CITY OF SIMI VALLEY
MEMORANDUM
April 15, 2024
TO: City Council
Board of Directors, Ventura County Waterworks District No. 8 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 2022-23
STAFF RECOMMENDATION
It is recommended that the City Council/Boards of Directors/Board of Trustees accept the Annual Comprehensive Financial Report for Fiscal Year 2022-23 (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 Financial Report (ACFR) for Fiscal Year 2022-23 (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, 2023 , and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2022-23 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 March 28, 2024, for advance review, and it was also placed on the City’s website on December 21, 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 2022-23 ACFR includes the following sections:
• Introductory Section
• Financial Section
• Statistical Section
AGENDA ITEM NO.
Consent (1)
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 2022-23 has been submitted to the GFOA, and staff is confident of receiving the Certificate once again, for the 44th 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, and an organization chart.
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 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 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 present major funds individually, and non- major funds in aggregate, including budget-to-actual comparisons for major funds that have legally adopted annual budgets, Proprietary Fund Statements, and a Statement of Fiduciary Net Position.
- Reconciliations of the individual fund statements to the government -wide statements.
3 • Notes to the Basic Financial Statements
• Required Supplementary Information includes financial data on the City’s retirement plans.
• Supplementary Information provides individual presentation of non -major funds, budget-to-actual comparisons for funds that have legally adopted annual budgets, and Combining Statements of Internal Service and 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 fi rm, 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 2022-23 represents the second 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 AC FR 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. Accept the draft Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2022-23 (Exhibit 1) as submitted, and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c);
2. Accept the draft ACFR and request additional clarification from the auditor in certain areas of the report;
3. Provide staff with further direction.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I mo ve to accept the Fiscal Year 202 2-23 Annual Comprehensive Financial Report (ACFR) and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c).
SUMMARY
The draft Annual Comprehensive Financial Report ( ACFR) for Fiscal Year 2022 -23 (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 3, and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2022-23 have received an “unmodified” opinion from an independent auditor, indicating no areas of material misstatement.
_____________________________________
Carolyn Johnson, Deputy City Treasurer
Administrative Services Director
Prepared by: Marvin Lopez, Deputy Administrative Services Director, Fiscal Services
INDEX Page
Exhibit 1 - Draft Annual Comprehensive Financial Report (ACFR) for FY 2022-23……………………………………………………………………..5
CITY OF SIMI V ALLEY
ANNUAL COMPREHENSIVE
FINANCIAL REPORT 2022-23
FISCAL YEAR ENDED JUNE 30, 2023
5 CITY OF SIMI V ALLEY
ANNUAL COMPREHENSIVE
FINANCIAL REPORT 2022-23
FISCAL YEAR ENDED JUNE 30, 2023
Fred D. Thomas, Mayor I Mike Judge, Mayor Pro Tem I Dee Dee Cavanaugh, Council Member I Elaine P. Litster, Council Member I Rocky Rhodes, Council Member 6 7
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
INTRODUCTORY SECTION PAGE
Transmittal Letter ............................................................................................ i Officials of the City of Simi Valley .................................................................... ix Organization of the City of Simi Valley ............................................................. x
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 ........................................................................ ..... 24 Statement of Activities .............................................................................. ...... 25
Fund Financial Statements
Balance Sheet – Governmental Funds .................................................... ...... 27 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position – Governmental Activities ............................ 29 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ............................................................................. ..... 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Gove rnmental Funds to the Statement of Activities ........................................................................................... ..... 32 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Gener al Fund ....................................................... ..... 33 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – SHA to Community Development Agency Housing Administration ............................................................................ ..... 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 Fiduciary Net Position – Fiduciary Funds ............................ ..... 38 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ......... ..... 39
8 Table of Contents (continued)
PAGE
Notes to the Basic Financial Statements
Notes ......................................................................................................... 40
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................................................. 105 Schedule of Plan Contributions – Miscellaneous Plan ................................ 107 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan .............................................................................................. 109 Schedule of Plan Contributions – Safety Plan ............................................ 111 Schedule of Changes in Net OPEB Liability and Related Ratios ............... 113 Schedule of OPEB Plan Contributions ........................................................ 115
Supplementary Information
Nonmajor Governmental Funds
Description of Nonmajor Governmental Funds ....................................... 117 Combining Balance Sheet ....................................................................... 120 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................................................................................... 125
Schedules – Budget and Actual – Individual Funds
CalHOME Grant Fund ............................................................................. 130 HOME Grant Fund .................................................................................. 131 Planning Grant Fund ............................................................................... 132 Public, Education and Government Fees Fund ....................................... 133 Gasoline Tax Fund .................................................................................. 134 Road Maintenance and Rehabilitation Account Fund ............................. 135 Transportation Funds .............................................................................. 136 Library Services Fund .............................................................................. 137 Development Related Fees Funds .......................................................... 138 Police Grants Fund ................................................................................. 139 Community Development Block Grant Fund ........................................... 140 Landscape Maintenance District No. 1 .................................................... 141
Internal Service and Fiduciary Funds
Combining Statement of Net Position – Internal Service Funds ............... 142 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ......................................................... 143 Combining Statement of Cash Flows – Internal Service Funds ............... 144 Combining Statement of Fiduciary Net Position – Private-Purpose Trust Funds .................................................................................................... 145 Combining Schedule of Changes in Fiduciary Net Position – Private- Purpose Trust Fund .............................................................................. 147 Combining Schedule of Fiduciary Net Position – Custodial Funds .......... 149
9 Table of Contents (continued)
PAGE
Internal Service and Fiduciary Funds (Continued)
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ......................................................................................... 150 Combining Statement of Fiduciary Net Position – Pension And Other Postemployment Benefits (OPEB) Trust Funds ...................... 151 Combining Statement of Changes in Fiduciary Net Position – Pension And Other Postemployment Benefits (OPEB) Trust Funds ......... 152
STATISTICAL SECTION (UNAUDITED)
Description of Statistical Contents ................................................................. 153
Financial Trends
Net Position by Component – Last Ten Fiscal Years ............................... 154 Changes in Net Position – Last Ten Fiscal Years ..................................... 156 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............. 160 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................................................... 162
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fisca l Years ............................................................................ 164 Direct and Overlapping Governments – Property Tax Rates – Last Ten Fisca l Years .......................................................................... 166 Principal Property Taxpayers – Current Year and Nine Years Ago .......... 168 Property Tax Levies and Collections - Last Ten Fiscal Years ................... 169
Debt Capacity
Ratios of Outstanding Debt by Ty pe – Last Ten Fiscal Years .................. 170 Computation of Direct and Overlapping Debt ............................................ 171 Legal Debt Margin – Last Ten Fiscal Years .............................................. 172
Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ............... 174 Principal Employers – Current and Nine Years Ago ................................. 175
Operating Information
City Government Employees by Functi on – Last Ten Fiscal Years .......... 176 Operating Indicators by Functi on – Last Ten Fiscal Years ....................... 177 Capital Assets Statistics by Function – Last Ten Fiscal Years …………… 178 10 11
INTRODUCTORY SECTION
INTRODUCTORY SECTION
12 13
Fred D. Thomas, Mayor Rocky Rhodes, Mayor Pro Tem Mike Judge, Council Member Dee Dee Cavanaugh, Council Member Elaine P . Litster, Council Member Home of The Ronald Reagan Presidential Library
December , 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, 2023.
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 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, 2023, 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, 2023, 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.
2929 Tapo Canyon Road, Simi Valley, CA 93063-2199 805.583.6700 www.simivalley.org i
14 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 stat ements, 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 125,740 and is the second largest of Ventura County’s ten cities. It is locat ed 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 directives and policies, and manages the administration and operational functions through the various department heads. The City Manager is respon sible for the appointm ent of department heads and the City Clerk and serves as the City Treasurer.
Four operating departments report to t he City Manager: Police, Public Works, Administrative Services, and Environmental Serv ices. The Simi Valley Public Library, Cultural Arts Center and Senior Center all operate under the umbrella of City Administration. The City has its own sani tation 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, as an agency of the City and, therefore, has been included as an integral part of the City’s financial statements. T he City also provides transportation services via the Simi Valley ii
15 Transit system. The County of Ventura provides fire, par amedic, 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 draf t proposed budgets, requests for budge t increases (policy items), requests for replacement of equipment items (capital a sset requests), and possible budget reductions (reduction proposal) to the D eputy Administrative Services Director (Budget and Purchasing) 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 Capita l 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 repor t for each individual go vernmental fund for which an appropriated annual budget has been adopted. For the General Fund and major special revenue fund, this comp arison 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.
iii
16 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 2022-23 locally generated revenues from property, sales, franchise, business, and other taxes increased by $3.3 million overall, or 4.5%, over the prior fiscal year, primarily driv en by an increase in property ($3.0 million) and franchise ($0.7 million) taxes. Sales tax, however, showed a slight decrease of $0.2 million, or
0.1%.
The local unemployment rate as of June 30 , 2023 was 4.2%, which is a 1.2% increase from the 3.0% unemployment ra te reported in the previous fiscal year. The year over year increase relates to the on-going st abilization of our economy post pandemic.
According to the California Legislative Analyst ’s Office, economic data for this period include several signs that the state’s economy may be beginning to slow, a shift from the quickly recovering and growing st ate that we have experienced since the height of the pandemic. The City’s increased unemployment and slowing sales tax revenues this fiscal year are consistent with these state-wide observations.
The City’s commercial and industrial base continues to be diverse. Major industries with headquarters or divisions locate d 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 2022-23, with an estimated 537 new housing units built compared to the previous period of 209 new units built. Contributing factors toward the rise in housing product ion include the City gradually emerging from t he 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 dev elopment 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 housi ng crisis mandates the City, and all local municipalities, to zone and stimulate housi ng 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 Churchill Apartments with 91 units, 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 retail 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. iv
17 Furthermore, growing demand for accessory dwelling units (ADU) throughout the City further contributes to the variety the City’s housing stock, with an estimated 84 ADUs built compared to the previous period of 47 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 $3.0 million, or 7.7%, as compared to the prior year.
The City continues to implement projects funded by the State SB2 and Local Early Action Planning (LEAP) grant program s. The State’s SB2 grant provides funding for the Permanent Local Housing Allocation (PLHA), wh ich is an annual allocation intended to provide financial assistance to local governm ents to help implement plans to facilitate housing affordability, particularly for low- to moderate-income households. In October of 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 program s allow 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, which is scheduled to complete by early 2024.
Furthermore, the City’s General Plan Housing Element was certified by the California State Department of Housing and Community Development (HCD) on May 18, 2023. 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.
As discussed in the local economy section above, the City’s economy is softening as expected. Prior year sales tax revenue incr eases were not assumed to be a long-term trend. 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 and businesses has ended, and the unemployment rate has increased putting strain on consumer spending. 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 City updates the Five-Year General Fund Financial Projection formally each year and informally throughout the year in an effort to identify and address 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 2023-24 budget continued the City’s trend of adopting a structurally balanced budget.
Community reinvestment is a top priority of the City Council, and that is reflected in the City’s budget. In fiscal year 2021-22, the City was able to invest an additional $10 million into major streets rehabilitation. In fiscal year 2022-23, an additional $1.2 million was v
18 allocated to major streets from fiscal year 2020-21 budget surplus funds on top of the $7.9 million that was already budgeted during the normal budget process. Pavement rehabilitation projects already completed on the major streets are Cochran Street, from Sequoia Ave. to Tapo Canyon; Los Angeles Avenue, from Yosemite Avenue to Kuehner Drive; Madera Road, from Stra thern Place to Royal Avenue; Stearns Street, from Los Angeles Avenue to Cochran Street, and Sycamore Drive from Royal Avenue to Fitzgerald Road. In addition, 75 residential streets were rehabilitated through the City’s minor street program, and over 134 curb ramps were up graded to meet American s with Disabilities Act requirements. The City will continue to monitor and actively maintain our roads.
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 $80.0 million, a very healthy and stable position.
The total bonded debt of the City is currently $63.6 million, decreasing from $67.3 million in the prior fiscal year. The decrease is attributed to $3.7 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 $13.7 million, with debt servic e requirements of approximat ely $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 net increase in fund balance of $3.3 mill ion. 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.
Additionally, in April 2022, the City Council approved the Year End General Fund Balance policy, which reallocates, based on certain criteria, surplus dollars into a retiree obligation fund, infrastructure fund, and contingency fund. City Council can then appropriate these funds for specific purposes within the scope of the policy.
Major Initiatives
As the municipal and economic landscapes continue to evolve, the City is committed to providing high quality service to its citizens. So me of the City’s major initiatives in this effort are listed below.
x Implement the City's Economic Development Strategic Plan x Implement new software for document management to streamline the current indexing process and improve searchability and long-term viability. vi
19 x Begin installation of Citywide radio syst em infrastructure replacement and device upgrade.
x Implement an e-pr ocurement system.
x Update the City’s mapping/GIS systems to have a single source of land use information.
x Implement new auto-issuance permits types in EnerGov to streamline the processes behind plumbing, mechanical and roofing.
x Complete the RFP process, select, and im plement a public works Enterprise Asset Management (EAM) system.
x Develop and implement a public outreac h program to identify and inform small business community members who ar e within the scope of AB 2164 funding opportunities.
x Finalize the Envision Simi Valley Specific Plan project established to promote redevelopment of the Tapo Street and Los Angeles Avenue commercial areas with mixed use, commercial, and residential uses to revitalize those project areas; and complete the concurrent creation of obj ective design and development standards to comply with State law.
x Identify cost effective m eans of improving and mainta ining pedestrian safety for school-age children and their caregivers.
x Obtain FEMA 5-year cycle review approv al of the City's National Flood Insurance Program Community Rating System program.
x Construct the 3 new water conservation project/turf reduction projects within the City. One project will be within Landscape Zone 31 adjacent the north side of the 118 Freeway between Sequoi a Avenue and Galena Avenue. One project will be within Zone 96, adjacent the south side of Tierra Rejada Road and one other project will be at the north-west corner of Alamo Street and Tapo Canyon Road adjacent the Simi Valley Police Department. These projects will result in significant savings in utilities and contract efforts once completed. x Adopt, implement, and train all sworn staff in de-escalation strategies as part of the Department's Defensive Tactics Program via the Gracie Survival Tactics class. x Work with the Ventura County Sherriff’s Office Overdose Task Force on overdose cases occurring within the City of Simi Valley.
x Improve officer safety and effectiveness by keeping informed of technological advances and opportunities made available through the body-worn camera vendor. x Complete construction of the water qualit y control plant energy savings projects. x Complete the upgrade to the CNG fueling station for back-up compressor at the transit maintenance facility.
Gann Appropriations Limitation. Article XIIIB of the State of California Constitution sets limits on the amount of tax revenues that the City can appropriate within a given fiscal year. Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations, and other non-tax proceeds are not subject to the limit.
Exemptions are also made for voter-approved debt and debt that existed prior to January 1, 1979, and for the cost of compliance with Cour t 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 vii
20 service responsibility transfers. The City’s appropriations limit for the fiscal year ended June 30, 2023, was $92,721,564. Actual tax rev enues 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) has awarded the City of Simi Valley a Certificate of Achievement for Excellence in Financial Reporting for its Annual Comp rehensive Financial Report (ACFR) for 42 consecutive years (fiscal years ended 1980-2021). The City submitted the fiscal year 2022 report for consideration of this prestigious award in April 2023. As of the date of this report, GFOA has not concluded its review of the fiscal year 2021-22 ACFR, but the City fully expects to receive this award as it has in prior years. 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 t he Certificate of Achievement Program’s requirements and is submitting it to the GFOA to determine its elig ibility 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.
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
viii
21 OFFICIALS OF THE CITY OF SIMI VALLEY
(as of June 30, 2023)
Members of the City Council
FRED D. THOMAS, Mayor
MIKE JUDGE, Mayor Pro Tem
DEE DEE CAVANAUGH, Council Member
ELAINE LITSTER, Council Member
ROCKY RHOADES, Council Member
Administrative Staff
Brian P. Gabler .......................................................................................................... City Manager
David L. Caceres ....................................................................................................... City Attorney
Carolyn Johnson .......................................................................... Administrative Services Director
Stratis Perros ............................................................................... Environmental Services Director
Ron Fuchiwaki ............................................................................................. Public Works Director
Steve Shorts ............................................................................................................ Chief of Police
ix
22 ORGANIZATION OF THE CITY OF SIMI VALLEY
* Budget
* Information Services
* Customer Service
* Hazardous Materials
* Household Hazardous Waste
* Management
* Water Conservation
* Solid Waste Management
* Crossing Guards
* Simi Valley Transit
* ADA / Dial-A-Ride Services
* 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
* Professional Standards Bureau
* Administration
* Emergency Services
* Administration and
* Communication Division
* Communication Bureau
* Fiscal Services Unit
* Maintenance Unit
* Records Bureau
* Investigative Services Division
* Detective Bureau
* Narcotics Enforcement
* Neighborhood Councils
* Task Force on Homelessness
* Community Projects Grant
* CDBG Program
* Housing Rehabilitation
* Building Code Compliance
* Building Permits & Inspection
* Structural & Life Safety Plan
* Code Enforcement
* Assistance
* Review
* Property Maintenance
* Cable Television
* Animal Services
* 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
* Fiscal Services
* Support Services
x
23 FINANCIAL SECTION
FINANCIAL SECTION
24 25
INDEPENDENT
AUDITOR’S REPORT
26 27
1 Independent Auditor’s Report
Honorable 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, 2023, the budgetary comparison for the general fund and the successor housing agency to community development agency housing administration special revenue fund for the year ended June 30, 2023, and the related notes to the 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, 2023, and the respective changes in financial position, the budgetary comparison for the general fund and the successor housing agency to community development agency housing administration special revenue fund, 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 (Government Auditing Standards).
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.
Emphasis of Matter
As discussed in Note I-D, the City implemented the provisions of Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements, during the fiscal year ended June 30, 2023. Our opinion is not modified with respect to this matter. 28 2
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fa ir presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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.
x 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. x 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.
x Conclude whether, in our judgment, there are condit ions 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.
29 3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in the net pension liability and related ratios, schedule of pension plan contributions, schedule of changes in the net OPEB liability and related ratios, and schedule of OPEB contributions, as listed in the table of contents 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, ec onomic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual 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 requir ed part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the 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 statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opi nions 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. 30 4
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued a report dated December 20, 2023 on our consideration of the City’s internal control over financial reporting and 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
December 20, 2023
31 MANAGEMENT’S DISCUSSION
AND ANALYSIS (UNAUDITED)
MANAGEMENT’S DISCUSSION
AND ANALYSIS (UNAUDITED)
32 33
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
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 Ci ty for the fiscal year ended June 30, 2023.
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
x At the close of the fi scal year, the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $452.3 million. x The City’s total net posit ion increased by $29.4 mill ion. This increase was comprised of a $10.7 million increase in net investment in capital assets, a $6.0 million decrease in restricted net posit ion, and a $24.7 million increase in unrestricted net position. The increase in net investment in capital assets is a result of additional assets purchased or constr uction-in-progress completed during the fiscal year, net of related depreciation. Th e decrease in restricted net position is primarily due to the utilization of funds, such as American Rescue Plan Act funds, which were previously restricted for ot her purposes ($4.4 m illion) and in funds restricted for streets and roads capital projects ($2.2 million) offset by increases in funds restricted for sewer and water projects ($0.4 million) and funds restricted for community development ($0.3 million). T he large increase in unrestricted net position is primarily due to the fiscal year 2023 surplus in the general fund ($9.5 million), along with increases in the Sanitation ($8.4 million) and Waterworks ($3.1 million) unrestricted net positions.
x The City’s total program and general rev enues decreased by $0.9 million. Charges for services decreased by approximately $9.8 million as discussed below in the Government-Wide Financial Analysis section of the Management Discussion and Analysis. Grant revenues decreased by approximately $1.5 m illion primarily due to a decrease in grant-reimbursable capital projects. Meanwhile, City tax revenue sources, including property, sales, franchise, business, and other taxes held strong, resulting in a combined increase th is year of approximately $3.3 million.
Lastly, interest in investments revenue in creased by $7.4 million primarily due to favorable market conditions.
x As of the close of the cu rrent fiscal year, the City’s governmental funds reported combined ending fund balances of $144.1 m illion, an increase of $3.4 million in comparison with the prior fiscal year. Of the ending fund balance, approximately
2.5% or $3.6 million is Nonspendable in fo rm for long-term receivables; 29.5% or $42.5 million is Restricted for housing programs, public improvements, streets and transportation, debt service obligations, special programs, and law enforcement; 5 34
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
35.6% or $51.3 million is Committed to str eet projects, retiree benefits, special programs, equipment replac ement, economic recovery, and prudent reserve;
33.2% or $47.8 million is Assigned to capital; and -0.8% or negative $1.1 million is Unassigned.
x At the end of the current fiscal year, the Prudent Reserve established by the City Council totaled $15.1 million. This port ion 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 privat e-sector business.
The City has presented information from prior years in this discussion for comparative purposes.
FINANCIAL STATEMENTS
Government-Wide (Full Accrual)
Governmental Activities
Business-Type Activities
Fund
Governmental (Modified Accrual)
Proprietary (Full Accrual)
Fiduciary (Full Accrual)
REQUIRED SUPPLEMENTARY INFORMATION
Notes to the Financial Statements
MANAGEMENT'S DISCUSSION AND ANALYSIS
6 35
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The statement of net position presents information on all of the City’s assets and deferred outflows of resources, and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial standing of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).
The government-wide financial st atements 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 acc ounts that is used to mainta in control over resources that have been segregated for spec ific 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 governmen t-wide financial stat ements, 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 governmen tal funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the government al fund statement of re venues, 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 governm ental funds and sub-f unds in its financial system and presents them grouped by related activities as three major and 25 non-major 7 36
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
separate governmental funds for this report. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the three major funds: the General fund, the Successor Housing Agency (SHA) to Community Development Agency Housing Administration fund, and the Streets and Roads fund. Da ta from the other 25 governmental funds is combined into a singl e, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Supplementary Information section of this report.
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 fund 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 sa me functions presented as business-type activities in government-wide financial statements. The City uses enterpris e 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, 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 government- wide financial statements e xcept for any residual balanc es 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, waterw orks, and transit operations, all of which are considered major funds of the City. C onversely, the internal service funds are combined into a single, aggregated presentat ion in the proprietary fund financial statements. Individual fund data for the internal service fund s 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 governmen t. 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 schedule of changes in fiduciary net position is provided in the Supplementary Information section of this report.
The City accounts for and reports upon three fiduciary fund-types: Private-Purpose Trust funds, Custodia
l funds, and Pension and Other Postemployment Benefits (OPEB) Trust 8 37
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
funds. 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 estima ted installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated. 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 dist rict bondholders, and initiating foreclosure proceedings, if appropriate. The Pension and OPEB Trust funds account for the assets, contributions, administration expenses, and benefit payments related to the City’s Public Agency Retirement Services (PARS) Retirement and OPEB plans.
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 pres ented immediately following the required supplementary information.
Statistical tables regarding fiscal trends, revenue capacity , debt capacity, demographic and economic information, and operating information can be found in the last section of this report.
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 $452.3 million at the close of the most recent fiscal year.
A significant portion of the City’s net position (76.2%) reflects its net investment in capital assets (land, buildings, infrastructure, ma chinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide services to citizens; consequently, these assets are not av ailable for future spending. Although the Cit y’s investments in capital assets are reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (20.8%) repr esents resources that are subject to external restrictions on how they may be used. The remainder of the City’s net 9 38
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
position represents unrestricted net position. Unrestricted net position (3.0%) may be used at the City’s discretion to meet the City’s ongoing obligations to citizens and creditors.
City of Simi Valley’s Net Position
June 30, 2023 and 2022
2023 2022 2023 2022 2023 2022
Current and other assets 213,611,994$ 202,598,516 $ 131,918,415 $ 123,005,826 $ 345,530,409 $ 325,604,342 $ Capital assets 243,291,047 236,074,636 161,059,864 151,302,937 404,350,911 387,377,573 Total assets 456,903,041 438,673,152 292,978,279 274,308,763 749,881,320 712,981,915 Deferred outflows 69,877,194 37,199,550 14,615,357 5,841,452 84,492,551 43,041,002 Long-term liabilities
outstanding 257,242,799 190,827,776 76,522,279 58,619,859 333,765,078 249,447,635 Other liabilities 14,148,854 7,752,633 8,322,209 7,723,050 22,471,063 15,475,683 Total liabilities 271,391,653 198,580,409 84,844,488 66,342,909 356,236,141 264,923,318 Deferred inflows 21,822,271 56,408,791 4,047,908 11,855,189 25,870,179 68,263,980 Net position:
Net investment in capital
assets 209,775,571 200,958,735 135,124,145 133,253,370 344,899,716 334,212,105 Restricted 81,276,789 87,578,328 12,622,013 12,266,569 93,898,802 99,844,897 Unrestricted (57,486,049) (67,653,561) 70,955,082 56,432,178 13,469,033 (11,221,383) Total net position 233,566,311$ 220,883,502 $ 218,701,240 $ 201,952,117 $ 452,267,551 $ 422,835,619 $ Governmental
Activities
Business-Type
Activities Total
At the end of the current fiscal year, the City is able to report positive balances in all 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 reported positive balances in two of t
he three categories for the government as a whole. As noted above, the negative unrestricted balances 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. 10 39
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
City of Simi Valley’s Changes in Net Position
Years Ended June 30, 2023 and 2022
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for services 8,892,311$ 11,820,544$ 68,354,236$ 75,204,015$ 77,246,547$ 87,024,559$ Operating grants and
contributions 15,927,173 19,932,730 3,435,944 3,459,938 19,363,117 23,392,668 Capital grants and
contributions 2,143,432 546,707 3,387,969 2,484,089 5,531,401 3,030,796 General Revenues:
Property taxes 42,184,244 39,173,353 - - 42,184,244 39,173,353 Other taxes 35,014,440 34,677,486 - - 35,014,440 34,677,486 Interest on investments 3,137,714 (292,256) 1,848,136 (2,166,729) 4,985,850 (2,458,985) Other 39,107 295,538 91,341 179,195 130,448 474,733
Total revenues 107,338,421 106,154,102 77,117,626 79,160,508 184,456,047 185,314,610 Expenses:
General government 25,359,462 22,292,284 - - 25,359,462 22,292,284 Community services 7,027,701 5,764,129 - - 7,027,701 5,764,129 Planning 6,540,620 5,522,741 - - 6,540,620 5,522,741 Public ways and facilities 18,555,545 17,753,088 - - 18,555,545 17,753,088 Public safety 38,757,037 35,758,204 - - 38,757,037 35,758,204 Interest on long-term debt 1,189,630 1,285,332 - - 1,189,630 1,285, 332 Indirect expense allocation (7,576,038) (7,576,038) 7,576,038 7,576,038 - - Sanitation - - 15,203,143 12,320,909 15,203,143 12,320,909 Waterworks District No. 8 - - 34,875,433 41,466,529 34,875,433 41,466,529 Transit - - 7,525,013 5,875,642 7,525,013 5,875,642 Total expenses 89,853,957 80,799,740 65,179,627 67,239,118 155,033,584 148,038,858 Change in net position before
transfers and contributions 17,484,464 25,354,362 11,937,999 11,921,390 29,422,463 37,275,752 Transfers (4,811,124) (3,449,116) 4,811,124 3,449,116 - - Contributions from Successor
Agency 9,469 54,502 - - 9,469 54,502
Change in net position 12,682,809 21,959,748 16,749,123 15,370,506 29,431,932 37,330,254 Net position - beginning 220,883,502 198,923,754 201,952,117 186,581,611 422,835,619 385,505,365 Net position - ending 233,566,311$ 220,883,502$ 218,701,240$ 201,952,117$ 452,267,551$ 422,835,619$ Governmental
Activities
Business-Type
Activities Total
During the current fi
scal year, City-wide revenues decreased by $0.9 million and expenses increased by $7.0 million as compared to the prior fiscal year. Overall, the City’s net position increased $29.4 million compared to the prior fiscal year’s increase of $37.3 million. Revenue categories with increases from the prior fiscal year consisted of capital grants and contributions ($2.5 million), property tax ($3.0 million), other taxes ($0.3 million), and investment earnings ($7.4 million) offset by decr eases in the categories of charges for services ($9.8 million), operati ng and capital grants and contributions ($4.0 million), and other revenues ($0.3 million).
Governmental Activities. Governmental activities increased the City’s net position $12.7 million as compared to an increase of $22.0 million in the prior year.
Total revenues increased by 1.1% ($1.2 million) from the prior fiscal year, resulting from a general revenues increase of 8.8% ($6.5 million) offset by a program revenues decrease of 16.5% ($5.3 million).
