CITY OF SIMI VALLEY
MEMORANDUM
June 12, 2023
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 2021-22
STAFF RECOMMENDATION
It is recommended that the City Council/Boards of Directors/Board of Trustees accept the Annual Comprehensive Financial Report for Fiscal Year 2021-22 (Exhibit 1, page 5), and ratify 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 202 1-22 (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, 2022 , and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2021-22 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 May 26, 2023, for advance review , and it was also placed on the City’s website on May 1, 2023, 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 2021-22 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 2021-22 has been submitted to the GFOA, and staff is confident of receiving the Certificate once again, for the 43rd year in a row.
FINDINGS AND ALTERNATIVES
A summary of the information c ontained 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 government’s economic condition, awards and acknowledgements, a list of City officials, an organization chart, and the GFOA financial reporting award for Fiscal Year 2020-21.
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 budget s, 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 Balances 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 2021-22 represents the first year of a three-year audit contract (with one, two- year renewal option) 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 Directors/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 2021-22 (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 202 1-22 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 2021-22 (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, 202 2, and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2021-22 have received an “unmodified” opinion from an independent auditor, indicating no areas of material misstatement. ________________________________
_____
Carolyn Johnson, Deputy City Treasurer
Administrative Services Director
P
repared by: Marvin Lopez, Deputy Administrative Services Director, Fiscal Services INDEX Page
E
xhibit 1 - Draft Annual Comprehensive Financial Report (ACFR) for FY 2021-22…….5
CITY OF SIMI VALLEYCITY OF SIMI VALLEY
ANNUAL COMPREHENSIVE
FINANCIAL REPORT 2021-22
FISCAL YEAR ENDED JUNE 30, 2022
5 6
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
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 ........................................................................ ..... 23 Statement of Activities .............................................................................. ...... 24
Fund Financial Statements:
Balance Sheet – Governmental Funds .................................................... ...... 26 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position – Governmental Activities ............................ 28 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................. ..... 29 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................... ..... 31 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ....................................................... ..... 32 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – SHA to Community Development Agency Housing Administration........................................................................................ ..... 33 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Development Related Fees .................................. ..... 34 Statement of Net Position – Proprietary Funds ........................................ ..... 35 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds .................................................................................. ..... 36 Statement of Cash Flows – Proprietary Funds ......................................... ..... 37 Statement of Net Position – Fiduciary Funds ........................................... ..... 38 Statement of Changes in Net Position – Fiduciary Funds ........................ ..... 39
7 Table of Contents (continued)
PAGE
Notes to the Basic Financial Statements
Notes ......................................................................................................... 42
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................................................. 103 Schedule of Plan Contributions – Miscellaneous Plan ................................ 105 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan .............................................................................................. 107 Schedule of Plan Contributions – Safety Plan ............................................ 109 Schedule of Changes in Net OPEB Liability and Related Ratios ............... 1 11 Schedule of OPEB Plan Contributions ........................................................ 1 12
Supplementary Information
Nonmajor Governmental Funds
Combining Balance Sheet ....................................................................... 1 16 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................................................... 1 21
Schedules – Budget and Actual – Individual Funds
CalHOME Grant Fund ............................................................................. 1 26 HOME Grant Fund .................................................................................. 1 27 Planning Grant Fund ............................................................................... 1 28 Public, Education and Government Fees Fund ....................................... 1 29 Gasoline Tax Fund .................................................................................. 1 30 Road Maintenance and Rehabilitation Account Fund ............................. 1 31 Transportation Funds .............................................................................. 1 32 Library Services Fund .............................................................................. 1 33 Police Grants Fund ................................................................................. 1 34 Community Development Block Grant Fund ........................................... 1 35 Landscape Maintenance District No. 1 .................................................... 1 36
Internal Service and Fiduciary Funds
Combining Statement of Net Position – Internal Service Funds ............... 1 37 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ......................................................... 1 38 Combining Statement of Cash Flows – Internal Service Funds ............... 139 Combining Statement of Fiduciary Net Position – Private-Purpose Trust Fund 1 40 Combining Statement of Changes in Fiduciary Net Position – Private-Purpose Trust Fund ............................................................................................ 1 42 Combining Statement of Fiduciary Net Position – Custodial Funds ........ 1 44 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ..................................................................................... 1 45 8 Table of Contents (continued)
PAGE
Internal Service and Fiduciary Funds (Continued)
Combining Statement of Fiduciary Net Position – Pension And Other Post Employment Benefits (OPEB) Trust Funds ............... 1 46 Combining Statement of Changes in Fiduciary Net Position – Pension And Other Post Employment Benefits (OPEB) Trust Funds .... 1 47
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component – Last Ten Fiscal Years ............................... 1 49 Changes in Net Position – Last Ten Fiscal Years ..................................... 1 51 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............. 1 55 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................................................... 1 57
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................................................................ 1 59 Direct and Overlapping Governments – Property Tax Rates – Last Ten Fiscal Years .......................................................................... 1 61 Principal Property Taxpayers – Current Year and Nine Years Ago .......... 1 63 Property Tax Levies and Collections - Last Ten Fiscal Years ................... 1 64
Debt Capacity
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................. 1 65 Computation of Direct and Overlapping Debt ............................................ 1 66 Legal Debt Margin – Last Ten Fiscal Years .............................................. 1 67
Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ............... 1 69 Principal Employers – Current and Nine Years Ago ................................. 1 70
Operating Information
City Government Employees by Function – Last Ten Fiscal Years .......... 1 71 Operating Indicators by Function – Last Ten Fiscal Years ....................... 1 72 Capital Assets Statistics by Function – Last Ten Fiscal Years ................. 1 73 9 10
INTRODUCTORY SECTION
INTRODUCTORY SECTION
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i
April 26, 2023
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 (City) for the fiscal year ended June 30, 2022.
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 fiscal year ended June 30, 2022, 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, 2022, 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 126,944 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 District election process began with the November 2020 election for District 1 and 3; Districts 2 and 4 followed 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. The Mayor and 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 direct ives 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 Simi 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, 14 iii
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 City’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 that 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. 15 iv
Factors Affecting Financial Condition
The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City operates.
Local Economy. Fiscal year 2021-22 locally generated revenues from property, sales, franchise, business, and other taxes increased by $4.6 million or 6.7% over the prior fiscal year, primarily driven by an increase in property and sales taxes.
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 stable condition.
The local unemployment rate as of June 30, 2022 was 3.0%, which is a 3.1% decrease from the 6.1% unemployment rate reported in the previous fiscal year. The year over year decrease directly relates to the COVID -19 pandemic recovery, which has steadily improved from the height of the pandemic. 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.
The City has experienced a rise in residential development for fiscal year 2021- 22, with an estimated 209 new housing units built compared to the previous evaluation period of 85 new units built. Contributing factors toward the rise in housing production include the City gradually emerging from the prolonged COVID -19 pandemic, a strong housing demand despite high housing cost and a rise in mortgage rates, and new state legislation aimed at expediting housing production by removing development constraints and offering of various funding mechanisms to help developers fund multifamily housing projects. While the City continues to have modest additions to its property tax roll through the ongoing development, the region is experiencing slow economic growth in terms of jobs in retail and services as they are restricted by the lack of labor force reinforcements, lack of attainable housing, rising interest rates, and persistence of inflation.
The State’s recent response to the housing crisis mandates the City, and all local municipalities, to zone and stimulate housing production. As a result, development revenues could continue to increase through housing production. Major projects that were recently approved and/or are currently under construction include the Santa Susana mixed-use project with 280 apartment units and 4,750 square feet of commercial retail space, the Tapo- Alamo Street mixed- use project with 278 apartment units and 8,000 square feet of commercial ret ail space, the Landing at Arroyo and Vintage at Sycamore with a total of 311 rental units, and the Enclave Community with 164 townhomes and 6,000 square feet of commercial space. Furthermore, growing demand for accessory dwelling units (ADU) throughout the City further contributes to the variety the City’s 16 v
housing stock, with an estimated 47 ADUs built compared to the previous evaluation period of 31 ADUs built.
Long-term Financial Planning. The City’s population has remained steady reflecting a slight decrease over the prior reporting year. Turnover in the real estate market is continuing, but at a slower pace, thus further additions to the City’s property tax roll are anticipated over time. The net impact of this resulted in an increase of property tax revenue of approximately $1.2 million, or 3.1%.
The City continues to implement projects funded by the State SB2 and Local Early Action Planning (LEAP) grant programs. The State’s SB2 grant provides funding for the Permanent Local Housing Allocation (PLHA), which is an annual allocation intended to provide financial assistance to local governments to help implement plans to facilitate housing affordability, particularly for low - to moderate-income households. In 2022, the City Council adopted a resolution amending the PLHA five- year plan and establishing a Homebuyer Assistance Program as an investment tool to retain, grow, and invigorate local workforce. Additionally, the state grant programs allows the City to implement a Specific Plan encompassing the Los Angeles Avenue and Tapo Street corridor to help repurpose underutilized and underperforming commercial retail centers. Furthermore, the City is in its final stage of updating its General Plan Housing Element. The Housing Element serves as the primary planning guide to meet the existing and projected jobs and housing needs of Simi Valley residents through 2029. After multiple comment opportunities and revisions, the City’s draft Housing Element was readopted by City Council on February 27, 2023, for resubmittal to the California State Department of Housing and Community Development (HCD) for certification.
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. The fiscal year 2022-23 budget continued the City’s trend of adopting a structurally balanced budget.
The City weathered the pandemic better than originally anticipated and revenues are beginning to return to pre-pandemic levels. For example, the travel and hospitality industry is recovering from the COVID -19 pandemic and the City’s transient occupancy tax revenues have returned to normal levels. Similarly, the City’s sales tax revenue is projected to be strong in fiscal year 2022-23, as the economy recovers from the pandemic and unemployment declines. Vehicles remain in high demand and the sale of general consumer goods is strong. The City continues to be cautious about the significant shift to on-line sales, as 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 17 vi
estate transactions converting to increases in property tax revenue, the fiscal year 2022- 23 Adopted Budget includes a property tax growth assumption of 8.2%.
The City’s forecast includes projections for most revenue types with a 2.0% - 3.0% per year inflationary growth. Projections on the expenditure side include 3.0% growth in personnel costs, 2.0% 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.
While these revenue increases are welcomed, they are not assumed as a long-term trend and a softening is on the horizon. The Federal Reserve has initiated a series of interest rate increases intended to slow the economy and address inflation, Federal COVID -19- related stimulus funds that flowed to consumers has ended, and labor and supply chain issues remain albeit to a lesser degree. Additionally, the Simi Valley housing market is experiencing a lack of inventory of existing homes, driving up the median home price and limiting the flow of families migrating to the community. With an eye on these issues, as well as other short -term impacts, staff continues to monitor the national, state, and regional economies.
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 17.0% of the General fund expenditure budget. Overall, the City has a total ending General fund balance of $76.7 million, a very healthy and stable position.
The total debt of the City is currently $67.3 million, decreasing from $69.9 million in the prior fiscal year. The decrease is attributed to $2.6 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 $15.1 million, with debt service requirements of approximately $1.4 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 $6.4 million. The City intends to develop structurally balanced budgets that will put the organization on 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 aging infrastructure, unfunded pension liability, deferred maintenance, and replacement of the aging radio system. The City’s landscape assessment districts continue to be subsidized by the General Fund.
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Major Initiatives
• Continue process improvements in the delivery of services internally and externally to ensure sound fiscal management of the City and transparency to the public. • Implement the “PEAK” Agenda Management to improve the efficiency of the internal workflow for agenda management.
• Collaborate with community partners including Rancho Simi Recreation and Park District, Ventura County Area Agency on Aging, and the Simi Valley Public Library to expand on educational and social offerings at the Senior Center. • Expand the Arts Recovery Grant to encourage use of the Cultural Arts Center (CAC) by local arts organizations and non-profits through rental subsidies. • Negotiate and award contract and begin installation of Citywide radio system infrastructure and device upgrade and replacement.
• Expand the use of the City’s Enterprise Information Management System (EnerGov) to establish an online Planning application and review process, and further expand search and display functions of land use and zoning- related data for staff and public use.
• Establish a homebuyer’s assistance program with shared appreciation through the State’s Permanent Local Housing Allocation to increase homeownership opportunities.
• Design, bid, and construct four new water conservation/turf reduction projects within the City. These projects will result in significant savings in utilities and contract efforts once completed.
• Significantly increase the lifetime of residential and local streets by fully implementing and expanding the annual Crack Seal, Crack Fill, and Slurry programs. A full implementation and expansion of these pavement maintenance methods will greatly reduce premature street deterioration and thus significantly reduce future general fund expenditures for such repairs. • Restore Community Policing Programs, by staffing the Community Policing Bureau with Neighborhood Resource Officers, School Resource Officers, a Vulnerable Population Detective, and Community Services Specialist. • Manage and implement Quality Assurance program for 9-1- 1 calls and radio dispatching with newly purchased Frontline Quality Assurance tracker.
Recent and Planned Changes
• Launched the Biannual Economic Update e- Newsletter to provide key economic data to the business community and quarterly economic development updates to the City Council.
• Coordinated a cross -departmental team to update and launch a redesigned City website that improves communication to residents and businesses, provides an enhanced user experience, easier ADA compliance, and provides for translation to multiple languages.
• Secured a $349,000 Shuttered Venues Operators Grant to aid in COVID -19 recovery for the Cultural Arts Center.
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• Engaged with a grant management firm to seek out revenue opportunities on behalf of the City, potentially leading to millions more in funding for community needs.
• Adopted the City’s Housing Element of the General Plan and submitted it to the California Department of Housing and Community Development for review. Also, adopted updates to the Community Development Element, and Safety and Noise Element of the General Plan.
• Implemented instant issuance permits for simple residential mechanical, electrical and plumbing projects via the City’s customer self-service website. • Maintained a Class 5 rating in the FEMA Community Rating System that provides a 25% flood insurance rate discount for a total $300,000 in annual savings for the community.
• Designed and constructed two water conservation projects within the City’s Landscape Zones (Los Angeles Avenue & Erringer Road and along Galena Avenue north of the 118 Freeway).
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 l imit. 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, 2022, was $86,767,833. 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, 2021. This was the 42nd consecutive year (fiscal years ended 1980-2021) 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.
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. 20 ix
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,
Carolyn Johnson
Administrative Services Director
21 x
OFFICIALS OF THE CITY OF SIMI VALLEY
(as of June 30, 2022)
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 ..................................................................................................... City Attorney
Carolyn Johnson .............................................................. Acting Administrative Services Director
Stratis Perros ............................................................................. Environmental Services Director
Ron Fuchiwaki ............................................................................................ Public Works Director
David Livingstone ................................................................................................... Chief of Police
22 xi
* General Plan Coordination
1 MAYOR
(elected at large)
4 MEMBER CITY COUNCIL
(elected by district)
CITIZENS
CITY MANAGER
(appointed by City Council)
CITY ATTORNEY
(appointed by City Council)
PUBLIC WORKS
DIRECTOR
POLICE DEPARTMENT
CHIEF
ENVIRONMENTAL
SERVICES DIRECTOR
ADMINISTRATIVE
SERVICES DIRECTOR
* Planning Commission
* Affordable Housing
* Managed Growth Program
* Building and Safety
* Advanced/Current Planning
* Neighborhood Councils
* Task Force on
* Community Projects Grant
* CDBG Program
* Housing Rehabilitation
* Building Code Compliance
* Building Permits &
* Structural & Life Safety Plan
* Code Enforcement
* Assistance
* Review
* Property Maintenance
* Cable Television
* Animal Services
* Professional Standards Burea
* Administration
* Emergency Services
* Administration and
* Communication Division
* Communication Bureau
* Fiscal Services Unit
* Maintenance Unit
* Records Bureau
* Investigative Services Division
* Detective Bureau
* Narcotics Enforcement
* Administration
* City Engineering
* Traffic Engineering
* Utilities Engineering
* Maintenance Services
* Sanitation Services
* Waterworks District
* Environmental Compliance
* Public Relations Bureau
* Field Services Division
* Patrol Bureau
* Traffic Bureau
* Hazardous Materials
* Household Hazardous Waste
* Management
* Water Conservation
* Solid Waste Management
* Crossing Guards
* Simi Valley Transit
* ADA / Dial-A-Ride Services
* Fiscal Services
* Support Services
* Information Services
* Customer Service
ORGANIZATION OF THE CITY OF SIMI VALLEY
* Budget
23 xii
24 FINANCIAL SECTION
FINANCIAL SECTION
25 26
Independent
Auditor’s Report
27 28
1 Independent Auditor’s Report
The Honorable Mayor and Members of the City Council
City of Simi Valley, California
Report on the Audit of the Financial Statements
Opinions
We have audited the 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, 2022, and the related notes to financial statements, which collectively comprise the City's basic financial statements, as listed in the table of contents.
In our opinion, the accompanying 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, 2022, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
29 2
Emphasis of Matter
As discussed in Notes I -D, III- D and III- H, the City implemented the provisions of Governmental Accounting Standards Board Statement No. 87, Leases, during the fiscal year ended June 30, 2022. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial stateme nts that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards , we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 30 3
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
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 22 and the required supplementary information on pages 103 through 112 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and budgetary comparison schedules 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.
31 4
Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and the statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 26, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Glendale, California
April 26, 2023
32 Management’s Discussion and Analysis
(UNAUDITED)
Management’s Discussion
and Analysis (UNAUDITED)
33 34
5 City of Simi Valley
Management’s Discussion and Analysis
(UNAUDITED)
The management of the City of Simi Valley (City) provides this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022.
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 $422.8 million.
• The City’s total net position increased by $37.3 million. This increase was comprised of a $3.2 million decrease in net investment in capital assets, an $11.7 million increase in restricted net position, and a $28. 9 million decrease in unrestricted net deficit. The decrease in net investment in capital assets is a result of accumulated depreciation in excess of additional asset purchases during the fiscal year. The increase in restricted net position is primarily due to $10.0 million of funds put into the S treets and Roads fund during the year for upcoming street projects. The large decrease in unrestricted net deficit is primarily due to the annual change in the City’s net pension and other post employment benefits (OPEB) liability valuations.
• The City’s total program and general revenues decreased by $4.6 million. With the conclusion of the COVID pandemic and the related fiscal stimulus response from the U.S. Government, grant revenues decreased this fiscal year by approximately $6.9 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 $4.6 million. Charges for services also increased this year by approximately $0.4 million, primarily driven by the City’s business -type activities, discussed further within the business -type activities section. Lastly, interest in investments revenue decreased by $3.0 million resulting from the book loss recorded during the fair market adjustment of City investments at year end.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $140.6 million, an increase of $18.3 million in comparison with the prior fiscal year. Of the ending fund balance, approximatel y
4.2% or $5.9 million is Non-spendable in form for long-term receivables; 30.9% or $43.4 million is Restricted for housing programs, public improvements, streets and transportation, debt service obligations, special programs, and law enforcement;
34.2% or $48.2 million is Committed to street projects, retiree benefits, special programs, equipment replacement, economic recovery, and prudent reserve;
31.5% or $44.3 million is Assigned to capital; and -0.8% or negative $1.2 million is Unassigned.
35 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
6 • At the end of the current fiscal year, the Prudent Reserve established by the City Council totaled $14.1 million. This portion of Committed fund balance for the General fund is equal to 17.0% of budgeted General fund expenditures.
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
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
36 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
7 related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).
The government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City include general government, community services, planning, public ways and facilities, and public safety. The business -type activities of the City include Sanitation, Waterworks District, and Transit.
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 s tatements, 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 f or 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 fi nancial system and presents them grouped by related activities as four major 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 four major funds: the General fund, the Successor Housing Agency (SHA) to Community Development Agency Housing Administration fund, the Development Related Fees 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 37 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
8 provided in the form of combining statements in the Supplementary Information section of this report.
The City adopts annual appropriated budgets for the General fund, proprietary funds, and all special 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 system and permitting system operations, 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 governm ent-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 three fiduciary fund-types, Pension and Other Post Employment Benefit s (OPEB) Trust fund s, Private -Purpose Trust fund, and the Custodial funds. Custodial funds account for the collected assessments of the City in an agent capacity for the property owners for the payment of principal and interest amounts due to assessment district bondholders, and initiating foreclosure proceedings, if appropriate. The Private Purpose Trust fund accounts for the assets, deferred outflow of resources, and liabilities of the Successor Agency to the former Community Development Agency and its allocated revenue to pay estimated installment payments of enforceable 38 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
9 obligations until obligations of the f ormer redevelopment agency are paid in full and assets have been liquidated. The Pension and OPEB Trust funds account for the assets related to the City’s Public Agency Retirement Services (PARS) Retirement plan and for the assets, contributions, administration expenses, and benefit payments related to the City’s OPEB plan.
Notes to the basic financial statements
The notes to the basic financial statements 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 OPEB 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, assets and deferred outflows exceeded liabilities and deferred inflows by $422.8 million at the close of the most recent fiscal year.
A significant portion of the City’s net position (79.0%) 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; consequent ly, 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 ( 23.6%) 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) (- 2.6%) 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 Statement No. 68 and GASB Statement No. 75, all local governments must now recognize on their statements of net position the full impact of the local government’s unfunded pension and OPEB 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.
39 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
10 City of Simi Valley’s Net Position
June 30, 2022 and 2021
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 OPEB. 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.
2022 2021 2022 2021 2022 2021
Current and ot
her assets 202,598,516$ 174,784,131$ 123,005,826$ 112,668,213$ 325,604,342$ 287,452,344$ Capital assets 236,074,636 238,372,884 151,302,937 148,000,879 387,377,573 386,373,763 Total assets 438,673,152 413,157,015 274,308,763 260,669,092 712,981,915 673,826,107 Deferred outflows 37,199,550 32,484,992 5,841,452 5,191,915 43,041,002 37,676,907 Long-term liabilities
outstanding 190,827,776 221,480,111 58, 619,859 68,255,364 249,447,635 289,735,475 Other liabilities 7,752,633 12,785,281 7,723,050 10,462,572 15,475,683 23,247,853 Total liabilities 198,580,409 234,265,392 66,342,909 78,717,936 264,923,318 312,983,328 Deferred inflows 56,408,791 12,452,861 11,855,189 561,460 68,263,980 13,014,321 Net position:
Net investment in capital
assets 200,958,735 203,826,589 133, 253,370 133,644,109 334,212,105 337,470,698 Restricted 87,578,328 78,265,866 12,266,569 9,843,643 99,844,897 88,109,509 Unrestricted (67,653,561) (83,168,701) 56,432,178 43,093,859 (11,221,383) (40,074,842) Total net position $220,883,502 $198,923,754 $201,952,117 $186,581,611 $422,835,619 $385,505,365 Governmental Business-Type
Activities Activities Total
40 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
11 City of Simi Valley’s Changes in Net Position
Years Ended June 30, 2022 and 2021
During the current fiscal year, City -wide revenues decreased by $ 4.6 million and expenses decreased by $ 16.4 million as compared to the prior fiscal year. The combination of these amounts provided a net increase of $ 11.8 million in net position.
Revenue categories with increases from the prior fiscal year consisted of charges for services ($0.4 million), property tax ($1.2 million) and other taxes ($3.4 million), and other revenues ($ 0.3 million) offset by decreases in the categories of operating and capital grants and contributions ($6.9 million), and investment earnings ($3.0 million).
FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21 Revenues:
Program Revenues:
Charges for services 11,820,544$ 11,767,698$ 75,204,015$ 74,860,453$ 87,024,559$ 86,628,151 Operating grants and contributions 19,932,730 22,170,916 3,459,938 6,923,917 23,392,668 29,094,833 Capital grants and contributions 546,707 505,218 2,484,089 3,745,985 3,030,796 4,251,203 General Revenues:
Property taxes 39,173,353 37,990,791 - - 39,173,353 37,990,791 Other taxes 34,677,486 31,217,155 - - 34,677,486 31,217,155 Interest on investments (292,256) 699,790 (2,166,729) (156,009) (2,458,985) 543,781 Other 295,538 - 179,195 155,039 474,733 155,039 Total revenues 106,154,102 104,351,568 79,160,508 85,529,385 185,314,610 189,880,953 Expenses:
General government 22,292,284 25,475,510 - - 22,292,284 25,475,510 Community services 5,764,129 6,249,470 - - 5,764,129 6,249,470 Planning 5,522,741 6,613,359 - - 5,522,741 6,613,359 Public ways and facilities 17,753,088 19,861,510 - - 17,753,088 19,861,510 Public safety 35,758,204 37,445,831 - - 35,758,204 37,445,831 Interest on long-term debt 1,285,332 1,356,832 - - 1,285,332 1,356,832 Indirect expense allocation (7,576,038) (8,033,300) 7,576,038 8,033,300 - - Sanitation - - 12,320,909 15,702,385 12,320,909 15,702,385 Waterworks District No. 8 - - 41,466,529 45,207,672 41,466,529 45,207,672 Transit - - 5,875,642 6,515,024 5,875,642 6,515,024 Total expenses 80,799,740 88,969,212 67,239,118 75,458,381 148,038,858 164,427,592 Change in net position before
transfers and contributions 25,354,362 15,382,357 11,921,390 10,071,004 37,275,752 25,453,361 Transfers (3,449,116) 1,115,388 3,449,116 (1,115,388) - - Cont
ributions from Successor Agency 54,502 51,484 - - 54,502 51,484 Change in Net Position 21,959,748 16,549,229 15,370,506 8,955,616 37,330,254 25,504,845 Net position - beginning of the year 198,923,754 182,374,525 186,581,611 177,625,995 385,505,365 360,000,520 Net Position - ending 220,883,502$ 198,923,754$ 201,952,117$ 186,581,611$ 422,835,619$ 385,505,365$ Activities Activities Total
Governmental Business-Type
41 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
12 Governmental Activities. Governmental activities increased the City’s net position $22.0 million as compared to an increase of $16.5 million in the prior year. This is an increase of $5.5 million from the prior fiscal year.
For governmental activities, total revenues increased by 1.7% ($1.8 million) from the prior fiscal year.
Program revenues decreased by 6.2% ($2.1 million) from the prior fiscal year. This is primarily due to:
• Operating grants and contributions posted a decrease of 10.1% ($2.2 million) due to exhaustion of federal financial assistance related to the COVID pandemic.
• Capital grants and contributions increased by 8.2% ($0.1 million) due to an increase in reimbursable capital project expenditures.
General revenues increased 5.6% ($3.9 million) primarily due to:
• Property tax revenue increased by 3.1% ($1.2 million) as property taxpayers recovered from the pandemic and resumed payments, property values held strong and even continued to increase, and property sales occurred.
• Other taxes increased by 11.1% ($3.5 million) primarily driven by an increase in sales tax ($2.3 million) and transient occupancy tax ($0.7 million).
• Investment earnings decreased by 141.8% ($1.0 million) primarily due to the decrease in fair market value of the securities in which the City invests ($1.7 million). This fair market value adjustment is required per the Government Accounting Standards Board, however, it is important to note that this loss is not realized unless th e City’s securities ( e.g., bonds) are sold prior to their maturity, which is unlikely.
• Other general revenue increased 100.0% ( $0.3 million) primarily due to the commencement of the Kaiser building lease next to the Civic Center.
For governmental activities, total expenses decreased 9.2 % ($8.2 million) primarily due to the updated valuation of the City’s net pension liability ( -$12.4 million) offset by the updated valuation of the City’s net OPEB liability ($7.2 million).
