CITY OF
RIVERSIDE
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024
RIVERSIDE, CALIFORNIA
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..............
GOA Certificate of Achievement.... ....viii
Legislative and City Officials...
Organizational Chart.
FINANCIAL SECTION
Independent Auditors' Report.....
Management's Discussion and Analysis
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....
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
....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 Outstandin.................. . 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.................
RIVERSIDE
CITY OF
CITY OF
RIVERSIDE
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 ACR.
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 on the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements, with emphasis on those involving the administration of federal awards/grants. These reports will become available in the City's separately issued Single Audit Report.
Management has provided an overall analysis of the financial 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.
The City provides 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 activities, the Council is financially accountable for the Riverside Housing Authority, Riverside Public Financing Authority, Riverside Municipal Improvements Corporation, and the Successor Agency, which was formed to hold the assets 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 Council generally conducts 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.
In August 2024, Riverside home prices were up 4% compared to last year, 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. $700K
$600K
$500K
$400K
2020 2021 2022 2023 2024
Based on Redfin calculations of home data from MLS and/or public records.
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.
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
Infrastructure, Mobility, and Connectivity
Environmental Stewardship Indicators: High Performing Government Indicators: 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, 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 improvements, 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 for city services currently subsidized by general revenues, identifying new revenue sources through economic growth and innovative solutions, and addressing critical needs in a responsible and sustainable manner.
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.
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
5. Growing the City's Economy: Cultivating robust economic growth, job creation, and business development opportunities to fortify the City's financial prosperity and vitality. This priority entails 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 Council 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 CaPERS 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 typical 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): On 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; 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.
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 final rule under responding to the public health emergency have 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 development 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 released 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.
vi
Awards and Acknowledgements
The Government Finance Officers Association (GOA) 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 ACR 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 GOA 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 PAR continues to meet the Program's requirements and we are submitting it to the GOA again this year.
The City received the GOA'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
vii
The Government Finance Officers Association of the United Government Finance Officers Association States and Canada (GOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Certificate of Riverside for our Annual Comprehensive Financial Report for Achievement the fiscal year ended June 30, 2023.
for Excellence
in Financial
In order to be awarded a Certificate of Achievement, a
Reporting
governmental unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose
Presented to
contents conform to program standards. Such reports must City of Riverside satisfy both generally accepted accounting principles and California applicable legal requirements.
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended A Certificate of Achievement is valid for a period of one year June 30, 2023 only. We believe our current report continues to meet the Certificate of Achievement Program requirements, and we are submitting it to GOA to determine its eligibility for another Chustophe. P. Movill certificate.
Executive Director/CEO
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
CITY LEADERSHIP Sean Mill... Councilmember - Ward 5
Jim Perry ..... Councilmember - Ward 6
Steve Hemenway Councilmember - Ward 7
Patricia Lock Dawson Philip Falcone Clarissa Cervantes Steven Robillard CITY OFFICIALS Mayor Ward 1 Ward 2 Ward 3
Mike Futrell.. ...City Manager*
Rafael Guzman ... Assistant City Manager
Kris Martinez.... ... Assistant City Manager
Chuck Conder Sean Mill Jim Perry Steve Hemenway
Ward 4 Ward 5 Ward 6 Ward 7 Edward Enriquez ..Assistant City Manager, CFO/Treasurer Donesia Gause ..City Clerk*
Phaedra Norton.. City Attorney*
Phaedra Norton Mike Futrell Donesia Gause
City Attorney City Manager City Clerk David Garcia Interim General Manager - Public Utilities Larry V. Gonzalez Chief of Police
General Carl Carey.... General Services Director
Airport Library Police
Services
Housing Erin Christmas.... ....Library Director
Community Public
Marketing &
and Economic and Human Pamela Galera
Communications Works ...Parks, Recreation & Community Scs Director Development Services
Kristie Thomas Finance Director/Assistant CFO
Finance Human Museum Riverside
Resources Public Utilities Rene Goldman Human Resources Director Parks, Recreation George Khalil ...Chief Innovation Officer Innovation &
Fire and Community Sustainability
Technology Services
Gilbert Hernandez ...Public Works Director
Michael Moore... ...Fire Chief
Robyn Peterson Museum Director
Jennifer Lilley. ...Community & Economic Development Director *Appointed by City Council
RIVERSIDE
CITY OF
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 General 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 provide a basis for our audit 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.
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 nade by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Honorable 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 nanagement 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 financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Honorable 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.
Clifton arson Allen (D
CliftonLarsonAllen LLP
Irvine, California
December 16, 2024
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 that are principally supported by taxes 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 separate, 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.
Governmental funds - Governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year.
It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Reconciliations to facilitate this comparison are provided for both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances. The major 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 the City Council. 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 benefit governmental rather than business-type functions, they have 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, Water, and Sewer operations, all of which are considered to be major funds of the City. The five remaining proprietary funds noted above are combined into a single, aggregated presentation. All internal service funds are also combined into a single, aggregated presentation in the proprietary fund 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.
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 Business-Type
Activities 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 1,206,876 785,422 790,844 1,992,298 1,989,659 Restricted - Expendable 230,945 120,525 333,797
Restricted - Nonexpendable
Unrestricted/(deficit) (242,765) (242,886) 299,278 56,513 Total net position 1,196,732 $ 1,194,730 $ 1,205,225 $ 1,170,614 $ 2,401,957 $ 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 related 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.
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)
00 (in thousands)
Governmental Business-Type
Activities 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 Expeneral 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 18,598 409,674 401,427 17,607 18,598
Electric 409,674 401,427
Severe 69462 76,475 69.482 76,475
67,195 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)
33,997 125,692
Changes in net position 2,002 100,190 31,995 25,502
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 2,29.652 End of year 1,196,732 $ 1,194,730 $ 1,205,225 $ 1,170,614 $ 2,401,957 $ 2,365,344 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 million increase in property tax revenue resulting from a growth in assessed property values 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 $300,000 —
$250,000 -
$200,000 —
• 2024 Expenses
$150,000 — • 2023 Expenses
• 2024 Program revenues
• 2023 Program revenues
$100,000 -
$50,000 -
$0
General government Public safety Highways and streets Culture and recreation Interest on long-term debt 10 Revenues by Source - Governmental Activities - Fiscal Year Comparison 2024 vs. 2023 2024 2023
1.94% Investment Income
10.67% Operating Grants and Contributions 11.17% Operating Grants and Contrbutions Proporty Taxes 19.16%
Property Taxes 17.59%
10.07% Charges for Services 9.06% Charges for Services
- 6.83% Utity Users'
Taxes -8.49% Capital Grants
and Contribution:
6.58% Capital Grants
and Contributions
7.71% Utity Users' Taxes
1.31% Miscelaneous
Sales Taxes 36.95% 4.89% Investment Income 1.89% Transient Occupancy Taxes Sales Taxes 38.35% 1.42% Franchise Taxes
-1.86% Transient Occupancy Taxes -2.28% Miscellaneous
-1.44% Franchise Taxes
0.23% Intergovemmental unrestricted 0.10% Intergovermental unrestricted 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 due to a combination of exceptionally elevated winter natural gas prices and elevated power prices, along with global market disturbances. The Water 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 2024 2023
2.3% Capital Grants and Contributions
1.5% Miscellaneous
2.8% Capital Grants and Contributions 0.7% Operating Grants and Contributions
4.4% Investment income 1.7% Investment Income
1.2% Miscellaneous
0.5% Operating Grants and Contr
Charges for Services 91.1% Charges for Services 93.9%
12 Financial Analysis of the City's Funds
Such ormaton us-T in asses rg the dry mancing requirements in particular, unasome tund malance may serve as a user measure of a governments. 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 Debt Service Non-Major Total
General Fund Fund
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 13,00i 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 creditors or grantors. Committed fund balance of $161,426, or 35% of the fund balance, was set aside for economic contingencies. Committed for economic contingencies consists of 20% of the 2024-25 General Fund adopted expenditure budget of $361 million, 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 the 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.
Non-Major Enterprise Total Business-Type
Electric Water Sewer Funds Funds
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
$1,379,360 $ 1,239,900 743,314 $ 731,921 $ 648,205 $ 646,557 $ 193,873 $ 195975. 52969. 82 5 2 315,898 Deferred outflows of resources 34,671 45,624 15,230 16,990 8,309 63,486 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 6,725 7,163 Net position
Net investment in capital assets 230,789 254,990 304,422 174,764 167,469 75,447 785,422 790,844 Restricted 94,234 14,805 120,525
Unrestricted/(deficit) 174,199 84,749 12,393 299,278
Total net position $ 508,534 $ 503,352 $ 327,413 $ 268,133 $ 252,131$ 87,718 $1,205,225 $1,170,614 14 General Fund Budgetary Highlights
Variance to
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
Revenues 325,788 5 350,182 $ 358,357 $ 8,175
Expenditures:
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 LA 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 tund 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 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 final 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 - The City's capital assets for governmental and business-type activities as of June 30, 2024 amounted 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 million in Electric Utility capital improvements primarily related to transformer replacements, improvements to communications network, underground improvements, metering infrastructure, and major streetlight projects; and $18.2 million in Water Utility projects primarily related 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 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 5 3,310,1795 3,298,912 Lease and Subscription Assets - The 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 Business-Type
Activities 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 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 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 1,360 2,016
Total 605,735 $ 576,897 $ 1,454,100 $ 1,377, 168 5 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 maintains "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 gradual 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 and Strategic Plan, a Sports Attraction Study, and a Convention Center Expansion Study, all of which aim to 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 planning for the ongoing litigation of the Water Fund transfer to the General Fund (Water GT). 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 oiennial 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 payments, 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. CaPERS investment returns have fluctuated significantly over the last ten years, leading to swings in funding levels reported in CaPERS actuarial reports and projected payments toward the unfunded accrued liability (UAL). The CaPERS 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 CaPERS 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%.
CaPERS 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 Pavment (Prepavment 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 Business-Type
Activities 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 1.415 (1,413)
Restricted assets:
Cash and cash equivalents 141,32: 141,322
67,833 179,27 247,105
Cash and investments
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
Capital assets:
Capital assets, not depreciated 142,080 :90,63 732,712
Capital assets, net of depreciation 905,62: 671,84 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..55 7,149 8.284
Deferred charge on refunding
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
559
Landfill capping 559
Decommissioning liability 12,244 12,244
OPEB liability 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
OPE 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
ension related item: 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 39,025 43,494
Debt service 13,001 52,030
Public works 42,136 42,136
Capital projects 52,710 52,710
Landfill capping 2,500
Programs and regulatory requirements 1945° 73,170 73,170 Economic development 19,438
Unfunded accrued liability 60,166 5,826 65,992
Restricted - Nonexpendable:
Permanent fund principal 1,676 299,278 1,676
Unrestricted/(deficit) (242.765) 56,513
Total net position 1,196,732 $ 1,205,225 S 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
Operating Capital
Indirect Expenses Charges for Contributions Contributions Governmental Business-Type Expenses Allocation Services and Grants and Grants Activities Activities Total Function/Programs
Primary Government:
Governmental Activities:
General government 108,301 $ (21,903) S 17,582 $ 38,260 $ 1,331 $ (29,225) S - $ (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)
Civic Entertainment 8,046 10,228 2,182 2,182
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 5 702,189 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 5 1.173.230 S 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)
Non-Major Total
Capital Outlay General Debt Governmental Governmental
General Fund Fund Service Fund Funds Funds
Assets:
$ 218,709 $ 103,537 $ 6,485 $ 115,244 $ 443,975
Cash and investments with fiscal agent 60,166 7,331 330 67,833 interables, net of allowance for uncollectibk 521 582
12 2021
Property taxes 1,884 49 88
Sales taxes 30,250 30,250
- 1,347
1.198 1,198
451 168 9,877
3,195 16,464 23,841
Notes 10 51,198 51,208
Leases receivable 10,554 10,554
repaid item: 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 S 653,013 Liabilities, Deferred Inflows of Resources, and Fund
Balances:
Liabilities:
iccounts payable $ 9,982 $ 7,964 S 56$ 6,320 $ 24,322
iccrued payroll 18,008 71 18,079
Retainage payable 368 - 642 1,012
ntergovernmental 221 58,931 183
nearned revenue - 59,152
Deposits 12,263 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 7,42 842 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
Restricted:
Housing and redevelopment 13,001 11,290 11,290
Debt service : 10905 13,001
Transportation and public works 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
ighways and street 5,788
ulture and recreatio 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 S 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 OPE 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)
OPE 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) 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)
Non-Major Total
Capital Outlay General Debt Governmental Governmental
General Fund Fund Service Fund Funds Funds
Revenues:
$ 310,828 $ - $ 1,545 $ 3,875 $ 312,373
12,617 16,492
3,523 12,186 : 62,802 78,511
13,628 1,823 15,451
993 993
Rental and investment income 482 1,235 5,864 8,587
15,754 2,989 457 3,639 22,839
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 30316 4,638 43,236
Capital outlay 5,300 37,312 73,528
Debt service:
2,458 20,878 151 23,487
nterest and fiscal charge: 424 17,226 1. $ 17,694
ssuance 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)
21,190 21,190
2,435 2,435
4,388 4,389
ayment to refunding escrow agent (23,371) (23,371)
Issuance of debt related to leases anc
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.
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
(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 oPE lably and related defered oretows and anois of resorsources (40,451) (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
(expenses) of funds aral seide ta 15 reporte chat governmen of actuance, central purchasing and flet management to individual funds. The net revenues (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)
Variance to
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
291,214 $ 310,759 $ 310,828 $ 69
Licenses and permits 10,852 13,227 12,617 (610)
1,439 1,611 3,523 1,912
16,033 16,618 13,628 (2,990)
1,923 1,919 993 (926)
551 551 482 (69)
3,004 4,293 15,754 11,461
772 1,204 532 (672)
Total revenues 325,788 350,182 358,357 8,175
Expenditures:
General government:
Mayor 1,141 1,179 2259 120
Council 1,763 2,087 (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 1,015
Building and zoning inspection 4,093 5,124 4,065 960
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 3.637
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 Non-Major Total Activities -
Enterprise Enterprise Internal Service
Electric Water Sewer Funds Funds 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 2,980 166 5,391 226
Utility billed 18,372 4,697 1,920 29,133
Utility unbilled 17,496 3,983 1,202 25,177
Accounts 5,581 1,592 1,351 8,975
Property taxes 5 5
Intergovernmental 356 1,589 1,049 5,000
Leases receivable 1,343 847 282 2,472
Inventory 1,464 80 5,038 10,087
Prepaid items 2,994 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 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 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 4,482 : 449 449 :
Deferred charge on refunding 31,0% 513 7,150
Pension related items 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 Non-Major Total Activities •
Enterprise Enterprise Internal Service
Electric Water Sewer Funds Funds 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 1,040 850 14,777
9,816 2,512 6.191 41 18,560 -
233 233 1,443
750 53 6,309 803
Long-term obligations 23,680 10,669 13,178 53,836 628
Compensated absences 5,335 2,034 1,308 556 9,233 355
Claims and judgments 16,921
Landfill capping 12211 : 559 559
Decommissioning liability 12,244
OPEB liability 397 162 113 99 771
Lease liability 132 5 4 78 219
SBITA liability 50 2 70 1 123
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 3,000 50
Advances from other funds 2,000
Claims and judgments : 84,096
Landfill capping 8,385 8,385
Decommissioning liability 33,838 :
Regulatory liability 4,516 16,037 45 20,598
Derivative instruments 44,227 831 980 1,811
Net pension liability 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
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 583 551 1,081 1,664
Deferred charges on refunding 551
Pension related items 425 301 3,236
2,038 806 490 459 3,793
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 2,500 39,029
Landfill capping 34,261 2,707 2,500
Regulatory requirements 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 Non-Major Total Activities
Enterprise Enterprise nternal Servici
Electric Water Sewer Funds Funds Funds
Operating Revenues:
Charges for services $ 429.853 S 81,425 S 75.395 S 67,987 $ 654,660 S 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 7,422 3,72 62,656 7,341
Materials and supplies 1,526 1,994 ,21. 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 15 646 931 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 18,715 7,019 4,730 4,303 4,303 2,126
Interest revenue 1,050 31,514
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
Transfers in - 11,955 11,955
Transfers out (45,289) (8,103) : (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 Non-Major Total Activities -
Enterprise Enterprise Internal Service
Electric Water Sewer Funds Funds 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
(279,482) (29,278) (29,533) (59,395) (397,688) (29,797) ash paid to suppliers for goods or service
ash paid to employees for service (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
Payment receipt from advances to other funds 311 2,000 2,759 Debt service payment on pension obligation
bonds (5,118) (1,640) (1,021) (678) (8,457) (349)
ther non-operating receipts 3,296 2,908 88 670 6,962 1,897 brant 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) (65,421) (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) 2,491 (134,114) :
Contributions 4,701 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
321,777 117,157 113,833 29.622 582,389 40,172
ash and cash equivalents at end of yea
excluding noncurrent cash and investment
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 Non-Major Total Activities -
Enterprise Enterprise Internal Service
Electric Water Sewer Funds Funds Funds
Reconciliation of Operating Income to Net Cash
Provided/(Used) by Operating Activities:
Operating income/(loss) $ 46.113 S 12,361 S 19,235 S (12,878) S 64,831 S (46,772) djustments to Reconcile Operatir
come/(Loss) Net Cash Provided/(Used) k
Operating Activities:
Depreciation 38,081 16,753 1,169
Amortization 200 15 70 9
(Increase)/decrease in utility billed receivable (588) (218) :
(Increase)/decrease in utility unbilled receivable (3,878) (577) 229 29 (581)
- (5)
receivable (306) (75) 213
(Increase)/decrease in inventory - 9 (1,019)
3,065 (6)
(Increase)/decrease in prepaid items
(Increase)/decrease in deposits (116) -
(Increase)/decrease in Benefit/Conservation
Programs receivable (151) 109 3,496 (479)
Increase/(decrease) in accounts payable 2,087 3,739
Increase/(decrease) in accrued payroll 173 96 20
Increase/(decrease) in retainage payable (559) 391 1
Increase/(decrease) in unearned revenue 448 35 :
3,
Increase/(decrease) in deposits payable 1,147 168
Increase/(decrease) in Benefit/Conservation
Programs payable (117) (82) (61)
Increase/(decrease) in compensated absences (78) 192
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:
$ 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 5 31,9265 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
Property taxes
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
14,704
Due to bond holders -
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)
Riverside Municipal Improvements Corporation (Municipal Improvements Note 1. Summary of Significant Accounting Policies Corporation) was created in 1978 and operates under provisions of the Nonprofit Public Benefit Corporation Law of the State of California. The The City of Riverside (City) was incorporated on October 11, 1883 as a Charter Municipal Improvements Corporation's primary purpose is to provide financing City and operates under a Council-Manager form of Government. The more assistance by obtaining land, property and equipment on behalf of the City. The significant accounting policies reflected in the financial statements are activity of the Municipal Improvements Corporation has been combined with that summarized as follows: of the primary government because three members of the City Council serve as the Municipal Improvements Corporation's directors and because the Municipal A. Reporting Entity Improvements Corporation exists to serve exclusively the primary government.
The City is financially accountable and operationally responsible for all matters.
The financial statements present the City and its component units, entities for which the City is financially accountable. Blended component units are legally Fiduciary Component Unit 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 Successor Agency to the Redevelopment Agency of the City of Riverside meet the criteria for discrete presentation. All of the City's component units have (Successor Agency) is a separate legal entity, which was formed to hold the a June 30 year-end. assets and liabilities of the former Redevelopment Agency pursuant to City Council actions taken on March 15, 2011 and January 10, 2012. The activity of Blended Component Units the Successor Agency is overseen by an Oversight Board comprised of individuals appointed by various government agencies and the City of Riverside Riverside Housing Authority (Housing Authority) was established in 2006 by the as Successor Agency of the former Redevelopment Agency. In 2018, the City. The Housing Authority's primary purpose is to provide safe and sanitary oversight was transferred to the Riverside Countywide Oversight Board, as a housing accommodations for persons with low or moderate income. The result of state legislation that consolidated all oversight boards to successor Housing Authority's activity has been combined with that of the primary agencies. The Countywide Oversight Board was created to oversee the government because City Council members serve as the Housing Authority's winddown activities of the various successor agencies in Riverside County. The commissioners and because the City is financially accountable and nature and significance of the relationship between the City and the Successor operationally responsible for all matters. Agency is such that it would be misleading to exclude the Successor Agency Riverside Public Financing Authority (Public Financing Authority) was organized from the City's financial statements. The Successor Agency is presented herein in December 1987 by the City and the Redevelopment Agency. Pursuant to in the City's fiduciary funds as a private-purpose trust fund Assembly Bill 1X 26 (as modified by the California Supreme Court on December Complete financial statements are prepared for the Riverside Public Financing 29, 2011) all redevelopment agencies were dissolved effective February 1, Authority and the Successor Agency to the Redevelopment Agency of the City 2012. Subsequently, the City became the Successor Agency to the of Riverside, which can be obtained from the City's Finance Department, 3900 Redevelopment Agency. The Parking Authority of the City of Riverside was Main Street, Riverside, California, 92522 or online at www.riversideca.gov. 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 B. Government-wide and Fund Financial Statements
the primary government because City Council members serve as the Public Financing Authority's board members and because the Public Financing The government-wide financial statements report information on all of the non- Authority exclusively provides financing assistance to the primary government. fiduciary activities of the City and its component units. Interfund activity has The City is also financially accountable and operationally responsible for all 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 are supported by taxes and intergovernmental resources measurement focus and the modified accrual basis of accounting. revenues, are reported separately from business type activities, which rely to a Revenues are recognized as soon as they are both measurable and available. significant extent on fees and charges for support. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.