The program revenues decrease is primarily due to:
11 40
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x Charges for services decreased by 24.8% ($2.9 million) primarily due to a $1.3 million decrease in planning revenue (reduced building permit activity) and a $2.1 million decrease in public ways and faci lities (reduced encroachment permits, inspection fees, and developer fees) offset by a $0.3 million increase in public safety (damage recovery).
x Operating grants and contri butions decreased by 20.1% ($4.0 million) primarily due to exhaustion of federal financial assistance related to the COVID pandemic. x Capital grants and contributions increased by 292.1% ($1.6 million) primarily due
to an increase in reimbursable capital street projects.
The general revenues increase is primarily due to:
x Property tax revenue increased by 7.7% ( $3.0 million) primarily due to increased assessed values and a strong housing market.
x Other taxes increased by 1.0% ($0.3 m illion) primarily due to an increase in franchise taxes ($0.7 million) offset by decreases in sales taxes ($0.2 million) and other taxes ($0.2 million).
x Interest on investments increased 1,173.6% ($3.4 million) primarily due to more favorable market conditions.
x Other general revenue decreased 86.8% ($0.3 million) primarily due to reclassifying the Kaiser building leas e from general revenues to general government within the governmental activities.
For governmental activities, total expenses increased 11.2% ($9.1 million) from the prior fiscal year. This is primarily due to:
x
General government expenses increased 13.8% ($3.1 million) primarily due to an increase in pension expense. There was a significant decrease in investment return during the measurement period of fiscal year 2021-22 and a change in discount rate implemented by CalPERS resulting in higher pension expense during the year.
x Community services expenses increased 21.9% ($1.3 million) primarily due to updated valuation of compensate
d absences ($0.5 million), increased salaries and
benefits costs ($0.4 million), and the updated valuation of pension and OPEB liabilities ($0.4 million).
x Planning expenses increased 18.4% ($1. 0 million) pr imarily due to the updated valuation of pension and OPEB liabilities.
x Public ways and facilities expenses incr eased 4.5% ($0.8 million) primarily due to the updated valuation of pension and OPEB liabilities.
12 41
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x Public safety expenses increased 8.4% ( $3.0 million) primarily due to the updated valuation of pension and OPEB liabilities ($1.4 million), increased salaries and benefits costs ($0.8 million) , and updated valuation of compensated absences ($0.5 million).
Charges for services,
$8.9, 8%
Operating grants
and contributions,
$15.9, 15%
Capital grants and
contributions,
$2.1, 2%
Property taxes,
$42.2, 39%
Other taxes,
$35.0, 33%
Interest on investments,
$3.1, 3%
Other,
$0.1, 0%
Revenues by Source - Governmental Activities
(in millions)
Total Revenue = $107.3
$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
$2.9
$7.6
$5.1
$9.3
$2.0 $0.0
$25.4
$7.0 $6.5
$18.6
$38.8
$1.2
Program Revenues and Expenses - Governmental Activities (in millions)
Program Revenues Expenses
13 42
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Business-type Activities . Business-type activities increased the City’s net position $16.7 million as compared to a $15.4 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, over all revenue, before tran sfers, decreased by
2.6% ($2.0 million). This is primarily due to:
x Charges for services decreased by 9.1% ($6.8 million) prim arily due to a $8.3 million decrease of Waterwor ks District No. 8 service charges driven by reduced water usage. The reduced water usage was due to on-going water conservation efforts within the community, and more than twice the average precipitation during the fiscal year. This decrease in water service charges was offset by a $1.3 million increase in Sanitation service charges re sulting from rate increases and a $0.1 million increase in Transit as the City continues to improve ridership. x Capital grants and contributions increas ed by 36.4% ($0.9 million) due to an increase in reimbursable capital project expenditures within the Transit division. x Interest on investments increased 185.3% ($4.0 million) due to more favorabl e financial market conditions.
Expenses decreased 3.1% ($2.1 million) as compared to th e prior fiscal year. This is primarily due to:
x Waterworks program expenses decreased by 15.9% ($6.6 million) due to decreases in overall demand for water ($7.7 million) and other operating supplies ($0.9 million) offset by an increase in salaries and benefits ($1.8 million). x Sanitation program expenses increased by 23.4% ($2.9 million) primarily due to increases in salaries and benefits ($2. 2 million) and operat ing supplies ($0.9 million).
x Transit program expenses increased by 28. 1% ($1.6 million) pr imarily due to an increase in salaries and benefits ($2.0 million) offset by a decrease in depreciation expense ($0.4 million).
The Transit operation is prim arily funded by Federal and St ate grants. During the fiscal year, the City transferred $5.4 million from the Transportati on special revenue fund to cover the program revenue shortfall.
14 43
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Charges for services,
$68.4, 89%
Operating grants
and contributions,
$3.4, 4%
Capital grants and
contributions,
$3.4, 4%
Other,
$1.9, 3%
Revenue by Source - Business-Type Activities
(in millions)
Total Revenue = $77.1
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
Sanitation Waterworks Transit
$28.4
$41.8
$5.0
$18.2
$37.5
$9.4
Program Revenue and Expenses - Business-Type Activities (in millions)
Program Revenues Expenses
15 44
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Financial Analysis of the Government’s Funds
As noted earlier, the City us es 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 Cit y’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.
x Nonspendable fund balance represents funds that are not immediately available to support government operations. Exam ples are inventory and long-term receivables that will not be converted to cash in the near future. x Restricted fund balance has constraints impos ed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
x 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 Ci ty Council removes or changes the specified use through the same type of formal action taken to establish the commitment.
x Assigned fund balance is similar to Committed fund balance except that the City Council can authorize the Cit y 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. x Unassigned fund balance is that portion of General fund balance that does not fall into any of the other fund balance categor ies. 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 fi scal year, the City’s governmen tal funds reflect combined ending fund balances of $144.1 million, an increase of $3.5 million when compared to the prior fiscal year fund balance of $140.6 million. Of this tota l amount, 2.5% ($3.6 million) is Nonspendable in form, comprised of long-term receivables; 29.5% ($42.5 million) is Restricted for specific activities including housing programs ($12. 3 million), public improvements ($6.6 million), streets and transportation ($15.5 million), debt service ($0.9 million), special programs ($5. 3 million), and law enforcement programs ($1.9 million); 16 45
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
35.6% ($51.3 million) is classified as Committed for activities such as streets ($15.1 million), retiree benefits ($1.3 million), special programs ($ 1.1 million), equipment ($7.6 million), economic recovery ($11.1 million), and prudent reserve ($15.1 million); 33.2% ($47.8 million) is classified as Assigned compri sed of capital; and -0.8% (negative $1.1 million) of the fund balance is Unassigned.
The fund balance of the City’s General fund increased by $3.3 million during the current fiscal year, for a total ending fund balance of $80.0 million. In comparison to last fiscal year, overall revenues, including other financing sources, in the General fund decreased by $2.7 million primarily due to decreases in grant revenue of $7.4 million and licenses and permits of $1.5 million offset by increases in taxes of $3.3 million and use of money and property of $2.6 million. The decrease in grant revenues was primarily due to the final receipt of State and Local Fiscal Recovery Fund funds received in fiscal year 2021-
22. The decrease in license and permit rev enue was primarily due to a decrease in building permits ($1.2 million) and encroachment permits ($0. 3 million). The increase in taxes was primarily due to an increase in property tax ($3.2 million) due to an increase in property valuations. The increase in use of money and property was due to improved market conditions ($1.2 million) and favorable fair market valuations at year-end ($1.5 million). Overall expenditures, including other financing uses , increased by $0.4 million primarily due to increases in general government expenditures of $4.5 million offset by a decrease in transfers out of $5.2 million. The incr ease in general government expenditures was primarily due to increases in salaries and benefits. The decrease in transfers out was primarily due to a net decr ease in transfers to the streets and roads fund due to a non-recurring transfer in fiscal year 2021-22 of $8.3 million, offset by a one- time transfer to the radio tower capital project of $2.0 million, an increased transfer to the vehicle replacement fund ($0.6 million), and an increased transfer to the public facilities improvements fund ($0.5 million).
The fund balance of the SHA to Community Development Agency Housing Administration fund remained flat for a total ending fund balance of $5.1 million. In comparison to last fiscal year, overall revenues, including other financing sources, in the fund revenue decreased by $0.1 million primarily due to a decrease in developer loan interest due to a decrease in residual receipts due to the City. In comparison to last fiscal year, expenditures, including other financing uses , decreased by $0.4 mi llion primarily due to a decrease in salaries and benefits from staff charging time to other funds ($0.2 million) and staff vacancy ($0.1 million), and a decrease in professional services ($0.1 million).
The fund balance of the Str eets and Roads fund decreased by $0.5 million during the current fiscal year for a total ending fund balanc e of $15.1 million. In comparison to last fiscal year, overall revenues, including other financing sources, decreased by $4.6 million primarily due to decreases in transfers in of $5.3 million and other revenues of $0.5 million offset by an increase in grants of $1.3 million. The decrease in transfers in was primarily due to a non-recurring transfer from the General fund in fiscal year 2021-22 ($8.3 million) offset by an in increase in transfers from the gas tax fund ($2.3 million) and a transfer from the debt service fund received for the first time in fiscal year 2022-23 ($0.4 million).
The decrease in ot her revenues was prim arily due to a decrease in develop er
contributions as other funding sources were used to fund street projects during the year. 17 46
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The increase in grants was primarily due to an increase in federal grant reimbursable activities in fiscal year 2022-23 ($1.1 million). In comparison to last fiscal year, overall expenditures, including other financing uses, increased $8.4 million primarily due to an increase in capital outlay for streets and roads projects.
Proprietary Funds. The information provided below about the City’s proprietary funds is similar to the information about Business-ty pe Activities found in the government-wide financial statements, but by individual funds rather than in aggregate.
During the current fiscal year , the Sanitation, Waterworks, and Transit funds showed increases in net position of $9.8 million, $5.3 million, and $0.7 million, respectively.
Restricted net position for the Sanitation and Waterworks funds was $11.5 million and $1.2 million, respectively; Unrestricted net pos ition of the Sanitation, Waterworks, and Transit funds was $50.4 million, $24.2 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.
General Fund Budgetary Highlights
Actual revenues of $85.5 million were $3.3 million less than the General fund final budgeted amount of $88.8 million primarily due to the following:
x $0.7 million in property taxes over th e budgeted amount due to stronger than expected assessed property values.
x $1.3 million in franchise taxes over the budgeted amount due to stronger than expected franchisee activities.
x $7.7 million in grants under the budgeted amount due to the second allocation of the State and Local Fiscal Recovery fu nds related to the American Rescue Plan Act which was originally budgeted and expect ed in fiscal year 2023, but actually received at the end of fiscal year 2022. While the City adjusted the expenditure budget out of fiscal year 2023, as discuss ed below, the revenue budget was not adjusted.
x $1.2 million in use of money and property over the budgeted amount due to improved financial market conditions yielding higher investment returns. x $0.9 million in other revenues over the budgeted amount due to stronger than expected cultural arts pr ogram revenues ($0.5 millio n) and unbudgeted revenue from the national opioids settlement ($0.1 million).
The General fund final amended ex penditure budget of $88.8 million was $3.8 million
greater than the original expenditure budget of $85.0 million primarily due to the following:
18 47
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x $1.4 million was appropriated for administr ative services and City-wide support for the COVID-19 Community Recovery Grant program ($5.3 mill ion), a one-time pension payment utilizing prior year budgetary savings ($3.2 million), and additional maintenance of equipment ($0.4 million). These increases were offset by a decrease in the budget fo r expenditures related to the second allocation of the State and Local Fiscal Recovery f unds related to the American Rescue Plan Act which was originally budgeted and expected in fiscal year 2022-23, but actually received at the end of fiscal year 2021-22 ($7.7 million). x $0.6 million was appropriated for communi ty services primarily for additional operating supplies due to a CalRecycle grant award ($0.2 million), budget carryforward of unused funds appropriated in the prior fiscal year ($0.1 million) and additional appropriations for cultural ar ts programs from th e City’s COVID-19 Community Recovery Grant Program ($0.2 million).
x $1.7 million was appropriated for public ways and facilities primarily for additional contract services ($0.9 million) and fl ood hazard risk assessment studies ($0.7 million).
The final amended transfers out budget of $12.8 million was $4.5 million greater than the original budget of $8.3 million primarily due to the following:
x $3.1 million was appropriated for the radio project.
x $1.4 million was appropriated for st reets and roads projects.
Actual expenditures of $75.7 million were $13. 1 million less than the General fund fina l
amended expenditure budget of $88.8 million primarily due to the following:
x $0.5 million savings in city administr ation primarily due to salary savings. x $4.8 million savings in adm inistrative services and City-wide support primarily due to appropriated COVID-19 Community Recove ry Grant program funds that were not yet disbursed as of June 30, 2023, savings in maintenance of equipment ($0.7 million), and savings in communications ($0.3 million), offset by additional salaries and benefits costs due to the city-wide general salary increase ($1.0 million). x $1.2 million savings in community services primarily due to salary savings ($0.4 million), animal service costs ($0.3 million), and operating supplies expenses ($0.3 million).
x $0.6 million savings in planning primarily due to salary savings. x $4.7 million savings in public ways and facilities primarily due to salary savings ($1.4 million), contract services ($1.1 m illion), utilities ($0.8 mi llion), professional services ($0.8 million) and equipment maintenance ($0.6 million). 19 48
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x $1.4 million savings in public safety primarily due to salary savings ($0.9 million), uniform costs ($0.2 million), and operating supplies costs ($0.1 million).
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, 2023, amounts to $404.4 million (net of accumulated depreciation). This is an increase of $17.0 million as compared to the prior year.
The investment in capital assets includes land, plant and buildings, furnishings and equipment, computers and software, vehicles, infrastructure consisting of roads and highways, and water and sewer distribution systems, intangibles, and right-of-use assets.
Major capital asset events during the current fiscal year included the following:
x $11.2 million in street pr ojects were completed.
x $1.9 million in water line replacement projects were completed. x $0.5 million in sewer line rehabilita tion projects were completed. x $2.2 million was expended on the Easy Street Arroyo sewer line project (construction-in-progress).
x $5.8 million was expended on the Sanita tion energy savings upgrade project (construction-in-progress).
x $2.0 million was expended on the City-wi de radio project (construction-in- progress).
x $1.2 million was expended on the Tr ansit CNG fueling station upgrade (construction-in-progress).
Additional information on the City’s capital assets can be found in note III.E of the notes to the financial statements.
20 49
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
City of Simi Valley’s Capital Assets
(net of accumulated depreciation)
June 30, 2023 and 2022
Governmental Business-Type
Activities Activities Total
2023 2022 2023 2022 2023 2022
Land 10,621,811$ 10,621,811$ 1,216,994$ 1,216,994$ 11,838,805$ 11,838,805$ Building and Improvements 29,960,150 31,466,898 5,668,479 5,945,209 35,628,629 37,412,107 Furnishings and equipment 3,070,710 3,740,733 2,917,431 3,215,293 5,988,141 6,956,026 Vehicles 1,652,242 1,541,377 2,538,000 2,713,065 4,190,242 4,254,442 Infrastructure 174,520,480 167,765,523 117,066,764 116,237,285 291,587,244 284,002,808 Intangibles 2,700,293 2,862,182 - - 2,700,293 2,862,182 Right-of-use asset 2,529,851 2,519,910 - - 2,529,851 2,519,910 Construction-in-progress 18,235,510 15,556,202 31,652,196 21,975,091 49,887,706 37,531,293 Total 243,291,047$ 236,074,636$ 161,059,864$ 151,302,937$ 404,350,911$ 387,377,573$ Long-term debt. At the end of the current fiscal y ear, the City had total bonded debt outstandin
g of $63.6 million. Th is entire amount represents bonds secured solely by specified revenue sources (e.g., revenue bonds).
City of Simi Valley’s Outstanding Bonded Debt on June 30, 2023 and 2022:
2023 2022
2014A lease revenue refunding bond 14,000,000$ 14,845,000$ 2016 New Clean Renewable Energy Bonds (NCREBs) 7,125,152 7,511,274 2016 NCREBs tax exempt 556,698 589,602
2017 lease agreement 4,409,524 4,841,363
2018 lease agreement 4,721,948 5,034,290
2019 lease agreement 31,675,185 33,236,284
Bond premium 1,100,413 1,199,049
Total 63,588,920$ 67,256,862$
Governmental and Business-type
Activities
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 2023, the City Council adopted the fiscal year 2023-24 annual budget. The adopted budget is structurally balanced with a funding level that begins to address long- term funding deficienc
ies 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, which will allow the City Council to make strategic decisions for the foreseeable future. 21 50
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
In April 2022, the City Council approved a f und balance policy for the General fund that will allocat
e prior year-end General fund surplus dollars. Included with the fiscal year 2023-24 adopted budget is the reallocation of the fiscal year 2021-22 surplus funds into three specific use “holding” funds. In acco rdance with the Fund Balance Policy, $4.5 million was placed in the Infrastructure Inve stment fund, $4.5 million was placed in the Retirement Obligation fund, and $1.2 million was placed in a Contingency fund.
As the fiscal year 2023-24 budget was being developed, inflation was still high, but slowing. As a result of the Federal Reserve’s actions, interest rates continued to increase with more increases possible. Unemployment claims in California and Ventura County remain low (although increased from prior year) and unfilled job openings remain high however many key job sectors have returned to pre-pandemic employment levels.
Demand for industrial real estate is strong and residential real estate sales continue but at a slower rate. The principal issues of concern are inflation and inte rest rates, both of which are expected to slow their increases and begin to stabilize.
The City is anticipating a more moderate increase in property tax and a flattening of sales tax for fiscal year 2023-24. Assessed property value is the basis for property tax, the City's primary revenue source. Thus, fluctuations have a significant impact upon the City's budget. The City's assessed values increased by 8.0% from fiscal year 2021-22 to fiscal year 2022-23 and has an average increase of 5.1% year-over-year for the last four years, demonstrating strong property va lues and positive growth for the local economy. Sales tax has shown continued strength, but the level of sales activity has cooled as a result of interest rates. The City is also being cautious with the significant shift to online sales. In brick-and-mortar purchases, the City receives its full share of sales taxes paid on each transaction. Online sales result in the City re ceiving only a portion of sales taxes paid.
This could result in lower sales tax revenue; City staff continues to monitor this situation.
According to the California Employment Development Department, the unemployment rate in Simi Valley has historically remained below that of Ventura County, an indicator of the strength of the local economy. However, as of June 2023, the City’s unemployment rate of 4.2% matched the ra te of 4.2% for Ventura C ounty but remained below the California rate of 4.9%. The City will conti nue to monitor this trend, but does not have any immediate concerns.
The City is overall in a good financial po sition, with a General fund spendable fund balance of $76.4 million, which will allow the City Council to continue to make strategic decisions directed at improving the services we provide to our citizens. 22 51
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
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, California 93063. 23 52
53 BASIC FINANCIAL STATEMENTS
BASIC FINANCIAL
STATEMENTS
54 55
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
56 57
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments (note III.A) 163,695,577 $ 103,247,856 $ 266,943,433 $ Accounts receivable (net of allowance for uncollectibles) (note III.C) 7,263,275 6,407,698 13,670,973 Taxes receivable 6,572,113 437,538 7,009,651
Grants receivable 713,024 3,969,329 4,682,353
Lease receivable (note III.D) 322,302 373,094 695,396
Interest receivable 1,215,050 718,895 1,933,945
Internal balances (note I.E.2) (347,876) 347,876 -
Inventories - 1,612,304 1,612,304
Restricted cash and investments (note III.A):
Customer deposits - 1,150,195 1,150,195
Connection fees - 11,471,818 11,471,818
Total current assets 179,433,465 129,736,603 309,170,068 Noncurrent assets:
Lease receivable (note III.D) 9,411,795 2,181,812 11,593,607 Loans receivable (note III.B) 24,766,734 - 24,766,734 Capital assets (note III.E):
Capital assets not being depreciated 28,857,321 32,869,190 61,726,511 Capital assets being depreciated, net 214,433,726 128,190,674 342,624,400 Total noncurrent assets 277,469,576 163,241,676 440,711,252 Total assets 456,903,041 292,978,279 749,881,320
DEFERRED OUTFLOWS OF RESOURCES
Related to loss on debt refunding 143,888 - 143,888
Related to pensions (note IV.D) 40,452,154 9,539,504 49,991,658 Related to other postemployment benefits (note IV.E) 29,281,152 5,075,853 34,357,005 Total deferred outflows of resources 69,877,194 14,615,357 84,492,551
LIABILITIES
Current liabilities:
Accounts payable 4,796,437 6,221,326 11,017,763
Salaries and benefits payable 3,331,067 482,112 3,813,179 Accrued interest payable 369,650 242,416 612,066
Deposits 1,151,700 - 1,151,700
Liabilities payable from restricted assets - 1,150,195 1,150,195 Unearned revenues 4,500,000 226,160 4,726,160
Current portion of long-term debt (note III.H) 5,575,775 1,744,098 7,319,873 Total current liabilities 19,724,629 10,066,307 29,790,936 Noncurrent liabilities (note III.H):
Noncurrent portion of long-term debt 251,667,024 74,778,181 326,445,205 Total liabilities 271,391,653 84,844,488 356,236,141
DEFERRED INFLOWS OF RESOURCES
Related to leases 9,078,667 2,385,816 11,464,483
Related to pensions (note IV.D) 3,919,847 401,313 4,321,160 Related to other postemployment benefits (note IV.E) 8,823,757 1,260,779 10,084,536 Total deferred inflows of resources 21,822,271 4,047,908 25,870,179
NET POSITION
Net investment in capital assets 209,775,571 135,124,145 344,899,716 Restricted for:
Capital projects 35,108,713 - 35,108,713
Community development 37,129,161 - 37,129,161 Other purposes 9,038,915 - 9,038,915
Sewer connection fees and water capital improvement charges - 12,622,013 12,622,013 Unrestricted (57,486,049) 70,955,082 13,469,033 Total net position 233,566,311$ 218,701,240$ 452,267,551$
CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
JUNE 30, 2023
See notes to the basic financial statements.
24 58
Indirect Operating
Expenses Full Cost Charges for Grants and
Expenses Allocation by Function Services Contributions
Primary government:
Governmental activities:
General government 25,359,462$ (8,316,452)$ 17,043,010$ 1,613,425$ 684,574$ Community services 7,027,701 439,876 7,467,577 996,991 6,561,892 Planning 6,540,620 300,538 6,841,158 3,749,701 1,378,609 Public ways and facilities 18,555,545 - 18,555,545 1,823,353 6,042,300 Public safety 38,757,037 - 38,757,037 708,841 1,259,798 Interest on long-term debt 1,189,630 - 1,189,630 - - Total governmental activities 97,429,995 (7,576,038) 89,853,957 8,892,311 15,927,173 Business-type activities:
Sanitation 15,203,143 3,002,957 18,206,100 27,414,752 (4,146) Waterworks District No. 8 34,875,433 2,661,328 37,536,761 40,656,924 - Transit 7,525,013 1,911,753 9,436,766 282,560 3,440,090 Total business-type activities 57,603,589 7,576,038 65,179,627 68,354,236 3,435,944 Total primary government 155,033,584$ -$ 155,033,584$ 77,246,547$ 19,363,117$ (Continued)
CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Program
Revenues
See notes to the basic financial statements.
25 59
Program
Revenues
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
Primary government:
Governmental activities:
585,918$ (14,159,093)$ - $ (14,159,093)$ General government - 91,306 - 91,306 Community services
- (1,712,848) - (1,712,848) Planning
1,482,514 (9,207,378) - (9,207,378) Public ways and facilities 75,000 (36,713,398) - (36,713,398) Public safety - (1,189,630) - (1,189,630) Interest on long term-debt 2,143,432 (62,891,041) - (62,891,041) Total governmental activities Business-type activities:
941,234 - 10,145,740 10,145,740 Sanitation 1,129,527 - 4,249,690 4,249,690 Waterworks District No. 8 1,317,208 - (4,396,908) (4,396,908) Transit 3,387,969 - 9,998,522 9,998,522 Total business-type activities 5,531,401$ (62,891,041) 9,998,522 (52,892,519) Total primary government General revenues:
44,516,382 42,184,244 - 42,184,244 Property taxes 23,398,289 - 23,398,289 Sales taxes
6,084,358 - 6,084,358 Franchise taxes
2,436,816 - 2,436,816 Business tax
3,094,977 - 3,094,977 Other taxes
3,137,714 1,848,136 4,985,850 Investment earnings 39,107 - 39,107 Proceeds from sale of property
- 91,341 91,341 Miscellaneous
(4,811,124)
4,811,124 - Transfers
9,469 - 9,469 Contributions from Successor Agency
75,573,850 6,750,601 82,324,451 Total general revenues, contributions and transfers 12,682,809 16,749,123 29,431,932 Change in net position 220,883,502 201,952,117 422,835,619 Net position-beginning 233,566,311$ 218,701,240$ 452,267,551$ Net position-ending (Concluded)
Primary Government
CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Net (Expense) Revenue and
Changes in Net Position
See notes to the basic financial statements.
26 60
61 FUND FINANCIAL
STATEMENTS
62 63
64 Special Revenue
Fund
SHA to Community
Development
Agency Housing Streets &
General Administration Roads
ASSETS
Cash and investments:
Held by City 70,816,458$ 5,136,319 $ 17,156,573$ Held by bond trustee - - -
Accounts receivable (net of allowance for 1,108,326 56,524 4,649,999 uncollectibles) (note III.C)
Taxes receivable 6,504,442 - -
Grants receivable - - -
Lease receivable 9,734,097 - -
Interest receivable 788,980 33,054 -
Due from other funds (note III.G) 3,194,113 459 -
Loans receivable (note III.B) 221,215 15,164,170 -
Advances to other funds (note III.G) 3,348,380 - -
TOTAL ASSETS 95,716,011$ 20,390,526$ 21,806,572$
LIABILITIES
Accounts payable 1,905,945$ 78,824$ 2,178,782$
Salaries and benefits payable 3,298,591 13,549 -
Due to other funds (note III.G) 3,373 - -
Advances from other funds (note III.G) - - -
Deposits and deferred revenue 1,151,700 - 4,500,000
TOTAL LIABILITIES 6,359,609 92,373 6,678,782
DEFERRED INFLOWS OF RESOURCES
Leases 9,078,667 - -
Unavailable revenue-housing programs - 15,164,170 -
Unavailable revenue-public safety - - -
Unavailable revenue-community services 300,489 - -
Unavailable revenue-streets and roads - - 2,500
TOTAL DEFERRED INFLOWS OF RESOURCES 9,379,156 15,164,170 2,500 FUND BALANCES (note III.I)
Nonspendable
Long-term receivables 3,569,595 - -
Restricted
Housing programs - 5,133,983 -
Public improvements - - -
Streets and transportation - - -
Debt service - - -
Special programs - - -
Law enforcement - - -
Committed
Streets - - 15,125,290
Retiree benefits 1,321,566 - -
Special programs 1,065,496 - -
Equipment - - -
Economic recovery 11,084,838 - -
Prudent reserve 15,101,687 - -
Assigned
Capital 47,834,064 - -
Unassigned - - -
TOTAL FUND BALANCES 79,977,246 5,133,983 15,125,290
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 95,716,011$ 20,390,526$ 21,806,572$ (Continued)
Capital Projects
Fund
CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
See notes to the basic financial statements.
27 65
Total
Nonmajor Governmental
Governmental Funds
ASSETS
Cash and investments:
46,669,828$ 139,779,178 $ Held by Cit y 905,062 905,062 Held by bond trustee
1,448,426 7,263,275 Accounts receivable (net of allowance for uncollectibles) (note III.C)
67,671 6,572,113 Taxes receivable
713,024 713,024 Grants receivable
- 9,734,097 Lease receivable
234,498 1,056,532 Interest receivable
30,655 3,225,227 Due from other funds (note III.G)
9,381,349 24,766,734 Loans receivable (note III.B)
- 3,348,380 Advances to other funds (note III.G)
59,450,513$ 197,363,622$ TOTAL ASSETS
LIABILITIES
559,367$ 4,722,918$ Accounts payable
7,053 3,319,193 Salaries and benefits payable
2,205,683 2,209,056 Due to other funds (note III.G)
3,348,380 3,348,380 Advances from other funds (note III.G) - 5,651,700 Deposits and deferred revenue
6,120,483 19,251,247 TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- 9,078,667 Leases
9,398,946 24,563,116 Unavailable revenue-housing programs 106,481 106,481 Unavailable revenue-public safet y
- 300,489 Unavailable revenue-community services
- 2,500 Unavailable revenue-streets and roads
9,505,427 34,051,253 TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES (note III.I)
Nonspendable
- 3,569,595 Long-term receivables
Restricted
7,178,618 12,312,601 Housing programs
6,581,779 6,581,779 Public improvements
15,481,211 15,481,211 Streets and transportation
903,812 903,812 Debt service
5,308,559 5,308,559 Special programs
1,876,000 1,876,000 Law enforcement
Committed
- 15,125,290 Streets
- 1,321,566 Retiree benefits
- 1,065,496 Special programs
7,601,056 7,601,056 Equipment
- 11,084,838 Economic recovery
- 15,101,687 Prudent reserve
Assigned
- 47,834,064 Capital
(1,106,432) (1,106,432) Unassigned
43,824,603 144,061,122 TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS OF
59,450,513$ 197,363,622$ RESOURCES AND FUND BALANCES (Concluded)
CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
See notes to the basic financial statements.
