CITY OF SIMI VALLEY
MEMORANDUM
April 25, 2022
TO: City Council
Board of Directors, Ventura County Waterworks District No. 8 Board of Directors, Simi Valley Industrial Development Authority Board of Directors, Simi Valley Public Facilities Financing Authority Board of Directors, Successor Agency to the Simi Valley Community Development Agency
Board of Trustees, Simi Valley Library
FROM: Department of Administrative Services
SUBJECT: ACCEPTANCE OF ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR FISCAL YEAR 2020-21
STAFF RECOMMENDATION
It is recommended that the City Council/Boards of Directors/Board of Trustees accept the Annual Comprehensive Financial Report for Fiscal Year 2020- 21 (Exhibit 1), and rat ify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c).
BACKGROUND AND OVERVIEW
The Annual Comprehensive Financi al Report ( ACFR) for Fiscal Year 2020- 21 (Exhibit 1) has been prepared in accordance with generally accepted accounting principles to present the results of operations and the financial condition of the City, District, an d Authorities as of June 30, 2021, and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2020-21 have received an “unmodified” opinion from an independent auditor, indicating no areas of material misstatement.
The draft ACFR was distributed to the City Council/Boards of Directors/Board of Trustees on April 20, 2022, for advance review , and it was also placed on the City’s website on April 4, 2022 for public review. A copy of the draft ACFR was also available for review by the public in the City Clerk’s Office and the Simi Valley Public Library.
The draft Fiscal Year 2020-21 ACFR includes the following sections:
• Introductory Section
• Financial Section
• Statistical Section
AGENDA ITEM NO.
Consent (3)
2 Annually, the City submits a copy of the ACFR to the Government Finance Officers Association of the United States and Canada (GFOA) for its award program. In recognition of its financial reporting excellence, the GFOA has awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Simi Valley for its ACFR annually since Fiscal Year 1979- 80. This recognition represents the highest obtainable professional governmental accounting award. The Certificate is also very advantageous to the City’s reputation with bond rating ag encies and the financial markets. The draft ACFR for Fiscal Year 2020-21 has been submitted to the GFOA, and staff is confident of receiving the Certificate once again, for the 42nd year in a row.
FINDINGS AND ALTERNATIVES
A summary of the information contained in each of the three sections of the draft ACFR is presented below:
Introductory Section
This section includes a transmittal letter, which provides a profile of the government, information useful in assessing the gov ernment’s economic condition, awards and acknowledgements, a list of City officials, an organization chart, and the GFOA financial reporting award for Fiscal Year 2019-20.
Financial Section
Financial data for all funds and special districts through which the City provides services have been included in this section, based on criteria adopted by the Governmental Accounting Standards Board. Under these criteria, the following agencies have been included in this report:
• City of Simi Valley
• Ventura County Waterworks District No. 8
• Simi Valley Industrial Development Authority
• Simi Valley Public Facilities Financing Authority
• Successor Agency to the Simi Valley Community Development Agency • Simi Valley Library
The Financial Section is further broken down into the following subcategories:
• Management’s Discussion and Analysis
• Basic Financial Statements
- Government-wide Financial Statements consolidate the financial information for all of the City’s operations on the full accrual basis of accounting. These statements have a “net position” focus and exclude interfund transactions.
- Fund Financial Statements – major funds are presented individually, and non- major funds are presented in aggregate, including budget -to-actual comparisons for major funds that have legally adopted annual budgets, Proprietary Fund Statements, and a Statement of Fiduciary Net Position.
3 - Reconciliations of the individual fund statements to the government -wide statements.
• Notes to the Basic Financial Statements
• Required Supplementary Information – includes progress made in funding retirement plans
• Supplementary Information – provides individual presentation of non-major funds, budget-to-actual comparisons for funds that have legally adopted annual budgets, Combining Statements of Internal Service Funds, Combining Statement of Fiduciary Net Position and Combining Statement of Changes in Net Position – Fiduciary Funds
Statistical Section
The Statistical Section contains general statistical information about the community and City organization including:
• Net Position by Component; and Changes in Net Position • Fund B alances of Governmental Funds; and Changes in Fund Balances of Governmental Funds
• Assessed Value of Taxable Property
• Direct and Overlapping Governments Property Tax Rates • Principal Property Tax Payers
• Property Tax Levies and Collections
• Ratios of Outstanding Debt by Type; Computation of Direct and Overlapping Debt; and Legal Debt Margin
• Demographic and Economic Statistics; and Principal Employers • City Government Employees by Function; Operating Indicators by Function; and Capital Assets Statistics by Function
As part of the annual financial reporting process, the City utilizes the services of an independent public accounting firm, which performs an audit of the City’s financial records. This audit is conducted to ensure that the City’s financial records fairly present, in all material respects, the financial position of the City and the results of its operations for the fiscal year. Another important purpose of the audit is to assess the City’s accounting principles and internal control structure relative to its financ ial statements.
Fiscal Year 2020-21 represents the eighth year of an eight-year audit engagement with the firm of Vasquez and Company, LLP. The City received an “unmodified” audit opinion, indicating that there were no areas of material misstatement, and that the City’s audited financial statements fairly present the operations of the City.
In 2007, the City implemented the provisions of Government Code Section 37208(c), which allows the City Council/Boards of Director s/Board of Trustees ratification and approval of the audited financial statements presented in the draft ACFR to serve as annual ratification of the warrants and checks issued for budgeted payrolls and demands submitted during the period covered by the ACFR.
4 The following alternatives are available to the City Council/Boards of Directors/Board of Trustees:
1. A
ccept the draft Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2020-21 (Exhibit 1) as submitted, and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c);
2. A
ccept the draft ACFR and request additional clarification from the auditor in certain areas of the report;
3. P
rovide staff with further direction.
S
taff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I m
ove to accept the Fiscal Year 2020- 21 Annual Comprehensive Financial Report (ACFR) and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c).
SUMMARY
T
he draft Annual Comprehensive Financial Report ( ACFR) for Fiscal Year 2020- 21 (Exhibit 1) has been prepared in accordance with generally accepted accounting principles to present the results of operations and the financial condition of the City, District, Authorities, and Trustees as of June 30, 2021, and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2020-21 have received an “unmodified” opinion from an independent auditor, indicating no areas of material misstatement. ________________________________
_____
Joseph D. Toney, Deputy City Treasurer
Administrative Services Director
P
repared by: Marvin Lopez, Deputy Administrative Services Director, Fiscal Services INDEX
E
xhibit 1 - Draft Annual Comprehensive Financial Report (ACFR) for FY 2020-21
STATE OF CALIFORNIA
CITY OF SIMI VALLEY
ANNUAL COMPREHENSIVE
FINANCIAL REPORT 2020-21
FISCAL YEAR ENDED JUNE 30, 2021
5 Keith L. Mashburn, Mayor • Dee Dee Cavanaugh, Mayor Pro Tem • Mike Judge, Council Member • Ruth Luevanos, Council Member • Elaine P. Litster, Council Member
STATE OF CALIFORNIA
CITY OF SIMI VALLEY
ANNUAL COMPREHENSIVE
FINANCIAL REPORT 2020-21
FISCAL YEAR ENDED JUNE 30, 2021
6 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
INTRODUCTORY SECTION PAGE
Transmittal Letter ............................................................................................. i Officials of the City of Simi Valley .................................................................... x Organization of the City of Simi Valley ............................................................. xi GFOA Certificate of Achievement for Excellence in Financial Reporting ......... xii
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................... 1 Management’s Discussion and Analysis (UNAUDITED) .................................. 5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ........................................................................ 21 Statement of Activities .............................................................................. 22
Fund Financial Statements:
Balance Sheet – Governmental Funds .................................................... 24 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position – Governmental
Activities ................................................................................................ 26 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................. 27 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................... 29 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ....................................................... 30 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – SHA to Community Development Agency Housing Administration ........................................................................................ 31 Statement of Net Position – Proprietary Funds ........................................ 32 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds .................................................................................. 33 Statement of Cash Flows – Proprietary Funds ......................................... 34 Statement of Net Position – Fiduciary Funds ........................................... 35 Statement of Changes in Net Position – Fiduciary Funds ........................ 36
Notes to the Basic Financial Statements
Notes ......................................................................................................... 37 7 Table of Contents (continued)
PAGE
Required Supplementary Information (UNAUDITED)
Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................................................. 98 Schedule of Plan Contributions – Miscellaneous Plan ................................ 99 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan .............................................................................................. 100 Schedule of Plan Contributions – Safety Plan ............................................ 101 Schedule of Changes in Net OPEB Liability and Related Ratios ............... 102 Schedule of OPEB Plan Contributions ........................................................ 103
Supplementary Information
Nonmajor Governmental Funds
Combining Balance Sheet ....................................................................... 107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................................................... 112
Schedules – Budget and Actual – Individual Funds
CalHOME Grant Fund ............................................................................. 117 HOME Grant Fund .................................................................................. 118 Public, Education & Government Fees Fund .......................................... 119 Gasoline Tax Fund .................................................................................. 1 20 Road Maintenance & Rehabilitation Account Fund ................................. 121 Transportation Funds .............................................................................. 122 Library Services Fund .............................................................................. 123 Development Related Fees ..................................................................... 124 Police Grants Fund ................................................................................. 125 Community Development Block Grant Fund ........................................... 126 Landscape Maintenance District No. 1 .................................................... 127
Internal Service and Fiduciary Funds
Combining Statement of Net Position – Internal Service Funds ............... 128 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ......................................................... 129 Combining Statement of Cash Flows – Internal Service Funds ............... 1 30 Combining Schedule of Net Position – Private Purpose Trust Fund ........ 131 Combining Schedule of Changes in Net Position – Private Purpose Trust Fund ............................................................................................ 133 Combining Statement of Net Position – Custodial Funds ........................ 135 Combining Statement of Changes in Assets and Liabilities – Custodial Funds ..................................................................................... 136 8 Table of Contents (continued)
PAGE
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component – Last Ten Fiscal Years ............................... 138 Changes in Net Position – Last Ten Fiscal Years ..................................... 1 40 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............. 144 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................................................... 146
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .......................................................................... 148 Direct and Overlapping Governments – Property Tax Rates – Last Ten Fiscal Years .......................................................................... 1 50 Principal Property Taxpayers – Current Year and Nine Years Ago .......... 152 Property Tax Levies and Collections - Last Ten Fiscal Years ................... 153
Debt Capacity
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................. 154 Computation of Direct and Overlapping Debt ............................................ 155 Legal Debt Margin - Last Ten Fiscal Years .............................................. 156
Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ............... 158 Principal Employers – Current and Nine Years Ago ................................. 159
Operating Information
City Government Employees by Function - Last Ten Fiscal Years ........... 1 60 Operating Indicators by Function – Last Ten Fiscal Years ....................... 161 Capital Assets Statistics by Function - Last Ten Fiscal Years .................. 162 9 10
INTRODUCTORY SECTION
INTRODUCTORY SECTION
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March 31, 2022
To the Honorable Mayor, Members of the City Council, and City Manager of the City of Simi Valley, California
State law requires that all general -purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the City of Simi Valley for the fiscal year ended June 30, 2021.
This report consists of management’s representations concerning the finances of the City.
Accordingly, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to protect the government’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 GAAP. The cost of internal controls should not outweigh their benefits; therefore, the City’s comprehensive framework of internal controls is 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 aspects.
Vasquez & Company LLP, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with GAAP. The independent Auditor’s report is presented as the first component of the financial section of this report.
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The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.
Profile of the City of Simi Valley
The City, incorporated in 1969, has a population of 129,985 and is the third largest of Ventura County’s ten cities. It is located on the County’s southeastern border, nestled between the Santa Susana Mountains and the Simi Hills. The City, which covers a land area of 42.4 square miles, has a mean elevation of 765 feet.
The City operates under the Council -Manager form of government. The City’s four Council Members are elected by District to staggered four -year terms. This election system divides the City into four geographic sections. Voters in each District select one Council representative who also lives in that District. The by District election process began with the November 2020 election for District 1 and 3; Districts 2 and 4 will follow in 2022. Prior to the November 2020 election, Council Members were elected at large to staggered four-year terms. The City’s Mayor is elected at -large every two years. The Mayor presides over Council meetings and has one vote. Council Members also serve as Board Members of the Ventura County Waterworks District No. 8, Directors of the Simi Valley Public Facilities Financing Authority, and as Board Trustees for the Simi Valley Public Library.
The City Council appoints both the City Manager and the City Attorney. The City Manager heads the executive branch of the government, implements City Council directives and policies, and manages the administration and operational functions through the various department heads. The City Manager is responsible for the appointment of department heads and the City Clerk, and serves as the City Treasurer.
Four operating departments report to the City Manager: Police, Public Works, Administrative Services, and Environmental Services. The S imi Valley Public Library, Cultural Arts Center and Senior Center all operate under the umbrella of City Administration. The City has its own sanitation division that collects and treats wastewater. Certain potable and reclaimed water services are provided through the legally separate Ventura County Waterworks District No. 8, which functions, in essence,
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as an agency of the City and therefore has been included as an integral part of the City’s financial statements. The City also provides transportation services via the Simi Valley Transit system. The County of Ventura provides fire, paramedic, and animal regulation services. The Rancho Simi Recreation and Park District, an independent special district, provides leisure service facilities and activities.
The annual budget serves as the foundation for the City’s financial planning and control.
The budget also contains detailed goals and objectives, a working financial plan, and financial projections for the departments and agencies that comprise the Cit y’s governmental structure.
The City reports on a fiscal year basis from July 1 to June 30. Departments and agencies submit current draft proposed budgets, requests for budget increases (Policy Items), requests for replacement of equipment items (Capital Asset Requests), and possible budget reductions (Reduction Proposal) to the Budget Officer in February. The City Manager’s Office conducts a series of budget review meetings with departments and agencies in late March. The City Manager then provides a Proposed Budget and Draft Five-Year Capital Improvement Program to the City Council for review in mid- May. A citizen participation meeting is held for public review and comment on the Proposed Budget.
The City Council conducts one or more budget hearings during the month of June, modifies the Proposed Budget and Draft Five- Year Capital Improvement Program as appropriate, and adopts the Annual Budget and Five-Year Capital Improvement Program no later than June 30. The City Council is committed to a budget process that is open and clear to the public and which provides for public input.
Expenditures are budgeted at the line-item level according to fund and operational area.
Overall budgetary control, however, is exercised at the fund level (legal level of budgetary control, that is, the level at which management cannot overspend the budget without the approval of the governing body), except for the City’s General Fund, where control is exercised at the department level. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager is also authorized to make administrative amendments to the budget within a fund and between departments within that fund.
Interim financial reports can be generated on demand by operating departments. In addition, financial reviews are to be prepared and submitted to the City Council at the end of the second quarter (mid-year) of each fiscal year and are available for public review in advance of their presentation at regularly scheduled City Council meetings. Interim financial reports can be made available to the general public upon request. Budget -to- actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund and major special revenue funds, this comparison is presented in the Basic Financial Statements section of this report. For other governmental funds with appropriated annual budgets, this comparison is presented in the Supplementary Information section.
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Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.
Local Economy. Fiscal Year 2020-21 locally generated revenues from property, sales, franchise, business, and other taxes increased by $2.6 million or 3.9%, over the prior fiscal year, primarily driven by an increase in sales tax.
As with the rest of the world, the City was greatly impacted by the pandemic. Fortunately, the City does not depend on elastic revenue sources and is mostly funded through property and sales taxes. These revenue sources, coupled with the conservative budget practices of the City Council has allowed the City to remain in a strong and st able condition.
The local unemployment rate as of June 30, 2021 was 6.1%, which is a 6.4% decrease from the 12.5% unemployment rate reported in the previous fiscal year. The year over year decrease directly relates to the COVID -19 pandemic recovery, which caused the unusual spike in unemployment for the previous fiscal year. The City’s commercial and industrial base continues to be diverse. Major industries with headquarters or divisions located within the City’s boundaries, or in close proximity, include retail sales, real estate lending, health care, computer hardware, and light manufacturing.
Residential development activity in the City continues, reflective of the Governor and State Legislature’s state- wide housing production mandates. The n umber of units produced are expected to decline from fiscal year 2020- 21. Some contributing factors toward slowing of housing production would include prolonged COVID-19 pandemic, and unprecedented intensity and range of material cost increases, supply -chain disruptions, and worker shortages. Nevertheless, the City continues to have modest additions to its property tax ro ll through the ongoing appreciation t o the residential market values and increases in sales tax as brick-and-mortar retailers rebound.
The production of housing units continues with single- family homes in various subdivisions including the Enclave, Pinehurst, Fountain Wood, the Westerly, and the Woodlands. Additionally, production of m ulti-family apartments and condominiums throughout various under -utilized infill sites (along Patricia Avenu e, Heywood Street, Sycamore Drive, and Los Angeles Avenue). Furthermore, growing demand of building permits for Accessory Dwelling Units peppered throughout the City contributes to the variety the Cit y’s housing stock. As the City is approaching General Plan buildout, undeveloped accessible land on the valley floor is rare. Concurrently, the community’s wish to preserve and protect Simi Valley’s hillsides though the Hillside Performance Standards is guiding the continued development of underutilized and nonconforming properties found on the valley floor. As a result, new and future development proposals will likely be inward, upward, and with intensified density.
15 v
Long-term Financial Planning. The City’s population has remained virtually unchanged, reflecting a nominal increase over the prior reporting year. Turnover in the real estate market is continuing, thus further additions to the City’s property tax roll are anticipated over time. In the current year, however, the increasing property tax base was offset by property tax payers who were financially affected by the pandemic. The net impact of these two factors resulted in a decrease of property tax revenue of around $1.0 million, or 2.6%.
The State’s recent response to the housing crisis mandates the City, and all local municipalities, to zone and stimulate housing production at a level that could reach the City’s General Plan build- out. As a result, development revenues could continue to increase through housing production in the coming years. This is beyond the projects that are currently under construction (The Westerly with 211 condominium units; Pinehurst with 24 single- family ownership units; Fountain Wood with 13 single- family ownership units; Vintage Sycamore Senior Apartments with 99 rental units; Sycamore Landing Apartments with 212 rental units ; Stow Villas Condominiums with 16 single - family ownership units; Vantage Apartments with 54 rental units), large mixed- use projects that are approved (Santa Susana Project with 280 apartment units and 4,750 square feet of commercial retail space; Tapo- Alamo Street Project with 278 apartment units and 8,000 square feet of commercial retail space; The Enclave Community with 164 townhomes and 6,000 square feet of commercial space), large projects pending entitlement actions (184- unit Lost Canyons Master Planned residential development; 138-unit senior condominiums and 25 custom single-family units at the Woodlands; 210- unit North Canyon Ranch residential development), and various in-fill developments that were approved and currently in plan check or under construction.
The City updates the Five-Year General Fund Financial Projection formally each year and informally throughout the year in an effort to identify and address these structural issues while continuing to maintain sufficient cash reserves and providing quality service to residents into the future without the need for significant additional local revenues.
Beginning with the FY 2020- 21 Budget and again with the FY 2021- 22 Budget , the projection shows that the City is structurally balanced. Furthermore, the Budget Policies were updated during FY 2019- 20 and now require the development of a structurally balanced budget.
The City also fared much better through the first year of the pandemic than anticipated.
As part of the FY 2020-21 Budget, the City adjusted revenues to be more conservative in expectation of significant impacts to the economy. The City Council established the COVID-19 Recovery Fund of $6 million to assist with operations should the economy cause revenues to fall below budget, which was ultimately not needed. The City made significant reductions to Sales Tax revenue projections due to retail and restaurant closers and reduced vehicle travel resulting in reduced fuel sales. However, consumers quickly shifted their shopping patterns and embraced on- line sales opportunities.
Restaurants adjusted to on- line orders through third- party companies and ramped up take-out food options. And although it was anticipated that vehicle sales would see large reductions, new vehicle sales were down only 10% and the sales of recreational vehicles 16 vi
grew by 40% during calendar year 2020. Collectively, these adjustments resulted in higher than projected sales tax revenue. The City is cautious however with the significant shift to on -line sales. In brick -and-mortar purchases, the City receives its full share of sales taxes paid on each transaction. On- line sales result in the City receiving only a share of sales taxes paid. This could result in lower sales tax revenue and City staff continue to monitor this phenomenon.
Furthermore, activity in the housing and the commercial real estate market has increased to levels not seen since before the Great Recession. Because there is a year lag in real estate transactions converting to increases in property tax revenue, the FY 2021- 22 Adopted Budget includes property tax growth assumption of 4%, but that could easily be eclipsed based on the rapid growth in home values, which does not appear to be abating anytime soon. Further, the City experienced an unusually large number of homeowners investing in their property during the year, which will also generate increased assessed value and resulting property tax revenue increases. While these revenue increases are welcomed, they are not assumed to be a long-term trend and a softening can occur.
The American Rescue Plan Act (ARPA) is estimated to provide the City with nearly $15.3 million, to be distributed over two fiscal years and must be spent by December 31, 2026.
These funds are to be used for COVID -19 response and to strengthen public services and will be spent in accordance with the regulations established by the U.S. Department of Treasury for their use.
In the near term, there are inflationary pressures in COVID -19 sensitive sectors as well as supply chain issues. Computer chips are in short supply, which has the potential to disrupt a lot of industries, including the automotive industry. Lumber, steel, and concrete shortages have already begun affecting the construction industry and could impact the finances of housing projects. Labor shortage issues are currently impacting many business sectors and employers are experiencing challenges rebuilding their workforce.
Furthermore, the Federal Reserve continues to print more money to stabilize the economy. It is unclear if these issues will ultimately have a negative impact on Simi Valley, but we will continue to monitor closely.
Also of significance, the City of Simi Valley weathered the COVID -19 storm fully supportive of City employees. Unlike many other communities across the United States, including some in Ventura County, City employees did not experience furloughs and no City employees were laid off, with the exception of the City’s Crossing Guard team who were brought back to work as soon as schools reopened.
The City’s forecast includes projections for most revenue types with a 1% - 3.3% per year inflationary growth. Projections on the expenditure side include 3% growth in personnel costs, a 2% growth in materials and supplies based on a combination of past experience and an inflationary growth, and inflationary growth for most other expenditure types.
These estimates result in small surpluses and structurally balanced budgets going forward.
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The Five-Year General Fund Financial Projection will continue to be utilized to provide a road map of the long- term actions necessary to address structural budget issues, even when the level of General Fund revenues is restored to previous levels.
Despite a challenging financial environment, the City continues to be fiscally conservative, maintaining a prudent set-aside amount in committed fund balance, which equals 17% of the General Fund expenditure budget. Overall, the City has a total ending General Fund Balance of $70.3 million. A very healthy and stable position.
The total debt of the City is currently $68.6 million, decreasing from $70.4 million in the prior year. The decrease is attributed to $1.8 million of debt service payments made throughout this fiscal year.
The total debt of the Successor Agency to the CDA, reported in the fiduciary funds, is $16.2 million, with debt service requirements of approximately $2.1 million per year (principal and interest), which are now paid through the County Redevelopment Property Tax Trust Fund (RPTTF).
Financial Policies. Actuals for the fiscal year resulted in a General Fund operating surplus of $17,921,056. The City intends to develop structurally balanced budgets that will put the organization a strong financial foundation. Programs and services will need to be analyzed and prioritized in order to maintain balance. The most significant fiscal issues include but are not limited to infrastructure, unfunded pension liability, deferred maintenance, and replacement of aging radio system. The City’s landscape assessment districts continue to be subsidized by the General Fund.
Major Initiatives
• Create a new website for the City that improves communication to residents and businesses.
• Evaluate the City’s fleet and develop a fleet utilization plan that addresses type and mode of power needed for the City’s future.
• Continuing with implementation of the next phase of the integrated Enterprise Resource System expecting the permitting module and the human resources, payroll module to be live in FY 2021-22.
• Increasing the investment in City infrastructure through ongoing and one -time revenue sources. This will be a long term plan to incrementally increase funding levels.
• Energy efficiency improvement projects at the Water Quality Control Plant. • Implement power efficiency and backup systems at all City facilities. • Implement transit regional mobile fare payment and smart card for riders to easily transfer from other neighboring cities for Ventura County Transportation Commission.
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Recent and Planned Changes
• Upgraded the audiovisual equipment in the Council Chamber for improved and increased public participation.
• Completed a sanitation rates study and adopted new rates. • Prepared a comprehensive analysis of signalized intersections vulnerable to Public Safety Power Shutdowns and other outages, reviewed alternatives for mitigation, and presented to and received approval from City Council for installation of battery backup systems.
• Retrofitted Metrolink parking lot lights with energy saving LED lights. • Conducted public meetings via online video platforms for more public engagement and transparency.
• Secured over $290,000 in State funding to provide homeless prevention and rapid rehousing support to Simi Valley residents through a local social service provider. • Implemented the use of digital signatures for City contracts during the COVID -19 pandemic, which resulted in significantly quicker signature turnaround times.
Gann Appropriations Limitation. Article XIIIB of the State of California Constitution sets limits on the amount of tax revenues that the City can appropriate within a given fiscal year. Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations, and other non- tax proceeds are not subject to the limit.
Exemptions are also made for voter -approved debt and debt that existed prior to January 1, 1979, and for the cost of compliance with Court or Federal government mandates. Fiscal Year 1978- 79 appropriations serve as the basis for this limit, with adjustments being made annually to reflect increases in population, the cost of living, and service responsibility transfers. The City’s appropriations limit for the fiscal year ended June 30, 2020, was $82,669,626. Actual tax revenues subject to this limit and received and appropriated during the fiscal year were well under this amount.
Awards and Acknowledgements. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2020. This was the 41st consecutive year (fiscal years ended 1980-2020) that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government agency must publish an easily readable and efficiently organized ACFR. This report must satisfy both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City believes that its current ACFR continues to meet the Certificate of Achievement Program’s requirements and is submitting it to the GFOA to determine its eligibility for another certificate.
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The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Fiscal Services and Administration Division. I would also like to express my appreciation to all members within various City departments who assisted with the preparation of this report, and to Vasquez and Company LLP, the City’s independent auditors, who also contributed to its preparation.
Additionally, I would like to thank the Mayor, City Council Members, and City Manager for their continued direction and support in planning and conducting the financial operations of the City in a progressive and responsible manner.
Respectfully submitted,
Joseph D. Toney
Administrative Services Director
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OFFICIALS OF THE CITY OF SIMI VALLEY
(as of June 30, 2021)
Members of the City Council
KEITH MASHBURN, Mayor
DEE DEE CAVANAUGH, Mayor Pro Tem
MIKE JUDGE, Council Member
RUTH LUEVANOS, Council Member
ELAINE LITSTER, Council Member
Administrative Staff
Brian P. Gabler .......................................................................................................... City Manager
David L. Caceres ........................................................................................... Interim City Attorney
Joseph D. Toney .......................................................................... Administrative Services Director
Stratis Perros ............................................................................... Environmental Services Director
Ron Fuchiwaki ............................................................................................. Public Works Director
David Livingstone ..................................................................................................... Chief of Police
21 xi
22 xii
23 24
FINANCIAL SECTION
FINANCIAL SECTION
25 Independent
Auditors’ Report
26 1
Independent Auditor’s Report
The Honorable Mayor and Members of the City Council
City of Simi Valley, California
Report on the Financial Statements
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 Simi Valley, California (the City), as of and for the year ended June 30, 2021 , and the related notes to the financial statements, which collectively comprise the City's basic financial statements, as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. 27 2
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Simi Valley, California, as of June 30, 2021 , and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and SHA to Community Development Agency Housing Administration Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 20 and the required supplementary information on pages 98 through 103 be presented to supplement the basic financial statements. Such information, 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 28 3
an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, 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.
Other 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 introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules, and statistical section as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic 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 statem ents or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 29 4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2022, on our consideration of the City of Simi Valley’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.
Glendale, California
March 31, 2022
30 Management’s Discussion and Analysis
(UNAUDITED)
Management’s Discussion
and Analysis (UNAUDITED)
31 32
5 City of Simi Valley
Management’s Discussion and Analysis
(UNAUDITED)
The management of the City of Simi Valley provides this narrative overview and analysis of the financial activities of the City of Simi Valley for the fiscal year ended June 30, 2021.
Please consider this information in conjunction with additional information that has been furnished in the letter of transmittal, which is located in the Introductory Section of this report.
Financial Highlights
• At the close of the fiscal year, the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $385,505,365.
• The City’s total net position increased by $25,504,845 . This amount was comprised of a $11,570,945 decrease in net investment in capital assets, a $19,035,337 increase in the restricted net position category, and a $18,040,453 decrease in unrestricted net deficit. As a result of the COVID pandemic and the related fiscal stimulus response from the U.S. Government, grant revenues increased this year by approximately $8.3 million. Meanwhile, City tax revenue sources, including property, sales, franchise, business, and other taxes held strong, resulting in a combined increase this year of approximately $2.6 million .
Charges for services also increased this year by approximately $12.7 million, primarily driven by water rate and usage increases. This had a large positive impact to the City, as revenue forecasts were conservatively made for this fiscal year, due to concerns about the pandemics potential negative impact to City revenues.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $122,283,140, an increase of $26,296,564 in comparison with the prior year. Of the ending fund balance, approximately 4.9% or $5,971,366 is Non -spendable in form; 3 4.0% or $41, 607,872 is Restricted for housing programs, public improvements, streets & transportation, landscape zones, debt service obligations, special programs, and law enforcement; 30.2% or $36,915,595 is Committed to street projects, retiree benefits, special programs, equipment replacement, economic recovery, and the prudent reserve; 31.3% or $38,297,703 is Assigned to capital projects; and (0.4%) or ($509,396) is Unassigned.
• At the end of the current fiscal year, the Prudent Reserve established by the City Council totaled $14,019,727. This portion of Committed fund balance for the General fund is equal to 17% of budgeted General fund expenditures, including transfers out.
• The City of Simi Valley’s total liabilities increased by approximately $5.4 million during the current fiscal year. This increase is mostly attributable to increases in the net pension liability ($5.5 million). See Notes section IV D for additional information regarding the City’s pension plans.
33 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
6 Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The basic financial statements include three components:
1) Government-wide financial statements,
2) Fund financial statements, and
3) Notes to the financial statements.
In addition, this report contains Required Supplementary Information, Supplementary Information, and Statistical Information.
The following diagram displays the interrelationships of this report.
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 City has presented information from prior years in this letter for comparative purposes.
The statement of net position presents information on all of the City’s assets and deferred outflows of resources, and liabilities and deferred inflows 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 standing 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).
FINANCIAL STATEMENTS
Government-Wide (Full Accrual)
Governmental Activities
Busi
ness-Type Activities
(No Internal Service or Fiduciary Funds)
Fund
Governmental (Modified Accrual)
Propr
ietary (Full Accrual)
Fiduciary (Full Accrual)
REQUIRED SUPPLEMENTARY INFORMATION
(Other Than MD&A)
Notes to the Financial Statements
MANAGEMENT'S DISCUSSION AND ANALYSIS
34 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
7 The government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City include general government, community services, planning, public ways and facilities, and public safety. The business -type activities of the City include a Sanitation fund, a Waterworks District, and a Transit fund.
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 funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially 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. Such information may be useful in evaluating a government’s near -term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government - wide financial statements. By doing so, readers may better understand the long- term impact of the government’s near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains over 70 individual governmental funds and sub- funds in its financial system and presents them grouped by related activities as 3 maj or and 23 non- major separate governmental funds for this report. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the three major funds: the General fund, the Successor Housing Agency to Community Development Agency Housing Administration fund, and the Streets and Roads fund. Data from the other 23 governmental funds is 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 in the Supplementary Information section of this report.
35 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
8 The City adopts annual appropriated budgets for the General fund, proprietary funds and all spe cial revenue funds. Project -length budgets are adopted for the capital project funds. A budgetary comparison statement has been provided for the General fund and the major special revenue funds to demonstrate compliance with the budget. Budgetary comparison schedules are also provided for the budgeted non- major special revenue funds in the Supplementary Information section.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in government-wide financial statements. The City uses enterprise funds to account for its sanitation, waterworks, and transit operations. 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 its liability insurance and workers’ compensation insurance operations, as well as the geographical information and permitting operations systems, and the financial information systems operations.
Because the internal service operations predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements except for any residual balances outstanding between the governmental activities and business -type activities which are reported in the government-wide financial statements as “internal balances.”
Proprietary funds provide the same type of information as the government-wide financial statements, but in greater detail. The proprietary fund financial statements provide separate information for the sanitation, waterworks, and transit operations, all of which are considered major funds of the City. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the Supplementary Information section of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City holds these funds in a custodial capacity.
Fiduciary funds are not reflected in the government -wide financial statements because the resources of these funds are not available to support the City’s programs. A combining statement of changes in net position of fiduciary funds is provided in the Supplementary Information section of this report.
The City accounts for and reports upon four fiduciary fund-types, Pension Trust fund, OPEB Trust fund, Private-Purpose Trust fund and the Custodial funds. Custodial funds account for assets held by the City in a trustee capacity, or as an agent for individuals, private organizations, or other governments. The Private Purpose Trust fund accounts for the assets, deferred outflow of resources, and liabilities of the former Com munity Development Agency and its allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. The Pension Trust fund accounts for the assets related to the City’s Public Agency Retirement Services (PARS) Retirement plan. The OPEB Trust fund accounts for the assets, contributions, administration expenses, and benefit payments related to the City’s other postemployment retiree benefits plan.
36 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
9 Notes to the 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.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and postemployment benefits to its employees.
The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the notes to the financial statements.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Simi Valley, assets and deferred outflows exceeded liabilities and deferred inflows by $385,505,365 at the close of the most recent fiscal year.
A significant portion of the City’s net position (87.5%) reflects its net investment in capital assets (land, buildings, infrastructure, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investments in capital assets are reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position ( 22.9%) represents resources that are subject to external restrictions on how they may be used. The remainder of the City’s net position represents unrestricted net position. Unrestricted net position is in a negative position (deficit) due to the implementation of Governmental Accounting Standards Board (GASB) Statement No. 68 in Fiscal Year 2014-15 and GASB Statement No. 75 in Fiscal Year 2017-18. As a result of GASB 68 and GASB 75, all local governments must now recognize on their statements of net position the full impact of the local government’s unfunded pension and other postemployment liabilities. These liabilities are long- term in nature and repayment is factored into future year funding contributions to be made to the trusts as determined by plan actuaries.
37 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
10 City of Simi Valley’s Net Position
June 30, 2021 and 2020
At the end of the current fiscal year, the City is able to report positive balances in two of the three categories of net position for the government as a whole, and for all categories of net position in its separate business -type activities. For the prior fiscal year, the City also reported positive balances in two of the three categories for the government as a whole. As noted above, the negative unrestricted balances associated with the current year are a result of accounting requirements for all local governments to now recognize their liability for unfunded pension and other postemployment benefits.
Prior to this change in accounting standards, local governments were not permitted to report the full impacts of this liability on their statements of net position.