42 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
13 Charges for services,
$11.8, 11%
Operating grants
and contributions,
$19.9, 19%
Capital grants and
contributions,
$0.6, 1%
Property taxes,
$39.2, 37%
Other taxes,
$34.7, 32%
Interest on investments,
-$0.3, 0%
Other,
$0.3, 0%
Revenues by Source - Governmental Activities
(in millions)
Total Revenue = $106.2
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
General
government
Community
services
Planning Public ways
and facilities
Public safety Interest on
long term
debt
$10.1
$5.1 $6.3
$9.7
$1.2 $0.0
$13.9
$6.2 $5.9
$17.7
$35.8
$1.3
Program Revenues and Expenses - Governmental Activities (in millions)
Program Revenues Expenses
43 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
14 Business-type Activities. Business -type activities increased the City’s net position $15.4 million as compared to a $9.0 million 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, decreased by
7.4% ($6.4 million). This is primarily due to:
• Charges for services increased by 0.5 % ($0.3 million) primarily driven by a $2.2 million increase of Sanitation service charges resulting from rate increases, offset by a $2.1 million decrease of Waterworks District No. 8 service charges driven by drought related reduced water usage. The City’s Transit operation also showed a $0.2 million increase in service charges as the City resumed the collection of bus fares this fiscal year, which were suspended as a result of the COVID pandemic.
• Operating grants and cont ributions decreased by 50.0% ($3.5 million) due to the reduction of available COVID related operating grants for the Transit division, specifically the American Rescue Plan Act (ARPA) funds received through the Federal Transit Administration’s 5307 formula grant . See additional information below.
• Capital grants and contributions decreased 33.7% ($1.3 million) due to a decrease in reimbursable capital project expenditures within the Transit division.
• Interest on investments decreased 1,288.8% ($2.0 million) resulting from the book loss recorded during the fair market adjustment of City investments at fiscal year- end. As discussed above, t his fair market value adjustment is required per the Government Accounting Standards Board, however, it is important to note that this loss is not realized unless the City’s securities ( e.g., bonds) are sold prior to their maturity, which is unlikely.
Expenses decreased 10.9% ($8.2 million) as compared to the prior fiscal year. This is primarily due to:
• Waterworks program expenses decreased by 8. 3% ($3. 7 million) due to a decrease in overall demand for water stemming from drought restrictions, and the reduction of the City’s net pension liability.
• Sanitation program expenses decreased by 21.5% ($3.4 million) due to a decrease in maintenance projects and the reduction of the City’s net pension liability.
• Transit program expenses decreased 9.8 % ($0.6 million) due to the reduction of the City’s net pension liability.
• Business-type activities also experienced a combined decrease of 5.7% ( $0.5 million) in indirect costs based on City needs and the annual analysis of indirect costs.
44 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
15 The Transit operation is primarily funded by Federal and State grants. During the prior fiscal year, additional funding was provided through the Federal Transit Administration’s (FTA) Coronavirus Aid, Relief, and Economic Security ( CARES) Act 5307 grant ($4.2 million) and ARPA 5307 grant ($2.2 million). This substantially reduced State funding used in the prior fiscal year, which is received and recorded in the Transportation special revenue fund until it is needed and transferred to Transit. The additional COVID related FTA grant funds were exhausted in the prior fiscal year and regular funding sources were utilized in the current fiscal year.
Charges for services,
$75.2, 93%
Operating grants
and contributions,
$3.5, 4%
Capital grants and
contributions,
$2.5, 3% Other,
$0.2, 0%
Revenue by Source - Business-Type Activities
(in millions)
Total Revenue = $81.4
45 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
16 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.
• Committed fund balance represents funds that can only be designated for specific purposes as established 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.
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Sanitation Waterworks Transit
$27.8
$50.3
$3.0
$15.3
$44.1
$7.8
Program Revenue and Expenses - Business-Type Activities (in millions)
Program Revenues Expenses
46 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
17 • 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 combined ending fund balances of $140.6 million , an increase of $18.3 million when compared to the prior fiscal year balance of $122.3 million. Of this total amount, 4.2% ($5.9 million) is Non-spendable in form, comprised of long- term receivables ; 30.9 % ($ 43.4 million) is Restricted for specific activities including housing programs ($12.0 million) , public improvements ($7.9 million), streets and transportation ($16.0 million), debt service ($1.3 million), special programs ($4.8 million), and law enforcement programs ($1.4 million);
34.2% ($48.2 million) is classified as Committed for activities such as streets ($15.6 million), retiree benefits ($0.5 million), special programs ($0.8 million), equipment ($6.1 million), economic recovery ($11.1 million) , and prudent reserve ($14.1 million); 31.5% ($44.3 million) is classified as Assi gned comprised of capital; and -0.8% (negative $1.2 million) of the fund balance is Unassigned.
The fund balance of the City’s General fund increased by $ 6.4 million during the current fiscal year, for a total ending balance of $76.7 million. In comparison to last fiscal year, overall revenues in the General fund increased by $3.0 million primarily due to an increase in taxes of $4.6 million. This increase was driven by an increase in sales tax ($2.3 million), property tax ($1.2 million), and transient occupancy tax ($0.7 million). In addition, there was an increase in license and permit revenue of $1.3 million from increased building permit activity. These increases were offset by a decrease in COVID related grants of $2.5 million. Expenditures and net transfers out increased by $14.6 million primarily due to an increase in transfers out of $12.4 million into the Streets and Roads fund for various street repair projects and regular year over year increases to current expenditures totaling $3.0 million in general government ($0.5 million), community services ($0.4 million), planning ($0.4 million), public ways and facilities ($0.7 million), and public safety ($1. 0 million).
The fund balance of the SHA to Community Development Agency Housing Administration fund decreased by $0.3 million for a total ending balance of $5.1 million. In comparison to last fiscal year, overall revenues in the fund revenue decreased by $0.1 million primarily due to a reduction of first time home buyer loan payoffs. In comparison to last fiscal year, expenditures and net transfers increased by $0.5 million primarily due to a decrease in transfers in of $0.4 million, driven by the 20.0% set aside for the repayment of the loan 47 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
18 agreement between the City and former Community Development Agency. This fiscal year included the final payment on the loan balance which was significantly smaller than the payments made in prior fiscal years.
The Development Related Fees fund was classified under Nonmajor Governmental funds in the prior fiscal year. The fund balance of the Development Related Fees fund increased by $0.8 million during the current fiscal year for a total ending balance of $14.4 million. In comparison to last fiscal year, overall revenues in the fund decreased $1.6 million primarily due to a decrease in other revenue of $1.0 million. The prior fiscal year other revenues amount included the last of four developer agreement payments ($1.0 million) made by Runkle Canyon, LLC, for its related development project. In addition, there was a decrease in service charges of $0.6 million also stemming from the absence of revenues (program participation fees of $0.8 million) related to the Runkle Canyon, LLC development. In comparison to last fiscal year, overall expenditures and net transfers out decreased $1.1 million primarily due to a decrease in net transfers out of $1.1 million resulting from reduced capital project developer agreements funding needs to both the Public Facility Improvements and Streets and Roads funds.
The fund balance of the Streets and Roads fund increased by $12.5 million during the current fiscal year for a total ending balance of $15.6 million. In comparison to last fiscal year, overall revenues in the fund increased by $0.4 million primarily due an increase of $0.5 million in other revenue from trust fund releases processed to fund the Arroyo Simi Greenway Phase II and Phase III projects. In comparison to last fiscal year, overall expenditures and net transfers out decreased $11.6 million primarily due to an increase in transfers in of $13.8 million related to one time street funding from the General fund ($12.4 million), and Road Maintenance and Rehabilitation Account fund ($2.0 million), offset by reduced funding from the Transportation fund ($0.2 million) and Development Related Fees fund ($0.2 million). In general, budgeted projects in this fund are pre-funded with transfers from various funds and/or funded from reimbursement basis grants.
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 the current fiscal year, the Sanitation and Waterworks funds showed increases in net position of $9.6 million and $5.9 million, respectively, and the Transit fund showed a decrease in net position of $0.9 million. Restricted net p osition for the Sanitation and Waterworks funds was $11.1 million and 1.1 million, respectively; Unrestricted net position of the Sanitation, Waterworks, and Transit funds was $40.0 million, $21.1 million, and a negative $5.1 million, respectively. Other factors concerning the finances of these funds have been addressed in the discussion of Business-type activities above.
48 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
19 General Fund Budgetary Highlights
The General fund final amended expenditure budget of $83.2 million was $8.3 million greater than the original expenditure budget of $74.9 million. The primary contributors of the increase are briefly summarized as follows:
• $5.0 million was appropriated for administrative services and City -wide support resulting from the American Rescue Plan Act grant funds, which is also the primary driver of the increased revenue budget for grants.
• $0.7 million was appropriated for community services primarily for the carry forward of unused funds appropriated in the prior fiscal year for animal services provided by the County of Ventura ($0.3 million), and for the use of Shuttered Venue Operators Grant funds received by the Cultural Arts Center ($0.3 million).
• $1.2 million was appropriated for public ways and facilities primarily for the carry forward of unused funds appropriated in the prior fiscal year for various items.
• $0.4 million was appropriated for public safety for the carry forward of unused funds appropriated in the prior fiscal year for various items, and for additional overtime costs related to and reimbursed by the Officer Traffic Safety grant program.
The final amended transfers out budget of $16.7 million was $12.0 million greater than the original budget of $4.7 million, primarily driven by an $11.8 million transfer appropriation to the Streets and Roads fund for various major street rehabilitation projects.
Actual expenditures of $70.1 million were $13.1 million less than the General fund final amended expenditure budget of $83.2 million primarily due to the following:
• $5.6 million savings in administrative services and City-wide support from unused emergency funds.
• $1.5 million savings in community services from salary savings ($0.4 million), animal service costs ($0.6 million), and Cultural Arts Center expenses ($0.4 million).
• $0.8 million savings in planning from salary savings ($0.5 million), professional services ($0.1 million), and other contract services ($0.1 million).
• $2.6 million savings in public ways and facilities from salary savings ($1.1 million) and contract services ($1.2 million).
• $2.0 million savings in public safety from sala ry savings ($1.5 million), uniform costs ($0.2 million), and equipment maintenance costs ($0.1 million).
49 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
20 Actual revenues of $88.8 million were $5. 8 million more than the General fund final budgeted amount of $82.9 million primarily due to the following factors, combined with conservative budgeting practices:
• $3.7 million of sales tax collections over the budgeted amount due to strong economic activity and prices increases due to inflation.
• $ 1.6 million of building permit fee collections over the budgeted amount due to stronger than expected building permit activity.
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, 2022, amounts to $38 7.4 million (net of accumulated depreciation). This is an increase of $ 1.0 million 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:
• $ 2.5 million in street projects were completed.
• $1.6 million in stormwater rehabilitation projects were completed. • $1.4 million in water tank replacement projects were completed. • $1.0 million in sewer line rehabilitation projects were completed. • $1.0 million in a water tank repair project was completed.
Additional information on the City’s capital assets can be found in note III E of the notes to the financial statements.
City of Simi Valley’s Capital Assets
(net of accumulated depreciation)
June 30, 2022 and 2021
2022 2021 2022 2021 2022 2021
Land 10,621,811$ 10,621,811$ 1,216,994$ 1,216,994$ 11,838,805$ 11,838,805$ Buildings and improvements 31,466,898 33,033,641 5,945,209 6,221,938 37,412,107 39,255,579 Furnishings and equipment 3,285,627 3,712,718 3,215,293 3,303,814 6,500,920 7,016,533 Computers 455,106 276,565 - - 455,106 276,565 Vehicles 1,541,377 1,890,552 2,713,065 3,882,176 4,254,442 5,772,728 Infrastructure 167,765,523 172,494,649 116,237,285 114,103,484 284,002,808 286,598,133 Intangibles 2,862,182 3,122,501 - 3,371 2,862,182 3,125,872 Right-of-use asset 2,519,910 - - - 2,519,910 - Construction-in-progress 15,556,202 13,220,445 21,975,091 19,269,105 37,531,293 32,489,550 Total 236,074,636$ 238,372,883$ 151,302,937$ 148,000,882$ 387,377,573$ 386,373,765$
Governmental Business-Type
Activities Activities Total
50 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
21 Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $ 67.3 million . This entire amount represents bonds secured solely by specified revenue sources (e.g., revenue bonds).
City of Simi Valley’s Outstanding Bonded Debt at June 30, 2022 and 2021:
Additional information on the City’s long-term debt can be found in note III H.
Economic Factors and Next Year’s Budgets and Rates
In June 2022, the City Council adopted the fiscal year 2022- 23 annual budget. The adopted budget is structurally balanced with a funding level that begins to address long- term funding deficiencies with one-time dollars. Due to the many years of well -managed budgetary decisions, the City continues to experience revenue growth at a slightly faster rate than expenditures. The City is in a strong financial position and this will allow the City Council to make strategic decisions for the foreseeable future.
In light of the year -end surpluses, staff evaluated the infrastructure and other budgetary needs of the City, as well as the City’s pension and OPEB liability , while weighing the continued growth of the City’s General f und balance. In April 2022, the City Council approved a fund balance policy for the General f und that will strategically allocate prior year-end General f und surplus dollars. Included with the fiscal year 2022- 23 adopted budget is the reallocation of the fiscal year 2020-21 surplus funds into three specific use “holding” funds. In accordance with the fund balance policy, $3.2 million will be placed in the Infrastructure Investment fund, $3.2 million will be placed in the Retirement Obligation fund, and $1.6 million will be placed in a Contingency fund.
The City’s economic development efforts continue to demonstrate success in reducing vacancy rates and attracting new business to the community. With historically low vacancy rates in the industrial sector, the City’s vacancy rates for the office and retail sectors continue to decline from 2020 and 2021 rates and show strength in relationship to the region. The City’s “business friendly” and “film friendly” reputations are among the leading reasons for the City’s success. To prepare for the future, the City is in the midst of preparing an Economic Development Strategic Plan that will help guide the City’s efforts for the next 5 years.
2022 2021
2014A lease revenue refunding bond 14,845,000$ 15,645,000$ 2016 New Clean Renewable Energy Bonds (NCREBs) 7,511,274 7,883,943 2016 NCREBs tax exempt 589,602 621,707
2017 lease agreement 4,841,363 5,260,532
2018 lease agreement 5,034,290 5,331,146
2019 lease agreement 33,236,284 33,816,566
Bond premium (discount) 1,199,049 1,297,687 Total 67,256,862$ 69,856,581$
Governmental and Business-Type
Activities
51 CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
22 The City is fo recasting strong sales tax revenue in fiscal year 2022- 23 as the economy recovers from the pandemic and unemployment declines. Vehicles remain in high demand and the sale of general consumer goods is strong. 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.
According to the California Employment Development Department, the unemployment rate in Simi Valley has consistently remained below that of Ventura County, an indicator of the strength of the local economy. The final unemployment rate for June 2022 was
3.0%, as compared to 3.2% for Ventura County, and 4.0% for California.
The City’s gross assessed property values increased by 3.9% in fiscal year 2021-22 from the prior fiscal year and has an average increase of 4.2% year-over-year for the last four years, demonstrating strong property values and positive growth for the local economy.
The City is overall in a good financial position, with a General Fund spendable fund balance of $70.8 million, which will allow the City Council to continue to make strategic decisions directed at improving the services we provide to our citizens.
Requests for Information
This financial report is designed to provide a general overview of the City of Simi Valley’s finances for all those with an interest in the City’s financial condition. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Simi Valley, Department of Administrative Services, 2929 Tapo Canyon Road, Simi Valley CA 93063. 52 Basic Financial Statements
Basic Financial
Statements
53 54
Government-Wide
Financial Statements
55 56
CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying notes to the basic financial statements.
23 Governmental Business-Type
Activities Act ivities Total
ASSETS
Current assets:
Cash and investments (note III A) 156,141,364$ 97,42 5,940$ 253,567,304$ Accounts receivable (net of allowance for uncollectibles) (note III C) 2,127,937 6,124,477 8,252,414 Taxes receivable 6,475,184 355,121 6,830,305 Grants receivable 692,488 3,748,431 4,440,919 Lease receivable 259,373 445,291 704,664 Interest receivable 461,200 271,906 733,106 Internal balances (note I E 2) 1,720,405 (1,720,405) - Inventories - 1,533,589 1,533,589 Restricted cash and investments (note III A):
Customer deposits - 1,113,744 1,113,744 Connection fees - 11,152,825 11,152,825 Total current assets 167,877,951 120,450,919 288,328,870 Noncurrent assets:
Lease receivable 9,734,097 2,554,907 12,289,004 Loans receivable (note III B) 24,986,468 - 24,986,468 Capital assets (note III E):
Capital assets not being depreciated 26,178,013 23,192,085 49,370,098 Capital assets being depreciated, net 209,896,623 128,110,852 338,007,475 Total noncurrent assets 270,795,201 153,857,844 424,653,045 Total assets 438,673,152 274,308,763 712,981,915
DEFERRED OUTFLOWS OF RESOURCES
Related to loss on debt refunding 156,740 - 156,740 Related to pensions (note IV D) 14,285,999 2,997,094 17,283,093 Related to other post employment benefits (note IV E) 22,756,811 2,844,358 25,601,169 Total deferred outflows of resources 37,199,550 5,841,452 43,041,002
LIABILITIES
Current liabilities:
Accounts payable 3,278,333 5,469,036 8,747,369 Salaries and benefits payable 2,911,957 410,791 3,322,748 Accrued interest payable 395,643 255,051 650,694 Deposits 1,166,700 - 1,166,700 Liabilities payable from restricted assets - 1,127,679 1,127,679 Unearned revenues - 460,493 460,493 Current portion of long-term obligations (note III H) 5,814,799 1,694,154 7,508,953 Total current liabilities 13,567,432 9,417,204 22,984,636 Noncurrent liabilities (note III H):
Noncurrent portion of long-term obligations 185,012,977 56,925,705 241,938,682 Total liabilities 198,580,409 66,342,909 264,923,318
DEFERRED INFLOWS OF RESOURCES
Related to leases 9,542,108 2,899,499 12,441,607 Related to pensions (note IV D) 35,114,331 7,595,192 42,709,523 Related to other post employment benefits (note IV E) 11,752,352 1,360,498 13,112,850 Total deferred inflows of resources 56,408,791 11,855,189 68,263,980
NET POSITION
Net investment in capital assets 200,958,735 133,253,370 334,212,105 Restricted for:
Capital projects 37,363,525 - 37,363,525 Community development 36,817,239 - 36,817,239 Other purposes 13,397,564 - 13,397,564 Sewer connection fees and water capital improvement charges - 12,266,569 12,266,569 Unrestricted (67,653,561) 56,432,178 (11,221,383) Total net position 220,883,502$ 201,952,117$ 422,835,619$ 57 CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
24 Indirect Operating
Expenses Full Cost Charges for Grants and
Expenses Allocation by Function Services Contributions
Primary government:
Governmental activities:
General government 22,292,284$ (8,402,110)$ 13,890,174$ 1,618,424$ 8,270,077$ Community services 5,764,129 439,876 6,204,005 836,307 4,240,545 Planning 5,522,741 386,196 5,908,937 5,011,362 1,241,303 Public ways and facilities 17,753,088 - 17,753,088 3,940,427 5,510,749 Public safety 35,758,204 - 35,758,204 414,024 670,056 Interest on long term debt 1,285,332 - 1,285,332 - - Total governmental activities 88,375,778 (7,576,038) 80,799,740 11,820,544 19,932,730 Business-type activities:
Sanitation 12,320,909 3,002,957 15,323,866 26,077,946 335,334 Waterworks District No. 8 41,466,529 2,661,328 44,127,857 48,945,484 624,190 Transit 5,875,642 1,911,753 7,787,395 180,585 2,500,414 Total business-type activities 59,663,080 7,576,038 67,239,118 75,204,015 3,459,938 Total primary government 148,038,858$ -$ 148,038,858$ 87,024,559$ 23,392,668$ (Continued)
Program
Revenues
58 CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
25 Program
Revenues
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
Primary government:
Governmental activities:
182,108$ (3,819,565)$ -$ (3,819,565)$ General government - (1,127,153) - (1,127,153) Community services - 343,728 - 343,728 Planning 289,599 (8,012,313) - (8,012,313) Public ways and facilities 75,000 (34,599,124) - (34,599,124) Public safety - (1,285,332) - (1,285,332) Interest on long term debt 546,707 (48,499,759) - (48,499,759) Total governmental activities Business-type activities:
1,401,609 - 12,491,023 12,491,023 Sanitation 742,370 - 6,184,187 6,184,187 Waterworks District No. 8 340,110 - (4,766,286) (4,766,286) Transit 2,484,089 - 13,908,924 13,908,924 Total business-type activities 3,030,796$ (48,499,759) 13,908,924 (34,590,835) Total primary government General revenues:
44,516,382 39,173,353 - 39,173,353 Property taxes 23,631,522 - 23,631,522 Sales taxes 5,393,386 - 5,393,386 Franchise taxes 2,343,050 - 2,343,050 Business tax 3,309,528 - 3,309,528 Other taxes (292,256) (2,166,729) (2,458,985) Investment earnings 295,538 179,195 474,733 Miscellaneous (3,449,116) 3,449,116 - Transfers 54,502 - 54,502 Contributions from Successor Agency 70,459,507 1,461,582 71,921,089 Total general revenues, contributions and transfers 21,959,748 15,370,506 37,330,254 Change in net position 198,923,754 186,581,611 385,505,365 Net position-beginning 220,883,502$ 201,952,117$ 422,835,619$ Net position-ending (Concluded)
Primary Government
Net (Expense) Revenue and
Changes in Net Position
59 60
Fund Financial
Statements
61 62
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63 CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying notes to the basic financial statements.
26 SHA to Community
Development
Agency Housing Development
General Administration Related Fees
ASSETS
Cash and investments:
Held by City 64,960,148$ 5,152,123$ 14,414,886$ Held by bond trustee - - - Accounts receivable (net of allowance for 1,144,169 56,524 - uncollectibles) (note III C)
Taxes receivable 6,402,613 - - Grants receivable - - - Lease receivable 9,993,470 - - Interest receivable 295,688 14,902 26,759 Due from other funds (note III G) 3,719,317 303 - Loans receivable (note III B) 227,882 15,401,744 5,682,503 Advances to other funds (note III G) 5,692,380 - - TOTAL ASSETS 92,435,667$ 20,625,596$ 20,124,148$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable 1,896,526$ 77,781$ 11,256$ Salaries and benefits payable 2,871,652 15,215 - Due to other funds (note III G) 1,769 - - Advances from other funds (note III G) - - - Deposits 1,166,700 - - TOTAL LIABILITIES 5,936,647 92,996 11,256
DEFERRED INFLOWS OF RESOURCES
Leases 9,542,108 - - Unavailable revenue-housing programs - 15,401,743 5,682,502 Unavailable revenue-public safety - - - Unavailable revenue-community services 255,916 - - TOTAL DEFERRED INFLOWS OF RESOURCES 9,798,024 15,401,743 5,682,502 FUND BALANCES (note III I)
Nonspendable
Long-term receivables 5,920,262 - - Restricted
Housing programs - 5,130,857 5,182,396 Public improvements - - 7,389,967 Streets and transportation - - 1,858,027 Debt service - - - Special programs - - - Law enforcement - - - Committed
Streets - - - Retiree benefits 509,729 - - Special programs 764,872 - - Equipment - - - Economic recovery 11,084,838 - - Prudent reserve 14,139,864 - - Assigned
Capital 44,281,431 - - Unassigned - - - TOTAL FUND BALANCES 76,700,996 5,130,857 14,430,390
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 92,435,667$ 20,625,596$ 20,124,148$ Special Revenue
64 CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying notes to the basic financial statements.
27 Total
Streets & Nonmajor Governmental
Roads Gover nmental Funds
ASSETS
Cash and investments:
16,035,559$ 31,721,785$ 132,284,501$ Held by City - 1,324,129 1,324,129 Held by bond trustee 14,794 911,643 2,127,130 Accounts receivable (net of allowance for uncollectibles) (note III C)
- 72,571 6,475,184 Taxes receivable - 692,488 692,488 Grants receivable - - 9,993,470 Lease receivable - 57,893 395,242 Interest receivable - 10,670 3,730,290 Due from other funds (note III G) - 3,674,339 24,986,468 Loans receivable (note III B) - - 5,692,380 Advances to other funds (note III G) 16,050,353$ 38,465,518$ 187,701,282$ TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
439,658$ 791,886$ 3,217,107$ Accounts payable - 8,471 2,895,338 Salaries and benefits payable - 1,596,395 1,598,164 Due to other funds (note III G) - 3,348,380 3,348,380 Advances from other funds (note III G) - - 1,166,700 Deposits 439,658 5,745,132 12,225,689 TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- - 9,542,108 Leases - 3,866,722 24,950,967 Unavailable revenue-housing programs - 107,371 107,371 Unavailable revenue-public safety - - 255,916 Unavailable revenue-community services - 3,974,093 34,856,362 TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES (note III I)
Nonspendable
- - 5,920,262 Long-term receivables Restricted
- 1,700,332 12,013,585 Housing programs - 459,521 7,849,488 Public improvements - 14,150,013 16,008,040 Streets and transportation - 1,324,129 1,324,129 Debt service - 4,762,883 4,762,883 Special programs - 1,444,284 1,444,284 Law enforcement Committed
15,610,695 - 15,610,695 Streets - - 509,729 Retiree benefits - - 764,872 Special programs - 6,073,233 6,073,233 Equipment - - 11,084,838 Economic recovery - - 14,139,864 Prudent reserve - Assigned
- - 44,281,431 Capital - (1,168,102) (1,168,102) Unassigned 15,610,695 28,746,293 140,619,231 TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS OF
16,050,353$ 38,465,518$ 187,701,282$ RESOURCES AND FUND BALANCES Capital Projects
65 CITY OF SIMI VALLEY
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF POSITION – GOVERNMENTAL ACTIVITIES
JUNE 30, 2022
See accompanying notes to the basic financial statements.
28 Fund balances - total governmental funds $ 140,619,231 Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets in governmental activities are not financial resources and, t
herefore, are not reported in the governmental funds. 236,074,636 Internal 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. 7,826,791
Some liabilities are not due and payable in the current period and therefore are not reported in the funds:
Accrued interest payable (395,643)
Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 25,314,254 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 14,208,326$
Related to other post employment benefits 22,711,415 36,919,741 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 (34,910,285)
Related to other post employment benefits (11,727,907) (46,638,192) 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 (5,995,276)
Net OPEB liability (54,832,413)
Net pension liability (81,569,597)
2014A Lease Revenue Refunding (14,845,000)
2016 New Clean Renewable Energy Bonds (7,511,274)
2016 NCREBs Tax Exempt (589,602)
2017 Lease agreement (4,841,363)
2018 Lease agreement (5,034,290)
Right-of-use lease liability (2,576,192)
Unamortized bond premium (1,199,049)
Unamortized bond payable deferred on refunding 156,740
(178,837,316)
Net position of governmental activities $ 220,883,502
66 67
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
29 SHA to Community
Development
Agency Housing Development
General Administration Related Fees
REVENUES
Taxes 71,205,623$ -$ -$ Licenses and permits 5,116,843 - - Fines and forfeitures 275,599 - - Use of money and property (171,102) 578,263 412,919 From other governments 483,175 - - Grants 7,965,088 - - Service charges 1,597,621 13,861 1,037,695 Other revenues 2,279,942 - 100,000 Total revenues 88,752,789 592,124 1,550,614
EXPENDITURES
Current:
General government 9,891,262 - - Community services 3,749,095 - - Planning 5,301,683 861,132 - Public ways and facilities 15,121,987 - 132,401 Public safety 36,056,175 - - Total current expenditures 70,120,202 861,132 132,401 Capital outlay:
Streets and roads - - - Other capital projects - - - Total capital outlay - - - Debt service:
Principal - - - Interest - - - Other - - - Total debt service - - - Total expenditures 70,120,202 861,132 132,401
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 18,632,587 (269,008) 1,418,213
OTHER FINANCING SOURCES (USES)
Transfers in (note III G) 4,051,364 10,221 121,657 Transfers out (note III G) (16,374,403) - (777,118) Contributions from Successor Agency 54,502 - - Total other financing sources (uses) (12,268,537) 10,221 (655,461) NET CHANGE IN FUND BALANCES 6,364,050 (258,787) 762,752 FUND BALANCES - BEGINNING 70,336,946 5,389,644 13,667,638 FUND BALANCES - ENDING 76,700,996$ 5,130,857$ 14,430,390$ Special Revenue
68 CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
30 Total
Str
eets & Nonmajor Governmental
Roads Governmental Funds
REVENUES
-$ $2,645,216 73,850,839$ Taxes - - 5,116,843 Licenses and permits - 1,629 277,228 Fines and forfeitures - 453,599 1,273,679 Use of money and property 71,975 9,698,664 10,253,814 From other governments 190,272 1,214,247 9,369,607 Grants - 791,556 3,440,733 Service charges 575,797 105,001 3,060,740 Other revenues 838,044 14,909,912 106,643,483 Total revenues
EXPENDITURES
Current:
- 542,734 10,433,996 General government - 2,399,367 6,148,462 Community services - 603,965 6,766,780 Planning - 1,520,745 16,775,133 Public ways and facilities - 236,999 36,293,174 Public safety - 5,303,810 76,417,545 Total current expenditures Capital outlay:
2,580,817 - 2,580,817 Streets and roads - 2,760,824 2,760,824 Other capital projects 2,580,817 2,760,824 5,341,641 Total capital outlay Debt service:
- 1,920,799 1,920,799 Principal - 1,385,192 1,385,192 Interest - 4,801 4,801 Other - 3,310,792 3,310,792 Total debt service 2,580,817 11,375,426 85,069,978 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
(1,742,773) 3,534,486 21,573,505 OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
14,337,354 4,519,701 23,040,297 Transfers in (note III G) (121,657) (9,059,035) (26,332,213) Transfers out (note III G) - - 54,502 Contributions from Successor Agency 14,215,697 (4,539,334) (3,237,414) Total other financing sources (uses) 12,472,924 (1,004,848) 18,336,091 NET CHANGE IN FUND BALANCES 3,137,771 29,751,141 122,283,140 FUND BALANCES - BEGINNING 15,610,695$ 28,746,293$ 140,619,231$ FUND BALANCES - ENDING Capital Projects
69 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, 2022
See accompanying notes to the basic financial statements.
