C
ITY OF SIMI VALLEY
MEMORANDUM
J
anuary 27, 2025
T
O: 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
F
ROM: Department of Administrative Services
S
UBJECT: ACCEPTANCE OF ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR FISCAL YEAR 2023-24
STAFF RECOMMENDATION
I
t is recommended that the City Council/Boards of Directors/Board of Trustees receive and file the Annual Comprehensive Financial Report for Fiscal Year 2023- 24, and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c).
BACKGROUND AND OVERVIEW
T
he Annual Comprehensive Financial Report (AC FR) for Fiscal Year 2023-24 has been prepared in accordance with generally accepted accounting principles to present the results of operations and the financial condition of the City, District, and Authorities as of June 30, 2024 , and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2023-24 have received an “unmodified” opinion from an independent auditor, indicating no areas of material misstatement.
T
he draft ACFR was distributed to the City Council/Boards of Directors/Board of Trustees on January 21, 2025, and was placed on the City’s website on January 7, 2025, for public review. A copy of the draft ACFR was also available for public review in the City Clerk’s Office and the Simi Valley Public Library.
T
he draft Fiscal Year 2023-24 ACFR includes the following sections:
• Introductory Section
• Financial Section
• Statistical Section
AGENDA ITEM NO.
Consent (2)
Annu
ally, 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 also benefits the City’s reputation with bond rating agencies and the financial markets. The draft ACFR for Fiscal Year 2023-24 has been submitted to the GFOA, and staff is confident of receiving the Certificate once again for the 45th year in a row.
In pr
ior years, staff presented the ACFR to the City Council for acceptance during the same meeting in which the auditors delivered their annual presentation on the fiscal year audits, which include both the City -wide financial statement audit and the Single Audit.
The City -wide financial statement audit reviews the City’s ACFR and related financial processes, while the Single Audit examines the City’s Schedule of Expenditures of Federal Awards and ensures compliance with federal award program requirements.
Ty
pically, the ACFR is completed within six months of the fiscal year-end, while the Single Audit is due and completed within nine months of the fiscal year -end. To provide the ACFR to the City Council more promptly, staff is presenting it for acceptance now rather than waiting for the Single Audit to be finished. The auditors’ presentation on both audits will be given to the City Council at a future date, following the completion of the Single Audit. This change is effective this year.
FINDINGS AND ALTERNATIVES
A s
ummary of the information contained in each of the three sections of the draft ACFR is presented below:
Int
roductory Section
This section includes a transmittal letter that 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.
Fina
ncial 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 Public Library
2 The Financial Section is further broken down into the following subcategories:
• Manag
ement’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 the aggregate, including budget-to-actual comparisons for major funds that have legally adopted annual budgets, Proprietary Fund Statements, and Fiduciary Statements.
- Reconciliations of the individual fund statements to the government -wide statements.
• 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.
Sta
tistical Section
The Statistical Section contains general statistical information about the community and City organization, including:
• Net
Position by Component; and Changes in Net Position
• Fund Balances of Governmental Funds; and Changes in Fund Balances of Governmental Funds
• Assessed Value of Taxable Property
• Direct and Overlapping Governments Property Tax Rates • Principal Property Tax Payers
• Property Tax Levies and Collections
• Ratios of Outstanding Debt by Type; Computation of Direct and Overlapping Debt; and Legal Debt Margin
• Demographic and Economic Statistics; and Principal Employers • City Government Employees by Function; Operating Indicators by Function; and Capital Assets Statistics by Function
As
part of the annual financial reporting process, the City utilizes the services of an independent public accounting firm, which performs an audit of the City’s financial records. This audit is conducted to ensure that the City’s financial records fairly present, in all material respects, the financial position of the City and the results of its operations for the fiscal year. Another important purpose of the audit is to assess the City’s accounting principles and internal control structure relative to its financial statements.
Fiscal Year 2023- 24 represents the third year of a three -year audit contract (with one, two-year renewal option) with the firm 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.
3 In 2007, the City implemented the provisions of Government Code Section 37208(c), which allows the City Council/Boards of Directors/Board of Trustees ratification and approval of the audited financial statements presented in the draft ACFR to serve as annual ratification of the warrants and checks issued for budgeted payrolls and demands submitted during the period covered by the ACFR. The following alternatives are available to the City Council/Boards of Directors/Board of Trustees:
1. Rec
eive and file the draft Annual Comprehensive Financial Report (ACF R) for Fiscal Year 2023-24 as submitted, and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c);
2. Rec
eive and file the draft ACFR and request additional clarification from the auditor in certain areas of the report; or,
3. Pr
ovide staff with further direction.
St
aff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I mo v
e to receive and file the Fiscal Year 2023- 24 Annual Comprehensive Financial Report (ACFR) and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c).
SUMMARY
The dr
aft Annual Comprehensive Financial Report ( ACFR) for Fiscal Year 2023- 24 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, 2024 , and is hereby submitted to the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2023-24 have received an “unmodified” opinion from an independent auditor, indicating no areas of material misstatement.
_____________________________________
Carolyn Johnson, Deputy City Treasurer
Administrative Services Director
Pr
epared by: Marvin Lopez, Deputy Administrative Services Director, Fiscal Services INDEX Page
Dr
aft Annual Comprehensive Financial Report (ACFR) for FY 2023-24 ...... 5 4 CITY OF
SIMI VALLEY
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED
JUNE 30, 2024
STATE OF CALIFORNIA
5 Fred D. Thomas, Mayor • Rocky Rhodes, Mayor Pro T em • Mike Judge, Council Member • Dee Dee Cavanaugh, Council Member • Elaine P . Litster, Council Member
CITY OF
SIMI VALLEY
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
STATE OF CALIFORNIA
FISCAL YEAR ENDED
JUNE 30, 2024
PREPARED BY THE FISCAL SERVICES DIVISION
6 City of
o� SIMI
VALLEY
CALIFORNIA
7 ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
INTRODUCTORY SECTION PAGE
Transmittal Letter ............................................................................................ i Officials of the City of Simi Valley .................................................................... x Organization of the City of Simi Valley ............................................................. xi Certificate of Achievement for Excellence in Financial Reporting .................... xii
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................... ...... 1 Management’s Discussion and Analysis (Unaudited) ...................................... ...... 5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ........................................................................ ..... 25 Statement of Activities .............................................................................. ...... 26
Fund Financial Statements
Balance Sheet – Governmental Funds .................................................... ...... 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position – Governmental Activities ............................ 30 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ............................................................................. ..... 31 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................... ..... 33 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ....................................................... ..... 34 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – SHA to Community Development Agency Housing Administration ............................................................................ ..... 35 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Development Related Fees .................................. ..... 36 Statement of Net Position – Proprietary Funds ........................................ ..... 37 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds .................................................................................. ..... 38 Statement of Cash Flows – Proprietary Funds ......................................... ..... 39 Statement of Fiduciary Net Position – Fiduciary Funds ............................ ..... 40 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ......... ..... 41
8 Tabl
e of Contents (continued)
PAGE
Notes to the Basic Financial Statements
Notes ......................................................................................................... 42 Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................................................. 108 Schedule of Plan Contributions – Miscellaneous Plan ................................ 1 10 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan .............................................................................................. 1 12 Schedule of Plan Contributions – Safety Plan ............................................ 114 Schedule of Changes in Net OPEB Liability and Related Ratios ............... 116 Schedule of OPEB Plan Contributions ........................................................ 118 Supplementary Information
Nonmajor Governmental Funds
Description of Nonmajor Governmental Funds ....................................... 1 20 Combining Balance Sheet ....................................................................... 123 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................................................................................... 128 Schedules – Budget and Actual – Individual Funds
CalHome Grant Fund .............................................................................. 133 HOME Grant Fund ................................................................................... 134 Planning Grants Fund ............................................................................. 135 Pu
blic, Education, and Government Fees Fund ...................................... 136 Gasoline Tax Fund .................................................................................. 137 Road Maintenance and Rehabilitation Account Fund ............................. 138 Transportation Funds .............................................................................. 139 Library Services Fund .............................................................................. 1 40 Opioid Settlements Fund .......................................................................... 1 41 Police Grants Fund ................................................................................. 1 42 Community Development Block Grant Fund ........................................... 143 Landscape Maintenance District No. 1 Fund ............................................ 144 Internal Service and Fiduciary Funds
Combining Statement of Net Position – Internal Service Funds ............... 145 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ......................................................... 146 Combining Statement of Cash Flows – Internal Service Funds ............... 147 Combining Statement of Fiduciary Net Position – Private-Purpose Trust Funds .................................................................................................... 148 9 Table of Contents (continued)
PAGE
Internal Service and Fiduciary Funds (Continued)
Combining Schedule of Changes in Fiduciary Net Position – Private- Purpose Trust Fund .............................................................................. 1 50 Combining Schedule of Fiduciary Net Position – Custodial Funds .......... 1 52 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ..................................................................................... 153 Combining Statement of Fiduciary Net Position – Pension And Other Postemployment Benefits (OPEB) Trust Funds .................. 154 Combining Statement of Changes in Fiduciary Net Position – Pension And Other Postemployment Benefits (OPEB) Trust Funds ..... 155
STATISTICAL SECTION (UNAUDITED)
Description of Statistical Contents ............................................................. 156
Financial Trends
Net Position by Component – Last Ten Fiscal Years ........................... 157 Changes in Net Position – Last Ten Fiscal Years ................................. 159 Fund Balances of Governmental Funds – Last Ten Fiscal Years ......... 163 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................................................... 165
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................................................................ 167 Direct and Overlapping Governments – Property Tax Rates – Last Ten Fiscal Years ...................................................................... 169 Principal Property Taxpayers – Current Year and Nine Years Ago ...... 1 71 Property Tax Levies and Collections - Last Ten Fiscal Years ............... 1 72
Debt Capacity
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .............. 173 Computation of Direct and Overlapping Debt ........................................ 174 Legal Debt Margin – Last Ten Fiscal Years .......................................... 175
Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ........... 177 Principal Employers – Current and Nine Years Ago ............................. 178
Operating Information
City Government Employees by Function – Last Ten Fiscal Years ...... 179 Operating Indicators by Function – Last Ten Fiscal Years ................... 1 80 Capital Assets Statistics by Function – Last Ten Fiscal Years ............. 1 81 10 11
INTRODUCTORY SECTION
INTRODUCTORY SECTION
12 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
i
December 20, 2024
To the Honorable Mayor, Members of the City Council, City Manager, and Citizens 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, 2024.
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 ba sis 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 abso lute 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, 2024, 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 e valuating 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, 2024, 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 13 The independent audit of the financial statements of the City was part of a broader, federally mandated “single audit” designed to meet the special needs of federal grantor agencies. The standards governing single audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports will be available in the City’s separately issued Single Audit Report.
GAA
P 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.
Pro
file of the City of Simi Valley
The Ci
ty, incorporated in 1969, has a population of 124,262 and is the second largest of Ventura County’s ten cities. It is located on the County’s southeastern border, nestled between the Santa Susana Mountains and the Simi Hills. The City, which covers a land area of 42.4 square miles, has a mean elevation of 765 feet.
The Ci
ty 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 follow ed 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 Ci
ty 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 var ious department heads. The City Manager is responsible for the appointment of department heads and the City Clerk and serves as the City Treasurer.
Four
operating departments report to the City Manager: Police, Public Works, Administrative Services, and Environmental Services. The Simi Valley Public Library, Cultural Arts Center and Senior Center all operate under the umbrella of City Administration. The City has its own sanitation division that collects and treats wastewater. Certain potable and reclaimed water services are provided through the legally separate Ventura County Waterworks District No. 8, which functions, in essence, as an agency of the City and, therefore, has been included as an integral part of the City’s financial statements. The City also provides transportation services via the Simi Valley ii
14 Transit system. The County of Ventura provides fire, paramedic, and animal regulation services. The Rancho Simi Recreation and Park District, an independent special district, provides leisure service facilities and activities.
The annu
al 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 Ci
ty reports on a fiscal year basis from July 1 to June 30. Departments and agencies submit current draft proposed budgets, requests for budget increases ( policy items), requests for replacement of equipment items ( capital asset r equests), and possible budget reductions ( reduction proposal) to the Deputy 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 Capital Improvement Program to the City Council for review in mid -May. A citizen participation meeting is held for public review and comment on the Proposed Budget.
The City Council conducts one or more budget hearings during the month of June, modifies the Proposed Budget and Draft Five- Year Capital Improvement Program as appropriate, and adopts the Annual Budget and Five-Year Capital Improvement Program no later than June 30. The City Council is committed to a budget process that is open and clear to the public and that provides for public input.
Expenditures are budgeted at the line-item level according to fund and operational area.
Overall budgetary control, however, is exercised at the fund level (legal level of budgetary control, that is, the level at which management cannot overspend the budget without the approval of the governing body), except for the City’s General Fund, where control is exercised at the department level. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager is also authorized to make administrative amendments to the budget within a fund and between departments within that fund.
Interim financial reports can be made available to the general public upon request . 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. Budget -to- actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General fund and major special revenue funds, this comparison is presented in the Basic Financial Statements section of this report. For nonmajor governmental funds with appropriated annual budgets, this comparison is presented in the Supplementary Information section. iii
15 Factors Affecting Financial Condition
The in
formation 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. The City of Simi Valley experienced an economic slowdown in fiscal year 2023-24 similar to trends observed in the County of Ventura and State of California.
Three primary factors have contributed to this slowdown: 1) stimulus from the COVID-era ended, 2) housing inventory continues to fall short relative to needs, and 3) interest rates have been rising causing borrowing costs to go up. The impact of these items to the City’s primary revenue sources are as follows.
Proper
ty tax this fiscal year increased by $1.9 million, or 4.6%. With limited housing stock, property demand and thus values, remain high. Although the volume of housing turnover has slowed due rising interest rates, the overall property tax base across the City has continued to trend upward.
Sales
tax during the fiscal year experienced a modest decline of $0.4 million, or 1.6%.
With the conclusion of COVID-era stimulus, funds that were previously accessible to both households and businesses are depleting. Concurrently, inflation has driven up consumer prices, further reducing overall spending. Additionally, limited housing availability and affordability have led to a population decline as residents seek more cost -effective locations. As the population decreases, economic activity also reduces. Lastly, rising interest rates have increased borrowing costs for both individuals and businesses, hindering investments and spending in local enterprises.
Franc
hise taxes, business taxes, and other taxes remained fairly stagnant, with a combined increase of less than $0.1 million, or 0.4%, as compared to the prior fiscal year.
Even
with this expected economic slowdown, our primary revenue source, property tax, has stayed strong, and the slowing of sales tax revenue has been accounted for in the fiscal year 2024- 25 structurally balanced budget, which provides for a continuation o f service levels and funding of capital improvements to maintain and further improve the City.
These economic factors are further reflected in the City’s unemployment rate , which increased to 4.4% as of June 30, 2024, as compared to 4.2% as of June 30, 2023. This increase is consistent with observations State-wide.
The Ci
ty’s commercial and industrial base continues to be diverse. Major industries with headquarters or divisions located within the City’s boundaries, or in close proximity, include retail sales, real estate lending, health care, computer hardware, and light manufacturing.
The
City has experienced a reduction in residential development for fiscal year 2023-24, with an estimated 124 new housing units built compared to the previous fiscal year of 537 iv
16 new units built. Cont ributing factors toward the reduction in housing production include developers a nticipating household budget constraints with inflation at a 30- year high, rising costs of construction, and a volatile interest rate environment. This is also an off- cycle year where prospective projects are being processed to obtain its entitlements or under preconstruction reviews including plan checking. 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 S
tate’s recent response to the housing crisis mandates the City, and all local municipalities, to zone and stimulate housing production. As a result, development revenues could continue to increase through housing production from previously approved projects that have been in the City’s development pipeline. Projects approved, amended, and/or are currently under construction include the Churchill Apartments with 91 units, and the Ridge Apartments with 66 units . Furthermore, growing demand for accessory dwelling units (ADUs) throughout the City further contributes to the variety of the City’s housing stock, with an estimated 90 ADUs built compared to the previous period of 84 ADUs built.
Long-te
rm Financial Planning. The City continues to implement projects funded by the State SB2 and Local Early Action Planning (LEAP) grant programs. The State’s SB2 grant provides funding for the Permanent Local Housing Allocation (PLHA), which is an annual allocation intended to provide financial assistance to local governments to help implement plans to facilitate housing affordability, particularly for low - to moderate- income households under the City’s Homebuyer Assistance Program . Additionally, the State grant programs 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 for completion by 2024 calendar year-end.
Furt
hermore, 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 slowing as expected. Prior year sales tax revenue increases 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 business es 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 into 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.
v
17 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 2024-25 budget continued the City’s trend of adopting a structurally balanced budget.
The Ci
ty has prioritized fiscal strength within the organization and has maintained fiscal stability through the development and management of sustainable annual budgets. This financial prudence, alongside well-managed revenues and expenditures, has enabled the City to make significant investments in community infrastructure, such as streets and roads, and to address the ongoing CalPERS obligations. Key street projects have included minor and major street repaving, crack sealing, sign and signal repairs and upgrades, pothole filling, street striping, and the replacement of curbs, gutters, and sidewalks, as well as the removal of street trees where necessary.
Despi
te 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 $78.1 million, a very healthy and stable position.
The total bonded debt of the City is currently $59.8 million, decreasing from $63.6 million in the prior fiscal year. The decrease is attributed to $3.8 million of debt service payments made throughout this fiscal year.
The to
tal debt of the Successor Agency to the CDA, reported in the fiduciary funds, is $12.3 million, with a debt service requirement of approximately $ 1.5 million in the next year (principal and interest), which is now paid through the County Redevelopment Property Tax Trust Fund (RPTTF).
Financial Policies. Actuals for the fiscal year resulted in a General fund net decrease in fund balance of $1.9 million. The City intends to develop structurally balanced budgets that will put the organization on a strong financial foundation. Programs and services will need to be analyzed and prioritized in order to maintain balance. The most significant fiscal issues include, but are not limited to, aging infrastructure, unfunded pension liability, deferred maintenance, and replacement of the aging radio system. The City’s landscape assessment districts continue to be subsidized by the General Fund.
In Apri
l 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.
vi
18 Major Initiatives
As
the municipal and economic landscapes continue to evolve, the City is committed to providing high quality service to its citizens. Some of the City’s major initiatives in this effort are listed below.
• Impl
ement the City's Economic Development Strategic Plan.
• Launch a text communication tool to enhance communication with residents. • Assist the Council On Aging in developing a Strategic Plan to help identify how to continue delivering critical programs that reflect the current needs of the senior community, and adapt to the future needs of the community. • Initiate the Senior Center patio cover project by securing architectural services for design proposals and soliciting proposals for construction. • Implement an Artificial Intelligence (A.I.) policy to manage risks presented by A.I. systems.
• Begin implementation of vendor self-service and accounts payable ACH payments. • Explore, evaluate, and implement eProcurement and contract management solutions that will help improve and streamline the City’s procurement function. • Begin the implementation of a public works asset management and work order system.
• Begin the replacement of the City’s 20-year-old radio system. • Implement an accessibility upgrade grant program that provides financial assistance for small businesses required to upgrade or install building accessibility features in order to comply with California Title 24 and the American’s with Disabilities Act.
• Develop and implement a public outreach program to identify and inform small business community members who are within the scope of AB 2164 funding opportunities.
• 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 objective design and development standards to comply with state law.
• Develop and implement expedited electronic plan review for small business and retail tenant improvement projects that provides an equivalent service to the legacy over-the-counter process.
• Implement the use of Administrative Citations including establishing an appeal process to address the recurrence of violations of the Municipal Code in a timely and efficient manner to eliminate nuisances for the protection and benefit of the community.
• Initiate a multi-year project for a Citywide update of flood risks and FEMA mapping which will significantly reduce the size of the Special Flood Hazard Area which mandates flood insurance for federally insured mortgages. • Continued administration of the multi -year SiFi Networks Simi Valley FiberCity project which is expected to involve over 200 separate encroachment and building permits.
vii
19 • Monitor and replace damaged asphalt in bike and vehicle lanes to minimize pavement imperfections throughout the City. Use available resources to make seam repairs on arterial streets for further reduction of potholes. • Complete Phase 2 of the energy saving HVAC control system upgrade at City Hall. • Work with the Countywide Stormwater Management Group and the Watershed Management Consultant to obtain Regional Water Quality Control Board approval of the Watershed Management Programs (WMP) and Coordinated Integrated Monitoring Program (CIMP).
• Provide Police Department personnel on- going training related to social and cultural issues.
• Complete installation of the Flock License Plate Reader System. • Reduce Police Department expenditures by offering additional local training opportunities and hosting training events at the station. • Conduct additional DUI enforcement and education activities with grant funds received from the Office of Traffic Safety and CHP Cannabis Tax Fund Grant Program.
• Complete the Tri-cities Evacuation Plan and the VC Sheriff Emergency Services County Evacuation Plan and confirm interoperability.
• Perform a Countywide waste hauler program review and implement an in- depth audit of SVWQCP permitted waste hauler manifests in order to better understand the potential impact upon the SVWQCP.
• Develop and implement an action plan for education and outreach to commercial, industrial, and institutional (CII) property owners regarding the elimination of all non-functional turf established under AB 1572, commencing in phases from January 1, 2027, through January 1, 2031.
• Provide ongoing outreach to encourage utility billing customers to enroll in paperless billing to reduce cost and environmental impact.
Gann
Appropriations Limitation. Article XIIIB of the State of California Constitution sets limits on the amount of tax revenues that the City can appropriate within a given fiscal year. Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations, and other non -tax proceeds are not subject to the limit.
Exemptions are also made for voter -approved debt and debt that existed prior to January 1, 1979, and for the cost of compliance with Court or Federal govern ment mandates. Fiscal year 1978- 79 appropriations serve as the basis for this limit, with adjustments being made annually to reflect increases in population, the cost of living, and service responsibility transfers. The City’s appropriations limit for the fiscal year ended June 30, 2024, was $96,712,512. Actual tax revenues subject to this limit and received and appropriated during the fiscal year were well under this amount.
Awards and Acknowledgements. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This was the 44
th consecutive year (fiscal years ended 1980- 2023) that the City received this prestigious award. To be awarded a Certificate of Achievement, a viii
20 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. The City believes that its current ACFR continues to meet the Certificate of Achievement Program’s requirements and is submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Fiscal Services 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.
Respec
tfully submitted,
Carolyn Johnson
Administrative Services Director
ix
21 OFFICIALS OF THE CITY OF SIMI VALLEY
(as of June 30, 2024)
Members of the City Council
FRED
D. THOMAS, Mayor
ROCKY RHODES, Mayor Pro Tem
MIKE JUDGE, Council Member
DEE DEE CAVANAUGH, Council Member
ELAINE P. LITSTER, Council Member
Administrative Staff
Brian P. Gabler ........................................................................................................ City Manager Alger
ia R. Ford ......................................................................................................... City Attorney Carol
yn Johnson ......................................................................... Administrative Services Director Str
atis Perros ............................................................................. Environmental Services Director Ron Fuchi
waki ............................................................................................ Public Works Director Stev
e Shorts .......................................................................................................... Chief of Police x
22 • Budget Development
• Debt Administration
• Banking
• Accounts Payable
• Payroll Processing
• Year End Annual Audit
• Financial Reporting
• Computer Operations/
Security/Support
• Database Administration
• Systems Analysis/Design/
Development
• GIS
• General Billing
• Utility Billing
• Purchasing
• Graphics/Printing
• Mail & Messenger
Services
• Planning Commission
• Affordable Housing
• Building and Safety
• Advanced / Current
Planning
• General Plan Coordination
• CDBG Program
• Housing Rehabilitation
Assistance
• Building Code Compliance
• Building Permits &
Inspections
• Structural & Life Safety
Plan Review
• Code Enforcement
• Property Maintenance
• Cable Television
• Animal Services
• Neighborhood Councils
• Community Projects
Grant
• Administration
• Office of Emergency
Services
• Patrol Bureau
• Community Policing
Bureau
• Traffic Bureau
• Detective Bureau
• Special Enforcement
Bureau
• Professional Standards
Bureau
• Communications Bureau
• Records Management
Bureau
• Fiscal Services Unit
• Maintenance Unit
• Administration
• City Engineering
• Traffic Engineering
• Utilities Engineering
• Maintenance Services
• Sanitation Services
• Waterworks District
• Environmental Compliance
• Hazardous Materials
• Household Hazardous
Waste Management
• Water Conservation
• Solid Waste Management
• Crossing Guards
• Simi Valley Transit
• ADA / Dial-A-Ride Services
• Banner Program
Organization of the
City of Simi Valley
xi
23 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of
Simi Valley
California
For its Annual
Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
xii
24 FINANCIAL SECTION
FINANCIAL SECTION
25 FISCAL YEAR ENDED
JUNE 30, 2024
INDEPENDENT
AUDITOR’S REPORT
26 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, 2024, the budgetary comparison for the general fund, successor housing agency to community development agency housing administration special revenue fund and the development related fees special revenue fund for the year ended June 30, 2024, 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, 202 4, and the respective changes in financial position, the budgetary comparison for the general fund, successor housing agency to community development agency housing administration special revenue fund and the development related fees 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.