28 66
Fund balances - total governmental funds $ 144,061,122
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. 243,291,047 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. 10,992,595
Some liabilities are not due and payable in the current period and therefore are not reported in the funds:
Accrued interest payable (369,650)
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. 24,972,586 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 40,187,449$
Related to other postemployment benefits 29,179,870 69,367,319 Deferred inflows of resources related to pensions and other postemployment benefits are not current obligations and therefore, are not reported in the governmental funds.
Related to pensions (3,908,711)
Related to other postemployment benefits (8,798,600) (12,707,311) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds:
Compensated absences payable (6,829,165)
Net OPEB liability (70,978,069)
Net pension liability (133,921,362)
2014A lease revenue refunding bonds (14,000,000)
2016 new clean renewable energy bonds (NCREBs) (7,125,152) 2016 NCREBs tax exempt (556,698)
2017 lease agreement (4,409,524)
2018 lease agreement (4,721,948)
Right-of-use lease liability (2,542,954)
Unamortized bond premium (1,100,413)
Unamortized bond payable deferred on refunding 143,888
(246,041,397)
Net position of governmental activities $ 233,566,311
CITY OF SIMI VALLEY
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES JUNE 30, 2023
See notes to the basic financial statements.
29 67
68 Special Revenue
Fund
SHA to Community
Development
Agency Housing Streets &
General Administration Roads
REVENUES
Taxes 74,464,375$ -$ -$ Licenses and permits 3,606,782 - - Fines and forfeitures 261,318 - - Use of money and property 2,424,239 469,743 - From other governments 472,943 - - Grants 554,929 - 1,442,763 Service charges 1,108,625 18,111 - Other revenues 2,618,500 - 107,500 Total revenues 85,511,711 487,854 1,550,263
EXPENDITURES
Current:
General government 14,401,816 - - Community services 4,401,190 - - Planning 5,300,817 484,728 - Public ways and facilities 14,199,110 - - Public safety 36,930,079 - - Total current expenditures 75,233,012 484,728 - Capital outlay 290,504 - 11,072,324 Debt service:
Principal 189,913 - - Interest - - - Other - - - Total debt service 189,913 - - Total expenditures 75,713,429 484,728 11,072,324
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 9,798,282 3,126 (9,522,061)
OTHER FINANCING SOURCES (USES)
Transfers in (note III.G) 4,442,681 - 9,036,656 Transfers out (note III.G) (11,199,426) - - Contributions from Successor Agency 9,469 - - Proceeds from sale of property 35,331 - - Long-term debt issuance-SBITA 189,913 - - Total other financing sources (uses) (6,522,032) - 9,036,656 NET CHANGE IN FUND BALANCES 3,276,250 3,126 (485,405) FUND BALANCES - BEGINNING 76,700,996 5,130,857 15,610,695 FUND BALANCES - ENDING 79,977,246$ 5,133,983$ 15,125,290$ (Continued)
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Capital Projects
Fund
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
See notes to the basic financial statements.
30 69
Total
Nonmajor Governmental
Governmental Funds
REVENUES
2,734,309$ 77,198,684 $ Taxes - 3,606,782 Licenses and permits 2,292 263,610 Fines and forfeitures 971,428 3,865,410 Use of money and property 12,087,602 12,560,545 From other governments 2,681,162 4,678,854 Grants 957,103 2,083,839 Service charges 225,551 2,951,551 Other revenues 19,659,447 107,209,275 Total revenues
EXPENDITURES
Current:
595,566 14,997,382 General government 2,557,040 6,958,230 Community services 581,876 6,367,421 Planning 1,244,149 15,443,259 Public ways and facilities 483,195 37,413,274 Public safety 5,461,826 81,179,566 Total current expenditures 3,269,889 14,632,717 Capital outlay Debt service:
2,041,445 2,231,358 Principal 1,301,407 1,301,407 Interest 6,901 6,901 Other 3,349,753 3,539,666 Total debt service 12,081,468 99,351,949 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
7,577,979 7,857,326 OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
8,217,503 21,696,840 Transfers in (note III.G) (15,151,338) (26,350,764) Transfers out (note III.G) - 9,469 Contributions from Successor Agency 3,776 39,107 Proceeds from sale of property - 189,913 Long-term debt issuance-SBITA (6,930,059) (4,415,435) Total other financing sources (uses) 647,920 3,441,891 NET CHANGE IN FUND BALANCES 43,176,683 140,619,231 FUND BALANCES - BEGINNING 43,824,603$ 144,061,122 $ FUND BALANCES - ENDING (Concluded)
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
See notes to the basic financial statements.
31 70
Net change in fund balances - total governmental funds 3,441,891$ 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. 18,598,286
Depreciation expense (11,381,875) 7,216,411
Issuance of long-term debt affects current financial resources in governmental funds, but increases long-term liabilities in the statement of net position.
Right-of-use SBITA liability (189,913)
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 845,000 Principal payment on 2016 new clean renewable energy bonds (NCREBs) 386,122 Principal payment on 2016 NCREBs tax exempt 32,904
Principal payment on 2017 lease agreement 431,839
Principal payment on 2018 lease agreement 312,342
Principal payment on right-of-use lease 33,238
Principal payment on right-of-use SBITA liability 189,913 2,231,358 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) 25,993
Amortized premium on bonds 98,636
Amortized deferral on refunding (12,852)
Pension-related expenses 4,628,932
OPEB-related expenses (6,747,894)
Compensated absences (net) (833,889) (2,841,074) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (341,668) 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. 3,165,804
Change in net position of governmental activities 12,682,809$ Capital outlay (This amount includes other current capitalizable expenditures of $8,699,049 net of $4,733,480 disposition)
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, 2023
See notes to the basic financial statements.
32 71
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes:
Sales 23,152,142 $ 23,152,142 $ 23,398,289 $ 246,147 $ Property 39,010,780 39,010,780 39,729,780 719,000 Franchise 4,800,000 4,800,000 6,084,358 1,284,358 Business and other 5,075,000 5,075,000 5,251,948 176,948 Licenses and permits 3,247,000 3,247,000 3,606,782 359,782 From other governments 341,554 341,554 472,943 131,389 Grants 7,919,147 8,297,703 554,929 (7,742,774) Service charges 1,266,400 1,281,383 1,108,625 (172,758) Fines and forfeitures 580,200 580,200 261,318 (318,882) Use of money and property 1,234,669 1,234,669 2,424,239 1,189,570 Other revenues 1,932,575 1,744,075 2,618,500 874,425 Total revenues 88,559,467 88,764,506 85,511,711 (3,252,795)
EXPENDITURES
Current:
City administration 5,049,739 5,067,183 4,551,432 515,751 Attorney 1,553,357 1,581,856 1,221,288 360,568 Administrative services and city-wide support 11,985,574 13,406,451 8,629,096 4,777,355 Community services 5,014,730 5,632,291 4,401,190 1,231,101 Planning 5,858,434 5,921,634 5,300,817 620,817 Public ways and facilities 17,228,278 18,919,464 14,199,110 4,720,354 Public safety 38,320,103 38,304,571 36,930,079 1,374,492 Total current expenditures 85,010,215 88,833,450 75,233,012 13,600,438 Capital outlay:
Other capital projects - - 290,504 (290,504) Total capital outlay - - 290,504 (290,504) Debt service:
Principal - - 189,913 (189,913) Total debt service - - 189,913 (189,913) Total expenditures 85,010,215 88,833,450 75,713,429 13,120,021
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,549,252 (68,944) 9,798,282 9,867,226
OTHER FINANCING SOURCES (USES)
Transfers in 4,954,429 5,095,479 4,442,681 (652,798) Transfers out (8,253,592) (12,795,266) (11,199,426) 1,595,840 Contributions from Successor Agency 9,469 9,469 9,469 - Proceeds from sale of property 20,500 20,500 35,331 14,831 Long-term debt issuance-SBITA - - 189,913 189,913 Total other financing sources (uses) (3,269,194) (7,669,818) (6,522,032) 1,147,786 NET CHANGE IN FUND BALANCE 280,058 (7,738,762) 3,276,250 11,015,012
FUND BALANCES - BEGINNING 76,700,996 76,700,996 76,700,996 - FUND BALANCES - ENDING 76,981,054$ 68,962,234$ 79,977,246$ 11,015,012$ Budgeted Amounts
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
See accompanying notes to the basic financial statements. 33 72
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 320,000$ 320,000$ 469,743$ 149,743$ Service charges 17,000 17,000 18,111 1,111 Total revenues 337,000 337,000 487,854 150,854
EXPENDITURES
Current:
Planning:
Materials, supplies and services 1,378,253 1,384,305 484,728 899,577 Total expenditures 1,378,253 1,384,305 484,728 899,577
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,041,253) (1,047,305) 3,126 1,050,431 NET CHANGE IN FUND BALANCES (1,041,253) (1,047,305) 3,126 1,050,431 FUND BALANCES - BEGINNING 5,130,857 5,130,857 5,130,857 - FUND BALANCES - ENDING 4,089,604$ 4,083,552$ 5,133,983$ 1,050,431$ Budgeted Amounts
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, 2023
See accompanying notes to the basic financial statements. 34 73
Ventura County Simi Valle y
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
ASSETS
Current assets:
Cash and investments 71,498,161 $ 31,591,070 $ 158,625 $ 103,247,856$ $23,011,337 Customer receivable 98,279 5,013,260 - 5,111,539 - Other receivable 947,869 302,872 45,418 1,296,159 - Taxes receivable 437,538 - - 437,538 - Grants receivable - - 3,969,329 3,969,329 - Lease receivable - 2,554,906 - 2,554,906 - Inventories 610,279 741,173 260,852 1,612,304 - Interest receivable 484,868 234,027 - 718,895 158,518 Restricted cash and investments:
Customer deposits - 1,150,195 - 1,150,195 - Connection fees 11,471,818 - - 11,471,818 - Total current assets 85,548,812 41,587,503 4,434,224 131,570,539 23,169,855 Noncurrent assets:
Capital assets (net of accumulated depreciation) (note III.E):
Land 765,660 451,334 - 1,216,994 - Buildings and improvements 3,370,758 640,064 1,657,657 5,668,479 - Furnishings and equipment 1,223,340 1,245,830 448,261 2,917,431 - Vehicles 259,022 845,529 1,433,449 2,538,000 - Distribution system 64,074,933 52,991,831 - 117,066,764 - Construction-in-progress 24,249,796 4,384,469 3,017,931 31,652,196 - Total noncurrent assets 93,943,509 60,559,057 6,557,298 161,059,864 - TOTAL ASSETS 179,492,321 102,146,560 10,991,522 292,630,403 23,169,855
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 4,075,270 3,012,854 2,451,380 9,539,504 264,705 Related to other post employment benefits 2,530,503 1,402,881 1,142,469 5,075,853 101,282 Total deferred outflows of resources 6,605,773 4,415,735 3,593,849 14,615,357 365,987
LIABILITIES
Current liabilities:
Accounts payable 2,999,507 2,918,470 303,349 6,221,326 73,519 Salaries and benefits payable 208,096 152,338 121,678 482,112 11,874 Interest payable 242,416 - - 242,416 - Lease agreement 1,597,343 - - 1,597,343 - Compensated absences 73,497 36,858 36,400 146,755 2,771 Due to other funds (note III.G) - - 1,016,171 1,016,171 - Unearned revenue 67,535 - 158,625 226,160 - Claims and legal services payable (note IV.B) - - - - 2,658,169 Current liabilities payable from restricted assets:
Water service prepayments - 1,150,195 - 1,150,195 - Total current liabilities 5,188,394 4,257,861 1,636,223 11,082,478 2,746,333 Noncurrent liabilities:
Lease agreement 30,077,842 - - 30,077,842 - Compensated absences 661,475 331,721 327,620 1,320,816 24,943 Claims and legal services payable (note IV.B) - - - - 7,264,802 Net pension liability 13,222,127
9,775,141 7,953,449 30,950,717 858,829 Net other postemployment benefits liability 6,196,225 3,435,114 2,797,467 12,428,806 248,000 Total noncurrent liabilities 50,157,669 13,541,976 11,078,536 74,778,181 8,396,574 TOTAL LIABILITIES 55,346,063 17,799,837 12,714,759 85,860,659 11,142,907
DEFERRED INFLOWS OF RESOURCES
Leases - 2,385,816 - 2,385,816 - Related to pensions 171,441 126,746 103,126 401,313 11,136 Related to other postemployment benefits 628,546 348,458 283,775 1,260,779 25,157 Total deferred inflows of resources 799,987 2,861,020 386,901 4,047,908 36,293
NET POSITION
Net investment in capital assets 68,059,610 60,507,237 6,557,298 135,124,145 - Restricted for:
Sewer connection fees and 11,471,818 1,150,195 - 12,622,013 - water capital improvement charges
Unrestricted 50,420,616 24,244,006 (5,073,587) 69,591,035 12,356,642
TOTAL NET POSITIO
N 129,952,044$ 85,901,438$ 1,483,711$ 217,337,193 12,356,642$ Beginning adjustment to unrestricted net position 411,721 Current adjustment to unrestricted net position 952,326 Net position of business-type activities 218,701,240$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
Business-type Activities - Enterprise Funds
See notes to the basic financial statements.
35 74
Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
OPERATING REVENUES
Charges for sales and services 27,414,752$ 40,656,924$ 282,560$ 68,354,236$ $6,741,562
OPERATING EXPENSES
Salaries and benefits 8,497,733 5,639,108 5,591,806 19,728,647 681,764 Materials and supplies:
Water purchases - 23,909,286 - 23,909,286 - Utilities 1,125,989 1,009,677 36,703 2,172,369 - Chemicals 870,022 - - 870,022 - Other 337,132 485,394 635,389 1,457,915 - Services:
Maintenance projects 413,658 472,136 105,407 991,201 - Other 1,399,242 1,690,092 390,929 3,480,263 44,115 Insurance 482,000 262,100 404,800 1,148,900 - Claims and legal expenses - - - - 1,694,032 General administration 3,020,625 2,661,332 1,911,753 7,593,710 478,028 Depreciation 2,459,962 1,679,636 640,042 4,779,640 - Total operating expenses 18,606,363 37,808,761 9,716,829 66,131,953 2,897,939 OPERATING INCOME (LOSS) 8,808,389 2,848,163 (9,434,269) 2,222,283 3,843,623
NONOPERATING REVENUES AND (EXPENSES)
Grants (4,146) - 3,440,090 3,435,944 - Interest 415,826 1,432,310 - 1,848,136 370,179 Other 10,359 21,741 59,241 91,341 61,528 Total nonoperating revenues 422,039 1,454,051 3,499,331 5,375,421 431,707
INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 9,230,428 4,302,214 (5,934,938) 7,597,704 4,275,330
CONTRIBUTIONS AND TRANSFERS
Capital contributions 941,234 1,129,527 1,317,208 3,387,969 - Transfers in (note III.G) - - 5,384,348 5,384,348 - Transfers out (note III.G) (384,571) (145,986) (42,667) (573,224) (157,200) Total contributions and transfers 556,663 983,541 6,658,889 8,199,093 (157,200) CHANGE IN NET POSITION 9,787,091 5,285,755 723,951 15,796,797 4,118,130 NET POSITION - BEGINNING 120,164,953 80,615,683 759,760 8,238,512 NET POSITION - ENDING 129,952,044$ 85,901,438$ 1,483,711$ 12,356,642$ Current adjustment 952,326
Change in net position of business-type activities 16,749,123$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Business-type Activities - Enterprise Funds
See notes to the basic financial statements.
36 75
Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from service charges and other revenues 27,342,302$ 40,438,985$ 9,432$ 67,790,719$ 6,803,897$ Cash paid for salaries and benefits (7,113,492) (4,910,045) (4,237,775) (16,261,312) (433,108) Cash paid for supplies and materials (1,436,450) (25,682,322) (631,179) (27,749,951) - Cash paid for general administration (3,020,625) (2,661,332) (1,911,753) (7,593,710) (498,222) Cash paid for services (2,294,900) (2,424,328) (901,136) (5,620,364) (562,588) Cash paid for insurance premiums and claims - - - - (2,607,794) Net cash provided by (used in) operating activities 13,476,835 4,760,958 (7,672,411) 10,565,382 2,702,185 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash transfers from (to) other funds (384,571) (145,986) 5,341,681 4,811,124 (157,200) Cash received from grants and other governments - - 3,219,192 3,219,192 - Cash transfers for interfund borrowing - - (1,115,956) (1,115,956) (2,344,000) Net cash provided by (used in) noncapital financing activities (384,571) (145,986) 7,444,917 6,914,360 (2,501,200) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Sewer connection fees and water capital improvement charges 153,795 30,850 - 184,645 - Payment of bonds payable (1,561,098) - - (1,561,098) - Proceeds from sale of property - 6,547 - 6,547 - Acquisition of capital assets (8,522,450) (2,723,546) (13,379) (11,259,375) - Net cash used in capital and related financing activities (9,929,753) (2,686,149) (13,379) (12,629,281) - CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments 100,893 1,219,466 6,540 1,326,899 277,618 NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 3,263,404 3,148,289 (234,333) 6,177,360 478,603 CASH AND INVESTMENTS, BEGINNING OF YEAR 79,706,575 29,592,976 392,958 109,692,509 22,532,734 CASH AND INVESTMENTS, END OF YEAR 82,969,979$ 32,741,265$ 158,625$ 115,869,869$ 23,011,337$ Cash and investments 71,498,161$ 31,591,070$ 158,625$ 103,247,856$ 23,011,337$ Restricted cash and investments 11,471,818 1,150,195 - 12,622,013 - Cash and investments, end of year 82,969,979$ 32,741,265$ 158,625$ 115,869,869$ 23,011,337$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) 8,808,389$ 2,848,163$ (9,434,269)$ 2,222,283$ 3,843,623$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) by operating activities:
Depreciation 2,459,962 1,679,636 640,042 4,779,640 - (Increase) in prepaid expenses - - - - - (Increase) decrease in accounts receivable (72,450) (254,390) (38,795) (365,635) 807 (Increase) decrease in inventory 75,157 (75,529) (78,343) (78,715) - Increase (decrease) in accounts payable 821,536 (202,437) 119,257 738,356 12,293 Increase (decrease) in accrued payroll 12,019 28,754 30,548 71,321 (4,745) Increase in compensated absences 46,251 33,135 57,618 137,004 2,262 (Decrease) in unearned revenue - - (234,333) (234,333) - Increase in water service prepayments - 36,451 - 36,451 - (Decrease) in claims and legal services payable - - - - (1,464,723) Increase (decrease) in net pension liability (135,968) (161,705) 819,495 521,822 160,299 Increase in net other postemployment benefits liability 1,461,939 828,880 446,369 2,737,188 90,841 Adjustment for revenues and expenses classified as nonoperating - - - - 61,528 Total adjustments 4,668,446 1,912,795 1,761,858 8,343,099 (1,141,438) Net cash provided by (used in) operating activities 13,476,835$ 4,760,958$ (7,672,411)$ 10,565,382$ 2,702,185$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:
Capital additions (787,439)$ (1,098,677)$ (1,289,034)$ (3,175,150)$ -$ C
apital contributions 787,439 1,098,677 1,289,034 3,175,150 -
CITY OF SIMI VALLEY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Business-type Activities - Enterprise Funds
See notes to the basic financial statements.
37 76
Pension
and Other
Private- Postemploymen t
Purpose Benefits (OPEB) Custodial
Trust Funds Trust Funds Funds
ASSETS
Cash and investments:
Held by City (note III.A) 2,432,244$ - $ 7,309,965$ Held by bond trustee (note III.A) 2,158,359 - 1,060,605 Restricted cash and investments held with Pension Trust (note III.A) - 1,413,742 - Restricted cash and investments held with OPEB Trust (note III.A) - 3,265,903 - Accounts receivable - - 8,912 Interest receivable 10,096 - - Capital assets not being depreciated (note V.C) 1,124,174 - - TOTAL ASSETS 5,724,873 4,679,645 8,379,482
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding (note V.D) 18,259 - - TOTAL DEFERRED OUTFLOWS OF RESOURCES 18,259 - -
LIABILITIES
Accounts payable and accrued liabilities 1,150 - 1,890 Accrued interest payable 224,855 - - Deposits - - 5,814,547 Due to bondholders - - 2,087,024 Long-term debt (note V.E):
Due within one year 1,436,305 - - Due in more than one year 12,253,294 - - TOTAL LIABILITIES 13,915,604 - 7,903,461
NET POSITION (DEFICIT)
Held in trust for other purposes (8,172,472) - - Net position restricted for individuals - - 476,021 Net position restricted for pensions - 1,413,742 - Net position restricted for OPEB - 3,265,903 - TOTAL NET POSITION (DEFICIT) (8,172,472)$ 4,679,645$ 476,021$
CITY OF SIMI VALLEY
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
See notes to the basic financial statements.
38 77
Pension
and Other
Private- Postemployment
Purpose Benefits (OPEB) Custodial
Trust Funds Trust Funds Funds
ADDITIONS
Property taxes 1,740,202$ - $ -$
Other taxes - - 364,755
Contributions - 3,545,051 -
Investment earnings (losses) 93,646 (415,053) 55,994
TOTAL ADDITIONS 1,833,848 3,129,998 420,749
DEDUCTIONS
Administrative expenses 7,249 895,788 10,024 Benefit payments - 2,639,158 -
Interest and fiscal agency expenses of former 701,696 - 333,303 Simi Valley Community Development Agency
Contributions to other governments 9,469 - -
TOTAL DEDUCTIONS 718,414 3,534,946 343,327
CHANGE IN NET POSITION 1,115,434 (404,948) 77,422 NET POSITION (DEFICIT) - BEGINNING (9,287,906) 5,084,593 398,599 NET POSITION (DEFICIT) - ENDING (8,172,472)$ 4,679,645$ 476,021$
CITY OF SIMI VALLEY
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
See notes to the basic financial statements.
39 78
79 NOTES TO THE BASIC
FINANCIAL STATEMENTS
NOTES TO THE BASIC
FINANCIAL STATEMENTS
80 81
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
I. Summary of significant accounting policies ............................................................. 42 A. Reporting entity ............................................................................................... 42 B. Financial st atements ....................................................................................... 42 C. Measurement focus, basis of accounting, and financial statement presentation ................................................................................................ 44 D. Implementation of new accounting pronouncements .................................. 47 E. Assets, liabilities, deferred outfl ows/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. Postemployment benefits other than pensions ............................................. 51
11.Deferred outflows/inflows of resources ......................................................... 51
12.Fund balance/net position ............................................................................. 52
13.Net position flow assumption ........................................................................ 53
14.Estimates ..................................................................................................... 54 II. Stewardship, complian ce, and accountability .................................................... 54 A. Budgetary in formation .................................................................................... 54 B. Deficit fund equity ............................................................................................ 55 III. Detailed notes on all funds ................................................................................... 55 A. Cash and in vestments ..................................................................................... 55 B. Loans rece ivable .............................................................................................. 61 C. Accounts r eceivable ........................................................................................ 65 D. Lease recei vable .............................................................................................. 66 E. Capital assets ................................................................................................... 68 F. Construction commitments ............................................................................ 70 G. Interfund receivables, payab les, and transfers ............................................. 70 H. Long-term debt ................................................................................................. 72 I. Fund balance desi gnations ............................................................................. 79 J. Assessment dist rict bonds ............................................................................. 80 K. Conduit debt obligations .......................................................................................... 80 IV. Additional notes to the basi c financial statements ............................................ 80 A. Arbitrage rebate liability .................................................................................. 80 B. Risk manage ment ............................................................................................ 81 C. Deferred compensation plans ......................................................................... 81 D. Pension plans................................................................................................... 82 E. Other postemploym ent benefits ..................................................................... 93 F. Contingencies and subsequent even ts ......................................................... 100 G. Governmental Accounti ng Standards Board ................................................ 100
40 82
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
V. Successor Housing Agency to the Si mi Valley Community Development Agency Private-Pur pose Trust Fund .............................................................. 101 A. Reporting entity ............................................................................................... 101 B. Cash and in vestments ..................................................................................... 101 C. Capital assets ................................................................................................... 101 D. Deferred outflow of resources ........................................................................ 102 E. Long-term debt ................................................................................................. 102 F. Fiduciary ne t deficit ......................................................................................... 103 G. Insura nce .......................................................................................................... 104 41 83
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
I. Summary of significant accounting policies
A. Reporting entity
The City of Simi Valley (City) is a municipal corporation governed by an elected mayor and four-member council. The accompanyi ng 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 pr ovides 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 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 two entities listed above are treated as “blended” component units based on the following criteria:
x The members of the City Council also ac t as the governing body of each entity.
x Each entity is managed by employees of th e 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 or the Simi Valley Public Facilities Financing Authority.
B. Financial statements
The basic financial statements of the City are comprised of:
x Government-wide financial statements,
x Fund financial statements,
x Budget-to-actual comparisons for the General fund and major special revenue fund, and
x Notes to the basic financial statements.
In addition, supplementary information is provided for:
x Non-major governmental funds,
x Budget-to-actual comparisons for non-major special revenue funds, x Internal service funds, and
42 84
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
x Fiduciary funds.
The government-wide financial st atements (i.e., t he 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. Fo r 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:
x 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 ba lances of any bonds, mort gages, 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 inve stment in capital assets. Rather , that portion of the debt is included in the same net position component as the unspent proceeds.
x 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.
x Unrestricted net position - This component of net position consists of net position that does not meet the definition of “net investment in capital assets” or “restricted.”
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 whic h 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) 43 85
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
charges to customers or applicants who purchas e, use, or directly benefit from goods, services, or privileges provided by a giv en function or segment; and (2) grants and contributions that are restri cted 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 ar e provided for governmental funds, proprietary funds, and fiduciary funds, even though the latte r are excluded from the government-wide financial statements. Fund financi al 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 fr om providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the sanitation, water, and transit funds, and of the City’s internal service funds are charges to customers for sales and services.
Operating expenses for enterprise funds and inte rnal 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 acc ounting refers to when transactions are recorded regardless of the measurement focus applied.
The government-wide financial stat ements are repor ted using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Under t he economic resources measurement focus, all (both current and long-term) economic re sources 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 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. Thei r reported fund balances (net current assets) are considered a measure of “ava ilable 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, 44 86
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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 m easurable and available. Rev enues 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 re venues 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 curr ent fiscal period are all considered to be susceptible to accrual and so have been re cognized 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 primar y operating fund. It acco unts 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 Co mmunity Development Agency Housing Administration fund accounts for housing set-aside funds used to reimburse the costs associated with the administr ation and coordination of affordable housing programs, processing of affordable housing agreement s, amendment or upda te of the housing element of the general plan, as well as an y general plan amendments for affordable housing projects.
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.
45 87
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Enterprise funds:
Simi Valley Sanitation fund accounts for providing wastew ater collection and treatment services in all the incorporated areas within the City, 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% the City’s 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 fr om general liability, property, automobile, physical damage, employee fiduc iary, 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 thr ough 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 cl ass 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 permitti ng computer systems. It is financed through contributions paid by each operating program based on allocated use of the systems.
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 fiduciary funds.
46 88
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Custodial funds account 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 funds account 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 Postemployment 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, 2023. The financial statements included herein apply the requirements and provisio ns of these statements, including necessary retroactive adjustments to financial statement classifications and presentations.
GASB Statement No. 94
During the fiscal year ended June 30, 2023, the City implemented GASB Statement No. 94, Public-Private and Public-Public Part nerships (PPPs) and Av ailability Payment Arrangements (APAs). This Statement establishes the definitions of PPPs and APAs and provides uniform guidance on accounting and financial reporting for transactions that meet those definitions. A PPP is an arrangement in which a government (the transferor) contracts with an operator to provide public services by conveying control of the right to operate or use a nonfinancia l asset, such as infrastructure or other capital asset, for a period of time in an exchange or exchange-lik e transaction. An APA is an arrangement in which a government compensates an operator for activities that may include designing, constructing, financing, maintaining, or oper ating an underlying nonfinancial asset for a period of time in an exchange or exchange-lik e transaction. The implementation of this new accounting standard did not have an impact on the City’s financial statements.
GASB Statement No. 96
During the fiscal year ended June 30, 2023, the City implemented GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA). The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financi al reporting requirem ents for SBITAs; (b) improving the comparability of financial statements am ong governments that have entered into SBITAs; and (c) enhancing the understandabi lity, reliability, relevance, and consistency of information about SBITAs. This Statement establishes standards of accounting and financial reporting for SBITAs by a government end user (a government). 47 89
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
The requirements of this Statement apply to the financial statement of all state and local governments.
Under this Statement, a governm ent is required to recognize a SBITA liability and an intangible right-of-use SBITA asset. The implementation of this new accounting standard resulted in recognition of SBITA liability and SBITA asset in the City’s June 30, 2023 financial statements. See also notes III.E and III.H.