31 Net change in fund balances - total governmental funds 18,336,091$ Amounts 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. 6,181,914
Depreciation expense (11,086,965) (4,905,051)
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 800,000 Principal payment on 2016 New Clean Renewable Energy Bonds 372,669 Principal payment on 2016 New Clean Renewable Energy Bonds (Tax Exempt) 32,105 Principal payment on 2017 lease agreement 419,169
Principal payment on 2018 lease agreement 296,856
Principal payment on SV library lease 30,611 1,951,410 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) 14,073
Amortized premium on bonds 98,638
Amortized deferral on refunding (12,851)
Pension-related expenses 12,280,442
OPEB-related expenses (7,158,492)
Compensated absences (net) 260,559 5,482,369
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (189,484) 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. 1,284,413
Change in net position of governmental activities 21,959,748$ Capital outlay (This amount includes other current capitalizable expenditures of $1,202,783 net of $362,510 disposition
70 CITY OF SIMI VALLEY
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
32 Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes:
Sales 19,929,619$ 19,929,619$ 23,631,522$ 3,701,903$ Property 35,962,298 35,962,298 36,528,137 565,839 Franchise 4,800,000 4,800,000 5,393,386 593,386 Business and other 4,742,500 4,742,500 5,652,578 910,078 Licenses and permits 2,887,000 2,887,000 5,116,843 2,229,843 From other governments 323,278 323,278 483,175 159,897 Grants 229,300 7,892,518 7,965,088 72,570 Service charges 2,319,400 2,319,400 1,597,621 (721,779) Fines and forfeitures 580,200 580,200 275,599 (304,601) Use of money and property 892,215 892,215 (171,102) (1,063,317) Other revenues 2,261,360 2,610,411 2,279,942 (330,469) Total revenues 74,927,170 82,939,439 88,752,789 5,813,350
EXPENDITURES
Current:
City administration 4,661,771 4,690,079 4,396,882 293,197 Attorney 1,450,994 1,456,464 1,172,957 283,507 Administrative services and city-wide support 4,071,473 9,913,931 4,321,423 5,592,508 Community services 4,558,233 5,293,958 3,749,095 1,544,863 Planning 5,961,180 6,066,052 5,301,683 764,369 Public ways and facilities 16,529,699 17,684,099 15,121,987 2,562,112 Public safety 37,635,569 38,071,087 36,056,175 2,014,912 Total expenditures 74,868,919 83,175,670 70,120,202 13,055,468
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 58,251 (236,231) 18,632,587 18,868,818
OTHER FINANCING SOURCES (USES)
Transfers in 4,570,389 4,722,992 4,051,364 (671,628) Transfers out (4,652,177) (16,704,030) (16,374,403) 329,627 Contributions from Successor Agency 54,502 54,502 54,502 - Total other financing sources (uses) (27,286) (11,926,536) (12,268,537) (342,001) NET CHANGE IN FUND BALANCE 30,965 (12,162,767) 6,364,050 18,526,817
FUND BALANCES - BEGINNING 70,336,946 70,336,946 70,336,946 - FUND BALANCES - ENDING 70,367,911$ 58,174,179$ 76,700,996$ 18,526,817$ Budgeted Amounts
71 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, 2022
See accompanying notes to the basic financial statements.
33 Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 305,000$ 305,000$ 578,263$ 273,263$ Service charges 17,000 17,000 13,861 (3,139) Total revenues 322,000 322,000 592,124 270,124
EXPENDITURES
Planning (ES):
Materials, supplies and services 1,406,750 1,409,692 861,132 548,560
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,084,750) (1,087,692) (269,008) 818,684
OTHER FINANCING SOURCES
Transfers in 131,687 131,687 10,221 (121,466) Total other financing sources 131,687 131,687 10,221 (121,466) NET CHANGE IN FUND BALANCES (953,063) (956,005) (258,787) 697,218 FUND BALANCES - BEGINNING 5,389,644 5,389,644 5,389,644 - FUND BALANCES - ENDING 4,436,581$ 4,433,639$ 5,130,857$ 697,218$ Budgeted Amounts
72 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, 2022
See accompanying notes to the basic financial statements.
34 Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 355,857$ 355,857$ 412,919$ 57,062$ Service charges 225,500 225,500 1,037,695 812,195 Other revenues - - 100,000 100,000 Total revenues 581,357 581,357 1,550,614 969,257
EXPENDITURES
Public ways and facilities (PW):
Materials, supplies and services 114,000 174,600 132,401 42,199
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 467,357 406,757 1,418,213 1,011,456
OTHER FINANCING SOURCES
Transfers in - - 121,657 121,657 Transfers out (776,457) (777,512) (777,118) 394 Total other financing sources (776,457) (777,512) (655,461) 122,051 NET CHANGE IN FUND BALANCES (309,100) (370,755) 762,752 1,133,507 FUND BALANCES - BEGINNING 13,667,638 13,667,638 13,667,638 - FUND BALANCES - ENDING 13,358,538$ 13,296,883$ 14,430,390$ 1,133,507$ Budgeted Amounts
73 CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
See accompanying notes to the basic financial statements.
35 Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Servi ce Funds
ASSETS
Current assets:
Cash and investments 68,567,685$ 28,465,297$ 392,958$ 97,425,940$ 22,532,734$ Customer receivable 167,039 4,688,417 - 4,855,456 807 Other receivable 889,075 373,324 6,622 1,269,021 - Taxes receivable 355,121 - - 355,121 - Grants receivable - - 3,748,431 3,748,431 - Lease receivable - 3,000,198 - 3,000,198 - Inventories 685,436 665,644 182,509 1,533,589 - Interest receivable 182,330 89,576 - 271,906 65, 958 Restricted cash and investments:
Customer deposits - 1,113,744 - 1,113,744 - Connection fees 11,138,890 13,935 - 11,152,825 - Total current assets 81,985,576 38,410,135 4,330,520 124,726,231 22,599,499 Noncurrent assets:
Capital assets (net of accumulated depreciation) (note III E):
Land 765,660 451,334 - 1,216,994 - Buildings and improvements 3,538,512 664,703 1,741,994 5,945,209 - Furnishings and equipment 1,367,365 1,376,417 471,511 3,215,293 - Vehicles 363,706 477,713 1,871,646 2,713,065 - Distribution system 64,809,947 51,427,338 - 116,237,285 - Construction-in-progress 16,242,424 4,003,770 1,728,897 21,975,091 - Total noncurrent assets 87,087,614 58,401,275 5,814,048 151,302,937 - TOTAL ASSETS 169,073,190 96,811,410 10,144,568 276,029,168 22,599,499
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 1,241,054 1,098,966 657,074 2,997,094 77,673 Related to other post employment benefits 1,479,531 650,062 714,765 2,844,358 45,396 Total deferred outflows of resources 2,720,585 1,749,028 1,371,839 5,841,452 123,069
LIABILITIES
Current liabilities:
Accounts payable 2,177,976 3,106,973 184,087 5,469,036 61,226 Salaries and benefits payable 196,077 123,584 91,130 410,791 16,619 Interest payable 255,051 - - 255,051 - Lease agreement 1,561,098 - - 1,561,098 - Compensated absences 68,872 33,544 30,640 133,056 2,545 Due to other funds (note III G) - - 2,132,126 2,132,126 - Unearned revenue 67,535 - 392,958 460,493 - Claims and legal services payable (note IV B) - - - - 3,072,645 Current liabilities payable from restricted assets:
Water service prepayments - 1,113,744 - 1,113,744 - Accounts payable restricted - 13,935 - 13,935 - Total current liabilities 4,326,609 4,391,780 2,830,941 11,549,330 3,153,035 Noncurrent liabilities:
Advances from other funds (note III G) - - - - 2,344,000 Lease agreement 31,675,185 - - 31,675,185 - Compensated absences 619,849 301,900 275,764 1,197,513 22,907 Claims and legal services payable (note IV B) - - - - 8,315,048 Net pension liability 7,307,686 5,796,131 3,588,788 16,692,605 318,588 Net other post employment benefits liability 3,601,318 1,898,643 1,860,441 7,360,402 101,987 Total noncurrent liabilities 43,204,038 7,996,674 5,724,993 56,925,705 11,102,530 TOTAL LIABILITIES 47,530,647 12,388,454 8,555,934 68,475,035 14,255,565
DEFERRED INFLOWS OF RESOURCES
Leases - 2,899,499 - 2,899,499 - Related to pensions 3,387,634 2,353,573 1,853,985 7,595,192 204,046 Related to other post employment benefits 710,541 303,229 346,728 1,360,498 24,445 Total deferred inflows of resources 4,098,175 5,556,301 2,200,713 11,855,189 228,491
NET POSITION
Net investment in capital assets 69,038,047 58,401,275 5,814,048 133,253,370 - Restricted for:
Sewer connection fees and 11,138,890 1,127,679 - 12,266,569 - water capital improvement charges
Unrestricted 39,988,016 21,086,729 (5,054,288) 56,020,457 8,238,512 TOTAL NET POSITION 120,164,953$ 80,615,683$ 759,760$ 201,540,396$ 8,238,512$ Beginning adjustment to unrestricted net position (339,373) Current adjustment to unrestricted net position 751,094 Net position of business-type activities 201,952,117$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Business-type Activities - Enterprise Funds
74 CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
36 Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
OPERATING REVENUES
Charges for sales and services 26,077,946$ 48,945,484$ 180,585$ 75,204,015$ $6,555,420
OPERATING EXPENSES
Salaries and benefits 6,321,569 3,833,464 3,572,646 13,727,679 326,204 Materials and supplies:
Water purchases - 31,604,563 - 31,604,563 - Utilities 816,005 1,093,245 35,193 1,944,443 - Chemicals 489,177 - - 489,177 - Other 165,473 1,369,222 468,680 2,003,375 - Services:
Maintenance projects 474,401 212,705 286,328 973,434 - Other 1,428,452 1,682,803 297,725 3,408,980 52,435 Insurance 454,676 247,250 381,915 1,083,841 - Claims and legal expenses - - - - 3,206,149 General administration 3,089,671 2,661,328 1,911,751 7,662,750 478,028 Depreciation 2,403,025 1,628,766 1,060,179 5,091,970 - Total operating expenses 15,642,449 44,333,346 8,014,417 67,990,212 4,062,816 OPERATING INCOME (LOSS) 10,435,497 4,612,138 (7,833,832) 7,213,803 2,492,604
NONOPERATING REVENUES AND EXPENSES
Grants 335,334 624,190 2,500,414 3,459,938 - Interest (2,151,544) (15,185) - (2,166,729) (299,897) Other 314 99,181 79,700 179,195 - Total nonoperating revenues (expenses) (1,815,896) 708,186 2,580,114 1,472,404 (299,897)
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 8,619,601 5,320,324 (5,253,718) 8,686,207 2,192,707
CONTRIBUTIONS AND TRANSFERS
Capital contributions 1,401,609 742,370 340,110 2,484,089 - Transfers in (note III G) - - 4,006,390 4,006,390 - Transfers out (note III G) (372,882) (143,225) (41,167) (557,274) (157,200) Total contributions and transfers 1,028,727 599,145 4,305,333 5,933,205 (157,200) CHANGE IN NET POSITION 9,648,328 5,919,469 (948,385) 14,619,412 2,035,507 NET POSITION-BEGINNING 110,516,625 74,696,214 1,708,145 6,203,005 NET POSITION - ENDING 120,164,953$ 80,615,683$ 759,760$ 8,238,512$ Current adjustment 751,094
Change in net position of business-type activities 15,370,506$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Business-type Activities - Enterprise Funds
75 CITY OF SIMI VALLEY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
37 Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanit
ation District No. 8 System Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from service charges and other revenues 26,134,507$ 50,674,745$ 259,410$ 77,068,662$ 6,555,420$ Cash paid for salaries and benefits (7,091,541) (4,454,966) (4,134,875) (15,681,382) (382,655) Cash paid for supplies and materials (2,260,953) (34,497,727) (660,668) (37,419,348) - Cash paid for general administration (3,002,957) (2,661,328) (1,911,753) (7,576,038) (455,705) Cash paid for services (2,101,242) (2,548,763) (763,504) (5,413,509) (1,050,733) Cash paid for insurance premiums and claims - - - - (4,310,192) Net cash provided (used) by operating activities 11,677,814 6,511,961 (7,211,390) 10,978,385 356,135 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers from (to) other funds (372,882) (143,225) 4,006,389 3,490,282 (157,200) Cash received from grants and other governments 335,334 624,190 10,873,870 11,833,394 - Cash received from interfund borrowing - - (7,455,339) (7,455,339) - Net cash provided (used) by noncapital financing activities (37,548) 480,965 7,424,920 7,868,337 (157,200) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Sewer connection fees and water capital improvement charges 1,213,812 500,070 - 1,713,882 - Cash received from issuance of bonds payable - - - - - Cash paid for issuance of bonds payable (580,283) - - (580,283) - Acquisition of capital assets (6,238,202) (1,460,421) (197,118) (7,895,741) - Net cash used by capital and related financing activities (5,604,673) (960,351) (197,118) (6,762,142) - CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments (3,163,913) (94,359) 2,914 (3,255,358) (314,216) NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 2,871,680 5,938,216 19,326 8,829,222 (115,281) CASH AND INVESTMENTS, BEGINNING OF YEAR 76,834,895 23,654,760 373,632 100,863,287 22,648,015 CASH AND INVESTMENTS, END OF YEAR 79,706,575$ 29,592,976$ 392,958$ 109,692,509$ 22,532,734$ Cash and investments 68,567,685$ 28,465,297$ 392,958$ 97,425,940$ 22,532,734$ Restricted cash and investments 11,138,890 1,127,679 - 12,266,569 - Cash and investments, end of year 79,706,575$ 29,592,976$ 392,958$ 109,692,509$ 22,532,734$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) 10,435,497$ 4,612,138$ (7,833,832)$ 7,213,803$ 2,492,604$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 2,403,025 1,628,766 1,060,179 5,091,970 - (Increase) decrease in prepaid expenses 261,445 - 119,895 381,340 225,738 (Increase) decrease in accounts receivable 56,561 1,689,772 23,077 1,769,410 37,234 (Increase) decrease in inventory (28,899) 31,978 (6,743) (3,664) - Increase (decrease) in accounts payable (418,400) (868,680) 52,411 (1,234,669) - Increase (decrease) in accrued payroll 60,791 35,450 9,984 106,225 10,436 Increase (decrease) in compensated absences 27,128 26,157 (2,183) 51,102 (5,852) Increase (decrease) in unearned revenue - 39,489 - 39,489 - Increase (decrease) in water service prepayments - - - - - Increase (decrease) in claims and legal services payable - - 14,579 14,579 (2,117,252) Increase (decrease) in net pension liability (636,723) (553,311) (409,542) (1,599,576) (269,732) Increase (decrease) in net other postemployment benefits liability (482,611) (129,798) (239,215) (851,624) (17,041) Adjustment for revenues and expenses classified as nonoperating - - - - - Total adjustments 1,242,317 1,899,823 622,442 3,764,582 (2,136,469) Net cash provided (used) by operating activities 11,677,814$ 6,511,961$ (7,211,390)$ 10,978,385$ 356,135$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital additions (187,800)$ (242,300)$ -$ (430,100)$ -$ Capital contributions 187,800 242,300 - 430,100 - Services to be provided from settlement agreement 67,535 - - - - Business-type Activities - Enterprise Funds
76 CITY OF SIMI VALLEY
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2022
See accompanying notes to the basic financial statements.
38 Pension
and Other Post
Private- Employment
Purpose Benefits (OPEB) Custodial
Trust Trust Funds
ASSETS
Cash and investments:
Held by City (note III A) 2,740,428$ -$ 7,481,244$ Held by bond trustee (note III A) 2,101,982 - 1,028,664 Restricted cash and investments held with Pension Trust (note III A) - 1,348,052 - Res
tricted cash and investments held with OPEB Trust (note III A) - 3,736,541 - Accounts receivable - - 3,662 Interest receivable 3,696 - - Capital assets not being depreciated (note V C) 1,124,174 - - TOTAL ASSETS 5,970,280 5,084,593 8,513,570
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding (note V D) 46,741 - - TOTAL DEFERRED OUTFLOWS OF RESOURCES 46,741 - -
LIABILITIES
Accounts payable and accrued liabilities - - 63,941 Accrued interest payable 249,021 - - Deposits - - 5,980,488 Due to bondholders - - 2,070,542 Long-term debt (note V E):
Due within one year 1,366,306 - - Due in more than one year 13,689,600 - - TOTAL LIABILITIES 15,304,927 - 8,114,971
FIDUCIARY NET POSITION (DEFICIT)
Held in trust for other purposes (9,287,906) - - Net position restricted for individuals - - 398,599 Net position restricted for pensions - 1,348,052 - Net position restricted for OPEB - 3,736,541 - TOTAL FIDUCIARY NET POSITION (DEFICIT) (9,287,906)$ 5,084,593$ 398,599$ 77 CITY OF SIMI VALLEY
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements.
39 Pension
and Other Post
Private- Employment
Purpose Benefits (OPEB) Custodial
Trust Trust Funds
ADDITIONS
Property taxes 2,512,484$ -$ -$ Other taxes - - 402,521 Contributions - 3,248,909 - Investment earnings 10,813 552,119 9,541 Transfers in 2,180,270 - - TOTAL ADDITIONS 4,703,567 3,801,028 412,062
DEDUCTIONS
Administrative expenses 7,250 938,351 13,368 Benefit payments - 2,299,733 - Interest and fiscal agency expenses of former 775,556 - 359,991 Simi Valley Community Development Agency
Contributions to other governments 54,502 - - Transfers out 2,180,270 - - TOTAL DEDUCTIONS 3,017,578 3,238,084 373,359 CHANGE IN FIDUCIARY NET POSITION 1,685,989 562,944 38,703 FIDUCIARY NET POSITION (DEFICIT) - BEGINNING (10,973,895) 4,521,649 359,896 FIDUCIARY NET POSITION (DEFICIT) - ENDING (9,287,906)$ 5,084,593$ 398,599$ 78 Notes to the Basic Financial Statements
Notes to the Basic
Financial Statements
79 80
CITY OF SIMI VALLEY LISTING OF NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
PAGE
40 I. Summary of significant accounting policies ............................................................. 42 A. Reporting entity ............................................................................................... 42 B. Financial statements ....................................................................................... 42 C. Measurement focus, basis of accounting, and
financial statement presentation .............................................................. 44 D. Implementation of new accounting pronouncements .................................. 47 E. Assets, liabilities, deferred outflows/inflows of resources and net position or fund balance .......................................................................... 48
1. Deposits and investments ............................................................................ 48
2. Receivables and payables ............................................................................ 48
3. Property taxes .............................................................................................. 48
4. Inventories and prepaid items....................................................................... 49
5. Restricted assets .......................................................................................... 49
6. Capital assets ............................................................................................... 49
7. Compensated absences ............................................................................... 50
8. Long-term obligations ................................................................................... 50
9. Pensions ....................................................................................................... 51
10. Post employment benefits other than pensions ............................................ 51
11.Deferred outflows/inflows of resources ......................................................... 51
12.Fund equity ................................................................................................... 52
13.Net position flow assumption ........................................................................ 52
14.Estimates ..................................................................................................... 53 II. Stewardship, compliance, and accountability .................................................... 53 A. Budgetary information .................................................................................... 53 B. Excess of expenditures over appropriations ................................................ 54 C. Deficit fund equity ............................................................................................ 54 III. Detailed notes on all funds .................................................................................. 54 A. Cash and investments ..................................................................................... 54 B. Loans receivable .............................................................................................. 59 C. Accounts receivable ........................................................................................ 64 D. Lease receivable .............................................................................................. 64 E. Capital assets ................................................................................................... 67 F. Construction commitments ............................................................................ 69 G. Interfund recei vables, payables, and transfers ............................................. 70 H. Long-term debt ................................................................................................. 72 I. Fund balance designations ............................................................................. 77 J. Assessment district bonds ............................................................................. 78 K. Conduit debt obligations .......................................................................................... 78 IV. Additional notes to the basic financial statements............................................ 79 A. Arbitrage rebate liability .................................................................................. 79 B. Risk management ............................................................................................ 79 C. Deferred compensation plans......................................................................... 79 D. Pension plans................................................................................................... 80 E. Other post employment benefits .................................................................... 90 F. Contingencies and subsequent events ......................................................... 97 G. Governmental Accounting Standards Board ................................................ 97 81 CITY OF SIMI VALLEY LISTING OF NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
PAGE
41 V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund ................................................................ 99 A. Reporting entity ............................................................................................... 99 B. Cash and investments ...................................................................................... 100 C. Capital assets.................................................................................................... 100 D. Deferred outflow of resources ......................................................................... 100 E. Long-term debt.................................................................................................. 101 F. Deficit fund equity ............................................................................................. 102 G. Insurance .......................................................................................................... 102
82 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
42 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 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,
83 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
43 • 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 functions 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”.
84 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
44 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 operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing ser vices 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) economi c 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 85 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
45 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 primary 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 (SHA) 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.
86 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
46 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.
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 ( e.g., 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 (e.g., percentage rates by class of employee applied against related payroll costs).
Geographical Information System (GIS)/Permits Operations fund accounts for operational costs associated with the City’s GIS and permitting computer systems. It is financed through contributions paid by each operating program based on allocated use of the systems.
87 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
47 Financial Information System (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.
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 and are reported on the accrual basis of accounting.
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.
Pension and Other Post Employment Benefits (OPEB) Trust funds account for the assets related to the City’s Public Agency Retirement Services (PARS) Retirement plan and for the assets, contributions, administration expenses, and benefit payments related to the City’s OPEB 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, 2022. 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. 87
In June 2017, GASB issued Statement No. 87 , Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset.
Under this Statement, a lessee is required to recognize a lease liability and an intangible right-of-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The implementation of this new accounting standards resulted in recognition of lease receivable and deferred inflows of 88 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
48 resources and lease payable and right -of-use lease asset in the City’s June 30, 2022, financial statements. See also Notes III.D, III.E, and III.H.
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 between 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 pr operty. 89 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
49 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 2021-22.
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 r estricted 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 connection 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.
90 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
50 Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, equipment, and infrastructure are depreciated using the straight line 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.
91 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
51 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 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. Post employment 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 outflows/inflows of resources
In addition to assets, the statements of net position and governmental funds balance sheets will sometimes report a separate section for deferr ed outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods 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 assets that applies to future periods 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. 92 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
52 12. Fund equity
Fund balance amounts are reported within one of the fund balance categories listed below.
• 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.
93 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
53 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 statements 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, s pecial 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.
94 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
54 B. Excess of expenditures over appropriations
For the fiscal year ended June 30, 202 2, expenditures exceeded appropriations in the Transportation (non-major) special revenue fund by $ 49,362. The necessary budget amounts were underestimated when completing the budget for this fund in the fiscal year 2022.
C. Deficit fund equity
The Planning Grant Fund Special Revenue Fund, Community Development Block Grant Fund, Landscape Maintenance District No. 1 Fund and Private Purpose Trust Fund had negative net positions of $184,568, $25,384, $958,150 and $9,287,906, respectively as of June 30, 2022. The City expects to eliminate deficits from future revenues or transfers from the General Fund. See Note V.F for the details on the Private Purpose Trust Fund.
III. Detailed notes on all funds
A. Cash and investments
The cash balances of all funds held by the City are pooled and invested for the purpose of increasing interest earnings through investment activities. The interest earned on these investments is allocated to participating funds based on their average daily cash balances.
Cash and investments at June 30, 2022 are classified as follows:
Statement of net position:
Cash and investments 253,567,304$
Restricted cash and investments 12,266,569
Fiduciary funds:
Cash and i
nvestments 10,221,672
Cash and investments held by bond trustee 3,130,646
Restricted investments held by Pension Trust 1,348,052
Restricted investments held by OPEB Trust 3,736,541
Total cash and investments 284,270,784$
Cash and investments at June 30, 2022 consisted of the following:
Cash on hand 6,400$
Deposits with financial institutions 40,216,306
Investments 244,048,078
Total cash and investments 284,270,784$
95 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
55 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 s ection 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 $50 Million State Code Limits City Portfolio Limits
*Prohibited by City Investment P olicy (with limited authorization for repurchase or reverse repurchase agreements)
96 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
56 Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organiz ation. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year -end for each investment type.
Concentration of Credit Risk
In addition to the limitations stipulated in the Authorized Investments table, the City’s investment policy lists the following limitations:
• Authorized supranational securities must have a maximum maturity not exceeding five years from the date of trade settlement and shall be rated at least “AA” or its equivalent by a nationally recognized statistical rating organization (NRSRO) at the time of purchase. Investments in supranational securities shall not exceed 30% of the portfolio.
Amount
1 Year
Or Less
1-2
Years
2-5
Years
U.S. Agencies 31,129,750$ 9,940, 350$ 17,365,541$ 3,823,860$ U.S. Treasuries 8,773,445 1,977,180 3,910,640 2,885,625 U.S. Corporates 26,641,026 5,454,249 14,950,908 6,235,870 Money market mutual funds 5,146,686 5,146,686 - - LAIF 164,141,931 164,141,931 - -
Held by bond trustees:
Money market mutual funds 3,130,647 3,130,647 - - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 146,981 1,468,981 - - Mutual Funds 4,937,612 4,937,612 - - Total 244,048,078$ 196,197,636$ 36,227,089$ 12,945,355$ Remaining Maturity in Years
Investment Type
Amount Aaa/Aaa-mf Aa1 Aa2 Aa3 A1 A2 A3 Not Rated
U.S. Agencies 31,129,750$ N/A 31,129,750$ -$ -$ -$ -$ -$ -$ -$ U.S. Treasuries 8,773,445 N/A 8,773,445 - - - - - - - U.S. Corporates 26,641,026 A3 999,500 - 3,885,890 2,005,800 5,797,264 8,005,244 5,947,329 - Money market mutual funds 5,146,686 N/A - - - - - - - 5,146,686 LAIF 164,141,931 N/A - - - - - - 164,141,931 Held by bond trustees:
Money market mutual funds 3,130,647 N/A 3,130,647 - - - - - - - Restricted investments held by
Pension and OPEB Trusts:
Money market mutual funds 146,981 AAA 146,981 - - - - - - - Mutual Funds 4,937,612 AAA 4,937,612 - - - - - - - Total 244,048,078$ 49,117,935$ -$ 3,885,890$ 2,005,800$ 5,797,264$ 8,005,244$ 5,947,329$ 169,288,617$ Minimum
Legal
Moody's Ratings as of Year End
Investment Type
97 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
57 • 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 an 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 an 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 the Local Agency Investment Fund ( 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.