28 2
Emphasis of Matters
Implementation of a New Accounting Standard
As discussed in Note I-D, the City implemented the provisions of Governmental Accounting Standards Board Statement No. 100, Accounting Changes and Error Corrections —an amendment of GASB Statement No. 62, during the fiscal year ended June 30, 2024 . Our opinion is not modified with respect to this matter.
Prior Year Adjustments
As discussed in Note IV-G to the financial statements, the 2023 financial statements have been restated to correct a misstatement. Our opinion is not modified with respect to this matter.
Abandonment of Construction-in-Progress Projects
During the fiscal year 2024, the City determined that certain construction projects amounting to $2.1 million were no longer feasible and wrote off the previously capitalized construction-in- progress costs as a special item: loss on abandonments of projects in Waterworks and Sanitation enterprise funds. Our opinion is not modified with respect to this matter.
R
esponsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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 opinion s. 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 i s a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
29 3
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
A
ccounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios - miscellaneous and safety plans, schedules of pension plan contributions - miscellaneous and safety plans, schedule of changes in net OPEB liability and related ratios, and schedule of OPEB plan contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
30 4
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 nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial stat ements 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 opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
O
ther Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued a report dated December 20, 2024 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, 2024
31 MANAGEMENT’S DISCUSSION
AND
ANALYSIS (UNAUDITED)
MANAGEMENT’S DISCUSSION
AND ANALYSIS (UNAUDITED)
32 CITY OF SIMI VALLEY • 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 City for the fiscal year ended June 30, 2024.
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.
Fina
ncial Highlights
• At
the close of the fiscal year, the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $473.0 million. • The
City’s total net position increased by $20.8 million. This increase was comprised of a $ 3.3 million increase in net investment in capital assets, a $0. 5 million decrease in restricted net position, and a $1 8.0 million increase in unrestricted net position. The increase in net investment in capital assets is a result of additional assets purchased or construction- in-progress completed during the fiscal year, net of related depreciation. The decrease in restricted net position is primarily due to the utilization of funds such as f unds restricted for streets and roads capital projects ($3.1 million) offset by increases in funds restricted for sewer and water projects ($ 1.3 million), funds restricted for major purposes such as grants ($1.0 million), and funds restricted for community development ($0.3 million). The large increase in unrestricted net position is primarily due to the fiscal year 2024 increases in the sanitation ($11.9 million) and waterworks ($5.0 million) unrestricted net positions.
• The
City’s total program and general revenues increased by $17.0 million. Charges for services increased by approximately $6.6 million as discussed below in the Government-Wide Financial Analysis section of the Management Discussion and Analysis. Grant revenues remained unchanged from the prior year. Meanwhile, City tax revenue sources, including property, sales, franchise, business, and other taxes held strong, resulting in a combined increase this year of approximately $1.6 million. Lastly, interest in investments revenue increased by $8.8 million primarily due to a larger investment portfolio as compared to the prior year, along with more favorable market conditions.
• As
of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $147.9 million, an increase of $ 3.8 million in comparison with the prior fiscal year. Of the ending fund balance, approximately
2.4% or $3.6 million is Nonspendable in form for long-term receivables and prepaid items; 32.1% or $47. 5 million is Restricted for housing programs, public improvements, streets and transportation, special programs, and law enforcement;
35.8% or $52.9 million is Committed to street projects, retiree benefits, specialized programs, equipment replacement, economic recovery, and prudent reserve; 5 33
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
30.2% or $44.7 million is Assigned to capital; and -0.5% or negative $0.7 million is Unassigned.
• At
the end of the current fiscal year, the Prudent Reserve established by the City Council totaled $16.1 million. This portion of Committed fund balance for the General fund is equal to 17.0% of budgeted General fund expenditures.
Over
view of the Financial Statements
Thi
s 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) Gov
ernment-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.
Gov
ernment-wide financial statements
The
government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private- sector business.
The City has presented information from prior years in this discussion for comparative purposes.
The s
tatement 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
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 34
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
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 statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City include general government, community services, planning, public ways and facilities, and public safety. The business -type activities of the City in clude Sanitation, Ventura County Waterworks District No. 8, and Transit.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near -term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government - wide financial statements. By doing so, readers may better understand the long- term impact of the government’s near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains over 70 individual governmental funds and sub- funds in its financial system and presents them grouped by related activities as four major and 25 nonmajor separate governmental funds for this report. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, 7 35
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
expenditures, and changes in fund balances for the four major funds: the General fund, the Successor Housing Agency (SHA) to Community Development Agency Housing Administration fund, the Development Related Fees fund, and the Streets and Roads fund. Data from the other 25 governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these nonmajor 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 funds to demonstrate compliance with the budget. Budgetary comparison schedules are also provided for the nonmajor special revenue funds in the Supplementary Information section.
Pr
oprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in government-wide financial statements. The City uses enterprise funds to account for its sanitation, waterworks, and transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its liability insurance and workers’ compensation insurance operations, 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 except for any residual balances outstanding between the governmental activities and business -type activities which are reported in the government-wide financial statements as “internal balances.” Pr
oprietary funds provide the same type of information as the government-wide financial statements, but in greater detail. The proprietary fund financial statements provide separate information for the sanitation, waterworks, and transit operations, all of which are considered major funds of the City. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the f orm of combining statements in the Supplementary Information section of this report.
Fiduc
iary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City holds these funds in a custodial capacity.
Fiduciary funds are not reflected in the government -wide financial statements because the resources of these funds are not available to support the City’s programs. Individual fund data for the fiduciary funds is provided in the form of combining schedules in the Supplementary Information section of this report.
The
City accounts for and reports upon three fiduciary fund types: Private-Purpose Trust funds, Custodial funds, and Pension and Other Postemployment Benefits (OPEB) Trust funds. The Private- Purpose Trust fund accounts for the assets, deferred outflow of 8 36
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
resources, and liabilities of the Successor Agency to 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. Custodial funds account for the collected assessments of the City in an agent capacity for the property owners for the payment of principal and interest amounts due to assessment district bondholders and initiating foreclosure proceedings, if appropriate. The 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.
No
tes 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.
Ot
her 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 nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information.
St
atistical 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.
Gov
ernment-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 $473.0 million at the close of the most recent fiscal year.
A
significant portion of the City’s net position (73.6%) reflects its net investment of $348.1 million in capital assets (land, buildings, infrastructure, machinery and equipment, and intangible assets) less any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investments in capital assets are reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An
additional portion of the City’s net position (19. 7%) represents resources of $93.4 million that are subject to external restrictions on how they may be used. The remainder 9 37
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
of the City’s net position of $ 31.5 million represents unrestricted net position (6. 7%).
Unrestricted net position may be used at the City’s discretion to meet the City’s ongoing obligations to citizens and creditors.
Ci
ty of Simi Valley’s Net Position
June 30, 2024 and 2023
2024 2023 2024 2023 2024 2023
Current and other assets 218,188,009$ 213,611,994$ 145,445,117$ 131,918, 415$ 363,633,126$ 345,530,409$ Capital assets 246,878,002 243,291,047 166,024,153 161,059,864 412,902,155 404,350,911 Total assets 465,066,011 456,903,041 311,469,270 292,978,279 776,535,281 749,881,320 Deferred outflows 62,921,203 69,877,194 12,078,619 14,615,357 74,999,822 84,492,551 Long-term liabilities
outstanding 249,057,991 257,242,799 70,295,459 76,522,279 319,353,450 333,765,078 Other liabilities 14,650,339 14,148,854 9,668,740 8,322,209 24,319,079 22,471,063 Total liabilities 263,708,330 271,391,653 79,964,199 84,844,488 343,672,529 356,236,141 Deferred inflows 27,467,992 21,822,271 7,354,102 4,047,908 34,822,094 25,870,179 Net position:
Net investment in capital
assets 214,227,084 209,775,571 133,921,622 135,124,145 348,148,706 344,899,716 Restricted 79,502,386 81,276,789 13,900,255 12,622,013 93,402,641 93,898,802 Unrestricted (56,918,578) (57,486,049) 88,407,711 70,955,082 31,489,133 13,469,033 Total net position 236,810,892$ 233,566,311$ 236,229,588$ 218,701,240$ 473,040,480$ 452,267,551$ 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. As noted above, the negative unrestricted balances are a result of accounting requirements for all local governments now to recognize their liabilit ies for unfunded pension and OPEB. Prior to this change in accounting standards, local governments were not permitted to report the full impacts of these liabilities on their statements of net position.
10 38
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
City of Simi Valley’s Changes in Net Position
Years Ended June 30, 2024 and 2023
2024 2023 2024 2023 2024 2023
Revenues:
Program Revenues:
Charges for services 8,742,432$ 8,892,311$ 75,097,500$ 68,354,236$ 83,839, 932$ 77,246,547$ Operating grants and
contributions 17,978,707 15,927,173 3,521,891 3,435,944 21,500,598 19,363,117 Capital grants and
contributions 940,645 2,143,432 2,424,619 3,387,969 3,365,264 5,531,401 General Revenues:
Property taxes 44,105,061 42,184,244 - - 44,105,061 42,184,244 Other taxes 34,674,768 35,014,440 - - 34,674,768 35,014,440 Investment earnings 8,134,385 3,137,714 5,667,740 1,848,136 13,802,125 4,985,850 Other 104,459 39,107 130,569 91,341 235,028 130,448 Total revenues 114,680,457 107,338,421 86,842,319 77,117,626 201,522,776 184,456,047 Expenses:
General government 37,729,276 25,359,462 - - 37,729,276 25,359,462 Community services 8,184,706 7,027,701 - - 8,184,706 7,027,701 Planning 7,105,430 6,540,620 - - 7,105,430 6,540,620 Public ways and facilities 22,331,792 18,555,545 - - 22,331,792 18,555,545 Public safety 40,173,347 38,757,037 - - 40,173,347 38,757,037 Interest on long-term debt 1,174,250 1,189,630 - - 1,174,250 1,189,630 Indirect expense allocation (8,145,451) (7,576,038) 8,145,451 7,576,038 - - Sanitation - - 15,065,466 15,203,143 15,065,466 15,203,143 Waterworks District No. 8 - - 39,796,369 34,875,433 39,796,369 34,875,433 Transit - - 7,087,058 7,525,013 7,087,058 7,525,013 Total expenses 108,553,350 89,853,957 70,094,344 65,179,627 178,647,694 155,033,584 Change in net position before
transfers and contributions 6,127,107 17,484,464 16,747,975 11,937,999 22,875,082 29,422,463 Transfers (2,882,526) (4,811,124) 2,882,526 4,811, 124 - - Special item: loss on
abandonment of projects - - (2,102,153) - (2,102,153) - Contributions from Successor
Agency - 9,469 - - - 9,469 Change in net position 3,244,581 12,682,809 17,528,348 16,749,123 20,772,929 29,431,932 Net position - beginning 233,566,311 220,883,502 218,701,240 201,952,117 452,267,551 422,835,619 Net position - ending 236,810,892$ 233,566,311$ 236,229,588$ 218,701,240$ 473,040,480$ 452,267,551$ Governmental
Activities
Business-Type
Activities Total
During the current fiscal year, City -wide revenues increased by $ 17.0 million and expenses increased by $23.6 million as compared to the prior fiscal year. Overall, the City’s net position increased $20.8 million compared to the prior fiscal year’s increase of $29.4 million. Increases in revenue categories from the prior fiscal year consisted of charges for services ($6.6 million), investments earnings ($8.8 million), operating grants and contributions ($2.1 million), property taxes ($1.9 million), and other revenues ($0.1 million) offset by decreases in the categories of capital grants and contributions ($2.2 million) and other taxes ($0.3 million).
Governmental Activities. Governmental activities increased the City’s net position $3.2 million as compared to an increase of $12.7 million in the prior year.
Total revenues increased by 6.8% ($7.3 million) from the prior fiscal year, resulting from program revenues increase of 2.6% ($0.7 million) and general revenues increase of 8.2% ($6.6 million).
11 39
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The program revenues increase is primarily due to:
• Char
ges for services decreased by 1.7% ($0.2 million) primarily due to a decrease in plan check services.
• Oper
ating grants and contributions increased by 12.9% ($2.1 million) primarily due to an increase of federal financial assistance for public safety ($1.3 million), the repayment of a developer loan ($0.4 million), and an increase in SB 1 payments ($0.4 million).
• Capi
tal grants and contributions decreased by 56.1% ($1.2 million) primarily due to a decrease in reimbursable capital street projects ($0.8 million) and reclassifying certain interest income from capital grants and contributions to investment earnings ($0.4 million).
The
general revenues increase is primarily due to:
• Pr
operty tax revenue increased by 4.6% ($1.9 million) primarily due to increased assessed values and a strong housing market.
• Ot
her taxes decreased by 1.0% ($0.3 million) primarily due to decreases in sales and use tax ($0.4 million) and documentary transfer tax ($0.2 million) offset by increases in business tax ($0.2 million) and franchise taxes ($0.1 million). • Inv
estment earnings increased by 158.0% ($5.0 million) primarily due to a larger pool of funds invested as compared to the prior year along with more favorable market conditions, and reclassifying certain interest income from capital grants and contributions to investment earnings ($0.4 million).
• Ot
her general revenue increased by 167.1% ($0.1 million) primarily due to an increase in proceeds from sale of property.
For
governmental activities, total expenses increased 20.8% ($18.7 million) from the prior fiscal year. This is primarily due to:
• Gener
al government expenses increased 48.8% ($12.3 million) primarily due to increases in pension expense ($7.2 million) caused by the pension plan investments underperforming expectations, insurances costs ($2.4 million), and salaries and other benefits ($2.3 million).
• Com
munity services expenses increased 16.5% ($1.2 million) primarily due to new subscription-based information technology arrangement (SBITA) costs ($0.4 million), increased salaries and benefits costs ($0.4 million), and increases in contracted library services ($0.2 million) and new vehicles costs ($0.1 million). 12 40
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
• Planning expenses increased 8.0% ($0. 5 million) primarily due an increase in salaries.
• Public ways and facilities expenses increased 20.4% ($3.8 million) primarily due to the updated valuation of pension and OPEB liabilities ($1.5 million) and an increase in contracted services ($2.4 million).
• Public safety expenses increased 3.7% ($1.4 million) primarily due to the updated valuation of the pension liability ($0.6 million) and increased salaries and benefits costs ($0.7 million).
Charges for services,
$8.7, 8%
Operating grants
and contributions,
$18.0, 16%
Capital grants and
contributions, $0.9, 1%
Property taxes,
$44.1, 38%
Other taxes,
$34.7, 30%
Investment earnings,
$8.1, 7%
Other,
$0.1, 0%
Revenues by Source - Governmental Activities
(in millions)
Total Revenue = $114.6
13 41
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Business-type Activities. Business -type activities increased the City’s net position $17.5 million as compared to a $16.7 million increase in the prior year. Key elements for the changes in net position during the fiscal year are as follows:
In comparison to the prior fiscal year, overall revenue, before transfers, increased by
12.6% ($9.7 million). This is primarily due to:
• Charges for services increased by 9.9% ($6.7 million) primarily due to increases in Waterworks District No. 8 service charges ($4.2 million) - driven by increased water usage as well as service rate increases - and sanitation service charges ($2.5 million).
• Capital grants and contributions decreased by 28.4% ($ 1.0 million) due to a decrease in reimbursable capital project expenditures within the Transit division.
• Investment earnings increased 206.7% ($3.8 million) due to a larger pool of funds invested throughout the year along with more favorable market conditions.
Expenses increased 7.5% ($4. 9 million) as compared to the prior fiscal year. This is primarily due to:
• Waterworks program expenses increased by 14.1% ($4.9 million) due to increases in cost and demand for water ($3.5 million), professional and other services ($0.5 million), salaries and benefits ($0.3 million), general administrative costs ($0.2 million), depreciation costs ($0.2 million), utilities costs ($0.1 million), and insurance costs ($0.1 million).
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
General
government
Community
services
Planning Public ways
and facilities
Public safety Interest on
long term debt
$1.7
$8.0
$4.1
$10.4
$3.4
$0.0
$37.7
$8.2 $7.1
$22.3
$40.2
$1.2
Program Revenues and Expenses - Governmental Activities (in millions)
Program Revenues Expenses
14 42
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
• Transit program expenses decrease by 5.8% ($0. 4 million) primarily due to a decrease in salaries and benefits ($0.8 million) offset by increases in general administrative expense ($0.3 million) and insurance costs ($0.1 million).
The Transit operation is primarily funded by Federal and State grants. During the fiscal year, the City transferred $6.0 million from the Transportation special revenue fund to cover the program revenue shortfall.
Charges for services,
$75.1, 86%
Operating grants
and contributions,
$3.5, 4%
Capital grants and
contributions,
$2.4, 3%
Investment earnings, $5.7,
7%
Other, $0.1, 0%
Revenue by Source - Business-Type Activities
(in millions)
Total Revenue = $86.8
15 43
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
In fiscal year 2023- 24, the City determined that the construction of a public works warehouse was no longer feasible and wrote off $0.1 million in previously capitalized construction-in-progress costs as a special item: loss on abandonment of projects in the Sanitation fund.
In fiscal year 2023-24, the City determined that a planned water recycling project was no longer feasible and wrote off $2.0 million in previously capitalized construction- in- progress costs as a special item: loss on abandonment of projects in the Waterworks fund.
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is necessary in assessing the City’s financing requirements. The following fund balance categories may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.
• Nonspendable fund balance represents funds that are not immediately available to support government operations. Examples are inventory, prepaid items, and long-term receivables that will not be converted to cash in the near future.
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
Sanitation Waterworks Transit
$31.6
$45.6
$3.8
$15.1
$39.8
$7.1
Program Revenue and Expenses - Business-Type Activities (in millions)
Program Revenues Expenses
16 44
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
• Restricted fund balance has constraints imposed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
• Committed fund balance represents funds that can only be designated for specific purposes as established by formal City Council action. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment.
• Assigned fund balance is similar to Committed fund balance except that the City Council can authorize the City Manager to designate the funds for specific purposes. An example is budgeted line- item expenditures to which the City Manager has the authority to make administrative amendments, provided they do not have a significant policy impact or affect budgeted year-end fund balances.
• Unassigned fund balance is that portion of General fund balance that does not fall into any of the other fund balance categories. These funds are available for any legitimate government purpose and are customarily reported in the General fund.
However, in government al funds other than the General fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
At the end of the current fiscal year, the City’s governmental funds reflect combined ending fund balances of $147.9 million, an increase of $3.8 million when compared to the prior fiscal year fund balance of $144.1 million. Of this total amount, 2.4% ($3.6 million) is Nonspendable in form, comprised of long -term receivables; 32. 1% ($47.5 million) is Restricted for specific activities including housing programs ($12.9 million), public improvements ($8.5 million), streets and transportation ($17.7 million), special programs ($5.9 million), and law enforcement programs ($2.4 million); 35.8% ($52.9 million) is classified as Committed for activities such as streets ($15.0 million), retiree benefits ($1.6 million), specialized programs ($1.1 million), equipment ($8.0 million), economic recovery ($11.1 million), and prudent reserve ($16.1 million); 30.2% ($44.7 million) is classified as Assigned comprised of capital; and -0.5% (negative $0.7 million) of the fund balance is Unassigned.
The fund balance of the City’s General fund decreased by $1.9 million during the current fiscal year, for a total ending fund balance of $ 78.1 million. In comparison to last fiscal year, overall revenues, including other financing sources, in the General fund increased by $5.2 million primarily due to increases in use of money and property of $3.4 million, in taxes of $1.3 million, in transfers in of $0.6 million, long- term debt issuance from new subscription-based information technology arrangements (SBITAs) of $0.4 million, and in services charges of $0.3 million offset by decreases in licenses and permits of $0.6 million and grants of $0.2 million. The increase in use of money and property was primarily due to a growing investment pool yielding more earnings ($1.2 million) and more favorable 17 45
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
market valuations at year-end ($2.2 million). The increase in taxes was primarily due to an increase in property tax due to increased property valuations ($1.6 million) offset by a decrease in sales and use tax ($0.4 million) caused by lower demand due to persistent inflation. The increase in transfers in was primarily due to an increase in transfers in from the gas tax fund ($0.3 million) from an increase in gas tax allocations from the State and an increase in transfers in from other funds ($0.3 million) to cover increased retiree benefits costs. The increase in long-term debt issuance from new SBITAs ($0.4 million) was due to entering into new SBITA’s in fiscal year 2023- 24. The increase in services charges was primarily due to an increase in other community services fees ($0.1 million), plan check fees ($0.1 million), and planning fees ($0.1 million). The decrease in licenses and permits was primarily due to a decrease in building permits ($0.5 million) and plan check services ($0.2 million) offset by an increase in encroachment permits ($0.2 million).
The decrease in grants was primarily due to a decrease in CalRecycle grants ($0.2 million). Overall expenditures, including other financing uses, increased by $10.4 million primarily due to increases in general government expenditures of $5.1 million, transfers out of $2.5 million, public ways and facilities expenditures of $1.5 million, public safety expenditures of $0.6 million, and community services expenditures of $0.2 million. The increase in general government expenditures was primarily due to increases in salaries and benefits ($2.4 million), insurance costs ($1.8 million), and contract services ($0.8 million). The increase in transfers out was primarily due to a net increase in transfers to the streets and roads fund ($4.5 million), offset by a one- time transfer to the radio tower capital project in fiscal year 2022- 23 ($2.0 million). The increase in public ways and facilities expenditures was primarily due to increases in contracted services ($0.7 million), utility costs ($0.5 million), and salaries and benefits ($0.1 million). The increase in public safety expenditures was primarily due to increases in salaries and benefits ($0.4 million) and contracted services ($0.1 million). The increase in community services expenditures was primarily due to an increase in cultural arts program expenditures ($0.2 million).
The fund balance of the SHA to Community Development Agency Housing Administration fund increased $0.1 million during the current fiscal year, for a total ending fund balance of $5.3 million. In comparison to last fiscal year, overall revenues in the fund revenue increased by $0.4 million primarily due to an increase in use of money and property from developer loan repayments due to an increase in residual receipts due to the City. In comparison to last fiscal year, expenditures increased by $0.3 million primarily due to a decrease in expenditure offsets in reimbursement from other funds ($0.2 million) and an increase in salaries and benefits ($0.1 million).