E. Assets, liabilities, defe rred 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 In vestment Policy, authorize t he government to invest in obligations of the U.S. Tr easury, the State and local agenc ies, Federal Government- Sponsored Agency Securities, highly rat ed medium-term notes issued by U.S. corporations, the State Treasurer’s Investment Pool, and other public agency investment pools meeting specific criteria.
Investments are reported at fa ir value. The State Treasure r’s Investment Pool and the California Asset Management Pool (CAMP) oper ate 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 repres entative 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 repor ted in the fund financial st atements, are offset by a fund balance non-spendable account in applicable governmental funds to indicate that they are not available for appropriation a nd 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 48 90
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
unsecured tax rolls, and State Board of Equalizat ion for the utility property tax rolls. The tax levy to support general operations is limited to one percent of fu ll value at time of purchase with subsequent annual increases up to two percent. Increase to full value is allowed for property improvements or upon c hange in ownership. Amounts required to finance voter-approved debt are excluded from this limitation and are calculated and levied each fiscal year. Property taxes are levied on both real and personal property.
Secured property taxes are levied July 1, pay able 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 pr operty 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 cu rrent 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 purch ased rather than capitalized as an asset. If inventory amounts are significant at year-end they are reported as an asset. Inventory amounts in the government al funds were not significant in fiscal year 2022-23.
In proprietary funds, inventories are valued at cost. They are accounted for using the consumption method, on a first-in/first-out basis.
5. Restricted assets
Customer deposits and connection fees are classified as restricted assets on the statement of net position, business-type activities. Customer deposits offset the liability for water service prepayments, and the cash received for water and sewer 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 estimated useful life in excess of one year and an initial, individual cost of $25,000 for infrastructure and building improvements, $50,000 for buildings, $100,000 for intangibles, and $5,000 or more for all others. Such assets are recorded at historical cost. D onated infrastructure assets are recorded at estimated historical cost provided by the developer. Donated c apital assets, donated 49 91
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
works of art and similar item s, and capital assets receiv ed 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 asset’s useful life are not capitalized.
Major outlays for capital assets and improv ements are capitalized as projects are completed.
Depreciation or amortization is recorded 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 leve ls, 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 financ ial statements and proprietary fund types in the fund financial statements long-term debt and other long-term obl igations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statements of net position. Bond premiu ms 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.
50 92
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
9. Pensions
For purposes of measuring the net pension liab ility, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Publ ic Employees’ Retirement System (CalPERS) plan and Public Agency Re tirement Services (PARS) Retirement Enhancement plan (Plans) and additions to/de ductions 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. Postemployment benefits other than pensions
For purposes of measuring t he 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 r eported 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 inve stment 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 secti on for deferred 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) unt il then. The City reported the following items related to deferred outflows of resources:
x The deferred loss on debt refunding related to the 2014A Lease Revenue Refunding Bond is reported in the governm ent-wide statement of net position, which results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount has an amortization period of 20 years and will be fully amortized when the debt is fully matured on October 1, 2034.
x Deferred outflows of resources related to pensions and other postemployment benefits (OPEB) are reported in the government-wide stat ement of net position and the proprietary funds statement of net position. These amounts arise from contributions to the plan made after the actuarial measurement date, as well as changes in actuarial assumptions, differences between actual and projected experiences, and differences between actual and expected earnings on plan 51 93
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
investments. These amount s are amortized and reported as a component in pension and OPEB expense in future fiscal years.
In addition to liabilities, the statements of net pos ition and governmental funds balance sheets will sometimes report a s eparate section for deferred inflows of resources. This separate financial statement el ement, deferred inflows of re sources, 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 reported the following items related to deferred inflows of resources:
x Deferred inflows of resources related to lease revenues from leased assets under GASB Statement No. 87 are reported in the government -wide statement of net position and governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources until amortized.
x Deferred inflows of resources relat ed to pensions and other postemployment benefits (OPEB) are reported in the government-wide stat ement of net position and the proprietary funds statement of net position. These amounts arise from changes in actuarial assumptions, differences between actual and projected experiences, and differences between actual and expected earnings on plan investments. These amount s are amortized and reported as a component in pension and OPEB expense in future fiscal years.
x Unavailable revenues are reported in t he governmental funds balance sheet. The governmental funds report unavailable rev enues from various 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.
12. Fund balance/net position
Fund balance amounts are reported within one of the fund balance categories listed below.
x Nonspendable fund balance represents funds that are not immediately available to support government operations. Th e City’s nonspendable fund balance represents long-term receivabl es that will not be convert ed to cash in the near future.
x Restricted fund balance has constraints impos ed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
x 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 remo ves or changes the specified use 52 94
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
through the same type of formal ordinance action taken to establish the commitment.
x 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.
x 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 Gener al 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.
Net position amounts are reported within one of the categories listed below.
x Net investment in capital assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.
x Restricted net position is the porti on of net position that has constraints imposed by external parties such as creditors, gr antors, or contributor s; legislation or regulations of other governments; or imposed by constitutional provisions.
x Unrestricted net position is the portion of net position that consists of the remaining net position that does not meet the definition of “net investments in capital assets” or “restricted net position.”
When both restricted and unrestric ted net position are availabl e, the City’s policy is to apply restricted first and then unrestricted net position as needed.
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 posit ion 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 53 95
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
policy to consider restricted net position to have been depleted before unrestricted net position is applied.
14. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of Americ a (U.S. 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 Ca lifornia and does not legally require a budget. However, the City Counc il annually adopts budgets on a basis consistent with generally accepted accounting principles for t he General fund, enterprise funds, special revenue funds, and internal service funds. A nnual budgeting for operations facilitates management evaluation and control. Projec t-length budgets are adopted for the capital project funds. Appropriations lapse at year end for all funds, with the exception of capital projects funds and grant funds, which have pr oject length budgets. Budgets are not adopted for the City’s fiduciary funds.
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 f und 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 a ll funds except the General fund for which, by policy, the level of budgetar y control is the department le vel. 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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Excess of expenditures over appropriations
For the fiscal year ended June 30, 2023, there were no funds where expenditures exceeded appropriations.
B. Deficit fund equity
The Planning Grant fund and Landscape Maintenance District No. 1 fund had deficit fund balances of $17,597 and $1,088,835, respectively, as of June 30, 2023. The City expects to eliminate deficits from future revenues or transfers from the General Fund.
III. Detailed notes on all funds
A. Cash and investments
The cash balances of all funds held by the City are pooled and invested for the purpose of increasing interest earnings through investment activities. The interest earned on these investments is allocated to participat ing funds based on their average daily cash balances.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Cash and investments at June 30, 2023 are classified as follows:
Statement of net position:
Cash and investments 266,943,433$
Cash and investments held by bond trustee 12,622,013
Fiduciary funds:
Cash and investments 9,742,209
Cash and investments held by bond trustee 3,218,964
Restricted investments held by Pension Trust 1,413,742
Restricted investments held by OPEB Trust 3,265,903
Total cash and investments 297,206,264$
Cash and investments at June 30, 2023 consisted of the following:
Cash on hand 6,394$
Deposits with financial institutions 23,699,784
Investments 273,500,086
Total cash and investments 297,206,264$
The following table identif ies 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 pr ohibitions and limitations set forth in section 8. 1 of the City’s Statement of Investment Polic y. 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 in vested in accordance with the provisions of debt agreements of the City.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Investment Type Max.
Maturity
Authorized
Limit
Max.
Maturity
Authorized
Limit
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 Warrants 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 Da ys 40%
Commercial Paper 270 Days 25% 270 Da ys2 5 %
Non Negotiable CD’s 5 Years None 5 Years 30%
Negotiable CD’s 5 Y ears 30% 5 Y ears 30%
Private Deposit Placements 5 Years 30% 5 Years 30%
Repurchase Agreements 1 Year 100% 1 Year 100%
Reverse Repurchase Agreements 92 Da ys 20% * *
Medium Term Notes 5 Years 30% 5 Years 30%
Money Market Mutual Funds N/A 20% N/A 20%
Collateralized Bank Deposits 5 Years 100% 5 Years 25%
Mortgage Pass-through Securities 5 Years 20% * *
Local Agency Investment Fund (LAIF) N/A $75 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 Policy (with limited authorization for repurchase or reverse repurchase agreements)
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 securiti es maturing in 5 years or less from the settlement date.
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:
1 Year 1-2 2-5
Amount Or Less Years Years
U.S. Agencies $ 44,322,318 $ 17,453,508 $ 5,453,000 $ 21,415,810 U.S. Treasuries 34,383,526 3,930,860 4,762,990 25,689,676 U.S. Corporates 33,681,666 10,187,568 6,162,550 17,331,548 Money market mutual funds 5,334,922 5,334,922 - - LAIF 147,879,046 147,879,046 - - Held by bond trustees:
Money market mutual funds 3,218,963 3,218,963 - - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 282,416 282,416 - - Mutual Funds 4,397,229 4,397,229 - - Total $ 273,500,086 $ 192,684,512 $ 16,378,540 $ 64,437,034 Remaining Maturity in Years
Investment Type
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investmen t. This is measured by the a ssignment of a rating by a nationally recognized statistical rating or ganization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agr eements, and the actual rating as of year-end for each investment type.
Minimum
Legal
Amount Rating Aaa/Aaa-mf Aa1 Aa2 Aa3 A1 A2 A3 B2 Not Rated U.S. Agencies 44,322,318$ N/A 44,322,318$ -$ -$ -$ -$ -$ -$ -$ -$ U.S. Treasuries 34,383,526 N/A 34,383,526 - - - - - - - - U.S. Corporates 33,681,666 A3 2,812,800 - 4,782,810 4,568,378 9,308,197 5,321,071 6,888,410 - Money market mutual funds 5,334,922 N/A - - - - - - - - 5,334,922 LAIF 147,879,046 N/A - - - - - - - 147,879,046 Held by bond trustees:
Money market mutual funds 3,218,963 N/A 3,218,963 - - - - - - - - Money market mutual funds 282,416 N/A - - - - - - - - 282,416 Mutual Funds 4,397,229 N/A - - 956,465 - - 50,192 - 39,087 3,351,485 Total 273,500,086$ 84,737,607$ -$ 5,739,275$ 4,568,378$ 9,308,197$ 5,371,263$ 6,888,410$ 39,087$ 156,847,869$ Moody's Ratings as of Year End
Investment Type
Restricted investments held by
Pension and OPEB Trusts:
Concentration of Credit Risk
In addition to the limitations stipulated in the Authorized Investments table, the City’s investment policy lists the following limitations:
x Authorized supranational securities must have a maximum maturity not exceeding five years from the date of trade settlement and shall be ra ted at least “AA” or its equivalent by a nationally recognized stat istical rating organization (NRSRO) at the time of purchase. Investments in supranational securities shall not exceed 30% of the portfolio.
x Medium-Term Notes issued by corporations organized and operating within the United States or by deposit ory 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 pur chase. 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.
x State Obligations and Local Agency Iss ues 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 issu er and the aggregate investment in municipal bonds may not exceed 30% of the portfolio.
x No more than 5% of the portfolio shall be invested in the commercial paper of any one issuer and the aggregate inve stment in commercial paper shall not exceed 25% of the portfolio.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
x Purchases of negotiable cert ificates of deposit may not exceed 30% of the portfolio with no more than 5% held in any one issuer.
x Investments in LAIF, pursuant to Calif ornia Government C ode Section 16429.1, which has a maximum of $75 million per agency/account.
x 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 doc uments for each bond issue. For bond proceeds invested in LAIF, the City fo llows California’s provisions stating bond proceeds are one-time deposits, have no maximum deposit amount, and are maintained on thirty day increments.
x 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. 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 mort gage notes with a market value equal to 150% of the total deposits.
Pursuant to California Government Code Se ction 53653, the City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC.
To protect investments against custodial credi t risk caused by the collapse of individual securities dealers, all securities owned by the City are held by the City’s custodial bank, a third party bank trust department, acting as agent for the City under the terms of a custody agreement.
Investments in any one issuer (other than U.S. Treasury Obligations, money market mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:
Issuer Investment Type Reported Amount
Federal Farm Credit Bank U.S. Agencies 18,033,220$
Federal Home Loan Bank U.S. Agencies 11,910,060
Federal Home Loan Mortgage Corporation U.S. Agencies 3,265,720 Federal National Mortgage Association U.S. Agencies 11,113,318
As of June 30, 2023, the City had no investments which were not held in the City’s name.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Investment in State Investment Pool
The City is a voluntary participant in LAIF which is regulated by California Code Sections 16429.1-16429.4 under the ov ersight 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 Industr ial 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 inve stment in this pool is reported in the accompanying financial statements at amount s 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 availabl e 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 meas urements 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;
Level 2: Investments reflect prices based on inputs other than quoted prices included within Level 1, t hat are observable for an asset or liability either directly or indirectly; and,
Level 3: Investments reflect prices bas ed on unobservable inputs for an asset or liability.
The City has the following fair value measurements as of June 30, 2023:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Amount Level 1 Level 2 Level 3
U.S. Agencies $ 44,322,318 -$ 44,322,318$ -$ U.S. Treasuries 34,383,526 - 34,383,526 - U.S. Corporates 33,681,666 - 33,681,666 - Held by bond trustees:
Money market mutual funds 3,218,963 - 3,218,963 - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 282,416 282,416 - - Mutual Funds 4,397,229 4,397,229 - - Total investments measured at fair value: 120,286,118 4,679,645$ 115,606,473$ - $ Investments not subject to fair value measurement hierarchy:
Money market mutual funds 5,334,922
LAIF 147,879,046
Total investments: $ 273,500,086
Fair Value Hierarchy Category
Investment Type
The City and the third-party trustees that hold the City’s assets utilize the market approach in valuing the investment portfolio through the use of the pricing service that utilize matrix pricing. The market approach utilizes prices and other relevant data from market transactions for similar assets.
B. Loans receivable
The City utilizes multiple sources for funding projects designed to improve, produce, and preserve low- and moderate-income housing units. These include the City Local Housing fund, the CalHome fund, the HOME fund, and the Successor Housing Agency to Community Development Agency (Agency) H ousing Administration fund. One of the primary means of providing affordable housing is through negotiation with developers to incorporate affordable units within new resi dential 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
x Casa de Paz Housing, Inc., an aff iliate 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 financia l assistance for the acquisition and rehabilitation of a 14-unit apartment comp lex, 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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
x 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.
x Paseo Simi Senior Apartments, L.P., 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 mu ltifamily senior apartment complex located at the southeast co rner of Tapo Canyon Road and Avenida Simi. The agreement restricts the rental of 86 units to very lo w- and low-income senior households. Interest accrues up to the end of the seventh year following the commencement of bond amortization. Repayment of the note is to be made from residual receipts and begins in the eitghth year following commencement of bond amortization; the note becomes due and payable 55 years from the last certificate of occupancy dated December 16, 2004.
x Alamo & Fairbanks Associates, an affilia te of Cabrillo Economic Development Corporation (Plaza del Sol Apartments)
In September 2003, the Agency entered into an amended affordable housing agreement with Alamo & Fairba nks Associates, to assist with the financing for constructing and operating a 70-unit multi-family apartment project, Plaza del Sol Apartments. The agreement rest ricts 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.
x La Rahada, LLC., an affiliate of M any 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 Apartm ents, for occupancy by extremely low-income, mentally disabled, and homeles s individuals. The note is due and payable 55 years from issuance of the promissory note dated June 17, 2008.
x Peppertree SV, LLC., an affiliate of M any 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 62 104
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
permanent loan for the acquisition and r ehabilitation of a 12-unit apartment complex, Peppertree Apar tments, for occupancy by extremely low-income, mentally disabled, and homel ess 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.
x Camino Esperanza, L.P., 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 Developm ent Corporation to prov ide 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 pr oject 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 fr om issuance of the promissory note dated December 1, 2015. The second not e is due and payable 65 years from issuance of the final Certificate of Occupancy dated February 22, 2017.
x Simi Vintage Sycamore 650 L.P. (Vintage at Sycamore Senior Apartments)
In February 2020, the City entered into an affordable housing agreement with Simi Vintage Sycamore 650 L.P. (developer) to provide a loan in the amount of $3,500,000 as financial assistance to wards the development of a 99-unit multifamily senior apartment project on an approximately 2.98 acre parcel of land.
The rental of 10 apartment un its will be restricted to very low-income senior households, and 38 apartment uni ts 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 establishe d in 1981. The Program offers low interest deferred loans to lower-income homeowners. Qualif ied 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 proper ty 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.
Homebuyer Program
In response to the dissolution of state redevelopment program funding (a result of California Assembly Bill 1X 26) the Cit y Council authorized suspension of two 63 105
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
affordable housing programs - the First Ti me Home Buyer (FTHB) Program and the Mobile Home Rehab Progr am. Over its many years of operation, the FTHB program generated several different loan ty pes, the most recent of which would provide $50,000 per bedroom up to $200,000. On J une 6, 2016, the City Council approved reinstatement of the FTHB assistance program utilizing remaining grant funds from the 2011 CalHome award. The City maintains 165 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:
x 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 retir ed for every three dollars deposited in the Simi Valley Cultural Ar ts Center Foundation endowment fund or provided for operations in excess of the annual support campaign.
x El Rancho Simi Cemetery District (formerl y Simi Valley Public Cemetery District)
From fiscal years 1990-91 through 1992-93 the City funded capital improvements at the Cemetery for $256,797. This am ount 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 re pay this loan. In fiscal year 1995-96, the repayment terms of the loan were revi sed, and the Cemetery’s property tax pass-through funds were to be applied to reti re the loan until there was a change in the Cemetery’s ability to repay the loan. Effective, July 1, 2011, the County’s pass-through 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, 2023, no action has been taken.
Loans receivable (net of allowance for uncolle ctibles) balances at June 30, 2023, were as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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$ Vista Del Monte Rental Condominiums 0.0% 55 2057 175,000 - 175,000 Vintage Paseo Apartments 3.0% 55 2059 662,133 - 662,133 Plaza del Sol Apartments 3.0% 55 2060 1,900,000 548,595 2,448,595 La Rahada Apartments 3.0% 55 2063 250,000 112,792 362,792 Peppertree Apartments 3.0% 55 2068 575,000 167,301 742,301 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 3,500,000 335,425 3,835,425 Affordable Housing Program 7,870,963 1,164,113 9,035,076 Principal Due Interest Due Total
First Time Homebuyer Program:
FTHB - Successor Housing Agency 9,704,512 - 9,704,512 FTHB - LHF 1,770,200 - 1,770,200 FTHB - CalHome 60,000 - 60,000 FTHB - HOME 607,700 - 607,700 FTHB - CDBG 20,800 - 20,800 First Time Homebuyer Program Equity Share 12,163,212 - 12,163,212 Principal Due Interest Due Total
Home Rehabilitation Program:
Home Rehab - Successor Housing Agency 217,120 42,887 260,007 Home Rehab - LHF 169,375 19,013 188,388 Home Rehab - CalHome 748,208 130,757 878,965 Home Rehab - HOME 1,394,140 139,760 1,533,900 Home Rehab - CDBG 170,120 46,379 216,499 Home Rehab Earthquake. - HOME 143,306 42,992 186, 298
Home Rehab Earthquake - CDBG 63,980 19,194 83,174 Home Rehabilitation Program 0.0 - 3.0% 2,906,249 440,982 3,347,231 Total housing loans receivable 22,940,424 1,605,095 24,545,519 Other City loans receivable:
Cultural Arts Center Foundation 0.0% 146,818 - 146,818 Cemetery District 0.0% 74,397 - 74,397 Other City loans receivable 221,215 - 221,215 Total loans receivable 23,161,639$ 1,605,095$ 24,766,734$
C. Accounts receivable
Accounts receivable reported under governmental activities as of year-end are reported net of allowance for uncollectibles as follows:
Accounts
receivable
Allowance for
uncollectibles
Total accounts
receivable, net
General Fund 1,463,675 $ (355,349) $ 1,108,326 $
Special Revenue - SHA to CDA Housing Administration 56,524 - 56,524 Streets and Roads 4,649,999 - 4,649,999 Nonmajor Governmental Funds 1,448,426 - 1,448,426 Total 7,618,624$ (355,349)$ 7,263,275$
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
D. Lease receivable
On February 15, 2018, the City entered into a 14-year lease agre ement with Kaiser Permanente for property located at 3855 A Alamo St. with th e option to extend 2 times for 5 years each. The initial payment schedule includes a 37-month rent holiday with the 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 leas e 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. This lease concluded in fiscal year 2022-23.
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- 66 108
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Mobile pays an annual license fee of $58,709, in creasing 5% annually and 12.5% at the license renewal date.
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 years each.
In August 2020, Sprint was acquired by Cr own Castle which succeeds Sprint in maintaining this license agreement. Crown Castle pays an annual license fee of $45,485, increasing 5% annually. This lease concluded in fiscal year 2022-23.
At June 30, 2023, the lease receivable and defe rred inflows of resources for the above leases were $12,289,003 and $11,464,483, respectively. A summary of annual lease payments is presented below:
Year Ending
June 30: Lease Receivable
2024 695,396 $
2025 655,046
2026 693,161
2027 732,930
2028 774,425
2029-2033 2,924,323
2034-2038 2,888,074
2039-2043 2,434,715
2044-2048 112,303
2049-2053 124,538
2054-2058 138,106
2059-2062 115,986
12,289,003$
67 109
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
E. Capital assets
Capital asset activity for the year ended June 30, 2023, 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 15,556,202 13,886,122 (11,206,814) 18,235,510 Total capital assets, not being depreciated 26,178,013 13,886,122 (11,206,814) 28,857,321 Capital assets, being depreciated:
Buildings and improvements 61,066,552 1,017,042 (1,017,043) 61,066,551 Furnishings and equipment 16,208,412 1,994,989 (1,988,608) 16,214,793 Vehicles 7,209,481 687,153 (202,185) 7,694,449 Infrastructure 354,853,183 16,430,581 (1,525,644) 369,758,120 Total capital assets being depreciated 439,337,628 20,129,765 (4,733,480) 454,733,913 Capital assets, being amortized:
Intangibles 11,276,078 232,190 - 11,508,268 Right-of-use leases 2,606,803 - - 2,606,803 Right-of-use SBITAs - 290,504 - 290,504 Total capital assets being amortized 13,882,881 522,694 - 14,405,575 Less accumulated depreciation for:
Buildings and improvements (29,599,654) (1,506,747) - (31,106,401) Furnishings and equipment (12,467,679) (692,330) 15,926 (13,144,083) Vehicles (5,668,104) (518,001) 143,898 (6,042,207) Infrastructure (187,087,660) (8,149,980) - (195,237,640) Total accumulated depreciation (234,823,097) (10,867,058) 159,824 (245,530,331) Less accumulated amortization for:
Intangibles (8,413,896) (394,079) - (8,807,975) Right-of-use leases (86,893) (86,894) - (173,787) Right-of-use SBITAs - (193,669) - (193,669) Total accumulated amortization (8,500,789) (674,642) - (9,175,431) Total capital assets, being depreciated/amortized, net 209,896,623 9,110,759 (4,573,656) 214,433,726 Governmental activities capital assets, net 236,074,636$ 22,996,881 $ (15,780,470) $ 243,291,047 $
68 110
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,216,994 $ - $ - $ 1,216,994$ Construction-in-progress 21,975,091 12,082,811 (2,405,706) 31,652,196 Total capital assets, not being depreciated 23,192,085 12,082,811 (2,405,706) 32,869,190 Capital assets, being depreciated:
Buildings and improvements 14,950,026 - - 14,950,026 Furnishings and equipment 8,885,215 23,719 - 8,908,934 Vehicles 13,146,251 567,642 (40,200) 13,673,693 Distribution system 224, 414,239 4,268,101 - 228,682,340 Total capital assets being depreciated 261,395,731 4,859,462 (40,200) 266,214,993 Capital assets, being amortized:
Intangibles 54,400 - - 54,400 Total capital assets being amortized 54,400 - - 54,400 Less accumulated depreciation for:
Buildings and improvements (9,004,817) (276,730) - (9,281,547) Furnishings and equipment (5,669,922) (321,581) - (5,991,503) Vehicles (10,433,186) (742,707) 40,200 (11,135,693) Distribution system (108, 176,954) (3,438,622) - (111,615,576) Total accumulated depreciation (133,284,879) (4,779,640) 40,200 (138,024,319) Less accumulated amortization for:
Intangibles (54,400) - - (54,400) Total accumulated amortization (54,400) - - (54,400) Total capital assets, being depreciated/amortized, net 128,110,852 79,822 - 128,190,674 Business-type activities capital assets, net 151,302,937 $ 12,162,633 $ (2,405,706) $ 161,059,864 $
69 111
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Depreciation and amortization expenses were charged to functions/programs of the primary government as follows:
Governmental activities:
General government 7,976,591$
Community services 380,300
Planning 23,712
Public ways and facilities 2,426,255
Public safety 734,842
11,541,700$
Business-type activities:
Sanitation 2,459,962$
Waterworks 1,679,636
Transit 640,042
4,779,640$
Total depreciation/amoritzation expense - governmental activities Total depreciation/amortization expense - business-type activities
F. Construction commitments
The City has active construction projects as of June 30, 2023. 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:
Expenditures
Contract to date as of Remaining
Project Name Amount June 30, 2023 Commitments*
Design and Construction of Energy-Related Projects
(ESCO) 33,711,566$ 21,670,502$ 12,041,064$
Easy-Arroyo Simi Sewer Line Rehabilitation 4,595,016 2,121,372 2,473,644 SV 23-16 Walnut 2 West Tank 2.0 MG Rehabilitation 742,330 - 742,330 Hilltop 1.0 MG Water Tank Rafter Repair 549,901 - 549,901 Total Commitments 39,598,813$ 23,791,874$ 15,806,939$ * Amount includes possible contingency
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 shor t-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, 2023, is as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Due to / from other funds:
Receivable Fund Payable Fund
General Simi Valley Transit System 988,430$
Nonmajor governmental 2,205,683
SHA to CDA Housing Administration General 459
Nonmajor governmental General 2,914
Simi Valley Transit System 27,741
Total 3,225,227$
Advances to / from other funds:
Receivable Fund
Payable Fund
General Nonmajor governmental 3,348,380$
Total 3,348,380$
The composition of interfund transfers for t he fiscal year ended June 30, 2023, is as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Transfers From Tra nsfe rs To Amount Purpose
General fund Streets and roads $ 4,076,241 Fund street and road programs Nonmajor governmental
funds 7,123,185
Fund Landscape zones, scheduled debt
service, and contributions to
replacement funds
11,199,426
Nonmajor
governmental funds General fund 3,838,157
Fund gas tax, development agreements,
and State Supplemental Law
Enforcement Services
Streets and roads 4,960,415 Fund street projects Nonmajor governmental
funds 968,418 Fund transit operations
Proprietary funds 5,384,348 Fund transit operations 15,151,338
Total governmental funds 26,350,764
Transfers From
Tra nsfe rs To Amount Purpose
Proprietary funds General fund 604,524
Contributions for pension and OPEB
costs
Nonmajor governmental
funds 125,900
Contributions to replacement funds and
fund capital project funds
730,424
Total proprietary funds 730,424
Total transfers $ 27,081,188
H. Long-term debt
The Simi Valley Public Facilities Finan cing 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:
x City of Simi Valley 2014A Lease Revenue Refunding Bonds (LRRB):
Original issue amount $18,795,000; interest rates at 2.00% 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 ref unded bonds. The annual lease/debt service 72 114
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
payments will be support ed by contributions from vari ous 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 def ined in the lease agreement, notwithstanding anything in the lease agreem ent or in the indentur e 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, 2023, total interest and principal remaining on the bonds is $17,663,982.
x 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 financin g of the acquisition, construc tion, 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 1.50% to 2.50%, 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 otherwise declare any lease payments not then in default to be immediately due and payable. As of June 30, 2023, total interest and principal remaining on the 2016 NCREBs and tax-exempt bonds is $9,073,300 and $659,259, respectively.
x 2017 Tax Exempt Equipment Lease Agreement:
The City entered into an agreement with the SVPFFA as lessor and the City as lessee to provide financing for a replacement telephone system, energy efficiency upgrades including LED lighting at City faciliti es, and HVAC system replacement and improvements. The lease agreement obligates the City to make base lease payments to SVPFFA, and SVPFFA assigned such payment s to Bank of Am erica. The Simi Valley Senior Center is t he asset which was used as co llateral 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, 2023, the tota l interest and principal remaining on the issuance is $5,068,102.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
x 2018 Taxable Equipment Lease/Purchase Agreement:
The City entered into a leas e arrangement with Banc of America Leasing & Capital, LLC to provide financing for a purchase and sale agreement and pole license agreement with Southern Ca lifornia Edison for the acquisi tion of streetlights located in Simi Valley. Annual savings of $510,000 in the City’s electrical costs are estimated to be achieved through the owning of the streetlights and their conversion to LED. The newly acquired streetlights ac t as the pledged asset for this taxable financing. The stated acquisition amount for this transaction is $5,655,845. The type of debt instrument for this private placement financing is certificat es 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 ag reement, 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, 2023, total interest and principal remaining on the lease agreement is $6,244,015.
x 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 Qualit y Control Plant. The project provides enhanced electrical functions for energy savings as well as replacement and rehabilitation of outdated and worn-out equipment. The stated acquisition amount for this transaction is $33,816,566. The type of debt instrument for this private placement financing is certificates of participation/leases with a stat ed 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 acce lerate 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, 2023, total interest and principal remaining on the lease agreement is $38,270,092.
