319 5,788
Culture and recreation 2,116 4 2,120
Continuing projects 1,022 6,385 7,407
Unassigned - 52,089 52,089
Total fund balances 208,367 79,491 287,858
Total liabilities, deferred inflows of resources, and fund balances $ 264,887 $ 81,180 $ 346,067
110

CITY OF RIVERSIDE

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

COMBINING GENERAL FUND SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
General Fund Measure Z Fund
Total General
Fund
Revenues:

Taxes $ 228,935 $ 81,893 $ 310,828
Licenses and permits 12,617 - 12,617
Intergovernmental 3,523 - 3,523
Charges for services 13,628 - 13,628
Fines and forfeitures 993 - 993
Special assessments 482 - 482
Rental and investment income 12,897 2,857 15,754
Miscellaneous 532 - 532
Total revenues 273,607 84,750 358,357
Expenditures:

Current:

General government 12,846 4,295 17,141
Public safety 195,321 26,921 222,242
Highways and streets 20,996 3,707 24,703
Culture and recreation 38,331 267 38,598
Capital outlay 1,767 3,533 5,300
Debt service:

Principal 2,301 157 2,458
Interest and fiscal charges 423 1 424
Total expenditures 271,985 38,881 310,866
Excess/(deficiency) of revenues over/(under)
expenditures 1,622 45,869 47,491
Other Financing Sources/(Uses):

Transfers in 57,011 54 57,065
Transfers out (52,808) (23,219) (76,027)
Transfers in/(out) to General Fund * 18,266 (18,266) -
Proceeds from sale of capital assets 4,388 - 4,388
Issuance of debt related to leases and subscriptions 1,564 - 1,564 Total other financing sources/(uses) 28,421 (41,431) (13,010) Net change in fund balance 30,043 4,438 34,481
Fund Balances:

Beginning of year 178,324 75,053 253,377
End of year $ 208,367 $ 79,491 $ 287,858
* 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.
111

CITY OF RIVERSIDE

BALANCE SHEET

COMBINING CAPITAL OUTLAY FUND SCHEDULE
JUNE 30, 2024
(amounts expressed in thousands)
Capital Outlay
Fund
Measure Z
Capital Outlay
Fund
Total Capital
Outlay Fund
Assets:

Cash and investments $ 75,194 $ 28,343 $ 103,537
Cash and investments with fiscal agent 6 - 6
Receivables, net of allowance for uncollectible
Interest 377 144 521
Accounts 451 - 451
Intergovernmental 3,195 - 3,195
Total assets $ 79,223 $ 28,487 $ 107,710
Liabilities, Deferred Inflows of Resources, and Fund
Balances:

Liabilities:

Accounts payable $ 3,025 $ 4,939 $ 7,964
Retainage payable 185 183 368
Unearned revenue 221 - 221
Total liabilities 3,431 5,122 8,553
Deferred Inflows of Resources:

Unavailable revenue 842 - 842
Total deferred inflows of resources 842 - 842
Fund Balances:

Restricted:

Transportation and public works 40,963 - 40,963
Committed:

Other purposes - 23,365 23,365
Assigned:

Continuing projects 33,987 - 33,987
Total fund balances 74,950 23,365 98,315
Total liabilities, deferred inflows of resources, and fund balances $ 79,223 $ 28,487 $ 107,710
112

CITY OF RIVERSIDE

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

COMBINING CAPITAL OUTLAY FUND SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Capital Outlay
Fund
Measure Z
Capital Outlay
Fund
Total Capital
Outlay Fund
Revenues:

Intergovernmental $ 12,186 $ - $ 12,186
Special assessments 1,006 - 1,006
Rental and investment income 2,063 926 2,989
Miscellaneous 341 - 341
Total revenues 15,596 926 16,522
Expenditures:

Capital outlay 8,737 22,179 30,916
Debt service:

Total expenditures 8,737 22,179 30,916
Excess/(deficiency) of revenues over/(under) expenditures 6,859 (21,253) (14,394) Other Financing Sources/(Uses):

Transfers in 15,963 17,087 33,050
Transfers out (3,088) (54) (3,142)
Total other financing sources/(uses) 12,875 17,033 29,908 Net change in fund balances 19,734 (4,220) 15,514
Fund Balances:

Beginning of year 55,216 27,585 82,801
End of year $ 74,950 $ 23,365 $ 98,315
113
Statistical Section
(Unaudited)
This part of the City's annual comprehensive 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.

Contents Page
Financial Trends 115
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity 120
These schedules contain trend information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes.

Debt Capacity 130
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.

Demographic and Economic Information 136
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.

Operating Information 139
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.

Source: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. 114

CITY OF RIVERSIDE
TABLE 1

NET POSITION BY COMPONENT

LAST TEN FISCAL YEAR
(accrual basis of accounting) (in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental Activities
Net investment in capital assets $ 1,126,220 $ 1,123,910 $ 1,102,409 $ 1,093,896 $ 1,102,837 $ 1,081,991 $ 1,170,232 $ 1,176,215 $ 1,198,815 $ 1,206,876 Restricted - Expendable 105,847 106,488 104,853 112,183 126,551 153,806 164,809 203,038 237,159 230,945 Restricted - Nonexpendable - - - - - - - - 1,642 1,676
Unrestricted (406,388) (389,278) (362,146) (364,500) (356,340) (369,222) (366,713) (284,713) (242,886) (242,765) Total governmental activities net position $ 825,679 $ 841,120 $ 845,116 $ 841,579 $ 873,048 $ 866,575 $ 968,328 $ 1,094,540 $ 1,194,730 $ 1,196,732 Business-Type Activities
Net investment in capital assets $ 626,166 $ 654,870 $ 702,844 $ 800,227 $ 867,206 $ 751,865 $ 756,116 $ 774,469 $ 790,844 $ 785,422 Restricted - Expendable 75,660 85,526 93,570 80,717 67,057 75,170 78,885 85,666 96,638 120,525 Unrestricted 209,469 235,144 245,116 199,143 155,468 272,776 263,837 284,977 283,132 299,278 Total business-type activities net position $ 911,295 $ 975,540 $ 1,041,530 $ 1,080,087 $ 1,089,731 $ 1,099,811 $ 1,098,838 $ 1,145,112 $ 1,170,614 $ 1,205,225 Primary Government
Net investment in capital assets $ 1,752,386 $ 1,778,780 $ 1,805,253 $ 1,894,123 $ 1,970,043 $ 1,833,856 $ 1,926,348 $ 1,950,684 $ 1,989,659 $ 1,992,298 Restricted - Expendable 181,507 192,014 198,423 192,900 193,608 228,976 243,694 288,704 333,797 351,470 Restricted - Nonexpendable - - - - - - - - 1,642 1,676
Unrestricted (196,919) (154,134) (117,030) (165,357) (200,872) (96,446) (102,876) 264 40,246 56,513 Total primary government net position $ 1,736,974 $ 1,816,660 $ 1,886,646 $ 1,921,666 $ 1,962,779 $ 1,966,386 $ 2,067,166 $ 2,239,652 $ 2,365,344 $ 2,401,957 115