The Development Related Fees fund was classified under Nonmajor Governmental Funds in the prior fiscal year. The fund balance of the Development Related Fees fund decreased by $1.6 million in the current fiscal year for a total ending fund balance of $11.7 million. In comparison to last fiscal year, overall revenues decreased by $0.1 million primarily due to a decrease in use of money and property from a reduction in first time homebuyer program interest ($0.2 million) offset by an increase in services charges ($0.1 million). In comparison to last fiscal year, overall expenditures, including other financing uses, increased by $0.4 million primary due to transfers out for streets and roads projects ($0.6 million) offset by a decrease in transfers out to the Public Facility Improvement fund ($0.2 million).
18 46
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The fund balance of the Streets and Roads fund decreased by $0.1 million during the current fiscal year for a total ending fund balance of $15.0 million. In comparison to last fiscal year, overall revenues, including other financing sources, increased by $2.2 million primarily due to an increase in transfers in ($3.1 million) primarily from the infrastructure fund offset by a decrease in grants ($0.8 million) from a decrease in grant-eligible projects.
In comparison to last fiscal year, overall expenditures increased $1.8 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 -type Activities found in the government -wide financial statements, but by individual funds rather than in aggregate.
During the current fiscal year, the Sanitation and Waterworks funds showed increases in net position of $14.8 million and $2.8 million, respectively, while the Transit fund showed a decrease in net position of $0.5 million. Restricted net position for the Sanitation and Waterworks funds was $12.7 million and $1.2 million, respectively; Unrestricted net position of the Sanitation, Waterworks, and Transit funds was $62.4 million, $29.3 million, and negative $5.0 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 General fund revenues of $89 .7 million were $ 6.0 million more than the General fund final budgeted amount of $83.7 million primarily due to the following:
• $4 .5 million in use of money and property over the budgeted amount due to improved financial market conditions yielding higher investment returns along with an expanded investment pool.
• $1.4 million in franchise taxes over the budgeted amount due to stronger than expected franchisee activities.
• $0.8 million in property taxes over the budgeted amount due to stronger than expected assessed property values.
• $0.4 million in service charges over the budgeted amount due to stronger than expected plan check fees ($0.2 million) and planning fees ($0.1 million)
• $0.4 million in other revenues over the budgeted amount due to stronger than expected cultural arts program revenues ($0.2 million) and contributions from the City’s waste management provider ($0.2 million)
• $1.4 million in sales tax revenues under the budgeted amount due to decreased demand from persistent inflation.
19 47
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The General fund final amended expenditure budget of $94.7 million was $14.1 million greater than the General fund original expenditure budget of $80.6 million primarily due to the following:
• $9.5 million more was appropriated for administrative services and city-wide support for a one-time pension payment utilizing prior year budgetary savings ($4.5 million), contracts carryforward from the prior fiscal year ($4.1 million), additional maintenance of equipment ($0.4 million), and additional professional services ($0.2 million).
• $2.7 million more was appropriated for public ways and facilities primarily for additional contract services ($1.8 million) and additional professional services ($0.7 million).
• $1.5 million more was appropriated for public safety primarily for salaries and benefits for an organized retail theft grant award ($1.0 million), contracts carryforward from the prior fiscal year ($0.2 million), and additional capital budget ($0.2 million).
• $0.4 million more was appropriated for community services primarily for additional operating supplies ($0.3 million) and additional animal regulation costs ($0.1 million).
The General fund final amended transfers out budget of $13.7 million was $5.0 million greater than the General fund original budget of $8.7 million primarily due to the following:
• $4.5 million was appropriated for streets and roads projects.
• $0.3 million was appropriated for wastewater infrastructure projects.
Actual General fund expenditures of $8 3.6 million were $ 11.2 million less than the General fund final amended expenditure budget of $94. 7 million primarily due to the following:
• $4.1 million savings in public ways and facilities primarily due to savings in contract services ($2.0 million), savings in salaries and benefits ($1.2 million), and utilities ($0.8 million).
• $ 3.6 million savings in administrative services and city-wide support primarily due to savings in contract services ($2.3 million), savings in maintenance of equipment ($0.8 million), savings in professional services ($0.3 million), and savings in communications ($0.2 million) offset by additional salaries and benefits costs due to the city-wide general salary increase ($1.1 million).
• $2.4 million savings in public safety primarily due to savings in salaries and benefits ($1.8 million), savings in operating supplies ($0.2 million), savings in 20 48
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
uniform costs ($0.1 million), savings in contract services ($0.1 million), and savings in vehicle purchase ($0.1 million).
• $1.0 million savings in community services primarily due to savings in animal service costs ($0.4 million), savings in salaries and benefits ($0.3 million), and savings in operating supplies expenses ($0.3 million).
• $0.8 million savings in planning primarily due to savings in salaries and benefits ($0.6 million), savings in professional services ($0.1 million), and savings in contract services ($0.1 million).
• $0.7 million savings in city administration primarily due to salary savings.
• $0.6 million over budget due to unbudgeted capital outlay.
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, 2024, amounts to $412.9 million (net of accumulated depreciation). This is an increase of $ 8.6 million as compared to the prior fiscal year.
The investment in capital assets includes land, buildings and improvements, furnishings and equipment, vehicles, infrastructure consisting of streets and water and wastewater distribution systems, intangibles, and right-of-use assets.
Major capital asset events during the current fiscal year included the following:
• $12.0 million in street projects were completed.
• $6.6 million was expended on the sanitation energy savings upgrade project (construction-in-progress).
• $6.2 million streetlight acquisition and LED upgrade was completed. • $5.0 million in sewer line rehabilitation projects were completed. • $4.4 million Financial Information System implementation was completed. • $2.8 million police department training facility was completed. • $2.0 million recycled water project was cancelled.
• $2.1 million for the city-wide radio project was completed. • $1.4 million transit maintenance facility expansion project was completed. 21 49
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
• $1.4 million Public Services Center roof replacement was completed. • $1.3 million transit compressed natural gas fueling station upgrade was completed. • $1.1 million Civic Center emergency generator project was completed.
Additional information on the City’s capital assets can be found in note III.E of the notes to the financial statements.
City of Simi Valley’s Capital Assets
(net of accumulated depreciation)
June 30, 2024 and 2023
Governmental Business-Type
Act
ivities Activities Total
2024 2023 2024 2023 2024 2023
Land 10,621,811$ 10,621,811$ 1,216,994$ 1,216,994$ 11,838,805$ 11,838,805$ Building and Improvements 32,677,586 29,960,150 8,080,530 5,668,479 40,758,116 35,628,629 Furnishings and equipment 6,052,389 3,070,710 2,622,310 2,917,431 8,674,699 5,988,141 Vehicles 2,089,967 1,652,242 2,237,081 2,538,000 4,327,048 4,190,242 Infrastructure 184,315,284 174,520,480 119,827,728 117,066,764 304,143,012 291,587,244 Intangibles 6,967,642 2,700,293 - - 6,967,642 2,700,293 Right-of-use asset 2,898,141 2,529,851 122,511 - 3,020,652 2,529,851 Construction-in-progress 1,255,182 18,235,510 31,916,999 31,652,196 33,172,181 49,887,706 Total 246,878,002$ 243,291,047$ 166,024,153$ 161,059,864$ 412,902,155$ 404,350,911$
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $59.8 million. This entire amount represents bonds secured solely by specified revenue sources (e.g., revenue bonds).
City of Simi Valley’s outstanding bonded debt on June 30, 2024 and 2023:
2024 2023
2014A lease revenue refunding bond 13,110,000$ 14,000,000$ 2016 New Clean Renewable Energy Bonds (NCREBs) 6,725,091 7,125,152 2016 NCREBs tax exempt 522,975 556,698
2017 lease agreement 3,964,631 4,409,524
2018 lease agreement 4,393,313 4,721,948
2019 lease agreement 30,077,842 31,675,185
Bond premium 1,001,777 1,100,413
Total 59,795,629$ 63,588,920$
Governmental and Business-type
Activities
Additional information on the City’s long-term debt can be found in note III.H. 22 50
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Economic Factors and Next Year’s Budgets and Rates
In
June 2024, the City Council adopted the fiscal year 2024-25 annual budget. The adopted budget is structurally balanced with a funding level that continues to address long-term funding deficiencies with one- time dollars. Due to the many years of well - managed budgetary decisions, the City continues to experience a slight surplus of operating revenues over operating expenditures. The City is in a strong financial position, which will allow the City Council to make strategic decisions for the foreseeable future.
In
April 2022, the City Council approved a fund balance policy for the General fund that will allocate prior year -end General fund surplus dollars. Included with the fiscal year 2024-25 adopted budget is the reallocation of the fiscal year 2022-23 surplus funds into three specific use “holding” funds. In accordance with the Fund Balance Policy, $4. 6 million was placed in the Infrastructure Investment fund, $4.6 million was placed in the Retirement Obligation fund, and $0.4 million was placed in a Contingency fund.
As
the fiscal year 202 4-25 budget was being developed, consumer spending nationally was still very active, prompting the Federal Reserve to raise interest rates in an attempt to slow the economy and return to their target level of inflation of 2%. I nflation has emerged as a primary challenge in the post -pandemic economy. In 2022, the U.S. inflation rate topped 8%, and in 2023, it fell back below 4%. In 2024, inflation began rising back up throughout the first 6 months of the year but has begun to drop again as we move through the s econd half of 2024. Annual wage growth has slowed and consumer spending has focused on practical items rather than discretionary retail purchases. The percentage of household income spent on food is now at the highest level in decades.
Home sales, vehicle purchases, consumer goods, and restaurant sales have all slowed.
In the fiscal year 2023-24 budget, the City foresaw a slowdown in sales tax revenue, albeit slightly less than the actual decrease, which will carry into fiscal year 2024-25.
Whi
le the City enjoyed a rise in sales tax revenue over the last several years due to the effects of the pandemic, the City also experienced healthy increases in property tax revenue due to a higher level of activity in not only the residential market but also the commercial and industrial markets. However, there is a delayed impact of property tax increases as changes to property tax rolls occur over a year after the sale transaction. In the real estate market, due to higher interest rates, the residential market and the commercial and industrial market s have slowed. The lack of available inventory exacerbates the slowdown in both markets. The pullback in property tax revenue is expected to have a greater impact in fiscal year 2025-26 as the City expects to see residual property tax revenue increases in fiscal year 2024-25 due to prior transactions hitting the tax role.
Ac
cording 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. As of June 2024, the City’s unemployment rate of
4.4% was below the rate of 4 .5% for Ventura County and rate of 5.3% for the State of California.
23 51
CITY OF SIMI VALLEY • MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The City is overall in a good financial position, with a General fund spendable fund balance of $74.6 million, which will allow the City Council to continue to make strategic decisions directed at improving the services we provide to our citizens.
Re
quests for Information
Thi
s financial report is designed to provide a general overview of the City of Simi Valley’s finances for all those with an interest in the City’s financial condition. Questions concerning any of the information provided in this report or requests for addi tional financial information should be addressed to the City of Simi Valley, Department of Administrative Services, 2929 Tapo Canyon Road, Simi Valley, California 93063. 24 52
BASIC FINANCIAL STATEMENTS
BASIC FINANCIAL
STATEMENTS
53 FISCAL YEAR ENDED
JUNE 30, 2024
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
54 Governmental Business-Type
Activities Activities Total
Assets
Current assets:
Cash and investments (note III.A) 175,645,541$ 116,456,968$ 292,102,509$ Accounts receivable (net of allowance for uncollectibles) (note III.C) 2,102,693 6,540,635 8,643,328 Taxes receivable 6,763,855 456,182 7,220,037
Grants receivable 433,723 1,296,199 1,729,922
Lease receivable (note III.D) 338,618 316,428 655,046 Interest receivable 1,539,813 1,130,753 2,670,566 Internal balances (note I.E.2) (1,818,374) 1,818,374 - Inventories - 1,663,940 1,663,940
Prepaid items 4,687 - 4,687
Restricted cash and investments (note III.A):
Customer deposits - 1,177,444 1,177,444
Connection fees - 12,722,811 12,722,811
Total current assets 185,010,556 143,579,734 328,590,290 Noncurrent assets:
Lease receivable (note III.D) 9,073,178 1,865,383 10,938,561 Loans receivable (note III.B) 24,104,275 - 24,104,275 Capital assets (note III.E):
Capital assets not being depreciated 11,876,993 33,133,993 45,010,986 Capital assets being depreciated, net 235,001,009 132,890,160 367,891,169 Total noncurrent assets 280,055,455 167,889,536 447,944,991 Total assets 465,066,011 311,469,270 776,535,281
DEFERRED OUTFLOWS OF RESOURCES
Related to loss on debt refunding 131,039 - 131,039
Related to pensions (note IV.D) 39,283,786 8,164,260 47,448,046 Related to other postemployment benefits (note IV.E) 23,506,378 3,914,359 27,420,737 Total deferred outflows of resources 62,921,203 12,078,619 74,999,822
LIABILITIES
Current liabilities:
Accounts payable 5,172,865 7,315,349 12,488,214
Salaries and benefits payable 3,869,056 614,541 4,483,597 Accrued interest payable 343,118 230,191 573,309
Deposits 1,151,699 - 1,151,699
Liabilities payable from restricted assets - 1,177,444 1,177,444 Unearned revenues 4,113,601 331,215 4,444,816
Current portion of long-term debt (note III.H) 5,880,477 1,827,921 7,708,398 Total current liabilities 20,530,816 11,496,661 32,027,477 Noncurrent liabilities:
Noncurrent portion of long-term debt (note III.H) 243,177,514 68,467,538 311,645,052 Total liabilities 263,708,330 79,964,199 343,672,529
DEFERRED INFLOWS OF RESOURCES
Related to leases (note III.D) 8,615,227 1,965,024 10,580,251 Related to pensions (note IV.D) 2,094,408 86,385 2,180,793 Related to other postemployment benefits (note IV.E) 16,758,357 5,302,693 22,061,050 Total deferred inflows of resources 27,467,992 7,354,102 34,822,094
NET POSITION
Net investment in capital assets 214,227,084 133,921,622 348,148,706 Restricted for:
Capital projects 32,033,555 - 32,033,555
Community development 41,633,878 - 41,633,878
Community services 3,256,414 - 3,256,414
Public safety 2,578,539 - 2,578,539
Sewer connection fees and water capital improvement charges - 13,900,255 13,900,255 Unrestricted (56,918,578) 88,407,711 31,489,133
Total net position 236,810,892$ 236,229,588$ 473,040,480$
CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
JUNE 30, 2024
See notes to the basic financial statements.
25 56
Indirect Operating
Expenses Full Cost Charges for Grants and
Expenses Allocation by Function Services Contributions
Primary government:
Governmental activities:
General government 37,729,276$ (8,392,313)$ 29,336,963$ 1,272,945$ 285,948$ Community services 8,184,706 511,444 8,696,150 1,353,729 6,669,126 Planning 7,105,430 542,172 7,647,602 3,083,681 988,131 Public ways and facilities 22,331,792 (806,754) 21,525,038 2,494,351 7,203,980 Public safety 40,173,347 - 40,173,347 537,726 2,831,522 Interest on long-term debt 1,174,250 - 1,174,250 - - Total governmental activities 116,698,801 (8,145,451) 108,553,350 8,742,432 17,978,707 Business-type activities:
Sanitation 15,065,466 3,098,572 18,164,038 29,866,164 10,091 Waterworks District No. 8 39,796,369 2,870,405 42,666,774 44,887,288 84,172 Transit 7,087,058 2,176,474 9,263,532 344,048 3,427,628 Total business-type activities 61,948,893 8,145,451 70,094,344 75,097,500 3,521,891 Total primary government 178,647,694$ -$ 178,647,694$ 83,839,932$ 21,500,598$ (Continued)
CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Program
Revenues
See notes to the basic financial statements.
26 57
Program
Revenues
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
Primary government:
Governmental activities:
159,588$ (27,618,482)$ -$ (27,618,482)$ General government - (673,295) - (673,295) Community services
- (3,575,790) - (3,575,790) Planning
706,057 (11,120,650) - (11,120,650) Public ways and facilities 75,000 (36,729,099) - (36,729,099) Public safety
- (1,174,250) - (1,174,250) Interest on long-term debt 940,645 (80,891,566) - (80,891,566) Total governmental activities Business-type activities:
1,689,045 - 13,401,262 13,401,262 Sanitation 675,990 - 2,980,676 2,980,676 Waterworks District No. 8 59,584 - (5,432,272) (5,432,272) Transit
2,424,619 - 10,949,666 10,949,666 Total business-type activities 3,365,264$ (80,891,566) 10,949,666 (69,941,900) Total primary government General revenues:
44,105,061 - 44,105,061 Property taxes
23,035,361 - 23,035,361 Sales taxes
6,189,771 - 6,189,771 Franchise taxes
2,636,053 - 2,636,053 Business taxes
2,813,583 - 2,813,583 Other taxes
8,134,385 5,667,740 13,802,125 Investment earnings 104,459 32,565 137, 024 Proceeds from sale of property - 98,004 98,004 Miscellaneous
(2,882,526) 2,882,526 - Transfers
- (2,102,153) (2,102,153) Special item: loss on abandonment of projects 84,136,147 6,578,682 90,714,829 Total general revenues, contributions, and transfers 3,244,581 17,528,348 20,772,929 Change in net position 233,566,311 218,701,240 452,267,551 Net position - beginning 236,810,892$ 236,229,588$ 473,040,480$ Net position - ending (Concluded)
Primary Government
CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Net (Expense)/Revenue and
Changes in Net Position
See notes to the basic financial statements.
27 58
City of
o� SIMI
VALLEY
CALIFORNIA
59 FISCAL YEAR ENDED
JUNE 30, 2024
FUND FINANCIAL
STATEMENTS
60 SHA to Community
Development
Agency Housing Development
General Administration Related Fees
ASSETS
Cash and investments:
Held by City 71,387,791$ 5,257,063$ 11,610,365$
Accounts receivable (net of allowance for
uncollectibles) (note III.C) 1,000,087 56,524 -
Taxes receivable 6,755,902 - -
Grants receivable - - -
Lease receivable 9,411,796 - -
Interest receivable 940,957 50,919 66,838
Due from other funds (note III.G) 1,250,142 574 -
Loans receivable (note III.B) 221,215 14,536,485 5,943,356 Prepaid items 4,687 - -
Advances to other funds (note III.G) 3,348,380 - -
Total assets 94,320,957$ 19,901,565$ 17,620,559$
LIABILITIES
Accounts payable 2,281,361$ 77,932$ 27$
Sal
aries and benefits payable 3,830,824 20,877 -
Due to other funds (note III.G) 25,681 - -
Advances from other funds (note III.G) - - -
Deposits and deferred revenue 1,154,499 - -
Total liabilities 7,292,365 98,809 27
DEFERRED INFLOWS OF RESOURCES
Leases 8,615,227 - -
Unav
ailable revenue 288,092 14,536,485 5,943,356
Total deferred inflows of resources 8,903,319 14,536,485 5,943,356 FUND BALANCES (note III.I)
Nonspendable
Prepaid items 4,687 - -
Long-t
erm receivables 3,569,595 - -
Restricted
Housing programs - 5,266,271 5,339,675
Public improvements - - 4,565,399
Streets and transportation - - 1,772,102
Special programs - - -
Law enforcement - - -
Committed
Streets - - -
Retiree benefits 1,593,010 - -
Specialized programs 1,100,144 - -
Equipment - - -
Economic recovery 11,084,838 - -
Prudent reserve 16,107,426 - -
Assigned
Capital 44,665,573 - -
Unassigned - - -
Total fund balances 78,125,273 5,266,271 11,677,176
Total liabilities, deferred inflows of
resources, and fund balances 94,320,957$ 19,901,565$ 17,620,559$ (Continued)
Funds
CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue
See notes to the basic financial statements.
28 63
Capital Projects
Fund
Total
Streets & Nonmajor Governmental
Roads Governmental Funds
ASSETS
Cash and investments:
20,628,938$ 41,885,122$ 150, 769,279 Held by City
Accounts receivable (net of allowance for
11,668 1,034,414 2,102,693 uncollectibles) (note III.C) - 7,953 6,763,855 Taxes receivable
- 433,723 433,723 Grants receivable
- - 9,411,796 Lease receivable
- 267,067 1,325,781 Interest receivable
- 25,107 1,275,823 Due from other funds (note III.G)
- 3,403,219 24,104,275 Loans receivable (note III.B)
- - 4,687 Prepaid items
- - 3,348,380 Advances to other funds (note III.G) 20,640,606$ 47,056,605$ 199,540,292$ Total assets
LIABILITIES
1,708,566$ 907,823$ 4,975,709$ Accounts payable
- 8,621 3,860,322 Salaries and benefits payable
- 1,250,142 1,275,823 Due to other funds (note III.G) - 3,348,380 3,348,380 Advances from other funds (note III.G) 3,904,538 206,263 5,265,300 Deposits and deferred revenue 5,613,104 5,721,229 18,725,534 Total liabilities
DEFERRED INFLOWS OF RESOURCES
- - 8,615,227 Leases
5,000 3,567,442 24,340,375 Unavailable revenue
5,000 3,567,442 32,955,602 Total deferred inflows of resources FUND BALANCES (note III.I)
Nonspendable
- - 4,687 Prepaid items
- - 3,569,595 Long-term receivables
Restricted
- 2,284,605 12,890,551 Housing programs
- 3,958,435 8,523,834 Public improvements
- 15,938,058 17,710,160 Streets and transportation
- 5,913,914 5,913,914 Special programs
- 2,423,824 2,423,824 Law enforcement
Committed
15,022,502 - 15,022,502 Streets
- - 1,593,010 Retiree benefits
- - 1,100,144 Specialized programs
- 7,979,671 7,979,671 Equipment
- - 11,084,838 Economic recovery
- - 16,107,426 Prudent reserve
Assigned
- - 44,665,573 Capital
- (730,573) (730,573) Unassigned
15,022,502 37,767,934 147,859,156 Total fund balances Total liabilities, deferred inflows of
20,640,606$ 47,056,605$ 199,540,292$ resources, and fund balances (Concluded)
CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
See notes to the basic financial statements.
29 64
Fund balances - total governmental funds 147,859,156$
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. 246,878,002 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. 12,890,743
Some liabilities are not due and payable in the current period and therefore are not reported in the funds:
Accrued interest payable (343,118)
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. 24,340,375 Deferred outflows of resources related to pensions and other postemployment benefits are not current financial resources and therefore, are not reported in the governmental funds.
Related to pensions 39,097,655$
Related to other postemployment benefits 23,444,264 62,541,919 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 (2,092,439)
Related to other postemployment benefits (16,674,213) (18,766,652) 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 (6,833,746)
Net pension liability (138,018,871)
Net OPEB liability (61,085,998)
2014A lease revenue refunding bonds (13,110,000)
2016 new clean renewable energy bonds (NCREBs) (6,725,091) 2016 NCREBs tax exempt (522,975)
2017 lease agreement (3,964,631)
2018 lease agreement (4,393,313)
Right-of-use lease liability (2,506,984)
Right-of-use SBITA liability (557,186)
Unamortized bond premium (1,001,777)
Unamortized bond payable deferred on refunding 131,039 (238,589,533) Net position of governmental activities 236,810,892$
CITY OF SIMI VALLEY
RECONCILATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES JUNE 30, 2024
See notes to the basic financial statements.