Annual debt service requirements to maturity
The annual requirements to am ortize the bonds and advances as of June 30, 2023, including interest, are as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Governmental Activities
Year Ending
June 30: Principal Interest Total
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 1,085,000 385,400 1,470,400 2029-2033 6,235,000 1,125,916 7,360,916 2034-2035 2,840,000 106,566 2,946,566 14,000,000$ 3,663,982 $ 17,663,982 $
2014A Lease Revenue Refunding Bonds
Year Ending
June 30: Principal Interest Total
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 461,034 187,923 648,957 2029-2033 2,567,167 672,891 3,240,058 2034-2037 2,407,949 177,706 2,585,655 7,125,152$ 1,948,148$ 9,073,300$
2016 New Clean Renewable Energy Bonds
2016 New Clean Renewable Energy Bonds (Tax Exempt)
Year Ending
June 30: Principal Interest Total
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 37,210 9,912 47,122 2029-2033 200,416 35,014 235,430 2034-2037 179,056 9,054 188,110 556,698$ 102,561 $ 659,259 $
75 117
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Year Ending
June 30: Principal Interest Total
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 501,171 72,670 573,841 2029-2033 2,046,459 152,437 2,198,896 4,409,524$ 658,578$ 5,068,102$
2017 Equipment Lease (Tax Exempt)
Year Ending
June 30: Principal Interest Total
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 402,759 164,878 567,637 2029-2033 2,351,728 486,460 2,838,188 2034 546,443 21,196 567,639 4,721,948$ 1,522,067$ 6,244,015$
2018 Equipment Lease/Purchase Agreement
Business-type Activities
Year Ending
June 30: Principal Interest Total
2024 1,597,343$ 722,057 $ 2,319,400 $ 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 1,750,940 568,459 2,319,399 2029-2033 9,383,719 2,213,279 11,596,998 2034-2038 10,524,860 1,072,137 11,596,997 2039-2040 3,400,303 78,796 3,479,099 31,675,185$ 6,594,907 $ 38,270,092 $
2019 Equipment Lease/Purchase Agreement
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Other long-term debt of the City is comprised of:
x Claims and legal services payable of $9,92 2,971, 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, 2023. See note IV.B for additional detail regarding this liability.
x Compensated absences liability of $8,324,450 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 (81%) is attributable to the General fund.
x Right-of-use Lease Liability
The City has entered into an agreement to l ease the library building from the County of Ventura which commenced on December 31, 2011, for a term of 50 years. The lease liability is meas ured 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 $2,433,016 and a right- of-use liability of $2,542,954 as of June 30, 2023.
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2023, were as follows:
Year Ending
June 30: Principal Interest Total
2024 35,970 $ 39,924 $ 75,894 $ 2025 38,812 39,360 78,172 2026 41,766 38,750 80,516 2027 44,838 38,095 82,933 2028 48,029 37,391 85,420 2029-2033 292,542 174,570 467,112 2034-2038 392,940 148,570 541,510 2039-2043 513,688 114,072 627,760 2044-2048 658,379 69,367 727,746 2049-2051 475,990 15,174 491,164 2,542,954$ 715,273$ 3,258,227$
77 119
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
x Right-of-use Subscription-Based Information Technology Arrangements (SBITA) Liability
The City has entered into a software sub scription agreement wit h SoftwareOne on November 9, 2020, for a term of four years. Subscription payable is measured at the present value of the subscription paymen ts expected to be made during the subscription term measured at a discount rate of 1.98%. As a result of the software subscription, the City has recorded a right-of-use asset with a net book value of $96,835 as of June 30, 2023. There was no future minimum SBITA obligation as of June 30, 2023.
x Other postemployment benefits (OPEB) liability of $83,654,875. This liability consists of the actuarially determined liability attr ibutable to governmental activities and business-type activities of the Enterprise funds. OPEB funds health insurance benefits for retired employees. The liability is li quidated from the funds to which an employee is charged. See note IV.E for additional detail regarding this liability.
x Net pension liability of $165,730,908. This liability consists of the actuarially determined liability attributable to governmental activities and business-type activities of the Enterprise funds. The liability is liquidated from the funds to which an employee is charged. See note IV.D for additional detail regarding this liability.
Changes in long-term liabilities
Long-term liability activity for the year ended June 30, 2023, was as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Beginning
Balance s Increase D ecrease
E nding
Balance s
D ue Within One
Year
Governmental activities:
2014A lease revenue refunding bond 14,845,000$ -$ (845,000)$ 14,000,000$ 890,000$ 2016 New Clean Renew able Energy Bonds (NCREBs) 7,511,274 - (386,122) 7,125,152 400,061 2016 NCREBs tax exempt 589,602 - (32,904) 556,698 33,723 2017 lease agreement 4,841,363 - (431,839) 4,409,524 444,893 2018 lease agreement 5,034,290 - (312,342) 4,721,948 328,635 Add (less) deferred amounts:
Bond premium 1,199,049 - (98,636) 1,100,413 98,636 Total bonds payable 34,020,578 - (2,106,843) 31,913,735 2,195,948 Claims and legal services 11,387,693 294,811 (1,759,533) 9,922,971 2,658,169 Compensated absences 6,020,728 852,234 (16,083) 6,856,879 685,688 Right-of-use lease liability 2,576,192 - (33,238) 2,542,954 35,970 Right-of-use SBITA liability - 189,913 (189,913) - - Net OPEB liability 54,934,400 20,688,239 (4,396,570) 71,226,069 - Net pension liability 81,888,185 67,223,374 (14,331,368) 134,780,191 - Governmental activities:
long-term liabilities 190,827,776$ 89,248,571$ (22,833,548)$ 257,242,799$ 5,575,775$ B usiness-type activities:
2019 lease agreement 33,236,284$ -$ (1,561,099)$ 31,675,185$ 1,597,343$ Compensated absences 1,330,568 137,
003 - 1,467,571 146,755 Net OPEB liability 7,360,402 5,695,110 (626,706) 12,428,806 - Net pension liability 16,692,605 17,506,224 (3,248,112) 30,950,717 - Business-type activities:
long-term liabilities 58,619,859$ 23,338,337$ (5,435,917)$ 76,522,279$ 1,744,098$
For governmental activities, pension, 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 author izes assigned amounts for specific purposes pursuant to the policy-making power s granted to him through a resolution.
Sometimes the City will fund outlays for a partic ular purpose from both restricted and unrestricted resources. In order to calcul ate the amounts to report as restricted, committed, assigned, and unassi gned fund balance in the gover nmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
J. Assessment district bonds
The City has formed several special assessment districts and subsequently issued bonds for the construction of public improvements within these dist ricts. 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 t hese special assessment bonds, and the bonds are not reported in the accompanying financial statements.
The outstanding assessment district bonds at June 30, 2023, consisted of the following:
Community Facilities District (District No. 04-1) 5,250,000$ Madera Royal (District No. 98-1) 465,000
K. Conduit debt obligations
The City has been associated with the issuanc e of several housing, mortgage, and commercial development debt issues. Thes e debt obligations were issued under provisions of State and F ederal laws that explic itly state that they do not constitute any indebtedness of the City. The total amount of conduit debt outstanding at June 30, 2023, was $9,365,000. 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:
x Multifamily Housing Revenue Bonds, Series 2002A were issued in the amount of $12,000,000 to finance the Vintage Paseo Senior Apar tments; the outstanding principal at June 30, 2023, is $7,485,000.
x 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, 2023, is $1,880,000.
IV. Additional notes to the b asic 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 ye ars or upon the maturity of the bonds, whichever is earlier. At June 30, 2023, no such amounts were due.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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 Servic e funds, General Liability and Workers’ Compensation, account for and finance the agency’s uninsured risks of loss.
Under this program, the City is self-insured for up to $1,000,000 for each general liability claim and up to $750,000 for each workers’ compensation claim. The City purchases commercial insurance for property loss, as well as for claims in excess of the preceding coverage amounts.
All operating funds of the City participate in the program and make payments to the General Liability and Workers’ Compensation funds based on actuarial estimates of the amounts needed to pay prior and current-year claims and legal expenses.
Liabilities are estimated when a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities also incl ude an amount for claims that have been incurred, but not reported as of the end of the year. Changes in the combined balances of General Liability and Workers’ Compensation funds’ claims and legal liability during the past two fiscal years are as follows:
Year ended Year ended
June 30, 2023 June 30, 2022
Unpaid claims beginning of fiscal year 11,387,693$ 13,504,945$ Incurred claims (including IBNRs and adjusted claims expense) 294,811 1,054,005 Claims payments (1,759,533) (3,171,257)
Unpaid claims, end of fiscal year 9,922,971$ 11,387,693$
C. Deferred compensation plans
The City offers its employees deferred compens ation 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 unfo reseeable emergency. Since the City neither owns the f unds nor has any administrative involvement and does not perform the investing function fo r these plans, the assets and related liabilities are not recorded in the City’s financial statements.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
D. Pension plans
The City participates in the statewide California Public Em ployees’ 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 administrati ve agent for its participating member employers. Benefit provisions under the Plans are established by State statute and local government resolution. CalPERS issues public ly available reports that include a full description of the pension plans regard ing benefit provisions, assumptions and membership information that can be found on the Ca lPERS 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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
The Plan’s provisions and benefits in effect at June 30, 2023, are summarized as follows:
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.000% @ 55 2.000% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50-63 52-67
Month benefits, as a % of eligible compensation 1.426% to 2.418% 1.000% to 2.500% Required employee contribution rates 7.00% 7.00%
Required employer contribution rates 9.76% 9.76%
Payment of unfunded liability $11,288,457 Included in tier 1 Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3.000% @ 55 2.700% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-57
Month benefits, as a % of eligible compensation 2.400% to 3.000% 2.000% to 2.700% Required employee contribution rates 9.84% 12.75%
Required employer contribution rates 19.60% 19.60%
Payment of unfunded liability $4,925,130 Included in tier 1 Miscellaneous
Safety
At June 30, 2023, reporting date, the following employees were covered by the benefit terms for each Plan.
Miscellaneous Safety
Inactive employees or benificiaries currently receiving benefits 367 114 Inactive employees entitled to, but not yet receiving, benefits 427 46 Active employees 739 181
1,533 341
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 betwe en the actuarially determined rate and the contribution rate of employees.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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 bef ore January 1, 2013, are 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 requ ired 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 9.84% 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 shar e at an actuarially determined rate; the rate is 9.76 for misce llaneous (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 em ployer rate is 19.60% of annual covered payroll for the year ended June 30, 2023. Sworn employees hired prior to July 1, 2010, are required to contribute 3.00% of this cost. The contribu tion 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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forwar d to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below:
Miscellaneous Safety
Valuation date June 30, 2021 June 30, 2021
Measurement date June 30, 2022 June 30, 2022
Actuarial cost method
Actuarial assumptions:
Discount rate 6.90% 6.90%
Inflation 2.30% 2.30%
Projected salary increase
Investment rate of return (1) 7.00% 7.00%
Mortality
Payroll growth 2.75% 2.75%
Entr
y Age Actuarial Cost Method
Derived using CalPERS'
membership data for all funds
Varies by entry age and service
(1) Net of pension plan investment and administrative expenses; includes inflation
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Discount Rate – The discount rate used to measure the total pension liability was 6.90% for both plans. To determine whether the m unicipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that woul d be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. T herefore, the current
6.90% discount rate is appropria te and the use of the municipa l bond rate calculation is not deemed necessary. The long term expected discount rate of 6.90% 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 table below reflects projected earnings on pension plan investments:
Amount for Portion of Projected Rate Projected
Miscellaneous Plan Period Period of Return Earnings
(a) (b) (c) (a) x (b) x (c)
Beginning plan fiduciary net position excluding receivables (1) 268,124,042$ 100% 6.90% 18,500,559 $ Net plan to plan resource movement - 50% 6.90% - Employer contributions 9,976,783 50% 6.90% 344,199 Employee contributions 1,977,074 50% 6.90% 68,209 Benefit paymens including refunds of employee contributions (18,658,078) 50% 6.90% (643,704) Administrative expense (167,178) 50% 6.90% (5,768) Other miscellaneous income/(expense) (2) - 50% 6.90% - Total projected Earnings 18,263,495$
Amount for Portion of Projected Rate Projected
Safety Plan Period Period of Return Earnings
(a) (b) (c) (a) x (b) x (c)
Beginning plan fiduciary net position excluding receivables (1) 166,587,354$ 100% 6.90% 11,494,527 $ Net plan to plan resource movement - 50% 6.90% - Employer contributions 7,101,836 50% 6.90% 245,013 Employee contributions 1,346,932 50% 6.90% 46,469 Benefit payments including refunds of employee contributions (10,614,261) 50% 6.90% (366,192) Administrative expense (103,856) 50% 6.90% (3,583) Other miscellaneous income/(expense) (2) - 50% 6.90% - Total projected Earnings 11,416,234$
(1) Includes any beginning of year adjustment. Contribution receivables for employee service buybacks, totalling $244,774 as of June 30, 2021, were excluded for purposes of calculating projected earnings on pension plan investments. (2) The increase/(decrease) in contribution receivables for employee service buybacks, totalling ($34,794) during fiscal year 2021-22 were excluded for pourposes of calculating projected earnings on pension plan investments. (1) Includes any beginning of year adjustment. Contribution receivables for employee service buybacks, totalling $132,376 as of June 30, 2021, were excluded for purposes of calculating projected earnings on pension plan investments. (2) The increase/(decrease) in contribution receivables for employee service buybacks, totalling ($36,961) during fiscal year 2021-22 were excluded for purposes of calculating 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 a sset 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 85 127
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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.
The asset allocation shown below reflect the allocation of PERF in its entirety as of July 1, 2022. The assets for the City’s Miscellaneous and Safety Plans are part of the PERF and are invested accordingly.
Policy Target
Actual Allocation
Allocation effective
Asset Class 9/30/2022 7/1/2022
Global Public Equity
Market capitalization weighted 33.7% 30.0%
Factor weighted 12.6% 12.0%
Private Equity 11.6% 13.0%
Income
Treasuries 3.9% 5.0%
Mortgage-backed securities 5.6% 5.0%
Investment grade corporates 5.8% 10.0%
High yield bonds 4.6% 5.0%
Emerging market sovereign bonds 2.1% 5.0%
Total fund income 1.5% 0.0%
Real assets 17.1% 15.0%
Private debt 1.8% 5.0%
Other trust level 3.8% 0.0%
Leverage
Strategic -0.3% -5.0%
Active -3.8% 0.0%
Total 100.0% 100.0%
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 pl an investment expense and inflation) are developed for each major asset class.
In determining the long-term ex pected rate of return, CalPER S took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated an, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
The table below reflects long-term expected real rate of return by asset class.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Assumed
Asset Real
Asset Class Allocation Return (a),(b)
Global equity - cap-weighted 30.00% 4.54%
Global equity - non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 asset liability management study.
Changes in the Net Pension Liability – The changes in the Net Pension Liability for each Plan follows:
Miscellaneous Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 (measured as of June 30, 2021) 326,292,458$ 268,368,816 $ 57,923,642 $ Changes for the year:
Service cost 4,710,755 - 4,710,755 Interest on total pension liability 22,487,363 - 22,487,363 Changes of assumptions 8,773,997 - 8,773,997 Differences between expected and actual experience (2,188,992) - (2,188,992) Contributions - employer - 9,976,783 (9,976,783) Contributions - employees - 1,942,280 (1,942,280) Net investment income - (20,225,029) 20,225,029 Benefit payments, including refunds of employee contribtuions (18,658,078) (18,658,078) - Administrative expenses - (167,178) 167,178 Net changes 15,125,045 (27,131,222) 42,256,267 Balance at June 30, 2023 (measured as of June 30, 2022) 341,417,503$ 241,237,594 $ 100,179,909 $ Increase/(Decrease)
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Safety Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 (measured as of June 30, 2021) 207,376,878$ 166,719,730 $ 40,657,148 $ Changes for the year:
Service cost 3,983,961 - 3,983,961 Interest on total pension liability 14,240,231 - 14,240,231 Changes of assumptions 5,399,745 - 5,399,745 Differences between expected and actual experience (3,081,312) - (3,081,312) Contributions - employer - 7,101,836 (7,101,836) Contributions - employees - 1,309,971 (1,309,971) Net investment income - (12,659,177) 12,659,177 Benefit payments, including refunds of employee contribtuions (10,614,261) (10,614,261) - Administrative expenses - (103,856) 103,856 Net changes 9,928,364 (14,965,487) 24,893,851 Balance at June 30, 2023 (measured as of June 30, 2022) 217,305,242$ 151,754,243 $ 65,550,999 $ Increase/(Decrease)
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:
1% Decrease Current Discount Rate 1% Increase
5.90% 6.90% 7.90%
Miscellaneous Plan 140,619,493$ 100,179,909 $ 66,281,239 $ Safety Plan 94,539,821$ 65,550,999 $ 41,631,786 $
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflow s of Resources Related to Pensions – For the measurement peri od ended June 30, 2022, the Cit y recognized total pension expense of $17,514,644. The Miscellaneous Plan portion of pension expense was $10,698,523, and Safety Plan portion of pensi on expense was $6,816,121. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement dates 14,037,970$ - $ Changes of assumptions 4,959,216 -
Differences between expected and actuals experience - (1,298,953) Net difference between projected and actual earnings
on pension plan investments 11,879,859 -
Total 30,877,045 $ (1,298,953) $
Miscellaneous
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement dates 7,422,771$ - $ Changes of assumptions 4,082,734 -
Differences between expected and actuals experience - (3,022,207) Net difference between projected and actual earnings
on pension plan investments 7,609,108 -
Total 19,114,613 $ (3,022,207) $
Safety
$21,460,741 reported as total def erred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period
Ending June 30: Miscellaneous Safety
2023 4,613,068$ 1,392,583 $
2024 2,492,970 1,324,016
2025 736,380 1,081,404
2026 7,697,704 4,871,632
2027 - -
Thereafter - -
Deferred Outflows/(Inflows) of Resources
At June 30, 2023, the City r eported a payable of $0 for the outstanding amount of contributions to the pension plan required for the fiscal year ended June 30, 2023.
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.
Subsequent Events - On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Bas ed on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess retu rn of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding 89 131
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability M anagement (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions, and administrative expense assumption suppor t a discount rate of 6.90% (net of investment expense but without a reduction fo r administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from
2.50% to 2.30% as recommended in the No vember 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates, and rates of salary increases that were adopted by the board. These new assumptions were reflected in the GASB Statement No. 68 accounting valuation reports for the June 30, 2022, measurement date.
Public Agency Retirement System, Retirement Enhancement Plan
Plan Description - The City established a Public Agency Retirement System, Retirement Enhancement Plan (PARS) 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 postemployment benefit plan. The plan is closed to any new employees hired after August 30, 2010. PARS is a defi ned benefit 401(a) tax-qualified mu ltiple 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 receiv e 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. Em ployees must be retired under Ca lPERS 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, 2023, totaled $1,413,742. PARS funding is based on the bi-annual actuarially r equired contribution calculated by an independent consultant.
Because the PARS benefit has been frozen, the PARS funding is no longer based on a percentage of gross payroll for Executive Management. The funding amount is based on the demographics of actual remaining plan participants, both active and retired and future plan costs derived from the bi -annual actuarial study. T he most recent study was completed for June 30, 2022.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Employees covered – At June 30, 2022 the following employees were covered under PARS:
Inactive employees or benificiaries currently receiving benefits 12 Inactive employees entitle to, but not yet receiving, beneifts 6 Active employees 2
20 Net Pension Liability – PARS
The total pension liability wa s determined by an actuarial valu ation as of the valuation date of June 30, 2022, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to t he measurement date of June 30, 2023. Any significant changes during this period have been reflected as prescribed by GASB Statement No. 67 and GASB Statement No. 68.
Actuarial Assumptions
Inflation 2.30%
Long-term expected rate of return 6.50%, net of investment expense
Mortality rates were based on the following:
Pre-Retirement: Consistent with Non-I ndustrial rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.
Post-Retirement: Consistent with Non-Industrial rates used to value CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.
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 ar e per the actuary’s investment consulting practice as of June 30, 2023. The target allocation and best estimates of the real rates of return for each major asset class are summarized in the following table:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Estimated Real Rate Real Rate
Asset Class Index Allocation of Return of Return
US Cash BAML 3-Month T-Bills 9.12% 0.51% 0.49%
US Core Fixed Income Bloomberg Barclays Aggregate 63.46% 2.07% 1.93% US Broad Equity Market Russell 3000 TR 20.66% 5.56% 3.90% Foreign Developed Equity MSCI EAFE NR 3.71% 6.89% 5.07% Emerging Markets Equity MSCI EM NR 2.15% 9.58% 6.18%
US REITs FTSE Nareit All Equity REIT 0.90% 6.96% 4.74%
Assumed Inflation - Mean 2.32% 2.32%
Assumed Inflation - Standard Deviation 1.42% 1.42%
Portfolio Real Mean Return 3.03% 2.82%
Portfolio Nominal Mean Return 5.35% 5.21%
Portfolio Standard Deviation 5.54%
City's Long-Term Expected Rate of Return 6.50%
Discount Rate
As of June 30, 2023, 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
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 1,673,997 $ 1,348,052 $ 325,945 $ Changes for the year:
Service cost - - - Interest on total pension liability 104,704 - 104,704 Effect of plan changes - - - Effect of economic/demographic gains or losses 232,692 - 232,692 Effect of assumptions changes or inputs (1,113) - (1,113) Benefit payments (128,373) (128,373) - Employer contributions - 148,678 (148,678) Member contributions - - - Net investment income - 46,099 (46,099) Administrative expenses - (714) 714 Net changes 207,910 65,690 142,220 Balance at June 30, 2023 1,881,907 $ 1,413,742 $ 468,165 $ Increase/(Decrease)
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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 liabilit y would be if it were calculated using a discount rate that is 1-per centage point lower (5.50%) or 1-percentage point higher (7.50%) than the current rate:
1% Decrease Current Discount Rate 1% Increase
5.50% 6.50% 7.50%
Total pension liability 2,062,568$ 1,881,907 $ 1,727,204 $ Fiduciary net position 1,413,742 1,413,742 1,413,742 Net pension liability 648,826$ 468,165 $ 313,462 $
The General Fund is liable for PARS plan expen ditures. 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 postemployment benefits
The City provides post-retirement health benefits to the various employee groups, which vary depending upon a retiree’s years of serv ice 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, thos e 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 Po stemployment Benefit Plan (SVOPEB) is a single-employer defined benef it 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 (NSM), sworn (police) management (SM), and sworn (police) employees’ (SE) 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 pa ys 100% of premiums for health care coverage for employee, or employee plus one dependent, fo r a specified peri od, for the sworn management and sworn units. Additionally, the Ci ty provides funding for retiree health benefits to general unit employees (GU) under a defined contribution plan, per resolution number 2017-40. The defined contribution is currently set by co ntract at 1.00% of salary for general unit members.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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 trus t 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 Years
Service Service
Non-sworn Management (1):
Employee only PEMHCA 10 years
Minimum (2)
Employee plus one dependent PEMHCA 5 years
Minimum (2)
Less than 10 to 19 20 to 24 25 or More
10 Years Years Years Years
Service Service Service Service
Sworn Management (3):
Employee only PEMHCA 10 years 20 years Lifetime coverage Employee plus one dependent Minimum (2) 5 years 20 years Lifetime coverage Sworn Employees (3):
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
Service Service
General Unit employees (4):
Employee only PEMHCA 2 years
Minimum (2)
Employee plus one dependent PEMHCA 1 year
Minimum (2)
(4) For employees who were hired on or before June 30, 2010, subject to a monthly cap of $744.05 for employee only or $1,556.06 for employee plus one dependent. Employees hired on or after July 1, 2010, are not eligible to receive retiree medical benefits.
1 additional year of each year of 20
($1,500 monthly cap)
Additional 6 months for each year over
20 ($1,500 monthly cap)
More than
10 Years
Service
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 Public Employees' Medical and Hospital Care Act (PEMHCA) minimum as described below.
(1) This benefit is only for employees hired on or before June 20, 2010. Employees hired on or after June 21, 2010, receive a contribution of $200 per month to a retiree health savings account. (2) PEMHCA Minimum monthly contribution was $59.60 in calendar year 2022 and $67.95 in calendar year 2023. (3) Sworn management employees or sworn employees hired on or after January 1, 2010, are not eligible for retiree medical benefits, but will receive a $300 per month contribution to a retiree health savings account.
94 136
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
In addition, any forfeitures of health savi ngs 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:
Category NSM SM SE GU
Active employees 128 8 101 244 Inactive employees or beneficiaries currently receiving benefits 179 48 78 73 307 56 179 317
Funding Policy and Contributions – The contribution requirement of non-sworn and sworn 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 non-sworn and sworn management and sworn employee 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, and was used to calculate the net OPEB liability measured as of June 30, 2022.
Actuarial Assumptions – Projection of benefit s are based on the substantive plan (the plan as understood by the employer and t he plan members) based on written plan documents and historical information regarding practices with respect to employer and employee contributions and othe r factors. In the June 30, 2021, actuarial valuation, the Entry-Age Normal method, using level percentage of salary 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 presente d in the table below. The unfunded actuarial assumed liability (UAAL) is amortized using a closed amortization period of thirty years. Sinc e the June 30, 2021 actuarial val uation date, the City has not made an election with respect to an asset smoothing formula, or method.
The total OPEB liability for the June 30, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
95 137
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Assumptions and methods
Actuarial cost method Entry-age, level percent of salary Amortization method Closed period, level percent of salary Amortization period 20 years
Inflation 2.30%
Assumed salary growth 2.80%
Healthcare trend rates 6.50% trending down to 4.04%
Rate of return on assets 6.00%
Mortality rate CalPERS rates
Retirement rates CalPERS rates
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. T hese ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of the arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Description Allocation Rate of Return
First AM Government Obligations Fd Cl Z 2% 2.60%
Ishares Intermediate-Term Corporate Bond ETF 3% 5.00%
Ishares iBoxx$ High Yield Corporate Bond ETF 2% 5.10%
Jensen Quality Growth or Ishares Edge MSCI USA Quality ETF 4% 7.70% Vanguard Total International Stock Index 18% 7.50%
Vanguard Total Stock Market Index 34% 7.70%
Vanguard Total Bond Market Index 37% 4.00%
Total/Average 100% 5.96%
Discount rate – Each employee group has a blended discount rate ranging from 3.70% to 3.92%, resulting in a proportionally combi ned City-wide discount ra te of 3.85%. The discount rates for each employee group are blended between the investment rate of return of 6.00%, and the municipal bond rate of 3.69%, applied to the present value of future benefit payments. This blended discount rate approach is necessary as the City funds the OPEB benefit on a pay-as-you-go basis, and as such, the valuation can not assume there are enough funds in each employee group’s assets to cover 100% of future benefit payments.