CITY OF RIVERSIDE
TABLE 2

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting) (in thousands) Page 1 of 2 Fiscal Year
20151 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental Activities:

General government $ 26,587 $ 24,483 $ 44,510 $ 45,360 $ 51,139 $ 63,651 $ 97,927 $ 66,937 $ 34,258 $ 108,301 Public safety 154,123 161,284 160,665 216,772 201,942 222,061 219,136 169,742 239,744 275,631 Highways and streets 36,563 38,836 38,585 42,544 43,770 46,983 42,034 41,125 50,588 55,000 Cultural and recreation 45,594 47,762 49,406 38,362 31,200 37,400 37,693 38,885 50,863 56,685 Interest on long-term debt and fiscal charges 17,025 16,387 16,028 12,414 10,045 13,181 19,083 19,806 18,598 17,607 Total governmental activities 279,892 288,752 309,194 355,452 338,096 383,276 415,873 336,495 394,051 513,224 Business-Type Activities:

Electric 309,874 307,925 317,335 333,061 347,804 350,667 366,165 349,004 401,427 409,674 Water 62,792 57,769 62,189 68,281 70,912 73,742 71,738 69,303 76,475 80,452 Sewer 35,593 39,978 38,305 54,136 70,137 62,961 61,029 59,060 67,198 69,465 Airport 1,809 1,799 1,998 2,179 1,972 2,304 2,326 1,944 2,383 2,438 Refuse 20,007 21,652 21,953 22,082 24,205 26,549 28,428 28,449 32,779 35,717 Transportation 4,385 4,113 4,221 4,782 4,493 4,607 4,623 3,758 4,808 5,648 Public Parking 5,604 5,141 5,448 6,186 5,151 4,628 4,684 4,566 5,494 8,046 Civic Entertainment - - - 19,995 24,151 21,584 11,885 21,804 27,696 31,557 Total business-type activities 440,064 438,377 451,449 510,702 548,825 547,042 550,878 537,888 618,260 642,997 Total primary government expenses $ 719,956 $ 727,129 $ 760,643 $ 866,154 $ 886,921 $ 930,318 $ 966,751 $ 874,383 $ 1,012,311 $ 1,156,221 Program Revenues
Governmental Activities:

Charges for services:

General government $ 17,600 $ 24,944 $ 27,441 $ 24,605 $ 29,281 $ 25,698 $ 11,485 $ 13,721 $ 14,046 $ 17,582 Public safety 7,256 3,243 1,167 1,880 2,443 2,138 7,649 14,491 14,963 14,937 Highways and streets 13,868 5,709 5,930 5,554 6,036 5,174 11,278 6,090 7,288 7,078 Cultural and recreation 16,319 12,458 22,802 6,078 7,465 5,050 3,694 6,770 6,790 7,932 Operating grants and contributions 12,869 16,321 19,374 22,548 23,966 21,779 64,405 50,378 59,368 50,327 Capital grants and contributions 43,904 31,216 7,617 18,039 27,450 19,945 28,284 38,508 34,305 31,064 Total governmental activities 111,816 93,891 84,331 78,704 96,641 79,784 126,795 129,958 136,760 128,920 Business-Type Activities:

Charges for services:

Electric - 354,530 366,066 364,516 363,570 368,969 376,101 397,947 419,392 429,853 Water 66,051 57,250 62,627 66,828 65,177 70,167 80,252 80,535 78,703 81,425 Sewer 50,336 52,664 59,735 65,081 64,282 64,114 66,323 71,557 72,140 75,395 Airport 1,260 1,549 1,578 1,562 1,618 1,743 1,709 1,728 1,872 2,039 Refuse 21,360 21,806 22,567 23,085 23,004 25,109 26,468 29,768 31,477 33,444 Transportation 385 377 359 441 444 309 65 168 258 276
Public Parking 4,609 4,918 5,009 6,258 4,604 4,301 2,968 4,888 6,084 10,228 Civic Entertainment - - - 16,393 16,977 12,233 1,381 11,883 18,158 22,000 Operating grants and contributions 3,869 2,322 3,751 3,374 3,093 3,473 3,976 5,866 4,374 3,637 Capital grants and contributions 8,027 18,868 24,151 26,957 10,607 13,979 12,273 20,527 15,484 20,343 Total business-type activities 155,897 514,284 545,843 574,495 553,376 564,397 571,516 624,867 647,942 678,640 Total primary government program revenues $ 267,713 $ 608,175 $ 630,174 $ 653,199 $ 650,017 $ 644,181 $ 698,311 $ 754,825 $ 784,702 $ 807,560 116

CITY OF RIVERSIDE
TABLE 2

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting) (in thousands) Page 2 of 2 Fiscal Year
20151 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net Revenues/(Expenses)
Governmental Activities $ (168,076) $ (194,861) $ (224,863) $ (276,748) $ (241,455) $ (303,492) $ (289,078) $ (206,537) $ (257,291) $ (384,304) Business-Type Activities (284,167) 75,907 94,394 63,793 4,551 17,355 20,638 86,979 29,682 35,643 Total primary government net
revenues/(expenses) $ (452,243) $ (118,954) $ (130,469) $ (212,955) $ (236,904) $ (286,137) $ (268,440) $ (119,558) $ (227,609) $ (348,661) General Revenues and Other Changes in Net
Position
Governmental Activities:

Taxes:

Sales taxes $ 59,437 $ 60,976 $ 75,883 $ 120,338 $ 130,645 $ 128,653 $ 150,321 $ 173,933 $ 177,722 $ 174,300 Property taxes 54,864 55,545 59,526 63,515 69,478 72,609 71,986 79,790 84,751 90,383 Utility users' taxes 28,076 27,828 27,958 27,498 28,009 29,044 30,577 32,464 34,963 32,218 Franchise taxes 5,543 5,730 4,814 4,972 5,256 5,443 5,527 5,955 6,422 6,694 Transient occupancy taxes 5,280 6,093 6,622 6,793 7,163 5,959 5,801 8,764 8,587 8,778 Intergovernmental, unrestricted 3,153 477 145 172 156 656 499 661 467 1,097 Investment income 3,233 729 6,145 5,187 7,500 10,185 4,969 (7,613) 8,817 23,089 Miscellaneous 12,395 11,708 2,050 4,278 - 9,146 5,988 3,876 10,342 6,193 Transfers 42,681 41,216 45,716 41,459 37,115 35,324 34,879 34,915 25,421 43,554 Total governmental activities 214,662 210,302 228,859 274,212 285,322 297,019 310,547 332,745 357,492 386,306 Business-Type Activities:

Investment income 5,319 6,888 2,650 3,939 19,488 19,838 681 (13,324) 11,191 31,514 Miscellaneous 7,652 22,666 14,662 12,901 10,322 8,211 11,986 12,639 10,049 8,392 Extraordinary items - - - - - - - (5,748) - -
Transfers (42,681) (41,216) (45,716) (41,459) (37,115) (35,324) (34,278) (34,915) (25,421) (43,554) Total business-type activities (29,710) (11,662) (28,404) (24,619) (7,305) (7,275) (21,611) (41,348) (4,181) (3,648) Total primary government 184,952 198,640 200,455 249,593 278,017 289,744 288,936 291,397 353,311 382,658 Change in Net Position
Governmental Activities $ 46,586 $ 15,441 $ 3,996 $ (2,536) $ 43,867 $ (6,473) $ 21,469 $ 126,208 $ 100,201 $ 2,002 Business-Type Activities (313,877) 64,245 65,990 39,174 (2,754) 10,080 (973) 45,631 25,501 31,995 Total primary government $ (267,291) $ 79,686 $ 69,986 $ 36,638 $ 41,113 $ 3,607 $ 20,496 $ 171,839 $ 125,702 $ 33,997 1 The decrease in total business-type activities net position is primarily due to the power plant closure. 117

CITY OF RIVERSIDE
TABLE 3

FUND BALANCES - GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(modified accrual basis of accounting) (in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $ 23,642 $ 23,094 $ 26,168 $ 1,947 $ 949 $ 1,446 $ 1,870 $ 2,087 $ 2,115 $ 3,963 Restricted 2,985 3,067 2,651 2,991 3,411 10,699 10,697 30,715 32,695 60,166 Committed - - - 53,800 65,916 59,280 62,400 82,801 111,301 138,061 Assigned 13,965 9,922 14,968 23,242 26,984 21,260 24,890 41,707 35,566 33,579 Unassigned 39,059 29,495 39,283 7,644 23,907 41,184 59,790 69,908 71,700 52,089 Total general fund $ 79,651 $ 65,578 $ 83,070 $ 89,624 $ 121,167 $ 133,869 $ 159,647 $ 227,218 $ 253,377 $ 287,858 All Other Governmental Funds
Nonspendable $ 1,625 $ 1,619 $ 1,601 $ 4,855 $ 1,560 $ 1,510 $ 1,477 $ 1,495 $ 1,736 $ 1,832 Restricted for:

Housing and redevelopment 25,523 24,746 24,098 18,827 16,668 16,611 18,553 12,292 11,252 11,290 Debt service 26,203 26,221 6,455 11,509 6,825 11,210 11,292 11,679 14,059 13,001 Transportation and public works 36,347 36,876 34,178 43,499 91,379 84,413 78,884 87,073 121,543 82,585 Other purposes 2,326 3,628 4,145 3,451 5,505 5,984 6,275 7,351 8,783 10,906 Committed - - - - - - - - - 23,365
Assigned - - - - - - - - - 33,987
Unassigned - - (24) - - (27) - (1,215) - -
Total all other governmental funds $ 92,024 $ 93,090 $ 70,453 $ 82,141 $ 121,937 $ 119,701 $ 116,481 $ 118,675 $ 157,373 $ 176,966 Notes:

Certain reclassifications have been made to prior year balances to conform with current year's presentation. 118

CITY OF RIVERSIDE
TABLE 4

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(modified accrual basis of accounting) (in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues:

Taxes $ 153,200 $ 156,172 $ 174,803 $ 223,116 $ 240,416 $ 241,708 $ 267,714 $ 300,906 $ 312,445 $ 312,373 Licenses and permits 11,168 11,611 14,455 12,442 14,317 13,023 12,778 14,850 15,894 16,492 Intergovernmental 49,892 51,896 31,440 42,454 44,950 42,296 87,226 88,000 95,405 78,511 Charges for services 24,737 26,443 31,384 17,438 16,927 15,968 14,578 16,938 17,978 15,451 Fines and forfeitures 3,957 1,941 1,976 3,717 2,078 1,887 2,100 2,096 1,131 993 Special assessments 6,757 7,039 7,578 7,113 7,973 6,950 7,674 7,188 8,084 8,587 Rental and investment income 5,112 4,370 4,718 3,446 6,548 8,441 4,437 (6,533) 8,054 22,839 Miscellaneous 6,939 12,578 7,252 8,716 5,370 7,845 5,962 3,703 6,040 2,379 Total revenues $ 261,762 $ 272,050 $ 273,606 $ 318,442 $ 338,579 $ 338,118 $ 402,469 $ 427,148 $ 465,031 $ 457,625 Expenditures:

General government $ 17,799 $ 19,900 $ 20,650 $ 21,135 $ 18,880 $ 107,779 $ 30,887 $ 24,332 $ 27,258 $ 32,184 Public safety 157,660 164,800 163,712 190,916 198,363 434,208 200,733 205,968 219,559 237,709 Highways and streets 16,594 17,416 17,504 19,207 20,927 22,254 16,897 18,805 22,324 25,377 Culture and recreation 37,527 39,583 40,643 29,382 30,528 28,825 28,391 33,065 39,491 43,236 Capital outlay 60,060 53,208 31,000 33,504 41,585 55,178 69,248 71,534 73,838 73,528 Debt service:

Principal 49,101 51,987 72,700 21,904 37,867 23,761 24,475 28,126 31,984 23,487 Interest and fiscal charges 17,048 16,451 16,115 12,746 10,493 10,773 20,372 20,134 19,076 17,694 Issuance costs 172 180 29 24 854 1,185 - - - 247
Total expenditures $ 355,961 $ 363,525 $ 362,353 $ 328,818 $ 359,497 $ 683,963 $ 391,003 $ 401,964 $ 433,530 $ 453,462 Excess/(deficiency) of revenue
over/(under) expenditures $ (94,199) $ (91,475) $ (88,747) $ (10,376) $ (20,918) $ (345,845) $ 11,466 $ 25,184 $ 31,501 $ 4,163 Other Financing Sources/(Uses):

Transfers in $ 61,510 $ 61,384 $ 94,521 $ 102,774 $ 94,771 $ 95,932 $ 112,907 $ 116,891 $ 155,256 $ 126,130 Transfers out (18,829) (20,168) (48,805) (66,021) (58,688) (60,608) (102,028) (85,380) (129,835) (82,576) Issuance of long-term debt 30,940 31,145 31,578 14,500 49,485 320,131 - 11,292 - 21,190 Proceeds from sale of capital assets (114) 261 4,199 461 149 856 213 59 4,235 4,389 Issuance of debt related to leases and
subscriptions - - - - - - - 1,714 3,705 1,714
Capital lease financing 4,450 5,846 2,109 - - - - - -
Payment to refunding bond escrow agent - - - - - - - - - (23,371) Other finance sources - bond premium/(discount) - - - - 6,540 - - - - - Premium on issuance of long-term debt - - - - - - - - - 2,435 Total other financing sources/(uses) 77,957 78,468 83,602 51,714 92,257 356,311 11,092 44,576 33,361 49,911 Net changes in fund balances $ (16,242) $ (13,007) $ (5,145) $ 41,338 $ 71,339 $ 10,466 $ 22,558 $ 69,760 $ 64,862 $ 54,074 Debt services as a percentage of non-capital
expenditures %22.360 %21.714 %26.625 %11.999 %15.143 %5.428 %13.383 %13.535 %13.956 %10.613 (1)
(1) Includes one-time payment of $318,944 to CalPERS to paydown the Unfunded Pension Liability for Miscellaneous and Safety personnel. 119

CITY OF RIVERSIDE
TABLE 5

BUSINESS-TYPE ACTIVITIES - ELECTRICITY REVENUES BY SOURCE

LAST TEN FISCAL YEARS
(accrual basis of accounting) (in thousands)
Fiscal
Year
Residential
Sales
Commercial
Sales 1
Industrial
Sales 1
Wholesale
Sales
Other
Sales
Transmission
Revenue
Other
Operating
Revenue
Total
Revenues
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 21,779 366,617 2018 115,630 73,971 112,264 2 4,792 37,484 8,860 353,003 2019 116,303 72,511 111,445 344 4,824 35,730 22,413 363,570 2020 121,162 71,570 113,132 - 4,849 34,817 23,438 368,968 2021 133,460 71,510 112,572 27 4,864 32,316 21,351 376,100 2022 134,403 75,899 122,684 89 4,891 32,245 27,736 397,947 2023 140,538 77,191 124,600 2,043 5,162 35,233 34,625 419,392 2024 138,879 77,850 130,519 - 5,254 39,934 37,416 429,853 1 Changes in fiscal years 2018, 2019, 2020 and 2021 reflect reclassification of certain Industrial and Commercial accounts related to contract accounts. Prior to fiscal year 2018, accounts were reflected under Industrial Sales. 120

CITY OF RIVERSIDE
TABLE 6

GOVERNMENTAL ACTIVITIES - TAX REVENUE BY SOURCE

LAST TEN FISCAL YEARS
(accural basis of accounting) (in thousands)
Fiscal Year
Sales
Tax1
Property
Tax2
Utility
Users'
Tax
Franchise
Tax
Transient
Occupancy
Tax
Total
Taxes
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
2022 173,933 79,790 32,464 5,955 8,764 300,906
2023 177,722 84,751 34,963 6,422 8,587 312,445
2024 174,300 90,383 32,218 6,694 8,778 312,373
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 year 2013 relates to the dissolution of the Redevelopment Agency. Upon the dissolution of the Redevelopment Agency o n February 1 , 2012, property t axes received by t he Successor Agency a re reported in a private-purpose trust fund and therefore are excluded from the activities of the primary government. 121

CITY OF RIVERSIDE
TABLE 7

TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS (in thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel stores $ 188,670 $ 203,001 $ 214,852 $ 210,158 $ 212,036 $ 210,439 $ 147,176 $ 249,034 $ 232,964 $ 231,058 General merchandise 475,147 477,903 478,538 465,490 470,386 465,234 426,500 617,257 460,364 458,278 Food stores 209,022 217,902 168,854 169,922 184,278 185,859 202,647 208,060 225,764 225,749 Eating and drinking places 483,901 533,317 582,262 609,705 639,995 677,763 587,403 788,765 875,980 879,796 Building materials 514,993 567,790 636,415 666,907 738,178 761,881 813,584 1,010,364 1,265,631 1,094,427 Auto dealers and supplies 1,461,217 1,548,385 1,608,231 1,588,854 1,621,311 1,672,475 1,728,498 2,084,828 2,111,240 2,282,012 Service stations 413,128 370,257 338,762 360,830 432,991 434,162 327,119 527,973 644,484 597,100 Other retail stores 595,305 633,089 692,375 677,850 666,659 636,043 609,428 764,854 743,571 700,044 All other outlets 1,312,607 1,461,982 1,474,160 1,481,019 1,700,733 1,701,236 1,995,760 2,099,827 2,545,362 2,516,180 Total $ 5,653,990 $ 6,013,626 $ 6,194,449 $ 6,230,735 $ 6,666,567 $ 6,745,092 $ 6,838,115 $ 8,350,962 $ 9,105,360 $ 8,984,644 Notes:

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.