30 65
City of
o� SIMI
VALLEY
CALIFORNIA
SHA to Community
Development
Agency
Housing Development
General Administration Related Fees
REVENUES
Taxes 75,774,660$ -$ -$
Licenses and permits 3,042,135 - -
Fines and forfeitures 292,774 - -
Use of money and property 5,847,482 864,956 202,195
From other governments 478,512 - -
Grants 332,819 - -
Service charges 1,465,471 23,669 248,512
Other revenues 2,472,831 - 100,000
Total revenues 89,706,684 888,625 550,707
EXPENDITURES
Current:
General government 19,556,598 - -
Community services 4,647,784 - -
Planning 5,397,339 756,337 -
Public ways and facilities 15,635,845 - 127,180
Public safety 37,554,001 - -
Total current expenditures 82,791,567 756,337 127,180
Capital outlay 585,632 - -
Debt Service:
Principal 187,439 - -
Interest 23,952 - -
Other - - -
Total debt service 211,391 - -
Total expenditures 83,588,590 756,337 127,180
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 6,118,094 132,288 423,527
OTHER FINANCING SOURCES/(USES)
Transfers in (note III.G) 5,018,123 - -
Transfers out (note III.G) (13,676,442) - (2,038,474)
Proceeds from sale of property 102,620 - -
Long-term debt issuance - SBITA 585,632 - -
Total other financing sources/(uses) (7,970,067) - (2,038,474) NET CHANGE IN FUND BALANCES (1,851,973) 132,288 (1,614,947) FUND BALANCES - BEGINNING 79,977,246 5,133,983 13,292,123 FUND BALANCES - ENDING 78,125,273$ 5,266,271$ 11,677,176$ (Continued)
Funds
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Special Revenue
See notes to the basic financial statements.
31 67
Capital Projects
Fund
Total
St
reets & Nonmajor Governmental
Roads Governmental Funds
REVENUES
-$ 3,005,169$ 78,779,829$ Taxes
- - 3,042,135 Licenses and permits
- 4,164 296,938 Fines and forfeitures
- 1,278,071 8,192,704 Use of money and property
- 12,982,471 13,460,983 From other governments
664,307 3,421,012 4,418,138 Grants
- 794,989 2,532,641 Service charges
107,500 738,062 3,418,393 Other revenues
771,807 22,223,938 114,141,761 Total revenues
EXPENDITURES
Current:
- 354,996 19,911,594 General government
- 2,754,080 7,401,864 Community services
- 291,699 6,445,375 Planning
- 1,279,292 17,042,317 Public ways and facilities
- 757,081 38,311,082 Public safety
- 5,437,148 89,112,232 Total current expenditures
12,878,435 2,279,922 15,743,989 Capital outlay
Debt Service:
- 2,189,755 2,377,194 Principal
- 1,262,618 1,286,570 Interest
- 3,973 3,973 Other
- 3,456,346 3,667,737 Total debt service
12,878,435 11,173,416 108,523,958 Total expenditures
EXCESS/(DEFICIENCY) OF REVENUES
(12,106,628) 11,050,522 5,617,803 OVER/(UNDER) EXPENDITURES
OTHER FINANCING SOURCES/(USES)
12,003,840 9,661,242 26,683,205 Transfers in (note III.G) - (13,693,615) (29,408,531) Transfers out (note III.G)
- 1,839 104,459 Proceeds from sale of property
- 215,466 801,098 Long-term debt issuance - SBITA
12,003,840 (3,815,068) (1,819,769) Total other financing sources/(uses) (102,788) 7,235,454 3,798,034 NET CHANGE IN FUND BALANCES 15,125,290 30,532,480 144,061,122 FUND BALANCES - BEGINNING 15,022,502$ 37,767,934$ 147,859,156$ 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, 2024
See notes to the basic financial statements.
32 68
Net change in fund balances - total governmental funds 3,798,034$ 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/amortization expense.
Capital outlay 15,046,955$
Depreciation/amortization expense (11,460,000) 3,586,955 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 (801,098)
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 890,000 Principal payment on 2016 new clean renewable energy bonds (NCREBs) 400,061 Principal payment on 2016 NCREBs tax exempt 33,723
Principal payment on 2017 lease agreement 444,893
Principal payment on 2018 lease agreement 328,635
Principal payment on right-of-use lease 35,970
Principal payment on right-of-use SBITA liability 243,912 2,377,194 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) 26,534
Amortized premium on bonds 98,636
Amortized deferral on refunding (12,849)
Pension-related expenses (3,371,030)
OPEB-related expenses (3,719,149)
Compensated absences (net) (4,581) (6,982,439)
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (632,213) Internal service funds are used by the City to account for liability, workers' compensation insurance, GIS/Permits operations, and FIS operations. A portion of the net expense of these funds is reported with governmental activities. 1,898,148
Change in net position of governmental activities 3,244,581$
CITY OF SIMI VALLEY
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL JUNE 30, 2024
FUNDS TO THE STATEMENT OF ACTIVITIES
See notes to the basic financial statements.
33 69
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Taxes:
Sales 24,395,548$ 24,395,548$ 23,035,361$ (1,360,187)$ Property 40,522,801 40,522,801 41,299,951 777,150
Franchise 4,800,000 4,800,000 6,189,771 1,389,771 Business and other 5,075,000 5,075,000 5,249,577 174,577 Licenses and permits 3,072,000 3,072,000 3,042,135 (29,865) Fines and forfeitures 400,000 400,000 292,774 (107,226) Use of money and property 1,350,440 1,350,440 5,847,482 4,497,042 From other governments 542,486 542,486 478,512 (63,974) Grants 295,705 362,994 332,819 (30,175) Service charges 1,092,842 1,092,842 1,465,471 372,629 Other revenues 2,090,600 2,105,290 2,472,831 367,541 Total revenues 83,637,422 83,719,401 89,706,684 5,987,283
EXPENDITURES
Current:
General government 13,706,210 23,177,262 19,556,598 3,620,664 Community services 5,212,898 5,645,394 4,647,784 997,610 Planning 6,135,121 6,235,121 5,397,339 837,782
Public ways and facilities 17,025,350 19,739,621 15,635,845 4,103,776 Public safety 38,493,243 39,952,167 37,554,001 2,398,166 Total current expenditures 80,572,822 94,749,565 82,791,567 11,957,998 Capital outlay:
Other capital projects - - 585,632 (585,632)
Total capital outlay - - 585,632 (585,632)
Debt service:
Principal - - 187,439 (187,439)
Interest - - 23,952 (23,952)
Total debt service - - 211,391 (211,391)
Total expenditures 80,572,822 94,749,565 83,588,590 11,160,975
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 3,064,600 (11,030,164) 6,118,094 17,148,258
OTHER FINANCING SOURCES/(USES)
Transfers in 5,518,795 5,535,038 5,018,123 (516,915) Transfers out (8,706,391) (13,681,505) (13,676,442) 5,063 Proceeds from sale of property 20,000 20,000 102,620 82,620 Long-term debt issuance - SBITA - - 585,632 585,632 Total other financing sources/(uses) (3,167,596) (8,126,467) (7,970,067) 156,400 NET CHANGE IN FUND BALANCE (102,996) (19,156,631) (1,851,973) 17,304,658 FUND BALANCE - BEGINNING 79,977,246 79,977,246 79,977,246 - FUND BALANCE - ENDING 79,874,250$ 60,820,615$ 78,125,273$ 17,304,658$
CITY OF SIMI VALLEY
Budgeted Amounts
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
See notes to the basic financial statements.
34 70
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 365,000$ 365,000$ 864,956$ 499,956$ Service charges 17,000 17,000 23,669 6,669
Total revenues 382,000 382,000 888,625 506,625
EXPENDITURES
Current:
Planning 1,423,429 2,923,429 756,337 2,167,092
Total expenditures 1,423,429 2,923,429 756,337 2,167,092
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (1,041,429) (2,541,429) 132,288 2,673,717 NET CHANGE IN FUND BALANCE (1,041,429) (2,541,429) 132,288 2,673,717 FUND BALANCE - BEGINNING 5,133,983 5,133,983 5,133,983 - FUND BALANCE - ENDING 4,092,554$ 2,592,554$ 5,266,271$ 2, 673,717$ 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, 2024
See notes to the basic financial statements.
35 71
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 168,657$ 168,657$ 202,195$ 33,538$ Service charges 300,500 300,500 248,512 (51,988)
Other revenues 100,000 100,000 100,000 -
Total revenues 569,157 569,157 550,707 (18,450)
EXPENDITURES
Current:
Public ways and facilities 469,000 469,000 127,180 341,820 Total expenditures 469,000 469,000 127,180 341,820
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 100,157 100,157 423,527 323,370
OTHER FINANCING SOURCES/(USES)
Transfers out (2,038,537) (2,038,537) (2,038,474) 63 Total other financing sources/(uses) (2,038,537) (2,038,537) (2,038,474) 63 NET CHANGE IN FUND BALANCE (1,938,380) (1,938,380) (1,614,947) 323,433 FUND BALANCE - BEGINNING 13,292,123 13,292,123 13,292,123 - FUND BALANCE - ENDING 11,353,743$ 11,353,743$ 11,677,176$ 323, 433$ Budgeted Amounts
CITY OF SIMI VALLEY
DEVELOPMENT RELATED FEES
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
See notes to the basic financial statements.
36 72
Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
Assets
Current assets:
Cash and investments 75,942,578$ 38,298,029$ 2,216,361$ 116,456,968$ 24,876,262$ Customer receivable 125,615 4,990,840 4,380 5,120,835 - Other receivable 1,157,385 181,674 80,741 1,419,800 - Taxes receivable 456,182 - - 456,182 - Grants receivable - - 1,296,199 1,296,199 -
Lease receivable - 2,181,811 - 2,181,811 -
Interest receivable 734,339 396,414 - 1,130,753 214,032 Inventories 608,458 804,266 251,216 1,663,940 -
Restricted cash and investments:
Customer deposits - 1,177,444 - 1,177,444 -
Connection fees 12,722,811 - - 12,722,811 -
Total current assets 91,747,368 48,030,478 3,848,897 143,626,743 25,090,294 Noncurrent assets:
Capital assets (net of accumulated depreciation) (note III.E):
Land 765,660 451,334 - 1,216,994 -
Buildings and improvements 3,203,003 615,426 4,262,101 8,080,530 - Furnishings and equipment 1,100,658 1,116,481 405,171 2,622,310 - Vehicles 203,796 991,194 1,042,091 2,237,081 - Distribution system 67,803,037 52,024,691 - 119,827,728 - Intangibles - 122,511 - 122,511 -
Construction-in-progress 28,540,607 3,024,694 351,698 31,916,999 - Total noncurrent assets 101,616,761 58,346,331 6,061,061 166,024,153 - Total assets 193,364,129 106,376,809 9,909,958 309,650,896 25,090,294
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 3,487,417 2,563,695 2,113,148 8,164,260 186,131 Related to other postemployment benefits 1,794,566 1,290,705 829,088 3,914,359 62,114 Total deferred outflows of resources 5,281,983 3,854,400 2,942,236 12,078,619 248,245
LIABILITIES
Current liabilities:
Accounts payable 3,285,483 3,779,652 250,214 7,315,349 197,156 Salaries and benefits payable 271,393 186,714 156,434 614,541 8,734 Interest payable 230,191 - - 230,191 -
Lease agreement 1,634,431 - - 1,634,431 -
Subscription-based Information Technology Arrangements - 39,965 - 39,965 - Compensated absences 80,250 32,041 41,234 153,525 2,348 Unearned revenue 67,535 - 263,680 331,215 -
Claims and legal services payable (note IV.B) - - - - 2,623,179 Current liabilities payable from restricted assets:
Water service prepayments - 1,177,444 - 1,177,444 -
Total current liabilities 5,569,283 5,215,816 711,562 11,496,661 2,831,417 Noncurrent liabilities:
Lease agreement 28,443,411 - - 28,443,411 -
Subscription-based Information Technology Arrangements - 85,025 - 85,025 - Compensated absences 722,245 288,370 371,110 1,381,725 21,129 Claims and legal services payable (note IV.B) - - - - 6,866,396 Net pension liability 13,100,121 9,630,255 7,937,820 30,668,196 699,180 Net other postemployment benefits liability 3,616,852 2,601,347 1,670,982 7,889,181 125,187 Total noncurrent liabilities 45,882,629 12,604,997 9,979,912 68,467,538 7,711,892 Total liabilities 51,451,912 17,820,813 10,691,474 79,964,199 10,543,309
DEFERRED INFLOWS OF RESOURCES
Leases - 1,965,024 - 1,965,024 -
Related to pensions 36,900 27,126 22,359 86,385 1,969 Related to other postemployment benefits 2,431,058 1,748,489 1,123,146 5,302,693 84,144 Total deferred inflows of resources 2,467,958 3,740,639 1,145,505 7,354,102 86,113
NET POSITION
Net investment in capital assets 69,639,220 58,221,341 6,061,061 133,921,622 - Restricted for:
Sewer connection fees 12,722,811 - - 12,722,811 - Water capital improvement charges - 1,177,444 - 1,177,444 - Unrestricted 62,364,211 29,270,972 (5,045,846) 86,589,337 14,709,117 Total net position 144,726,242$ 88,669,757$ 1,015,215$ 234,411,214 14,709,117$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Beginning adjustment to unrestricted net position 1,364,047 Current adjustment to unrestricted net position 454,327 Net position of business-type activities 236,229,588$ Business-type Activities - Enterprise Funds
CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2024
See notes to the basic financial statements.
37 73
Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
OPERATING REVENUES
Charges for sales and services 29,866,164$ 44,887,288$ 344,048$ 75,097,500$ 6,949,415$
OPERATING EXPENSES
Salaries and benefits 7,550,972 5,966,505 4,773,239 18,290,716 257,064 Materials and supplies:
Water purchases - 27,455,762 - 27,455,762 -
Utilities 1,242,104 1,126,118 49,171 2,417,393 -
Chemicals 928,307 - - 928,307 -
Other materials and supplies 253,588 466,643 546,473 1,266,704 - Services:
Professional and contracted services 1,760,207 1,871,147 396,288 4,027,642 128,124 Other services 589,088 840,280 341,872 1,771,240 53,611 Insurance 650,900 370,100 543,100 1,564,100 2,164,935 Claims and legal expenses 1,694 - - 1,694 2,294,627 General administration 2,909,567 2,828,554 2,206,581 7,944,702 607,827 Depreciation and amortization 2,466,538 1,849,805 564,068 4,880,411 - Total operating expenses 18,352,965 42,774,914 9,420,792 70,548,671 5,506,188 OPERATING INCOME/(LOSS) 11,513,199 2,112,374 (9,076,744) 4,548,829 1,443,227
NONOPERATING REVENUES AND (EXPENSES)
Grants 10,091 84,172 3,427,628 3,521,891 -
Interest 3,130,052 1,838,775 - 4,968,827 1,066,448
Other - 30,835 67,169 98,004 -
Rents and leases 240 698,673 - 698,913 -
Proceeds from sale of property 3,200 28,115 1,250 32,565 - Special item: loss on abandonment of projects (149,038) (1,953,115) - (2,102,153) - Total nonoperating revenues/(expenses) 2,994,545 727,455 3,496,047 7,218,047 1,066,448
INCOME/(LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 14,507,744 2,839,829 (5,580,697) 11,766,876 2,509,675
CONTRIBUTIONS AND TRANSFERS
Capital contributions 1,689,045 675,990 59,584 2,424,619 - Transfers in (note III.G) - 300,000 6,034,577 6,334,577 - Transfers out (note III.G) (1,422,591) (1,047,500) (981,960) (3,452,051) (157,200) Total contributions and transfers 266,454 (71,510) 5,112,201 5,307,145 (157,200) CHANGE IN NET POSITION 14,774,198 2,768,319 (468,496) 17,074,021 2,352,475 NET POSITION - BEGINNING 129,952,044 85,901,438 1,483,711 12,356,642 NET POSITION - ENDING 144,726,242$ 88,669,757$ 1,015,215$ 14,709,117$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise fund Current adjustment 454,327
Change in net position of business-type activities 17,528,348$ Business-type Activities - Enterprise Funds
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
See notes to the basic financial statements.
38 74
Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from service charges and other revenues 29,610,673$ 45,058,154$ 409,400$ 75,078,227$ 6,949,415$ Cash paid for salaries and benefits (7,129,771) (5,097,205) (4,422,057) (16,649,033) (379,341) Cash paid for supplies and materials (2,136,203) (28,250,434) (639,141) (31,025,778) - Cash paid for services (2,349,295) (2,711,427) (738,160) (5,798,882) (58,100) Cash paid for insurance (650,900) (370,100) (543,100) (1,564,100) (2,164,935) Cash paid for claims and legal expenses (1,694) - - (1,694) (2,728,022) Cash paid for general administration (2,909,567) (2,828,554) (2,206,581) (7,944,702) (607,827) Net cash provided by/(used in) operating activities 14,433,243 5,800,434 (8,139,639) 12,094,038 1,011,190
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Cash transfers from/(to) other funds (1,422,591) (747,500) 5,052,617 2,882,526 (157,200) Cash received from grants and other governments 10,091 84,172 5,122,445 5,216,708 - Cash transfers for interfund borrowing - - (1,016,171) (1,016,171) - Cash from/(to) other sources - 30,835 67,169 98,004 -
Net cash provided by/(used in) noncapital financing activities (1,412,500) (632,493) 9,226,060 7,181,067 (157,200)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Sewer connection fees and water capital improvement charges 931,807 675,990 - 1,607,797 - Payment of bonds payable (1,597,343) - - (1,597,343) - Proceeds from sale of property 3,200 28,115 1,250 32,565 - Acquisition of capital assets (9,531,594) (1,426,843) 964,570 (9,993,867) - Cash paid for SBITA Liability - (45,203) - (45,203) -
Net cash provided by/(used in) capital and related financing activities (10,193,930) (767,941) 965,820 (9,996,051) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 2,868,357 1,683,232 5,495 4,557,084 1,010,935 Rents and leases 240 650,976 - 651,216 -
Cash provided by investing activities 2,868,597 2,334,208 5,495 5,208,300 1,010,935 NET INCREASE IN CASH AND INVESTMENTS 5,695,410 6,734,208 2,057,736 14,487,354 1,864,925 CASH AND INVESTMENTS, BEGINNING OF YEAR 82,969,979 32,741,265 158,625 115,869,869 23,011,337 CASH AND INVESTMENTS, END OF YEAR 88,665,389$ 39,475,473$ 2,216,361$ 130,357,223$ 24,876,262$ Cash and investments 75,942,578$ 38,298,029$ 2,216,361$ 116,456,968$ 24,876,262$ Restricted cash and investments 12,722,811 1,177,444 - 13,900,255 - Cash and investments, end of year 88,665,389$ 39,475,473$ 2,216,361$ 130,357,223$ 24,876,262$
RECONCILIATION OF OPERATING INCOME/(LOSS) TO NET CASH
PROVIDED BY/(USED IN) OPERATING ACTIVITIES
Operating income/(loss) 11,513, 199$ 2,112,374$ (9,076,744)$ 4,548,829$ 1,443,227$ Adjustments to reconcile operating income/(loss) to net cash provided by/ (used in) operating activities:
Depreciation and amortization 2,466,538 1,849,805 564,068 4,880,411 - (Increase)/decrease in accounts receivable (255,491) 143,618 (39,704) (151,577) - (Increase)/decrease in inventory 1,820 (63,093) 9,636 (51,637) - Increase/(decrease) in accounts payable 285,976 861,182 (53,133) 1,094,025 123,635 Increase/(decrease) in accrued payroll 63,297 34,376 34,756 132,429 (3,140) Increase in compensated absences 67,523 (48,168) 48,322 67,677 (4,237) Increase/(Decrease) in unearned revenue - - 105,056 105,056 - Increase in water service prepayments - 27,248 - 27,248 - (Decrease) in claims and legal services payable - - - - (433,395) Increase/(decrease) in net pension liability 331,306 204,653 241,836 777,795 (51,073) Increase/(decrease) in net other postemployment benefits liability (40,925) 678,439 26,268 663,782 (63,827) Total adjustments 2,920,044 3,688,060 937,105 7,545,209 (432,037) Net cash provided by/(used in) operating activities 14,433,243$ 5,800,434$ (8,139,639)$ 12,094,038$ 1,011,190$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 757,238$ -$ -$ 757,238$ -$
Business-type Activities - Enterprise Funds
CITY OF SIMI VALLEY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
See notes to the basic financial statements.
39 75
Pension
and Other
Private- Postemployment
Purpose Custodial Benefits (OPEB)
Trust Funds Funds Trust Funds
Assets
Cash and investments:
Held by City (note III.A) 2,580,514$ 7,101,915$ -$
Held by bond trustee (note III.A) 2,188,101 1,114,176 - Restricted cash and investments held with Pension Trust (note III.A) - - 1,508,126 Restricted cash and investments held with OPEB Trust (note III.A) - - 3,892,853 Accounts receivable - 10,188 -
Interest receivable 25,992 - -
Capital assets not being depreciated (note V.C) 1,124,174 - - Total assets 5,918,781 8,226,279 5,400,979
LIABILITIES
Accounts payable and accrued liabilities 20,399 30,880 - Accrued interest payable 201,317 - -
Deposits - 5,953,103 -
Due to bondholders - 2,024,234 -
Long-term debt (note V.E):
Due within one year 1,506,306 - -
Due in more than one year 10,746,986 - -
Total liabilities 12,475,008 8,008,217 -
NET POSITION/(DEFICIT)
Held in trust for other purposes (6,556,227) - -
N
et position restricted for individuals - 218,062 -
Net position restricted for pensions - - 1,508,126
Net position restricted for OPEB - - 3,892,853
Total net position/(deficit) (6,556,227)$ 218,062$ 5,400,979$
CITY OF SIMI VALLEY
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
FIDUCIARY FUNDS
See notes to the basic financial statements.
40 76
Pension
and Other
Private- Postemployment
Purpose Custodial Benefits (OPEB)
Trust Funds Funds Trust Funds
ADDITIONS
Property taxes 2,114,251$ -$ -$
Other taxes - (26,124) -
Contributions - - 3,354,362
Investment earnings 140,349 85,397 492,543
TOTAL ADDITIONS 2,254,600 59,273 3,846,905
DEDUCTIONS
Administrative expenses 17,192 13,003 2,354
Benefit payments - - 3,348,976
Interest and fiscal agency expenses 621,163 304,229 -
TOTAL DEDUCTIONS 638,355 317,232 3,351,330
CHANGE IN NET POSITION 1,616,245 (257,959) 495,575
NET POSITION/(DEFICIT) - BEGINNING (8,172,472) 476,021 4,905,404 NET POSITION/(DEFICIT) - ENDING (6,556,227)$ 218,062$ 5,400,979$
CITY OF SIMI VALLEY
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
See notes to the basic financial statements.