The statement of net position presents financial information on all of the City's Revenues are considered to be available if they are generally collected within 60 assets, liabilities, and deferred inflows/outflows of resources, with the difference days after year end, except for revenue associated with neglected property reported as net position. Over time, increases or decreases in net position may abatement which is eleven (11) months and except for grant revenue, including serve as a useful indicator of whether the financial position of the City is reimbursement received from Transportation Uniform Mitigation Fees, which is improving or deteriorating. six (6) months. Grant revenue is recognized if received within six (6) months of The statement of activities demonstrates the degree to which the direct year end to enable the matching of revenue with applicable expenditures. expenses of a given function or segment are offset by program revenues. Direct Expenditures generally are recorded when a liability is incurred under accrual expenses are those that are clearly identifiable with a specific function or accounting. However, debt service expenditures, as well as expenditures segment. Program revenues include 1) charges to customers or applicants who related to compensated absences and claims and judgments, are recorded only purchase, use, or directly benefit from goods, services, or privileges provided by when payment is due. a given function or segment, and 2) grants and contributions that are restricted Property taxes, special assessments, sales taxes, franchise taxes, licenses, to meeting the operational or capital requirements of a particular function or charges for services, amounts due from other governments and interest Taxes and other items not properly included among program associated with the current fiscal period are all considered to be susceptible to revenues are reported instead as general revenues. Indirect expenses are accrual. Other revenue items such as fines and permits are considered to be allocated to the various functions based on a proportionate utilization of the measurable and available only when the government receives cash and are services rendered. Such allocations consist of charges for accounting, human resources, information technology and other similar support services.
The government reports the following major governmental funds:
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the The General fund is the government's primary operating fund. It accounts government-wide financial statements. Major individual governmental funds and for all financial resources of the general government, except those required major individual enterprise funds are reported as separate columns in the fund to be accounted for in another fund. financial statements.
The Capital Outlay fund accounts for the construction and installation of street and highway capital improvements for the City, including C. Measurement Focus, Basis of Accounting, and Financial Statement improvements funded by the ½% sales tax approved by Riverside County Presentation in 1988.
The government-wide, proprietary and fiduciary funds financial statements are The General Debt Service fund accounts for the accumulation of resources reported using the economic resources measurement focus and the accrual and payment of long-term debt obligations of the City and related entities. basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash The government reports the following major proprietary funds:
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 The Electric fund accounts for the activities of the City's electric distribution soon as all eligibility requirements have been met. An allowance for doubtful operations. accounts is maintained for the utility and other miscellaneous receivables. The Water fund accounts for the activities of the City's water distribution Governmental fund financial statements are reported using the current financial 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.
D. Cash and Investments
Additionally, the government reports the following fund types:
The City values its cash and investments in accordance with the provisions of Special Revenue funds account for proceeds of specific revenue sources Governmental Accounting Standards Board Statement No. 72 (GASB 72), Fair that are legally restricted or otherwise committed or assigned for specific Value Measurement and Application, which requires governmental entities to ourposes. use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value.
Capital Projects funds account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach or the income approach.
Internal Service funds account for self-insurance, central stores, and central garage on a cost reimbursement basis. Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at Fiduciary funds include private-purpose trust and custodial funds. The fair value except for investments in investment contracts which are recorded at private-purpose trust fund accounts for assets and activities of the contract value. All highly liquid investments (including restricted assets) with a dissolved Redevelopment Agency, which is accounted for in the Successor maturity of 90 days or less when purchased are considered cash equivalents.
Agency Trust. The custodial funds are used to account for special Cash and investments held on behalf of proprietary funds by the City Treasurer assessments that service no-commitment debt. are considered highly liquid and are classified as cash equivalents for the The Permanent fund is a governmental fund that is used to report purpose of presentation in the statement of cash flows. resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's Library E. Restricted Cash and Investments programs. Non-expendable net position on the Statement of Net Position includes $1.7 million of permanent fund principal which are considered Certain proceeds of long-term indebtedness, as well as certain resources set nonexpendable. aside for their repayment, are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants.
Amounts reported as program revenues include 1) charges to customers for Restricted cash and investments also include cash set aside for nuclear goods, services, or privileges provided, 2) operating grants and contributions, decommissioning, public benefit programs, regulatory requirements and rate and 3) capital grants and contributions, including special assessments. stabilization because their use is legally restricted to a specific purpose.
Internally dedicated resources are reported as general revenues rather than as Unspent proceeds received from the City's landfill capping surcharge are also program revenues. Likewise, general revenues include all taxes. recorded as restricted assets.
Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from F. Allowance for Doubtful Accounts oroviding services and producing and delivering goods in connection with a Management determines the allowance for doubtful accounts by analyzing proprietary fund's principal ongoing operations. The Sewer fund also customer accounts for all balances over 60 days old. The allowance for doubtful recognizes, as operating revenue, the portion of connection fees intended to accounts is then adjusted at fiscal year-end based on the amount equal to the recover the cost of connecting new customers to the system. Operating annual uncollectible accounts. Utility customer closed accounts are written off expenses for enterprise funds and internal service funds include the cost of when deemed uncollectible. Recoveries to utility customer receivables sales and services, administrative expenses, and depreciation on capital previously written off are recorded when received. For non-utility accounts assets. All revenues and expenses not meeting this definition are reported as receivables, delinquent notices after 60 days are sent to customers with non-operating revenues and expenses. outstanding balances. After 120 days, accounts still outstanding are referred to
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 than land are depreciated using the straight-line method. Estimated useful lives doubtful account balance of $9,750 for all accounts receivables. used to compute depreciation are as follows:
G. Land and Improvements Held of Resale Buildings and improvements 30-50 years Land and improvements held for resale were generally acquired for future Improvements other than buildings 20-99 years development projects. The properties are carried at the lower of cost or net Intangibles, depreciable 3-15 years realizable value. Machinery and equipment 3-15 years
Infrastructure 20-100 years
H. Inventory
K. Leases and Subscription-Based Information Technology Arrangements Supplies are valued at cost using the average-cost method. Costs are charged to user departments when consumed rather than when purchased. Leases are defined by the general government as the right-to-use an underlying asset. As lessee, the City recognizes a lease liability and an intangible lease asset at the beginning of a lease unless the lease is considered a short-term I. Prepaid Items lease or transfers ownership of the underlying asset. Lease assets are Payments to vendors for services benefiting future periods are recorded as measured based on the net present value of the future lease payments at orepaid items and expenditures are recognized when items are consumed. inception, using the weighted average cost of capital, which approximate the incremental borrowing rate. Re-measurement of a lease liability occurs when J. Capital Assets 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 Capital assets, which include property, plant, equipment, and infrastructure the discount on the lease liability and report that amount as outflows assets (e.g., roads, bridges, sidewalks, right of way, and similar items), are resources. Payments are allocated first to accrued interest liability and then to reported in the applicable governmental activities and business-type activities of the lease liability. Variable lease payments based on the usage of the underlying the government-wide financial statements and in the proprietary funds and the assets are not included in the lease liability calculations but are recognized as fiduciary private-purpose trust fund statements of net position. The government outflows of resources in the period in which the obligation was incurred. As defines capital assets as assets with an initial, individual cost of more than five lessor, the City recognizes a lease receivable. The lease receivable is thousand dollars and an estimated useful life in excess of one year. Such measured using the net present value of future lease payments to be received assets are recorded at historical cost or estimated historical cost if purchased or for the lease term and deferred inflow of receivables at the beginning of the constructed. Costs include: labor; materials; allocated indirect charges such as lease term. Periodic amortization of the discount on the receivable are reported engineering, construction and transportation equipment, retirement plan as interest revenue for that period. Deferred inflows of resources are recognized contributions and other fringe benefits. Donated capital assets or donated works as inflows on a straight-line basis over the term of the lease. This recognition of art and similar items are recorded at acquisition cost at the date of donation. does not apply to short-term leases, contracts that transfer ownership, leases of Capital assets received in a service concession arrangement are recorded at assets that are investments, or certain regulated leases. Any initial direct costs acquisition value. Intangible assets that cost more than one hundred thousand are reported as an outflow of resources for that period. Re-measurement of dollars with useful lives of at least three years are capitalized and are recorded lease receivables occur when there are modifications, including but not limited at cost. Interest incurred during the construction phase is expensed in the to changes in the contract price, lease term, and adding or removing an period incurred. 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 The costs of normal maintenance and repairs that do not add to the value of the inflow of resources will be reduced and will include a gain or loss for the asset or materially extend asset lives are not capitalized. Capital assets other difference. For lease contracts that are short-term, the City recognizes 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 expense and as a liability of those funds as the benefits accrue to employees. provisions of the lease contract. Liabilities are only recognized if payments are received in advance, and receivables are only recognized if payments are M. Derivative Instruments received subsequent to the reporting period. Leases between the Airport System and air carriers and other aeronautical users are subject to external The City's derivative instruments are accounted for in accordance with laws and regulations. As permitted by GASB No. 87, paragraph 43, the Airport Government Accounting Standards Board Statement No. 53 (GASB 53), System recognizes inflows of resources based on the payment provisions of the Accounting and Financial Reporting for Derivative Instruments, which requires lease contract, and the accounting policies do not apply to regulated leases. 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 Subscription-Based Information Technology Arrangements (SBITAs) are as deferrals in the statements of net position. contracts that convey control of the right-to-use another party's information technology (IT) software, alone or in combination with tangible capital assets, as The City uses derivative instruments to hedge its exposure to changing interest specified in the contract for a period of time in an exchange or exchange-like rates through the use of interest rate swaps. The City had debt that was layered transaction. To determine whether a contract conveys control of the right-to-use with "synthetic fixed rate" swaps, which was refunded in 2008 and 2011. The the underlying IT assets, the City assesses both the right to obtain the present balance of the deferral account for each swap is included as part of the deferred service capacity from use of the underlying IT assets and the right to determine charge on refunding associated with the new bonds. The swaps were also the nature and manner of use of the underlying IT assets as specified in the employed as a hedge against the new debt. Hedge accounting was applied to contract. Contracts that solely provide IT support services are excluded from the that portion of the hedging relationship, which was determined to be effective. definition of a SBITA. The subscription term is the period during which the City The negative fair value of the interest rate swaps related to the new hedging has a noncancellable right-to-use the underlying IT assets, plus the periods relationship has been recorded and deferred on the statement of net position. covered by the City's option to extend the SBITA if it is reasonably certain, See Note 7 for further discussion related to the City's interest rate swaps. based on all relevant factors, that the government will exercise that option. permitted in the Utility's Power Resources transactions
Periods for which both the government and the SBITA vendor have an option to Management Policies may be considered derivatives, including energy and/or terminate the SBITA without permission from the other party (or if both parties gas transactions for swaps, options, forward arrangements and congestion have to agree to extend) are cancellable periods and are excluded from the revenue rights. The City has determined that all of its contracts including subscription term. congestion revenue rights fall under the scope of "normal purchases and normal sales" and are exempt from GASB 53.
L. Compensated Absences
City employees receive 10 to 25 vacation days a year based upon length of N. Long-Term Obligations 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 Long-Term Debt paid in cash upon separation.
Long-term debt and other long-term obligations are reported as liabilities in the City employees generally receive one day of sick leave for each month of governmental and business-type activities columns employment with unlimited accumulation. Upon retirement or death, certain government-wide financial statements and in the proprietary funds and fiduciary employees or their estates receive a percentage of unused sick leave paid in a funds statements of net position. Bond premiums and discounts are deferred lump sum based on longevity. The General, Electric and Water funds have and amortized over the life of the bonds using the effective interest method. been primarily used to liquidate such balances. Bonds payable are reported net of the applicable bond premium or discount.
The liability associated with these benefits is reported in the government-wide Any liability for arbitraged interest is recorded in the fund incurring the liability and interest income is reduced by the amount of liability incurred during the statements. Vacation and sick leave of proprietary funds is recorded as an 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 has an arbitrage liability related to Water is governed by NRC regulations. According to SCE's decommissioning cost Revenue Bonds, 2022A. 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 In the fund financial statements, government fund types recognize bond Utility's share was $84 million. issuance costs as expenditures during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt In August 2021, SCE provided the updated decommissioning cost estimate issuances are reported as other financing sources while discounts on debt document in 2020 dollars. According to the update, total decommissioning costs issuance are reported as other financing uses. for Units 2 and 3 are estimated at $5.2 billion, of which the Electric Utility's share is $93.8 million.
Decommissioning
As of June 30, 2024, the Electric Utility has set aside $45,009 in cash The City has a 1.79 percent undivided ownership interest in Units 2 and 3 of investments with the trustee and $10,885 in an designated decommissioning San Onofre Nuclear Generating Station (SONGS), located south of the City of reserve for the Electric Utility's estimated share of the decommissioning costs.
San Clemente in northern San Diego County. Both Units 2 and 3 of SONGS Increases to the funds held for decommissioning liability are from investment were permanently retired on June 2013. Consequently, the units are no longer a earnings. The investment earnings are included in investment income in the source of supply for the Electric Utility, but remain associated with certain of its Electric Utility's financial statements. An equivalent amount is reflected as costs, including those associated with the units' shutdown and decommissioning decommissioning expense, which is considered part of production and (see Note 13 for nuclear decommissioning liability). ourchased power. Decreases to the funds held for decommissioning liability are The other owners are SCE, with a 78.21 percent interest (including the 3.16 from actual funds drawn from the trust for decommissioning costs invoiced by 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. On February 23, 2016, the City Council adopted a resolution authorizing the In 2005, the California Public Utilities Commission (CPUC) authorized a project commencement of SONGS decommissioning effective June 7, 2013. to install four new steam generators in Units 2 and 3 at SONGS and remove resolution allows the Electric Utility to access the decommissioning trust funds to pay for its share of decommissioning costs. The Electric Utility began drawing and dispose of the predecessor generators. SCE completed the installation of decommissioning trust funds to pay for decommissioning costs in the fiscal year these steam generators in 2010 and 2011 for Units 2 and 3, respectively. The ended June 30, 2017. As of June 30, 2024, the Electric Utility has paid to date Electric Utility's share of the cost to replace the steam generators was approximately $13.4 million. Replacement of the steam generators $49,537 in decommissioning obligations which have been reimbursed by the trust funds.
expected to enable plant operations to continue through at least 2022, and perhaps beyond, subject to the approval of the NRC
O. Claims and Judgments Payable
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- Claims and judgments payable are recognized when it is probable that a liability line for a planned outage when unexpected wear in areas of tube-to-support has been incurred and the amount of loss can be reasonably estimated. Such structure were found. Units 2 and 3 remained offline for extensive inspections, claims, including an estimate for claims incurred but not reported at year end, testing and analysis of their system generators. On June 7, 2013, SCE are recorded as liabilities in the self-insurance internal service fund. As of June unilaterally announced its plan to retire Units 2 and 3 permanently. 30, 2024, the City had an obligation related to claims and judgments which is reflected as a liability on the government-wide statements and is more fully As a result of SCE's decision to permanently retire SONGS Units 2 and 3, the described in Note 11. decommissioning phase of the plant began in June 2013. The process of decommissionining the nuclear power plant is expected to take many years and 39 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
committed at June 30, 2024 were calculated utilizing fiscal year P. Fund Equity 2024-2025 adopted General Fund expenditure budget, including appropriation adjustments, of $361,227.
In the fund financial statements, governmental fund balance is made up of the following components: On April 2, 2019, the City Council approved the General Fund - • Nonspendable fund balance is the portion of fund balance that cannot Measure Z Contingency Reserve Policy setting a required $5,000 in be spent due to form. Examples include inventories, prepaid amounts, the Contingency Reserve. The Contingency Reserve was established long-term loans, and notes receivable, unless the proceeds are to cover necessary expenses in order to provide time for a measured and thoughtful reduction in expenditures during times of economic restricted, committed or assigned. Also, amounts that must be downturn, rather than making immediate and drastic budget maintained intact legally or contractually, such as the principal of a reductions without the time for proper evaluation. permanent fund are reported within the nonspendable category.
Restricted fund balance is the portion of fund balance that is subject to Utilization of the Contingency Reserve, including specification of the externally enforceable limitations by law, enabling legislation or maximum dollar amount to be used, requires the affirmative votes of at least five members of the City Council.
limitations imposed by creditors or grantors.
• Assigned fund balance reflects the City's intended use of resources. • Committed fund balance is the portion of fund balance that can only be Intent can be expressed by the City Council or by an official to which used for specific purposes due to formal action of the City Council through adoption of a resolution prior to the end of the fiscal year. the City Council delegates the authority. On February 22, 2011, the City Council approved a policy whereby the authority to assign fund balance was delegated to the City's Chief Financial Officer, which Once adopted, the limitation imposed by resolution remains in place until a similar action is taken (the adoption of another resolution) to authorized the assignment of fund balance for specific programs or remove or revise the limitation. On September 6, 2016, the City purposes in accordance with City Council directives. The City also Council approved the General Fund Reserve Policy setting a 10% uses budget and finance policy to authorize the assignment of fund minimum in the Emergency Reserve and 5% in the Contingency balance, which is done through the adoption of the budget and Reserve with an aspirational goal of 15% in the Emergency Reserve. subsequent budget amendments throughout the year.
The Emergency Reserve was established for the purpose of addressing any extremely unusual and infrequent occurrences, such Unassigned fund balance is the residual classification that includes all as a major natural disaster or a major unforeseen settlement. spendable amounts in the General Fund not contained in other Utilization of the Emergency Reserve requires declaration of an classifications. emergency by a two-thirds majority of the City Council, and When expenditures are incurred for purposes for which both restricted and specification of the maximum dollar amount to be used. The Contingency Reserve was established for the purpose of providing a unrestricted (committed, assigned or unassigned) fund balances are available, "bridge" to facilitate a measured and thoughtful reduction in the City's policy is to use restricted amounts before unrestricted amounts. expenditures during times of economic downturn, rather than making Within unrestricted resources, committed resources are used first followed by immediate and drastic budget reductions without the time for proper assigned resources, and finally unassigned resources. evaluation. Utilization of the Contingency
specification of the maximum dollar amount to be used, requires approval by a two-thirds majority of the City Council. The reserves 40 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Q. Net Position T. Unavailable Revenue
Net position represents the difference between assets and deferred outflows Unavailable revenue arises only under a modified accrual basis of accounting. less liabilities and deferred inflows. Net position invested in capital assets Accordingly, unavailable revenue is reported only in the governmental funds consists of capital assets, net of accumulated depreciation, lease and balance sheet. These amounts are deferred and recognized as an inflow of subscription assets, net of amortization reduced by the outstanding balances of resources (revenue) in the period that the amounts become available. any borrowings used for the related acquisition, construction or improvement of those assets excluding unspent debt proceeds. Restricted net position U. Deferred Outflows and Deferred Inflows of Resources represents restricted assets less liabilities and deferred inflows related to those assets. Restricted assets are recorded when there are limitations imposed on When applicable, the statement of net position and the balance sheet will report their use either through legislation adopted by the City or through external a separate section for deferred outflows of resources. Deferred outflows of restrictions imposed by creditors, grantors or laws or regulations of other resources represent outflows of resources (consumption of net assets) that governments. Restricted resources are used first to fund appropriations. apply to future periods and that, therefore will not be recognized as an expense or expenditure until that time.
R. Interfund Transactions Conversely, deferred inflows of resources represent inflows of resources Interfund transactions are accounted for as revenues and expenditures or (acquisition of net assets) that apply to future periods and that, therefore, are expenses. Transactions, which constitute reimbursements, are eliminated in the not recognized as an inflow of resources (revenue) until that time. reimbursed fund and accounted for as expenditures or expenses in the fund to which the transaction is applicable. V. Regulatory Assets and Deferred Regulatory Charges During the year, transactions occur between individual funds for goods provided In accordance with GASB Statement No. 62, enterprise funds that are used to or services rendered. Related receivables and payables are classified as "due account for rate-regulated activities are permitted to defer certain expenses and from/to other funds" on the accompanying fund level statements. The revenues that would otherwise be recognized when incurred, provided that the noncurrent portion of long-term interfund loans receivable are reported as City is recovering or expects to recover or refund such amounts in rates advances and, for governmental fund types, are equally offset by nonspendable charged to its customers. Accordingly, regulatory assets and/or deferred fund balance to indicate that the receivable is not in spendable form. regulatory charges have been recorded in the Electric, Water, Sewer and Refuse funds.
Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial W. Property Tax Calendar statements as "internal balances."
Under California law, general property taxes are assessed for up to 1% of the S. Unearned Revenue property's assessed value. General property taxes are collected by the counties along with other special district taxes and assessments and voter approved Unearned revenues arise when the government receives resources before it debt. General property tax revenues are collected and pooled by the county has a legal claim to them, as when grant monies are received prior to meeting throughout the fiscal year and then allocated and paid to the county, cities and all eligibility requirements. In subsequent periods, when both revenue school districts based on complex formulas prescribed by State statutes. recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized. Property taxes are calculated on assessed values as of January 1 for the ensuing fiscal year. On January 1 of the fiscal year the levy is placed and a lien is attached to the property. Property taxes are due in 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 Standards Board (GASB) pronouncement effective for fiscal year 2023-2024:
second installment is due February 1 and is delinquent after April 10. The City generally accrues only those taxes, which are received within sixty days after GASB Statement No. 99, Omnibus 2022 - This Statement provides clarification the year-end. Under the Teeter plan, the County of Riverside has responsibility on previously issued Statement including classification and reporting of for the collection of delinquent taxes and the City receives 100% of the levy. 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, X. Use of Estimates
clarification of provisions in Statement No. 87, Leases, as amended, related to The preparation of financial statements in conformity with accounting principles the determination of the lease term, classification of a lease as a short-term generally accepted in the United States of America requires management to lease, recognition and measurement of a lease liability and a lease asset, and make estimates and assumptions that affect the reported amounts of assets identification of lease incentives, clarification of provisions in Statement No. and liabilities, disclosure of contingent assets and liabilities at the date of the 94, Public-Private and Public-Public Partnerships and Availability Payment financial statements, and the reported amounts of revenue and expenditures. Arrangements, related to (a) the determination of the public-private and public- Specifically, the City has made certain estimates and assumptions relating to public partnership (PPP) term and (b) recognition and measurement of revenues due and expenditures incurred through fiscal year end, installment payments and the transfer of the underlying PPP asset, clarification collectability of its receivables, the valuation of property held for resale, the of provisions in Statement No. 96, Subscription-Based Information Technology useful lives of capital assets, and the ultimate outcome of claims and Arrangements, related to the subscription-based information technology judgments. Actual results may differ from those estimates and assumptions. arrangement (SBITA) term, classification of a SBITA as a short-term SBITA, and recognition and measurement of a subscription liability, extension of the Y. Pensions period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the For purposes of measuring the net pension asset/liability and deferred effectiveness of an interest rate swap that hedges the interest rate risk of outflows/inflows of resources related to pensions, and pension expense, taxable debt, accounting for the distribution of benefits as part of the information about the fiduciary net position of the City of Riverside California Supplemental Nutrition Assistance Program (SNAP), disclosures related to Public Employees' Retirement System (CalPERS) plans (Plans) and additions nonmonetary transactions, pledges of future revenues when resources are not to/deductions from the Plans' fiduciary net position have been determined on received by the pledging government, clarification of provisions in Statement the same basis as they are reported by CaPERS. For this purpose, benefit No. 34, Basic Financial Statements-and Management's Discussion and payments (including refunds of employee contributions) are recognized when Analysis-for State and Local Governments, as amended, related to the focus due and payable in accordance with the benefit terms. Investments are reported of the government-wide financial statements, terminology updates related to at fair value. certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and Z. Other Post-Employment Benefit (OPEB) terminology used in Statement 53 to refer to resource flows statements.