96 138
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Change in the Net OPEB Liability:
Non-Sworn Management:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 20,822,240 $ 1,355,016 $ 19,467,224 $ Changes for the year:
Service cost 382,723 - 382,723 Interest 1,236,878 - 1,236,878 Differences between expected and actual experience (3,619) - (3,619) Changes of assumptions 4,498,656 - 4,498,656 Contributions
Employer - City's contribution - 866,260 (866,260) Employer - implicit subsidy - 314,369 (314,369) Net investment income - (163,833) 163,833 Benefit payments (866,260) (866,260) - Implicit subsidy credit (314,369) (314,369) - Administrative expenses - (3,440) 3,440 Other miscellaneous income/(expense) - (3,241) 3,241 Net changes 4,934,009 (170,514) 5,104,523 Balance at June 30, 2023 25,756,249 $ 1,184,502 $ 24,571,747 $ Increase/(Decrease)
Sworn Management:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 8,787,738 $ 104,304 $ 8,683,434$ Changes for the year:
Service cost 53,920 - 53,920 Interest 515,388 - 515,388 Differences between expected and actual experience 51,902 - 51,902 Changes of assumptions 2,901,155 - 2,901,155 Contributions
Employer - City's contribution - 392,137 (392,137) Employer - implicit subsidy - 111,570 (111,570) Net investment income - (12,819) 12,819 Benefit payments (392,137) (392,137) - Implicit subsidy credit (111,570) (111,570) - Administrative expenses - (265) 265 Other miscellaneous income/(expense) - (249) 249 Net changes 3,018,658 (13,333) 3,031,991 Balance at June 30, 2023 11,806,396 $ 90,971 $ 11,715,425$ Increase/(Decrease)
97 139
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
Sworn Employees:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 23,198,107 $ 868,690 $ 22,329,417$ Changes for the year:
Service cost 422,529 - 422,529 Interest 1,381,227 - 1,381,227 Differences between expected and actual experience 226,879 - 226,879 Changes of assumptions 8,095,176 - 8,095,176 Contributions
Employer - City's contribution - 933,507 (933,507) Employer - implicit subsidy - 266,855 (266,855) Net investment income - (105,214) 105,214 Benefit payments (933,507) (933,507) - Implicit subsidy credit (266,855) (266,855) - Administrative expenses - (2,205) 2,205 Other miscellaneous income/(expense) - (2,079) 2,079 Net changes 8,925,449 (109,498) 9,034,947 Balance at June 30, 2023 32,123,556 $ 759,192 $ 31,364,364$ Increase/(Decrease)
General Unit:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 13,223,258 $ 1,408,531 $ 11,814,727 $ Changes for the year:
Service cost 506,693 - 506,693 Interest 808,447 - 808,447 Differences between expected and actual experience (73,216) - (73,216) Changes of assumptions 3,281,070 - 3,281,070 Contributions
Employer - City's contribution - 318,881 (318,881) Employer - implicit subsidy - 192,794 (192,794) Net investment income - (170,348) 170,348 Benefit payments (318,881) (318,881) - Implicit subsidy credit (192,794) (192,794) - Administrative expenses - (3,576) 3,576 Other miscellaneous income/(expense) - (3,369) 3,369 Net changes 4,011,319 (177,293) 4,188,612 Balance at June 30, 2023 17,234,577 $ 1,231,238 $ 16,003,339 $ Increase/(Decrease)
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.
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 woul d be if it were calculated 98 140
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
using a discount rate that is one percentage lower or one percentage point higher for non- sworn management, sworn management, sworn employees, and general unit employees:
1% Decrease Current Discount Rate 1% Increase
Non-sworn management 27,311,396$ 24,571,747 $ 22,228,766 $ Sworn management 13,498,485 11,715,425 10,283,494 Sworn employees 36,508,367 31,364,364 27,234,950 General unit 17,992,057 16,003,339 14,327,784
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 perc entage point lower or one percentage point higher than current healthcare cost trend rates follows:
1% Decrease Current Trend Rate 1% Increase
Non-sworn management 22,575,618$ 24,571,747 $ 26,740,100 $ Sworn management 10,138,791 11,715,425 13,659,878 Sworn employees 26,624,896 31,364,364 37,336,486 General unit 14,843,795 16,003,339 17,334,826
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB
For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $13,299,267. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
NSM SM SE GU
Differences between actual and expected experience 832,994$ -$ 3,763,020$ 615,966$ Changes of assumptions 5,600,218 - 12,136,871 7,659,569 Net difference between projected and actual earnings 76,570 7,236 50,769 76,758 Contributions subsequent to the measurement date 1,139,888 552,001 1,276,476 568,669 Total 7,649,670$ 559,237$ 17,227,136$ 8,920,962 $ Deferred Outflows of Resources
NSM SM SE GU
Differences between actual and expected experience (36,669)$ -$ (5,348,641)$ (3,549,339)$ Changes of assumptions (201,490) (32,606) (587,348) (328,443) Net difference between projected and actual earnings - - - - Contributions subsequent to the measurement date - - - - Total (238,159)$ (32,606)$ (5,935,989)$ (3,877,782)$ Deferred Inflows of Resources
$3,537,034 reported as deferred outflows related to co ntributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year 99 141
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
ending June 30, 2024. Other amounts report ed as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Report Year
Ending June 30:
NSM SM SE GU
2024 2,062,211$ (24,933) $ 1,244,933$ 1,077,473 $
2025 1,743,390 (4,923) 1,321,107 1,088,003 2026 1,637,085 758 1,343,253 1,094,241 2027 828,937 3,728 1,625,030 508,565 2028 - - 1,862,258 104,090 Thereafter - - 2,618,090 602,139 Amount
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, 2023, to assess the need for potential recognition or discl osure in the financial statements. Such events were evaluated through December 20, 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
GASB Statement No. 100
In June 2022, 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 Stat ement are effective for fiscal years ending after June 15, 2023.
GASB Statement No. 101
In June 2022, 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.
100
142
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund
A. Reporting entity
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California.
This action impacted the reporti ng entity of the City of Simi Valley that previously had reported a redevelopment agency within the r eporting 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 an d activities of the dissolved redevelopment agency are reported in a fiduciary fund (priva te-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.
B. Cash and investments
Cash and investments reported in the a ccompanying financial statements for the Successor Agency to the Simi Valley Comm unity Development Agency (CDA) Private- Purpose Trust Fund consisted of the following:
C. Capital assets
Capital asset activity for the year ended June 30, 2023, was as follows:
Cash and investments pooled with the City 2,432,244$
Cash and investments with fiscal agent 2,158,359
Total cash and investments 4,590,603$
101
143
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
D. Deferred outflows of resources
In accordance with GASB Statement No. 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 assets that applies to a future period(s) and will not be recognized as an outflow of resources (i.e., expense/expenditure) until then.
The following is a summary of deferred outflows of resour ces for the fiscal year ended June 30, 2023:
E. Long-term debt
The Community Development Agency (CDA), fo rmerly 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, 2023, follows:
x Successor Agency to Community Development Agency 2003 Tax Allocation Bonds:
Original issue amount $31,795,0 00; interest rates at 2.0% to 5.0%, fully maturing September 1, 2030. The bonds are payable in annual in stallments 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. T he City pledged, as Beginning
Balance Increases Decreases
Ending
Balance
Land 1,124,174 $ - $ - $ 1,124,174$ Capital assets 1,124,174$ - $ - $ 1,124,174$ Beginning
Balance Amortization
Ending
Balance
Fiduciary activites:
2003 tax allocation bonds
Deferred loss on refunding 46,741 $ (28,482) $ 18,259 $ 102
144
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
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 receiv es. The bonds issued were to provide financing for various capital projects, Low- and Moderate-Income Housing projects and to defease previously issued bonds. A ssembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no lo nger are deemed tax increm ent but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total interest and principal remaining on the bonds is $1 6,452,125, payable through September 2030. For the current fiscal year, principal and interest paid was $2,063,688, and the Redevelopment Property Tax Trust Fund revenue received was $1,740,202.
Annual debt service requirements to maturity, including interest, for the outstanding debt are as follows:
Fiduciary fund long-term liability activity for the year ended June 30, 2023, was as follows:
F. Fiduciary Net Deficit
As of June 30, 2023, the Pr ivate-Purpose Trust funds, had a negative net position of $8,172,472. Below is a summary of the net position.
Year Ending
June 30 Principal Interest Total
2024 1,420,000$ 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
2028 1,725,000 329,125 2,054,125
Thereafter 5,720,000 438,250 6,158,250 13,565,000$ 2,887,125 $ 16,452,125 $
Balances
June 30, 2022 Debt Incurred Debt Retired
Balances
June 30, 2023
Due Within
One Year
Fiduciary activities:
2003 tax allocation bonds 14,915,000$ - $ (1,350,000)$ 13,565,000 $ 1,420,000 $ Add (less) deferred amounts:
Bond premium 140,906 - (16,307) 124,599 16,305 Fidiuciary long-term liabilities 15,055,906$ - $ (1,366,307)$ 13,689,599 $ 1,436,305 $ 103
145
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2023
G. Insurance
The Successor Agency is covered under the City of Simi Valley’s insurance policies.
Therefore, the limitati on and self-insured retentions applic able 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.
Fiduciary Net Deficit - Beginning Balance (9,287,906)$
Total additions for the year 3,952,853
Total deductions for the year (2,837,419)
Change in fiduciary net position 1,115,434
Fiduciary Net Deficit - Ending Balance (8,172,472)$
104
146
147
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
148
149
150
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Covered-employee payroll
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116
162
163
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY
INFORMATION
164
165
NON-MAJOR
GOVERNMENTAL FUNDS
166
167
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
CalHome Grant fund accounts for the allocation of St ate 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 rest ricted by federal and state legislation for program related expenditures.
Gasoline Tax fund accounts for portions of the tax per gallon levied by the State of California on all gasoline purchases which are allocated to cities throughout the State on a population basis. These revenues are restrict ed to expenditures for street-related purposes.
Road Maintenance and Rehab ilitation 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 allocation s for street, mass transit, and safety and security improvements.
Library Services fund accounts for property tax revenue funding and donations from Simi Valley Friends of the Library (a non-profit organization) used for expenditures to operate the Simi Valley Public Library.
Development Related Fees fund accounts for fees paid by developers for infrastructure construction and improvements, traffic and air quality impact mitigation, and program participation in low- and moder ate-income housing programs. This fund also accounts for performance and other deposits held by the City.
Police Grants funds account for funding received fr om various governmental entities for police activities. Current programs and funding sources include:
117
168
x Reimbursement for City’s participation in joint agency drug enforcement efforts from the U.S. Department of Justice, Drug Enforcemen t Administration, and the State of California,
x State funding for front-li ne municipal police servic es, including anti-gang and community crime prevention programs, and
x Local Law Enforcement Block Grant funding from the Bureau of Justice Assistance, U.S. Department of Justic e for purchasing police equipment or expanding existing capabilities.
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 Le ase 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, ener gy 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 intere st on long-term debt obtained to provide financing for a purchase and sale agreement and pole licens e agreement with Southern California Edison (SCE) for the acquisition of streetlights located in Simi Valley.
Capital Project Funds
Equipment Replacement funds account for the replac ement of personal computers, terminals, and printers; and establish a reserve for the replacement of vehicles.
Geographic Information System (GIS) fund accounts for geogra phic based information related to economic development, land use, demographic information, mapping for crime analysis, traffic safety management, permit issuance, and work order administration.
118
169
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.
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 rela ted to the acquisition of City streetlights from SCE and retrofitting of the streetlight bulbs to Light Emitting Diode (LED) technology.
Radio Project fund accounts for activities related to the upgrade of t he City’s daily and emergency communications system.
119
170
Public, Road
Education & Maintenance
CalHome HOME Planning Government Gasoline & Rehabilitaion Grant Grant Grant Fees Tax Account Transportation
ASSETS
Cash and investments:
Held by City 508,239 $ 1,386,926$ - $ 2,829,242$ 23,818 $ 1,991,467$ 10,734,878 $ Held by bond trustee - - - - - - - Accounts receivable (net of allowance for - - 596,990 - 280,425 493,338 - uncollectibles)
Taxes receivable - - - 67,671 - - - Grants receivable - - - - - - - Interest receivable - - - 18,821 - 28,869 85,302 Due from other funds 2,914 - - - - - 27,741 Loans receivable (net of allowance for 938,965 2,327,898 - - - - - uncollectibles)
TOTAL ASSETS 1,450,118 $ 3,714,824 $ 596,990 $ 2,915,734$ 304,243 $ 2,513,674$ 10,847,921 $
LIABILITIES
Accounts payable -$ -$ 165,903$ -$ -$ -$ -$ Salaries and benefits payable - - - - - - - Due to other funds - 101,717 431,087 - - - - Advances from other funds - - - - - - - TOTAL LIABILITIES - 101,717 596,990 - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs 938,965 2,327,898 17,597 - - - - Unavailable revenue-public safety - - - - - - - TOTAL DEFERRED INFLOWS OF RESOURCES 938,965 2,327,898 17,597 - - - -
FUND BALANCES
Restricted
Housing programs 511,153 1,285,209 - - - - - Public improvements - - - - - - - Streets and transportation - - - - 304,243 2,513,674 10,847,921 Debt service - - - - - - - Special programs - - - 2,915,734 - - - Law enforcement - - - - - - - Committed
Equipment - - - - - - - Unassigned - - (17,597) - - - - TOTAL FUND BALANCES (DEFICITS) 511,153 1,285,209 (17,597) 2,915,734 304,243 2,513,674 10,847,921
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 1,450,118 $ 3,714,824 $ 596,990 $ 2,915,734$ 304,243 $ 2,513,674$ 10,847,921 $ (Continued)
Special Revenue
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
120
171
Landscape Total
Community Maintenance Nonmajor
Library Development Police Development District Special Services Related Fees Grants Block Grant No. 1 Revenue Funds ASSETS
Cash and investments:
2,524,099$ 13,234,739 $ 1,494,022 $ 388 $ 4,177$ 34,731,995$ Held by City - - - - - - Held by bond trustee - - 77,673 - - 1,448,426 Accounts receivable (net of allowance for uncollectibles)
- - - - - 67,671 Taxes receivable - - - 713,024 - 713,024 Grants receivable 11,182 59,560 7,193 - - 210,927 Interest receivable - - - - 30,655 Due from other funds 5,794,013 - 320,473 - 9,381,349 Loans receivable (net of allowance for uncollectibles)
2,535,281$ 19,088,312 $ 1,578,888 $ 1,033,885 $ 4,177 $ 46,584,047$ TOTAL ASSETS
LIABILITIES
135,403$ 2,176 $ 17,231 $ 15,329 $ 117,770 $ 453,812 $ Accounts payable 7,053 - - - - 7,053 Salaries and benefits payable - - - 697,637 975,242 2,205,683 Due to other funds - - - - - Advances from other funds 142,456 2,176 17,231 712,966 1,093,012 2,666,548 TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
- 5,794,013 - 320,473 - 9,398,946 Unavailable revenue-housing programs - - 106,481 - - 106,481 Unavailable revenue-public safety - 5,794,013 106,481 320,473 - 9,505,427 TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Restricted
- 5,381,810 - 446 - 7,178,618 Housing programs - 6,094,940 - - - 6,094,940 Public improvements - 1,815,373 - - - 15,481,211 Streets and transportation - - - - - - Debt service 2,392,825 - - - - 5,308,559 Special programs - - 1,455,176 - - 1,455,176 Law enforcement Committed
- - - - - - Equipment - - - - (1,088,835) (1,106,432) Unassigned 2,392,825 13,292,123 1,455,176 446 (1,088,835) 34,412,072 TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES, DEFERRED INFLOWS OF
2,535,281$ 19,088,312 $ 1,578,888 $ 1,033,885 $ 4,177 $ 46,584,047$ RESOURCES AND FUND BALANCES (Continued)
Special Revenue
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
121
172
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 - $ - $ 1,250$ - $ 1,250$ Held by bond trustee - - 905,062 - 905,062 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 - $ - $ 906,312$ - $ 906,312$
LIABILITIES
Accounts payable -$ -$ 2,500$ -$ 2,500 Salaries and benefits payable - - - - - Due to other funds - - - - - Advances from other funds - - - - - TOTAL LIABILITIES - - 2,500 - 2,500
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 - - 903,812 - 903,812 Special programs - - - - - Law enforcement - - - - - Committed
Equipment - - - - - Unassigned - - - - - TOTAL FUND BALANCES (DEFICITS) - - 903,812 - 903,812
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES - $ - $ 906,312$ - $ 906,312$ (Continued)
Debt Service
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
122
173
Geographic Financial Police
Equipment Information Public Facility Information Capital Replacement System (GIS) Improvements System (FIS) Projects ASSETS
Cash and investments:
3,457,797$ 21,532 $ 5,295,863$ 2,087,975 $ 420,824 $ Held by City - - - - - Held by bond trustee - - - - - Accounts receivable (net of allowance for uncollectibles)
- - - - - Taxes receivable - - - - - Grants receivable 9,019 148 - 14,404 - Interest receivable - - - - - Due from other funds - - - - - Loans receivable (net of allowance for uncollectibles)
3,466,816$ 21,680 $ 5,295,863$ 2,102,379 $ 420,824 $ TOTAL ASSETS
LIABILITIES
17,895$ - $ 81,470$ 3,690 $ - $ Accounts payable - - - - - Salaries and benefits payable - - - - - Due to other funds - - 3,348,380 - - Advances from other funds 17,895 - 3,429,850 3,690 - 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 - - - - 420,824 Law enforcement Committed
3,448,921 21,680 1,866,013 2,098,689 - Equipment - - - - - Unassigned 3,448,921 21,680 1,866,013 2,098,689 420,824 TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES, DEFERRED INFLOWS OF
3,466,816$ 21,680 $ 5,295,863$ 2,102,379 $ 420,824 $ RESOURCES AND FUND BALANCES (Continued)
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Capital Projects
123
174
Total
Nonmajor Total
Telephone Solar Capital LED Streetlight Radio Capital Nonmajor System Projects Project Project Projects Funds
ASSETS
Cash and investments:
Held by City 165,753 $ 56,305 $ 403,216$ 27,318$ 11,936,583$ 46,669,828$ Held by bond trustee - - - - - 905,062
Accounts receivable (net of allowance for - - - - - 1,448,426 uncollectibles)
Taxes receivable - - - - - 67,671
Grants receivable - - - - - 713,024
Interest receivable - - - - 23,571 234,498
Due from other funds - - - - - 30,655
Loans receivable (net of allowance for - - - - - 9,381,349 uncollectibles)
TOTAL ASSETS 165,753$ 56,305$ 403,216$ 27,318$ 11,960,154$ 59,450,513$
LIABILITIES
Accounts payable -$ -$ -$ -$ 103,055$ 559,367$ Salaries and benefits payable - - - - - 7,053
Due to other funds - - - - - 2,205,683
Advances from other funds - - - - 3,348,380 3,348,380 TOTAL LIABILITIES - - - - 3,451,435 6,120,483
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-housing programs - - - - - 9,398,946 Unavailable revenue-public safety - - - - - 106,481 TOTAL DEFERRED INFLOWS OF RESOURCES - - - - - 9,505,427
FUND BALANCES
Restricted
Housing programs - - - - - 7,178,618
Public improvements - 56,305 403,216 27,318 486,839 6,581,779 Streets and transportation - - - - - 15,481,211 Debt service - - - - - 903,812
Special programs - - - - - 5,308,559
Law enforcement - - - - 420,824 1,876,000
Committed
Equipment 165,753 - - - 7,601,056 7,601,056 Unassigned - - - - - (1,106,432)
TOTAL FUND BALANCES (DEFICITS) 165,753 56,305 403,216 27,318 8,508,719 43,824,603
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 165,753$ 56,305$ 403,216$ 27,318$ 11,960,154$ 59,450,513$ (Concluded)
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Capital Projects
124
175
176
Public, Road
Education & Maintenance
CalHome HOME Planning Government Gasoline & Rehabilitaion Grant Grant Grant Fees Tax Accoun t
REVENUES
Taxes -$ -$ -$ 279,845$ -$ -$ Fines and forfeitures - - - - - - Use of money and property 105,380 93,910 - 53,586 - 79,228 From other governments - - - - 3,196,191 2,815,376 Grants - - 579,393 - - - Service charges - - - - - - Other revenues - - - - - - Total revenues 105,380 93,910 579,393 333,431 3,196,191 2,894,604
EXPENDITURES
Current:
General government - - - - - - Community services - - - - - - Planning (4,000) 107,260 412,422 - - - Public ways and facilities - - - - - - Public safety - - - - - - Total current expenditures (4,000) 107,260 412,422 - - - Capital outlay - - - 51,733 - - Debt service:
Principal - - - - - - Interest - - - - - - Other - - - - - - Total debt service - - - - - - Total expenditures (4,000) 107,260 412,422 51,733 - -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 109,380 (13,350) 166,971 281,698 3,196,191 2,894,604
OTHER FINANCING SOURCES (USES
)
Transfers in - - - - - - Transfers out - - - - (3,153,022) (4,218,348) Proceeds from sale of property - - - - - - Total other financing sources (uses) - - - - (3,153,022) (4,218,348) NET CHANGE IN FUND BALANCES 109,380 (13,350) 166,971 281,698 43,169 (1,323,744) FUND BALANCES (DEFICITS) - BEGINNING 401,773 1,298,559 (184,568) 2,634,036 261,074 3,837,418 FUND BALANCES (DEFICITS) - ENDING 511,153$ 1,285,209 $ (17,597) $ 2,915,734$ 304,243 $ 2,513,674 $ (Continued)
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
NONMAJOR GOVERNMENTAL FUNDS
125
177
Landscape Total
Community Maintenance Nonmajor
Library Development Police Development District Special Transportation Services Related Fees Grants Block Grant No. 1 Revenue Funds
REVENUES
-$ 2,454,464$ - $ - $ - $ - $ 2,734,309$ Taxes - 2,292 - - - - 2,292 Fines and forfeitures 141,671 26,814 362,360 20,040 35,827 (14,671) 904,145 Use of money and property 6,076,035 - - - - - 12,087,602 From other governments - 315,000 - 1,135,006 651,763 - 2,681,162 Grants - 5,135 167,937 - - 784,031 957,103 Service charges - 50,551 100,000 - - - 150,551 Other revenues 6,217,706 2,854,256 630,297 1,155,046 687,590 769,360 19,517,164 Total revenues
EXPENDITURES
Current:
- - - - 595,566 - 595,566 General government - 2,557,040 - - - - 2,557,040 Community services - - - - 66,194 - 581,876 Planning 36,958 - 107,146 - - 1,100,045 1,244,149 Public ways and facilities - - - 483,195 - - 483,195 Public safety 36,958 2,557,040 107,146 483,195 661,760 1,100,045 5,461,826 Total current expenditures - - - - - - 51,733 Capital outlay Debt service:
- 33,238 - - - - 33,238 Principal - - - - - - - Interest - - - - - - - Other - 33,238 - - - - 33,238 Total debt service 36,958 2,590,278 107,146 483,195 661,760 1,100,045 5,546,797 Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
6,180,748 263,978 523,151 671,851 25,830 (330,685) 13,970,367 OVER EXPENDITURES - OTHER FINANCING SOURCES (USES)
- - - - - 200,000 200,000 Transfers in (5,384,348) - (1,661,418) (315,135) - - (14,732,271) Transfers out - - - - - - - Proceeds from sale of property (5,384,348) - (1,661,418) (315,135) - 200,000 (14,532,271) Total other financing sources (uses) 796,400 263,978 (1,138,267) 356,716 25,830 (130,685) (561,904) NET CHANGE IN FUND BALANCES 10,051,521 2,128,847 14,430,390 1,098,460 (25,384) (958,150) 34,973,976 FUND BALANCES (DEFICITS) - BEGINNIN G 10,847,921$ 2,392,825 $ 13,292,123 $ 1,455,176 $ 446 $ (1,088,835)$ 34,412,072 $ FUND BALANCES (DEFICITS) - ENDING (Continued)
Special Revenue
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
126
178
2014A Total
Lease Revenue 2016 2017 2018 Nonmajor
Refunding CREBS Lease Lease Debt
Bonds LRB Agreemen t Agreement Service
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 845,000 419,026 431,839 312,342 2,008,207 Interest 625,650 278,459 142,002 255,296 1,301,407 Other 2,650 750 3,251 250 6,901 Total debt service 1,473,300 698,235 577,092 567,888 3,316,515 Total expenditures 1,473,300 698,235 577,092 567,888 3,316,515
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,473,300) (698,235) (577,092) (567,888) (3,316,515)
OTHER FINANCING SOURCES (USES
)
Transfers in 1,473,300 698,235 575,842 567,888 3,315,265 Transfers out - - (419,067) - (419,067) Proceeds from sale of property - - - - - Total other financing sources (uses) 1,473,300 698,235 156,775 567,888 2,896,198 NET CHANGE IN FUND BALANCES - - (420,317) - (420,317) FUND BALANCES (DEFICITS) - BEGINNING - - 1,324,129 - 1,324,129 FUND BALANCES (DEFICITS) - ENDING - $ - $ 903,812$ - $ 903,812$ (Continued)
Debt Service
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
127
179
Geographic Financial Police
Equipment Information Public Facility Information Capital Replacement System (GIS) Improvements System (FIS) Projects
REVENUES
-$ - $ - $ - $ - $ Taxes - - - - Fines and forfeitures 25,682 424 - 41,177 - Use of money and property - - - - - From other governments - - - - - Grants - - - - - Service charges - - - - 75,000 Other revenues 25,682 424 - 41,177 75,000 Total revenues
EXPENDITURES
Current:
- - - - - General government - - - - - Community services - - - - - Planning - - - - - Public ways and facilities - - - - - Public safety - - - - - Total current expenditures 1,036,016 - 113,003 96,455 - Capital outlay Debt service:
- - - - - Principal - - - - - Interest - - - - - Other - - - - - Total debt service 1,036,016 - 113,003 96,455 - Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
(1,010,334) 424 (113,003) (55,278) 75,000 OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
1,550,738 - 1,151,500 - - Transfers in - - - - - Transfers out 3,776 - - - - Proceeds from sale of property 1,554,514 - 1,151,500 - - Total other financing sources (uses) 544,180 424 1,038,497 (55,278) 75,000 NET CHANGE IN FUND BALANCES 2,904,741 21,256 827,516 2,153,967 345,824 FUND BALANCES (DEFICITS) - BEGINNIN G 3,448,921$ 21,680 $ 1,866,013$ 2,098,689 $ 420,824 $ FUND BALANCES (DEFICITS) - ENDING (Continued)
Capital Projects
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
128
180
Total
Nonmajor Total
Telephone Solar Capital LED Streetlight Radio Capital Nonmajor System Projects Project Project Projects Funds