41 77
NOTES TO THE BASIC
FINANCIAL STATEMENTS
NOTES TO THE BASIC
FINANCIAL STATEMENTS
78 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
42 I. Summary of significant accounting po licies ...................................................... 44 A. Reporting entity ............................................................................................... 44 B. Financial st atements ....................................................................................... 44 C. Measurement focus, basis of accounting, and financial statement presentation ................................................................................................ 46 D. New accounting pr onouncements ................................................................. 49 E. Assets, liabilities, deferred outfl ows/inflows of resources and net position or fund balance ............................................................................ 50
1. Deposits and investments ............................................................................ 50
2. Receivables and payables ............................................................................ 50
3. Property taxes .............................................................................................. 51
4. Inventories and prepaid items ....................................................................... 51
5. Restricted assets .......................................................................................... 51
6. Capital assets ............................................................................................... 51
7. Compensated absences ............................................................................... 52
8. Long-term obligations ................................................................................... 52
9. Pensions ....................................................................................................... 53
10. Postemployment benefits other than pensions ............................................. 53
11.Deferred outflows/inflows of resources ......................................................... 53
12.Fund balance/net position ............................................................................. 54
13.Net position flow assumption ........................................................................ 56
14.Estimates ..................................................................................................... 56 II. Stewardship, complian ce, and accountability .................................................... 56 A. Budgetary in formation .................................................................................... 56 B. Excess of expenditures o ver appropriations ............................................... 57 C. Deficit fund equity ............................................................................................ 57 III. Detailed notes on all funds ................................................................................... 57 A. Cash and in vestments ..................................................................................... 57 B. Loans rece ivable .............................................................................................. 63 C. Accounts r eceivable ........................................................................................ 67 D. Lease recei vable .............................................................................................. 68 E. Capital assets ................................................................................................... 70 F. Construction commitments ............................................................................ 72 G. Interfund receivables, payab les, and transfers ............................................. 72 H. Long-term debt ................................................................................................. 74 I. Fund balance desi gnations ............................................................................. 82 J. Assessment dist rict bonds ............................................................................. 83 K. Conduit debt ob ligations ................................................................................. 83 IV. Additional notes to the basi c financial statements ............................................ 83 A. Arbitrage reba te liability .................................................................................. 83 B. Risk manage ment ............................................................................................ 83 C. Deferred compensation plans ......................................................................... 84 D. Pension plans................................................................................................... 84 E. Other postemploym ent benefits ..................................................................... 95 F. Contingencies and subsequent even ts ......................................................... 103 G. Accounting changes and error corrections .................................................. 103 79 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
43 V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Pur pose Trust Fund .............................................................. 104 A. Reporting entity ............................................................................................... 104 B. Cash and in vestments ..................................................................................... 105 C. Capital assets ................................................................................................... 105 D. Deferred outflow of resources ........................................................................ 105 E. Long-term debt ................................................................................................. 105 F. Fiduciary ne t deficit ......................................................................................... 107 G. Insura nce .......................................................................................................... 107 80 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
44 I. Summary of significant accounting policies
A. Reporting entity
The City of Simi Valley (City) is a munici pal corporation governed by an elected mayor and four-member council. The accompanyi ng financial statem ents 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 (Dis trict) provides water services to the residents of the City of Simi Valley. The ac tivity of the District is reported as an enterprise fund.
Simi Valley Public Facilities Financing Au thority (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:
The members of the City Council also act as the governing body of each entity.
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 ar e not prepared for the District or the Authority.
B. Financial statements
The basic financial statements of the City are comprised of:
Government-wide fi nancial statements,
Fund financial statements,
Budget-to-actual comparisons for the General fund and major special revenue funds,
Notes to the basic financial statements, and
Required supplementary information.
81 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
45 In addition, supplementary information is provided for:
Non-major governmental funds,
Budget-to-actual comparisons for non-major special revenue funds,
Internal service funds, and
Fiduciary funds.
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 t he City’s water and sanitation functions and various other functions of th e government. Elimination of these charges would distort the direct cost s and program revenues report ed 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 positi on, statement of activities , and a management’s discussion and analysis sections provide an analysis of the City’s overall financial position and changes in financial position.
Net position is classified into three components: net investment in capital assets, restricted, and unrestricted. These classifications are defined as follows:
Net investment in capital assets - This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding ba lances of any bonds, mo rtgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related d ebt 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.
Restricted - This component of net positi on consists of constraints placed on net position use imposed by external creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or constraints imposed by law through constitutional provisions or enabling legislation.
Unrestricted - This component of net positi on consists of net position that does not meet the definition of “net investment in capital assets” or “restricted.”
82 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
46 When both restricted and unrestric ted resources are available in a fund, expenses are considered to be paid first from restri cted resources, and then from unrestricted resources.
The statement of activities demonstrates th e degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purc hase, 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 capita l 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 fiduciary funds are excluded from the government- wide financial statements. Fund financial st atements for the City’s governmental, enterprise, and internal service funds are presented after the government-wide financial statements. These statement s display information about major funds individually and nonmajor funds in the aggregate.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the sanitation, water, and transit funds, and of the City’s internal service funds are charges to customers for sales and services.
Operating expenses for enterprise funds and inte rnal service funds include the cost of sales and services, administrative expenses , and depreciation on capital assets. All revenues and expenses not meeting this def inition 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 ac counting 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 recogniz ed as revenue as soon as all eligibility requirements imposed by the provider have been met.
83 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
47 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. T heir 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, they are said to present a summary of sources and uses of available spendable resources during a period. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and ava ilable. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except reimbursement grant 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.
Fiduciary fund financial statem ents are reported using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities, and deferr ed inflows of resource s (whether current or noncurrent) are included in the Statement of Fiduciary Net Position. The Statement of Changes in Fiduciary Net Position pres ents increases (additions) and decreases (deductions) in fiduciary net position. Contributions are recognized in the period in which the contributions are due. Benefits are recognized when due and payable.
Property taxes, sales taxes, franchise taxes, service charges, rents, intergovernmental revenue, and interest associated with the curr ent fiscal period are a ll considered to be susceptible to accrual and so have been rec ognized 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:
General fund is the City’s primary operating fund. It accounts for all financial resources of the government except those required to be accounted for in another fund.
Special revenue funds:
Successor Housing Agency (SHA) to Co mmunity Development Agency Housing Administration fund accounts for housing set-aside funds used to reimburse the costs 84 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
48 associated with the adminis tration and coordination of affordable housing programs, processing of affordable housing agreem ents, amendment or update of the housing element of the general plan, as well as any general plan amendments for affordable housing projects.
Development Related Fees fund accounts for fees paid by developers for infrastructure construction and improvements, traffic and air quality impac t mitigation, and program participation in low- and moderate-income housing programs. This fund also accounts for performance and other deposits held by the City.
Capital projects fund:
Streets and Roads fund accounts for all street-related improvements. Grants, transfers of funds from special revenue funds accumulated via service charges, or transfers from the General fund primarily fund these improvements.
Enterprise funds:
Simi Valley Sanitation fund accounts for providing wastewater collection and treatment services in all the incorporated areas within the City, as well as adjacent unincorporated areas.
Ventura County Waterworks District No. 8 fund accounts for the activities of the District, a blended component unit of the government. The District provides water services to 60% of 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).
85 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
49 Geographical Information System (GIS)/Permits Operations fund accounts for operational costs associated with the City’s GIS and permi tting computer system s. It is financed through contributions paid by each operatin g 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.
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. New accounting pronouncements
During the fiscal year ended June 30, 2024, the City implemented the following Governmental Accounting Standards Board (GASB) standard. The financial statements included herein apply the requirements and provisions of the standard.
GASB Statement No. 100 - Accounting Changes and Error Corrections . The requirements of this statement are effect ive for reporting periods beginning after June 15, 2023.
GASB has released the following statements which will be implemented in future financial statements, if applicable:
GASB Statement No. 101 - Compensated Absences . The requirements of this statement are effective for reporting periods beginning after December 15, 2023.
86 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
50 GASB Statement No. 102 – Certain Risk Disclosures . The requirements of this statement are effective for reporting periods beginning after June 15, 2024.
GASB Statement No. 103 – Financial Reporting Model improvements . The requirements of this statement are effect ive for reporting periods beginning after June 15, 2025.
GASB Statement No. 104 – Disclosure of Certain Capital Assets . The requirements of this statement are effect ive for reporting periods beginning after June 15, 2025.
E. Assets, liabilities, deferred out flows/inflows of resources and net position/fund balance
1. Deposits and investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
State statutes and the City Investment Policy authorize the government to invest in obligations of the U.S. Tr easury, the State and local agenc ies, Federal Government- Sponsored Agency Securities, highly rated 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 fair 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 represent ative of lending/bo rrowing 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.” An y 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 av ailable financial resources. Receivables are shown net of allowance for uncollectibles.
87 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
51 3. Property taxes
Property taxes in California are levied in accordance with Articl e 13A of the State Constitution and statutory provisions by the County Assessor for the secured and unsecured tax rolls, and State Board of Equaliz ation for the utility property tax rolls. The tax levy to support general operations is limited to 1% of full value at time of purchase with subsequent annual increases up to 2%. Increase to full value is allowed for property improvements or upon change in ownership. Amounts required to finance voter-approved debt are excluded from this limitation and are calculated and levied each fiscal year.
Property taxes are levied on both real and personal property. Secured property taxes are levied July 1, payable in two equal installments: the first is due November 1 and delinquent with penalties after December 10; the second is due on February 1 and delinquent with penalties after April 10. Unsecured property taxes become delinquent with penalties after August 31. Secured property taxes become a lien on the property on January 1.
The County of Ventura bills and collects the property taxes and remits them to the City throughout the year. Property tax revenue is recognized in the fiscal year for which taxes have been levied, provided the revenue is collected in the 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 purc hased rather than capitalized as an asset. If inventory amounts are significant at year-end, they are reported as an asset. Inventory amounts in the governmental funds were not significant in fiscal year 2023-24.
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 connecti on 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 wit h an estimated useful life in excess of one year and an initial, individ ual cost of $100,000 for infrastructure, $50,000 for building 88 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
52 improvements, $100,000 for buildings, $100,000 for intangibles, $50,000 for right-of-use assets and $10,000 for all others. Such assets are recorded at historical cost. Donated infrastructure assets are recorded at estimated historical cost provided by the developer.
Donated capital assets, donated works of ar t and similar items, and capital assets received in a service concession arrangement are reported at acquisition value.
The City will capitalize a single group purchase of similar assets that would be significant collectively, even if the individual items are below the capitalization thresholds above. For the purpose of this policy, a group purchase above $100,000 is considered significant.
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 improvements 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
Furnishings, machinery, and equipment 3-15
Infrastructure 25-50
Intangibles 5-15
Right-of-use Length of Contract
Vehicles 4-7
Water/Sewer lines 30-100
7. Compensated absences
Vacation and sick leave benefits are consolidat ed 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 le vels, depending upon the employee group. All such leave is accrued when incurred in t he government-wide and proprietary funds 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 ob ligations 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 t he bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. 89 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
53 In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
9. Pensions
For purposes of measuring the net pension liabi lity, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net positi on of the City’s California P ublic Employees’ Retirement System (CalPERS) plan and Public Agency Re tirement Services (PARS) Retirement Enhancement plan (Plans) and additions to/ deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
10. 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 reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit terms.
Investments are reported at fair value, except for money market investments and participating interest-earning in vestment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.
11. Deferred outflows/inflows of resources
In addition to assets, the statements of net position and governmental funds balance sheets will sometimes report a separate section for 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) until then. The City reported the following items related to deferred outflows of resources:
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.
90 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
54 Deferred outflows of resources related to pensions and OPEB are reported in the government-wide statement 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 project ed experiences, and differences between actual and expected earnings on plan investments. These amounts are amortized and reported as a component in pension and OPEB expense in future fiscal years.
In addition to liabilities, t he statements of net position and governmental funds balance sheets will sometimes report a s eparate section for deferred in flows of resources. This separate financial statement el ement, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City reported the following items related to deferred inflows of resources:
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.
Deferred inflows of resources related to pensions and OPEB are reported in the government-wide statement of net position and the proprietary funds statement of net position. These amount s arise from changes in actuarial assumptions, differences between actual and project ed experiences, and differences between actual and expected earnings on plan investments. These amounts are amortized and reported as a component in pension and OPEB expense in future fiscal years.
Unavailable revenues are r eported in the 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 repor ted within one of the fund balance categories listed below.
Nonspendable fund balance represents funds that are not immedi ately available to support government operations. The City’s nonspendable fund balance represents long-term receivabl es that will not be convert ed to cash in the near future and prepaid items which is cash paid in the current period for expenditures applicable to a future period.
91 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
55 Restricted fund balance has constraints imposed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
Committed fund balance represents funds that can only be designated for specific purposes by formal City Council action. These amounts cannot be used for any other purpose unless the City Council re moves or changes the specified use through the same type of formal ordinance action taken to establish the commitment.
Assigned fund balance is similar to committ ed fund balance except that the City Council can authorize the City Manager, through resolution, to designate the funds for specific purposes. An example is budgeted line-item expenditures to which the City Manager has the authority to make administrative amendments, provided they do not have a significant policy impact or affect budgeted year-end fund balances.
Unassigned fund balance is the portion of fund balance that does not fall into any of the other fund balance categories. These funds are available for any legitimate government purpose. The 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 fo r 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.
Net investment in capital assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt t hat is attributed to the acquisition, construction, or improvement of the assets.
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.
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 net position first and then unrestricted net position as needed.
92 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
56 13. Net position flow assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a fl ow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted bef ore 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 C ouncil annually adopts budgets on a basis consistent with generally accepted accounting principles for the General fund, enter prise funds, special revenue funds, and internal service funds. A nnual budgeting for operations facilitates management evaluation and control. Project- 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 project 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 fund balances. The City Council may amend the budget at any time during the year. Unexpended or unencumbered appropriations lapse at the end of the fiscal year but may be eligible for reappropriation upon Ci ty Manager approval.
Encumbered appropriations are reappropriated in the ensuing year’s budget after review and approval by the City Manager.
The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level for all funds except the General fund for which, by policy, the level of budgetar y control is the department le vel. Departments within the General fund include divisions as listed in the following tabl e. A detailed City organizational chart is included in the introductory section of this document.
93 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
57 B. Excess of expenditur es over appropriations
For the fiscal year ended June 30, 2024, there were no funds where expenditures exceeded appropriations.
C. Deficit fund equity
As of June 30, 2024, the Community Developm ent Block Grant fund had a deficit fund balance of $137,729 and the Lan dscape Maintenance District No. 1 fund had a deficit fund balance of $592,844. 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 th e 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.
94 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
58 Cash and investments at June 30, 2024, are classified as follows:
Statement of net position:
Cash and investments 292,102,509 $
Restricted cash and investments 13,900,255
Fiduciary funds:
Cash and investments 9,682,429
Cash and investments held by bond trustee 3,302,277
Restricted investments held by Pension Trust 1,508,126
Restricted investments held by OPEB Trust 3,892,853
Total cash and investments 324,388,449 $
Cash and investments at June 30, 2024, consisted of the following:
Cash on hand 6,978 $
Deposits with financial institutions 15,640,865
Investments 308,740,606
Total cash and investments 324,388,449 $
The following table identif ies the investment types that are authorized by California Government Code (or the City’s investment policy or debt agreements, whichever is most restrictive) subject to the prohibitions and limitations set fort h 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 most restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Debt proceeds held by bond tr ustees are invested in accordance with the provisions of debt agreements of the City.
95 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
59 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 Days 40%
Commercial Paper 270 Days 25% 270 Days 25%
Non Negotiable CD’s 5 Years None 5 Years 30%
Negotiable CD’s 5 Years 30% 5 Years 30%
Private Deposit Placements 5 Years 30% 5 Years 30%
Repurchase Agreements 1 Year 100% 1 Year 100%
Reverse Repurchase Agreements 92 Days 20% * *
Medium Term Notes 5 Years 30% 5 Years 30%
Money Market Mutual Funds N/A 20% N/A 20%
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 combin ation of short-, medium-, and long-term investments (laddered maturities); and invests in securities maturing in 5 years or less from the settlement date.
Information about the sensitivity of the fair values of the City’s in vestments (including investments held by bond trustees) to market interest rate fluctuations is provided on the following table that shows the distribution of the City’s investments by maturity:
96 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
60 1 Year 1-2 2-5
Amount Or Less Years Years
U.S. Agencies $ 53,954,754 $ 13,504,363 $ 13,065,580 $ 27,384,811 U.S. Treasuries 43,394,793 12,062,173 14,939,420 16,393,200 U.S. Corporates 42,365,216 4,807,842 1,550,736 36,006,638 Money market mutual funds 5,634,981 5,634,981 - - LAIF 154,687,608 154,687,608 - - Held by bond trustees:
Money market mutual funds 3,302,275 3,302,275 - - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 101,145 101,145 - - Mutual Funds 5,299,834 5,299,834 - - Total $ 308,740,606 $ 199,400,221 $ 29,555,736 $ 79,784,649 Remaining Maturity in Years
Investment Type
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investm ent. This is measured by the assignment 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 agreements, and the actual rati ng as of year-end for each investment type.
Minimum
Legal
Amount Rating Aaa/Aaa-mf Aa2 Aa3 A1 A2 A3 B2 Not Rated
U.S. Agencies 53,954,754$ N/A 53,954,754$ -$ -$ -$ -$ -$ -$ -$ U.S. Treasuries 43,394,793 N/A 43,394,793 - - - - - - - U.S. Corporates 42,365,216 A3 2,838,820 4,957,801 4,608,826 19,109,989 5,872,052 4,977,728 - Money market mutual funds 5,634,981 N/A - - - - - - - 5,634,981 LAIF 154,687,608 N/A - - - - - - - 154,687,608 Held by bond trustees:
Money market mutual funds 3,302,275 N/A - - - - - - - - Money market mutual funds 101,145 N/A - - - - - - - 101,145 Mutual Funds 5,299,834 N/A - 1,960,104 - - 290,593 - 124,048 2,925,089 Total 308,740,606$ 100,188,367$ 6,917,905$ 4,608,826$ 19,109,989$ 6,162,645$ 4,977,728$ 124,048$ 163,348,823$ 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 limitat ions stipulated in the Authorized Investments table, the City’s investment policy lists the following limitations:
Authorized supranational securities must have a maximum maturity not exceeding five years from the date of trade settlement and shall be ra ted at least “AA” or its equivalent by a nationally recognized st atistical rating organization (NRSRO) at the time of purchase. Investments in supranational securities shall not exceed 30% of the portfolio.
Medium-term notes issued by corpor ations organized and operating within the 97 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
61 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 aggregat e investment in medium-term notes shall not exceed 30% of the portfolio.
State Obligations and Local Agency Issues must be rated at least “A+” or the equivalent by an NRSRO at the time of purchase with maturities not exceeding five years from the date of trade settlement. No more than 5% of the City’s total portfolio shall be invested in any one municipal is suer and the aggregate investment in municipal bonds may not exceed 30% of the portfolio.
No more than 5% of the portfolio shall be invested in the commercial paper of any one issuer and the aggregate investment in commercial paper shall not exceed 25% of the portfolio.
Purchases of negotiable cert ificates of deposit may not exceed 30% of the portfolio with no more than 5% held in any one issuer.
Investments in local agency investment fund (LAIF), pursuant to California Government Code Section 16429.1, which has a maximum of $75 million per agency/account.
Bond proceeds held by trustees and fisca l 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 30-day increments.
To the extent bond documents require an al ternate 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.
98 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
62 Pursuant to California Government Code Se ction 53653, the City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC.
To protect investments against custodial credi t risk caused by the co llapse of individual securities dealers, all securities owned by the City are held by the City’s custodial bank, a third-party bank trust department, acting as agent for the City under the terms of a custody agreement.
Investments in any one issuer (other than U.S. Treasury Obligations, money market mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:
Issuer Investment Type Reported Amount
Federal Farm Credit Bank U.S. Agencies 18,131,650$
Federal Home Loan Bank U.S. Agencies 21,634,744
Federal Home Loan Mortgage Corporation U.S. Agencies 5,249,685 Federal National Mortgage Association U.S. Agencies 8,938,675
As of June 30, 2024, the City had no investments which were not held in the City’s name.
Investment in State Investment Pool
The City is a voluntary participant in LAIF which is regulated by California Code Sections 16429.1-16429.4 under the ov ersight of the Treas urer 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 Aut hority. The City’s investment in LAIF is highly liquid, as deposits can be conv erted 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 entir e 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 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,
99 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
63 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, 2024:
Amount Level 1 Level 2 Level 3
U.S. Agencies $ 53,954,754 - $ 53,954,754$ - $ U.S. Treasuries 43,394,793 - 43,394,793 - U.S. Corporates 42,365,216 - 42,365,216 - Held by bond trustees:
Money market mutual funds 3,302,275 - 3,302,275 - Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 101,145 101,145 - - Mutual Funds 5,299,834 5,299,834 - - Total investments measured at fair value: 148,418,017 5,400,979$ 143,017,038$ - $ Investments not subject to fair value measurement hierarchy:
Money market mutual funds 5,634,981
LAIF 154,687,608
Total investments: $ 308,740,606
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 Su ccessor Housing Agency to Community Development Agency Housing Admi nistration (Agency) 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
Casa de Paz Housing, Inc., an affilia te 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 financ ial assistance for the acquisition and rehabilitation of a 14-unit apartment comple x, restricting occu pancy to very low- 100
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
64 income persons with disabilities. T he City and Agency approved an amended affordable agreement on November 20, 2001, to incorporate additional provisions required by HUD. The loan is due 50 years from the certificate of occupancy dated October 25, 2002.
ARC of Ventura County , Inc. (Vista Del Monte Rental Condominiums)
In April 2002, the Agency entered into an affordable housing agreement with ARC of Ventura County, Inc. to provide financial assistance for the acquisition of four condominium units for occupancy by very low-income, developmentally disabled persons. The loan is due and payable 55 y ears from the affordable housing agreement dated August 16, 2002, or within 60 days after HUD provides notice to the developer that it will no longer provide project-based rental assistance.
Paseo Simi Senior Apartments, 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 low- 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 eight h year following commencement of bond amortization; the note becomes due and payable 55 years from the last certificate of occupancy dated December 16, 2004. This loan was paid in full in fiscal year 2023-24.
Alamo & Fairbanks Associates, an affiliate of Cabrillo Economic Development Corporation (Plaza del Sol Apartments)
In September 2003, the Agency enter ed into an amended affordable housing agreement with Alamo & Fairba nks Associates, to assist with the financing for constructing and operating a 70-unit multifam ily apartment project, Plaza del Sol Apartments. The agreement restricts the re ntal of 34 units to very low- and low- income households. The note is to be repaid from residual receipts and is due and payable 55 years from the last certificate of occupancy dated August 11, 2005.
La Rahada, L.L.C., an affiliate of Many Mansions (La Rahada Apartments)
In June 2008, the Agency entered into an affordable housing agreement with Many Mansions to provide financial assistance for the acquisition and rehabilitation of an 8-unit apartment complex, La Rahada Apar tments, for occupancy by extremely 101
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
65 low-income, mentally disabled, and homel ess individuals. The note is due and payable 55 years from issuance of the promissory note dated June 17, 2008.
Peppertree SV, L.L.C., an affiliate of Many Mansions (Peppertree Apartments)
In June 2011, the Agency entered into an affordable housing agreement with Many Mansions to provide financial assistanc e in the form of both a bridge and permanent loans for the acquisition and rehabilitation 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.
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 Devel opment Corporation to pr ovide a $500,000 permanent loan to develop a 31-unit senior housing complex. The permanent loan shall bear 3% simple interest per annum beginning on the 18
th anniversary of the promissory
note dated December 1, 2015. Subsequently, the City provided an additional $186,279 interest-free loan for the project in May 2018 and amended the affordable housing agreement terms to add an additional 10 years of affordability.
The first note is due and payable 55 years from issuance of the promissory note dated December 1, 2015. The second note is due and payable 65 years from issuance of the final certificate of occupancy dated February 22, 2017.
Simi Vintage Sycamore 650, L.P. (Vin tage 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 towards the development of a 99-unit multifamily senior apartment project on an approximately 2.98-acre parcel of land.
The rental of 10 apartment units will be restricted to very low-income senior households, and 38 apartment 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 established 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, 102
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
66 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 City Council authorized suspension of two affordable housing programs - the First Time Home Buyer (FTHB) Program and the Mobile Home Rehab Pr ogram. Over its many year s 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 June 6, 2016, the City Council approved reinstatement of the FTHB assistance program utilizing remaining grant funds from the 2011 CalHome award. The City maintains 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:
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 Arts Center Foundation endowment fund or provided for operations in excess of the annual support campaign.