Source: State of California Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, and HdL Companies. 122

CITY OF RIVERSIDE
TABLE 8

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (in thousands)
Fiscal
Year
Ended
June 30 Secured Unsecured
Less:

Exemptions
Taxable
Assessed
Value
Total
Direct
Rate1
2015 $ 24,482,621 $ 1,329,391 $ (7,945,000) $ 17,867,012 0.124 2016 25,710,122 1,225,375 (8,432,984) 18,502,513 0.124
2017 26,927,989 1,311,356 (9,029,817) 19,209,528 0.124
2018 28,373,517 1,354,934 (9,791,810) 19,936,641 0.124
2019 30,196,815 1,420,597 (10,818,883) 20,798,529 0.124 2020 31,856,912 1,466,408 (10,946,897) 22,376,423 0.124 2021 33,717,485 1,482,535 (11,915,468) 23,284,552 0.123 20222 35,353,418 1,736,131 (12,881,213) 24,208,336 0.123 2023 38,044,185 1,874,928 (14,108,558) 25,810,555 0.122 2024 40,681,352 2,076,413 (15,496,481) 27,261,284 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 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.
2 Total Taxable Assessed Value for FY2020 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
123

CITY OF RIVERSIDE
TABLE 9

DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF ASSESSED VALUATION)

LAST TEN FISCAL YEARS
2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 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 Service 2 0.377 0.487 0.495 0.517 0.521 0.535 0.529 0.535 0.519 0.561 City of Riverside Debt Service 0.006 0.006 0.006 0.006 0.006 0.005 0.005 0.005 0.005 0.003 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 0.018 0.017 0.016 0.016 0.015 0.015 0.015 0.015 0.015 0.015 Total direct & overlapping3 tax rates 1.405 1.514 1.521 1.543 1.546 1.559 1.553 1.559 1.543 1.583 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 Voter approved City debt rate 0.006 0.006 0.006 0.006 0.006 0.005 0.005 0.005 0.005 0.003 Total direct rate5 0.124 0.124 0.124 0.124 0.124 0.124 0.123 0.123 0.122 0.121 Notes:

Amounts presented in this table have been restated for prior years to reflect the most current information available. 1 In 1978, California voters passed Proposition 13 which set 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 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. The ERAF portion of the City's levy has been subtracted where known.
5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical information and excludes revenues derived from aircraft. Beginning in 2013/14, the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognize enforceable obligations assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

Source: Riverside County Assessor 2014/15 - 2023/24 Tax Rate Table. 124

CITY OF RIVERSIDE
TABLE 10

PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO (in thousands)
2024 2015
Property Owner
Taxable
Assessed
Valuation Rank
Percentage of
Total Taxable
Assessed
Value
Taxable
Assessed
Valuation Rank
Percentage of
Total Taxable
Assessed
Value
Riverside Healthcare System $ 335,070 1 %0.81 $ 142,088 2 %0.58 Kaiser 294,946 2 %0.71
Tyler Mall LP 239,720 3 %0.58 195,439 1 0.79
Nordstrom Inc 224,690 4 %0.54
CPT Riverside Plaza LLC 174,076 5 %0.42
Rohr Inc 152,249 6 %0.37 97,904 4 %0.40
La Sierra University 144,233 7 %0.35 116,298 3 %0.47
TA Lance Drive LLC 138,430 8 %0.33
490 Columbia 135,287 9 %0.33
Corona Pointe Resort LLC 132,292 10 %0.32
Advanced Group13 107 96,579 5 %0.39
Cole ID Riverside California 93,754 6 %0.38
State Street Bank and Trust Co of CA 85,475 7 %0.35
Vestar Riverside Plaza LLC 82,511 8 %0.33
Northrop Drive Apartments Investment 76,255 9 %0.31
Canyon Springs Marketplace Corporation 70,268 10 %0.29
Totals $ 1,970,993 %4.76 $ 1,056,571 %4.29
Notes:

The amounts shown above include assessed value data for both the City and the Successor Agency.

Source: Riverside County Assessor 2023/2024 and 2014/15 Combined Tax Rolls and the SBE Non Unitary Tax Roll. 125

CITY OF RIVERSIDE
TABLE 11

PROPERTY TAXES LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS (in thousands)
Fiscal Year Ended
Taxes
Levied for
Collected Within the
Fiscal Year of the Levy
Collections
in
Subsequent Total Collections to Date
June 30 Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy 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% - 68,363 100.00%
2022 71,892 71,573 99.56% - 71,892 100.00%
2023 78,685 78,228 99.42% - 78,685 100.00%
2024 84,918 84,330 99.31% - 84,330 99.31%
Notes:

The table reflects amounts related to the City. In addition, it includes amounts related to the Redevelopment Agency through dissolution (01/31/12). 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 126

CITY OF RIVERSIDE
TABLE 12

ELECTRICITY SOLD BY TYPE OF CUSTOMER
LAST TEN FISCAL YEARS (in millions of kilowatt-hours)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Type of Customer:

Residential 711 726 730 727 722 722 783 759 786 709
Commercial1 428 438 448 476 460 442 430 443 440 427
Industrial1 995 982 996 970 947 931 890 923 920 916
Wholesale sales2 2 - 1 - - 1 - 2 14 -
Other 31 23 23 22 21 18 18 19 15 12
Total 2,167 2,169 2,198 2,195 2,150 2,114 2,121 2,146 2,175 2,064 Total direct rate
Monthly base rate * 18.06 18.06 18.06 18.06 19.41 20.63 21.84 23.20 24.55 26.09 * Includes a Reliability Charge
1 Changes in fiscal years 2018, 2019, 2020 and 2021 reflect reclassification of certain Industrial and Commercial accounts related to contract accounts. Prior to fiscal year 2018, accounts were reflected in the Industrial customer class.
2 For fiscal years 2016, 2018, 2019, and 2021 wholesale MWH was less than 1 MWH.