OPEB refers to the benefits, other than pensions, that the City provides as part GASB Statement No. 100, Accounting Changes and Error Corrections. - This of an employee's retirement benefits. The OPEB liability is defined as the Statement defines accounting changes as changes in accounting principles, liability of employers contributing to employees for benefits provided through a changes in accounting estimates, and changes to or within the financial defined benefit OPEB plan that is administered through a trust. reporting entity and 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) AA. New Accounting Pronouncements changes in accounting principles and error corrections be reported retroactively The City has adopted and implemented the following Governmental Accounting 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 adjusting beginning balances of the current period, and (c) departments or funds, as well as any increases in appropriations, must be changes in accounting estimates be reported prospectively by recognizing the authorized by the City Council. Expenditures may not legally exceed budgeted change in the current period. Refer to Note 26 for current year adjustments appropriations at the departmental level within a fund. related to GASB statement No. 100.
In connection with the preparation of its biennial budgets, the City prepares The following GASB pronouncement is effective for the succeeding fiscal year: Five-Year Financial Plans for the General Fund and Measure Z for the purpose of helping City policy makers and management to understand the fiscal gaps Fiscal Year 2025
that may exist between revenue forecasts and projected expenditure GASB Statement No. 101, Compensated Absences - This Statement requires requirements. The Five-Year Financial Plans provide a guide for establishing that liabilities for compensated absences be recognized for (1) leave that has City department budget targets, which are intended to be used by City not been used and (2) leave that has been used but not yet paid in cash or departments to develop budget proposals that are constrained by the resources settled through noncash means. It also requires that a liability for certain types anticipated to be available in the upcoming fiscal year. of compensated absences—including parental leave, military leave, and jury duty leavenot be recognized until the leave commences. This Statement also Note 3. Cash and Investments requires that a liability for specific types of compensated absences not be recognized until the leave is used. Further, this Statement establishes guidance Cash and investments at fiscal year-end consist of the following:
for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements.
Investments 1,046,416
Note 2. Legal Compliance - Budgets Investments with fiscal agent 299,793 Budgets are adopted on a basis consistent with accounting principles generally 1,346,209 accepted in the United States of America. Annual appropriated budgets are Cash on hand and deposits with financial institutions 45.394 adopted for all departments within the general, special revenue and capital Total 1,391,603 project funds. Formal budgets are not employed for debt service funds because debt indenture provisions specify payments. The permanent fund is not The amounts are reflected in the statements of net position of the government- wide and fiduciary fund financial statements:
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 Cash and investments 949,759 proposed biennial budget that includes a summary of proposed revenues and Restricted cash and cash equivalents 141,322 expenditures, along with historical data for the two preceding fiscal years. The Restricted cash and investments 247.105 City Manager presents the operating budget and capital improvement plan to Total per statement of net position 1,338,186 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 Fiduciary fund cash and investments 35,264 requires annual budget adoption. The City Manager is legally authorized to Fiduciary fund cash and investments with fiscal agent 18,153 transfer budgeted amounts between divisions and accounts within the same Total 1,391,603 department and fund. However, transfers of appropriations between 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 3 Minimum credit rating of AA (or its equivalent) by at nationally recognized for funds required to be held by outside fiscal agents under the provisions of statistical rating organization bond indentures, which are administered by outside agencies. 4 Or no more than 15% of the portoflio may be invested in any combination of Interest income earned on pooled cash and investments is allocated monthly to non-negotiable certificates of deposit as set forth in Federally Insured Time unds based on the beginning and month-end balances. Interest income from Deposits, Collaterized Time Deposits, and Certificate of Deposit Placement cash and investments held at fiscal agents is credited directly to the related Services. No more than 30% of the portfolio may be invested in any account. Bank deposits are covered by federal depository insurance for the first combination of non-negotiable or negotiable certificates of deposit $250 or by collateral held in the pledging bank's trust department in the name of the City. 5 Or no more than 10% of outstanding commercial paper of any single issuer may be purchased
Authorized Investments 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 Under provisions of the City's investment policy, and in accordance with California Government Code Section 53601, the City Treasurer may invest or The City's investment policy provides the following three exceptions to the deposit in the following types of investments: above: (1) investments authorized by debt agreements, (2) investments in the City of Riverside - 115 Trust for Pension and (3) funds reserved in the San Max Max % of Max % in Onofre Nuclear Generating Station Decommissioning Account for which the Maturity Portfolio One Issuer five-year maturity limitation may be extended to the term of the operating Local Agency Investment Fund (State Pool) N/A N/A N/A license.
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 Investments Authorized by Debt Agreements Medium-Term Corporate Notes! 5 years 30 % 5%
Municipal Bonds' 5 years 30% 5 % Provisions of debt agreements, rather than the general provisions of the Negotiable Certificates of Deposit2 5 years 30 % 5 % California Government Code or the City's investment policy, govern investments Mortgage Pass-Through and Asset-Backed Securities 3 5 years 20 % 5 % Certificates of Deposit Placement Services* 5 years 30 % 5 % of debt proceeds held by bond fiscal agents. Permitted investments are Collateralized Time Deposits* 5 years 30 % 5 % specified in related trust agreements and include the following:
Federally Insured Time Deposits 5 years 30 % 5 %
Supranational Securities: 5 years 30% 10 % • Securities with Direct Obligations of the U.S. Government and its Federal Agency Obligations 5 years N/A 25 % sponsored agencies U.S. Treasury Obligations 5 years N/A N/A
Repurchase Agreements 1 year N/A N/A
Commercial Paper of "prime" qualitys 270 days 25% 5 % • Commerical Paper rated AA or higher at the time of purchase Bankers' Acceptance?' 180 days 10 % 5% Investments in money market funds rated in the single highest Reverse Repurchase Agreements® 92 days 20% N/A
classification, except for certain debt proceeds which have no Menignize sais ra ra of A Canization ative time of at has one nationally minimum rating requirement Municipal obligations rated Aaa/AAA or general obligations of states 2 Issued by organizations having short-term obligations rated A-1 (or its with ratings of at least Aa2/AA or higher by both Moody's and S&P equivalent) and long-term obligations rated A (or its equivalent) by at least one • Investment Agreements nationally recognized statistical rating organization 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. based upon the account's investment objectives provided by the Employer/Plan Sponsor/Plan Administrator.
Investments in the City of Riverside - 115 Trust for Pension The City has established the City of Riverside - 115 Trust for Pension (the Plan) Disclosures Relating to Fair Value Measurement and Application to accumulate resources for future contributions to CaPERS. As of June 30, Certain assets and liabilities are required to be reported at fair value. The fair 2024, the City had $65,992 of restricted cash and investments reported in a value framework provides a hierarchy that prioritizes the inputs to valuation Section 115 Trust restricted for future pension contributions. $60,166 of these techniques used to measure fair value. The hierarchy gives the highest priority funds are in the General Fund, $3,510 are in the Electric Fund, $1,157 are in to unadjusted quoted prices in active markets for identifcal assets or liabilities the Water Fund, $793 are in the Sewer Fund, $38 are in the Airport Fund, $259 (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 are in the Refuse Fund, and $69 are in the Public Parking Fund. measurements). The three levels of fair value hierarchy are described as At June 30, 2024, the Plan's assets are being held with two trustees, US Bank follows:
and Charles Schwab and Company. The trustees have delegated investment Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for authority to Highmark Capital Management and Shuster Advisory Group, LLC; identical assets or liabilities in an active market respectively. Highmark Capital Management and Shuster Advisory Group, LLC are SEC-registered investment advisors, with the full investment discretion over Level 2 - Inputs other than quoted prices included within Level 1 that are the managed Plan assets. The goal of the Plan's investment program is to observable for the asset or liability, either directly or indirectly and fair value is provide a reasonable level of growth which, will result in sufficient assets to pay determined through the use of models or other valuation methodologies the present and future obligations of the Plan. including:
Investment Time Horizon: Moderate-Term 3 - 5 years • Quoted prices for similar assets or liabilities in active markets; • Anticipated Cash Flows: Assets in the Plan will seek to mitigate the Quoted prices for identical or similar assets or liabilities in markets that impact of future rate increases from CaPERS. are inactive; Investment Objective: Moderate Growth Inputs other than quoted prices that are observable for the asset or : Stategic asset: Modation: Moderate Growth 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 Strategic Asset to the fair value measurement. These unobservable inputs reflect the City's own Allocation Ranges Policy assumptions about the inputs market participants would use in pricing the asset --
Cash 0% - 10% 2% or liability (including assumptions about risk). The unobservable inputs are Fixed income 28% - 48% 38% developed based on the best information available in the circumstances and Equity 50% - 70% 60%
• Investment Advisor has full investment discretion over the assets in the The fair value of the City's investments in categorized within Level 2 of the fair account that are managed. Investment Advisor is authorized to value hierarchy using the institutional bond quotes with evaluations based on various market and industry inputs.
purchase, sell, exchange, invest, re-invest and manage the designated assets held in the account without prior approval or subsequent approval of any other party to the plan. This management shall be 45 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
The City has the following recurring fair value measurements as of June 30, 2024: Remaining Maturity (in Months)
12 Months 13 to 36 37 to 60 More than
Quoted Total or Less Months Months
Prices in 1,000 $ 1,000 $ - 60 Months
Active Significant Money Market Mutual Funds
Markets for Other Significant Joint Powers Authority Pools 213,275 213,275 Identical Observable Unobservable Mortgage Pass-Through Securities 31,387 9,582 4,492 17,313 Assets Inputs Inputs Asset-Backed Securities 90,836 5.097 31,026 54,713 Total (Level 1) (Level 2) (Level 3) U.S. Treasury Obligations 340,864 106,948 233,916 Federal Agency Obligations 96,756 29,778 40,442 26,536
Mortgage Pass-Through Securities 31,387 5 31,3875 Medium-Term Corporate Notes 208,962 92,070 84,996
31.896
Asset-Backed Securities 90,836 90,836 Supranational Securities 63,336 22,988 36,208 U.S. Treasury Obligations 340,864 340,864 4,140
Federal Agency Obligations 96,756 96,756 Held by Fiscal Agent 208,962 208,962 Money Market Mutual Funds 192,565 192,565 Medium-Term Corporate Notes 50,945
50,945
Supranational Securities 63,336 63,336 Local gency investment Fund 1,310 Held by Fiscal Agent: 1,310
Asset-Backed Securities 1,988 1,988 Asset-Backed Securities 1,988 1,343 645 U.S. Treasury Obligations 34,980 3,205 20,360 11,225
U.S. Treasury Obligations 34,980 34,980 3,439
.. Federal Agency Obligations 2,196 1,243
Federal Agency Obligations 3,439 3,439 Medium-Term Corporate Notes 10,715 3.415 3,588 3.712 Medium-Term Corporate Notes 10.715 10.715 988 1.916
Supranational Securities 3,851 947
Supranational Securities 3,851 3.851
Total $ 1,346,209 5 549,393 $ 326,416 $ 470,211 5
Total 887,114 887.114
Investments not subject to The City assumes that callable investments will not be called. fair value hierarchy:
Joint Powers Authority 213,275 |
Local Agency Investment Fund 1,310
Mutual Funds 50,945 Disclosures Relating to Credit Risk Money Market Mutual Funds 193,565
Total Investments $ 1,346,209 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 Disclosures Relating to Interest Rate Risk of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of year-end for each investment type:
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City's investment policy requires that the interest rate risk exposure be managed by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:
46 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
The pledge to secure deposits is administered by the California Commissioner Ratings as of Year End * 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 Total AAA AA Unrated United States and its agencies, or obligations of the State or its municipalities, Money Market Mutual Funds 1.000 5 1,000 5 school districts, and district corporations are pledged. Collateral of 150% is Joint Powers Authority Pools 213,275 213,275
Mortgage Pass-Through Securities 31,387 28.474 2,913 required if a deposit is secured by first mortgages or first trust deeds upon Asset-Backed Securities 90,836 69,631 21,205 improved residential real property located in California. All such collateral is U.S. Treasury Obligations 340,864 340,864
Federal Agency Obligations 96,756 96,756 considered to be held by the pledging financial institutions' trust departments or Medium-Term Corporate Notes 208,962 6,325 64,367 102,550 35,720 agents in the name of the City. Obligations pledged to secure deposits must be Supranational Securities 63,336 63,336
Held by Fiscal Agent delivered to an institution other than the institution in which the deposit is made; Money Market Mutual Funds 192,565 43,394 149,171 however, the trust department of the same institution may hold them.
Mutual Funds 50,945 50,945
Local Agency Investment Fund 1,310 1,310 Written custodial agreements are required to provide, among other things, that Asset-Backed Securities 1,988 949 1,039
U.S. Treasury Obligations 34,980 34,980 the collateral securities are held separate from the assets of the custodial Federal Agency Obligations 3,439 3,439 institution.
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 | Investment in State Investment Pool "Fitch rating used with "-" and "+" removed for simplicity The City is a voluntary participant in the Local Agency Investment Fund (LAIF) Concentration on Credit Risk that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's The investment policy of the City contains no limitations on the amount that can investment in this pool is reported in the accompanying financial statements at be invested in any one issuer beyond that stated above. For fiscal year ended amounts based upon the City's pro-rata share of the fair value provided by LAIF June 30, 2024, the City did not have any investments in any one issuer (other for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). than U.S. Treasury securities, money market funds, and external investment The balance available for withdrawal is based on the accounting records pools) that represent 5% or more of total City investments. maintained by LAIF, which are recorded on an amortized cost basis.
Custodial Credit Risk Investment in Joint Powers Authority Custodial credit risk for deposits is the risk that, in the event of the failure of a The City is a voluntary participant in the California Asset Management Program depository financial institution, a government will not be able to recover its (CAMP). CAMP is an investment pool offered by the California Asset deposits or will not be able to recover collateral securities that are in the Management Trust and created through a joint powers agency as a pooled possession of an outside party. The custodial credit risk for investments is the short-term porfolio and cash management vehicle for California public agencies risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a under California Government Code Section 53601(p). CAMP is governed by a transaction, a government will not be able to recover the value of its investment seven-member Board of Trustees comprised of finance directors and treasurers or collateral securities that are in the possession of another party. The City's of California public agencies. The City reports its investments in CAMP at the investment policy requires that a third-party bank trust department hold all fair value amounts provided by CAMP, and is exempt from the fair value securities owned by the City. All trades are settled on a delivery vs. payment hierarchy. basis through the City's safekeeping agent. The City has no deposits with financial institutions; bank balances are swept daily into a money market account.
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 office building, which was transferred to the Successor Agency. The term is for thirty years and the State takes ownership of the facility at 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
vear elig is 30, 02ary of changes in the capital assets during the fiscal Beginning Additions/ Deletions/ Ending
Business-Type Activities: Balance Transfers In Transfers Out Reclassifications Balance Capital assets, not depreciated:
Beginning Additions/ Deletions/ Ending Land 103,456 $ 204 $ (238) S 103.422 Governmental Activities: Balance Transfers In Transfers Out Reclassifications Balance Intangible assets 21.496 21.496 Capital assets, not depreciated: Construction in progress 131,870 70.011 (36.167) 165.714 Land $ 383,379 $ 634 $ (6,479) S 377,534 Total capital assets, not Construction in progress 51,002 29,772 (53) (16.175) 64.546 depreciated 256,822 70,215 (36,405) 290,632 Total capital assets, not Capital assets, being depreciated:
depreciated 434.381 30,406 (6.532) (16,175) 442,080 678,748 413 679,161 Capital assets, being depreciated: Improvements other than buildings 2,046,268 35,497 (3,881) 2,077,884 Buildings 190,202 190,202 Machinery and equipment 113,227 10,643 (1,611) 122,259 Improvements other than buildings 273,877 47 665 274,589 Intangibles, depreciable 30,848 610 31,458 Machinery and equipment 124,274 11,898 11,447 139,446 Total capital assets, being Intangibles, depreciable 219 219 depreciated 2,869,091 47,163 (5,492) 2,910,762 Infrastructure 1.217,228 23.635 (8,900) 4,063 1,236.026 Total capital assets, being Les: accumulated depreciation depreciated 1,805,800 35,580 (17,073) 16,175 _1,840.482 Buildings (227,471) (14,430) (241,901) Less: accumulated depreciation Improvements other than buildings (836,849) (52,584) 2,877 (886 556) Machinery and equipment (80,515) (5,639) 1,407 (84,747) Buildings (87,797) (4,898) (92,695) Intangibles, depreciable (22,779) (2,935) (25.714) Improvements other than buildings (178,993) (11,291) (190,284) Total accumulated Machinery and equipment (93,081) (9,206) 7,785 (94,502) depreciation (1,167,614) (75,588) 4,284 (1,238,918) Intangibles, depreciable (219) (219) Total capital assets being Infrastructure (539.478) (26.581) 8.900 (557 159) depreciated, net 1,701,477 (28,425) (1,208) 1.671,844 Total accumulated Business-Type activities
depreciation (899,568) (51,976) 16,685 (934,859) capital assets, net $ 1,958,299 S 41,790 S (37,613) $ 1.962,476 Total capital assets being Lease and subscription assets, depreciated, net 906,232 (16,396) (388) 16,175 905,623 being amortized Governmental Activities Land 312 312
capital assets, net $ 1,340,613 S 14.010 S (6,920) S - $ 1,347,703 Buildings 348 348 Lease and subscription assets, Machinery and equipment 345 (194) 332 being amortized Subscription-based information
Buildings 900 413 900 technology arrangements 161 353 514 Machinery and equipment 580 (409) 584 Total lease and
Subscription-based information subscription assets 1,166 534 (194) 1,506 technology arrangements 3.761 1,376 (1.004) 4,133 Less accumulated amortization Total lease and Land (149) (74) (223)
subscription assets 5,241 1,789 (1,413) 5.617 Buildings (149) (75) ... (224) Less accumulated amortization Machinery and equipment (156) (72) (114) Buildings (502) (254) (756) Subscription-based information Machinery and equipment 290) (123) 264 (149) technology arrangements (74) (146) (220) Subscription-based information Total lease and
technology arrangements (1,683) (1,580) 1,003 (2,260) subscription assets Total lease and accumulated
subscription assets amortization (528) (367) 114 (781)
accumulated Total lease and
amortization (2,475) (1,957) 1,267 (3.165) subscription assets, net 638 167 (80) 725 Total lease and Capital, lease, and
subscription assets, net 2,766 (168) (146) 2.452 subscription assets, net $ 1,958,937 $ 41,957 $ (80) $ (37,613) $ 1,963,201 Capital, lease, and
subscription assets, net $ 1,343,379 $ 13,842 $ (7,066) S = $ 1,350,155 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:
Note 6. Leases and Subscription-Based Information Technology Coral goratites: 3,610 Arrangements
Public safety 8,441
Highways and streets 27,551 Leases Receivable
Culture and recreation 11,205
Internal service funds 1.169 Leases are financings of the right-to-use an underlying asset and a lessor is Total depreciation expense - Governmental required to recognize a lease receivable and a deferred inflow of resources.
Activities 51,976
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 Business-Type Activities: to 55 years beginning on the contract commencement date. As of June 30, Electric 38,081 2024, the value of the lease receivable is $117,409. The leases have interest Water 16,753 rates ranging from 0.52% to 3.35%. The value of the deferred inflow of Sewer 14,872
Airport 751 resources as of June 30, 2024 was $128,476 and the City recognized lease Refuse 765 revenue of $6,493 during the fiscal year.
Transportation 285
Public Parking 1,004
Civic Entertainment 3,077 Governmental Activities
Total depreciation expense -
Business-Type Activities 75,588 Fiscal Year
Principal Interest Total Payments
Amortization expense was charged to various functions as follows: 2025 1, 021 $ 246 $ 1,267 2026 1,059 226 1,285
2027 1,062 206 1,268
Governig enemies: 2028 957 187 1,144
1,581 2029 846 168 1,014
Public safety 71
Highways and streets 10 2030-2034 2,049 647 2,696
Culture and recreation 286 2035-2039 383 539 922
Internal service funds 2040-2044 504 479 983
Total amortization expense - Governmental 2045-2049 576 396 972 Activities 1,957
2050-2054 674 297 971
2055-2059 906 165 1,071
Business-type Activities: 2060-2064 517 20 537
Electric 200 Total 10,554 5 3,576 $ 14,130
Water
Sewer
Airport
Refuse
Transportation
Public Parking 74
Total amortization expense - Governmental
Activities 367
50 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Business-Type Activities Amount of Lease Assets by
Major Classes of Underlying
Principal Interest Asset
Fiscal Year Payments Payments Total Payments
2025 2,472 $ 1,969 $ 4,441 Lease Asset Accumulated
2026 2,582 1,947 Asset Class Value Amortization
2027 2,386 Land 312 $ (223)
2028 1,853 Buildings 1,248 (980)
2029 1,459 Machinery and equipment 916 (263)
2030-2034 5,232 2,476 $ (1,466)
2035-2039 4,440
2040-2044 8,698
2045-2049 9,887
2050-2054 11,802 Ending Due Within
2055-2059 13,887 18,307 Governmental Activities: Balance Additions Reclass Reductions Balance One Year Lease liability
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
Beginning Ending Due Within
Business-Type Activities::
Lease Liability Lease liability
reuires a financine or the right and i underly lease as and a lessee is Governmental Activities
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 Fiscal Year Principal Interest make principal and interest payments through fiscal year 2029. As of June 30, 2025 212$ Total Payments 2024, the value of the lease liability is $1,029. The leases have an interest rates 2026 129 ranging from 0.52% to 2.50%. The value of the lease asset as of June 30, 2024 2027 97 102 of $2.476 with accumulated amortization of $1.466 and is included with land. 2028 85 87 buildings, and machinery and equipment on the table below: 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 Governmental Activities
Principal Interest Fiscal Year Principal Interest Total Payments Fiscal Year Payments Payments Total Payments 2025 405$ 19 $ 2025 219 $ 2026 339 12 351
2026 120 2027 80 89
2027 38 2028 39 47
2028 38 2029 39 46
2029 31 31 2030-2034 14 231
Total 443 $ 118 454 Total 1,219 g 69 $ 1,188
Business-Type Activities
Subscription-Based Information Technology Arrangements Liability Total Payments Fiscal Year Principal Interest
The City of Riverside has several subscription-based information technology 2025 cA 123 $ 126 arrangements (SBITA) for the use of various software as of the end of the fiscal 2026 118 119 year. The City is required to make principal and interest payments through fiscal Total EA 241 245 year 2034. As of June 30, 2024, the value of the subscription liability was $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 is $4,647 with accumulated amortization of $2,480. Note 7. Derivative Instruments Beginning Ending Due Within
Governmental Activities: Balance Additions Reclass Reductions) s ance One year. Interest Rate Swaps SBITA liability
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 Beginning Ending Due Within deferral account for each swap is included as part of the deferred charge on Business-Type Activities:: Balance Aditions Reclass Reductions s Balance One tear refunding associated with the new bonds. The swaps were also employed as a SBITA liability
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 has 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.