2021 2020 2021 2020 2021 2020
Cu
rrent and other assets 174,784,131$ 147,632,452$ 112,668,213$ 110,169,280$ 287,452,344$ 257,801,732$ Capital assets 238,372,884 246,108,147 148,000,879 139,278,603 386,373,763 385,386,750 Total assets 413,157,015 393,740,599 260,669,092 249,447,883 673,826,107 643,188,482 Deferred outflows 32,484,992 36,365,497 5,191,915 5,037,406 37,676,907 41,402,903 Long-term liabilities
outstanding 221,480,111 218,434,835 68,255,364 67,355,955 289,735,475 285,79 0,790 Other liabilities 12,785,281 12,822,736 10,462,572 8,941,497 23,247,853 21,764,233 Total liabilities 234,265,392 231,257,571 78,717,936 76,297,452 312,983,328 307,555,023 Deferred inflows 12,452,861 16,474,000 561,460 561,843 13,014,321 17,035,843 Net position:
Net investment in capital
assets 203,826,589 209,763,040 133,644,109 139,278,603 337,470,698 349,04 1,643 Restricted 78,265,866 61,199,387 9,843,643 7,874,785 88,109,509 69,074,172 Unrestricted (83,168,701) (88,587,902) 43,093,859 30,472,607 (40,074,842) (58,115,295) Total net position $198,923,754 $182,374,525 $186,581,611 $177,625,995 $385,505,365 $360,000,520 Governmental Business-Type
Activities Activities Total
38 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
11 City of Simi Valley’s Changes in Net Position
Years Ended June 30, 2021 and 2020
During the current fiscal year, City -wide revenues increased by $18.9 million, and expenses increased by $3.7 million as compared to the prior year. The combination of these amounts provided a net increase of $15.2 million toward net position. Revenue categories with increases from the prior year consisted of charges for services ($12.7 million), operating grants and contributions ($10.8 million), taxes ($2.6 million), and other revenues ($68 thousand) offset by decreases in the categories of capital grants and contributions (<$2.4 million), and investment earnings (<$4.8 million). Property tax revenue decreased by $1.0 million, and revenue for sales, franchise, business and other tax showed a combined increase of $3.6 million.
Governmental Activities. Gov ernmental activities in creased the City’s net position by $16,549,229 as compared to an increase of $3,242,455 in the prior year. This is an increase of $13,306,774 million from the prior year.
FY 2020-21 FY 2019-20 FY 2020-21 FY 2019-20 FY 2020-21 FY 2019-20 Revenues:
Program Revenues:
Charges for services 11,767,698$ 8,653,884$ 74,860,453$ 65,292,331$ 86,628,151$ 73,946,215 Operating grants and contributions 22,170,916 12,622,399 6,923,917 5,663,893 29,094,833 18,286,292 Capital grants and contributions 505,218 5,383,614 3,745,985 1,302,250 4,251,203 6,685,864 General Revenues:
Property taxes 37,990,791 39,014,593 - - 37,990,791 39,014,593 Other taxes 31,217,155 27,593,307 - - 31,217,155 27,593,307 Interest on investments 699,791 2,973,992 (156,009) 2,418,455 543,782 5,392,447 Other - - 155,039 86,638 155,039 86,638 Total revenues 104,351,569 96,241,789 85,529,385 74,763,567 189,880,954 171,005,356 Expenses:
General government 25,475,510 27,673,710 - - 25,475,510 27,673,710 Community services 6,249,470 6,281,439 - - 6,249,470 6,281,439 Planning 6,613,359 3,745,723 - - 6,613,359 3,745,723 Public ways and facilities 19,861,510 23,538,052 - - 19,861,510 23,538,052 Public safety 37,445,831 36,691,093 - - 37,445,831 36,691,093 Interest on long-term debt 1,356,832 1,466,885 - - 1,356,832 1,466,885 Indirect expense allocation (8,033,300) (7,698,716) 8,033,300 7,698,716 - - Sanitation - - 15,702,385 14,189,784 15,702,385 14,189,784 Waterworks District No. 8 - - 45,207,672 40,102,922 45,207,672 40,102,922 Transit - - 6,515,024 7,068,484 6,515,024 7,068,484 Total expenses 88,969,212 91,698,185 75,458,381 69,059,905 164,427,593 160,758,090 Change in net position before
transfers and contributions 15,382,357 4,543,604 10,071,004 5,703,662 25,453,361 10,247,266 Transfers 1,115,388 (1,353,309) (1,115,388) 1,353,309 - - Cont
ributions from other governments 51,484 52,160 - - 51,484 52,160 Change in Net Position 16,549,229 3,242,455 8,955,616 7,056,971 25,504,845 10,299,426 Net position - beginning of the year 182,374,525 179,132,070 177,625,995 170,569,024 360,000,520 349,701,094 Net Position - ending 198,923,754$ 182,374,525$ 186,581,611$ 177,625,995$ 385,505,365$ 360,000,520$ Governmental
Activities
Business-Type
Activities Total
39 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
12 For governmental activities, total revenues increased by 8.4% from the prior fiscal year.
Service charges increased by 36.0% ($3.1 million) due to increases in building permits and plan check services ($903 thousand), a large program participation fee receipt from the Runkle Canyon LLC senior housing agreement ($775 thousand), and an increase in traffic impact fees collected from developers ($613 thousand) . Operating grants and contributions posted a significant increase of 75.7% ($9.5 million) due to federal financial assistance passed through from the State of California from CARES Act funds ($2.4 million), and additional federal financial assistance received directly from the U.S.
Department of Treasury from the American Rescue Plan Act (ARPA) ($7.7 milli on).
Capital grants and contributions decreased by 90.6% ($4.9 million) entirely due to a decrease in reimbursements for surface transportation grants, stemming from less reimbursable street related capital projects expenditures during the year. Property tax revenue decreased by 2.6% ($1.0 million) due to the impact of the pandemic. Other taxes increased by 13.1% ($3.6 million) mainly driven by an increase of sales tax revenue ($3.1 million). Investment earnings decreased by 76.5% ($2.3 million) due to rapidly decreasing investment yields and the decrease in fair market value of the securities in which the City invests ($1.7 million).
General government expenses decreased by 7.9% ($2.2 million). There were no primary drivers for this decrease, rather, it is an overall reduction of expenses resulting from conservative budgeting following the pandemic.
Community services expenses decreased by 0.5% ($32 thousand). This reflects a relatively stable year of operational expenses as compared to the prior year. The minor decrease can be attributed to closure of the Cultural Arts Center during the fiscal year due to the pandemic.
Planning expenses inc reased by 76.6% ($2.9 million). A new development agreement loan for $3.5 million was established in the prior fiscal year, reducing last year’s planning expenses by this amount per the GASB 34 adjustment. There were no material similar items in this fiscal year, resulting in the inverse impact of the prior year adjustment for this loan. Upon further review, it was determined this prior year adjustment should have been made on the public ways and facilities line, which is where the related expense was recorded in the fund financials. This was offset by increases in pension and other post - employment expenses ($639 thousand).
Public ways and facilities expenses decreased by 15.6% ($3.7 million). As described above, a $3.5 million developer loan was established in the prior year, causing an unusual increase of expenditures that year. No similar loans were established in this fiscal year, resulting in expenses decreasing by $3.5 million. The remaining decrease amount can be attributed to reduced expenditures in the transportation special revenue fund ($147 thousand).
Public safety expenses increased by 2.0% ($736 thousand) due to an increase in salary costs ($680 thousand).
40 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
13 41
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
14 Business-type Activities. Business -type activities increased the City’s net position by $8,955,616 as compared to a $7,056,971 increase in the prior year. Key elements for the changes in net position during the fiscal year are as follows:
In comparison to the prior fiscal year, overall revenue, before transfers, increased by
14.4% ($10.8 million). Charges for services in creased by 14.7% ($ 9.6 million) resulting from an increase in water rates and usage. There was an increase of 187.7% ($ 2.4 million) in capital grants and contributions and a 106.5% ($ 2.6 million) decrease in investment earnings. There was also an increase in operating grants and contributions of 22.3% ($1.3 million).
Expenses increased by 9.3% ($6.4 million) as compared to the prior fiscal year. A large portion of this in crease comes from in creased rates for water purchases in the Waterworks fund ($5.1 million) and a decrease in transit operating expenses of 7.8% (<$553 thousand). The enterprise funds also experienced a combined $335 thousand increase in their equitable share of internal service fund operating income for the fiscal year.
The Transit operation is primarily funded by Federal and State grants. During this fiscal year, additional funding was provided through the Federal Transit Administration’s CARES grant ($4.2 million) and ARPA grant ($2.2 million). This substantially reduced State funding used in this fiscal year, which is received and recorded in the Transportation special revenue fund until it is needed and transferred to Transit.
42 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
15 Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
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 necessary in assessing the City’s financing requirements. The following fund balance categories may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.
• Non-spendable fund balance represents funds that are not immediately available to support government operations. Examples are inventory and long -term receivables that will not be converted to cash in the near future.
• Restricted fund balance has constraints imposed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
43 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
16 • Committed fund balance represents funds that can only be designated for specific purposes by formal City Council action. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment.
• Assigned fund balance is similar to Committed fund balance except that the City Council can authorize the City Manager to designate the funds for specific purposes. An example is budgeted line- item expenditures to which the City Manager has the authority to make administrative amendments, provided they do not have a significant policy impact or affect budgeted year-end fund balances.
• Unassigned fund balance is that portion of General fund balance that does not fall into any of the other fund balance categories. These funds are available for any legitimate government purpose and are customarily reported in the General fund.
However, in governmental funds other than the General fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
At the end of the current fiscal year, the City’s governmental funds reflect c ombined ending fund balances of $122,283,140, a n increase of $26.3 million when compared to the prior year. Of this total amount, 4.9% ($ 6.0 million) is Non -spendable in form, comprised of long-term receivables. Of the ending governmental fund balances, 34 .0% ($41.6 million) is Restricted for specific activities including housing programs, public improvements, streets and transportation, landscape, debt service, special programs, and law enforcement programs. Of the governmental fund balances, 30.2% is clas sified as Committed. $22.9 million is Committed to street projects, retiree benefits, equipment replacement programs, and economic recovery. $ 14.0 million is Committed to the General fund as a prudent reserve. The prudent reserve represents 17% (two months) of budgeted expenditures and transfers out. It is set aside for responses to catastrophic events such as earthquakes, fires, floods, civil disturbances, etc. 31.3% ($38.3 million) of the fund balance is Assigned for Capital programs and improvements. (0.4%) or ($509,396) of the fund balance is Unassigned.
The fund balance of the City’s General fund increased by $17.9 million during the current fiscal year, for a total ending balance of $70.3 million. In comparison to last fiscal year, overall revenues in the General fund increased by $11.7 million, expenditures and net transfers out increased by $146 thousand. This reflects ongoing movement in a positive direction toward improvement in the overall fiscal health of the City.
The net change in the fund balance of the Successor Housing Agency (SHA) to Community Development Agency Housing Administration fund was an increase of $344 thousand. As compared to last fiscal year , overall revenues and expenditures reflects nominal movement reflecting only slight activity in the affordable housing market.
44 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
17 The fund balance of the Streets and Roads fund increased by $398 thousand due mostly to a contribution from the Successor Agency that was approved as an enforceable obligation for street projects in the prior fiscal year. In general, budgeted project s in this fund are pre-funded with transfers from various funds. In addition, a significant portion of street expenditures is reimbursed by Federal grants. During this fiscal year, expenditures for street projects totaled $590 thousand for both major and minor street projects that were completed, but associated grant funding was only $292 thousand.
Proprietary Funds. The information provided below about the City’s proprietary funds is similar to the information about Business -type Activities found in the government -wide financial statements, but by individual funds rather than in aggregate.
During fiscal year 2020- 21, the Sanitation, Waterworks and Transit funds showed increases in net position of $ 4,651,410, $2,952,266, and $ 915,152, respectively.
Unrestricted net position of the Sanitation, Waterworks and Transit funds was $31,965,192, $16,417,802, and <$4,949,762>, respectively. Other factors concerning the finances of these funds have been addressed in the discussion of Business-type activities above.
General Fund Budgetary Highlights
The General fund final amended expenditure budget of $82.7 million was $6.5 million
greater than the original expenditure budget of $76.2 million, the primary contributors of which can be briefly summarized as follows:
• $ 600,000 was appropriated for new projects approved by City Council throughout the year, such as the purchase and training of two new K -9’s, portable radios for the Police Department, and Police Department Grants.
• $2.3 million was appropriated from CARES Act Grant dollars.
• $700,000 was appropriated to cover the Leave Accrual.
• $1.7 million in increases to overtime costs, supplies & services was appropriated from prior year commitments that were carried forward across all departments. The overtime costs are offset with available grant dollars.
Actual expenditures of $71.6 million were $11.1 million less than the General Fund final amended expenditure budget of $82.7 million, mostly due to savings in Salaries & Benefits category of $3.0 million and in Services and Supplies of $3.5 million.
Actual revenues were $11.1 million more than the final budgeted amount of $78.5 million.
Actual revenue from taxes and franchise fees, license and permits, grants and transfers in exceed the budgeted amount by $15.2 million, while revenue from fines and forfeitures, service charges, from other governments, use of money and property and other miscellaneous sources was less than the final budgeted amount by $4.1 million. 45 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
18 Capital Asset and Debt Administration
Capital assets. The City of Simi Valley’s investment in capital assets for its governmental and business type activities as of June 30, 2021, amounts to $386,373,763 (net of accumulated depreciation). This is an increase of $987,015 as compared to the prior year.
The investment in capital assets includes land, plant and buildings, furnishings and equipment, computers and software, vehicles, and infrastructure consisting of roads and highways, and water and sewer distribution systems.
Major capital asset events during the current fiscal year included the following:
•
$5.7 million in street projects were completed
• $4.7 million in general government building improvement projects were completed ($795 thousand for security upgrades, $2.2 million for HVAC upgrades, $1.8 million for LED lighting upgrades)
• $1.4 million phone system upgrade was completed
•
Three transit buses for fixed route services were replaced totaling $1.5 million
•
$1.6 million Strathern Place sewer line project completed
Additional information on the City’s capital assets can be found in note III D of the notes to the financial statements.
City of Simi Valley’s Capital Assets
(net of depreciation)
June 30, 2021 and 2020
2021 2020 2021 2020 2021 2020
Land 1
0,621,811$ 10,621,811$ 1,216,994$ 1,216,994$ 11,838,805$ 11,838,805$ Buildings and improvements 33,033,641 29,678,649 6,221,938 6,235,128 39,255,579 35,913,777 Furnishings and equipment 3,712,718 2,716,666 3,229,696 3,505,853 6,942,415 6,222,519 Computers 276,565 382,509 74,118 95,536 350,683 478,045 Vehicles 1,890,553 1,780,652 3,882,176 3,175,832 5,772,729 4,956,484 Infrastructure 172,494,649 174,307,642 114,103,481 114,839,364 286,598,130 289,147,006 Intangibles 3,122,501 3,453,996 3,371 7,049 3,125,872 3,461,045 Construction-in-progress 13,220,445 23,166,223 19,2 69,105 10,202,848 32,489,550 33,369,070 Total 238,372,884$ 246,108,147$ 148, 000,879$ 139,278,603$ 386,373,763$ 385,386,750$ Governmental Business-Type
Activities Activities Total
46 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
19 Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $69,856,581. This entire amount represents bonds secured solely by specified revenue sources (i.e., revenue bonds).
City of Simi Valley’s Outstanding Bonded Debt at June 30, 2021 and 2020.
Additional information on the City’s long-term debt can be found in note III G.
Economic Factors and Next Year’s Budgets and Rates
• In June 2021, the City Council adopted the FY 2021- 22 annual budget. The adopted budget is structurally balanced for the second year in a row and projecting to maintain that balance through the City’s Five-Year Forecast. The City is on solid financial ground. Due to the many years of well -managed budgetary decisions, the City is now experiencing revenue growth at a slightly faster rate than expenditures. This will allow the City Council to make strategic decisions for the foreseeable future.
• The General Fund Balance is projected to remain relatively flat at the end of FY 2021-22. Currently, the City is projecting a $58 thousand surplus that will grow into the out years.
• General Fund revenues are projected to increase. In FY 2021- 22 property tax revenues are projected to increase by $1.4 million, over the previous year’s budget, due to ongoing improvements in assessed values and the local economy.
• The unemployment rate in Simi Valley has consistently remained below that of Ventura County, an indicator of the strength of the local economy. The rate was
5.53% in Q2, 2021 compared to 6.13% for Ventura County and 7.25% for California.
2021 2020
2014A lease revenue refunding bond 15,645,000$ 16,410,000$ 2016 New Clean Renewable Energy Bonds (NCREBs) 7,883,943 8,243,627 2016 NCREBs tax exempt 621,707 653,032
2017 lease agreement 5,260,532 5,667,403
2018 lease agreement 5,331,146 5,613,286
2019 lease agreement 33,816,566 33,816,566
Bond premium (discount) 1,297,687 1,396,325
Total 69,856,581$ 71,800,239$
Governmental and Business-Type
Activities
47 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
20 • The City’s gross assessed property values have increased by an estimated 3.9% in 2021-22 from 2020-21 and has averaged increases of over 4.2% year-over-year for the last four years, demonstrating strong property values and positive growth for the local economy.
While the coronavirus pandemic was unprecedented, the City weathered the storm well and did not experience significant financial impacts as initially anticipated. Property Tax remained stable, Sales Tax revenues increased, and expenditures were contained.
Furthermore, Federal assistance through CARES and ARPA will prove to foster greater financial strength for the City.
The City is overall in a good financial position, with a General Fund spendable fund balance of $64.4 million. The growth in fund balance will allow the City Council to make strategic decisions for one-time uses.
Requests for Information
This financial report is designed to provide a general overview of the City of Simi Valley’s finances for all those with an interest in the City’s financial condition. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Simi Valley, Department of Administrative Services, 2929 Tapo Canyon Road, Simi Valley CA 93063.
48 Basic Financial Statements
Basic Financial
Statements
49 Government-Wide
Financial Statements
50 CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying notes to the basic financial statements.
21 Governmental Business-Type
Activities Act ivities Total
ASSETS
Current assets:
Cash and investments (note III A) 129,796,845$ 89,822,749$ 219,619,594$ Accounts receivable (net of allowance for uncollectibles) (note III C) 1,780,623 7,883,900 9,664,523 Taxes receivable 6,586,715 365,109 6,951,824 Grants receivable 864,929 11,765,366 12,630,295 Interest receivable 324,518 187,464 511,982 Internal balances (note I E 2) 9,926,838 (9,926,838) - Inventories - 1,529,925 1,529,925 Restricted cash and investments (note III A):
Customer deposits - 1,074,255 1,074,255 Connection fees - 9,966,283 9,966,283 Total current assets 149,280,468 112,668,213 261,948,681 Noncurrent assets:
Loans receivable (note III B) 25,452,560 - 25,452,560 Loan receivable - Successor Agency (note III B) 51,103 - 51,103 Capital assets (note III D):
Capital assets not being depreciated 23,842,256 20,486,099 44,328,355 Capital assets being depreciated, net 214,530,628 127,514,780 342,045,408 Total noncurrent assets 263,876,547 148,000,879 411,877,426 Total assets 413,157,015 260,669,092 673,826,107
DEFERRED OUTFLOWS OF RESOURCES
Related to loss on debt refunding 169,591 - 169,591 Related to pensions (note IV D) 16,118,317 3,149,172 19,267,489 Related to other post employment benefits (note IV E) 16,197,084 2,042,743 18,239,827 Total deferred outflows of resources 32,484,992 5,191,915 37,676,907
LIABILITIES
Current liabilities:
Accounts payable 2,772,075 6,662,531 9,434,606 Salaries and benefits payable 2,389,819 304,566 2,694,385 Accrued interest payable 409,715 1,211,968 1,621,683 Deposits 1,169,700 - 1,169,700 Liabilities payable from restricted assets - 1,196,895 1,196,895 Unearned revenues - 378,382 378,382 Current portion of long-term obligations (note III G) 6,043,972 708,230 6,752,202 Total current liabilities 12,785,281 10,462,572 23,247,853 Noncurrent liabilities (note III G):
Noncurrent portion of long-term obligations 221,480,111 68,255,364 289,735,475 Total liabilities 234,265,392 78,717,936 312,983,328
DEFERRED INFLOWS OF RESOURCES
Related to pensions (note IV D) 1,727,884 280,711 2,008,595 Related to other post employment benefits (note IV E) 10,724,977 280,749 11,005,726 Total deferred inflows of resources 12,452,861 561,460 13,014,321
NET POSITION
Net investment in capital assets 203,826,589 133,644,109 337,470,698 Restricted for:
Capital projects 24,047,665 - 24,047,665 Community development 37,113,075 - 37,113,075 Other purposes 17,105,126 - 17,105,126 Sewer connection fees and water capital improvement charges - 9,843,643 9,843,643 Unrestricted (83,168,701) 43,093,859 (40,074,842) Total net position 198,923,754$ 186,581,611$ 385,505,365$ 51 CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
22 Indirect Operating
Expenses Full Cost Charges for Grants and
Expenses Allocation by Function Services Contributions
Primary government:
Governmental activities:
General government 25,475,510$ (8,539,244)$ 16,936,266$ 1,569,907$ 10,454,208$ Community services 6,249,470 319,500 6,568,970 293,799 4,598,743 Planning 6,613,359 126,278 6,739,637 5,443,247 1,338,233 Public ways and facilities 19,861,510 60,166 19,921,676 3,687,751 5,085,059 Public safety 37,445,831 - 37,445,831 772,994 694,673 Interest on long term debt 1,356,832 - 1,356,832 - - Total governmental activities 97,002,512 (8,033,300) 88,969,212 11,767,698 22,170,916 Business-type activities:
Sanitation 15,702,385 3,283,100 18,985,485 23,846,199 - Waterworks District No. 8 45,207,672 3,042,600 48,250,272 51,005,332 14,469 Transit 6,515,024 1,707,600 8,222,624 8,922 6,909,448 Total business-type activities 67,425,081 8,033,300 75,458,381 74,860,453 6,923,917 Total primary government 164,427,593$ -$ 164,427,593$ 86,628,151$ 29,094,833$ Program
Revenues
52 CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
23 Program
Revenues
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
Primary government:
Governmental activities:
155,941$ (4,756,210)$ -$ (4,756,210)$ General government - (1,676,428) - (1,676,428) Community services - 41,843 - 41,843 Planning 271,777 (10,877,089) - (10,877,089) Public ways and facilities 77,500 (35,900,664) - (35,900,664) Public safety - (1,356,832) - (1,356,832) Interest on long term debt 505,218 (54,525,380) - (54,525,380) Total governmental activities Business-type activities:
1,404,575 - 6,265,289 6,265,289 Sanitation 233,139 - 3,002,668 3,002,668 Waterworks District No. 8 2,108,271 - 804,017 804,017 Transit 3,745,985 - 10,071,974 10,071,974 Total business-type activities 4,251,203$ (54,525,380) 10,071,974 (44,453,406) Total primary government General revenues:
44,516,382 37,990,791 - 37,990,791 Property taxes 21,372,380 - 21,372,380 Sales taxes 5,185,293 - 5,185,293 Franchise taxes 2,241,423 - 2,241,423 Business tax 2,418,059 - 2,418,059 Other taxes 699,791 (156,009) 543,782 Investment earnings - 155,039 155,039 Miscellaneous 1,115,388 (1,115,388) - Transfers 51,484 - 51,484 Contributions from Successor Agency 71,074,609 (1,116,358) 69,958,251 Total general revenues, contributions and transfers 16,549,229 8,955,616 25,504,845 Change in net position 182,374,525 177,625,995 360,000,520 Net position-beginning 198,923,754$ 186,581,611$ 385,505,365$ Net position-ending Primary Government
Net (Expense) Revenue and
Changes in Net Position
53 54
Fund Financial
Statements
55 CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying notes to the basic financial statements.
24 SHA to Community
Development
Agency Housing
General Administration
ASSETS
Cash and investments:
Held by City 51,196,263$ 5,442,478$ Held by bond trustee - - Accounts receivable (net of allowance for 1,182,668 56,524 uncollectibles) (note III C)
Taxes receivable 6,517,464 - Grants receivable - - Interest receivable 210,319 12,802 Due from other funds (note III F) 10,518,968 301 Loans receivable (note III B) 227,882 15,839,397 Loans receivable-Successor Agency (note III B) 51,103 - Advances to other funds (note III F) 5,692,381 - TOTAL ASSETS 75,597,048$ 21,351,502$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 1,540,265$ 110,324$ Salaries and benefits payable 2,362,840 12,137 Due to other funds (note III F) 1,179 - Advances from other funds (note III F) - - Deposits 1,169,700 - TOTAL LIABILITIES 5,073,984 122,461
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs - 15,839,397 Unavailable revenue-public safety - - Unavailable revenue-community services 186,118 - TOTAL DEFERRED INFLOWS OF RESOURCES 186,118 15,839,397 FUND BALANCES (note III H)
Nonspendable
Long-term receivables 5,971,366 - Restricted
Housing programs - 5,389,644 Public improvements - - Streets and transportation - - Landscape - - Debt service - - Special programs - - Law enforcement - - Committed
Streets - - Retiree benefits 372,760 - Special programs 590,552 - Equipment - - Economic recovery 11,084,838 - Prudent reserve 14,019,727 - Assigned
Capital 38,297,703 -
Unassigned - - TOTAL FUND BALANCES 70,336,946 5,389,644
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 75,597,048$ 21,351,502$ Special Revenue
56 CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying notes to the basic financial statements.
25 Total
Streets & Nonmaj or Governmental
Roads Governmental Funds
ASSETS
Cash and investments:
3,460,793$ 45,725,167$ 105,824,701$ Held by City - 1,324,129 1,324,129 Held by bond trustee 2,500 538,124 1,779,816 Accounts receivable (net of allowance for uncollectibles) (note III C)
- 69,251 6,586,715 Taxes receivable - 864,929 864,929 Grants receivable - 49,757 272,878 Interest receivable - 8,616 10,527,885 Due from other funds (note III F) - 9,385,281 25,452,560 Loans receivable (note III B) - - 51,103 Loans receivable-Successor Agency (note III B) - - 5,692,381 Advances to other funds (note III F) 3,463,293$ 57,965,254$ 158,377,097$ TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
325,522$ 771,969$ 2,748,080$ Accounts payable - 8,660 2,383,637 Salaries and benefits payable - 939,241 940,420 Due to other funds (note III F) - 3,348,381 3,348,381 Advances from other funds (note III F) - - 1,169,700 Deposits 325,522 5,068,251 10,590,218 TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- 9,385,279 25,224,676 Unavailable revenue-housing programs - 92,945 92,945 Unavailable revenue-public safety - - 186,118 Unavailable revenue-community services - 9,478,224 25,503,739 TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES (note III H)
Nonspendable
- - 5,971,366 Long-term receivables Restricted
- 6,272,320 11,661,964 Housing programs - 8,077,145 8,077,145 Public improvements - 14,599,926 14,599,926 Streets and transportation - - - Landscape - 1,324,129 1,324,129 Debt service - 4,509,530 4,509,530 Special programs - 1,435,178 1,435,178 Law enforcement Committed
3,137,771 - 3,137,771 Streets - - 372,760 Retiree benefits - - 590,552 Special programs - 7,709,947 7,709,947 Equipment - - 11,084,838 Economic recovery - - 14,019,727 Prudent reserve Assigned
- - 38,297,703 Capital - (509,396) (509,396) Unassigned 3,137,771 43,418,779 122,283,140 TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS OF
3,463,293$ 57,965,254$ 158,377,097$ RESOURCES AND FUND BALANCES Capital Projects
57 CITY OF SIMI VALLEY
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF POSITION – GOVERNMENTAL ACTIVITIES
JUNE 30, 2021
See accompanying notes to the basic financial statements.
26 Fund balances - total governmental funds 122,283,140$ Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. 238,372,884 Int
ernal service funds are used by management to charge the costs of workers' compensation, general liability, GIS/Permits operations, and FIS operations.
The assets and liabilities are included in governmental activities in the statement of net position. 6,542,378
Some liabilities are not due and payable in the current period and therefore are not reported in the funds:
Accrued interest payable (409,715)
Revenues reported as unavailable revenue in the governmental funds are 25,503,739 recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.
Deferred outflows of resources related to pensions and other post employment benefits are not current financial resources and therefore, are not reported in the governmental funds.
Related to pensions 16,040,456$
Related to other post employment benefits 16,166,476 32,206,932 Deferred inflows of resources related to pensions and other post employment benefits are not current obligations and therefore, are not reported in the governmental funds.
Related to pensions (1,712,807)
Related to other post employment benefits (10,720,451) (12,433,258) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds:
Compensated absences payable (6,255,838)
Net OPEB obligation (42,136,437)
Net pension liability (128,879,647)
2014A Lease Revenue Refunding (15,645,000)
2016 New Clean Renewable Energy Bonds (7,883,943)
2016 NCREBs Tax Exempt (621,707)
2017 Lease agreement (5,260,532)
2018 Lease agreement (5,331,146)
Unamortized bond premium (1,297,687)
Unamortized bond payable deferred on refunding 169,591 (213,142,346) Net position of governmental activities 198,923,754$
58 59
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
27 SHA to Community
Development
Agenc
y Housing
General Administration
REVENUES
Taxes 66,634,290$ -$
Licenses and permits 3,829,208 -
Fines and forfeitures 236,362 -
Use of money and property 129,068 694,998 From other governments 354,276 -
Grants 10,467,043 -
Service charges 1,989,154 10,182
Other revenues 2,072,252 -
Total revenues 85,711,653 705,180
EXPENDITURES
Current:
General government 9,400,414 -
Community services 3,343,804 -
Planning 4,933,715 791,100
Public ways and facilities 14,387,422 -
Public safety 35,085,851 -
Total current expenditures 67,151,206 791,100 Capital outlay:
Streets and roads - -
Other capital projects - -
Total capital outlay - -
Debt service:
Principal - -
Interest - -
Other - -
Total debt service - -
Total expenditures 67,151,206 791,100
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 18,560,447 (85,920)
OTHER FINANCING SOURCES (USES)
Transfers in (note III F) 3,803,745 429,924 Transfers out (note III F) (4,494,620) -
Contributions from Successor Agency 51,484 - Total other financing sources (uses) (639,391) 429,924 NET CHANGE IN FUND BALANCES 17,921,056 344,004 FUND BALANCES - BEGINNING 52,415,890 5,045,640 FUND BALANCES - ENDING 70,336,946$ 5,389,644$ Special Revenue
60 CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
28 Total
Streets & Nonmajor Governmental
Roads Governmental Funds
REVENU
ES
-$ 2,573,656$ 69,207,946$ Taxes - - 3,829,208 Licenses and permits - - 236,362 Fines and forfeitures 2,500 1,057,827 1,884,393 Use of money and property - 9,338,232 9,692,508 From other governments 291,757 1,454,657 12,213,457 Grants - 2,448,066 4,447,402 Service charges 110,000 1,183,090 3,365,342 Other revenues 404,257 18,055,528 104,876,618 Total revenues
EXPENDITURES
Current:
- 738,599 10,139,013 General government - 2,291,587 5,635,391 Community services - 278,228 6,003,043 Planning - 1,865,446 16,252,868 Public ways and facilities - 427,675 35,513,526 Public safety - 5,601,535 73,543,841 Total current expenditures Capital outlay:
589,790 - 589,790 Streets and roads - 2,302,820 2,302,820 Other capital projects 589,790 2,302,820 2,892,610 Total capital outlay Debt service:
- 1,845,020 1,845,020 Principal - 1,465,341 1,465,341 Interest - 6,314 6,314 Other - 3,316,675 3,316,675 Total debt service 589,790 11,221,030 79,753,126 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
(185,533) 6,834,498 25,123,492 OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
583,608 6,094,744 10,912,021 Transfers in (note III F) - (5,295,813) (9,790,433) Transfers out (note III F) - - 51,484 Contributions from Successor Agency 583,608 798,931 1,173,072 Total other financing sources (uses) 398,075 7,633,429 26,296,564 NET CHANGE IN FUND BALANCES 2,739,696 35,785,350 95,986,576 FUND BALANCES - BEGINNING 3,137,771$ 43,418,779$ 122,283,140$ FUND BALANCES - ENDING Capital Projects
61 CITY OF SIMI VALLEY
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
29 Net change in fund balances - total governmental funds 26,296,564$ Amou
nts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Capital outlay net of dispositions 3,094,296$
Depreciation expense (10,829,560) (7,735,264)
Repayment of long-term debt is an expenditure in the governmental funds, but reduces long-term liabilities in the statement of net position.
Principal payment on 2014A lease revenue refunding bond 765,000 Principal payment on 2016 New Clean Renewable Energy Bonds 359,684 Principal payment on 2016 New Clean Renewable Energy Bonds (Tax Exempt) 31,325 Principal payment on 2017 lease agreement 406,871
Principal payment on 2018 lease agreement 282,140
Principal payment on So Calif Edison on-bill financing loan 866 1,845,886 Expenditures that do not use current financial resources are not reported in governmental funds but are recorded as expenses in the statement of activities.