Source: Riverside Public Utilities, Finance Services
127

CITY OF RIVERSIDE
TABLE 13

ELECTRICITY RATES
LAST TEN FISCAL YEARS (average rate in dollars per kilowatt-hour) Fiscal
Year Ended
June 30 Residential Commercial1 Industrial1 Other
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 * 0.15547 * 0.11570 * 0.21288 *
2019 0.16111 * 0.15768 * 0.11761 * 0.23448 *
2020 0.16774 * 0.16202 * 0.12149 * 0.26480 *
2021 0.17032 * 0.16636 * 0.12643 * 0.26659 *
2022 0.17707 * 0.17126 * 0.13295 * 0.26454 *
2023 0.17878 * 0.17528 * 0.13537 * 0.35779 *
2024 0.19580 * 0.18227 * 0.14155 * 0.44126 *
1 Changes in fiscal years 2018, 2019, 2020 and 2021 reflect reclassification of certain Industrial and Commercial accounts related to contract accounts. Prior to fiscal year 2018, accounts were reflected in the Industrial customer class. * Rate calculations were taken from the Sales Stats not the financial statements.

Does not include Public Benefits charge.

Source: Riverside Public Utilities, Finance Services
128

CITY OF RIVERSIDE
TABLE 14
TOP 10 ELECTRICITY CUSTOMERS

CURRENT YEAR AND NINE YEARS AGO
2024 2015
Electricity Customer
Electricity
Charges Rank
Percent of
Total Electric
Revenues
Electricity
Charges Rank
Percent of
Total Electric
Revenues
Local University $ 14,114,348 1 %4.00 $ 11,412,923 1 %3.80 Local Government 8,530,192 2 %2.42 8,594,043 2 %2.86
Local Government 8,338,317 3 %2.37 8,073,889 3 %2.69
Local School District 5,164,237 4 %1.47 4,311,950 4 %1.43 Corporation 4,710,601 5 %1.34 4,070,777 5 %1.35
Corporation 4,314,135 6 %1.22 3,897,219 6 %1.30
Corporation 4,177,204 7 %1.19 2,935,854 7 %0.98
Hospital 3,811,163 8 %1.08 2,530,436 8 %0.84
Local University 3,077,010 9 %0.87 2,214,992 10 %0.74
Corporation 3,076,416 10 %0.87
Local School District 2,250,391 9 %0.75
Total $ 59,313,622 %16.83 $ 50,292,475 %16.73
Retail sales per financial statements * $ 352,501,989 $ 300,621,570 Source: Riverside Public Utilities, Finance Services
* Financial Report - Riverside Public Utilities
129

CITY OF RIVERSIDE
TABLE 15

RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS (in thousands)
Governmental Activities
Fiscal Year
General
Obligation
Bonds
Lease
Revenue
Bonds
Pension
Obligation
Bonds2
Certificates
of
Participation
Financed
Purchase
Notes & Loans
Payable
Lease
Liability
SBITA
Liability
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 - -
2022 4,987 68,855 338,264 85,477 22,294 - 1,060 -
2023 3,411 65,093 321,413 80,584 19,230 - 563 1,930
2024 1,756 61,163 313,830 75,067 16,152 - 586 1,119
Business-Type Activities
Fiscal Year
Revenue
Bonds
Arbitrage
Payable
Notes &
Loans
Payable
Financed
Purchase
Pension
Obligation
Bonds2
Certificates
of
Participation3
Lease
Revenue
Bonds4
Lease
Liability
SBITA
Liability
Total
Primary
Government
Certifications
of
Participation1
Certifications
of
Participation1
2015 $ 1,239,634 $ - $ 37,225 $ 1,720 $ - $ - $ - $ - $ - $ 2,929,127 24.00% 5.00 2016 1,208,851 - 37,793 4,694 - - - - - 1,641,220 23.00% 5.00 2017 1,180,345 - 35,255 6,209 - - - - - 1,578,802 22.00% 4.00 2018 1,139,864 - 78,583 6,821 18,324 - - - - 1,529,302 20.00% 4.00 2019 1,241,743 - 73,673 5,192 14,775 29,692 7,867 - - 1,634,952 21.00% 4.00 2020 1,212,914 - 69,519 3,633 119,625 28,483 7,473 - - 2,004,026 24.00% 6.00 2021 1,176,605 - 64,678 2,354 116,227 27,213 7,059 - - 1,931,503 22.00% 5.00 2022 1,139,100 - 59,948 2,176 110,718 25,912 6,625 787 - 1,866,203 20.00% 5.00 2023 1,163,676 - 55,070 1,476 103,705 24,582 6,168 563 86 1,847,550 20.00% 5.00 2024 1,268,727 673 36,525 1,134 95,253 23,191 5,688 443 241 1,901,548 19.02% 6.00 1 These ratios are calculated using personal income and population data for the prior calendar year. 2 In 2018, the 2005 and 2017 Taxable Pension Obligation Bonds were distributed between Governmental Activities, Business-Type Activities, and the Successor Agency. 3 In 2019, the 2008 Certificates of Participation were distributed between Governmental Activities and Business-Type Activities. 4 In 2019, the 2012 Lease Revenue Refunding Bonds were distributed between Governmental Activities, Business-Type Activities, and the Successor Agency.

Source: City of Riverside Notes to Financial Statements and Statistical Table 20. 130

CITY OF RIVERSIDE
TABLE 16

RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS (in thousands, except per capita amount) Fiscal Year
General
Obligation
Bonds
Pension
Bonds
Certificates
of
Participation
Total Obligated
Debt
Outstanding
Less: Amounts
Available in Debt
Service Fund
Net Obligated
Debt Outstanding
Percent of
Assessed
Value1
Per
Capita2
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 %1.05 640 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 2022 4,987 338,264 85,477 428,728 (11,679) 417,049 %1.72 1,312 2023 3,411 321,413 80,584 405,408 (16,440) 388,968 %1.51 1,240 2024 1,756 313,830 75,067 390,653 (13,001) 377,652 %1.39 1,192 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.