As of June 30, 2024, rates were as follows:
The following is a summary of the derivative activity for the year ended June 30, 2024:
Fair Value 2011 Water
as of Change in Refunding/ 2012
Fair Value Revenue 2008 Convention
for Fiscal Bonds Renaissance Center
06/30/24 Year Series A COPS Financing
Governmental Activities
2008 Renaissance Certificates of Participation* 52,923 $ (2,261) $ 1,120 Rates Rates Rates
Business-Type Activities Intersed paymen to counterparty 3.20000% 3.36200 % 3.24000% 2011 Water Retuning Revenue Boards Series A 23,777 (980) 486 Variable payment from counterparty 0093099)% (0.83002)% (2.53304)% 24,050 (831) Net interest rate swap payments 2.26901% 2.53198 % 0.70696 % 2012 Convention Center Financing 23,829 1,108 19 Variable rate bond coupon payments 0.81071% 0.70613% 2.53304% Synthetic interest rate on bonds 3.07972% 3.23811% 3.24000 % * The 2008 Riverside Renaissance Certificates of Participation were distributed between Governmental Activities and Business-Type Activities to properly reflect thier proportional share.
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 Objective: In order to lower borrowing costs as compared to fixed-rate bonds, bonds do not have a corresponding fair value decrease. The fair value was the City entered into interest rate swap agreements in connection with it's 2008 Certificates developed by a pricing service using the zero-coupon method. This method 2011A Water Revenue Bonds, $128,300
Participation ("COP") and $41,650 Convention Center. calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate Terms: Per the existing swap agreements, the City pays a counterparty a fixed future spot interest rates. These payments are then discounted using the spot payment and receives a variable payment computed as 62.68% of the London rates implied by the current yield curve for hypothetical zero-coupon bonds due Interbank Offering Rate (LIBOR) one month index plus 12 basis points for the on the date of each future net settlement of the swap.
Water swap. For the COP swap, the City pays a fixed payment and receives a Credit risk: The City is not exposed to substantial credit risk because each variable payment computed as 63.00% of the LIBOR one-month index plus 7 swap, with the exception of the Convention Center Financing swap have a basis points. The Convention Center financing consists of an initial 21-month negative fair value. The swap counterparties, Bank of America, N.A., PNC variable rate interest only period during construction, which swaps to a fixed rate Financial Services Group, Inc. and J.P. Morgan Chase & Co. were rated A+, A, for the remaining 20-year amortization whereby the City will pay a fixed payment and A- respectively by Standard & Poor's. To mitigate the potential for credit risk 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. posted with a third-party custodian. At June 30, 2024, there is no requirement The bond and the related swap agreement for the 2011A Water for collateral posting for any of the outstanding swaps.
Revenue/Refunding Bonds mature on October 1, 2035. The 2008 Certificates of Basis risk: The City is exposed to basis risk on its pay-fixed interest rate swap Participation mature on March 1, 2037. The loan with PNC Bank, N.A. will be and rate cap hedging derivative instruments because the variable-rate paid in full on April 1, 2034.
payments received by the City on 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 ('LOC") in order to provide liquidity should all or a portion of the debt be convergence, the expected cost savings may not be realized. optionally tendered to the remarketer without being successfully remarketed:
Termination risk: The derivative contract uses the International Swap Dealers LOC Annual Association Master Agreement, which includes standard termination events, Expiration Commitment such as failure to pay and bankruptcy. The Schedule to the Master Agreement Debt Issue LOC Provider Date Fee includes an "additional termination event." That is, a swap may be terminated by 2008 Certificates of Participation Bank of America, N.A. 2026 0.350% the City if either counterparty's credit quality falls below "BBB-" as issued by 2011A Water Revenue Bonds PNC Bank, N.A. 2025 0.230% Standard and Poor's. The City or the counterparty may terminate a swap if the To the extent that remarketing proceeds are insufficient or not available, other party fails to perform under the terms of the contract. If a swap is tendered amounts will be paid from drawings made under an irrevocable direct- terminated, the variable-rate bond would no longer carry a synthetic interest pay letter of credit. 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. 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 Swap payments and associated debt: As of June 30, 2024, the debt service quarterly (2011A Water Bonds) not to exceed a 5-year period. For the 2008 requirements of the variable-rate debt and net swap payments assuming COPs, the City would be required to pay annual interest equal to the Bank Rate current interest rates remain the same, for their term are summarized in the in effect on such date plus 3%, where the Bank Rate is currently calculated at following table. As rates vary, variable-rate bond interest payments and net the highest of (i) the Prime Rate plus 1%, (ii) the Federal Funds Rate plus 2%, swap payments will vary. and (iii) 7%. For the 2011A Water Bonds, the City would be required to pay annual interest equal to the highest of (i) the Prime Rate plus 3%, (ii) the Variable-Rate Bonds 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 Interest Rate indentures allow the City to convert the mode of the debt in the case of a failed Fiscal Year Principal Interest Swaps, Net Total
2025 6,943 5 11,049 On February 1, 2019, the City entered into a subordinate letter of credit 2026 11,085 agreement with U.S. Bank, National Association. The agreement was renewed 2027 1.083 11,112 on February 1, 2022. The Subordinate Letter of Credit is a tool approved 2028 11,133 through the Electric and Water Utility Five-Year Rate Plan to manage rate 2029 11,049 increases by enabling the Electric Utility and Water Utility to reduce cash levels 2030-2034 59,995 2,865 69,913 while maintaining compliance with the Riverside Public Utilities Cash Reserve 2035-2039 28,675 323 30,115 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 Total 125,990 $ 9,083$ 20,383 $ 155,456 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.
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 between the City and the purchaser of the bonds. The City has entered into the following letters of credit 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 Governmental Activities:
Changes in Long-Term Obligations: Principal
General Obligation Bonds - Governmental Activities: Outstanding Below is a summary of changes in long-term obligations during the fiscal year:
$20,000 Fire Facility Projects, Election of 2003 General Obligation Bond; 3.0% to 5.5%, due in annual installments from $410 to $1,740 through August 1, 2024. 1,740
Beginning Ending Due Within
Governmental Activities: Balance Add: unamortized bond premium 16 General obligation bonds 1,756 One Year
Pension obligation bonds 321,413 23,625 (7,583) 313,830 9,841 Total general obligation bonds 1,756 Lease revenue bondation 80,584 (29,142) 75,067 5,034
65,093 (3,930) 61,163 3,588
Direct borrowings: Remaining general obligation bond debt service payments will be made from Financed purchase 19,230 (3.665) 16,152 3,799 unrestricted revenues of the General Fund. Annual debt service requirements to $ 489,731 $ 24,212 5 (45,975) $ 467,968 5 24,002 maturity are as follows:
Balance (As Ending Due Within
Business-Type Activities: 5 118876 S 283940 Reclass R 512672 8 38,515 Fiscal Year Interest Total Revenue bonds 2025 48$ 1,788
Arbitrage payable Premium 16 16
Pension obligation bonds 103.705 (8,452) 95,253 9,366
Lease revenue Bondition 24-562 (1,391) 23,191 1,421
(480) 5,688 466
Direct borrowings: Total 1,756 $ 48 $ 1,804
Notes payable 39,970 (3,445) 36,525 3,567
Contracts payable 933 150
Financed purchase - 1980) 31492122 5 351
5 .340.90 3 284513 5 53,836
Principal
Pension Obligation Bonds - Governmental Activities: Outstanding In 2018, the 2017 Taxable Pension Obligation Bonds were distributed between Governmental Activities, Business-Type Activities and the Successor Agency to properly reflect their proportional share. Pension Obligation bonds are not
collateralized by assets, nor do they constitute an obligation of the City of Riverside whereby the City is obligated to levy or pledge any form of taxation.
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 Principal between Governmental Activities and Business-Type Activities. Certificates of Participation - Governmental Activities: Outstanding $31,960 2017 Taxable Pension Obligation Bonds Series A; In 2019, the 2008 Riverside Renaissance Certificates of
1.25% to 3.125%, due in annual installments from $2,910 to Participation were distributed between Governmental Activities $3,580 through June 1, 2027; $15,299 relates to Governmental and Business-Type Activities to properly reflect their proportional Activities. 4,993 share.
$19,945 2006 Galleria at Tyler Public Improvements Certificates $432,165 2020 Taxable Pension Obligation Bonds Series A; of Participation are secured with collateral of the two level 912
1.646% to 3.857% due in annual installments from $2,920 to space parking structure located near Tyler Street and Nordstrom $28,310 through June 1, 2045. $324,567 relates to store, the Tyler Mall North Plaza, the North Plaza parking, storm Governmental Activities 308,951 drains related to those improvements, and portions of two 313,944 arterial streets; 4.0% to 5.0%, due in annual installments from Less: unamorized bond discount (114) $435 to $1,270 through September 1, 2036.
Total pension obligation bonds 313,830 Certificates of
$128,300 2008 Riverside Renaissance
Remaining pension obligation bond debt service payments will be made from Participation are secured with collateral of the Adulka Park, unrestricted revenues of the General Fund. Annual debt service requirements to Fairmount Park and Golf Course, Arlington Heights Sports Park, maturity are as follows: Orange Terrace Park, Orange Terrace Community Center and Orange Terrace Library; issued at a variable rate; however, the City entered into an agreement to convert to a fixed rate of
3.4%. For information on the swap agreement see Note 6. Due Fiscal Year Principal Interest Total in annual installments from $2,900 to $7,200 through March 1, 2025 9,841 $ 11,353 $ 21,194 2037; $89,507 relates to Governmental Activities. 53,509 2026 9,884 11,123 21,007 $21,190 2023 Riverside Public Financing Authority Local 2027 10,966 10,868 21,834 Measure A Sales Tax Revenue (Installment Sale) Refunding 2028 10,570 20,913 Certificates of Participation. On 7/27/2023 these bonds refunded 2029 10,283 21,783 and replaced the 2013 Pavement Rehab Certificates of 2030-2034 77,652 45,003 122,655 Participation. The City entered into an installment sale with a 2035-2039 109.392 26.851 136,243
fixed rate of 5%. The annual payments are $1,830 to $2,595 2040-2044 71,447 7,615 79,062 through June 1, 2033. 19.360 2045-2049 113 3,032 Subtotal 72,874
Discount (114) - (114) Plus: unamortized bond premium
2.193
Total certificates of participation 75,067
Total 313,830 $ 133,779 $ 447,609
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)
$15,980 2019A Lease Revenue Refunding Bonds (Galleria at Tyler Public Improvements) are secured by lease payments on Fiscal Year Principal Interest Total the two level 912 space parking structure located near Tyler 2025 5,034 $ 2,740 $ 7,774 Street and Nordstrom store, the Tyler Mall North Plaza, the 2026 5,263 2,540 7,803 North Plaza parking, those
2027 5,493 2,332 7,825 improvements, and portions of two arterial streets. The bonds 2028 5,727 2,115 7,842 were issued to refinance all but $5 of the outstanding 2006 2029 5,902 1,888 7,790 Lease Revenue Certificates of Participation (Galleria at Tyler 2030-2034 30,868 5,702 36,570 Public Improvements); 2.75% to 4.0%, due in 2035-2039 14,587 870 15,457 installments from $605 to $1,180 through November 1, 2036.
Premium 2,193 - 2,193 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 Total 75,067 $ 18,187 $ 93,254 Payments on an annual basis. The rental payments may not be accelerated. 12,465
Principal $33,505 2019B Lease Revenue Refunding Bonds (Main Library Outstanding Project); 3.0% to 5.0%, due in annual installments from $1,245 Lease Revenue Bonds - Governmental Activities:
to $2,645 through November 1, 2036. The bonds are secured by In 2019, the Series 2012A Lease Revenue Refunding Bonds an amendment to the Ground Lease entered into by the City were distributed between Governmental Activities, Business- upon issuance of the 2012A Lease Revenue Bonds. It adds the Type Activities, and Successor Agency to properly reflect their remainder of the City Hall Complex, the Corporation Yard proportional share. Administration Building and annex, Bobby Bonds Park, and the Main Library site. In the event of default, the Trustee may retain On August 15, 2012, the City issued the Series 2012A Lease the Lease Agreement and hold the City liable for all Base Rental Revenue Refunding Bonds in the amount of $41,240. The Payments on an annual basis. The rental payments may not be bonds are secured by lease payments on a portion of the City accelerated. 26,075 Hall Complex and the Lincoln Police Patrol Center. The bonds Subtotal 54,885 were issued to refinance the 2003 Certificates of Participation. 6,278 Interest on the bonds is payable semi-annually on May 1 and Add: uTomatized bove pre ion s 61,163
November 1 of each year, commencing May 1, 2013. The rate of interest varies from 2% to 5% per annum depending on maturity date. Principal is payable in annual installments ranging from $1,295 to $2,840 commencing November 1, 2013 requirements to maturity are as follows:
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. $28,442 relates to
Governmental Activities. 16,345
57 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
$283,325 2019 Electric Refunding/Revenue Bonds; Series A, Fiscal Year Principal Interest Total
2025 3,588 $ 2,389 $ 5,977 to 8240e though 0% duer 1, 2048. helon rum 33 545 2026 3,733 2,242 5,975 2008 Electric Revenue Bonds Series D and partially refunded 2027 3,896 2,078 5,974 the 2008 Electric Revenue Bonds Series A and C. The refunding 2028 4,074 1,895 5,969 transactions resulted in a total net present value savings of 2029 4,263 1,703 5,966 $36,810. 232,480
2030-2034 24,351 5,369 29,720
2035-2039 10,980 788 11,768 $31,390 2023A Electric Refunding/Revenue Bonds; Series A Premium 6,278 6,278 fixed rate bonds, 5.0%, due in annual installments from $990 to $2,395 through October 1, 2043. The bonds refunded the
Total 61,163 $ 16,464 $ 77,627 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 Business-Type Activities: the remaining 2008A Electric Revnue bonds, 2008C Electric Revenue bonds, and 2011A Electric Revenue Bonds. 213.295 Subtotal 600,680
The following debt has been issued for the purpose of generating capital Add: Unamortized bond premium 76,815 resources for use in acquiring or constructing municipal facilities or Subtotal - Electric 677,495 infrastructure projects.
Water
Principal All water revenue bonds are covenanted per the Amended and Revenue Bonds - Business-Type Activities: Outstanding Restated Resolution No. 17664 (Water) Master Resolution that Electric upon the occurrence and continuation of an event of default, the All electric revenue bonds are covenanted per the Amended and owners of 25% in aggregate amount of Bond Obligation may, by Restated Resolution No. 17662 (Electric) Master Resolution that written notice to the City, declare the entire unpaid principal and upon the occurrence and continuation of an event of default, the accreted value of the bonds due and payable should the City fail owners of 25% in aggregate amount of Bond Obligation may, by to pay its debts as they become due or upon the entry of any written notice to the City, declare the entire unpaid principal and decree or order of bankruptcy of the City. accreted value of the bonds due and payable should the City fail to pay its debts as they become due or upon the entry of any decree or order of bankruptcy of the City.
$67.790 2009 Water Revenue Bonds; Series B fixed rate bonds,
5.1% to 6.3%, due in annual installments from $2 475 to $4 985 through October 1, 2039. 60,115
$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
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 $153,670 2018 Sewer Revenue Bonds; Series A fixed rate bonds were issued at a variable rate; however, the City entered bonds, 4% to 5%, due in annual installments from $2,905 to into an agreement to convert to a fixed rate of 3.2%. For $11,775 through August 1, 2039. The bonds advanced information on the swap agreements see Note 6. Bonds are refunded the 2009 Direct Pay Build America Bonds Series B. due in annual installments from $600 to $3,950 through October The refunding transaction resulted in a total net present value 24,050 savings of $18,932. 134,135
Subtotal 301,625
$114,215 2019 Water Refunding/Revenue Bonds; Series A,
Add: unamortized bond premium 33,442
fixed rate bonds, 5.0%, due in annual installments from $1,680 to $8,455 through October 1, 2048. The bonds refunded the Subtotal - Sewer 335,067 2008 Water Revenue Bonds Series B and partially refunded and Total revenue bonds 1,268,727 partially unwound the swap on the 2011 Water Revenue Bonds Remaining revenue bond debt service payments will be made from revenues of Series A. The refunding transactions resulted in a total net present value savings of $10,759. 93,895 the Electric, Water and Sewer Enterprise funds. Annual debt service requirements to maturity are as follows:
$58,025 2022 Water Revenue Bonds; Series A fixed rate bonds,
5.0%, due in annual installments from $3,618 to $3,695 through Electric October 1, 2052. 57,290
Subtotal 235,350
Add: Unamortized bond premium 20,815 Fiscal Year Principal Interest Total Subtotal - Water 256,165 2025 18,005 $ 31,946 $ 49,951
2026 28,763 47,238
Sewer 2027 19,360 27,822 47,182
2028 26,830 47,150
All sewer revenue bonds are covenanted per Resolution No. 2029 25,789 47,119 21860 Sewer Master Resolution that upon the occurrence and 2030-2034 129,835 110,797 240,632 continuation of an event of default. the owners of 25% in 2035-2039 158,065 74,832 232,897 aggregate amount of Bond Obligation may, by written notice to 2040-2044 129,245 33,611 162,856 the City, declare the entire unpaid principal and accreted value 2045-2049 74,590 12,551 87,141 of the bonds due and payable should the City fail to pay its debts 2050-2054 11,455 286 11,741 as they become due or upon the entry of any decree or order of Premium 76,815 76,815 bankruptcy of the City.
$200,030 2015 Sewer Revenue Bonds; Series A fixed rate Total 677,495 $ 373,227$ 1,050,722 bonds, 4% to 5%, due in annual installments from $4,790 to $14,175 through August 1, 2040. 167,490
59 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Water Principal
Pension Obligation Bonds - Business Type Activities: Outstanding Fiscal Year_ Principal Interest 6645 Total In 2018, the 2017 Taxable Pension Obligation Bonds were 2025 8,460 $ 19,124 distributed between Governmental Activities, Business-Type 2026 8,840 10,257 19,097 Activities, and the Successor Agency to properly reflect their 2027 9,245 9,831 19,076 proportional share. Pension Obligation Bonds are not 2028 9,665 9,385 19,050 collateralized by assets, nor do they constitute a debt of the City 2029 10,095 8,920 19,015 of Riverside whereby the City is obligated to levy or pledge any 2030-2034 56,485 37,481 93,966 form of taxation.
2035-2039 69,015 24,003 93,018
2040-2044 24,815 12,364 37,179 outstanding balances in the SucceSsor AgenCy gae distributed 2045-2049 25,315 6,642 31,957
2050-2054 13,415 1,383 14,798 between Governmental Activities and Business-Type Activities.
