CITY OF RIVERSIDE, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2025
Prepared by the Finance Department
Kristie Thomas, Chief Financial Officer
3900 Main Street, Riverside, California 92522 (951) 826-5660
CITY OF RIVERSIDE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................i GFOA Certificate of Achievement................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................viii Legislative and City Officials................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ix Organizational Chart................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ix
FINANCIAL SECTION
Independent Auditors' Report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 Management's Discussion and Analysis................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................21 Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................22 Fund Financial Statements:
Balance Sheet - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................23 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................24 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................25 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................26 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................27 Statement of Net Position - Proprietary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................28 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................30 Statement of Cash Flows - Proprietary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................31 Statement of Net Position - Fiduciary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................33 Statement of Changes in Net Position - Fiduciary Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................34 Notes to Basic Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................35 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, 2025
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................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................99 Combining Statement of Revenues, Expenses, and Changes in Net Position - Non-Major Enterprise Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................101 Combining Statement of Cash Flows - Non-Major Enterprise Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................102 Combining Statement of Net Position - Internal Service Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................105 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................106 Combining Statement of Cash Flows - Internal Service Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................107 Balance Sheet - Combining General Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................109 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Combining General Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................110 Balance Sheet - Combining Capital Outlay Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................111 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Combining Capital Outlay Fund Schedule................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................112
STATISTICAL SECTION
Net Position by Component................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................114 Changes in Net Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................115 Fund Balances - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................117 Changes in Fund Balances - Governmental Funds................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................118 Business-Type Activities - Electricity Revenues by Source................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................119 Governmental Activities - Tax Revenue by Source................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................120 Taxable Sales by Category................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................121
CITY OF RIVERSIDE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
TABLE OF CONTENTS
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Assessed Value and Estimated Actual Value of Taxable Property................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................122 Direct and Overlapping Property Tax Rates................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................123 Principal Property Taxpayers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................124 Property Taxes Levies and Collections................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................125 Electricity Sold by Type of Customer................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................126 Electricity Rates................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................127 Top 10 Electricity Customers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................128 Ratios of Outstanding Debt by Type................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................129 Ratios of General Bonded Debt Outstanding................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................130 Direct and Overlapping Governmental Activities Debt................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................131 Legal Debt Margin Information................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................133 Pledged-Revenue Coverage................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................134 Demographic and Economic Statistics................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................135 Principal Employers................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................136 Full-Time Equivalent City Government Employees by Function................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................137 Operating Indicators by Function................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................138 Capital Asset Statistics by Function................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................139
December 23, 2025
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, 2025.
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, 2025. The independent auditors' report is presented as the first component of the financial section of this ACFR.
The independent audit of the financial statements of the City was part of the federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only o n the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements, with emphasis on those involving the administration of federal awards/grants. These reports will become available in the City’s separately issued Single Audit Report.
Management has provided an overall analysis of the financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with this section. The City’s MD&A can be found immediately following the independent auditors’ report.
Profile of the City of Riverside
The City of Riverside, incorporated on October 11, 1883, is located in the western portion of Riverside County, about 60 miles east of Los Angeles. The City currently occupies a land area of 81.507 square miles.
The City operates under the council-manager form of government, with a seven-member council elected by ward for four-year overlapping terms. The mayor is elected at large for a four-year term and is the presiding officer of the Council but does not have a vote except in the case of a tie. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney, and City Clerk. The City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of the City, and for appointing the heads of various departments. The Council is elected on a non-partisan basis. i
The City p rovides a full range of services which include general government, public safety ( police, fire, disaster preparedness, and building inspection), construction and maintenance of highways and streets, economic development, culture and recreation, electric, water, airport, refuse, sewer, and senior citizen/handicap transportation. In addition to general City a ctivities, the Council is financially a ccountable for the Riverside Housing Authority, Riverside Public Financing Authority, Riverside Municipal Improvements Corporation, and the Successor Agency, which was formed to hold the assets of the former Redevelopment Agency; therefore, these entities are included as an integral part of the City’s financial statements. Additional information on these legally separate entities can be found in Note 1 in the Notes to Basic Financial Statements.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments within the general, special revenue, and capital project funds. Formal budgets are not employed for debt service funds because debt indenture provisions specify payments. The permanent fund is not budgeted.
Biennially, during the period December through February, department heads prepare estimates of required appropriations for the following two-year budget cycle. These estimates are compiled into a proposed operating budget that includes a summary of proposed expenditures and financial resources, as well as historical data for the preceding budget cycle. At least thirty-five days prior to the beginning of the fiscal year, the City Manager provides the proposed budget in writing to the City Council for review, followed by presentation at a City Council meeting. Following Council review, a public hearing is set to obtain citizen comments. The City C ouncil generally c onducts the public hearing and adopts the budget during one of its June meetings. The City Manager is legally authorized to transfer budgeted amounts between divisions and accounts within the same department and fund over the course of the fiscal year. Transfer of appropriations between departments or funds and increased appropriations must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations within a fund. All appropriations shall lapse at the end of the fiscal year to the extent they have not been expended or lawfully encumbered, except for appropriations for capital projects and grants which shall continue to their completion. For the General Fund, this comparison is presented on page 27 a s part of the basic financial statements for the governmental funds. For all other governmental funds 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”). Inland Southern California has a population of approximately 4.7 million, larger than that of 26 states. The population of the City is 320,337, which places it as the 12th largest in California. As one of the 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 provide local employment opportunities but also bolster the broader Southern California economy. Additionally, Riverside's strategic location as a transportation and logistics hub, with access to major highways and distribution centers, underscores its critical role in facilitating the movement of goods within the region.
The City of Riverside saw an increase in the unemployment rate from 5.3% as of July 2024 to 5.9% as of July 2025. The City's unemployment rate is lower than the County o f Riverside (6.5%), but higher than the State of California (5.5%) and the United States (4.6%). The primary d rivers of the change in employment in the Riverside metro area's nonfarm payrolls were decreases in the mining and logging and construction categories, which were partially offset by increases in employment in the education and health services and government categories.
In the Riverside metro area, there was an overall increase in the consumer price index of 3.5%, with food prices increasing by 3.5% and energy prices decreasing by 1.8%, compared to the United States city average, which experienced an overall increase of 2.7%, with an increase of 2.9% in food prices and a decrease of 1.6% in energy prices.
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In October 2025, Riverside home prices were flat compared to last year, selling for a median price of $650,000. On average, homes in Riverside currently sell after 49 days on the market, compared to 35 days last year. There were 195 homes sold in October this year, up from 177 last year.
Goals and Vision: On October 20, 2020, Council approved the Envision Riverside 2025 Strategic Plan, which is comprised of two components:
1. City Council Strategic Policy, which sets forth the priorities and policy direction of the City Council to advance Riverside’s potential and to frame the work efforts over the next five years including the Vision, Cross-Cutting Threads, Strategic Priorities, Indicators, and Goals; and
2. Operational Workplan, which sets forth envisioned actions to be carried out by City staff to implement the City Council Strategic Policy, as well as related metrics to track the trendlines of progress toward achieving City Council priorities and includes the Actions and Performance Measures which will be evaluated and updated by the City Manager on an as-needed basis in conjunction with the City’s budget cycle.
Envision Riverside 2025 Strategic Plan Vision: Riverside is a city where every person is respected and cherished, where equity is essential to community well-being, where residents support one another, and where opportunities exist for all to prosper. In Riverside, everyone comes together to help the community, economy, and environment reach their fullest potential for the public good.
Cross-Cutting Threads: Major themes that should be reflected in all our outcomes include Community Trust, Equity, Fiscal Responsibility, Innovation, and Sustainability and Resiliency.
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Strategic Priorities and Indicators
Arts, Culture and Recreation Indicators: Community Well-Being Indicators: Economic Opportunity Indicators:
Lifelong Learning Housing Supply and Attainability Workforce Development Shared Uses and Partnerships Public Safety Business Development and Success Arts and Cultural Opportunities Public Health Local Investment Access to Parks, Trails and Open Spaces Placemaking Regional Partnerships Programs and Amenities Homelessness Economic Mobility Household Resilience
Environmental Stewardship Indicators: High Performing Government Indicators:
Infrastructure, Mobility, and Connectivity
Indicators:
Water Quality, Supply, Efficiency and Reliability Community Centered Services Access to Transportation Choices Climate Resiliency, Carbon Footprint and Air Quality Adaptive Organization Infrastructure Quality and Reliability Usage, Condition and Quality of Public Lands Financial Health Outside Investment Local Food System Vitality Equity in Delivery of City Services Smart City Ecosystem Environmental Justice Civic Engagement Greening Facilities Renewable Resource Usage and Waste Reduction City Team Engagement Fleet and Systems With the adoption of the Priority Based Budgeting methodology, the City Council's Strategic Priorities assume a pivotal role in resource allocation decisions, guiding the budget development process for future fiscal years.
Long-term financial planning: In June 2024, the City adopted the 2024-2026 biennial budget, reflecting its unwavering commitment to strategic financial management, promoting financial stability, growing the economy, and enhancing the quality of life for all Riverside residents. The budget is balanced year over year, allowing for robust investments in public safety, housing, homelessness response, parks and library i mprovements, funding for the arts, and community events – everything that makes Riverside a great place to live, work, play, and raise a family. As part of this biennial budget process, the City updates the second year of the budget before the beginning of the fiscal year. An update to the second year of an adopted biennial budget is necessary to ensure the City is proactive and responsive to financial and operational challenges. Amendments to the second fiscal year are typically minor and focus on the following:
Reviewing and adjusting forecasts of major revenue sources. Incorporating the financial impact of City Council actions taken during the fiscal year. Addressing new and significant changes in the operating needs of City departments. Reviewing and re-prioritizing capital project funding.
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 a lso conducted a statistically valid Quality of Life survey of Riverside residents measuring satisfaction with City services and iv
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 o f Riverside is well-positioned to meet future challenges and enhance the quality of life for all its residents.
Alongside the City's strategic priorities, the following budget priorities were fundamental in the decision-making process during budget development:
1. Financial Stability: Ensuring the City's fiscal health and resilience by responsibly managing short and long-term finances. This priority involves setting the appropriate cost recovery f or city s ervices currently s ubsidized by g eneral revenues, identifying new revenue sources through economic growth and innovative solutions, and addressing critical needs in a responsible and sustainable manner.
2. Public Safety: Prioritizing the safety and well-being of residents by allocating resources to law enforcement, fire protection, and community safety. This includes investing in crime prevention and response capabilities to enhance public safety outcomes.
3. Housing & Homelessness: Addressing the housing needs of residents and mitigating homelessness through strategic investments in affordable housing, supportive services, and homeless prevention programs. This priority focuses on providing shelter, supportive housing, and pathways to stable housing for vulnerable populations.
4. City Infrastructure: Investing in the maintenance, improvement, and expansion of essential infrastructure systems such as transportation, parks, and public facilities. This includes repairing aging infrastructure and promoting sustainable infrastructure development to support the City 's growth and quality of life.
5. Growing the City's Economy: Cultivating robust economic growth, job creation, and business development opportunities to fortify t he City's financial prosperity a nd vitality. This priority e ntails nurturing an environment conducive to business success, attracting fresh investments, bolstering local enterprises, and championing initiatives for workforce advancement. By fostering economic expansion, this priority not only enriches the livelihoods of residents but also amplifies revenue streams for the City, ensuring sustainable financial strength and resilience.
The City's amended FY 2025-26 budget totals $1.53 billion, including both operating costs and capital investments, with the General Fund’s amended budget amounting to $382.16 million. The General Fund budget is balanced and incorporates planned contributions to the Section 115 Trust consistent with the City's long-term financial strategy. Per City Council action in relation to the FY 2022-23 year-end financial report, $35 million was reserved to offset future Section 115 Trust contributions and alleviate pressure on the General Fund budget, while ensuring the desired level of contributions to the Trust. The use of the Section 115 Trust Set-Aside funds is programmed in the five-year plan to facilitate the planned contributions throughout that period. In future years, the Section 115 Trust may be used to smooth fluctuations in required CalPERS unfunded accrued liability (UAL) payments, shielding the budget from fiscal shocks and preventing drastic operational adjustments.
Property and sales taxes are the City's largest revenue sources, making up about 52% of total budgeted revenues. The City experienced substantial property tax and sales tax growth driven by the COVID-19 economy. While property tax revenue is anticipated to maintain growth at a steady pace, rapidly changing federal policies combined with inflation, which continues to exceed the Federal Reserve's 2% target, have hindered consumer and business spending and impacted sales tax revenue growth for the City. The amended FY 2025-26 budget projects a modest increase in sales tax, with a return to more typical growth expected as interest rates are anticipated to continue to decline in FY 2025-26. Additionally, new revenue sources, such as recently a dopted adjustments to developer fees and charges and the cannabis tax, are expected to help General Fund revenues keep pace with rising costs.
American Rescue Plan Act (A RPA): O n March 11, 2021, President Biden signed into law the $1.9 trillion American Rescue Plan Act (ARPA), which included sending checks to families and offering small business support to stimulate demand and address the country’s high unemployment. 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 v
received in June 2021 and $36.8 million received in June 2022. The City used the funds to best support the needs of the community in alignment with specified statutory categories, including:
1. To respond to the COVID-19 public health emergency or its negative economic impacts;
2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the recipient that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work;
3. For the provision of government services, to the extent of the reduction in the revenue of such recipients due to the COVID-19 public health emergency , relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; and
4. To make necessary investments in water, sewer, or broadband infrastructure.
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 December 10, 2024, the City Council approved the final reallocation of ARPA funding whereby all unexpended funds were reallocated to the Provision of Government Services, supported by qualifying public safety expenditures, to allow the City to safely m eet the December 31, 2024, obligation deadline for all unobligated funds and mitigate the risk of funding loss. Below is a consolidation of the final allocation of ARPA funds by expenditure category.
1. Public Health $ 1,430,147 %1.94
2. Negative Economic Impacts 13,533,876 %18.40
3. Public Health Negative Economic Impacts: Public Sector Capacity 400,000 %0.54
4. Premium Pay - %-
5. Infrastructure - %-
6. Revenue Replacement 58,108,463 %79.02
7. Administration 62,703 %0.09
Total $ 73,535,189 %100.00
The Final Rule was issued on January 6, 2022, and became effective on April 1, 2022. Some key changes include:
The final rule offers a standard allowance for revenue loss of $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation.
In some cases, enumerated eligible uses included in the interim f inal rule under responding to the public health emergency h ave been re- categorized in the organization of the final rule to enhance clarity. In addition to programs and services, the final rule clarifies that recipients can use funds for capital expenditures that support an eligible COVID- 19 public health or economic response.
The final rule presumes that an expanded set of households and communities are “impacted” or “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 enumerated eligible uses available for these communities as part of COVID-19 public health and economic response eligible in all impacted communities and making certain community development and neighborhood revitalization activities vi
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 the 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 are permitted to use SLFRF funds in accordance with the 2022 Final Rule.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting (Program) to the City for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. This was the thirty-eighth consecutive year that the City has received this prestigious award. The City received this award for publishing an easily readable and efficiently organized ACFR that satisfied both Generally Accepted Accounting Principles (GAAP) and applicable legal requirements. The award is valid for a period of one year only. We believe that our current ACFR continues to meet the Program’s requirements, and we are submitting it to the GFOA again this year.
The Government Finance Officers Association awarded an Outstanding Achievement in Popular Annual Financial Reporting to the City for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2024. The City received this award for the eighth time for the June 30, 2024 report. This is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. The award is valid for a period of one year only. We believe that our current PAFR continues to meet the Program's requirements, and we are submitting it to the GFOA again this year.
The City r eceived the GFOA’s Distinguished Budget Presentation Award for its 2024-2026 Biennial Budget document, which covers the fiscal years commencing on July 1, 2024, and concluding on June 30, 2026. To earn this distinguished recognition, a governmental unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan, and 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
Chief Financial Officer
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The G overnment F inance Officers Association of t he United States and Canada ( GFOA) awarded a Certificate o f
Achievement for Excellence in Financial Reporting to the City of Riverside f or o ur Annual Comprehensive Financial R eport for the fiscal year ended June 30, 2024.
In o rder t o be awarded a Certificate of A chievement, a governmental unit m ust p ublish an easily r eadable a nd efficiently organized Annual Comprehensive Financial Report, whose contents co nform to p rogram standards. Such r eports must s atisfy b oth generally accepted accounting principles and applicable legal requirements.
A Certificate of A chievement is valid for a p eriod of one year only. W e believe our c urrent r eport c ontinues to m eet the Certificate of A chievement P rogram requirements, a nd w e are submitting it t o GFOA t o determine its eligibility for another certificate.
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LEGISLATIVE OFFICIALS
Patricia Lock Dawson ...................................................................... Mayor Philip Falcone ................................................... Councilmember – Ward 1 Clarissa Cervantes ........................................... Councilmember – Ward 2 Steven Robillard ............................................... Councilmember – Ward 3 Chuck Conder .................................................. Councilmember – Ward 4 Sean Mill ........................................................... Councilmember – Ward 5 Jim Perry .......................................................... Councilmember – Ward 6 Steve Hemenway ............................................. Councilmember – Ward 7
CITY OFFICIALS
Mike Futrell ........................................................................... City Manager* Rafael Guzman ..................................................... Assistant City Manager Kris Martinez ......................................................... Assistant City Manager Edward Enriquez ......................... Assistant City Manager, CFO/Treasurer Donesia Gause ..........................................................................City Clerk* Rebecca McKee-Reimbold ...................................... Interim City Attorney* David Garcia ........................................ General Manager - Public Utilities Larry V. Gonzalez ............................................................... Chief of Police Lee Withers ....................................................... General Services Director Erin Christmas .................................................................... Library Director Pamela Galera ................. Parks, Recreation & Community Svcs Director Kristie Thomas ....................................................... Chief Financial Officer Rene Goldman ............................................... Human Resources Director George Khalil ....................................................... Chief Innovation Officer Gilbert Hernandez ................................................... Public Works Director Steve McKinster .......................................................................... Fire Chief Robyn Peterson .............................................................. Museum Director Jennifer Lilley ...................Community & Economic Development Director *Appointed by City Council
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CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Riverside, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Riverside (the City), as of and for the year ended June 30, 2025, 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, 2025, 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 opinions.
Emphasis of Matter
Restatement
As described in Note 25 to the financial statements, the City restated the governmental activities, business-type activities beginning net position, the Water Fund, Electric Fund, and Sewer Fund beginning net position, and the General Fund, Capital Outlay Fund, and Non- Major Governmental Fund beginning fund balance. Our opinions are not modified with respect to this matter.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 1 Honorable Mayor and Members of the City Council
City of Riverside, California
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten tional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
· Exercise professional judgment and maintain professional skepticism throughout the audit. · Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. · Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 2 Honorable Mayor and Members of the City Council
City of Riverside, California
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios of the pension plans, and schedules of pension plan contributions and schedule of changes in total OPEB liability and related ratio be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual non-major fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS.
In our opinion, the combining and individual non-major fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic 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. 3 Honorable Mayor and Members of the City Council
City of Riverside, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
December 23, 2025
4 Management's Discussion and Analysis
(Unaudited)
As management of the City, we offer this narrative overview and analysis of financial activities for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal, which can be found on page i of this report.
All amounts, unless otherwise indicated, are expressed in thousands of dollars (0,000).
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains certain supplementary information.
Government-wide financial statements - The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, liabilities, and deferred inflows and outflows of resources, with the difference reported as net position. Over time, increases or decreases in the City ’s net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements distinguish functions of the City t hat are principally s upported by t axes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, highways and streets, culture and recreation, and interest on long-term debt and fiscal charges. The business-type activities of the City i nclude Electric, Water, Sewer, Airport, Refuse, Transportation, Public Parking, and Civic Entertainment.
The government-wide financial statements include the activities of the City and three blended component units, which consist of the Riverside Housing Authority, Riverside Public Financing Authority, and the Riverside Municipal Improvements Corporation. Although legally s eparate, these entities function for all practical purposes as departments of the City and therefore have been blended as part of the primary government. The Successor Agency to the Redevelopment Agency of the City of Riverside (Successor Agency) is also included as a fiduciary component unit since it would be misleading to exclude the Successor Agency due to the nature and significance of the relationship between the City and the Successor Agency. The activity of the Successor Agency is reported with the City’s fiduciary funds, which are 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 21 - 22 of this report.
Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental, proprietary, and fiduciary. 5 Governmental funds - Governmental funds a re used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year.
It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Reconciliations to facilitate this comparison are provided for both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances. The major reconciling items relate primarily 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 fourteen 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 eleven 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 - 97 in this report.
The City adopted an annual appropriated budget for its General Fund for the year ended June 30, 2025. A budgetary comparison statement has been provided to demonstrate compliance with this budget.
The governmental fund financial statements can be found on pages 23 - 26 of this report.
Proprietary funds - The City maintains two different types of proprietary funds, enterprise and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for Electric, Water, Sewer, Airport, Refuse, Transportation, Public Parking, and Civic Entertainment services. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for self-insured insurance programs, central stores, and its fleet of vehicles. Because these services predominantly b enefit governmental rather than business-type functions, they h ave been included within governmental activities in the government-wide financial statements. Internal service funds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting.
Proprietary funds provide the same type of information as the government-wide financial statements (business-type activities), only in more detail. The proprietary fund financial statements provide separate information for the Electric, W ater, and Sewer operations, all of which are considered to be major funds of the City . The five remaining proprietary f unds noted above are combined into a single, aggregated presentation. All internal service funds are also combined into a single, aggregated presentation in the proprietary f und financial statements. Individual fund data for the non-major enterprise funds and the internal service funds is provided in the form of combining statements and can be found on pages 99 - 107 in this report.
The basic proprietary fund financial statements can be found on pages 28 - 32 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 statements 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 pages 33 - 34 of this report. 6 Notes to Basic Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government- wide and fund financial statements. The Notes to Basic Financial Statements begin on page 35 of this report.
Government-wide Financial Analysis
The following table presents a summarization of the City’s assets, liabilities, deferred inflows and outflows of resources, and net position for its governmental and business-type activities. As noted earlier, a government’s net position may serve over time as a useful indicator of its financial position. (in thousands)
Governmental
Activities
Business-Type
Activities Total
2025 2024 2025 2024 2025 2024
Assets:
Current and other assets $ 756,549 $ 704,544 $ 1,016,689 $ 999,318 $ 1,773,238 $ 1,703,862 Capital, lease, and subscription assets, net 1,311,501 1,350,155 1,981,225 1,963,201 3,292,726 3,313,356 Total assets 2,068,050 2,054,699 2,997,914 2,962,519 5,065,964 5,017,218 Deferred Outflows of Resources 128,993 174,420 58,633 63,486 187,626 237,906 Liabilities:
Current liabilities 151,247 177,907 149,359 151,896 300,606 329,803 Long-term liabilities 867,597 831,959 1,501,380 1,541,518 2,368,977 2,373,477 Total liabilities 1,018,844 1,009,866 1,650,739 1,693,414 2,669,583 2,703,280 Deferred Inflows of Resources 19,273 22,521 124,297 127,366 143,570 149,887 Net Position
Net investment in capital assets 1,176,467 1,206,876 809,305 785,422 1,985,772 1,992,298 Restricted - Expendable 297,802 230,945 136,001 120,525 433,803 351,470 Restricted - Nonexpendable 1,758 1,676 - - 1,758 1,676
Unrestricted/(deficit) (317,101) (242,765) 336,205 299,278 19,104 56,513 Total net position $ 1,158,926 $ 1,196,732 $ 1,281,511 $ 1,205,225 $ 2,440,437 $ 2,401,957 The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2,440,437 at June 30, 2025, an increase of $38,480 from June 30, 2024.
The City’s net position reflects its investment in capital assets (i.e., land, buildings, machinery, equipment, and infrastructure), net of any r elated debt (net investment in capital assets) that is still outstanding and 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 18% 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, $(317,101) net deficit is held by the governmental activities and $336,205 is held by the business-type activities. 7 Unrestricted net position in the amount of $19,104, a net position decrease of 66% from the prior year, represents the change in resources available to fund City programs for citizens and debt obligations to creditors. The decrease is primarily the result of restatements related to various operational and maintenance costs that were included in construction in progress from previous years, prepaid expenses that should have be recognized as expenses in previous years, and deposits that should have been recognized as revenues in previous years. See Note 25 for additional details.
Governmental activities decreased the City’s net position by $37,806 to $1,158,926 for the year ended June 30, 2025.
The following page presents a condensed summary of activities of the City’s governmental and business-type operations for the period ended June 30, 2025, with the prior fiscal year presented for comparative purposes. Also included in the following analysis are revenue and expense graphs to aid in understanding the results of the current year’s activities.
(Balance of page intentionally left blank)
8 (in thousands)
Governmental
Activities
Business-Type
Activities Total
2025 2024 2025 2024 2025 2024
Revenues:
Program revenues:
Charges for services $ 46,326 $ 47,529 $ 709,660 $ 654,660 $ 755,986 $ 702,189 Operating grants and contributions 76,067 50,327 4,923 3,637 80,990 53,964 Capital grants and contributions 57,771 31,064 23,981 20,343 81,752 51,407 General revenues:
Sales taxes 176,256 174,300 - - 176,256 174,300
Property taxes 94,638 90,383 - - 94,638 90,383
Other taxes and fees 50,686 47,690 - - 50,686 47,690
Intergovernmental, unrestricted 1,199 1,097 - - 1,199 1,097 Investment income 33,933 23,089 43,336 31,514 77,269 54,603 Miscellaneous 4,234 6,193 14,864 8,392 19,098 14,585
Total revenues 541,110 471,672 796,764 718,546 1,337,874 1,190,218 Expenses:
General government 95,866 108,301 - - 95,866 108,301
Public safety 282,364 275,631 - - 282,364 275,631
Highways and streets 107,629 55,000 - - 107,629 55,000
Cultural and recreation 73,905 56,685 - - 73,905 56,685 Interest on long-term debt and fiscal
charges 17,483 17,607 - - 17,483 17,607
Electric - - 418,293 409,674 418,293 409,674
Water - - 87,978 80,452 87,978 80,452
Sewer - - 70,901 69,465 70,901 69,465
Airport - - 2,629 2,438 2,629 2,438
Refuse - - 37,557 35,717 37,557 35,717
Transportation - - 5,892 5,648 5,892 5,648
Public Parking - - 8,467 8,046 8,467 8,046
Civic Entertainment - - 25,310 31,557 25,310 31,557
Total expenses 577,247 513,224 657,027 642,997 1,234,274 1,156,221 Increase (decrease) in net position (36,137) (41,552) 139,737 75,549 103,600 33,997 Transfers 41,332 43,554 (41,332) (43,554) - -
Changes in net position 5,195 2,002 98,405 31,995 103,600 33,997 Net Position:
Beginning of year, as previously stated 1,196,732 1,194,730 1,205,225 1,170,614 2,401,957 2,365,344 Error Correction (43,001) - (22,119) 2,616 (65,120) 2,616 Beginning of year, as restated 1,153,731 1,194,730 1,183,106 1,173,230 2,336,837 2,367,960 End of year $ 1,158,926 $ 1,196,732 $ 1,281,511 $ 1,205,225 $ 2,440,437 $ 2,401,957 9 Governmental Activities - The year-to-year change in net position for governmental activities is a decrease of $37.8 million. The decrease is primarily the result of a $43 million restatement related to various operational and maintenance costs that were included in construction in progress in previous years, prepaid expenses that should have been recognized as expenses in previous years, and deposits that should have been recognized as revenues in previous years. See Note 25 for additional details. 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 aggregate net increase was approximately $69.4 million, or 15%. This increase is largely attributable to the $52.4 million increase in program revenues, primarily due to higher levels of grant activities and contributions. An $11 million increase in rental and investment income, resulting from economic growth that produced higher interest earnings on investments, also contributed to the overall increase in revenues.
Expenses:
While variances between years exist for the various expense functions, the aggregate net increase was approximately $64.0 million, or 12%. Due to new and ongoing federal and state grant-funded projects, highway and street expenses increased by $53 million and cultural and recreation expenses increased by $17 million. These increases were partially offset by a $12.4 million decrease in general government expenses, largely due to additional expenses in the prior year related to the Simpson v. City class action lawsuit.
Program Revenues and Expenses - Governmental Activities - Fiscal Year Comparison 2025 vs. 2024 10 Revenues by Source - Governmental Activities - Fiscal Year Comparison 2025 vs. 2024 Business-Type Activities - The year-to-year change in net position for business-type activities is an increase of $76.3 million. Included in the change is a decrease of $22.1 million due to restatements related to various operational and maintenance costs that were included in construction in progress in previous years, prepaid expenses that should have been recognized as expenses in previous years, and deposits that should have been recognized as revenues in previous years. See Note 25 for additional details. 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 $55.0 million, or 8%. This increase is primarily attributed to increases of $45.8 million in the Electric Fund, $14.6 million in the Water Fund, and $4 million in the Refuse Fund, largely d ue to higher consumption levels and rate plan increases. Included in the total year-to-year change for charges for services is a decrease of approximately $ 7.2 million in the Civic Entertainment Fund, primarily attributable to a new lease agreement for the Fox Theater under which the lessee assumed responsibility for ongoing operations and the associated financial risk. Additionally, investment income increased $11.8 million from the prior year as a result of favorable economic conditions, which contributed to the overall change in net position for business-type activities. Overall, aggregate expenses increased by $14.0 million, or 2.2%. The Electric, Water, and Sewer Funds had increases in operating expenses of $8.6 million, $7.5 million, and $1.4 million, respectively. The increase in these funds is primarily attributable to increases in personnel costs, general related costs, and depreciation expenses. Additionally, the Electric Fund incurred an increase in the decommissioning liability e xpense. Included in the overall change is a decrease of approximately $6.2 million in the Civic Entertainment Fund, primarily attributable to a new lease agreement for the Fox Theater under which the lessee assumed responsibility for ongoing operational and maintenance costs. 11 Revenues by Source - Business-Type Activities - Fiscal Year Comparison 12 Financial Analysis of the City's Funds
Governmental funds - The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources.
Such information is useful in assessing the City ’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
The following table summarizes the balance sheets of the City’s General Fund, Capital Outlay Fund, and Non-Major Governmental Funds. As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. (in thousands)
General Fund Capital Outlay Fund
General Debt Service
Fund
Non-Major
Governmental Funds
Total
Governmental Funds
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
Assets $ 387,603 $ 346,067 $ 103,547 $ 107,710 $ 58,123 $ 13,877 $ 155,679 $ 185,359 $ 704,952 $ 653,013 Liabilities $ 45,177 $ 40,433 $ 4,209 $ 8,553 $ 556 $ 876 $ 37,871 $ 67,553 $ 87,813 $ 117,415 Deferred inflows of resources 15,461 17,776 3,059 842 - - 60,329 52,156 78,849 70,774 Fund Balances
Nonspendable 6,826 3,963 11 - - - 1,809 1,832 8,646 5,795 Restricted 76,851 60,166 42,304 40,963 57,567 13,001 55,670 63,818 232,392 177,948 Committed 145,754 138,061 20,960 23,365 - - - - 166,714 161,426 Assigned 51,956 33,579 33,004 33,987 - - - - 84,960 67,566 Unassigned 45,578 52,089 - - - - - - 45,578 52,089
Total fund balances 326,965 287,858 96,279 98,315 57,567 13,001 57,479 65,650 538,290 464,824 Total liabilities, deferred
inflows, and fund
balances $ 387,603 $ 346,067 $ 103,547 $ 107,710 $ 58,123 $ 13,877 $ 155,679 $ 185,359 $ 704,952 $ 653,013 As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $538,290, an increase of $73,466 compared to the prior year. Additionally, 2% of the fund balance, or $8,646, is nonspendable, which comprises the portion of fund balance that cannot be spent due to form. $232,392, or 43%, of fund balance is restricted, which represents the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation, or limitations imposed by c reditors or grantors. Committed fund balance of $166,714, or 31% o f the fund balance, was set aside for economic contingencies and other purposes. Committed for economic contingencies consists of 20% of the 2025-26 General Fund adopted expenditure budget of $382 million, or $76,431; $5,000 f or General Fund – Measure Z; $11,706 for future capital projects; $5,000 for technology related projects; $16,630 for Water Fund transfers pending the outcome of litigation; $336 for mine reclamation; $30,467 for the section 115 trust to cover future pension costs; $184 for public works equipment, and $20,960 for capital outlay. A total of $84,960, or 16%, 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, $45,578, or 8%, is unassigned, meaning it is available for spending at the City’s discretion. The City’s governmental funds reported combined total assets of $704,952 at June 30, 2025, an increase of $51,939 compared to the prior year. Liabilities and deferred inflows of resources amounted to $166,662, a decrease of $21,527 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 $326,965, compared to $287,858 in the prior year. The increase in fund balance is primarily due to an increase in taxes of $10.6 million, rental and investment income of $6.8 million, and a larger increase of transfers-in totaling $39.4 million compared to the increase of transfers-out totaling $12.6 million. The Capital Outlay Fund is used to account for the acquisition or construction of major capital facilities. The Capital Outlay fund decreased by approximately $2 million, primarily attributable to the timing of expenditures and related grant revenue. The General Debt Service Fund accounts for the accumulation of resources and payment of long-term debt principal and interest. The General Debt Service fund balance is $57,567, compared to $13,001 in the prior year. The increase is primarily due to an increase in funding from the issuance of long-term debt totaling $58.7 million to fund capital projects. The Non-Major Governmental Funds fund balance decreased to $57,479, from $65,650 in the prior 13 year, primarily due to the net effect of a $20.4 million increase in intergovernmental revenue alongside an increase of $32 million in net transfers-out.
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 $214,943, $34,165, and $76,899, respectively. The unrestricted net position for the Electric, Water, and Sewer Funds in the prior year was $183,511, $20,445, and $84,749, respectively. The increase in unrestricted net position of the Electric and Water Funds, in the amount of $31,432 and $13,720, respectively, is primarily due to an increase in consumption and rate plan increases related to charges for services. The decrease in unrestricted net position for the Sewer Fund totaling $(7,850) is primarily a result of restatements related to operational and maintenance costs that were incorrectly included in infrastructure and CIP, deposits that should have been recognized as revenue in previous years, and revenues that should have been recognized as deposits in previous years. See Note 25 for additional details.
Electric Water Sewer
Non-Major Enterprise
Funds
Total Business-Type
Funds
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
Assets $ 1,422,541 $ 1,379,360 $ 738,450 $ 743,314 $ 640,110 $ 648,205 $ 203,516 $ 193,873 $ 3,004,617 $ 2,964,752 Deferred outflows of resources 31,817 34,671 14,025 15,230 6,708 7,361 6,083 6,224 58,633 63,486 Liabilities 881,276 889,826 309,636 315,367 363,520 385,967 103,010 104,486 1,657,442 1,695,646 Deferred inflows of resources 12,526 15,671 100,838 103,504 1,066 1,466 9,867 6,725 124,297 127,366 Net position
Net investment in capital assets 239,920 230,789 292,595 304,422 193,201 174,764 83,589 75,447 809,305 785,422 Restricted 105,693 94,234 15,241 14,805 12,132 8,620 2,935 2,866 136,001 120,525 Unrestricted/(deficit) 214,943 183,511 34,165 20,445 76,899 84,749 10,198 10,573 336,205 299,278 Total net position $ 560,556 $ 508,534 $ 342,001 $ 339,672 $ 282,232 $ 268,133 $ 96,722 $ 88,886 $ 1,281,511 $ 1,205,225 (Balance of page intentionally left blank)
14 General Fund Budgetary Highlights
Original
Budget
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues $ 363,810 $ 360,755 $ 383,174 $ 22,419
Expenditures:
Current:
General government 38,868 52,975 29,348 23,627
Public safety 230,889 247,420 236,332 11,088
Highways and streets 32,212 34,732 28,328 6,404
Culture and recreation 49,746 52,390 47,147 5,243
Capital outlay 9,594 17,667 17,699 (32)
Debt service - - 2,769 (2,769)
Total expenditures 361,309 405,184 361,623 43,561
Excess/(deficiency) of revenues over/(under) expenditures 2,501 (44,429) 21,551 65,980 Other Financing Sources/(Uses): (6,330) 7,369 15,821 8,452 Net change in fund balance (3,829) (37,060) 37,372 74,432 Fund Balance:
Beginning of year 287,858 287,858 287,858 -
Error correction - - 1,735 1,735
End of year $ 284,029 $ 250,798 $ 326,965 $ 76,167
The reason for the decrease in final budgeted revenues compared to the Original Budget is primarily due to a $5.1 million negative budget adjustment for updated sales and use tax projections, which was partially offset by a $2.1 million positive adjustment in increased revenue from other agencies and other miscellaneous revenues. The Final Budget for expenditures is higher than the Original Budget primarily due to prior year encumbrances and carryovers of $37 million, as well as supplemental appropriations approved by the City Council during the fiscal year. Supplemental appropriations approved by City Council include, but are not limited to, a $1.5 million fiscal impact from recent labor negotiations, $4 million for increased public safety overtime, $1 million in legal costs for various cases, and a $23 million reallocation of various projects that were formerly included in the American Rescue Plan Act Expenditure Plan to the General Fund, offset by increased other financing sources (in the form of transfers in). These increased appropriations were partially offset by decreased budget adjustments made to balance the budget.
Actual revenues exceeded Final Budget projections due to higher-than-anticipated revenues from numerous sources, such as sales tax, property t ax, interest earnings, and administrative civil penalty revenues. These revenue increases were partially offset by lower-than-budgeted actual revenues from business license tax and development fees and charges. Actual expenditures were less than final budgeted amounts by approximately $43.6 million. This is primarily attributable to fiscal year-end encumbrances totaling $37.8 million and other unexpended funds at fiscal year-end, some of which are expected to be carried over to the next fiscal year.
15 Capital Assets and Debt Administration
Capital Assets - The City’s capital assets, excluding lease and subscription assets, totaled $3,284,069 (net of accumulated depreciation) as of June 30, 2025, for governmental and business-type activities. 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 decreased b y $26,110, comprised of a decrease o f $43,795 f or governmental activities and an increase of $17,685 for business-type activities. The decrease in governmental activities is primarily the result of a $43 million restatement related to various operational and maintenance costs that were included in construction in progress from previous years that should have been recognized as expense in previous years. The increase in business-type activities is primarily attributable to $111,956 in additions to construction in progress, offset by a $17,084 restatement related to various operational and maintenance costs from previous years that should have been recognized as expense, and current year depreciation expense totaling $78,800.
Major capital improvements during the current fiscal year included ongoing projects for governmental activities consisting primarily of roads totaling $27.8 million, improvements to various citywide parks and buildings totaling $13.8 million, and purchases of vehicles and/or heavy e quipment totaling $15.9 million. Capital improvements in business-type activities included $59.5 million in Electric Utility capital improvements primarily related to transformer replacements, improvements to communication networks, underground improvements, metering infrastructure, purchases of vehicles and/or heavy equipment, and major streetlight projects; $19.8 million in Water Utility projects primarily related to main replacements, system expansion, transmission pipelines, distribution facilities, purchases of vehicles and/or heavy equipment, and water well projects; and $23.7 million in Sewer capital improvements primarily related to pump and lift station additions/upgrades, sewer infrastructure rehabilitations, water main replacements, and purchases of vehicles and/or heavy equipment.
Additional information on the City’s capital assets can be found in Note 4 on page 49 of this report.