REVENUES
Taxes -$ -$ -$ -$ -$ 2,734,309$
Fines and forfeitures - 2,292
Use of money and property - - - - 67,283 971,428
From other governments - - - - - 12,087,602
Grants - - - - - 2,681,162
Service charges - - - - - 957,103
Other revenues - - - - 75,000 225,551
Total revenues - - - - 142,283 19,659,447
EXPENDITURES
Current:
General government - - - - - 595,566
Community services - - - - - 2,557,040
Planning - - - - - 581,876
Public ways and facilities - - - - - 1,244,149
Public safety - - - - - 483,195
Total current expenditures - - - - - 5,461,826
Capital outlay - - - 1,972,682 3,218,156 3,269,889 Debt service:
Principal - - - - - 2,041,445
Interest - - - - - 1,301,407
Other - - - - - 6,901
Total debt service - - - - - 3,349,753
Total expenditures - - - 1,972,682 3,218,156 12,081,468
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES - - - (1,972,682)
(3,075,873) 7,577,979
OTHER FINANCING SOURCES (USES)
Transfers in - - - 2,000,000 4,702,238 8,217,503 Transfers out - - - - - (15,151,338)
Proceeds from sale of property - - - - 3,776 3,776
Total other financing sources (uses) - - - 2,000,000 4,706,014 (6,930,059) NET CHANGE IN FUND BALANCES - - - 27,318 1,630,141 647,920 FUND BALANCES (DEFICITS) - BEGINNING 165,753 56,305 403,216 - 6,878,578 43,176,683 FUND BALANCES (DEFICITS) - ENDING 165,753$ 56,305$ 403,216$ 27,318$ 8,508,719$ 43,824,603$ (Concluded)
Capital Projects
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
129
181
SCHEDULES-BUDGETʼnAND
ACTUAL-INDIVIDUALʼn"]<
182
183
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 105,380 $ 105,380$ Total revenues - - 105,380 105,380
EXPENDITURES
Current:
Planning:
Materials, supplies, and services 90,000 90,000 (4,000) 94,000 Total expenditures 90,000 90,000 (4,000) 94,000 NET CHANGE IN FUND BALANCES (90,000) (90,000) 109,380 199,380 FUND BALANCES - BEGINNING 401,773 401,773 401,773 - FUND BALANCES - ENDING 311,773$ 311,773$ 511,153$ 199,380$ Budgeted Amounts
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, 2023
130
184
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 137,000$ 137,000$ 93,910$ (43,090)$ Total revenues 137,000 137,000 93,910 (43,090)
EXPENDITURES
Current:
Planning:
Materials, supplies, and services 500,000 500,000 87,001 412,999 Reimbursements to general fund 40,000 40,000 20,259 19,741 Total expenditures 540,000 540,000 107,260 432,740 NET CHANGE IN FUND BALANCES (403,000) (403,000) (13,350) 389,650 FUND BALANCES - BEGINNING 1,298,559 1,298,559 1,298,559 - FUND BALANCES - ENDING 895,559$ 895,559$ 1,285,209$ 389,650$ Budgeted Amounts
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, 2023
131
185
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Grants -$ -$ 579,393$ 579,393$ Total revenues - - 579,393 579,393
EXPENDITURES
Current:
Planning:
Materials, supplies, and services - 706,721 211,084 495,637 Reimbursements to general fund - 40,500 - 40,500 Reimbursements to SHA to Community Development
Agency Housing DevelopmentAdministration - - 201,338 (201,338) Total expenditures - 706,721 412,422 294,299 NET CHANGE IN FUND BALANCES - (706,721) 166,971 873,692 FUND BALANCES - BEGINNING (184,568) (184,568) (184,568) - FUND BALANCES - ENDING (184,568) $ (891,289) $ (17,597) $ 873,692 $ Budgeted Amounts
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, 2023
132
186
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes 280,000$ 280,000$ 279,845$ (155)$ Use of money and property 15,000 15,000 53,586 38,586 Total revenues 295,000 295,000 333,431 38,431
EXPENDITURES
Capital outlay - 1,146,704 51,733 1,094,971 Total expenditures - 1,146,704 51,733 1,094,971 NET CHANGE IN FUND BALANCES 295,000 (851,704) 281,698 1,133,402 FUND BALANCES - BEGINNING 2,634,036 2,634,036 2,634,036 - FUND BALANCES - ENDING 2,929,036$ 1,782,332$ 2,915,734$ 1,133,402$ Budgeted Amounts
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, 2023
133
187
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
From other governments 3,637,705$ 3,637,705$ 3,196,191$ (441,514)$ Total revenues 3,637,705 3,637,705 3,196,191 (441,514)
OTHER FINANCING USES
Transfers out (3,637,705) (3,637,705) (3,153,022) 484,683 Total other financing uses (3,637,705) (3,637,705) (3,153,022) 484,683 NET CHANGE IN FUND BALANCES - - 43,169 43,169 FUND BALANCES - BEGINNING 261,074 261,074 261,074 - FUND BALANCES - ENDING 261,074$ 261,074$ 304,243$ 43,169$ Budgeted Amounts
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, 2023
134
188
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 79,228$ 79,228$ From other governments 2,837,206 2,837,206 2,815,376 (21,830) Total revenues 2,837,206 2,837,206 2,894,604 57,398
OTHER FINANCING USES
Transfers out (2,837,206) (6,115,894) (4,218,348) 1,897,546 Total other financing uses (2,837,206) (6,115,894) (4,218,348) 1,897,546 NET CHANGE IN FUND BALANCES - (3,278,688) (1,323,744) 1,954,944 FUND BALANCES - BEGINNING 3,837,418 3,837,418 3,837,418 - FUND BALANCES - ENDING 3,837,418$ 558,730$ 2,513,674$ 1,954,944$ Budgeted Amounts
CITY OF SIMI VALLEY
ROAD MAINTENANCE & REHABILITATION ACCOUNT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
135
189
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 2,500$ 2,500$ 141,671$ 139,171$ From other governments 4,425,400 4,425,400 6,076,035 1,650,635 Total revenues 4,427,900 4,427,900 6,217,706 1,789,806
EXPENDITURES
Current:
Public ways and facilities:
Materials, supplies and services 30,000 41,895 36,958 4,937 Total expenditures 30,000 41,895 36,958 4,937
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,397,900 4,386,005 6,180,748 1,794,743
OTHER FINANCING USES
Transfers out (5,384,348) (5,384,348) (5,384,348) - Total other financing uses (5,384,348) (5,384,348) (5,384,348) - NET CHANGE IN FUND BALANCES (986,448) (998,343) 796,400 1,794,743 FUND BALANCES - BEGINNING 10,051,521 10,051,521 10,051,521 - FUND BALANCES - ENDING 9,065,073$ 9,053,178$ 10,847,921$ 1,794,743$ Budgeted Amounts
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, 2023
136
190
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Taxes 2,454,464$ 2,454,464$ 2,454,464$ -$
Use of money and property 4,000 4,000 26,814 22,814 Grants - 350,000 315,000 (35,000) Fines and fees 5,000 5,000 2,292 (2,708) Service charges 5,000 5,000 5,135 135 Other revenues 50,000 50,000 50,551 551 Total revenues 2,518,464 2,868,464 2,854,256 (14,208)
EXPENDITURES
Current:
Community services:
Materials, supplies and services 2,518,464 4,396,815 2,557,040 1,839,775 Total current expenditures 2,518,464 4,396,815 2,557,040 1,839,775 Debt service:
Principal - - 33,238 (33,238) Total debt service - - 33,238 (33,238) Total expenditures 2,518,464 4,396,815 2,590,278 1,806,537 NET CHANGE IN FUND BALANCES - (1,528,351) 263,978 1,792,329 FUND BALANCES - BEGINNING 2,128,847 2,128,847 2,128,847 - FUND BALANCES - ENDING 2,128,847$ 600,496$ 2,392,825$ 1,792,329$ Budgeted Amounts
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, 2023
137
191
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 168,657$ 168,657$ 362,360$ 193,703$ Service charges 300,500 300,500 167,937 (132,563) Other revenues 100,000 100,000 100,000 - Total revenues 569,157 569,157 630,297 61,140
EXPENDITURES
Current:
Public ways and facilities (PW):
Materials, supplies, and services 119,000 119,000 107,146 11,854 Total expenditures 119,000 119,000 107,146 11,854
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 450,157 450,157 523,151 72,994
OTHER FINANCING USES
Transfers out (1,661,477) (1,661,477) (1,661,418) 59 Total other financing uses (1,661,477) (1,661,477) (1,661,418) 59 NET CHANGE IN FUND BALANCES (1,211,320) (1,211,320) (1,138,267) 73,053 FUND BALANCES - BEGINNING 14,430,390 14,430,390 14,430,390 - FUND BALANCES - ENDING 13,219,070$ 13,219,070$ 13,292,123$ 73,053$ Budgeted Amounts
CITY OF SIMI VALLEY
DEVELOPMENT RELATED FEES
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
138
192
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property 12,000$ 12,000$ 20,040$ 8,040$ Grants 703,200 2,191,639 1,135,006 (1,056,633) Total revenues 715,200 2,203,639 1,155,046 (1,048,593)
EXPENDITURES
Current:
Public safety:
Material, supplies and services 549,600 874,296 483,195 391,101 Total expenditures 549,600 874,296 483,195 391,101
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 165,600 1,329,343 671,851 (657,492)
OTHER FINANCING (USES)
Transfers out (342,200) (1,598,505) (315,135) 1,283,370 Total other financing sources (uses) (342,200) (1,598,505) (315,135) 1,283,370 NET CHANGE IN FUND BALANCES (176,600) (269,162) 356,716 625,878 FUND BALANCES - BEGINNING 1,098,460 1,098,460 1,098,460 - FUND BALANCES - ENDING 921,860$ 829,298$ 1,455,176$ 625,878$ Budgeted Amounts
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, 2023
139
193
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 35,827$ 35,827$ Grants 648,104 648,104 651,763 3,659 Total revenues 648,104 648,104 687,590 39,486
EXPENDITURES
Current:
General government 705,477 $ 1,451,072$ 595,566 $ 855,506 Planning 106,937 78,890 66,194 12,696 Total expenditures 812,414 1,529,962 661,760 868,202 NET CHANGE IN FUND BALANCES (164,310) (881,858) 25,830 907,688 FUND BALANCES - BEGINNING (25,384) (25,384) (25,384) - FUND BALANCES - ENDING (189,694) $ (907,242) $ 446 $ 907,688$ Budgeted Amounts
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, 2023
140
194
Variance with
Budget
Positive
Original Final Actual (Negative)
REVENUES
Use of money
and property 14,950$ 14,950$ (14,671)$ (29,621)$ Service charges 790,267 790,267 784,031 (6,236) Total revenues 805,217 805,217 769,360 (35,857)
EXPENDITURES
Current:
Public ways and facilities:
Landscape maintenance contract 1,418,464 1,418,464 1,100,045 318,419 Total expenditures 1,418,464 1,418,464 1,100,045 318,419
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (613,247) (613,247) (330,685) 282,562
OTHER FINANCING SOURCES
Transfers in 200,000 200,000 200,000 - Total other financing sources 200,000 200,000 200,000 - NET CHANGE IN FUND BALANCES (413,247) (413,247) (130,685) 282,562 FUND BALANCES - BEGINNING (958,150) (958,150) (958,150) - FUND BALANCES - ENDING (1,371,397)$ (1,371,397)$ (1,088,835)$ 282,562$ Budgeted Amounts
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, 2023
141
195
INTERNAL SERVICE
AND FIDUCIARY FUNDS
196
197
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
ASSETS
Current assets:
Cash and investments 4,551,461 $ 17,983,847 $ 325,274 $ 150,755 $ 23,011,337$ Interest receivable 26,498 128,602 2,002 1,416 158,518
TOTAL ASSETS 4,577,959 18,112,449 327,276 152,171 23,169,855
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions - 264,705 - - 264,705
Related to other postemployment benefits - 101,282 - - 101,282 Total deferred outflows of resources - 365,987 - - 365,987
LIABILITIES
Current liabilities:
Accounts payable 65,146 3,070 5,303 - 73,519
Salaries and benefits payable - 11,874 - - 11,874
Compensated absences - 2,771 - - 2,771
Claims and legal services payable 771,596 1,886,573 - - 2,658,169 Total current liabilities 836,742 1,904,288 5,303 - 2,746,333 Noncurrent liabilities:
Compensated absences - 24,943 - - 24,943
Claims and legal services payable 1,341,218 5,923,583 - - 7,264,801 Net pension liability - 858,829 - - 858,829
Net other postemployment benefits liability - 248,001 - - 248,001 Total noncurrent liabilities 1,341,218 7,055,356 - - 8,396,574 TOTAL LIABILITIES 2,177,960 8,959,644 5,303 - 11,142,907
DEFERRED INFLOWS OF RESOURCES
Related to pensions - 11,136 - - 11,136
Related to other post employment benefits - 25,157 - - 25,157 Total deferred inflows of resources - 36,293 - - 36,293
NET POSITION
Unrestricted 2,399,999 9,482,499 321,973 152,171 12,356,642 TOTAL NET POSITION 2,399,999$ 9,482,499$ 321,973$ 152,171$ 12,356,642$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2023
142
198
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
OPERATING REVENUES
Total charges for sales and services 2,394,000$ 4,252,362$ 95,200$ -$ 6,741,562$
OPERATING EXPENSES
Salaries and benefits - 681,764 - - 681,764 Excess insurance premiums 905,247 455,076 - - 1,360,323 Claims and legal expenses 266,915 (450,263) - - (183,348) Reduction of reserves 344,591 172,466 - - 517,057 General administration 46,858 431,170 - - 478,028 Other - 2,995 41,120 - 44,115 Total operating expenses 1,563,611 1,293,208 41,120 - 2,897,939 OPERATING INCOME 830,389 2,959,154 54,080 - 3,843,623
NONOPERATING REVENUES AND EXPENSES
Interest 70,342 289,415 5,521 4,901 370,179 Other 54,878 6,650 - - 61,528 Total nonoperating revenues 125,220 296,065 5,521 4,901 431,707 INCOME BEFORE TRANSFERS 955,609 3,255,219 59,601 4,901 4,275,330
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 952,609 3,252,019 59,601 (146,099) 4,118,130 NET POSITION-BEGINNING 1,447,390 6,230,480 262,372 298,270 8,238,512 NET POSITION-ENDING 2,399,999$ 9,482,499$ 321,973$ 152,171$ 12,356,642$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
143
199
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from service charges
and other revenues (net of refunds) 2,448,878 $ 4,259,819 $ 95,200 $ - $ 6,803,897$ Cash paid for salaries and benefits - (433,108) - - (433,108) Cash paid for general administration (46,858) (451,364) - - (498,222) Cash paid for services (523,777) (2,994) (35,817) - (562,588) Cash paid for insurance premiums and claims (944,146) (1,663,648) - - (2,607,794) Net cash provided by operating activities 934,097 1,708,705 59,383 - 2,702,185 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Advances to other funds - (2,344,000) - - (2,344,000) Transfers to other funds (3,000) (3,200) - (151,000) (157,200) Cash used in noncapital financing activities (3,000) (2,347,200) - (151,000) (2,501,200) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments 53,900 214,948 4,240 4,530 277,618 Cash provided by investing activities 53,900 214,948 4,240 4,530 277,618 NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 984,997 (423,547) 63,623 (146,470) 478,603 CASH AND INVESTMENTS, BEGINNING OF YEAR 3,566,464 18,407,394 261,651 297,225 22,532,734 CASH AND INVESTMENTS, END OF YEAR 4,551,461$ 17,983,847$ 325,274$ 150,755$ 23,011,337$
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Operating income 830,389$ 2,959,154$ 54,080$ -$ 3,843,623$ Adjustments to reconcile operating income to
net cash provided by operating activities:
Increase in accounts receivable - 807 - - 807 Increase (decrease) in accounts payable 27,184 (20,194) 5,303 - 12,293 Decrease in accrued payroll - (4,745) - - (4,745) Increase in compensated absences - 2,262 - - 2,262 Increase (decrease) in claims and legal services payable 21,646 (1,486,369) - - (1,464,723) Increase net pension liability - 160,299 - - 160,299 Increase net other postemployment benefits liability - 90,841 - - 90,841 Adjustment for revenues and expenses classified as nonoperating 54,878 6,650 - - 61,528 Total adjustments 103,708 (1,250,449) 5,303 - (1,141,438) Net cash provided by operating activities 934,097$ 1,708,705$ 59,383$ -$ 2,702,185$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
144
200
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$ 2,384,427$ Held by bond trustee - - - - Interest receivable - - - 8,444 Capital assets not being depreciated - 1,124,174 - - TOTAL ASSETS - 1,013,805 1 2,392,871
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - - - -
TOTAL DEFERRED OUTFLOWS OF RESOURCE S - - - -
LIABILITIES
Accounts payable and accrued liabilities - - - - Accrued interest payable - - - - Long-term debt:
Due within one year - - - - Due in more than one year - - - -
TOTAL LIABILITIES - - - -
NET POSITION (DEFICIT)
Held in trust for other purposes -$ 1,013,805$ 1$ 2,392,871$ (Continued)
JUNE 30, 2023
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
145
201
Total Successor
2003 Agency to the
Tax Allocation Simi Valley CDA
Refunding CDA Private-Purpose
Bonds Projects Trust Funds
ASSETS
Cash and investments:
118,248$ 39,937$ 2,432,244$ Held by City 2,158,359 - 2,158,359 Held by bond trustee 1,378 274 10,096 Interest receivable - - 1,124,174 Capital assets not being depreciated 2,277,985 40,211 5,724,873 TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
18,259 - 18,259 Deferred loss on refunding 18,259 - 18,259 TOTAL DEFERRED OUTFLOWS OF RESOURCE S
LIABILITIES
1,150 - 1,150 Accounts payable and accrued liabilities 224,855 - 224,855 Accrued interest payable Long-term debt:
1,436,305 - 1,436,305 Due within one year 12,253,294 - 12,253,294 Due in more than one year 13,915,604 - 13,915,604 TOTAL LIABILITIES
NET POSITION (DEFICIT)
(11,619,360)$ 40,211 $ (8,172,472)$ Held in trust for other purposes (Concluded)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2023
146
202
Community Merged
Development Tapo Canyon Redevelopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
ADDITIONS
Property taxes -$ -$ -$ 1,740,202$ Investment earnings - - - 24,716 Transfers in 9,469 - - - TOTAL ADDITIONS 9,469 - - 1,764,918
DEDUCTIONS
Administrative expenses - - - - Interest and fiscal agency expenses of former - - - - Simi Valley Community Development Agency
Contributions to other governments 9,469 - - - Transfers out - - - 2,079,899 TOTAL DEDUCTIONS 9,469 - - 2,079,899 CHANGE IN NET POSITION - - - (314,981) NET POSITION (DEFICIT) - BEGINNING - 1,013,805 1 2,707,852 NET POSITION (DEFICIT) - ENDING -$ 1,013,805$ 1$ 2,392,871$ (Continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
147
203
Total Successor
2003 Agency to the
Tax Allocation Eliminate the Simi Valley CDA
Refunding CDA Impact of Private-Purpose
Bonds Projects Transfers Trust Funds
ADDITIONS
-$ - $ - $ 1,740,202$ Property taxes 68,144 786 - 93,646 Investment earnings 2,109,536 - (2,119,005) - Transfers in 2,177,680 786 (2,119,005) 1,833,848 TOTAL ADDITIONS
DEDUCTIONS
7,249 - - 7,249 Administrative expenses 701,696 - - 701,696 Interest and fiscal agency expenses of former Simi Valley Community Development Agency
- - - 9,469 Contributions to other governments 39,106 - (2,119,005) - Transfers out 748,051 - (2,119,005) 718,414 TOTAL DEDUCTIONS 1,429,629 786 - 1,115,434 CHANGE IN NET POSITION (13,048,989) 39,425 - (9,287,906) NET POSITION (DEFICIT) - BEGINNING (11,619,360)$ 40,211 $ - $ (8,172,472)$ NET POSITION (DEFICIT) - ENDING (Concluded)
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
148
204
Assessment
City Districts
Custodial City of Total
Fund Simi Valley Custodial Funds
ASSETS
Current assets:
Cash and investments:
Held by City 5,814,547$ 1,495,418$ 7,309,965$ Held by bond trustee - 1,060,605 1,060,605 Accounts receivable - 8,912 8,912 TOTAL ASSETS 5,814,547 2,564,935 8,379,482
LIABILITIES
Accounts payable and accrued liabilities - 1,890 1,890 Deposits 5,814,547 - 5,814,547 Due to bondholders - 2,087,024 2,087,024 TOTAL LIABILITIES 5,814,547 2,088,914 7,903,461
NET POSITION
Net position restricted for individuals -$ 476,021$ 476,021 $
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2023
149
205
Assessment
City Districts
Custodial City of Total
Fund Simi Valley Custodial Funds
ADDITIONS
Other taxes -$ 364,755$ 364,755$ Investment earnings - 55,994 55,994 TOTAL ADDITIONS - 420,749 420,749
DEDUCTIONS
Administrative expenses - 10,024 10,024 Interest and fiscal agency expenses - 333,303 333,303 TOTAL DEDUCTIONS - 343,327 343,327 CHANGE IN NET POSITION - 77,422 77,422 NET POSITION - BEGINNING - 398,599 398,599 NET POSITION - ENDING -$ 476,021$ 476,021$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
150
206
Total Pension
and Other Post
Employment
Pension OPEB Benefits (OPEB)
Trust Fund Trust Fund Trust Funds
ASSETS
Current assets:
Restricted cash and investments held with Pension Trust (note III.A) 1,413,742$ -$ 1,413,742$ Restricted cash and investments held with OPEB Trust (note III.A) - 3,265,903 3,265,903 TOTAL ASSETS 1,413,742 3,265,903 4,679,645
NET POSITION
Net position restricted for pensions 1,413,742 - 1,413,742 Net position restricted for OPEB - 3,265,903 3,265,903 TOTAL NET POSITION 1,413,742$ 3,265,903$ 4,679,645$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION AND OTHER POST EMPLOYMENT BENEFITS (OPEB) TRUST FUNDS JUNE 30, 2023
151
207
Total Pension
and Other Post
Employment
Pension OPEB Benefits (OPEB)
Trust Fund Trust Fund Trust Funds
ADDITIONS
Contributions 148,678$ 3,396,373$ 3,545,051$
Investment earnings (losses) 46,099 (461,152) (415,053) TOTAL ADDITIONS 194,777 2,935,221 3,129,998
DEDUCTIONS
Administrative expenses 714 895,074 895,788
Benefit payments 128,373 2,510,785 2,639,158
TOTAL DEDUCTIONS 129,087 3,405,859 3,534,946
CHANGE IN NET POSITION 65,690 (470,638) (404,948)
NET POSITION - BEGINNING 1,348,052 3,736,541 5,084,593
NET POSITION - ENDING 1,413,742$ 3,265,903$ 4,679,645$
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, 2023
152
208
209
STATISTICAL SECTION
STATISTICAL SECTION
210
211
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. ................ 154
Revenue Capacity
These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. ........................................................... 164
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 70
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. ..... 174
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. ......................................................... 176
SOURCE:
Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial report for the relevant year.
153
212
Fiscal Year
2013-14 2014-15 2015-16 2016-17 2017-18
Governmental activities
Net investment in capital assets 186,806,245$ 207,788,585 $ 211,751,365 $ 210,531,356 $ 196,724,305 $ Restricted 58,246,665 57,372,815 57,552,738 64,139,877 71,851,898 Unrestricted 37,002,698 (55,691,639) (52,859,886) (62,293,358) (88,047,192) Total governmental activites net position 282,055,608$ 209,469,761 $ 216,444,217 $ 212,377,875 $ 180,529,011 $ Business-type activities
Net investment in capital assets 132,775,502$ 141,770,140 $ 143,093,105 $ 141,317,489 $ 139,670,875 $ Restricted 4,894,656 4,716,713 5,140,128 5,941,420 7,011,040 Unrestricted 38,232,485 15,841,185 17,627,461 19,496,282 18,695,056 Total business-type activities net position 175,902,643$ 162,328,038 $ 165,860,694 $ 166,755,191 $ 165,376,971 $ Primary Government
Net investment in capital assets 319,581,747$ 349,558,725 $ 354,844,470 $ 351,848,845 $ 336,395,180 $ Restricted 63,141,321 62,089,528 62,692,866 70,081,297 78,862,938 Unrestricted 75,235,183 (39,850,454) (35,232,425) (42,797,076) (69,352,136) Total primary government net position 457,958,251$ 371,797,799 $ 382,304,911 $ 379,133,066 $ 345,905,982 $ (Continued)
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
154
213
Fiscal Year
2018-19 2019-20 2020-21 2021-22 2022-23
Governmental activities
208,951,633$ 209,763,040$ 203,826,589$ 200,958,735$ 209,775,571$ Net investment in capital assets 60,704,865 62,018,594 78,265,866 87,578,328 81,276,789 Restricted (90,524,428) (89,407,109) (83,168,701) (67,653,561) (57,486,049) Unrestricted 179,132,070$ 182,374,525$ 198,923,754$ 220,883,502$ 233,566,311$ Total governmental activites net position Business-type activities
137,805,536$ 139,278,603$ 148,000,879$ 133,253,370$ 135,124,145$ Net investment in capital assets 7,874,785 7,874,785 9,843,643 12,266,569 12,622,013 Restricted 24,888,703 30,472,607 28,737,089 56,432,178 70,955,082 Unrestricted 170,569,024$ 177,625,995$ 186,581,611$ 201,952,117$ 218,701,240$ Total business-type activities net position Primary Government
346,757,169$ 349,041,643$ 351,827,468$ 334,212,105$ 344,899,716$ Net investment in capital assets 68,579,650 69,893,379 88,109,509 99,844,897 93,898,802 Restricted (65,635,725) (58,934,502) (54,431,612) (11,221,383) 13,469,033 Unrestricted 349,701,094$ 360,000,520$ 385,505,365$ 422,835,619$ 452,267,551$ Total primary government net position (Concluded)
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
155
214
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
Fiscal Year
2013-14 2014-15 2015-16 2016-17 2017-18
Expenses
Governmental activities:
General government 19,924,154 $ 19,604,979 $ 16,442,755 $ 13,323,582 $ 18,661,104 $ Community services 6,042,418 6,264,358 6,397,826 7,068,775 7,469,961 Planning 5,665,265 5,699,916 6,308,221 6,001,235 6,459,507 Public ways and facilities 17,004,864 16,822,400 16,641,718 18,569,074 19,580,854 Public safety 30,566,135 31,445,540 31,286,515 34,501,473 38,809,004 Interest on long-term debt 1,059,055 265,922 720,840 937,079 1,230,782 Refunding bond issuance costs - - 194,069 - - Total governmental activities expenses 80,261,891 80,103,115 77,991,944 80,401,218 92,211,212 Business-type activities:
Sanitation 17,180,903 16,136,164 14,845,944 18,151,061 18,222,816 Waterworks district no. 8 40,980,119 37,984,287 34,249,031 36,967,538 42,900,423 Transit 6,207,520 6,722,692 7,117,042 7,369,511 9,135,850 Total business-type activities expenses 64,368,542 60,843,143 56,212,017 62,488,110 70,259,089 Total primary government expenses 144,630,433 $ 140,946,258 $ 134,203,961 $ 142,889,328 $ 162,470,301 $ Program Revenues
Governmental activities:
Charges for services:
General government 380,835 $ 531,683 $ 1,606,097 $ 800,874 $ 2,497,172 $ Community services 911,308 882,739 1,109,053 924,269 1,015,074 Planning 2,191,796 2,202,730 2,738,543 4,256,995 4,430,830 Public
ways and facilities 3,322,178 1,913,193 1,821,043 1,936,852 2,719,170 Public safety 854,386 866,031 771,002 626,340 889,379 Operating grants and contributions 11,617,046 12,519,780 9,643,713 9,398,940 9,348,042 Capital grants and contributions 11,108,870 28,819,982 13,530,222 3,694,804 2,117,322 Total governmental activities program revenues 30,386,419 47,736,138 31,219,673 21,639,074 23,016,989 Business-type activities:
Charges for services:
Sanitation 14,831,706 14,567,947 16,047,248 17,645,619 19,241,722 Waterworks district no. 8 37,042,247 33,215,428 30,877,802 36,529,274 43,808,330 Transit 415,476 401,369 430,804 426,246 406,387 Operating grants and contributions 2,573,874 2,526,193 2,602,009 2,639,740 2,667,120 Capital grants and contributions 4,016,047 11,698,157 5,458,314 1,921,558 2,064,181 Total business-type activities program revenues 58,879,350 62,409,094 55,416,177 59,162,437 68,187,740 Total primary governmental program revenues 89,265,769$ 110,145,232$ 86,635,850$ 80,801,511$ 91,204,729$ Net (Expense)/Revenue
Governmental activities (49,875,472) (32,366,977) (46,772,271) (58,762,144) (69,194,223) Business-type activities (5,489,192) 1,565,951 (795,840) (3,325,673) (2,071,349) Total primary government net expense (55,364,664)$ (30,801,026)$ (47,568,111)$ (62,087,817)$ (71,265,572)$ (Continued)
156
215
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
Fiscal Year
2018-19 2019-20 2020-21 2021-22 2022-23
Expenses
Governmental activities:
17,720,443$ 19,516,513 $ 16,936,266 $ 13,890,174 $ 17,043,010 $ General government 7,234,363 6,523,639 6,568,970 6,204,005 7,467,577 Community services 6,002,066 3,840,624 6,739,637 5,908,937 6,841,158 Planning 19,651,601 23,659,432 19,921,676 17,753,088 18,555,545 Public ways and facilities 36,836,767 36,691,093 37,445,831 35,758,204 38,757,037 Public safety 1,440,347 1,466,885 1,356,832 1,285,332 1,189,630 Interest on long-term debt - - - - - Refunding bond issuance costs 88,885,587 91,698,186 88,969,212 80,799,740 89,853,957 Total governmental activities expenses Business-type activities:
17,375,318 17,324,800 18,985,485 15,323,866 18,206,100 Sanitation 40,552,517 42,895,822 48,250,272 44,127,857 37,536,761 Waterworks district no. 8 9,387,703 8,839,284 8,222,624 7,787,395 9,436,766 Transit 67,315,538 69,059,906 75,458,381 67,239,118 65,179,627 Total business-type activities expenses 156,201,125$ 160,758,092 $ 164,427,593 $ 148,038,858 $ 155,033,584 $ Total primary government expenses Program Revenues