Premium 20,815 20,815 $31,960 2017 Taxable Pension Obligation Bonds Series A;
1.25% to 3.125%, due in annual installments from $2,910 to Total 256,165 S 130,930 $ 387,095 $3,580 through June 1, 2027. $16,661 relates to Business Type Activities. 5,437
Sewer $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- Fiscal Year Principal Interest 615 Total Type Acoval pension obligation bonds 89,816 2025 12,050 $ 26,601 95,253
2026 13,933 26,603
2027 13,283 26,603
2028 12,600 26,600
2029 11,882 26,602
2030-2034 47,284 133,004
2035-2039 23,300 133,010
2040-2044 1,695 41,130
Premium 33.442
Total 335,067 $ 138,528 $ 473,595
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 Remaining certificates of participation debt service payments will be made from unrestricted revenues of the Business-Type Activities funds. Annual debt reesement to materio re as roll ntertainment Fund. Annual debt service service requirements to maturity are as follows:
Fiscal Year Principal Interest Total Fiscal Year Principal Interest Total 2025 9,366 $ 3,153 $ 12,519 2025 1,421 $ 768 $
2026 9,636 2,932 12,568 2026 719
2027 9,244 2,683 11,927 2027 669
2028 6,182 2,430 2028 617
2029 4,925 2,259 7,184 2029 563
2030-2034 22,613 9,164 31,777 2030-2034 1,934
2035-2039 24,223 4,429 28,652 2035-2039 377
2040-2044 9,064 665 9,729
Total 23,191 $ 5,647 $ 28,838
Total 95,253 $ 27,715$ 122,968
Principal
Principal Lease Revenue Bonds - Business Type Activities: Outstanding Certificates of Participation - Business Type Activities: Outstanding In 2019, the Series 2012A Lease Revenue Refunding Bonds In 2019, the 2008 Riverside Renaissance Certificates of were distributed between Governmental Activities, Business- Participation were distributed between Governmental Activities Type Activities, and the Successor Agency to properly reflect 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 entered into an agreement to convert to a fixed rate of
3.4%. For information on the swap agreement see Note 6. Due in annual installments from $2,900 to $7,200 through March 1, 2037; $38,793 relates to the Civic Entertainment Fund. 23,191 Total certificates of participation 23,191
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 issued the Series 2012A Lease The following are legally required debt service cash reserves. These amounts, Revenue Refunding Bonds in the amount of $41,240. The bonds at a minimum, are held by the City or fiscal agents at June 30, 2024:
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. Governmental Long-Term Obligations:
Interest on the bonds is payable semi-annually on May 1 and Certificates of participation 7,555 November 1 of each year, commencing May 1, 2013. The rate Total EA 7,555 of interest varies from 2% to 5% per annum depending on maturity date. Principal is payable in annual installments The City has a number of debt issuances outstanding that are collateralized by ranging from $1,295 to $2,840 commencing November 1, 2013 the pledging of certain revenues. The amount and term of the remainder of and ending November 1, 2033. In the event of default, the these commitments are indicated in the debt service to maturity tables Trustee may retain the Lease Agreement and hold the City liable presented in the accompanying notes. The purposes for which the proceeds of for all Base Rental Payments on an annual basis. The rental 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 Pape Antistesy not be accelerated. $9,898 relates to Business- 5,688 percentage of the pledged gross revenue (or net of certain expenses where so Total lease revenue bonds 5,688 required by the debt agreement) are indicated in the table below. The debt service coverage ratios also approximate the relationship of debt service to Remaining lease revenue bond debt service payments will be made from pledged revenue for the remainder of the term of the commitment. unrestricted revenues of the Parking Fund. Annual debt service requirements to maturity are as follows:
Annual Amount of Annual Debt Service Coverage
Pledge Revenue Payments (all of Ratio
Description of (net of expenses, debt secured by for FY Fiscal Year Principal Interest Total Pledge Revenue where required this revenue) 06/30/24 2025 466$ 236 $ 702 Electric revenues 116,861 * 50,694 2.31 2026 481 220 701| Water revenues 41,463* 20,914 1.98
2027 502 199 701 Sewer revenues 39,013 26,599 1.47
2028 527 173 700 *Excludes non-cash pension expense
2029 554 146 700
2030-2034 3,158 329 3,487 There are also a number of limitations and restrictions contained in Assessment Bond indentures. The City believes they are in compliance with all significant Total 5,688 $ 1,303 $ 6,991 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 Principal Non-Major Enterprise Funds Activities: Outstanding
Public Parking Fund and Civic Entertainment Fund loan for Fox Fiscal Year Principal Interest Total Entertainment Plaza project secured with collateral of the Fox 2025 3,567 $ 1,200$ 4,767 Theater, Fox Entertainment Plaza, and Parking Garage No. 7. 2026 3,688 1,075 4,763
3.85%, payable in net annual installments of $1,747, beginning 2027 3,811 945 4,756 June 16, 2011 through December 16, 2031. In the event of 2028 3,940 811 4,751 default, the City would continue to remain liable for the payment 2029 4,073 673 4,746 of Rental Payments and damages for breach of the Lease. 11,285 2030-2034 17,446 1,288 18,734 In July 19, 2012, the City secured financing in the amount of Total 36,525 $ 5,992 $ 42,517 $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 Principal BBVA was increased to $44,650. The financing consists of an initial 21-month variable rate interest only period during Direct Borrowings: Contracts Payable Outstanding construction that has a swap transaction layered over the Water stock acquisition rights payable on demand to various remaining 20-year amortization resulting in a "synthetic fixed" water companies 931 rate of 3.24% for 20 of the 22 years. For information on the swapd, precipal and terest are due on end of of antonion, with equal payments each year of approximately $2,850. In the Direct Borrowings: Financed Purchase event of default, the outstanding amount of the site lease The City purchased various equipment through financing arrangements in the payment drawn by the City and not repaid will bear interest at a governmental and proprietary fund types. These activities are recorded for both default rate that will be charged until the default is cured. 25,240 governmental and business-type activities in the government-wide financial Total notes payable 36,525 statements. The assets and related obligations in governmental funds are not recorded in the fund statements. For proprietary funds, the assets and their Remaining notes payable debt service payments will be made from unrestricted related liabilities are reported directly in the fund. Amortization applicable to revenues of the Water Fund, Public Parking Fund, and Civic Entertainment proprietary assets acquired through financing arrangements is included with Fund. Annual debt service requirements to maturity are as follows: 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:
Governmental Business-Type
Fiscal Year Activities Activities Note 11. Risk Management 2025 4,134 $ 375 The City is exposed to various risks of loss related to torts; theft of, damage to, 2026 3,039 375 and destruction of assets; errors and omissions; injuries to employees; and 2027 3,000 natural disasters. Property insurance coverage has a limit of $1,000,000, with a 2028 2,087 deductible of $100. Earthquake and flood insurance coverage has a limit of 2029 1,238 $25,000, with a deductible of 5% (subject to $100 minimum for earthquake and Thereafter 3.715 $100 for flood). Workers' compensation insurance coverage has a limit of Total minimum installments 17,213 $25,000, with a self-insured retention of $3,000. The City has four General Less: Amount representing interest Liability policies: a primary and and three excess General Liability policies. The (rates ranging from 1.2% to 9%) (1,061) (48) primary General Liability policy coverage has a limit of $5,000 and the Excess Total financed purchase 16,152 $ 1,134 General Liability policies provide an additional $20,000 of coverage, with a self- insured retention of $3,000. Both the primary and excess General liability policies cover general and auto liability claims including but not limited to Law Note 10. Compensated Absences Enforcement Liability and Public Officials Errors and Ommissions. There has been one claim settled in the last three fiscal years that exceed the City's self- A liability is recorded for unused vacation and similar compensatory leave insured retention. Internal service funds have been established to account for balances since the employees' entitlement to these balances are attributable to and finance the uninsured risks of loss. The addition of $37.9 million claims and services already rendered and it is probably that virtually all of these balances judgement liability related to the Simpson v. City of Riverside was recorded in will be liquidated by either paid time-off or payments upon termination or fiscal year 2024. More information regarding the Simpson v. City of Riverside can be found in Note 25.
Below is a summary of changes in compensated absences during the fiscal All funds of the City participate in the Risk Management program and make year: 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 Due been incurred but not reported. Interfund premiums are accounted for as quasi- Beginning Ending Within external transactions and are therefore recorded as revenues of the Internal Governmental Activities: Balance a31425 Aditions Reducti098, Balanes One Year Service Funds in the fund financial statements.
Compensated absences
Due
Beginning Ending Within
Business-Type Activities: a 08 Aditions Reductions 31230 On 4235 Compensated absences
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: Below is a summary of changes in landfill capping liability during the fiscal year:
Governmental Activities: Business-Type Activities: Additions Reductions Claims and judgments Landfill capping Balance One Year
Unpaid claims, June 30,2022 78,790 Note 13. Nuclear Decommissioning Liability Incurred claims (including IBNR's) As of June 30, 2024, decommissioning liability balance was $46,082 with a Claim payments and adjustments (27,616)
Unpaid claims, June 30,2023 53,112 portion reflected as current liabilities payable from restricted assets. As a result Incurred claims (including IBNR's) 61,371 of the updated SCE decommissioning cost estimate and the increase in the Claim payments and adjustments (12,866) Electric Utility's estimated share, the decommissioning liability was increased by Unpaid claims, June 30,2024 101,617 $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, Note 12. Landfill Capping 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 State and Federal laws and regulations require the City to place a final cover on as a number of other assumptions and estimates, the Electric Utility has set all active landfills when closed and to perform certain maintenance and aside funds in the designated decommissioning reserve of $2,000 per year monitoring functions at the landfill site for 30 years after closure. To comply with through fiscal year 2024, as approved by the Board of Public Utilities and City these laws and regulations, the City is funding the costs of closure and "final Council. Beginning in fisal year 2025, the Electric Utility will continue to set aside capping" of the Tequesquite landfill located in the City. This area, comprised of funds in the designated decommissioing reserve of $1,000 per year, as approximately 120 acres, operated as a "Class II Sanitary Landfill" until its approved by the Board of Public Utilities and City Council. 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 Below is a summary of changes in decommissioning liability during the fiscal 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 the Public Works Beginning Department are associated with flood control upgrades, remediation of possible Business-Type Activities: Additions Reductions Balance One Year ground water contamination and control of methane gas. All potential costs Decommissioning liability (3,654) $ 46,082 $ 12,244 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 is recovering such costs in rates charged to its customers. The portion of costs to be recovered through future rates is classified as a regulatory asset and will be amortized over future
CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Transmission System allocation is 5.278 percent or approximately 127 MW.
Note 14. Commitments and Contingencies 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.
Intermountain Power Agency
The Electric Utility has a power purchase contract with Intermountain Power On September 11, 2018, the City Council approved "Alternative Repowering" Agency (IPA) for the delivery of electric power. The Electric Utility's share of of the IPP Repower Project, which reduced the design capacity of the future IPA power is equal to 7.6 percent, or approximately 137.1 MW, of the net plant from 1,200 MW to 840 MW. generation output of IPA's 1,800 MW central Utah coal-fueled generating station, known as Intermountain Power Project (IPP). The contract expires in 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 The contract constitutes an obligation of the Electric Utility to make payments expiration date of the current Power Sales Contract on June 15, 2027, due to solely from operating revenues. The power purchase contract requires the numerous uncertainties surrounding the IPP Repower Project.
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 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 On September 29, 2006, Senate Bill (SB) 1368 was enacted into law. The bill the extent the Electric Utility participates in take-or-pay projects developed by requires electric service providers to limit financial investments in power plants SCPPA, it has entered into Power Purchase or Transmission Service to those that adhere to greenhouse gas performance standards as determined Agreements, entitling the Electric Utility to the power output or transmission by the Public Utilities Commission. Pursuant to this legislation, the Electric service, as applicable, and the Electric Utility will be obligated for its Utility is prohibited from renewing its participation in IPP if it remains a coal proportionate share of the project costs whether or not such generation output fueled generating resource. of transmission service is available.
In order to facilitate the continued participation in the IPP, the IPA Board The projects and the Electric Utility's proportionate share of SCPPA's issued the Second Amendatory Power Sales Contract, which amended the obligations, including final maturities and contract expirations are as follows:
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 Percent Final Contract the IPP renewal agreements, including the Second Amendatory Power Sales Project Share 5.40% Entitement Maturity Expiration Contract and the Renewal Power Sales Contract, and authorized participation Palo Verde Nuclear Generating Station 12.3 MW 2017 2030 Southern Transmission System 10.20 % 244.0 MW 2027 2027 in the IPP Repower Project for up to 5 percent in generation capacity or 60 Mead-Phoenix Transmission 4.00 % 18.0 MW 2020 2030 MW. The Second Amendatory Power Sales Contract became effective March Mead-Adelanto Transmission 13.50% 118.0 MW 2020 2030 16, 2016.
On January 5, 2017, the Electric Utility executed the Renewal Power Sales Terms of Take or Pay Commitments 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 As part of the take-or-pay commitments with IPA and SCPPA, the Electric MW designed capacity, which is within the maximum participation level Utility has agreed to pay its share of current and long-term obligations. approved by the City Council. The Electric Utility's corresponding Southern Management intends to pay these 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 expense on the Statements of Revenues, Expenses and Changes in Net commitments. Take-or-pay commitments terminate upon the later of contract Position. expiration or final maturity of outstanding bonds for each project.
The Electric Utility has become a Participating Transmission Owner with the The outstanding debts associated with the take-or-pay obligations have fixed California Independent System Operator (CAISO) and has turned over the interest rates, which range from 4.00 percent to 5.00 percent. The schedule operational control of its transmission entitlements including the Southern below details the amount of principal and interest that is due and payable by Transmission System, Mead-Phoenix, and Mead-Adelanto Transmission the Electric Utility as part of the take-or-pay contract for each project in the Projects. In return, users of California's high voltage transmission grid are fiscal year indicated: charged for, and the Electric Utility receives reimbursement for, transmission revenue requirements, including the costs associated with these three IPA' SCPPA. Total transmission projects.
Debt Service Southern Hoover Uprating Project
Payment Year Intermountain Transmission All
Ending June 30, Power Project System Projects The Electric Utility's initial entitlement in the Hoover project through SCPPA 2025 6,229$ 6,798 $ 13,027 terminated on September 30, 2017. On August 23, 2016, the City Council 2026 6,229 11.636 17.865 approved a 50-year Electric Service Contract (ESC) and an Amended and 2027 9,914 9,999 19,913 Restated Implementation Agreement (IA) with the Western Area Power 2028 7.158 7.158
Administration (Western) Bureau of Reclamation for 30 MW of hydroelectric power. The contract with Western is effective as of October 1, 2017. The ESC Total 22,372$ 35,591 $ 57,963 extended the Electric Utility's 30 MW entitlement in the Hoover project through 1 The Electric Utility's contract with IPA expires in 2027. The Electric Utility will not be responsible for 2067. The IA is a supplemental agreement to the ESC that establishes the proportionate share of the IPA Revenue bonds after the contract expires. administrative, budgetary and project oversight by creating project committees 2 During fiscal year 2023-24, STS issued 3 Renewal Project bonds. The Electric Utility's contract with and a process for decision making in plant operations.
STS through SCPPA expires on 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. Nuclear Insurance In addition to debt service, the Electric Utility's entitlements require the The Price-Anderson Act (the Act) requires that all utilities with nuclear payment of fuel costs, operating and maintenance, administrative and general generating facilities purchase the maximum private primary nuclear liability other miscellaneous costs associated with the generation insurance available ($450 million) and participate in the industry's secondary transmission facilities discussed above. These costs do not have a similar financial protection plan. The secondary financial protection program is the structured payment schedule as debt service varies each year. The costs industry's retrospective assessment plan that uses deferred premium charges incurred for the years ended June 30, 2024 and 2023, are as follows (in from every licensed reactor owner if claims and/or costs resulting from a thousands): 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 nuclear reactor in the United States, with payments * Excludes variable costs under the program limited to $24.7 million per reactor, per year, per event to be These costs are included in production and purchased power or transmission indexed for inflation every five 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 RPS goals of SBX1-2 and SB 350 while maintaining the 33 percent RPS of $1.6 million, limited to payments of $0.2 million per incident, per year. If the target by December 31, 2020, but modifying the RPS percentages to be 44 public liability limit above is insufficient, federal regulations may impose further percent by December 31, 2024, 52 percent by December 31, 2027, 60 revenue-raising measures to pay claims, including a possible additional percent by December 31, 2030, with an end goal of 100 percent of total retail assessment on all licensed reactor operators. sales of electricity in California generated from eligible renewable energy resources and zero-carbon resources by December 31, 2045. It is expected Renewable Portfolio Standards (RPS) that the California Energy Commission will have further guidance and On April 12, 2011, the California Renewable Energy Resources Act (SBX1-2) enforcement procedures for publicly owned utilities to meet these increased was signed into law by the Governor, which officially created the first set of mandates. The Electric Utility will continue to monitor the outcome and tiered RPS targets of 20% by 2013, 25% by 2016 and 33% by 2020. SBX1-2 impacts of any upcoming workshops and regulations in meeting the new specified that publicly owned utilities must meet these defined targets via requirements. 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 In an effort to increase the share of renewables in the Electric Utility's power sales during the 3-year period from 2011-2013; CP2 - no less than 25 portfolio, the Electric Utility entered into power purchase agreements (PPA) percent of retail sales by December 31, 2016; and CP3 - no less than 33 and power sales agreements (PSA) with various entities described below in percent of retail sales by December 31, 2020. The Riverside Public Utilities general on a "take-and-pay" basis. The contracts in the following tables were Board and City Council approved the RPS Enforcement Program required by executed as part of compliance with RPS mandates.
SBX1-2 on November 18, 2011 and December 13, 2011, respectively, and Long-term renewable PPAs and PSAs in operation (dollars in thousands):
further approved the Electric Utility's RPS Procurement Plan (a.k.a.
Procurement Policy) implementing the new RPS mandates on May 3, 2013 Estimated
and May 14, 2013, respectively. The Electric Utility met the procurement Annual requirements of SBX1-2 for CP1 (2011-2013), CP2 (2014-2016), and CP3 Maximum Contract Cost for Supplier Type Contract Expiration 2024
(2017-2020). The additional future mandates are expected to be met with Wintec 1.3 MW 02/19/2024 S 151 resource procurement actions as outlined in the Electric Utility's RPS WKN Wagner Wind 6.0 MW 12/22/2032 1,375 Procurement Plan. For calendar year 2023, renewable resources provided 46 Terraform Power - AP North Lake Photovoltaic 20.0 MW 08/11/2040 4,992 Onward Energy - Columbia I Photovoltaic 11.1 MW 12/22/2034 2,320 percent of retail sales requirements. 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 On October 7, 2015, the Governor signed into law SB 350 increasing the AES - Antelope Big Sky Ranch Photovoltaic 10.0 MW 12/31/2041 1,752 RPS mandate from 33 percent by 2020 to 50 percent by December 31, 2030. 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 In addition, SB 350 required that an updated RPS Procurement Policy be Roseburg Forest Products Biomass N/A 02/16/2026 179 approved and adopted before January 1, 2019 and be incorporated into the 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 Electric Utility's Integrated Resource Plan. An updated 2018 Renewable Tota B 239.7 MW 87.667
Energy Procurement Policy was adopted by the Board and City Council on September 10, 2018 and October 9, 2018, respectively. The Electric Utility 1 All contracts are contingent on energy delivered from specific related expects to be able to substantially meet the increased RPS mandates generating facilities. The Electric Utility has no commitment to pay any imposed by SB 350 with the actions described in the updated procurement amounts except for energy delivered on a monthly basis from these facilities policy and the portfolio of renewable resources outlined below. except for any economic curtailments directed by the Electric Utility.
On September 10, 2018, the 100 Percent Clean Energy Act of 2018 (SB 100) This supply is only available to satisfy SB 859 requirements. was signed into law by the California Governor. This bill further increases the 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)
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 Maximum Expected $29,845 as of June 30, 2024.
Supplier Type Contract
SunZia Wind Power Co. Wind 125.0 MW 2 35912026 In Years The Electric Utility also purchases GHG allowances which can be used in future Atlantica - Coso Geothermal Geothermal 20.0- MW • 01/01/2027 periods for GHG compliance regulations. The balance of purchased GHG 145.0- allowances was $1,464 as of June 30, 2024 and is recorded as inventory in the Total MW
Statement of Net Position.
1 All contracts are contingent on energy delivered from specific related generating facilities. The Electric Utility has no commitment to pay any Low Carbon Fuel Standard Program amounts except for energy delivered on a monthly basis from these facilities Assembly Bill (AB) 32, enacted in 2006, mandated that the California Air except for any economic curtailments directed by the Electric Utility.
Resources Board (CARB) develop regulations for the reduction of greenhouse gas (GHG) emissions to the 1990 levels by the year 2020. Subsequently, Senate Bill (SB 32), enacted in 2016, extended the requirements of AB 32 and Cap-and-Trade Program 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 Assembly Bill (AB) 32, enacted in 2006, mandated that the California Air Carbon Fuel Standard (LCFS) Program is a key component of the market Resources Board (CARB) develop regulations for the reduction of greenhouse mechanisms authorized by these bills to achieve the State's GHG emissions gas (GHG) emissions to the 1990 levels by the year 2020. Subsequently, reduction goals. The LCFS regulation was initially approved by CARB in 2009.
Senate Bill (SB 32), enacted in 2016, extended the requirements of AB 32 and The program then underwent some litigation in the State of California and the codified that it was the State's goal to reduce GHG emissions to 40% below regulation was re-adopted in 2015 with modifications and went into effect in 1990 levels by the year 2020. AB 398 was then enacted in 2017 clarifying that it 2016. LCFS seeks to reduce the carbon intensity (CI) of fuels used for was the State legislature's intent to continue the Cap-and-Trade Program and transportation by establishing an annual Cl target. Fuels that have a Cl greater regulations until 2030. In January 2013, emission compliance obligations than the target have a compliance obligation and are required to turn in LCFS developed by CARB began under the Cap-and-Trade Program (Program). This credits; fuels with a Cl lower than the target may generate credits.
Program requires electric utilities to have GHG allowances on an annual basis to offset GHG emissions associated with generating electricity. To ease the Electricity is considered a fuel subject to the program when it is used as a transition and mitigate the rate impacts to retail customers, CARB will allocate transportation fuel in electric vehicles. However, because the Cl of electricity is certain amounts of GHG allowances at no cost to electrical distribution utilities. substantially lower than the annual Cl targets under the program, electricity is a The Electric Utility's free allocation of GHG allowances is expected to be fuel that generates LCFS credits and participation in the Program is voluntary. sufficient to meet the Electric Utility's direct GHG compliance obligations. The City opted into the LCFS program in March 2018 and began generating LCFS credits for the first quarter of 2018. These credits are associated with two At times, the Electric Utility may have allocated allowances in excess of its sources - unmetered electricity used to charge residents' electric vehicles at compliance obligations that can be sold into the CARB quarterly auctions. In their homes (residential base credits) and from electric forklifts charging at fiscal year ended June 30, 2024, the Electric Utility received $15,683, in private businesses (forklift credits). CARB calculates the credits that the Electric proceeds related to the sale of the GHG allowances which are included on the Utility receives, and the Electric Utility submits reports quarterly to receive 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 The LCFS regulation was amended in 2018 and required that electric utilities requirements related to the use of the GHG proceeds. The available funds are 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 joined the program in May 2020. To fund the program, electric utilities are required to Followinges coyed Were evered by he bene e23 measurement date, the contribute proceeds received from the sales of residential base credits beginning with the credits the Electric Utility received in Q4 2019 (generated from electricity used for transportation in Q2 2019). Residential base credits the Electric Utility received prior to that time are not subject to the contribution Inactive plan members or beneficiaries currently receiving benefits 182 requirements. Additionally, a "start-up" contribution from proceeds is required to Inactive plan members entitled to but not yet receiving benefits be submitted by January 31, 2021. After the initial deposit of funds in November Active plan members 2,113 2020, deposits to the CFR program are required by March 31 annually.