City of Riverside's Capital Assets
(net of depreciation)
(in thousands)
Governmental
Activities
Business-Type
Activities Total
2025 2024 2025 2024 2025 2024
Land $ 382,049 $ 377,534 $ 103,515 $ 103,422 $ 485,564 $ 480,956 Construction in progress 43,571 64,546 142,357 165,714 185,928 230,260 Buildings 95,024 97,507 431,007 437,260 526,031 534,767 Improvements other than buildings 78,892 84,305 1,231,316 1,191,328 1,310,208 1,275,633 Machinery and equipment 51,818 44,944 47,548 37,512 99,366 82,456 Intangibles - - 24,418 27,240 24,418 27,240
Infrastructure 652,554 678,867 - - 652,554 678,867
Total $ 1,303,908 $ 1,347,703 $ 1,980,161 $ 1,962,476 $ 3,284,069 $ 3,310,179 (Balance of page intentionally left blank)
16 Lease and Subscription Assets - T he City's investment in lease and subscription assets for governmental and business-type activities as of June 30, 2025, amounted to $8,657 ( 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 4 on page 49 of this report.
City of Riverside's Lease and Subscription Assets
(net of amortization)
(in thousands)
Governmental
Activities
Business-Type
Activities Total
2025 2024 2025 2024 2025 2024
Land $ - $ - $ 432 $ 89 $ 432 $ 89
Buildings 955 144 50 124 1,005 268
Machinery and equipment 477 435 379 218 856 653
SBITA 6,161 1,873 203 294 6,364 2,167
Total $ 7,593 $ 2,452 $ 1,064 $ 725 $ 8,657 $ 3,177
(Balance of page intentionally left blank)
17 Long-term debt - At the end of the current fiscal year, the City had total long-term debt outstanding of $2,058,590, which includes bonded debt of $1,811,234.
City of Riverside's Long-Term Debt
(in thousands)
Governmental
Activities
Business-Type
Activities Total
2025 2024 2025 2024 2025 2024
Lease revenue bonds $ 101,590 $ 61,163 $ 5,271 $ 5,688 $ 106,861 $ 66,851 General obligation bonds - 1,756 - - - 1,756
Pension obligation bonds 304,027 313,830 85,888 95,253 389,915 409,083 Certificates of participation 69,788 75,067 21,770 23,191 91,558 98,258 Revenue bonds - - 1,222,900 1,268,727 1,222,900 1,268,727 Arbitrage payable - - 3,862 673 3,862 673
Notes payable - - 32,957 36,525 32,957 36,525
Contracts payable - - 931 931 931 931
Financed purchased 12,635 16,152 5,298 1,134 17,933 17,286 Compensated absences 40,531 34,445 14,886 12,350 55,417 46,795 Claims and judgments 120,214 101,617 - - 120,214 101,617 Landfill capping - - 8,572 8,944 8,572 8,944
Lease liability 1,440 586 810 443 2,250 1,029
SBITA liability 5,102 1,119 118 241 5,220 1,360
Total $ 655,327 $ 605,735 $ 1,403,263 $ 1,454,100 $ 2,058,590 $ 2,059,835 The City’s total long-term debt decreased by $(1,245) or 0.06% during the current fiscal year. The net decrease reflects debt payments made during the current year.
The City’s Water Utility maintains “AA+" ratings from both S&P Global Ratings and Fitch for its revenue bonds, while the Electric Utility maintains “AA-” ratings from both rating agencies for its fixed-rate bonds. S&P Global Ratings also affirmed the City’s "AA" long-term and underlying ratings on its outstanding general obligation and pension-refinancing debt, as well as its "AA-" ratings on existing appropriation obligations, except for Series 2019A, which remains rated "A".
State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its total adjusted assessed valuation. The legal debt limit was $1,068,583 at June 30, 2025, which applies only to general obligation debt. At June 30, 2025, the City had no outstanding general obligation debt, resulting in available legal debt capacity of $1,068,583.
Additional information on the City’s long-term debt can be found in Note 8, beginning on page 55 of this report. 18 Economic Factors and Next Year's Budget
On June 17, 2025, the City C ouncil adopted the amended FY 2025-26 Budget totaling $1.53 billion in citywide funding, including $158.1 million for capital investments.
The amended FY 2025-26 Budget included a more cautious approach for the General Fund and Measure Z due to continued uncertainty regarding the national economy and potential impacts on the local economy. Revenue projections for the 2024–2026 Biennial Budget were based on performance data from early spring 2024. However, the city experienced a slowdown compared to prior years, particularly in sales tax revenue, and the City’s sales tax consultant, HdL, downgraded growth for FY 2025-26. Additionally, national economic uncertainty and the direction of the economy, including the effects of rapidly changing federal policies, could impact the City’s financial outlook in FY 2025-26 and beyond. This uncertainty may result in reduced consumer and business spending and has made forecasting and planning for next fiscal year more challenging than in recent years. Other factors influencing the FY 2025-26 Budget include recently approved agreements with various City b argaining units, increased pension unfunded liability c osts, and potential decreases in other revenue sources, which have increased financial pressures and are reflected in the budget amendment.
While significant reserve balances are available to help offset any r evenue downturn, reserve balances are generally b eing preserved in the event the City experiences a more severe economic downturn, in order to protect core city services. Relatively minor adjustments to expenditures were sufficient to balance the General Fund budget and guard against possible budget shortfalls in the 2025-26 fiscal year.
The budget also continues to plan for the ongoing litigation of the Water Fund transfer to the General Fund (W ater GFT). Water GFT revenue of $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 a $9 million General Fund contribution to the Section 115 Trust.
The adopted budget incorporates rate increases for the Electric, Water, and Refuse Funds consistent with the five-year rate plans approved by the City Council in 2023. Capital projects to maintain utility infrastructure are also funded for the Electric, Water, and Sewer Funds.
Rising retirement costs are a key consideration in the City’s long-term financial planning and are factored into ongoing efforts to maintain fiscal health. CalPERS investment returns have fluctuated significantly over the last ten years, leading to swings in funding levels reported in CalPERS actuarial reports and projected payments toward the unfunded accrued liability (UAL). The CalPERS discount rate, comparable to an assumed annual rate of return on investments, is 6.8%. As of June 30, 2025, CalPERS reported a preliminary net return on investments of 11.6% for the 12-month period ending on that date, an improvement over the prior fiscal year net investment return of 9.3%. Total fund annualized returns as of June 30, 2025, stood at 8.0% for the 5-year period, 7.1% for the 10-year period, 6.7% for the 20-year period, and 7.6% for the 30-year period.
CalPERS transitioned to collecting employer contributions for the plan's unfunded liability as fixed dollar amounts effective 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, 2025, the trust holds $84 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 $15.4 million in FY 2024-25 and $29.1 million in the FY 2025-26 amended budget. The funded status for each of the Safety and Miscellaneous Plans is above 85% based on the actuarial report issued in July 2025 for the period ending June 30, 2024.
19 Annual Valuation Report as of June 30, 2023 Annual Valuation Report as of June 30, 2024 Miscellaneous Plan Miscellaneous Plan
Unfunded Liability Payment: $14,084 Unfunded Liability Payment (Prepayment option): $19,588 Funded Status: 86.6% Funded Status 86.9%
Safety Plan Safety Plan
Unfunded Liability Payment (Prepayment option): $15,063 Unfunded Liability Payment (Prepayment option): $19,406 Funded Status: 85.8% Funded Status: 86.2%
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 financial condition. 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.
20 CITY OF RIVERSIDE
STATEMENT OF NET POSITION
JUNE 30, 2025
(amounts expressed in thousands)
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets:
Cash and investments $ 444,301 $ 467,137 $ 911,438
Receivables, net of allowance for uncollectible 153,449 100,983 254,432 Leases receivable 9,605 110,315 119,920
Inventory 11,040 5,024 16,064
Prepaid items 1,053 26,211 27,264
Deposits - 1,962 1,962
Other assets - 1,014 1,014
Internal balances 6,200 (6,200) -
Restricted assets:
Cash and cash equivalents - 241,897 241,897
Cash and investments 129,653 52,856 182,509
Benefit/Conservation Programs receivable - 1,648 1,648
Regulatory assets - 12,154 12,154
Derivative instruments - 590 590
Land and improvements held for resale 1,248 - 1,248
Advances to Successor Agency Trust Fund - 1,098 1,098
Capital assets:
Capital assets, not depreciated 425,620 267,368 692,988 Capital assets, net of depreciation 878,288 1,712,793 2,591,081 Lease and subscription capital assets, net of amortization 7,593 1,064 8,657 Total assets 2,068,050 2,997,914 5,065,964
Deferred Outflows of Resources:
Changes in derivative values 1,718 745 2,463
Deferred charge on refunding 1,039 6,650 7,689
Pension related items 121,591 48,782 170,373
OPEB related items 4,645 2,456 7,101
Total deferred outflows of resources 128,993 58,633 187,626 Liabilities:
Accounts payable and other current liabilities 41,751 41,218 82,969 Unearned revenue 28,664 4,565 33,229
Deposits 10,792 15,087 25,879
Accrued interest 2,128 15,721 17,849
Noncurrent liabilities:
Due within one year
Long-term obligations 21,560 56,333 77,893
Compensated absences 21,350 7,956 29,306
Claims and judgments 21,191 - 21,191
Landfill capping - 559 559
Decommissioning liability - 6,887 6,887
OPEB liability 1,238 616 1,854
Lease liability 321 299 620
SBITA liability 2,252 118 2,370
Due in more than one year
Long-term obligations 466,480 1,322,544 1,789,024
Compensated absences 19,181 6,930 26,111
Claims and judgments 99,023 - 99,023
Landfill capping - 8,013 8,013
Decommisioning liability - 40,078 40,078
Regulatory liability - 10,115 10,115
Derivative instruments 2,809 2,403 5,212
Net pension liability 247,598 90,448 338,046
OPEB liability 28,537 20,338 48,875
Lease liability 1,119 511 1,630
SBITA liability 2,850 - 2,850
Total liabilities 1,018,844 1,650,739 2,669,583
Deferred Inflows of Resources
Change in derivative values - 676 676
Deferred charges on refunding 1,651 517 2,168
Pension related items 1,632 535 2,167
OPEB related items 6,717 3,704 10,421
Lease related items 9,273 118,865 128,138
Total deferred inflows of resources 19,273 124,297 143,570 Net Position:
Net investment in capital assets 1,176,467 809,305 1,985,772 Restricted - Expendable:
Housing 43,321 - 43,321
Debt service 57,567 43,592 101,159
Public works 42,502 - 42,502
Capital projects 58,263 - 58,263
Landfill capping - 2,500 2,500
Programs and regulatory requirements - 82,989 82,989
Economic development 19,298 - 19,298
Unfunded accrued liability 76,851 6,920 83,771
Restricted - Nonexpendable:
Permanent fund principal 1,758 - 1,758
Unrestricted/(deficit) (317,101) 336,205 19,104
Total net position $ 1,158,926 $ 1,281,511 $ 2,440,437
See Notes to Financial Statements
21 CITY OF RIVERSIDE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Program Revenues Net (Expenses) Revenues and Changes in Net Position Primary Government
Expenses
Indirect Expenses
Allocation
Charges for
Services
Operating
Contributions
and Grants
Capital
Contributions
and Grants
Governmental
Activities
Business-Type
Activities Total
Function/Programs
Primary Government:
Governmental Activities:
General government $ 95,866 $ (20,395) $ 16,774 $ 61,194 $ 1,539 $ 4,036 $ - $ 4,036 Public safety 282,364 13,713 16,218 10,968 248 (268,643) - (268,643) Highways and streets 107,629 2,892 6,026 3,412 55,503 (45,580) - (45,580) Culture and recreation 73,905 3,790 7,308 493 481 (69,413) - (69,413) Interest on long-term debt and fiscal charges 17,483 - - - - (17,483) - (17,483) Total governmental activities 577,247 - 46,326 76,067 57,771 (397,083) - (397,083) Business-Type Activities:
Electric 418,293 - 475,608 - 8,745 - 66,060 66,060
Water 87,978 - 96,083 - 2,823 - 10,928 10,928
Sewer 70,901 - 71,953 - 10,894 - 11,946 11,946
Airport 2,629 - 2,235 - 127 - (267) (267)
Refuse 37,557 - 37,436 - - - (121) (121)
Transportation 5,892 - 278 4,923 1,392 - 701 701
Public Parking 8,467 - 11,276 - - - 2,809 2,809
Civic Entertainment 25,310 - 14,791 - - - (10,519) (10,519) Total business-type activities 657,027 - 709,660 4,923 23,981 - 81,537 81,537 Total primary government $ 1,234,274 $ - $ 755,986 $ 80,990 $ 81,752 $ (397,083) $ 81,537 $ (315,546) General Revenues:
Taxes:
Sales taxes 176,256 - 176,256
Property taxes 94,638 - 94,638
Utility users' taxes 35,278 - 35,278
Franchise taxes 6,300 - 6,300
Transient occupancy taxes 9,108 - 9,108
Intergovernmental, unrestricted 1,199 - 1,199
Investment income 33,933 43,336 77,269
Miscellaneous 4,234 14,864 19,098
Transfers 41,332 (41,332) -
Total general revenues and transfers 402,278 16,868 419,146 Change in net position 5,195 98,405 103,600
Net Position:
Beginning of year, as previously stated 1,196,732 1,205,225 2,401,957 Error correction (43,001) (22,119) (65,120)
Beginning of year, as restated $ 1,153,731 $ 1,183,106 $ 2,336,837 End of year $ 1,158,926 $ 1,281,511 $ 2,440,437
See Notes to Financial Statements
22 CITY OF RIVERSIDE
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
General Fund
Capital Outlay
Fund
General Debt
Service Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
Assets:
Cash and investments $ 242,492 $ 73,297 $ 5,641 $ 75,345 $ 396,775 Cash and investments with fiscal agent 76,852 4 52,467 330 129,653 Receivables, net of allowance for uncollectible
Interest 1,365 629 15 489 2,498
Property taxes 1,831 - - 80 1,911
Sales taxes 30,037 - - - 30,037
Utility billed 1,516 - - - 1,516
Utility unbilled 1,971 - - - 1,971
Accounts 6,301 - - 145 6,446
Intergovernmental 4,956 27,199 - 20,497 52,652
Notes - - - 55,022 55,022
Leases receivable 9,605 - - - 9,605
Prepaid items 991 11 - 51 1,053
Due from other funds 2,808 2,407 - 2,647 7,862
Land and improvements held for resale 175 - - 1,073 1,248 Advances to other funds 6,703 - - - 6,703
Total assets $ 387,603 $ 103,547 $ 58,123 $ 155,679 $ 704,952 Liabilities, Deferred Inflows of Resources, and Fund
Balances:
Liabilities:
Accounts payable $ 8,864 $ 3,039 $ 53 $ 8,252 $ 20,208
Accrued payroll 17,651 - - 148 17,799
Retainage payable 64 1,057 - 1,070 2,191
Intergovernmental 194 - - 5 199
Unearned revenue 2,960 113 - 25,591 28,664
Deposits 10,622 - - 120 10,742
Due to other funds 4,822 - - 2,685 7,507
Advances from other funds - - 503 - 503
Total liabilities 45,177 4,209 556 37,871 87,813
Deferred Inflows of Resources:
Unavailable revenue 6,188 3,059 - 60,329 69,576
Lease related items 9,273 - - - 9,273
Total deferred inflows of resources 15,461 3,059 - 60,329 78,849 Fund Balances:
Nonspendable:
Inventories, prepaids, and deposits 991 11 - 51 1,053
Advances and notes 5,660 - - - 5,660
Land and improvements held for resale 175 - - - 175
Permanent fund principal - - - 1,758 1,758
Restricted:
Housing and redevelopment - - - 7,836 7,836
Debt service - - 57,567 - 57,567
Transportation and public works - 42,304 - 39,590 81,894 Other purposes - - - 10,825 10,825
Unfunded accrued liability 76,851 - - - 76,851
Committed:
Economic contingency 81,431 - - - 81,431
Other purposes 64,323 20,960 - - 85,283
Assigned:
General government 11,767 - - - 11,767
Public safety 11,425 - - - 11,425
Highways and streets 4,367 - - - 4,367
Culture and recreation 1,943 - - - 1,943
Continuing projects 22,454 33,004 - - 55,458
Unassigned 45,578 - - (2,581) 42,997
Total fund balances 326,965 96,279 57,567 57,479 538,290 Total liabilities, deferred inflows of resources, and
fund balances $ 387,603 $ 103,547 $ 58,123 $ 155,679 $ 704,952 See Notes to Financial Statements
23 CITY OF RIVERSIDE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
(amounts expressed in thousands)
Total fund balances - governmental funds $ 538,290
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 1,293,482
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 7,576 Deferred outflows on refunding charges are not available resources and, therefore, are not reported on the funds 1,039 Deferred outflows on pension related items 119,234
Deferred outflows on OPEB related items 4,494
Deferred inflows on refunding charges are not available resources and, therefore, are not reported on the funds (1,651) Deferred inflows on pension related items (1,605)
Deferred inflows on OPEB related items (6,513)
Revenue not available to pay for current period expenditures are reported as unavailable revenue in the governmental funds 69,576 Accrued interest payable for the current portion of interest due on various debt issues has not been reported in the governmental funds (2,128) Long-term liabilities, as listed below, are not due and payable in the current period and, therefore, are not reported in the governmental funds Pension obligation bonds (300,475)
Certificates of participation (69,788)
Lease revenue bonds (101,590)
Financed purchase (11,757)
Compensated absences (39,980)
Net pension liability (243,227)
OPEB liability (28,514)
Lease liability (1,424)
SBITA liability (5,102) (801,857)
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 (2,809)
Deferred amount related to the hedgeable portion of derivative instrument 1,718 (1,091) Internal service funds are used by management to charge the costs of insurance, centralized purchasing and fleet management to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position. (59,920) Net position of governmental activities $ 1,158,926
See Notes to Financial Statements
24 CITY OF RIVERSIDE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
General Fund
Capital Outlay
Fund
General Debt
Service Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes $ 321,468 $ - $ 112 $ - $ 321,580
Licenses and permits 12,168 - - 3,141 15,309
Intergovernmental 4,634 37,531 - 83,277 125,442
Charges for services 17,359 - - 2,012 19,371
Fines and forfeitures 2,208 - - - 2,208
Special assessments 615 256 1,236 5,604 7,711
Rental and investment income 22,522 5,732 518 4,341 33,113 Miscellaneous 2,200 213 - 1,792 4,205
Total revenues 383,174 43,732 1,866 100,167 528,939
Expenditures:
Current:
General government 29,348 - - 22,314 51,662
Public safety 236,332 - - 17,287 253,619
Highways and streets 28,328 - - 1,038 29,366
Culture and recreation 47,147 - - 1,640 48,787
Capital outlay 17,699 74,132 - 31,461 123,292
Debt service:
Principal 2,651 1 23,263 159 26,074
Interest and fiscal charges 118 1 16,510 41 16,670
Issuance costs - - 475 - 475
Total expenditures 361,623 74,134 40,248 73,940 549,945 Excess/(deficiency) of revenues
over/(under) expenditures 21,551 (30,402) (38,382) 26,227 (21,006) Other Financing Sources/(Uses):
Transfers in 96,526 43,106 37,446 3,635 180,713
Transfers out (88,626) (14,122) - (36,633) (139,381)
Issuance of long-term debt - - 58,774 - 58,774
Premium on issuance of long-term debt - - 1,735 - 1,735 Proceeds from sale of capital assets 388 - - - 388
Payment to refunding escrow agent - - (15,007) - (15,007) Issuance of debt related to leases and
subscriptions 7,533 7 - - 7,540
Total other financing sources/(uses) 15,821 28,991 82,948 (32,998) 94,762 Net change in fund balances 37,372 (1,411) 44,566 (6,771) 73,756 Fund Balances:
Beginning of year, as previously stated 287,858 98,315 13,001 65,650 464,824 Error correction 1,735 (625) - (1,400) (290)
Beginning of year, as restated 289,593 97,690 13,001 64,250 464,534 End of year $ 326,965 $ 96,279 $ 57,567 $ 57,479 $ 538,290 See Notes to Financial Statements
25 CITY OF RIVERSIDE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Net change in fund balances - total governmental funds $ 73,756 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation and amortization expense.
Capital outlay $ 64,282
Depreciation expense (58,459)
Lease and subscription amortization expense (2,392)
Gain/(Loss) on sale of capital assets (635) 2,796
Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Whereas, issuance of long-term debt is a current financial resource in the governmental funds, but the issuance increase long-term debt in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and deferral on loss of refunding when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities
Issuance of long-term debt (60,509)
Lease and SBITA proceeds (7,540)
Payment to refunding escrow agent 15,007
Principal repayments
General obligation bonds 1,740
Pension obligation bonds 9,454
Certificates of participation 5,034
Lease revenue bonds 3,588
Financed purchase 3,558
Lease liability 242
SBITA liability 2,456
Amortization of bond premium/discount 118 (26,852)
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 (252)
Changes in compensated absences (5,939)
Changes in net pension liability and related deferred outlows and inflows of resources (32,756) Changes in OPEB liability and related deferred outflows and inflows of resources (1,879) (40,826) 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 9,158
Internal service funds are used by management to charge the costs of insurance, central purchasing and fleet management to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities (12,837) Change in net position of governmental activities $ 5,195 See Notes to Financial Statements
26 CITY OF RIVERSIDE
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES, IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Budgeted Amounts Actual
Variance to Final
Budget Positive
Original Final Amounts (Negative)
Revenues:
Taxes $ 321,204 $ 315,588 $ 321,468 $ 5,880
Licenses and permits 14,400 14,400 12,168 (2,232)
Intergovernmental 1,909 3,962 4,634 672
Charges for services 18,322 18,460 17,359 (1,101)
Fines and forfeitures 1,157 1,157 2,208 1,051
Special assessments 378 378 615 237
Rental and investment income 5,244 5,324 22,522 17,198
Miscellaneous 1,196 1,486 2,200 714
Total revenues 363,810 360,755 383,174 22,419
Expenditures:
General government:
Mayor 1,199 1,202 1,161 41
Council 2,005 2,143 2,404 (261)
Manager 5,307 5,609 5,168 441
Marketing and communications 2,928 2,941 2,468 473
Attorney 7,166 8,578 8,298 280
Clerk 2,285 2,377 2,304 73
Community development 16,701 25,118 16,627 8,491
Human resources 7,561 7,788 5,904 1,884
Housing and human services 9,115 11,233 6,500 4,733
General services 10,542 9,911 8,035 1,876
Finance 11,710 12,876 11,219 1,657
Innovation and technology 17,792 18,651 14,811 3,840
Subtotal 94,311 108,427 84,899 23,528
Allocated expenditures - General Government (55,443) (55,452) (55,551) 99 Total general government 38,868 52,975 29,348 23,627
Public safety:
Police 142,823 147,666 148,059 (393)
Fire 78,354 88,866 80,144 8,722
Animal regulation 4,562 5,326 3,698 1,628
Building and zoning inspection 5,150 5,562 4,431 1,131
Total public safety 230,889 247,420 236,332 11,088
Highways and streets 32,212 34,732 28,328 6,404
Culture and recreation:
Library 10,889 11,463 10,591 872
Museum and cultural affairs 2,686 3,284 2,409 875
Parks, recreation and community services 36,171 37,643 34,147 3,496 Total culture and recreation 49,746 52,390 47,147 5,243 Capital outlay 9,594 17,667 17,699 (32)
Debt service:
Principal - - 2,651 (2,651)
Interest and fiscal charges - - 118 (118)
Total expenditures 361,309 405,184 361,623 43,561
Total revenues over (under) expenditures 2,501 (44,429) 21,551 65,980 Other Financing Sources/(Uses):
Transfers in 65,405 106,457 96,526 (9,931)
Transfers out (77,238) (99,738) (88,626) 11,112
Proceeds from sale of capital assets 5,503 650 388 (262) Issuance of debt related to leases and subscriptions - - 7,533 7,533 Total other financing sources/(uses) (6,330) 7,369 15,821 8,452 Net change in fund balance (3,829) (37,060) 37,372 74,432 Fund Balance:
Beginning of year, as previously stated 287,858 287,858 287,858 - Error correction - - 1,735 1,735
Beginning of year, as restated - - 289,593 289,593
Ending of year $ 284,029 $ 250,798 $ 326,965 $ 76,167
See Notes to Financial Statements
27 CITY OF RIVERSIDE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Assets:
Current assets:
Cash and investments $ 276,817 $ 60,558 $ 97,580 $ 32,182 $ 467,137 $ 47,526 Receivables, net of allowance for
uncollectible
Interest 2,037 3,983 669 228 6,917 301
Utility billed 20,669 5,463 4,042 1,938 32,112 -
Utility unbilled 28,293 6,788 3,966 2,070 41,117 -
Accounts 7,819 1,874 771 1,710 12,174 763
Intergovernmental 5 934 6,943 781 8,663 332
Leases receivable 1,478 952 - 557 2,987 -
Inventory 1,313 - 3,592 119 5,024 11,040
Prepaid items 13,298 216 49 50 13,613 -
Deposits 1,662 - - 300 1,962 -
Restricted assets:
Cash and cash equivalents
Rate stabilization cash and cash
equivalents - - 4,000 - 4,000 -
Other restricted cash and cash
equivalents 98,387 13,569 - 2,500 114,456 -
Benefit/Conservation Programs
receivable 1,628 20 - - 1,648 -
Total current assets 453,406 94,357 121,612 42,435 711,810 59,962 Noncurrent assets:
Restricted assets:
Cash and cash equivalents at fiscal
agent 97,958 25,483 - - 123,441 -
Cash and investments at fiscal agent 48,258 2,835 1,328 435 52,856 - Leases receivable 9,754 89,107 - 8,467 107,328 -
Prepaid items noncurrent 12,598 - - - 12,598 -
Other noncurrent assets - 1,014 - - 1,014 -
Advances to other funds - - 503 - 503 -
Regulatory assets 1,999 1,259 1,000 7,896 12,154 -
Derivative instruments - - - 590 590 -
Advances to Successor Agency Trust
Fund 1,098 - - - 1,098 -
Capital assets, not depreciated 150,600 60,303 35,201 21,264 267,368 458 Capital assets, net of depreciation 646,203 464,069 480,363 122,158 1,712,793 9,968 Lease and subscription capital assets,
net of amortization 667 23 103 271 1,064 17
Total noncurrent assets 969,135 644,093 518,498 161,081 2,292,807 10,443 Total assets 1,422,541 738,450 640,110 203,516 3,004,617 70,405 Deferred Outflows of Resources:
Changes in derivative values - - - 745 745 -
Deferred charge on refunding 1,999 4,201 - 450 6,650 -
Pension related items 28,534 9,297 6,359 4,592 48,782 2,357 OPEB related items 1,284 527 349 296 2,456 151
Total deferred outflows of
resources 31,817 14,025 6,708 6,083 58,633 2,508
See Notes to Financial Statements
28 CITY OF RIVERSIDE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Liabilities:
Current liabilities:
Accounts payable 22,964 3,989 2,035 5,539 34,527 1,157
Accrued payroll 1,844 652 402 277 3,175 178
Retainage payable 968 463 834 148 2,413 19
Unearned revenue 4,244 58 - 263 4,565 -
Deposits 12,109 1,099 809 1,070 15,087 50
Accrued interest 7,313 2,425 5,940 43 15,721 -
Due to other funds - - - - - 355
Benefit/Conservation Programs
payable 1,026 77 - - 1,103 -
Long-term obligations 24,314 11,725 13,831 6,463 56,333 740 Compensated absences 4,592 1,658 1,163 543 7,956 307
Claims and judgments - - - - - 21,191
Landfill capping - - - 559 559 -
Decommissioning liability 6,887 - - - 6,887 -
OPEB liability 335 129 75 77 616 43
Lease liability 190 6 5 98 299 4
SBITA liability 46 - 72 - 118 -
Total current liabilities 86,832 22,281 25,166 15,080 149,359 24,044 Noncurrent liabilities:
Long-term obligations 686,221 258,551 317,357 60,415 1,322,544 3,690 Compensated absences 4,383 1,452 775 320 6,930 244
Advances from other funds - - - 6,703 6,703 -
Claims and judgments - - - - - 99,023
Landfill capping - - - 8,013 8,013 -
Decommissioning liability 40,078 - - - 40,078 -
Regulatory liability - 4,636 5,438 41 10,115 -
Derivative instruments - 1,185 - 1,218 2,403 -
Net pension liability 52,907 17,238 11,790 8,513 90,448 4,371 OPEB liability 10,472 4,275 2,978 2,613 20,338 1,218
Lease liability 383 18 16 94 511 12
Total noncurrent liabilities 794,444 287,355 338,354 87,930 1,508,083 108,558 Total liabilities 881,276 309,636 363,520 103,010 1,657,442 132,602 Deferred Inflows of Resources:
Change in derivative values - 110 - 566 676 -
Deferred charges on refunding - - 517 - 517 -
Pension related items 312 102 70 51 535 27
OPEB related items 1,990 787 479 448 3,704 204
Lease related items 10,224 99,839 - 8,802 118,865 -
Total deferred inflows of
resources 12,526 100,838 1,066 9,867 124,297 231
Net position:
Net investment in capital assets 239,920 292,595 193,201 83,589 809,305 10,427 Restricted net position:
Debt service 24,465 10,800 8,327 - 43,592 -
Landfill capping - - - 2,500 2,500 -
Regulatory requirements 41,762 - 2,863 - 44,625 -
Public Benefit Programs 35,297 - - - 35,297 -
Water Conservation Program - 3,067 - - 3,067 -
Unfunded accrued liability 4,169 1,374 942 435 6,920 -
Unrestricted/(deficit) 214,943 34,165 76,899 10,198 336,205 (70,347) Total net position $ 560,556 $ 342,001 $ 282,232 $ 96,722 $ 1,281,511 $ (59,920) See Notes to Financial Statements
29 CITY OF RIVERSIDE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Operating Revenues:
Charges for services $ 475,608 $ 96,083 $ 71,953 $ 66,016 $ 709,660 $ 36,612 Total operating revenues 475,608 96,083 71,953 66,016 709,660 36,612 Operating Expenses:
Personnel services 69,032 22,232 15,019 11,861 118,144 7,604 Contractual services 9,199 2,877 1,489 14,896 28,461 872 Maintenance and operation 239,038 14,544 11,528 16,504 281,614 4,460 General 19,466 16,565 5,985 24,355 66,371 7,482
Materials and supplies 1,693 1,452 7,553 1,446 12,144 205 Claims/Insurance 4,262 1,154 1,648 1,037 8,101 29,743
Depreciation 39,371 18,100 14,913 6,416 78,800 1,556
Amortization 260 13 82 738 1,093 7
Total operating expenses 382,321 76,937 58,217 77,253 594,728 51,929 Operating income/(loss) 93,287 19,146 13,736 (11,237) 114,932 (15,317) Nonoperating Revenues/(Expenses):
Grant subsidies - - - 4,923 4,923 -
Interest revenue 27,187 7,136 6,579 2,434 43,336 2,547
Interest expense and fiscal charges (30,136) (11,041) (12,684) (2,602) (56,463) (205) Capital improvement fees - - 65 - 65 -
Decommissioning liability expense (5,807) - - - (5,807) - Other 4,604 5,031 4,801 673 15,109 72
Gain/(loss) on disposal of capital assets (270) 116 (198) 13 (339) 63 Total nonoperating
revenues/(expenses) (4,422) 1,242 (1,437) 5,441 824 2,477 Income/(loss) before
contributions and operating
transfers 88,865 20,388 12,299 (5,796) 115,756 (12,840) Capital contributions 8,745 2,823 10,894 1,519 23,981 3 Transfers in - - - 12,113 12,113 -
Transfers out (45,215) (8,230) - - (53,445) -
Change in net position 52,395 14,981 23,193 7,836 98,405 (12,837) Net Position:
Beginning of year, as previously stated 508,534 339,672 268,133 88,886 1,205,225 (47,083) Error correction (373) (12,652) (9,094) - (22,119) -
Beginning of year, as restated 508,161 327,020 259,039 88,886 1,183,106 (47,083) End of year $ 560,556 $ 342,001 $ 282,232 $ 96,722 $ 1,281,511 $ (59,920) See Notes to Financial Statements
30 CITY OF RIVERSIDE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Cash Flows from Operating Activities:
Cash received from customers and users $ 460,969 $ 92,534 $ 66,341 $ 64,989 $ 684,833 $ 50 Cash received from interfund services provided - - - - - 36,303 Cash paid to suppliers for goods or services (283,269) (40,134) (33,152) (60,333) (416,888) (24,690) Cash paid to employees for services (56,882) (18,350) (12,378) (10,042) (97,652) (6,525) Net cash provided/(used) by operating
activities 120,818 34,050 20,811 (5,386) 170,293 5,138
Cash Flows from Non-Capital Financing
Activities:
Transfers in - - - 12,112 12,112 -
Transfers out (45,215) (8,230) - - (53,445) -
Cash received/(paid) from/(to) other funds - - - (233) (233) (1,088) Payment receipt from advances to other funds 457 - 317 4,703 5,477 - Debt service payment on pension obligation
bonds (5,676) (1,815) (1,128) (746) (9,365) (387)
Other non-operating receipts 4,268 2,886 4,802 438 12,394 72 Grant subsidies (repayments) - - - 5,352 5,352 -
Increase (decrease) in restricted arbitrage cash (2,526) (664) - - (3,190) - Net cash provided/(used) by non-capital
financing activities (48,692) (7,823) 3,991 21,626 (30,898) (1,403) Cash Flows from Capital and Related Financing
Activities:
Purchase of capital assets (59,466) (20,862) (23,614) (8,939) (112,881) (2,824) Proceeds from sales of capital assets 394 116 - 13 523 63 Proceeds from revenue bonds, including
premium - - - 5,284 5,284 -
Principal paid on long-term obligations (15,479) (8,340) (12,050) (5,575) (41,444) 41 Interest paid on long-term obligations (33,948) (11,295) (14,933) (2,551) (62,727) (206) Bond issuance costs - - - (56) (56) -
Refunding Escrow Agent - - - (5,222) (5,222) -
Contributions 6,572 2,823 - 1,518 10,913 3
Lease and subscription payments (302) (8) (80) (256) (646) (6) Cash received from finance purchases - 4,814 - - 4,814 - Net cash provided/(used) by capital and
related financing activities (102,229) (32,752) (50,677) (15,784) (201,442) (2,929) Cash Flows from Investing Activities:
Proceeds/(purchase) from/(of) investment
securities 272 (995) (536) (69) (1,328) -
Interest from investments 26,776 6,133 6,529 2,369 41,807 2,472 Net cash provided/(used) by investing
activities 27,048 5,138 5,993 2,300 40,479 2,472
Net increase/(decrease) in cash and cash
equivalents (3,055) (1,387) (19,882) 2,756 (21,568) 3,278 Cash and cash equivalents at beginning of year
(excluding noncurrent cash and investments at
fiscal agent) 476,217 100,997 121,462 31,926 730,602 44,248 Cash and cash equivalents at end of year
(excluding noncurrent cash and investments
at fiscal agent) $ 473,162 $ 99,610 $ 101,580 $ 34,682 $ 709,034 $ 47,526 See Notes to Financial Statements
31 CITY OF RIVERSIDE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds Governmental Electric Water Sewer
Non-Major
Enterprise
Funds
Total
Enterprise
Funds
Activities -
Internal Service
Funds
Reconciliation of Operating Income to Net Cash
Provided/(Used) by Operating Activities:
Operating income/(loss) $ 93,287 $ 19,146 $ 13,736 $ (11,237) $ 114,932 $ (15,317) Adjustments to Reconcile Operating
Income/(Loss) Net Cash Provided/(Used) by
Operating Activities:
Depreciation 39,371 18,100 14,913 6,416 78,800 1,556
Amortization 260 13 82 738 1,093 7
(Increase)/decrease in utility billed receivable (2,298) (768) 103 (18) (2,981) - (Increase)/decrease in utility unbilled receivable (10,798) (2,805) (1,470) (868) (15,941) - (Increase)/decrease in accounts receivable (2,238) (280) (320) (359) (3,197) (57) (Increase)/decrease in property tax receivable - - - 5 5 - (Increase)/decrease in intergovernmental
receivable 351 655 (4,937) 56 (3,875) (256)
(Increase)/decrease in inventory 152 - (98) (39) 15 (952) (Increase)/decrease in prepaid items (11,877) 2 (36) 21 (11,890) - (Increase)/decrease in deposits (133) - - - (133) -
(Increase)/decrease in Benefit/Conservation
Programs receivable (408) 5 - - (403) -
Increase/(decrease) in accounts payable 3,263 (2,314) (26) (1,737) (814) 407 Increase/(decrease) in accrued payroll 468 151 84 (18) 685 63 Increase/(decrease) in retainage payable 762 (872) 536 (15) 411 19 Increase/(decrease) in unearned revenue 3,482 3 - (61) 3,424 - Increase/(decrease) in deposits payable 137 (754) (4,327) 220 (4,724) 50 Increase/(decrease) in Benefit/Conservation
Programs payable 276 24 - - 300 -
Increase/(decrease) in compensated absences 1,575 433 343 183 2,534 147 Increase/(decrease) in claims and judgments - - - - - 18,599 Increase/(decrease) in landfill capping liability - - - (372) (372) - Increase/(decrease) in decommissioning liability (4,924) - - - (4,924) - Changes in net pension liability/(asset) and
related deferred inflows/(outflows) of resources 9,584 3,108 2,110 1,578 16,380 805 Changes in OPEB liability and related deferred
inflows/(outflows) of resources 526 203 118 121 968 67
Total adjustments 27,531 14,904 7,075 5,851 55,361 20,455 Net cash provided/(used) by operating
activities $ 120,818 $ 34,050 $ 20,811 $ (5,386) $ 170,293 $ 5,138 Non-Cash Investing, Capital, and Financing
Activities:
Capital contributions - capital assets $ 2,172 $ - $ 360 $ - $ 2,532 $ - Lease and subscription additions 518 8 7 338 871 -
Increase (decrease) in fair value of investments 1,809 104 - - 1,913 - (Increase) decrease in arbitrage rebate liability (2,426) (664) - - (3,090) - Total Non-Cash Investing, Capital, and
Financing Activities $ 2,073 $ (552) $ 367 $ 338 $ 2,226 $ - Reconciliation of Statements of Cash Flows to
Statement of Net Position:
Cash and investments $ 276,817 $ 60,558 $ 97,580 $ 32,182 $ 467,137 $ 47,526 Rate stabilization cash and cash equivalents - - 4,000 - 4,000 - Other restricted cash and cash equivalents 98,387 13,569 - 2,500 114,456 - Cash and cash equivalents at fiscal agent 97,958 25,483 - - 123,441 - Cash and cash equialents at end of year $ 473,162 $ 99,610 $ 101,580 $ 34,682 $ 709,034 $ 47,526 See Notes to Financial Statements
32 CITY OF RIVERSIDE
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
Private-Purpose
Trust Fund
Successor
Agency Trust
Fund Custodial Fund
Assets:
Cash and investments $ 34,449 $ 1,233
Cash and investments with fiscal agent 1,392 14,040
Receivables, net of allowance for uncollectible
Interest 208 8
Property taxes - 61
Accounts 99 -
Intergovernmental 426 -
Notes 1,391 -
Deposits 2 -
Land and improvements held for resale 5,209 -
Capital assets:
Capital assets, not depreciated 185 -
Total assets 43,361 15,342
Liabilities:
Current liabilities:
Accounts payable 238 3,384
Retainage payable 12 -
Accrued interest 1,898 -
Long-term obligations 10,944 -
Due to bond holders - 11,958
Noncurrent liabilities:
Advances from City 1,098 -
Long-term obligations 130,024 -
Total liabilities 144,214 15,342
Deferred Inflows of Resources:
Deferred charges on refunding 384 -
Total deferred inflows of resources 384 -
Net Position:
Restricted for other governments (101,237) -
Total net position $ (101,237) $ -
See Notes to Financial Statements
33 CITY OF RIVERSIDE
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Private-Purpose
Trust Fund
Successor
Agency Trust
Fund Custodial Fund
Additions:
Property taxes $ 14,402 $ -
Special assessments - 4,394
Rental and investment income 892 321
Miscellaneous 112 -
Issuance of long-term debt - 1,824
Total additions 15,406 6,539
Deductions:
Professional services and other deductions 1,594 2,204
Redevelopment projects 760 -
Principal - 2,184
Interest and fiscal charges 4,086 2,151
Gain/(loss) on sale of land held for resale 2 -
Total deductions 6,442 6,539
Changes in Net Position 8,964 -
Net Position:
Beginning of year (110,201) -
End of year $ (101,237) $ -
See Notes to Financial Statements
34 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 1. Summary of Significant Accounting Policies
The City of Riverside (City) was incorporated on October 11, 1883 as a Charter City a nd operates under a Council-Manager form of Government. The more significant accounting policies reflected in the financial statements are summarized as follows:
A. Reporting Entity
The financial statements present the City and its component units, entities for which the City is financially accountable. Blended component units are legally separate entities, but in substance are part of the City's operations and their data is combined with that of the City's. The City has no component units that meet the criteria for discrete presentation. All of the City's component units have a June 30 year-end.