Debt service interest accrual (net) 22,723
Amortized premium on bonds 98,638
Amortized deferral on refunding (12,852)
Pension liability (net) (4,692,785)
Deferred pension related items 1,457,580
Deferred OPEB related items (1,317,302)
Compensated absences (net) (267,966)
Unfunded OPEB liability 4,999 (4,706,965)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (581,889) Internal service funds are used by the City to account for liability, workers' compensation insurance, GIS/Permits operations, and FIS operations. A portion of the net expense of these funds is reported with governmental activities. 1,430,897
Change in net position of governmental activities 16,549,229$ 62 CITY OF SIMI VALLEY
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
30 Variance with
Final Budget
Posit
ive
Original Final Actual (Negative)
REVENUES
Taxes:
Sales 16,579,870$ 16,579,870$ 21,372,380$ 4,792,510$ Property 34,635,867 34,635,867 35,417,137 781,270 Franchise 4,600,000 4,600,000 5,185,292 585,292 Business and other 4,742,500 4,742,500 4,659,481 (83,019) Licenses and permits 2,830,000 2,830,000 3,829,208 999,208 From other governments 375,000 375,000 354,276 (20,724) Grants 212,900 2,634,319 10,467,043 7,832,724 Service charges 2,868,300 2,868,300 1,989,154 (879,146) Fines and forfeitures 555,000 555,000 236,362 (318,638) Use of money and property 773,500 773,500 129,068 (644,432) Other revenues 4,297,256 4,350,550 2,072,252 (2,278,298) Total revenues 72,470,193 74,944,906 85,711,653 10,766,747
EXPENDITURES
Current:
City administration 4,631,572 4,631,572 3,923,534 708,038 Attorney 1,384,289 1,384,541 1,430,240 (45,699) Administrative services and city-wide support* 1,232,196 5,132,851 4,046,640 1,086,211 Community services 4,668,141 4,697,666 3,343,804 1,353,862 Planning 5,839,066 5,884,024 4,933,715 950,309 Public ways and facilities 16,170,481 17,213,717 14,387,422 2,826,295 Public safety 37,820,226 38,168,674 35,085,851 3,082,823 Total expenditures 71,745,971 77,113,045 67,151,206 9,961,839
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 724,222 (2,168,139) 18,560,447 20,728,586
OTHER FINANCING SOURCES (USES)
Transfers in 3,350,837 3,464,637 3,803,745 339,108 Transfers out (4,480,938) (5,555,938) (4,494,620) 1,061,318 Contributions from Successor Agency 51,484 51,484 51,484 - Total other financing sources (uses) (1,078,617) (2,039,817) (639,391) 1,400,426 NET CHANGE IN FUND BALANCE (354,395) (4,207,956) 17,921,056 22,129,012
FUND BALANCES - BEGINNING 52,415,890 52,415,890 52,415,890 - FUND BALANCES - ENDING 52,061,495$ 48,207,934$ 70,336,946$ 22,129,012$ *net of reimbursements
Budgeted Amounts
63 CITY OF SIMI VALLEY
SUCCESSOR HOUSING AGENCY TO COMMUNITY DEVELOPMENT AGENCY HOUSING ADMINISTRATION
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
31 Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 235,000$ 235,000$ 694,998$ 459,998$ Service charges 16,200 16,200 10,182 (6,018) Total revenues 251,200 251,200 705,180 453,980
EXPENDITURES
Planning (ES):
Materials, supplies and services 1,080,781 1,453,825 791,100 662,725
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (829,581) (1,202,625) (85,920) 1,116,705
OTHER FINANCING SOURCES
Transfers in 412,010 412,010 429,924 17,914 Total other financing sources 412,010 412,010 429,924 17,914 NET CHANGE IN FUND BALANCES (417,571) (790,615) 344,004 1,134,619 FUND BALANCES - BEGINNING 5,045,640 5,045,640 5,045,640 - FUND BALANCES - ENDING 4,628,069$ 4,255,025$ 5,389,644$ 1,134,619$ Budgeted Amounts
64 CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
See accompanying notes to the basic financial statements.
32 Ventura County Simi Valley
Simi Valley Waterw orks Transit Internal
Sanitation District No. 8 System Total Service Funds
ASSETS
Current assets:
Cash and investments 66,991,252$ 22,457,865$ 373,632$ 89,822,749$ 22,648,015$ Customer receivable 116,006 5,996,039 - 6,112,045 807 Other receivable 986,681 755,475 29,699 1,771,855 - Taxes receivable 365,109 - - 365,109 - Grants receivable - - 11,765,366 11,765,366 - Inventories 656,537 697,622 175,766 1,529,925 - Interest receivable 126,638 60,826 - 187,464 51,640 Restricted cash and investments:
Customer deposits - 1,074,255 - 1,074,255 - Connection fees 9,843,643 122,640 - 9,966,283 - Total current assets 79,085,866 31,164,722 12,344,463 122,595,051 22,700,462 Noncurrent assets:
Capital assets (net of accumulated depreciation) (note III D):
Land 765,660 451,334 - 1,216,994 - Buildings and improvements 3,706,265 689,342 1,826,330 6,221,937 - Furnishings and equipment 1,341,596 1,508,453 457,140 3,307,189 - Vehicles 471,897 608,890 2,801,389 3,882,176 - Distribution system 64,059,124 50,044,354 - 114,103,478 - Construction-in-progress 12,720,018 4,976,039 1,573,048 19,269,105 - Total noncurrent assets 83,064,560 58,278,412 6,657,907 148,000,879 - TOTAL ASSETS 162,150,426 89,443,134 19,002,370 270,595,930 22,700,462
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 1,330,120 1,127,526 691,526 3,149,172 77,861 Related to other postemployment benefits 1,060,727 474,839 507,177 2,042,743 30,608 Total deferred outflow of resources 2,390,847 1,602,365 1,198,703 5,191,915 108,469
LIABILITIES
Current liabilities:
Accounts payable 2,663,905 3,866,946 131,680 6,662,531 23,993 Salaries and benefits payable 135,286 88,134 81,146 304,566 6,182 Interest payable 1,211,968 - - 1,211,968 - Bonds payable 580,283 - - 580,283 - Compensated absences 66,159 30,929 30,859 127,947 3,130 Due to other funds (note III F) - - 9,587,465 9,587,465 - Unearned revenue - - 378,382 378,382 - Claims and legal services payable (note IV B) - - - - 3,395,822 Current liabilities payable from restricted assets: -
Water service prepayments - 1,074,255 - 1,074,255 - Accounts payable restricted - 122,640 - 122,640 - Total current liabilities 4,657,601 5,182,904 10,209,532 20,050,037 3,429,127 Noncurrent liabilities:
Advances from other funds (note III F) - - - - 2,344,000 Bonds payable 33,236,283 - - 33,236,283 - Compensated absences 595,434 278,359 277,728 1,151,521 28,174 Claims and legal services payable (note IV B) - - - - 10,109,125 Net pension liability 12,103,615 8,880,027 6,304,630 27,288,272 588,320 Net other postemployment benefits obligation 3,193,225 1,727,902 1,658,161 6,579,288 87,577 Total noncurrent liabilities 49,128,557 10,886,288 8,240,519 68,255,364 13,157,196 TOTAL LIABILITIES 53,786,158 16,069,192 18,450,051 88,305,401 16,586,323
DEFERRED INFLOWS OF RESOURCES
Related to pensions 92,065 212,883 (24,237) 280,711 15,077 Related to other postemployment benefits 146,425 67,210 67,114 280,749 4,526 Total deferred inflow of resources 238,490 280,093 42,877 561,460 19,603
NET POSITION
Net investment in capital assets 68,707,790 58,278,412 6,657,907 133,644,109 - Restricted for:
Sewer connection fees and 9,843,643 - - 9,843,643 - water capital improvement charges
Unrestricted 31,965,192 16,417,802 (4,949,762) 43,433,232 6,203,005 TOTAL NET POSITION 110,516,625$ 74,696,214$ 1,708,145$ 186,920,984$ 6,203,005$ Beginning adjustment to unrestricted net position (740,161) Current adjustment to unrestricted net position 400,788 Net position of business-type activities 186,581,611$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Business-type Activities - Enterprise Funds
65 CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
33 Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
OPERATING REVENUES
Charges for sales and services 23,846,199$ 51,005,332$ 8,922$ 74, 860,453$ 6,158,242$
OPERATING EXPENSES
Salaries and benefits 7,573,140 4,856,866 4,341,846 16,771,852 372,636 Materials and supplies:
Water purchases - 34,049,224 - 34,049,224 - Utilities 685,775 901,928 29,631 1,617,334 - Chemicals 401,510 - - 401,510 - Other 314,250 476,446 406,152 1,196,848 132,085 Services:
Maintenance projects 2,705,532 1,698,546 214,711 4,618,789 - Other 1,370,660 1,468,882 264,799 3,104,341 - Insurance 395,370 215,000 332,100 942,470 - Claims and legal expenses - - - - 3,605,976 General administration 3,283,100 3,042,600 1,707,600 8,033,300 266,500 Depreciation 2,415,617 1,642,194 1,065,690 5,123,501 - Total operating expenses 19,144,954 48,351,686 8,362,529 75,859,169 4,377,197 OPERATING INCOME (LOSS) 4,701,245 2,653,646 (8,353,607) (998,716) 1,781,045
NONOPERATING REVENUES AND EXPENSES
Grants - 14,469 6,909,448 6,923,917 - Interest (721,676) 565,667 - (156,009) 56,840 Other 32,640 39,783 82,616 155,039 - Total nonoperating revenues (expenses) (689,036) 619,919 6,992,064 6,922,947 56,840
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 4,012,209 3,273,565 (1,361,543) 5,924,231 1,837,885
CONTRIBUTIONS AND TRANSFERS
Capital contributions 1,404,575 233,139 2,108,271 3,745,985 - Transfers in (note III F) - - 204,424 204,424 - Transfers out (note III F) (765,374) (554,438) - (1,319,812) (6,200) Total contributions and transfers 639,201 (321,299) 2,312,695 2,630,597 (6,200) CHANGE IN NET POSITION 4,651,410 2,952,266 951,152 8,554,828 1,831,685 NET POSITION-BEGINNING 105,865,215 71,743,948 756,993 4,371,320 NET POSITION - ENDING 110,516,625$ 74,696,214$ 1,708,145$ 6,203,005$ Current adjustment 400,788
Change in net position of business-type activities 8,955,616$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Business-type Activities - Enterprise Funds
66 CITY OF SIMI VALLEY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
34 Ventura County Simi Valley
Simi Valley Waterw orks Transit Internal
Sanitation District No. 8 System Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from service charges and other revenues 23,650,953$ 49,243,085$ 61,848$ 72,955,886$ 6,158,242$ Cash paid for salaries and benefits (7,180,718) (4,699,139) (4,131,760) (16,011,617) (369,431) Cash paid for supplies and materials (1,870,691) (34,758,989) (789,785) (37,419,465) - Cash paid for general administration (3,283,099) (3,042,600) (1,707,600) (8,033,299) (266,500) Cash paid for services (1,948,011) (3,477,071) (678,277) (6,103,359) (1,016,347) Cash paid for insurance premiums and claims - - - - (2,369,016) Net cash provided (used) by operating activities 9,368,434 3,265,286 (7,245,574) 5,388,146 2,136,948 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers from (to) other funds (765,374) (554,438) 204,424 (1,115,388) (6,200) Cash received from grants and other governments - 14,469 7,029,278 7,043,747 - Cash received from interfund borrowing - - 471,585 471,585 - Net cash provided (used) by noncapital financing activities (765,374) (539,969) 7,705,287 6,399,944 (6,200) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Sewer connection fees and water capital improvement charges 1,317,702 188,488 - 1,506,190 - Cash received from issuance of bonds payable - - - - - Cash paid for issuance of bonds payable - - - - - Acquisition of capital assets (9,750,658) (1,915,086) (2,022,254) (13,687,998) - Net cash used by capital and related financing activities (8,432,956) (1,726,598) (2,022,254) (12,181,808) - CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments 132,178 607,862 16,030 756,070 86,651 NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 302,282 1,606,581 (1,546,511) 362,352 2,217,399 CASH AND INVESTMENTS, BEGINNING OF YEAR 76,532,613 22,048,179 1,920,143 100,500,935 20,430,616 CASH AND INVESTMENTS, END OF YEAR 76,834,895$ 23,654,760$ 373,632$ 100,863,287$ 22,648,015$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) 4,701,245$ 2,653,646$ (8,353,607)$ (998,716)$ 1,781,045$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 2,415,617 1,642,194 1,065,690 5,123,501 - (Increase) decrease in prepaid expenses 3,984 2 (46,403) (42,417) (13,207) (Increase) decrease in accounts receivable (195,246) (1,837,139) (16,640) (2,049,025) - (Increase) decrease in inventory 38,650 50,511 (3,729) 85,432 - Increase (decrease) in accounts payable 2,015,747 513,294 (240,154) 2,288,887 (41,643) Increase (decrease) in accrued payroll (4,065) 2,964 8,221 7,120 (668) Increase (decrease) in compensated absences 3,410 39,889 42,662 85,961 (2,973) Increase (decrease) in water service prepayments - 44,541 - 44,541 - Increase (decrease) in claims and legal services payable - - - - 394,341 Increase (decrease) in net pension liability 386,898 25,162 204,637 616,697 19,982 Increase (decrease) in net other postemployment benefits liability 2,194 89,712 971 92,877 70 Adjustment for revenues and expenses classified as nonoperating - 40,510 92,778 133,288 - Total adjustments 4,667,189 611,640 1,108,033 6,386,862 355,903 Net cash provided (used) by operating activities 9,368,434$ 3,265,286$ (7,245,574)$ 5,388,146$ 2,136,948$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital additions (86,873)$ (14,469)$ -$ (101,342)$ -$ Capital contributions 86,873 14,469 - 101,342 - Services to be provided from settlement agreement 67,535 - - - - Business-type Activities - Enterprise Funds
67 CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
See accompanying notes to the basic financial statements.
35 Private-
Purpose Pension OPEB Custodial
Trust Trust Trust Funds
ASSETS
Cash and investments:
Held by City (note III A) 2,398,988$ -$ -$ 7, 129,934$ Held by bond trustee (note III A) 2,101,887 - - 1,028,673 Restricted cash and investments held with Pension Trust (note III A) - 1,481,169 - - Restricted cash and investments held with OPEB Trust (note III A) - - 3,040,480 Accounts receivable - - - 3,008 Interest receivable 2,646 - - - Capital assets not being depreciated (note V C) 1,124,174 - - - TOTAL ASSETS 5,627,695 1,481,169 3,040,480 8,161,615
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding (note V D) 75,223 - - - TOTAL DEFERRED OUTFLOWS OF RESOURCES 75,223 - - -
LIABILITIES
Accounts payable and accrued liabilities - - - 64,851$ Accrued interest payable 268,498 - - - Deposits - - - 5,682,504 Loans payable - City (note III B) 51,103 - - - Due to bondholders - - - 2,054,364 Long-term debt (note V E):
Due within one year 1,285,000 - - - Due in more than one year 15,072,212 - - - TOTAL LIABILITIES 16,676,813 - - 7,801,719
NET POSITION (DEFICIT)
Held in trust for other purposes (10,973,895)$ 1,481,169$ 3,040,480$ 359,896$ 68 CITY OF SIMI VALLEY
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements.
36 Private-
Purpose Pension OPEB Custodial
Trust Trust Trust Funds
ADDITIONS
Property taxes 2,796,299$ -$ -$ -$ Other taxes 440,032
Contributions - 1,478,127 3,017,260 - Investment earnings 11,619 12,394 207,546 12,589 TOTAL ADDITIONS 2,807,918 1,490,521 3,224,806 452,621
DEDUCTIONS
Administrative expenses 7,250 60 871,137 15,997 Benefit payments - 9,292 2,156,006 - Interest and fiscal agency expenses of former
Simi Valley Community Development Agency 839,729 - - 384,575 Contributions to other governments 51,484 - - - TOTAL DEDUCTIONS 898,463 9,352 3,027,143 400,572 CHANGE IN NET POSITION 1,909,455 1,481,169 197,663 52,049 NET POSITION (DEFICIT) - BEGINNING (12,883,350) - 2,842,817 307,847 NET POSITION (DEFICIT) - ENDING (10,973,895)$ 1,481,169$ 3,040,480$ 359,896$ 69 70
Notes to the Basic Financial Statements
Notes to the Basic
Financial Statements
71 72
CITY OF SIMI VALLEY LISTING OF NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
PAGE
37 I. Summary of significant accounting policies ............................................................. 39 A. Reporting entity ............................................................................................... 39 B. Financial statements ....................................................................................... 39 C. Measurement focus, basis of accounting, and
financial statement presentation .............................................................. 41 D. Implementation of new accounting pronouncements .................................. 44 E. Assets, liabilities, deferred outflows/inflows of resources and net position or fund balance .................................................................... 45
1. Deposits and investments ............................................................................ 45
2. Receivables and payables ............................................................................ 46
3. Property taxes .............................................................................................. 46
4. Inventories and prepaid items....................................................................... 46
5. Restricted assets .......................................................................................... 46
6. Capital assets ............................................................................................... 46
7. Compensated absences ............................................................................... 47
8. Long-term obligations ................................................................................... 47
9. Pensions ....................................................................................................... 47
10. Postemployment benefits other than pensions ............................................. 48
11. Deferred inflows/outflows of resources ........................................................ 48
12. Fund equity ................................................................................................... 48
13. Net position flow assumption ........................................................................ 49
14. Estimates .................................................................................................... 50 II. Stewardship, compliance, and accountability .................................................... 50 A. Budgetary information .................................................................................... 50 B. Excess of expenditures over appropriations ................................................ 51 C. Deficit fund equity ............................................................................................ 51 III. Detailed notes on all funds .................................................................................. 51 A. Cash and investments ..................................................................................... 51 B. Loans receivable .............................................................................................. 56 C. Accounts receivable ........................................................................................ 61 D. Capital assets ................................................................................................... 62 E. Construction commitments ............................................................................ 63 F. Interfund receivables, payables, and transfers ............................................. 64 G. Long-term debt ................................................................................................ . 66 H. Fund balance designations ............................................................................. 71 I. Assessment district bonds ............................................................................. 72 J. Conduit debt obligations .......................................................................................... 72 IV. Additional notes to the basic financial statements............................................ 72 A. Arbitrage rebate liability .................................................................................. 72 B. Risk management ............................................................................................ 73 C. Deferred compensation plans ......................................................................... 73 D. Pension plans................................................................................................... 73 E. Other post employment benefits .................................................................... 85 F. Contingencies and subsequent events ......................................................... 93 G. GASB Statements issued but not yet effective ............................................. 93
73 CITY OF SIMI VALLEY LISTING OF NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
PAGE
38 V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund .............................................................. 94 A. Reporting entity ............................................................................................... 94 B. Cash and investments ...................................................................................... 95 C. Capital assets ................................................................................................... 95 D. Deferred outflow of resources ......................................................................... 95 E. Long-term debt .................................................................................................. 96 F. Deficit fund equity ............................................................................................. 97 G. Insurance .......................................................................................................... 97
74 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
39 I. Summary of significant accounting policies
A. Reporting entity
The City of Simi Valley is a municipal corporation governed by an elected mayor and four- member council. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. The following blended component units are included in the City’s financial statements:
Ventura County Waterworks District No. 8 provides water services to the residents of the City of Simi Valley. The activity of the District is reported as an enterprise fund.
Simi Valley Industrial Development Authority assists businesses in financing their capital projects. Through the Authority, businesses can access tax -exempt municipal bonds to finance capital projects such as land acquisition, construction, purchase of equipment, or rehabilitation of manufacturing facilities.
Simi Valley Public Financing Authority provides a financing mechanism for various public projects. The activity of the Authority is reported in the debt service funds.
Debt associated with this entity was fully retired during fiscal year 2014-15. Simi Valley Public Facilities Financing Authority, formation of which was approved by the City Council on June 23, 2014, provides a financing mechanism for various public projects. The activity of the Authority is reported in the debt service funds.
The four entities listed above are treated as “blended” component units based on the following criteria:
• The members of the City Council also act as the governing body of each entity.
• Each entity is managed by employees of the City in essentially the same manner as it manages its own activities.
Accordingly, separate financial statements are not prepared for the Ventura County Waterworks District No. 8, the Simi Valley Industrial Development Authority, the Simi Valley Public Financing Authority, or the Simi Valley Public Facilities Financing Authority.
B. Financial statements
The basic financial statements of the City are comprised of:
• Government-wide financial statements,
• Fund financial statements,
• Budget-to-actual comparisons for the General fund and major special revenue funds,
75 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
40 • Notes to the basic financial statements, and
• Required supplementary information.
In addition, supplementary information is provided for:
• Non-major governmental funds,
• Budget-to-actual comparisons for non-major special revenue funds, • Internal service funds, and
• Fiduciary funds, which includes private-purpose trust funds.
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non- fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Governmental activities, which normally are supported by taxes 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, statement of activities, and a management’s discussion and analysis section provides an analysis of the City’s overall financial position and changes in financial position.
Net position is classified into three components: net investment in capital assets; restricted; and unrestricted. These classifications are defined as follows:
• Net investment in capital assets - This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year -end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of net investment in capital assets. Rather, that portion of the debt is included in the same net position component as the unspent proceeds.
• Restricted - This component of net position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or constraints imposed by law through constitutional provisions or enabling legislation.
• Unrestricted net position - This component of net position consists of net position that does not meet the definition of “restricted” or “net investment in capital assets”.
76 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
41 When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Fund financial statements for the City’s governmental, enterprise, and internal service funds are presented after the government-wide financial statements.
These statements display information about major funds individually and non-major funds in the aggregate.
Proprietary funds distinguish operat ing revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the sanitation, water and transit funds, and of the City’s internal service funds are charges to customers for sales and services.
Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as non-operating revenues and expenses.
C. Measurement focus, basis of accounting, and financial statement presentation
Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements, with the exception of agency funds, which use the accrual basis of accounting but cannot be said to have a measurement focus. Under the economic resources measurement focus, all (both current and long- term) economic resources and obligations of the government are reported. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items 77 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
42 are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Under 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 are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except reimbursement grant revenues and interest, which are considered available, if they are collected within 180 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as 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 taxes, sales taxes, franchise taxes, service charges, rents, intergovernmental revenue, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.
The underlying accounting system of the City is based on funds. A fund is defined as an independent fiscal and accounting entity with a self -balancing set of accounts. The City reports the following major governmental and enterprise funds:
General fund:
The General fund is the City’s pri mary operating fund. It accounts for all financial resources of the government except those required to be accounted for in another fund.
Special revenue funds:
Successor Housing Agency to Community Development Agency Housing Administration fund accounts for housing set-aside funds used to reimburse the costs associated with the administration and coordination of affordable housing programs, processing of affordable housing agreements, amendment or update of the Housing element of the general plan, as well as any general plan amendments for affordable housing projects.
78 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
43 Capital projects fund:
Streets and Roads fund accounts for all street-related improvements. Grants, transfers of funds from special revenue funds, accumulated via service charges, or transfers from the General fund primarily fund these improvements.
Enterprise funds:
Simi Valley Sanitation fund accounts for providing wastewater collection and treatment services in all the incorporated areas within the City of Simi Valley, as well as adjacent unincorporated areas.
Ventura County Waterworks District No. 8 fund accounts for the activities of the District, a blended component unit of the government. The District provides water services to 60% of Simi Valley residents and businesses.
Simi Valley Transit System fund accounts for the activities of the City’s transit system.
Additionally, the City reports the following fund types:
Internal service funds:
The City utilizes four internal service funds to account for management services provided to other departments of the City, on a cost reimbursement basis.
Liability Insurance fund provides for losses arising from general liability, property, automobile, physical damage, employee fiduciary, and unemployment claims. It is financed through contributions paid by each operating program based on factors similar to those used by insurance companies (i.e. payroll, property values, and number of employees).
Workers’ Compensation Insurance fund accounts for the workers’ compensation program. It is financed through contributions paid by each operating program based on factors similar to those used by the State Compensation Insurance Fund in calculating premium amounts; i.e., percentage rates by class of employee applied against related payroll costs.
GIS/Permits Operations fund accounts for operational costs associated with the City’s geographical information and permitting computer systems. It is financed through contributions paid by each operating program based on allocated use of the systems.
FIS Operations fund accounts for operational costs associated with the City’s financial information computer systems. It is financed through contributions paid by each operating program based on allocated use of the systems.
79 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
44 Fiduciary funds:
The City accounts for assets held by the City in a trustee capacity or as an agent for individuals or private organizations in agency funds.
City Custodial fund accounts for assets held by the City in a trustee capacity, or as an agent for individuals, private organizations, or other governments . Such trust funds are used to report resources held and administered by the City. They are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
Private Purpose Trust fund accounts for the assets and liabilities of the former Community Development Agency and its allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.
Pensions Trust fund accounts for the assets related to the City’s Public Agency Retirement Services (PARS) Retirement plan.
OPEB Trust fund accounts for the assets, contributions, administration expenses, and benefit payments related to the City’s other postemployment retiree benefits plan.
D. Implementation of new accounting pronouncements
The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2021. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.
GASB Statement No. 84
In January 2017, GASB issued Statement No. 84, Fiduciary Activities . This Statement improves guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.
GASB Statement No. 90
In August 2018, GASB issued Statement No. 90, Majo rity Equity Interests - An Amendment of GASB Statements No. 14 and No. 61. This Statement improves the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and improves the relevance of financial statement information for certain component units.
GASB Statement No. 98
In October 2021, GASB issued Statement No. 98, The Annual Comprehensive Financial Report. This Statement establishes the term annual comprehensive financial report and its acr onym ACFR. That new term and acronym replace instances of comprehensive 80 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
45 annual financial report and its acronym in generally accepted accounting principles for state and local governments.
E. Assets, liabilities, deferred outflows/inflows of resources and net position/fund balance
1. Deposits and investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
State statutes and the City Investment Policy, authorize the government to invest in obligations of the U.S. Treasury, the State and local agencies, Federal Government - Sponsored Agency Securities, the State Treasurer’s Investment Pool, and other public agency investment pools meeting specific criteria.
Investments are reported at fair value. The State Treasurer’s Investment Pool and the California Asset Management Pool (CAMP) operate in accordance with applicable state laws and regulations. The reported value of the pool funds is the same as the fair value of the pool shares.
2. Receivables and payables
Activity betwee n funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance non- spendable account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Receivables are shown net of allowance for uncollectibles.
3. Property taxes
Property taxes in California are levied in accordance with Article 13A of the State Constitution and statutory provisions by the County Assessor for the secured and unsecured tax rolls, and State Board of Equalization for the utility property tax rolls. The tax levy to support general operations is limited to one percent of full value at time of purchase with subsequent annual increases up to two percent. Increase to full value is allowed for property improvements or upon change in ownership. Amounts required to finance voter -approved debt are excluded from this limitation and are calculated and levied each fiscal year. Property taxes are levied on both real and personal property. 81 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
46 Secured property taxes are levied July 1, payable in two equal installments: the first is due November 1 and delinquent with penalties after December 10; the second is due on February 1 and delinquent with penalties after April 10. Unsecured property taxes become delinquent with penalties after August 31. Secured property taxes become a lien on the property on January 1.
The County of Ventura bills and collects the property taxes and remits them to the City throughout the year. Property tax revenue is recognized in the fiscal year for which taxes have been levied, provided the revenue is collected in the current period, or within 60 days thereafter.
4. Inventories and prepaid items
In governmental funds, the purchase method is used to account for inventories. Under this method, inventories are recorded as expenditures when purchased rather than capitalized as an asset. If inventory amounts are significant at year-end they are reported as an asset. Inventory amounts in the governmental funds were not significant in fiscal year 2020-21.
In proprietary funds, inventories are valued at cost. They are accounted for using the consumption method, on a first-in / first-out basis.
5. Restricted assets
Customer deposits and connection fees are classified as restricted assets on the statement of net position, business -type activities. Customer deposits offset the liability for water service prepayments, and the cash received for water and sewer c onnection fees is restricted for infrastructure or plant improvements.
6. Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more (the infrastructure threshold is $25,000, the intangible threshold is $100,000) 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. Donated infrastructure assets are recorded at estimated historical cost provided by the developer. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ useful lives are not capitalized.
82 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
47 Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, equipment, and infrastructure are depreciated using the straight li ne method over the following estimated useful lives:
Assets Years
Buildings 50
Building improvements 25
Vehicles 4-7
Furnishings, machinery and equipment 3- 15
Water/Sewer lines 30-100
Intangibles 5- 15
Infrastructure 25-50
7. Compensated absences
Vacation and sick leave benefits are consolidated into a leave benefit program. It is the City’s policy to permit employees to accumulate earned but unused leave. Accumulations are capped at different levels, depending upon the employee group. All such leave is accrued when incurred in the government-wide and proprietary fund financial statements.
A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
8. Long-term obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and other long- term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight -line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
9. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan and Public Agency Retirement Services (PARS) Retirement Enhancement plan (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined 83 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
48 on the same basis as they are reported by CalPERS and PARS. 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.
10. Postemployment benefits other than pensions
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the City of Simi Valley Retiree Benefits Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit terms.
Investments are reported at fair value, except for money market investments and participating interest -earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.
11. Deferred inflows/outflows of resources
In addition to assets, the statements of net position and governmental funds balance sheets will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/ expenditure) until then.
In addition to liabilities, the statements of net position and governmental funds balance sheets will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: property taxes, housing loans and forfeited assets. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
Changes in the net pension and OPEB liability not included in pension and OPEB expense are reported as deferred outflows of resources or deferred inflows of resources related to pensions and OPEB on the statements of net position.
12. Fund equity
Fund balance amounts are reported within one of the fund balance categories l isted below.
84 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
49 • Non-spendable fund balance represents funds that are not immediately available to support government operations. The City’s non- spendable fund balance represents long-term receivables that will not be converted to cash in the near future.
• Restricted fund balance has constraints imposed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
• Committed fund balance represents funds that can only be designated for specific purposes by formal City Council action. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal ordinance action taken to establish the commitment.
• Assigned fund balance is similar to committed fund balance except that the City Council can authorize the City Manager, through resolution, to designate the funds for specific purposes. An example is budgeted line-item expenditures to which the City Manager has the authority to make administrative amendments, provided they do not have a significant policy impact or affect budgeted year-end fund balances.
• Unassigned fund balance is the portion of fund balance that does not fall into any of the other fund balance categories. These funds are available for any legitimate government purpose. The General fund is the only fund that reports a positive unassigned fund balance amount. However, in governmental funds other than the General fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, they are considered to be spent in the order as follows: committed, assigned and then unassigned.
13. Net position flow assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
85 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
50 14. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts in the financial st atements and accompanying notes. Actual results could differ from the estimates.
II. Stewardship, compliance, and accountability
A. Budgetary information
The City is a general law city in the State of California and does not legally require a budget. However, the City Council annually adopts budgets on a basis consistent with generally accepted accounting principles for the General fund, enterprise funds, special revenue funds, and internal service funds. Annual budgeting for operations facilitates management evaluation and control. Project -length budgets are adopted for the capital project funds. Debt service funds are not budgeted. Appropriations lapse at year end for all funds, with the exception of Capital Projects Funds, which have project length budgets.
The appropriated budget is prepared by fund, function, and department. The City Manager may make transfers of appropriations that do not have a significant policy impact or affect budgeted year -end fund balances. The City Council may amend the budget at any time during the year. Unexpended or unencumbered appropriations lapse at the end of the fiscal year but may be eligible for reappropriation upon City Manager approval.
Encumbered appropriations are reappropriated in the ensuing year’s budget after review and approval by the City Manager.
The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level for all funds except the General fund for which, by policy, the level of budgetary control is the department level. Departments within the General fund include divisions as listed in the following table. A detailed City organizational chart is included in the introductory section of this document.
86 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
51 B. Excess of expenditures over appropriations
For the fiscal year ended June 30, 2021 , expenditures exceeded appropriations in the Public, Education and Government (PEG) Fees and Transportation (non-major) special revenue funds by $22,103 and $84,986, respectively. The necessary budget amounts were underestimated when completing the budget for these funds in the fiscal year 2021.
C. Deficit fund equity
The Private Purpose Trust fund, a component of the City’s Fiduciary funds, has a negative net position of $10,973,895 as of June 30, 2021. During the current fiscal year, additions exceeded deductions by $1,909,455 thereby reducing the negative net position from the previous fiscal year. See Note V F.
III. Detailed notes on all funds
A. Cash and investments
The cash balances of all funds held by the City are pooled and invested for the purpose of increasing interest earnings through investment activities. The interest earned on these investments is allocated to participating funds based on their average daily cash balances.
Cash and investments at June 30, 2021 are classified as follows:
Statement of net position:
Cash
and investments 207,672,968
Cash and investments held by bond trustee 22,987,164
Fiduciary funds:
Cash and investments 9,528,922
Cash and investments held by bond trustee 3,130,560
Restricted cash and investments held with Pension Trust 1,481,169 Restricted cash and investments held with OPEB Trust 3,040,480 Total cash and investments 247,841,263$
Cash and investments at June 30, 2021 consisted of the following:
Cash on hand 6,399$
Deposits with financial institutions 31,315,011
Outstanding checks 1,538,536
Investments 214,981,317
Total cash and investments 247,841,263$
87 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
52 The following table identifies the investment types that are authorized by the California Government Code (or the City’s investment policy or debt agreements, whichever is more restrictive) subject to the prohibitions and limitations set forth in Sections 8.1 of the City’s Statement of Investment Policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy or debt agreements, whichever is more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Debt proceeds held by bond trustees are invested in accordance with the provisions of debt agreements of the City.
Interest Rate Risk
To minimize the impact on portfolio fair value caused by changes in market interest rates, the City holds investments to maturity, matches investment maturities with specific cash flow requirements, invests in a combination of short, medium, and long term investments (laddered maturities), and invests in securities maturing in 5 years or less from the settlement date.
Investment Type Max Authorized Max Authorized
Local Agency Bonds 5 Years 100% 5 Years 100%
U.S. Treasury Bills, Notes, and Bonds 5 Years 100% 5 Years 100% CA State Registered Warratns 5 Years 100% 5 Years 100%
Notes and Bonds of other States 5 Years 100% 5 Years 100% Federal Instrumentality Securities 5 Years 100% 5 Years 100% Supranational Securities 5 Years 30% 5 Years 30%
Bankers' Acceptances 180 Days 40% 180 Days 40%
Commerical Paper 270 Days 25% 270 Days 25%
Non Negotiable CD's 5 Years None 5 Years 30%
Negotiable CD's 5 Years 30% 5 Years 30%
Private Deposit Placements 5 Years 30% 5 Years 30%
Repurchase Agreements 1 Year 100% 1 Year 100%
Reverse Repurchase Agreements 92 Days 20% * *
Medium Term Notes 5 Years 30% 5 Years 30%
Money Market Mutual Funds N/A 20% N/A 20%
Collaterized Bank Deposits 5 Years 100% 5 Years 25%
Mortgage Pass-through Securities 5 Years 20% * *
LAIF N/A $50 Million N/A $50 Million
County Pooled Investment Funds N/A 100% N/A $50 Million State Code Limits City Portfolio Limits
*Prohibited by City Investment P olicy (with limited authorization for repurchase or reverse repurchase agreements)
88 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
53 Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year -end for each investment type.