Source: City of Riverside Notes to Financial Statements, Statistical Table 8, Statistical Table 15, and Reserve Cash Reconciliation maintained by City Finance Department. 131

CITY OF RIVERSIDE
TABLE 17

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2024 Page 1 of 2
2023-24 Assessed Valuation: $ 41,102,356,302
Less Dissolved Redevelopment Agency Incremental Valuation: 13,841,072,735 Adjusted Assessed Valuation: $ 27,261,283,567
Total Debt % Applicable
City's Share
of Debt1
Overlapping debt repaid with property taxes
Metropolitan Water District $ 18,210,000 %1.069 $ 194,665 Riverside County Flood Control, Zone 4 2,755,000 1.630 44,907 Riverside City Community College District 282,851,456 27.026 76,443,434 Alvord Unified School District 259,599,660 73.941 191,950,585 Riverside Unified School District 365,980,000 83.487 305,545,723 Corona-Norco Unified School District 477,878,766 0.001 4,779 Jurupa Unified School District 142,689,417 0.001 1,427
Moreno Valley Unified School District 285,323,707 9.588 27,356,837 Alvord Unified School District Community Facilities District No.2006-1 5,630,000 82.333 4,635,348 Riverside Unified School District Community Facilities Districts 64,180 87.928-100 64,084,631 City of Riverside Community Facilities Districts 27,915,000 100.000 27,915,000 City of Riverside 1915 Act Bonds 12,770,000 100.000 12,770,000 Total overlapping debt repaid with property taxes $ 710,947,336 (Continued)
132

CITY OF RIVERSIDE
TABLE 17

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30 2024 Page 2 of 2
Other overlapping debt2
Riverside County General Fund Obligations $ 652,187,035 %10.430 $ 68,023,108 Riverside County Pension Obligations 670,785,000 10.430 69,962,876 Riverside City Community College District Certificates of Participation 24,550,000 27.026 6,634,883 Corona-Norco Unified School District General Fund Obligations 17,114,629 0.001 171 Jurupa Unified School District Certificates of Participation 43,860,159 0.001 439 Moreno Valley Unified School District Certificates of Participation 3,755,000 9.588 360,029 Riverside Unified School District General Fund Obligations 9,783,000 83.487 8,167,533 Western Municipal Water District General Fund Obligations 2,724,440 32.220 877,815 Total other overlapping debt 154,026,854
Overlapping tax increment debt 157,193,052
Total overlapping debt 1,022,167,242
City direct debt 469,673,000 (3)
Combined total direct and overlapping debt $ 1,491,840,242 (1) Debt balances are as of June 30, 2024.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, non-bonded capital lease obligations. (3) Excludes debt related to Business-Type Activities.

Ratios to 2023-24 Assessed Valuation:

Total debt repaid with property taxes…………………….……..... %1.73 City direct debt $469,673,000 .......……...…………..………...…. %1.14 Combined total direct and overlapping debt……………............. %3.63 Ratios to dissolved redevelopment incremental valuation $(13,841,072,735):

Total overlapping tax increment debt…………………………….. %1.14 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. 133

CITY OF RIVERSIDE
TABLE 18

LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS (in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Assessed valuation $ 17,867,012 $ 18,502,513 $ 19,209,528 $ 19,936,641 $ 20,798,529 $ 22,376,423 $ 23,284,552 $ 24,208,336 $ 25,810,555 $ 27,261,284 Conversion percentage %25 %25 %25 %25 %25 %25 %25 %25 %25 %25 Adjusted assessed valuation 4,466,753 4,625,628 4,802,382 4,984,160 5,199,632 5,594,106 5,821,138 6,052,084 6,452,639 6,815,321 Debt limit percentage %15 %15 %15 %15 %15 %15 %15 %15 %15 %15 Debt limit 670,013 693,844 720,357 747,624 779,945 839,116 873,171 907,813 967,896 1,022,298 Total net debt applicable to limit 13,546 12,567 11,513 10,388 9,179 7,874 6,478 4,987 3,411 1,756 Legal debt margin $ 656,467 $ 681,277 $ 708,844 $ 737,236 $ 770,766 $ 831,242 $ 866,693 $ 902,826 $ 964,485 $ 1,020,542 Total net debt applicable to the limit
as a percentage of debt limit %2.0 %1.8 %1.6 %1.4 %1.2 %0.9 %0.7 %0.5 %0.4 %0.2 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 at 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. 134

CITY OF RIVERSIDE
TABLE 19

PLEDGED-REVENUE COVERAGE

BUSINESS-TYPE ACTIVITY DEBT
LAST TEN FISCAL YEARS (in thousands)
Electric Revenue Bonds Water Revenue Bonds
Fiscal Pledged
Less:

Operating
Net
Available Debt Service Pledged
Less:

Operating
Net
Available Debt Service
Year Revenue1 Expenses1 Revenue Principle Interest Coverage Revenue1 Expenses1 Revenue Principal Interest Coverage 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 2022 391,860 298,221 * 93,639 19,339 26,689 2.03 85,163 47,177 * 37,986 7,715 9,353 2.23 2023 425,941 332,901 * 93,040 20,985 25,415 2.01 85,058 48,696 * 36,362 8,278 10,570 1.93 2024 443,500 326,639 116,861 22,627 28,067 2.31 90,803 49,340 41,463 9,590 11,324 1.98 Sewer Revenue Bonds
Fiscal Pledged
Less:

Operating
Net
Available Debt Service
Year Revenue1 Expenses1 Revenue Principal Interest Coverage 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
2022 69,422 29,640 39,782 9,966 16,575 1.50
2023 73,923 38,171 35,752 9,770 15,466 1.42
2024 80,191 41,178 39,013 11,460 15,139 1.47
Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements The City of Riverside does not have any pledged revenue related to Govermental Activities. 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.
135

CITY OF RIVERSIDE
TABLE 20

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
Calendar
Year Population1
Personal
Income2
(in thousands)
Per
Capita
Personal
Income2
Unemployment
Rate3
2014 314,221 6,857,559 21,824 7.9
2015 324,696 6,953,323 21,415 6.4
2016 326,792 7,139,080 21,846 5.8
2017 325,860 7,349,024 22,553 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
2021 317,847 8,891,501 27,974 6.7
2022 313,676 9,058,788 28,879 3.8
2023 316,690 9,998,230 31,571 4.4
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 U.S. Cenus Bureau most recent American Community Survey. 3 State of California Employment Development Department. 136