Blended Component Units
Riverside Housing Authority (Housing Authority) was established in 2006 by the City. The Housing Authority’s primary p urpose is to provide safe and sanitary housing accommodations for persons with low or moderate income. The Housing Authority’s activity h as been combined with that of the primary government because City C ouncil members serve as the Housing Authority’s commissioners and because the City i s financially a ccountable and operationally responsible for all matters.
Riverside Public Financing Authority (Public Financing Authority) was organized in December 1987 by t he City a nd the Redevelopment Agency. Pursuant to Assembly Bill 1X 26 (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies were dissolved effective February 1 , 2012. Subsequently, the City b ecame the Successor Agency t o the Redevelopment Agency. The Parking Authority o f the City o f Riverside was added as an additional member of the Public Financing Authority on August 14, 2012. The Public Financing Authority’s activity has been combined with that of the primary g overnment because City C ouncil members serve as the Public Financing Authority’s board members and because the Public Financing Authority exclusively provides financing assistance to the primary government.
The City i s also financially a ccountable and operationally r esponsible for all matters.
Riverside Municipal Improvements Corporation ( Municipal Improvements Corporation) was created in 1978 and operates under provisions of the Nonprofit Public Benefit Corporation Law of the State of California. The Municipal Improvements Corporation's primary purpose is to provide financing assistance by obtaining land, property and equipment on behalf of the City. The activity of the Municipal Improvements Corporation has been combined with that of the primary government because three members of the City Council serve as the Municipal Improvements Corporation’s directors and because the Municipal Improvements Corporation exists to serve exclusively the primary government.
The City is financially accountable and operationally responsible for all matters.
Fiduciary Component Unit
Successor Agency t o the Redevelopment Agency o f the City o f Riverside (Successor Agency) is a separate legal entity, which was formed to hold the assets and liabilities of the former Redevelopment Agency p ursuant to City Council actions taken on March 15, 2011 and January 10, 2012. The activity of the Successor Agency i s overseen by a n Oversight Board comprised of individuals appointed by various government agencies and the City of Riverside as Successor Agency o f the former Redevelopment Agency. In 2018, the oversight was transferred to the Riverside Countywide Oversight Board, as a result of state legislation that consolidated all oversight boards to successor agencies. The Countywide Oversight Board was created to oversee the winddown activities of the various successor agencies in Riverside County. The nature and significance of the relationship between the City and the Successor Agency is such that it would be misleading to exclude the Successor Agency from the City’s financial statements. The Successor Agency is presented herein in the City’s fiduciary funds as a private-purpose trust fund.
Complete financial statements are prepared for the Riverside Public Financing Authority and the Successor Agency to the Redevelopment Agency of the City of Riverside, which can be obtained from the City's Finance Department, 3900 Main Street, Riverside, California, 92522 or online at www.riversideca.gov.
B. Government-wide and Fund Financial Statements
The government-wide financial statements report information on all of the non- fiduciary a ctivities of the City a nd its component units. I nterfund activity h as been removed from these statements except for utility charges, as this would distort the presentation of function costs and program revenues. Governmental 35 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
activities, which normally a re supported by t axes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support.
The statement of net position presents financial information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City i s improving or deteriorating.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly i dentifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly i ncluded among program revenues are reported instead as general revenues. Indirect expenses are allocated to the various functions based on a proportionate utilization of the services rendered. Such allocations consist of charges for accounting, human resources, information technology and other similar support services.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary f unds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide, proprietary and fiduciary funds financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability i s incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied on the property. Grants and similar items are recognized as revenue as soon as all eligibility r equirements have been met. An allowance for doubtful accounts is maintained for the utility and other miscellaneous receivables.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they a re collectible within the current period or soon enough thereafter to pay liabilities of the current period.
Revenues are considered to be available if they are generally collected within 60 days after year end, except for revenue associated with neglected property abatement which is eleven (11) months and except for grant revenue, including reimbursement received from Transportation Uniform Mitigation Fees, which is six (6) months. Grant revenue is recognized if received within six (6) months of year end to enable the matching of revenue with applicable expenditures.
Expenditures generally a re recorded when a liability is incurred under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property t axes, special assessments, sales taxes, franchise taxes, licenses, charges for services, amounts due from other governments and interest associated with the current fiscal period are all considered to be susceptible to accrual. Other revenue items such as fines and permits are considered to be measurable and available only w hen the government receives cash and are therefore not susceptible to accrual.
The government reports the following major governmental funds:
The General fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The Capital Outlay f und accounts for the construction and installation of street and highway c apital improvements for the City, including improvements funded by the ½% sales tax approved by Riverside County in 1988.
The General Debt Service fund accounts for the accumulation of resources and payment of long-term debt obligations of the City and related entities.
The government reports the following major proprietary funds:
The Electric fund accounts for the activities of the City ’s electric distribution operations.
The Water fund accounts for the activities of the City’s water distribution operations.
36 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
The Sewer fund accounts for the activities of the City’s sewer systems.
Additionally, the government reports the following fund types:
Special Revenue funds account for proceeds of specific revenue sources that are legally restricted or otherwise committed or assigned for specific purposes.
Capital Projects funds account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.
Internal Service funds account for self-insurance, central stores, and central garage on a cost reimbursement basis.
Fiduciary f unds include private-purpose trust and custodial funds. The private-purpose trust fund accounts for assets and activities of the dissolved Redevelopment Agency, which is accounted for in the Successor Agency T rust. The custodial funds are used to account for special assessments that service no-commitment debt.
The Permanent fund is a governmental fund that is used to report resources that are legally r estricted to the extent that only e arnings, and not principal, may be used for purposes that support the City’s Library programs. Non-expendable net position on the Statement of Net Position includes $1.8 m illion of permanent fund principal which are considered nonexpendable.
Amounts reported as program revenues include 1) charges to customers for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary f unds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally r esult from providing services and producing and delivering goods in connection with a proprietary f und’s principal ongoing operations. The Sewer fund also recognizes, as operating revenue, the portion of connection fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
D. Cash and Investments
The City values its cash and investments in accordance with the provisions of Governmental Accounting Standards Board Statement No. 72 (GASB 72), Fair Value Measurement and Application, which requires governmental entities to use valuation techniques that are appropriate under the circumstances and for which sufficient data are available to measure fair value.
The techniques should be consistent with one or more of the following approaches: the market approach, the cost approach or the income approach.
Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair value except for investments in investment contracts which are recorded at contract value. All highly liquid investments (including restricted assets) with a maturity of 90 days or less when purchased are considered cash equivalents.
Cash and investments held on behalf of proprietary funds by the City Treasurer are considered highly l iquid and are classified as cash equivalents for the purpose of presentation in the statement of cash flows.
E. Restricted Cash and Investments
Certain proceeds of long-term indebtedness, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because their use is limited by a pplicable bond covenants.
Restricted cash and investments also include cash set aside for nuclear decommissioning, public benefit programs, regulatory r equirements and rate stabilization because their use is legally r estricted to a specific purpose.
Unspent proceeds received from the City’s landfill capping surcharge are also recorded as restricted assets.
F. Allowance for Doubtful Accounts
Management determines the allowance for doubtful accounts by a nalyzing customer accounts for all balances over 60 days old. The allowance for doubtful accounts is then adjusted at fiscal year-end based on the amount equal to the annual uncollectible accounts. Utility customer closed accounts are written off when deemed uncollectible. Recoveries to utility c ustomer receivables previously w ritten off are recorded when received. For non-utility a ccounts receivables, delinquent notices after 60 days are sent to customers with outstanding balances. After 120 days, accounts still outstanding are referred to 37 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
the City’s collection agency. As of June 30, 2025, the City had an allowance for doubtful account balance of $12,998 for all accounts receivables.
G. Land and Improvements Held of Resale
Land and improvements held for resale were generally a cquired for future development projects. The properties are carried at the lower of cost or net realizable value.
H. Inventory
Supplies are valued at cost using the average-cost method. Costs are charged to user departments when consumed rather than when purchased.
I. Prepaid Items
Payments to vendors for services benefiting future periods are recorded as prepaid items and expenditures are recognized when items are consumed.
J. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, right of way, and similar items), are reported in the applicable governmental activities and business-type activities of the government-wide financial statements and in the proprietary funds and the fiduciary private-purpose trust fund statements of net position. The government defines capital assets as assets with an initial, individual cost of more than ten thousand dollars ($10,000) and an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Costs include: labor; materials; allocated indirect charges such as engineering, construction and transportation equipment, retirement plan contributions and other fringe benefits. Donated capital assets or donated works of art and similar items are recorded at acquisition cost at the date of donation. Capital assets received in a service concession arrangement are recorded at acquisition value. Intangible assets that cost more than one hundred thousand dollars with useful lives of at least three years are capitalized and are recorded at cost. Interest incurred during the construction phase is expensed in the period incurred.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets other than land are depreciated using the straight-line method. Estimated useful lives used to compute depreciation are as follows:
Buildings and improvements 30-50 years
Improvements other than buildings 20-99 years
Intangibles, depreciable 3-15 years
Machinery and equipment 3-15 years
Infrastructure 20-100 years
K. Leases and Subscription-Based Information Technology Arrangements Leases are defined by the general government as the right-to-use an underlying asset. As lessee, the City r ecognizes a lease liability a nd an intangible lease asset at the beginning of a lease unless the lease is considered a short-term lease or transfers ownership of the underlying asset. Lease assets are measured based on the net present value of the future lease payments at inception, using the weighted average cost of capital, which approximate the incremental borrowing rate. Re-measurement of a lease liability o ccurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The City calculates the amortization of the discount on the lease liability a nd report that amount as outflows of resources. Payments are allocated first to accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations but are recognized as outflows of resources in the period in which the obligation was incurred. As lessor, the City r ecognizes a lease receivable. The lease receivable is measured using the net present value of future lease payments to be received for the lease term and deferred inflow of receivables at the beginning of the lease term. Periodic amortization of the discount on the receivable are reported as interest revenue for that period. Deferred inflows of resources are recognized as inflows on a straight-line basis over the term of the lease. This recognition does not apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain regulated leases. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivables occur when there are modifications, including but not limited to changes in the contract price, lease term, and adding or removing an underlying asset to the lease agreements. In the case of a partial or full lease termination, the carrying value of the lease receivable and the related deferred inflow of resources will be reduced and will include a gain or loss for the difference. For lease contracts that are short-term, the City r ecognizes short- term lease payments as inflows of resources (revenues) based on the payment provisions of the lease contract. Liabilities are only recognized if payments are 38 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
received in advance, and receivables are only r ecognized if payments are received subsequent to the reporting period. Leases between the Airport System and air carriers and other aeronautical users are subject to external laws and regulations. As permitted by GASB No. 87, paragraph 43, the Airport System recognizes inflows of resources based on the payment provisions of the lease contract, and the accounting policies do not apply to regulated leases.
Subscription-Based Information Technology A rrangements (SBITAs) are contracts that convey c ontrol of the right-to-use another party’s information technology (IT) software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction. To determine whether a contract conveys control of the right-to-use the underlying IT assets, the City assesses both the right to obtain the present service capacity from use of the underly ing IT assets and the right to determine the nature and manner of use of the underlying IT assets as specified in the contract. Contracts that solely provide IT support services are excluded from the definition of a SBITA. The subscription term is the period during which the City has a noncancellable right-to-use the underlying IT assets, plus the periods covered by t he City’s option to extend the SBITA if it is reasonably c ertain, based on all relevant factors, that the government will exercise that option.
Periods for which both the government and the SBITA vendor have an option to terminate the SBITA without permission from the other party (or if both parties have to agree to extend) are cancellable periods and are excluded from the subscription term.
L. Compensated Absences
City e mployees receive 10 to 25 vacation days a year based upon length of service. A maximum of two years' vacation accrual may be accumulated, any excess vacation must be used in accordance to policy, and unused vacation is paid in cash upon separation.
City e mployees generally r eceive one day o f sick leave for each month of employment with unlimited accumulation. Upon retirement or death, certain employees or their estates receive a percentage of unused sick leave paid in a lump sum based on longevity. The General, Electric and Water funds have been primarily used to liquidate such balances.
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously r endered by e mployees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, three types of leave qualify for liability r ecognition for compensated absences – vacation, sick, and compensatory t ime. The liability f or compensated absences is reported as incurred in the government-wide and proprietary f und financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability f or compensated absences includes salary-related benefits, where applicable.
M. Derivative Instruments
The City’s derivative instruments are accounted for in accordance with Government Accounting Standards Board Statement No. 53 (GASB 53), Accounting and Financial Reporting for Derivative Instruments, which requires the City to report its derivative instruments at fair value. Changes in fair value for effective hedges that are achieved with derivative instruments are reported as deferrals in the statements of net position.
The City uses derivative instruments to hedge its exposure to changing interest rates through the use of interest rate swaps. The City had debt that was layered with “synthetic fixed rate” swaps, which was refunded in 2008 and 2011. The balance of the deferral account for each swap is included as part of the deferred charge on refunding associated with the new bonds. The swaps were also employed as a hedge against the new debt. Hedge accounting was applied to that portion of the hedging relationship, which was determined to be effective.
The negative fair value of the interest rate swaps related to the new hedging relationship has been recorded and deferred on the statement of net position.
See Note 6 for further discussion related to the City’s interest rate swaps.
Various transactions permitted in the Utility’s Power Resources Risk Management Policies may be considered derivatives, including energy a nd/or gas transactions for swaps, options, forward arrangements and congestion revenue rights. The City h as determined that all of its contracts including congestion revenue rights fall under the scope of “normal purchases and normal sales” and are exempt from GASB 53.
N. Long-Term Obligations
Long-Term Debt
Long-term debt and other long-term obligations are reported as liabilities in the applicable governmental and business-type activities columns in the 39 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
government-wide financial statements and in the proprietary funds and fiduciary funds statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount.
Any liability f or arbitraged interest is recorded in the fund incurring the liability and interest income is reduced by t he amount of liability i ncurred during the year. As of June 30, 2025, the City h as an arbitrage liability r elated to Water Revenue Bonds, 2022A and Electric Revenue Bonds, 2024A.
In the fund financial statements, government fund types recognize bond issuance costs as expenditures during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuance are reported as other financing uses.
Decommissioning
The City h as a 1.79 percent undivided ownership interest in Units 2 and 3 of San Onofre Nuclear Generating Station (SONGS), located south of the City of San Clemente in northern San Diego County. Both Units 2 and 3 of SONGS were permanently retired on June 2013. Consequently, the units are no longer a source of supply for the Electric Utility, but remain associated with certain of its costs, including those associated with the units' shutdown and decommissioning (see Note 12 for nuclear decommissioning liability).
The other owners are SCE, with a 78.21 percent interest (including the 3.16 percent interest it acquired from the City of Anaheim in 2006), and San Diego Gas & Electric Company (SDG&E), with a 20.00 percent interest.
In 2005, the California Public Utilities Commission (CPUC) authorized a project to install four new steam generators in Units 2 and 3 at SONGS and remove and dispose of the predecessor generators. SCE completed the installation of these steam generators in 2010 and 2011 for Units 2 and 3, respectively. The Electric Utility's share of the cost to replace the steam generators was approximately $ 13.4 million. Replacement of the steam generators was expected to enable plant operations to continue through at least 2022, and perhaps beyond, subject to the approval of the NRC
In January 2012, a water leak occured in one of the heat transfer tubes of Unit 3's steam generators, causing it to be shut down. At that time, Unit 2 was off- line for a planned outage when unexpected wear in areas of tube-to-support structure were found. Units 2 and 3 remained offline for extensive inspections, testing and analysis of their system generators. On June 7, 2013, SCE unilaterally announced its plan to retire Units 2 and 3 permanently.
As a result of SCE's decision to permanently retire SONGS Units 2 and 3, the decommissioning phase of the plant began in June 2013. The process of decommissionining the nuclear power plant is expected to take many years and is governed by N RC regulations. According to SCE's decommissioning cost estimate document as of March 2018 in 2017 dollars, total decommissioning costs for Units 2 and 3 were estimated at $4.7 billion, of which the Electric Utility's share was $84 million.
In August 2024, SCE provided the updated decommissioning cost estimate document in 2023 dollars. According to the update, total decommissioning costs for Units 2 and 3 are estimated at $5.7 billion, of which the Electric Utility's share is $102.6 million.
As of June 30, 2025, the Electric Utility h as set aside $41,536 i n cash investments with the trustee and $12,227 i n an designated decommissioning reserve for the Electric Utility’s estimated share of the decommissioning costs.
Increases to the funds held for decommissioning liability a re from investment earnings. The investment earnings are included in investment income in the Electric Utility’s financial statements. An equivalent amount is reflected as decommissioning expense, which is considered part of production and purchased power. Decreases to the funds held for decommissioning liability are from actual funds drawn from the trust for decommissioning costs invoiced by SCE.
On February 2 3, 2016, the City C ouncil adopted a resolution authorizing the commencement of SONGS decommissioning effective June 7, 2013. This resolution allows the Electric Utility to access the decommissioning trust funds to pay for its share of decommissioning costs. The Electric Utility began drawing decommissioning trust funds to pay for decommissioning costs in the fiscal year ended June 30, 2017. As of June 30, 2025, the Electric Utility has paid to date $55,593 i n decommissioning obligations which have been reimbursed by t he trust funds.
O. Claims and Judgments Payable
Claims and judgments payable are recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Such claims, including an estimate for claims incurred but not reported at year end, are recorded as liabilities in the self-insurance internal service fund. As of June 40 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
30, 2025, the City had an obligation related to claims and judgments which is reflected as a liability o n the government-wide statements and is more fully described in Note 10.
P. Fund Balance
In the fund financial statements, governmental fund balance is made up of the following components:
Nonspendable fund balance is the portion of fund balance that cannot be spent due to form. Examples include inventories, prepaid amounts, long-term loans, and notes receivable, unless the proceeds are restricted, committed or assigned. Also, amounts that must be maintained intact legally o r contractually, such as the principal of a permanent fund are reported within the nonspendable category. Restricted fund balance is the portion of fund balance that is subject to externally e nforceable limitations by l aw, enabling legislation or limitations imposed by creditors or grantors.
Committed fund balance is the portion of fund balance that can only be used for specific purposes due to formal action of the City C ouncil through adoption of a resolution prior to the end of the fiscal year.
Once adopted, the limitation imposed by r esolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. On September 6, 2016, the City Council approved the General Fund Reserve Policy s etting a 10% minimum i n the Emergency R eserve and 5% in the Contingency Reserve with an aspirational goal of 15% in the Emergency Reserve.
The Emergency R eserve was established for the purpose of addressing any e xtremely u nusual and infrequent occurrences, such as a major natural disaster or a major unforeseen settlement.
Utilization of the Emergency R eserve requires declaration of an emergency b y a two-thirds majority o f the City C ouncil, and specification of the maximum dollar amount to be used. The Contingency R eserve was established for the purpose of providing a “bridge” to facilitate a measured and thoughtful reduction in expenditures during times of economic downturn, rather than making immediate and drastic budget reductions without the time for proper evaluation. Utilization of the Contingency R eserve, including specification of the maximum dollar amount to be used, requires approval by a t wo-thirds majority o f the City C ouncil. The reserves committed at June 30, 2025 w ere calculated utilizing fiscal year 2025-2026 a dopted General Fund expenditure budget, including appropriation adjustments, of $371,806.
On April 2, 2019, the City C ouncil approved the General Fund - Measure Z Contingency R eserve Policy s etting a required $5,000 i n the Contingency Reserve. The Contingency Reserve was established to cover necessary expenses in order to provide time for a measured and thoughtful reduction in expenditures during times of economic downturn, rather t han making immediate and drastic budget reductions without the time for proper evaluation.
Utilization of the Contingency R eserve, including specification of the maximum dollar amount to be used, requires the affirmative votes of at least five members of the City Council.
Assigned fund balance reflects the City’s intended use of resources.
Intent can be expressed by the City Council or by an official to which the City C ouncil delegates the authority. On February 2 2, 2011, the City C ouncil approved a policy w hereby t he authority t o assign fund balance was delegated to the City’s Chief Financial Officer, which authorized the assignment of fund balance for specific programs or purposes in accordance with City C ouncil directives. The City a lso uses budget and finance policy t o authorize the assignment of fund balance, which is done through the adoption of the budget and subsequent budget amendments throughout the year.
Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.
When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) fund balances are available, the City’s policy i s to use restricted amounts before unrestricted amounts.
Within unrestricted resources, committed resources are used first followed by assigned resources, and finally unassigned resources.
Q. Net Position
41 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Net position represents the difference between assets and deferred outflows less liabilities and deferred inflows. Net position invested in capital assets consists of capital assets, net of accumulated depreciation, lease and subscription assets, net of amortization reduced by the outstanding balances of any borrowings used for the related acquisition, construction or improvement of those assets excluding unspent debt proceeds. Restricted net position represents restricted assets less liabilities and deferred inflows related to those assets. Restricted assets are recorded when there are limitations imposed on their use either through legislation adopted by t he City o r through external restrictions imposed by c reditors, grantors or laws or regulations of other governments. Restricted resources are used first to fund appropriations.
R. Interfund Transactions
Interfund transactions are accounted for as revenues and expenditures or expenses. Transactions, which constitute reimbursements, are eliminated in the reimbursed fund and accounted for as expenditures or expenses in the fund to which the transaction is applicable.
During the year, transactions occur between individual funds for goods provided or services rendered. Related receivables and payables are classified as "due from/to other funds" on the accompanying fund level statements. The noncurrent portion of long-term interfund loans receivable are reported as advances and, for governmental fund types, are equally offset by nonspendable fund balance to indicate that the receivable is not in spendable form.
Any r esidual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
S. Unearned Revenue
Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to meeting all eligibility r equirements. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized.
T. Unavailable Revenue
Unavailable revenue arises only under a modified accrual basis of accounting.
Accordingly, unavailable revenue is reported only i n the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources (revenue) in the period that the amounts become available.
U. Deferred Outflows and Deferred Inflows of Resources
When applicable, the statement of net position and the balance sheet will report a separate section for deferred outflows of resources. Deferred outflows of resources represent outflows of resources (consumption of net assets) that apply to future periods and that, therefore will not be recognized as an expense or expenditure until that time.
Conversely, deferred inflows of resources represent inflows of resources (acquisition of net assets) that apply to future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time.
V. Regulatory Assets and Deferred Regulatory Charges
In accordance with GASB Statement No. 62, enterprise funds that are used to account for rate-regulated activities are permitted to defer certain expenses and revenues that would otherwise be recognized when incurred, provided that the City i s recovering or expects to recover or refund such amounts in rates charged to its customers. Accordingly, regulatory a ssets and/or deferred regulatory c harges have been recorded in the Electric, Water, Sewer and Refuse funds.
W. Property Tax Calendar
Under California law, general property taxes are assessed for up to 1% of the property’s assessed value. General property taxes are collected by the counties along with other special district taxes and assessments and voter approved debt. General property t ax revenues are collected and pooled by t he county throughout the fiscal year and then allocated and paid to the county, cities and school districts based on complex formulas prescribed by State statutes.
Property t axes are calculated on assessed values as of January 1 f or the ensuing fiscal year. On January 1 of the fiscal year the levy is placed and a lien is attached to the property. Property taxes are due in two installments. The first installment is due November 1 and is delinquent after December 10. The second installment is due February 1 and is delinquent after April 10. The City generally a ccrues only t hose taxes, which are received within sixty days after the year-end. Under the Teeter plan, the County of Riverside has responsibility 42 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
for the collection of delinquent taxes and the City receives 100% of the levy.
X. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally a ccepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures.
Specifically, the City h as made certain estimates and assumptions relating to the revenues due and expenditures incurred through fiscal year end, collectability o f its receivables, the valuation of property h eld for resale, the useful lives of capital assets, and the ultimate outcome of claims and judgments. Actual results may differ from those estimates and assumptions.
Y. Pensions
For purposes of measuring the net pension asset/liability a nd deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary n et position of the City o f Riverside California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary n et position have been determined on the same basis as they a re reported by C alPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Z. Other Post-Employment Benefit (OPEB)
OPEB refers to the benefits, other than pensions, that the City provides as part of an employee’s retirement benefits. The OPEB liability i s defined as the liability of employers contributing to employees for benefits provided through a defined benefit OPEB plan that is administered through a trust.
AA. New Accounting Pronouncements
The City has adopted and implemented the following Governmental Accounting Standards Board (GASB) pronouncement effective for fiscal year 2024-2025:
GASB Statement No. 101, Compensated Absences - This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. It also requires that a liability for certain types of compensated absences—including parental leave, military l eave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability f or specific types of compensated absences not be recognized until the leave is used. Further, this Statement establishes guidance for measuring a liability f or leave that has not been used, generally u sing an employee’s pay rate as of the date of the financial statements.
GASB Statement No. 102, Certain Risk Disclosures - This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability f or revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact.
The following GASB pronouncements are effective for the succeeding fiscal year:
Fiscal Year 2026
GASB Statement No. 103, Financial Reporting Model Improvements - This Statement continues the requirement that the basic financial statements be preceded by m anagement’s discussion and analysis (MD&A), which is presented as required supplementary i nformation (RSI). MD&A provides an objective and easily r eadable analysis of the government’s financial activities based on currently k nown facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently K nown Facts, Decisions, or Conditions. Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply p resenting the amounts or percentages by w hich they c hanged. This 43 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only t he most relevant information, focused on the primary government. In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units.
GASB Statement No. 104, Disclosure of Certain Capital Assets - This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by S tatement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right- to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately d isclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately b y major class.
Additionally, This Statement also requires additional disclosures for capital assets held for sale.
Note 2. Legal Compliance - Budgets
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for all departments within the general, special revenue and capital project funds. Formal budgets are not employ ed for debt service funds because debt indenture provisions specify p ayments. The permanent fund is not budgeted.
Biannually, during the period December through February, department heads prepare estimates of required appropriations for both operating and capital needs for the upcoming fiscal years. These estimates are compiled into a proposed biennial budget that includes a summary of proposed revenues and expenditures, along with historical data for the two preceding fiscal years. The City M anager presents the operating budget and capital improvement plan to the City Council for review, and public hearings are conducted to obtain citizen input. Following a mid-cycle review of the second budget year, the City Manager presents an amended budget proposal. The City Council then conducts a public hearing and re-adopts the budget for the second year, as the City’s Charter requires annual budget adoption. The City M anager is legally a uthorized to transfer budgeted amounts between divisions and accounts within the same department and fund. However, transfers of appropriations between departments or funds, as well as any i ncreases in appropriations, must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations at the departmental level within a fund.
In connection with the preparation of its biennial budgets, the City p repares Five-Year Financial Plans for the General Fund and Measure Z for the purpose of helping City p olicy m akers and management to understand the fiscal gaps that may exist between revenue forecasts and projected expenditure requirements. The Five-Year Financial Plans provide a guide for establishing City d epartment budget targets, which are intended to be used by C ity departments to develop budget proposals that are constrained by the resources anticipated to be available in the upcoming fiscal year.
Note 3. Cash and Investments
Cash and investments at fiscal year-end consist of the following:
Investments $ 1,013,588
Investments with fiscal agent 318,709
1,332,297
Cash on hand and deposits with financial institutions 54,661 Total $ 1,386,958
The amounts are reflected in the statements of net position of the government- wide and fiduciary fund financial statements:
Cash and investments $ 911,438
Restricted cash and cash equivalents 241,897
Restricted cash and investments 182,509
Total per statement of net position 1,335,844
44 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Fiduciary fund cash and investments 35,682
Fiduciary fund cash and investments with fiscal agent 15,432 Total $ 1,386,958
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by o utside fiscal agents under the provisions of bond indentures, which are administered by outside agencies.
Interest income earned on pooled cash and investments is allocated monthly to funds based on the beginning and month-end balances. Interest income from cash and investments held at fiscal agents is credited directly t o the related account. Bank deposits are covered by federal depository insurance for the first $250 or by collateral held in the pledging bank’s trust department in the name of the City.
Authorized Investments
Under provisions of the City's investment policy, and in accordance with California Government Code Section 53601, the City T reasurer may invest or deposit in the following types of investments:
Max
Maturity
Max % of
Portfolio
Max % in
One Issuer
Local Agency Investment Fund (State Pool) N/A N/A N/A
Money Market Mutual Funds N/A %20 %N/A
Mutual Funds N/A %20 %10
Joint Powers Authority Pools N/A N/A N/A
Medium-Term Corporate Notes1 5 years %30 %5
Municipal Bonds1 5 years %30 %5
Negotiable Certificates of Deposit2 5 years %30 %5
Mortgage Pass-Through and Asset-Backed Securities3 5 years %20 %5 Certificates of Deposit Placement Services4 5 years %30 %5 Collateralized Time Deposits4 5 years %30 %5
Federally Insured Time Deposits 5 years %30 %5
Supranational Securities3 5 years %30 %10
Federal Agency Obligations 5 years N/A %25
U.S. Treasury Obligations 5 years N/A N/A
Repurchase Agreements 1 year N/A N/A
Commercial Paper of "prime" quality5 270 days %25 %5
Bankers' Acceptance2 180 days %10 %5
Reverse Repurchase Agreements6 92 days %20 N/A
1 Minimum c redit rating of A (or its equivalent) by a t least one nationally recognized statistical rating organization at the time of purchase 2 Issued by o rganizations having short-term obligations rated A-1 (or its equivalent) and long-term obligations rated A (or its equivalent) by at least one nationally recognized statistical rating organization
3 Minimum c redit rating of AA (or its equivalent) by a t nationally r ecognized statistical rating organization
4 Or no more than 15% of the portoflio may be invested in any combination of non-negotiable certificates of deposit as set forth in Federally I nsured Time Deposits, Collaterized Time Deposits, and Certificate of Deposit Placement Services. No more than 30% of the portfolio may be invested in any combination of non-negotiable or negotiable certificates of deposit 5 Or no more than 10% of outstanding commercial paper of any single issuer may be purchased
6 Securities sold pursuant to a reverse purchase agreement must have been owned and fully paid for by the City for a minimum of 30 days prior to sale The City’s investment policy p rovides the following three exceptions to the above: (1) investments authorized by debt agreements, (2) investments in the City o f Riverside - 115 Trust for Pension and (3) funds reserved in the San Onofre Nuclear Generating Station Decommissioning Account for which the five-year maturity l imitation may be extended to the term of the operating license.
Investments Held by Bond Trustees
Investments of debt proceeds held by bond trustees are governed by the bond transcript and authorized by C ity C ouncil, rather than the City's General Investment Policy. For details on each borrowing, refer to the "Permitted Investments" section of the bond transcript included in the Official Statement. All current Official Statements are available on the Municipal Securities Rulemaking Board's EMMA platform.
Investments in the City of Riverside - 115 Trust for Pension The City has established the City of Riverside - 115 Trust for Pension (the Plan) to accumulate resources for future contributions to CalPERS. As of June 30, 2025, the City h ad $83,771 o f restricted cash and investments reported in a Section 115 Trust restricted for future pension contributions. $76,851 of these 45 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
funds are in the General Fund, $4,169 are in the Electric Fund, $1,374 are in the Water Fund, $942 are in the Sewer Fund, $45 are in the Airport Fund, $308 are in the Refuse Fund, and $82 are in the Public Parking Fund.
At June 30, 2025, the Plan's assets are being held with Charles Schwab and Company. The trustee has delegated investment discretion and authority t o Shuster Advisory G roup, LLC, an independent SEC-registered investment advisor. Investment Advisor has full investment discretion over the assets in the account that are managed. Investment Advisor is authorized to purchase, sell, exchange, invest, re-invest and manage the designated assets held in the account without prior approval or subsequent approval of any other party to the plan. This management shall be based upon the account's investment objectives provided by the Employer/Plan Sponsor/Plan Administrator. The goal of the Plan's investment program is to provide a reasonable level of growth which, will result in sufficient assets to pay the present and future obligations of the Plan. The following objectives are intended to assist in achieving this goal:
The Plan should seek to earn a return in excess of its policy benchmark over the life of the Plan.
The Plan's assets will be managed on a total return basis which takes into consideration both investment income and capital appreciation.
While the Employer/Plan Sponsor recognizes the importance of preservation of captial, it also adheres to the principle that varying degrees of investment risk are generally rewarded with compensating returns. To acheive these objectives, the Employer/Plan Sponsor allocates its assets (asset allocation) with a strategic perspective of the capital markets.
Investment Objective: Moderate Growth
Risk Tolerance: Moderate Growth
Strategic Asset Allocation: Moderate Growth
Strategic Asset
Allocation Ranges Policy
Cash 0% - 10% 2%
Fixed income 28% - 48% 38%
Equity 50% - 70% 60%
Disclosures Relating to Fair Value Measurement and Application Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy t hat prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identifcal assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy a re described as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in an active market
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive;
Inputs other than quoted prices that are observable for the asset or liability;
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City's own assumptions about the inputs market participants would use in pricing the asset or liability ( including assumptions about risk). The unobservable inputs are developed based on the best information available in the circumstances and may include the City's own data.
The fair value of the City's investments in categorized within Level 2 of the fair value hierarchy u sing the institutional bond quotes with evaluations based on various market and industry inputs.
46 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
The City h as the following recurring fair value measurements as of June 30, 2025:
Total
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Mortgage Pass-Through Securities $ 38,834 $ - $ 38,834 $ - Asset-Backed Securities 118,410 - 118,410 -
U.S. Treasury Obligations 410,115 - 410,115 -
Federal Agency Obligations 34,923 - 34,923 -
Medium-Term Corporate Notes 206,387 - 206,387 -
Supranational Securities 73,624 - 73,624 -
Held by Fiscal Agent:
Asset-Backed Securities 932 - 932 -
Mortgage Pass-Through
Securities 437 - 437 -
U.S. Treasury Obligations 76,800 - 76,800 -
Federal Agency Obligations 1,251 - 1,251 -
Medium-Term Corporate Notes 7,789 - 7,789 -
Supranational Securities 3,588 - 3,588 -
Total 973,090 $ - $ 973,090 $ -
Investments not subject to
fair value hierarchy:
Joint Powers Authority 126,381
Local Agency Investment Fund 1,377
Mutual Funds 10,240
Unit Investment Trusts 73,336
Money Market Funds 147,873
Total Investments $ 1,332,297
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity o f its fair value to changes in market interest rates. The City’s investment policy r equires that the interest rate risk exposure be managed by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity e venly o ver time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity o f the fair values of the City’s investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by t he following table that shows the distribution of the City’s investments by maturity:
Remaining Maturity (in Months)
Total
12 Months
or Less
13 to 36
Months
37 to 60
Months
More than
60 Months
Money Market Mutual Funds $ 4,914 $ 4,914 $ - $ - $ -
Joint Powers Authority Pools 126,381 126,381 - - -
Mortgage Pass-Through Securities 38,834 224 17,819 20,791 - Asset-Backed Securities 118,410 4,168 37,141 77,101 -
U.S. Treasury Obligations 410,115 - 151,717 258,398 -
Federal Agency Obligations 34,923 7,776 27,147 - -
Medium-Term Corporate Notes 206,387 30,328 86,677 89,382 - Supranational Securities 73,624 14,190 - 59,434 -
Held by Fiscal Agent
Money Market Mutual Funds 142,959 142,959 - - -
Mutual Funds 10,240 10,240 - - -
Unit Investment Trusts 73,336 73,336 - - -
Local Agency Investment Fund 1,377 1,377 - - -
Asset-Backed Securities 932 15 473 444 -
Mortgage Pass-Through Securities 437 - - 437 -
U.S. Treasury Obligations 76,800 37,243 30,190 9,367 -
Federal Agency Obligations 1,251 1,251 - - -
Medium-Term Corporate Notes 7,789 748 1,094 5,947 -
Supranational Securities 3,588 2,006 1,582 - -
Total $ 1,332,297 $ 457,156 $ 353,840 $ 521,301 $ -
The City assumes that callable investments will not be called.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of year-end for each investment type:
47 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Ratings as of Year End *
Total AAA AA A Unrated
Money Market Mutual Funds $ 4,914 $ 4,914 $ - $ - $ -
Joint Powers Authority Pools 126,381 126,381 - - -
Mortgage Pass-Through Securities 38,834 30,874 7,960 - - Asset-Backed Securities 118,410 84,514 - - 33,896
U.S. Treasury Obligations 410,115 - 410,115 - -
Federal Agency Obligations 34,923 - 34,923 - -
Medium-Term Corporate Notes 206,387 6,405 59,452 96,591 43,939 Supranational Securities 73,624 - - - 73,624
Held by Fiscal Agent
Money Market Mutual Funds 142,959 38,364 - - 104,595
Mutual Funds 10,240 - - - 10,240
Unit Investment Trusts 73,336 - - - 73,336
Local Agency Investment Fund 1,377 - - - 1,377
Asset-Backed Securities 932 472 - - 460
Mortgage Pass-Through
Securities 437 437 - - -
U.S. Treasury Obligations 76,800 - 73,712 3,088 -
Federal Agency Obligations 1,251 - 1,251 - -
Medium-Term Corporate Notes 7,789 - 1,881 3,540 2,368
Supranational Securities 3,588 - - - 3,588
Total $ 1,332,297 $ 292,361 $ 589,294 $ 103,219 $ 347,423 *Fitch rating used with "-" and "+" removed for simplicity Concentration on Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stated above. For fiscal year ended June 30, 2025, the City did not have any investments in any one issuer (other than U.S. Treasury s ecurities, money m arket funds, and external investment pools) that represent 5% or more of total City investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository f inancial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City’s investment policy r equires that a third-party b ank trust department hold all securities owned by t he City. All trades are settled on a delivery vs. payment basis through the City’s safekeeping agent. The City h as no deposits with financial institutions; bank balances are swept daily i nto a money m arket account.
The pledge to secure deposits is administered by the California Commissioner of Business Oversight. Collateral is required for demand deposits at 110% of all deposits not covered by federal depository insurance (FDIC) if obligations of the United States and its agencies, or obligations of the State or its municipalities, school districts, and district corporations are pledged. Collateral of 150% is required if a deposit is secured by f irst mortgages or first trust deeds upon improved residential real property l ocated in California. All such collateral is considered to be held by the pledging financial institutions’ trust departments or agents in the name of the City. Obligations pledged to secure deposits must be delivered to an institution other than the institution in which the deposit is made; however, the trust department of the same institution may hold them.