Total 2,295
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 Significant Actuarial Assumptions Used in Calculating the Total OPEB Liability Revenues, Expenses and Changes in Net Position as other operating revenue. The total OPEB liability was determined by an actuarial valuation using the The Electric Utility has established a restricted Regulatory Requirement reserve to comply with regulatory restrictions and governing requirements related to the following actuarial assumptions:
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 Valuation Date: June 30, 2023 future electric vehicle owners. Total expenses for qualifying programs as of Measurement Date: June 30, 2023 June 30, 2024 was $356. The balance in the Regulatory Requirement reserve as of June 30, 2024 was $4,416. Funding Policy: Pay-as-you-go for implicit rate subsidy
3.65% per year net of expenses. This is based on the Bond Note 15. Other Post-Employment Benefits (OPEB) Discount Rate: Buyer 20 Bond Index Plan description - The City's defined benefit OPEB plan, Retiree Health Plan, Inflation Rate: 2.5% per annum provides continuation of medical (including prescription drugs) and dental coverage benefits to retirees and surviving spouses in the form of an implied Salary Inflation: 2.75% per annum rate subsidy. The Retiree Health Benefits plan is a single employer defined Since benefits do not depend on salary (as they do for benefit OPEB plan administered by the City. No assets are accumulated in a pensions), this assumption is only used to determine the trust that meets the criteria in paragraph 4 of GASB Statement No. 75. accrual pattern of the Actuarial Present Value of Projected Salary Increases: Benefit Payments
Benefits provided - Eligibility for continuation of coverage requires retirement Mortality: Based on the CaPERS 2021 Experience Study from the City and CaPERS 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 Changes in Assumption 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- From measurement periods ended June 30, 2022 to 2023, the discount rate as-you-go amount necessary to provide current benefit to eligible retirees and changed from 3.54% to 3.65% and mortality changed based on the CaPERS beneficiaries. Retiree and spousal coverage terminate when the retirees 2017 to CaPERS 2021 experience study; respectively. become covered under another employer health plan, or when the retiree reaches Medicare eligibility age, which is currently age 65. However, retiree benefit continues to the surviving spouse if the retiree elects the CaPERS survivor annuity.
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. 2024
The following presents the total net OPEB liability, calculating using the Beginning total OPE liability 45,471 healthcare cost trend rate of 4.0%, as well as what the total OPEB liability would Service cost 2,576 be if it were calculated using a healthcare cost trend rate that is 1-percentage- Interest 1,622 point lower (3.0%) or 1-percentage-point higher (5.0%) than the current rate: Experience (Gains)/Losses 1,173 Changes of assumptions (274)
Benefit of implied subsidy payments (1,838)
Current Healthcare Net changes 3,259
Ending total OPEB liability 48,730
1% Decrease Cost Trend Rate 1% Increase
Deferred outflows/inflows of resources
At June 30, 2024, the City reported deferred outflows of resources and deferred Total OPE liability 42,902 5 48,730 $ 55,653 inflows of resources related to OPEB from the following sources:
Sensitivity analysis of total OPEB liability for discount rates Deferred Outflows Deferred Inflows of
The following presents the total OPEB liability, calculating using the discount of Resources Resources rate of 3.65%, as well as what the total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.65%) or 1- measurement date 1,602 $ percentage-point higher (4.65%) than the current rate: Differences between expected and actual experience 1,206 2,959
Current Changes of assumptions 5,479 7,730
1% Decrease Discount Rate 1% Increase 8,287 $
(2.65%) (3.65%) Total 10,689
(4.65%)
Total OPEB liability 53,2215 48,730 5 44,629
An amount of $1,602 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a Change in total OPEB liability 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 For fiscal year 2024, the City recognized total OPEB expense of $4,139. The recognized in OPEB expense as follows:
liability for the governmental activities is primarily liquidated from the General Fund. The following table shows the change in the total OPEB liability for the year ended June 30, 2024: Deferred
Outflows/(Inflows)
Year Ending June 30, of Resources
2025 (60)
2026 148
2027 187
2028 187
2029 (907)
Thereafter (3,559)
Total ItA (4,004)
71 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
income. Effective March 15, 2024, RPOA Supervisory employees Note 16. City Employees Retirement Plan increased by an additional 0.5% for a total requirement of 5.5%.
Effective April 12, 2024, RPAA employees increased by an additional (A) Plan Description - The City of Riverside contributes to the California Public 0.5% for a total requirement of 7%.
Employees Retirement System (CalPERS), an agent multiple employer public employee defined benefit pension plan. CaPERS provides retirement and • 2nd Tier (RPOA, RPOA Supervisory & RPAA Management) - The disability benefits, annual cost-of-living adjustments, and death benefits to plan retirement formula is 3% at age 50 for RPOA and RPAA Management members and beneficiaries. CaPERS acts as a common investment and employees hired on or after February 17, 2012 and RPOA Supervisory administrative agent for participating public entities within the State of California. employees hired on or after June 8, 2012 pay their share (9%) of Benefit provisions and all other requirements are established by state statute and City ordinance. A copy of CaPERS' annual financial report may be obtained contributions. online at www.calpers.ca.gov. 3rd Tier (RPOA, RPOA Supervisory & RPAA) - The retirement formula (B) Funding Policy - The City has contributed at the actuarially determined rate is 2.7% at age 57 for new members hired on or after January 1, 2013 provided by CalPERS' actuaries. Participants are required to contribute various and the employee must pay the normal cost to CaPERS which is percentages for miscellaneous employees and for safety employees of their currently at 13.50%. Classic members (CalPERS members prior to annual covered salary based on their Tier. The City has a multiple tier 12/31/12) hired on or after January 1, 2013 may be placed in a retirement plan with benefits varying by plan. The City pays the employees' different tier. contributions to CaPERS for both miscellaneous and safety employees hired on or before specific dates as follows: Safety (Fire):
Safety (Police): 1st Tier - The retirement formula is 3% at age 50 for employees hired before June 11, 2011. Effective January 1, 2019, employees were • 1st Tier (RPOA, RPOA Supervisory & RPAA Management) - The required to pay a portion of their pensionable income. This portion is a retirement formula is 3% at age 50 for employees hired on or before three-year increase of 2.5% (2019), 2.5% (2020) and 3% (2021).
February 16, 2012 (RPOA, RPAA Management) or June 8, 2012 However, the 2021 increase was only 2% with the remaining 1% (RPOA Supervisory). Effective January 1, 2018, employees were increase in 2022; therefore, in 2022, employees are contributing 8% of required to pay 1.5% of their pensionable income, with the City their pensionable income. Effective July 7, 2023, there was a 2% contributing the other 7.5%. Only in the event that annual wages increase resulting in employees contributing 10% of their pensionable increase in excess of 2%, will the following apply: Effective January 1, income. 2019, employees were required to pay an additional portion of their pensionable income. This portion is a three-year increase of 1.5% 2nd Tier - The retirement formula is 3% at age 55 and new employees (2019), 1.5% (2020) and 1.5% (2021). However, the 2021 increase did hired on or after December 8, 2011 pay their share (9%) of not take affect. In 2023, RPAA Management had an additional 1% contributions. Effective July 7, 2023, there was a 1% increase resulting increase and employees are contributing 5.5% pensionable income. in employees contributing 10% of their pensionable income.
RPOA and RPOA Supervisory remained at 4.5% contribution of • 3rd Tier - The retirement formula is 2.7% at age 57 for new members pensionable income. Effective July 7, 2023, RPOA and RPOA hired on or after January 1, 2013. A new member, as defined by the Supervisory employees had a 0.5% increase and RPAA increased by Public Employees' Pension Reform Act (PEPRA), hired on or after 1%; resulting in RPOA and RPOA Supervisory employees contributing January 1, 2013 pay 50% of the normal cost to CaPERS which is 5% and RPAA employees contributing 6.5% of their pensionable 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:
• Miscellaneous employees, IBEW, and IBEW Supervisory hired on 1st Tier - or after October 19, 2011 pay their share (8%) of contributions. • The retirement formula is 2.7% at age 55 for employees hired on or • SEIU and SEIU Refuse employees hired on or after June 7, 2011 before October 18, 2011. Effective January 1, 2018 for pay their share (8%) of contributions. unrepresented employees (Sr. Management, Management,
Professional, Para-professional, Supervisory, Confidential, and 3rd Tier - The retirement formula is 2% at age 62 for new members Executive units, excluding the Chief of Police and the Fire Chief, hired on or after January 1, 2013 and the employee must pay the the employees were required to pay 2% of their pensionable normal cost to CaPERS which is currently at 8.25%. Classic members income, with the City contributing the other 6%. Effective January 1, (CaPERS members prior to 12/31/12) hired on or after January 1, 2019, employees were required to pay an additional portion of their 2013 may be placed in a different tier. pensionable income. This portion is a three-year increase of 2% The contribution requirements of plan members and the City are established (2019), 2% (2020) and 2% (2021). As of 2021, employees were and may be amended by CaPERS. contributing the entire 8% of their pensionable income. (C) Benefits Provided - CaPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, • The retirement formula is 2.7% at age 55 for SEIU and SEIU who must be public employees and beneficiaries. Benefits are based on years Refuse employees hired before June 7, 2011. Currently, employees of credited service, equal to one year of full-time employment. Members with are required to pay 7% of their pensionable income with the City five years of total service are eligible to retire at age 50 with statutorily reduced contributing the other 1%. Effective January 1, 2019, employees benefits. All members are eligible for non-duty disability benefits after five years were required to pay an additional portion of their pensionable of service. The death benefit is one of the following: the Basic Death Benefit, the income. This portion is a two-year increase of 1% (2019) and 1% 1959 Survivor Benefit Level III, or the Optional Settlement 2W Death Benefit. (2020). As of 2020, employees are contributing the entire 8% of The cost of living adjustments for each plan are applied as specified by the their pensionable income. Public Employees' Retirement Law. (D) Employees Covered - At June 30, 2023, the following employees were • The retirement formula is 2.7% at age 55 for IBEW and IBEW covered by the benefit terms of each Plan: Inactive employees or beneficiaries Supervisory employees hired on or before October 18, 2011. currently receiving benefits are 2,420 and 885 for the Miscellaneous and Safety Effective November 1, 2017 employees were required to pay 2% of Plans, respectively. Inactive employees entitled to but not yet receiving benefits their total pensionable income with the City paying the remaining are 1,537 and 197 for Miscellaneous and Safety Plans, respectively. Active 6%. Effective each November 1st, employees will be required to pay employees were 1,652 and 562 for Miscellaneous and Safety Plans, respectively.
an additional portion of their pensionable income. This portion is a three-year increase of 2% (2018), 2% (2019) and 2% (2020). As of (E) Contributions - Section 20814(c) of the California Public Employees' November 2020, employees are contributing the entire 8% of their Retirement Law requires that the employer contribution rates for all public pensionable income. employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding • 2nd Tier - The retirement formula is 2.7% at age 55, and: contributions for both Plans are determined annually on an actuarial basis as of June 30 by CaPERS. 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, pension plan investments was determined using a building-block method in with an additional amount to finance any unfunded accrued liability. The City is which expected future real rates of return (expected returns, net of pension plan required to contribute the difference between the actuarially determined rate investment expense and inflation) are developed for each major asset class. and the contribution rate of employees.
In determining the long-term expected rate of return, CaPERS took into (F) Net Pension Liability - The City's net pension liability for each Plan is account both short-term and long-term market return expectations. Using measured as the total pension liability, less the pension plan's fiduciary net historical returns of all of the funds' asset classes, expected compound position. The net pension liability of each of the Plans is measured as of June (geometric) returns were calculated over the next 20 years using a building- 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward block approach. The expected rate of return was then adjusted to account for to June 30, 2023 using standard update procedures. The liability for the assumed administrative expenses of 10 Basis points. The expected real rates governmental activities is primarily liquidated from the General Fund. of return by asset class are as follows:
A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the Assumed following actuarial assumptions: Asset
Asset Class' Allocation Real Return 1,2
Global Equity - Cap-weighted 30.00% 4.54%
Miscellaneous Safety
Valuation Date Global Equity - Non-Cap-weighted 12.00% 3.84% June 30, 2022 June 30, 2022 Private Equity 13.00% 7.28% Measurement Date June 30.2023 June 30, 2023 5.00% 0.27% Actuarial Cost Method Treasury
Entry-Age Normal Cost Method Mortgage-backed Securities 5.00% 0.50% Actuarial Assumptions Investment Grade Corporates 10.00% 1.56% Discount Rate 6.90% 6.90% High Yield 5.00% 2.27%
Inflation 2.30% 2.30% Emerging Market Debt 5.00% 2.48%
Salary Increase Varies by Entry Age and Service Private Debt 5.00% 3.57% Real Assets 15.00% 3.21%
Mortality Rate Table' Derived using CALPERS' membership data for all Leverage (0,59)% funds 1 An expected inflation of 2.30% used for this period Post Retirement Benefit The lesser of contract COLA or 2.30% until 2 Figures are based on the 2021 Asset Liability Management Study Increase Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter 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 1 The mortality table used was developed based on CalPERS-specific data. assumed that contributions from plan members will be made at the current The probabilities of mortality are based on the 2021 CaPERS Experience member contribution rates and that contributions from employers will be made Study and Review of Actuarial Assumptions. Mortality rates incorporate full at statutorily required rates, actuarially determined. Based on those generational mortality improvement using 80% of Scale MP-2020 published by assumptions, the Plan's fiduciary net position was projected to be available to the Society of Actuaries. For more details on this table, please refer to the 2021 make all projected future benefit payments of current plan members. Therefore, experience study report from November 2021 that can be found on the the long-term expected rate of return on plan investments was applied to all CaPERS website. periods of projected benefit payments to determine the total pension liability.
Long-term Expected Rate of Return - The long-term expected rate of return on 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. Safety Increase (Decrease) Changes in Assumptions - There were no assumption changes in 2023.
Total Plan
(G) Changes in the Net Pension Liability Pension Fiduciary Net Pension Liability Net Position Liability/(Asset)
The changes in the Net Pension Liability for each Plan follows: Balance at June 30, 2022 § 1,340,754 $ 1,175,357 Changes recognized for the
Miscellaneous Increase (Decrease) measurement period:
Service cost 24,896 24,896
Interest on total pension liability 91,186 91,186
Changes of Benefit Terms 454
Pension Fiduciary Net Pension Differences between expected and actual 5 110041 S 1P0s, 102 Liability/set, Liability experience 2,104 2,104 Balance at June 30, 2022 Net Plan to Plan Resource Movement (11) Changes recognized for the Contributions - employer 26,238 (26,238) measurement period: Contributions - employees 10,702 (10,702) Service cost 27,778 27,778 Net investment income 71,711 (71,711) Interest on total pension liability 109,814 109,814 Benefit payments, including Changes of Benefit Terms 1,795 1,795 refunds of employee Differences between expected and actual contributions (68,451) (68,451) experience 12,692 12,692 Administrative expenses (864) 864 Net Plan to Plan Resource Movement (11)
Contributions - employer 29,150 (29,150)
Contributions - employees 11,238 (11,238) Net changes 50,189 39,325 10,864 Net investment income 89,464 (89,464)
Benefit payments, including Balance at June 30,2023 $ 1,390,943 $ 1,214,682 $ 176,261 refunds of employee
contributions (84,559) (84,559) Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The Administrative expenses (1,084). 1,084 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 Net changes 67,520 44,220 23,300 liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Balance at June 30,2023 $ 1,672,933 $ 1,517,932 $ 155,001 Miscellaneous
Current
Discount Rate Discount Rate Discount Rate
-1% (5.90%) (6.90%) 155,001 3*1% (7.90%)
Plan's net pension liability/(asset) 380.398 $ (30,278) 75 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Safety Deferred Deferred
Outflows Inflows
Current Miscellaneous of Resources of Resources
Discount Rate Discount Rate Discount Rate Pension contributions subsequent to measurement -1% (5.90%) | (6.90%) +1% (7.90%) date, net 21,237$
Plan's net pension liability/(asset) 365,129 176,261 $ Changes of assumptions 7,382 Differences between expected and actual
experience 8,780 (6,632)
Net differences between projected and actual
Pension Plan Fiduciary Net Position - Detailed information about each pension earnings on plan investments 71,309 plan's fiduciary net position is available in the separately issued CaPERS Total 108.708$ (6,632) 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 Deferred Deferred Plans as follows: Outflows Inflows
Deferred Deferred Safety of Resources of Resources
Net Pension Outflows of Inflows of Pension Pension contributions subsequent to measurement Liability Resources Resources Expense date, net 26,564 $ Governmental activities: Changes of assumptions 23,532
Miscellaneous Plan 79,379 $ 55,671 $ 3,396 $ 23,969
Safety Plan 176.261 111,166. 1,875 53.094 Differences between expected and actual Total Governmental experience 4,092 (1,875)
Business-type activities: 255,640 166,837 5,271 77,063 Net differences between projected and actual earnings on plan investments 56,978
Miscellaneous Plan 75.622 53,037 3,236 25,068 Total 111,166 $ (1,875) Total 331,262 219,874 $ 805075 102,131
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 (H) Pension Expenses and Deferred Outflows/Inflows of Resources Related to net pension liability in the subsequent fiscal period rather than in the current Pensions. fiscal period.
For the year ended June 30, 2024, the City recognized pension expense/(credit) Amortization of Deferred Outflows and Deferred Inflows of Resources - Under of $49,037 to Miscellaneous and $53,094 to Safety for a total of $102, 131. At GASB 68, gains and losses related to changes in total pension liability and June 30, 2024, the City reported deferred outflows of resources and deferred fiduciary net position are recognized in pension expense systematically over inflows of resources related to pensions from the following sources: time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
76 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Net difference between Principal
projected and actual earnings Lease Revenue Bonds - Successor Agency: Outstanding on pension plan investments 5 year straight-line amortization $26,255 State of California Department of General Services Straight-line amortization over the expected average remaining Project, 2003 Lease Revenue Refunding Bonds, Series A are service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the secured by lease payments made by the State of Califronia All other amounts measurement period Department of General Services for the California Tower office The remaining amounts reported as deferred outflows of resources and building; 2% to 5% due in annual installments from $545 to deferred (inflows) of resources related to pensions will be recognized as $2,230 through October 1, 2024. The bonds are subject to pension expense as follows: 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 Fiscal Year Miscellaneous Safety of the Lease. 2,230
2025 22,682
2026 17876 16,037 $4,810 State of California Department of General Services 2027 42,256 Project, 2003 Lease Revenue Refunding Bonds, Series B are 2028 2,113 1,752 secured by lease payments made by the State of California Department of General Services for the California Tower office Total 80,839 82,727 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 Events Subsequent to Actuarial Valuation Date - There were no subsequent term bonds at 4.340% due October 1, 2014 and $2,770 term events that would materially affect the results presented in this disclosure. bondsat 180% due Trust Agree Theone are sure o
Note 17. Other Long-Term Obligations 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 Changes in Long-Term Obligations of the Lease. 350
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): Activities, and the Successor Agency to properly reflect their proportional share.
Beginning Ending Due Within
ano Additions Reductions
Tax alcation bonds 159,529 (11,815) 147,714 10,690
Direct borrowings:
Notes payable
170,350 S • $ 1142) 13928 8 1173
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 Principal were issued to refinance the 2003 Certificates of Participation. Tax Allocation Bonds - Successor Agency: Outstanding Interest on the bonds is payable semi-annually on May 1 and November 1 of each year, commencing May 1, 2013. The rate $62,980 Subordinate Tax Allocation Refunding Bonds (2014 of interest varies from 2% to 5% per annum depending on Series A and B). The bonds were issued to refund certain maturity date. Principal is payable in annual installments ranging obligations of the former Redevelopment Agency of the City of from $1,295 to $2,840 commencing November 1, 2013 and Riverside. Interest is due semi-annually on March 1 and ending November 1, 2033. In the event of default, the Trustee September 1, commencing March 1, 2015. Principal is due in may retain the Lease Agreement and hold the City liable for all 2034. The rate of sterest varies 507 5 4% to g% perentum s Base Rental Payments on an annual basis. The rental payments 23,620 may not be accelerated. $2,900 relates to the Successor 1,666 $114,815 2018 Tax Allocation Refunding Bonds (Series A and Subtotal B). The bonds were issued to refund the 2007 Riverside Public 4,246
Add: Unamortized bond premium 50 Financing Authority Redevelopment Agency Tax Allocation Bonds (Series A, B, C and D). Principal is payable in annual Total lease revenue bonds 4,296 installments from $140 to $9,180 through September 1, 2037.
The rate of interest varies from 3. 125% to 5% per annum. The Remaining debt service will be paid by the Successor Agency Trust from future refunding transaction resulted in a total net present value property tax revenues. Annual debt service requirements to maturity are as savings of $20,000. 109,185 follows: Subtotal 132,805
Add: Unamortized bond premium 14 909
Fiscal Year Principal Interest Total Total tax allocation bonds 147,714 2025 2,716 $ 135 $ 2,851 The Successor Agency Tax Allocation Bonds are secured by tax revenues 2026 141 64 205 deposited in the Redevelopment Property Tax Trust Fund for the Agency 2027 147 58 205 established and held by the County of Riverside Auditor-Controller pursuant to 2028 154 51 205 Section 34813(a)(2) of the Dissolution Act. Upon event of default, the principal 2029 162 43 205 due on the Bonds is subject to acceleration. 2030-2034 926 930
Premium 50 50
Total 4,296 $ 355 $ 4,651
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 Remaining debt service will be paid by the Successor Agency Trust Fund from future property tax revenues. Annual debt service requirements to maturity are future property tax revenues. Annual debt service requirements to maturity are as follows: as follows:
Fiscal Year Principal Interest Total
2025 10,690$ 5,928 $ 16,618 Fiscal Year
2026 10,795 5,392 16,187 Principal Interest Total
2027 2025 42 $ 300 $ 342
11,135 4,844 15,979
2028 10,230 4,317 14,547 2026 46 295 341
2029 10,785 3,799 14,584 2027 51 291 342
2030-2034 45,705 11,835 57,540 2028 57 285 342
2035-2039 33,465 2,531 35,996 2029 63 279 342
Premium 14,909 14,909 2030-2034 427 1,283 1,710
Total 147,714 $ 38,646 5 186,360 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
Principal Assessment Districts and Community Facilities Districts Bonds (Not Notes Payable - Successor Agency: Outstanding obligations of the City:
These notes payable have been issued to promote development As of June 30, 2024, the City has several series of Assessment District and and expansion within the City's redevelopment areas. Community Facility District Bonds outstanding in the amount of $40,685. Bonds Pepsi Cola Bottling Company of Los Angeles, 10.5%, payable in were issued for improvements in certain districts and are long-term obligations net annual installments of $341, subject to recording of of the property owners. The City's only limited commitment on these obligations completion. Interest accrues on the outstanding note balance is that the City Treasurer act as an agent for the property owners in collecting upon issuance of the Certificate of Completion. Principal and the assessments, forwarding the collections to bondholders and initiating interest on the note are payable solely from Project Property Tax foreclosure proceedings, if applicable. Since the debt does not constitute an Increment. Payments start upon the time sufficient increment is obligation of the City, it is not reflected as a long-term obligation of the City and generated in one year to pay the annual principal and interest on is not reflected in the government-wide financial statements. the note. Upon 25 years from the first anniversary date of the certificate of completion, all unpaid principal together with any Note 18. Interfund Assets, Liabilities and Transfers accrued interest will be forgiven. 2,987 Due From/To Other Funds: These balances resulted from expenditures being Smith's Food & Drug Centers Inc., 6% payable in variable incurred prior to receipt of the related revenue source. installments, subject to payment of annual Community Facilities District assessment. The note is secured under a developer The following table shows amounts receivable/payable between funds within the agreement. 931 City at June 30, 2024:
Total notes payable 3,918
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 Transfers in Funds Transfers Out Funds → Amount 147
General Fund Non-Major Governmental Funds 1,549 General Fund Capital Outlay Fund Non-Major Enterprise Funds 233 Non-Major Governmental Funds 1,409 Electric Fund 45,289
Internal Service Funds 1,443 Water Fund
8,108
Total 3,225 Non-Major Enterprise Funds 2,112
57,065
Advances To/From Other Funds: These balances consist of advances used to fund capital projects in advance of related financing/assessments and for Capital Outlay Fund General Fund 33,050 other long-term borrowina purposes. General Debt Service Fund General Fund 28,850
Tuna livin the Cly at une 30,20 advanced from funds within the City to other Capital Outlay Fund 2,995 Non-Major Governmental Funds 1,957
33,802
Non-Major Governmental
Funds General Fund 2,172
Receivable Funds Payable Funds Amount Non-Major Governmental Funds 41 Sewer General Debt Service Fund 820 2,213
General Fund Non-Major Enterprise Funds 2,000 Non-Major Enterprise Total 2,820 Funds General Fund 11,955
Total 138,085
In addition, the following advances to the former Redevelopment Agency are Note 19. Deficit Net Position accounted for in the Private-Purpose Trust Fund of the Successor Agency:
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).