CITY OF RIVERSIDE
TABLE 21

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
2024 2015
Employer Employees Rank
Percentage
of Total City
Employment Employees Rank
Percentage
of Total City
Employment
County of Riverside 25,300 1 17.5% 11,628 1 7.9%
March Air Force Reserve 9,750 2 6.7%
University of California, Riverside 9,316 3 6.4% 7,500 2 5.1% Kaiser Permanente 7,420 4 5.1% 4,500 4 3.0%
Riverside University Health System 7,355 5 5.1%
Riverside Unified School District 4,596 6 3.2% 3,500 3 2.4% Riverside Community Hospital 2,958 7 2.0% 1,900 6 1.3%
City of Riverside 2,709 8 1.9% 2,461 5 1.7%
Riverside Community College District 2,300 9 1.6% 1,061 10 0.7% Alvord Unified School District 1,955 10 1.3% 1,445 8 1.0% Riverside County Office of Education 1,765 7 1.2%
Parkview Community Hospital 1,350 9 0.9%
Total 73,659 50.8% 37,110 25.2%
Source: City of Riverside, Economic Development Department 137

CITY OF RIVERSIDE
TABLE 22

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
2015 20161 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government 361.25 394.24 417.55 430.05 453.80 458.30 460.30 462.05 485.05 518.30 Public safety (sworn and non-sworn personnel)
Police 553.75 554.75 512.00 543.00 557.00 571.00 585.00 604.00 626.00 626.00 Fire 255.00 251.00 239.00 242.00 245.00 248.00 251.00 250.00 252.00 252.00 Highways and streets 308.00 308.00 272.00 273.00 271.00 271.00 270.00 271.00 273.00 278.00 Sanitation 57.00 59.00 59.00 59.00 59.00 59.00 62.00 62.00 62.00 62.00 Culture and recreation 274.45 286.75 276.23 276.98 276.07 284.07 283.60 287.86 284.60 286.85 Airport 6.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Water 181.15 181.15 174.15 158.65 158.65 158.65 164.50 164.50 164.00 165.00 Electric 464.50 466.50 471.75 489.25 475.25 475.25 466.25 468.50 473.00 473.00 Total 2,461.10 2,507.39 2,428.68 2,478.93 2,502.77 2,532.27 2,549.65 2,576.91 2,626.65 2,668.15 1 In fiscal year 2013/14, the City Council deleted a number of long-term unfunded positions.

Source: City of Riverside, Finance Department, FY 2023/24 Budget Master Personnel Detail 138

CITY OF RIVERSIDE
TABLE 23

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police:

Arrests 10,310 9,242 8,358 8,423 8,295 7,738 8,089 7,667 8,095 8,052 Fire:

Number of calls answered 32,943 35,905 36,150 38,501 37,739 37,999 31,918 38,801 45,073 43,329 Inspections 8,770 6,636 6,482 6,519 5,584 7,987 7,175 9,244 6,662 6,851 Public Works:

Street resurfacing (miles) 38.75 39.01 27.09 17.37 16.50 18.80 7.30 17.35 14.60 11.80 Parks and Recreation:

Number of recreation classes 43,007 53,907 53,308 54,025 54,069 34,366 5251 8561 28,8882 29,056 Number of facility rentals 44,363 47,772 48,097 46,904 66,846 45,741 3241 3741 1,3912 830 Water:

Number of accounts 65,102 65,094 65,428 65,640 65,803 66,031 66,198 66,372 66,441 66,570 Annual consumption (ccf) 26,007,490 22,529,463 25,340,729 27,514,374 25,827,721 25,526,021 28,625,382 26,845,583 23,667,466 23,011,443 Electric:

Number of accounts 108,388 108,776 109,274 109,619 110,480 111,161 111,711 112,328 112,751 113,436 Annual consumption (millions of
kwh) 2,167 2,170 2,197 2,195 2,150 2,115 2,122 2,145 2,175 2,065 Sewer:

New connections 17,553 17,669 17,654 17,551 17,540 17,593 17,602 17,588 17,575 17,580 Average daily sewage treatment
(millions of gallons) 27.15 26.35 27.19 26.16 26.86 25.22 25.30 26.01 26.98 26.95 1 Reduction is due to the affects of the COVID-19 pandemic. 2 Increase due to return to full operations.

Source: City of Riverside, various departments
139

CITY OF RIVERSIDE
TABLE 24

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:

Public Safety:

Police:

Stations 3 3 3 3 3 3 3 4 4 4
Substations 4 4 4 5 4 5 4 1 1 1
Helicopters 3 3 3 3 2 2 2 2 2 2
Airplane 0 0 0 0 1 1 1 1 1 -
Fire:

Stations 14 14 14 14 14 14 14 14 14 14
Active apparatus 28 31 33 32 33 55 32 32 38 32
Reserve apparatus 11 8 9 9 9 13 9 10 13 11
Training facilities 1 1 1 1 1 1 1 1 1 1
Highways and streets:

Streets (miles) 871.19 872.19 872.22 872.01 872.24 872.10 872.35 891.28 893.28 890.93 Streetlights 29,968 299,986 30,427 30,467 30,479 30,445 30,489 30,489 30,745 31,112 Signalized intersections 367 386 381 382 384 392 397 408 408 409 Culture and Recreation:

Parks acreage 2,911.8 2,926.8 2,983.0 2,983.0 2,988.0 2,988.0 2,988.0 2,988.0 3,010.5 3,010.5 Community centers 11 11 11 11 11 11 11 12 14 14
Playgrounds 44 44 46 46 46 46 46 43 43 43
Swimming pools 7 7 7 7 7 7 7 7 7 7
Softball and baseball
diamonds 44 44 44 44 44 44 44 44 44 44
Library branches 8 8 8 8 8 8 8 8 8 8
Museum exhibit-fixed 3 4 5 5 - 1 1 1 - 1 0 1 1 1
Museum exhibit-special 4 5 6 6 1 1 4 1 3 1 1 1 5 4
Water:

Fire hydrants 7,754 7,758 7,908 7,952 8,173 8,192 9,304 8,012 8,023 8,052 Sewer:

Sanitary sewers (miles) 829 820 829 827 820 820 820 853 853 853 Electric:

Miles of overhead distribution
system 513.0 513.0 513.0 513.0 514.0 514.0 513.0 513.0 513.0 512.0 Miles of underground system 814.0 815.0 817.0 826.0 831.0 834.0 838.0 838.0 842.0 846.0 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
140

3900 Main Street
Riverside, CA 92522

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