Written custodial agreements are required to provide, among other things, that the collateral securities are held separate from the assets of the custodial institution.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by C alifornia Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Investment in Joint Powers Authority
The City is a voluntary participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by t he California Asset Management Trust and created through a joint powers agency a s a pooled short-term porfolio and cash management vehicle for California public agencies under California Government Code Section 53601(p). CAMP is governed by a seven-member Board of Trustees comprised of finance directors and treasurers of California public agencies. The City reports its investments in CAMP at the fair value amounts provided by C AMP, and is exempt from the fair value hierarchy.
48 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 4. Capital, Lease, and Subscription Assets
The following is a summary o f changes in the capital assets during the fiscal year ended June 30, 2025:
Governmental Activities:
Beginning
Balance as
Restated
Additions/
Transfers In
Deletions/
Transfers
Out Reclassifications
Ending
Balance
Capital assets, not depreciated:
Land $ 379,321 $ 1,264 $ (263) $ 1,727 $ 382,049
Construction in progress 16,703 41,908 (6) (15,034) 43,571 Total capital assets, not
depreciated 396,024 43,172 (269) (13,307) 425,620
Capital assets, being depreciated:
Buildings 192,124 188 - 372 192,684
Improvements other than buildings 275,263 307 (1) 6,235 281,804 Machinery and equipment 139,446 15,900 (2,437) 2,729 155,638 Intangibles, depreciable 219 - - - 219
Infrastructure 1,236,026 - (177) 3,971 1,239,820
Total capital assets, being
depreciated 1,843,078 16,395 (2,615) 13,307 1,870,165
Less: accumulated depreciation for:
Buildings (92,695) (4,965) - - (97,660)
Improvements other than buildings (190,284) (12,629) 1 - (202,912) Machinery and equipment (94,502) (11,361) 2,043 - (103,820) Intangibles, depreciable (219) - - - (219)
Infrastructure (556,410) (31,060) 204 - (587,266)
Total accumulated
depreciation (934,110) (60,015) 2,248 - (991,877)
Total capital assets being
depreciated, net 908,968 (43,620) (367) 13,307 878,288
Governmental Activities
capital assets, net $ 1,304,992 $ (448) $ (636) $ - $ 1,303,908 Lease and subscription assets, being
amortized
Buildings 900 918 (694) - 1,124
Machinery and equipment 584 182 (60) - 706
Subscription-based information
technology arrangements 4,133 6,440 (2,272) - 8,301
Total lease and subscription
assets 5,617 7,540 (3,026) - 10,131
Less accumulated amortization
Buildings (756) (108) 695 - (169)
Machinery and equipment (149) (139) 59 - (229)
Subscription-based information
technology arrangements (2,260) (2,152) 2,272 - (2,140) Total lease and subscription
assets accumulated
amortization (3,165) (2,399) 3,026 - (2,538)
Total lease and subscription
assets, net 2,452 5,141 - - 7,593
Capital, lease, and
subscription assets, net $ 1,307,444 $ 4,693 $ (636) $ - $ 1,311,501 Business-Type Activities:
Beginning
Balance as
Restated
Additions/
Transfers In
Deletions/
Transfers
Out Reclassifications
Ending
Balance
Capital assets, not depreciated:
Land $ 103,422 $ 85 $ - $ 8 $ 103,515
Intangible assets 21,496 - - - 21,496
Construction in progress 122,423 111,956 (55) (91,967) 142,357 Total capital assets, not
depreciated 247,341 112,041 (55) (91,959) 267,368
Capital assets, being depreciated:
Buildings 679,458 - (126) 7,912 687,244
Improvements other than buildings 2,105,301 2,087 (8,033) 66,795 2,166,150 Machinery and equipment 122,315 360 (4,367) 17,220 135,528 Intangibles, depreciable 31,545 - - 32 31,577
Total capital assets, being
depreciated 2,938,619 2,447 (12,526) 91,959 3,020,499
Less: accumulated depreciation for:
Buildings (241,907) (14,456) 126 - (256,237)
Improvements other than buildings (888,106) (54,096) 7,368 - (934,834) Machinery and equipment (84,761) (7,387) 4,168 - (87,980) Intangibles, depreciable (25,794) (2,861) - - (28,655)
Total accumulated
depreciation (1,240,568) (78,800) 11,662 - (1,307,706)
Total capital assets being
depreciated, net 1,698,051 (76,353) (864) 91,959 1,712,793 Business-Type activities
capital assets, net $ 1,945,392 $ 35,688 $ (919) $ - $ 1,980,161 Lease and subscription assets, being
amortized
Land 312 473 (208) - 577
Buildings 348 - - - 348
Machinery and equipment 332 305 (20) - 617
Subscription-based information
technology arrangements 514 93 (169) - 438
Total lease and subscription
assets 1,506 871 (397) - 1,980
Less accumulated amortization
Land (223) (130) 208 - (145)
Buildings (224) (74) - - (298)
Machinery and equipment (114) (144) 20 - (238)
Subscription-based information
technology arrangements (220) (184) 169 - (235)
Total lease and subscription
assets accumulated
amortization (781) (532) 397 - (916)
Total lease and subscription
assets, net 725 339 - - 1,064
Capital, lease, and
subscription assets, net $ 1,946,117 $ 36,027 $ (919) $ - $ 1,981,225 49 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Depreciation expense was charged to various functions as follows:
Governmental Activities:
General government $ 3,587
Public safety 9,841
Highways and streets 32,671
Culture and recreation 12,360
Internal service funds 1,556
Total depreciation expense - Governmental
Activities $ 60,015
Business-Type Activities:
Electric $ 39,371
Water 18,100
Sewer 14,913
Airport 756
Refuse 1,117
Transportation 258
Public Parking 1,166
Civic Entertainment 3,119
Total depreciation expense -
Business-Type Activities $ 78,800
Amortization expense was charged to various functions as follows:
Governmental Activities:
General government $ 2,152
Public safety 98
Highways and streets 11
Culture and recreation 131
Internal service funds 7
Total amortization expense - Governmental
Activities $ 2,399
Business-type Activities:
Electric $ 260
Water 13
Sewer 82
Airport 2
Refuse 6
Transportation 95
Public Parking 74
Total amortization expense - Governmental
Activities $ 532
Note 5. Leases and Subscription-Based Information Technology Arrangements
Leases Receivable
Leases are financings of the right-to-use an underlying asset and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
The City of Riverside has various leases as a Lessor for the use of various land, building and equipment as of the end of the fiscal year. The terms range from 2 to 55 y ears beginning on the contract commencement date. As of June 30, 2025, the value of the lease receivable is $119,920. The leases have interest rates ranging from 1.68% to 3.72%. The value of the deferred inflow of resources as of June 30, 2025 w as $128,138 and the City r ecognized lease revenue of $6,588 during the fiscal year.
Governmental Activities
Fiscal Year Principal Interest Total Payments
2026 $ 1,106 $ 228 $ 1,334
2027 1,090 207 1,297
2028 956 187 1,143
2029 846 169 1,015
2030 593 153 746
2031-2035 1,533 607 2,140
2036-2040 393 529 922
2041-2045 535 464 999
2046-2050 575 378 953
2051-2055 716 274 990
2056-2060 959 134 1,093
2061-2065 303 6 309
Total $ 9,605 $ 3,336 $ 12,941
50 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2026 $ 2,988 $ 2,173 $ 5,161
2027 2,841 2,122 4,963
2028 2,340 2,084 4,424
2029 1,863 2,042 3,905
2030 1,542 2,018 3,560
2031-2035 6,822 9,508 16,330
2036-2040 6,668 8,341 15,009
2041-2045 9,120 7,286 16,406
2046-2050 10,414 6,404 16,818
2051-2055 12,165 5,374 17,539
2056-2060 14,486 4,171 18,657
2061-2065 16,430 2,766 19,196
2066-2070 17,560 1,205 18,765
2071-2075 5,076 122 5,198
Total $ 110,315 $ 55,616 $ 165,931
Lease Liability
Leases are financings of the right-to-use an underlying asset and a lessee is required to recognize a lease liability and an intangible lease asset.
The City of Riverside has various leases as Lessee for the use of various land, building and equipment as of the end of the fiscal year. The City is required to make principal and interest payments through fiscal year 2030. As of June 30, 2025, the value of the lease liability is $2,250. The leases have an interest rates ranging from 0.52% to 2.80%. The value of the lease asset as of June 30, 2025 of $3,372 w ith accumulated amortization of $1,079 a nd is included with land, buildings, and machinery and equipment on the table below:
Amount of Lease Assets by
Major Classes of Underlying
Asset
Asset Class
Lease Asset
Value
Accumulated
Amortization
Land $ 577 $ (145)
Buildings 1,472 (467)
Machinery and equipment 1,323 (467)
$ 3,372 $ (1,079)
Governmental Activities:
Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
Lease liability $ 586 $ 1,100 $ - $ (246) $ 1,440 $ 321 Business-Type Activities::
Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
Lease liability $ 443 $ 778 $ - $ (411) $ 810 $ 299
Governmental Activities
Fiscal Year Principal Interest Total Payments
2026 $ 321 $ 34 $ 355
2027 303 26 329
2028 305 18 323
2029 298 10 308
2030 213 2 215
Total $ 1,440 $ 90 $ 1,530
51 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities
Fiscal Year
Principal
Payments
Interest
Payments Total Payments
2026 $ 299 $ 16 $ 315
2027 221 10 231
2028 145 6 151
2029 140 2 142
2030 5 - 5
Total $ 810 $ 34 $ 844
Subscription-Based Information Technology Arrangements Liability The City o f Riverside h as several subscription-based information technology arrangements (SBITA) for the use of various software applications as of the end of the fiscal year. The City is required to make principal and interest payments through fiscal year 2035. As of June 30, 2025, the value of the subscription liability was $5,220. The subscriptions have interest rates ranging from 0.52% to
2.80%. The value of the subscription asset as of June 30, 2025 is $8,739 with accumulated amortization of $2,375.
Governmental Activities:
Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
SBITA liability $ 1,119 $ 6,440 $ - $ (2,457) $ 5,102 $ 2,252 Business-Type Activities::
Beginning
Balance Additions Reclass Reductions
Ending
Balance
Due Within
One Year
SBITA liability $ 241 $ 93 $ - $ (216) $ 118 $ 118
Governmental Activities
Fiscal Year Principal Interest Total Payments
2026 $ 2,252 $ 105 $ 2,357
2027 2,079 46 2,125
2028 114 20 134
2029 101 17 118
2030 105 14 119
2031-2035 451 24 475
Total $ 5,102 $ 226 $ 5,328
Business-Type Activities
Fiscal Year Principal Interest Total Payments
2026 $ 118 $ 1 $ 119
Total $ 118 $ 1 $ 119
Note 6. Derivative Instruments
Interest Rate Swaps
The City has three cash flow hedging derivative instruments, which were pay- fixed swaps. These swaps were employed as a hedge against debt that was refunded in 2008 and 2011 and against debt issued in 2012. The balance of the deferral account for each swap is included as part of the deferred charge on refunding associated with the new bonds. The swaps were also employed as a hedge against the new debt. Hedge accounting was applied to that portion of the hedging relationship, which was determined to be effective. Hedge accounting was also applied to the swap associated with the debt issued in 2012, which was also determined to be effective.
The City's three cash flow hedging derivative instruments are 2011A Water Bonds, 2008 COPS and 2012 Convention Center Financing.
The following is a summary of the derivative activity for the year ended June 30, 2025:
52 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Notional
Amount
Fair Value
as of
06/30/25
Change in
Fair Value
for Fiscal
Year
Governmental Activities
2008 Renaissance Certificates of Participation* $ 49,680 $ (2,809) $ (548) Business-Type Activities
2008 Renaissance Certificates of Participation* 22,320 (1,218) (238) 2011 Water Refunding/Revenue Bonds Series A 24,050 (1,185) (354) 2012 Convention Center Financing 21,735 590 (518)
* The 2008 Riverside Renaissance Certificates of Participation were distributed between Governmental Activities and Business-Type Activities to properly reflect thier proportional share.
Objective: In order to lower borrowing costs as compared to fixed-rate bonds, the City e ntered into interest rate swap agreements in connection with it's $59,000 2011A Water Revenue Bonds, $128,300 2008 Certificates of Participation (“COP”) and $41,650 Convention Center.
Terms: Per the existing swap agreements, the City pays a counterparty a fixed payment and receives a variable payment computed as 62.68% of the London Interbank Offering Rate (LIBOR) one month index plus 12 basis points for the Water swap. For the COP swap, the City pays a fixed payment and receives a variable payment computed as 63.00% of the LIBOR one-month index plus 7 basis points. The Convention Center financing consists of an initial 21-month variable rate interest only period during construction, which swaps to a fixed rate for the remaining 20-year amortization whereby the City will pay a fixed payment and will receive a variable payment computed at 65.01% of the LIBOR one month index plus 150 basis points. The notional value of the swaps and the principal amounts of the associated debt decline at a smaller rate until the debt is completely retired in fiscal year 2037.
The bond and the related swap agreement for the 2011A Water Revenue/Refunding Bonds mature on October 1, 2035. The 2008 Certificates of Participation mature on March 1, 2037. The loan with PNC Bank, N.A. will be paid in full on April 1, 2034.
As of June 30, 2025, rates were as follows:
2011 Water
Refunding/
Revenue
Bonds
Series A
2008
Renaissance
COPs
2012
Convention
Center
Financing
Rates Rates Rates
Interest rate swap:
Fixed payment to counterparty %3.20000 %3.36200 %3.24000 Variable payment from counterparty %(1.08784) %(0.96218) %(2.72089) Net interest rate swap payments %2.11216 %2.39982 %0.51911 Variable rate bond coupon payments %0.89835 %0.79157 %2.72089 Synthetic interest rate on bonds %3.01051 %3.19139 %3.24000 Fair Value: As of June 30, 2025, in connection with all swap arrangements, the transactions had a combined net negative fair value of $4,621. Because the coupons on the City’s variable-rate bonds adjust to changing interest rates, the bonds do not have a corresponding fair value decrease. The fair value was developed by a p ricing service using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by t he yield curve correctly a nticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement of the swap.
Credit risk: The City i s not exposed to substantial credit risk because each swap, with the exception of the Convention Center Financing swap have a negative fair value. The swap counterparties, Bank of America, N.A., PNC Financial Services Group, Inc. and J.P. Morgan Chase & Co. were rated A+, A, and A respectively by Standard & Poor’s. To mitigate the potential for credit risk for these swaps, the swap agreements require the fair value of the swap to be collateralized by t he counterparty w ith U.S. Government securities if the counterparties’ rating decreases to negotiated trigger points. Collateral would be posted with a third-party custodian. At June 30, 2025, there is no requirement for collateral posting for any of the outstanding swaps.
Basis risk: The City is exposed to basis risk on its pay-fixed interest rate swap and rate cap hedging derivative instruments because the variable-rate payments received by t he City o n these hedging derivative instruments are based on a rate or index other than interest rates the city pays on its hedged variable-rate debt. If a change occurs that results in the rates’ moving to convergence, the expected cost savings may not be realized. 53 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Termination risk: The derivative contract uses the International Swap Dealers Association Master Agreement, which includes standard termination events, such as failure to pay and bankruptcy. The Schedule to the Master Agreement includes an “additional termination event.” That is, a swap may be terminated by the City i f either counterparty’s credit quality f alls below “BBB-" as issued by Standard and Poor’s. The City or the counterparty may terminate a swap if the other party f ails to perform under the terms of the contract. If a swap is terminated, the variable-rate bond would no longer carry a s ynthetic interest rate. Also, if at the time of termination, a swap has a negative fair value, the City would be liable to the counterparty for a payment equal to the swap’s fair value.
Swap payments and associated debt: As of June 30, 2025, the debt service requirements of the variable-rate debt and net swap payments assuming current interest rates remain the same, for their term are summarized in the following table. As rates vary, variable-rate bond interest payments and net swap payments will vary.
Variable-Rate Bonds
Fiscal Year Principal Interest
Interest Rate
Swaps, Net Total
2026 $ 7,212 $ 1,417 $ 2,456 $ 11,085
2027 7,481 1,312 2,319 11,112
2028 7,754 1,203 2,176 11,133
2029 7,930 1,091 2,028 11,049
2030 11,481 952 1,821 14,254
2031-2035 59,038 2,460 5,492 66,990
2036-2040 18,150 159 474 18,783
Total $ 119,046 $ 8,594 $ 16,766 $ 144,406
Note 7. Letters of Credit
The City’s 2008 Certificates of Participation and 2011 Water Revenue Bonds (Series A) require an additional layer of security b etween the City a nd the purchaser of the bonds. The City has entered into the following letters of credit (“LOC”) in order to provide liquidity s hould all or a portion of the debt be optionally tendered to the remarketer without being successfully remarketed:
Debt Issue LOC Provider
LOC
Expiration
Date
Annual
Commitment
Fee
2008 Certificates of Participation Bank of America, N.A. 2026 0.350% 2011A Water Revenue Bonds PNC Bank, N.A. 2025 0.230%
To the extent that remarketing proceeds are insufficient or not available, tendered amounts will be paid from drawings made under an irrevocable direct- pay letter of credit.
Liquidity advances drawn against the LOC that are not repaid will be converted to an installment loan with principal to be paid semi-annually (2008 COPs) or quarterly ( 2011A Water Bonds) not to exceed a 5-year period. For the 2008 COPs, the City would be required to pay annual interest equal to the Bank Rate in effect on such date plus 3%, where the Bank Rate is currently calculated at the highest of (i) the Prime Rate plus 1%, (ii) the Federal Funds Rate plus 2%, and (iii) 7%. For the 2011A Water Bonds, the City w ould be required to pay annual interest equal to the highest of (i) the Prime Rate plus 3%, (ii) the Overnight Bank Rate plus 3.5%, and (iii) 9%. No amounts have ever been drawn against the two letters of credit due to a failed remarketing. The various indentures allow the City to convert the mode of the debt in the case of a failed remarketing.
On February 1 , 2019, the City e ntered into a subordinate letter of credit agreement with U.S. Bank, National Association. The agreement was renewed on February 1 , 2022, and again on June 2, 2025. The Subordinate Letter of Credit is a tool approved through the Electric and Water Utility Five-Year Rate Plan to manage rate increases by enabling the Electric Utility and Water Utility to reduce cash levels while maintaining compliance with the Riverside Public Utilities Cash Reserve Policy. Under the terms and conditions of the agreement, the City m ay b orrow up to $35,000 for purposes of the capital or operating financial needs of the Electric System and $25,000 for purposes of the capital or operating financial needs of the Water System. There were no borrowings against the LOC as of June 30, 2025.
54 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 8. Long-Term Obligations
Changes in Long-Term Obligations:
Below is a summary of changes in long-term obligations during the fiscal year:
Governmental Activities:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
General obligation bonds $ 1,756 $ - $ (1,756) $ - $ -
Pension obligation bonds 313,830 - (9,803) 304,027 9,884 Certificates of participation 75,067 - (5,279) 69,788 5,263 Lease revenue bonds 61,163 60,509 (20,082) 101,590 3,540 Direct borrowings:
Financed purchase 16,152 346 (3,863) 12,635 2,873
$ 467,968 $ 60,855 $ (40,783) $ 488,040 $ 21,560
Business-Type Activities:
Beginning
Balance (As
Corrected) Additions Reductions
Ending
Balance
Due Within
One Year
Revenue bonds $ 1,268,727 $ - $ (45,827) $1,222,900 $ 39,985 Arbitrage payable 673 3,190 - 3,862 -
Pension obligation bonds 95,253 - (9,365) 85,888 9,636
Certificates of participation 23,191 - (1,421) 21,770 1,481 Lease revenue bonds 5,688 5,271 (5,688) 5,271 414
Direct borrowings:
Notes payable 36,525 - (3,568) 32,957 3,689
Contracts payable 931 - - 931 150
Financed purchase 1,134 4,814 (650) 5,298 978
$ 1,432,122 $ 13,275 $ (66,519) $1,378,877 $ 56,333
Governmental Activities:
Pension Obligation Bonds - Governmental Activities:
Principal
Outstanding
In 2018, the 2017 Taxable Pension Obligation Bonds were distributed between Governmental Activities, Business-Type Activities and the Successor Agency t o properly r eflect their proportional share. Pension Obligation bonds are not
collateralized by assets, nor do they constitute an obligation of the City o f Riverside whereby t he City i s obligated to levy o r pledge any form of taxation.
In 2020, the 2017 Taxable Pension Obligation Bonds
outstanding balances in the Successor Agency were distributed between Governmental Activities and Business-Type Activities. $31,960 2017 Taxable Pension Obligation Bonds Series A;
1.25% to 3.125%, due in annual installments from $2,910 to $3,580 through June 1, 2027; $15,299 relates to Governmental Activities. $ 3,377
$432,165 2020 Taxable Pension Obligation Bonds Series A;
1.646% to 3.857% due in annual installments from $2,920 to $28,310 through June 1, 2045. $324,567 relates to
Governmental Activities 300,726
Subtotal 304,103
Less: unamortized bond discount (76)
Total pension obligation bonds $ 304,027
Remaining pension obligation bond debt service payments will be made from unrestricted revenues of the General Fund. Annual debt service requirements to maturity are as follows:
55 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Fiscal Year Principal Interest Total
2026 $ 9,884 $ 11,123 $ 21,007
2027 10,966 10,868 21,834
2028 10,343 10,570 20,913
2029 11,500 10,283 21,783
2030 12,594 9,959 22,553
2031-2035 87,039 42,132 129,171
2036-2040 107,137 22,632 129,769
2041-2045 54,640 4,859 59,499
Discount (76) - (76)
Total $ 304,027 $ 122,426 $ 426,453
Certificates of Participation – Governmental Activities:
Principal
Outstanding
In 2019, the 2008 Riverside Renaissance Certificates of Participation were distributed between Governmental Activities and Business-Type Activities to properly reflect their proportional share.
$19,945 2006 Galleria at Tyler Public Improvements Certificates of Participation are secured with collateral of the two level 912 space parking structure located near Tyler Street and Nordstrom store, the Tyler Mall North Plaza, the North Plaza parking, storm drains related to those improvements, and portions of two arterial streets. In 2019, the 2019A Lease Revenue Refunding Bonds were issued to refinance all but $5 of the outstanding 2006 Lease Revenue Certificates of Participation (Galleria at Tyler Public Improvements). Annual interest payments are due until September 1, 2036, when the final principal will be paid. $ 5 $128,300 2008 Riverside Renaissance Certificates of
Participation are secured with collateral of the Adulka Park, Fairmount Park and Golf Course, Arlington Heights Sports Park, Orange Terrace Park, Orange Terrace Community Center and Orange Terrace Library; issued at a variable rate; however, the City e ntered into an agreement to convert to a fixed rate of
3.4%. For information on the swap agreement see Note 6. Due in annual installments from $2,900 to $7,200 through March 1, 2037; $89,507 relates to Governmental Activities. 50,230 $21,190 2023 Riverside Public Financing Authority L ocal Measure A Sales Tax Revenue (Installment Sale) Refunding Certificates of Participation. On 7/27/2023 these bonds refunded and replaced the 2013 Pavement Rehab Certificates of
Participation. The City e ntered into an installment sale with a fixed rate of 5%. The annual payments are $1,830 to $2,595 through June 1, 2033. 17,604
Subtotal 67,839
Plus: unamortized bond premium 1,949
Total certificates of participation $ 69,788
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:
Fiscal Year Principal Interest Total
2026 $ 5,263 $ 2,540 $ 7,803
2027 5,493 2,332 7,825
2028 5,727 2,115 7,842
2029 5,902 1,888 7,790
2030 6,147 1,542 7,689
2031-2035 29,396 4,128 33,524
2036-2040 9,911 419 10,330
Premium 1,949 - 1,949
Total $ 69,788 $ 14,964 $ 84,752
56 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Lease Revenue Bonds - Governmental Activities:
Principal
Outstanding
$15,980 2019A Lease Revenue Refunding Bonds (Galleria at Tyler Public Improvements) are secured by lease payments on the two level 912 space parking structure located near Tyler Street and Nordstrom store, the Tyler Mall North Plaza, the North Plaza parking, storm drains related to those
improvements, and portions of two arterial streets. The bonds were issued to refinance all but $5 of the outstanding 2006 Lease Revenue Certificates of Participation (Galleria at Tyler Public Improvements); 2.75% to 4.0%, due in annual
installments from $605 to $1,180 through November 1, 2036.
The refunding transaction resulted in a total net present value savings of $1,140. In the event of default, the Trustee may retain the Lease Agreement and hold the City liable for all Base Rental Payments on an annual basis. The rental payments may not be accelerated. $ 11,685
$33,505 2019B Lease Revenue Refunding Bonds (Main Library Project); 3.0% to 5.0%, due in annual installments from $1,245 to $2,645 through November 1, 2036. The bonds are secured by an amendment to the Ground Lease entered into by t he City upon issuance of the 2012A Lease Revenue Bonds. It adds the remainder of the City H all Complex, the Corporation Yard Administration Building and annex, Bobby Bonds Park, and the Main Library site. In the event of default, the Trustee may retain the Lease Agreement and hold the City liable for all Base Rental Payments on an annual basis. The rental payments may not be accelerated. 24,605
$19,500 2024A Lease Revenue Refunding Bonds; 5.0%, due in annual installments from $1,725 to $2,610 through November 1, 2033. The net proceeds of the sale of the Series 2024A Bonds were used to refund the 2012A Lease Revenue Refunding
Bonds. The bonds are secured by lease payments on a portion of the City Hall Complex and the Lincoln Police Patrol Center. 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. Similar to the 2012A Bonds, the 2024A Bonds were distributed between Governmental Activities, Business-Type Activities, and Successor Agency t o properly r eflect their proportional share. The Governmental Activities portion is $13,449. 13,449
$45,000 2025A Lease Revenue Bonds (Museum Project); 5.0% to 5.25%, due in annual installments from $625 to $1,605 through November 1, 2045. 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. 42,520
Subtotal 92,259
Add: unamortized bond premium 9,331
Total lease revenue bonds $ 101,590
Remaining lease revenue bond debt service payments will be made from unrestricted revenues of the Debt Service Fund. Annual debt service requirements to maturity are as follows:
57 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Fiscal Year Principal Interest Total
2026 $ 3,540 $ 4,477 $ 8,017
2027 4,366 4,339 8,705
2028 4,567 4,132 8,699
2029 4,776 3,915 8,691
2030 4,998 3,685 8,683
2031-2035 26,877 14,549 41,426
2036-2040 12,840 9,311 22,151
2041-2045 6,910 7,355 14,265
2046-2050 8,950 5,251 14,201
2051-2055 11,695 2,430 14,125
2056-2060 2,740 75 2,815
Premium 9,331 - 9,331
Total $ 101,590 $ 59,519 $ 161,109
Business-Type Activities:
The following debt has been issued for the purpose of generating capital resources for use in acquiring or constructing municipal facilities or infrastructure projects.
Revenue Bonds - Business-Type Activities:
Principal
Outstanding
Electric
All electric revenue bonds are covenanted per the Amended and Restated Resolution No. 17662 (Electric) Master Resolution that upon the occurrence and continuation of an event of default, the owners of 25% in aggregate amount of Bond Obligation may, by written notice to the City, declare the entire unpaid principal and accreted value of the bonds due and payable should the City fail to pay its debts as they b ecome due or upon the entry of any decree or order of bankruptcy of the City.
$140,380 2010 Electric Revenue Bonds fixed rate bonds, 3% to
7.65%, due in annual installments from $95 to $33,725 through October 1, 2040. $ 120,805
$283,325 2019 Electric Refunding/Revenue Bonds; Series A, fixed rate bonds, 5.0%, due in annual installments from $3,545 to $24,005 through October 1, 2048. The bonds refunded the 2008 Electric Revenue Bonds Series D and partially r efunded the 2008 Electric Revenue Bonds Series A and C. The refunding transactions resulted in a total net present value savings of $36,810. 218,635
$31,390 2023A Electric Refunding/Revenue Bonds; Series A fixed rate bonds, 5.0%, due in annual installments from $990 to $2,395 through October 1, 2043. T he bonds refunded the 2013A Electric Revenue bonds. 30,400
$213,295 2024 Electric Refunding/Revenue Bonds; Series A fixed rate bonds, 5.0%, due in annual installments from $460 to $11,455 through October 1, 2050. The bonds refunded 100% of the remaining 2008A Electric Revnue bonds, 2008C Electric Revenue bonds, and 2011A Electric Revenue Bonds. A s of 6/30/2025, the 2024A Electric Revenue bonds have $2,526 in arbitrage liability. 212,835
Subtotal 582,675
Add: Unamortized bond premium 72,717
Subtotal - Electric 655,392
58 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Water
All water revenue bonds are covenanted per the Amended and Restated Resolution No. 17664 (Water) Master Resolution that upon the occurrence and continuation of an event of default, the owners of 25% in aggregate amount of Bond Obligation may, by written notice to the City, declare the entire unpaid principal and accreted value of the bonds due and payable should the City fail to pay its debts as they b ecome due or upon the entry of any decree or order of bankruptcy of the City.
$67,790 2009 Water Revenue Bonds; Series B fixed rate bonds,
5.1% to 6.3%, due in annual installments from $2,475 to $4,985 through October 1, 2039. 57,365
$59,000 2011 Water Refunding/Revenue Bonds; Series A. The bonds were issued at a variable rate; however, the City entered into an agreement to convert to a fixed rate of 3.2%. F or information on the swap agreements see Note 6. B onds are due in annual installments from $600 to $3,950 through October 1, 2035. 24,050
$114,215 2019 Water Refunding/Revenue Bonds; Series A,
fixed rate bonds, 5.0%, due in annual installments from $1,680 to $8,455 through October 1, 2048. T he bonds refunded the 2008 Water Revenue Bonds Series B and partially refunded and partially unwound the swap on the 2011 Water Revenue Bonds Series A. The refunding transactions resulted in a total net present value savings of $10,759. 89,105
$58,025 2022 Water Revenue Bonds; Series A fixed rate bonds,
5.0%, due in annual installments from $3,618 to $3,695 through October 1, 2052. As of June 30, 2025, the 2022A Water
Revenue bonds have $1,337 in arbitrage liability. 56,370 Subtotal 226,890
Add: Unamortized bond premium 19,630
Subtotal - Water 246,520
Sewer
All sewer revenue bonds are covenanted per Resolution No. 21860 Sewer Master Resolution that upon the occurrence and continuation of an event of default, the owners of 25% in aggregate amount of Bond Obligation may, by written notice to the City, declare the entire unpaid principal and accreted value of the bonds due and payable should the City fail to pay its debts as they become due or upon the entry of any decree or order of bankruptcy of the City.
$200,030 2015 Sewer Revenue Bonds; Series A fixed rate
bonds, 4% to 5%, due in annual installments from $4,790 to $14,175 through August 1, 2040. 161,060
$153,670 2018 Sewer Revenue Bonds; Series A fixed rate
bonds, 4% to 5%, due in annual installments from $2,905 to $11,775 through August 1, 2039. T he bonds advanced
refunded the 2009 Direct Pay B uild America Bonds Series B.
The refunding transaction resulted in a total net present value savings of $18,932. 128,515
Subtotal 289,575
Add: unamortized bond premium 31,413
Subtotal - Sewer 320,988
Total revenue bonds $ 1,222,900
Remaining revenue bond debt service payments will be made from revenues of the Electric, Water and Sewer Enterprise funds. Annual debt service requirements to maturity are as follows:
59 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Electric
Fiscal Year Principal Interest Total
2026 $ 18,475 $ 28,763 $ 47,238
2027 19,360 27,822 47,182
2028 20,320 26,830 47,150
2029 21,330 25,789 47,119
2030 22,405 24,696 47,101
2031-2035 135,625 104,147 239,772
2036-2040 171,650 66,554 238,204
2041-2045 100,965 27,809 128,774
2046-2050 72,545 8,873 81,418
Premium 72,717 - 72,717
Total $ 655,392 $ 341,283 $ 996,675
Water
Fiscal Year Principal Interest Total
2026 $ 8,840 $ 10,257 $ 19,097
2027 9,245 9,831 19,076
2028 9,665 9,385 19,050
2029 10,095 8,920 19,015
2030 10,755 8,429 19,184
2031-2035 58,385 35,044 93,429
2036-2040 64,935 20,955 85,890
2041-2045 20,820 11,242 32,062
2046-2050 23,845 5,413 29,258
2051-2055 10,305 - 10,305
Premium 19,630 - 19,630
Total $ 246,520 $ 119,476 $ 365,996
Sewer
Fiscal Year Principal Interest Total
2026 $ 12,670 $ 13,933 $ 26,603
2027 13,320 13,283 26,603
2028 14,000 12,600 26,600
2029 14,720 11,882 26,602
2030 15,475 11,127 26,602
2031-2035 90,115 42,888 133,003
2036-2040 115,100 17,909 133,009
2041-2045 14,175 354 14,529
Premium 31,413 - 31,413
Total $ 320,988 $ 123,976 $ 444,964
Pension Obligation Bonds - Business Type Activities:
Principal
Outstanding
In 2018, the 2017 Taxable Pension Obligation Bonds were distributed between Governmental Activities, Business-Type Activities, and the Successor Agency t o properly r eflect their proportional share. Pension Obligation Bonds are not
collateralized by assets, nor do they constitute a debt of the City of Riverside whereby the City is obligated to levy or pledge any form of taxation.
In 2020, the 2017 Taxable Pension Obligation Bonds
outstanding balances in the Successor Agency were distributed between Governmental Activities and Business-Type Activities. $31,960 2017 Taxable Pension Obligation Bonds Series A;
1.25% to 3.125%, due in annual installments from $2,910 to $3,580 through June 1, 2027. $16,661 relates to Business Type Activities. $ 3,678
60 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
$432,165 2020 Taxable Pension Obligation Bonds Series A;
1.646% to 3.857% due in annual installments from $2,920 to $28,310 through June 1, 2045. $107,598 relates to Business- Type Activities. 82,210
Total pension obligation bonds $ 85,888
Remaining pension obligation bond debt service payments will be made from unrestricted revenues of the Business-Type Activities funds. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 9,636 $ 2,932 $ 12,568
2027 9,244 2,683 11,927
2028 6,182 2,430 8,612
2029 4,925 2,259 7,184
2030 3,716 2,119 5,835
2031-2035 24,146 8,328 32,474
2036-2040 22,658 3,495 26,153
2041-2045 5,381 316 5,697
Total $ 85,888 $ 24,562 $ 110,450
Certificates of Participation – Business Type Activities:
Principal
Outstanding
In 2019, the 2008 Riverside Renaissance Certificates of Participation were distributed between Governmental Activities and Business-Type Activities to properly reflect their proportional shares.
$128,300 2008 Riverside Renaissance Certificates of
Participation are secured with collateral of the Andulka Park, Fairmount Park and Golf Course, Arlington Heights Sports Park, Orange Terrace Park, Orange Terrace Community Center, and Orange Terrace Library; issued at a variable rate; however, the City e ntered into an agreement to convert to a fixed rate of
3.4%. For information on the swap agreement see Note 6. Due in annual installments from $2,900 to $7,200 through March 1, 2037; $38,793 relates to the Civic Entertainment Fund. $ 21,770 Total certificates of participation $ 21,770
Remaining certificates of participation debt service payments will be made from unrestricted revenues of the Civic Entertainment Fund. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 1,481 $ 719 $ 2,200
2027 1,542 669 2,211
2028 1,603 617 2,220
2029 1,633 563 2,196
2030 1,693 507 2,200
2031-2035 9,524 1,623 11,147
2036-2040 4,294 181 4,475
Total $ 21,770 $ 4,879 $ 26,649
61 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Lease Revenue Bonds – Business Type Activities:
Principal
Outstanding
$19,500 2024A Lease Revenue Bonds ( ); 5.0%, due in annual installments from $1,725 to $2,610 through November 1, 2033.
The net proceeds of the sale of the Series 2024A Bonds were used to refund the 2012A Lease Revenue Refunding Bonds.
The bonds are secured by lease payments on a portion of the City Hall Complex and the Lincoln Police Patrol Center. In the event of default, the Trustee may retain the Lease Agreement and hold the City l iable for all Base Rental Payments on an annual basis. The rental payments may not be accelerated.
Similar to the 2012A Bonds, the 2024A Bonds were distributed between Governmental Activities, Business-Type Activities, and Successor Agency t o properly r eflect their proportional share.
The Business-Type Activities portion is $4,680. $ 4,680 Add: unamortized bond premium 591
Total lease revenue bonds $ 5,271
Remaining lease revenue bond debt service payments will be made from unrestricted revenues of the Parking Fund. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 414 $ 224 $ 638
2027 448 202 650
2028 470 179 649
2029 494 155 649
2030 520 130 650
2031-2035 2,334 240 2,574
Premium 591 - 591
Total $ 5,271 $ 1,130 $ 6,401
The following are legally required debt service cash reserves. These amounts, at a minimum, are held by the City or fiscal agents at June 30, 2025:
Governmental Long-Term Obligations:
Certificates of participation $ 7,647
Total $ 7,647
The City has a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity t ables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by t he debt agreement) are indicated in the table below. The debt service coverage ratios also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment.
Description of
Pledge Revenue
Annual Amount of
Pledge Revenue
(net of expenses,
where required)
Annual Debt Service
Payments (all of
debt secured by
this revenue)
Coverage
Ratio
for FY
06/30/25
Electric revenues $ 175,782 * $ 54,997 3.20
Water revenues 53,445 * 21,294 2.51
Sewer revenues 39,372 ** 26,601 1.48
*Excludes non-cash pension expense
**Includes cash set-aside in a rate stabilization account in accordance with applicable bond covenants.
62 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
There are also a number of limitations and restrictions contained in Assessment Bond indentures. The City b elieves they a re in compliance with all significant limitations and restrictions.
Direct Borrowings: Notes Payable - Business-Type
Activities:
Principal
Outstanding
Public Parking Fund and Civic Entertainment Fund loan for Fox Entertainment Plaza project secured with collateral of the Fox Theater, Fox Entertainment Plaza, and Parking Garage No. 7.
3.85%, payable in net annual installments of $1,747, beginning June 16, 2011 through December 16, 2031. In the event of default, the City would continue to remain liable for the payment of Rental Payments and damages for breach of the Lease. $ 9,960 In July 1 9, 2012, the City s ecured financing in the amount of $41,650 with BBVA Compass Bank for the renovation and
expansion of the Riverside Convention Center (Civic
Entertainment Fund) secured with collateral of the convention center facility. In March 2014, the financing arrangement with BBVA was increased to $44,650. The financing consists of an initial 21-month variable rate interest only p eriod during construction that has a swap transaction layered over the remaining 20-year amortization resulting in a “synthetic fixed” rate of 3.24% for 20 of the 22 years. F or information on the swap agreement see Note 6. A t the end of the construction period, principal and interest are due on the first of each month, with equal payments each year of approximately $2,850. In the event of default, the outstanding amount of the site lease payment drawn by the City and not repaid will bear interest at a default rate that will be charged until the default is cured. 22,997 Total notes payable $ 32,957
Remaining notes payable debt service payments will be made from unrestricted revenues of the Water Fund, Public Parking Fund, and Civic Entertainment Fund. Annual debt service requirements to maturity are as follows:
Non-Major Enterprise Funds
Fiscal Year Principal Interest Total
2026 $ 3,689 $ 1,075 $ 4,764
2027 3,811 945 4,756
2028 3,940 811 4,751
2029 4,073 673 4,746
2030 4,210 530 4,740
2031-2035 13,234 758 13,992
Total $ 32,957 $ 4,792 $ 37,749
Direct Borrowings: Contracts Payable
Principal
Outstanding
Water stock acquisition rights payable on demand to various water companies $ 931
Direct Borrowings: Financed Purchase
The City purchased various equipment through financing arrangements in the governmental and proprietary fund types. These activities are recorded for both governmental and business-type activities in the government-wide financial statements. The assets and related obligations in governmental funds are not recorded in the fund statements. For proprietary f unds, the assets and their related liabilities are reported directly i n the fund. Amortization applicable to proprietary a ssets acquired through financing arrangements is included with depreciation for financial statement presentation.