98 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
58 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 cus todial 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, 2022, 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 LAIF that is regulated by California Code Sections 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 (GASB) Statement No. 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;
Issuer Investment Type Reported Amount
Federal National Mortgage Association U.S. Agencies 8,666,660$ Federal Farm Credit Bank U.S. Agencies 11,676,170
Federal Home Loan Bank U.S. Agencies 7,338,165
Federal Home Loan Mortgage Corporation U.S. Agencies 3,448,755 99 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
59 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, 2022:
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 dat a 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.
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 Amount Level 1 Level 2 Level 3
U
.S. Agencies $ 31,129,750 $ - $ 31,129,750 $ - U.S. Treasuries 8,773,445 - 8,773,445 - U.S. Corporates 26,641,026 - 26,641,026 - Held by bond trustees:
Money market mutual funds 3,130,647 - 3,130,647 - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 146,981 - 146,981 - Mutual Funds 4,937,612 4,937,612 - - Total investments measured at fair value: 74,759,461 $ 4,937,612 $ 69,821,849 $ - Investments measured at amortized cost:
Money market mutual funds 5,146,686
LAIF 164,141,931
Total investments $ 244,048,078
Fair Value Hierarch Category
Investment Type
100
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
60 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 fol lowing 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 Associ ates, 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.
• 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. 101
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
61 • 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 agreement 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.
• Simi Vintage Sycamore 650 LP
(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 3% annual interest for the term of the note.
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.
102
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
62 First Time Homebuyer Program
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 (FTHB) 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 1994-95 and 1995-96 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 1990-91 through 1992-93 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 % to be repaid in 10 years. The Cemetery fell into financial hardship and was unable to repay this loan. In fiscal year 1995-96, 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 the dissolution of redevelopment agencies.
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, 2022, no action has been taken.
103
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
63 Loans receivable (net of allowance for uncollectibles) balances at June 30, 202 2, were as follows:
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 Vista Del Monte Rental Condominiums 0.0% 55 2057 175,000 175,000 Vintage Paseo Apartments 3.0% 55 2059 882,410 882,410 Plaza del Sol Apartments 3.0% 55 2060 1,900,000 491,595 2,391,595 La Rahada Apartments 3.0% 55 2063 250,000 105,292 355,292 Peppertree Apartments 3.0% 55 2068 575,000 150,051 725,051 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 3,500,000 230,425 3,730,425 Affordable Housing Program 8,091,240 977,363 9,068,603 First Time Homebuyer Program:
Principal
Due
Interest
Due Total
FTHB - Successor Housing Agency 9,804,512 9,804,512 FTHB - LHF 1,766,200 1,766,200 FTHB - CalHome 60,000 60,000 FTHB - HOME 607,700 607,700 FTHB - CDBG 20,800 20,800 First Time Homebuyer Program Equity Share 12,259,212 - 12,259,212 Home Rehabilitation Program:
Principal
Due
Interest
Due Total
Home Rehab - Successor Housing Agency 217,120 41,934 259,054 Home Rehab - LHF 170,085 15,793 185,878
Home Rehab - CalHome 835,505 129,329 964,834 Home Rehab - HOME 1,342,861 116,372 1,459,233
Home Rehab - CDBG 203,428 48,872 252,300
Home Rehab Earthquake. - HOME 183,306 42,992 226,298 Home Rehab Earthquake - CDBG 63,980 19,194 83,174 Home Rehabilitation Program 0.0 - 3.0% 3,016,285 414,486 3,430,771 Housing loans receivable 23,366,737 1,391,849 24,758,586 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 23,594,619$ 1,391,849$ 24,986,468$ 104
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
64 Loan receivable – Successor Agency to the former Community Development Agency:
As of June 30, 2022 , the advances to the Successor Agency to the former Community Development Agency (CDA) from the City has been fully settled. 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 Successor Agency to the C DA 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 Successor Agency to the CDA 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).
The composition of loans between the City and the Successor Agency to the CDA for the year ended June 30, 2022, 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:
D. Lease Receivable
On February 15, 2018, the City entered into a 14- year lease agreement with Kaiser Permanente for property located at 3855 A Alamo St. with the option to extend 2 times for 5 years each. The initial payment schedule includes a 37-month rent holiday with the Balance Debt Debt Balance
Receivable Fund Payable Fund June 30, 2021 Incurred Retired June 30, 2022 General Fund Successor Agency - Merged
Tapo Canyon and West End
tax increment
$51,103 $ - ($51,103) -$
Accounts
receivable
Allowance for
uncollectibles
Total accounts
receivable, net
General Fund 1,448,143$ (303,974)$ 1,144,169$
Special Revenue - SHA to CDA Housing Administration 56,524 - 56,524 Streets and Roads 14,794 - 14,794 Nonmajor Governmental Funds 911,643 - 911,643 Subtotal 2,431,104 (303,974) 2,127,130
Internal Service Funds 807 - 807 Total 2,431,911$ (303,974)$ 2,127,937$
105
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
65 first monthly payment beginning March 2022; Kaiser pays a monthly lease fee of $39,250, increasing 2% annually.
On April 24, 2012, the City entered into an amendment to the lease agreement of May 1990 with the Boys and Girls Club for property located at 2850 Lemon Dr.; the term of this amendment is 50 years. The Boys and Girls Club pays a monthly lease fee of $2,486, increasing the lesser of 5% or the change in the consumer price index for the Los Angeles/Long Beach area annually.
On April 7, 2014, the City entered into a 5-year license agreement with AT&T for property located at the Walnut Ave. water tank with the option to extend 3 times for 5 years each.
The initial license term was retroactively applied to a date of January 1, 2012. AT&T pays an annual license fee of $58,640, increasing 5% annually.
On December 19, 2004, the City entered into a 5- year license agreement with AT&T for property located at the First St. water tank with the option to extend 3 times for 5 years each. AT&T pays an annual license fee of $41,256, increasing 5% annually.
On December 19, 2004, the City entered into a 5- year license agreement with AT&T for property located at the Stearns St. water tank with the option to extend 3 times for 5 years each. AT&T pays an annual license fee of $41,256, increasing 5% annually.
On April 8, 2019, the City entered into a 5-year license agreement with AT&T for property located at the Hilltop Rd. water tank with the option to extend 1 time for 5 years. AT&T pays an annual license fee of $58,709, increasing 5% annually and 12.5% at the license renewal date.
On May 16, 2003, the City entered into a 5-year license agreement with Sprint for property located at the First St. water tank with the option to extend 3 times for 5 years each. In August 2020, Sprint was acquired by Crown Castle which succeeds Sprint in maintaining this license agreement. Crown Castle pays an annual license fee of $45,485, increasing 5% annually.
On December 2, 2019, the City entered into a 5-year license agreement with T-Mobile for property located at the Madera Rd. water tank with the option to extend 1 time for 5 years.
T-Mobile pays an annual license fee of $58,709 , increasing 5% annually and 12.5% at the license renewal date.
On October 4, 2019, the City entered into a 5- year license agreement with T -Mobile for property located at the First St. water tank with the option to extend 1 time for 5 years. T- Mobile pays an annual license fee of $58,709, increasing 5% annually and 12.5% at the license renewal date.
106
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
66 On June 18, 2018, the City entered into a 5-year license agreement with Phoenix Tower International for property located at Walnut Ave. water tank with the option to extend 1 time for 5 years. T-Mobile pays an annual license fee of $60,777, increasing 3% annually.
On May 16, 2003, the City entered into a 5-year license agreement with Sprint for property located at the Stearns St. water tank with the option to extend 3 times for 5 year s each.
In August 2020, Sprint was acquired by Crown Castle which succeeds Sprint in maintaining this license agreement. Crown Castle pays an annual license fee of $45,485, increasing 5% annually.
At June 30, 2022, the lease receivable and deferred inflows of resources for the above leases were $12,993,668 and $12,441,607, respectively.
107
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
67 E. Capital assets
Capital asset activity for the year ended June 30, 2022, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land 10,621,811$ -$ -$ 10,621,811$ Construction-in-progress 13,220,445 2,335,757 - 15,556,202 Total capital assets, not being depreciated 23,842,256 2,335,757 - 26,178,013 Capital assets, being depreciated:
Buildings and improvements 61,066,552 - - 61,066,552 Furnishings and equipment 11,540,133 142,570 (22,284) 11,660,419 Computers 4,270,784 297,317 (20,108) 4,547,993 Vehicles 7,290,012 239,587 (320,118) 7,209,481 Infrastructure 351,557,028 3,296,155 - 354,853,183 Total capital assets being depreciated 435,724,509 3,975,629 (362,510) 439,337,628 Capital assets, being amortized:
Intangibles 11,043,042 233,036 - 11,276,078 Right-of-use asset - 2,606,803 - 2,606,803 Total capital assets being amortized 11,043,042 2,839,839 - 13,882,881 Less accumulated depreciation for:
Buildings and improvements (28,032,910) (1,566,744) - (29,599,654) Furnishings and equipment (7,827,415) (569,661) 22,284 (8,374,792) Computers (3,994,220) (115,383) 16,716 (4,092,887) Vehicles (5,399,454) (574,565) 305,915 (5,668,104) Infrastructure (179,062,381) (8,025,279) - (187,087,660) Total accumulated depreciation (224,316,380) (10,851,632) 344,915 (234,823,097) Less accumulated amortization for:
Intangibles (7,920,541) (493,355) - (8,413,896) Right-of-use asset - (86,893) - (86,893) Total accumulated amortization (7,920,541) (580,248) - (8,500,789) Total capital assets, being depreciated/amortized, net 214,530,630 (4,616,412) (17,595) 209,896,623 Governmental activities capital assets, net 238,372,886$ (2,280,655)$ (17,595)$ 236,074,636$ 108
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
68 Beginning Ending
Balance In creases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,216,994$ $ - $ - 1,216,994$ Construction-in-progress 19,269,105 7,903,454 (5,197,468) 21,975,091 Total capital assets, not being depreciated 20,486,099 7,903,454 (5,197,468) 23,192,085 Capital assets, being depreciated:
Buildings and improvements 14,950,026 - - 14,950,026 Furnishings and equipment 8,715,000 224,615 - 8,939,615 Vehicles 13,721,529 - (575,278) 13,146,251 Distribution system 218,950,813 5,463,426 - 224,414,239 Total capital assets being depreciated 256,337,368 5,688,041 (575,278) 261,450,131 Less accumulated depreciation for:
Buildings and improvements (8,728,088) (276,729) - (9,004,817) Furnishings and equipment (5,407,814) (316,508) - (5,724,322) Vehicles (9,839,353) (1,169,111) 575,278 (10,433,186) Distribution system (104,847,332) (3,329,622) - (108,176,954) Total accumulated depreciation (128,822,587) (5,091,970) 575,278 (133,339,279) Total capital assets, being depreciated/amortized, net 127,514,781 596,071 - 128,110,852 Business-type activities capital assets, net 148,000,880$ 8,499,525$ (5,197,468)$ 151,302,937$ 109
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
69 Depreciation and amortization expense was charged to functions/programs of the primary government as follows:
F. Construction commitments
The City has active construction projects as of June 30, 2022 . The commitments for governmental fund projects are included in the restricted fund balances. The material project commitments for enterprise funds at year end are as follows:
Governmental activities:
General government 7,805,359$
Community services 438,838
Planning 23,712
Public ways & facilities 2,420,103
Public safety 743,868
11,431,880$
Business-type activities:
Sanitation 2,403,025$
Waterworks 1,628,766
Transit 1,060,179
5,091,970$
Total depreciation/amoritzation expense - governmental activities Total depreciation/amortization expense - business-type activities Project Name
Contract
Amount*
Expenditures
to date as of
June 30, 2022
Remaining
Commitments*
Easy-Arroyo Simi Sewer Line Rehabilitation 4,595,016$ -$ 4,595, 016$ Design and Construction of Energy-Related Projects
(ESCO) 33,711,566 18,773,107 14,938, 459
Waterline Replacement: Peppertree, Wells, Ehlers,
My, Larson, Dennis, Rollins 1,178,577 - 1,178, 577 CNG Fueling System Upgrade 1,303,762 - 1,303,762 Total commitments 40,788,921$ 18,773,107$ 22,015,814$ * Amount includes possible contingency.
110
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
70 G. 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.
The composition of interfund receivables and payables for the fiscal year ended June 30, 2022, is as follows:
Due to / from other funds:
Receivable Fund Payable Fund 2022
General Simi Valley Transit System $ 2,132,126
Nonmajor governmental 1,587,191
SHA to CDA Housing Administration General 303
Nonmajor governmental General 1,466
Nonmajor governmental Nonmajor governmental 9,204
Total $ 3,730,290
Advances to / from other funds:
Receivable Fund Payable Fund
General Public Facility Improvements $ 3,348,380
Internal Service 2,344,000
Total $ 5,692,380
111
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
71 The composition of interfund transfers for the fiscal year ended June 30, 202 2, is as follows:
Transfers From Transfers To Amount Purpose
General fund SHA to Community
Development Agency
Housing Administration
$ 10,221 Fund housing programs
Street & Roads 12,377,908 Fund street and road programs Nonmajor
governmental funds 3,986,274
Fund Landscape zones, scheduled debt
service, and contributions to replacement
funds
16,374,403
Development related
fees fund General fund 370,000 Fund projects impacted by new development Nonmajor
governmental funds 407,118
Fund debt service and contributions to
replacement and capital project funds
777,118
Streets and roads
fund
Development related
fees fund 121,657 Return of unused street project funds Nonmajor
governmental funds General fund 3,092,790
Fund gas tax, development agreements, and
State Supplemental Law Enforcement
Services
Streets and roads 1,959,446 Fund street projects
Proprietary fund 4,006,390 Fund transit operations Nonmajor
governmental funds 409
9,059,035
Total governmental funds 26,332,213
Transfers From Transfers To Amount Purpose
Proprietary funds General fund 588,574 Contributions for pension costs Nonmajor
governmental funds 125,900
714,474
Total proprietary funds 714,474
Total transfers $27,046,687
Contributions to replacement funds and
capital project funds
Contributions to replacement funds and fund
capital project funds
112
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
72 H. 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 2.0 0% to 3.75%, fully maturing October 1, 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 SVPFFA 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, 2022 , total interest and principal remaining on the bonds is $18,914,631.
• City of Simi Valley Lease Revenue Bonds, Series 2016 New Clean Renewable Energy Bonds (NCREB) 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 provide 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 NCREBs was received by the City for $9,226,619, interest rates at 1.5% - 2.5%, fully maturing September 1, 2036. The tax exempt solar component consisted of $740,459 of bond proceeds also fully 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 otherwi se declare any lease payments not then in default to be immediately due and payable.
As of June 30, 2022, total interest and principal remaining on the 2016 NCREBs and tax exempt bonds is $9,723,609 and $702,434, respectively.
113
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
73 • 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 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, 202 2, the total interest and principal remaining on the issuance is $5,641,943.
• 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 str eetlights 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 t axable 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, 2022, total interest and principal remaining on the lease agreement is $6,811,653.
• 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 st ated 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 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, 2022 , total interest and principal remaining on the lease agreement is $40,589,492.
114
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
74 Annual debt service requirements to maturity
The annual requirements to amortize the bonds and advances as of June 30, 2022 , including interest, are as follows:
Year Ending
June 30: Principal Interest Total
2023 845,000$ 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 1,035,000 438,400 1,473,400 2028-2032 5,975,000 1,162,181 7,137,181 2033-2036 4,185,000 235,700 4,420,700 14,845,000$ 4,069,631$ 18,914,631$
Year Ending
June 30: Principal Interest Total
2023 386,122$ 264,187$ 650,309$ 2024 400,061 249,997 650,058 2025 414,503 235,294 649,797 2026 429,467 220,060 649,527 2027 444,971 204,277 649,248 2028-2032 2,477,722 763,951 3,241,673 2033-2037 2,958,428 274,569 3,232,997 7,511,274$ 2,212,335$ 9,723,609$
Year Ending
June 30: Principal Interest Total
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 36,306 10,827 47,133 2028-2032 195,547 39,944 235,491 2033-2037 221,135 10,036 231,171 589,602$ 112,832$ 702,434$
2014A Lease Revenue Refunding Bonds
2016 New Clean Renewable Energy Bonds
2016 New Clean Renewable Energy Bonds (Tax Exempt)
115
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
75 Year Ending
June 30: Principal Interest Total
2023 431,839$ 142,002$ 573,841$ 2024 444,893 128,949 573,842 2025 458,340 115,501 573,841 2026 472,194 101,647 573,841 2027 486,467 87,374 573,841 2028-2032 2,204,937 217,396 2,422,333 2033 342,693 7,711 350,404 4,841,363$ 800,580$ 5,641,943$ Year Ending
June 30: Principal Interest Total
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 382,792 184,846 567,638 2028-2032 2,235,137 603,052 2,838,189 2033-2035 1,065,793 69,482 1,135,275 5,034,290$ 1,777,363$ 6,811,653$
Business-type Activities
Year Ending
June 30: Principal Interest Total
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 1,711,209 608,190 2,319,399 2028-2032 9,170,789 2,426,208 11,596,997 2033-2037 10,286,037 1,310,961 11,596,998 2038-2041 5,602,997 195,502 5,798,499 33,236,284$ 7,353,208$ 40,589,492$
2017 Equipment Lease (Tax Exempt)
2018 Equipment Lease/Purchase Agreement
2019 Equipment Lease/Purchase Agreement
116
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
76 Other long-term debt of the City is comprised of:
• Right-of-use Lease Liability
The City has entered into an agreement to lease the library building from the County of Ventura which commenced on December 31, 2011, for a term of 50 years. The lease liability is measured at a discount rate of 1.57%. As a result of the lease, the City has recorded a right-of-use asset with a net book value of $2,519,910 as of June 30, 2022.
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2022, were as follows:
• Claims and legal services payable of $11,387,693, consisting of general liability and workers’ compensation liability. These liabilities are estimates based on the requirements of GASB Statement No. 10 and include actuarially estimated claims incurred but not yet reported as of June 30, 2022.
• Compensated absences liability of $7,351,299 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 (80%) is attributable to the General fund.
• Southern California Edison (SCE) on- bill financing (OBF) liability of $2,576,192. The City enrolled in the SCE OBF program to help finance the Civic Center parking lot lighting LED retrofit project. SCE finances qualify energy efficiency projects for zero interest and no fees.
• Other Post Employment Benefits (OPEB) liability of $62,294,802. This liability consists of the actuarially determined liability attributable to governmental activities and business-type activities of the Enterprise funds. OPEB funds health insurance benefits Year Ending June 30: Principal Interest Total
2023 33,238$ 40,446$ 73,684$ 2024 35,971 39,924 75,895 2025 38,811 39,360 78,171 2026 41,767 38,750 80,517 2027 44,837 38,095 82,932 2028-2032 274,625 178,882 453,507 2033-2037 371,339 154,400 525,739 2038-2042 487,746 121,729 609,475 2043-2047 627,333 79,216 706,549 2048-2051 620,525 24,917 645,442 2,576,192$ 755,719$ 3,331,911$ 117
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
77 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 $98,580,790. This liability consists of the actuarially determined liability attributable to governmental activities and business -type activities of the Enterprise funds. The liability is liquidated from the funds to which an employee is charged. See IV.D for additional detail regarding this debt.
Changes in long-term liabilities
Long-term liability activity for the year ended June 30, 2022, was as follows:
For governmental activities, pension, other post employment benefits (OPEB), and compensated absences obligations are generally liquidated by the General fund.
Lines of Credit
The City has no available, unused lines of credit.
I. Fund balance designations
Fund balance is categorized as Nonspendable, Restricted, Committed, Assigned, or Unassigned. The City Council adopts and amends committed fund balance amounts through an ordinance. The City Manager authorizes assigned amounts for spec ific purposes pursuant to the policy -making powers granted to him through a resolution.
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted , committed, assigned, and unassigned fund balance in the governmental fund financial Balances Debt Debt B alances Due Within
June 30, 2021 Incurred Retired June 30, 2022 One Year
Governmental activities:
2014A lease revenue refunding bond 15,645,000$ -$ (800,000)$ 14,845,000$ 845,000$ 2016 New Clean Renewable Energy Bonds (NCREBs) 7,883,943 - (372,669) 7,511,274 386,122 2016 NCREBs tax exempt 621,707 - (32,105) 589,602 32,904 2017 lease agreement 5,260,532 - (419,169) 4,841,363 431,839 2018 lease agreement 5,331,146 - (296,856) 5,034,290 312,342 Add (less) deferred amounts: -
Bond premium 1,297,687 - (98,638) 1,199,049 98,636 Total bonds payable 36,040,015 - (2,019,437) 34,020,578 2,106,843 Claims and legal services 13,504,945 1,054,005 (3,171,257) 11,387,693 3,072,645 Compensated absences 6,287,142 2,265,982 (2,532,396) 6,020,728 602,073 SoCal Edison on-bill financing - 2,606,803 (30,611) 2,576,192 33,238 Net OPEB liability 42,224,014 15,343,171 (2,632,785) 54,934,400 - Net pension liability 129,467,967 - (47,579,782) 81,888,185 - Governmental activity
long-term liabilities 227,524,083$ 21,269,961$ (57,966,268)$ 190,827,776$ 5,814,799$ Business-type activities:
2019 lease agreement 33,816,566$ -$ (580,282)$ 33,236,284$ 1,561,098$ Compensated absences 1,279,468 244,479 (193,379) 1,330,568 133,056 Net OPEB liability 6,579,288 1,248,560 (467,446) 7,360,402 - Net pension liability 27,288,272 - (10,595,667) 16,692,605 - Business-type activity
long-term liabilities 68,963,594$ 1,493,039$ (11,836,774)$ 58,619,859$ 1,694,154$
118
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
78 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.
J. 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, 2022, consisted of the following:
K. 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, 202 2 was $9,850,000. 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 Revenue 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, 2022, is $7,870,000.
• 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, 2022, is $1,980,000.
Community Facilities District (District No. 04-1) 5,490,000$ Mader
a Royal (District No. 98-1) 675,000
119
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
79 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, 2022, no such amounts were due.
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 f unds, 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 $1.0 million for each general liability claim and up to $750,000 for each workers’ compensation claim. The City purchases commercial insurance for property loss, as well as for claims in excess of the preceding coverage amounts.
All operating funds of the City participate in the program and make payments to the General Liability and Workers’ Compensation funds based on actuarial estimates of the amounts needed to pay prior and current-year claims and legal expenses.
Liabilities are estimated when a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities also include an amount for claims that hav e been incurred, but not reported as of the end of the year. Changes in the combined balances of General Liability and Workers’ Compensation funds’ claims and legal liability during the past two fiscal years are as follows:
C. Deferred compensation plans
The City offers its employees deferred compensation plans in accordance with Internal Revenue Code Sections 401(k) and 457 (as amended on August 20, 1996, per additional subsection (g)). The plans permit participants to defer a portion of their current salary until future years. The deferred compensation is not available to the employees until termination, retirement, death, or the occurrence of an unforeseeable emergency. Since the City neither owns the funds nor has any administrative involvement and does not Year ended Year ended
June 30, 2022 June 30, 2021
Unpaid claims beginning of fiscal year 13,504,945$ 13,110,604$ Incurred claims (including IBNRs and adjusted claims expense) 1,054,005 2,529,376 Claims payments (3,171,257) (2,135,035)
Unpaid claims, end of fiscal year 11,387,693$ 13,504,945$ 120
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
80 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.
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 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.
121
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
81 The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:
At June 30, 2022 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 the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Funding Policy
– Participants are required to contribute between 7.00% and 12.75% depending on their employee group and hire date. Except for members of the General Unit, the City makes a portion of the contributions on behalf of City employees hired before January 1, 2013. General Unit employees hired before January 1, 2013, are Prior to On or after
Hir
e date January 1, 2013 January 1, 2013
Benefit formula 2.00% @ 55 2.00% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-63 52-67
Month benefits, as a % of eligible compensation 1.40% to 2.40% 1.00% to 2.50% Required employee contribution rates 7.00% 7.00%
Required employer contribution rates 35.49% 35.49%
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3.00% @ 55 2.70% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-57
Month benefits, as a % of eligible compensation 2.40% to 3.00% 2.00% to 2.70% Required employee contribution rates 9.60% 12.75%
Required employer contribution rates 55.24% 55.24%
Miscellaneous
Safety
Miscellaneous Safety
Inactive employees or benificiaries currently receiving benefits 679 170 Inactive employees entitled to but not yet receiving benefits 226 20 Active employees 367 121
1,272 311
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
82 required to contribute the full 7.00% of their covered salary. General Unit employees hired on or after January 1, 2013, are required to contribute the full 7.00% of their covered salary. Non-sworn management hired prior to July 1, 2010 are required to contribute
4.00% of their covered salary and the City contributes 3.00%. Non-sworn management hired after July 1, 2010, but before January 1, 2013, are required to contribute the full
7.00 % of their covered salary. Non-sworn management hired on or after January 1, 2013, are required to contribute 7.00% of their covered salary. Sworn employees hired before January 1, 2013, are required to contribute 9.60 % of their covered salary. Sworn employees hired on or after January 1, 2013, are required to contribute 12.75% of their covered salary.
The City is also required to contribute an employer’s cost share at an actuarially determined rate; the rate is 35.49% for miscellaneous (non- safety) employees. Non- sworn management employees hired prior to July 1, 2010, are required to contribute
3.00% of this cost. For police (safety) employees, the employer rate is 55.24% of annual covered payroll for the year ended June 30, 2022. Sworn employees hired prior to July 1, 2010 are required to contribute 3. 00% this cost. The contribution requirements of plan members and the City are established - and may be amended - by CalPERS.
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, 20 21, using an annual actuarial valuation as of June 30, 20 20 rolled forward to June 30, 2021 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 Miscellaneous Safety
Valuat
ion Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method
Actuarial Assumption:
Discount Rate 7.15% 7.15%
Inflation 2.500% 2.500%
Projected Salary Increase
Investment Rate of Return
7.00% (1) 7.00% (1)
Mortality
Payroll Growth 2.750% 2.750%
(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
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
83 7.15% 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% 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.
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
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$
(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 ($41,780) during fiscal year 2019-20, w ere excluded for purposes of calculating projected earnings on pension plan investments.
Safety Plan
Amount for
Period
(a)
Portion of
Period
(b)
Projected Rate
of Return
(c)
Projected
Earnings
(a) x (b) x (c)
Beginning Plan Fiduciary Net Position excluding Receivables (1) 132,320,715$ 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.
124
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
84 The asset allocation shown below reflect the allocation of 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, ex pected 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.
The table below reflects long-term expected real rate of return by asset class.
Asset Class Actual
Allocation
Policy Target
Allocation
Public Equity 53.0% 50.0%
Private 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%
Asset Class (a)
New
Strategic
Alloc
ation
Real Return
Years 1-10 (b)
Real Return
Years 11 (c)
Public 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%
125
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
85 (a) In CalPERS' Annual Comprehensive 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 2.00% used for this period. (c) An expected inflation of 2.92% used for this period.