Receivable Funds Amount This City adopted a Self-Insurance Reserve Policy that addresses the on-going Electric 1,555 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 Transfers In/Out: Transfers are primarily used to (1) move revenues to the several years. However, the increases continue to be offset by unusually large fund that statute or budget requires to expend them, and (2) move receipts losses incurred during the year combined with an adjustment for the increase in see more on the ear one restricted to debt service from the funds collecting the receipts to the debt the amount estimated for claims and judgments. Management believes that service fund as debt service payments become due.
there are sufficient funds on hand to cover current payment obligations and The velreing lesh samounts transferred to/from funds within the City for 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 Trust 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 cumulative tax rebate of $4,500; or 2) fifteen years in fiscal 2027-28.
County Auditor-Controller.
Incremental Sales Tax Revenue can be generated from sales, over the fiscal Note 20. Contruction Commitments 2011-12 base period, reported to the State Board of Equalization at the business site and from third party vendor transactions occurring using the As of June 30, 2024, the Electric Utility had commitments (encumbrances) of business site as the point of sale. Incremental Property Tax Revenue is approximately $76,999 with respect to ongoing capital projects, of which generated from the increase in County assessed valuation over the 2012-13 $69,136 is expected to be funded by bonds, $7,819 to be funded by unrestricted base period values, for the parcels designated in the agreement. For parcels cash reserves, and $44 to be funded by restricted cash reserves. 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 Note 21. Forward Purchase/Sale Agreements $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 In order to meet seasonal energy needs and summer peaking requirements, the acquired in 2023-24. The business is due 100% of the incremental Property tax Electric Utility contracts on a monthly and/or quarterly basis for the purchase or revenue due to the City from the project area tax rate. It is calculated as 11% of sale of natural gas, electricity and/or capacity products on a one to four year the value determined from taking 1% of the difference of current net assessed forward horizon. As of June 30, 2024, the Electric Utility has net natural gas and valuation over the adjusted base valuation. The cumulative rebate payment as electricity commitments for fiscal year 2025 and thereafter, of approximately of June 30, 2024 is $2,015. $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 25. Subsequent Events Note 22. Economic Contingency Parada Il Litigation
A portion of fund balance has been committed within the General Fund and On September 12, 2018, a petition for writ of mandate entitled Parada v. City of Measure Z fund for future economic contingencies. The amount that has been Riverside ("Parada I/") was filed against the City seeking to invalidate, rescind set aside for the General Fund is $72,246 which equals to approximately 20% of and void, under Proposition 26, the Electric System's rates approved by City the 2024-2025 General Fund adopted expenditure budget. For the General Council on May 22, 2018, which took effect on January 1, 2019, by challenging Fund Measure Z Fund, $5,000 has been set aside. 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 Note 23. Litigation divided the case into two stages for hearings: a liability phase and a damages The City is a defendant in various lawsuits arising in the normal course of phase. On April 17, 2020, the Court in the liability phase of Parada Il litigation business. Present lawsuits and other claims against the City are incidental to entered a tentative ruling finding the City's electric rates attributable to the the ordinary course of operations and are largely covered by the City's self- General Fund transfer violate Article XIII C of the California Constitution. The insurance program. In the opinion of management and the City Attorney, such formal hearing on the matter took place on June 5, 2020, but the Court asked claims and litigation will not have a materially adverse effect upon the financial for further briefing on the issue of whether or not the plaintiffs failed to exhaust position or results of operation of the City. their administrative remedies. On October 9, 2020, the Court confirmed its tentative ruling and entered an order denying the City's request for interlocutory Note 24. Tax Abatements remand. The court had set a hearing for February 24, 2021, to set a briefing schedule for determining appropriate remedies /damages in the case. The City In November 2012, the City entered into a tax sharing agreement with a local expected the second phase of the trial relating to plaintiffs' available remedies to business to incentivize an expansion of their facility. Assistance is provided in occur in the second quarter of 2021. 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 The ruling by the Court in Parada II was anticipated to likely have 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 approximately $40 million annually (up to the maximum amount of 11.5% of The election was held on November 2, 2021, and the Measure C was approved Electric Fund revenues) from the Electric Fund. Based on the Court's order in by voters, with 54.52% voting in favor. the liability phase of the trial, approximately $19-32 million of the General Fund On April 26, 2022 the RAIT lawsuit trial court determined that the November transfer is potentially attributable to rate payer revenue that was not approved 2021 election was a "special election" rather than a "general election" and by the voters. However, that amount will be determined during the damages therefore did not comply with Proposition 218. The RAIT lawsuit trial court phase of the trial. Additionally, the City might have been required to refund rate further ruled that it lacked power to enjoin the certification of election results or payers for the portions of the rates that were determined to violate Article XIII C to otherwise invalidate the election. Both sides appealed that ruling. 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 On May 12, 2022, the City and the Paradas amended the May 17, 2021 damages would be. Settlement Agreement, with the following additional terms: (a) City agreed to start making refunds to ratepayers by October 1, 2022; (b) if the City prevailed Based on the Court's order in the liability phase of the trial, the City estimated in the appeal of the trial court's decision in the RAIT lawsuit, no additional that the amount of a refund would be $19 to $32 million per year, beginning refund would be due to the ratepayers; (c) if the City did not prevail in the appeal January 1, 2019, until date of settlement or issuance of a final, non-appealable of the trial court's decision in the RAIT lawsuit, an additional refund would be judgment by the trial court after anticipated appeals are resolved. This amount implemented in the amount of $705,882 per month, from November, 2021 up to could vary depending upon whether or not the City decides to repeal and when the City either (i) sets new electric rates; (i) voters approve a valid ballot replace the challenged rates pending appeal. measure for the GFT or (iii) the City otherwise stops collecting the electric GFT.
On May 17, 2021, the City and the Paradas entered into a conditional The Parada lawsuit was dismissed on May 13, 2022. settlement agreement. This settlement was conditioned on: (1) the Riverside The City Council adopted a resolution certifying the results of the Measure C City Council's placement of a ballot measure on City ballots in November 2021 election on July 19, 2022. The plaintiffs from the RAIT lawsuit sought to to approve the City's General Fund Transfer practices as a general tax ("Ballot intervene in the Parada lawsuit and set aside this dismissal. On August 3, 2022, Measure"); and (2) voter approval of the Ballot Measure. The Riverside City the Parada trial court refused to set aside the dismissal. The City has now Council placed the Ballot Measure on the ballot for the November 2, 2021 begun to implement the settlement agreement. 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 On July 25, 2024, the appellate court ruled in favor of the City and against RAIT, to customers of its electric utility an amount equal to $24 million less the amount holding that the City conducted a proper election in compliance with Proposition awarded to Plaintiffs' counsel in fees, paid over a five year period beginning no 218 and 26. Because the appellate court ruled in favor of the City, no additional later than February 1, 2022. If voters did not approve the Ballot Measure, this refunds are owed to ratepayers by the City under the Parada settlement litigation would then resume. agreement. On September 4, 2024, RAIT sought California Supreme Court review of the appellate decision and on October 30, 2024, the California On or about September 16, 2021, a petition for writ of mandate entitled Supreme Court declined review of the appellate court's ruling in favor of the 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 Simpson v. City of Riverside 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 On December 19, 2019, a class action lawsuit entitled Simpson v. City of 7, 2022 and ordered a stay of the certification of the Ballot Measure Election Riverside was filed against the City alleging that the City is overcharging results pending the January 7th hearing but did not otherwise delay or cancel the customers for water utility service in violation of Article XIIID, Section 6 of the California Constitution, on the grounds that the City is transferring 11.5% of election for the Ballot Measure.
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 Note 26. Prior Period Adjustment tax. The plaintiff is seeking refunds for all customers for monies collected in The Water Fund has been restated to reflect a capital contribution of $4,140 violation in the three years prior to the filing of the lawsuit and an order that the received in fiscal year 2023. The Water Fund additionally has been restated to court set aside the Revenue Transfer Re-Approval. The trial was bifurcated into reflect an adjustment to two GASB 87 related leases totaling $1,524, which two phases, liability and damages. were implemented in fiscal year 2022. The two GASB 87 lease adjustment affected the lease receivable, deferred inflows - Lease related items, Long-term The Court issued its ruling on the liability phase on August 17, 2023, finding that obligations, and other assets for the Water Fund. On the fund statements, this the City's water rates violated Article XIID, Section 6 of the California resulted in a net increase in the Water Funds net position of $2,616. On the Constitution because they were set in an amount sufficient to recover the government-wide statements, this resulted in a net increase of $2,616 in General Fund Transfer. A trial hearing related to the second phase of the trial, business-type net position. damages, was held on September 6, 2024. On December 5, 2024, the trial court issued its ruling on damages. The 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 June 30, 2023 damages for FY 2023/2024 and the issues of damages. The further hearing is as Previously Error June 30, 2023 expected in either January or February 2025. In January 2025, the City Council Reported Correction as Restated will review the Court's preliminary ruling on damages and consider future Government-wide actions to include whether or not to file an appeal of the ruling. Business-type activities 1,170,614 $ 2.616 $ 1,173,230 Proprietary funds
Damages related to Simpson I ceased to accrue as of the City's adoption of Major fund:
Resolution No. 24042 setting new water rates for fiscal years 2023-24 to 2027- Water Fund 327,413 2,616 $ 330,029 28 on September 30, 2023. However, on January 26, 2024, a class action lawsuit entitled Simpson v. City of Riverside ("Simpson II") was filed against the City, challenging the City's newly adopted 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 26, 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 Resolution 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.
83 RIVERSIDE
CITY OF
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)
Total Pension Liability
22,228$ 24,766 $ 25,117 $ 25,017$ 26,168 $
Interest on total pension liability
Change inTers
Differences between expected and actual
experience (37,885) (17,684)
Benefit payments, including refunds of
employee contributions (53,853)
Net change in total pension liability
Total pension liability - beginning 1,204,098
Total pension liability - ending (a)
Plan Fiduciary Net Position
Net Plan to Plan Resource Movement
Contributions - employer 25,996 $ 29,426 s 30,477 s 29,920 s 34,627 s 239,156 $ 27,329 $ Contributions - employees
Net investment income
Benefit payments, including refunds of
employee contributions (50,770)
Administrative and other income/(expenses)
Net change in fiduciary net position
Plan fiduciary net position - beginning 5 93202 5 1,05,86 3 1087,366 1.372,046 1-92,246 1498,712 1077,032 Plan fiduciary net position - ending (b) 970,787 $
Plan net pension liability/(assets) - ending
230,449 $ 243,792 $ 339,887$ 292,194$ 120,067 S (88,683) $ 131,701 S 155,001 Por the oral pensionian as a percentage 80.86 % 75.23 % 91.80 % 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)
Total Pension Liability
18,144 $ 21,373 $ 20,390 $ 21,454$ 22,391 $ 25,734 $
Interest on total pension liability
Changes in assumptions
Changes of benefit terms
Differences between expected and actual
Benefit payments, including refunds of
employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a) 80100 = 900,127 $ 2 336302 10023 1090200 117205 129820 120726 1340704 Plan Fiduciary Net Position
Net Plan to Plan Resource Movement
Contributions - employer 23,156 s 23,384 s 26,483 s 26,775 s 25,451 s 263,061 s 22,931 $ 24,810 s Contributions - employees
Net investment income (97,579)
Benefit payments, including refunds of
employee contributions (47,009) (50,478)
Administrative and other income/(expenses)
Net change in fiduciary net position 91,572
Plan fiduciary net position - beginning 794,269 829,821 1,086,394 Plan fiduciary net position - ending (b) 753,364 5 829,821 $ $ 1,301,939 $ 1,175,357 Plan net pension liability/(assets) - ending
170,512 $ 191,438 S 241,352 $ 287,889$ 286,225 S 307,382 S 109,499$ (51,610)S 165,397 S 176,261 Plan fiduciary net position as a percentage
of the total pension liability 80.67% 72.35 % 104.13% 87.66% Covered employee payroll 63,734 $ 68,707 $ 66,226 $ 68,251 $ 73,237 $ 76,955 $ 77,338 $ Plan net pension liability/(asset) as a
percentage of covered-employee payroll 142.29%
Notes to Schedule:
in the hanges of beer ee 168 increased the standard retire lump sum death benefit from $500 to 52,000 for any death occurring on or after July 1, 2023. The impact, fay, is included Changes of Assumptions: There were no assumption changes in 2023.
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 S 68,707 $ 66,226 $ 68,251 $ 73,237 $ 76,955 $ 78,813 $ 77,338 S 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:
Amortization method/period: June 30, 2021 CaPERS Funding Valuation Report Asset valuaticount rate: 5a value of assets
Overall payroll growth: 2.8%
Inflation: 2.3%
Retirement age: 2021 CaPERS experience study
2021 CaPERS Experience Study, projected generationall for future years using 80 percent of the Mortality: Society of Actuaries' Scale MP-2020.
87 CITY OF RIVERSIDE
SCHEDULE OF CHANGES IN TOTAL OPE 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 (306) 292 (2,300) (2,267) 1,173
Changes in assumptions (1,668) 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 RIVERSIDE
CITY OF
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 by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes.
National Pollution Discharge Elimination System (NPDES) Storm Drain Fund - To account for storm drain maintenance and inspection required for California storm water permits. Activities are funded by a special assessment district of Riverside County, California.
Special Districts Fund - To account for Loving Homes, Village at Canyon Crest, Sycamore Highlands, Riverwalk, Riverwalk Parks Projects, and Street Lighting districts.
Housing Fund - To account for the housing activities for persons with low or moderate income.
Capital Projects Funds
Capital Projects 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 - To account for the acquisition, construction and installation of capital improvements and a Community Facilities District within the City.
Storm Drain Fund - To account for the acquisition, construction and installation of storm drains in the City.
Transportation Fund - To account for the construction and installation of street and highway improvements in accordance with Articles 3 and 8 of the Transportation Development Act of 1971 of the State of California.
Permanent Fund
Permanent 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 Grants and Housing &
Security Restricted Air Quality Community NPDES Special Initiative Programs Gas Tax Improvements Development Strom Drain Districts Housing Total 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 72 529
Property taxes 88 88
Accounts 132 23 168
Intergovernmental 1,585 5,229 6.195 1,600 16,307
Notes 16,374 34,324 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 S 36,367 S 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 13 71
Retainage payable 192 241 173 24 637
Intergovernmental -
Unearned revenue 43,141 58,931
Deposits 35
Due to other funds 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 6,093 31.708 2018 2,621 575 1,228 8,669 11,290 Transportation and public works 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 2_ 172,764 90 CITY OF RIVERSIDE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(amounts expressed in thousands)
Permanent
Capital Projects Funds Fund
Total
Non-Major
Special Capital Governmental
Improvement Storm Drain Transportation Total Library Special Funds 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 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 $ 10,919 5 1,676 S 185,359
Liabilities, Deferred Inflows of Resources, and Fund Balances:
Liabilities:
Accounts payable 6,320
Accrued payroll 71
Retainage payable 642
Intergovernmental
Unearned revenue 58,931
Deposits 35
Due to other funds 1,549
Total liabilities 13 67,553
Deferred Inflows of Resources:
Unavailable revenue 52.156
Total deferred inflows of resources 52,156
Fund Balances:
Nonspendable:
Permanent und principal deposis 1.676 156
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 Grants and Housing &
Security Restricted Air Quality Community Special
Initiative Programs Gas Tax Improvements Development Strom Drain Districts Housing Total Revenues:
Licenses and permits 16,048$ - $
Intergovernmental 1,882$ 24,645 $ 423 18,843° 62,441
Charges for services 1,782 41 1,823
Special assessments 1, 157 387 1.600 4,264 5,864
Rental and investment income 1,363 78 15 264 3,267
Miscellaneous 994 124 128 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 28
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 (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
Issuance of debt related to leases and subscriptions 150 150 Total other financing sources/(uses) (854) 1,561 (41). 707 Net change in fund balances 3,043 (424) 48 2,567 (24) 322 (2,552) 2,980 Beginning of year 3,206 32,132 1,970 599 906 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)
Permanent
Fund
Total
Non-Major
Impralement Storm Drain Transportation Governmental
Total Library Special Funds
Ricenses and permits 3,687 $ 188 $ 162° 3,875 $ 3,875
Intergovernmental 199 361 62,802
Charges for services 1,823
Special assessments 5,864
Rental and investment income 312 27 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
Culture and re reton 674
4,638
Capital outlay 185 300 37,312
Debt service:
Principal 151
Interest and fiscal charges
Total expenditures 240 300 162 702 149 73,329
Excess/(deficiency) of revenues over/(under) expenditures 3,759 114 3,873 6,180 Transfers incing Sources/(Uses): 2,213
Transfers out 1.350) (1,750) (3,407)
suade me of cal as 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
Beginning of year 7,902 881 8,783 1,642 60.513
End of year 9,911 $ 995 $ = $ 10,906 $ 1,676 S 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 Variance to Variance to Variance to
Final Budget Final Budget Final Budget
Positive Positive Positive
Budget Amounts (Negative) Budget (Negative) Budget Amounts (Negative) Revere ernmental 12,866 $ (10,984) $ 21,745 $ (106,697 $ 17,337$ 16,648 $ (689) Charges for services
Rental and investment income 1.213
Miscellaneous 124
Total revenues 12,866 1,882 (10,984) 134,183 28,578 (105,605). 17,487 18,135 648 Expenditures:
CUreneral government 34,825 10,477 24,348
Public safety 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 14,927 18,559 26,368 Principal 52 (52)
Interest and fiscal charges (3)
Total expenditures 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
Issuance of debt related to leases and
subscriptions 150 150
Tsalres linencing (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 = $ = 2 = $ (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 NDES Strom Drain Variance to
Final Budget Final Budget Final Budget
Positive Positive Positive
Budget Amounts (Negative) Budget (Negative) Budget Amounts (Negative) Revere ernmental 428$ 423 $ 5) $ 40,518 $ 18,843 $ (21,675) $ 397 $ - $ (397) Charges for services 100 41 (59)
Special assessments 1,756 1,600
Rental and investment income 78 78 239 387
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 49,597 14,944 34,653 2,456 829
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) (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 $ 147 $ (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
Variance to Variance to
Final Budget Final Budget
Actual Positive Final Actual Positive
Budget Amounts (Negative) Budget Amounts (Negative)
Revenues
Rentil and versment income 4,146 $ 4,264 $ 118$ - $ - $ 15 15 264
Miscellaneous 128 128
Total revenues 4,146 4,279 133 392 392
Expenditures:
Current:
General government 4,793 (203) 2,549 2,807 (258)
Public safety 4.996
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 (41) (9,267)
Transfers out (9,267) (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 5 291 5 1,228 $ 937 $ 8,576,5 291$ 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 Variance to Variance to Variance to
Final Budget Final Budget Final Budget
Actual Positive Final Positive Final Actual Positive
Budget Amounts (Negative) Budget (Negative) Budget Amounts (Negative) Revenues:
Licenses and permits - $ 2,585 $ 3,687 $ 1,102 $ 184$ 188 $ 70,447 8 12,186 (58,261) 199 (22,885)
Intergovernmental 23,084
Special assessments 697 1,006
Rental and investment income 180 2,989 2,809 30 312 282 13 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
-
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) 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
SATAL UNS, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2024
(amounts expressed in thousands)
Transportation
Variance to
Final Budget
Actual Positive
Final Budget Amounts (Negative)
Revengernmental 163 $ 162 $
Total revenues 163 162 (1)
Expenditures:
Capital outlay 163 162
Total expenditures 163 162
Other Financing Sources/(Uses):
Transfers in
Fund Balances:
Beginning of year
End of year CAll
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
Total
Non-Major
Civic Enterprise
Airport Refuse Transportation Public Parking Entertainment Funds Current assets:
Receivadies, netof allowance for uncollectible 2,758 $ 14,085$ - $ 7,793 $ 4,790 $ 29,426 20 84 46 16
Utility billed 1,920 1,920
Utility unbilled 1,202 1,202
Accounts 397 330 24 565 1,351
Property taxes
Intergovernmental 62
240 42
80 80
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 3.460 8,460
Derivative instruments 10832 1,108 1,108
Capital assets, not depreciated 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 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 Defange underval valurces: 449 449
Pension elated ten retunding 513 513
321 2,388 1,572 636 4,917
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
Total
Non-Major
Civic Enterprise
Airport Refuse Transportation Public Parking Entertainment Funds Liabilities:
Current liabilities:
Accounts payable 333 3,276 669 571 2,439 7,288
Accrued payroll 17 188 62 27 294
Retainage payable 125 164
Unearned revenue 74 107
Deposits 850 850
Accrued interest 41 41
Due to other funds 233 233
Long-term obligations 491 196 1,265 4,289 6,309
Compensated absences 325 120 39 556
Landfill capping 559 559
OPEB liability 54 11 99
Lease liability 75
SBITA liability =.