63 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
The future minimum obligations as of June 30, 2025 were as follows:
Fiscal Year
Governmental
Activities
Business-Type
Activities
2026 $ 3,140 $ 1,174
2027 3,101 1,174
2028 2,188 857
2029 1,255 799
2030 1,238 799
Thereafter 2,476 1,200
Total minimum installments 13,398 6,003
Less: Amount representing interest
(rates ranging from 1.2% to 9%) (763) (705)
Total financed purchase $ 12,635 $ 5,298
Note 9. Compensated Absences
A liability i s recorded for unused vacation and similar compensatory l eave balances since the employees’ entitlement to these balances are attributable to services already rendered and it is probably that virtually all of these balances will be liquidated by e ither paid time-off or payments upon termination or retirement.
Below is a summary o f changes in compensated absences during the fiscal year:
Governmental Activities:
Beginning
Balance
Net
Increase/
(Decrease)
Ending
Balance
Due
Within
One Year
Compensated absences $ 34,445 $ 6,086 $ 40,531 $ 21,350 Business-Type Activities:
Beginning
Balance
Net
Increase/
(Decrease)
Ending
Balance
Due
Within
One Year
Compensated absences $ 12,350 $ 2,536 $ 14,886 $ 7,956
Note 10. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Property insurance coverage has a limit of $1,000,000, with a deductible of $100. Earthquake and flood insurance coverage has a limit of $25,000, with a deductible of 5% (subject to $100 minimum for earthquake and $100 for flood). Workers’ compensation insurance coverage has a limit of $25,000, with a self-insured retention of $3,000. The City h as four General Liability policies: a primary and and three excess General Liability policies. The primary General Liability policy coverage has a limit of $5,000 and the Excess General Liability policies provide an additional $20,000 of coverage, with a self- insured retention of $3,000. Both the primary a nd excess General liability policies cover general and auto liability claims including but not limited to Law Enforcement Liability a nd Public Officials Errors and Ommissions. There has been one claim settled in the last three fiscal years that exceed the City's self- insured retention. Internal service funds have been established to account for and finance the uninsured risks of loss. There have been additions to the claims and judgement liability related to the Simpson v. City of Riverside recorded in fiscal year 2024 and adjusted in fiscal year 2025. More information regarding the Simpson v. City of Riverside can be found in Note 25.
All funds of the City p articipate in the Risk Management program and make payments to the Internal Service Funds based on actuarial estimates of the amounts needed to fund prior and current year claims and incidents that have been incurred but not reported. Interfund premiums are accounted for as quasi- external transactions and are therefore recorded as revenues of the Internal Service Funds in the fund financial statements.
64 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Changes in the self-insurance fund’s claims and judgments amounts are:
Governmental Activities:
Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Claims and judgments $ 101,617 $ 25,990 $ (7,393) $ 120,214 $ 21,191 Unpaid claims, June 30,2023 $ 53,112
Incurred claims (including IBNR's) 61,371
Claim payments and adjustments (12,866)
Unpaid claims, June 30,2024 101,617
Incurred claims (including IBNR's) 25,990
Claim payments and adjustments (7,393)
Unpaid claims, June 30,2025 $ 120,214
Note 11. Landfill Capping
State and Federal laws and regulations require the City to place a final cover on all active landfills when closed and to perform certain maintenance and monitoring functions at the landfill site for 30 years after closure. To comply with these laws and regulations, the City is funding the costs of closure and "final capping" of the Tequesquite landfill located in the City. This area, comprised of approximately 1 20 acres, operated as a "Class II Sanitary L andfill" until its closure in 1985. During its operation, the landfill did not accept hazardous waste and no clean up and abatement or cease and desist orders have been issued to the City. The capacity used at June 30, 2025 was 100%. The remaining post closure period is currently 14 years.
The estimated costs as determined and updated by t he Public Works Department are associated with flood control upgrades, remediation of possible ground water contamination and control of methane gas. All potential costs have been recognized in the financial statements. However, there is the potential for these estimates to change due to inflation, deflation, technology, or change in laws or regulations. The City i s recovering such costs in rates charged to its customers. The portion of costs to be recovered through future rates is classified as a regulatory a sset and will be amortized over future periods.
Below is a summary of changes in landfill capping liability during the fiscal year:
Business-Type Activities:
Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Landfill capping $ 8,944 $ - $ (372) $ 8,572 $ 559
Note 12. Nuclear Decommissioning Liability
As of June 30, 2025, decommissioning liability b alance was $46,965 w ith a portion reflected as current liabilities payable from restricted assets. As a result of the updated SCE decommissioning cost estimate and the increase in the Electric Utility's estimated share, the decommissioning liability was increased by $5.8 million in fiscal year 2025. The offset of this liability increase was recorded as a decommissioning liability expense in fiscal year 2025.
The Electric Utility no longer provides additional funding to the trustee. However, since the decommissioning cost estimate is subject to a number of uncertainties including the cost of disposal of nuclear waste, site remediation costs, as well as a number of other assumptions and estimates, the Electric Utility h as set aside funds in the designated decommissioning reserve of $2,000 per year through fiscal year 2024, as approved by the Board of Public Utilities and City Council. Beginning in fisal year 2025, the Electric Utility will continue to set aside funds in the designated decommissioing reserve of $1,000 per year, as approved by the Board of Public Utilities and City Council.
Below is a summary o f changes in decommissioning liability d uring the fiscal year:
Business-Type Activities:
Beginning
Balance Additions Reductions
Ending
Balance
Due
Within
One Year
Decommissioning liability $ 46,082 $ 6,938 $ (6,055) $ 46,965 $ 6,887 65 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 13. Commitments and Contingencies
Intermountain Power Agency
The Electric Utility has a power purchase contract with Intermountain Power Agency (IPA) for the delivery of electric power. The Electric Utility’s share of IPA power is equal to 7.6 percent, or approximately 1 37.1 MW, of the net generation output of IPA’s 1,800 MW c entral Utah coal-fueled generating station, known as Intermountain Power Project (IPP). The contract expires in 2027.
The contract constitutes an obligation of the Electric Utility to make payments solely f rom operating revenues. The power purchase contract requires the Electric Utility to pay certain minimum charges that are based on debt service requirements and other fixed costs. Such payments are considered a cost of production.
On September 29, 2006, Senate Bill (SB) 1368 was enacted into law. The bill requires electric service providers to limit financial investments in power plants to those that adhere to greenhouse gas performance standards as determined by t he Public Utilities Commission. Pursuant to this legislation, the Electric Utility i s prohibited from renewing its participation in IPP if it remains a coal fueled generating resource.
In order to facilitate the continued participation in the IPP, the IPA Board issued the Second Amendatory P ower Sales Contract, which amended the IPP Contract allowing the plant to replace the coal units with combined cycle natural gas units by July 1, 2025. On June 16, 2015, the City Council approved the IPP renewal agreements, including the Second Amendatory Power Sales Contract and the Renewal Power Sales Contract, and authorized participation in the IPP Repower Project for up to 5 percent in generation capacity or 60 MW. The Second Amendatory Power Sales Contract became effective March 16, 2016.
On January 5 , 2017, the Electric Utility e xecuted the Renewal Power Sales Contract and the Electric Utility accepted an offer of 4.167 percent entitlement or 50 MW generation capacity in the IPP Repower Project based on the 1,200 MW d esigned capacity, which is within the maximum participation level approved by t he City C ouncil. The Electric Utility’s corresponding Southern Transmission System allocation is 5.278 percent or approximately 1 27 MW.
Further, under the Renewal Power Sales Contract, the Electric Utility had the right to exit from the Repower Project by no later than November 1, 2019, if it is determined that the Repower Project is not cost beneficial to its customers.
On September 11, 2018, the City Council approved “Alternative Repowering” of the IPP Repower Project, which reduced the design capacity of the future plant from 1,200 MW to 840 MW.
On May 7, 2019, the City Council authorized termination of the Renewal Power Sales Contract between the IPA and the Electric Utility effective November 1, 2019, and the Electric Utility’s exit from the IPP Repower Project upon the expiration date of the current Power Sales Contract on June 15, 2027, due to numerous uncertainties surrounding the IPP Repower Project.
The Electric Utility is a member of SCPPA, a joint powers agency (see Note 9). SCPPA provides for the financing and construction of electric generating and transmission projects for participation by some or all of its members. To the extent the Electric Utility participates in take-or-pay projects developed by SCPPA, it has entered into Power Purchase or Transmission Service Agreements, entitling the Electric Utility t o the power output or transmission service, as applicable, and the Electric Utility w ill be obligated for its proportionate share of the project costs whether or not such generation output of transmission service is available.
The projects and the Electric Utility’s proportionate share of SCPPA’s obligations, including final maturities and contract expirations are as follows:
Project
Percent
Share Entitlement
Final
Maturity
Contract
Expiration
Palo Verde Nuclear Generating Station %5.40 12.3 MW 2017 2030 Southern Transmission System %10.20 244.0 MW 2027 2027
Mead-Phoenix Transmission %4.00 18.0 MW 2020 2030
Mead-Adelanto Transmission %13.50 118.0 MW 2020 2030
Terms of Take or Pay Commitments
As part of the take-or-pay commitments with IPA and SCPPA, the Electric Utility has agreed to pay its share of current and long-term obligations. Management intends to pay t hese obligations from operating revenues received during the 66 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
year that payment is due. A long-term obligation has not been recorded on the accompanying financial statements for these commitments. Take-or-pay commitments terminate upon the later of contract expiration or final maturity of outstanding bonds for each project.
The outstanding debts associated with the take-or-pay o bligations have fixed interest rates, which range from 4.00 percent to 5.00 percent. The schedule below details the amount of principal and interest that is due and payable by the Electric Utility as part of the take-or-pay contract for each project in the fiscal year indicated:
IPA1 SCPPA Total
Debt Service
Payment Year
Ending June 30,
Intermountain
Power Project
Southern
Transmission
System
All
Projects
2026 $ 6,897 $ 11,034 $ 17,931
2027 10,975 12,859 23,834
2028 - 8,647 8,647
Total $ 17,872 $ 32,540 $ 50,412
1 The Electric Utility's contract with IPA expires in 2027. The Electric Utility will not be responsible for the proportionate share of the IPA Revenue bonds after the contract expires. 2 During fiscal year 2024-25, STS issued 2 Renewal Project bonds. The Electric Utility's contract with 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.
In addition to debt service, the Electric Utility’s entitlements require the payment of fuel costs, operating and maintenance, administrative and general and other miscellaneous costs associated with the generation and transmission facilities discussed above. These costs do not have a similar structured payment schedule as debt service varies each year. The costs incurred for the years ended June 30, 2025 and 2024, are as follows (in thousands):
Fiscal Year
Intermountain
Power Project*
Palo Verde
Nuclear
Generating
Station*
Southern
Transmission
System
Mead-Phoenix
Transmission
Mead-Adelanto
Transmission All Projects
2025 $ 31,660 $ 3,414 $ 5,124 $ 58 $ 640 $ 40,896
2024 20,106 3,135 3,771 76 640 27,728
* Excludes variable costs
These costs are included in production and purchased power or transmission expense on the Statements of Revenues, Expenses and Changes in Net Position.
The Electric Utility has become a Participating Transmission Owner with the California Independent System Operator (CAISO) and has turned over the operational control of its transmission entitlements including the Southern Transmission System, Mead-Phoenix, and Mead-Adelanto Transmission Projects. In return, users of California’s high voltage transmission grid are charged for, and the Electric Utility receives reimbursement for, transmission revenue requirements, including the costs associated with these three transmission projects.
Hoover Uprating Project
The Electric Utility’s initial entitlement in the Hoover project through SCPPA terminated on September 30, 2017. On August 23, 2016, the City C ouncil approved a 50-year Electric Service Contract (ESC) and an Amended and Restated Implementation Agreement (IA) with the Western Area Power Administration (Western) Bureau of Reclamation for 30 MW o f hydroelectric power. The contract with Western is effective as of October 1, 2017. The ESC extended the Electric Utility’s 30 MW entitlement in the Hoover project through 2067. The IA is a supplemental agreement to the ESC that establishes administrative, budgetary and project oversight by creating project committees and a process for decision making in plant operations.
Nuclear Insurance
The Price-Anderson Act (the Act) requires that all utilities with nuclear generating facilities purchase the maximum private primary n uclear liability insurance available ($500 million) and participate in the industry’s secondary financial protection plan. The secondary f inancial protection program is the industry’s retrospective assessment plan that uses deferred premium charges from every l icensed reactor owner if claims and/or costs resulting from a nuclear incident at any licensed reactor in the United States were to exceed the primary nuclear insurance at that plant’s site. Effective January 1, 2024, the Act limits liability from third-party claims to approximately $16.3 billion per incident.
Under the industry-wide retrospective assessment program provided for under the Act, assessments are limited to $165.9 million per reactor for each nuclear incident occurring at any n uclear reactor in the United States, with payments under the program limited to $24.7 million per reactor, per year, per event to be indexed for inflation every f ive years. Based on the Electric Utility’s interest in 67 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Palo Verde, the Electric Utility would be responsible for a maximum assessment of $1.6 million, limited to payments of $0.2 million per incident, per year. If the public liability limit above is insufficient, federal regulations may impose further revenue-raising measures to pay c laims, including a possible additional assessment on all licensed reactor operators.
Renewable Portfolio Standards (RPS)
On April 12, 2011, the California Renewable Energy Resources Act (SBX1-2) was signed into law by the Governor, which officially created the first set of tiered RPS targets of 20% by 2013, 25% by 2016 and 33% by 2020. SBX1-2 specified that publicly o wned utilities must meet these defined targets via interim Compliance Period (CP) targets to achieve the end goal of 33% RPS by December 31, 2020 as follows: CP1 - an average of 20 percent of retail sales during the 3-year period from 2011-2013; CP2 – no less than 25 percent of retail sales by D ecember 31, 2016; and CP3 – no less than 33 percent of retail sales by December 31, 2020. The Riverside Public Utilities Board and City Council approved the RPS Enforcement Program required by SBX1-2 on November 18, 2011 and December 13, 2011, respectively, and further approved the Electric Utility’s RPS Procurement Plan (a.k.a.
Procurement Policy) implementing the new RPS mandates on May 3, 2013 and May 1 4, 2013, respectively. The Electric Utility m et the procurement requirements of SBX1-2 for CP1 (2011-2013), CP2 (2014-2016), and CP3 (2017-2020). The additional future mandates are expected to be met with resource procurement actions as outlined in the Electric Utility’s RPS Procurement Plan. For calendar year 2024, renewable resources provided 39 percent of retail sales requirements.
On October 7, 2015, the Governor signed into law SB 350 increasing the RPS mandate from 33 percent by 2020 to 50 percent by December 31, 2030.
In addition, SB 350 required that an updated RPS Procurement Policy b e approved and adopted before January 1, 2019 and be incorporated into the Electric Utility’s Integrated Resource Plan. An updated 2018 Renewable Energy Procurement Policy was adopted by the Board and City Council on September 10, 2018 and October 9, 2018, respectively. The Electric Utility expects to be able to substantially m eet the increased RPS mandates imposed by SB 350 with the actions described in the updated procurement policy and the portfolio of renewable resources outlined below.
On September 10, 2018, the 100 Percent Clean Energy Act of 2018 (SB 100) was signed into law by the California Governor. This bill further increases the RPS goals of SBX1-2 and SB 350 while maintaining the 33 percent RPS target by December 31, 2020, but modifying the RPS percentages to be 44 percent by D ecember 31, 2024, 52 percent by D ecember 31, 2027, 60 percent by December 31, 2030, with an end goal of 100 percent of total retail sales of electricity i n California generated from eligible renewable energy resources and zero-carbon resources by December 31, 2045. It is expected that the California Energy C ommission will have further guidance and enforcement procedures for publicly owned utilities to meet these increased mandates. The Electric Utility w ill continue to monitor the outcome and impacts of any u pcoming workshops and regulations in meeting the new requirements.
In an effort to increase the share of renewables in the Electric Utility’s power portfolio, the Electric Utility entered into power purchase agreements (PPA) and power sales agreements (PSA) with various entities described below in general on a “take-and-pay” basis. The contracts in the following tables were executed as part of compliance with RPS mandates.
Long-term renewable PPAs and PSAs in operation (dollars in thousands):
Supplier Type
Maximum
Contract1
Contract
Expiration
Estimated
Annual
Cost for
2025
WKN Wagner Wind 6.0 MW 12/22/2032 $ 1,485
Terraform Power - AP North Lake Photovoltaic 20.0 MW 08/11/2040 5,130 Onward Energy - Columbia II Photovoltaic 11.1 MW 12/22/2034 2,314 Salka Cabazon Wind, LLC Wind 39.0 MW 12/31/2027 4,299
Arevon - Kingbird Solar B, LLC Photovoltaic 14.0 MW 12/31/2036 2,867 AES - Summer Solar Photovoltaic 10.0 MW 12/31/2041 1,748 AES - Antelope Big Sky Ranch Photovoltaic 10.0 MW 12/31/2041 1,748 AES - Antelope DSR 1 Solar Photovoltaic 25.0 MW 12/19/2036 3,826 Arevon - Tequesquite Landfill Solar Photovoltaic 7.3 MW 12/31/2040 1,488 Roseburg Forest Products2 Biomass N/A 02/16/2026 119
CalEnergy - Salton Sea Portfolio Geothermal 86.0 MW 12/31/2039 58,157 Atlantica - Coso Geothermal Geothermal 10.0 MW 12/31/2041 6,050 Total3 238.4 MW $ 89,231
1 All contracts are contingent on energy d elivered from specific related generating facilities. The Electric Utility h as no commitment to pay a ny amounts except for energy delivered on a monthly basis from these facilities except for any economic curtailments directed by the Electric Utility. 2 This supply is only available to satisfy SB 859 requirements.
Long-term renewable PPAs with expected delivery:
68 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Supplier Type
Maximum
Contract1 Expected
Delivery
Energy
Delivery
No Later
Than
Contract
Term
In Years
SunZia Wind Power Co. Wind 125.0 MW 2 03/31/2026 03/31/2027 15 Atlantica - Coso Geothermal Geothermal 20.0- MW 0 01/01/2027 01/01/2027 15 Total
145.0-
MW
1 All contracts are contingent on energy d elivered from specific related generating facilities. The Electric Utility h as no commitment to pay a ny amounts except for energy delivered on a monthly basis from these facilities except for any economic curtailments directed by the Electric Utility.
Cap-and-Trade Program
Assembly B ill (AB) 32, enacted in 2006, mandated that the California Air Resources Board (CARB) develop regulations for the reduction of greenhouse gas (GHG) emissions to the 1990 levels by t he year 2020. Subsequently, Senate Bill (SB 32), enacted in 2016, extended the requirements of AB 32 and codified that it was the State’s goal to reduce GHG emissions to 40% below 1990 levels by the year 2020. AB 398 was then enacted in 2017 clarifying that it was the State legislature’s intent to continue the Cap-and-Trade Program and regulations until 2030. In January 2 013, emission compliance obligations developed by CARB began under the Cap-and-Trade Program (Program). This Program requires electric utilities to have GHG allowances on an annual basis to offset GHG emissions associated with generating electricity. To ease the transition and mitigate the rate impacts to retail customers, CARB will allocate certain amounts of GHG allowances at no cost to electrical distribution utilities.
The Electric Utility’s free allocation of GHG allowances is expected to be sufficient to meet the Electric Utility’s direct GHG compliance obligations.
At times, the Electric Utility m ay h ave allocated allowances in excess of its compliance obligations that can be sold into the CARB quarterly a uctions. In fiscal year ended June 30, 2025, the Electric Utility r eceived $15,624, in proceeds related to the sale of the GHG allowances which are included on the Statements of Revenues, Expenses, and Changes in Net Position as other operating revenue. The Electric Utility h as established a restricted Regulatory Requirement reserve to comply w ith regulatory r estrictions and governing requirements related to the use of the GHG proceeds. The available funds are to be utilized for qualifying projects, consistent with the goals of AB 32 to benefit the retail ratepayers. The balance in the Regulatory Requirement reserve was $35,859 as of June 30, 2025.
The Electric Utility also purchases GHG allowances which can be used in future periods for GHG compliance regulations. The balance of purchased GHG allowances was $1,313 as of June 30, 2025 and is recorded as inventory in the Statement of Net Position.
Low Carbon Fuel Standard Program
Assembly B ill (AB) 32, enacted in 2006, mandated that the California Air Resources Board (CARB) develop regulations for the reduction of greenhouse gas (GHG) emissions to the 1990 levels by t he year 2020. Subsequently, Senate Bill (SB 32), enacted in 2016, extended the requirements of AB 32 and codified that it was the State’s goal to reduce GHG emissions to 40% below 1990 levels by the year 2020. Similar to the Cap-and-Trade Program, the Low Carbon Fuel Standard (LCFS) Program is a key c omponent of the market mechanisms authorized by t hese bills to achieve the State’s GHG emissions reduction goals. The LCFS regulation was initially approved by CARB in 2009.
The program then underwent some litigation in the State of California and the regulation was re-adopted in 2015 with modifications and went into effect in 2016. LCFS seeks to reduce the carbon intensity ( CI) of fuels used for transportation by establishing an annual CI target. Fuels that have a CI greater than the target have a compliance obligation and are required to turn in LCFS credits; fuels with a CI lower than the target may generate credits.
Electricity i s considered a fuel subject to the program when it is used as a transportation fuel in electric vehicles. However, because the CI of electricity is substantially lower than the annual CI targets under the program, electricity is a fuel that generates LCFS credits and participation in the Program is voluntary.
The City o pted into the LCFS program in March 2018 and began generating LCFS credits for the first quarter of 2018. These credits are associated with two sources – unmetered electricity u sed to charge residents’ electric vehicles at their homes (residential base credits) and from electric forklifts charging at private businesses (forklift credits). CARB calculates the credits that the Electric Utility receives, and the Electric Utility submits reports quarterly to receive the credits.
The LCFS regulation was amended in 2018 and required that electric utilities that have opted into the LCFS Program participate in and manage a statewide point-of-sale rebate program for new electric vehicles. This program is called 69 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
the California Clean Fuel Reward Program (CFR) and the City j oined the program in May 2 020. To fund the program, electric utilities are required to contribute proceeds received from the sales of residential base credits beginning with the credits the Electric Utility r eceived in Q4 2019 (generated from electricity used for transportation in Q2 2019). Residential base credits the Electric Utility r eceived prior to that time are not subject to the contribution requirements. Additionally, a “start-up” contribution from proceeds is required to be submitted by January 31, 2021. After the initial deposit of funds in November 2020, deposits to the CFR program are required by March 31 annually.
In November 2024, CARB adopted amendments to the LCFS regulation that went into effect on July 1, 2025. Under the new amendments, the CFR program will provide point-of-purchase rebates for new and/or used commercial medium- or heavy-duty e lectric vehicles rather than new light-duty e lectric vehicles.
Additionally, the Electric Utility has been reclassified as a small publicly-owned utility a nd will no longer have an obligation to contribute funds to the CFR program, although its customers are still eligible to participate in the program.
The approved amendments also included changes to the list of preapproved projects for holdback credits and no longer provides credits for electric forklift charging to electric utilities.
In fiscal year ended June 30, 2025, the Electric Utility’s proceeds from the sale of LCFS credits were $1,514. These proceeds are included on the Statements of Revenues, Expenses and Changes in Net Position as other operating revenue. The Electric Utility h as established a restricted Regulatory Requirement reserve to comply w ith regulatory r estrictions and governing requirements related to the use of the LCFS proceeds. The available funds are to be utilized for qualifying programs that support the Electric Utility's customers who are existing and future electric vehicle owners. Total expenses for qualifying programs as of June 30, 2025 w as $178. The balance in the Regulatory Requirement reserve as of June 30, 2025 was $5,902.
Note 14. Other Post-Employment Benefits (OPEB)
Plan description - The City’s defined benefit OPEB plan, Retiree Health Plan, provides continuation of medical (including prescription drugs) and dental coverage benefits to retirees and surviving spouses in the form of an implied rate subsidy. The Retiree Health Benefits plan is a single employer defined benefit OPEB plan administered by t he City. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
Benefits provided - Eligibility f or continuation of coverage requires retirement from the City and CalPERS with at least 5 years of City service. The retiree is responsible for 100% of the premium cost for coverage, which is based on the blended experience of both the active and retired employees. The City is not required by law or contractual agreement to provide funding other than the pay- as-you-go amount necessary to provide current benefit to eligible retirees and beneficiaries. Retiree and spousal coverage terminate when the retirees become covered under another employer health plan, or when the retiree reaches Medicare eligibility a ge, which is currently a ge 65. However, retiree benefit continues to the surviving spouse if the retiree elects the CalPERS survivor annuity.
Employees covered by benefit terms – At the June 30, 2024 measurement date, the following employees were covered by the benefit terms:
Inactive plan members entitled to but not yet receiving benefits $ 182 Active plan members 2,113
Total 2,295
Significant Actuarial Assumptions Used in Calculating the Total OPEB Liability The total OPEB liability w as determined by a n actuarial valuation using the following actuarial assumptions:
Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Funding Policy: Pay-as-you-go for implicit rate subsidy Discount Rate:
3.93% per year net of expenses. This is based on the Bond Buyer 20 Bond Index
Inflation Rate: 2.5% per annum
Salary Inflation: 2.75% per annum
Salary Increases:
Since benefits do not depend on salary (as they do for
pensions), this assumption is only used to determine the accrual pattern of the Actuarial Present Value of Projected Benefit Payments
Mortality: Based on the CalPERS 2021 Experience Study
70 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Changes in Assumption
From measurement periods ended June 30, 2023 to 2024, the discount rate changed from 3.65% to 3.93%; respectively.
Sensitivity analysis of total OPEB liability for healthcare cost trend rates.
The following presents the total net OPEB liability, calculating using the healthcare cost trend rate of 4.0%, as well as what the total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage- point lower (3.0%) or 1-percentage-point higher (5.0%) than the current rate:
Current Healthcare
1% Decrease Cost Trend Rate 1% Increase
3% 4% 5%
Total OPEB liability $ 44,360 $ 50,729 $ 58,208
Sensitivity analysis of total OPEB liability for discount rates The following presents the total OPEB liability, calculating using the discount rate of 3.93%, as well as what the total OPEB liability w ould be if it were calculated using a discount rate that is 1-percentage-point lower (2.93%) or 1- percentage-point higher (4.93%) than the current rate:
1% Decrease
(2.93%)
Current
Discount Rate
(3.93%)
1% Increase
(4.93%)
Total OPEB liability $ 55,436 $ 50,729 $ 46,601
Change in total OPEB liability
For fiscal year 2025, the City recognized total OPEB expense of $4,767. The liability f or the governmental activities is primarily l iquidated from the General Fund. The following table shows the change in the total OPEB liability for the year ended June 30, 2025:
2025
Beginning total OPEB liability $ 48,730
Service cost 3,131
Interest 1,808
Changes of assumptions (1,340)
Benefit of implied subsidy payments (1,600)
Net changes 1,999
Ending total OPEB liability $ 50,729
Deferred outflows/inflows of resources
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Contributions subsequent to the
measurement date $ 1,853 $ -
Differences between expected
and actual experience 1,076 (2,508)
Changes of assumptions 4,172 (7,913)
Total $ 7,101 $ (10,421)
An amount of $1,853 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2026. Amounts reported as deferred outflows/(inflows) of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ending June 30,
Deferred
Outflows/(Inflows)
of Resources
2026 $ 38
2027 77
2028 77
2029 (1,018)
2030 (1,009)
Thereafter (3,338)
Total $ (5,173)
71 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 15. City Employees Retirement Plan
(A) Plan Description - The City of Riverside contributes to the California Public Employees Retirement System (CalPERS), an agent multiple employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California.
Benefit provisions and all other requirements are established by s tate statute and City ordinance. A copy of CalPERS’ annual financial report may be obtained online at www.calpers.ca.gov.
(B) Funding Policy - The City has contributed at the actuarially determined rate provided by CalPERS’ actuaries. Participants are required to contribute various percentages for miscellaneous employees and for safety e mployees of their annual covered salary b ased on their Tier. The City h as a multiple tier retirement plan with benefits varying by p lan. The City p ays the employees’ contributions to CalPERS for both miscellaneous and safety employees hired on or before specific dates as follows:
Safety (Police):
1st T ier (RPOA, RPOA Supervisory & R PAA Management) - The retirement formula is 3% at age 50 for employees hired on or before February 1 6, 2012 (RPOA, RPAA Management) or June 8, 2012 (RPOA Supervisory). The City pays employee standard contributions to the Public Employees' Retirement System (PERS). As of June 30, 2025, employees are required to pay a p ortion of the employer contribution equal to 5% for RPOA, 6% for RPOA Supervisory, and
7.5% percent for RPAA; of pensionable income pursuant to the cost sharing provisions set forth in California Government Code Section 20516.
2nd T ier (RPOA, RPOA Supervisory & R PAA Management) - The retirement formula is 3% at age 50 for RPOA and RPAA Management employees hired on or after February 17, 2012, and RPOA Supervisory employees hired on or after June 8, 2012. Employees pay their share of contributions, which is currently 9%.
3rd Tier (RPOA, RPOA Supervisory & RPAA) – The retirement formula is 2.7% at age 57 for new members hired on or after January 1, 2013, and who are defined by PEPRA as new PERS members. Employees pay t heir share of contributions, which is currently 1 3.50%. Classic members (CalPERS members prior to 12/31/12) who are hired on or after January 1, 2013, may be placed in a different tier.
Safety (Fire):
1st Tier - The retirement formula is 3% at age 50 for employees hired on or before June 10, 2011. The City p ays employee standard contributions to the Public Employees' Retirement System (PERS). As of June 30, 2025, employees are required to pay a p ortion of the employer contribution equal to 11% of pensionable income pursuant to the cost sharing provisions set forth in California Government Code Section 20516.
2nd Tier - The retirement formula is 3% at age 55 for employees hired on or after June 11, 2011. Employees pay their share of contributions, which is currently 11%.
3rd Tier – The retirement formula is 2.7% at age 57 for new members hired on or after January 1, 2013, and who are defined by PEPRA as new PERS members. Employees pay 5 0% of the normal cost to CalPERS, which is currently 1 3.50% of compensation. Classic members (CalPERS members prior to 12/31/12) who are hired on or after January 1, 2013, may be placed in a different tier.
Miscellaneous:
1st Tier –
Unrepresented - The retirement formula is 2.7% at age 55 for employees hired on or before October 18, 2011. Unrepresented employees (Sr. Management, Management, Professional, Para- professional, Supervisory, Confidential, and Executive units, excluding the Chief of Police and the Fire Chief) are required to contribute 8% of their pensionable income.
SEIU - The retirement formula is 2.7% at age 55 for SEIU and SEIU Refuse employees hired before June 7, 2011. Employees are 72 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
required to contribute 8% of their pensionable income.
IBEW - T he retirement formula is 2.7% at age 55 for IBEW a nd IBEW Supervisory employees hired on or before October 18, 2011.
Employees are required to contribute 8% of their pensionable income.
2nd Tier - The retirement formula is 2.7% at age 55, and:
Miscellaneous employees, IBEW, and IBEW Supervisory h ired on or after October 19, 2011, pay their share (8%) of contributions. SEIU and SEIU Refuse employees hired on or after June 7, 2011, pay their share (8%) of contributions.
3rd T ier – The retirement formula is 2% at age 62 for new members hired on or after January 1 , 2013, and the employee must pay t he normal cost to CalPERS which is currently at 8.25%. Classic members (CalPERS members prior to 12/31/12) who are hired on or after January 1, 2013, may be placed in a different tier.
The contribution requirements of plan members and the City a re established and may be amended by CalPERS.
(C) Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after five years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, the 1959 Survivor Benefit Level III, or the Optional Settlement 2 Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. (D) Employees Covered - At the June 30, 2024, measurement date, the following employees were covered by the benefit terms of each Plan: Inactive employees or beneficiaries currently r eceiving benefits are 2,420 a nd 885 f or the Miscellaneous and Safety Plans, respectively. Inactive employees entitled to but not yet receiving benefits are 1,536 and 197 for Miscellaneous and Safety Plans, respectively. Active employees were 1,652 a nd 562 f or Miscellaneous and Safety Plans, respectively.
(E) Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by t he actuary a nd shall be effective on the July 1 f ollowing notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially d etermined rate and the contribution rate of employees.
(F) Net Pension Liability - The City’s net pension liability f or each Plan is measured as the total pension liability, less the pension plan’s fiduciary n et position. The net pension liability of each of the Plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 u sing standard update procedures. The liability f or the governmental activities is primarily liquidated from the General Fund.
Actuarial Assumptions – The June 30, 2023 v aluation was rolled forward to determine the June 30, 2024 t otal pension liability, based on the following actuarial methods and assumptions:
Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table1 Derived using CALPERS' membership data for all funds
Post Retirement Benefit
Increase
The lesser of contract COLA or 2.30% until
Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30% thereafter
73 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
1 T he mortality t able used was developed based on CalPERS-specific data.
The probabilities of mortality a re based on the 2021 CalPERS Experience Study a nd Review of Actuarial Assumptions. Mortality r ates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study r eport from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building- block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:
Asset Class1
Assumed
Asset
Allocation Real Return1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00)% (0.59)%
1 An expected inflation of 2.30% used for this period
2 Figures are based on the 2021 Asset Liability Management Study Discount Rate - The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily r equired rates, actuarially d etermined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Changes of Benefit Terms – There were no changes in benefit terms in 2024.
Changes in Assumptions – There were no changes in assumptions in 2024. (G) Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:
Miscellaneous Increase (Decrease)
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 $ 1,672,933 $ 1,517,932 $ 155,001 Changes recognized for the
measurement period:
Service cost 30,810 - 30,810
Interest on total pension liability 117,365 - 117,365
Differences between expected and actual
experience 58,854 - 58,854
Contributions - employer - 21,228 (21,228)
Contributions - employees - 12,738 (12,738)
Net investment income - 142,128 (142,128)
Benefit payments, including
refunds of employee
contributions (92,502) (92,502) -
Administrative expenses - (1,235) 1,235
Net changes 114,527 82,357 32,170
Balance at June 30, 2024 $ 1,787,460 $ 1,600,289 $ 187,171 74 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Safety Increase (Decrease)
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2023 $ 1,390,943 $ 1,214,682 $ 176,261 Changes recognized for the
measurement period:
Service cost 25,288 - 25,288
Interest on total pension liability 94,848 - 94,848
Differences between expected and actual
experience 7,396 - 7,396
Contributions - employer - 26,565 (26,565)
Contributions - employees - 12,619 (12,619)
Net investment income - 114,722 (114,722)
Benefit payments, including
refunds of employee
contributions (72,754) (72,754) -
Administrative expenses - (988) 988
Net changes 54,778 80,164 (25,386)
Balance at June 30, 2024 $ 1,445,721 $ 1,294,846 $ 150,875 Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability w ould be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Miscellaneous
Discount Rate
-1% (5.90%)
Current
Discount Rate
(6.90%)
Discount Rate
+1% (7.90%)
Plan's net pension liability/(asset) $ 426,474 $ 187,171 $ (9,730) Safety
Discount Rate
-1% (5.90%)
Current
Discount Rate
(6.90%)
Discount Rate
+1% (7.90%)
Plan's net pension liability/(asset) $ 345,824 $ 150,875 $ (8,914) Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary n et position is available in the separately i ssued CalPERS financial reports.
As of June 30, 2025, the City reported net pension liability, deferred outflows of resources, and deferred inflows of resources for both Miscellaneous and Safety Plans as follows:
Net Pension
Liability
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension
Expense
Governmental
activities:
Miscellaneous Plan $ 96,723 $ 52,165 $ (572) $ 30,531
Safety Plan 150,875 69,426 (1,060) 43,915
Total Governmental
activities 247,598 121,591 (1,632) 74,446
Business-type
activities:
Miscellaneous Plan 90,448 48,782 (535) 31,347
Total $ 338,046 $ 170,373 $ (2,167) $ 105,793
(H) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions.
For the year ended June 30, 2025, the City recognized pension expense/(credit) of $61,878 to Miscellaneous and $43,915 to Safety for a total of $105,793. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
75 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Miscellaneous
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Pension contributions subsequent to measurement
date, net $ 27,482 $ -
Changes of assumptions 1,230 -
Differences between expected and actual
experience 45,779 (1,107)
Net differences between projected and actual
earnings on plan investments 26,456 -
Total $ 100,947 $ (1,107)
Safety
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Pension contributions subsequent to measurement
date, net $ 28,375 $ -
Changes of assumptions 13,300 -
Differences between expected and actual
experience 7,181 (1,060)
Net differences between projected and actual
earnings on plan investments 20,570 -
Total $ 69,426 $ (1,060)
The $55,857 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability i n the subsequent fiscal period rather than in the current fiscal period.
Amortization of Deferred Outflows and Deferred Inflows of Resources - Under GASB 68, gains and losses related to changes in total pension liability a nd fiduciary n et position are recognized in pension expense systematically o ver time.
The first amortized amounts are recognized in pension expense for the y ear the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net difference between
projected and actual earnings
on pension plan investments 5 year straight-line amortization All other amounts
Straight-line amortization over the expected average
remainingservice lifetime (EARSL) of all members that are provided withbenefits (active, inactive, and retired) as of the beginning of themeasurement period
The remaining amounts reported as deferred outflows of resources and deferred (inflows) of resources related to pensions will be recognized as pension expense as follows:
Fiscal Year Miscellaneous Safety
2026 $ 21,105 $ 11,376
2027 59,603 37,595
2028 (444) (2,909)
2029 (7,906) (6,071)
Total 72,358 39,991
Events Subsequent to Actuarial Valuation Date - There were no subsequent events that would materially affect the results presented in this disclosure.
Note 16. Other Long-Term Obligations
Changes in Long-Term Obligations
Below is a summary of changes in long-term obligations during the fiscal year for the former Redevelopment Agency, which is accounted for in the Successor Agency Trust Fund (a fiduciary fund):
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Lease revenue bonds $ 4,296 $ 1,544 $ (4,296) $ 1,544 $ 121 Tax allocation bonds 147,714 - (12,208) 135,506 10,795
Direct borrowings:
Notes payable 3,918 - - 3,918 28
$ 155,928 $ 1,544 $ (16,504) $ 140,968 $ 10,944
76 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Lease Revenue Bonds - Successor Agency:
Principal
Outstanding
$19,500 2024A Lease Revenue Bonds ( ); 5.0%, due in annual installments from $1,725 to $2,610 through November 1, 2033.
The net proceeds of the sale of the Series 2024A Bonds were used to refund the 2012A Lease Revenue Refunding Bonds.
The bonds are secured by lease payments on a portion of the City Hall Complex and the Lincoln Police Patrol Center. In the event of default, the Trustee may retain the Lease Agreement and hold the City l iable for all Base Rental Payments on an annual basis. The rental payments may not be accelerated.