Changes in the Net Pension Liability – The changes in the Net Pension Liability for each Plan follows:
Miscellaneous Plan: Total Pension Plan Fiduciary Net P ension Liability Net Position Liability (Asset)
Balance at June 30, 2021 (measured as of June 30, 2020) 317,462,448$ 224,032,165$ 93,430,283$ Changes for the year:
Service Cost 4,452,761 - 4,452,761 Interest on Total Pension Liability 22,203,551 - 22,203,551 Differences between Expected and Actual Experience (473,007) - (473,007) Contributions - Employer - 9,426,555 (9,426,555) Contributions - Employees - 1,904,773 (1,904,773) Net Investment Income - 50,582,412 (50,582,412) Benefit Payments, Including Refunds of Employee Contributions (17,353,295) (17,353,295) - Administrative Expenses - (223,794) 223,794 Net changes 8,830,010 44,336,651 (35,506,641) Balance at June 30, 2022 (measured as of June 30, 2021) 326,292,458$ 268,368,816$ 57,923,642$ Increase (Decrease)
Safety Plan: Total Pension Plan Fiduciary Net P ension
Liability Net Position Liability (Asset)
Balance at June 30, 2021 (measured as of June 30, 2020) 200,492,917$ 137,166,961$ 63,325,956$ Changes for the year:
Service Cost 3,799,517 - 3,799,517 Interest on Total Pension Liability 14,034,283 - 14,034,283 Differences between Expected and Actual Experience (1,268,164) - (1,268,164) Contributions - Employer - 6,812,946 (6,812,946) Contributions - Employees - 1,325,192 (1,325,192) Net Investment Income - 31,233,327 (31,233,327) Benefit Payments, Including Refunds of Employee Contributions (9,681,675) (9,681,675) - Administrative Expenses - (137,021) 137,021 Other Miscellaneous Income/(Expense) - - - Net changes 6,883,961 29,552,769 (22,668,808) Balance at June 30, 2022 (measured as of June 30, 2021) 207,376,878$ 166,719,730$ 40,657,148$ Increase (Decrease)
126
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
86 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, 2021 , the City recognized total pension expense of $2,936,801 . The Miscellaneous Plan portion of pension expense was $72,549, and Safety Plan portion of pension expense was $2,864,252. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
1% Decrease Current Discount Rate 1% Inc rease
(6.15%) (7.15%) (8.15%)
Miscellaneous Plan 95,956,674$ 57,923,642$ 25,928,556$ Safety Plan 67,791,639$ 40,657,148$ 18,197,059$ Deferred
Outflows
of Resources
Deferred Inflows
of Resources
Pension Contributions Subsequent to Measurement Date 9,976,069$ -$ Changes of Assumptions - -
Differences between Expected and Actual Experience - (639,352) Net Difference between Projected and Actual Earnings
on Pension Plan Investments - (25,355,054) Total 9,976,069$ (25,994,406)$
Deferred
Outflows
of Resources
Deferred Inflows
of Resources
Pension Contributions Subsequent to Measurement Date 7,101,836$ $ - Changes of Assumptions - (3,471)
Differences between Expected and Actual Experience 205,188 (1,116,743) Net Difference between Projected and Actual Earnings
on Pension Plan Investments - (15,594,903) Total 7,307,024$ (16,715,117)$
Miscellaneous
Safety
127
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
87 $205,188 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 fiscal year ending June 30, 202 3. 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, 2022 , the City reported a payable of $ 0 for the outstanding amount of contributions to the pension plan required for the fiscal year ended June 30, 202 2.
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.
Public Agency Retirement System, Retirement Enhancement Plan
Plan Description - The City established a Public Agency Retirement System, Retirement Enhancement Plan (PARS-REP) for executive management staff: City Council members, City Managers, Assistant 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 .0% 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 $ 148,678. Plan
assets held in trust at June 30, 2022, totaled $1,348,052. PARS funding is based on the bi-annual actuarially required contribution calculated by an independent consultant.
Because the PARS benefit has been frozen, the PARS funding is no longer based on a percentage of gross payroll for Executive Management. The funding amount is based on Measurement Period
Ending June 30: Mis cellaneous Safety
2022 (7,021,748)$ (4,166,275)$
2023 (5,947,682) (3,987,970)
2024 (6,063,650) (4,056,537)
2025 (6,961,326) (4,299,147)
2026 - -
Thereafter - -
Deferred Outflows/(Inflows) of Resources
128
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
88 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, 2022 the following employees were covered under PARS:
Net Pension Liability – PARS
The total pension liability was determined by an actuarial valuation as of the valuation date of June 30, 2020, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date of June 30, 2022 . Any significant changes during this period have been reflected as prescribed by GASB Statement No. 67 and GASB Statement No. 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 CalP ERS 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, 2022. The target allocation and best estimates of the real rates of return for each major asset class are summarized in the following table:
Inactive employees or benificiaries currently receiving benefits 11 Inac
tive employees entitled to, but not yet receiving, benefits 6 Active employees 3
20 129
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
89 Discount Rate
As of June 30, 202 2, 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
Asset Class Index Target Allocation
Long-Term
Expected
Arithmetic
Real Rate of
Return
Long-Term
Expected
Geometric
Real Rate of
Return
US Cash BAML 3-Mon Tbill 10.90% 0.21% 0.20%
US Core Fixed Income Bloomberg Barclays Aggregate 62.22% 1. 95% 1.84% US Broad Equity Market Russell 3000 TR 21.12% 5.70% 4.10% Foreign Developed Equity MSCI EAFE NR 2.98% 6.99% 5.25% Emerging Markets Equity MSCI EM NR 1.79% 9.44% 5.97%
US REITs FTSE NAREIT Equity REIT 0.99% 6.27% 4.11%
100.00%
Assumed Inflation - Mean 2.35% 2.35%
Assumed Inflation - Standard Deviation 1.25% 1.25%
Portfolio Real Mean Return 2.88% 2.70%
Portfolio Nominal Mean Return 5.23% 5.12%
Portfolio Standard Deviation 4.92%
Long-Term Expected Rate of Return 6.50%
Miscellaneous Plan: Plan Fiduciary Net
Total Pension Liability Pos ition Net Pension Liability (a) (b) (a) - (b)
Balances as of 6/30/2021 1,688,544$ 1,481,169$ 207,375$ Changes for the year:
Interest on total pension liability 105,902 - 105,902 Effect of economic/demographic gains or losses - - - Benefits payments (120,449) (120,449) - Contributions - Employer - 148,678 (148,678) Net Investment Income - (160,472) 160,472 Administrative Expenses - (874) 874 Balances as of 6/30/2022 1,673,997$ 1,348,052$ 325,945$ Increase (Decrease)
130
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
90 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.
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.
Non-sworn management, Sworn (police) management, and Sworn (police) employees’ retiree health benefits are provided per resolution numbers 2018-03, 2018-05 and 2018- 05, and 2017-35, respectively. The benefits vary depending upon a retiree’s years of service and employee bargaining unit. The City currently contributes up to $1,500 per month for Management employees for employee only or employee plus one dependent.
The City currently pays 100% of premiums for health care coverage for employee, or employee plus one dependent, for a specified period, for the Sworn Management and Sworn units. Additionally, the City provides funding for retiree health benefits to General Unit employees under a defined contribution plan, per resolution number 2017- 40. The defined contribution is currently set by contract at 1.00% of salary for General Unit members.
1% Decrease Current Discount 1% Increase
(5.50%) Rate (6.50%) (7.50%)
Total pension liability 1,841,162$ 1,673,997$ 1,530,747$ Fiduciary net position 1,348,052 1,348,052 1,348,052 Net penson liability 493,110$ 325,945$ 182,695$ 131
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
91 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 (POA) for the purposes of funding dental and/or vision benefits for retired Sworn employees who retire on or after July 1, 2005.
A summary of plan benefits by employee groups is as follows:
Less Than 10 or More
10 Years Y
ears
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
*
**
***
****
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.
POA employees hired on or after January 1, 2010 or PMA employees 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.
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. 132
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
92 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, 2021 (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, 2021. The same date was used as measurement date for the Plan’s assets, liabilities, and expenses.
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, 2021, 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 unfunded actuarial assumed liability ( UAAL) is amortized using a closed amortization period of thirty years. Since the June 30, 2021, 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 128 8 101 244 Inactive employees or beneficiaries currently receiving benefit payments 179 48 78 73 Inactive employees entitled to, but not yet receiving benefit payment - - - - Total 307 56 179 317
133
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
93 The total OPEB liability for the June 30, 20 21 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 targ et 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 5.50%
Assumed Payroll Growth 2.750%
Healthcare Trend Rates 7.00%, trending down to 4.04%
Rate of Return on Assets 6.00%
Mortality Rate CalPERS Rates
Retirement Rates CalPERS Rates
Asset Class Allocation Expec ted 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 42% 3.56%
Total/Average 100% 5.62%
134
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
94 Change in the Net OPEB Liability:
General Unit Employees (GU) Total OPEB Plan Fiduciary Net OPEB Liability Net P osition Liability
Balance as of Report Date June 30, 2021 14,192,593$ 1,145,966$ 13,046,627$ Changes for the year:
Service Cost 492,755$ -$ 492,755$ Interest 869,842 - 869,842 Changes of Benefit Terms - - - Differences between Expected and Actual Experience (4,346,826) - (4,346,826) Changes of Assumptions 2,390,856 - 2,390,856 Net Investment Income - 268,796 (268,796) Contributions
Employer - City's Expected Contribution - 251,426 (251,426) Employer - Implicit Subsidy - 124,536 (124,536) Expected Benefit Payments (251,426) (251,426) - Implicit Rate Subsidy Fulfilled (124,536) (124,536) - Administrative Expenses - (6,231) 6,231 Other Changes - - - Net changes (969,335) 262,565 (1,231,900) Balance as of Report Date June 30, 2022 13,223,258$ 1,408,531$ 11,814,727$ Increase (Decrease)
Non-Sworn Management (NSM) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liab ility
Balance as of Report Date June 30, 2021 16,618,906$ 1,102,391$ 15,516,515$ Changes for the year:
Service Cost 444,886$ -$ 444,886$ Interest 986,295 - 986,295 Changes of Benefit Terms - - - Differences between Expected and Actual Experience 1,267,162 - 1,267,162 Changes of Assumptions 2,756,061 - 2,756,061 Net Investment Income - 258,619 (258,619) Contributions
Employer - City's Expected Contribution - 823,388 (823,388) Employer - Implicit Subsidy - 427,682 (427,682) Expected Benefit Payments (823,388) (823,388) - Implicit Rate Subsidy Fulfilled (427,682) (427,682) - Administrative Expenses - (5,994) 5,994 Other Miscellaneous Income/(Expense) - - - Net changes 4,203,334 252,625 3,950,709 Balance as of Report Date June 30, 2022 20,822,240$ 1,355,016$ 19,467,224$ Increase (Decrease)
135
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
95 OPEB Plan Fiduciary Net Position – Detailed information about OPEB plan’s fiduciary net position is available in the separately issued financial reports of PFM Asset Management, LLC which may be obtained by writing to PFM Asset Management , LLC, 50 California Street, Suite 2300, San Francisco, CA 94111.
Police Officers' Association (POA) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability
Balance as of Report Date June 30, 2021 16,446,569$ 706,871$ 15,739,698$ Changes for the year:
Service Cost 441,563$ -$ 441,563$ Interest 982,614 - 982,614 Changes of Benefit Terms - - - Differences between Expected and Actual Experience 4,300,696 - 4,300,696 Changes of Assumptions 2,049,138 - 2,049,138 Net Investment Income - 165,662 (165,662) Contributions
Employer - City's Expected Contribution - 789,129 (789,129) Employer - Implicit Subsidy - 233,344 (233,344) Expected Benefit Payments (789,129) (789,129) - Implicit Rate Subsidy Fulfilled (233,344) (233,344) - Administrative Expenses - (3,843) 3,843 Other Miscellaneous Income/(Expense) - - - Net changes 6,751,538 161,819 6,589,719 Balance as of Report Date June 30, 2022 23,198,107$ 868,690$ 22,329,417$ Increase (Decrease)
Police Managers' Association (PMA) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability
Balance as of Report Date June 30, 2021 4,585,714$ 85,252$ 4,500,462$ Changes for the year:
Service Cost 39,594$ -$ 39,594$ Interest 263,997 - 263,997 Changes of Benefit Terms - - - Differences between Expected and Actual Experience 3,800,180 - 3,800,180 Changes of Assumptions 548,979 - 548,979 Net Investment Income - 19,514 (19,514) Contributions
Employer - City's Expected Contribution - 315,341 (315,341) Employer - Implicit Subsidy - 135,385 (135,385) Expected Benefit Payments (315,341) (315,341) - Implicit Rate Subsidy Fulfilled (135,385) (135,385) - Administrative Expenses - (462) 462 Other Miscellaneous Income/(Expense) - - - Net changes 4,202,024$ 19,052$ 4,182,972$ Balance as of Report Date June 30, 2022 8,787,738$ 104,304$ 8,683,434$ Increase (Decrease)
136
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
96 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%) for general unit employees (GU), non- sworn management (NSM), sworn employees (SE), and sworn management (SM) 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 (6.00%) or one percentage point higher (8.00%) than current healthcare cost trend rates follows:
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB
For the fiscal year ended June 30, 202 2, the City recognized OPEB expense of $11,447,349. At June 30, 202 2, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
1% Decrease Current Discount Rate 1% Increase
(5.00%) (6.00%) (7.00%)
GU 13,162,036$ 11,814,727$ 10,659,053$ NSM 21,488,681 19,467,224 17,717,674 SE 25,501,275 22,329,417 19,718,939 SM 9,792,864 8,683,434 7,769,559 1% Decrease Current Discount Rate 1% Inc rease
(6.00%) (7.00%) (8.00%)
GU 10,974,805$ 11,814,727$ 12,766,846$ NSM 17,985,071 19,467,224 19,467,224 SE 19,457,580 22,329,417 25,847,884 SM 7,723,317 8,683,434 9,838,202
GU NSM SE SM
797,133$ 1,163,618$ 4,195,030$ -$
Changes of Assumptions 5,903,850 3,979,971 6,351,565 - - - - - 487,264 1,118,169 1,128,838 475,731 Total 7,188,247$ 6,261,758$ 11,675,433$ 475,731$ *Based on expected benefit payments per the City's actuary.
City Contributions subsequent to the
Measurement Date*
Deferred Outflows of Resources
Differences Between Actual and Expected
Experience
Net Difference Between Projected and
Actual Earnings on OPEB Plan
Investments
137
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
97 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
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, 2022, to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through April 26, 2023, 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
The Governmental Accounting Standards Board (GASB) has issued several pronouncements prior to June 30, 2022, that have effective dates that may impact future financial presentations. Management has not yet determined any impact the
GU NSM SE SM
(4,028,240)$ (146,468)$ (6,876, 826)$ -$
Changes of Assumptions (413,635) (358,831) (791,496) (59,781) (170,392) (158,802) (98,861) (9,518) - - - -
Total (4,612,267)$ (664,101)$ (7,767,183)$ (69,299)$ 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 SE SM
2023 649,862$ 1,
969,407$ 149,066$ (29,011)$
2024 651,538 1,084,676 150,796 (28,663) 2025 662,068 765,855 226,970 (8,653) 2026 668,306 659,550 249,116 (2,972) 2027 82,630 - 530,896 - Thereafter (625,688) - 1,472,568 - Amount
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
98 implementation of the following statements may have on the financial statements of the City.
GASB Statement 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 Statement No. 93
In March 2020, the Governmental Accounting Standards Board issued Statement No. 93, “Replacement of Interbank Offered Rates.” T he requirements of this Statement, except for paragraphs 11b, 13, and 14 are effective for reporting periods beginning after June 15, 2020. The requirement in paragraph 11b is effective for reporting periods ending after December 31, 2021. The requirements in paragraphs 13 and 14 are effective for fiscal years periods beginning after June 15, 2021.
GASB Statement 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 Statement 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 Statement 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 , except for Paragraphs 4 and 5 which are effective immediately , are effective for reporting periods beginning after June 15, 2021.
GASB Statement No. 98
In October 2021, the Governmental Accounting Standards Board issued Statement No. 98, “The Annual Comprehensive Financial Report.” The requirements of this Statement are effective for fiscal years ending after December 15, 2021.
GASB Statement No. 99
In April 2022, the Governmental Accounting Standards Board issued Statement No. 99, “Omnibus 2022.” The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are 139
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
99 effective upon issuance. The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023.
GASB Statement No. 100
In June 22, the Governmental Accounting Standards Board issued Statement No. 100, “Accounting Changes and Error Corrections - an amendment of GASB Statement No.
62.” The requirements of this Statement are effective for fiscal years ending after June 15, 2023.
GASB Statement No. 101
In June 22, the Governmental Accounting Standards Board issued Statement No. 101, “Compensated Absences.” The requirements of this Statement are effective for fiscal years ending after December 15, 2023.
V. Successor Housing Agency to the Simi Valley Community Devel opment Agency Private-Purpose Trust Fund
A. Reporting entity
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (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.
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 former redevelopment agency have been paid in full and all assets have been liquidated.
140
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
100
B. Cash and investments
Cash and investments reported in the accompanying financial statements for the Successor Agency to the Simi Valley Community Development Agency ( CDA) Private- Purpose Trust Fund consisted of the following:
C. Capital assets
Capital asset activity for the year ended June 30, 2022, 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, 2022:
2022
Cash and investments pooled with the City 2,740,427$
Cash and investments with fiscal agent 2,101,982
Total cash and investments 4,842,409$
Beginning Ending
Balan
ce Increas es Decreas es Balance
Land 1,124,174$ -$ -$ 1,124,174$ Capital assets, net 1,124,174$ -$ -$ 1,124,174$ Beginning Ending
Balan
ce Amortization Balance
Fiduciary activities:
2003 tax allocation bonds
Deferred loss on refunding 75,223$ 28,482$ 46,741$ 141
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
101
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/fiduciary fund) as a result of dissolution.
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2022, 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%, fully maturing September 1, 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. Tot al interest and principal remaining on the bonds is $ 18,515,813, payable through September 2030. For the current fiscal year, principal and interest paid was $2,067,856, and the Redevelopment Property Tax Trust Fund revenue received was $2,512,484.
Annual debt service requirements to maturity, including interest, for the outstanding debt are as follows:
Year Ending
June 30 Principal Interes t Total
2023 1,350,000$ 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 1,645,000 413,375 2,058,375
Thereafter 7,445,000 767,375 8,212,375 14,915,000$ 3,600,813$ 18,515,813$
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2022
102
Fiduciary fund long-term liability activity for the year ended June 30, 2022, was as follows:
F. Deficit Net Position
As of June 30, 2022, the Private Purpose Trust, a component of the City’s Fiduciary funds, has a negative net position of $9,287,906. Below is a summary of the net position.
G. Insurance
The Successor Agency is covered under the City of Simi Valley’s insurance policies.
Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note IV.B.
Balances Debt Debt B alances Due Within
June 30, 2021 Incurred Retired June 30, 2022 One Year
Fiduciary activities:
2003 tax allocation bonds 16,200,000$ -$ (1,285,000)$ 14,915,000$ 1,350,000$ Add (less) deferred amounts:
Bond premium 157,212 - (16,306) 140,906 16,306 Fiduciary long-term liabilities 16,357,212$ -$ (1,301,306)$ 15,055,906$ 1,366,306$ 2022
Net Position - Beginning Balance (10,973, 895)$
Total additions for the year 4,703,567
Total deductions for the year ended (3,017,578)
Change in net position 1,685,989
Net Position - Ending Balance (9,287,906)$
143
144
Required Supplementary Information
(UNAUDITED)
Required Supplementary
Information (Unaudited)
145
146
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147
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Miscellaneous Plan
Last Ten Years*
See independent auditor’s report.
103
1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post Employment Benefit Plans Other than Pensions (GASB Statement No. 75), CalPERS reported its proportionate share of activity related to post employment 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 Statement No.
75. 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 Statement No. 68).
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75% payroll growth assumption for Fiscal Years 2018-21; 3.00% payroll growth assumption for Fiscal Years 2014-17.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Dat e. However, offers of Two Years Additional Service Credit (a.k.a.
Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: None in Fiscal Years 2019-21. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.50% discount rate. * Fiscal Year 2014-15 was the first year of implementation, therefore, only eight years are shown.
Schedule of Changes in Net Pension Liability and Related Ratios for the Measurement Periods Ended June 30 Measurement Period 2021 2020 2019 2018
TOTAL PENSION LIABILITY:
Service Cost 4,452,761$ 4,550,099$ 4,813,212$ 4,910,925$ Interest on Total Pension Liability 22,203,551 21,563,745 20,976,007 20,191,587 Changes of Assumptions - - - (1,963,446) Difference Between Expected and Actual Experience (473,007) (2,231,998) (302,371) 163,365 Benefit Payments, including Refunds of Employee Contributions (17,353,295) (15,934,383) (14,476,731) (13,083,973) Net Change in Total Pension Liability 8,830,010$ 7,947,463$ 11,010,117$ 10,218,458$ Total Pension Liability - Beginning 317,462,448 309,514,985 298,504,868 288,286,410 Total Pension Liability - Ending (a) 326,292,458$ 317,462,448$ 309,514,985$ 298,504,868$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 9,426,555$ 8,648,934$ 7,638,807$ 6,722,128$ Contributions - Employee 1,904,773 1,911,018 1,985,804 2,010,460 Net Investment Income2 50,582,412 10,929,221 13,913,484 16,753,819 Benefit Payments, including Refunds of Employee Contributions (17,353,295) (15, 934,383) (14,476,731) (13,083,973) Net Plan to Plan Resource Movement - - - (488) Administrative Expense (223,794) (308,434) (149,770) (309,112) Other Miscellaneous Income/(Expense)1 - - 488 (587,009) Net Change in Fiduciary Net Position 44,336,651$ 5,246, 356$ 8,912,082$ 11,505,825$ Plan Fiduciary Net Positions - Beginning2 224,032,165 218,785,809 209,873,727 198,367,902 Plan Fiduciary Net Positions - Ending (b) 268,368,816$ 224,032,165$ 218, 785,809$ 209,873,727$ Plan Net Pension Liability/(Asset) - (a) - (b) 57,923,642$ 93,430,283$ 90,729,176$ 88,631,141$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 82.25% 70.57% 70.69% 70.31% Covered Payroll3 $27,418,481 $27,983,387 28,537,793$ 30,206,209$ Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 211.26% 333.88% 317. 93% 293.42% (Continued)
148
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Miscellaneous Plan
Last Ten Years*
See independent auditor’s report.
104
2017 2016 2015 2014 Measurement Period
TOTAL PENSION LIABILITY:
4,696,120$ 4,496,300$ 4,219,980$ 4,456,595$ Service Cost 19,479,794 18,974,672 17,854,875 17,085,147 Interest on Total Pension Liability 15,251,995 - (4,159,555) - Changes of Assumptions (2,848,866) 3,101,741 (1,925,185) - Difference Between Expected and Actual Experience (11,972,233) (11,156,289) (10,197,516) (9,289,664) Benefit Payments, including Refunds of Employee Contributions 24,606,810$ 15,416,424$ 5,792,599$ 12,252,078$ Net Change in Total Pension Liability 263,679,600 248,263,176 242,470,577 230,218,499 Total Pension Liability - Beginning 288,286,410$ 263,679,600$ 248,263,176$ 242,470,577$ Total Pension Liability - Ending (a)
PLAN FIDUCIARY NET POSITION
6,090,808$ 5,483,791$ 4,865,538$ 4,450,276$ Contributions - Employer 1,991,500 2,058,371 2,022,358 2,146,980 Contributions - Employee 20,322,245 1,027,330 4,079,193 27,589,396 Net Investment Income2 (11,972,233) (11,156, 289) (10,197,516) (9,289,664) Benefit Payments, including Refunds of Employee Contributions - - (50) - Net Plan to Plan Resource Movement (269,013) (112,689) (208,581) - Administrative Expense - - - - Other Miscellaneous Income/(Expense)1 16,163,307$ (2,699, 486)$ 560,942$ 24,896,988$ Net Change in Fiduciary Net Position 182,204,595 184,904,081 184,343,139 159,446,151 Plan Fiduciary Net Positions - Beginning2 198,367,902$ 182,204,595$ 184, 904,081$ 184,343,139$ Plan Fiduciary Net Positions - Ending (b) 89,918,508$ 81,475,005$ 63,359,095$ 58,127,438$ Plan Net Pension Liability/(Asset) - (a) - (b)
68.81% 69.10% 74.48% 76.03% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 28,645,361$ 30,370,147$ 28,365,800$ 28,976,557$ Covered Payroll3 313.90% 268.27% 223.36% 200. 60% Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll (Concluded)
149
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Miscellaneous Plan
Last Ten Years*
See independent auditor’s report.
105
1 As prescribed in GASB Statement No. 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. 2 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.
3 Includes one year’s payroll growth using 2.75% payroll growth assumption for Fiscal Year 2018- 19; 3.00% payroll growth assumption for Fiscal Years 2014-17.
Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 202 1-22 were derived from the June 30, 2019, funding valuation report.
* Fiscal Year 2014-15 was the first year of implementation, therefore, only eight years are shown.
Miscellanous Plan - Schedule of Plan Contributions for the Fiscal Years Ended June 301 Employer Fiscal Year 2022 2021 2020 2019
Actuarially Determined Contribution2 $9,976,069 $9,426,555 $8,648,934 7,602,813 $ Contributions in Relation to the Actuarially Determined Contribution2 (9,976,069) (9,426,555) (8,648,934) (7,602,813) Contribution Deficiency (Excess) -$ -$ -$ -$ Covered Payroll3 $29,543,636 $27,418,481 $27,983,387 28,537,793$ Contributions as a Percentage of Covered Payroll3 33.77% 34.38% 30.91% 26.64% (Continued)
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return
Retirement Age
Mortality
2.75%
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
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
90.00% of Scale MP-2016 published by the Society of Actuaries.
Entry Age Normal
For details, see June 30, 2019 Funding Valuation Report.
Fair Value of Assets. For details, see June 30, 2019 Funding Valuation Report.
2.50%
Varies by Entry Age and Service
150
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Miscellaneous Plan
Last Ten Years*
See independent auditor’s report.
106
2018 2017 2016 2015 Employer Fiscal Year
6,682,072$ 6,228,044$ 5,483,791$ 4,865,538$ Actuarially Determined Contribution2 (6,682,072) (6,228,044) (5,483,791) (4,865,538) Contributions in Relation to the Actuarially Determined Contribution2 -$ -$ -$ -$ Contribution Deficiency (Excess) 30,206,209$ 28,645,361$ 30,370,147$ 28,365,800$ Covered Payroll3
22.12% 21.74% 18.06% 17.15% Contributions as a Percentage of Covered Payroll 3 (Concluded)
151
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Safety Plan
Last Ten Years*
See independent auditor’s report.
107
1 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post Employment Benefit Plans Other than Pensions (GASB Statement No. 75), CalPERS reported its proportionate share of activity related to post employment 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 Statement No.
75. 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 Statement No. 68).
2 Includes any beginning of year adjustment.
3 Includes one year’s payroll growth using 2.75% payroll growth assumption for Fiscal Year 2018- 19; 3.00% payroll growth assumption for Fiscal Years 2014-17.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurem ent Date. However, offers of Two Years Additional Service Credit (a.k.a.
Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: None in Fiscal Years 2019-21. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.50% discount rate. * Fiscal Year 2014-15 was the first year of implementation, therefore, only eight years are shown.