Concentration of Credit Risk
In addition to the limitations stipulated in the Authorized Investments table, the City’s investment policy lists the following limitations:
• Authorized supranational securities must have a maximum maturity not exceeding five years from the date of trade settlement and shall be rated at least “AA” or its equivalent by a nationally recognized statistical rating organization (NRSRO) at the time of purchase. Investments in supranational securities shall not exceed 30% of the portfolio
Amount
1 Year
Or Less
1-2
Years
2-5
Years
U.S. Agencies 39,557,409$ 5,060,940$ 10,242,670$ 24,253,799$ U.S. Treasuries 2,052,820 2,052,820
U.S. Corporates 28,133,240 505,660 6,113,532 5,220,284 Money market mutual funds 5,137,896 5,137,896 - - LAIF 132,447,743 132,447,743 - -
Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 1,544,457 1,544,457
Mutual funds 2,977,192 2,977,192
Held by bond trustees:
Money market mutual funds 3,130,560 3,130,560
Total 214,981,317$ 150,804,448$ 18,409,022$ 29,474,083$ Remaining Maturity in Years
Investment Type
Amount Aaa/Aaa-mf Aa1 Aa2 Aa3 A1 A2 A3 Not Rated
U.S. Agencies 39,557,409$ N/A 39,557,409$ -$ -$ -$ -$ -$ -$ -$ U.S. Treasuries 2,052,820 N/A 2,052,820 - - - - - - - U.S. Corporates 28,133,240 A3 1,020,840 4,643,494 2,151,920 5,141,114 13,134,405 2,041,468 - Money market mutual funds 5,137,896 N/A - - - - - - - 5,137,896 LAIF 132,447,743 N/A - - - - - - - 132,447,743 Money market mutual funds 1,544,457 N/A - - - - - - - 1,544,457 Mutual funds 2,977,192 N/A - - - - - - - 2,977,192 Held by bond trustees:
Money market mutual funds 3,130,560 N/A 3,130,560 - - - - - - Total 214,981,317$ 44,740,789$ 1,020,840$ 4,643,494$ 2,151,920$ 5,141,114$ 13,134,405$ 2,041,468$ 142,107,288$ Minimum
Legal
Moody's Ratings as of Year End
Investment Type
Restricted investments held by
Pension and OPEB Trusts:
89 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
54 • Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States with a final maturity not exceeding five years from the date of trade settlement and rated at least “A” or the equivalent by a NRSRO at the time of purchase. No more than 5% of the portfolio shall be invested in any one issuer, and the aggregate investment in medium -term notes shall not exceed 30% of the portfolio.
• State Obligations and Local Agency Issues must be rated at least “A+” or the equivalent by a NRSRO at the time of purchase with maturities not exceeding five years from the date of trade settlement. No more than 5% of the City’s total portfolio shall be invested in any one municipal issuer and the aggregate investment in municipal bonds may not exceed 30% of the portfolio.
• No more than 5% of the portfolio shall be invested in the commercial paper of any one issuer and the aggregate investment in commercial paper shall not exceed 25% of the portfolio.
• Purchases of negotiable certificates of deposit may not exceed 30% of the portfolio with no more than 5% held in any one issuer.
• Investments in LAIF, pursuant to California Government Code Section 16429.1, which has a maximum of $50 million per agency/account.
• Bond proceeds held by Trustees and Fiscal Agents may be invested in LAIF, other investment pools, and other investment instruments in compliance with California Government Code and the bond indenture documents for each bond issue. For bond proceeds invested in LAIF, the City follows California’s provisions stating bond proceeds are one-time deposits, have no maximum deposit amount, and are maintained on thirty day increments.
• To the extent bond documents require an alternate investment program than this investment policy, Trustees and Fiscal Agents shall follow the alternate investment instructions.
Custodial Credit Risk
All demand deposits and certificates of deposit held by the City are entirely insured or collateralized. The California Government Code Section 53652 requires California banks and savings and loan associations to secure a local government agency’s deposits by pledging government securities with a market value equal to 110% of the deposits or pledging first trust deed mortgage notes with a market value equal to 150% of the total deposits.
90 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
55 Pursuant to California Government Code Section 53653, the City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC.
To protect investments against custodial credit risk caused by the collapse of individual securities dealers, all securities owned by the City are held by the City’s custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement.
Investments in any one issuer (other than U.S. Treasury Obligations, money market mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:
As of June 30, 2021, the City had no investments which were not held in the City’s name.
Investment in State Investment Pool
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that is regulated by California Code Section 16429.1- 16429.4 under the oversight of the Treasurer of the State of California. In addition to the primary City account, LAIF accounts are also maintained for the following blended component units of the City: Waterworks District No. 8, Successor Agency to the Community Development Agency, and Industrial Development Authority. The City’s investment in LAIF is highly liquid, as deposits can be converted to cash within twenty-four hours. 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.
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by Governmental Accounting Standards Board Statement 72. This statement recognizes a three-tiered fair value hierarchy, as follows:
Level 1: Investments reflect prices quoted for identical assets or liabilities in an active market;
Investment Type Reported Amount
Federal National Mortgage Association U.S. Agencies 10,165,439$ Federal Farm Credit Bank U.S. Agencies 12,121,840
Federal Home Loan Bank U.S. Agencies 10,673,910
Federal Home Loan Mortgage Corporation U.S. Agencies 6,596,220 Issuer
91 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
56 Level 2: Investments reflect prices based on inputs other than quoted prices included within Level 1, that are observable for an asset or liability either directly or indirectly; and,
Level 3: Investments reflect prices based on unobservable inputs for an asset or liability.
The City has the following fair value measurements as of June 30, 2021:
The City and the third-party trustees that hold the City’s assets utilize the market approach in valuing the investment portfolio through the use of the pricing service that utilize matrix pricing. The market approach utilizes prices and other relevant data from market transactions for similar assets.
B. Loans receivable
The City utilizes multiple sources for funding projects designed to improve, produce and preserve low- and moderate-income housing units. These include the City Local Housing fund, the CalHome fund, the HOME fund and the Successor Housing Agency to Community Development Agency (Agency) Housing Administration fund. One of the primary means of providing affordable housing is through negotiation with developers to incorporate affordable units within new residential developments. In addition, the City maintains an active home rehabilitation program, offering 2% interest, deferred payment loans to lower-income homeowners to preserve the City’s housing stock.
Amount Level 1 Level 2 Level 3
U.S. Agencies 39,557,409$ -$ 39,557,409$ -$ U.S. Treasuries 2,052,820 - 2,052,820 - U.S. Corporates 28,133,240 - 28,133,240 - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 1,544,457 - 1,544,457 - Mutual funds 2,977,192 - 2,977,192 - Held by bond trustees:
Money market mutual funds 3,130,560 - 3,130,560 - Total investments measured at fair value: -$ 77,395,678$ -$ Investments measured at amortized cost:
Money market mutual funds 5,137,896
LAIF 132,447,743
Total investments 214,981,317$
Fair Value Hierarch Category
Investment Type
92 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
57 Affordable Housing Program
• Casa de Paz Housing, Inc., an affiliate of Many Mansions (Casa de Paz Apartments)
In July 2001, the Agency entered into an affordable housing agreement with Casa de Paz Housing, Inc. to provide financial assistance for the acquisition and rehabilitation of a 14- unit apartment complex, restricting occupancy to very low - income persons with disabilities. The City and Agency approved an amended affordable agreement on November 20, 2001, to incorporate additional provisions required by HUD. The loan is due 50 years from the certificate of occupancy dated October 25, 2002.
• ARC of Ventura County, Inc. (Vista Del Monte Rental Condominiums) In April 2002, the Agency entered into an affordable housing agreement with ARC of Ventura County, Inc., to provide financial assistance for the acquisition of four condominium units for occupancy by very low -income, developmentally disabled persons. The loan is due and payable 55 years from the affordable housing agreement dated August 16, 2002, or within 60 days after HUD provides notice to the developer that it will no longer provide project-based rental assistance.
• Paseo Simi Senior Apartments, LP., an affiliate of USA Properties Fund Inc. (Vintage Paseo Apartments)
In December 2002, the Agency entered into an affordable housing agreement with Paseo Simi Senior Apartments, L.P. to provide financial assistance for the construction and operation of a 176- unit multifamily senior apartment complex located at the southeast corner of Tapo Canyon Road and Avenida Simi. The agreement restricts the rental of 86 units to very low - and low -income senior households. Interest accrues up to the end of the 7
th year following the
commencement of bond amortization. Repayment of the note is to be made from residual receipts and begins in the 8
th year following commencement of bond
amortization; the note becomes due and payable 55 years from the last certificate of occupancy dated December 16, 2004.
• Alamo & Fairbanks Associates, an affiliate of Cabrillo Economic Development Corporation (Plaza del Sol Apartments)
In September 2003, the Agency entered into an amended affordable housing agreement with Alamo & Fairbanks Associates, to assist with the financing for constructing and operating a 70-unit multi-family apartment project, Plaza del Sol Apartments. The agreement restricts the rental of 34 units to very low - and low- income households. The note is to be repaid from residual receipts and is due and payable 55 years from the last certificate of occupancy dated August 11, 2005.
93 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
58 • La Rahada, LLC., an affiliate of Many Mansions (La Rahada Apartments) In June 2008, the Agency entered into an affordable housing agreement with Many Mansions to provide financial assistance for the acquisition and rehabilitation of an 8-unit apartment complex, La Rahada Apartments, for occupancy by extremely low-income, mentally disabled, and homeless individuals. The note is due and payable 55 years from issuance of the promissory note dated June 17, 2008.
• Peppertree SV, LLC., an affiliate of Many Mansions (Peppertree Apartments) In June 2011, the Agency entered into an affordable housing agreement with Many Mansions to provide financial assistance in the form of both a bridge and permanent loan for the acquisition and rehabilitation of a 12- unit apartment complex, Peppertree Apartments, for occupancy by extremely low -income, mentally disabled, and homeless individuals. The bridge loan, with terms of due and payable 18 months from issuance, was paid off in January 2015. The permanent loan is due and payable 55 years from issuance of the promissory note dated October 14, 2013.
• Camino Esperanza, LP., an affiliate of Cabrillo Economic Development Corporation (Camino Esperanza Senior Apartments)
In December 2015, the City entered into an affordable housing agr eement with Cabrillo Economic Development Corporation to provide a $500,000 permanent loan to develop a 31-unit senior housing complex. The permanent loan shall bear 3% simple interest per annum beginning on the 18
th anniversary of the promissory
note dated December 1, 2015. Subsequently, the City provided an additional $186,279 interest -free loan for the project in May 2018 and amended the affordable housing agreement terms to add an additional 10 years of affordability.
The first note is due and payable 55 years from issuance of the promissory note dated December 1, 2015. The second note is due and payable 65 years from issuance of the final Certificate of Occupancy dated June 28, 2016.
• Vintage at Sycamore Senior Apartments
In February 2020, the City entered into an affordable housing agreement with Simi Vintage Sycamore 650 LP (developer) to provide a loan in the amount of $3,500,000 as financial assistance towards the development of a 99- unit multifamily senior apartment project on an approximately 2.98 acre parcel of land. The rental of 10 apartment units will be restricted to very low-income senior households, and 38 apartment units will be restricted to low -income senior households. The loan is due and payable 55 years from issuance of the promissory note, dated February 25, 2020, and bears three percent (3%) annual interest for the term of the note.
94 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
59 Home Rehabilitation Program
This Program was established in 1981. The Program offers low interest deferred loans to lower -income homeowners. Qualified owners of detached single-family residences are eligible for a deferred 2% loan that accrues interest for a maximum of 15 years. Full repayment is required when the property is sold, refinanced, leased, changes title, or 30 years from issuance of the promissory note, whichever occurs first. The maximum loan amount is $50,000.
In response to the dissolution of state redevelopment program funding (a result of California Assembly Bill 1X 26) the City Council authorized suspension of two affordable housing programs - the First Time Home Buyer Program and the Mobile Home Rehab Program. Over its many years of operation, the FTHB program generated several different loan types, the most recent of which would provide $50,000 per bedroom up to $200,000. On June 6, 2016, the City Council approved reinstatement of the FTHB assistance program utilizing remaining grant funds from the 2011 CalHome award. The City maintains 262 loans generated by this program, many of which are due and payable at the end of a 55- year term of affordability.
Other loans receivable of the City are comprised of:
• Simi Valley Cultural Arts Center Foundation
During Fiscal Years 1995 – 1996 the City entered into a loan agreement with the Simi Valley Cultural Arts Center Foundation to fund start -up costs of the Center.
One dollar of this loan is retired for every three dollars deposited in the Simi Valley Cultural Arts Center Foundation endowment fund or provided for operations in excess of the annual support campaign.
• El Rancho Simi Cemetery District (formerly Simi Valley Public Cemetery District)
During Fiscal Years 1991 – 1993 the City funded capital improvements at the Cemetery for $256,797. This amount was a loan from the City to the Cemetery at an interest rate of
6.08 percent to be repaid in 10 years. The Cemetery fell into financial hardship and was unable to repay this loan. In fiscal year 1996, the repayment terms of the loan were revised, and the Cemetery’s property tax pass-thru funds were to be applied to retire the loan until there was a change in the Cemetery’s ability to repay the loan. Effective, July 1, 2011, the County’s pass -thru program was eliminated as part of redevelopment dissolution. The Cemetery’s property tax share is now paid directly to the district, thereby removing the City’s ongoing ability to directly collect upon the debt. The receivable balance reflects only outstanding principal. Because of the District’s ongoing poor financial health, accrued interest has been considered uncollectible and therefore is not included in the receivable balance. Additionally, the receivable balance is stated as net of an uncollectible allowance of $74,397. In November 2015, Cemetery staff submitted an informal request for consideration of complete loan forgiveness by the City as of June 30, 2021, no action has been taken.
95 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
60 Loans receivable (net of allowance for uncollectibles) balances at June 30, 2021 were as follows:
Loan receivable – Successor Agency:
As of June 30, 2021, advances made to the former CDA from the City totaled $51,103.
On September 23, 2013, the Simi Valley Oversight Board adopted Resolution OB 2013 – 12 confirming the November 10, 2010 loan between the City and the CDA was for legitimate redevelopment purposes. In a correspondence dated November 5, 2013, the California Department of Finance approved the Simi Valley Oversight Board’s adoption of Resolution OB 2013 – 12. Therefore, the Simi Valley Successor Agency may now include the repayment of the loan on future Recognized Obligations Payment Schedules (ROPS). The repayment is subject to the formula outlined in California Health and Safety Code Section 34191.4(b)(2).
Interest
Rate
Term
(Yrs)
Year
Due Principal Due Interest Due Total
Affordable Housing Program:
Casa de Paz Apartments 0.0% 50 2052 122,551 $ $ - 122,551$ ARC of Ventura County 0.0% 55 2057 175,000 - 175,000 Vintage Paseo Apartments 3.0% 55 2059 1,155,862 - 1,155,862 Plaza del Sol Apartments 3.0% 55 2060 1,900,000 517,356 2,417,356 La Rahada Apartments 3.0% 55 2063 250,000 97,792 347,792 Peppertree Apartments 3.0% 55 2068 575,000 132,801 707,801 Camino Esperanza Senior Apartments 3.0% 55 2071 500,000 - 500,000 Camino Esperanza Amendment #1 0.0% 65 2083 186,279 - 186,279 Vintage at Sycamore Senior Apartments 3.0% 55 2075 3,500,000 125,425 3,625,425 Affordable Housing Program 8,364,692 873,374 9,238,066 First Time Homebuyer Program: Principal Due Interest Due Total FTHB - Successor Housing Agency 9,854,512 - 9,854,512 FTHB - LHF 1,836,200 - 1,836,200 FTHB - CalHome 60,000 - 60,000 FTHB - HOME 707,700 - 707,700 FTHB - CDBG 20,800 - 20,800 First Time Homebuyer Program Equity Share 12,479,212 - 12,479, 212 Home Rehabilitation Program: Principal Due Interest Due Total Home Rehab - Successor Housing Agency 303,973 68,271 372,244 Home Rehab - LHF 133,055 12,576 145,631 Home Rehab - CalHome 959,146 124,103 1,083,248 Home Rehab - HOME 1,245,539 99,875 1,345,414 Home Rehab - CDBG 203,428 47,962 251,390 Home Rehab Earthquake. - HOME 183,306 42,993 226,299 Home Rehab Earthquake - CDBG 63,980 19,194 83,174 Home Rehabilitation Program 0.0 - 3.0% 3,092,426 414,974 3,507,400 Housing loans receivable 23,936,330 1,288,348 25,224,678 Other City loans receivable:
Cultural Arts Center Foundation 0.0% 153,485 - 153,485 Cemetery District 0.0% 74,397 - 74,397 City loans receivable 227,882 - 227,882 Total loans receivable 24,164,212$ 1,288,348$ 25,452,560$ 96 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
61 The composition of loans between the City and the Successor Agency for the year ended June 30, 2021 is as follows:
C. Accounts receivable
Accounts receivable reported under governmental activities as of year -end are reported net of allowance for uncollectibles as follows:
Balance Debt Debt Balance
Receivable Fund Payable Fund June 30, 2020 Incurred Retired June 30, 2021 General Fund Successor Agency - Merged
Tapo Canyon and West End
tax increment
2,200,721$ -$ (2,149,618)$ 51,103$
Accounts
receivable
Allowance for
uncollectibles
Total accounts
receivable, net
General Fund 1,430,077$ (247,409) 1,182,668$
Special Revenue - SHA to CDA Housing Administration 56,524 - 56,524 Streets and Roads 2,500 - 2,500 Nonmajor Governmental Funds 538,124 - 538,124 subtotal 2,027,225 (247,409) 1,779,816
Internal Service Funds 807 - 807 Total 2,028,032$ (247,409)$ 1,780,623$
97 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
62 D. Capital assets
Capital asset activity for the year ended June 30, 2021, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land 10,621,811$ -$ -$ 10,621,811$ Construction-in-progress 23,166,223 2,307,311 (12,253,089) 13,220,445 Total capital assets, not being depreciated 33,788,034 2,307,311 (12,253,089) 23,842,256 Capital assets, being depreciated:
Buildings and improvements 56,328,663 6,524,634 (1,786,745) 61,066,552 Furnishings and equipment 9,663,198 1,885,504 (8,569) 11,540,133 Computers 4,270,784 - - 4,270,784 Vehicles 7,063,484 792,778 (566,251) 7,290,011 Infrastructure 345,520,713 6,036,316 - 351,557,029 Intangibles 10,880,635 162,407 - 11,043,042 Total capital assets being depreciated 433,727,477 15,401,639 (2,361,565) 446,767,551 Less accumulated depreciation for:
Buildings and improvements (26,650,015) (1,382,896) (28,032,911) Furnishings and equipment (6,946,530) (888,005) 7,120 (7,827,415) Computers (3,888,276) (105,943) (3,994,219) Vehicles (5,282,835) (673,847) 557,224 (5,399,458) Infrastructure (171,213,070) (7,849,310) - (179,062,380) Intangibles (7,426,638) (493,903) (7,920,541) Total accumulated depreciation (221,407,364) (11,393,904) 564,344 (232,236,923) Total capital assets, being depreciated, net 212,320,113 4,007,735 (1,797,221) 214,530,628 Governmental activities capital assets, net 246,108,147$ 6,315,046$ (14,050,310)$ 238,372,884$ Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,216,994$ $ - $ - 1,216,994$ Construction-in-progress 10,202,848 12,936,874 (3,870,617) 19,269,105 Total capital assets, not being depreciated 11,419,842 12,936,874 (3,870,617) 20,486,099 Capital assets, being depreciated:
Buildings and improvements 14,634,865 349,176 (34,015) 14,950,026 Furnishings and equipment 9,447,490 58,254 (790,744) 8,715,000 Vehicles 12,967,636 1,829,697 (1,075,804) 13,721,529 Distribution system 216,366,508 2,584,305 - 218,950,813 Total capital assets being depreciated 253,416,499 4,821,431 (1,900,563) 256,337,367 Less accumulated depreciation for:
Buildings and improvements (8,399,737) (362,366) 34,015 (8,728,088) Furnishings and equipment (5,839,053) (359,505) 790,744 (5,407,814) Vehicles (9,791,804) (1,081,444) 1,033,895 (9,839,353) Distribution system (101,527,144) (3,320,188) - (104,847,332) Total accumulated depreciation (125,557,738) (5,123,503) 1,858,654 (128,822,587) Total capital assets, being depreciated, net 127,858,761 9,944,934 (41,909) 127,514,780 Business-type activities capital assets, net 139,278,603$ 22,881,808$ (3,912,526)$ 148,000,879$ 98 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
63 Depreciation expense was charged to functions/programs of the primary government as follows:
E. Construction commitments
The City has active construction projects as of June 30, 2021 . The commitments for governmental fund projects are included in the restricted fund balances. The project commitments for enterprise funds at year end are as follows:
Governmental activities:
General Government 7,870,390$
C
ommunity Services 339,650
Planning (ES) 23,712
Public Ways & Facilities (PW) 2,406,276
Public Safety 753,876
11,393,904$
Business-type activities:
Sanitation 2,415,618$
Waterworks 1,642,195
Transit 1,065,690
5,123,503$
Total depreciation expense-governmental activities
Total depreciation expense-business-type activities
Project Name
Contract
Amount*
Expenditures
to date as of
June 30, 2021
Remaining
Commitments*
Royal Avenue (Pride to Erringer) Sewer Line
Rehabilitation Projects 1,594,996$ 84,075$ 1,510, 921$ Water Quality Plant Energy Related Projects 33,711,566 13,625,922 20,085,644 Small tank Replacements at Well Nos. 31 & 32A 603,027 - 603,027$ Drilling, Construction, Development and Testing for
Replacement Well 32A 1,365,687 385,192 980,495$ Transit CNG Fueling System Upgrade 1,262,612 - 1,262,612$ Total commitments 38,537,888$ 14,095,190$ 24,442,699$ * Amount includes possible contingency.
99 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
64 F. Interfund receivables, payables, and transfers
The interfund amounts between the General fund, the Simi Valley Transit enterprise fund and non- major governmental funds are for short -term loans to cover operations. The interfund amounts between the Successor Housing Agency to Community Development Agency Housing Administration and non-major governmental funds and the General Fund are also for short-term loans to cover operations.
Due to / from other funds:
Receivable Fund Payable Fund Amount
General Simi Valley Transit System $ 9,587,465
Nonmajor governmental funds 931,503
SHA to CDA Housing Administration Nonmajor governmental funds 301 Non
major governmental funds General 1,179
Nonmajor governmental funds Nonmajor governmental funds 7,437 Total $ 10,527,885
Advances to / from other funds:
Receivable Fund Payable Fund
General Public Facility Improvements $ 3,348,381
Internal Service funds 2,344,000
Total $ 5,692,381
100
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
65 The composition of interfund transfers for the year ended June 30, 2021 is as follows:
Transfers From Transfers To Amount Purpose
General fund SHA to Community
Development Agency
Housing
Admi
nistration $ 429,924 Fund housing programs
Street & Roads 18,000 Fund street and road programs Nonmajor
governmental funds 4,046,696
4,494,620
Nonmajor General fund 3,437,633
governmental funds
Streets and roads 565,608 Fund street projects Proprietary fund 204,424 Fund transit operations Nonmajor
governmental funds 1,088,148
5,295,813
Total governmental funds 9,790,433
Transfers From Transfers To Amount Purpose
Proprietary funds General fund 366,112 Contr ibutions for pension costs Nonmajor
governmental funds 959,900
1,326,012
Total proprietary funds 1,326,012
Total transfers $ 11,116,445
Fund Landscape zones, scheduled debt service, and
contributions to replacement funds
Contributions to replacement funds and capital project
funds
Contributions to replacement funds and fund capital
project funds
Fund gas tax, development agreements, and State
Supplemental Law Enforcement Services
101
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
66 G. Long-term debt
The Simi Valley Public Facilities Financing Authority (SVPFFA) was created in June, 2014. It is a blended component unit of the City which has authority to issue bonded debt on behalf of the City for certain types of financing structures, such as lease revenue bonds and certificates of participation. At year -end, outstanding long- term bonded debt was comprised of the following:
• City of Simi Valley 2014A Lease Revenue Refunding Bonds (LRRB):
Original issue amount $18,795,000; interest rates at 2.00% to 3.75%, maturing October 1, 2014-2034. The LRRB are payable in annual installments ranging from $270,000 to $1,445,000. They were issued at a premium, which has been added to the new debt and is being amortized over the life of the bonds. These LRRB were issued to provide financing for full redemption of the 2004 Simi Valley Public Financing Authority Certificates of Participation (COP). Through the refunding of the COP, the City realized net present value savings of $3.2 million or 14.9% of the refunded bonds. The annual lease/debt service payments will be supported by contributions from various City funds based on the benefit received. The identified funds have the long- term financial capacity to support the required payments. In the event of a default, as defined in the lease agreement, notwithstanding anything in the lease agreement or in the indenture to the contrary, there is no right under any circumstances to accelerate the base rental payments or otherwise declare any base rental payments not then in default to be immediately due and payable, nor do the Authority or the Trustee have any right to re-enter or re-let the property except as described in the lease agreement. As of June 30, 202 1, total interest and principal remaining on the bonds is $20,601,406.
• City of Simi Valley Lease Revenue Bonds, Series 2016 NCREBs (New Clean Renewable Energy Bonds) and City of Simi Valley Tax -Exempt Lease, Series 2016:
The City entered into a lease- leaseback arrangement and a lease arrangement with the SVPFFA to pr ovide financing for the NCREBs Solar Equipment and the Tax-Exempt Project for the financing of the acquisition, construction and installation of certain solar energy and other energy efficiency capital improvements to existing City buildings and property. An allocation of new Clean Renewable Energy Bonds was received by the City for $9,226,619, interest rates at 1.5% - 2.5%, maturing September 1, 2036. The Tax -Exempt solar component consisted of $740,459 of bond proceeds also maturing September 1, 2036. As NCREBs financing is restricted only for solar power systems, the Tax -Exempt bonds will be used to finance the re- roofing of City Hall, the resurfacing of the parking lot at the Senior Center, and the installation of electric vehicle chargers at the Civic Center. In the event of a default, as defined in the lease agreement, there is no right under any circumstance to accelerate the lease payments or otherwise declare any lease payments not then in default to be immediately due and payable. 102
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
67 As of June 30, 2021 , total interest and principal remaining on the 2016 NCREBs and Tax Exempt bonds is $10,374,162 and $753,621 respectively.
• 2017 Tax Exempt Equipment Lease Agreement:
The City entered into an agreement with the SVPFFA as lessor and the City of Simi Valley as lessee to provide financing for a replacement (VoIP) telephone system, and energy efficiency upgrades including LED lighting at City facilities, and HVAC system replacement and improvements. The lease agreement obligates the City to make base lease payments to SVPFFA, and SVPFFA assigned such payments to Bank of America. The Simi Valley Senior Center is the asset which was used as collateral for this tax exempt financing. The issue price of the tax exempt bond associated with this transaction is $6,408,600, based on an interest rate of 3.00% per year. In the event of a default, as defined in the lease agreement, there is no right under any circumstance to accelerate the lease payments or otherwise declare any lease payments not then in default to be immediately due and payable. As of June 30, 2021, the total interest and principal remaining on the issuance is $6,215,786.
• 2018 Taxable Equipment Lease/Purchase Agreement:
The City entered into a lease arrangement with Banc of America Leasing & Capital, LLC to provide financing for a purchase and sale agreement and pole license agreement with Southern California Edison (SCE) for the acquisition of streetlights located in Simi Valley. Annual savings of $510,000 in the City’s electrical costs are estimated to be achieved through the owning of the streetlights and their conversion to LED. The newly acquired streetlights act as the pledged asset for this taxable financing. The stated acquisition amount for this transaction is $5,655,845. The type of debt instrument for this private placement financing is certificates of participation/leases , with a stated interest rate of 5.15% and a settlement date of May 15, 2018. In the event of a default, as defined in the lease agreement, there is no right to accelerate any rental payment or otherwise declare any rental payment or other amount payable not then in default to be immediately due and payable. As of June 30, 2021, total interest and principal remaining on the lease agreement is $7,379,289.
• 2019 Taxable Equipment Lease/Purchase Agreement:
On December 10, 2019, the City entered into a lease arrangement with Banc of America Leasing & Capital, LLC to provide financing for the acquisition and installation of certain equipment at the Water Quality Control Plant. The project provides enhanced electrical functions for energy savings as well as replacement and rehabilitation of outdated and worn out equipment. The stated acquisition amount for this transaction is $33,816,566. The type of debt instrument for this private placement financing is certificates of participation/leases with a stated interest rate of 2.309% and maturity date of September 1, 2039. In the event of a 103
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
68 default, as defined in the lease agreement, there is no right to accelerate any rental payment or otherwise declare any rental payment or other amount payable not then in default to be immediately due and payable. As of June 30, 2021 , total interest and principal remaining on the lease agreement is $42,908,891.
Other long-term debt of the City is comprised of:
• Claims and legal services payable of $13,504,945, consisting of general liability and workers’ compensation liability. These liabilities are estimates based on the requirements of Governmental Accounting Standards Board Statement No. 10 and include actuarially estimated claims incurred but not yet reported as of June 30, 2021.
• Compensated absences liability of $7,566,610 at fiscal year -end. This liability consists of accumulated earned, but unused leave of employees charged to the General fund, Enterprise funds and the Workers’ Compensation – Internal Service fund. The liability is liquidated from the funds to which an employee is charged.
The largest portion of the liability (82.0%) is attributable to the General fund.
• Other Post Employment Benefits (OPEB) liability of $ 48,803,302. This liability consists of the actuarially determined liability attributable to governmental activities and business-type activities of the Enterprise funds. OPEB funds health insurance benefits for retired employees. The liability is liquidated from the funds to which an employee is charged. See Note IV E for additional detail regarding this debt.
• Net pension liability of $ 156,756,239. This liability consists of the actuarially determined liability attributable to governmental activities and business -type activities of the Enterprise funds. The liability is liquidated from the funds to which an employee is charged. See IV D for additional detail regarding this debt.
104
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
69 Annual debt service requirements to maturity
The annual requirements to amortize the bonds and advances as of June 30, 2021 , including interest, are as follows:
Governmental Activities
Year Ending
June 30: Principal Interes t Total
2022 800,000$ 666,775$ 1,466,775$ 2023 845,000 625,650 1,470,650 2024 890,000 582,275 1,472,275 2025 935,000 536,650 1,471,650 2026 980,000 488,775 1,468,775 2027-2031 5,715,000 1,644,406 7,359,406 2032-2035 5,480,000 411,875 5,891,875 15,645,000$ 4,956,406$ 20,601,406$
Year Ending
June 30: Principal Interes t Total
2022 372,669$ 277,884$ 650,552$ 2023 386,122 264,187 650,310 2024 400,061 249,997 650,058 2025 414,503 235,294 649,797 2026 429,468 220,060 649,528 2027-2031 2,391,392 851,839 3,243,231 2032-2036 2,855,349 379,508 3,234,857 2037-2037 634,378 11,451 645,829 7,883,943$ 2,490,219$ 10,374,162$
Year Ending
June 30: Principal Interes t Total
2022 32,105$ 15,081$ 47,185$ 2023 32,904 14,271 47,175 2024 33,723 13,442 47,165 2025 34,563 12,592 47,155 2026 35,424 11,720 47,144 2027-2031 190,796 44,754 235,550 2032-2036 215,763 19,476 235,239 2037-2037 46,429 578 47,007 621,707$ 131,914$ 753,621$
2014A Lease Revenue Refunding Bonds
2016 New Clean Renewable Energy Bonds
2016 New Clean Renewable Energy Bonds (Tax Exempt)
105
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
70 Year Ending
June 30: Principal Interes t Total
2022 419,169$ 154,672$ 573,842$ 2023 431,839 142,002 573,842 2024 444,893 128,949 573,842 2025 458,340 115,501 573,842 2026 472,194 101,647 573,841 2027-2031 2,358,765 287,005 2,645,770 2032-2033 675,332 25,476 700,808 5,260,532$ 955,253$ 6,215,786$
Year Ending
June 30: Principal Interes t Total
2022 296,857$ 270,781$ 567,638$ 2023 312,342 255,296 567,638 2024 328,635 239,003 567,638 2025 345,777 221,860 567,637 2026 363,814 203,824 567,638 2027-2031 2,124,325 713,863 2,838,188 2032-2034 1,559,396 143,517 1,702,913 5,331,146$ 2,048,143$ 7,379,289$
Business-type Activities
Year Ending
June 30: Principal Interes t Total
2022 580,283$ 1,739,116$ 2,319,399$ 2023 1,561,098 758,302 2,319,400 2024 1,597,343 722,056 2,319,399 2025 1,634,431 684,969 2,319,400 2026 1,672,380 647,020 2,319,400 2027-2031 8,962,691 2,634,306 11,596,997 2032-2036 10,052,632 1,544,365 11,596,997 2037-2040 7,755,708 362,190 8,117,898 33,816,566$ 9,092,325$ 42, 908,891$
2017 Equipment Leas e (Tax Exempt)
2018 Equipment Lease/Purchase Agreement
2019 Equipment Lease/Purchase Agreement
106
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
71 Changes in long-term liabilities
Long-term liability activity for the year ended June 30, 2021, was as follows:
For governmental activities, the pension, other postemployment benefits, and compensated absences obligations are generally liquidated by the General fund.
Lines of Credit
The City has no available, unused lines of credit.
H. Fund balance designations
Fund balance is categorized as Nonspendable, Restricted, Committed, Assigned or Unassigned. The City Council adopts and amends committed fund balance amounts through an ordinance. The City Manager authorizes assigned amounts for specific purposes pursuant to the policy -making powers granted to him through a resolution.
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
Balances Debt Debt Balances Due Within
June 30, 2020 Incurred Retired June 30, 2021 One Year
Governmental activities:
2014A lease revenue refunding bond 16,410,000$ -$ (765,000)$ 15,645,000$ 800,000$ 2016 New Clean Renewable Energy Bonds (NCREBs) 8,243,627 - (359,684) 7,883,943 372,669 2016 NCREBs tax exempt 653,032 - (31,325) 621,707 32,105 2017 lease agreement 5,667,403 - (406,871) 5,260,532 419,169 2018 lease agreement 5,613,286 - (282,140) 5,331,146 296,857 Add (less) deferred amounts:
Bond premium 1,396,325 - (98,638) 1,297,687 98,636 Total bonds payable 37,983,673 - (1,943,658) 36,040,015 2,019,436 Claims and legal services 13,110,604 2,529,376 (2,135,035) 13,504,945 3,395,822 Compensated absences 6,022,145 275,201 (10,204) 6,287,142 628,714 SoCal Edison on-bill financing 866 - (866) - - Net OPEB obligation 42,228,943 2,732,760 (2,737,689) 42,224,014 - Net pension liability 124,755,200 16,902,443 (12,189,676) 129,467,967 - Governmental activity
long-term liabilities 224,101,431$ 22,439,780$ (19,017,128)$ 227,524,083$ 6,043,972$ Business-type activities:
2019 lease agreement 33,816,566$ -$ -$ 33,816,566$ 580,283$ Compensated absences 1,193,507 85,961 - 1,279,468 127,947 Net OPEB obligation 6,575,127 283,733 (279,572) 6,579,288 - Net pension liability 26,470,389 3,436,741 (2,618,858) 27,288,272 - Business-type activity
long-term liabilities 68,055,589$ 3,806,435$ (2,898,430)$ 68,963,594$ 708,230$ 107
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
72 I. Assessment district bonds
The City has formed several special assessment districts and subsequently issued bonds for the construction of public improvements within these districts. The City acts as an agent for the property owners in collecting assessments for the payment of principal and interest amounts due by the property owners to the assessment district bondholders, and initiating foreclosure proceedings, if appropriate. However, the City is not obligated in any manner for repayment of these special assessment bonds, and the bonds are not reported in the accompanying financial statements.