Similar to the 2012A Bonds, the 2024A Bonds were distributed between Governmental Activities, Business-Type Activities, and Successor Agency t o properly r eflect their proportional share.
The Successor Agency portion is $1,371. $ 1,371
Add: Unamortized bond premium 173
Total lease revenue bonds $ 1,544
Remaining debt service will be paid by the Successor Agency Trust from future property t ax revenues. Annual debt service requirements to maturity a re as follows:
Fiscal Year Principal Interest Total
2026 $ 121 $ 66 $ 187
2027 131 59 190
2028 138 52 190
2029 145 45 190
2030 152 38 190
2031-2035 684 70 754
Premium 173 - 173
Total $ 1,544 $ 330 $ 1,874
Tax Allocation Bonds - Successor Agency:
Principal
Outstanding
$62,980 Subordinate Tax Allocation Refunding Bonds (2014 Series A and B). The bonds were issued to refund certain obligations of the former Redevelopment Agency of the City of Riverside. Interest is due semi-annually o n March 1 and September 1, commencing March 1, 2015. Principal is due in annual installments from $160 to $4,745 through September 1, 2034. The rate of interest varies from 0.6% to 5% per annum. $ 18,890 $114,815 2018 Tax Allocation Refunding Bonds (Series A and B). The bonds were issued to refund the 2007 Riverside Public Financing Authority R edevelopment Agency T ax Allocation Bonds (Series A, B, C and D). Principal is payable in annual installments from $140 to $9,180 through September 1, 2037.
The rate of interest varies from 3.125% to 5% per annum. The refunding transaction resulted in a total net present value savings of $20,000. 103,225
Subtotal 122,115
Add: Unamortized bond premium 13,391
Total tax allocation bonds $ 135,506
The Successor Agency T ax Allocation Bonds are secured by t ax revenues deposited in the Redevelopment Property T ax Trust Fund for the Agency established and held by the County of Riverside Auditor-Controller pursuant to Section 34813(a)(2) of the Dissolution Act. Upon event of default, the principal due on the Bonds is subject to acceleration.
77 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Remaining debt service will be paid by the Successor Agency Trust Fund from future property tax revenues. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 10,795 $ 5,392 $ 16,187
2027 11,135 4,844 15,979
2028 10,230 4,317 14,547
2029 10,785 3,799 14,584
2030 10,430 3,269 13,699
2031-2035 44,385 9,725 54,110
2036-2040 24,355 1,372 25,727
Premium 13,391 - 13,391
Total $ 135,506 $ 32,718 $ 168,224
Notes Payable – Successor Agency:
Principal
Outstanding
These notes payable have been issued to promote development and expansion within the City’s redevelopment areas.
Pepsi Cola Bottling Company of Los Angeles, 10.5%, payable in net annual installments of $341, subject to recording of completion. Interest accrues on the outstanding note balance upon issuance of the Certificate of Completion. Principal and interest on the note are payable solely from Project Property Tax Increment. Payments start upon the time sufficient increment is generated in one year to pay the annual principal and interest on the note. Upon 25 years from the first anniversary d ate of the certificate of completion, all unpaid principal together with any accrued interest will be forgiven. $ 2,987
Smith’s Food & Drug Centers Inc., 6% payable in variable installments, subject to payment of annual Community Facilities District assessment. The note is secured under a developer agreement. 931
Total notes payable $ 3,918
Remaining debt service will be paid by the Successor Agency Trust Fund from future property tax revenues. Annual debt service requirements to maturity are as follows:
Fiscal Year Principal Interest Total
2026 $ 28 $ 314 $ 342
2027 31 311 342
2028 34 307 341
2029 38 304 342
2030 42 300 342
2031-2035 286 1,423 1,709
2036-2040 471 1,238 1,709
2041-2045 777 933 1,710
2046-2050 2,211 430 2,641
Total $ 3,918 $ 5,560 $ 9,478
Assessment Districts and Community Facilities Districts Bonds (Not obligations of the City):
As of June 30, 2025, the City h as several series of Assessment District and Community Facility District Bonds outstanding in the amount of $41,915. Bonds were issued for improvements in certain districts and are long-term obligations of the property owners. The City's only limited commitment on these obligations is that the City Treasurer act as an agent for the property owners in collecting the assessments, forwarding the collections to bondholders and initiating foreclosure proceedings, if applicable. Since the debt does not constitute an obligation of the City, it is not reflected as a long-term obligation of the City and is not reflected in the government-wide financial statements.
Note 17. Interfund Assets, Liabilities and Transfers
Due From/To Other Funds: These balances resulted from expenditures being incurred prior to receipt of the related revenue source. 78 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
The following table shows amounts receivable/payable between funds within the City at June 30, 2025:
Receivable Funds Payable Funds Amount
General Fund Non-Major Governmental Funds $ 2,453
Internal Service Funds 355
2,808
Non-Major Governmental
Funds General Fund 2,415
Non-Major Governmental Funds 232
2,647
Capital Outlay General Fund 2,407
Total $ 7,862
Advances To/From Other Funds: These balances consist of advances used to fund capital projects in advance of related financing/assessments and for other long-term borrowing purposes.
The following table shows amounts advanced from funds within the City to other funds within the City at June 30, 2025:
Receivable Funds Payable Funds Amount
Sewer General Debt Service Fund $ 503
General Fund Non-Major Enterprise Funds 6,703
Total $ 7,206
In addition, the following advances to the former Redevelopment Agency a re accounted for in the Private-Purpose Trust Fund of the Successor Agency:
Receivable Funds Amount
Electric $ 1,098
Transfers In/Out: T ransfers are primarily u sed to (1) move revenues to the fund that statute or budget requires to expend them, and (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.
The following table shows amounts transferred to/from funds within the City for the year ended June 30, 2025:
Transfers in Funds Transfers Out Funds Amount
General Fund Capital Outlay Fund $ 11,074
Non-Major Governmental Funds 32,007
Electric Fund 45,215
Water Fund 8,230
96,526
Capital Outlay Fund General Fund 43,066
Non-Major Governmental Funds 40
43,106
General Debt Service
Fund General Fund 31,473
Capital Outlay Fund 2,723
Non-Major Governmental Funds 3,250
37,446
Non-Major Governmental
Funds General Fund 3,078
Capital Outlay Fund 325
Non-Major Governmental Funds 232
3,635
Non-Major Enterprise
Funds General Fund 11,009
Non-Major Governmental Funds 1,104
12,113
Total $ 192,826
Note 18. Deficit Net Position
Deficit net position exists in the non-major enterprise fund, Transportation $(1,134). The deficit is primarily due to the net pension and OPEB liabilities.
Deficit net position exists in the Self-Insurance Internal Service Fund $(83,297).
This City adopted a Self-Insurance Reserve Policy that addresses the on-going 79 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
deficit in fund balance. In the past, the City began funding a portion of the deficit in the internal service fund via self-insurance rate increases phased in over several years. However, the increases continue to be offset by unusually large losses incurred during the year combined with an adjustment for the increase in the amount estimated for claims and judgments. Management believes that there are sufficient funds on hand to cover current payment obligations and plans to continue to control costs and increase rates, as needed. An increase to the claims and judgments liability r elated to the Simpson v. City o f Riverside class action lawsuit also contributed to the deficit.
Deficit net position exists in the Successor Agency Private-Purpose Trust Fund $(101,237). The deficit in the Successor Agency T rust Fund will be reduced over the years as the related debt is paid-off with funds received from the Redevelopment Property Tax Trust Fund (RPTTF), which is administered by the County Auditor-Controller.
Deficit net position exists in the Urban Areas Security Initiative (UASI) Special Revenue Fund $(1,602). The deficit is primarily d ue to the timing of grant expenditures and when the grant revenue becomes available.
Deficit net position exists in the Housing and Community Development Special Revenue Fund $(963). The deficit is primarily d ue to the timing of grant expenditures and when the grant revenue becomes available.
Note 19. Contruction Commitments
As of June 30, 2025, the Electric Utility had commitments (encumbrances) of approximately $90,662 w ith respect to ongoing capital projects, of which $66,345 i s expected to be funded by b onds, $0 t o be funded by u nrestricted cash reserves, and $0 to be funded by restricted cash reserves.
Note 20. Forward Purchase/Sale Agreements
In order to meet seasonal energy needs and summer peaking requirements, the Electric Utility contracts on a monthly and/or quarterly basis for the purchase or sale of natural gas, electricity a nd/or capacity p roducts on a one to four year forward horizon. As of June 30, 2025, the Electric Utility has net natural gas and electricity c ommitments for fiscal year 2026 a nd thereafter, of approximately $82,091, with a market value of $70,486. It should be noted that the market value can and typically does change on a daily basis.
Note 21. Economic Contingency
A portion of fund balance has been committed within the General Fund and Measure Z fund for future economic contingencies. The amount that has been set aside for the General Fund is $76,431 which equals to approximately 20% of the 2025-2026 G eneral Fund adopted expenditure budget. For the General Fund Measure Z Fund, $5,000 has been set aside.
Note 22. Litigation
The City i s a defendant in various lawsuits arising in the normal course of business. Present lawsuits and other claims against the City a re incidental to the ordinary c ourse of operations and are largely c overed by t he City’s self- insurance program. In the opinion of management and the City Attorney, such claims and litigation will not have a materially adverse effect upon the financial position or results of operation of the City, unless disclosed in the Subsequent Events note disclosure (Note 24).
Note 23. Tax Abatements
In November 2012, the City entered into a tax sharing agreement with a local business to incentivize an expansion of their facility. Assistance is provided in the form of a rebate of sales and property taxes over fifteen years in an amount not to exceed $4,500. The agreement expires on the earlier of: 1) total cumulative tax rebate of $4,500; or 2) fifteen years in fiscal 2027-28.
Incremental Sales Tax Revenue can be generated from sales, over the fiscal 2011-12 base period, reported to the State Board of Equalization at the business site and from third party v endor transactions occurring using the business site as the point of sale. Incremental Property T ax Revenue is generated from the increase in County a ssessed valuation over the 2012-13 base period values, for the parcels designated in the agreement. For parcels acquired after 2012-13 in the project area, the acquisition price will become its base year valuation. The initial 2012-13 base year assessed valuation is $114,293 and has been adjusted to $125,043 for the parcels acquired in 2014-
15. The base year assessed valuation was adjusted to $130,349 for parcels acquired in 2023-24. The business is due 100% of the incremental Property tax revenue due to the City from the project area tax rate. It is calculated as 11% of the value determined from taking 1% of the difference of current net assessed valuation over the adjusted base valuation. The cumulative rebate payment as of June 30, 2025 is $2,359.
80 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Note 24. Subsequent Events
Parada II Litigation
On September 12, 2018, a petition for writ of mandate entitled Parada v. City of Riverside (“Parada II”) was filed against the City seeking to invalidate, rescind and void, under Proposition 26, the Electric System’s rates approved by C ity Council on May 22, 2018, which took effect on January 1, 2019, by challenging the portion of the electric rates that are attributable to the General Fund. The petition did not seek any monetary relief from the General Fund. The trial court divided the case into two stages for hearings: a liability phase and a damages phase. On April 17, 2020, the Court in the liability phase of Parada II litigation entered a tentative ruling finding the City’s electric rates attributable to the General Fund transfer violate Article XIII C of the California Constitution. The formal hearing on the matter took place on June 5, 2020, but the Court asked for further briefing on the issue of whether or not the plaintiffs failed to exhaust their administrative remedies. On October 9, 2020, the Court confirmed its tentative ruling and entered an order denying the City’s request for interlocutory remand. The court had set a hearing for February 2 4, 2021, to set a briefing schedule for determining appropriate remedies /damages in the case. The City expected the second phase of the trial relating to plaintiffs’ available remedies to occur in the second quarter of 2021.
The ruling by t he Court in Parada II was anticipated to likely h ave a material adverse impact on the City’s General Fund. The General Fund receives approximately $ 40 million annually ( up to the maximum amount of 11.5% of Electric Fund revenues) from the Electric Fund. Based on the Court’s order in the liability phase of the trial, approximately $19-32 million of the General Fund transfer is potentially attributable to rate payer revenue that was not approved by t he voters. However, that amount will be determined during the damages phase of the trial. Additionally, the City might have been required to refund rate payers for the portions of the rates that were determined to violate Article XIII C of the California Constitution from the date the writ of mandate was filed.
However, the trial court did not issue any ruling as to what the amount of any damages would be.
Based on the Court’s order in the liability phase of the trial, the City estimated that the amount of a refund would be $19 to $32 million per year, beginning January 1, 2019, until date of settlement or issuance of a final, non-appealable judgment by the trial court after anticipated appeals are resolved. This amount could vary d epending upon whether or not the City d ecides to repeal and replace the challenged rates pending appeal.
On May 1 7, 2021, the City a nd the Paradas entered into a conditional settlement agreement. This settlement was conditioned on: (1) the Riverside City Council’s placement of a ballot measure on City ballots in November 2021 to approve the City’s General Fund Transfer practices as a general tax (“Ballot Measure”); and (2) voter approval of the Ballot Measure. The Riverside City Council placed the Ballot Measure on the ballot for the November 2, 2021 election. The Parties stayed the Parada lawsuit until certification of the results of the Ballot Measure. If voters approved the Ballot Measure, the City would refund to customers of its electric utility an amount equal to $24 million less the amount awarded to Plaintiffs’ counsel in fees, paid over a five year period beginning no later than February 1, 2022. If voters did not approve the Ballot Measure, this litigation would then resume.
On or about September 16, 2021, a petition for writ of mandate entitled Riversiders Against Increased Taxes v. City of Riverside, et al. (“RAIT lawsuit”) was filed against the City challenging the Ballot Measure on the grounds that the Ballot Measure cannot be adopted at the November 2021 election because that election is a “special” election and under Proposition 218, a ballot measure to impose a general tax can only be submitted to voters at a general election.
On November 9, 2021, the court set a trial date for the RAIT lawsuit for January 7, 2022 and ordered a stay o f the certification of the Ballot Measure Election results pending the January 7th hearing but did not otherwise delay or cancel the election for the Ballot Measure.
The election was held on November 2, 2021, and the Measure C was approved by voters, with 54.52% voting in favor.
On April 26, 2022 the RAIT lawsuit trial court determined that the November 2021 election was a “special election” rather than a “general election” and therefore did not comply w ith Proposition 218. The RAIT lawsuit trial court further ruled that it lacked power to enjoin the certification of election results or to otherwise invalidate the election. Both sides appealed that ruling.
On May 1 2, 2022, the City a nd the Paradas amended the May 1 7, 2021 Settlement Agreement, with the following additional terms: (a) City a greed to start making refunds to ratepayers by October 1, 2022; (b) if the City prevailed in the appeal of the trial court’s decision in the RAIT lawsuit, no additional refund would be due to the ratepayers; (c) if the City did not prevail in the appeal of the trial court’s decision in the RAIT lawsuit, an additional refund would be implemented in the amount of $705,882 per month, from November, 2021 up to 81 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
when the City either (i) sets new electric rates; (ii) voters approve a valid ballot measure for the GFT or (iii) the City otherwise stops collecting the electric GFT.
The Parada lawsuit was dismissed on May 13, 2022.
The City C ouncil adopted a resolution certifying the results of the Measure C election on July 1 9, 2022. The plaintiffs from the RAIT lawsuit sought to intervene in the Parada lawsuit and set aside this dismissal. On August 3, 2022, the Parada trial court refused to set aside the dismissal. The City h as now begun to implement the settlement agreement.
On July 25, 2024, the appellate court ruled in favor of the City and against RAIT, holding that the City conducted a proper election in compliance with Proposition 218 and 26. Because the appellate court ruled in favor of the City, no additional refunds are owed to ratepayers by t he City u nder the Parada settlement agreement. On September 4, 2024, RAIT sought California Supreme Court review of the appellate decision and on October 30, 2024, the California Supreme Court declined review of the appellate court’s ruling in favor of the City.
Simpson v. City of Riverside
On December 19, 2019, a class action lawsuit entitled Simpson v. City o f Riverside was filed against the City a lleging that the City i s overcharging customers for water utility service in violation of Article XIIID, Section 6 of the California Constitution, on the grounds that the City i s transferring 11.5% of water utility revenues to the City’s general fund. The transfer, also known as the “General Fund Transfer”, was approved by voters on June 4, 2013, as a general tax. The plaintiff is seeking refunds for all customers for monies collected in violation in the three years prior to the filing of the lawsuit and an order that the court set aside the Revenue Transfer Re-Approval. The trial was bifurcated into two phases, liability and damages.
The Court issued its ruling on the liability phase on August 17, 2023, finding that the City’s water rates violated Article XIID, Section 6 of the California Constitution because they w ere set in an amount sufficient to recover the General Fund Transfer. A trial hearing related to the second phase of the trial, damages, was held on September 6, 2024. O n December 5, 2024, the trial court issued its ruling on damages. T he court calculated damages in the amount of $37,934,100 from FY 2018/2019 through FY2022/2023. The Court made no determination as to the amount of damages for Fiscal Year End 2024, as that information was not yet available. Subsequently the parties submitted a stipulation as to the amount of the General Fund Transfer for Fiscal Year End 2024 in the amount of $2,920,200, for total damages in the amount of $40,854,300.00. T he parties then submitted a Proposed Judgment, with the City f iling objections. The Court has scheduled a hearing related to the judgment, including the form of the remedy and attorneys’ fees, for December 4, 2025.
Pre-Judgment interest has accrued through June 30, 2025, in the amount of $5,390,117.89. For each day after June 30, 2025, that judgment is not entered, the daily interest rate will be $4,798.49 per day.
Damages related to Simpson I ceased to accrue as of the City’s adoption of Resolution No. 24042 setting new water rates for fiscal years 2023-24 to 2027- 28 on September 30, 2023. H owever, on January 2 6, 2024, a class action lawsuit entitled Simpson v. City of Riverside (“Simpson II”) was filed against the City, challenging the City’s newly a dopted water rates, again alleging that the Water Revenue Transfer results in the City overcharging for water utility service in violation of Article XIIID, Section 6 of the State Constitution and asking for the same relief as Simpson I. This lawsuit has been stayed pending the resolution of Simpson I.
On January 2 6, 2024, a case entitled Pongs v. City o f Riverside, was filed against the City. Pongs is a reverse validation action challenging the validity of the new rates adopted by R esolution No. 24042 for fiscal years 2023-24 to 2027-28. Pongs alleges multiple violations of Article XIII D (also referred herein as Proposition 218) including, inter alia, illegal transfers of water rate revenue from the City’s water utility into the General Fund, invalid tiered rate structures, and improper spending of water rate revenue on categories unrelated to the provision of water service. The trial court ruled in favor of the City a nd on February 24, 2025, the appellate court also ruled in favor of the City. On May 28, 2025, the California Supreme Court denied review.
Note 25. Restatement
Restatements were recorded to Governmental and Business-Type Activities for various operational and maintenance costs that were included in infrastructure and CIP. Additionally, restatements were made to Governmental and Business- Type Activities for various prepaid expenses and deposits that should have been recognized as expenses and revenues in previous years. On the government-wide statements, this resulted in a decrease of $(43,001) in governmental net position and a decrease of $(22,119) in business-type net 82 CITY OF RIVERSIDE
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
position.
June 30, 2024
as Previously
Reported
Error
Correction
June 30, 2024
as Restated
Government-wide
Governmental activities $ 1,196,732 $ (43,001) $ 1,153,731 Business-type activities 1,205,225 (22,119) 1,183,106
Total government-wide $ 2,401,957 $ (65,120) $ 2,336,837 Restatements were recorded to Governmental and Proprietary funds as follows:
Governmental funds:
A restatement was recorded to increase the General funds net position by $1,735. The restatement reflects corrections for various prepaid expenses and deposits that should have been recognized as expenditures and revenues in previous years. Additionally, restatements were recorded to decrease the Capital Outlay, Storm Drain, and Special Capital Improvement funds net position's by $ (625), $(172), and $(1,228); respectively. The restatements reflect corrections for various prepaid expenses that should have been recognized as expenditures in previous years. As a result, total Governmental funds have been restated to reflect a net decrease of $(290).
Proprietary funds:
Restatements were recorded to decrease the Electric and Water Utility’s net position, including the Public Benefit and Water Conservation Programs. The restatements reflect corrections to Electric and Water construction in progress of $(690) and $(10,781), deposits of $(405) and $(813), and accumulated depreciation related to utility p lant of $(592) and $(1,058); respectively.
Restatements were recorded to increase the Electric and Sewer funds net positions by $1,314 and $209; respectively. The restatements reflect corrections for various deposits that should have been recognized as revenue in previous years. Additionally, restatements were made to the Sewer funds net position for various operational and maintenance costs that were included in infrastructure and CIP $(3,963), as well as, for various revenues that should have been recognized as deposits in previous years $(5,340). As a result, the Electric, Water, and Sewer funds net positions have been restated to reflect a net decrease of $(373), $(12,652), and $(9,094); respectively.
June 30, 2024
as Previously
Reported
Error
Correction
June 30, 2024
as Restated
Governmental funds
Major funds:
General fund $ 287,858 $ 1,735 $ 289,593
Capital Outlay fund 98,315 (625) 97,690
Non-Major funds:
Storm Drain fund: 995 (172) 823
Special Capital Improvement
fund 9,911 (1,228) 8,683
Total governmental funds $ 397,079 $ (290) $ 396,789
Proprietary funds
Major funds:
Electric fund $ 508,534 $ (373) $ 508,161
Water fund 339,672 (12,652) 327,020
Sewer fund 268,133 (9,094) 259,039
Total proprietary funds $ 1,116,339 $ (22,119) $ 1,094,220 83 Required Supplementary Information
Consists of the following:
Schedule of Changes in Net Pension Liability and Related Ratios Schedule of Pension Plan Contributions
Schedule of Changes in Total OPEB Liability and Related Ratios 84 CITY OF RIVERSIDE
MISCELLANEOUS PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(amounts expressed in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Pension Liability
Service cost $ 22,228 $ 22,189 $ 24,766 $ 25,117 $ 25,017 $ 25,919 $ 26,168 $ 27,830 $ 27,778 $ 30,810 Interest on total pension liability 87,436 90,913 92,725 92,595 96,836 101,080 105,017 105,283 109,814 117,365 Changes in assumptions (23,548) (8,417) (26,068) (19,805) - - - 19,686 - - Changes of Benefit Terms - - - - - - - - 1,795 -
Differences between expected and actual
experience (21,782) - 79,037 (37,885) 6,927 6,220 873 (17,684) 12,692 58,854 Benefit payments, including refunds of
employee contributions (53,853) (57,702) (60,108) (63,483) (67,073) (71,266) (74,608) (79,265) (84,559) (92,502) Net change in total pension liability 10,481 46,983 110,352 (3,461) 61,707 61,953 57,450 55,850 67,520 114,527 Total pension liability - beginning 1,204,098 1,214,579 1,261,562 1,371,914 1,368,453 1,430,160 1,492,113 1,549,563 1,605,413 1,672,933 Total pension liability - ending (a) $ 1,214,579 $ 1,261,562 $ 1,371,914 $ 1,368,453 $ 1,430,160 $ 1,492,113 $ 1,549,563 $ 1,605,413 $ 1,672,933 $ 1,787,460 Plan Fiduciary Net Position
Net Plan to Plan Resource Movement $ - $ - $ - $ - $ - $ - $ (1) $ - $ 11 $ - Contributions - employer 25,996 29,426 30,477 29,920 34,627 239,156 26,274 27,329 29,150 21,228 Contributions - employees 4,380 5,187 6,115 9,749 10,286 10,957 10,358 10,788 11,238 12,738 Net investment income 21,671 4,958 104,771 86,307 71,046 56,837 305,548 (122,366) 89,464 142,128 Benefit payments, including refunds of
employee contributions (53,853) (57,702) (60,108) (63,483) (67,073) (71,266) (74,608) (79,265) (84,559) (92,502) Administrative and other income/(expenses) (1,056) (594) (1,290) (4,664) (776) (1,604) (1,371) (1,020) (1,084) (1,235) Net change in fiduciary net position (2,862) (18,725) 79,965 57,829 48,110 234,080 266,200 (164,534) 44,220 82,357 Plan fiduciary net position - beginning 973,649 970,787 952,062 1,032,027 1,089,856 1,137,966 1,372,046 1,638,246 1,473,712 1,517,932 Plan fiduciary net position - ending (b) $ 970,787 $ 952,062 $ 1,032,027 $ 1,089,856 $ 1,137,966 $ 1,372,046 $ 1,638,246 $ 1,473,712 $ 1,517,932 $ 1,600,289 Plan net pension liability/(assets) - ending
(a) - (b) $ 243,792 $ 309,500 $ 339,887 $ 278,597 $ 292,194 $ 120,067 $ (88,683) $ 131,701 $ 155,001 $ 187,171 Plan fiduciary net position as a percentage
of the total pension liability %79.93 %75.47 %75.23 %79.64 %79.57 %91.95 %105.72 %91.80 %90.73 %89.53 Covered-employee payroll $ 110,891 $ 118,512 $ 117,637 $ 121,957 $ 128,881 $ 131,492 $ 131,216 $ 130,060 $ 142,170 $ 157,294 Plan net pension liability/(asset) as a
percentage of covered-employee payroll %219.85 %261.15 %288.93 %228.44 %226.72 %91.31 %(67.59) %101.26 %109.03 %118.99 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 or 2024. 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)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Pension Liability
Service cost $ 18,187 $ 18,144 $ 21,373 $ 20,390 $ 21,454 $ 22,391 $ 23,160 $ 25,734 $ 24,896 $ 25,288 Interest on total pension liability 64,815 67,513 70,337 73,104 76,922 80,940 84,654 87,761 91,186 94,848 Changes in assumptions (6,835) (4,373) (18) 868 - - - 43,994 - - Changes of benefit terms - - - - - - - - 454 -
Differences between expected and actual
experience (16,117) - 59,768 (4,644) 10,897 11,896 6,361 (3,506) 2,104 7,396 Benefit payments, including refunds of
employee contributions (42,076) (44,609) (47,009) (50,477) (52,564) (56,537) (59,739) (63,558) (68,451) (72,754) Net change in total pension liability 17,974 36,675 104,451 39,241 56,709 58,690 54,436 90,425 50,189 54,778 Total pension liability - beginning 882,153 900,127 936,802 1,041,253 1,080,494 1,137,203 1,195,893 1,250,329 1,340,754 1,390,943 Total pension liability - ending (a) $ 900,127 $ 936,802 $ 1,041,253 $ 1,080,494 $ 1,137,203 $ 1,195,893 $ 1,250,329 $ 1,340,754 $ 1,390,943 $ 1,445,721 Plan Fiduciary Net Position
Net Plan to Plan Resource Movement $ - $ - $ - $ - $ - $ - $ 1 $ - $ (11) $ - Contributions - employer 23,384 26,483 26,775 25,451 29,254 263,061 22,931 24,810 26,238 26,565 Contributions - employees 924 1,837 2,449 6,402 7,679 9,454 10,492 10,557 10,702 12,619 Net investment income 15,632 3,478 76,844 62,933 51,750 41,765 242,945 (97,579) 71,711 114,722 Benefit payments, including refunds of
employee contributions (42,076) (44,609) (47,009) (50,478) (52,564) (56,537) (59,739) (63,558) (68,451) (72,754) Administrative and other income/(expenses) (816) (428) (1,145) (3,403) (567) (1,170) (1,085) (812) (864) (988) Net change in fiduciary net position (2,952) (13,239) 57,914 40,905 35,552 256,573 215,545 (126,582) 39,325 80,164 Plan fiduciary net position - beginning 711,641 708,689 695,450 753,364 794,269 829,821 1,086,394 1,301,939 1,175,357 1,214,682 Plan fiduciary net position - ending (b) $ 708,689 $ 695,450 $ 753,364 $ 794,269 $ 829,821 $ 1,086,394 $ 1,301,939 $ 1,175,357 $ 1,214,682 $ 1,294,846 Plan net pension liability/(assets) - ending
(a) - (b) $ 191,438 $ 241,352 $ 287,889 $ 286,225 $ 307,382 $ 109,499 $ (51,610) $ 165,397 $ 176,261 $ 150,875 Plan fiduciary net position as a percentage
of the total pension liability %78.73 %74.24 %72.35 %73.51 %72.97 %90.84 %104.13 %87.66 %87.33 %89.56 Covered-employee payroll $ 63,612 $ 68,707 $ 66,226 $ 68,251 $ 73,237 $ 76,955 $ 78,813 $ 77,338 $ 77,810 $ 86,210 Plan net pension liability/(asset) as a
percentage of covered-employee payroll %300.95 %351.28 %434.71 %419.37 %419.71 %142.29 %(65.48) %213.86 %226.53 %175.01 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 or 2024. 86 CITY OF RIVERSIDE
SCHEDULE OF PENSION PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(amounts expressed in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Miscellaneous Plan
Actuarially determined contribution $ 24,885 $ 26,955 $ 29,948 $ 34,486 $ 38,889 $ 26,274 $ 27,330 $ 29,144 $ 21,237 $ 27,482 Contribution in relation to the actuarially determined contribution (29,426) (30,477) (29,948) (34,486) (239,220) (26,274) (27,330) (29,144) (21,237) (27,482) Contribution deficiency/(excess) $ (4,541) $ (3,522) $ - $ - $ (200,331) $ - $ - $ - $ - $ - Covered-employee payroll $ 118,512 $ 117,637 $ 121,957 $ 128,881 $ 131,492 $ 131,216 $ 130,060 $ 142,170 $ 157,294 $ 171,626 Contributions as a percentage of covered-employee payroll %24.83 %25.91 %24.56 %26.76 %181.93 %20.02 %21.01 %20.50 %13.50 %16.01 Safety Plan
Actuarially determined contribution $ 21,886 $ 23,076 $ 25,289 $ 29,047 $ 32,785 $ 22,925 $ 24,773 $ 26,195 $ 26,564 $ 28,375 Contribution in relation to the actuarially determined contribution (26,483) (26,775) (25,289) (29,047) (263,016) (22,925) (24,773) (26,195) (26,564) (28,375) Contribution deficiency/(excess) $ (4,597) $ (3,699) $ - $ - $ (230,231) $ - $ - $ - $ - $ - Covered-employee payroll $ 68,707 $ 66,226 $ 68,251 $ 73,237 $ 76,955 $ 78,813 $ 77,338 $ 77,810 $ 86,210 $ 99,447 Contributions as a percentage of covered-employee payroll %38.54 %40.43 %37.05 %39.66 %341.78 %29.09 %32.03 %33.67 %30.81 %28.53 Notes to Schedule:
Actuarial valuation date: June 30, 2022
Actuarial cost method: Entry Age Normal
Amortization method/period: June 30, 2022 CalPERS Funding Valuation Report Asset valuation method: Fair value of assets
Discount rate: 6.8%
Overall payroll growth: 2.8%
Inflation: 2.3%
Retirement age: 2021 CalPERS experience study
Mortality:
2021 CalPERS Experience Study, projected generationall for future years using 80 percent of the Society of Actuaries' Scale MP-2020.
87 CITY OF RIVERSIDE
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(amounts expressed in thousands)
Reporting period June 30, 2018 2019 2020 2021 2022 2023 2024 2025 Measurement period June 30, 2017 2018 2019 2020 2021 2022 2023 2024 Total OPEB liability
Service cost $ 2,554 $ 2,403 $ 2,435 $ 2,569 $ 2,646 $ 3,184 $ 2,576 $ 3,131 Interest on the total OPEB liability 1,090 1,301 1,392 1,810 1,394 1,070 1,622 1,808 Differences between expected and actual
experience - - 292 (2,300) (2,267) - 1,173 -
Changes in assumptions (1,668) (306) 9,550 2,225 (3,086) (5,926) (274) (1,340) Benefit payments (1,732) (1,846) (2,003) (2,032) (2,193) (1,627) (1,838) (1,600) Net change in total OPEB liability 244 1,552 11,666 2,272 (3,506) (3,299) 3,259 1,999 Total OPEB liability - beginning 36,542 36,786 38,338 50,004 52,276 48,770 45,471 48,730 Total OPEB liability - ending $ 36,786 $ 38,338 $ 50,004 $ 52,276 $ 48,770 $ 45,471 $ 48,730 $ 50,729 Covered-employee payroll $ 170,858 $ 170,858 $ 185,967 $ 191,546 $ 197,292 $ 203,211 $ 209,307 $ 215,587 Total OPEB liability as a percentage of
covered-employee payroll %21.53 %22.44 %26.89 %27.29 %24.72 %22.38 %23.28 %23.53 (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 to 2024,, the discount rate was changed from 3.65 percent to 3.93 percent; respectively.
There are no asset accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan. 88 Non-Major Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.
Urban Areas Security Initiative (UASI) Fund - To account for UASI grants received from the U.S. Department of Homeland Security.
Grants and Restricted Programs Fund - To account for federal, state, and local grants along with other restricted program revenue.
Gas Tax Fund - To account for the construction and maintenance of the road network system of the City. Financing is provided by the City's share of state gasoline taxes which state law requires to be used to maintain streets.
Air Quality Improvements Fund - To account for qualified air pollution reduction programs funded by the South Coast Air Quality Management District.
Housing & Community Development Fund - To account for federal grants received from the Department of Housing and Urban Development (HUD). The grants are used for the development of a viable urban community b y providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes.
National Pollution Discharge Elimination System (NPDES) Storm Drain Fund - T o account for storm drain maintenance and inspection required for California storm water permits. Activities are funded by a special assessment district of Riverside County, California.
Special Districts Fund - T o account for Loving Homes, Village at Canyon Crest, Sycamore Highlands, Riverwalk, Riverwalk Parks Projects, and Street Lighting districts.
Housing Fund - To account for the housing activities for persons with low or moderate income.
Capital Projects Funds
Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.
Special Capital Improvement Fund - T o account for the acquisition, construction and installation of capital improvements and a Community F acilities District within the City.
Storm Drain Fund - To account for the acquisition, construction and installation of storm drains in the City.