Schedule of Changes in Net Pension Liability and Related Ratios Measurement Period 2021 2020 2019 2018
TOTAL PENSION LIABILITY
Service Cost 3,799,517$ 3,652,512$ 3,770,076$ 3,852,227$ Interest on Total Pension Liability 14,034,283 13,570,955 13,042,846 12,408,410 Changes of Assumptions - - - (72,863) Difference Between Expected and Actual Experience (1,268,164) (252,858) 974,638 (891,044) Benefit Payments, including Refunds of Employee Contributions (9,681,675) (9,415,716) (8,814,575) (7,827,368) Net Change in Total Pension Liability 6,883,961 7,554,893 8,972,985 7,469,362 Total Pension Liability - Beginning 200,492,917 192,938,024 183,965,039 176,495,677 Total Pension Liability - Ending (a) 207,376,878$ 200,492,917$ 192,938,024$ 183,965,039$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 6,812,946$ 6,159,600$ 5,442,227$ 5,016,294$ Contributions - Employee 1,325,192 1,573,091 1,255,565 1,288,167 Net Investment Income 31,233,327 6,595,085 8,313,422 10,040,177 Other Miscellaneous Income/(Expense)1 - - 294 (350,228) Benefit Payments, including Refunds of Employee Contributions (9,681,675) (9,415,716) (8,814,575) (7,827,368) Net Plan to Plan Resource Movement - - - (294) Administrative Expense (137,021) (186,710) (90,155) (184,426) Net Change in Fiduciary Net Position 29,552,769 4,725,350 6,106,778 7,982,322 Plan Fiduciary Net Position - Beginning2 137,166,961 132,441,611 126,334,833 118,352,511 Plan Fiduciary Net Position - Ending (b) 166,719,730$ 137,166,961$ 132,441,611$ 126,334,833$ Plan Net Pension Liability/(Asset) - (a) - (b) 40,657,148$ 63,325,956$ 60,496,413$ 57,630,206$
80.39% 68.41% 68.64% 68.67%
Covered Payroll3 $13,341,001 $12,744,285 12,535,238$ 13,397,653$ Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll 304.75% 496.90% 482.61% 430.15% (Continued)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 152
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Safety Plan
Last Ten Years*
See independent auditor’s report.
108
2017 2016 2015 2014 Measurement Period
TOTAL PENSION LIABILITY
3,877,677$ 3,487,187$ 3,224,243$ 3,396,111$ Service Cost 11,900,164 11,477,866 10,911,459 10,489,579 Interest on Total Pension Liability 10,030,117 - (2,691,829) - Changes of Assumptions (1,477,890) (19,908) (1,874,182) - Difference Between Expected and Actual Experience (7,558,374) (7,069,897) (6,616,558) (6,306,201) Benefit Payments, including Refunds of Employee Contributions 16,771,694 7,875,248 2,953,133 7,579,489 Net Change in Total Pension Liability 159,723,983 151,848,735 148,895,602 141,316,113 Total Pension Liability - Beginning 176,495,677$ 159,723,983$ 151,848,735$ 148,895,602$ Total Pension Liability - Ending (a)
PLAN FIDUCIARY NET POSITION
4,740,604$ 4,377,786$ 3,953,058$ 3,604,044$ Contributions - Employer 1,214,011 1,218,073 1,170,676 1,080,530 Contributions - Employee 11,967,708 591,543 2,402,091 16,230,427 Net Investment Income - - - - Other Miscellaneous Income/(Expense)1 (7,558,374) (7,069, 897) (6,616,558) (6,306,201) Benefit Payments, including Refunds of Employee Contributions - - - - Net Plan to Plan Resource Movement (159,674) (66,489) (122,781) - Administrative Expense 10,204,275 (948,984) 786,486 14,608,800 Net Change in Fiduciary Net Position 108,148,236 109,097,220 108,310,734 93,701,934 Plan Fiduciary Net Position - Beginning2 118,352,511$ 108,148,236$ 109,097,220$ 108,310,734$ Plan Fiduciary Net Position - Ending (b) 58,143,166$ 51,575,747$ 42,751,515$ 40,584,868$ Plan Net Pension Liability/(Asset) - (a) - (b)
67.06% 67.71% 71.85% 72.74%
13,342,316$ 13,396,286$ 12,340,656$ 12,471,030$ Covered Payroll3 435.78% 385.00% 346.43% 325. 43% Plan Net Pension Liability (Asset) as a Percentage of Covered Payroll (Concluded)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
153
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Safety Plan
Last Ten Years*
See independent auditor’s report.
109
1 As prescribed in GASB Statement No. 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. 2 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.
3 Includes one year’s payroll growth using 2.75% payroll growth assumption for Fiscal Year 2018- 19; 3.00% payroll growth assumption for Fiscal Years 2014-17.
Notes to Schedule of Plan Contributions:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were derived from the June 30, 2019 funding valuation report.
* Fiscal Year 2014-15 was the first year of implementation, therefore, only eight years are shown.
Safety Plan - Schedule of Plan Contributions for the Fiscal Years Ended June 30 1 Employer Fiscal Year 2022 2021 2020 2019
Actuarially Determined Contribution 2 7,101,836$ 6,812,946$ 6,159,600$ 5,129,019$ Contributions in Relation to the Actuarially Determined Contribution 2 (7,101,836) (6,812,946) (6,159,600) (5,129,019) Contribution Deficiency (Excess) -$ -$ -$ -$ Covered Payroll3, 13,454,858$ 13,341,001$ 12,744,285$ 12,535,238$ Contributions as a Percentage of Covered Payroll 3 52.78% 51.07% 48.33% 40.92% (Continued)
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return
Retirement Age
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.
Entry Age Normal
For details, see June 30, 2019 Funding Valuation Report.
Fair Value of Assets. For details, see June 30, 2019 Funding Valuation Report.
2.50%
Varies by Entry Age and Service
2.75%
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
154
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
California Public Employees' Retirement System (CalPERS) Safety Plan
Last Ten Years*
See independent auditor’s report.
110
2018 2017 2016 2015 Employer Fiscal Year
4,645,981$ 4,658,296$ 4,377,786$ 3,953,058$ Actuarially Determined Contribution 2 (4,645,981) (4,658,296) (4,377,786) (3,953,058) Contributions in Relation to the Actuarially Determined Contribution 2 -$ -$ -$ -$ Contribution Deficiency (Excess) 13,397,653$ 13,342,316$ 13,396,286$ 12,340,656$ Covered Payroll3,
34.68% 34.91% 32.68% 32.03% Contributions as a Percentage of Covered Payroll 3 (Concluded)
155
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
Schedule of Changes in the City’s Net OPEB Liability and Related Ratios Last Ten Years*
See independent auditor’s report.
111
2022 2021 2020 2019 2018
Tot
al OPEB liability:
Service cost $ 1,418,798 $ 1,482,507 $ 306,921 $ 317,106 $ 308,619 Inter
est 3,102,748 2,901,086 2,604,188 2,375,465 2,429,570 Differences between expected and actual experience 5,021,212 838,437 (12,977,830) - - Changes of assumptions 7,745,034 (2,007,874) 21,577,376 (1,069,576) - Benefit payments (2,179,284) (2,156,006) (2,049,633) (1,700,528) (1,635,120) Implicit Subsidy (920,947) (861,254) - - - Net change in total OPEB liability 14,187,561 196,896 9,461,022 (77,533) 1,103,069 Total OPEB liability-beginning 51,843,782 51,646,886 42,185,864 42,263,397 41,160,328 Total OPEB liability-ending (a) $ 66,031,343 $ 51,843,782 $ 51,646,886 $ 42,185,864 $ 42,263,397 Fiduci
ary Net Position:
Net investment income $ 712,591 $ 207,546 $ 176,710 $ 253,539 $ 328,517 Emplo
yer - City's Contribution 2,179,284 2,156,006 2,049,633 1,700,528 1,635,120 Employer - Implicit Subsidy 920,947 861,254 - - - Benefit payments (2,179,284) (2,156,006) (2,049,633) (1,700,528) (1,635,120) Implicit Subsidy Credit (920,947) (861,254) - - - Administrative expense (16,530) (9,883) (18,407) (19,535) (19,748) Net change in plan fiduciary net position 696,061 197,663 (1,141,695) 234,004 308,769 Plan fiduciary net position-beginning 3,040,480 2,842,817 3,984,511 3,750,507 3,441,738 Plan fiduciary net position-ending (b) $ 3,736,541 $ 3,040,480 $ 2,842,817 $ 3,984,511 $ 3,750,507 City
's net OPEB liability ending (a)-(b) $ 62,294,802 $ 48,803,302 $ 48,804,069 $ 38,201,353 $ 38,512,890 Plan fiduciary net position as a percentage of
the total OPEB liability 5.7% 5.9% 5.5% 9.4% 8. 9%
Covered-employee payroll $ 35,999,859 $ 35,512,106 $ 33,714,502 $ 35,383,956 $ 37,757,737 City's OPEB liability as a percentage of the
covered employee payroll 173.0% 137.4% 144.8% 108. 0% 102.0% * The City adopted GASB Statement No. 75 for the Fiscal Year 2017-18, therefore, only five years are shown. 156
CITY OF SIMI VALLEY REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2022
Schedule of OPEB Plan Contributions
Last Ten Years*
See independent auditor’s report.
112
2022 2021 2020 2019 2018
Actuarially determined contribution $ 3,213,071 $ 5,495,152 $ 2,049,633 $ 1,659,034 $ 1,635,120 Contributions in relation to the actuarially
determined contribution (3,100,231) (3,017,260) (2,049,633) (1,659,034) (1,635,120) Contribution deficiency (excess) $ 112,840 $ 2,477,892 $ - $ - $ - Covered-employee payroll $ 35,999,859 $ 35,512,106 $ 33,714,502 $ 35,383,956 $ 37,757,737 Contributions as a percentage of covered-
employee payroll 8.61% 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 5.50%
Assumed Payroll Growth 2.75%
Healthcare Trend Rates 7.00%, trending down to 4.04%
Rate of Return on Assets 6.00%
Mortality Rate CalPERS Rates
Retirement Rates CalPERS Rates
* The City adopted GASB Statement No. 75 for the Fiscal Year 2017-18, therefore, only five years are shown. 157
158
Supplementary Information
Supplementary
Information
159
160
Non-Major
Governmental Funds
161
162
113
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.
Planning Grant fund accounts for State funds to help prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production.
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.
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.
163
114
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 Clean Renewable Energy Bonds Lease Revenue Bonds ( CREBS LRB ) 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.
164
115
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.
165
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
116
Public, Road
Education & Main tenance
CalHome HOME Planning Government Gasoline & Rehabilitaion Grant Grant Grant Fees Tax Account
ASSETS
Cash and investments:
Held by City 400,307$ 1,392,858$ -$ 2,554,106$ 23,818$ 3,388,898$ Held by bond trustee - - - - - - Accounts receivable (net of allowance for - - 192,383 - 237,256 440,146 uncollectibles)
Taxes receivable - - - 72,571 - - Grants receivable - - - - - - Interest receivable - - - 7,359 - 8,374 Due from other funds 1,466 9,204 - - - - Loans receivable (net of allowance for 1,024,834 2,293,231 - - - - uncollectibles)
TOTAL ASSETS 1,426,607$ 3,695,293$ 192,383$ 2,634,036$ 261,074$ 3,837,418$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable -$ 6,355$ 122,699$ -$ -$ -$ Salaries and benefits payable - - - - - - Due to other funds - 97,148 61,869 - - - Advances from other funds - - - - - - TOTAL LIABILITIES - 103,503 184,568 - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs 1,024,834 2,293,231 192,383 - - - Unavailable revenue-public safety - - - - - - TOTAL DEFERRED INFLOWS OF RESOURCE 1,024,834 2,293,231 192,383 - - -
FUND BALANCES
Restricted
Housing programs 401,773 1,298,559 - - - - Public improvements - - - - - - Streets and transportation - - - - 261,074 3,837,418 Debt service - - - - - - Special programs - - - 2,634,036 - - Law enforcement - - - - - - Committed
Equipment - - - - - - Unassigned - - (184,568) - - - TOTAL FUND BALANCES (DEFICITS) 401,773 1,298,559 (184,568) 2,634,036 261,074 3,837,418
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 1,426,607$ 3,695,293$ 192,383$ 2,634,036$ 261,074$ 3,837,418$ (Continued)
Special Revenue
166
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
117
Landscape Total
Comm
unity Maintenance Nonmajor
Library Police Development District Special
Transportation Services Grants Block Grant No. 1 Revenue Funds ASSETS
Cash and investments:
10,027,438$ 2,196,297$ 1,154,747$ -$ -$ 21,138,469$ Held by City - - - - - - Held by bond trustee - 4,095 37,763 - - 911,643 Accounts receivable (net of allowance for uncollectibles)
- - - - - 72,571 Taxes receivable - - 17,620 674,868 - 692,488 Grants receivable 24,083 4,934 2,558 - - 47,308 Interest receivable - - - - 10,670 Due from other funds - - 356,274 - 3,674,339 Loans receivable (net of allowance for uncollectibles)
10,051,521$ 2,205,326$ 1,212,688$ 1,031,142$ -$ 26,547,488$ TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
-$ 72,608$ 6,857$ 80,498$ 140,526$ 429,543$ Accounts payable - 3,871 - - - 3,871 Salaries and benefits payable - - - 619,754 817,624 1,596,395 Due to other funds - - - - - Advances from other funds - 76,479 6,857 700,252 958,150 2,029,809 TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- - - 356,274 - 3,866,722 Unavailable revenue-housing programs - - 107,371 - - 107,371 Unavailable revenue-public safety - - 107,371 356,274 - 3,974,093 TOTAL DEFERRED INFLOWS OF RESOURC
FUND BALANCES
Restricted
- - - - - 1,700,332 Housing programs - - - - - - Public improvements 10,051,521 - - - - 14,150,013 Streets and transportation - - - - - - Debt service - 2,128,847 - - - 4,762,883 Special programs - - 1,098,460 - - 1,098,460 Law enforcement Committed
- - - - - - Equipment - - - (25,384) (958,150) (1,168,102) Unassigned 10,051,521 2,128,847 1,098,460 (25,384) (958,150) 20,543,586 TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES, DEFERRED INFLOWS O
10,051,521$ 2,205,326$ 1,212,688$ 1,031,142$ -$ 26,547,488$ RESOURCES AND FUND BALANCES (Continued)
Special Revenue
167
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
118
2014A Total
Lease Revenue 2016 2017 2018 Nonmajor
Refunding CREBS Lease Lease Debt
Bonds LRB Agreement Agreement Service
ASSETS
Cash and investments:
Held by City -$ -$ -$ -$ -$ Held by bond trustee - - 1,324,129 - 1,324,129 Accounts receivable (net of allowance for - - - - - uncollectibles)
Taxes receivable - - - - - Grants receivable - - - - - Interest receivable - - - - - Due from other funds - - - - - Loans receivable (net of allowance for - - - - - uncollectibles)
TOTAL ASSETS -$ -$ 1,324,129$ -$ 1,324,129$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable -$ -$ -$ -$ - Salaries and benefits payable - - - - - Due to other funds - - - - - Advances from other funds - - - - -
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 - - - - - Debt service - - 1,324,129 - 1,324,129 Special programs - - - - - Law enforcement - - - - - Committed
Equipment - - - - Unassigned - - - - TOTAL FUND BALANCES (DEFICITS) - - 1,324,129 - 1,324,129
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES -$ -$ 1,324,129$ -$ 1,324,129$ (Continued)
Debt Service
168
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
119
Geographic Financial Police
Equipment Information Public Facility Information Capital Replacement System (GIS) Improvements System (FIS) Projects ASSETS
Cash and investments:
3,077,751$ 21,193$ 4,346,156$ 2,167,118$ 345,824$ Held by City - - - - - Held by bond trustee - - - - - Accounts receivable (net of allowance for uncollectibles)
- - - - - Taxes receivable - - - - - Grants receivable 3,931 63 - 6,591 - Interest receivable - - - - - Due from other funds - - - - - Loans receivable (net of allowance for uncollectibles)
3,081,682$ 21,256$ 4,346,156$ 2,173,709$ 345,824$ TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
176,941$ -$ 170,260$ 15,142$ -$ Accounts payable - - - 4,600 - Salaries and benefits payable - - - - - Due to other funds - - 3,348,380 - - Advances from other funds 176,941 - 3,518,640 19,742 - 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 - - - - - Debt service - - - - - Special programs - - - - 345,824 Law enforcement Committed
2,904,741 21,256 827,516 2,153,967 - Equipment - - - - - Unassigned 2,904,741 21,256 827,516 2,153,967 345,824 TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES, DEFERRED INFLOWS OF
3,081,682$ 21,256$ 4,346,156$ 2,173,709$ 345,824$ RESOURCES AND FUND BALANCES (Continued)
Capital Projects
169
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
120
Total
Nonmajor Tota l
Te
lephone Solar Capital LED Streetlight Capital Nonmajor
System Projects Project Projects Funds
ASSETS
Cash and investments:
Held by City 165,753$ 56,305$ 403,216$ 10,583,316$ 31,721,785$ Held by bond trustee - - - - 1,324,129 Accounts receivable (net of allowance for - - - - 911,643 uncollectibles)
Taxes receivable - - - - 72,571 Grants receivable - - - - 692,488 Interest receivable - - - 10,585 57,893 Due from other funds - - - - 10,670 Loans receivable (net of allowance for - - - - 3,674,339 uncollectibles)
TOTAL ASSETS 165,753$ 56,305$ 403,216$ 10,593,901$ 38,465,518$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable -$ -$ -$ 362,343$ 791,886$ Salaries and benefits payable - - - 4,600 8,471 Due to other funds - - - - 1,596,395 Advances from other funds - - - 3,348,380 3,348,380 TOTAL LIABILITIES - - - 3,715,323 5,745,132
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs - - - - 3,866,722 Unavailable revenue-public safety - - - - 107,371 TOTAL DEFERRED INFLOWS OF RESOURCES - - - - 3,974,093
FUND BALANCES
Restricted
Housing programs - - - - 1,700,332 Public improvements - 56,305 403,216 459,521 459,521 Streets and transportation - - - - 14,150,013 Debt service - - - - 1,324,129 Special programs - - - - 4,762,883 Law enforcement - - - 345,824 1,444,284 Committed
Equipment 165,753 - - 6,073,233 6,073,233 Unassigned - - - - (1,168,102) TOTAL FUND BALANCES (DEFICITS) 165,753 56,305 403,216 6,878,578 28,746,293
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 165,753$ 56,305$ 403,216$ 10,593,901$ 38,465,518$ (Concluded)
Capital Projects
170
171
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
121
Public, Road
Education & Maintenance
CalHome HOME Planning Government Gasoline & Rehabilitaion Grant Grant Grant Fees Tax Account
REVENUES
Taxes -$ -$ -$ 283, 914$ -$ -$ Fines and forfeitures - - - - - - Use of money and property 137,122 360,730 - 20,309 - 26,734 From other governments - - - - 2,957,347 2,517,600 Grants - - - - - - Service charges - - - - - - Other revenues - - - - - - Total revenues 137,122 360,730 - 304,223 2,957,347 2,544,334
EXPENDITURES
Current:
General government - - - - - - Community services - - - - - - Planning 2,001 283,772 184,568 - - - Public ways and facilities - - - - - - Public safety - - - - - - Total current expenditures 2,001 283,772 184,568 - - - Capital outlay - - - 71,261 - - Debt service:
Principal - - - - - - Interest - - - - - - Other - - - - - - Total debt service - - - - - - Total expenditures 2,001 283,772 184,568 71,261 - -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 135,121 76,958 (184,568) 232,962 2,957,347 2,544,334
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - - Transfers out - - - - (2,720,091) (1,959,446) Total other financing sources (uses) - - - - (2,720,091) (1,959,446) NET CHANGE IN FUND BALANCES 135,121 76,958 (184,568) 232,962 237,256 584,888 FUND BALANCES - BEGINNING 266,652 1,221,601 - 2,401,074 23,818 3,252,530 FUND BALANCES (DEFICITS) - ENDING 401,773$ 1,298,559$ (184,568)$ 2,634,036$ 261,074$ 3,837,418$ (Continued)
Special Revenue
172
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
122
Landscape Total
Community Maintenance Nonmajor
Lib
rary Police Development District Special
Transportation Services Grants Block Grant No. 1 Revenue Funds
REVENUES
-$ 2,361,302$ -$ -$ -$ 2,645,216$ Taxes - 1,629 - - - 1,629 Fines and forfeitures (136,075) 14,274 6,913 2 (5,880) 424,129 Use of money and property 4,223,717 - - - - 9,698,664 From other governments - 11,922 551,770 650,555 - 1,214,247 Grants - 1,047 - - 790,509 791,556 Service charges - 30,001 - - - 30,001 Other revenues 4,087,642 2,420,175 558,683 650,557 784,629 14,805,442 Total revenues
EXPENDITURES
Current:
- - - 542,734 - 542,734 General government - 2,399,367 - - - 2,399,367 Community services - - - 133,624 - 603,965 Planning 87,362 - - - 1,433,383 1,520,745 Public ways and facilities - - 236,999 - - 236,999 Public safety 87,362 2,399,367 236,999 676,358 1,433,383 5,303,810 Total current expenditures - - - - - 71,261 Capital outlay Debt service:
- - - - - - Principal - - - - - - Interest - - - - - - Other - - - - - - Total debt service 87,362 2,399,367 236,999 676,358 1,433,383 5,375,071 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
4,000,280 20,808 321,684 (25,801) (648,754) 9,430,371 OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
- - - - 200,000 200,000 Transfers in (4,006,390) - (373,108) - - (9,059,035) Transfers out (4,006,390) - (373,108) - 200,000 (8,859,035) Total other financing sources (uses) (6,110) 20,808 (51,424) (25,801) (448,754) 571,336 NET CHANGE IN FUND BALANCES 10,057,631 2,108,039 1,149,884 417 (509,396) 19,972,250 FUND BALANCES - BEGINNING 10,051,521$ 2,128,847$ 1,098,460$ (25,384)$ (958,150)$ 20,543,586$ FUND BALANCES (DEFICITS) - ENDING (Continued)
Special Revenue
173
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
123
2014A Total
Lease Revenue 2016 2017 2018 Nonmajor
Refunding CREBS Lease Lease Debt
Bonds LRB Agreement Agreement Ser vi ce
REVENUES
Taxes -$ -$ -$ -$ -$ Fines and forfeitures - - - - - Use of money and property - - - - - From other governments - - - - - Grants - - - - - Service charges - - - - - Other revenues - - - - - Total revenues - - - - -
EXPENDITURES
Current:
General government - - - - - Community services - - - - - Planning - - - - - Public ways and facilities - - - - - Public safety - - - - - Total current expenditures - - - - - Capital outlay - - - - - Debt service:
Principal 800,000 404,773 419,169 296,857 1,920,799 Interest 666,775 292,964 154,672 270,781 1,385,192 Other 2,550 751 750 750 4,801 Total debt service 1,469,325 698,488 574,591 568,388 3,310,792 Total expenditures 1,469,325 698,488 574,591 568,388 3,310,792
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,469,325) (698,488) (574,591) (568,388) (3,310,792)
OTHER FINANCING SOURCES (USES)
Transfers in 1,469,325 698,488 574,591 568,388 3,310,792 Transfers out - - - - - Total other financing sources (uses) 1,469,325 698,488 574,591 568,388 3,310,792
NET CHANGE IN FUND BALANCES - - - - - FUND BALANCES - BEGINNING - - 1,324,129 - 1,324,129 FUND BALANCES (DEFICITS) - ENDING -$ -$ 1,324,129$ -$ 1,324,129$ (Continued)
Debt Service
174
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
124
Geographic Financial Police
Equipment Information Public Facility Information Capital Replacement System (GIS) Improvements System (FIS) Projects
REVENUES
-$ -$ -$ -$ -$ Tax es - - - - Fines and forfeitures 11,153 174 - 18,143 - Use of money and property - - - - - From other governments - - - - - Grants - - - - - Service charges - - - - 75,000 Other revenues 11,153 174 - 18,143 75,000 Total revenues
EXPENDITURES
Current:
- - - - - General government - - - - - Community services - - - - - Planning - - - - - Public ways and facilities - - - - - Public safety - - - - - Total current expenditures 723,196 - 1,457,081 494,816 14,470 Capital outlay Debt service:
- - - - - Principal - - - - - Interest - - - - - Other - - - - - Total debt service 723,196 - 1,457,081 494,816 14,470 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
(712,043) 174 (1,457,081) (476,673) 60,530 OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
963,909 - 45,000 - - Transfers in - - - - - Transfers out 963,909 - 45,000 - - Total other financing sources (uses) 251,866 174 (1,412,081) (476,673) 60,530 NET CHANGE IN FUND BALANCES 2,652,875 21,082 2,239,597 2,630,640 285,294 FUND BALANCES - BEGINNING 2,904,741$ 21,256$ 827,516$ 2,153,967$ 345,824$ FUND BALANCES (DEFICITS) - ENDING (Continued)
Capital Projects
175
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
125
Total
Nonmajor Total
Telephone Solar Capital LED Streetlight Capital Nonmajor System Projects Project Projects Funds
REVENUES
Taxes -$ -$ -$ -$ 2,645,216$ Fines and forfeitures - 1,629
Use of money and property - - - 29,470 453,599 From other governments - - - - 9,698,664 Grants - - - - 1,214,247 Service charges - - - - 791,556 Other revenues - - - 75,000 105,001 Total revenues - - - 104,470 14,909,912
EXPENDITURES
Current:
General government - - - - 542,734 Community services - - - - 2,399,367 Planning - - - - 603,965 Public ways and facilities - - - - 1,520,745 Public safety - - - - 236,999 Total current expenditures - - - - 5,303,810 Capital outlay - - - 2,689,563 2,760,824 Debt service:
Principal - - - - 1,920,799 Interest - - - - 1,385,192 Other - - - - 4,801 Total debt service - - - - 3,310,792 Total expenditures - - - 2,689,563 11,375,426
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES - - - (2,585,093) 3,534,486
OTHER FINANCING SOURCES (USES)
Transfers in - - - 1,008,909 4,519,701 Transfers out - - - - (9,059,035) Total other financing sources (uses) - - - 1,008,909 (4,539,334) NET CHANGE IN FUND BALANCES - - - (1,576,184) (1,004,848) FUND BALANCES - BEGINNING 165,753 56,305 403,216 8,454,762 29,751,141 FUND BALANCES (DEFICITS) - ENDING 165,753$ 56,305$ 403,216$ 6,878,578$ 28,746,293$ (Concluded)
Capital Projects
176
Schedules
Budget and Actual
Individual Fund
177
178
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, 2022
126
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 35,000$ 35,000$ 137,122$ 102,122$ Total revenues 35,000 35,000 137,122 102,122
EXPENDITURES
Current:
Planning:
Materials, supplies, and services 90,001 90,001 2,001 88,000 Total expenditures 90,001 90,001 2,001 88,000 NET CHANGE IN FUND BALANCES (55,001) (55,001) 135,121 190,122 FUND BALANCES - BEGINNING 266,652 266,652 266,652 - FUND BALANCES - ENDING 211,651$ 211,651$ 401,773$ 190,122$ Budgeted Amounts
179
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, 2022
127
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 137,000$ 137,000$ 360,730$ 223,730$
EXPENDITURES
Current:
Planning:
Materials, supplies, and services 500,000 500,000 243,772 256,228 Reimbursements to general fund 40,000 40,000 40,000 - Total expenditures 540,000 540,000 283,772 256,228 NET CHANGE IN FUND BALANCES (403,000) (403,000) 76,958 479,958 FUND BALANCES - BEGINNING 1,221,601 1,221,601 1,221,601 - FUND BALANCES - ENDING 818,601$ 818,601$ 1,298,559$ 479,958$ Budgeted Amounts