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 re vised, and the Cemetery’s property tax pass-through funds were to be applied to retire the loan until there was a change in the Cemetery’s ability to repay the loan. Effective, July 1, 2011, the County’s pass-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 in cluded in the receivable balance. Additionally, the receivable balance is stated net of an unco llectible allowance of $74,397. In November 2015, Cemetery staff submitt ed an informal request for consideration of complete loan forgiveness by the City; as of June 30, 2024, no action has been taken.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
67 Loans receivable (net of allowance for uncolle ctibles) balances at June 30, 2024, were as follows:
Interest
Rate
Term
(Yrs)
Year
Due Principal Due Interest Due Total
Affordable Housing Program:
Casa de Paz Apartments 0.0% 50 2052 122,551 $ - $ 122,551$ Vista Del Monte Rental Condominiums 0.0% 55 2057 175,000 - 175,000 Plaza del Sol Apartments 3.0% 55 2060 1,900,000 557,744 2,457,744 La Rahada Apartments 3.0% 55 2063 250,000 120,293 370,293 Peppertree Apartments 3.0% 55 2068 575,000 184,552 759,552 Camino Esperanza Senior Apartments 3.0% 55 2070 500,000 - 500,000 Camino Esperanza Amendment #1 0.0% 65 2082 186,279 - 186,279 Vintage at Sycamore Senior Apartments 3.0% 55 2075 3,500,000 440,425 3,940,425 Affordable Housing Program 7,208,830 1,303,014 8,511,844 Principal Due Interest Due Total
First Time Homebuyer Program:
FTHB - Successor Housing Agency 9,704,512 - 9,704,512 FTHB - LHF 1,771,200 - 1,771,200 FTHB - CalHome 60,000 - 60,000 FTHB - HOME 607,700 - 607,700 FTHB - CDBG 20,800 - 20,800 First Time Homebuyer Program Equity Share 12,164,212 - 12,164,212 Principal Due Interest Due Total
Home Rehabilitation Program:
Home Rehab - Successor Housing Agency 217,120 43,434 260,554 Home Rehab - LHF 209,055 22,676 231,731 Home Rehab - CalHome 705,824 134,078 839,902 Home Rehab - HOME 1,274,900 152,916 1,427,816 Home Rehab - CDBG 140,150 37,379 177,529 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% 2,754,335 452,669 3,207,004 Total housing loans receivable 22,127,377 1,755,683 23,883,060 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 22,348,592$ 1,755,683$ 24,104,275$
C. Accounts receivable
Accounts receivable reported under governmental activities as of year-end are reported net of allowance for uncollectibles as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
68 Accounts
receivable
Allowance for
uncollectibles
Total accounts
receivable, net
General Fund 1,376,191$ (376,104)$ 1,000,087$
SHA to CDA Housing Administration 56,524 - 56,524 Streets and Roads 11,668 - 11,668 Nonmajor Governmental Funds 1,034,414 - 1,034,414 Total 2,478,797$ (376,104)$ 2,102,693$
D. Lease receivable
On December 19, 2004, the City entered into a 5-year license agreement with AT&T for property located at the First Street water tank with the option to extend 3 times for 5 years each. At inception, AT&T paid an annual license fee of $41,256, increasing 5% annually.
This lease concluded in fiscal year 2023-24.
On December 19, 2004, the City entered into a 5-year license agreement with AT&T for property located at the Stearns Street water tank with the opt ion to extend 3 times for 5 years each. At inception, AT&T paid an annual license fee of $41,256, increasing 5% annually. This lease concluded in fiscal year 2023-24.
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 Drive; the term of this amendment is 50 years. At inception, The Boys and Girls Club paid 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 Avenue wa ter 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 inception AT&T paid an annual license fee of $58,640, increasing 5% annually.
On February 15, 2018, the City entered into a 14-year lease agre ement with Kaiser Permanente for property located at 3855-A Alamo Street with the 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. At inception, Kaiser paid a monthly lease fee of $39,250, increasing 2% annually.
On June 18, 2018, the City entered into a 5-year license agreement with Phoenix Tower International for property located at Walnut Avenue water tank with the option to extend 1 time for 5 years. At inception T-Mobile paid an annual license fee of $60,777, increasing 3% annually.
On April 8, 2019, the City entered into a 5-year license agreement with AT&T for property located at the Hilltop Road water tank with the option to ext end 1 time for 5 years. At 105
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
69 inception, AT&T paid 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 Street water tank with the option to extend 1 time for 5 years.
At inception, T-Mobile paid an annual license fee of $58,709, increasing 5% annually and
12.5% at the license renewal date.
On December 2, 2019, the City entered into a 5-year license agreement with T-Mobile for property located at the Mader a Road water tank with the opt ion to extend 1 time for 5 years. At inception, T-Mobile paid an annual license fee of $58,709, increasing 5% annually and 12.5% at the license renewal date.
At June 30, 2024, the lease receivable and defe rred inflows of resources for the above leases were $11,593,607 and $10,580,251, respectively.
Year Ending
June 30: Lease Receivable
2025 655,046 $
2026 693,161
2027 732,930
2028 774,425
2029 742,970
2030-2034 2,795,583
2035-2039 2,903,366
2040-2044 1,826,734
2045-2049 114,650
2050-2054 127,141
2055-2059 140,992
2060-2062 86,609
11,593,607$
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
70 E. Capital assets
Capital asset activities for the fiscal year ended June 30, 2024, were 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 18,235,510 13,213,282 (30,193,610) 1,255,182 Total capital assets, not being depreciated 28,857,321 13,213,282 (30,193,610) 11,876,993 Capital assets, being depreciated:
Buildings and improvements 61,066,551 4,219,970 - 65,286,521 Furnishings and equipment 16,214,793 3,625,382 (67,540) 19,772,635 Vehicles 7,694,449 1,044,216 (722,490) 8,016,175 Infrastructure 369,758,120 18,447,991 - 388,206,111 Total capital assets being depreciated 454,733,913 27,337,559 (790,030) 481,281,442 Capital assets, being amortized:
Intangibles 11,508,268 4,678,656 - 16,186,924 Right-of-use leases 2,606,803 - - 2,606,803 Right-of-use SBITAs 290,504 801,098 - 1,091,602 Total capital assets being amortized 14,405,575 5,479,754 - 19,885,329 Less accumulated depreciation for:
Buildings and improvements (31,106,401) (1,502,534) - (32,608,935) Furnishings and equipment (13,144,083) (643,703) 67,540 (13,720,246) Vehicles (6,042,207) (606,491) 722,490 (5,926,208) Infrastructure (195,237,640) (8,653,187) - (203,890,827) Total accumulated depreciation (245,530,331) (11,405,915) 790,030 (256,146,216) Less accumulated amortization for:
Intangibles (8,807,975) (411,307) - (9,219,282) Right-of-use leases (173,787) (86,896) - (260,683) Right-of-use SBITAs (193,669) (345,912) - (539,581) Total accumulated amortization (9,175,431) (844,115) - (10,019,546) Total capital assets, being depreciated/amortized, net 214,433,726 20,567,283 - 235,001,009 Governmental activities capital assets, net 243,291,047$ 33,780,565 $ (30,193,610) $ 246,878,002 $
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
71 Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,216,994 $ - $ - $ 1,216,994$ Construction-in-progress 31,652,196 10,638,485 (10,373,682) 31,916,999 Total capital assets, not being depreciated 32,869,190 10,638,485 (10,373,682) 33,133,993 Capital assets, being depreciated:
Buildings and improvements 14,950,026 2,688,779 - 17,638,805 Furnishings and equipment 8,908,934 5,092 - 8,914,026 Vehicles 13,673,693 430,194 (180,787) 13,923,100 Infrastructure 228,682,340 6,292,484 - 234,974,824 Total capital assets being depreciated 266,214,993 9,416,549 (180,787) 275,450,755 Capital assets, being amortized:
Intangibles 54,400 - - 54,400 Right-of-use SBITAs - 163,348 - 163,348 Total capital assets being amortized 54,400 163,348 - 217,748 Less accumulated depreciation for:
Buildings and improvements (9,281,547) (276,728) - (9,558,275) Furnishings and equipment (5,991,503) (300,213) - (6,291,716) Vehicles (11,135,693) (731,113) 180,787 (11,686,019) Infrastructure (111,615,576) (3,531,520) - (115,147,096) Total accumulated depreciation (138,024,319) (4,839,574) 180,787 (142,683,106) Less accumulated amortization for:
Intangibles (54,400) - (54,400) Right-of-use SBITAs - (40,837) - (40,837) Total accumulated amortization (54,400) (40,837) - (95,237) Total capital assets, being depreciated/amortized, net 128,190,674 4,699,486 - 132,890,160 Business-type activities capital assets, net 161,059,864$ 15,337,971$ (10,373,682)$ 166,024,153 $
108
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
72 Depreciation and amortization expenses were charged to functions/programs of the primary government as follows:
Governmental activities:
General government 8,127,432 $
Community services 833,835
Planning 32,086
Public ways and facilities 2,454,876
Public safety 801,801
12,250,030$
Business-type activities:
Sanitation 2,466,538$
Waterworks 1,849,805
Transit 564,068
4,880,411$
Total depreciation/amortization expense - governmental activities Total depreciation/amortization expense - business-type activities
F. Construction commitments
The City has active construction projects as of June 30, 2024. 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, 2024 Commitments*
SV 23-16 Walnut 2 West Tank 2.0 MG Rehabilitation 742,330$ 11,989 $ 730,341 $ Total Commitments 742,330$ 11,989 $ 730,341 $ * Amount includes possible contingency
G. Interfund receivables, payables, and transfers
The interfund amounts between the General fund and nonmajor governmental funds are for short-term loans to cover operations . The interfund amounts between the Successor Housing Agency to Community Developm ent Agency Housing Administration and nonmajor 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, 2024, is as follows:
109
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
73 Due to / from other funds:
Receivable Fund Payable Fund
General Nonmajor governmental 1,250,142$
SHA to CDA Housing Administration General 574
Nonmajor governmental General 25,107
Total 1,275,823$
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 the fiscal year ended June 30, 2024, is as follows:
110
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
74 From Fund To Fund Amount Purpose
General Streets and roads $ 8,381,220 Fund street and road programs Nonmajor governmental 4,995,222
Fund Landscape zones, scheduled debt
service, and contributions to
replacement funds
Proprietary 300,000 Storm drain repair
13,676,442
Development Related
Fees General $ 370,000
Fund projects impacted by new
development
Streets and roads 890,000 Fund street proects Nonmajor governmental 778,474
Fund scheduled debt service and
contributions to replacement funds
2,038,474
Nonmajor
governmental General 3,791,752
Fund gas tax, development agreements,
and State Supplemental Law
Enforcement Services
Streets and roads 2,732,620 Fund street projects Nonmajor governmental 1,134,666 Fund transit operations Proprietary 6,034,577 Fund transit operations
13,693,615
Total governmental funds 29,408,531
Trans fers From Trans fers To Amount Purpose
Proprietary General 856,371
Contributions for pension and OPEB
costs
Nonmajor governmental 2,752,880
Contributions to replacement funds and
fund capital project funds
3,609,251
Total proprietary funds 3,609,251
Total transfers $ 33,017,782
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:
111
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
75 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 payments will be supported by contributions from various City funds based on the benefit received. The identified funds have the long-term financial capacity to support the required payments. In t he event of a default, as defined in the lease agreement, notwithstanding anything in the lease agreement 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 leas e agreement. As of Ju ne 30, 2024, total interest and principal remaining on the bonds is $16,191,707.
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 t he NCREBs Solar Equipment and the Tax- Exempt Project for the financin g of the acquisition, constr uction, 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 pr oceeds 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, 2024, total interest and principal remaining on the 2016 NCREBs and tax-exempt bonds is $8,423,242 and $612,093, respectively.
2017 Tax-Exempt Equipm ent Lease Agreement:
The City entered into an agreem ent with the SVPFFA as lessor and the City of Simi Valley as lessee to provide financing for a replacement te lephone system, energy efficiency upgrades including LED lighting at City facilities, and HVAC system replacement and improvements. The lease agreement obligates the City to make base lease payments to SVPFFA, and SVPFFA assign
ed such payments to Bank of
112
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
76 America. The Simi Valley Senior Center is the asset which was used as collateral for this tax-exempt financing. The issue price of the tax-exempt bond associated with this transaction is $6,408,600, based on an interest rate of 3.00% per year and a maturity date of March 1, 2033. In th e 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, 2024, the total interest and principal remaining on the issuance is $4,494,259.
2018 Taxable Equipment Lease/Purchase Agreement:
The City entered into a lease arrangement with Banc of America Leasing & Capital, L.L.C. to provide financing for a purc hase and sale agreement and pole license agreement with Southern California Edison for the acquis ition 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 th is taxable financing. The stated acquisition amount for this trans action is $5,655,845. The type of debt instrument for this private placement financing is certific ates of participation/leases, with a stated interest rate of 5.15% and a settlement date of May 15, 2018 with a maturity date of March 1, 2034. In the event of a defaul t, as defined in the lease agreement, there is no right to accelerate any rental payment or otherwise declare any rental payment or other amount payable not then in default to be immediately due and payable. As of June 30, 2024, total interest and principal remaining on the lease agreement is $5,676,377.
2019 Taxable Equipment Lease/Purchase Agreement:
On December 10, 2019, the City entered into a lease arrangement with Banc of America Leasing & C apital, L.L.C. to provide financing for the acquisition and installation of certain equi pment at the Water Quality Control Plant. The project provides enhanced electrical functions for energy savings as well as replacement and rehabilitation of outdated and worn-out equipment. The stated acquisition amount for this transaction is $33,816,566. The type of debt instrument for this private placement financing is certificates of participation/leases with a stated interest rate of 2.31% and maturity date of September 1, 2039. In the event of a default, as defined in the lease agreement, there is no right to accelerate any rental payment or otherwise declare any rental payment or other amount payable not then in default to be immediately due and payable. As of June 30, 2024, total interest and principal remaining on the lease agreement is $35,950,692.
Annual debt service requirements to maturity
The annual requirements to am ortize the bonds and advances as of June 30, 2024, including interest, are as follows:
113
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
77 Governmental Activities
Year Ending
June 30: Principal Interest Total
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 1,145,000 329,650 1,474,650 2030-2034 6,485,000 875,738 7,360,738 2035 1,445,000 27,094 1,472,094 13,110,000$ 3,081,707$ 16,191,707$
2014A Lease Revenue Refunding Bonds
Year Ending
June 30: Principal Interest Total
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 477,678 170,980 648,658 2030-2034 2,659,842 578,543 3,238,385 2035-2037 1,837,596 101,074 1,938,670 6,725,091$ 1,698,151$ 8,423,242$
2016 New Clean Renewable Energy Bonds
2016 New Clean Renewable Energy Bonds (Tax-Exempt)
Year Ending
June 30: Principal Interest Total
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 38,136 8,974 47,110 2030-2034 205,407 29,961 235,368 2035-2037 135,929 5,132 141,061 522,975$ 89,118 $ 612,093 $
114
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
78 Year Ending
June 30: Principal Interest Total
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 516,320 57,521 573,841 2030-2033 1,530,139 94,915 1,625,054 3,964,631$ 529,628$ 4,494,259$
2017 Equipment Lease (Tax-Exempt)
Year Ending
June 30: Principal Interest Total
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 423,769 143,869 567,638 2030-2034 2,474,402 363,787 2,838,189 4,393,313$ 1,283,064$ 5,676,377$
2018 Equipment Lease/Purchase Agreement
Business-type Activities
Year Ending
June 30: Principal Interest Total
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 1,791,594 527,805 2,319,399 2030-2034 9,601,592 1,995,405 11,596,997 2035-2039 10,769,229 827,769 11,596,998 2040 1,146,467 13,233 1,159,700 30,077,842$ 5,872,850 $ 35,950,692 $
2019 Equipment Lease/Purchase Agreement
115
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
79 Other long-term debt of the City is comprised of:
City-wide Activities
Compensated absences liability of $8,392,473 at fiscal year-end. This liability consists of accumulated earned - but unused - leav e of employees charged to the General fund, Enterprise funds, and the Workers’ Compensation – Internal Service fund. The liability is liquidated from the funds to which an employee is charged. The largest portion of the liability (80%) is attributable to the General fund.
Net pension liability of $169,386,247. 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.
OPEB liability of $69,100,366. This liability consists of the actuarially determined liability attributable to governmental activities and business-type activities of the Enterprise funds. OPEB funds health insurance benefits for retired employees. The liability is liquidated from the funds to which an employee is charged. See note IV.E for additional detail regarding this liability.
Governmental Activities
Claims and legal services payable of $9, 489,575, 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, 2024. See note IV.B for additional detail regarding this liability.
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 $2,346,120 and a right- of-use liability of $2,506,984 as of June 30, 2024.
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2024, were as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
80 Year Ending
June 30: Principal Interest Total
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 51,346 36,637 87,983 2030-2034 311,148 169,977 481,125 2035-2039 415,355 142,401 557,756 2040-2044 540,586 106,007 646,593 2045-2049 690,548 59,030 749,578 2049-2051 324,556 7,701 332,257 2,506,984$ 675,349$ 3,182,333$
Right-of-use subscription-based information technology arrangements (SBITA) liability
The City entered into a software subscription agreement with SoftwareOne on January 1, 2024, for a term of two years. Subscrip tion payable is measur ed at the present value of the subscription payments expected to be made during the subscription term measured at a discount rate of 4.09%. As a result of the software subscription, the City has recorded a right-of-use asset with a net book value of $390,421 and a right- of-use liability of $398,192 as of June 30, 2024.
The future minimum SBITA obligations and the net present val ue of these minimum SBITA payments as of June 30, 2024, were as follows:
Year Ending
June 30: Principal Interest Total
2025 195,106 $ 16,286 $ 211,392 $ 2026 203,086 8,306 211,392 398,192$ 24,592 $ 422,784 $
The City entered into a software subscrip tion agreement with Flock Group, Inc. on March 31, 2023, for a term of four years. Subscription payable is measured at the present value of the subscription pay ments expected to be made during the subscription term measured at a discount rate of 4.19%. As a re sult of the software subscription, the City has recorded a right -of-use asset with a net book value of $161,600 and a right-of-use liability of $158,994 as of June 30, 2024.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
81 The future minimum SBITA obligations and the net present val ue of these minimum SBITA payments as of June 30, 2024, were as follows:
Year Ending
June 30: Principal Interest Total
2025 50,838$ 6,662$ 57,500$ 2026 52,968 4,532 57,500 2027 55,188 2,312 57,500 158,994$ 13,506$ 172,500$
Business-type Activities
Right-of-use SBITA liability
The City entered into a software subscripti on agreement with Drop countr, Inc. on September 1, 2022, for a term of five years. Subscription payable is measured at the present value of the subscription pay ments expected to be made during the subscription term measured at a discount rate of 4.19%. As a re sult of the software subscription, the City has recorded a right -of-use asset with a net book value of $122,511 and a right-of-use liability of $124,990 as of June 30, 2024.
The future minimum SBITA obligations and the net present val ue of these minimum SBITA payments as of June 30, 2024, were as follows:
Year Ending
June 30: Principal Interest Total
2025 39,965 $ 5,237 $ 45,202 $ 2026 41,640 3,563 45,203 2027 43,385 1,818 45,203 124,990$ 10,618 $ 135,608 $
Changes in long-term liabilities
Long-term liability activity for the year ended June 30, 2024, was as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
82 Beginning
B alances Increase D ecrease E nding B alances
D ue Within O ne
Year
Governmental activities:
2014A lease revenue refunding bond 14,000,000 $ - $ (890,000)$ 13,110,000 $ 935,000 $ 2016 New Clean Renew able Energy Bonds (NCREBs) 7,125,152 - (400,061) 6,725,091 414,503 2016 NCREBs tax exempt 556,698 - (33,723) 522,975 34,563 2017 lease agreement 4,409,524 - (444,893) 3,964,631 458,340 2018 lease agreement 4,721,948 - (328,635) 4,393,313 345,777 Add (less) deferred amounts:
Bond premium 1,100,413 - (98,636) 1,001,777 98,637 Total bonds payable 31,913,735 - (2,195,948) 29,717,787 2,286,820 Claims and legal services 9,922,971 2,220,637 (2,654,033) 9,489,575 2,623,179 Compensated absences 6,856,879 17,316 (16,972) 6,857,223 685,722 Right-of-use lease liability 2,542,954 - (35,970) 2,506,984 38,812 Right-of-use SBITA liability - 801,098 (243,912) 557,186 245,944 Net pension liability 134,780,191 28,745,766 (24,807,906) 138,718,051 - Net OPEB liability 71,226,069 2,348,017 (12,362,901) 61,211,185 - Governmental activity
long-term liabilities 257,242,799 $ 34,132,834 $ (42,317,642) $ 249,057,991 $ 5,880,477 $ B usiness-type activities:
2019 lease agreement 31,675,185 $ - $ (1,597,343)$ 30,077,842 $ 1,634,431 $ Compensated absences 1,467,571 115,844
(48,165) 1,535,250 153,525
Right-of-use SBITA liability - 163,348 (38,358) 124,990 39,965 Net pension liability 30,950,717 3,347,165 (3,629,686) 30,668,196 - Net OPEB liability 12,428,806 - (4,539,625) 7,889,181 - Business-type activity
long-term liabilities 76,522,279$ 3,626,357$ (9,853,177)$ 70,295,459$ 1,827,921$
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 Nonspendabl e, 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 pa rticular purpose from both restricted and unrestricted resources. In order to calc ulate the amounts to report as restricted, committed, assigned, and una ssigned fund balance in the gov ernmental 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, 2024
83 J. Assessment district bonds
The City has formed several special assessment districts and subsequently issued bonds for the construction of public improvements within these distri cts. 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, 2024, consisted of the following:
Community Facilities District (District No. 04-1) 4,985,000$ Madera Royal (District No. 98-1) 240,000
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 Federal laws that exp licitly state that they do not constitute any indebtedness of the City. As of June 30, 2024, there is no outstanding conduit debt.
IV. Additional notes to the basic financial statements
A. Arbitrage rebate liability
The City is required to rebate to the Federal government the excess investment earnings on bond proceeds if the yield on those earnings exceeds the effective yield on the related bonds issued. Rebates are payable every five years or upon the maturity of the bonds, whichever is earlier. At June 30, 2024, no such amounts were due.
B. Risk management
The City is exposed to various risks of loss re lated 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 Liabi lity 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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
84 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 oc curred, 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. C hanges 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, 2024 June 30, 2023
Unpaid claims beginning of fiscal year 9,922,971 $ 11,387,693 $ Incurred claims (including IBNRs and adjusted claims expense) 2,220,637 294,811 Claims payments (2,654,033) (1,759,533)
Unpaid claims, end of fiscal year 9,489,575 $ 9,922,971 $
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 unforeseeable emergency. Since the City neither owns the f unds nor has any administrat ive involvement and does not perform the investing function for these plans, the assets and related liabilities are not recorded in the City’s financial statements.
D. Pension plans
The City participates in the statewide California Public 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 administrat ive 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 regardi ng benefit provisions , assumptions, and membership information that can be found on the CalPERS website:
http://www.calpers.ca.gov.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
85 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 member s are eligible for non-duty disability benefits after 10 years of service. The death benefit is the 1957 Survivor Benefit.
Cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect at June 30, 2024, 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% 8.00%
Required employer contribution rates 10.67% 10.67%
Payment of unfunded liability $9,282,830 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 10.31% 14.00%
Required employer contribution rates 21.25% 21.25%
Payment of unfunded liability $6,170,636 Included in tier 1 Miscellaneous
Safety
At the 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 739 181 Inactive employees entitled to, but not yet receiving, benefits 427 46 Active employees 367 114
1,533 341
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
86 Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rate s for all public employers be determined on an annual basis by the actuary a nd 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 di fference between the actuarially determined rate and the contribution rate of employees.
Funding Policy – Participants are required to contribute between 7.00% and 14.00% 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. Gener al Unit employees hired before 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 8.00% of their covered salary. Non-sworn management hired prior to July 1, 2010, are requi red to contribute
4.00% of their covered salary and the Cit y contributes 3.00%. Non-sworn management hired after July 1, 2010, but before January 1, 2013, are r equired to contribute the full
7.00% of their covered salary. Non-sworn management hired on or after January 1, 2013, are required to contribute the full 8.00% of their covered sa lary. Sworn employees hired before January 1, 2013, are required to contribute the full 10.31% of their covered salary.