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, 2025
(amounts expressed in thousands)
Special Revenue Funds
Urban Areas
Security
Initiative
Grants and
Restricted
Programs Gas Tax
Air Quality
Improvements
Housing &
Community
Development
NPDES
Strom Drain
Special
Districts Housing Total
Assets:
Cash and investments $ - $ 11,630 $ 31,322 $ 2,414 $ 8,822 $ - $ 1,539 $ 6,916 $ 62,643 Cash and investments with fiscal agent - - - - - - - - - Receivables, net of allowance for uncollectible
Interest - 66 198 15 86 - 7 44 416
Property taxes - - - - - - 80 - 80
Accounts - 110 - - 22 - - 13 145
Intergovernmental 1,604 8,778 1,663 110 7,665 627 - - 20,447 Notes - - - - 19,600 - - 35,422 55,022
Prepaid items 16 35 - - - - - - 51
Due from other funds - 2,415 - - - - - 232 2,647
Land and improvements held for resale - - - - 391 - - 682 1,073 Total assets $ 1,620 $ 23,034 $ 33,183 $ 2,539 $ 36,586 $ 627 $ 1,626 $ 43,309 $ 142,524 Liabilities, Deferred Inflows of Resources, and
Fund Balances:
Liabilities:
Accounts payable $ 104 $ 2,631 $ 1,201 $ 11 $ 4,247 $ - $ 34 $ 4 $ 8,232 Accrued payroll - 103 - - 28 4 - 13 148
Retainage payable - 234 566 - 240 22 - - 1,062
Intergovernmental 4 - - - - - 1 - 5
Unearned revenue 136 13,553 - - 11,408 - - - 25,097
Deposits - - - - - - 85 35 120
Due to other funds 1,374 - - - 1,287 24 - - 2,685
Total liabilities 1,618 16,521 1,767 11 17,210 50 120 52 37,349 Deferred Inflows of Resources:
Unavailable revenue 1,604 2,915 - - 20,339 - - 35,421 60,279 Total deferred inflows of resources 1,604 2,915 - - 20,339 - - 35,421 60,279 Fund Balances:
Nonspendable:
Inventories, prepaids, and deposits 16 35 - - - - - - 51 Permanent fund principal - - - - - - - - -
Restricted:
Housing and redevelopment - - - - - - - 7,836 7,836
Transportation and public works - 3,563 31,416 2,528 - 577 1,506 - 39,590 Other purposes - - - - - - - - -
Unassigned: (1,618) - - - (963) - - - (2,581)
Total fund balances (1,602) 3,598 31,416 2,528 (963) 577 1,506 7,836 44,896 Total liabilities, deferred inflows of
resources, and fund balances $ 1,620 $ 23,034 $ 33,183 $ 2,539 $ 36,586 $ 627 $ 1,626 $ 43,309 $ 142,524 90 CITY OF RIVERSIDE
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
Capital Projects Funds
Permanent
Fund
Special Capital
Improvement Storm Drain Total Library Special
Total Non-Major
Governmental
Funds
Assets:
Cash and investments $ 9,611 $ 1,333 $ 10,944 $ 1,758 $ 75,345 Cash and investments with fiscal agent 330 - 330 - 330
Receivables, net of allowance for uncollectible
Interest 64 9 73 - 489
Property taxes - - - - 80
Accounts - - - - 145
Intergovernmental - 50 50 - 20,497
Notes - - - - 55,022
Prepaid items - - - - 51
Due from other funds - - - - 2,647
Land and improvements held for resale - - - - 1,073
Total assets $ 10,005 $ 1,392 $ 11,397 $ 1,758 $ 155,679 Liabilities, Deferred Inflows of Resources, and Fund Balances:
Liabilities:
Accounts payable $ 20 $ - $ 20 $ - $ 8,252
Accrued payroll - - - - 148
Retainage payable 8 - 8 - 1,070
Intergovernmental - - - - 5
Unearned revenue - 494 494 - 25,591
Deposits - - - - 120
Due to other funds - - - - 2,685
Total liabilities 28 494 522 - 37,871
Deferred Inflows of Resources:
Unavailable revenue - 50 50 - 60,329
Total deferred inflows of resources - 50 50 - 60,329
Fund Balances:
Nonspendable:
Inventories, prepaids, and deposits - - - - 51
Permanent fund principal - - - 1,758 1,758
Restricted:
Housing and redevelopment - - - - 7,836
Transportation and public works - - - - 39,590
Other purposes 9,977 848 10,825 - 10,825
Unassigned: - - - - (2,581)
Total fund balances 9,977 848 10,825 1,758 57,479
Total liabilities, deferred inflows of resources, and fund balances $ 10,005 $ 1,392 $ 11,397 $ 1,758 $ 155,679 91 CITY OF RIVERSIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Special Revenue Funds
Urban Areas
Security
Initiative
Grants and
Restricted
Programs Gas Tax
Air Quality
Improvements
Housing &
Community
Development
NPDES
Strom Drain
Special
Districts Housing Total
Revenues:
Licenses and permits $ - $ - $ - $ - $ - $ - $ - $ - $ - Intergovernmental 1,601 46,844 17,523 422 16,777 - - - 83,167 Charges for services - 1,970 - 42 - - - - 2,012
Special assessments - - - - - 1,314 4,290 - 5,604
Rental and investment income 2 679 1,893 125 621 1 31 305 3,657 Miscellaneous - 1,182 3 - 316 - - 133 1,634
Total revenues 1,603 50,675 19,419 589 17,714 1,315 4,321 438 96,074 Expenditures:
Current:
General government - 6,194 3 79 14,258 331 - 1,400 22,265 Public safety 3,205 8,939 - - 57 - 5,086 - 17,287
Highways and streets - 443 - - - - 595 - 1,038
Culture and recreation - 1,463 - - - - 58 - 1,521
Capital outlay - 4,329 19,993 - 5,764 982 - - 31,068
Debt service:
Principal - 48 - - 35 - - 76 159
Interest and fiscal charges - 2 - - 12 - - 27 41
Total expenditures 3,205 21,418 19,996 79 20,126 1,313 5,739 1,503 73,379 Excess/(deficiency) of revenues over/(under)
expenditures (1,602) 29,257 (577) 510 (2,412) 2 (1,418) (1,065) 22,695 Other Financing Sources/(Uses):
Transfers in - 356 325 - 115 - 1,696 232 2,724
Transfers out - (32,264) (40) - (1,287) - - - (33,591)
Total other financing sources/(uses) - (31,908) 285 - (1,172) - 1,696 232 (30,867) Net change in fund balances (1,602) (2,651) (292) 510 (3,584) 2 278 (833) (8,172) Fund Balances:
Beginning of year, as previously stated - 6,249 31,708 2,018 2,621 575 1,228 8,669 53,068 Error correction - - - - - - - - -
Beginning of year, as restated - 6,249 31,708 2,018 2,621 575 1,228 8,669 53,068 End of year $ (1,602) $ 3,598 $ 31,416 $ 2,528 $ (963) $ 577 $ 1,506 $ 7,836 $ 44,896 92 CITY OF RIVERSIDE
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Capital Projects Funds
Permanent
Fund
Special Capital
Improvement Storm Drain Total Library Special
Total
Non-Major
Governmental
Funds
Revenues:
Licenses and permits $ 2,998 $ 143 $ 3,141 $ - $ 3,141
Intergovernmental - 110 110 - 83,277
Charges for services - - - - 2,012
Special assessments - - - - 5,604
Rental and investment income 574 67 641 43 4,341
Miscellaneous - - - 158 1,792
Total revenues 3,572 320 3,892 201 100,167
Expenditures:
Current:
General government 49 - 49 - 22,314
Public safety - - - - 17,287
Highways and streets - - - - 1,038
Culture and recreation - - - 119 1,640
Capital outlay 98 295 393 - 31,461
Debt service:
Principal - - - - 159
Interest and fiscal charges - - - - 41
Total expenditures 147 295 442 119 73,940
Excess/(deficiency) of revenues over/(under) expenditures 3,425 25 3,450 82 26,227 Other Financing Sources/(Uses):
Transfers in 911 - 911 - 3,635
Transfers out (3,042) - (3,042) - (36,633)
Total other financing sources/(uses) (2,131) - (2,131) - (32,998) Net change in fund balances 1,294 25 1,319 82 (6,771)
Fund Balances:
Beginning of year, as previously stated 9,911 995 10,906 1,676 65,650 Error correction (1,228) (172) (1,400) - (1,400)
Beginning of year, as restated 8,683 823 9,506 1,676 64,250 End of year $ 9,977 $ 848 $ 10,825 $ 1,758 $ 57,479
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, 2025
(amounts expressed in thousands)
Urban Areas Security Initiative Grants and Restricted Programs Gas Tax Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental $ 13,841 $ 1,601 $ (12,240) $ 141,143 $ 46,844 $ (94,299) $ 16,790 $ 17,523 $ 733 Charges for services - - - 2,034 1,970 (64) - - -
Rental and investment income - 2 2 110 679 569 150 1,893 1,743 Miscellaneous - - - 1,280 1,182 (98) - 3 3
Total revenues 13,841 1,603 (12,238) 144,567 50,675 (93,892) 16,940 19,419 2,479 Expenditures:
Current:
General government - - - 33,758 6,194 27,564 - 3 (3)
Public safety 13,841 3,205 10,636 11,380 8,939 2,441 - - - Highways and streets - - - 2,330 443 1,887 - - -
Culture and recreation - - - 5,359 1,463 3,896 - - -
Capital outlay - - - 67,537 4,329 63,208 44,044 19,993 24,051 Principal - - - - 48 (48) - - -
Interest and fiscal charges - - - - 2 (2) - - -
Total expenditures 13,841 3,205 10,636 120,364 21,418 98,946 44,044 19,996 24,048 Excess/(deficiency) of revenues
over/(under) expenditures - (1,602) (1,602) 24,203 29,257 5,054 (27,104) (577) 26,527 Other Financing Sources/(Uses):
Transfers in - - - 2,814 356 (2,458) 325 325 -
Transfers out - - - (32,264) (32,264) - - (40) (40)
Total other financing
sources/(uses) - - - (29,450) (31,908) (2,458) 325 285 (40) Net change in fund balance - (1,602) (1,602) (5,247) (2,651) 2,596 (26,779) (292) 26,487 Fund Balances:
Beginning of year - - - 6,249 6,249 - 31,708 31,708 -
End of year $ - $ (1,602) $ (1,602) $ 1,002 $ 3,598 $ 2,596 $ 4,929 $ 31,416 $ 26,487 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, 2025
(amounts expressed in thousands)
Air Quality Improvements Housing & Community Development NPDES Strom Drain Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues:
Intergovernmental $ 425 $ 422 $ (3) $ 45,788 $ 16,777 $ (29,011) $ 397 $ - $ (397) Charges for services 40 42 2 - - - - - -
Special assessments - - - - - - 1,496 1,314 (182)
Rental and investment income - 125 125 217 621 404 - 1 1 Miscellaneous - - - 1,091 316 (775) - - -
Total revenues: 465 589 124 47,096 17,714 (29,382) 1,893 1,315 (578) Expenditures:
Current:
General government 436 79 357 29,005 14,258 14,747 520 331 189 Public safety - - - 129 57 72 - - -
Capital outlay - - - 32,665 5,764 26,901 1,482 982 500
Debt service:
Principal - - - 35 35 - - - -
Interest and fiscal charges - - - 12 12 - - - -
Total expenditures 436 79 357 61,846 20,126 41,720 2,002 1,313 689 Excess/(deficiency) of revenues
over/(under) expenditures 29 510 481 (14,750) (2,412) 12,338 (109) 2 111 Other Financing Sources/(Uses):
Transfers in - - - 27 115 88 - - -
Transfers out - - - (1,289) (1,287) 2 - - -
Total other financing
sources/(uses) - - - (1,262) (1,172) 90 - - -
Net change in fund balances 29 510 481 (16,012) (3,584) 12,428 (109) 2 111 Fund Balances:
Beginning of year 2,018 2,018 - 2,621 2,621 - 575 575 - End of year $ 2,047 $ 2,528 $ 481 $ (13,391) $ (963) $ 12,428 $ 466 $ 577 $ 111 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, 2025
(amounts expressed in thousands)
Special Districts Housing
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues
Special assessments $ 4,208 $ 4,290 $ 82 $ - $ - $ -
Rental and investment income - 31 31 - 305 305
Miscellaneous - - - 253 133 (120)
Total revenues 4,208 4,321 113 253 438 185
Expenditures:
Current:
General government - - - 2,887 1,400 1,487
Public safety 5,084 5,086 (2) - - -
Highways and streets 1,015 595 420 - - -
Culture and recreation 497 58 439 - - -
Debt service:
Principal - - - 66 76 10
Interest and fiscal charges - - - 27 27 -
Total expenditures 6,596 5,739 857 2,980 1,503 1,477
Excess/(deficiency) of revenues over/(under) expenditures (2,388) (1,418) 970 (2,727) (1,065) 1,662 Other Financing Sources/(Uses):
Transfers in 1,675 1,696 21 232 232 -
Total other financing sources/(uses) 1,675 1,696 21 232 232 - Net change in fund balances (713) 278 991 (2,495) (833) 1,662 Fund Balances:
Beginning of year 1,228 1,228 - 8,669 8,669 -
End of year $ 515 $ 1,506 $ 991 $ 6,174 $ 7,836 $ 1,662 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, 2025
(amounts expressed in thousands)
Capital Outlay Fund Special Capital Improvement Storm Drain Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Final
Budget
Actual
Amounts
Variance to
Final Budget
Positive
(Negative)
Revenues:
Licenses and permits $ - $ - $ - $ 2,585 $ 2,998 $ 413 $ 190 $ 143 $ (47) Intergovernmental 86,743 37,531 (49,212) - - - 23,117 110 (23,007) Special assessments 610 256 (354) - - - - - -
Rental and investment income 180 5,732 5,552 30 574 544 13 67 54 Miscellaneous - 213 213 - - - - - -
Total revenues 87,533 43,732 (43,801) 2,615 3,572 957 23,320 320 (23,000) Expenditures:
Current:
General government - - - 49 49 - - - -
Capital outlay 271,239 74,132 197,107 2,301 98 2,203 23,981 295 23,686 Debt service:
Principal - 1 (1) - - - - - -
Interest and fiscal charges 6 1 5 - - - - - -
Total expenditures 271,245 74,134 197,111 2,350 147 2,203 23,981 295 23,686 Excess/(deficiency) of revenues
over/(under) expenditures (183,712) (30,402) 153,310 265 3,425 3,160 (661) 25 686 Other Financing Sources/(Uses):
Transfers in 43,090 43,106 16 911 911 - - - -
Transfers out (14,122) (14,122) - (3,042) (3,042) - - - - Issuance of debt related to leases and
subscriptions - 7 7 - - - - - -
Issuance of long-term debt 78,000 - (78,000) - - - - - - Total other financing
sources/(uses) 106,968 28,991 (77,977) (2,131) (2,131) - - - - Net change in fund balance (76,744) (1,411) 75,333 (1,866) 1,294 3,160 (661) 25 686 Fund Balances:
Beginning of year, as previously stated 98,315 98,315 - 9,911 9,911 - 995 995 - Error correction - (625) (625) - (1,228) (1,228) - (172) (172) Beginning of year, as restated 98,315 97,690 (625) 9,911 8,683 (1,228) 995 823 (172) End of year $ 21,571 $ 96,279 $ 74,708 $ 8,045 $ 9,977 $ 1,932 $ 334 $ 848 $ 514 97 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.
98 CITY OF RIVERSIDE
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Assets:
Current assets:
Cash and investments $ 4,670 $ 13,826 $ 91 $ 10,009 $ 3,586 $ 32,182 Receivables, net of allowance for uncollectible
Interest 38 111 - 68 11 228
Utility billed - 1,938 - - - 1,938
Utility unbilled - 2,070 - - - 2,070
Accounts 595 408 21 14 672 1,710
Intergovernmental - - 775 6 - 781
Leases receivable 422 - - 27 108 557
Inventory - - - - 119 119
Prepaid items - 9 - - 41 50
Deposits - - - - 300 300
Restricted assets:
Cash and cash equivalents - 2,500 - - - 2,500
Total current assets 5,725 20,862 887 10,124 4,837 42,435 Noncurrent assets:
Restricted assets:
Cash and investments at fiscal agent 45 308 - 82 - 435
Leases receivable 3,930 - - 2,033 2,504 8,467
Regulatory assets - 7,896 - - - 7,896
Derivative instruments - - - - 590 590
Capital assets, not depreciated 9,994 - - 9,137 2,133 21,264 Capital assets, net of depreciation 10,310 9,017 2,168 18,504 82,159 122,158 Lease and subscription capital assets, net of amortization 5 - 246 20 - 271 Total noncurrent assets 24,284 17,221 2,414 29,776 87,386 161,081 Total assets 30,009 38,083 3,301 39,900 92,223 203,516
Deferred Outflows of Resources:
Changes in derivative values - - - - 745 745
Deferred charge on refunding - - - - 450 450
Pension related items 324 2,224 1,450 594 - 4,592
OPEB related items 18 155 112 11 - 296
Total deferred outflows of resources 342 2,379 1,562 605 1,195 6,083 (Continued)
99 CITY OF RIVERSIDE
COMBINING STATEMENT OF NET POSITION
NON-MAJOR ENTERPRISE FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Liabilities:
Current liabilities:
Accounts payable 99 3,684 5 272 1,479 5,539
Accrued payroll 20 139 73 45 - 277
Retainage payable 20 - - 128 - 148
Unearned revenue 19 - 217 - 27 263
Deposits - - - - 1,070 1,070
Accrued interest - - 4 39 - 43
Long-term obligations 70 505 202 1,243 4,443 6,463
Compensated absences 65 279 119 80 - 543
Landfill capping - 559 - - - 559
OPEB liability 5 39 21 12 - 77
Lease liability 1 - 79 18 - 98
Total current liabilities 299 5,205 720 1,837 7,019 15,080 Noncurrent liabilities:
Long-term obligations 486 3,180 1,568 10,155 45,026 60,415 Compensated absences 44 198 53 25 - 320
Advances from other funds 2,000 2,870 - 1,833 - 6,703
Landfill capping - 8,013 - - - 8,013
Regulatory liability - - - - 41 41
Derivative instruments - - - - 1,218 1,218
Net pension liability 600 4,123 2,689 1,101 - 8,513
OPEB liability 163 1,418 732 300 - 2,613
Lease liability 4 - 85 5 - 94
Total noncurrent liabilities 3,297 19,802 5,127 13,419 46,285 87,930 Total liabilities 3,596 25,007 5,847 15,256 53,304 103,010 Deferred Inflows of Resources:
Change in derivative values - - - - 566 566
Pension related items 4 24 16 7 - 51
OPEB related items 26 236 134 52 - 448
Lease related items 4,251 - - 1,996 2,555 8,802
Total deferred inflows of resources 4,281 260 150 2,055 3,121 9,867 Net Position:
Net investment in capital assets 20,284 8,738 2,250 16,981 35,336 83,589 Restricted net position:
Landfill capping - 2,500 - - - 2,500
Unfunded accrued liability 45 308 - 82 - 435
Unrestricted/(deficit) 2,145 3,649 (3,384) 6,131 1,657 10,198 Total net position $ 22,474 $ 15,195 $ (1,134) $ 23,194 $ 36,993 $ 96,722 100
CITY OF RIVERSIDE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Operating Revenues:
Charges for services $ 2,235 $ 37,436 $ 278 $ 11,276 $ 14,791 $ 66,016 Total operating revenues 2,235 37,436 278 11,276 14,791 66,016 Operating Expenses:
Personnel services 940 6,471 3,449 1,001 - 11,861
Contractual services 190 10,424 160 3,975 147 14,896
Maintenance and operation 284 12,186 594 802 2,638 16,504 General 277 5,207 994 639 17,238 24,355
Materials and supplies 36 1,201 190 19 - 1,446
Claims/Insurance 123 188 83 149 494 1,037
Depreciation 756 1,117 258 1,166 3,119 6,416
Amortization 2 567 95 74 - 738
Total operating expenses 2,608 37,361 5,823 7,825 23,636 77,253 Operating income/(loss) (373) 75 (5,545) 3,451 (8,845) (11,237) Nonoperating Revenues/(Expenses):
Grant subsidies - - 4,923 - - 4,923
Interest revenue 309 1,333 14 574 204 2,434
Interest expense and fiscal charges (21) (196) (69) (642) (1,674) (2,602) Other 179 202 53 10 229 673
Gain/(loss) on disposal of capital assets - 13 - - - 13 Total nonoperating revenues/(expenses): 467 1,352 4,921 (58) (1,241) 5,441 Income/(loss) before contributions and transfers 94 1,427 (624) 3,393 (10,086) (5,796) Capital contributions 127 - 1,392 - - 1,519
Transfers in - 1,104 - - 11,009 12,113
Change in net position 221 2,531 768 3,393 923 7,836
Net Position
Beginning of year 22,253 12,664 (1,902) 19,801 36,070 88,886 End of year $ 22,474 $ 15,195 $ (1,134) $ 23,194 $ 36,993 $ 96,722 101
CITY OF RIVERSIDE
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Cash Flows from Operating Activities:
Cash received from customers and users $ 2,028 $ 36,471 $ 293 $ 11,341 $ 14,856 $ 64,989 Cash paid to suppliers for goods or services (1,156) (29,126) (2,689) (5,873) (21,489) (60,333) Cash paid to employees for services (789) (5,663) (2,886) (704) - (10,042) Net cash provided/(used) by operating activities 83 1,682 (5,282) 4,764 (6,633) (5,386) Cash Flows from Non-Capital Financing Activities:
Transfers in - 1,104 - - 11,008 12,112
Cash received/(paid) from/(to) other funds - - (233) - - (233) Payment receipt from advances to other funds 2,000 2,870 - (167) - 4,703 Debt service payment on pension obligation bonds (67) (384) (196) (99) - (746) Other non-operating receipts (payments) 42 202 53 (30) 171 438 Grant subsidies (repayments) - - 5,352 - - 5,352
Net cash provided/(used) by non-capital financing activities 1,975 3,792 4,976 (296) 11,179 21,626 Cash Flows from Capital and Related Financing Activities:
Purchase of capital assets (538) (6,698) (762) (943) 2 (8,939) Proceeds from revenue bonds, including premium - - - 5,284 - 5,284 Proceeds from sales of capital assets - 13 - - - 13
Principal paid on long-term obligations - (107) - (1,178) (4,290) (5,575) Interest paid on long-term obligations (21) (196) (65) (601) (1,668) (2,551) Refunding Escrow Agent - - - (5,222) - (5,222)
Contributions 127 - 1,391 - - 1,518
Lease and subscription payments 2 (1) (181) (76) - (256) Bond issuance costs - - - (56) - (56)
Net cash provided/(used) by capital and related financing activities (430) (6,989) 383 (2,792) (5,956) (15,784) Cash Flows from Investing Activities:
Interest from investments 290 1,305 14 552 208 2,369
Proceeds from investment securities (7) (49) - (13) - (69) Net cash provided/(used) by investing activities 283 1,256 14 539 208 2,300 Net increase/(decrease) in cash and cash equivalents 1,911 (259) 91 2,215 (1,202) 2,756 Cash and cash equivalents at beginning of year 2,759 16,585 - 7,794 4,788 31,926 Cash and cash equivalents at end of year (excluding noncurrent cash and investments at fiscal agent) $ 4,670 $ 16,326 $ 91 $ 10,009 $ 3,586 $ 34,682 102
CITY OF RIVERSIDE
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Business-Type Activities - Enterprise Funds
Airport Refuse Transportation Public Parking
Civic
Entertainment
Total
Non-Major
Enterprise
Funds
Reconciliation of Operating Income to Net Cash Provided/(Used) by Operating Activities:
Operating income/(loss) $ (373) $ 75 $ (5,545) $ 3,451 $ (8,845) $ (11,237) Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities:
Depreciation 756 1,117 258 1,166 3,119 6,416
Amortization 2 567 95 74 - 738
(Increase)/decrease in utility billed receivable - (18) - - - (18) (Increase)/decrease in utility unbilled receivable - (868) - - - (868) (Increase)/decrease in accounts receivable (199) (77) 14 10 (107) (359) (Increase)/decrease in property tax receivable 5 - - - - 5 (Increase)/decrease in intergovernmental receivable 1 - - 55 - 56 (Increase)/decrease in inventory - - - - (39) (39)
(Increase)/decrease in prepaid items - (3) - - 24 21
Increase/(decrease) in accounts payable (231) 408 (663) (293) (958) (1,737) Increase/(decrease) in accrued payroll 2 (49) 11 18 - (18) Increase/(decrease) in retainage payable (19) - - 4 - (15) Increase/(decrease) in unearned revenue (14) - - - (47) (61) Increase/(decrease) in deposits payable - - - - 220 220 Increase/(decrease) in compensated absences 21 80 26 56 - 183 Increase/(decrease) in landfill capping liability - (372) - - - (372) Changes in net pension liability/(asset) and related deferred inflows/(outflows) of resources 124 761 489 204 - 1,578
Changes in OPEB liability and related deferred inflows/(outflows) of resources 8 61 33 19 - 121 Total adjustments 456 1,607 263 1,313 2,212 5,851
Net cash provided/(used) by operating activities $ 83 $ 1,682 $ (5,282) $ 4,764 $ (6,633) $ (5,386) Non-Cash Investing, Capital, and Financing Activities:
Lease and subscription additions $ - $ - $ 332 $ 6 $ - $ 338 Reconciliation of Statements of Cash Flows to Statement of Net Position:
Cash and investments $ 4,670 $ 13,826 $ 91 $ 10,009 $ 3,586 $ 32,182 Cash and cash equivalents - 2,500 - - - 2,500
Cash and cash equialents at end of year $ 4,670 $ 16,326 $ 91 $ 10,009 $ 3,586 $ 34,682 103
Internal Service Funds
Internal Service Funds are used to account for the financing of goods and services provided by one City department to other City departments on a cost- reimbursement basis.
Self-Insurance Trust - To account for the operations of the City's self-insured workers' compensation, unemployment, and liability programs.
Central Stores - To account for the operations of the City's centralized supplies inventory, including receiving and delivery s ervices provided to City departments.
Central Garage - To account for the maintenance and repair of all city-owned vehicles and motorized equipment, except for Police vehicles. 104
CITY OF RIVERSIDE
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2025
(amounts expressed in thousands)
Governmental Activities - Internal Service Funds
Self Insurance
Trust Central Stores Central Garage
Total Internal
Service Funds
Assets:
Current assets:
Cash and investments $ 37,536 $ - $ 9,990 $ 47,526
Receivables, net of allowance for uncollectible
Interest 236 - 65 301
Accounts 650 7 106 763
Intergovernmental - - 332 332
Inventory - 10,539 501 11,040
Total current assets 38,422 10,546 10,994 59,962
Noncurrent assets:
Capital assets, not depreciated - - 458 458
Capital assets, net of depreciation - 61 9,907 9,968
Lease and subscription capital assets, net of
amortization 9 - 8 17
Total noncurrent assets 9 61 10,373 10,443
Total assets 38,431 10,607 21,367 70,405
Deferred Outflows of Resources:
Pension related items 490 321 1,546 2,357
OPEB related items 36 22 93 151
Total deferred outflows of resources 526 343 1,639 2,508 Liabilities:
Current liabilities:
Accounts payable 135 741 281 1,157
Accrued payroll 46 22 110 178
Retainage payable - - 19 19
Deposits 50 - - 50
Due to other funds - 355 - 355
Long-term obligations 53 55 632 740
Compensated absences 104 19 184 307
Claims and judgments 21,191 - - 21,191
OPEB liability 13 6 24 43
Lease liability 2 - 2 4
Total current liabilities 21,594 1,198 1,252 24,044
Noncurrent liabilities:
Long-term obligations 423 420 2,847 3,690
Compensated absences 54 10 180 244
Claims and judgments 99,023 - - 99,023
Net pension liability 909 596 2,866 4,371
OPEB liability 191 192 835 1,218
Lease liability 7 - 5 12
Total noncurrent liabilities 100,607 1,218 6,733 108,558 Total liabilities 122,201 2,416 7,985 132,602
Deferred Inflows of Resources:
Pension related items 6 4 17 27
OPEB related items 47 39 118 204
Total deferred inflows of resources 53 43 135 231
Net Position:
Net investment in capital assets - 61 10,366 10,427
Unrestricted/(deficit) (83,297) 8,430 4,520 (70,347)
Total net position $ (83,297) $ 8,491 $ 14,886 $ (59,920) 105
CITY OF RIVERSIDE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Governmental Activities - Internal Service Funds
Self Insurance
Trust Central Stores Central Garage
Total Internal
Service Funds
Operating Revenues:
Charges for services $ 22,296 $ 2,730 $ 11,586 $ 36,612 Total operating revenues 22,296 2,730 11,586 36,612
Operating Expenses:
Personnel services 2,287 906 4,411 7,604
Contractual services 576 7 289 872
Maintenance and operation 2 36 4,422 4,460
General 5,757 207 1,518 7,482
Materials and supplies 2 16 187 205
Claims/Insurance 29,517 13 213 29,743
Depreciation - 12 1,544 1,556
Amortization 2 1 4 7
Total operating expenses 38,143 1,198 12,588 51,929
Operating income (loss) (15,847) 1,532 (1,002) (15,317) Nonoperating Revenues/(Expenses):
Interest revenue 2,011 - 536 2,547
Interest expense and fiscal charges (17) (17) (171) (205) Other 12 - 60 72
Gain/(loss) on disposal of capital assets - - 63 63
Total nonoperating revenues/(expenses) 2,006 (17) 488 2,477 Income/(loss) before contributions and operating
transfers (13,841) 1,515 (514) (12,840)
Capital contributions - - 3 3
Change in net position (13,841) 1,515 (511) (12,837)
Beginning of year (69,456) 6,976 15,397 (47,083)
End of year $ (83,297) $ 8,491 $ 14,886 $ (59,920)
106
CITY OF RIVERSIDE
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Governmental Activities - Internal Service Funds
Self Insurance
Trust Central Stores
Central
Garage
Total Internal
Service Funds
Cash Flows from Operating Activities:
Cash received from customers and users $ 50 $ - $ - $ 50 Cash received from interfund services provided 22,328 2,722 11,253 36,303 Cash paid to suppliers for goods and services (17,255) (781) (6,654) (24,690) Cash paid to employees for services (2,013) (782) (3,730) (6,525) Net cash provided/(used) by operating activities 3,110 1,159 869 5,138 Cash Flows from Non-Capital Financing Activities:
Cash received/(paid) from/(to) other funds - (1,088) - (1,088) Debt service payment on pension obligation bonds (51) (54) (282) (387) Other non-operating receipts 12 - 60 72
Net cash provided/(used) by non-capital financing activities (39) (1,142) (222) (1,403) Cash Flows from Capital and Related Financing Activities:
Purchase of capital assets - - (2,824) (2,824)
Proceeds from sales of capital assets - - 63 63
Principal paid on long-term obligations - - 41 41
Interest paid on long-term obligations (18) (17) (171) (206) Contributions - - 3 3
Lease and subscription payments (3) - (3) (6)
Net cash provided/(used) by capital and related financing activities (21) (17) (2,891) (2,929)
Cash Flows from Investing Activities:
Interest from investments 1,939 - 533 2,472
Net cash provided/(used) by capital and related financing activities 1,939 - 533 2,472
Net increase/(decrease) in cash and cash equivalents 4,989 - (1,711) 3,278 Cash and cash equivalents at beginning of year 32,547 - 11,701 44,248 Cash and cash equivalents at end of year $ 37,536 $ - $ 9,990 $ 47,526 Reconciliation of Operating Income to Net Cash Provided/(Used) by Operating Activities:
Operating income/(loss) $ (15,847) $ 1,532 $ (1,002) $ (15,317) Adjustments to Reconcile Operating Income/(Loss) Net Cash Provided/(Used) by Operating Activities:
Depreciation - 12 1,544 1,556
Amortization 2 1 4 7
(Increase)/decrease in accounts receivable - (7) (50) (57) (Increase)/decrease in intergovernmental receivable 28 - (284) (256) (Increase)/decrease in inventory - (896) (56) (952)
Increase/(decrease) in accounts payable 2 392 13 407
Increase/(decrease) in accrued payroll 22 8 33 63
Increase/(decrease) in retainage payable - - 19 19
Increase/(decrease) in deposits payable 50 - - 50
Increase/(decrease) in compensated absences 55 8 84 147 Increase/(decrease) in claims and judgments 18,599 - - 18,599 Changes in net pension liability/(asset) and related deferred inflows/(outflows) of resources 179 100 526 805
Changes in OPEB liability and related deferred inflows/(outflows) of resources 20 9 38 67
Total adjustments 18,957 (373) 1,871 20,455
Net cash provided/(used) by operating activities $ 3,110 $ 1,159 $ 869 $ 5,138 107
Combining General Fund and Capital Outlay Fund Schedules with Measure Z Fund Activity
108
CITY OF RIVERSIDE
BALANCE SHEET
COMBINING GENERAL FUND SCHEDULE
JUNE 30, 2025
(amounts expressed in thousands)
General Fund Measure Z Fund
Total General
Fund
Assets:
Cash and investments $ 188,809 $ 53,683 $ 242,492
Cash and investments with fiscal agent 76,852 - 76,852
Receivables, net of allowance for uncollectible
Interest 1,049 316 1,365
Property taxes 1,831 - 1,831
Sales taxes 15,860 14,177 30,037
Utility billed 1,516 - 1,516
Utility unbilled 1,971 - 1,971
Accounts 6,300 1 6,301
Intergovernmental 4,956 - 4,956
Leases receivable 9,605 - 9,605
Prepaid items 907 84 991
Due from other funds 1,775 1,033 2,808
Land and improvements held for resale 175 - 175
Advances to other funds 6,703 - 6,703
Total assets $ 318,309 $ 69,294 $ 387,603
Liabilities, Deferred Inflows of Resources, and Fund Balances :
Liabilities:
Accounts payable $ 8,212 $ 652 $ 8,864
Accrued payroll 16,863 788 17,651
Retainage payable 62 2 64
Intergovernmental 194 - 194
Unearned revenue 2,960 - 2,960
Deposits 10,622 - 10,622
Due to other funds 4,822 - 4,822
Total liabilities 43,735 1,442 45,177
Deferred Inflows of Resources:
Unavailable revenue 6,188 - 6,188
Lease related items 9,273 - 9,273
Total deferred inflows of resources 15,461 - 15,461
Fund Balances:
Nonspendable:
Inventories, prepaids, and deposits 907 84 991
Advances and notes 5,660 - 5,660
Land and improvements held for resale 175 - 175
Restricted:
Unfunded accrued liability 76,851 - 76,851
Committed:
Economic contingency 76,431 5,000 81,431
Other purposes 64,323 - 64,323
Assigned:
General government 6,133 5,634 11,767
Public safety 1,029 10,396 11,425
Highways and streets 3,454 913 4,367
Culture and recreation 1,892 51 1,943
Continuing projects 13,184 9,270 22,454
Unassigned 9,074 36,504 45,578
Total fund balances 259,113 67,852 326,965
Total liabilities, deferred inflows of resources, and fund balances $ 318,309 $ 69,294 $ 387,603
109
CITY OF RIVERSIDE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
COMBINING GENERAL FUND SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
General Fund Measure Z Fund
Total General
Fund
Revenues:
Taxes $ 240,142 $ 81,326 $ 321,468
Licenses and permits 12,168 - 12,168
Intergovernmental 4,634 - 4,634
Charges for services 17,359 - 17,359
Fines and forfeitures 2,208 - 2,208
Special assessments 615 - 615
Rental and investment income 19,065 3,457 22,522
Miscellaneous 2,200 - 2,200
Total revenues 298,391 84,783 383,174
Expenditures:
Current:
General government 23,629 5,719 29,348
Public safety 205,849 30,483 236,332
Highways and streets 24,778 3,550 28,328
Culture and recreation 46,756 391 47,147
Capital outlay 11,188 6,511 17,699
Debt service:
Principal 2,626 25 2,651
Interest and fiscal charges 118 - 118
Total expenditures 314,944 46,679 361,623
Excess/(deficiency) of revenues over/(under)
expenditures (16,553) 38,104 21,551
Other Financing Sources/(Uses):
Transfers in 95,488 1,038 96,526
Transfers out (62,001) (26,625) (88,626)
Transfers in/(out) to General Fund * 24,156 (24,156) -
Proceeds from sale of capital assets 388 - 388
Issuance of debt related to leases and subscriptions 7,533 - 7,533 Total other financing sources/(uses) 65,564 (49,743) 15,821 Net change in fund balance 49,011 (11,639) 37,372
Fund Balances:
Beginning of year, as previously stated 208,367 79,491 287,858 Error correction 1,735 - 1,735
Beginning of year, as restated 210,102 79,491 289,593
End of year $ 259,113 $ 67,852 $ 326,965
* 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.