180
CITY OF SIMI VALLEY
PLANNING GRANT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
128
Variance with
Budget
Positive
Original Final Actual (Negative)
EXPENDITURES
Current:
Planning:
Materials, supplies, and services -$ 769,500$ 184,568$ 584,932$ Reimbursements to general fund - 40,500 - 40,500 Total expenditures - 810,000 184,568 625,432 NET CHANGE IN FUND BALANCES - (810,000) (184,568) 625,432
FUND BALANCES - BEGINNING - - - - FUND BALANCES - ENDING -$ (810,000)$ (184,568)$ 625,432$ Budgeted Amounts
181
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, 2022
129
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes 280,000$ 280,000$ 283,914$ 3,914$
Use of money and property 15,000 15,000 20,309 5,309 Total revenues 295,000 295,000 304,223 9,223
EXPENDITURES
Capital outlay 200,000 1,166,858 71,261 1,095,597 Total expenditures 200,000 1,166,858 71,261 1,095,597
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 95,000 (871,858) 232,962 1,104,820 NET CHANGE IN FUND BALANCES 95,000 (871,858) 232,962 1,104,820 FUND BALANCES - BEGINNING 2,401,074 2,401,074 2,401,074 - FUND BALANCES - ENDING 2,496,074$ 1,529,216$ 2,634,036$ 1,104,820$ Budgeted Amounts
182
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, 2022
130
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
From other governments 3,269,615$ 3,269,615$ 2,957,347$ (312,268)$ Total revenues 3,269,615 3,269,615 2,957,347 (312,268)
OTHER FINANCING SOURCES (USES)
Transfers out (3,269,615) (3,269,615) (2,720,091) 549,524 NET CHANGE IN FUND BALANCES - - 237,256 237,256 FUND BALANCES - BEGINNING 23,818 23,818 23,818 - FUND BALANCES - ENDING 23,818$ 23,818$ 261,074$ 237,256$ Budgeted Amounts
183
CITY OF SIMI VALLEY
ROAD MAINTENANCE AND REHABILITATION ACCOUNT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
131
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 26,734$ 26,734$ From other governments 2,496,170 2,496,170 2,517,600 21,430 Total revenues 2,496,170 2,496,170 2,544,334 48,164
OTHER FINANCING SOURCES (USES)
Transfers out (2,496,170) (2,496,170) (1,959,446) 536,724 NET CHANGE IN FUND BALANCES - - 584,888 584,888 FUND BALANCES - BEGINNING 3,252,530 3,252,530 3,252,530 - FUND BALANCES - ENDING 3,252,530$ 3,252,530$ 3,837,418$ 584,888$ Budgeted Amounts
184
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, 2022
132
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 2,500$ 2,500$ (136,075)$ (138,575)$ From other governments 4,433,400 4,433,400 4,223,717 (209,683) Total revenues 4,435,900 4,435,900 4,087,642 (348,258)
EXPENDITURES
Current:
Public ways and facilities:
Materials, supplies and services 38,000 38,000 87,362 (49,362) Total expenditures 38,000 38,000 87,362 (49,362)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,397,900 4,397,900 4,000,280 (397,620)
OTHER FINANCING (USES)
Transfers out (5,723,017) (5,723,017) (4,006,390) 1,716,627 NET CHANGE IN FUND BALANCES (1,325,117) (1,325,117) (6,110) 1,319,007 FUND BALANCES - BEGINNING 10,057,631 10,057,631 10,057,631 - FUND BALANCES - ENDING 8,732,514$ 8,732,514$ 10,051,521$ 1,319,007$ Budgeted Amounts
185
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, 2022
133
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes 2,361,302$ 2,361,302$ 2,361,302$ -$
Use of money and property 4,000 4,000 14,274 10,274 Grants - - 11,922 11,922 Fines and fees 5,000 5,000 1,629 (3,371) Service charges 5,000 5,000 1,047 (3,953) Other revenues 60,000 60,000 30,001 (29,999) Total revenues 2,435,302 2,435,302 2,420,175 (15,127)
EXPENDITURES
Current:
Community services:
Materials, supplies and services 2,843,255 3,970,286 2,399,367 1,570,919 Total expenditures 2,843,255 3,970,286 2,399,367 1,570,919
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (407,953) (1,534,984) 20,808 1,555,792 NET CHANGE IN FUND BALANCES (407,953) (1,534,984) 20,808 1,555,792 FUND BALANCES - BEGINNING 2,108,039 2,108,039 2,108,039 - FUND BALANCES - ENDING 1,700,086$ 573,055$ 2,128,847$ 1,555,792$ Budgeted Amounts
186
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, 2022
134
Variance with
Budget
Positive
Original Final A ctual (Negative)
REVENUES
Use of money and property 30,000$ 30,000$ 6,913$ (23,087)$ Grants 700,200 901,376 551,770 (349,606) Total revenues 730,200 931,376 558,683 (372,693)
EXPENDITURES
Current:
Public safety:
Material, supplies and services 249,600 317,827 236,999 80,828 Total expenditures 249,600 317,827 236,999 80,828
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 480,600 613,549 321,684 (291,865)
OTHER FINANCING (USES)
Transfers out (342,200) (590,919) (373,108) 217,811 NET CHANGE IN FUND BALANCES 138,400 22,630 (51,424) (74,054) FUND BALANCES - BEGINNING 1,149,884 1,149,884 1,149,884 - FUND BALANCES - ENDING 1,288,284$ 1,172,514$ 1,098,460$ (74,054)$ Budgeted Amounts
187
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, 2022
135
Variance with
Budget
Posit
ive
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 2$ 2$ Grants 648,104 1,013,726 650,555 (363,171) Total revenues 648,104 1,013,726 650,557 (363,169)
EXPENDITURES
Current:
General government 503,972$ 1,397,510$ 542,734$ 854,776 Planning 144,132 144,132 133,624 10,508 Total expenditures 648,104 1,541,642 676,358 865,284 NET CHANGE IN FUND BALANCES - (527,916) (25,801) 502,115 FUND BALANCES - BEGINNING 417 417 417 - FUND BALANCES - ENDING 417$ (527,499)$ (25,384)$ 502,115$ Budgeted Amounts
188
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, 2022
136
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 14,950$ 14,950$ (5,880)$ (20,830)$ Service charges 786,267 786,267 790,509 4,242 Total revenues 801,217 801,217 784,629 (16,588)
EXPENDITURES
Current:
Public ways and facilities:
Landscape maintenance contract 1,313,071 1,445,071 1,433,383 11,688 Total expenditures 1,313,071 1,445,071 1,433,383 11,688
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (511,854) (643,854) (648,754) (4,900)
OTHER FINANCING SOURCES (USES)
Transfers in 200,000 200,000 200,000 - NET CHANGE IN FUND BALANCES (311,854) (443,854) (448,754) (4,900) FUND BALANCES - BEGINNING (509,396) (509,396) (509,396) - FUND BALANCES - ENDING (821,250)$ (953,250)$ (958,150)$ (4,900)$ Budgeted Amounts
189
190
Internal Service and
Fiduciary Funds
191
192
CITY OF SIMI VALLEY
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022
137
Workers'
Liability Compensation GIS/Permits F IS
In
surance Insurance Operations Operations Total
ASSETS
Current assets:
Cash and investments 3,566,464$ 18,407,394$ 261,651$ 297,225$ 22,532,734$ Customer receivable - 807 - - 807 Interest receivable 10,056 54,136 721 1,045 65,958 TOTAL ASSETS 3,576,520 18,462,337 262,372 298,270 22,599,499
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions - 77,673 - - 77,673 Related to other postemployment benefits - 45,396 - - 45,396 Total deferred outflows of resources - 123,069 - - 123,069
LIABILITIES
Current liabilities:
Accounts payable 37,962 23,264 - - 61,226 Salaries and benefits payable - 16,619 - - 16,619 Compensated absences - 2,545 - - 2,545 Claims and legal services payable 875,981 2,196,664 - - 3,072,645 Total current liabilities 913,943 2,239,092 - - 3,153,035 Noncurrent liabilities:
Advances from other funds - 2,344,000 - - 2,344,000 Compensated absences - 22,907 - - 22,907 Claims and legal services payable 1,215,187 7,099,861 - - 8,315,048 Net pension liability - 318,588 - - 318,588 Net other postemployment benefits liability - 101,987 - - 101,987 Total noncurrent liabilities 1,215,187 9,887,343 - - 11,102,530 TOTAL LIABILITIES 2,129,130 12,126,435 - - 14,255,565
DEFERRED INFLOWS OF RESOURCES
Related to pensions - 204,046 - - 204,046 Related to other post employment benefits - 24,445 - - 24,445 Total deferred inflows of resources - 228,491 - - 228,491
NET POSITION
Unrestricted 1,447,390 6,230,480 262,372 298,270 8,238,512 TOTAL NET POSITION 1,447,390$ 6,230,480$ 262,372$ 298,270$ 8,238,512$ 193
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022
138
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
OPERATING REVENUES
Total charges for sales and services 2,258,451$ 4,201,769$ 95,200$ -$ 6,555,420$
OPERATING EXPENSES
Salaries and benefits - 326,204 - - 326,204 Excess insurance premiums 1,524,798 595,113 - - 2,119,911 Claims and legal expenses (90,746) 1,266,281 - - 1,175,535 Reduction of reserves (207,256) 117,959 - - (89,297) General administration 46,859 431,169 - - 478,028 Other - 3,262 49,173 - 52,435 Total operating expenses 1,273,655 2,739,988 49,173 - 4,062,816 OPERATING INCOME (LOSS) 984,796 1,461,781 46,027 - 2,492,604 NONOPERATING REVENUES AND EXPENSES:
Interest 25,885 (330,686) 1,963 2,941 (299,897) Total non-operating expenses 25,885 (330,686) 1,963 2,941 (299,897) INCOME (LOSS) BEFORE TRANSFERS 1,010,681 1,131,095 47,990 2,941 2,192,707
TRANSFERS
Transfers out (3,000) (3,200) - (151,000) (157,200) Total transfers (3,000) (3,200) - (151,000) (157,200) CHANGE IN NET POSITION 1,007,681 1,127,895 47,990 (148,059) 2,035,507 NET POSITION-BEGINNING 439,709 5,102,585 214,382 446,329 6,203,005 NET POSITION-ENDING 1,447,390$ 6,230,480$ 262,372$ 298,270$ 8,238,512$ 194
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
139
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
CAS
H FLOWS FROM OPERATING ACTIVITIES:
Cash received from service charges
and other revenues (net of refunds) 2,258,451$ 4,201,769$ 95,200$ -$ 6,555,420$ Cash paid for salaries and benefits - (382,655) - - (382,655) Cash paid for general administration (46,858) (408,847) - - (455,705) Cash paid for services (998,300) (3,260) (49,173) - (1,050,733) Cash paid for insurance premiums and claims (1,557,031) (2,753,161) - - (4,310,192) Net cash provided (used) by operating activities (343,738) 653,846 46,027 - 356,135 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers to other funds (3,000) (3,200) - (151,000) (157,200) Cash used by noncapital financing activities (3,000) (3,200) - (151,000) (157,200) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments 24,084 (342,996) 1,705 2,991 (314,216) Cash provided by investing activities 24,084 (342,996) 1,705 2,991 (314,216) NET INCREASE (DECREASE) IN CASH AND INVESTMENTS (322,654) 307,650 47,732 (148,009) (115,281) CASH AND INVESTMENTS, BEGINNING OF YEAR 3,889,118 18,099,744 213,919 445,234 22,648,015 CASH AND INVESTMENTS, END OF YEAR 3,566,464$ 18,407,394$ 261,651$ 297,225$ 22, 532,734$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) 984,796$ 1,461,781$ 46,027$ -$ 2, 492,604$ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
(Increase) decrease in prepaid expenses - 225,738 - - 225,738 Increase (decrease) in accounts receivable 14,910 22,324 - - 37,234 Increase (decrease) in accrued payroll - 10,436 - - 10,436 Increase (decrease) in compensated absences - (5,852) - - (5,852) Increase (decrease) in claims and legal services payable (1,343,444) (773,808) - - (2,117,252) Increase (decrease) net pension liability - (269,732) - - (269,732) Increase (decrease) net other postemployment benefits liability - (17,041) - - (17,041) Total adjustments (1,328,534) (807,935) - - (2,136,469) Net cash provided (used) by operating activities (343,738)$ 653,846$ 46,027$ -$ 356,1 35$ 195
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND
JUNE 30, 2022
140
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$ 2,704,866$ Held by bond trustee - - - - Interest receivable - - - 2,986 Capital assets not being depreciated - 1,124,174 - - TOTAL ASSETS - 1,013,805 1 2,707,852
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - - - -
TOTAL DEFERRED OUTFLOWS OF RESOURCES - - - -
LIABILITIES
Accrued interest payable - - - - Long-term debt:
Due within one year - - - - Due in more than one year - - - -
TOTAL LIABILITIES - - - -
NET POSITION
Held in trust for other purposes -$ 1,013,805$ 1$ 2,707,852$ (Continued)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 196
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND
JUNE 30, 2022
141
Total Successor
2003 Agency to the
Tax Allocation Simi Valley CDA
Refunding CDA Private-Purpose
Bonds Projects Trust Fund
ASSETS
Cash and investments:
106,621$ 39,309$ 2,740,428$ Held by City 2,101,982 - 2,101,982 Held by bond trustee 594 116 3,696 Interest receivable - - 1,124,174 Capital assets not being depreciated 2,209,197 39,425 5,970,280 TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
46,741 - 46,741 Deferred loss on refunding 46,741 - 46,741 TOTAL DEFERRED OUTFLOWS OF RESOURCES
LIABILITIES
249,021 - 249,021 Accrued interest payable Long-term debt:
1,366,306 - 1,366,306 Due within one year 13,689,600 - 13,689,600 Due in more than one year 15,304,927 - 15,304,927 TOTAL LIABILITIES
NET POSITION
(13,048,989)$ 39,425$ (9,287,906)$ Held in trust for other purposes (Concluded)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 197
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
142
Community Merged
Development Tapo Ca nyon Redevelopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
ADDITIONS
Property taxes -$ -$ -$ 2,512,484$ Investment earnings - - - 7,139 Transfers in 54,502 51,103 - - TOTAL ADDITIONS 54,502 51,103 - 2,519,623
DEDUCTIONS
Administrative expenses - - - - Interest and fiscal agency expenses of former - - - - Simi Valley Community Development Agency
Contributions to other governments 54,502 - - - Transfers out - - - 2,179,950 TOTAL DEDUCTIONS 54,502 - - 2,179,950 CHANGE IN NET POSITION - 51,103 - 339,673 NET POSITION - BEGINNING - 962,702 1 2,368,179 NET POSITION - ENDING -$ 1,013,805$ 1$ 2,707,852$ (Continued)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 198
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
143
Total Successor
2003 Agency to the
Tax Allocation Simi Valley CDA
Refunding CDA Private-Purpose
Bonds Projects Trust Fund
ADDITIONS
-$ -$ 2,512,484$ Property taxes 3,352 322 10,813 Investment earnings 2,074,665 - 2,180,270 Transfers in 2,078,017 322 4,703,567 TOTAL ADDITIONS
DEDUCTIONS
7,250 - 7,250 Administrative expenses 775,556 - 775,556 Interest and fiscal agency expenses of former Simi Valley Community Development Agency
- - 54,502 Contributions to other governments 320 - 2,180,270 Transfers out 783,126 - 3,017,578 TOTAL DEDUCTIONS 1,294,891 322 1,685,989 CHANGE IN NET POSITION (14,343,880) 39,103 (10,973,895) NET POSITION - BEGINNING (13,048,989)$ 39,425$ (9,287,906)$ NET POSITION - ENDING (Concluded)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Fund 199
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2022
144
Assessment
City Districts
Custodial City of Total
Fund Simi Valley Custodial Funds
ASSETS
Current assets:
Cash and investments:
Held by City 6,041,389$ 1,439,855$ 7,481,244$ Held by bond trustee - 1,028,664 1,028,664 Accounts receivable - 3,662 3,662 TOTAL ASSETS 6,041,389 2,472,181 8,513,570
LIABILITIES
Accounts payable and accrued liabilities 60,901 3,040 63,941 Deposits 5,980,488 - 5,980,488 Due to bondholders - 2,070,542 2,070,542 TOTAL LIABILITIES 6,041,389 2,073,582 8,114,971
NET POSITION
Net position restricted for individuals -$ 398,599$ 398,599$ 200
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
145
City Assessment
Custodial Dis tricts - City Total
Fund of Simi Valley Custodial Funds
ADDITIONS
Other taxes -$ 402,521$ 402,521$ Investment earnings - 9,541 9,541 TOTAL ADDITIONS - 412,062 412,062
DEDUCTIONS
Administrative expenses - 13,368 13,368 Interest and fiscal agency expenses - 359,991 359,991 TOTAL DEDUCTIONS - 373,359 373,359 CHANGE IN NET POSITION - 38,703 38,703 NET POSITION - BEGINNING - 359,896 359,896 NET POSITION - ENDING -$ 398,599$ 398,599$ 201
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION AND OTHER POST EMPLOYMENT BENEFITS (OPEB) TRUST FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022
146
Total Pension
and Other Post
Employment
Pension OPEB Benefits (OPEB)
Trust Trust Trust Funds
ASSETS
Current assets:
Restricted cash and investments held with Pension Trust (note III A) 1,348,052$ -$ 1,348,052$ Restricted cash and investments held with OPEB Trust (note III A) - 3,736,541 3,736,541 TOTAL ASSETS 1,348,052 3,736,541 5,084,593
FIDUCIARY NET POSITION
Net position restricted for pensions 1,348,052 - 1,348,052 Net position restricted for OPEB - 3,736,541 3,736,541 TOTAL NET POSITION 1,348,052$ 3,736,541$ 5,084,593$
202
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION AND OTHER POST EMPLOYMENT BENEFITS (OPEB) TRUST FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022
147
Total Pension
and Other Post
Employ
ment
Pension OPEB Benefits (OPEB)
Trust Trust Trust Funds
ADDITIONS
Contributions 148,678$ 3,100,231$ 3,248,909$ Investment earnings (160,472) 712,591 552,119 TOTAL ADDITIONS (11,794) 3,812,822 3,801,028
DEDUCTIONS
Administrative expenses 874 937,477 938,351 Benefit payments 120,449 2,179,284 2,299,733 TOTAL DEDUCTIONS 121,323 3,116,761 3,238,084 CHANGE IN FIDUCIARY NET POSITION (133,117) 696,061 562,944 FIDUCIARY NET POSITION - BEGINNING 1,481,169 3,040,480 4,521,649 FIDUCIARY NET POSITION - ENDING 1,348,052$ 3,736,541$ 5,084,593$ 203
204
STATISTICAL SECTION
STATISTICAL SECTION
205
206
SOURCE:
Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial report for the relevant year.
148
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 49
Revenue Capacity
These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. ....................................................... 1 59
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. ........................................................................................ 1 65
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 69
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. ..................................................... 1 71
207
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
149
2012-13 2013-14 2014-15 2015-16 2016-17
Gover
nmental activities
Net investment in capital assets 182,759,929$ 186,806,245$ 207,788,585$ 211,751,365$ 210,531,356$ Restricted 61,520,939 58,246,665 57,372,815 57,552,738 64,139,877 Unrestricted 34,169,932 37,002,698 (55,691,639) (52,859,886) (62,293,358) Total governmental activites net position 278,450,800$ 282,055,608$ 209,469,761$ 216,444,217$ 212,377,875$ Business-type activities
Net investment in capital assets 129,933,391$ 132,775,502$ 141,770,140$ 143,093,105$ 141,317,489$ Restricted 5,886,068 4,894,656 4,716,713 5,140,128 5,941,420 Unrestricted 42,641,507 38,232,485 15,841,185 17,627,461 19,496,282 Total business-type activities net position 178,460,966$ 175,902,643$ 162,328,038$ 165,860,694$ 166,755,191$ Primary Government
Net investment in capital assets 312,693,320$ 319,581,747$ 349,558,725$ 354,844,470$ 351,848,845$ Restricted 67,407,007 63,141,321 62,089,528 62,692,866 70,081,297 Unrestricted 76,811,439 75,235,183 (39,850,454) (35,232,425) (42,797,076) Total primary government net position 456,911,766$ 457,958,251$ 371,797,799$ 382,304,911$ 379,133,066$ Continued
Fiscal Year
208
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
150
2017-18 2018-19 2019-20 2020-21 2021- 22
Governmental activities
196,724,305$ 208,951,633$ 209,763,040$ 203,826,589$ 200,958,735$ Net investment in capital assets 71,851,898 60,704,865 62,018,594 78,265,866 87,578,328 Restricted (88,047,192) (90,524,428) (89,407,109) (83,168,701) (67,653,561) Unrestricted 180,529,011$ 179,132,070$ 182,374,525$ 198,923,754$ 220,883,502$ Total governmental activites net position Business-type activities
139,670,875$ 137,805,536$ 139,278,603 148,000,879 133,253,370 Net investment in capital assets 7,011,040 7,874,785 7,874,785 9,843,643 12,266,569 Restricted 18,695,056 24,888,703 30,472,607 28,737,089 56,432,178 Unrestricted 165,376,971$ 170,569,024$ 177,625,995$ 186,581,611$ 201,952,117$ Total business-type activities net position Primary Government
336,395,180$ 346,757,169$ 349,041,643$ 351,827,468$ 334,212,105$ Net investment in capital assets 78,862,938 68,579,650 69,893,379 88,109,509 99,844,897 Restricted (69,352,136) (65,635,725) (58,934,502) (54,431,612) (11,221,383) Unrestricted 345,905,982$ 349,701,094$ 360,000,520$ 385,505,365$ 422,835,619$ Total primary government net position Concluded
Fiscal Year
209
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
151
2012-13 2013-14 2014-15 2015-16 2016-17
Expenses
Governmental activities:
General government 19,086,724$ 19,924,154$ 19,604,979$ 16,442,755$ 13,323,582$ Community services 4,441,851 6,042,418 6,264,358 6,397,826 7,068,775 Planning 5,852,282 5,665,265 5,699,916 6,308,221 6,001,235 Public ways and facilities 16,902,636 17,004,864 16,822,400 16,641,718 18,569,074 Public safety 31,460,391 30,566,135 31,445,540 31,286,515 34,501,473 Interest on long-term debt 1,206,096 1,059,055 265,922 720,840 937,079 Refunding bond issuance costs - - - 194,069 - Total governmental activities expenses 78,949,980 80,261,891 80,103,115 77,991,944 80,401,218 Business-type activities:
Sanitation 15,050,164 17,180,903 16,136,164 14,845,944 18,151,061 Waterworks district no. 8 37,542,008 40,980,119 37,984,287 34,249,031 36,967,538 Transit 6,369,369 6,207,520 6,722,692 7,117,042 7,369,511 Total business-type activities expenses 58,961,541 64,368,542 60,843,143 56,212,017 62,488,110 Total primary government expenses 137,911,521$ 144,630,433$ 140,946,258$ 134,203,961$ 142,889,328$ Program Revenues
Governmental activities:
Charges for services:
General government 281,940$ 380,835$ 531,683$ 1,606,097$ 800,874$ Community services 788,384 911,308 882,739 1,109,053 924,269 Planning 1,915,769 2,191,796 2,202,730 2,738,543 4,256,995 Public ways and facilities 1,651,506 3,322,178 1,913,193 1,821,043 1,936,852 Public safety 837,559 854,386 866,031 771,002 626,340 Operating grants and contributions 8,946,791 11,617,046 12,519,780 9,643,713 9,398,940 Capital grants and contributions 4,959,909 11,108,870 28,819,982 13,530,222 3,694,804 Total governmental activities program revenues 19,381,858 30,386,419 47,736,138 31,219,673 21,639,074 Business-type activities:
Charges for services:
Sanitation 14,733,151 14,831,706 14,567,947 16,047,248 17,645,619 Waterworks district no. 8 35,285,062 37,042,247 33,215,428 30,877,802 36,529,274 Transit 427,115 415,476 401,369 430,804 426,246 Operating grants and contributions 2,376,527 2,573,874 2,526,193 2,602,009 2,639,740
Capital grants and contributions 1,172,661 4,016,047 11,698,157 5,458,314 1,921,558 Total business-type activities program revenues 53,994,516 58,879,350 62,409,094 55,416,177 59,162,437 Total primary governmental program revenues 73,376,374$ 89,265,769$ 110,145,232$ 86,635,850$ 80,801,511$ Net (Expense)/Revenue
Governmental activities (59,568,122) (49,875,472) (32,366,977) (46,772,271) (58,762,144) Business-type activities (4,967,025) (5,489,192) 1,565,951 (795,840) (3,325,673) Total primary government net expense (64,535,147)$ (55,364,664)$ (30,801,026)$ (47,568,111)$ (62,087,817)$ Continued
F iscal Year
210
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
152
2017-18 2018-19 2019-20 2020-21 2021-22
Expenses
Governmental activities:
18,661,104$ 17,720,443$ 19,516,513$ 16,936,266$ 13,890,174$ General government 7,469,961 7,234,363 6,523,639 6,568,970 6,204,005 Community services 6,459,507 6,002,066 3,840,624 6,739,637 5,908,937 Planning 19,580,854 19,651,601 23,659,432 19,921,676 17,753,088 Public ways and facilities 38,809,004 36,836,767 36,691,093 37,445,831 35,758,204 Public safety 1,230,782 1,440,347 1,466,885 1,356,832 1,285,332 Interest on long-term debt - - - - - Refunding bond issuance costs 92,211,212 88,885,587 91,698,185 88,969,212 80,799,740 Total governmental activities expenses Business-type activities:
18,222,816 17,375,318 17,324,800 18,985,485 15,323,866 Sanitation 42,900,423 40,552,517 42,895,822 48,250,272 44,127,857 Waterworks district no. 8 9,135,850 9,387,703 8,839,284 8,222,624 7,787,395 Transit 70,259,089 67,315,538 69,059,905 75,458,381 67,239,118 Total business-type activities expenses 162,470,301$ 156,201,125$ 160,758,090$ 164,427,593$ 148,038,858$ Total primary government expenses Program Revenues
Governmental activities:
Charges for services:
2,497,172$ 2,580,241$ 1,990,356$ 1,569,907$ $1,618,424 General government 1,015,074 1,086,783 840,227 293,799 836,307 Community services 4,430,830 4,742,278 2,926,064 5,443,247 5,011,362 Planning 2,719,170 2,927,559 2,335,563 3,687,751 3,940,427 Public ways and facilities 889,379 896,399 561,674 772,994 414,024 Public safety 9,348,042 11,987,812 12,622,399 22,170,916 19,932,730 Operating grants and contributions 2,117,322 1,619,868 5,383,614 505,218 546,707 Capital grants and contributions 23,016,989 25,840,940 26,659,897 34,443,832 32,299,981 Total governmental activities program revenues Business-type activities:
Charges for services:
19,241,722 20,591,589 21,857,056 23,846,199 26,077,946 Sanitation 43,808,330 40,967,174 43,144,049 51,005,332 48,945,484 Waterworks district no. 8 406,387 402,517 291,226 8,922 180,585 Transit 2,667,120 2,673,492 5,6 63,893 6,923,917 3,459,938 Operating grants and contributions 2,064,181 1,952,893 1,302,250 3,745,985 2,484,089 Capital grants and contributions 68,187,740 66,587,665 72,258,474 85,530,355 81,148,042 Total business-type activities program revenues 91,204,729$ 92,428,605$ 98,918,371$ 119,974,187$ 113,448,023$ Total primary governmental program revenues Net (Expense)/Revenue
(69,194,223) (63,044,647) (65,038,288) (54,525,380) (48,499,759) Governmental activities (2,071,349) (727,873) 3,198,569 10,071,974 13,908,924 Business-type activities (71,265,572)$ (63,772,520)$ (61,839,719)$ (44,453,406)$ (34,590,835)$ Total primary government net expense Continued
Fiscal Year
211
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
153
2012-13 2013-14 2014-15 2015-16 2016-17