The outstanding assessment district bonds at June 30, 2021, consisted of the following:
J. Conduit debt obligations
The City has been associated with the issuance of several housing, mortgage and commercial development debt issues. These debt obligations were issued under provisions of State and Federal laws that explicitly state that they do not constitute any indebtedness of the City. The total amount of conduit debt outstanding at June 30, 2021 was $17,305,000. The City is not involved with these bonds in any manner; as such, the conduit debt obligations are not reflected in the accompanying financial statements.
Listed below is a brief description of the bonds outstanding at year-end:
• Multifamily Housing Reve nue Bonds, Series 2002A were issued in the amount of $12,000,000 to finance the Vintage Paseo Senior Apartments; the outstanding principal at June 30, 2021, is $8,235,000.
• Subordinate Multifamily Housing Revenue Bonds, Subordinate Series 2002B were issued in the amount of $3,000,000 to finance the Vintage Paseo Senior Apartments; the outstanding principal at June 30, 2021, is $2,070,000.
• Mutifamily Construction Note was issued December 24, 2015, the amount of $7,000,000 to finance the Camino Esperanza Senior Apartments; the outstanding principal at June 30, 2021, is $7,000,000.
IV. Additional notes to the basic financial statements
A. Arbitrage rebate liability
The City is required to rebate to the federal government the excess investment earnings on bond proceeds if the yield on those earnings exceeds the effective yield on the related bonds issued. Rebates are payable every five years or upon the maturity of the bonds, whichever is earlier. At June 30, 2021, no such amounts were due.
Community Facilities District (District No. 04-1) 5,710,000$ Madera R
oyal (District No. 98-1) 870,000
108
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
73 B. 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.
Two of the City’s four Internal Service Funds, General Liability and Workers’ Compensation, account for and finance the agency’s uninsured risks of loss.
Under this program, the City is self -insured for up to $1 million for each general liability claim and up to $750,000 for each workers’ compensation claim. The City purchases commercial insurance for property loss, as well as for claims in excess of the preceding coverage amounts.
All operating funds of the City participate in the program and make payments to the General Liability and Workers’ Compensation funds based on actuarial estimates of the amounts needed to pay prior and current-year claims and legal expenses.
Liabilities are estimated when a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities also include an amount for claims that have been incurred, but not reported as of the end of the year. Changes in the combined balances of General Liability and Workers’ Compensation funds’ claims and legal liability during the past two years are as follows:
C. Deferred compensation plans
The City offers its employees deferred compensation plans in accordance with Internal Revenue Code Sections 401(k) and 457 (as amended on August 20, 1996 per additional subsection (g)). The plans permit participants to defer a portion of their current salary until future years. The deferred compensation is not available to the employees until termination, retirement, death, or the occurrence of an unforeseeable emergency. Since the City neither owns the funds nor has any administrative involvement and does not perform the investing function for these plans, the assets and related liabilities are not recorded in the City’s financial statements.
D. Pension plans
The City participates in the statewide California Public Employees’ Retirement System (CalPERS) that covers all employees, and the Public Agency Retirement System (PARS) for executive management employees.
Year ended Year ended
June 30, 2021 June 30, 2020
Unpaid claims beginning of fiscal year 13,110,604$ 11,478,591$ Incurred claims (including IBNRs and adjusted claims expense) 2,529,376 5,400,849 Claims payments (2,135,035) (3,768,836)
Unpaid claims, end of fiscal year 13,504,945$ 13,110,604$ 109
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
74 California Public Employees’ Retirement System
Plan Description - All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website - http://www.calpers.ca.gov.
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 10 years of service. The death benefit is the 1957 Survivor Benefit.
Cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows:
Prior to On or after
Hir
e date January 1, 2013 January 1, 2013
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-55
Month benefits, as a % of eligible compensation 2.0% to 2.7% 1.05 to 2.5% Required employee contribution rates 7% 7%
Required employer contribution rates 35.490% 35.490%
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50-57
Month benefits, as a % of eligible compensation 3% 2.0% to 2.7% Required employee contribution rates 9% 12.75%
Required employer contribution rates 55.240% 55.240%
Miscellaneous
Safety
110
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
75 At June 30, 2021 reporting date, the following employees were covered by the benefit terms for each Plan*.
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 the actuary and shall be effective on the July 1 following 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 th e 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 determined rate and the contribution rate of employees.
Funding Policy - Participants are required to contribute 7% (9% or 12% for safety employees) of their annual covered salary. Except for members of the General Unit, the City makes a portion of the contributions required of City employees hired before January 1, 2013 on their behalf and for their account. General Unit employees hired are required to contribute the full 7% of their covered salary. Non-sworn management employees hired prior to July 1, 2010 are required to contribute 4% of their covered salary, and the City contributes 3%. Non- sworn management hired after July 1, 2010 are required to contribute the full 7% of their covered salary. Sworn employees hired prior to July 1, 2010 are required to contribute 9% of their covered salary. Sworn employees hired after July 1, 2013, and are considered new members to the CalPERS system, are required to contribute 12% of their covered salary.
The City is also required to contribute an employer’s cost share at an actuarially determined rate; the rate is 35.490% for miscellaneous (non- safety) employees. Non- sworn management employees hired prior to July 1, 2010 are required to contribute 3.0% of this cost. For police (safety) employees, the employer rate is 55.24% of annual covered payroll for the year ended June 30, 2021 . Sworn employees hired prior to July 1, 2010 are required to contribute 3.0% this cost. The contribution requirements of plan members and the City are established and may be amended by CalPERS.
Miscellaneous Safety
Inacti
ve employees or benificiaries currently receiving benefits 652 167 Inactive employees entitled to but not yet receiving benefits 218 19 Active employees 382 114
1,252 300
111
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
76 Net Pension Liability - The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below:
Discount Rate – The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely res ult in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
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.
Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actu
arial Cost Method
Actuarial Assumption:
Discount Rate 7.15% 7.15%
Inflation 2.625% 2.625%
Projected Salary Increase
Investment Rate of Return 7.25% (1) 7.25% (1)
Mortality
Payroll Growth 2.875% 2.875%
(1) Net of pension plan investment and administrative expenses; includes inflation Entry-Age Normal Cost Method
Varies by Entry Age and Service
Derived using CalPERS' Membership Data for all Funds
112
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
77 The table below reflects projected earnings on pension plan investments:
CalPERS adheres to an Asset Allocation Strategy which establishes asset class allocation policy targets and ranges, and manages those asset class allocations within their policy ranges. CalPERS Investment Belief No. 6 recognizes that strategic asset allocation is the dominant determinant of portfolio risk and return. On December 19, 2017, the CalPERS Board of Administration adopted changes to the current asset allocation as shown in the Policy Target Allocation below expressed as a percentage of total assets.
Miscellaneous Plan
Amount for
Period
(a)
Portion of
Period
(b)
Projected Rate
of Return
(c)
Projected R
Earnings
(a) x (b) x (c)
Beginning Plan Fiduciary Net Position excluding Receivables (1) 218,451,235$ 100% 7.15% 15,619,263$ Net Plan to Plan Resource Movement - 50% 7.15% - Employer Contributions 8,648,934 50% 7.15% 309,199 Employee Contributions 1,952,798 50% 7.15% 69,813 Benefit Payments, including Refunds of Employee Contributions (15,934,383) 50% 7.15% (569,654) Administrative Expense (308,434) 50% 7.15% (11,027) Other Miscellaneous Income/(Expense) (2) - 50% 7.15% - Total Projected Earnings 15,417,594.00$
(1) Includes any beginning of year adjustment. Contribution receivables for employee service buybacks, totaling $334,574 as of June 30, 2019, w ere excluded for purposes of calculating projected earnings on pension plan investments. (2) The increase/(decrease) in contribution receivables for employee service buybacks, totaling ($41,780) during fiscal year 2019-20, w ere excluded for purposes of calculating projected earnings on pension plan investments.
Safety Plan
Amount for
Period
(a)
Portion of
Period
(b)
Projected Rate
of Return
(c)
Projected R
Earnings
(a) x (b) x (c)
Beginning Plan Fiduciary Net Position excluding Receivables (1) 132,320,715$ 100% 7.15% 9,460,931$ Net Plan to Plan Resource Movement - 50% 7.15% - Employer Contributions 6,159,600 50% 7.15% 220,206 Employee Contributions 1,552,725 50% 7.15% 55,510 Benefit Payments, including Refunds of Employee Contributions (9,415,716) 50% 7.15% (336,612) Administrative Expense (186,710) 50% 7.15% (6,675) Other Miscellaneous Income/(Expense) (2) - 50% 7.15% - Total Projected Earnings 9,393,360$
(1) Includes any beginning of year adjustment. Contribution receivables for employee service buybacks, totaling $120,896 as of June 30, 2019, w ere excluded for purposes of calculating projected earnings on pension plan investments. (2) The increase/(decrease) in contribution receivables for employee service buybacks, totaling $20,366 during fiscal year 2019-20, w ere excluded for purposes of calculating projected earnings on pension plan investments.
113
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
78 The asset allocation shown below reflect the allocation of the Public Employees’ Retirement Fund (PERF) in its entirety as of June 30, 2020. The assets for the City’s Miscellaneous and Safety Plans are part of the PERF and are invested accordingly.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of 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 as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short -term (first 10 years) and the long-term (11+ years) using a building- block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short -term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
Asset Class Actual
Allocation
Policy Target
Allocation
Public Equity 53.0% 50.0%
Pri
vate Equity 6.3% 8.0%
Global Fixed Income 28.3% 28.0%
Liquidity 11.3% 13.0%
Real Assets 0.9% 1.0%
Inflation Sensitive Assets 0.0% 0.0%
Other 0.2% 0.0%
Total 100.0% 100.0%
114
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
79 The table below reflects long-term expected real rate of return by asset class.
Changes in the Net Pension Liability – The changes in the Net Pension Liability for each Plan follows:
Asset Class (a)
New
Strategic
Alloc
ation
Real Return
Years 1-10 (b)
Real Return
Years 11 (c)
Global Equity 50.00% 4.80% 5.98%
F
ixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
(a) In CalPERS' Comprehensive Annual Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; inflation assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period.
Miscellaneous Plan: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset)
Balance at June 30, 2020 (measured as of June 30, 2019) 309,514,985$ 218,785,809$ 90,729,176$ Changes for the year:
Service Cost 4,550,099$ -$ 4,550,099$ Interest on Total Pension Liability 21,563,745 - 21,563,745 Changes of Benefit Terms - - - Changes of Assumptions - - - Differences between Expected and Actual Experience (2,231,998) - (2,231,998) Net Plan to Plan Resource Movement - - - Contributions - Employer - 8,648,934 (8,648,934) Contributions - Employees - 1,911,018 (1,911,018) Net Investment Income - 10,929,221 (10,929,221) Benefit Payments, Including Refunds of Employee Contributions (15,934,383) (15,934,383) - Administrative Expenses - (308,434) 308,434 Other Miscellaneous Income/(Expense) - - - Net changes 7,947,463 5,246,356 2,701,107
Balance at June 30, 2021 (measured as of June 30, 2020) 317,462,448$ 224,032,165$ 93,430,283$ Increase (Decrease)
115
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
80 Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1- percentage point higher than the current rate:
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – For the measurement period ended June 30, 2020, the City recognized total pension expense of $18,577,430. The Miscellaneous Plan portion of pension expense was $9,282,963, and Safety Plan portion of pension expense was $9,294,467. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Safety Plan: Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Balance at June 30, 2020 (measured as of June 30, 2019) 192,938,024$ 132,441,611$ 60,496,413$ Changes for the year:
Service Cost 3,652,512$ - 3,652,512$ Interest on Total Pension Liability 13,570,955 - 13,570,955 Changes of Benefit Terms - - - Changes of Assumptions - - - Differences between Expected and Actual Experience (252,858) - (252,858) Net Plan to Plan Resource Movement - - - Contributions - Employer - 6,159,600 (6,159,600) Contributions - Employees - 1,573,091 (1,573,091) Net Investment Income - 6,595,085 (6,595,085) Benefit Payments, Including Refunds of Employee Contributions (9,415,716) (9,415,716) - Administrative Expenses - (186,710) 186,710 Other Miscellaneous Income/(Expense) - - - Net changes 7,554,893 4,725,350 2,829,543
Balance at June 30, 2021 (measured as of June 30, 2020) 200,492,917$ 137,166,961$ 63,325,956$ Increase (Decrease)
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net
Pension Liability 131,152,610$ 89,949,770$
Current Discount Rate 7.15% 7.15%
Net Pension Liability 93,430,283$ 63,325,956$
1% Increase 8.15% 8.15%
Net Pension Liability 61,753,421$ 41,331,445$
116
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
81 $14,890,484 reported as total deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022 . Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
At June 30, 2021 , the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021 . Pension liability and expense is allocated to the City’s proprietary funds based on the portion of Citywide pensionable earnings paid to employees from those funds.
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension Contributions Subsequent to Measurement Date 8,800,908$ -$ Cha
nges of Assumptions - -
Differences between Expected and Actual Experience - (1,352,394) Net Difference between Projected and Actual Earnings on 1,510,625 - Pension Plan Investments
Total 10,311,533$ (1,352,394)$
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension Contributions Subsequent to Measurement Date 6,089,576$ -$ Chan
ges of Assumptions 1,308,277 (20,823)
Differences between Expected and Actual Experience 461,670 (635,378) Net Difference between Projected and Actual Earnings on 1,096,433 - Pension Plan Investments
Total 8,955,956$ (656,201)$
Miscellaneous
Safety
Measurement Period
Ending June 30: Miscellaneous Safety
2021 (1,960,011)$ 572,389$
2022 145,230 449,917
2023 1,075,338 628,222
2024 897,674 559,651
2025 - -
Thereafter - -
Deferred Outflows/(Inflows) of Resources
117
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
82 Public Agency Retirement System, Retirement Enhancement Plan (PARS-REP)
Plan Description - The City established a Public Agency Retirement System, Retirement Enhancement Plan (PARS-REP) for executive management staff: City Council members, City Managers, Assista nt City Managers, City Attorneys, and Department heads employed by the City on or after July 1, 2001 and prior to August 30, 2010. This is a single employer post-employment benefit plan. The plan is closed to any new employees hired after August 30, 2010. PARS is a defined benefit 401(a) tax -qualified multiple agency trust. It meets the requirements of a pension trust under California Government code. The plan provides supplemental retirement benefits in addition to CalPERS. US Bank is the PARS Trustee. Upon meeting the eligibility requirements, plan members receive a monthly lifetime benefit of one- twelfth the sum of: 0.4% of the employee’s final average compensation for service prior to July 1, 2001 plus 0.5% of the employee’s final average compensation for service from July 1, 2001 through August 30, 2010. Employees are eligible to retire the first of the month following or coincident with attainment of age 60, with four or more years of service at termination. Employees must be retired under CalPERS to be eligible to retire under PARS. An annual cost -of-living adjustment is provided annually following commencement of benefits equal to 2% per annum. The City has full discretionary authority to control, amend, modify or terminate this plan at any time.
Funding Policy – The City’s annual pension contribution for PARS was $ 141,661. Plan assets held in trust at June 30, 2021 totaled $1,481,169. PARS funding is based on the bi-annual actuarially required contribution calculated by an independent consultant.
Because the PARS benefit has been frozen, the PARS funding is no longer based on a percentage of gross payroll for Executive Management. The funding amount is based on the demographics of actual remaining plan participants, both active and retired and future plan costs derived from the bi -annual actuarial study. The most recent study was completed for June 30, 2020.
Employees covered – At June 30, 2021 the following employees were covered under PARS:
Inactive employees or benificiaries currently receiving benefits 11 Inactive employees entitled to but not yet receiving benefits 6 Active employees 3
20 118
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
83 Net Pension Liability - PARS
The total pension liability was determined by an actuarial valuation as of the valuation date of June 30, 2019, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date of June 30, 2021 . Any significant changes during this period have been reflected as prescribed by GASB 67 and
68. Actuarial Assumptions.
Inflation 2.50%
Long-term expected rate of return 6.50%, net of investment expense
Mortality rates were based on the following:
Pre-Retirement: Consistent with Non- Industrial rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.
Post-Retirement: Consistent with Non- Industrial rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017.
The long-term expected rate of return on pension investment was determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary’s investment consulting practice as of June 30, 2021. The target allocation and best estimates of the real rates of return for each major asset class are summarized in the following table:
Asset Class Index
Target
Allocation
Long-Term
Expected
Arit
hmetic Real
Rate of Return
Long-Term
Expected
Geometr
ic Real
Rate of Return
US Cash BAML 3-Mon Tbill 6.67% -0. 32% -0.32%
US Core Fixed Income Barclays Aggregate 63.67% 1.37% 1.26% US Equity Market Russell 3000 21.93% 5.33% 3.70%
Foreign Developed Equity MSCI EAFE NR 4.13% 6.27% 4.52% Emerging Markets Equity MSCI EM NR 2.62% 8.64% 4.95%
US REITs FTSE NAREIT Equity REIT 0.98% 5.75% 3.57%
100.00%
Assumed Inflation - Mean 2.30% 2.30%
Assumed Inflation - Standard Deviation 1.16% 1.16%
Portfolio Real Mean Return 2.56% 2.36%
Portfolio Nominal Mean Return 4.86% 4.71%
Portfolio Standard Deviation 5.54%
Long-Term Expected Rate of Return 6.50%
119
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
84 Discount Rate. As of June 30, 2021, the plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return.
Changes in the Net Pension Liability – PARS Plan
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the City, calculated using the discount rate of 6.50%, as well as what the Plan’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower (5.50%) or 1- percentage point higher (7.50%) than the current rate:
The General Fund is liable for PARS plan expenditures. Because the net PARS liability is not material in relation to the government-wide financial statements as a whole, the City has not reported this liability in the government-wide statement of net position.
Total Pension Liability Plan Fiduciary Net Position Net Pension Liability (a) (b) (a) - (b)
Balances as of 6/30/2020 1,679,775$ 1,328,836$ 350,939$ Changes for the year:
Interest on total pension liability 105,068 - 105,068 Effect of economic/demographic gains or losses 32,417 - 32,417 Benefit payments (128,716) (128,716) - Contributions - employer 141,661 (141,661) Net investment income 140,390 (140,390) Administrative expenses (1,002) 1,002 Balances as of 6/30/2021 1,688,544$ 1,481,169$ 207,375$ Increase (Decrease)
1% Decrease (5.50%)
Current Discount Rate
(6.50%) 1% Increase (7.50%)
1,862,445$ 1,688,544$ 1,540,122$ Fiduciary net position 1,481,169 1,481,169 1,481,169 Net pension liability 381,276$ 207,375$ 58,953$ Total pension liability
120
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
85 E. Other post employment benefits
The City provides post-retirement health benefits to the various employee groups, which vary depending upon a retiree’s years of service and bargaining unit. Defined- benefit post-retirement health care coverage is available only to employees hired up to June 20, 2010. Depending on the employee group, those hired after June 20, 2010, receive a defined contribution amount of either $200 or $300 per month, which is deposited into a health retirement account (HRA). There is a five-year employment vesting period before the HRA account can be held by the employee. As newer employees are hired by the agency, a greater percentage will be covered by the defined contribution plan, which allows the City to better control the overall cost of health benefits.
Plan Description - The Simi Valley Other Post Employment Benefit Plan (SVOPEB) is a single-employer defined benefit plan administrated by PFM Asset Management, LLC, partnering with US National Bank Association as Trustee. SVOPEB provides medical and dental benefits to eligible employees and their spouses.
Management, Sworn Management, and Sworn (police) employees’ retiree health benefits are provided per resolution numbers 2018- 03; 2018- 05 & 2018- 05; and 2017- 35, respectively. The benefits vary depending upon a retiree’s years of service and employee unit. The City currently contributes up to $1,500/month for Management employees for employee only, or employee plus one dependent. The City currently pays 100 percent of premiums for health care coverage for employee, or employee plus one dependent, for a specified period, for the Sworn Management and Sworn Units. Additionally, the City provides funding for retiree health benefits to General Unit employees under a defined contribution plan, per resolution number 2017- 40. The defined contribution is currently set by contract at 1.00% of salary for General Unit members.
Sworn Management employees with retirement dates effective July 1, 2005 to November 30, 2017, receive a defined contribution toward retiree dental and vision premiums equal to up to 0.5% of total compensation. Sworn Management employees that retire on or after December 1, 2017 receive a contribution up to $175 per month toward the cost of retiree dental and vision premiums for retirees and eligible dependents. The City also contributes $110,000 per year to the trust established and managed by the Simi Valley Police Officers’ Association for the purposes of funding dental and/or vision benefits for retired Sworn employees who retire on or after July 1, 2005.
121
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
86 A summary of plan benefits by employee groups is as follows:
A summary of plan benefits by employee groups is as follows:
Less Than 10 or M or e
10 Years Years
S ervic e S ervic e
Management employees:*
Employee only PEMHCA 10 years 1 additional year for each year over 20 ($1,500 monthly cap) Employee plus one dependent Minimum** 5 years Additional 6 months for each year over 20 ($1,500 monthly cap) Less Than 10 to 19 20-24 25 or More
10 Years Years Years Years
S ervic e S ervic e S ervic e S ervic e
Police Managers' Association (PMA):***
Employee only PEMHCA 10 years 20 years lifetime coverage Employee plus one dependent Minimum** 5 years 20 years lifetime coverage Police Officers' Association (POA):***
Employee only 2 years 10 years 20 years lifetime coverage Employee plus one dependent 1 year 5 years 20 years lifetime coverage Less Than
10 Years 10 Years
S ervic e S ervic e
General Unit employees:****
Employee only PEMHCA 2 years
Employee plus one dependent Minimum** 1 year
*
**
***
****
More Than
10 Years
S ervic e
4 months for each additional year over 10 up
to maximum of 8 years
2 months for each additional year over 10 up
to maximum of 4 years
Only employees who retire from the City are eligible to receive these benefits. Retirees who do not qualify for listed benefits (or who have exhausted listed benefits) will continue to receive the PEMHCA Minimum, as described below.
This benefit is only for employees hired on or prior to June 20, 2010. Employees hired on or after June 21, 2010 receive a contribution of $200/month to a retiree health savings account.
PEMHCA Minimum: Public Employees' Medical and Hospital Care Act monthly minimum contribution, which was $34.00 in 2019 and $41.70 in 2020.
Employees hired on or after January 1, 2010 (POA) or on or after June 20, 2010 (PMA) are not eligible for retiree medical benefits but will receive a $300/month contribution to a retiree health savings account.
For employees who were hired on or before June 30, 2010, subject to monthly cap for 2019: $698.49 (Employee Only)/$1,396.97 (Employee plus dependent); and for 2020: $698.49 (Employee Only)/$1,396.97 (Employee plus dependent).
Employees hired on or after July 1, 2010 are not eligible to receive retiree medical benefits. 122
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
87 In addition, any forfeitures of health savings account amounts received by the City are remitted to the POA as supplementary contributions to their members’ dental and vision coverage.
At June 30, 2019 (the census date), the following employees were covered by the benefit terms:
Funding Policy and Contributions – The contribution requirement of Management employees is established and may be amended by the City Council. Contribution requirements of Sworn and General Unit employees can be amended via the negotiation process. Currently, contributions are not required from Management and Sworn Plan members. Each employee group’s funds are currently maintained in a separate trust for the benefit of that particular group.
Net OPEB Liability
The City's total OPEB liability was valued as of June 30, 2019 and was used to roll forward and calculate the net OPEB liability measured as of June 30, 2020.
Actuarial Assumptions – Projection of benefits are based on the substantive plan (the plan as understood by the employer and the plan members) based on written plan documents and historical information regarding practices with respect to employer and employee contributions and other factors. In the June 30, 2019 actuarial valuation, the Entry Age Normal method, using level percentage of payroll to allocate OPEB costs over years of service was used. This method determines an attribution period as the difference between the date of hire and the expected date of retirement. Actuarial assumptions used for each of the City’s covered employee groups are presented in the table below. The UAAL is amortized using a closed amortization period of thirty years. Since the June 30, 2019 actuarial valuation is being used, the City has not made an election with respect to an asset smoothing formula, or method.
Category Management PMA POA General Unit
Active employees 130 7 97 222 Inactive employees or beneficiaries currently receiving benefit payments 174 43 85 80 Inactive employees entitled to but not yet receiving benefit payment* - - - - Total 304 50 182 302
123
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
88 The total OPEB liability for the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) was used and developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of the arithmetic real rates of return for each major asset class are summarized in the following table:
Discount rate – The discount rate used to measure the total OPEB liability is 6.0%. This is the expected long- term rate of return on City assets using its current asset allocation provided through its US Bank financial statements. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position is projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return.
Assumptions and Methods
Actuarial Cost Method Entry-age normal, level percent of pay Amortization Method Closed Period, level percent of pay Amortization Period 20 years
Inflation 0.75%
Assumed Payroll Growth 2.750%
Healthcare Trend Rates 7.00%, trending down to 3.84%
Rate of Return on Assets 6.00%
Mortality Rate CalPERS Rates
Retirement Rates CalPERS Rates
Asset Class Allocation Expected Rate of Return
First AM Government Obligations Fd Cl Z 2% 2.25%
Ishares Core SP Small Cap ETF 2% 7.56%
Ishares Core SP Mid Cap ETF 3% 7.31%
Ishares Edge MSCI USA Quality ETF 3% 7.06%
Vanguard Total International Stock \Index 19% 7.69%
Vanguard Total Stock Market Index 29% 7.06%
Vanguard Total Bond Market Index 43% 3.56%
Total/Average 100% 5.62%
124
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
89 Change in the Net OPEB Liability:
OPEB Plan Fiduciary Net Position – Detailed information about OPEB plan’s fiduciary net position is available in the separately issued financial reports of PFM which may be obtained by writing to PFM Asset Management LLC, 50 California Street, Suite 2300, San Francisco, CA 94111.
General Unit Employees (GU) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability
Balance as of Report Date June 30, 2020 13,992,901$ 1,071,281$ 12,921,620$ Changes for the year:
Service Cost 510,597 - 510,597 Interest 805,730 - 805,730 Changes of Benefit Terms - - - Differences between Expected and Actual Experience (260,119) - (260,119) Changes of Assumptions (523,139) - (523,139) Net Investment Income - 80,128 (80,128) Contributions
Employer - City's Expected Contribution - 220,373 (220,373) Employer - Implicit Subsidy - 113,004 (113,004) Expected Benefit Payments (220,373) (220,373) - Implicit Rate Subsidy Fulfilled (113,004) (113,004) - Administrative Expenses - (5,443) 5,443 Other Changes - - - Net changes 199,692 74,685 125,007 Balance as of Report Date June 30, 2021 14,192,593$ 1,145,966$ 13,046,627$ Increase (Decrease)
125
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
90 Non-Sworn Management (NSM) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability
Balance as of Report Date June 30, 2020 16,649,683$ 1, 030,532$ 15,619,151$ Changes for the year:
Service Cost 459,640 - 459,640 Interest 928,684 - 928,684 Changes of Benefit Terms - -
Differences between Expected and Actual Experience 295,893 295,893 Changes of Assumptions (545,631) - (545,631) Net Investment Income - 72,535 (72,535) Contributions
Employer - City's Expected Contribution - 779,664 (779,664) Employer - Implicit Subsidy - 389,699 (389,699) Expected Benefit Payments (779,664) (779,664) - Implicit Rate Subsidy Fulfilled (389,699) (389,699) - Administrative Expenses - (676) 676 Other Miscellaneous Income/(Expense) - - - Net changes (30,777) 71,859 (102,636) Balance as of Report Date June 30, 2021 16,618,906$ 1,102,391$ 15,516,515$ Police Officers' Association (POA) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability
Balance as of Report Date June 30, 2020 16,277,626$ 660,940$ 15,616,686$ Changes for the year:
Service Cost 469,754 - 469,754 Interest 911,990 - 911,990 Changes of Benefit Terms - -
Differences between Expected and Actual Experience 604,901 - 604,901 Changes of Assumptions (778,121) - (778,121) Net Investment Income - 49,289 (49,289) Contributions
Employer - City's Expected Contribution - 805,536 (805,536) Employer - Implicit Subsidy - 234,045 (234,045) Expected Benefit Payments (805,536) (805,536) - Implicit Rate Subsidy Fulfilled (234,045) (234,045) - Administrative Expenses - (3,358) 3,358 Other Miscellaneous Income/(Expense) - - - Net changes 168,943 45,931 123,012 Balance as of Report Date June 30, 2021 16,446,569$ 706,871$ 15,739,698$ Police Managers' Association (PMA) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability
Balance as of Report Date June 30, 2020 4,726,676$ 80,064$ 4,646,612$ Changes for the year:
Service Cost 42,516 - 42,516 Interest 254,682 - 254,682 Changes of Benefit Terms - -
Differences between Expected and Actual Experience 197,762 - 197,762 Changes of Assumptions (160,983) - (160,983) Net Investment Income - 5,594 (5,594) Contributions
Employer - City's Expected Contribution - 350,433 (350,433) Employer - Implicit Subsidy - 124,506 (124,506) Expected Benefit Payments (350,433) (350,433) - Implicit Rate Subsidy Fulfilled (124,506) (124,506) - Administrative Expenses - (406) 406 Other Miscellaneous Income/(Expense) - - - Net changes (140,962) 5,188 (146,150) Balance as of Report Date June 30, 2021 4,585,714$ 85,252$ 4,500,462$ Increase (Decrease)
Increase (Decrease)
Increase (Decrease)
126
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
91 Sensitivity of the net OPEB liability to changes in the discount rate – the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage lower (5.00%) or one percentage point higher (7.00%) follows:
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates – the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.50%) or one percentage point higher (7.50%) than current healthcare cost trend rates follows:
GU NSM POA PMA
1% Decrease 5.00% 5.00% 5.00% 5.00%
Net OPEB Liability (Asset) 14,506,136$ 17,022,017$ 17,910,803$ 4,946,497$ Discount Rate 6.00% 6.00% 6.00% 6.00%
Net OPEB Liability (Asset) 13,046,627$ 15,516,515$ 15,739,698$ 4,500,462$ 1% Increase 7.00% 7.00% 7.00% 7.00%
Net OPEB Liability (Asset) 11,824,381$ 14,215,441$ 13,926,182$ 4,119,787$
GU NSM POA PMA
1% Decrease 5.50% 5.50% 5.50% 5.50%
Net OPEB Liability (Asset) 11,771,256$ 14,191,158$ 13,641,992$ 4,106,622$ Trend Rate 6.50% 6.50% 6.50% 6.50%
Net OPEB Liability (Asset) 13,046,627$ 15,516,515$ 15,739,698$ 4,500,462$ 1% Increase 7.50% 7.50% 7.50% 7.50%
Net OPEB Liability (Asset) 14,594,700$ 17,014,836$ 18,415,325$ 4,961,874$ 127
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
92 OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB
For the year ended June 30, 2021 , the City recognized OPEB expense of $4,987,111.
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
GU NSM POA PMA
978,300$ 227,080$ 524,247$ -$
Changes of Assumptions 4,654,580 3,172,844 5,578,310 - - - 723 3,512 375,962 1,251,070 1,022,473 450,726
Total 6,008,842$ 4,650,994$ 7,125,753$ 454,238$ *Based on expected benefit payments per the City's actuary.
GU NSM POA PMA
(224,967)$ (259,138)$ (8,405,011)$ -$
Changes of Assumptions (498,818) (516,171) (995,644) (86,956) (13,524) (5,497) - - - - - - Total (737,309)$ (780,806)$ (9,400,655)$ (86,956)$ Deferred Outflows of Resources
Differences Between Actual and
Expected Experience
Net Difference Between Projected and
Actual Earnings on OPEB Plan
Investments
City Contributions subsequent to the
Measurement Date*
Deferred Inflows of Resources
Differences Between Actual and
Expected Experience
Net Difference Between Projected and
Actual Earnings on OPEB Plan
Investments
City Contributions subsequent to the
Measurement Date
Report Year
Ending June 30:
GU NSM POA PMA
2022 918,832$ 1,176,848$ (637,088)$ (26,040)$ 2023 918,836 1,176,851 (637,088) (26,036) 2024 920,512 292,120 (635,358) (25,688) 2025 931,042 (26,701) (559,184) (5,680) 2026 937,280 - (537,042) - Thereafter 269,069 - (291,615) - Amount
128
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
93 F. Contingencies and subsequent events
Pending Litigation
As a result of the normal course of operations, the City is involved in a number of legal matters. The accompanying financial statements reflect management’s reasonable estimate of the potential liability associated with these matters, although the actual liability may be more or less than the estimate.
Subsequent Events
The City has evaluated events subsequent to June 30, 2021 to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through March 31, 2022 the date the financial statements were available to be issued. Based upon this evaluation, it was determined that, no subsequent events occurred that require recognition or additional disclosure in the financial statements.
G. Governmental Accounting Standards Board (GASB) Statements issued but not yet effective
The Governmental Accounting Standards Board (GASB) has issued several pronouncements prior to June 30, 2021, that have effective dates that may impact future financial presentations. Management has not yet determined any impact the implementation of the following statements may have on the financial statements of the City.
GASB No. 87
In June 2017, the Governmental Accounting Standards Board issued Statement No. 87 “Leases”. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
GASB No. 89
In June 2018, the Governmental Accounting Standards Board issued Statement No. 89 “Accounting for Interest Cost Incurred before the End of a Construction Period”. The requirements of this Statement are effective for reporting periods beginning after December 15, 2020.
GASB No. 91
In May 2019, the Governmental Accounting Standards Board issued Statement No. 91, “Conduit Debt Obligations.” The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
GASB No. 92
In January 2020, the Governmental Accounting Standards Board issued Statement No. 92, “Omnibus 2020.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
129
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
94 GASB No. 93
In March 2020, the Governmental Accounting Standards Board issued Statement No. 93, “Replacement of Interbank Offered Rates.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
GASB No. 94
In May 2020, the Governmental Accounting Standards Board issued Statement No. 94, “Public-Private and Public-Public Partnerships and Availability Payment Arrangements.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
GASB No. 96
In May 2020, the Governmental Accounting Standards Board issued Statement No. 96, “Subscription-Based Information Technology Arrangements.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.
GASB No. 97
In June 2020, the Governmental Accounting Standards Board issued Statement No. 97, “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plan – an amendment of GASB Statements No. 14, 84, and a suppression of GASB Statement No. 32.” The requirements of this Statement are effective for reporting periods beginning after June 15, 2021.
V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund
A. Reporting entity
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Simi Valley that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government.
On January 30, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-06.
After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private- purpose trust fund) in the financial statements of the City.
130
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
95 The Successor Agency is allocated revenue only in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.
B. Cash and investments
Cash and investments reported in the accompanying financial statements for the Successor Agency to the Simi Valley CDA Private -Purpose Trust Fund consisted of the following:
C. Capital assets
Capital asset activity for the year ended June 30, 2021, was as follows:
D. Deferred outflows of resources
In accordance with GASB Statement 63, in addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense / expenditure) until then.