Governmental activities:
Charges for services:
2,580,241$ 1,990,356 $ 1,569,907 $ 1,618,424 $ 1,613,425 $ General government 1,086,783 840,227 293,799 836,307 996,991 Community services 4,742,278 2,926,064 5,443,247 5,011,362 3,749,701 Pl anning
2,927,559 2,335,563 3,687,751 3,940,427 1,823,353 Public ways and facilities 896,399 561,674 772,994 414,024 708,841 Public safety 11,987,812 12,622,399 22,170,916 19,932,730 15,927,173 Operating grants and contributions 1,619,868 5,383,614 505,218 546,707 2,143,432 Capital grants and contributions 25,840,940 26,659,897 34,443,832 32,299,981 26,962,916 Total governmental activities program revenues Business-type activities:
Charges for services:
20,591,589 21,857,056 23,846,199 26,077,946 27,414,752 Sanitation 40,967,174 43,144,049 51,005,332 48,945,484 40,656,924 Waterworks district no. 8 402,517 291,226 8,922 180,585 282,560 Transit 2,673,492 5,663,893 6,923,917 3,459,938 3,435,944 Operating grants and contributions 1,952,893 1,302,250 3,745,985 2,484,089 3,387,969 Capital grants and contributions 66,587,665 72,258,474 85,530,355 81,148,042 75,178,149 Total business-type activities program revenues 92,428,605$ 98,918,371$ 119,974,187$ 113,448,023$ 102,141,065$ Total primary governmental program revenues Net (Expense)/Revenue
(63,044,647) (65,038,289) (54,525,380) (48,499,759) (62,891,041) Governmental activities (727,873) 3,198,568 10,071,974 13,908,924 9,998,522 Business-type activities (63,772,520)$ (61,839,721)$ (44,453,406)$ (34,590,835)$ (52,892,519)$ Total primary government net expense (Continued)
157
216
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
Fiscal Year
2013-14 2014-15 2015-16 2016-17 2017-18
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes 27,438,436 $ 28,340,047 $ 29,835,623 $ 31,120,875 $ 32,303,044 $ Sales tax 15,440,917 15,944,424 17,432,505 16,842,335 17,857,830 Franchise tax 4,849,204 4,757,607 5,025,802 4,740,682 4,445,972 Business tax 1,601,785 1,742,469 1,786,153 1,787,587 1,967,065 Other taxes 1,975,930 2,128,115 2,587,113 2,561,922 2,703,566 Contributions from other governments 3,074,897 373,512 - - 2,082,766 Investment earnings 1,046,411 819,685 835,387 964,495 1,290,234 Miscellaneous - - - - - Transfers (1,672,300) (2,869,014) (3,255,695) (3,572,095) (3,512,087) Contributions to other governments - - (63,992) 250,000 - Total governmental activities 53,755,280 51,236,845 54,182,896 54,695,801 59,138,390 Business-type activities:
Investment earnings 1,030,711 955,624 811,714 520,855 821,540 Miscellaneous 227,858 105,367 261,087 127,220 119,408 Transfers 1,672,300 2,869,014 3,255,695 3,572,095 3,512,087 Total business-type activities 2,930,869 3,930,005 4,328,496 4,220,170 4,453,035 Total primary government 56,686,149$ 55,166,850$ 58,511,392$ 58,915,971$ 63,591,425$ Cha
nge in Net Position
Governmental activities 3,879,808$ 18,869,868$ 7,410,625$ (4,066,343)$ (10,055,833)$ Business-type activities (2,558,323) 5,495,956 3,532,656 894,497 2,381,686 Total primary government 1,321,485$ 24,365,824$ 10,943,281$ (3,171,846)$ (7,674,147)$ (Continued)
158
217
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
Fiscal Year
2018-19 2019-20 2020-21 2021-22 2022-23
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
34,011,044$ 39,014,593 $ 37,990,791 $ 39,173,353 $ 42,184,244 $ Property taxes 18,961,367 18,319,232 21,372,380 23,631,522 23,398,289 Sales tax 4,931,918 4,872,904 5,185,293 5,393,386 6,084,358 Franchise tax 2,106,344 2,112,049 2,241,423 2,343,050 2,436,816 Business tax 2,849,714 2,289,122 2,418,059 3,309,528 3,094,977 Other taxes 49,350 52,160 51,484 54,502 9,469 Contributions from other governments 2,496,426 2,973,992 699,791 (292,256) 3,137,714 Investment earnings - - - 295,538 39,107 Miscellaneous (3,758,457) (1,353,309) 1,115,388 (3,449,116) (4,811,124) Transfers - - - - Contributions to other governments 61,647,706 68,280,743 71,074,609 70,459,507 75,573,850 Total governmental activities Business-type activities:
2,041,917 2,418,455 (156,009) (2,166,729) 1,848,136 Investment earnings 119,552 86,638 155,039 179,195 91,341 Miscellaneous 3,758,457 1,353,309 (1,115,388) 3,449,116 4,811,124 Transfers 5,919,926 3,858,402 (1,116,358) 1,461,582 6,750,601 Total business-type activities 67,567,632$ 72,139,145$ 69,958,251$ 71,921,089$ 82,324,451$ T otal primary government
Change in Net Position
(1,396,941)$ 3,242,454$ 16,549,229$ 21,959,748$ 12,682,809$ Governmental activities 5,192,053 7,056,970 8,955,616 15,370,506 16,749,123 Business-type activities 3,795,112$ 10,299,424$ 25,504,845$ 37,330,254$ 29,431,932$ Total primary government (Concluded)
159
218
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2013-14 2014-15 2015-16 2016-17 2017-18
Nonspendable, reported in:
Long-term receivables 18,509,076 16,988,891 15,769,102 14,039,905 14,035,421 Committed, reported in:
Retiree benefits 846,723 863,564 535,057 17,609 Special programs 272,722 283,828 319,322 333,021 386,105 Economic recovery 6,084,838 6,084,838 6,084,838 6,084,838 5,084,838 Prudent reserve 11,881,778 11,682,715 11,665,494 11,737,044 12,315,232 Assigned, reported in:
Capital 6,029,111 7,968,732 9,374,012 9,647,610 10,672,125 Unassigned - - - - (472,818) Total general fund 43,624,248 $ 43,872,568 $ 43,747,825 $ 41,860,027 $ 42,020,903 $ All other government funds
Restricted, reported in:
Housing programs 6,389,178 8,376,955 10,483,070 11,334,690 12,044,976 Public improvements 15,748,357 12,760,231 11,949,371 10,966,923 10,456,563 Streets 2,314,747 3,075,194 3,872,702 3,846,189 4,815,203 Landscape 848,183 1,233,583 1,404,310 1,104,197 844,656 Debt service 1,656,157 7,963 - 6,424,000 11,989,483 Special programs 1,037,576 1,603,522 2,199,119 2,583,864 3,074,465 Law enforcement 774,724 2,090,806 2,852,712 2,620,596 2,445,054 Committed, reported in:
Streets 2,531,276 2,460,203 2,789,142 2,202,918 4,162,511 Equipm
ent 4,421,827 5,409,661 5,306,436 5,230,390 5,267,713 Assigned, reported in:
Capital 143,103 130,083 59,446 - - Unassigned (108,051) (164,935) (55,000) (4,618,291) (693,295) Total all other
governmental funds 35,757,077$ 36,983,266$ 40,861,308$ 41,695,476$ 54,407,329$ (Continued)
Fiscal Year
SOURCE:
City of Simi Valley
160
219
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2018-19 2019-20 2020-21 2021-22 2022-23
Nonspendable, reported in:
10,017,212 8,124,400 5,971,366 5,920,262 3,569,595 Long-term receivables Committed, reported in:
30,008 278,911 372,760 509,729 1,321,566 Retiree benefits 421,164 522,806 590,552 764,872 1,065,496 Special programs 5,084,838 11,084,838 11,084,838 11,084,838 11,084,838 Economic recovery 12,670,975 13,049,720 14,019,727 14,139,864 15,101,687 Prudent reserve Assigned, reported in:
17,873,825 19,355,215 38,297,703 44,281,431 47,834,064 Capital - - - - - Unassigned 46,098,022$ 52,415,890 $ 70,336,946 $ 76,700,996 $ 79,977,246 $ Total general fund All other government funds
Restricted, reported in:
13,008,731 9,806,362 11,661,964 12,013,585 12,312,601 Housing programs 8,949,351 8,757,063 8,077,145 7,849,488 6,581,779 Public improvements 5,991,314 8,023,324 14,599,926 16,008,040 15,481,211 Streets 693,379 162,870 - - - Landscape 4,241,900 1,456,124 1,324,129 1,324,129 903,812 Debt service 3,972,856 4,464,783 4,509,530 4,762,883 5,308,559 Special programs 2,853,886 1,275,705 1,435,178 1,444,284 1,876,000 Law enforcement Committed, reported in:
2,565,480 2,739,696 3,137,771 15,610,695 15,125,290 Str eets 5,101,910 5,475,553 7,709,947 6,073,233 7,601,056 Equipment Assigned, reported in:
- - - - - Capital (209,150) 1,409,206 (509,396) (1,168,102) (1,106,432) Unassigned Total all other
47,169,657$ 43,570,686$ 51,946,194$ 63,918,235$ 64,083,876$ governmental funds (Concluded)
Fiscal Year
SOURCE:
City of Simi Valley
161
220
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2013-14 2014-15 2015-16 2016-17 2017-18
Revenues
Taxes 51,630,610 $ 54,024,712 $ 56,667,196 $ 57,053,401 $ 59,277,477 $ Licenses and permits 1,641,301 1,965,120 2,561,293 2,158,210 2,523,744 Fines and forfeitures 567,379 613,301 597,889 403,841 568,456 Use of money and property 1,371,779 2,901,802 2,901,207 1,276,619 1,796,416 From other governments 9,875,682 9,489,007 7,715,746 7,094,051 8,092,405 Grants 3,795,247 4,650,237 3,858,045 4,417,808 2,838,349 Service charges 3,247,246 2,111,740 3,300,023 3,304,023 3,970,562 Other revenues 2,411,592 1,865,966 1,732,533 2,783,106 4,629,045 Contributions from other governments 3,073,464 376,588 - - - Total revenues 77,614,300 77,998,473 79,333,932 78,491,059 83,696,454 Expenditures
Current:
General government 8,977,728 6,764,233 5,784,087 6,457,231 8,530,647 Community services 5,759,582 6,245,135 6,581,050 6,763,706 6,927,525 Planning 8,954,977 6,440,023 6,246,916 6,387,901 6,447,721 Public ways and facilities 14,683,649 14,791,346 15,988,868 16,076,033 16,467,229 Public safety 29,922,421 31,605,027 32,811,987 33,107,205 33,565,393 Capital outlay 4,346,397 4,987,471 3,362,875 16,914,455 7,153,833 Debt s
ervice:
Principal 3,220,000 270,000 - - 1,002,827 Interest 1,129,784 742,212 806,625 806,625 1,289,250 Refunding escrow - 1,396,316 - - - Bond issuance costs - 194,069 - - - Other 6,710 1,150 1,150 103,816 80,624 Total expenditures 77,001,248 73,436,982 71,583,558 86,616,972 81,465,049 Excess (deficiency) of revenues
over expenditures 613,052 4,561,491 7,750,374 (8,125,913) 2,231,405 Other Financing Sources (Uses)
Transfers in 16,997,812 12,214,657 8,301,888 18,175,804 13,912,428 Transfers out (18,661,912) (15,503,671) (11,604,733) (21,320,599) (17,418,315) Bonds issued - 20,767,747 - 9,967,078 12,064,445 Payment to escrow agent - (20,565,715) - - - Contributions from other governments - - 250,000 250,000 2,082,766 Contributions to other governments - - (313,992) - - Proceeds from sale of property - - - - - Subscription-Based Information Technology Arrangements - - - - - Total other financing sources (uses) (1,664,100) (3,086,982) (3,366,837) 7,072,283 10,641,324 Net change in fund balances (1,051,048)$ 1,
474,509$ 4,383,537$ (1,053,630)$ 12,872,729$ Debt service as a percentage of
noncapital expenditures 6.24% 1.46% 1.20% 1.16% 3.10%
(Continued)
Fiscal Year
SOURCE:
City of Simi Valley
162
221
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2018-19 2019-20 2020-21 2021-22 2022-23
Revenues
62,860,387$ 66,607,900 $ 69,207,946 $ 73,850,839 $ 77,198,684 $ Taxes 2,618,558 2,703,432 3,829,208 5,116,843 3,606,782 Licenses and permits 562,503 329,429 236,362 277,228 263,610 Fines and forfeitures 3,049,771 3,355,999 1,881,988 1,273,679 3,865,410 Use of money and property 10,014,798 9,601,415 9,692,508 10,253,814 12,560,545 From other governments 2,933,635 7,640,989 12,213,457 9,369,607 4,678,854 Grants 4,185,273 2,773,884 4,449,807 3,440,733 2,083,839 Service charges 4,982,086 3,008,689 3,365,342 3,060,740 2,951,551 Other revenues - - - - - Contributions from other governments 91,207,011 96,021,737 104,876,618 106,643,483 107,209,275 Total revenues Expenditures
Current:
6,309,774 9,906,448 10,139,013 10,433,996 14,997,382 General government 6,673,466 5,891,145 5,946,712 6,148,462 6,958,230 Community services 5,533,197 5,878,601 6,003,043 6,766,780 6,367,421 Planning 15,610,695 20,013,765 16,252,868 16,775,133 15,443,259 Public ways and facilities 34,156,673 36,325,983 35,513,526 36,293,174 37,413,274 Public safety 17,291,140 9,822,627 2,581,289 5,341,641 14, 632,717 Capital outlay Debt service:
1,416,140 1,550,208 1,845,020 1,920,799 2,231,358 Principal 1,326,672 1,762,714 1,465,341 1,385,192 1,301,407 Interest - - - - - Refunding escrow - - - - - Bond issuance costs 2,900 6,400 6,314 4,801 6,901 Other 88,320,657 91,157,891 79,753,126 85,069,978 99,351,949 Total expenditures Excess (deficiency) of revenues
2,886,354 4,863,846 25,123,492 21,573,505 7,857,326 over expenditures Other Financing Sources (Uses)
20,421,754 15,259,176 10,912,021 23,040,297 21,696,840 Transfers in (26,518,011) (17,456,285) (9,790,433) (26,332,213) (26,350,764) Transfers out - - - - - Bonds issued - - - - - Payment to escrow agent 49,350 52,160 51,484 54,502 9,469 Contributions from other governments - - - - - Contributions to other governments - - - - 39,107 Proceeds from sale of property - - - - 189,913 Subscription-Based Information Technology Arrangements (6,046,907) (2,144,949) 1,173,072 (3,237,414) (4,415,435) Tot al other financing sources (uses) (3,160,553)$ 2,718,897$ 26,296,564$ 18,336,091$ 3,441,891$ Net change in fund balances Debt service as a percentage of
3.85% 4.18% 4.32% 4.19% 4.37% noncapital expenditures
(Concluded)
Fiscal Year
SOURCE:
City of Simi Valley
163
222
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (see notes)
Gross Assessed Valuation1
Total
Fiscal Residential Commercial Industrial Other Secured
Year Property Property Property Property Property
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 2022-23 19,381,671,145 1,676,065,194 1,127,218,942 414,341,063 22,599,296,344 (Continued)
NOTES:
2. Valuations are established by the County Assessor of the Count y 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 Propositi on 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 incr ease of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that time, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above repres ents 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 incl udes 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 establishin g property tax-related revenues.
164
223
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS (see notes)
Gross Assessed Valuation1
Total
Percent Direct Fiscal
Utility2 Unsecured Total Change Tax Rate Year
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 - 425,623,377 23,024,919,721 8.0% 1.00% 2022-23 (Concluded)
165
224
2013-14 2014-15 2015-16 2016-17 2017-18
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 0.059800 0.061800 0.054100 0.052800 0.079100 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 Ventura Community College District 0.016700 0.017600 0.013000 0.015500 0.015100 Total direct and overlapping 1.080000 1.082900 1.070600 1.071800 1.097700 (Continued)
NOTES:
Overlapping rates are those of local and county governments that apply to 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.
CITY OF SIMI VALLEY
DIRECT AND OVERLAPPING GOVERNMENTS
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
Fiscal Year
166
225
2018-19 2019-20 2020-21 2021-22 2022-23
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
0.077100 0.059400 0.086300 0.092200 0.070300 Simi Valley Unified School District
0.003500 0.003500 0.003500 0.003500 0.003500 Metropolitan Water District
0.015200 0.014300 0.015000 0.014800 0.014200 Ventura Community College District
1.095800 1.077200 1.104800 1.110500 1.088000 Total direct and overlapping (Concluded)
Fiscal Year
CITY OF SIMI VALLEY
DIRECT AND OVERLAPPING GOVERNMENTS
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
167
226
CITY OF SIMI VALLEY
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
PMI Villas, LLC 139,499,970 1 0.70%
Deleware Hidden Valley Grand Apartment, LLC 107,245,420 2 0.54% NF Creekside Apartments, LLC 80,967,607 3 0.41% IMT Capital V Wood Ranch, LLC 78,037,609 4 0.39% CG-USA Simi Valley, LP 55,155,859 5 0.28%
Lennar Homes California, Inc 53,589,085 6 0.27% PMI Overlook 50,482,200 7 0.25%
SE-Shadow Ridge LLC 50,197,017 8 0.25%
Welltower Propco Group, LLC 45,268,674 9 0.23% Miracle Mile Properties, LP 37,753,158 10 0.19%
Bank of America 123,145,846 1 0.84%
Tishman Speyer Archstone & Smith 105,550,072 2 0.72% Fountains Apartments, Ltd 77,856,859 3 0.53% NF Marina, LP 69,934,400 4 0.48%
South Street Center, Lessor 53,273,195 5 0.36% Fairfield Rancho Corrales 45,365,100 6 0.31% Mountaingate Associates, LLC 45,308,361 7 0.31% Stone Creek Investors 42,587,239 8 0.29% ESG Properties, LLC 42,038,183 9 0.29% CLF Simi Valley Business Trust 37,000,000 10 0.25% Total Taxable Assessed Value
Ten Largest Taxpayers 698,196,599$ 3.53% 642,059,255$ 4.37%
2023 2014
SOURCE:
HdL Coren Cone
168
227
Taxes Levied Collections in
Fiscal for the Percent Subsequent Percent
Year Fiscal Year1
Amount of Levy Years Amount of Levy
2013-14 30,473,337 29,392,698 96.45% 173,714 29,566,412 97.02% 2014-15 34,752,263 33,369,651 96.02% 172,386 33,542,037 96.52% 2015-16 35,106,767 34,029,242 96.93% 203,604 34,232,846 97.51% 2016-17 36,940,785 35,443,930 95.95% 245,290 35,689,220 96.61% 2017-18 40,130,554 37,295,853 92.94% 258,036 37,553,889 93.58% 2018-19 40,163,794 38,746,266 96.47% 257,143 39,003,409 97.11% 2019-20 45,628,206 44,163,945 96.79% 269,126 44,433,071 97.38% 2020-21 43,944,603 42,848,588 97.51% 266,393 43,114,981 98.11% 2021-22 45,702,217 44,411,063 97.17% 443,308 44,854,371 98.14% 2022-23 50,070,797 48,736,264 97.33% N/A 48,736,264 97.33% NOTES:
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 .
CITY OF SIMI VALLEY
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Fiscal Year of the Levy Total Collections to Date
In fiscal year 2022-23 the amounts reported under "Taxes Levied for the Fiscal Year" were updated to reflect revised amounts from the Ventura County Auditor-Controller.
SOURCE:
Ventura County Auditor-Controller
169
228
City of Simi Valley
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type
Activities
Lease Certificates Lease Total Percent of Debt
Fiscal Revenue of Right-of-Use Revenue Primary Personal Per Year Bonds Participation Leas es Bonds Government Income 55 Capita5 2014 -$ 1 21,964,953$ - $ - $ 21,964,953$ 0.45% 173.24 $ 2015 20,414,513 2 - 2 - - 20,414,513 0.45% 160.96 2016 20,315,876 - - - 20,315,876 0.43% 159.88 2017 30,184,317 3 - - - 30,184,317 0.59% 236.93 2018 41,147,298 4 - - - 41,147,298 0.83% 321.83 2019 39,632,520 - - - 39,632,520 0.78% 308.00 2020 37,983,674 - - - 37,983,674 0.64% 293.85 2021 36,040,016 - - - 36,040,016 0.60% 277.26 2022 34,020,579 - 2,576,192 33,236,283 69,833,054 1.16% 550.11 2023 31,913,735 - 2,542,954 31,675,185 66,131,874 1.10% 525.94 NOTES:
There is no general bonded outstanding debt in the governmental funds.
Governmental
Activities
1. On August 12, 2013, the City Council approved the early repayment of 1995 Simi Valley Public Financing Authority Lease Revenue Bonds and a call for full redemption of the bonds occurred on October 1, 2013.
2. In August 2014, the City issued $18,795,000 of 2014A Lease Revenue Refunding Bonds for the purpose of fully refunding the 2004 Certificates of Participation issue with a carrying amount of $21,705,000. The 2004 Certificates were refunded in full on August 26, 2014 and no portion of the 2004 Certificates remained outstanding as of June 30, 2015.
5. See Schedule of Demographic and Economic Statistics for personal income and population data.
3. In September 2016, the City issued Lease Revenue Bonds, 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.
4. 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 $5,655,845, maturing in March 2034.
SOURCES:
City of Simi Valley
University of California, Santa Barbara
170
229
CITY OF SIMI VALLEY
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023 (see notes)
Estimated Share
Outstanding Percentage of Overlapping
Overlapping and Assessment Debt Repaid with Property Taxes Debt 6/30/23 Applicable 1 Debt 6/30/23 Metropolitan Water District 19,215,000$ 0.633 % 121,631$ Ventura County Community College District 244,336,692 14.115 34,488,124 Simi Valley Unified School District 243,510,588 96.949 236,081,080 City of Simi Valley Community Facilities Dist No.2004-1 5,250,000 100.000 5,250,000 City of Simi Valley 1915 Act Bonds 465,000 100.000 465,000 Overlapping Other Debt
Ventura County General Fund Obligations 289,520,000 14.111 40,854,167 Ventura County Superintendent of Schools Certificates 7,350,000 14.111 1,037,159 Simi Valley Unified School District Certificates 2,975,642 96.949 2,884,855 Total overlapping and assessment debt 321,182,016
City Direct Debt
City of Simi Valley 2014A Lease Revenue Refunding Bond 15,100,413 100.000 15,100,413 City of Simi Valley 2016 New Clean Renewable Energy Bond 7,125,151 100.000 7,125,151 City of Simi Valley 2016 Tax Exempt Energy Bond 556,699 100.000 556,699 City of Simi Valley 2017 Tax Exempt Bond 4,409,524 100.000 4,409,524 City of Simi Valley 2018 Tax Equipment Lease 4,721,948 100.000 4,721,948 City of Simi Valley 2019 Tax Equipment Lease 31,675,185 100.000 31,675,185 Total direct debt 63,588,920
Total direct and overlapping debt 384,770,936$
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.
SOURCES:
City of Simi Valley
California Municipal Statisitcs, Inc.
171
230
2014 2015 2016 2017 2018
Debt limit 564,595,406$ 596,574,778$ 622,348,000$ 649,611,401$ 678,892,462$ Total net debt
applicable to limit - - - - - Legal debt margin 564,595,406$ 596,574,778$ 622,348,000$ 649,611,401$ 678,892,462$ 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
City of Simi Valley
Legal Debt Margin Information
Last Ten Fiscal Years
172
231
2019 2020 2021 2022 2023
708,668,102$ 863,434,490$ 769,737,484$ 799,742,442$ 863,434,490$ Debt limit Total net debt
- - - - - applicable to limit 708,668,102$ 863,434,490$ 769,737,484$ 799,742,442$ 863,434,490$ 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 2023
Assessed value 23,024,919,721$
Debt limit (3.75% of assessed value)1 863,434,490
Less: General obligation bonds -
Legal debt margin 863,434,490 $
Fiscal Year
City of Simi Valley
Legal Debt Margin Information
Last Ten Fiscal Years
173
232
Personal Per Capita Public
Fiscal Income Personal Median School Unemploymen t
Year Population (in thousands) Income Age Enrollment Rate 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% 2023 125,740 5,985,933 47,606 37.7 15,861 4.2%
CITY OF SIMI VALLEY
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
SOURCES:
Simi Valley Unified School District
State of California Employment Development Department
University of California, Santa Barbara
174
233
CITY OF SIMI VALLEY
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Employed Employed
Employer Employees Rank Labor Force Employees Rank Labor Force Simi Valley Unified School District 1,991 3.12% 2,311 1 3.32% Adventist Health, Simi Valley 1,078 1.69% 839 2 1.20% Aerovironment, Inc. 875 1.37% 398 7 0.57% Meggitt Safety Systems, Inc. 580 0.91% 503 5 0.72% Milgard Windows & Doors 477 0.75% 310 9 0.44% City of Simi Valley 486 0.76% 519 4 0.74% Rancho Simi Parks & Recreation District 328 0.51% 613 3 0.88% Entertainment Earth 225 0.35%
Polytainer Inc 164 0.26%
Vista Professional 130 0.20%
Albertson's Grocery Store 247 10 0.35%
Walmart 426 6 0.61%
Vons Grocery Store 352 8 0.51%
Total 6,334 9.92% 6,518 9.35%
NOTE:
Of eighty-nine employers surveyed by the City of Simi Valley, thirty-eight employers responded (43%). 2023 2014
SOURCES:
City of Simi Valley
State of California, Employment Development Department
175
234
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government 57 61 53 58 56 54 60 60 59 59
Community services 29 31 27 24 27 27 20 20 19 19
Planning and Community
Services 40 39 36 36 33 30 32 31 37 38
Public ways and facilities 88 90 87 87 87 83 80 78 83 86 Public safety
Sworn police personnel 119 123 121 121 115 118 123 112 114 120 Civilians 52 52 49 50 53 47 44 45 54 48
Sanitation 51 54 47 54 53 52 53 49 44 41
W a t e r w o r k s d i s t r i c t n o . 8 4 54 34 54 14 04 13 53 23 83 8 Transit 38 39 38 42 40 40 38 37 36 37
Total 519 532 503 513 504 492 485 464 484 486
NOTE:
1. Employee count as of June 30 and does not include temporary employees or part-time crossing guards.
CITY OF SIMI VALLEY
CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year1
SOURCE:
City of Simi Valley
176
235
CITY OF SIMI VALLEY
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government
Business tax applications
and renewals 9,709 9,643 9,709 9,437 9,028 9,403 7,675 7,223 8,092 8,225 Business tax receipts issued 8,936 8,563 9,480 8,366 7,922 7,315 7,396 7,779 8,912 8,525 Business tax revenues ($) 1,601,875 1,742,469 1,786,153 1,787,587 1,967,065 2,106,344 2,112,049 2,190,665 2,343,050 2,436,816 Community services
Cultural arts center events 362 354 378 392 369 370 357 - 176 338 Cultural arts center attendance 38,643 36,403 39,473 36,248 38,913 33,564 26,675 - 9,151 26,620 Senior center attendance 182,368 172,233 160,805 153,803 166,441 172,079 145,505 40,975 62,745 83,896 Library card holders 20,498 28,298 33,830 39,135 45,159 46,406 38,423 34,382 33,157 34,959 Library total collection 139,104 146,623 158,596 170,848 164,748 161,450 136,071 140,972 127,248 122,962 Library total circulation 344,358 330,838 333,068 285,089 299,182 317,085 333,683 247,680 362,358 412,936 Planning
Building permits 2,382 2,054 2,200 2,500 2,600 2,750 2,500 2,950 1,724 1,307 Plumbing, mechanical,
and electrical permits 3,473 3,213 2,950 3,400 3,640 3,750 3,200 3,450 3,918 4,807 Permit valuation ($ in thousands)
1 55,300 41,766 66,800 76,800 71,300 76,740 63,500 65,750 216,662 94,948 Public Safety
Arrests 2,961 3,459 3,377 2,939 3,134 2,964 2,381 1,762 1,473 1,436 Enforcement citations 8,518 8,308 8,300 6,936 8,988 8,230 4,703 2,454 3,340 3,809 Public ways and facilities
Street resurfacing (miles) 5.67 3.93 3.73 6.38 10.12 23.77 10.12 1.40 6.12 11.60 Sanitation
Wastewater customers 36,796 36,761 36,769 37,079 36,949 35,773 37,395 36,874 37,571 37,948 Average dry weather flow (million gallons per day 8.50 8.10 7.80 7.70 7.92 7.78 7.78 7.70 7.60 7.70 Waterworks district no. 8
Customers2 25,093 25,585 25,664 25,558 25,433 25,622 25,251 25,548 25,666 25,867 Water delivered (million gallons) 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 4,010.0 Transit
Fixed-route revenue miles 426,057 426,057 404,857 380,354 378,284 376,506 387,056 409,044 407,112 401,305 Fixed-route passengers 347,929 378,452 333,619 364,810 251,917 266,718 181,098 121,642 131,392 161,404 Fixed-route revenue hours 25,551 25,551 25,346 26,904 27,340 26,727 25,282 26,788 29,816 26,993 Paratransit revenue miles 183,407 172,444 158,604 160,043 162,551 159,508 110,289 71,396 84,476 127,077 Paratransit passengers 50,308 45,364 43,485 45,009 43,406 50,134 29,133 22,394 33,238 45,432 Paratransit revenue hours 17,984 17,009 17,356 17,832 17,709 17,226 11,730 5,790 6,620 8,932 NOTES:
1. Increase in permit valuation in 2022 is due to a change in the calculation methodology resulting from the ERP system upgrade.
2. Balance of community, approximately 13,889 customers, serviced by Golden State Water Co. during fiscal year 2023.
Fiscal Year
SOURCES:
City of Simi Valley
Golden State Water Co.
177
236
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Public safety
P o l i c e s t a t i o n s 1111111111
Fleet size 96 97 99 101 103 103 104 98 98 99
Public ways and facilities
Streets (miles) 326.91 332.69 336.41 337.57 337.57 337.57 337.57 337.57 337.73 337.73 Streetlights 8,241 8,225 8,223 8,243 8,268 8,479 8,382 8,382 8,382 8,382 Traffic signals 121 121 121 121 121 121 121 121 121 121 Sanitation
Sewerlines (miles) 374 374 374 374 374 374 380 380 400 400 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)1 380 380 380 380 337 345 345 345 345 331 Fire hydrants 2,844 2,844 2,844 2,844 2,875 2,850 2,874 2,853 2,853 2,854 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
B u s e s - 4 0 f o o t 1 1888888855
B u s e s - 3 5 f o o t 0333333366
Paratransit Vehicles 11 11 11 12 12 12 12 12 12 12
NOTES:
No capital asset indicators are available for the general government, communit y services, or planning function.
1. Reduction in water main miles in fiscal year 2018 reflects updates in GIS accuracy.
CITY OF SIMI VALLEY
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
Source:
City of Simi Valley
178
237