G eneral Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes 24,823,215$ 27,438,436$ 28,340,047$ 29,835,623$ 31,120,875$ Sales tax 15,617,678 15,440,917 15,944,424 17,432,505 16,842,335 Franchise tax 4,809,762 4,849,204 4,757,607 5,025,802 4,740,682 Business tax 1,536,743 1,601,785 1,742,469 1,786,153 1,787,587 Other taxes 1,857,033 1,975,930 2,128,115 2,587,113 2,561,922 Contributions from other governments 457,220 3,074,897 373,512 - - Investment earnings 228,258 1,046,411 819,685 835,387 964,495 Miscellaneous - - - - - Transfers (1,844,949) (1,672,300) (2,869,014) (3,255,695) (3,572,095) Total governmental activities 47,484,960 53,755,280 51,236,845 54,182,896 54,695,802 Business-type activities:
Investment earnings 345,334 1,030,711 955,624 811,714 520,855 Miscellaneous 116,183 227,858 105,367 261,087 127,220 Transfers 1,844,949 1,672,300 2,869,014 3,255,695 3,572,095 Total business-type activities 2,306,466 2,930,869 3,930,005 4,328,496 4,220,170 Total primary government 49,791,426$ 56,686,149$ 55,166,850$ 58,511,392$ 58,915,972$ Change in Net Position
Governmental activities (12,083,162)$ 3,879,808$ 18,869,868$ 7,410,625$ (4,066,342)$ Business-type activities (2,660,559) (2,558,323) 5,495,956 3,532,656 894,497 Total primary government (14,743,721)$ 1,321,485$ 24,365,824$ 10,943,281$ (3,171,845)$ Continued
F iscal Year
212
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
154
2017-18 2018-19 2019-20 2020-21 2021-22
G eneral Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
32,303,044$ 34,011,044$ 39,014,593$ 37,990,791$ 39,173,353$ Property taxes 17,857,830 18,961,367 18,319,232 21,372,380 23,631,522 Sales tax 4,445,972 4,931,918 4,872,904 5,185,293 5,393,386 Franchise tax 1,967,065 2,106,344 2,112,049 2,241,423 2,343,050 Business tax 2,703,566 2,849,714 2,289,122 2,418,059 3,309,528 Other taxes 2,082,766 49,350 52,160 51,484 54,502 Contributions from other governments 1,290,234 2,496,426 2,973,992 699,791 (292,256) Investment earnings - - - - 295,538 Miscellaneous (3,512,087) (3,758,457) (1,353,309) 1,115,388 (3,449,116) Transfers 59,138,390 61,647,706 68,280,743 71,074,609 70,459,507 Total governmental activities Business-type activities:
821,540 2,041,917 2,418,455 (156,009) (2,166,729) Investment earnings 119,408 119,552 86,638 155,039 179,195 Miscellaneous 3,512,087 3,758,457 1,353,309 (1,115,388) 3,449,116 Transfers 4,453,035 5,919,926 3,858,402 (1,116,358) 1,461,582 Total business-type activities 63,591,425$ 67,567,632$ 72,139,145$ 69,958,251$ 71,921,089$ Total primary government Change in Net Position
(10,055,833)$ (1,396,941)$ 3,242,455$ 16,549,229$ 21,959,748$ Governmental activities 2,381,686 5,192,053 7,056,971 8,955,616 15,370,506 Business-type activities (7,674,147)$ 3,795,112$ 10,299,426$ 25,504,845$ 37,330,254$ Total primary government Concluded
F iscal Year
213
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
155
2012-13 2013-14 2014-15 2015-16 2016-17
Nonspendable, reported in:
Long-term receivables 22,246,241$ 18,509,076$ 16,988,891$ 15,769,102$ 14,039,905$ Committed, reported in:
Retiree benefits 630,447 846,723 863,564 535,057 17,609 Special programs 185,195 272,722 283,828 319,322 333,021 Economic recovery 6,839,684 6,084,838 6,084,838 6,084,838 6,084,838 Prudent reserve - 11,881,778 11,682,715 11,665,494 11,737,044 Assigned, reported in:
Capital 4,198,811 6,029,111 7,968,732 9,374,012 9,647,610 Unassigned 11,406,896 - - - - Total general fund 45,507,274$ 43,624,248$ 43,872,568$ 43,747,825$ 41,860,027$ All other government funds
Restricted, reported in:
Housing programs 6,045,598$ 6,389,178$ 8,376,955$ 10,483,070$ 11,334,690$ Public improvements 16,794,452 15,748,357 12,760,231 11,949,371 10,966,923 Streets 869,822 2,314,747 3,075,194 3,872,702 3,846,189 Landscape 952,063 848,183 1,233,583 1,404,310 1,104,197 Debt service 2,637,044 1,656,157 7,963 - 6,424,000 Special programs 792,788 1,037,576 1,603,522 2,199,119 2,583,864 Law enforcement 892,103 774,724 2,090,806 2,852,712 2,620,596 Committed, reported in:
Streets 1,996,149 2,531,276 2,460,203 2,789,142 2,202,918 Equipment 3,858,038 4,421,827 5,409,661 5,306,436 5,230,390 Assigned, reported in:
Capital 129,089 143,103 130,083 59,446 - Unassigned (42,047) (108,051) (164,935) (55,000) (4,618,291) Total all other
governmental funds 34,925,099$ 35,757,077$ 36,983,266$ 40,861,308$ 41,695,476$ Continued
Fiscal Year
214
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
156
2017-18 2018-19 2019-20 2020- 21 2021-22
Nonspendable, reported in:
14,035,421$ 10,017,212$ 8,124,400$ 5,971,366$ 5,920,262$ Long-term receivables Committed, reported in:
30,008 278,911 372,760 509,729 Retiree benefits 386,105 421,164 522,806 590,552 764,872 Special programs 5,084,838 5,084,838 11,084,838 11,084,838 11,084,838 Economic recovery 12,315,232 12,670,975 13,049,720 14,019,727 14,139,864 Prudent reserve Assigned, reported in:
10,672,125 17,873,825 19,355,215 38,297,703 44,281,431 Capital (472,818) - - - - Unassigned 42,020,903$ 46,098,022$ 52,415,890$ 70,336,946$ 76,700,996$ Total general fund All other government funds
Restricted, reported in:
12,044,976$ 13,008,731$ 9,806,362$ 11,661,964$ 12,013,585$ Housing programs 10,456,563 8,949,351 8,757,063 8,077,145 7,849,488 Public improvements 4,815,203 5,991,314 8,023,324 14,599,926 16,008,040 Streets 844,656 693,379 162,870 - - Landscape 11,989,483 4,241,900 1,456,124 1,324,129 1,324,129 Debt service 3,074,465 3,972,856 4,464,783 4,509,530 4,762,883 Special programs 2,445,054 2,853,886 1,275,705 1,435,178 1,444,284 Law enforcement Committed, reported in:
4,162,511 2,565,480 2,739,696 3,137,771 15,610,695 Streets 5,267,713 5,101,910 5,475,553 7,709,947 6,073,233 Equipment Assigned, reported in:
- - - - - Capital (693,295) (209,150) 1,409,206 (509,396) (1,168,102) Unassigned Total all other
54,407,329$ 47,169, 657$ 43,570,686$ 51,946,194$ 63,918,235$ governmental funds Concluded
Fiscal Year
215
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
157
2012-13 2013-14 2014-15 2015-16 2016-17
Revenues
Taxes 48,405,537$ 51,630,610$ 54,024,712$ 56,667,196$ 57,053,401$ Licenses and permits 1,526,942 1,641,301 1,965,120 2,561,293 2,158,210 Fines and forfeitures 562,301 567,379 613,301 597,889 403,841 Use of money and property 1,308,808 1,371,779 2,901,802 2,901,207 1,276,619 From other governments 7,485,213 9,875,682 9,489,007 7,715,746 7,094,051 Grants 6,209,316 3,795,247 4,650,237 3,858,045 4,417,808 Service charges 1,861,540 3,247,246 2,111,740 3,300,023 3,304,023 Other revenues 2,320,567 2,411,592 1,865,966 1,732,533 2,783,106 Contributions from other governments 464,854 3,073,464 376,588 - - Total revenues 70,145,078 77,614,300 77,998,473 79,333,932 78,491,059 Expenditures
Current:
General government 6,760,196 8,977,728 6,764,233 5,784,087 6,457,231 Community services 4,366,229 5,759,582 6,245,135 6,581,050 6,763,706 Planning 7,395,246 8,954,977 6,440,023 6,246,916 6,387,901 Public ways and facilities 14,558,261 14,683,649 14,791,346 15,988,868 16,076,033 Public safety 28,918,401 29,922,421 31,605,027 32,811,987 33,107,205 Capital outlay 9,466,790 4,346,397 4,987,471 3,362,875 16,914,455 Debt service:
Principal 1,360,000 3,220,000 270,000 - - Interest 1,242,425 1,129,784 742,212 806,625 806,625 Refunding escrow - - 1,396,316 - - Bond issuance costs - - 194,069 - - Other 7,933 6,710 1,150 1,150 103,816 Total expenditures 74,075,481 77,001,248 73,436,982 71,583,558 86,616,972 Excess (deficiency) of revenues
over expenditures (3,930,403) 613,052 4,561,491 7,750,374 (8,125,913) Other Financing Sources (Uses)
Transfers in 27,577,674 16,997,812 12,214,657 8,301,888 18,175,804 Transfers out (29,414,623) (18,661,912) (15,503, 671) (11,604,733) (21,320,599)
Bonds issued - - 20,767,747 - 9,967,078 Payment to escrow agent - - (20,565,715) - - Contributions from other governments - - - 250,000 250,000 Contributions to other governments - - - (313,992) - Total other financing sources (uses) (1,836,949) (1,664,100) (3,086,982) (3,366,837) 7,072,283 Extraordinary gain (7,622,494) - - - - Net change in fund balances (13,389,846)$ (1,051,048)$ 1,474,509$ 4,383,537$ (1,053,630)$ Debt service as a percentage of
noncapital expenditures 3.86% 6.24% 1.46% 1.20% 1.16%
Continued
Fiscal Year
216
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
158
2017-18 2018-19 2019-20 2020-21 2021-22
Revenues
59,277,477$ 62,860,387$ 66,607,900$ 69,207,946$ $73,850,839 Taxes 2,523,744 2,618,558 2,703,432 3,829,208 5,116,843 Licenses and permits 568,456 562,503 329,429 236,362 277,228 Fines and forfeitures 1,796,416 3,049,771 3,355,999 1,881,988 1,273,679 Use of money and property 8,092,405 10,014,798 9,601,415 9,692,508 10,253,814 From other governments 2,838,349 2,933,635 7,640,989 12,213,457 9,369,607 Grants 3,970,562 4,185,273 2,773,884 4,449,807 3,440,733 Service charges 4,629,045 4,982,086 3,008,689 3,365,342 3,060,740 Other revenues - - - - - Contributions from other governments 83,696,454 91,207,011 96,021,737 104,876,618 106,643,483 Total revenues Expenditures
Current:
8,530,647 6,309,774 9,906,448 10,139,013 10,433,996 General government 6,927,525 6,673,466 5,891,145 5,946,712 6,148,462 Community services 6,447,721 5,533,197 5,878,601 6,003,043 6,766,780 Planning 16,467,229 15,610,695 20,013,765 16,252,868 16,775,133 Public ways and facilities 33,565,393 34,156,673 36,325,983 35,513,526 36,293,174 Public safety 7,153,833 17,291,140 9,822,627 2,581,289 5,341,641 Capital outlay Debt service:
1,002,827 1,416,140 1,550,208 1,845,020 1,920,799 Principal 1,289,250 1,326,672 1,762,714 1,465,341 1,385,192 Interest - - - - - Refunding escrow - - - - - Bond issuance costs 80,624 2,900 6,400 6,314 4,801 Other 81,465,049 88,320,657 91,157,891 79,753,126 85,069,978 Total expenditures Excess (deficiency) of revenues
2,231,405 2,886,354 4,863,846 25,123,492 21,573,505 over expenditures Other Financing Sources (Uses)
13,912,428 20,421,754 15,259,176 10,912,021 23,040,297 Transfers in (17,418,315) (26,518,011) (17,456,285) (9,790, 433) (26,332,213) Transfers out 12,064,445 - - - - Bonds issued - - - - - Payment to escrow agent 2,082,766 49,350 52,160 51,484 54,502 Contributions from other governments - - - - - Contributions to other governments 10,641,324 (6,046,907) (2,144,949) 1,173,072 (3,237,414) Total other financing sources (uses) - - - - - Extraordinary gain 12,872,729$ (3,160,553)$ 2,718,897$ 26,296,564$ 18,336,091$ Net change in fund balances Debt service as a percentage of
3.10% 3.85% 4.48% 4.58% 4.19% noncapital expenditures
Concluded
Fiscal Year
217
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (see notes)
SOURCE:
California Municipal Statistics, Inc.
159
Gross Assessed Valuation 1
Total
Fiscal Residential Comme rcial Industrial Other Secured Year Property Property Property Property Property
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 2021-22 18,017,610,780 1,518,568,882 1,015,735,549 377,861,268 20,929,776,479 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 taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and this is the data used for taxation purposes. It is subject to the limitations described above.
1. For comparison purposes, gross assessed valuations includes homeowners' exemption. Although this 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. 218
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (see notes)
SOURCE:
California Municipal Statistics, Inc.
160
Gross Assessed Valuation 1
Total
Percent Direct Fiscal
Utility 2 Unsecured Total Change Tax Rate Year
$ 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% 2017-18
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
- 396,688,641 21,326,465,120 3.9% 1.00% 2021-22 Concluded
219
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.
161
2012-13 2013-14 2014-15 2015-16 2016-17
Basic Tax Levy per Article 13A
of California 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 Simi Valley Unified School District 0.061500 0.059800 0.061800 0.054100 0.052800 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 Ventura Community College District 0.019100 0.016700 0.017600 0.013000 0.015500 Total direct and overlapping 1.084100 1.080000 1.082900 1.070600 1.071800 Continued
NOTES:
Overlapping rates are those of local and county governments that applyto property owners within the City of Simi Valley. Not all overlapping rates apply to all Simi Valley property owners. Rates apply only to city property owners whose property is located within that district's geographic boundaries.
The tax rate information provided is for Tax Rate Area 09006, the largest tax rate area in the City. 220
CITY OF SIMI VALLEY
DIRECT AND OVERLAPPING GOVERNMENTS
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
SOURCE:
California Municipal Statistics, Inc.
162
2017-18 2018-19 2019-20 2020- 21 2021-22
Basic Tax Levy per Article 13A
1.000000 1.000000 1.000000 1.000000 1.000000 of California State Constitution - - - - - City
1.000000 1.000000 1.000000 1.000000 1.000000 Total direct
0.079100 0.077100 0.059400 0.086300 0.092200 Simi Valley Unified School District
0.003500 0.003500 0.003500 0.003500 0.003500 Metropolitan Water District
0.015100 0.015200 0.014300 0.015000 0.014800 Ventura Community College District
1.097700 1.095800 1.077200 1.104800 1.110500 Total direct and overlapping Concluded
221
CITY OF SIMI VALLEY
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
SOURCE:
HdL Coren Cone
163
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
DP 241 Country Club, LP 111,619,632$ 1 0.61% NF Creekside Apartments, LLC 79,313,156 2 0.43% IMT Capital V Wood Ranch, LLC 76,546,708 3 0.42% SE-Shadow Ridge, LLC 49,193,817 4 0.27%
Deleware Hidden Valley Grand Apartment 48,173,908 5 0.26% DP 849 Country Club 40,226,342 6 0.22%
RASS Nutritionals 35,790,984 7 0.19%
Essex Meadowood 35,298,985 8 0.19%
Lennar Homes California 35,000,000 9 0.19%
Miracle Mile Properties 34,795,253 10 0.19%
Bank of America 120,026,139$ 1 0.78% Tishman Speyer Archstone 105,550,072 2 0.69% Fountains Apartments, Ltd 77,856,859 3 0.51% NF Marina, LP 69,934,400 4 0.46% Fairfield Rancho Corrales 45,365,100 5 0.30% Mountaingate Associates, LLC 45,308,361 6 0.29% Stone Creek Investors 42,587,239 7 0.28% ESG Properties, LLC 42,038,183 8 0.27% CLF Simi Valley Business TR 37,000,000 9 0.24% Simi Entertainment Plaza, LP 36,862,437 10 0.24% Total Taxable Assessed Value
Ten Largest Taxpayers 545,958,785$ 2.97% 622,528,790$ 4.06%
2022 2013
222
CITY OF SIMI VALLEY
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
SOURCE:
Ventura County Controller-Auditor
164
Taxes Levied Collections in
Fiscal for the Percent Subsequent Percent
Year Fiscal Year 1 Amount of Levy Years Amount of Levy
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% 173,714 29,566,412 91.66% 2014-15 34,131,863 33,369,651 97.77% 172,385 33,542,036 98.27% 2015-16 37,179,612 34,029,242 91.53% 203,600 34,232,841 92.07% 2016-17 39,105,618 35,443,930 90.64% 245,232 35,689,162 91.26% 2017-18 42,348,149 37,295,853 88.07% 257,823 37,553,676 88.68% 2018-19 42,471,808 38,746,266 91.23% 252,098 38,998,364 91.82% 2019-20 44,950,945 44,163,945 98.25% 251,736 44,415,681 98.81% 2020-21 46,564,800 42,848,588 92.02% 235,252 43,083,839 92.52% 2021-22 48,369,434 44,411,063 91.82% N/A 44,411,063 91.82% NOTES:
Fiscal Year of the Levy Total Collections to Date
Collections within the
Collections presented do not include penalty charges or interest collected.
The City of Simi Valley has not levied a general purpose property tax subsequent to the passage of Proposition 13.
1. Only the secured property tax data for the City of Simi Valley and its Redevelopment Agency is presented in this table.
The Ventura County Tax Collector is responsible for all property tax roll levies and collections within the City of Simi Valley.
223
City of Simi Valley
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
SOURCE:
City of Simi Valley
US Census Bureau
165
Governmental Business-Type
Activities Activities
Lease Certificates Lease Total Percent of Debt
Fiscal Revenue of Revenue Primary Personal Per
Year Bonds Participation Bonds Government Income 3 Capita 3 2013 2,610,000$ 22,587,840$ - 25,197,840$ 0.55% 198.68 2014 - 1 21,964,953 - 21,964,953 0.45% 173.24 2015 20,414,513 - 3 - 20,414,513 0.45% 160.96 2016 20,315,876 2 - - 20,315,876 0.43% 159.88 2017 30,184,317 2 - - 30,184,317 0.59% 236.93 2018 41,147,298 2 - - 41,147,298 0.83% 321.83 2019 39,632,520 2 - - 39,632,520 0.78% 308.00 2020 37,983,674 2 - - 37,983,674 0.64% 293.85 2021 36,040,016 2 - - 36,040,016 0.60% 277.26 2022 34,020,579 2 - 33,236,283 67,256,862 1.12% 529.82 NOTES:
3. 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. On August12, 2013, the Councilapproved the early repayment of 1995Simi Valley Public Financing Authority Lease Revenue Bonds and a call for full redemption of the bonds occurred on October 1, 2013.
2. 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 outstandingas of June 30, 2015. InSeptember 2016, the City issued Lease RevenueBonds, Series 2016 New Clean Renewable Energy Bonds (NCREBS), for $9,226,619, and a Tax-Exempt Lease, Series 2016, for $740,459, both maturing on 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 $5,655,845, maturing in March 2034.
224
CITY OF SIMI VALLEY
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2022 (see notes)
SOURCE:
City of Simi Valley
California Municipal Statistics, Inc.
166
Estimated Share
Outstanding Percentage of Overlapping
Debt 6/30/22 Applicable 1 Debt 6/30/22
Overlapping and Assessment Debt Repaid with Property Taxes Metropolitan Water District 20,175,000$ 0.628 % 126,699$ Ventura County Community College District 257,457,000 14.013 36,077,449 Simi Valley Unified School District 255,235,588 96.942 247,430,484 City of Simi Valley Community Facilities Dist No.2004-1 5,490,000 100.000 5,490,000 City of Simi Valley 1915 Act Bonds 675,000 100.000 675,000 Overlapping Other Debt
Ventura County General Fund Obligations 304,565,000 14.008 42,663,465 Ventura County Superintendent of Schools Certificates 7,850,000 14.008 1,099,628 Simi Valley Unified School District Certificates 4,803,237 96.942 4,656,354 Total overlapping and assessment debt 338,219,079
City Direct Debt
City of Simi Valley 2014A Lease Revenue Refunding Bond 16,044,050 100.000 16,044,050 City of Simi Valley 2016 New Clean Renewable Energy Bond 7,511,274 100.000 7,511,274 City of Simi Valley 2016 Tax Exempt Energy Bond 589,603 100.000 589,603 City of Simi Valley 2017 Tax Exempt Bond 4,841,363 100.000 4,841,363 City of Simi Valley 2018 Tax Equipment Lease 5,034,290 100.000 5,034,290 City of Simi Valley 2019 Tax Equipment Lease 33,816,566 100.000 33,236,283 Total direct debt 67,256,862
Total direct and overlapping debt 405,475,941$
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. 225
City of Simi Valley
Legal Debt Margin Information
Last Ten Fiscal Years
SOURCE:
California Municipal Statistics, Inc.
167
2013 2014 2015 2016 2017
Debt l
imit 545,958,007$ 564,595,406$ 596,574,778$ 622,348,000$ 649,611,401$ Total net debt
applicable to limit - - - - - Legal debt margin 545,958,007$ 564,595,406$ 596,574,778$ 622,348,000$ 649,611,401$ 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 valuations were 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%).
Fiscal Year
226
City of Simi Valley
Legal Debt Margin Information
Last Ten Fiscal Years
SOURCE:
California Municipal Statistics, Inc.
168
2018 2019 2020 2021 2022
678,892,462$
708,668,102$ 799,742,442$ 769,737,484$ 799,742,442$ Debt limit Total net debt
- - - - - applicable to limit 678,892,462$ 708,668,102$ 799,742,442$ 769,737,484$ 799,742,442$ 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 2022
Assessed value 21,326,465,120$
Debt limit (3.75% of assessed value) 1 799,742,442
Less:
General obligation bonds -
Legal debt margin 799,742,442$
Fiscal Year
227
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
University of California, Santa Barbara
US Census Bureau
Ventura County Statistical Abstract
169
Personal Per Capita Public
Fiscal Income Personal Median School Unemployment
Year Population (in thousands) Income 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 5,988,149 46,068 43.0 15,788 6.1% 2022 126,944 6,002,551 47,285 41.2 15,546 3.0% 228
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
170
Percentage of
Employed
Employer Employees Rank Labor Force Employees Rank Labor Force Simi Valley Unified School District 1,854 1 2.90% 2,177 1 3.23% S
imi Valley Hospital - Adventist Health 781 2 1.22% 832 2 1.23% Aerovironment, Inc. 701 3 1.10% 465 4 0.69% Meggitt Safety Systems, Inc. 576 4 0.90% 330 7 0.49% Milgard Windows & Doors 519 5 0.81% 287 8 0.43% City of Simi Valley 484 6 0.76% 529 3 0.78% Rancho Simi Parks & Recreation District 348 7 0.54% 408 5 0.61% Walmart 174 8 0.27% 224 10 0.33%
American Vision Windows 174 9 0.27%
Polytainer Inc 160 10 0.25%
Vons Grocery Stores 354 6 0.53%
Albertson's 244 9 0.36%
Total 5,771 9.04% 5,850 8.68%
NOTE:
Of eighty-nine employers surveyed by the City of Simi Valley, thirty-eight employers responded (43%). 2022 2013
Employed
Percentage of
229
CITY OF SIMI VALLEY
CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
171
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
General government 57 57 61 53 58 56 54 60 60 59
Community services 28 29 31 27 24 27 27 20 20 19
Planning and Community
Services 42 40 39 36 36 33 30 32 31 37
Public ways and facilities 89 88 90 87 87 87 83 80 78 83 Public safety
Sworn police personnel 120 119 123 121 121 115 118 123 112 114 Civilians 52 52 52 49 50 53 47 44 45 54
Sanitation 56 51 54 47 54 53 52 53 49 44
Waterworks district no. 8 44 45 43 45 41 40 41 35 32 38 Transit 41 38 39 38 42 40 40 38 37 36
Total 529 519 532 503 513 504 492 485 464 484
NOTE:
1. Totals do not include temporary employees or part-time crossing guards.
Full & Part Time Employees as of June 301
230
CITY OF SIMI VALLEY
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
Golden State Water Co.
172
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
General government
Business tax applications
and renewals 9,764 9,709 9,643 9,709 9,437 9,028 9,403 7,675 7,223 8,092 Business tax receipts issued 9,060 8,936 8,563 9,480 8,366 7,922 7,315 7,396 7,779 8,912 Business tax revenues ($) 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 2,343,050 Community services
Cultural arts center events 344 362 354 378 392 369 370 357 - 176 Cultural arts center attendance 39,388 38,643 36,403 39,473 36,248 38,913 33,564 26,675 - 9,151 Senior center attendance1 192,107 182,368 172,233 160,805 153,803 166,441 172,079 145,505 40,975 62,745 Library card holders2 - 20,498 28,298 33,830 39,135 45,159 46,406 38,423 34,382 33,157 Library total collection3 - 139,104 146,623 158,596 170,848 164,748 161,450 136,071 140,972 127,248 Library total circulation3 - 344,358 330,838 333,068 285,089 299,182 317,085 333,683 247,680 362,358 Planning
Building permits 1,590 2,382 2,054 2,200 2,500 2,600 2,750 2,500 2,950 1,724 Plumbing, mechanical,
and electrical permits 2,592 3,473 3,213 2,950 3,400 3,640 3,750 3,200 3,450 3,918 Permit valuation (thousands)5
47,316 55,300 41,766 66,800 76,800 71,300 76,740 63,500 65,750 216,662 Public Safety
Arrests 3,472 2,961 3,459 3,377 2,939 3,134 2,964 2,381 1,762 1,473 Enforcement citations 7,688 8,518 8,308 8,300 6,936 8,988 8,230 4,703 2,454 3,340 Public ways and facilities
Street resurfacing (miles) 6.66 5.67 3.93 3.73 6.38 10.12 23.77 10.12 1.4 6.12 Sanitation
Wastewater customers 36,704 36,796 36,761 36,769 37,079 36,949 35,773 37,395 36,874 37,571 Average dry weather flow (million gallons per day) 8.60 8.50 8.10 7.80 7.70 7.92 7.78 7.78 7.70 7.60 Waterworks district no. 8
Customers4 25,156 25,093 25,585 25,664 25,558 25,433 25,622 25,251 25,548 25,666 Water delivered (million gallons) 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 6,404.0 Transit
Fixed-route revenue miles 400,425 426,057 426,057 404,857 380,354 378,284 376,506 387,056 409,044 407,112 Fixed-route passengers 434,512 347,929 378,452 333,619 364,810 251,917 266,718 181,098 121,642 131,392 Fixed-route revenue hours 24,882 25,551 25,551 25,346 26,904 27,340 26,727 25,282 26,788 29,816 Paratransit revenue miles 184,074 183,407 172,444 158,604 160,043 162,551 159,508 110,289 71,396 84,476 Paratransit passengers 46,290 50,308 45,364 43,485 45,009 43,406 50,134 29,133 22,394 33,238 Paratransit revenue hours 18,966 17,984 17,009 17,356 17,832 17,709 17,226 11,730 5,790 6,620 NOTE:
1. Due to State Budget cuts effective 2014, Senior programs were reduced, resulting in lower attendance.
2. Effective July 1, 2013, 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 2022.
5. Increase in Permit Valuation in 2022 is due to a change in the calculation methodology resulting from the ERP system upgrade. 231
CITY OF SIMI VALLEY
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
Southern California Edison
173
Fiscal Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
Public safety
Police stations 1 1 1 1 1 1 1 1 1 1
Fleet size 94 96 97 99 101 103 103 104 98 98
Public ways and facilities
Streets (miles) 324.91 326. 91 332.69 336.41 337.57 337.57 337.57 337.57 337.57 337.73 Streetlights 7,942 8,241 8,225 8,223 8,243 8,268 8,479 8,382 8,382 8,382 Traffic signals 121 121 121 121 121 121 121 121 121 121 Sanitation
Sewerlines (miles) 374 374 374 374 374 374 374 380 380 400 Treatment capacity
(million 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) 1 375 380 380 380 380 337 345 345 345 345 Fire hydrants 2,844 2,844 2,844 2,844 2,844 2,875 2,850 2,874 2,853 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 8 8 8 8 8 8 8 5
Buses - 35 foot 0 0 3 3 3 3 3 3 3 6
Parat
ransit Vehicles 11 11 11 11 12 12 12 12 12 12
NOTES:
No capital asset indicators are available for the general government, community services, or planning function.
1. Reduction in water main miles in fiscal year 2017-18 reflects updates in GIS accuracy. 232
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