Sworn employees hired on or after January 1, 2013, are required to c ontribute the full
14.00% 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 10.67% for miscellaneous employees. Non-sworn management employees hired prior to July 1, 2010, are required to contribute 3.00% of this cost. For safety employees, the employer rate is 21.25% of annual covered payroll for the year ended June 30, 2024. Sworn employees hired pr ior to July 1, 2010, are required to contribute 3.00% of this cost. The contribution requirements of plan members and the City are established - and may be amended - by CalPERS.
Net Pension Liability – The City’s net pension liability for each Plan is measured as the total pension liability, less th e pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022, rolled forw ard to June 30, 2023, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
87 Miscellaneous Safety
Valuation date June 30, 2022 June 30, 2022
Measurement date June 30, 2023 June 30, 2023
Actuarial cost method
Actuarial assumptions:
Discount rate 6.90% 6.90%
Price inflation 2.30% 2.30%
Projected salary increase
Mortality rate table (1)
Post retirement benefit increase
Entry Age Actuarial Cost Method
Derived using CalPERS' membership
data for all funds
Varies by entry age and service
(1) The mortality table used w as developed based on CalPERS-specific data.
The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS w ebsite.
The lesser of contract cost of living
adjustment or 2.30% until purchasing
power protection allowance floor on
purchasing power applies, 2.30%
thereafter
Discount Rate – The discount rate used to measure the total pension liability was 6.90% 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. Th erefore, 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:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
88 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) 241,027,614$ 100% 6.90% 16,630,905 $ Net plan to plan resource movement 1,535 50% 6.90% 53 Employer contributions 14,037,970 50% 6.90% 484,310 Employee contributions 2,005,336 50% 6.90% 69,184 Benefit paymens including refunds of employee contributions (19,821,138) 50% 6.90% (683,829) Administrative expense (177,395) 50% 6.90% (6,120) Other miscellaneous income/(expense) (2) - 50% 6.90% - Total projected Earnings 16,494,503$
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) 151,658,828$ 100% 6.90% 10,464,459 $ Net plan to plan resource movement (1,535) 50% 6.90% (53) Employer contributions 7,422,771 50% 6.90% 256,086 Employee contributions 1,327,329 50% 6.90% 45,793 Benefit payments including refunds of employee contributions (11,139,711) 50% 6.90% (384,320) Administrative expense (111,593) 50% 6.90% (3,850) Other miscellaneous income/(expense) (2) - 50% 6.90% - Total projected Earnings 10,378,115$
(1) Includes any beginning of year adjustment. Contribution receivables for employee service buybacks, totalling $209,980 as of June 30, 2022, were excluded for purposes of calculating projected earnings on pension plan investments. (2) The increase/(decrease) in contribution receivables for employee service buybacks, totalling ($81,443) during fiscal year 2022-23 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 $95,415 as of June 30, 2022, were excluded for purposes of calculating projected earnings on pension plan investments. (2) The increase/(decrease) in contribution receivables for employee service buybacks, totalling ($8,552) during fiscal year 2022-23 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 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, 2023. The assets for the City’s Miscellaneous and Safety Plans are part of the PERF and are invested accordingly.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
89 Policy Target
Actual Allocation
Allocation effective
Asset Class 06/30/2023 7/1/2022
Global Public Equity
Market capitalization weighted 33.1% 30.0%
Factor weighted 12.0% 12.0%
Private Equity 12.9% 13.0%
Income
Treasuries 5.1% 5.0%
Mortgage-backed securities 5.1% 5.0%
Investment grade corporates 6.6% 10.0%
High yield bonds 4.5% 5.0%
Emerging market sovereign bonds 5.1% 5.0%
Real assets 15.2% 15.0%
Private debt 2.2% 5.0%
Other trust level 0.0% 0.0%
Leverage
Strategic -1.8% -5.0%
Total 100.0% 100.0%
The expected long-term rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both the short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long term (11+ years) using a building-block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calcul ating the rounded single equivalent expected return that arrived at the same present va lue of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects long-term expected real rate of return by asset class:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
90 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, 2023 (measured as of June 30, 2022) 341,417,503$ 241,237,594 $ 100,179,909 $ Changes for the year:
Service cost 4,773,495 - 4,773,495 Interest on total pension liability 23,306,622 - 23,306,622 Changes of benefit terms 477,899 - 477,899 Differences between expected and actual experience 3,405,539 - 3,405,539 Net plan-to-plan resource movement - 1,535 (1,535) Contributions - employer - 14,037,970 (14,037,970) Contributions - employees - 1,923,893 (1,923,893) Net investment income - 14,992,664 (14,992,664) Benefit payments, including refunds of employee contribtuions (19,821,138) (19,821,138) - Administrative expenses - (177,395) 177,395 Net changes 12,142,417 10,957,529 1,184,888 Balance at June 30, 2024 (measured as of June 30, 2023) 353,559,920$ 252,195,123 $ 101,364,797 $ Increase/(Decrease)
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
91 Safety Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (measured as of June 30, 2022) 217,305,242$ 151,754,243 $ 65,550,999 $ Changes for the year:
Service cost 3,881,615 - 3,881,615 Interest on total pension liability 14,865,937 - 14,865,937 Changes of benefit terms 101,086 - 101,086 Differences between expected and actual experience 1,671,077 - 1,671,077 Net plan-to-plan resource movement - (1,535) 1,535 Contributions - employer - 7,422,771 (7,422,771) Contributions - employees - 1,318,777 (1,318,777) Net investment income - 9,420,844 (9,420,844) Benefit payments, including refunds of employee contribtuions (11,139,711) (11,139,711) - Administrative expenses - (111,593) 111,593 Net changes 9,380,004 6,909,553 2,470,451 Balance at June 30, 2024 (measured as of June 30, 2023) 226,685,246$ 158,663,796 $ 68,021,450 $ Increase/(Decrease)
Sensitivity of the Net Pensio n 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 142,562,314$ 101,364,797 $ 66,813,145 $ Safety Plan 97,924,971$ 68,021,450 $ 43,337,404 $
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, 2023, the Cit y recognized total pension expense of $25,986,977. The Miscellaneous Plan portion of pension expense was $16,709,585, and Safety Plan portion of pens ion expense was $9,277,392. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
92 Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date 12,645,672$ - $ Changes of assumptions 1,144,435 -
Differences between expected and actuals experience 1,924,870 (285,520) Net difference between projected and actual earnings
on pension plan investments 11,269,610 -
Total 26,984,587 $ (285,520) $
Miscellaneous
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement dates 9,282,721$ - $ Changes of assumptions 2,765,723 -
Differences between expected and actuals experience 1,242,596 (1,895,273) Net difference between projected and actual earnings
on pension plan investments 7,172,419 -
Total 20,463,459 $ (1,895,273) $
Safety
$21,928,393 reported as total def erred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period
Ending June 30: Miscellaneous Safety
2024 4,274,007$ 1,943,951 $
2025 1,480,949 1,701,339
2026 7,998,072 5,448,720
2027 300,367 191,455
2028 - -
Thereafter - -
Deferred Outflows/(Inflows) of Resources
At June 30, 2024, the City had no outstanding payable amount of contributions to the pension plan required for the fiscal year ended June 30, 2024. Pension liability and expense are allocated to the City’s proprietary funds based on the portion of Citywide pensionable earnings paid to employees from those funds.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
93 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 on or after August 30, 2010. PARS is a defin ed benefit 401(a) tax-qualified multiple agency trust. It meets the requirements of a pension trust under California Government code. The plan provides supplemental retirement benefits in addition to CalPERS. US Bank is the PARS trustee. Upon meeting the el igibility requirem ents, plan members receive a monthly lifetime benefit of one-twelfth the sum of: 0.4% of the employee’s final average compensation for service prior to July 1, 2001, plus 0.5% of the employee’s final average compensation for service from July 1, 2001, through August 30, 2010. Employees are eligible to retire the first of the month follo wing, or coincident with, attainment of age 60, with four or more years of service at termination. Employ ees must be retired under CalPERS to be eligible to retire under PAR S. 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 $135,008. Plan assets held in trust at June 30, 2024, totaled $1,508,126. PARS funding is based on the bi-annual actuarially required contribution calculated by an independent consultant.
Because the PARS benefit has been frozen, the PARS funding is no longer based on a percentage of gross payroll for executive management. The funding amount is based on the demographics of actual remaining plan participants, both active and retired and future plan costs derived from the bi-annual actuarial study. T he most recent study was completed for June 30, 2022.
Employees covered – At the June 30, 2022, census date, 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 was determined by an actuarial valu ation as of the valuation date of June 30, 2022, calculated based on t he discount rate and actuarial assumptions below, and was then projected forward to the measurement date of June 30, 2024. Any significant changes during this period have been reflected as prescribed by GASB Statement No. 67 and GASB Statement No. 68.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
94 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 are per the actuary’s investment consulting practice as of June 30, 2024. The target allocation and best estimates of the real rates of return for each major asset class are summarized in the following table:
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 8.81% 0.94% 0.91%
US Core Fixed Income Bloomberg Barclays Aggregate 62.23% 2.52% 2.36% US Broad Equity Market Russell 3000 TR 22.04% 5.52% 3.82% Foreign Developed Equity MSCI EAFE NR 4.02% 6.92% 5.12% Emerging Markets Equity MSCI EM NR 2.05% 9.34% 6.21%
US REITs FTSE Nareit All Equity REIT 0.85% 6.91% 4.72%
Assumed Inflation - Mean 2.31% 2.30%
Assumed Inflation - Standard Deviation 1.45% 1.45%
Portfolio Real Mean Return 3.39% 3.15%
Portfolio Nominal Mean Return 5.70% 5.54%
Portfolio Standard Deviation 5.94%
City's Long-Term Expected Rate of Return 6.50%
Discount Rate
As of June 30, 2024, 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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
95 Changes in the Net Pension Liability – PARS Plan
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 1,881,907 $ 1,413,742 $ 468,165 $ Changes for the year:
Service cost - - - Interest on total pension liability 118,178 - 118,178 Effect of plan changes - - - Effect of economic/demographic gains or losses - - - Effect of assumptions changes or inputs - - - Benefit payments (129,622) (129,622) - Employer contributions - 135,008 (135,008) Member contributions - - - Net investment income - 89,467 (89,467) Administrative expenses - (469) 469 Net changes (11,444) 94,384 (105,828) Balance at June 30, 2024 1,870,463 $ 1,508,126 $ 362,337 $ Increase/(Decrease)
Sensitivity of the Net Pensio n 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 liab ility would be if it we re 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 2,042,870$ 1,870,463 $ 1,722,349 $ Fiduciary net position 1,508,126 1,508,126 1,508,126 Net pension liability 534,744$ 362,337 $ 214,223 $
The General fund is liable for PARS plan expenditures. Because the net PARS liability is not material in relation to the government-wide financial statements as a whole, the City has not reported this liability in the government-wide statement of net position.
E. Other postemployment benefits
The City provides postretirement health benefits to the various employee groups, which vary depending upon a retiree’s years of service and bargai ning unit. Defined-benefit postretirement health care coverage is available only to employees hired on or before June 20, 2010. Depending on the employee gr oup, those hired after June 20, 2010, receive a defined contribution amount of either $200 or $300 per month, which is deposited into a health retirement account ( HRA). There is a five-year employment vesting period before the HRA account can be held by the employee. As newer 132
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
96 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 benefit plan administrated by PFM Asset Management, L.L.C., partnering with US National Bank Association as trustee. SVOPEB provides medical and dental benefits to eligible employees and their spouses. The City Council serves as the board of trustees for the SVOPEB.
Non-sworn management (NSM), sworn (police) management (SM), and sworn (police) employees’ (SE) retiree health benefits ar e provided per resolution numbers 2017-35, 2018-03, and 2018-05, respectively. The benefits vary depending upon a retiree’s years of service and employee bargaining unit. The City currently contributes up to $1,500 per month for management employees for employee-only or employee-plus-one dependent.
The City currently pays 100% of premiums fo r health care coverage for employee, or employee-plus-one dependent, for a specifi ed period, for the sworn management and sworn units. Additionally, the Cit y provides funding for retiree health benefits to general unit employees (GU) under a defined contribut ion plan, per resolution number 2017-40.
The defined contribution is currently set by c ontract at 1.00% of salary for general unit members.
Sworn management employees with retirement dates effective July 1, 2005, to November 30, 2017, receive a defined contribution toward retiree dental and vision premiums equal to up to 0.5% of total compensation. Sworn management employees that retire on or after December 1, 2017, receive a contribution up to $175 per month toward the cost of retiree dental and vision premiums for retirees and eligible dependents. The City also contributes $110,000 per year to the tr ust 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:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
97 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 $885.28 for employee only or $1,770.57 for employee-plus-one dependent. Employees hired on or after July 1, 2010, are not eligible to receive retiree medical benefits.
1 additional year for each year over 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 $67.95 in calendar year 2023 and $78.50 in calendar year 2024. (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.
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, 2023, (the census date), the following employees were covered by the benefit terms:
Category NSM SM SE GU
Active employees 124 7 98 260 Inactive employees or beneficiaries currently receiving benefits 121 29 61 62 245 36 159 322
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
98 Detailed information about the OPEB trust fiduc iary net position is available in a separately issued financial report which may be obtained from the City.
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, contribut ions are not requi red from non-sworn management, 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, 2023, and was used to calculate the net OPEB liability measured as of June 30, 2023.
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 other factors. In the June 30, 2023, actuarial valuation, the entry-age normal method was used, using level percentage of salary to allocate OPEB costs over years of service. This met hod determines an attribution period as the difference between the date of hire and the expected date of retirement. Actuarial assumptions used for each of the City’s covered employee groups are presented in the table below. The unfunded actuarial assumed liability (UAAL) is amortized using a closed amortization period of thirty years. Since the June 30, 2023, actuarial valuation 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, 202 3, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
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 7.40% trending down to 4.14%
Rate of return on assets 6.00%
Mortality rate CalPERS rates
Retirement rates CalPERS rates
The City’s plan administrator determined the expected long-term expected rate of return by asset class as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
99 Asset Class Expected Return Allocation
Domestic equity 7.70% 28.00%
International equity 7.50% 28.00%
Fixed income 4.60% 42.00%
Cash 2.60% 2.00%
Total/Average 6.24% 100.00%
Discount rate – Each employee group has a discount rate ranging from 3.87% to 4.10%.
The discount rates for each employee group are blended between the investment rate of return of 6.00%, and the municipal bond rate of 3.86%, applied to the present value of future benefit payments. This 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 only apply the investment rate of return to the assets in the trust fund for as long as they cover benefit payments, and then apply the m unicipal bond rate after that time. The municipal bond rate is the assumed rate of return on gener al funds, and the assumption is that the City will use general funds to pay benefits once the trust fund is exhausted. The two rates are weighted by the present value of the funded and unfunded benefit payments to arrive at a single equivalent discount rate.
136
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
100
Change in the Net OPEB Liability:
Non-Sworn Management:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 25,756,249 $ 1,184,502 $ 24,571,747 $ Changes for the year:
Service cost 582,180 - 582,180 Interest 1,010,124 - 1,010,124 Differences between expected and actual experience 428,831 - 428,831 Changes of assumptions (10,289,269) - (10,289,269) Contributions
Employer - City's contribution - 783,975 (783,975) Employer - implicit subsidy - 355,913 (355,913) Net investment income - 88,422 (88,422) Benefit payments (783,975) (783,975) - Implicit subsidy credit (355,913) (355,913) - Administrative expenses - (690) 690 Other miscellaneous income/(expense) - (5,686) 5,686 Net changes (9,408,022) 82,046 (9,490,068) Balance at June 30, 2024 16,348,227 $ 1,266,548 $ 15,081,679 $ Increase/(Decrease)
Sworn Management:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 11,806,396 $ 90,971 $ 11,715,425$ Changes for the year:
Service cost 107,574 - 107,574 Interest 430,605 - 430,605 Differences between expected and actual experience 2,413,452 - 2,413,452 Changes of assumptions (1,743,949) - (1,743,949) Contributions
Employer - City's contribution - 420,744 (420,744) Employer - implicit subsidy - 131,257 (131,257) Net investment income - 6,723 (6,723) Benefit payments (420,744) (420,744) - Implicit subsidy credit (131,257) (131,257) - Administrative expenses - (406) 406 Other miscellaneous income/(expense) - (436) 436 Net changes 655,681 5,881 649,800 Balance at June 30, 2024 12,462,077 $ 96,852 $ 12,365,225$ Increase/(Decrease)
137
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
101
Sworn Employees:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 32,123,556 $ 759,192 $ 31,364,364$ Changes for the year:
Service cost 762,458 - 762,458 Interest 1,222,191 - 1,222,191 Differences between expected and actual experience 31,694 - 31,694 Changes of assumptions (817,696) - (817,696) Contributions
Employer - City's contribution - 990,367 (990,367) Employer - implicit subsidy - 286,109 (286,109) Net investment income - 56,660 (56,660) Benefit payments (990,367) (990,367) - Implicit subsidy credit (286,109) (286,109) - Administrative expenses - (583) 583 Other miscellaneous income/(expense) - (3,645) 3,645 Net changes (77,829) 52,432 (130,261) Balance at June 30, 2024 32,045,727 $ 811,624 $ 31,234,103$ Increase/(Decrease)
General Unit:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 17,234,577 $ 1,231,238 $ 16,003,339 $ Changes for the year:
Service cost 796,435 - 796,435 Interest 683,247 - 683,247 Differences between expected and actual experience (1,511,883) - (1,511,883) Changes of assumptions (4,897,710) - (4,897,710) Contributions
Employer - City's contribution - 278,579 (278,579) Employer - implicit subsidy - 290,090 (290,090) Net investment income - 92,011 (92,011) Benefit payments (278,579) (278,579) - Implicit subsidy credit (290,090) (290,090) - Administrative expenses - (702) 702 Other miscellaneous income/(expense) - (5,909) 5,909 Net changes (5,498,580) 85,400 (5,583,980) Balance at June 30, 2024 11,735,997 $ 1,316,638 $ 10,419,359 $ Increase/(Decrease)
Sensitivity of the net OPEB liability to changes in the discount rate – the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage lower or 1-percentage point higher for non- sworn management, sworn management, sworn employees, and general unit employees:
138
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
102
1% Decrease Current Discount Rate 1% Increase
Non-sworn management 16,653,546$ 15,081,679 $ 13,732,578$ Sworn management 14,022,265 12,365,225 11,013,135 Sworn employees 35,737,604 31,234,103 27,545,817 General unit 11,681,242 10,419,359 9,349,217
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 rate s that are 1-percent age point lower or 1- percentage point higher than current healthcare cost trend rates follows:
1% Decrease Current Trend Rate 1% Increase
Non-sworn management 14,265,260$ 15,081,679 $ 15,951,443$ Sworn management 10,974,663 12,365,225 14,051,730 Sworn employees 27,124,954 31,234,103 36,332,688 General unit 9,860,539 10,419,359 11,058,000
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $7,577,624. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
NSM SM SE GU
Differences between actual and expected experience 843,684$ -$ 3,131,708$ 434,799$ Changes of assumptions 3,687,462 - 9,827,061 6,134,226 Net difference between projected and actual earnings 51,682 3,952 33,127 53,682 Contributions subsequent to the measurement date 979,435 596,263 1,175,826 467,830 Total 5,562,263$ 600,215$ 14,167,722$ 7,090,537 $ Deferred Outflows of Resources
NSM SM SE GU
Differences between actual and expected experience (2,123)$ -$ (3,820,456)$ (4,333,305)$ Changes of assumptions (8,233,569) (5,431) (1,094,701) (4,571,465) Net difference between projected and actual earnings - - - - Total (8,235,692)$ (5,431)$ (4,915,157)$ (8,904,770)$ Deferred Inflows of Resources
$3,219,354 reported as deferre d outflows related to cont ributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2025. Other amounts report ed as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
139
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
103
Report Year
Ending June 30:
NSM SM SE GU
2025 (272,487)$ (5,184) $ 1,216,760$ 338,997 $ 2026 (378,792) 497 1,238,906 345,235 2027 (1,186,941) 3,467 1,520,683 (240,441) 2028 (1,814,644) (259) 1,757,912 (644,914) 2029 - - 1,633,858 (598,884) Thereafter - - 708,620 (1,482,056) 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 stat ements 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, 2024, to assess the need for potential recognition or disclosure in t he financial statements. Such events were evaluated through December 20, 2024, 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. Accounting changes and error corrections
Changes to or within the Financial Reporting Entity
The Development Related Fees fund meets the size crit eria to be classified and presented as a major fund in most, but not all, years, including the current fiscal year.
The City believes that it would be best to continue reporting the fund as a discretionary major fund to enhance consistency for the benefit of the financial stat ements users. In accordance with GASB Statement No. 100, the effect of that change to or within the financial reporting entity is shown in column A below.
Error Correction
During the fiscal year, the City determined that the cash and investments reported in the OPEB trust fund was understated by $225,759. The effect of correcting the error is shown in column B below.
140
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
104
June 30, 2023,
as previously reported
Change to or within
the financial
reporting entity (A) Error correction (B)
June 30, 2023,
as restated
Governmental funds
Major funds' fund balances
General 79,977,246 $ - $ -$ 79,977,246$ SHA to Community Development
Agency Housing Administration 5,133,983 - - 5,133,983 Development Fee Related - 13,292,123 - 13,292,123 Streets and Roads 15,125,290 - - 15,125,290 Total major funds' fund balances 100,236,519 13,292,123 - 113,528,642 Nonmajor funds' fund balances 43,824,603 (13,292,123) - 30,532,480 Total governmental funds 144,061,122 $ - $ -$ 144,061,122$ Fiduciary funds
Pension and OPEB trust funds
Pension trust fund 1,413,742 $ - $ -$ 1,413,742$ OPEB Trust Fund 3,265,903 - 225,759 3,491,662 Total Pension and OPEB trust funds 4,679,645$ - $ 225,759$ 4,905,404$
V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund
A. Reporting entity
On December 29, 2011, the California Suprem e 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 repor ting entity of the Cit y of Simi Valley that previously had reported a redevelopm ent agency within the reporting ent ity 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 ob ligations of the former redevelopment agency have been paid in full and all assets have been liquidated.
141
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
105
B. Cash and investments
Cash and investments reported in the a ccompanying financial statements for the Successor Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund consisted of the following:
C. Capital assets
Capital asset activity for the year ended June 30, 2024, was as follows:
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 future periods 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 resource s for the fiscal year ended June 30, 2024:
E. Long-term debt
The Community Development Agency (CDA), formerly a blended component unit of the City, issued tax allocation bonds on behalf of the City. Effective February 1, 2012, this debt was transferred from the CDA to the Successor Agency (p rivate purpose/fiduciary fund) as a result of dissolution.
Cash and investments pooled with the City 2,580,514$
Cash and investments with fiscal agent 2,188,101
Total cash and investments 4,768,615$
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 18,259$ (18,259) $ - $ 142
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
106
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2024, follows:
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 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, lo w- 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 longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total interest and principal remaining on the bonds is $14,389,375, payable through September 2030. For the current fiscal year, principal and interest paid was $2,062,750, and the Redevelopment Property Tax Trust Fund revenue received was $2,114,251.