The following is a summary of deferred outflows of resources for the fiscal year ended June 30, 2021:
2021
Cash and investments pooled with the City 2,398,988$
Cash and investments with fiscal agent 2,101,887
Total cash and investments 4,500,875$
Beginning Ending
Balance Increases Decreases Balance
Land 1,124,174$ 1,124,174$
Capital assets, net 1,124,174$ -$ -$ 1,124,174$ Beginning Ending
Balance Amortization Balance
Fiduciary activities:
2003 tax allocation bonds
Deferred loss on refunding 103,705$ 28,482$ 75,223$ 131
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
96 E. Long-term debt
The Community Development Agency (CDA), formerly a blended component unit of the City, issued tax allocation bonds on behalf of the City. Effective February 1, 2012, this debt was transferred from the CDA to the Successor Agency (private purpose / fiducia ry fund) as a result of dissolution. A description of long- term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2021, follows:
• Successor Agency to Community Development Agency 2003 Tax Allocation Bonds:
Original issue amount $31,795,000; interest rates at 2.0% to 5.0%, maturing September 1, 2003- 2030. The bonds are payable in annual installments ranging from $360,000 to $2,000,000. These bonds were issued to fully refund the 1993 Revenue Bond issue with a carrying amount of $30,245,000. They were issued at a premium, which has been added to the new debt and is being amortized over the life of the bonds. The excess reacquisition price has been netted against the new debt and is being amortized over the remaining life of the refunded debt. The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency.
Total interest and principal remaining on the bonds is $20,583,669, payable through September 2030. For the current fiscal year, principal and interest paid was $2,068,613, and the Redevelopment Property Tax Trust Fund revenue received was $2,796,299.
Annual debt service requirements to maturity, including interest, for the outstanding debt are as follows:
Year Ending
June 30 Principal Interest Total
2022 1,285,000$ 782,856$ 2,067,856$
2023 1,350,000 713,688 2,063,688
2024 1,420,000 642,750 2,062,750
2025 1,490,000 570,000 2,060,000
2026 1,565,000 493,625 2,058,625
2027 and Thereafter 9,090,000 1,180,750 10,270,750 16,200,000$ 4,383,669$ 20,583,669$
132
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2021
97 Fiduciary fund long-term liability activity for the year ended June 30, 2021, was as follows:
F. Deficit fund equity
As of June 30, 2021, the Private Purpose Trust, a component of the City’s Fiduciary funds, has a negative net position of $10,973,895. Below is a summary of the net position.
G. Insurance
The Successor Agency is covered under the City of Simi Valley’s insurance policies.
Therefore, the limitation and self -insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note IV B.
Balances Debt Debt Balances Due Within
June 30, 2020 Incurred Retired June 30, 2021 One Year
Fiduciary activities:
2003 tax allocation bonds 17,420,000$ -$ (1,220,000)$ 16,200,000$ 1,285,000$ Add (less) deferred amounts:
Bond premium 173,517$ - (16,305)$ 157,212$ -$ Fiduciary long-term liabilities 17,593,517$ -$ (1,236,305)$ 16,357,212$ 1,285,000$ Net Position - Beginning Balance (12,883,350)$
Total additions for the year 2,807,918
Total deductions for the year ended (898,463)
Change in net position 1,909,455
Net Position - Ending Balance (10,973,895)$
133
134
Required Supplementary Information
(UNAUDITED)
Required Supplementary
Information (Unaudited)
135
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2021
California Public Employees' Retirement System (CalPERS) Miscellaneous Plan
Last Ten Years*
See independent auditor’s report.
98 Schedule of Changes in Net Pension Liability and Related Ratios for the Measurement Periods Ended June 30 Measurement Period 2020 2019 2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY:
Service Cost 4,550,099$ 4,813,212$ 4,910, 925$ 4,696,120$ 4,496,300$ 4,219,980$ 4,456,595$ Interest on Total Pension Liability 21,563,745 20,976,007 20,191,587 19,479,794 18,974,672 17,854,875 17,085,147 Changes of Assumptions - - (1,963,446) 15,251,995 - (4,159,555) - Difference Between Expected and Actual Experience (2,231,998) (302,371) 163,365 (2,848,866) 3,101,741 (1,925,185) - Benefit Payments, including Refunds of Employee Contributions (15,934,383) (14,476,731) (13,083,973) (11,972,233) (11,156,289) (10,197,516) (9,289,664) Net Change in Total Pension Liability 7,947,463$ 11,010,117$ 10,218,458$ 24,606,810$ 15,416,424$ 5,792,599$ 12,252,078$ Total Pension Liability - Beginning 309,514,985 298,504,868 288,286,410 263,679,600 248,263,176 242,470,577 230,218,499 Total Pension Liability - Ending (a) 317,462,448$ 309,514,985$ 298,504,868$ 288,286,410$ 263,679,600$ 248,263,176$ 242,470,577$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 8,648,934$ 7,638,807$ 6,722,128$ 6,090,808$ 5,483,791$ 4,865,538$ 4,450,276$ Contributions - Employee 1,911,018 1,985,804 2,010,460 1,991,500 2,058,371 2,022,358 2,146,980 Net Investment Income2 10,929,221 13,913,484 16,753,819 20,322,245 1,027,330 4,079, 193 27,589,396 Benefit Payments, including Refunds of Employee Contributions (15,934,383) (14,476,731) (13,083,973) (11,972,233) (11,156,289) (10,197, 516) (9,289,664) Net Plan to Plan Resource Movement - - (488) - - (50) - Administrative Expense (308,434) (149,770) (309,112) (269,013) (112,689) (208,581) - Other Miscellaneous Income/(Expense)1 - 488 (587,009) - - - - Net Change in Fiduciary Net Position 5,246,356$ 8,912,082$ 11,505,825$ 16,163,307$ (2,699,486)$ 560,942$ 24, 896,988$ Plan Fiduciary Net Positions - Beginning2 218,785,809 209,873,727 198,367,902 182,204,595 184,904,081 184,343, 139 159,446,151 Plan Fiduciary Net Positions - Ending (b) 224,032,165$ 218,785,809$ 209,873,727$ 198,367,902$ 182,204,595$ 184,904,081$ 184,343,139$ Plan Net Pension Liability/(Asset) - (a) - (b) 93,430,283$ 90,729,176$ 88,631,141$ 89,918,508$ 81,475,005$ 63,359,095$ 58,127,438$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 70.57% 70.69% 70.31% 68.81% 69.10% 74.48% 76.03% Covered Payroll3 $27,983,387 28,537,793$ 30,206,209$ 28,645,361$ 30,370,147$ 28,365,800$ 28,976,557$ Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 333.88% 317.93% 293.42% 313.90% 268.27% 223.36% 200.60% 1 2
3 Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
* Fiscal year 2015 was the first year of implementation, therefore, only seven years are shown.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.Includes any beginning of year adjustment.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 136
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2021
California Public Employees' Retirement System (CalPERS) Miscellaneous Plan
Last Ten Years*
See independent auditor’s report.
99 Miscellanous Plan - Schedule of Plan Contributions for the Fiscal Years Ended June 30 1 Employer Fiscal Year 2020 2019 2 018 2017 2016 2015
Actuarially Determined Contribution2 $8,648,934 7,602,813$ 6,682,072$ 6,228,044$ 5,483,791$ 4,865,538$ Contributions in Relation to the Actuarially Determined Contribution2 (8,648,934) (7,602,813) (6,682,072) (6,228,044) (5,483,791) (4,865,538) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ Covered Payroll3 $27,983,387 28,537,793$ 30,206,209$ 28,645,361$ 30,370,147$ 28,365,800$ Contributions as a Percentage of Covered Payroll3 30.91% 26.64% 22.12% 21.74% 18.06% 17.15% 1 2
3 Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2017-18 were derived from the June 30, 2015 funding valuation report.
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2017 Funding Valuation Report.
Asset Valuation Method Fair Value of Assets. For details, see June 30, 2017 Funding Valuation Report.
Inflation 2.625%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.875%
Investment Rate of Return 7.25% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Mortality
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
As prescribed in GASB 68, paragraph 46, th e information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.
Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability.
Employer contributions for such plans exceed the actuarially determined contributions.
Includes one year’s payroll growth using 2.75 pe rcent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 137
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2021
California Public Employees' Retirement System (CalPERS) Safety Plan
Last Ten Years*
See independent auditor’s report.
100
Schedule of Changes in Net Pension Liability and Related Ratios Measurement Period 2020 2019 2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY
Service Cost 3,652,512$ 3,770,076$ 3,852,227$ 3,877,677$ 3,487,187$ 3,224,243$ 3,396,111$ Interest on Total Pension Liability 13,570,955 13,042,846 12,408,410 11,900,164 11,477,866 10,911,459 10,489,579 Changes of Assumptions - - (72,863) 10,030,117 - (2,691,829) - Difference Between Expected and Actual Experience (252,858) 974,638 (891,044) (1,477,890) (19,908) (1,874,182) - Benefit Payments, including Refunds of Employee Contributions (9,415,716) (8,814,575) (7,827,368) (7,558,374) (7,069,897) (6,616,558) (6,306,201) Net Change in Total Pension Liability 7,554,893 8,972,985 7,469,362 16,771,694 7,875,248 2,953,133 7,579,489 Total Pension Liability - Beginning 192,938,024 183,965,039 176,495,677 159,723,983 151,848,735 148,895,602 141,316,113 Total Pension Liability - Ending (a) 200,492,917$ 192,938,024$ 183,965,039$ 176,495,677$ 159,723,983$ 151,848,735$ 148,895,602$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 6,159,600$ 5,442,227$ 5,016,294$ 4,740,604$ 4,377,786$ 3,953,058$ 3,604,044$ Contributions - Employee 1,573,091 1,255,565 1,288,167 1,214,011 1,218,073 1,170,676 1,080,530 Net Investment Income 6,595,085 8,313,422 10,040,177 11,967,708 591,543 2,402,091 16,230,427 Other Miscellaneous Income/(Expense)1 - 294 (350,228) - - - - Benefit Payments, including Refunds of Employee Contributions (9,415,716) (8,814,575) (7,827,368) (7,558,374) (7,069,897) (6,616,558) (6,306,201) Net Plan to Plan Resource Movement - - (294) - - - - Administrative Expense (186,710) (90,155) (184,426) (159,674) (66,489) (122,781) - Net Change in Fiduciary Net Position 4,725,350 6,106,778 7,982,322 10,204,275 (948,984) 786,486 14,608,800 Plan Fiduciary Net Position - Beginning2 132,441,611 126,334,833 118,352,511 108,148,236 109,097,220 108,310,734 93,701,934 Plan Fiduciary Net Position - Ending (b) 137,166,961$ 132,441,611$ 126,334,833$ 118,352,511$ 108,148,236$ 109,097,220$ 108,310,734$ Plan Net Pension Liability/(Asset) - (a) - (b) 63,325,956$ 60,496,413$ 57,630,206$ 58,143,166$ 51,575,747$ 42,751,515$ 40,584,868$
68.41% 68.64% 68.67% 67.06% 67.71% 71.85% 72.74%
Covered Payroll3 $12,744,285 12,535,238$ 13,397,653$ 13,342,316$ 13,396,286$ 12,340,656$ 12,471,030$ Plan Net Pension Liability (Asset) as a Percentage of Covered Payro 496.90% 482.61% 430.15% 435.78% 385.00% 346.43% 325.43% 1 2 Includes any beginning of year adjustment.
3 Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
* Fiscal year 2015 was the first year of implementation, therefore, only seven years are shown.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
Changes of Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement(GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan.
Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. 138
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2021
California Public Employees' Retirement System (CalPERS) Safety Plan
Last Ten Years*
See independent auditor’s report.
101
Safety Plan - Schedule of Plan Contributions for the Fiscal Years Ended June 30 1 Employer Fiscal Year 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution2 $6,159,600 5,129,019$ 4,645,981$ 4,658,296$ 4,377,786$ 3,953,058$ Contributions in Relation to the Actuarially Determined Contribution2 (6,159,600) (5,129,019) (4,645,981) (4,658,296) (4,377,786) (3,953,058) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ -$ Covered Payroll3, $12,744,285 12,535,238$ 13,397,653$ 13,342,316$ 13,396,286$ 12,340,656$ Contributions as a Percentage of Covered Payroll3 48.33% 40.92% 34.68% 34.91% 32.68% 32.03% 1 2
3 Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2017-18 were derived from the June 30, 2015 funding valuation report.
Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2017 Funding Valuation Report.
Asset Valuation Method Fair Value of Assets. For details, see June 30, 2017 Funding Valuation Report.
Inflation 2.625%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.875%
Investment Rate of Return 7.25% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
Retirement Age The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Mortality
* Fiscal year 2015 was the first year of implementation, therefore, only seven years are shown.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end.
The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.
Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 139
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2021
Schedule of Changes in the City’s Net OPEB Liability and Related Ratios Last Ten Years*
See independent auditor’s report.
102
2021 2020 2019 2018
Total OPEB liability:
Service cost $ 1,482,507 $ 306,921 $ 317,106 $ 308,619 Interest 2,901,086 2, 604,188 2,375,465 2,429,570 Changes of benefit terms - - - - Differences between expected and actual experience 838,437 (12,977,830) - - Changes of assumptions (2,007,874) 21,577,376 (1,069,576) - Benefit payments (2,156,006) (2,049,633) (1,700,528) (1,635,120) Implicit Subsidy (861,254) - - - Net change in total OPEB liability 196,896 9,461,022 (77,533) 1,103,069 Total OPEB liability-beginning 51,646,886 42,185,864 42,263,397 41,160,328 Total OPEB liability-ending (a) $ 51,843,782 $ 51,646,886 $ 42,185,864 $ 42,263,397 Fiduciary Net Position:
Net investment income $ 207,546 $ 176,710 $ 253,539 $ 328,517 Employer - City's Contribution 2,156,006 2, 049,633 1,700,528 1,635,120 Employer - Implicit Subsidy 861,254 - - - Benefit payments (2,156,006) (2,049,633) (1,700,528) (1,635,120) Implicit Subsidy Credit (861,254) - - - Administrative expense (9,883) (18,407) (19,535) (19,748) Other Miscellaneous Income/(Expense) - (1,299,998) - - Net change in plan fiduciary net position 197,663 (1,141,695) 234,004 308,769 Plan fiduciary net position-beginning 2,842,817 3,984,511 3,750,507 3,441,738 Plan fiduciary net position-ending (b) $ 3,040,480 $ 2,842,817 $ 3,984,511 $ 3,750,507 City's net OPEB liability ending (a)-(b) $ 48,803,302 $ 48,804,069 $ 38,201,353 $ 38,512,890 Plan fiduciary net position as a percentage of
the total OPEB liability 5.9% 5.5% 9.4% 8.9%
Covered-employee payroll $ 35,512,106 $ 33,714,502 $ 35,383,956 $ 37,757,737 City's OPEB liability as a percentage of the
covered employee payroll 137.4% 144.8% 108.0% 102.0%
Notes to Schedule:
The City Adopted GASB 75 for the fiscal year ending June 30, 2018. 140
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2021
Schedule of OPEB Plan Contributions
Last Ten Years*
See independent auditor’s report.
103
2021 2020 2019 2018
Actuarially determined contribution $ 5,495,152 $ 2,049,633 $ 1,659,034 $ 1,635,120 Contributions in relation to the actuarially
determined contribution 3,017,260 (2,049,633) (1,659,034) (1,635,120) Contribution deficiency (excess) $ 2,477,892 $ - $ - $ - Covered-employee payroll $ 35,512,106 $ 33,714,502 $ 35,383,956 $ 37,757,737 Contributions as a percentage of covered-
employee payroll 8.50% 6.08% 4.69% 4.33%
Notes to Schedule:
Assumptions and Methods
Actuarial Cost Method: Entry-age normal, level percent of pay Amortization Method: Closed period, level percent of pay Amortization Period: 20 years
Inflation: 0.75%
Assumed Payroll Growth:
Healthcare Trend Rates:
Rate of Return on Assets:
Mortality Rate:
Retirement Rates:
2.75%
7.00%, trending down to 3.84%
6.00%
CalPERS Rates
CalPERS Rates
141
142
Supplementary Information
Supplementary
Information
143
Non-Major
Governmental Funds
144
104
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
CalHOME Grant fund accounts for the allocation of State funds to support low -income housing programs.
HOME Grant fund accounts for allocation of Federal funds, administered by the State of California, for low- and moderate-income housing programs.
Public, Education, and Government Fees fund accounts for one- percent franchise fees remitted by cable television providers restricted by federal and state legislation for program related expenditures.
Gasoline Tax fund - Portions of the tax per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis.
These revenues are restricted to expenditures for street-related purposes.
Road Maintenance and Rehabilitation Account funds are apportioned to the City by formula pursuant to Streets and Highways Code section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
Transportation funds account for Article 3, Article 8, and Proposition 1B funds received pursuant to State of California, Transportation Development Act and Port Security Bond Act of 2006. These funds are restricted for the improvement and maintenance of street systems, and State allocations for street, mass transit, and safety and security improvements.
Library Services fund accounts for property tax revenue funding and donations from Simi Valley Friends of the Library (a non-profit organization) used for expenditures to operate the Simi Valley Public Library.
Development Related Fees fund accounts for fees paid by developers for infrastructure construction and improvements, traffic and air quality impact mitigation, and program participation in low and moderate income housing programs. This fund also accounts for performance and other deposits held by the City.
Police Grants funds account for funding received from various governmental entities for police activities. Current programs and funding sources include:
• Reimbursement for City’s participation in joint agency drug enforcement efforts from the U.S. Department of Justice, Drug Enforcement Administration, and the State of California,
• State funding for front -line municipal police services, including anti -gang and community crime prevention programs, and
• Local Law Enforcement Block Grant funding from the Bureau of Justice Assistance, U.S. Department of Justice for purchasing police equipment, or expanding existing capabilities.
145
105
Community Development Block Grant (CDBG) fund accounts for the receipt and expenditure of CDBG funds allocated to the City by the U.S. Department of Housing and Urban Development.
Landscape Maintenance District No. 1 fund accounts for benefit assessments, primarily perimeter landscaping in the public rights-of-way. The general fund finances landscape maintenance costs not associated with specific neighborhoods.
Debt Service Funds
2014A Lease Revenue Refunding Bonds fund was established to account for the debt service transactions related to the sale of variable rate lease revenue bonds issued for the purpose of fully refunding the 2004 Certificates of Participation (“2004 Certificates”).
2016 CREBS FTLRB fund accounts for the resources accumulated and payments made for the principal and interest on long- term debt obtained to finance the solar capital projects.
2017 Lease Agreement fund accounts for the resources accumulated and payments made for the principal and interest on long-term debt obtained to finance the replacement of the City telephone system, energy efficient upgrades at City facilities such as LED lighting, and HVAC system replacement and improvements.
2018 Lease Agreement fund accounts for the resources accumulated and payments made for the principal and interest on long- term debt obtained to provide financing for a purchase and sale agreement and pole license agreement with Southern California Edison (SCE) for the acquisition of streetlights located in Simi Valley.
Capital Project Funds
Equipment Replacement funds account for the replacement of personal computers, terminals, and printers; and establish a reserve for the replacement of vehicles.
Geographic Information System (GIS) fund accounts for geographic based information related to economic development, land use, demographic information, mapping for crime analysis, traffic safety management, permit issuance, and work order administration.
Public Facility Improvements fund provides for the building needs of various City facilities, including the expansion of City Hall and the Senior Citizens’ Center.
Financial Information System (FIS) fund was established to replace the City’s legacy Financial Management Information System with a new Financial Information System, and is used to maintain and optimize the FIS system.
Police Capital Projects fund accounts for capital projects related to the police department such as the police shooting range.
Telephone System fund accounts for the replacement of the Citywide telephone system, installed in 1995 and exceeding its system support life.
146
106
Solar Capital Projects fund accounts for the activities related to the acquisition and installation of solar panels on City facilities, including the Library, Senior Citizens’ Center, Police Department, City Hall, and Water Quality Control Plant.
LED Streetlight Project fund accounts for the activities related to the acquisition of City streetlights from SCE and retrofitting of the streetlight bulbs to Light Emitting Diode (LED) technology.
147
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
107
Public, Road
Education & Maintenance
CalHome HOME Government Gasoline & Rehabilitaion
Grant Grant Fees Tax Account
ASSETS
Cash and investments:
Held by City 265,773$ 1,377,239$ 2,326,211$ 23,818$ 2,824,222$ Held by bond trustee - - - - - Accounts receivable (net of allowance for - - - 422,670 uncollectibles)
Taxes receivable - - 69,251 - - Grants receivable - - - - - Interest receivable - - 5,612 - 5,638 Due from other funds 878 7,738 - - - Loans receivable (net of allowance for 1,143,249 2,279,412 - - - uncollectibles)
TOTAL ASSETS 1,409,900$ 3,664,389$ 2,401,074$ 23,818$ 3,252,530$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable -$ 106,229$ -$ -$ -$ Salaries and benefits payable - - - - - Due to other funds - 57,148 - - - Advances from other funds - - - - TOTAL LIABILITIES - 163,377 - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs 1,143,248 2,279,411 - - - Unavailable revenue-public safety - - - - - TOTAL DEFERRED INFLOWS OF RESOURCES 1,143,248 2,279,411 - - -
FUND BALANCES
Restricted
Housing programs 266,652 1,221,601 - - - Public improvements - - - - - Streets and transportation - - - 23,818 3,252,530 Landscape - - - - - Debt service - - - - - Special programs - - 2,401,074 - - Law enforcement - - - - - Committed
Equipment - - - - - Unassigned - - - - - TOTAL FUND BALANCES (DEFICITS) 266,652 1,221,601 2,401,074 23,818 3,252,530
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 1,409,900$ 3,664,389$ 2,401,074$ 23,818$ 3,252,530$ Special Revenue
148
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
108
Landscape
Community Maintenance
Transportation Library Development Police Development District Funds Services Related Fees Grants Block Grant No. 1
ASSETS
Cash and investments:
10,056,347$ 2,179,963$ 13,682,398$ 1,169,838$ -$ -$ Held by City - - - - - - Held by bond trustee - 12 - 115,442 - - Accounts receivable (net of allowance for - uncollectibles)
- - - - - - Taxes receivable - - - - 864,929 - Grants receivable 1,284 4,101 21,670 2,319 - - Interest receivable - - - - - - Due from other funds - - 5,607,256 - 355,364 - Loans receivable (net of allowance for - uncollectibles)
10,057,631$ 2,184,076$ 19,311,324$ 1,287,599$ 1,220,293$ -$ TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
-$ 72,972$ 36,430$ 26,645$ 366,926$ 143,014$ Accounts payable - 3,065 - - - - Salaries and benefits payable - - - 18,125 497,586 366,382 Due to other funds - - - - - - Advances from other funds - 76,037 36,430 44,770 864,512 509,396 TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- - 5,607,256 - 355,364 - Unavailable revenue-housing programs - - - 92,945 - - Unavailable revenue-public safety - - 5,607,256 92,945 355,364 - TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Restricted
- - 4,784,067 - - - Housing programs - - 7,617,624 - - - Public improvements 10,057,631 - 1,265,947 - - - Streets and transportation - - - - - - Landscape - - - - - - Debt service - 2,108,039 - - 417 - Special programs - - - 1,149,884 - - Law enforcement Committed
- - - - - - Equipment - - - - - (509,396) Unassigned 10,057,631 2,108,039 13,667,638 1,149,884 417 (509,396) TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES, DEFERRED INFLOWS OF
10,057,631$ 2,184,076$ 19,311,324$ 1,287,599$ 1,220,293$ -$ RESOURCES AND FUND BALANCES (continued)
Special Revenue
149
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
109
Total 2014A
Nonmajor Lease Revenue 2016 2017 2018
Special Refunding CREBS Lease Lease
Revenue Funds Bonds FTLRB Agreement Agreement
ASSETS
Cash and investments:
Held by City 33,905,809$ -$ -$ -$ -$ Held by bond trustee - - - 1,324,129 - Accounts receivable (net of allowance for 538,124 - - - - uncollectibles)
Taxes receivable 69,251 - - - - Grants receivable 864,929 - - - - Interest receivable 40,624 - - - - Due from other funds 8,616 - - - - Loans receivable (net of allowance for 9,385,281 - - - - uncollectibles)
TOTAL ASSETS 44,812,634$ -$ -$ 1,324,129$ -$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable 752,216$ -$ -$ -$ -$ Salaries and benefits payable 3,065 - - - - Due to other funds 939,241 - - - - Advances from other funds - - - - - TOTAL LIABILITIES 1,694,522 - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs 9,385,279 - - - - Unavailable revenue-public safety 92,945 - - - - TOTAL DEFERRED INFLOWS OF RESOURCES 9,478,224 - - - -
FUND BALANCES
Restricted
Housing programs 6,272,320 - - - - Public improvements 7,617,624 - - - - Streets and transportation 14,599,926 - - - - Landscape - - - - - Debt service - - - 1,324,129 - Special programs 4,509,530 - - - - Law enforcement 1,149,884 - - - - Committed
Equipment - - - - - Unassigned (509,396) - - - - TOTAL FUND BALANCES (DEFICITS) 33,639,888 - - 1,324,129 -
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 44,812,634$ -$ -$ 1,324,129$ -$ Debt Service
150
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
110
Total
Nonmajor Geogr aphic Financial
Debt Equipment Information Public Facility Information
Service Replacement System (GIS) Improvements System (FIS) ASSETS
Cash and investments:
-$ 2,654,183$ 21,031$ 5,589,472$ 2,644,104$ Held by City 1,324,129 - - - - Held by bond trustee - - - - - Accounts receivable (net of allowance for uncollectibles)
- - - - - Taxes receivable - - - - - Grants receivable - 2,569 51 - 6,513 Interest receivable - - - - - Due from other funds - - - - - Loans receivable (net of allowance for uncollectibles)
1,324,129$ 2,656,752$ 21,082$ 5,589,472$ 2,650,617$ TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
- 3,877$ -$ 1,494$ 14,382$ Accounts payable - - - - 5,595 Salaries and benefits payable - - - - - Due to other funds - - - 3,348,381 - Advances from other funds - 3,877 - 3,349,875 19,977 TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- - - - - Unavailable revenue-housing programs - - - - - Unavailable revenue-public safety - - - - - TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Restricted
- - - - - Housing programs - - - - - Public improvements - - - - - Streets and transportation - - - - - Landscape 1,324,129 - - - - Debt service - - - - - Special programs - - - - - Law enforcement - Committed
- 2,652,875 21,082 2,239,597 2,630,640 Equipment - - - - - Unassigned 1,324,129 2,652,875 21,082 2,239,597 2,630,640 TOTAL FUND BALANCES (DEFICITS) 1,324,129$ 2,656,752$ 21,082$ 5,589,472$ 2,650,617$ TOTAL LIABILITIES AND FUND BALANCES (continued)
Capital Projects
151
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
111
Total
Police Nonmajor Total
Capital Telephone Solar Capital LED Streetlight Capital Nonmajor Projects System Projects Project Projects Funds
ASSETS
Cash and investments:
Held by City 285,294$ 165,753$ 56,305$ 403,216$ 11,819,358$ 45,725,167$ Held by bond trustee - - - - - 1,324,129 Accounts receivable (net of allowance for - - - - - 538,124 uncollectibles)
Taxes receivable - - - - - 69,251 Grants receivable - - - - - 864,929 Interest receivable - - - - 9,133 49,757 Due from other funds - - - - - 8,616 Loans receivable (net of allowance for - - - - - 9,385,281 uncollectibles)
TOTAL ASSETS 285,294$ 165,753$ 56,305$ 403,216$ 11,828,491$ 57,965,254$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable -$ -$ -$ -$ 19,753$ 771,969$ Salaries and benefits payable - - - - 5,595 8,660 Due to other funds - - - - - 939,241 Advances from other funds - - - - 3,348,381 3,348,381 TOTAL LIABILITIES - - - - 3,373,729 5,068,251
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs - - - - - 9,385,279 Unavailable revenue-public safety - - - - - 92,945 TOTAL DEFERRED INFLOWS OF RESOURCES - - - - - 9,478,224
FUND BALANCES
Restricted
Housing programs - - - - - 6,272,320 Public improvements - - 56,305 403,216 459,521 8,077,145 Streets and transportation - - - - - 14,599,926 Landscape - - - - - - Debt service - - - - - 1,324,129 Special programs - - - - - 4,509,530 Law enforcement 285,294 - - - 285,294 1,435,178 Committed
Equipment - 165,753 - - 7,709,947 7,709,947 Unassigned - - - - - (509,396) TOTAL FUND BALANCES (DEFICITS) 285,294 165,753 56,305 403,216 8,454,762 43,418,779
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 285,294$ 165,753$ 56,305$ 403,216$ 11,828,491$ 57,965,254$ (concluded)
Capital Projects
152
153
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
112
Public, Road
Education & Maintenance
CalHome HOME G overnment Gasoline & Rehabilitaion
Grant Grant Fees Tax Account
REVENUES
Taxes -$ -$ 281,129$ -$ -$ Use of money and property 131,569 363,888 27,001 - 21,906 From other governments - - - 2,751,655 2,319,450 Grants - - - - - Service charges - - - - - Other revenues - - - - - Total revenues 131,569 363,888 308,130 2,751,655 2,341,356
EXPENDITURES
Current:
General government - - - - - Community services - - 22,103 - - Planning 3,937 124,456 - - - Public ways and facilities - - - - - Public safety - - - - - Total current expenditures 3,937 124,456 22,103 - - Capital outlay - - 311,321 - - Debt service:
Principal - - - - - Interest - - - - - Other - - - - - Total debt service - - - - - Total expenditures 3,937 124,456 333,424 - -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 127,632 239,432 (25,294) 2,751,655 2,341,356
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - Transfers out - - - (2,727,837) (2,533) Total other financing sources (uses) - - - (2,727,837) (2,533) NET CHANGE IN FUND BALANCES 127,632 239,432 (25,294) 23,818 2,338,823 FUND BALANCES - BEGINNING 139,020 982,169 2,426,368 - 913,707 FUND BALANCES (DEFICITS) - ENDING 266,652$ 1,221,601$ 2,401,074$ 23,818$ 3,252,530$ Special Revenue
154
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
113
Landscape
Community Maintenance
Transportation Library Development Police Development District Funds Services Related Fees Grants Block Grant No. 1
REVENUES
-$ 2,292,527$ -$ -$ -$ -$ Taxes - 18,617 440,501 11,600 2 - Use of money and property 4,267,127 - - - - - From other governments - - - 626,392 828,265 - Grants - 1,365 1,664,479 - - 782,222 Service charges - 27,014 1,075,000 - - - Other revenues 4,267,127 2,339,523 3,179,980 637,992 828,267 782,222 Total revenues
EXPENDITURES
Current:
- - - - 678,430 60,169 General government - 2,269,484 - - - - Community services - - - - 149,835 - Planning 114,986 - 156,141 - - 1,594,319 Public ways and facilities - - - 427,675 - - Public safety 114,986 2,269,484 156,141 427,675 828,265 1,654,488 Total current expenditures - - - - - - Capital outlay Debt service:
- - - - - - Principal - - - - - - Interest - - - - - - Other - - - - - - Total debt service 114,986 2,269,484 156,141 427,675 828,265 1,654,488 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
4,152,141 70,039 3,023,839 210,317 2 (872,266) OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
- - - - 200,000 Transfers in (365,004) - (1,730,061) (336,138) - - Transfers out (365,004) - (1,730,061) (336,138) - 200,000 Total other financing sources (uses) 3,787,137 70,039 1,293,778 (125,821) 2 (672,266) NET CHANGE IN FUND BALANCES 6,270,494 2,038,000 12,373,860 1,275,705 415 162,870 FUND BALANCES - BEGINNING 10,057,631$ 2,108,039$ 13,667,638$ 1,149,884$ 417$ (509,396)$ FUND BALANCES (DEFICITS)-ENDING (continued)
Special Revenue
155
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
114
Total 2014A
Nonmajor Lease Reven ue 2016 2017 2018
Special Refunding CREBS Lease Lease
Revenue Funds Bonds FTLRB Agreement Agreement
REVENUES
Taxes 2,573,656$ -$ -$ -$ -$ Use of money and property 1,015,084 - - - - From other governments 9,338,232 - - - - Grants 1,454,657 - - - - Service charges 2,448,066 - - - - Other revenues 1,102,014 - - - - Total revenues 17,931,709 - - - -
EXPENDITURES
Current:
General government 738,599 - - - - Community services 2,291,587 - - - - Planning 278,228 - - - - Public ways and facilities 1,865,446 - - - - Public safety 427,675 - - - - Total current expenditures 5,601,535 - - - - Capital outlay 311,321 - - - Debt service:
Principal - 765,000 391,009 406,871 282,140 Interest - 705,900 306,973 166,970 285,498 Other - 2,650 750 750 2,164 Total debt service - 1,473,550 698,732 574,591 569,802 Total expenditures 5,912,856 1,473,550 698,732 574,591 569,802
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 12,018,853 (1,473,550) (698,732) (574,591) (569,802)
OTHER FINANCING SOURCES (USES)
Transfers in 200,000 1,473,550 698,732 574,592 568,388 Transfers out (5,161,573) - (2,362) (20,934) (107,286) Total other financing sources (uses) (4,961,573) 1,473,550 696,370 553,658 461,102 NET CHANGE IN FUND BALANCES 7,057,280 - (2,362) (20,933) (108,700) FUND BALANCES - BEGINNING 26,582,608 - 2,362 1,345,062 108,700 FUND BALANCES (DEFICITS)-ENDING 33,639,888$ -$ -$ 1, 324,129$ -$ Debt Service
156
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
115
Total
Nonmajor Geographic Financial
Debt Equipment Information Public Facility Information
Service Replacement System (GIS) Improvements System (FIS)
REVENUES
-$ -$ -$ -$ -$ Taxes - 11,667 236 - 30,840 Use of money and property - - - - - From other governments - - - - - Grants - - - - - Service charges - 6,076 - - - Other revenues - 17,743 236 - 30,840 Total revenues
EXPENDITURES
Current:
- - - - - General government - - - - - Community services - - - - - Planning - - - - Public ways and facilities - - - - - Public safety - - - - - Total current expenditures - 866,057 - 223,838 389,618 Capital outlay Debt service:
1,845,020 - - - - Principal 1,465,341 - - - - Interest 6,314 - - - - Other 3,316,675 - - - - Total debt service 3,316,675 866,057 - 223,838 389,618 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
(3,316,675) (848,314) 236 (223,838) (358,778) OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
3,315,262 1,035,900 - 1,433,934 - Transfers in (130,582) - - - - Transfers out 3,184,680 1,035,900 - 1,433,934 - Total other financing sources (uses) (131,995) 187,586 236 1,210,096 (358,778) NET CHANGE IN FUND BALANCES 1,456,124 2,465,289 20,846 1,029,501 2,989,418 FUND BALANCES - BEGINNING 1,324,129$ 2,652,875$ 21,082$ 2,239,597$ 2,630,640$ FUND BALANCES (DEFICITS) - ENDING (continued)
Capital Projects
157
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
116
Total
Police Nonmajor Total
Capital Telephone Solar Capital LED Streetlight Capital Nonmajor Projects System Projects Project Projects Funds
REVENUES
Taxes -$ -$ -$ -$ -$ 2,573,656$ Use of money and property - - - - 42,743 1,057,827 From other governments - - - - - 9,338,232 Grants - - - - - 1,454,657 Service charges - - - - - 2,448,066 Other revenues 75,000 - - - 81,076 1,183,090 Total revenues 75,000 - - - 123,819 18,055,528
EXPENDITURES
Current:
General government - - - - - 738,599 Community services - - - - - 2,291,587 Planning - - - - - 278,228 Public ways and facilities - - - - - 1,865,446 Public safety - - - - - 427,675 Total current expenditures - - - - - 5,601,535 Capital outlay - - - 511,986 1,991,499 2,302,820 Debt service:
Principal - - - - - 1,845,020 Interest - - - - - 1,465,341 Other - - - - - 6,314 Total debt service - - - - - 3,316,675 Total expenditures - - - 511,986 1,991,499 11,221,030
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 75,000 - - (511,986) (1,867,680) 6,834,498
OTHER FINANCING SOURCES (USES)
Transfers in - - 2,362 107,286 2,579,482 6,094,744 Transfers out - (3,658) - - (3,658) (5,295,813) Total other financing sources (uses) - (3,658) 2,362 107,286 2,575,824 798,931 NET CHANGE IN FUND BALANCES 75,000 (3,658) 2,362 (404,700) 708,144 7,633,429 FUND BALANCES - BEGINNING 210,294$ 169,411$ 53,943$ 807,916$ 7,746,618 35,785,350 FUND BALANCES (DEFICITS) - ENDING 285,294$ 165,753$ 56,305$ 403,216$ 8,454,762$ 43,418,779$ (concluded)
Capital Projects
158
Schedules-Budget and
Actual-Individual
159
CITY OF SIMI VALLEY
CALHOME GRANT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
117
Variance with
Budget
Posit
ive
Original Final Actual (Negative)
REVENUES
Use of money and property 32,500$ 32,500$ 131,569$ 99,069$ Total revenues 32,500 32,500 131,569 99,069
EXPENDITURES
Current:
Planning (ES):
Housing programs 30,000 30,000 3,937 26,063 Total expenditures 30,000 30,000 3,937 26,063 NET CHANGE IN FUND BALANCES 2,500 2,500 127,632 125,132 FUND BALANCES - BEGINNING 139,020 139,020 139,020 - FUND BALANCES - ENDING 141,520$ 141,520$ 266,652$ 125,132$ Budgeted Amounts
160
CITY OF SIMI VALLEY
HOME GRANT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
118
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 87,000$ 87,000$ 363,888$ 276,888$
EXPENDITURES
Current:
Planning:
Materials, supplies, and services 500,000 500,000 108,387 391,613 Reimbursements to general fund 20,000 20,000 16,069 3,931 Total expenditures 520,000 520,000 124,456 395,544 NET CHANGE IN FUND BALANCES (433,000) (433,000) 239,432 672,432 FUND BALANCES - BEGINNING 982,169 982,169 982,169 - FUND BALANCES - ENDING 549,169$ 549,169$ 1,221,601$ 672,432$ Budgeted Amounts
161
CITY OF SIMI VALLEY
PUBLIC, EDUCATION, AND GOVERNMENT FEES
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
119
Variance with
Budget
Positive
Orig
inal Final Actual (Negative)
REVENUES
Taxes 275,000$ 275,000$ 281,129$ 6,129$ Use of money and property 15,000 15,000 27,001 12,001 Total revenues 290,000 290,000 308,130 18,130
EXPENDITURES
Current:
Community services:
Materials, supplies and services - - 22,103 (22,103) Total current expenditures - - 22,103 (22,103) Capital outlay - 1,300,000 311,321 988,679 Total expenditures - 1,300,000 333,424 966,576
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 290,000 (1,010,000) (25,294) 984,706
OTHER FINANCING (USES)
Transfers out - - - - NET CHANGE IN FUND BALANCES 290,000 (1,010,000) (25,294) 984,706 FUND BALANCES - BEGINNING 2,426,368 2,426,368 2,426,368 - FUND BALANCES (DEFICITS) - ENDING 2,716,368$ 1,416,368$ 2,401,074$ 984,706$ Budgeted Amounts
162
CITY OF SIMI VALLEY
GASOLINE TAX
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
120
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
From other governments 2,727,837$ 2,727,837$ 2,751,655$ 23,818$ Total revenues 2,727,837 2,727,837 2,751,655 23,818
OTHER FINANCING SOURCES (USES)
Transfers out (2,727,837) (2,727,837) (2,727,837) - NET CHANGE IN FUND BALANCES - - 23,818 23,818
FUND BALANCES - BEGINNING - - - - FUND BALANCES - ENDING -$ -$ 23,818$ 23,818$ Budgeted Amounts
163
CITY OF SIMI VALLEY
ROAD MAINTENANCE & REHABILITATION ACCOUNT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
121
Variance with
Budget
Posit
ive
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 21,906$ 21,906$ From other governments 2,050,329 2,050,329 2,319,450 269,121 Total revenues 2,050,329 2,050,329 2,341,356 291,027
OTHER FINANCING SOURCES (USES)
Transfers out (2,050,329) (2,050,329) (2,533) 2,047,796 NET CHANGE IN FUND BALANCES - - 2,338,823 2,338,823 FUND BALANCES - BEGINNING 913,707 913,707 913,707 - FUND BALANCES - ENDING 913,707$ 913,707$ 3,252,530$ 2,338,823$ Budgeted Amounts
164
CITY OF SIMI VALLEY
TRANSPORTATION FUNDS
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
122
Variance with
Budget
Posit
ive
Original Final Actual (Negative)
REVENUES
Use of money and property 2,500$ 2,500$ -$ (2,500)$ From other governments 4,425,400 4,425,400 4,267,127 (158,273) Grants - - - - Total revenues 4,427,900 4,427,900 4,267,127 (160,773)
EXPENDITURES
Current:
Public ways and facilities:
Materials, supplies and services 30,000 30,000 114,986 (84,986) Total expenditures 30,000 30,000 114,986 (84,986)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,397,900 4,397,900 4,152,141 (245,759)
OTHER FINANCING (USES)
Transfers out (7,481,502) (7,983,561) (365,004) 7,618,557 NET CHANGE IN FUND BALANCES (3,083,602) (3,585,661) 3,787,137 7,372,798 FUND BALANCES - BEGINNING 6,270,494 6,270,494 6,270,494 - FUND BALANCES - ENDING 3,186,892$ 2,684,833$ 10,057,631$ 7,372,798$ Budgeted Amounts
165
CITY OF SIMI VALLEY
LIBRARY SERVICES
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
123
Variance with
Budget
Positive
Orig
inal Final Actual (Negative)
REVENUES
Taxes 2,292,527$ 2,292,527$ 2,292,527$ -$
Use of money and property 4,000 4,000 18,617 14,617 Service charges 5,000 5,000 1,365 (3,635) Other revenues 75,000 75,000 27,014 (47,986) Total revenues 2,376,527 2,376,527 2,339,523 (37,004)
EXPENDITURES
Current:
Community services:
Materials, supplies and services 2,481,408 3,462,110 2,269,484 1,192,626 Total expenditures 2,481,408 3,462,110 2,269,484 1,192,626
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (104,881) (1,085,583) 70,039 1,155,622
OTHER FINANCING (USES)
Transfers out - - - - NET CHANGE IN FUND BALANCES (104,881) (1,085,583) 70,039 1,155,622 FUND BALANCES - BEGINNING 2,038,000 2,038,000 2,038,000 - FUND BALANCES - ENDING 1,933,119$ 952,417$ 2,108,039$ 1,155,622$ Budgeted Amounts
166
CITY OF SIMI VALLEY
DEVELOPMENT RELATED FEES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
124
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 330,800$ 330,800$ 440,501$ 109,701$ Service charges 185,500 185,500 1,664,479 1,478,979 Other revenues - - 1,075,000 1,075,000 Total revenues 516,300 516,300 3,179,980 2,663,680
EXPENDITURES
Current:
Public ways and facilities (PW):
Materials, supplies and services 114,000 242,552 156,141 86,411
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 402,300 273,748 3,023,839 2,750,091
OTHER FINANCING SOURCES (USES)
Transfers out (1,730,061) (1,730,061) (1,730,061) -
Total other financing sources (uses) (1,730,061) (1,730,061) (1,730,061) - NET CHANGE IN FUND BALANCES (1,327,761) (1,456,313) 1,293,778 2,750,091 FUND BALANCES - BEGINNING 12,373,860 12,373,860 12,373,860 - FUND BALANCES - ENDING 11,046,099$ 10,917,547$ 13,667,638$ 2,750,091$ Budgeted Amounts
167
CITY OF SIMI VALLEY
POLICE GRANTS
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
125
Variance with
Budget
Positive
Origin
al Final Actual (Negative)
REVENUES
Use of money and property 17,000$ 17,000$ 11,600$ (5,400)$ Grants 642,100 804,929 626,392 (178,537) Total revenues 659,100 821,929 637,992 (183,937)
EXPENDITURES
Current:
Public safety:
Material, supplies and services 413,500 620,420 427,675 192,745
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 245,600 201,509 210,317 8,808
OTHER FINANCING SOURCES (USES)
Transfers out (272,500) (386,300) (336,138) 50,162 Total other financing sources (uses) (272,500) (386,300) (336,138) 50,162 NET CHANGE IN FUND BALANCES (26,900) (184,791) (125,821) 58,970 FUND BALANCES - BEGINNING 1,275,705 1,275,705 1,275,705 - FUND BALANCES - ENDING 1,248,805$ 1,090,914$ 1,149,884$ 58,970$ Budgeted Amounts
168
CITY OF SIMI VALLEY
COMMUNITY DEVELOPMENT BLOCK GRANT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
126
Variance with
Budget
Posit
ive
Original Final Actual (Negative)
REVENUES
Use of money and property 31,800$ 31,800$ 2$ (31,798)$ Grants 653,400 1,019,022 828,265 (190,757) Total revenues 685,200 1,050,822 828,267 (222,555)
EXPENDITURES
Current:
General government:
Reimbursement to general fund 110,304 110,209 110,209 - Other programs 391,978 1,325,235 568,221 757,014 Total general government 502,282 1,435,444 678,430 757,014 Planning
Supplies and materials 165,708 193,751 149,835 43,916 Total planning 165,708 193,751 149,835 43,916 Total expenditures 667,990 1,629,195 828,265 800,930 NET CHANGE IN FUND BALANCES 17,210 (578,373) 2 578,375 FUND BALANCES - BEGINNING 415 415 415 - FUND BALANCES (DEFICITS) - ENDING 17,625$ (577,958)$ 417$ 578,375$ Budgeted Amounts
169
CITY OF SIMI VALLEY
LANDSCAPE MAINTENANCE DISTRICT NO. 1
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
127
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 15,700$ 15,700$ -$ (15,700)$ Service charges 787,800 787,800 782,222 (5,578)$ Total revenues 803,500 803,500 782,222 (21,278)
EXPENDITURES
Current:
General government:
Reimbursement to general fund 317,901 317,901 60,169 257,732 Public ways and facilities:
Landscape maintenance contract 1,001,330 1,001,330 939,117 62,213 Utilities 511,363 511,363 655,202 (143,839) Total public ways and facilities 1,512,693 1,512,693 1,594,319 (81,626) Total expenditures 1,830,594 1,830,594 1,654,488 176,106
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,027,094) (1,027,094) (872,266) 154,828
OTHER FINANCING SOURCES (USES)
Transfers in 200,000 200,000 200,000 - NET CHANGE IN FUND BALANCES (827,094) (827,094) (672,266) 154,828 FUND BALANCES - BEGINNING 162,870 162,870 162,870 - FUND BALANCES (DEFICITS) - ENDING (664,224)$ (664,224)$ (509,396)$ 154,828$ Budgeted Amounts
170
Internal Service and
Fiduciary Funds
171
172
CITY OF SIMI VALLEY
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
128
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
ASSETS
Current assets:
Cash and investments 3,889,118$ 18,099,744$ 213,919$ 445,234$ 22,648,015$ Customer receivable - 807 - - 807 Interest receivable 8,256 41,826 463 1,095 51,640 TOTAL ASSETS 3,897,374 18,142,377 214,382 446,329 22,700,462
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions - 77,861 - - 77,861 Related to other postemployment benefits - 30,608 - - 30,608 Total deferred outflows of resources - 108,469 - - 108,469
LIABILITIES
Current liabilities:
Accounts payable 23,052 941 - - 23,993 Salaries and benefits payable - 6,182 - - 6,182 Compensated absences - 3,130 - - 3,130 Claims and legal services payable 1,313,395 2,082,427 - - 3,395,822 Total current liabilities 1,336,447 2,092,680 - - 3,429,127 Noncurrent liabilities:
Advances from other funds - 2,344,000 - - 2,344,000 Compensated absences - 28,174 - - 28,174 Claims and legal services payable 2,121,218 7,987,907 - - 10,109,125 Net pension liability - 588,320 - - 588,320 Net other postemployment benefits obligation - 87,577 - - 87,577 Total noncurrent liabilities 2,121,218 11,035,978 - - 13,157,196 TOTAL LIABILITIES 3,457,665 13,128,658 - - 16,586,323
DEFERRED INFLOWS OF RESOURCES
Related to pensions - 15,077 - - 15,077 Related to other post employment benefits - 4,526 - - 4,526 Total deferred inflows of resources - 19,603 - - 19,603
NET POSITION
Unrestricted 439,709 5,102,585 214,382 446,329 6,203,005 TOTAL NET POSITION 439,709$ 5,102,585$ 214,382$ 446,329$ 6,203,005$ 173
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
129
Workers'
Liability Compens ation GIS/Permits FIS
Insurance Insurance Operations Operations Total
OPERATING REVENUES
Total charges for sales and services 1,963,870$ 4,099,172$ 95,200$ -$ 6,158,242$
OPERATING EXPENSES
Salaries and benefits - 372,636 - - 372,636 Excess insurance premiums 689,700 341,730 - - 1,031,430 Claims and legal expenses 892,564 1,417,073 - - 2,309,637 Reduction of reserves 75,569 189,340 - - 264,909 General administration 140,500 126,000 - - 266,500 Other - 1,672 60,717 69,696 132,085 Total operating expenses 1,798,333 2,448,451 60,717 69,696 4,377,197 OPERATING INCOME (LOSS) 165,537 1,650,721 34,483 (69,696) 1,781,045 NONOPERATING REVENUES AND EXPENSES:
Interest 39,384 10,026 2,157 5,273 56,840 Fair market value adjustment - - - - Total non-operating expenses 39,384 10,026 2,157 5,273 56,840 INCOME (LOSS) BEFORE TRANSFERS 204,921 1,660,747 36,640 (64,423) 1,837,885
TRANSFERS
Transfers in - - - - - Transfers out (3,000) (3,200) - - (6,200) Total transfers (3,000) (3,200) - - (6,200) CHANGE IN NET POSITION 201,921 1,657,547 36,640 (64,423) 1,831,685 NET POSITION-BEGINNING 237,788 3,445,038 177,742 510,752 4,371,320 NET POSITION-ENDING 439,709$ 5,102,585$ 214,382$ 446,329$ 6,203,005$ 174
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
130
Workers'
Liability Compens ation GIS/Permits FIS
Insurance Insurance Operations Operations Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from service charges
and other revenues (net of refunds) 1,963,870$ 4,099,172$ 95,200$ -$ 6,158,242$ Cash paid for salaries and benefits - (369,431) - - (369,431) Cash paid for general administration (140,500) (126,000) - - (266,500) Cash paid for services (863,120) (6,814) (64,717) (81,696) (1,016,347) Cash paid for insurance premiums and claims (734,871) (1,634,145) - - (2,369,016) Net cash provided (used) by operating activities 225,379 1,962,782 30,483 (81,696) 2,136,948 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers to other funds (3,000) (3,200) - (6,200) Cash used by noncapital financing activities (3,000) (3,200) - - (6,200) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments 42,134 35,873 2,342 6,302 86,651 Cash provided by investing activities 42,134 35,873 2,342 6,302 86,651 NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 264,513 1,995,455 32,825 (75,394) 2,217,399 CASH AND INVESTMENTS, BEGINNING OF YEAR 3,624,605 16,104,289 181,094 520,628 20,430,616 CASH AND INVESTMENTS, END OF YEAR 3,889,118$ 18,099,744$ 213,919$ 445,234$ 22,648,015$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) 165,537$ 1,650,721$ 34,483$ (69,696)$ 1,781,045$ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
(Increase) decrease in prepaid expenses - (13,207) - - (13,207) Increase (decrease) in accounts payable (20,501) (5,142) (4,000) (12,000) (41,643) Increase (decrease) in accrued payroll - (668) - - (668) Increase (decrease) in compensated absences - (2,973) - - (2,973) Increase (decrease) in claims and legal services payable 80,343 313,998 - - 394,341 Increase (decrease) net pension liability - 19,982 - - 19,982 Increase (decrease) net other postemployment benefits liability - 71 - - 70 Total adjustments 59,842 312,061 (4,000) (12,000) 355,903 Net cash provided (used) by operating activities 225,379$ 1,962,782$ 30,483$ (81,696)$ 2,136,948$ 175
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF NET POSITION
PRIVATE PURPOSE TRUST FUND
JUNE 30, 2021
131
Community Merged
Development Tapo Canyon Redevelopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
ASSETS
Cash and investments:
Held by City -$ (110,369)$ 1$ 2,366,201$ Held by bond trustee - - - - Interest receivable - - - 1,979 Capital assets not being depreciated - 1,124,174 - - TOTAL ASSETS - 1,013,805 1 2,368,179
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - - - -
TOTAL DEFERRED OUTFLOWS OF RESOURCES - - - -
LIABILITIES
Accrued interest payable - - - - Loans payable - City - 51,103 - - Long-term debt: - - - - Due within one year - - - - Due in more than one year - - - - TOTAL LIABILITIES - 51,103 - -
NET POSITION
Held in trust for other purposes -$ 962,702$ 1$ 2,368,179$ (continued)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 176
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF NET POSITION
PRIVATE PURPOSE TRUST FUND
JUNE 30, 2021
132
Total Successor
2003 Agency to the
Tax Allocation Simi Valley CDA
Refunding CDA Private-Purpose
Bonds Projects Trust Fund
ASSETS
Cash and investments:
104,146$ 39,009$ 2,398,988$ Held by City 2,101,887 - 2,101,887 Held by bond trustee 573 94 2,646 Interest receivable - 1,124,174 Capital assets not being depreciated 2,206,607 39,103 5,627,695 TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
75,223 75,223 Deferred loss on refunding 75,223 - 75,223 TOTAL DEFERRED OUTFLOWS OF RESOURCES
LIABILITIES
268,498 - 268,498 Accrued interest payable - 51,103 Loans payable - City - Long-term debt:
1,285,000 - 1,285,000 Due within one year 15,072,212 - 15,072,212 Due in more than one year 16,625,710 - 16,676,813 TOTAL LIABILITIES
NET POSITION
(14,343,881)$ 39,103$ (10,973,895)$ Held in trust for other purposes (concluded)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 177
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF CHANGES IN NET POSITION
PRIVATE PURPOSE TRUST FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
133
Community Merged
Development Tapo Canyon Redevelopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
ADDITIONS
Property taxes -$ -$ -$ 2,796,299$ Investment earnings - - - 82 Transfers in 51,484 2,149,618 - - TOTAL ADDITIONS 51,484 2,149,618 - 2,796,381
DEDUCTIONS
Administrative expenses - - - - Interest and fiscal agency expenses of former - - - - Simi Valley Community Development Agency
Contributions to other governments 51,484 - - Transfers out - - - 4,265,513 TOTAL DEDUCTIONS 51,484 - - 4,265,513 CHANGE IN NET POSITION - 2,149,618 - (1,469,132) NET POSITION - BEGINNING (DEFICIT) - (1,186,916) 1 3,837,311 NET POSITION - ENDING (DEFICIT) -$ 962,702$ 1$ 2,368,179$ (continued)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 178
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF CHANGES IN NET POSITION
PRIVATE PURPOSE TRUST FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
134
Total Successor
2,003 Agency to the
Tax All
ocation Simi Valley CDA
Refunding CDA Private-Purpose
Bonds Projects Trust Fund
ADDITIONS
-$ -$ 2,796,299$ Property taxes 11,099 438 11,619 Investment earnings 2,066,933 - 4,268,035 Transfers in 2,078,031 438 7,075,952 TOTAL ADDITIONS
DEDUCTIONS
7,250 - 7,250 Administrative expenses 839,729 - 839,729 Interest and fiscal agency expenses of former Simi Valley Community Development Agency
- 51,484 Contributions to other governments 2,522 - 4,268,035 Transfers out 849,501 - 5,166,498 TOTAL DEDUCTIONS 1,228,531 438 1,909,455 CHANGE IN NET POSITION (15,572,411) 38,665 (12,883,350) NET POSITION - BEGINNING (DEFICIT) (14,343,880)$ 39,103$ (10,973,895)$ NET POSITION - ENDING (DEFICIT) (concluded)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 179
CITY OF SIMI VALLEY
COMBINING STATEMENT OF NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2021
135
City Assessment
Agen
cy Districts - City Total
Fund of Simi Valley Custodial Funds
ASSETS
Current assets:
Cash and investments:
Held by City 5,744,588$ 1,385,346$ 7,129,934$ Held by bond trustee - 1,028,673 1,028,673 Accounts receivable - 3,008 3,008 TOTAL ASSETS 5,744,588 2,417,027 8,161,615
LIABILITIES
Accounts payable 62,084$ 2,767$ 64,851$ Deposits 5,682,504 - 5,682,504 Due to bondholders - 2,054,364 2,054,364 TOTAL LIABILITIES 5,744,588 2,057,131 7,801,719
NET POSITION (DEFICIT)
Held in trust for other purposes -$ 359,896$ 359,896$ 180
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
136
City Assessment
Agency Di
stricts - City Total
Fund of Simi Valley Custodial Funds
ADDITIONS
Other taxes -$ 440,032$ 440,032$ Investment earnings - 12,589 12,589 TOTAL ADDITIONS - 452,621 452,621
DEDUCTIONS
Administrative expenses - 15,997 15,997 Interest and fiscal agency expenses - 384,575 384,575 TOTAL DEDUCTIONS - 400,572 400,572 CHANGE IN NET POSITION - 52,049 52,049 NET POSITION - BEGINNING - 307,847 307,847 NET POSITION - ENDING -$ 359,896$ 359,896$ 181
182
STATISTICAL SECTION
STATISTICAL SECTION
183
184
SOURCE:
Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year.
137
STATISTICAL SECTION
(UNAUDITED)
This section 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.
PAGE
Financial Trends
These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. ............. 1 38
Revenue Capacity
These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. ........................................................ 1 48
Debt Capacity
These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. .......................................................................................... 154
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader under- stand the environment within which the government’s financial activities take place. .. 1 58
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. ...................................................... 160
185
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
138
2011-12 2012-13 2013-145 2014-15 2015-16
Governmental activities
Net investment in capital assets 185,373,875$ 182,759,929$ 186,806,245$ 207,788,585$ 211,751,365$ Restricted 68,151,365 61,520,939 58,246,665 57,372,815 57,552,738 Unrestricted 37,498,659 34,169,932 37,002,698 (55,691,639) (52,859,886) Total governmental activites net position 291,023,899$ 278,450,800$ 282,055,608$ 209,469,761$ 216,444,217$ Business-type activities
Net investment in capital assets 131,301,986$ 129,933,391$ 132,775,502$ 141,770,140$ 143,093,105$ Restricted 6,472,751 5,886,068 4,894,656 4,716,713 5,140,128 Unrestricted 43,346,788 42,641,507 38,232,485 15,841,185 17,627,461 Total business-type activities net position 181,121,525$ 178,460,966$ 175,902,643$ 162,328,038$ 165,860,694$ Primary Government
Net investment in capital assets 316,675,861$ 312,693,320$ 319,581,747$ 349,558,725$ 354,844,470$ Restricted 74,624,116 67,407,007 63,141,321 62,089,528 62,692,866 Unrestricted 80,845,447 76,811,439 75,235,183 (39,850,454) (35,232,425) Total primary government net position 472,145,424$ 456,911,766$ 457,958,251$ 371,797,799$ 382,304,911$ Continued
Fiscal Year
186
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
139
2016-17 2017-18 2018-19 2019-20 2020-21
Governmental activities
210,531,356$ 196,724,305$ 208,951,633$ 209,763,040$ 203,826,589$ Net investment in capital assets 64,139,877 71,851,898 60,704,865 62,018,594 78,265,866 Restricted (62,293,358) (88,047,192) (90,524,428) (89,407,109) (83,168,701) Unrestricted 212,377,875$ 180,529,011$ 179,132,070$ 182,374,525$ 198,923,754$ Total governmental activites net position Business-type activities
141,317,489$ 139,670,875$ 137,805,536$ 139,278,603 133,644,109 Net investment in capital assets 5,941,420 7,011,040 7,874,785 7,874,785 9,843,643 Restricted 19,496,282 18,695,056 24,888,703 30,472,607 43,093,859 Unrestricted 166,755,191$ 165,376,971$ 170,569,024$ 177,625,995$ 186,581,611$ Total business-type activities net position Primary Government
351,848,845$ 336,395,180$ 346,757,169$ 349,041,643$ 337,470,698$ Net investment in capital assets 70,081,297 78,862,938 68,579,650 69,893,379 88,109,509 Restricted (42,797,076) (69,352,136) (65,635,725) (58,934,502) (40,074,842) Unrestricted 379,133,066$ 345,905,982$ 349,701,094$ 360,000,520$ 385,505,365$ Total primary government net position Concluded
Fiscal Year
187
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
140
2011-12 2012-13 2013-14 2014 -15 2015-16
Expenses
Governmental activities:
General government 15,257,184$ 19,086,724$ 19,924,154$ 19,604,979$ 16,442,755$ Community services 4,385,668 4,441,851 6,042,418 6,264,358 6,397,826 Planning 7,606,116 5,852,282 5,665,265 5,699,916 6,308,221 Public ways and facilities 16,585,197 16,902,636 17,004,864 16,822,400 16,641,718 Public safety 33,242,551 31,460,391 30,566,135 31,445,540 31,286,515 Interest on long-term debt 2,044,426 1,206,096 1,059,055 265,922 720,840 Refunding bond issuance costs - - - - 194,069 Total governmental activities expenses 79,121,142 78,949,980 80,261,891 80,103,115 77,991,944 Business-type activities:
Sanitation 14,286,220 15,050,164 17,180,903 16,136,164 14,845,944 Waterworks district no. 8 33,913,655 37,542,008 40,980,119 37,984,287 34,249,031 Transit 6,087,068 6,369,369 6,207,520 6,722,692 7,117,042 Total business-type activities expenses 54,286,943 58,961,541 64,368,542 60,843,143 56,212,017 Total primary government expenses 133,408,085$ 137,911,521$ 144,630,433$ 140,946,258$ 134,203,961$ Program Revenues
Governmental activities:
Charges for services:
General government 298,136$ 281,940$ 380,835$ 531,683$ 1,606,097$ Community services 686,018 788,384 911,308 882,739 1,109,053 Planning 1,893,951 1,915,769 2,191,796 2,202,730 2,738,543 Public ways and facilities 1,795,810 1,651,506 3,322,178 1,913,193 1,821,043 Public safety 844,549 837,559 854,386 866,031 771,002 Operating grants and contributions 9,208,075 8,946,791 11,617,046 12,519,780 9,643,713 Capital grants and contributions 1,799,184 4,959,909 11,108,870 28,819,982 13,530,222 Total governmental activities program revenues 16,525,723 19,381,858 30,386,419 47,736,138 31,219,673 Business-type activities:
Charges for services:
Sanitation 14,600,252 14,733,151 14,831,706 14,567,947 16,047,248 Waterworks district no. 8 33,332,611 35,285,062 37,042,247 33,215,428 30,877,802 Transit 467,415 427,115 415,476 401,369 430,804 Operating grants and contributions 2,656,313 2,3 76,527 2,573,874 2,526,193 2,602,009 Capital grants and contributions 1,832,677 1,172,661 4,016,047 11,698,157 5,458,314 Total business-type activities program revenues 52,889,268 53,994,516 58,879,350 62,409,094 55,416,177 Total primary governmental program revenues 69,414,991$ 73,376,374$ 89,265,769$ 110,145,232$ 86,635,850$ Net (Expense)/Revenue
Governmental activities (62,595,419) (59,568,122) (49,875,472) (32,366,977) (46,772,271) Business-type activities (1,397,675) (4,967,025) (5,489,192) 1,565,951 (795,840) Total primary government net expense (63,993,094)$ (64,535,147)$ (55,364,664)$ (30,801,026)$ (47,568,111)$ Continued
Fiscal Year
188
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
141
2016-17 2017-18 2018-19 2019-20 2020-21
Expenses
Governmental activities:
13,323,582$ 18,661,104$ 17,720,443$ 19,516,513$ 16,936,266$ General government 7,068,775 7,469,961 7,234,363 6,523,639 6,568,970 Community services 6,001,235 6,459,507 6,002,066 3,840,624 6,739,637 Planning 18,569,074 19,580,854 19,651,601 23,659,432 19,921,676 Public ways and facilities 34,501,473 38,809,004 36,836,767 36,691,093 37,445,831 Public safety 937,079 1,230,782 1,440,347 1,466,885 1,356,832 Interest on long-term debt - - - - - Refunding bond issuance costs 80,401,218 92,211,212 88,885,587 91,698,185 88,969,212 Total governmental activities expenses Business-type activities:
18,151,061 18,222,816 17,375,318 17,324,800 18,985,485 Sanitation 36,967,538 42,900,423 40,552,517 42,895,822 48,250,272 Waterworks district no. 8 7,369,511 9,135,850 9,387,703 8,839,284 8,222,624 Transit 62,488,110 70,259,089 67,315,538 69,059,905 75,458,381 Total business-type activities expenses 142,889,328$ 162,470,301$ 156,201,125$ 160,758,090$ 164,427,593$ Total primary government expenses Program Revenues
Governmental activities:
Charges for services:
800,874$ 2,497,172$ 2,580,241$ 1,990,356$ 1,569,907$ General government 924,269 1,015,074 1,086,783 840,227 293,799 Community services 4,256,995 4,430,830 4,742,278 2,926,064 5,443,247 Planning 1,936,852 2,719,170 2,927,559 2,335,563 3,687,751 Public ways and facilities 626,340 889,379 896,399 561,674 772,994 Public safety 9,398,940 9,348,042 11,987,812 12,622,399 22,170,916 Operating grants and contributions 3,694,804 2,117,322 1,619,868 5,383,614 505,218 Capital grants and contributions 21,639,074 23,016,989 25,840,940 26,659,897 34,443,832 Total governmental activities program revenues Business-type activities:
Charges for services:
17,645,619 19,241,722 20,591,589 21,857,056 23,846,199 Sanitation 36,529,274 43,808,330 40,967,174 43,144,049 51,005,332 Waterworks district no. 8 426,246 406,387 402,517 291,226 8,922 Transit 2,639,740 2,667,120 2, 673,492 5,663,893 6,923,917 Operating grants and contributions 1,921,558 2,064,181 1,952,893 1,302,250 3,745,985 Capital grants and contributions 59,162,437 68,187,740 66,587,665 72,258,474 85,530,355 Total business-type activities program revenues 80,801,511$ 91,204,729$ 92,428,605$ 98,918,371$ 119,974,187$ Total primary governmental program revenues Net (Expense)/Revenue
(58,762,144) (69,194,223) (63,044,647) (65,038,288) (54,525,380) Governmental activities (3,325,673) (2,071,349) (727,873) 3,198,569 10,071,974 Business-type activities (62,087,817)$ (71,265,572)$ (63,772,520)$ (61,839,719)$ (44,453,406)$ Total primary government net expense Continued
Fiscal Year
189
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
142
2011-12 2012-13 2013-14 2014 -15 2015-16
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes 23,461,856$ 24,823,215$ 27,438,436$ 28,340,047$ 29,835,623$ Tax increment 9,262,457 - - - - Sales tax 15,018,520 15,617,678 15,440,917 15,944,424 17,432,505 Motor fuel tax - - - - - Franchise tax 4,789,947 4,809,762 4,849,204 4,757,607 5,025,802 Business tax 1,509,209 1,536,743 1,601,785 1,742,469 1,786,153 Other taxes 1,692,627 1,857,033 1,975,930 2,128,115 2,587,113 Contributions from other governments 1,280,200 457,220 3,074,897 373,512 - Investment earnings 1,041,686 228,258 1,046,411 819,685 835,387 Extraordinary gain on dissolution of
redevelopment agency 16,832,057 - - - - Transfers (2,143,949) (1,8 44,949) (1,672,300) (2,869,014) (3,255,695) Contributions to other governments - - - - (63,992) Total governmental activities 72,744,610 47,484,960 53,755,280 51,236,845 54,182,896 Business-type activities:
Investment earnings 697,813 345,334 1,030,711 955,624 811,714 Miscellaneous 93,813 116,183 227,858 105,367 261,087 Transfers 2,143,949 1,844,949 1,672,300 2,869,014 3,255,695 Total business-type activities 2,935,575 2,306,466 2,930,869 3,930,005 4,328,496 Total primary government 75,680,185$ 49,791,426$ 56,686,149$ 55,166,850$ 58,511,392$ Change in Net Position
Governmental activities 10,149,191$ (12,083,162)$ 3,879,808$ 18,869,868$ 7,410,625$ Business-type activities 1,537,900 (2,660,559) (2,558,323) 5,495,956 3,532,656 Total primary government 11,687,091$ (14,743,721)$ 1,321,485$ 24,365,824$ 10,943,281$ Continued
NOTES:
1. In FY 2008-09 capital contributions - unrestricted was re-classified to program revenues.
Fiscal Year
190
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
143
2016-17 2017-18 2018-19 2019-20 2020-21
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
31,120,875$ 32,303,044$ 34,011,044$ 39,014,593$ 37,990,791$ Property taxes - - - - - Tax increment 16,842,335 17,857,830 18,961,367 18,319,232 21,372,380 Sales tax - - - - - Motor fuel tax 4,740,682 4,445,972 4,931,918 4,872,904 5,185,293 Franchise tax 1,787,587 1,967,065 2,106,344 2,112,049 2,241,423 Business tax 2,561,922 2,703,566 2,849,714 2,289,122 2,418,059 Other taxes - 2,082,766 49,350 52,160 51,484 Contributions from other governments 964,495 1,290,234 2,496,426 2,973,992 699,791 Investment earnings Extraordinary gain on dissolution of
- - - - - redevelopment agency (3,572,095) (3,512,087) (3,758,457) (1,353,309) 1,115,388 Transfers 250,000 - - - - Contributions to other governments 54,695,802 59,138,390 61,647,706 68,280,743 71,074,609 Total governmental activities Business-type activities:
520,855 821,540 2,041,917 2,418,455 (156,009) Investment earnings 127,220 119,408 119,552 86,638 155,039 Miscellaneous 3,572,095 3,512,087 3,758,457 1,353,309 (1,115,388) Transfers 4,220,170 4,453,035 5,919,926 3,858,402 (1,116,358) Total business-type activities 58,915,972$ 63,591,425$ 67,567,632$ 72,139,145$ 69,958,251$ Total primary government Change in Net Position
(4,066,342)$ (10,055,833)$ (1,396,941)$ 3,242,455$ 16,549,229$ Governmental activities 894,497 2,381,686 5,192,053 7,056,971 8,955,616 Business-type activities (3,171,845)$ (7,674,147)$ 3,795,112$ 10,299,426$ 25,504,845$ Total primary government Concluded
Fiscal Year
191
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
144
2011-12 2012-13 2013-14 2014- 15 2015-16
General fund
Reserved -$ -$ -$ -$ -$ Unreserved
Nonspendable, reported in:
Long-term receivables 19,384,570 22,246,241 18,509,076 16,988,891 15,769,102 Committed, reported in:
Retiree benefits 805,028 630,447 846,723 863,564 535,057 Special programs 229,687 185,195 272,722 283,828 319,322 Economic recovery - 6,839,684 6,084,838 6,084,838 6,084,838 Prudent reserve - - 11,881,778 11,682,715 11,665,494 Assigned, reported in:
Capital 9,304,096 4,198,811 6,029,111 7,968,732 9,374,012 Unassigned 10,059,954 11,406,896 - - - Total general fund 39,783,335$ 45,507,274$ 43,624,248$ 43,872,568$ 43,747,825$ All other government funds
Reserved -$ -$ -$ -$ -$ Unreserved, reported in:
Special revenue funds
Debt service
Capital projects funds
Non-spendable, reported in:
Long-term receivables 2,500,000 - - - - Restricted, reported in:
Housing programs 5,432,733 6,045,598 6,389,178 8,376,955 10,483,070 Public improvements 19,029,472 16,794,452 15,748,357 12,760,231 11,949,371 Streets 889,134 869,822 2,314,747 3,075,194 3,872,702 Lighting 7,241,174 - - - - Landscape 929,495 952,063 848,183 1,233,583 1,404,310 Debt service 2,635,890 2,637,044 1,656,157 7,963 - Special programs 493,194 792,788 1,037,576 1,603,522 2,199,119 Law enforcement 406,183 892,103 774,724 2,090,806 2,852,712 Committed, reported in:
Streets 3,117,412 1,996,149 2,531,276 2,460,203 2,789,142 Equipment 3,525,143 3,858,038 4,421,827 5,409,661 5,306,436 Assigned, reported in:
Capital 216,560 129,089 143,103 130,083 59,446 Unassigned - (42,047) (108,051) (164,935) (55,000) Total all other
governmental funds 46,416,390$ 34,925, 099$ 35,757,077$ 36,983,266$ 40,861,308$ Continued
NOTE:
In fiscal year 2013-14, the r eporting of fund balance set aside for Prudent reserve was corrected, moving the amount from the Unassigned category to the Committed category.