Total current liabilities 4,894 1,310 2,154. 7,652 10,578 Noncurrent liabilities:
Long-term obligations 556 3,685 1,770 11,349 49,469 66,829 Compensated absences 15 71 26 121
Advances from other funds 2000
2,000
Landfill capping 3,385 8,385
Regulatory liability 45 45
Derivative instruments 2241 980 980
Net pension liability 458 3,404 907 7,010
OPE liability 156 1,361 288 2,507
Lease liability 17
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 39 301
OPEB related items 27 241 459
Lease related items 2,807 2,077 1.0B7 4,884
Total deferred inflows of resources 2,854 2,170 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 259
Unrestricted/(deficit) 1,727 6.854 (3,562) 3.650 10,573 Total net position 22,253 $ 12,664 $ (1,902) $ 19,801 $ 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
Total
Non-Major
Enterprise
Airport Refuse Transportation Public Parking Entertainment Funds Charges for services: 2,039 S 33,444 $ 276 5 10,228 S 22,000 s 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 102 193 135 143 962
Depreciation 751 765 285 1,004 3,077 5,882
Amortization 569 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 126 156 204 178 2540)
Interest expense and fiscal charges (22) (143) (69) (536) (1,771) Other 113 452 86 247 100
Gain/(loss) on disposal of capital assets (21). (58) (76) Total nonoperating revenues/(expenses): 242 698 4,430 (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 1,000 900 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 $ 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
Total
Non-Major
Enterprise
Airport Refuse Transportation Public Parking Entertainment Funds Cash received from customer are seri 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)
233 233
Payment recipe on a vances to other funds (348) (178) 2,000 2,000 Debt service payment on pension obligation bonds (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 158
Priest pardon longer online (105) (1,153) (1.1830) (229) (23) (69) (540)
Contributions 69 400
Lease and subscription payments (6) (7). (76) (91)
Net cash provided/(used) by capital and related financing activities (765) (368). 329 (2,658) (7,373) (10,835) Therest rom vestmenting Activities: 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
Total
Non-Major
Enterprise
Airport Refuse Transportation Public Parking Entertainment Funds Reconciliation of Operating Income to Net Cash Provided/(Used) by Operating operating income/loss) (377) S (2,130) S (5,303) S 2,718 $ (7,786) S (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 569 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) (Increase)/decrease in property tax receivable (5) (5)
(Increase)/decrease in intergovernmental receivable 109 (55) 3,135 3,189 (Increase)/decrease in inventory
(Increase)/decrease in prepaid items 13
Increase/(decrease) in accounts payable 184 1,505 639 1,210 3,496 Increase/(decrease) in accrued payroll 65 12 89
Increase/(decrease) in retainage payable 38 (100)
Increase/(decrease) in unearned revenue (8) 43
Increase/(decrease) in deposits payable 168 168
Increase/(decrease) in compensated absences 12 (34)
Increase/(decrease) in landfill capping liability (481) (481) Changes in net pension liability/(asset) and related deferred inflows/(outflows) of 75 614 443 165 1,297
Changes in OPE lability and related deferred inflows outlows) of resources 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 $ - S 7,793 $ 4,790 $ 29,426 Cash and cash equivalents 2,500 2,500
Cash and cash equialents at end of year 2,758 5 16,585 5 7.793 5 4,790 5 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 services 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 Total Internal
Trust Central Stores Central Garage Service Funds
Assets:
Current assets:
Cash and investments $ 32,545 $ - $ 11,702 $ 44,247
Receivables, net of allowance for uncollectible
164 62 226
650 707
Intergovernmental 28 48 76
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 2,536
OPEB related items 44 26 1800. 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 628
Compensated absences 91 246 355
Claims and judgments 16,921 - 16,921
OPEB liability 32 46
Lease liability 2 2
SITA 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 Total Internal
Trust Central Stores Central Garage Service Funds
Operating Revenues:
Charges for services $ 23.591 $ 1,519 S 12,201 $ 37,311 Total operating revenues 23,591 1,519 12,201 37,311
Operating Expenses:
1,436 812 3,851 6,099
523 38 298 859
5 28 4,173 4,206
General 5,857 19 1,465 7,341
Materials and supplies 12 179 194
63,986 12 208 64,206
Claims/Insurance
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
transters (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)
Self Insurance Grancemental Activities - Intereats vice Furats ternal Central Trust Central Stores Garage Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users $ 1$
1.519$ 12,38 $ 36,944
Cash received from interfund services provided 23,044
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 (1) (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
Natash provided (used) by capital and related financing 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) S 586$ 865 S (46,772)
Adjustments to Reconcile Operating Income/(Loss) Net Cash Provided/(Used) by Operating Activities:
Depreciation 1,158
Amortization 9
(Increase)/decrease in accounts receivable
(Increase)/decrease in intergovernmental receivable 32
(Increase)/decrease in inventory (1,049) 30
-
(Increase)/decrease in prepaid items 2 2
Increase/(decrease) in accounts payable (141) (279) (59) Increase/(decrease) in accrued payroll 8 11 20
Increase/(decrease) in compensated absences 39
Increase/(decrease) in claims and judgments 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 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
RIVERSIDE
CITY OF
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)
Total General
General Fund Measure Z Fund 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
794 337 1,131
1,884 1,884
Sales taxes 15,713 14.537 30,250
Utility billed 11198 1,347
1,198
Accounts 9,257 9,258
Intergovernmental 4,182 4,182
Notes 10 10
Leases receivable 10,554 10,554
Prepaid items 1,797 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
Intergovernmental
Deposits 12,263 : 12,263
Total liabilities 38,744 1,689 40,433
Deferred Inflows of Resources:
Unavailable revenue 7,422
17222 :
Lease related items 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 4,319 5,788
Culture and recreation 2.400
Continuing projects 6,385
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 S 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)
Total General
General Fund Measure Z Fund 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 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
Proceeds from sale of capital assets 4,388 (18200)
Issuance of debt related to leases and subscriptions 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)
Measure Z
Capital Outlay Capital Outlay Total Capital
Fund Fund Outlay Fund
Assets:
Cash and investments $ 75,194 $ 28,343 $ 103,537
Cash and investments with fiscal agent 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
23,365
Total fund balances 74,950 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)
Measure Z
Capital Outay Capital elay Total Capital
Fund Fund Outlay Fund
Revenues:
$ 12,186 $ - $ 12,186
Ramal and mesment come 1,006 1,006
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
Tave saged eventain trend information to help the reader understand how the Cis financial performance and well-being 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
and the ches as pyres sue adition debt in he ruder assess the affordability of the City's current levels of outstanding debt 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 105,847 106,488 104,853 126,551 153,806 164,809 203,038 237,159 230,945 Restricted - Nonexpendable
Unrestricted (406,388) (389,278) (362,146) (364,500) (356.340) (369,222) (366,713) Total governmental activities net position 825,679 $ 841,120 $ 845,116 $ 2841,579 $ 866,575 $ 968,328 5 129.540 1242730 1292-732. 873,048
Business-Type Activities
Net investment in capital assets 626,166 $ 654,870 $ 702,844 $ 800,227 $ 867,206 $ 751,865 $ 756.116 $ 790,844 $ 785,422 Restricted - Expendable 75,660 75.170 78.885
Unrestricted 209,469 395540 104, 30 5 1,080087 1085131 1092811 09838 1235312 270,644 205216. 29632 22022 Total business-type activities net position 911,295 $
Primary Government
Net investment in capital assets 8 1.781.507 S 1.792,010 $ 1-898.453 $ 1.194923 5 1993043 S 1333956 $ 1.243648 S1.958604 S1.939789 $ 1.991.478 Restricted - Expendable 193,608 228,976 243,694
Restricted - Nonexpendable
Unrestricted (196,919). (154,134) (117,030) (200,872) (96.446) (102,876) 264 40,246 56.513 Total primary government net position 517380974 5 1154134 3 1,87646 3 1,921,557 $ 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 44,510 S 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 16,387 16,028 12,414 10,045 13,181 19,083 19.806 18,598 17,607 Total governmental activities 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 1,809 1,799 1,998 2,179 1,972 2,304 2,326 1,944 2,383 2,438 Arises 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 167l 7199565 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 $ 13,721 $ 14,046 $ 17,582 7,256 3,243 1,167 1,880 2,443 2,138 14,491 14,963 14,937 Highways and streets 13,868 5,709 5,930 5,554 6,036 5,174 6,090 7,288 7,078 Cultural and recreation 16,319 12,458 22,802 6,078 7,465 5,050 6,770 6,790 7,932 Operating grants and contributions 12,869 16,321 19,374 22,548 23,966 21,779 50,378 59,368 50,327 Capital grants and contributions 43.904 31,216 7,617 18,039 27,450 19,945 38,508 34.305 31,064 Total governmental activities 111,816 93.891 84,331 78,704 96,641 79,784 129,958 136,760 128,920 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 267,7135 608,175 $ 630,174$ 653,199 $ 650017-5 644,181 $ 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
288) 199967) 224393) 273799) 24145(302492 230038) (20697) 257202) 384342) (284,167) 63,793 86.979 29,682 35,643 Business-Type Activities 20,638
revenueslexpensespent not $ (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 71,986 79,790 90,383 Utility users' taxes 28,076 27,828 27,958 27,498
Franchise taxes 5,543 5,730 4,814 4,972 5,256 5,527
Transient occupancy taxes 5,280 6,093 6,622 6,793 7,163 Intergovernmental, unrestricted 3,153 477 145
Investment income 3,233 729 6,145 7,500
Miscellaneous 12,395 11,708 2,050 4,278
Transfers 42,681 41,216 45,716 41,459 37,115 34,879 25.421 Total governmental activities 214,662 210,302 228,859 274,212 285,322 310,547 332,745 357,492 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 Coverinal Postes 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 5 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 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 S 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 59,790 69,908 71,700 52,089 Total general fund 79,651$ 65,578 S 83,070 $ 89.624 S 121,167 $ 111184 = 159,647 $ 227,218 253,377 $ 287,858 All Other Governmental Funds
Nonspendable 1,625 $ 1,619 $ 1,601 $ 4,855 S 1,560 $ 1,510 $ 1,477 $ 1,495 $ 1,736 $ 1,832 Restricted for:
Hous servind redevelopment 25,523 24,746 24,098 18,827 16,668 16,611 18,553 12,292 11,252 11,290 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 5 121,937 $ 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 S 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 $ 32,184 157,660 164,800 163,712 190,916 198,363 434,208 200,733 205,968 219,559 237,709 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 37,867 24,475
Interest and fiscal charges 17,048 20,372
Issuance costs 383526 5 382353, 5 328 318 5
Total expenditures 355,961 $ 359,497 $ 391.003 $ 401,964 $ 433,530 $ Excess/(deficiency) of revenue
over/(under) expenditures (94,199) ≤ (91,475) S (88,747) $ (10,376) $ (20.918) $ (345,845) S 11,466 S 25,184$ 31.501 $ 4,163 Transfer incing Sources/(Usos):
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
Payinal it to reuning bond escrow agent 4,450 5,846 2,109 (23,371) Other finance sources - bond premium/(discount)
Premium on issuance of long-term debt 2435
Total other financing sources/(uses) k 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) S (5,145) S 41.338 $ 71,339 10,466 $ 22,558 69,7605 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 CaPERS 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)
Other
Fiscal Residential Commercial Industrial Wholesale Other Transmission Operating Total Year Sales Sales 1 Sales 1 Sales Sales Revenue Revenue Revenues 2015 114,112 $ 68,572 $ 112,283 $ 60 $ 5,654 $ 30,587 $ 347,621 2016 116,997 113,756 4,737 32,924 354,530
2017 117,662 4,782 35,497 366,617
2018 115,630 4,792 37,484 353,003
2019 116,303 344 4,824 35,730 363,570
2020 121,162 4,849 34,817 368,968
2021 133,460 27 4,864 32,316 376,100
2022 130.538 4,891 32,245 397,947
2023 2,043 5,162 35,233 419,392
2024 138,879 5,254 39,934 429,853
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)
Utility Transient
Sales Property Users' Franchise Occupancy Total
Fiscal Year Tax! Tax? Tax Tax Tax Taxes
2015 59,437 54,864 28,076 5,543
2016 60,976 55,545 27,828 5,730
2017 75,883 59,526 27,958 4,814 6,622
2018 120,338 63,515 27,498 4,972
2019 130,645 69,343 28,009 5,256 7,163
2020 128,653 72,609 29,044 5,443
2021 150,321 71,986 30,577 5,527 5,801
2022 173,933 79,790 32,464 5,955 8,584
2023 177,722 84,751 34,963 6,422 312,445
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 on February 1, 2012, property taxes received by the Successor Agency are reported in a private-purpose trust fund and therefore are excluded from the activities of the primary government. 121
CITY OF RIVERSIDE
TABLE 7
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS (in thousands)
2014
Apparel stores 188,670 $ 203,001 $ 210,158 $ 212,036$ 210,439 $ 147,176 $ 249,034 $ 232,964 $ 231,058 General merchandise 475,147 477,903 478,538 470,386 426,500 617,257 458,278 Food stores 209,022 217,902 168,854 169,922 184,278 208,060 225,749 Eating and drinking places 483,901 533,317 582,262 609,705 639,995 788,765 879,796 Building materials 514,993 567,790 636,415 738,178 813,584 1,010,364 1,094,427 Auto dealers and supplies 1,461,217 1,548,385 1,608,231 1,588,854 1,621,311 1,728,498 2,084,828 2,282,012 Service stations 413,128 370,257 338,762 432,991 527,973 644,484 597,100 Other retail stores 595,305 633,089 692,375 677,850 666,659 636,043 764,854 743,571 700,044 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 Taxable Total
Ended Less: Assessed Direct
June 30 Secured Unsecured Exemptions Value Ratel
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 Levy' 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? 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 1408 1.512 0.016 1.045 0.015 1.355 1.555 1.515 1.945 1.563 Total direct & overlapping? tax rates 1.521 1.546
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 rates 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. " 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. * 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
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Property Owner Valuation Rank Value Valuation Rank Value Riverside Healthcare System 335,070 142,088 0.58 %
Kaiser 294,946
Tyler Mall LP 239,720 195,439 0.79
Nordstrom Inc 224,690
CPT Riverside Plaza LLC 174,076
Rohr Inc 152,249 97,904 0.40 %
La Sierra University 144,233 116,298 0.47 %
TA Lance Drive LLC 138,430
490 Columbia 135,287 0.33 %
Corona Pointe Resort LLC 132,292 10 0.32 %
Advanced Group 13 107 96,579 0.39 %
Cole ID Riverside California 93,754 0.38 %
State Street Bank and Trust Co of CA 85,475 0.35 %
Vestar Riverside Plaza LLC 82,511 0.33 %
Northrop Drive Apartments Investment 76,255 0.31 %
Canyon Springs Marketplace Corporation 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)
Collections
Taxes Collected Within the in
Fiscal Year Ended Levied for Fiscal Year of the Levy 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%
57,567 57,173 99.32% 57,567 100.00%
63,003 62,557 99.29% 63,003 100.00%
66,295 65,729 99.15% 66,295 100.00%
68,363 67,968 99.42% 68,363 100.00%
71,892 71,573 99.56% 71,892 100.00%
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 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 2018 2019 2020 2022 2023 2024
Type of Customer:
Residential 711 726 730 727 722 722 783 759 786 709
Commerciali 428 438 448 476 460 442 430 443 440 427
Industrial 995 982 996 970 947 931 890 923 920 916
Wholesale sales? 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.
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 Commercial! Industrial: 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 *
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
Percent of Percent of
Electricity Total Electric Electricity Total Electric
Electricity Customer Charges Rank Revenues Charges Rank Revenues Local University 14,114,348 4.00% $ 11,412,923 3.80 %
Local Government 8,530,192 2.42 % 8,594,043 2.86%
Local Government 8,338,317 2.37 % 8,073,889 2.69%
Local School District 5,164,237 1.47% 4,311,950 1.43%
Corporation 4,710,601 1.34% 4,070,777 1.35%
Corporation 4,314,135 1.22% 3,897,219 1.30%
Corporation 4,177,204 1.19% 2,935,854 0.98 %
Hospital 3,811,163 1.08% 2,530,436 0.84%
Local University 3,077,010 0.87% 2,214,992 10 0.74%
Corporation 3,076,416 10 0.87 %
Local School District 2.250.391 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
General Lease Pension Certificates
Obligation Revenue Obligation Financed Notes & Loans Lease SBITA Fiscal Year Bonds Bonds Bonds2 Participation Purchase Payable Liability Liability 2015 40.891 $ 108,725 $ 187,212 $ 14,966 $ 45,574 $
2016 39,398 101,000 181,429 12,006 43,482
2017 37,854 92,592 156,516 17,193 41,325
2018 36,246 60,883 150,800 25,647 1,746
2019 80,416 50,486 99,178 21,422 1,329
2020 75,964 364,633 94,802 18,207 899
2021 72,471 352,824 90,215 14,922 457
2022 68,855 338,264 85,477 22,294 1,060
2023 65,093 321,413 80,584 19,230 563 1,930
2024 61,163 313,830 75,067 16,152 586 1.119
Business-Type Activities
Notes & Pension Certificates Lease Total Certifications Certifications Revenue Arbitrage Loans Financed Obligation of Revenue Lease SBITA Primary Fiscal Year Bonds Payable. Payable Purchase Bonds? Participation? Bonds4 Liability Liability Government Participation' Participation' 2015 $ 1,239,634 S 37,225 1,720 $ - $ 2,929,127 24.00%
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) General Certificates Total Obligated Less: Amounts Percent of Obligation Pension Participation Debt Available in Debt Net Obligated Assessed Per Fiscal Year Bonds Bonds Outstanding Service Fund Debt Outstanding Value' Capita? 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 ‡ґ₴8·88ē8 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) 377.062 1.51% 1,240 2024 1.756 313,830 75,067 390,653 (13,001) 1.39 % 1,192 Notes:
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
City's Share
Total Debt % Applicable of Debt!
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 debt?
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 Moreno Valley Sited School Distic es orates of Participation 43,860,159 0.001 439 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. ........ i 3.63 % Ratios to dissolved redevelopment incremental valuation $(13,841,072,735):
Total overlapping tax increment debt... 1.14%
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 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 $ 902.826S 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 margin was enacted a coe seasie calisessed lual go eata for a fed year he State current full aluation perspective to the 25% level that was in effect at the time that the legal debt 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
Net Less: Net
Fiscal Pledged operating Available Debt Service Pledged Operating Available Debt Service Year Revenue' Expenses' Revenue Principle Interest Coverage Revenue' Expenses! Revenue Principal Interest Coverage 2015 348,244 $ 250,578 97,666 S 2.32 $ 66,010 $ 36,725 8,342 2.15 2016 371,029 249,607 * 121,422 2.87 60,047 35,608 8,063 1.80 2017 368,956 251,998 * 116.958 2.95 65,689 37,956 8,124 2.04 2018 368,116 257,785 * 110,331 2.71 71,054 40,737 8,049 2.14 2019 374,510 279,394 * 95.116 2.24 69,965 8,780 1.68
2020 378,391 277,064 • 101,327 2.62 74,343 45,825 9,671 1.80 2021 373,663 284,293 × 89,370 1.99 83,510 9,685 2.25
2022 391,860 298,221 • 93,639 2.03 85,163 47,177 9,353 2.23 2023 425,941 332,901 * 93,040 2.01 85,058 48,696 * 10,570 1.93 2024 443,500 326,639 116,861 2.31 90,803 41,463 11,324 1.98 Sewer Revenue Bonds
Less: Net
Fiscal Pledged Operating Available Debt Service
Year Revenuel _Expenses' 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 Ae aunte narate alicatin in out aco in e i alre die fort ovenant covenants. Tol operating expenses exclusive of depreciation. Pledged revenue includes appicable cash * Excludes non-cash pension expense.
135
CITY OF RIVERSIDE
TABLE 20
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Per
Personal Capita
Calendar Income? Personal Unemployment
Year Population' (in thousands) Income? Rate3
2014 314,221 6,857,559 21,824 7.9
2015 324,696 6,953,323 6.4
2016 326,792 7,139,080 5.8
2017 325,860 7,349,024 5.1
2018 328,101 7,674,374 3.8
2019 328,155 8,102,150 3.6
2020 324,302 9.0
2021 313676 9,058,784 6.7
2022 3.8
2023 316,690 9,998,230 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
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment County of Riverside 25,300 17.5% 11,628 7.9%
March Air Force Reserve 6.7%
University of California, Riverside 9,316 6.4% 5.1%
Kaiser Permanente 7,420 5.1% 4,500 3.0%
Riverside University Health System 7,355 5.1%
Riverside Unified School District 4,596 3.2% 3,500 2.4% Riverside Community Hospital 2,958 2.0% 1,900 1.3%
City of Riverside 2,709 1.9% 2,461 1.7%
Riverside Community College District 2,300 1.6% 1,061 0.7% Alvord Unified School District 1,955 10 1.3% 1,445 1.0% Riverside County Office of Education 1,765 1.2%
Parkview Community Hospital 1,350 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
Fire
Highways and streets
Sanitation
Culture and recreation
Airport
Water
Electric 466.50
Total 2.507.39 2.502.77 2,549.65
1 In fiscal year 2013/14, the City Council deleted a number of long-term unfunded positions.
Source: City of Riverside, Finance Department, FY 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 43,007 47702 48 004 56.024 54,069 46260 525' 3561 213882 29,056 44,363 324' 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
Substations
Helicopters
Airplane
Fire:
Stations 14 14
Active apparatus 28
Reserve apparatus 11 13
Training facilities
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
Softball and baseball
diamonds 44 44 44 44 44 44 44 44 44 44
Library branches
Museum exhibit-fixed 1 1 0 1
Museum exhibit-special 4 1 1 1
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
CITY OF
RIVERSIDE
City of Arts & Innovation
3900 Main Street
Riverside, CA 92522
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