110
CITY OF RIVERSIDE
BALANCE SHEET
COMBINING CAPITAL OUTLAY FUND SCHEDULE
JUNE 30, 2025
(amounts expressed in thousands)
Capital Outlay
Fund
Measure Z
Capital Outlay
Fund
Total Capital
Outlay Fund
Assets:
Cash and investments $ 51,125 $ 22,172 $ 73,297
Cash and investments with fiscal agent 4 - 4
Receivables, net of allowance for uncollectible
Interest 487 142 629
Intergovernmental 27,199 - 27,199
Prepaid items - 11 11
Due from other funds 2,407 - 2,407
Total assets $ 81,222 $ 22,325 $ 103,547
Liabilities, Deferred Inflows of Resources, and Fund
Balances:
Liabilities:
Accounts payable $ 2,162 $ 877 $ 3,039
Retainage payable 580 477 1,057
Unearned revenue 113 - 113
Total liabilities 2,855 1,354 4,209
Deferred Inflows of Resources:
Unavailable revenue 3,059 - 3,059
Total deferred inflows of resources 3,059 - 3,059
Fund Balances:
Inventories, prepaids, and deposits - 11 11
Restricted:
Transportation and public works 42,304 - 42,304
Committed:
Other purposes - 20,960 20,960
Assigned:
Continuing projects 33,004 - 33,004
Total fund balances 75,308 20,971 96,279
Total liabilities, deferred inflows of resources, and fund balances $ 81,222 $ 22,325 $ 103,547
111
CITY OF RIVERSIDE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
COMBINING CAPITAL OUTLAY FUND SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2025
(amounts expressed in thousands)
Capital Outlay
Fund
Measure Z
Capital Outlay
Fund
Total Capital
Outlay Fund
Revenues:
Intergovernmental $ 37,531 $ - $ 37,531
Special assessments 256 - 256
Rental and investment income 4,268 1,464 5,732
Miscellaneous 213 - 213
Total revenues 42,268 1,464 43,732
Expenditures:
Capital outlay 52,020 22,112 74,132
Debt service:
Principal - 1 1
Interest and fiscal charges 1 - 1
Total expenditures 52,021 22,113 74,134
Excess/(deficiency) of revenues over/(under) expenditures (9,753) (20,649) (30,402) Other Financing Sources/(Uses)::
Transfers in 24,853 18,253 43,106
Transfers out (14,117) (5) (14,122)
Issuance of debt related to leases and subscriptions - 7 7 Total other financing sources/(uses): 10,736 18,255 28,991 Net change in fund balances 983 (2,394) (1,411)
Fund Balances:
Beginning of year, as previously stated 74,950 23,365 98,315 Error correction (625) - (625)
Beginning of year, as restated 74,325 23,365 97,690
End of year $ 75,308 $ 20,971 $ 96,279
112
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 114
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
Revenue Capacity 119
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 129
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information 135
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 138
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. 113
CITY OF RIVERSIDE
TABLE 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEAR
(accrual basis of accounting) (in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities
Net investment in capital assets $ 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 $ 1,176,467 Restricted - Expendable 106,488 104,853 112,183 126,551 153,806 164,809 203,038 237,159 230,945 297,802 Restricted - Nonexpendable - - - - - - - 1,642 1,676 1,758 Unrestricted (389,278) (362,146) (364,500) (356,340) (369,222) (366,713) (284,713) (242,886) (242,765) (317,101) Total governmental activities net position $ 841,120 $ 845,116 $ 841,579 $ 873,048 $ 866,575 $ 968,328 $ 1,094,540 $ 1,194,730 $ 1,196,732 $ 1,158,926 Business-Type Activities
Net investment in capital assets $ 654,870 $ 702,844 $ 800,227 $ 867,206 $ 751,865 $ 756,116 $ 774,469 $ 790,844 $ 785,422 $ 809,305 Restricted - Expendable 85,526 93,570 80,717 67,057 75,170 78,885 85,666 96,638 120,525 136,001 Unrestricted 235,144 245,116 199,143 155,468 272,776 263,837 284,977 283,132 299,278 336,205 Total business-type activities net position $ 975,540 $ 1,041,530 $ 1,080,087 $ 1,089,731 $ 1,099,811 $ 1,098,838 $ 1,145,112 $ 1,170,614 $ 1,205,225 $ 1,281,511 Primary Government
Net investment in capital assets $ 1,778,780 $ 1,805,253 $ 1,894,123 $ 1,970,043 $ 1,833,856 $ 1,926,348 $ 1,950,684 $ 1,989,659 $ 1,992,298 $ 1,985,772 Restricted - Expendable 192,014 198,423 192,900 193,608 228,976 243,694 288,704 333,797 351,470 433,803 Restricted - Nonexpendable - - - - - - - 1,642 1,676 1,758 Unrestricted (154,134) (117,030) (165,357) (200,872) (96,446) (102,876) 264 40,246 56,513 19,104 Total primary government net position $ 1,816,660 $ 1,886,646 $ 1,921,666 $ 1,962,779 $ 1,966,386 $ 2,067,166 $ 2,239,652 $ 2,365,344 $ 2,401,957 $ 2,440,437 114
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
20161 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental Activities:
General government $ 24,483 $ 44,510 $ 45,360 $ 51,139 $ 63,651 $ 97,927 $ 66,937 $ 34,258 $ 108,301 $ 95,866 Public safety 161,284 160,665 216,772 201,942 222,061 219,136 169,742 239,744 275,631 282,364 Highways and streets 38,836 38,585 42,544 43,770 46,983 42,034 41,125 50,588 55,000 107,629 Cultural and recreation 47,762 49,406 38,362 31,200 37,400 37,693 38,885 50,863 56,685 73,905 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 17,483 Total governmental activities 288,752 309,194 355,452 338,096 383,276 415,873 336,495 394,051 513,224 577,247 Business-Type Activities:
Electric 307,925 317,335 333,061 347,804 350,667 366,165 349,004 401,427 409,674 418,293 Water 57,769 62,189 68,281 70,912 73,742 71,738 69,303 76,475 80,452 87,978 Sewer 39,978 38,305 54,136 70,137 62,961 61,029 59,060 67,198 69,465 70,901 Airport 1,799 1,998 2,179 1,972 2,304 2,326 1,944 2,383 2,438 2,629 Refuse 21,652 21,953 22,082 24,205 26,549 28,428 28,449 32,779 35,717 37,557 Transportation 4,113 4,221 4,782 4,493 4,607 4,623 3,758 4,808 5,648 5,892 Public Parking 5,141 5,448 6,186 5,151 4,628 4,684 4,566 5,494 8,046 8,467 Civic Entertainment - - 19,995 24,151 21,584 11,885 21,804 27,696 31,557 25,310 Total business-type activities 438,377 451,449 510,702 548,825 547,042 550,878 537,888 618,260 642,997 657,027 Total primary government expenses $ 727,129 $ 760,643 $ 866,154 $ 886,921 $ 930,318 $ 966,751 $ 874,383 $ 1,012,311 $ 1,156,221 $ 1,234,274 Program Revenues
Governmental Activities:
Charges for services:
General government $ 24,944 $ 27,441 $ 24,605 $ 29,281 $ 25,698 $ 11,485 $ 13,721 $ 14,046 $ 17,582 $ 16,774 Public safety 3,243 1,167 1,880 2,443 2,138 7,649 14,491 14,963 14,937 16,218 Highways and streets 5,709 5,930 5,554 6,036 5,174 11,278 6,090 7,288 7,078 6,026 Cultural and recreation 12,458 22,802 6,078 7,465 5,050 3,694 6,770 6,790 7,932 7,308 Operating grants and contributions 16,321 19,374 22,548 23,966 21,779 64,405 50,378 59,368 50,327 76,067 Capital grants and contributions 31,216 7,617 18,039 27,450 19,945 28,284 38,508 34,305 31,064 57,771 Total governmental activities 93,891 84,331 78,704 96,641 79,784 126,795 129,958 136,760 128,920 180,164 Business-Type Activities:
Charges for services:
Electric 354,530 366,066 364,516 363,570 368,969 376,101 397,947 419,392 429,853 475,608 Water 57,250 62,627 66,828 65,177 70,167 80,252 80,535 78,703 81,425 96,083 Sewer 52,664 59,735 65,081 64,282 64,114 66,323 71,557 72,140 75,395 71,953 Airport 1,549 1,578 1,562 1,618 1,743 1,709 1,728 1,872 2,039 2,235 Refuse 21,806 22,567 23,085 23,004 25,109 26,468 29,768 31,477 33,444 37,436 Transportation 377 359 441 444 309 65 168 258 276 278
Public Parking 4,918 5,009 6,258 4,604 4,301 2,968 4,888 6,084 10,228 11,276 Civic Entertainment - - 16,393 16,977 12,233 1,381 11,883 18,158 22,000 14,791 Operating grants and contributions 2,322 3,751 3,374 3,093 3,473 3,976 5,866 4,374 3,637 4,923 Capital grants and contributions 18,868 24,151 26,957 10,607 13,979 12,273 20,527 15,484 20,343 23,981 Total business-type activities 514,284 545,843 574,495 553,376 564,397 571,516 624,867 647,942 678,640 738,564 Total primary government program revenues $ 608,175 $ 630,174 $ 653,199 $ 650,017 $ 644,181 $ 698,311 $ 754,825 $ 784,702 $ 807,560 $ 918,728 115
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
20161 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net Revenues/(Expenses)
Governmental Activities $ (194,861) $ (224,863) $ (276,748) $ (241,455) $ (303,492) $ (289,078) $ (206,537) $ (257,291) $ (384,304) $ (397,083) Business-Type Activities 75,907 94,394 63,793 4,551 17,355 20,638 86,979 29,682 35,643 81,537 Total primary government net
revenues/(expenses) $ (118,954) $ (130,469) $ (212,955) $ (236,904) $ (286,137) $ (268,440) $ (119,558) $ (227,609) $ (348,661) $ (315,546) General Revenues and Other Changes in Net
Position
Governmental Activities:
Taxes:
Sales taxes $ 60,976 $ 75,883 $ 120,338 $ 130,645 $ 128,653 $ 150,321 $ 173,933 $ 177,722 $ 174,300 $ 176,256 Property taxes 55,545 59,526 63,515 69,478 72,609 71,986 79,790 84,751 90,383 94,638 Utility users' taxes 27,828 27,958 27,498 28,009 29,044 30,577 32,464 34,963 32,218 35,278 Franchise taxes 5,730 4,814 4,972 5,256 5,443 5,527 5,955 6,422 6,694 6,300 Transient occupancy taxes 6,093 6,622 6,793 7,163 5,959 5,801 8,764 8,587 8,778 9,108 Intergovernmental, unrestricted 477 145 172 156 656 499 661 467 1,097 1,199 Investment income 729 6,145 5,187 7,500 10,185 4,969 (7,613) 8,817 23,089 33,933 Miscellaneous 11,708 2,050 4,278 - 9,146 5,988 3,876 10,342 6,193 4,234 Transfers 41,216 45,716 41,459 37,115 35,324 34,879 34,915 25,421 43,554 41,332 Total governmental activities 210,302 228,859 274,212 285,322 297,019 310,547 332,745 357,492 386,306 402,278 Business-Type Activities:
Investment income 6,888 2,650 3,939 19,488 19,838 681 (13,324) 11,191 31,514 43,336 Miscellaneous 22,666 14,662 12,901 10,322 8,211 11,986 12,639 10,049 8,392 14,864 Extraordinary items - - - - - - (5,748) - - -
Transfers (41,216) (45,716) (41,459) (37,115) (35,324) (34,278) (34,915) (25,421) (43,554) (41,332) Total business-type activities (11,662) (28,404) (24,619) (7,305) (7,275) (21,611) (41,348) (4,181) (3,648) 16,868 Total primary government 198,640 200,455 249,593 278,017 289,744 288,936 291,397 353,311 382,658 419,146 Change in Net Position
Governmental Activities $ 15,441 $ 3,996 $ (2,536) $ 43,867 $ (6,473) $ 21,469 $ 126,208 $ 100,201 $ 2,002 $ 5,195 Business-Type Activities 64,245 65,990 39,174 (2,754) 10,080 (973) 45,631 25,501 31,995 98,405 Total primary government $ 79,686 $ 69,986 $ 36,638 $ 41,113 $ 3,607 $ 20,496 $ 171,839 $ 125,702 $ 33,997 $ 103,600 1 The decrease in total business-type activities net position is primarily due to the power plant closure. 116
CITY OF RIVERSIDE
TABLE 3
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting) (in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable $ 23,094 $ 26,168 $ 1,947 $ 949 $ 1,446 $ 1,870 $ 2,087 $ 2,115 $ 3,963 $ 6,826 Restricted 3,067 2,651 2,991 3,411 10,699 10,697 30,715 32,695 60,166 76,851 Committed - - 53,800 65,916 59,280 62,400 82,801 111,301 138,061 145,754 Assigned 9,922 14,968 23,242 26,984 21,260 24,890 41,707 35,566 33,579 51,956 Unassigned 29,495 39,283 7,644 23,907 41,184 59,790 69,908 71,700 52,089 45,578 Total general fund $ 65,578 $ 83,070 $ 89,624 $ 121,167 $ 133,869 $ 159,647 $ 227,218 $ 253,377 $ 287,858 $ 326,965 All Other Governmental Funds
Nonspendable $ 1,619 $ 1,601 $ 4,855 $ 1,560 $ 1,510 $ 1,477 $ 1,495 $ 1,736 $ 1,832 $ 1,820 Restricted for:
Housing and redevelopment 24,746 24,098 18,827 16,668 16,611 18,553 12,292 11,252 11,290 7,836 Debt service 26,221 6,455 11,509 6,825 11,210 11,292 11,679 14,059 13,001 57,567 Transportation and public works 36,876 34,178 43,499 91,379 84,413 78,884 87,073 121,543 82,585 81,894 Other purposes 3,628 4,145 3,451 5,505 5,984 6,275 7,351 8,783 10,906 10,825 Committed - - - - - - - - 23,365 20,960
Assigned - - - - - - - - 33,987 33,004
Unassigned - (24) - - (27) - (1,215) - - (2,581)
Total all other governmental funds $ 93,090 $ 70,453 $ 82,141 $ 121,937 $ 119,701 $ 116,481 $ 118,675 $ 157,373 $ 176,966 $ 211,325 Notes:
Certain reclassifications have been made to prior year balances to conform with current year's presentation. 117
CITY OF RIVERSIDE
TABLE 4
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting) (in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues:
Taxes $ 156,172 $ 174,803 $ 223,116 $ 240,416 $ 241,708 $ 267,714 $ 300,906 $ 312,445 $ 312,373 $ 321,580 Licenses and permits 11,611 14,455 12,442 14,317 13,023 12,778 14,850 15,894 16,492 15,309 Intergovernmental 51,896 31,440 42,454 44,950 42,296 87,226 88,000 95,405 78,511 125,442 Charges for services 26,443 31,384 17,438 16,927 15,968 14,578 16,938 17,978 15,451 19,371 Fines and forfeitures 1,941 1,976 3,717 2,078 1,887 2,100 2,096 1,131 993 2,208 Special assessments 7,039 7,578 7,113 7,973 6,950 7,674 7,188 8,084 8,587 7,711 Rental and investment income 4,370 4,718 3,446 6,548 8,441 4,437 (6,533) 8,054 22,839 33,113 Miscellaneous 12,578 7,252 8,716 5,370 7,845 5,962 3,703 6,040 2,379 4,205 Total revenues $ 272,050 $ 273,606 $ 318,442 $ 338,579 $ 338,118 $ 402,469 $ 427,148 $ 465,031 $ 457,625 $ 528,939 Expenditures:
General government $ 19,900 $ 20,650 $ 21,135 $ 18,880 $ 107,779 $ 30,887 $ 24,332 $ 27,258 $ 32,184 $ 51,662 Public safety 164,800 163,712 190,916 198,363 434,208 200,733 205,968 219,559 237,709 253,619 Highways and streets 17,416 17,504 19,207 20,927 22,254 16,897 18,805 22,324 25,377 29,366 Culture and recreation 39,583 40,643 29,382 30,528 28,825 28,391 33,065 39,491 43,236 48,787 Capital outlay 53,208 31,000 33,504 41,585 55,178 69,248 71,534 73,838 73,528 123,292 Debt service:
Principal 51,987 72,700 21,904 37,867 23,761 24,475 28,126 31,984 23,487 26,074 Interest and fiscal charges 16,451 16,115 12,746 10,493 10,773 20,372 20,134 19,076 17,694 16,670 Issuance costs 180 29 24 854 1,185 - - - 247 475
Total expenditures $ 363,525 $ 362,353 $ 328,818 $ 359,497 $ 683,963 $ 391,003 $ 401,964 $ 433,530 $ 453,462 $ 549,945 Excess/(deficiency) of revenue
over/(under) expenditures $ (91,475) $ (88,747) $ (10,376) $ (20,918) $ (345,845) $ 11,466 $ 25,184 $ 31,501 $ 4,163 $ (21,006) Other Financing Sources/(Uses):
Transfers in $ 61,384 $ 94,521 $ 102,774 $ 94,771 $ 95,932 $ 112,907 $ 116,891 $ 155,256 $ 126,130 $ 180,713 Transfers out (20,168) (48,805) (66,021) (58,688) (60,608) (102,028) (85,380) (129,835) (82,576) (139,381) Issuance of long-term debt 31,145 31,578 14,500 49,485 320,131 - 11,292 - 21,190 58,774 Proceeds from sale of capital assets 261 4,199 461 149 856 213 59 4,235 4,389 388 Issuance of debt related to leases and
subscriptions - - - - - - 1,714 3,705 1,714 7,540
Capital lease financing 5,846 2,109 - - - - - - -
Payment to refunding bond escrow agent - - - - - - - - (23,371) (15,007) Other finance sources - bond premium/(discount) - - - 6,540 - - - - - - Premium on issuance of long-term debt - - - - - - - - 2,435 1,735 Total other financing sources/(uses) 78,468 83,602 51,714 92,257 356,311 11,092 44,576 33,361 49,911 94,762 Net changes in fund balances $ (13,007) $ (5,145) $ 41,338 $ 71,339 $ 10,466 $ 22,558 $ 69,760 $ 64,862 $ 54,074 $ 73,756 Debt services as a percentage of non-capital
expenditures %21.714 %26.625 %11.999 %15.143 %5.428 %13.383 %13.535 %13.956 %10.613 %8.801 (1)
(1) Includes one-time payment of $318,944 to CalPERS to paydown the Unfunded Pension Liability for Miscellaneous and Safety personnel. 118
CITY OF RIVERSIDE
TABLE 5
BUSINESS-TYPE ACTIVITIES - ELECTRICITY REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(accrual basis of accounting) (in thousands)
Fiscal
Year
Residential
Sales
Commercial
Sales 1
Industrial
Sales 1
Wholesale
Sales
Other
Sales
Transmission
Revenue
Other
Operating
Revenue
Total
Revenues
2016 $ 116,997 $ 69,759 $ 113,756 $ 3 $ 4,737 $ 32,924 $ 16,354 $ 354,530 2017 117,662 71,456 115,432 9 4,782 35,497 21,779 366,617 2018 115,630 73,971 112,264 2 4,792 37,484 8,860 353,003 2019 116,303 72,511 111,445 344 4,824 35,730 22,413 363,570 2020 121,162 71,570 113,132 - 4,849 34,817 23,438 368,968 2021 133,460 71,510 112,572 27 4,864 32,316 21,351 376,100 2022 134,403 75,899 122,684 89 4,891 32,245 27,736 397,947 2023 140,538 77,191 124,600 2,043 5,162 35,233 34,625 419,392 2024 138,879 77,850 130,519 - 5,254 39,934 37,416 429,852 2025 164,209 83,190 142,845 7 5,371 32,749 47,237 475,608 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. 119
CITY OF RIVERSIDE
TABLE 6
GOVERNMENTAL ACTIVITIES - TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
(accural basis of accounting) (in thousands)
Fiscal Year
Sales
Tax1
Property
Tax2
Utility
Users'
Tax
Franchise
Tax
Transient
Occupancy
Tax
Total
Taxes
2016 $ 60,976 $ 55,545 $ 27,828 $ 5,730 $ 6,093 $ 156,172 2017 75,883 59,526 27,958 4,814 6,622 174,803
2018 120,338 63,515 27,498 4,972 6,793 223,116
2019 130,645 69,343 28,009 5,256 7,163 240,416
2020 128,653 72,609 29,044 5,443 5,959 241,708
2021 150,321 71,986 30,577 5,527 5,801 264,212
2022 173,933 79,790 32,464 5,955 8,764 300,906
2023 177,722 84,751 34,963 6,422 8,587 312,445
2024 174,300 90,383 32,218 6,694 8,778 312,373
2025 176,256 94,638 35,278 6,300 9,108 321,580
1 Increase in sales tax in fiscal year 2017 is due to Measure Z which was passed by the voters November 2016 and became effective April 1, 2017.
Measure Z is a one percent transaction and use tax.
2 Decrease in property taxes in fiscal year 2013 relates to the dissolution of the Redevelopment Agency. Upon the dissolution of the Redevelopment Agency o n February 1 , 2012, property t axes received by t he Successor Agency a re reported in a private-purpose trust fund and therefore are excluded from the activities of the primary government. 120
CITY OF RIVERSIDE
TABLE 7
TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS (in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Apparel stores $ 203,001 $ 214,852 $ 210,158 $ 212,036 $ 210,439 $ 147,176 $ 249,034 $ 232,964 $ 231,058 $ 242,305 General merchandise 477,903 478,538 465,490 470,386 465,234 426,500 617,257 460,364 458,278 460,013 Food stores 217,902 168,854 169,922 184,278 185,859 202,647 208,060 225,764 225,749 229,671 Eating and drinking places 533,317 582,262 609,705 639,995 677,763 587,403 788,765 875,980 879,796 918,498 Building materials 567,790 636,415 666,907 738,178 761,881 813,584 1,010,364 1,265,631 1,094,427 1,030,982 Auto dealers and supplies 1,548,385 1,608,231 1,588,854 1,621,311 1,672,475 1,728,498 2,084,828 2,111,240 2,282,012 2,253,249 Service stations 370,257 338,762 360,830 432,991 434,162 327,119 527,973 644,484 597,100 558,996 Other retail stores 633,089 692,375 677,850 666,659 636,043 609,428 764,854 743,571 700,044 682,186 All other outlets 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 2,590,573 Total $ 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 $ 8,966,473 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. 121
CITY OF RIVERSIDE
TABLE 8
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (in thousands)
Fiscal
Year
Ended
June 30 Secured Unsecured
Less:
Exemptions
Taxable
Assessed
Value
Total
Direct
Rate1
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 2022 35,353,418 1,736,131 (12,881,213) 24,208,336 0.123 20232 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 0.121 2025 42,870,683 2,338,264 (16,713,409) 28,495,538 0.116 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
122
CITY OF RIVERSIDE
TABLE 9
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF ASSESSED VALUATION)
LAST TEN FISCAL YEARS
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Basic Levy1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Unified School Districts Debt Service 2 0.487 0.495 0.517 0.521 0.535 0.529 0.535 0.519 0.561 0.518 City of Riverside Debt Service 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 0.007 Riverside City Community College Debt Service 0.017 0.016 0.016 0.015 0.015 0.015 0.015 0.015 0.015 0.012 Total direct & overlapping3 tax rates 1.514 1.521 1.543 1.546 1.559 1.553 1.559 1.543 1.583 1.537 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 0.005 0.005 0.005 0.005 0.003 0.000 Total direct rate5 0.124 0.124 0.124 0.124 0.124 0.123 0.123 0.122 0.121 0.116 Notes:
Amounts presented in this table have been restated for prior years to reflect the most current information available. 1 In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 2 Includes: Alvord Unified School District, Corona Norco Unified School District, Jurupa Unified School District, Moreno Valley Unified School District, and Riverside Unified School District. 3 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all property owners. 4 City's share of 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's levy has been subtracted where known.
5 Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical information and excludes revenues derived from aircraft. Beginning in 2013/14, the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognize enforceable obligations assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
Source: Riverside County Assessor 2015/16 - 2024/25 Tax Rate Table. 123
CITY OF RIVERSIDE
TABLE 10
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO (in thousands)
2025 2016
Property Owner
Taxable
Assessed
Valuation Rank
Percentage of
Total Taxable
Assessed
Value
Taxable
Assessed
Valuation Rank
Percentage of
Total Taxable
Assessed
Value
Riverside Healthcare System $ 349,988,235 1 %0.80 $ 146,113,760 2 %0.57 Target Corporation 259,847,122 2 %0.60
Tyler Mall LP 244,459,390 3 %0.56 199,362,194 1 0.78
Nordstrom Inc 221,106,012 4 %0.51
CPT Riverside Plaza LLC 177,557,805 5 %0.41
La Sierra University 165,495,822 6 %0.38 106,057,873 4 %0.41 TA Lance Drive LLC 141,198,286 7 %0.32 - %
Rohr Inc 139,226,014 8 %0.32 101,518,042 5 0.39
490 Columbia 138,247,095 9 %0.32
Corona Pointe Resort LLC 134,926,874 10 %0.31
State Street Bank 112,074,035 3 %0.44
Advanced Group 13 107 98,504,571 6 %0.38
1001 Columbia PT 95,626,913 7 %0.37
Vestar Riverside Plaza LLC 84,356,088 8 %0.33
Northrop Drive Apartments Investment 78,240,182 9 %0.30 Canyon Springs Marketplace Corporation 71,460,172 10 %0.28 Totals $ 1,972,052,655 %4.53 $ 1,093,313,830 %4.25
Notes:
The amounts shown above include assessed value data for both the City and the Successor Agency.
Source: Riverside County Assessor 2024/2025 and 2015/16 Combined Tax Rolls and the SBE Non Unitary Tax Roll. 124
CITY OF RIVERSIDE
TABLE 11
PROPERTY TAXES LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS (in thousands)
Fiscal Year Ended
Taxes
Levied for
Collected Within the
Fiscal Year of the Levy
Collections
in
Subsequent Total Collections to Date
June 30 Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy 2016 $ 50,023 $ 49,585 99.12% $ - $ 50,023 100.00%
2017 53,655 53,252 99.25% - 53,655 100.00%
2018 57,567 57,173 99.32% - 57,567 100.00%
2019 63,003 62,557 99.29% - 63,003 100.00%
2020 66,295 65,729 99.15% - 66,295 100.00%
2021 68,363 67,968 99.42% - 68,363 100.00%
2022 71,892 71,573 99.56% - 71,892 100.00%
2023 78,685 78,228 99.42% - 78,685 100.00%
2024 84,918 84,330 99.31% - 84,330 100.00%
2025 89,944 89,275 99.26% - 89,275 99.26%
Notes:
The table reflects amounts related to the City. In addition, it includes amounts related to the Redevelopment Agency through dissolution (01/31/12). The amounts collected by the Redevelopment Agency include monies that were passed-though to other agencies. Current tax levies are the original charge as provided by the County of Riverside. Current tax collections do not include supplemental taxes, aircraft taxes or other property taxes.
The City adopted the Teeter plan available with the County of Riverside effective Fiscal year 2014. Under the Teeter plan, the County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100% of the levy.
Source: Riverside County Auditor-Controller and City Finance Department 125
CITY OF RIVERSIDE
TABLE 12
ELECTRICITY SOLD BY TYPE OF CUSTOMER
LAST TEN FISCAL YEARS (in millions of kilowatt-hours)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Type of Customer:
Residential 726 730 727 722 722 783 759 786 709 781
Commercial1 438 448 476 460 442 430 443 440 427 438
Industrial1 982 996 970 947 931 890 923 920 916 927
Wholesale sales2 - 1 - - 1 - 2 14 - -
Other 23 23 22 21 18 18 19 15 12 11
Total 2,169 2,198 2,195 2,150 2,114 2,121 2,146 2,175 2,064 2,157 Total direct rate
Monthly base rate * 18.06 18.06 18.06 19.41 20.63 21.84 23.20 24.55 26.09 27.75 * Includes a Reliability Charge
1 Changes in fiscal years 2018, 2019, 2020 and 2021 reflect reclassification of certain Industrial and Commercial accounts related to contract accounts. Prior to fiscal year 2018, accounts were reflected in the Industrial customer class.
2 For fiscal years 2016, 2018, 2019, 2021, 2024, and 2025 wholesale MWH was less than 1 MWH.
Source: Riverside Public Utilities, Finance Services
126
CITY OF RIVERSIDE
TABLE 13
ELECTRICITY RATES
LAST TEN FISCAL YEARS (average rate in dollars per kilowatt-hour) Fiscal
Year Ended
June 30 Residential Commercial1 Industrial1 Other
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 *
2025 0.21030 * 0.18993 * 0.15409 * 0.47088 *
1 Changes in fiscal years 2018, 2019, 2020 and 2021 reflect reclassification of certain Industrial and Commercial accounts related to contract accounts. Prior to fiscal year 2018, accounts were reflected in the Industrial customer class. * Rate calculations were taken from the Retail Sales not the financial statements.
Does not include Public Benefits charge.
Source: Riverside Public Utilities, Finance Services
127
CITY OF RIVERSIDE
TABLE 14
TOP 10 ELECTRICITY CUSTOMERS
CURRENT YEAR AND NINE YEARS AGO
2025 2016
Electricity Customer
Electricity
Charges Rank
Percent of
Total Electric
Revenues
Electricity
Charges Rank
Percent of
Total Electric
Revenues
Local University $ 14,940,624 1 %3.78 $ 12,075,034 1 %3.96 Local Government 10,685,366 2 %2.70 8,467,901 2 %2.77
Local Government 9,625,651 3 %2.43 7,350,087 3 %2.41
Local School District 7,186,605 4 %1.82 4,385,174 4 %1.44 Corporation 5,142,851 5 %1.30 4,126,026 5 %1.35
Corporation 4,606,243 6 %1.16 3,298,925 6 %1.08
Hospital 4,390,005 7 %1.11 - %0.00
Corporation 4,165,626 8 %1.05 3,117,515 7 %1.02
Local University 3,839,167 9 %0.97 - %0.00
Corporation 3,217,434 10 %0.81
Hospital 2,601,830 8 %0.85
Local University - %0.00 2,315,680 9 %0.76
Local School District - %0.00 2,167,774 10 %0.71
Total $ 67,799,572 %17.14 $ 49,905,946 %16.35
Retail sales per financial statements * $ 395,614,626 $ 305,248,858 Source: Riverside Public Utilities, Finance Services
* Financial Report - Riverside Public Utilities
128
CITY OF RIVERSIDE
TABLE 15
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS (in thousands)
Governmental Activities
Fiscal
Year
General
Obligation
Bonds
Lease
Revenue
Bonds
Pension
Obligation
Bonds2
Certificates
of
Participation
Financed
Purchase
Notes & Loans
Payable
Lease
Liability
SBITA
Liability
2016 $ 12,567 $ 39,398 $ 101,000 $ 181,429 $ 12,006 $ 43,482 $ - $ - 2017 11,513 37,854 92,592 156,516 17,193 41,325 - -
2018 10,388 36,246 60,883 150,800 25,647 1,746 - -
2019 9,179 80,416 50,486 99,178 21,422 1,329 - -
2020 7,874 75,964 364,633 94,802 18,207 899 - -
2021 6,478 72,471 352,824 90,215 14,922 457 - -
2022 4,987 68,855 338,264 85,477 22,294 - 1,060 -
2023 3,411 65,093 321,413 80,584 19,230 - 563 1,930
2024 1,756 61,163 313,830 75,067 16,152 - 586 1,119
2025 - 101,590 304,027 69,788 12,635 - 1,440 5,102
Business-Type Activities
Fiscal
Year
Revenue
Bonds
Arbitrage
Payable
Notes &
Loans
Payable
Financed
Purchase
Pension
Obligation
Bonds2
Certificates
of
Participation3
Lease
Revenue
Bonds4
Contracts
Payable5
Lease
Liability
SBITA
Liability
Total
Primary
Government
Percentage of
Personal
Income1
Debt Per
Capita1
2016 $ 1,208,851 $ - $ 37,793 $ 4,694 $ - $ - $ - $ 938 $ - $ - $ 2,851,009 23.00% 5.00 2017 1,180,345 - 35,255 6,209 - - - 938 - - 1,579,740 22.00% 4.00 2018 1,139,864 - 78,583 6,821 18,324 - - 938 - - 1,530,240 20.00% 4.00 2019 1,241,743 - 73,673 5,192 14,775 29,692 7,867 937 - - 1,635,889 21.00% 4.00 2020 1,212,914 - 69,519 3,633 119,625 28,483 7,473 1,019 - - 2,005,045 24.00% 6.00 2021 1,176,605 - 64,678 2,354 116,227 27,213 7,059 1,067 - - 1,932,570 22.00% 5.00 2022 1,139,100 - 59,948 2,176 110,718 25,912 6,625 1,067 787 - 1,867,270 20.00% 5.00 2023 1,163,676 - 55,070 1,476 103,705 24,582 6,168 933 563 86 1,848,483 20.00% 5.00 2024 1,268,727 673 36,525 1,134 95,253 23,191 5,688 931 443 241 1,902,479 19.00% 6.00 2025 1,222,900 3,862 32,957 5,298 85,888 21,770 5,271 931 810 118 1,874,387 17.58% 5.85 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. 5 In 2025, Contracts Payable was added to Business-Type Activities and previous years restated.
Source: City of Riverside Notes to Financial Statements and Statistical Table 20. 129
CITY OF RIVERSIDE
TABLE 16
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS (in thousands, except per capita amount) Fiscal Year
General
Obligation
Bonds
Pension
Bonds
Certificates
of
Participation
Total Obligated
Debt
Outstanding
Less: Amounts
Available in Debt
Service Fund
Net Obligated
Debt Outstanding
Percent of
Assessed
Value1
Per
Capita2
2016 $ 12,567 $ 101,000 $ 181,429 $ 294,996 $ (27,997) $ 266,999 %1.44 822 2017 11,513 92,592 156,516 260,621 (8,339) 252,282 %1.31 772 2018 10,388 60,883 150,800 222,071 (13,546) 208,525 %1.05 640 2019 9,179 50,486 99,178 158,843 (9,051) 149,792 %0.72 457 2020 7,874 364,633 94,802 467,309 (11,210) 456,099 %2.04 1,390 2021 6,478 352,824 90,215 449,517 (11,292) 438,225 %1.88 1,351 2022 4,987 338,264 85,477 428,728 (11,679) 417,049 %1.72 1,312 2023 3,411 321,413 80,584 405,408 (16,440) 388,968 %1.51 1,240 2024 1,756 313,830 75,067 390,653 (13,001) 377,652 %1.39 1,192 2025 - 304,027 69,788 373,815 (13,001) 360,814 %1.27 1,126 Notes:
General bonded debt is debt payable with governmental fund and enterprise fund resources. 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2 These ratios are calculated using population data for the prior calendar year.
Source: City of Riverside Notes to Financial Statements, Statistical Table 8, Statistical Table 15, and Reserve Cash Reconciliation maintained by City Finance Department. 130
CITY OF RIVERSIDE
TABLE 17
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2025 Page 1 of 2
2024-25 Assessed Valuation: $ 43,274,624,689
Less Dissolved Redevelopment Agency Incremental Valuation: 14,779,086,687 Adjusted Assessed Valuation: $ 28,495,538,002
Total Debt % Applicable
City's Share
of Debt1
Overlapping debt repaid with property taxes
Metropolitan Water District $ 17,155,000 %1.070 $ 183,559 Riverside City Community College District 478,850,423 26.696 127,833,909 Alvord Unified School District 245,002,197 72.682 178,072,497 Riverside Unified School District 348,350,000 83.207 289,851,585 Corona-Norco Unified School District 465,087,236 0.001 4,651 Jurupa Unified School District 198,979,150 0.001 1,990
Moreno Valley Unified School District 428,227,607 9.964 42,668,599 Alvord Unified School District Community Facilities District No.2006-1 5,305,000 82.333 4,367,766 Riverside Unified School District Community Facilities Districts 60,640,000 87.928-100 60,550,667 City of Riverside Community Facilities Districts 27,070,000 100.000 27,070,000 City of Riverside 1915 Act Bonds 11,365,000 100.000 11,055,000 Total overlapping debt repaid with property taxes $ 741,660,223 (Continued)
131
CITY OF RIVERSIDE
TABLE 17
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30 2025 Page 2 of 2
Other overlapping debt2
Riverside County General Fund Obligations $ 1,134,209,783 %10.263 $ 116,403,950 Riverside County Pension Obligations 603,055,000 10.263 61,891,535 Riverside City Community College District Certificates of Participation 23,830,000 26.696 6,361,657 Corona-Norco Unified School District General Fund Obligations 14,750,989 0.001 148 Jurupa Unified School District Certificates of Participation 43,880,748 0.001 439 Moreno Valley Unified School District Certificates of Participation 2,560,000 9.964 255,078 Riverside Unified School District General Fund Obligations 8,482,000 83.207 7,057,618 Western Municipal Water District General Fund Obligations 1,377,594 31.932 439,893 Total other overlapping debt 192,410,318
Overlapping tax increment debt 143,738,123
Total overlapping debt 1,077,808,664
City direct debt 494,582,000 (3)
Combined total direct and overlapping debt $ 1,572,390,664 (1) Debt balances are as of June 30, 2025.
(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 2024-25 Assessed Valuation:
Total debt repaid with property taxes…………………….……..... %1.71 City direct debt $494,582,000 .......……...…………..………...…. %1.14 Combined total direct and overlapping debt……………............. %3.63 Ratios to dissolved redevelopment incremental valuation $(14,779,086,687):
Total overlapping tax increment debt…………………………….. %0.97 Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.
Source: California Municipal Statistics, Inc., Riverside County Auditor-Controller, City Finance Department, and Statistical Table 8. 132
CITY OF RIVERSIDE
TABLE 18
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS (in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assessed valuation $ 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 $ 28,495,538 Conversion percentage %25 %25 %25 %25 %25 %25 %25 %25 %25 %25 Adjusted assessed valuation 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 7,123,885 Debt limit percentage %15 %15 %15 %15 %15 %15 %15 %15 %15 %15 Debt limit 693,844 720,357 747,624 779,945 839,116 873,171 907,813 967,896 1,022,298 1,068,583 Total net debt applicable to limit 12,567 11,513 10,388 9,179 7,874 6,478 4,987 3,411 1,756 - Legal debt margin $ 681,277 $ 708,844 $ 737,236 $ 770,766 $ 831,242 $ 866,693 $ 902,826 $ 964,485 $ 1,020,542 $ 1,068,583 Total net debt applicable to the limit
as a percentage of debt limit %1.8 %1.6 %1.4 %1.2 %0.9 %0.7 %0.5 %0.4 %(0.2) %- The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State.
Source: City of Riverside, Statistical Table 8, Statistical Table 15, and Notes to Financial Statements. 133
CITY OF RIVERSIDE
TABLE 19
PLEDGED-REVENUE COVERAGE
BUSINESS-TYPE ACTIVITY DEBT
LAST TEN FISCAL YEARS (in thousands)
Electric Revenue Bonds Water Revenue Bonds
Fiscal Pledged
Less:
Operating
Net
Available Debt Service Pledged
Less:
Operating
Net
Available Debt Service
Year Revenue1 Expenses1 Revenue Principle Interest Coverage Revenue1 Expenses1 Revenue Principal Interest Coverage 2016 $ 371,029 $ 249,607 * $ 121,422 $ 16,460 $ 25,780 2.87 $ 60,047 $ 35,608 * $ 24,439 $ 5,533 $ 8,063 1.80 2017 368,956 251,998 * 116,958 14,032 25,553 2.95 65,689 37,956 * 27,733 5,486 8,124 2.04 2018 368,116 257,785 * 110,331 15,675 25,045 2.71 71,054 40,737 * 30,317 6,098 8,049 2.14 2019 374,510 279,394 * 95,116 16,449 26,017 2.24 69,965 44,547 * 25,418 6,362 8,780 1.68 2020 378,391 277,064 * 101,327 11,641 26,992 2.62 74,343 45,825 * 28,518 6,139 9,671 1.80 2021 373,663 284,293 * 89,370 17,364 27,559 1.99 83,510 45,896 * 37,614 7,007 9,685 2.25 2022 391,860 298,221 * 93,639 19,339 26,689 2.03 85,163 47,177 * 37,986 7,715 9,353 2.23 2023 425,941 332,901 * 93,040 20,985 25,415 2.01 85,058 48,696 * 36,362 8,278 10,570 1.93 2024 443,500 326,639 116,861 22,627 28,067 2.31 90,803 49,340 41,463 9,590 11,324 1.98 2025 497,144 321,362 175,782 23,672 31,325 3.20 108,346 54,901 53,445 10,275 11,019 2.51 Sewer Revenue Bonds
Fiscal Pledged
Less:
Operating
Net
Available Debt Service
Year Revenue1 Expenses1 Revenue Principal Interest Coverage 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
2025 78,597 43,225 35,372 12,050 14,551 1.33
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements The City of Riverside does not have any pledged revenue related to Govermental Activities. 1 Amounts have been calculated in accordance with the provisions set forth in the debt covenants. Total operating expenses exclusive of depreciation. Pledged revenue includes applicable cash set aside in a rate stabilization account in accordance with applicable bond covenants. * Excludes non-cash pension expense.
134
CITY OF RIVERSIDE
TABLE 20
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Calendar
Year Population1
Personal
Income2
(in thousands)
Per
Capita
Personal
Income2
Unemployment
Rate3
2015 324,696 6,953,323 21,415 6.4
2016 326,792 7,139,080 21,846 5.8
2017 325,860 7,349,024 22,553 5.1
2018 328,101 7,674,374 23,390 3.8
2019 328,155 8,102,150 24,690 3.6
2020 324,302 8,496,064 26,198 9.0
2021 317,847 8,891,501 27,974 6.7
2022 313,676 9,058,788 28,879 3.8
2023 316,690 9,998,230 31,571 4.4
2024 320,337 10,662,377 33,284 4.7
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. 135
CITY OF RIVERSIDE
TABLE 21
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2025 2016
Employer Employees Rank
Percentage
of Total City
Employment Employees Rank
Percentage
of Total City
Employment
County of Riverside 25,345 1 15.0% 11,956 1 8.0%
Riverside Unified School District 6,562 2 3.9% 4,000 4 2.7 Kaiser Permanente Riverside Medical Center 5,817 3 3.4% 4,500 3 3.0% University of California, Riverside 5,137 4 3.0% 8,306 2 5.5% City of Riverside 2,700 5 1.6% 2,507 5 1.7
Alvord Unified School District 1,898 6 1.1% 1,445 8 1.0% Riverside City College 1,350 7 0.8% 1,061 10 0.7%
Collins Aerospace 1,000 8 0.6% - - -%
J Ginger Masonry 1,000 9 0.6% - - -%
Riverside Medical Clinic Inc 600 10 0.4% %
Riverside Community Hospital 2,400 6 1.6%
Riverside County Office of Education 1,765 7 1.2%
Parkview Community Hospital 1,350 9 0.9%
Total 51,409 30.4% 39,290 26.3%
Source: City of Riverside, Economic Development Department 136
CITY OF RIVERSIDE
TABLE 22
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General government 394.24 417.55 430.05 453.80 458.30 460.30 462.05 485.05 518.30 534.75 Public safety (sworn and non-sworn personnel)
Police 554.75 512.00 543.00 557.00 571.00 585.00 604.00 626.00 626.00 628.25 Fire 251.00 239.00 242.00 245.00 248.00 251.00 250.00 252.00 252.00 262.00 Highways and streets 308.00 272.00 273.00 271.00 271.00 270.00 271.00 273.00 278.00 289.25 Sanitation 59.00 59.00 59.00 59.00 59.00 62.00 62.00 62.00 62.00 67.00 Culture and recreation 286.75 276.23 276.98 276.07 284.07 283.60 287.86 284.60 286.85 307.99 Airport 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 8.00 Water 181.15 174.15 158.65 158.65 158.65 164.50 164.50 164.00 165.00 165.00 Electric 466.50 471.75 489.25 475.25 475.25 466.25 468.50 473.00 473.00 473.00 Total 2,507.39 2,428.68 2,478.93 2,502.77 2,532.27 2,549.65 2,576.91 2,626.65 2,668.15 2,735.24 Source: City of Riverside, Finance Department, FY 2024/25 Budget Master Personnel Detail 137
CITY OF RIVERSIDE
TABLE 23
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police:
Arrests 9,242 8,358 8,423 8,295 7,738 8,089 7,667 8,095 8,052 8,492 Fire:
Number of calls answered 35,905 36,150 38,501 37,739 37,999 31,918 38,801 45,073 43,329 44,670 Inspections 6,636 6,482 6,519 5,584 7,987 7,175 9,244 6,662 6,851 5,169 Public Works:
Street resurfacing (miles) 39.01 27.09 17.37 16.50 18.80 7.30 17.35 14.60 11.80 29.60 Parks and Recreation:
Number of recreation classes 53,907 53,308 54,025 54,069 34,366 525 8561 28,8881 29,0562 32,358 Number of facility rentals 47,772 48,097 46,904 66,846 45,741 324 3741 1,3911 8302 2,942 Water:
Number of accounts 65,094 65,428 65,640 65,803 66,031 66,198 66,372 66,441 66,570 66,772 Annual consumption (ccf) 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 25,765,127 Electric:
Number of accounts 108,776 109,274 109,619 110,480 111,161 111,711 112,328 112,751 113,436 114,180 Annual consumption (millions of
kwh) 2,170 2,197 2,195 2,150 2,115 2,122 2,145 2,175 2,065 2,157 Sewer:
New connections 17,669 17,654 17,551 17,540 17,593 17,602 17,588 17,575 17,580 17,588 Average daily sewage treatment
(millions of gallons) 26.35 27.19 26.16 26.86 25.22 25.30 26.01 26.98 26.95 27.15 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
138
CITY OF RIVERSIDE
TABLE 24
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function:
Public Safety:
Police:
Stations 3 3 3 3 3 3 4 4 4 5
Substations 4 4 5 4 4 4 1 1 1 -
Helicopters 3 3 3 2 2 2 2 2 2 2
Airplane 0 0 0 1 1 1 1 1 - -
Fire:
Stations 14 14 14 14 14 14 14 14 14 14
Active apparatus 31 33 32 33 55 32 32 38 32 32
Reserve apparatus 8 9 9 9 13 9 10 13 11 11
Training facilities 1 1 1 1 1 1 1 1 1 1
Highways and streets:
Streets (miles) 872.19 872.22 872.01 872.24 872.10 872.35 891.28 893.28 890.93 890.88 Streetlights 299,986 30,427 30,467 30,479 30,445 30,489 30,489 30,745 31,112 30,116 Signalized intersections 386 381 382 384 392 397 408 408 409 416 Culture and Recreation:
Parks acreage 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 3,027.6 Community centers 11 11 11 11 11 11 12 14 14 15
Playgrounds 44 46 46 46 46 46 43 43 43 43
Swimming pools 7 7 7 7 7 7 7 7 7 7
Softball and baseball
diamonds 44 44 44 44 44 44 44 44 44 51
Library branches 8 8 8 8 8 8 8 8 8 7
Museum exhibit-fixed 4 5 5 - 1 1 1 - 1 - 1 1 1 1
Museum exhibit-special 5 6 6 1 1 4 1 3 1 1 1 5 4 6
Water:
Fire hydrants 7,758 7,908 7,952 8,173 8,192 9,304 8,012 8,023 8,052 7,913 Sewer:
Sanitary sewers (miles) 820 829 827 820 820 820 853 853 853 853 Electric:
Miles of overhead distribution
system 513.0 513.0 513.0 514.0 514.0 513.0 513.0 513.0 512.0 510.0 Miles of underground system 815.0 817.0 826.0 831.0 834.0 838.0 838.0 842.0 846.0 873.0 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
139