Fiscal Year
192
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
145
2016-17 2017-18 2018-19 2019-20 2020-21
General fund
-$ -$ -$ -$ -$ Reserved Unreserved
Nonspendable, reported in:
14,039,905 14,035,421 10,017,212 8,124,400 5,971,366 Long-term receivables Committed, reported in:
17,609 30,008 278,911 372,760 Retiree benefits 333,021 386,105 421,164 522,806 590,552 Special programs 6,084,838 5,084,838 5,084,838 11,084,838 11,084,838 Economic recovery 11,737,044 12,315,232 12,670,975 13,049,720 14,019,727 Prudent reserve Assigned, reported in:
9,647,610 10,672,125 17,873,825 19,355,215 38,297,703 Capital - (472,818) - - Unassigned 41,860,027$ 42,020,903$ 46,098,022$ 52,415,890$ 70,336,946$ Total general fund All other government funds
-$ -$ -$ Reserved Unreserved, reported in:
Special revenue funds
Debt service
Capital projects funds
Non-spendable, reported in:
- - - - - Long-term receivables Restricted, reported in:
11,334,690 12,044,976 13,008,731 9,806,362 11,661,964 Housing programs 10,966,923 10,456,563 8,949,351 8,757,063 8,077,145 Public improvements 3,846,189 4,815,203 5,991,314 8,023,324 14,599,926 Streets - - - - - Lighting 1,104,197 844,656 693,379 162,870 - Landscape 6,424,000 11,989,483 4,241,900 1,456,124 1,324,129 Debt service 2,583,864 3,074,465 3,972,856 4,464,783 4,509,530 Special programs 2,620,596 2,445,054 2,853,886 1,275,705 1,435,178 Law enforcement Committed, reported in:
2,202,918 4,162,511 2,565,480 2,739,696 3,137,771 Streets 5,230,390 5,267,713 5,101,910 5,475,553 7,709,947 Equipment Assigned, reported in:
- - - - - Capital (4,618,291) (693,295) (209,150) 1,409,206 (509,396) Unassigned Total all other
41,695,476$ 54,407,329$ 47,169,657$ 43,570,686$ 51,946,194$ governmental funds Concluded
Fiscal Year
193
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
146
2011-12 2012-13 2013-14 2014-15 2015-16
Revenues
Taxes 46,313,876$ 48,405,537$ 51,630,610$ 54,024,712$ 56,667,196$ Tax increment 9,262,457 - - - - Licenses and permits 1,549,642 1,526,942 1,641,301 1,965,120 2,561,293 Fines and forfeitures 590,625 562,301 567,379 613,301 597,889 Use of money and property 1,401,486 1,308,808 1,371,779 2,901,802 2,901,207 From other governments 7,885,687 7,485,213 9,875,682 9,489,007 7,715,746 Grants 2,089,328 6,209,316 3,795,247 4,650,237 3,858,045 Service charges 1,992,262 1,861,540 3,247,246 2,111,740 3,300,023 Other revenues 1,438,435 2,320,567 2,411,592 1,865,966 1,732,533 Contributions from other governments 1,280,200 464,854 3,073,464 376,588 - Total revenues 73,803,998 70,145,078 77,614,300 77,998,473 79,333,932 Expenditures
Current:
General government 5,024,456 6,760,196 8,977,728 6,764,233 5,784,087 Community services 4,274,451 4,366,229 5,759,582 6,245,135 6,581,050 Planning 7,961,160 7,395,246 8,954,977 6,440,023 6,246,916 Public ways and facilities 14,710,961 14,558,261 14,683,649 14,791,346 15,988,868 Public safety 28,845,564 28,918,401 29,922,421 31,605,027 32,811,987 Capital outlay 3,544,377 9,466,790 4,346,397 4,987,471 3,362,875 Debt service:
Principal 2,130,000 1,360,000 3,220,000 270,000 - Interest 1,940,460 1,242,425 1,129,784 742,212 806,625 Refunding escrow - - - 1,396,316 - Bond issuance costs - - - 194,069 - Other 13,032 7,933 6,710 1,150 1,150 Intergovernmental 39,517 - - - - Total expenditures 68,483,978 74,075,481 77,001,248 73,436,982 71,583,558 Excess (deficiency) of revenues
over expenditures 5,320,020 (3,930,403) 613,052 4,561,491 7,750,374 Other Financing Sources (Uses)
Transfers in 16,499,059 27,577,674 16,997,812 12,214,657 8,301,888 Transfers out (18,635,008) (29,414,623) (18,661, 912) (15,503,671) (11,604,733)
Bonds issued - - - 20,767,747 - Payment to escrow agent - - - (20,565,715) - Contributions from other governments - - - - 250,000 Contributions to other governments - - - - (313,992) Total other financing sources (uses) (2,135,949) (1,836,949) (1,664,100) (3,086,982) (3,366,837) Extraordinary gain - (7,622,494) - - - Net change in fund balances 3,184,071$ (13,389,846)$ (1,051,048)$ 1,474,509$ 4,383,537$ Debt service as a percentage of
noncapital expenditures 6.24% 3.86% 6.24% 1.46% 1.20%
Continued
Fiscal Year
194
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
147
2016-17 2017-18 2018-19 2019-20 2020-21
Revenues
57,053,401$ 59,277, 477$ 62,860,387$ 66,607,900$ 69,207,946$ Taxes - - - - - Tax increment 2,158,210 2,523,744 2,618,558 2,703,432 3,829,208 Licenses and permits 403,841 568,456 562,503 329,429 236,362 Fines and forfeitures 1,276,619 1,796,416 3,049,771 3,355,999 1,884,393 Use of money and property 7,094,051 8,092,405 10,014,798 9,601,415 9,692,508 From other governments 4,417,808 2,838,349 2,933,635 7,640,989 12,213,457 Grants 3,304,023 3,970,562 4,185,273 2,773,884 4,447,402 Service charges 2,783,106 4,629,045 4,982,086 3,008,689 3,365,342 Other revenues - - - - - Contributions from other governments 78,491,059 83,696,454 91,207,011 96,021,737 104,876,618 Total revenues Expenditures
Current:
6,457,231 8,530,647 6,309,774 9,906,448 10,139,013 General government 6,763,706 6,927,525 6,673,466 5,891,145 5,635,391 Community services 6,387,901 6,447,721 5,533,197 5,878,601 6,003,043 Planning 16,076,033 16,467,229 15,610,695 20,013,765 16,252,868 Public ways and facilities 33,107,205 33,565,393 34,156,673 36,325,983 35,513,526 Public safety 16,914,455 7,153,833 17,291,140 9,822,627 2,892,610 Capital outlay Debt service:
- 1,002,827 1,416,140 1,550,208 1,845,020 Principal 806,625 1,289,250 1,326,672 1,762,714 1,465,341 Interest - - - - - Refunding escrow - - - - - Bond issuance costs 103,816 80,624 2,900 6,400 6,314 Other - - - - - Intergovernmental 86,616,972 81,465,049 88,320,657 91,157,891 79,753,126 Total expenditures Excess (deficiency) of revenues
(8,125,913) 2,231,405 2,886,354 4,863, 846 25,123,492 over expenditures Other Financing Sources (Uses)
18,175,804 13,912,428 20,421,754 15,259,176 10,912,021 Transfers in (21,320,599) (17,418,315) (26,518,011) (17,456,285) (9,790,433) Transfers out 9,967,078 12,064,445 - - - Bonds issued - - - - - Payment to escrow agent 250,000 2,082,766 49,350 52,160 51,484 Contributions from other governments - - - - - Contributions to other governments 7,072,283 10,641,324 (6,046,907) (2,144,949) 1,173,072 Total other financing sources (uses) - - - - - Extraordinary gain (1,053,630)$ 12,872,729$ (3,160,553)$ 2,718,897$ 26,296,564$ Net change in fund balances Debt service as a percentage of
1.16% 3.10% 3.85% 3.63% 4.15% noncapital expenditures
Concluded
Fiscal Year
195
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (see notes)
SOURCE:
California Municipal Statistics, Inc.
148
Gross Assessed Valuation 1
Total
Fiscal Residential Commercial Industrial Other Secured
Year Property Property Property Property Property
2011-12 $ 12,088,027,336 $ 1,344,027,796 $ 674,653,809 $ 193,996,193 $ 14,300,705,134 2012-13 11,938,025,471 1,363,564,876 683,204,414 213,010,276 14,197,805,037 2013-14 12,406,140,958 1,380,245,496 698,325,303 219,989,056 14,704,700,813 2014-15 13,233,479,645 1,373,427,652 709,886,529 235,133,683 15,551,927,509 2015-16 13,911,611,419 1,363,302,305 726,776,926 253,789,491 16,255,480,141 2016-17 14,491,714,823 1,453,070,630 747,791,168 281,441,169 16,974,017,790 2017-18 15,171,707,742 1,512,280,692 775,292,210 290,374,174 17,749,654,818 2018-19 15,913,650,843 1,508,895,877 827,029,445 291,674,652 18,541,250,817 2019-20 16,650,203,798 1,524,382,440 869,540,338 309,190,987 19,353,317,563 2020-21 17,356,164,331 1,545,236,672 923,417,588 313,486,721 20,138,305,312 Continued
NOTES:
2. Valuations are established by the County Assessor of the County of Ventura, except for property owned by private utility companies, which is valued by the State of California.
In 1978 the voters of the State of California passed Proposition 13 which limited property taxesto a totalmaximum rate of 1% based upon the assessedvalue of the property being taxed. Each year, the assessedvalue of property may be increased by an "inflation factor" (limitedto a maximumincrease of 2%). With few exceptions, propertyis only reassessedat the time that it is sold to a new owner. At that point,the new assessedvalue is reassessedat the purchase price of the property sold. The assessedvaluation data shown above representsthe only data currently availablewith respect to the actual market value of taxable property andthis is the data used for taxation purposes.
It is subject to the limitations described above.
1. For comparison purposes, gross assessedvaluations includes homeowners' exemption. Althoughthis exemption reduces property tax collections, a portion of the revenue loss is reimbursed by the State of California. As such, gross assessed valuation is the revenue base used in establishing property tax-related revenues. 196
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (see notes)
SOURCE:
California Municipal Statistics, Inc.
149
Gross Assessed Valuation 1
Total
Percent Direct Fiscal
Utility 2 Unsecured Total Change Tax Rate Year
$ 2,322,792 $ 369,287,100 $ 14,672,315,026 -0.8% 1.00% 2011-12 2,322,792 358,752,359 14,558,880,188 -0.8% 1.00% 2012-13 2,322,792 348,853,900 15,055,877,505 3.4% 1.00% 2013-14 2,322,792 354,410,454 15,908,660,755 5.7% 1.00% 2014-15 144,746 340,321,787 16,595,946,674 4.3% 1.00% 2015-16
144,746 348,808,162 17,322,970,698 4.4% 1.00% 2016-17
144,746 353,999,429 18,103,798,993 4.5% 1.00% 2 017
-18
144,746 356,420,499 18,897,816,062 4.4% 1.00% 2018-19
144,746 361,476,071 19,714,938,380 4.3% 1.00% 2019-20
210,776 387,816,827 20,526,332,915 4.1% 1.00% 2020-21
Concluded
197
CITY OF SIMI VALLEY
DIRECT AND OVERLAPPING GOVERNMENTS
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
SOURCE:
California Municipal Statistics, Inc.
150
2011-12 2012-13 2013-14 2014-15 2015-16
Basic Tax Levy per Article 13A
of Ca
lifornia State Constitution 1.000000 1.000000 1.000000 1.000000 1.000000 City - - - - -
Total direct 1.000000 1.000000 1.000000 1.000000 1.000000 County Flood Control District - - - - - Simi Valley Unified School District 0.057800 0.061500 0.059800 0.061800 0.054100 Metropolitan Water District 0.003700 0.003500 0.003500 0.003500 0.003500 Ventura Community College District 0.014000 0.019100 0.016700 0. 017600 0.013000 Total direct and overlapping 1.075500 1.084100 1.080000 1.082900 1.070600 Continued
NOTES:
The tax rate information provided is for Tax Rate Area 09006, the largest tax rate area in the City.
Overlapping ratesare those of local and county gov ernments that apply to property owners within the City of Simi Valley. Not all overlapping rates apply to all Simi Valley property owners; for example, although the county property tax rates apply to all city property owners, the Flood Control District rates apply only to city property owners whose property is located within that district's geographic boundaries. 198
CITY OF SIMI VALLEY
DIRECT AND OVERLAPPING GOVERNMENTS
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
SOURCE:
California Municipal Statistics, Inc.
151
2016-17 2017-18 2018-19 2019-20 2020-21
Basic Tax Levy per Article 13A
1.000000 1.
000000 1.000000 1.000000 1.000000 of California State Constitution - - - - City
1.000000 1.000000 1.000000 1.000000 1.000000 Total direct - - - - County Flood Control District
0.052800 0.079100 0.077100 0.059400 0.086300 Simi Valley Unified School District
0.003500 0.003500 0.003500 0.003500 0.015000 Metropolitan Water District
0.015500 0.015100 0.015200 0.014300 0.003500 Ventura Community College District
1.071800 1.097700 1.095800 1.077200 1.104800 Total direct and overlapping Concluded
199
CITY OF SIMI VALLEY
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SOURCE:
HdL Coren Cone
152
Percent of Percent of
Total City Total City
Taxable Taxable Taxabl e Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
DP 241 Country Club LP 110,486,259$ 1 0.62% NF Creekside Apartments LLC 78,546,186 2 0.44%
IMT Capital V Wood Ranch LLC 75,778,610 3 0.43%
SE-Shadow Ridge LLC 48,631,376 4 0.27%
ESG Properties LLC 47,489,980 5 0.27% 40,340,631$ 9 0.27% DP 849 Country Club LP 39,787,292 6 0.22%
Miracle Mile Properties LP 36,338,309 7 0.21%
RAAS Nutritionals LLC 35,407,864 8 0.20%
Essex Meadowood 34,851,601 9 0.20% 58,247,444 5 0.38% Spectrum Pacific West LLC 30,932,900 10 0.17%
Bank
of America 117,324,494 1 0.77%
Tishman Speyer Archstone 101,700,000 2 0.68% Fountains Apartments Ltd 74,752,683 3 0.50% Target Corporation 59,828,448 4 0.40% South Street Center LLC 51,181,018 6 0.34% Mountaingate Associates LLC 43,314,998 7 0.29% Stone Creek Investors 40,907,764 8 0.27% Fairfield Rancho Corrales 38,800,000 10 0.26% Total Taxable Assessed Value
Ten Largest Taxpayers 538,250,377$ 3.04% 626,397,480$ 4.16%
2021 2012
200
CITY OF SIMI VALLEY
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
SOURCE:
Ventura County Controller-Auditor
153
Taxes Levied Collections in
Fiscal for the Percent Subsequent Percent
Year Fiscal Year Amount of Levy Years Amount of Levy
2011-12 $ 31,380,139 $ 27,921,798 88.98% $ 86,868 $ 28,008,666 89.26% 2012-13 31,451,572 28,397,076 90.29% 104,934 28,502,010 90.62% 2013-14 32,257,545 29,392,698 91.12% 173,706 29,566,404 91.66% 2014-15 34,131,863 33,369,651 97.77% 172,384 33,542,035 98.27% 2015-16 37,179,612 34,029,242 91.53% 203,580 34,232,822 92.07% 2016-17 39,105,618 35,443,930 90.64% 244,670 35,688,600 91.26% 2017-18 42,348,149 37,295,853 88.07% 250,813 37,546,666 88.66% 2018-19 42,471,808 38,746,266 91.23% 246,840 38,993,105 91.81% 2019-20 44,950,945 44,163,945 98.25% 233,543 44,397,487 98.77% 2020-21 46,564,800 42,609,458 91.51% - 42,609,458 91.51% NOTES:
Collections within the
Collections presented do not include penalty charges or interest collected.
The City of Simi Valley has not levied a g eneral purpose property tax subsequent to the passage of Proposition 13.
1. Only the secured property tax data for t he City of Simi Valley and its Redevelopment Agency is presented in this table.
The Ventura County Tax Col lector is responsible for all property tax roll levies and collections within the City of Simi Valley.
Fiscal Year of the Levy Total Collections to Date
201
City of Simi Valley
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
SOURCE:
City of Simi Valley
US Census Bureau
154
Governmental Activities
Tax Lease Certificates Total Percent of Debt
Fiscal Allocation Revenue of Primary Personal Per
Year Bonds 1,2 Bonds Participation 2 Government Income 5 Capita 5 2012 26,210,230$ 3,385,000$ 23,185,726$ 52,780,956$ 1.26% 417$ 2013 - 2,610,000 22,587,840 25,197,840 0.55% 198.68 2014 - - 3 21,964,953 21,964,953 0.45% 173.24 2015 - 20,414,513 - 4 20,414,513 0.45% 160.96 2016 - 20,315,876 2, 4 - 20,315,876 0.43% 159.88 2017 - 30,184,317 2, 4 - 30,184,317 0.59% 236.93 2018 - 41,147,298 2, 4 - 41,147,298 0.83% 321.83 2019 - 39,632,520 2, 4 - 39,632,520 0.78% 308.00 2020 - 37,983,674 2, 4 - 37,983,674 0.64% 293.85 2021 - 36,040,015 2, 4 - 36,040,015 N/A 6 277.26
NOTES:
5. See Schedule of Demographic and Economic Statistics for personal income and population data.
There is no general bonded outstanding debt in the governmental funds.
1. As of June 30, 2012, the tax allocation bond debt is an obligation of private purpose trust funds, not governmentalactivities. Assembly Bill 1X 26 provides for the dissolution of all redevelopment agencies in the State of California. As of February 1, 2012,assets and liabilities of the former redevelopment agency,including the tax allocation bonds, were transferred from governmentalfunds of the City to the Fiduciary (private purpose trust)fund. Infuturefiscal years, the Fiduciary fundwill onlybe allocated revenuein the amount thatis necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agencyhave been paid in full and all assets have been liquidated. See note disclosure V E.
3. On August 12, 2013, the Council approved the early repayment of 1995 Simi Valley Public Financing Authority Lease Revenue Bonds and a call for full redemption of the bonds occurred on October 1, 2013.
2. Presented net of original issuance premiums, discounts, and adjustments. Details regarding the City's outstanding debt can be found in the notes to the financial statements.
4. In August 2014, the City issued $18,795,000 of 2014A Lease Revenue RefundingBonds for the purpose of fully refunding the 2004 Certificates of Participation issue with a carrying amount of $21,705,000. The 2004 Certificates were refunded in full on August 26, 2014 and no portion of the 2004 Certificates remained outstanding as of June 30, 2015. In September 2016, the City issued Lease Revenue Bonds, Series 2016 NCREBs, for $9,226,619, and a Tax-Exempt Lease, Series 2016,for $740,459, both maturingon September 1, 2036. In December 2017, the City issued Tax-Exempt Lease Series 2017, for $6,408,600, maturing March 1, 2033. In May 2018, the City issued a Taxable Equipment Lease for $5,655,845, maturing in March 2034.
6. Per Capita Personal Income and Median Age are currently unavailable from the U.S. Census Bureau. Fiscal year 2021 data will be available later in the year, and will be updated in the subsequent year's report. 202
CITY OF SIMI VALLEY
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2021 (see notes)
SOURCE:
City of Simi Valley
California Municipal Statistics, Inc.
155
Estimated Share
Outstanding Percentage of Overlapping
Debt 6/30/21 Applicable 1 Debt 6/30/21
Overlapping and Assessment Debt Repaid with Property Taxes Metropolitan Water District 26,830,000$ 0.629 % 168,761$ Ventura County Community College District 269,969,464 13.989 37,766,028 Simi Valley Unified School District 267,225,588 96.949 259,072,535 City of Simi Valley Community Facilities Dist No.2004-1 5,710,000 100.000 5,710,000 City of Simi Valley 1915 Act Bonds 870,000 100.000 870,000 Overlapping Other Debt
Ventura County General Fund Obligations 319,290,000 13.985 44,652,707 Ventura County Superintendent of Schools Certificates 8,325,000 13.985 1,164,251 Simi Valley Unified School District Certificates 6,336,010 96.949 6,142,698 Total overlapping and assessment debt 355,546,980
City Direct Debt
City of Simi Valley 2014A Lease Revenue Refunding Bond 16,942,687 100.000 16,942,687 City of Simi Valley 2016 New Clean Renewable Energy Bond 7,883,942 100.000 7,883,942 City of Simi Valley 2016 Tax Exempt Energy Bond 621,707 100.000 621,707 City of Simi Valley 2017 Tax Exempt Bond 5,260,533 100.000 5,260,533 City of Simi Valley 2018 Tax Equipment Lease 5,331,146 100.000 5,331,146 Total direct debt 36,040,015
Total direct and overlapping debt 391,586,995$
NOTES:
There is no general bonded outstanding debt in the governmental funds.
1. For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
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. The 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.
203
City of Simi Valley
Legal Debt Margin Information
Last Ten Fiscal Years
SOURCE:
California Municipal Statistics, Inc.
156
Fiscal Year
2012 2013 2014 2015 2016
Debt limit 550,211,813$ 545,958,007$ 564,595,406$ 596,574,778$ 622,348,000$ Total net debt
applicable to limit - - - - - Legal debt margin 550,211,813$ 545,958,007$ 564,595,406$ 596,574,778$ 622,348,000$ Total net debt applicable
to the limit as a
percentage of debt limit 0% 0% 0% 0% 0%
Continued
NOTE:
1. California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted when assessed valuationswere based on 25% of full market value. This has since changed to 100% of full market value. Thus, the limit shown is
3.75% (one-fourth the limit of 15%).
204
City of Simi Valley
Legal Debt Margin Information
Last Ten Fiscal Years
SOURCE:
California Municipal Statistics, Inc.
157
Fiscal Year
2017 2018 2019 2020 2021
649,611,401$ 678,892,462$ 708,668,102$ 769,737,484$ 769,737,484$ Debt limit Total net debt
- - - - - applicable to limit 649,611,401$ 678,892,462$ 708,668,102$ 769,737,484$ 769,737,484$ Legal debt margin Total net debt applicable
to the limit as a
0% 0% 0% 0% 0% percentage of debt limit
Concluded
Legal Debt Margin Calculation for Fiscal Year 2021
Assessed value 20,526,332,915$
Debt limit (3.75% of assessed value) 1 769,737,484$
General obligation bonds -
Legal debt margin 769,737,484$
205
CITY OF SIMI VALLEY
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
Simi Valley Unified School District
State of California Employment Development Department
US Census Bureau
Ventura County Statistical Abstract
158
Personal Per Capita Public
Fiscal Inco me Personal Median School Unemployment
Year Population (in thousands) Income 1 Age Enrollment Rate 2012 126,474 4,191,222 33,139 37.0 19,998 7.6% 2013 126,827 4,600,269 36,272 37. 2 18,360 6.1% 2014 126,786 4,832,195 38,113 41. 1 18,047 5.1% 2015 126,827 4,586,318 36,162 39. 8 17,431 4.6% 2016 127,070 4,763,346 37,486 39. 0 17,015 4.8% 2017 127,400 5,100,332 40,034 40. 1 16,905 3.9% 2018 127,855 4,977,012 38,927 40. 0 16,594 3.7% 2019 128,678 5,076,604 39,452 40. 3 16,432 3.4% 2020 129,262 5,946,311 46,002 41. 6 16,393 12.5% 2021 129,985 N/A 2 N/A 2 N/A 2 15,788 6.1%
NOTE:
2. Per Capita Personal Income and Median Age are currently unavailable from the U.S. Census Bureau. Fiscal year 2021 data will be available later in the year, and will be updated in the subsequent year's report.
1. Per capita income for year 2010 was obtained from the US Census Bureau. Per capita income for interim years has been inflation adjusted by the US Census Bureau. 206
CITY OF SIMI VALLEY
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
SOURCE:
City of Simi Valley
State of California Employment Development Department
Labor Market Information Division
159
Percentage of
Employed
Employer Employees Rank Labor Force Employees Rank Labor Force Simi Valley Unified School District 1,975 1 3.20% 2,699 1 4.12% Simi Valley Hospital - Adventist Health 978 2 1.59% 868 2 1.33% Meggitt Safety Systems, Inc. 563 3 0.91% 320 8 0.49% Milgard Windows & Doors 481 4 0.78% 267 9 0.41% City of Simi Valley 464 5 0.75% 536 3 0.82% Rancho Simi Parks & Recreation District 251 6 0.41% 403 5 0.62% Polytainer Inc 188 7 0.30%
Target #2462 176 8 0.29% 350 7 0.53%
Lowe's Home Improvement #1971 157 9 0.25% USTE, Inc 156 10 0.25%
Aerovironment, Inc. 455 4 0.69%
Vons Grocery Stores* 361 6 0.55%
Nexicore 256 10 0.39%
Total 5,389 8.74% 6,515 9.95%
NOTE:
Of ninety-four employers surveyed by the City of Simi Valley, thirty-six employers responded (38%). 2021 2012
Employed
Percentage of
207
CITY OF SIMI VALLEY
CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
160
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General government 55 57 57 61 53 58 56 54 60 60
Community services 29 28 29 31 27 24 27 27 20 20
Planning and Community
Services 49 42 40 39 36 36 33 30 32 31
Public ways and facilities 92 89 88 90 87 87 87 83 80 78 Public safety
Sworn police personnel 123 120 119 123 121 121 115 118 123 112 Civilians 52 52 52 52 49 50 53 47 44 45
Sanitation 53 56 51 54 47 54 53 52 53 49
Waterworks district no. 8 43 44 45 43 45 41 40 41 35 32 Transit 40 41 38 39 38 42 40 40 38 37
Total 536 529 519 532 503 513 504 492 485 464
NOTE:
1. Totals do not include temporary employees or part-time crossing guards.
Full & Part Time Employees as of June 301
208
CITY OF SIMI VALLEY
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
Golden State Water Co.
161
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General government
Business tax applications
and renewals 10,257 9,764 9,709 9,643 9,709 9,437 9,028 9,403 7,675 7,223 Business tax receipts issued 9,196 9,060 8,936 8,563 9,480 8,366 7,922 7,315 7,396 7,779 Business tax revenues ($) 1,509,209 1,536,702 1,601,875 1,742,469 1,786,153 1,787,587 1,967,065 2,106,344 2,112,049 2,190,665 Community services
Cultural arts center events 334 344 362 354 378 392 369 370 357 0 Cultural arts center attendance 35,418 39,388 38,643 36,403 39,473 36,248 38,913 33,564 26,675 0 Senior center attendance1 189,302 192,107 182,368 172,233 160,805 153,803 166,441 172,079 145,505 40,975 Library card holders2 - - 20,498 28,298 33,830 39,135 45,159 46,406 38,423 34,382 Library total collection3 - - 139,104 146,623 158,596 170,848 164,748 161,450 136,071 140,972 Library total circulation3 - - 344,358 330,838 333,068 285,089 299,182 317,085 333,683 247,680 Planning
Building permits 1,623 1,590 2,382 2,054 2,200 2,500 2,600 2,750 2,500 2,950 Plumbing, mechanical,
and electrical permits 2,590 2,592 3,473 3,213 2,950 3,400 3,640 3,750 3,200 3,450 Permit valuation (thousands $) 49,992 47,316 55,300 41,766 66,800 76,800 71,300 76,740 63,500 65,750 Public Safety
Arrests 3,857 3,472 2,961 3,459 3,377 2,939 3,134 2,964 2,381 1,762 Enforcement citations 6,827 7,688 8,518 8,308 8,300 6,936 8,988 8,230 4,703 2,454 Public ways and facilities
Street resurfacing (miles) 2.23 6.66 5.67 3.93 3.73 6.38 10.12 23.77 10.12 1.4 Sanitation
Wastewater customers 36,604 36,704 36,796 36,761 36,769 37,079 36,949 35,773 37,395 36,874 Average dry weather flow (MGD) 8.80 8.60 8.50 8.10 7.80 7.70 7.92 7.78 7.78 7.70 Waterworks district no. 8
Customers4 25,059 25,156 25,093 25,585 25,664 25,558 25,433 25,622 25,251 25,548 Water delivered (million gallons) 6,502.0 6,305.1 7,352.8 8,083.5 6,517.0 5,176.0 5,486.0 6,227.0 6,423.0 6,832.0 Transit
Fixed-route revenue miles 420,295 400,425 426,057 426,057 404,857 380,354 378,284 376,506 387,056 409,044 Fixed-route passengers 417,156 434,512 347,929 378,452 333,619 364,810 251,917 266,718 181,098 121,642 Fixed-route revenue hours 25,776 24,882 25,551 25,551 25,346 26,904 27,340 26,727 25,282 26,788 Paratransit revenue miles 180,763 184,074 183,407 172,444 158,604 160,043 162,551 159,508 110,289 71,396 Paratransit passengers 45,756 46,290 50,308 45,364 43,485 45,009 43,406 50,134 29,133 22,394 Paratransit revenue hours 17,486 18,966 17,984 17,009 17,356 17,832 17,709 17,226 11,730 5,790 NOTE:
1. Due to State Budget cuts effective 2014, Senior programs were reduced, resulting in lower attendance.
2. Effective 7/01/13, the City assumed responsibility for library operations from the County.
3. Includes Print, Audio, Video and Ebooks. 2015 totals have been restated.
4. Balance of community, approximately 13,705 customers, serviced by Golden State Water Co. during fiscal year 2021.
Fiscal Year
209
CITY OF SIMI VALLEY
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
Southern California Edison
162
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Public safety
Police stations 1 1 1 1 1 1 1 1 1 1
Fleet size 91 94 96 97 99 101 103 103 104 98
Public ways and facilities
Streets (miles) 324.91 324.91 326.91 332.69 336.41 337.57 337.57 337.57 337.57 337.57 Streetlights 1 7,937 7,942 8,241 8,225 8,223 8,243 8,268 8,479 8,382 8,382 Traffic signals 2 121 121 121 121 121 121 121 121 121 121 Sanitation
Sewerlines (miles) 3 374 374 374 374 374 374 374 374 380 380 Treatment capacity
(millon gallons per day) 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 Waterworks district no. 8
Water mains (miles) 4 375 375 380 380 380 380 337 345 345 345 Fire hydrants 2,844 2,844 2,844 2,844 2,844 2,844 2,875 2,850 2,874 2,853 Storage capacity
(million gallons) 55.8 55.8 55.8 55.8 55.8 55.8 55.8 55.8 55.8 55.8 Transit
Buses - 40 foot 11 11 11 8 8 8 8 8 8 8
Buses - 35 foot 0 0 0 3 3 3 3 3 3 3
Paratransit Vehicles 11 11 11 11 11 12 12 12 12 12
NOTES:
No capital asset indicators are available for the general government, community services or planning function.
Information System for FY2009 through the current year.
1. Streetlights acquired from Southern California Edison as of 11/01/18.
2. Traffic signals listed are those owned by the City. Fourteen additional signals, owned by Caltrans, are located at freewa
3. Collection system information was estimated for FY2007 and FY2008, and obtained from the City's Geographical
4. Reduction in water main miles in FY 2018 reflects updates in GIS accuracy for active mails, versus active plus abandone Fiscal Year
210