Annual debt service requirements to maturity, including interest, for the outstanding debt are as follows:
Fiduciary fund long-term liability activity for the year ended June 30, 2024, was as follows:
Year Ending
June 30 Principal Interest Total
2025 1,490,000$ 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
2029 1,815,000 240,625 2,055,625
Thereafter 3,905,000 197,625 4,102,625 12,145,000$ 2,244,375 $ 14,389,375 $
Balances
June 30, 2023 Debt Incurred Debt Retired
Balances
June 30, 2024
Due Within
One Year
Fiduciary activities:
2003 tax allocation bonds 13,565,000$ - $ (1,420,000)$ 12,145,000 $ 1,490,000 $ Add (less) deferred amounts:
Bond premium 124,599 - (16,307) 108,292 16,306 Fidiuciary long-term liabilities 13,689,599$ - $ (1,436,307)$ 12,253,292 $ 1,506,306 $ 143
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2024
107
F. Fiduciary net deficit
As of June 30, 2024, the private-purpose trust, had a negative net position of $6,556,227.
Below is a summary of the net position.
G. Insurance
The Successor Agency is covered under the Cit y’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to cove rage and self-insured retentions can be found in note IV.B.
Fiduciary Net Deficit - Beginning Balance (8,172,472)$
Total additions for the year 2,254,600
Total deductions for the year ended (638,355)
Change in fiduciary net position 1,616,245
Fiduciary Net Deficit - Ending Balance (6,556,227)$
144
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
145
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
For the measurement periods ended June 30, 2023 2022 2021 2020 2019 TOTAL PENSION LIABILITY:
Service cost 4,773,495$ 4,710,755$ 4,452,761$ 4,550,099$ 4,813,212$ Interest on total pension liability 23,306,622 22,487,363 22,203,551 21,563,745 20,976,007 Changes of benefit terms 477,899 - - - -
Changes of assumptions - 8,773,997 - - -
Difference between expected and actual experience 3,405,539 (2,188,992) (473,007) (2,231,998) (302,371) Benefit payments, including refunds of employee contributions (19,821,138) (18,658,078) (17,353,295) (15,934,383) (14,476,731) Net change in total pension liability 12,142,417 15,125,045 8,830,010 7,947,463 11,010,117 Total pension liability - beginning 341,417,503 326,292,458 317,462,448 309,514,985 298,504,868 Total pension liability - ending (a) 353,559,920$ 341,417,503$ 326, 292,458$ 317, 462,448$ 309, 514,985$
PLAN FIDUCIARY NET POSITION
Contributions - employer 14,037,970$ 9,976,783$ 9,426,555$ 8,648,934$ 7,638,807$ Contributions - employee 1,923,893 1,942,280 1,904,773 1,911,018 1,985,804 Net investment income2 14,992,664 (20,225,029) 50, 582,412 10, 929,221 13, 913,484 Benefit payments, including refunds of employee contributions (19,821,138) (18,658,078) (17,353,295) (15,934,383) (14,476,731) Net plan-to-plan resource movement 1,535 - - - -
Administrative expense (177,395) (167,178) (223,794) (308,434) (149,770) Other miscellaneous income/(expense)1 - - - - 488
Net change in fiduciary net position 10,957,529 (27,131,222) 44,336,651 5,246,356 8,912,082 Plan fiduciary net positions - beginning2 241,237,594 268,368,816 224, 032,165 218, 785,809 209, 873,727 Plan fiduciary net positions - ending (b) 252,195,123$ 241,237,594$ 268, 368,816$ 224, 032,165$ 218, 785,809$ Plan net pension liability/(asset) - (a) - (b) 101,364,797$ 100,179,909$ 57, 923,642$ 93, 430,283$ 90, 729,176$ Plan fiduciary net position as a percentage of the total pension liability 71.33% 70.66% 82.25% 70.57% 70.69% Covered payroll3 27,214,910$ 26,735,273$ 27, 418,481$ 27, 983,387$ 28, 537,793$ Plan net pension liability/(asset) as a percentage of covered payroll 372.46% 374.71% 211.26% 333.88% 317.93% (Continued)
1 2
3 Includes any beginning of year adjustment.
Additionally, CalPERS employees participate in various State of California agent pension plans and, duringfiscal year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
City of Simi Valley
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
Last Ten Years
During Fiscal Year 2017-18, asa result of Governmental Accounting Standards Board StatementNo. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions(GASB Statement No. 75), CalPERS reported its proportionate share ofactivity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB Statement No. 75.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Changes of Assumptions: Therewere no assumption changesin 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount ratewas reduced from 7.15%to 6.90%. In determining the long-term expected rate of return,CalPERS took into account long-term market return expectations aswell as the expected pension fundcash flows. In addition, demographic assumptions and the inflation rate assumptionwere changed in accordance with the 2021CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount ratewas 7.15% for measurement dates 2017 through 2021,
7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Includes one year’s payroll growth using 2.80% payroll growth assumption forfiscal year ended June 30, 2022-23; 2.75% payroll growth assumption forfiscal years ended June 30, 2018-21; 3.00% payroll assumption for fiscal years ended June 30, 2014-17.
Changes of BenefitTerms: The figures above generally include anyliability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers oftwo years additionalservice credit (a.k.a. "golden handshakes") that occurred after the valuation date are not includedin the figures above, unless the liability impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retireelump sum death benefit from $500to $2,000 for any death occurring on or afterJuly 1, 2023. The impact,if any, is included in the changes of benefit terms.
See independent auditor's report.
108
147
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY:
4,910,925$ 4,696,120$ 4,496,300$ 4,219,980$ 4,456,595$ Service cost 20,191,587 19,479,794 18,974,672 17,854,875 17,085,147 Interest on total pension liability - - - - - Changes of benefit terms (1,963,446) 15,251,995 - (4,159,555) - Changes of assumptions 163,365 (2,848,866) 3,101,741 (1,925,185) - Difference between expected and actual experience (13,083,973) (11,972,233) (11,156,289) (10,197,516) (9,289,664) Benefit payments, including refunds of employee contributions 10,218,458 24,606,810 15,416,424 5,792,599 12,252,078 Net change in total pension liability 288,286,410 263,679,600 248,263,176 242,470,577 230,218,499 Total pension liability - beginning 298,504,868$ 288,286,410$ 263,679,600$ 24 8,263,176$ 24 2,470,577$ To tal pension liability - ending (a)
PLAN FIDUCIARY NET POSITION
6,722,128$ 6,090,808$ 5,483,791$ 4,865,538$ 4,450,276$ Contributions - employer 2,010,460 1,991,500 2,058,371 2,022,358 2,146,980 Contributions - employee 16,753,819 20,322,245 1,027,330 4,079,193 27,589,396 Net investment income2 (13,083,973) (11,972,233) (11,156,289) (10,197,516) (9,289,664) Benefit payments, including refunds of employee contributions (488) - - (50) - Net plan-to-plan resource movement (309,112) (269,013) (112,689) (208,581) - Administrative expense (587,009) - - - - Other miscellaneous income/(expense)1 11,505,825 16,163,307 (2,699,486) 560,942 24,896,988 Net change in fiduciary net position 198,367,902 182,204,595 184,904,081 184,343,139 159,446,151 Plan fiduciary net positions - beginning2 209,873,727$ 198,367,902$ 182,204,595$ 18 4,904,081$ 18 4,343,139$ Pl an fiduciary net positions - ending (b) 88,631,141$ 89,918,508$ 81,475,005$ 63 ,359,095$ 58 ,127,438$ Pl an net pension liability/(asset) - (a) - (b)
70.31% 68.81% 69.10% 74.48% 76.03% Plan fiduciary net position as a percentage of the total pension liability 30,206,209$ 28,645,361$ 30,370,147$ 28,365,800$ 28,976,557$ Covered payroll3 293.42% 313.90% 268.27% 223.36% 200.60% Plan net pension liability/(asset) as a percentage of covered payroll (Concluded)
City of Simi Valley
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
Last Ten Years
See independent auditor's report.
109
148
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
For the fiscal years ended June 30,1
2024 2023 2022 2021 2020
Actuarially determined contribution2 10,844,552$ 10,816,729$ 9, 976,783$ 9, 426,555$ 8, 648,934$ Contributions in relation to the actuarially determined contribution2 (12,645,673) (14,037,970) (9 ,976,783) (9 ,426,555) (8 ,648,934) Contribution deficiency/(excess) (1,801,121)$ (3,221,241)$ -$ -$ -$ Covered payroll3 28,253,409$ 27,214,910$ 26, 735,273$ 27, 418,481$ 27, 983,387$ Contributions as a percentage of covered payroll3 44.76% 51.58% 37.32% 34.38% 30.91% (Continued)
1 2
3 Notes to Schedule of Pension Plan Contributions:
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return
Retirement Age
Mortality
Entry Age Actuarial Cost Method
For details, see June 30, 2020 Funding Valuation Report.
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2022-23 were derived from the June 30, 2020 funding valuation report.
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and post-retirement mortality rates include 15 years of projectedmortality improvement using 90.00% of Scale MP-2016 published by the Society of Actuaries.
Fair Value of Assets. For details, see June 30, 2020, Funding Valuation Report.
2.50%
Varies by Entry Age and Service
2.75%
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
City of Simi Valley
Schedule of Pension Plan Contributions
Miscellaneous Plan
Last Ten Years
As prescribed in GASB StatementNo. 68, paragraph 46,the information presented in the Scheduleof PlanContributions should also be presented as ofthe employer’s most recent fiscal year-end. The employer is responsible for determiningthis information as prescribed bythe standard asthis data is not available to CalPERS. This may result in variances between prior year and current year reporting as actuals become available from CalPERS.
Employers are assumed to make contributionsequal to the actuarially determined contributions. However, someemployers may chooseto make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
Includes oneyear’s payroll growth using 2.80% payrollgrowth assumptionfor fiscal year endedJune 30, 2022-23; 2.75% payrollgrowth assumptionfor fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2015-17.
See independent auditor's report.
110
149
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
2019 2018 2017 2016 2015
7,602,813$ 6,682,072$ 6,228,044$ 5,483,791$ 4,865,538$ Actuarially determined contribution2 (7,602,813) (6,682,072) (6,228,044) (5,483,791) (4,865,538) Contributions in relation to the actuarially determined contribution2 -$ -$ -$ -$ -$ Contribution deficiency/(excess) 28,537,793$ 30,206,209$ 28,645,361$ 30,370,147$ 28,365,800$ Covered payroll3
26.64% 22.12% 21.74% 18.06% 17.15% Contributions as a percentage of covered payroll3 (Concluded)
City of Simi Valley
Schedule of Pension Plan Contributions
Miscellaneous Plan
Last Ten Years
See independent auditor's report.
111
150
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
For the measurement periods ended June 30, 2023 2022 2021 2020 2019 TOTAL PENSION LIABILITY:
Service cost 3,881,615$ 3,983,961$ 3,799,517$ 3,652,512$ 3,770,076$ Interest on total pension liability 14,865,937 14,240,231 14,034,283 13,570,955 13,042,846 Changes of benefit terms 101,086 - - - - Changes of assumptions - 5,399,745 - - - Difference between expected and actual experience 1,671,077 (3,081,312) (1,268,164) (252,858) 974,638 Benefit payments, including refunds of employee contributions (11,139,711) (10,614,261) (9,681,675) (9,415,716) (8,814,575) Net change in total pension liability 9,380,004 9,928,364 6,883,961 7,554,893 8,972,985 Total pension liability - beginning 217,305,242 207,376,878 200,492,917 192,938,024 183,965,039 Total pension liability - ending (a) 226,685,246$ 217,305,242$ 20 7,376,878$ 20 0,492,917$ 19 2,938,024$
PLAN FIDUCIARY NET POSITION
Contributions - employer 7,422,771$ 7,101,836$ 6,812,946$ 6,159,600$ 5,442,227$ Contributions - employee 1,318,777 1,309,971 1,325,192 1,573,091 1,255,565 Net investment income2 9,420,844 (12,659,177) 31 ,233,327 6, 595,085 8, 313,422 Benefit payments, including refunds of employee contributions (11,139,711) (10,614,261) (9,681,675) (9,415,716) (8,814,575) Net plan-to-plan resource movement (1,535) - - - - Administrative expense (111,593) (103,856) (137,021) (186,710) (90,155) Other miscellaneous income/(expense)1 - - - - 29 4 Net change in fiduciary net position 6,909,553 (14,965,487) 29,552,769 4,725,350 6,106,778 Plan fiduciary net positions - beginning2 151,754,243 166,719,730 13 7,166,961 13 2,441,611 12 6,334,833 Plan fiduciary net positions - ending (b) 158,663,796$ 151,754,243$ 16 6,719,730$ 13 7,166,961$ 13 2,441,611$ Plan net pension liability/(asset) - (a) - (b) 68,021,450$ 65,550,999$ 40 ,657,148$ 63 ,325,956$ 60 ,496,413$ Plan fiduciary net position as a percentage of the total pension liability 69.99% 69.83% 80.39% 68.41% 68.64% Covered payroll3 12,726,608$ 12,918,162$ 13 ,341,001$ 12 ,744,285$ 13 ,121,065$ Plan net pension liability/(asset) as a percentage of covered payroll 534.48% 507.43% 304.75% 496.90% 461.06% (Continued)
1 2
3 City of Simi Valley
Schedule of Changes in Net Pension Liability and Related Ratios Safety Plan
Last Ten Years
During Fiscal Year 2017-18, asa result of Governmental Accounting Standards Board StatementNo. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions(GASB Statement No. 75), CalPERS reported its proportionate share ofactivity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB Statement No. 75.
Additionally, CalPERS employees participate in various State of California agent pension plans and, duringfiscal year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
Includes any beginning of year adjustment.
Changes of Assumptions: Therewere no assumption changesin 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount ratewas reduced from 7.15%to 6.90%. In determining the long-term expected rate of return,CalPERS took into account long-term market return expectations aswell as the expected pension fundcash flows. In addition, demographic assumptions and the inflation rate assumptionwere changed in accordance with the 2021CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount ratewas 7.15% for measurement dates 2017 through 2021,
7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Includes one year’s payroll growth using 2.80% payroll growth assumption forfiscal year ended June 30, 2022-23; 2.75% payroll growth assumption forfiscal years ended June 30, 2018-21; 3.00% payroll assumption for fiscal years ended June 30, 2014-17.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Changes of BenefitTerms: The figures above generally include anyliability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers oftwo years additionalservice credit (a.k.a. "golden handshakes") that occurred after the valuation date are not includedin the figures above, unless the liability impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retireelump sum death benefit from $500to $2,000 for any death occurring on or afterJuly 1, 2023. The impact,if any, is included in the changes of benefit terms.
See independent auditor's report.
112
151
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY:
3,852,227$ 3,877,677$ 3,487,187$ 3,224,243$ 3,396,111$ Service cost 12,408,410 11,900,164 11,477,866 10,911,459 10,489,579 Interest on total pension liability - - - - - Changes of benefit terms (72,863) 10,030,117 - (2,691,829) - Changes of assumptions (891,044) (1,477,890) (19,908) (1,874,182) - Difference between expected and actual experience (7,827,368) (7,558,374) (7,069,897) (6,616,558) (6,306,201) Benefit payments, including refunds of employee contributions 7,469,362 16,771,694 7,875,248 2,953,133 7,579,489 Net change in total pension liability 176,495,677 159,723,983 151,848,735 148,895,602 141,316,113 Total pension liability - beginning 183,965,039$ 176,495,677$ 159,723,983$ 15 1,848,735$ 14 8,895,602$ To tal pension liability - ending (a)
PLAN FIDUCIARY NET POSITION
5,016,294$ 4,740,604$ 4,377,786$ 3,953,058$ 3,604,044$ Contributions - employer 1,288,167 1,214,011 1,218,073 1,170,676 1,080,530 Contributions - employee 10,040,177 11,967,708 591,543 2,402,091 16,230,427 Net investment income2 (7,827,368) (7,558,374) (7,069,897) (6,616,558) (6,306,201) Benefit payments, including refunds of employee contributions (294) - - - - Net plan-to-plan resource movement (184,426) (159,674) (66,489) (122,781) - Administrative expense (350,228) - - - - Other miscellaneous income/(expense)1 7,982,322 10,204,275 (948,984) 786,486 14,608,800 Net change in fiduciary net position 118,352,511 108,148,236 109,097,220 108,310,734 93,701,934 Plan fiduciary net positions - beginning2 126,334,833$ 118,352,511$ 108,148,236$ 10 9,097,220$ 10 8,310,734$ Pl an fiduciary net positions - ending (b) 57,630,206$ 58,143,166$ 51,575,747$ 42 ,751,515$ 40 ,584,868$ Pl an net pension liability/(asset) - (a) - (b)
68.67% 67.06% 67.71% 71.85% 72.74% Plan fiduciary net position as a percentage of the total pension liability 13,397,653$ 13,342,316$ 13,396,286$ 12,340,656$ 12,471,030$ Covered payroll3 430.15% 435.78% 385.00% 346.43% 325.43% Plan net pension liability/(asset) as a percentage of covered payroll (Concluded)
City of Simi Valley
Schedule of Changes in Net Pension Liability and Related Ratios Safety Plan
Last Ten Years
See independent auditor's report.
113
152
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
For the fiscal years ended June 30,1
2024 2023 2022 2021 2020
Actuarially determined contribution2 7,471,801$ 7,422,771$ 7,101,836$ 6,812, 946$ 6,159, 600$ Contributions in relation to the actuarially determined contribution2 (9,282,721) (7,422,771) (7,101,836) (6, 812,946) (6, 159,600) Contribution deficiency/(excess) (1,810,920)$ -$ -$ -$ -$ Covered payroll3 13,651,706$ 12,726,608$ 12,918,162$ 13,341, 001$ 12,744, 285$ Contributions as a percentage of covered payroll3 68.00% 58.32% 54.98% 51.07% 48.33% (Continued)
1 2
3 Notes to Schedule of Pension Plan Contributions:
Actuarial Cost Method
Amortization Method/Period
Asset Valuation Method
Inflation
Salary Increases
Payroll Growth
Investment Rate of Return
Retirement Age
Mortality
City of Simi Valley
Schedule of Pension Plan Contributions
Safety Plan
Last Ten Years
As prescribed in GASB StatementNo. 68, paragraph 46,the information presented in the Scheduleof PlanContributions should also be presented as ofthe employer’s most recent fiscal year-end. The employer is responsible for determiningthis information as prescribed bythe standard asthis data is not available to CalPERS. This may result in variances between prior year and current year reporting as actuals become available from CalPERS.
Employers are assumed to make contributionsequal to the actuarially determined contributions. However, someemployers may chooseto make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
Includes oneyear’s payroll growth using 2.80% payrollgrowth assumptionfor fiscal year endedJune 30, 2022-23; 2.75% payrollgrowth assumptionfor fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2015-17.
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and post-retirement mortality rates include 15 years of projectedmortality improvement using 90.00% of Scale MP-2016 published by the Society of Actuaries.
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2022-23 were derived from the June 30, 2020 funding valuation report.
Entry Age Actuarial Cost Method
For details, see June 30, 2020 Funding Valuation Report.
Fair Value of Assets. For details, see June 30, 2020, Funding Valuation Report.
2.50%
Varies by Entry Age and Service
2.75%
7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
See independent auditor's report.
114
153
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
2019 2018 2017 2016 2015
5,442,227$ 5,016,294$ 4,740,604$ 4,377,786$ 3,953,058$ Actuarially determined contribution2 (5,442,227) (5,016,294) (4,740,604) (4,377,786) (3,953,058) Contributions in relation to the actuarially determined contribution2 -$ -$ -$ -$ -$ Contribution deficiency/(excess) 13,121,065$ 13,397,653$ 13,342,316$ 13,396,286$ 12,340,656$ Covered payroll3
41.48% 37.44% 35.53% 32.68% 32.03% Contributions as a percentage of covered payroll3 (Concluded)
City of Simi Valley
Schedule of Pension Plan Contributions
Safety Plan
Last Ten Years
See independent auditor's report.
115
154
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
For the measurement periods ended June 30, 2023 2022 2021 2020 2019 TOTAL OPEB LIABILITY:
Service cost 2,248,646$ 1,365,865$ 1,418,798$ 1,482,507$ 306,921$ Interest 3,346,167 3,941,940 3,102,748 2,901,086 2,604,188 Differences between expected and actual experience 1,362,094 201,946 5,021,212 838,437 (12,977,830) Changes of assumptions (17,748,624) 18,776,057 7,745,034 (2,007,874) 21,577,376 Benefit payments (2,473,665) (2,510,785) (2,179,284) (2,156,006) (2,049,633) Implicit Subsidy (1,063,369) (885,588) (920,947) (861,254) - Net change in total OPEB liability (14,328,751) 20,889,435 14,187,561 196,896 9,461,022 Total OPEB liability-beginning 86,920,778 66,031,343 51,843,782 51,646,886 42,185,864 Total OPEB liability-ending (a) 72,592,027$ 86,920,778$ 66,031,343$ 51,843,782$ 51,646,886$
PLAN FIDUCIARY NET POSITION
Net investment income 243,816$ (452,214)$ 712,591$ 207,546$ 176,710$ Contributions - employer 2,473,665 2,510,785 2,179,284 2,156,006 2,049,633 Contributions - employee 1,063,369 885,588 920,947 861,254 - Benefit payments (2,473,665) (2,510,785) (2,179,284) (2,156,006) (2,049,633) Implicit subsidy credit (1,063,369) (885,588) (920,947) (861, 254) - Administrative expense (2,381) (18,424) (16,530) (9,883) (18,407) Other miscellaneous income/(expense) (15,676) - - - (1,299,998) Net change in plan fiduciary net position 225,759 (470,638) 696,061 197,663 (1,141,695) Plan fiduciary net position-beginning 3,265,902 3,736,540 3,040,479 2,842,816 3,984,511 Plan fiduciary net position-ending (b) 3,491,661$ 3,265,902$ 3,736,540$ 3,040,479$ 2,842,816$ Plan net OPEB liability ending (a)-(b) 69,100,366$ 83,654,876$ 48,803,302$ 48,804,069$ 38,201,353$ Plan fiduciary net position as a percentage of the total OPEB liability 4.8% 3.8% 5.7% 5.9% 5.5% Covered-employee payroll 42,790,360$ 37,918,104$ 35,999,859$ 35,512,106$ 33,714,502$ Plan net OPEB liability as a percentage of the covered employee payroll 161.49% 220.62% 135.57% 137.43% 113.31% (Continued)
* The City adopted GASB Statement No. 75 for the fiscal year 2017-18, therefore, only seven years are shown.
City of Simi Valley
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years*
See independent auditor's report.
116
155
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
2018 2017
TOTAL OPEB LIABILITY:
317,106$ 308,619$ Service cost
2,375,465 2,429,570 Interest
- - Differences between expected and actual experience (1,069,576) - Changes of assumptions (1,700,528) (1,635,120) Benefit payments
- - Implicit Subsidy (77,533) 1,103,069 Net change in total OPEB liability 42,263,397 41,160,328 Total OPEB liability-beginning 42,185,864$ 42,263,397$ Total OPEB liability-ending (a)
PLAN FIDUCIARY NET POSITION
253,539$ 328,517$ Net investment income 1,700,528 1,635,120 Contributions - employer - - Contributions - employee (1,700,528) (1,635,120) Benefit payments
- - Implicit subsidy credit (19,535) (19,748) Administrative expense - - Other miscellaneous income/(expense) 234,004 308,769 Net change in plan fiduciary net position 3,750,507 3,441,738 Plan fiduciary net position-beginning 3,984,511$ 3,750,507$ Plan fiduciary net position-ending (b) 38,512,890$ 38,512,890$ Plan net OPEB liability ending (a)-(b)
9.4% 8.9% Plan fiduciary net position as a percentage of the total OPEB liability 35,383,956$ 37,757,737$ Covered-employee payroll 108.84% 102.00% Plan net OPEB liability as a percentage of the covered employee payroll (Concluded)
City of Simi Valley
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years*
See independent auditor's report.
117
156
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
2024 2023 2022 2021 2020
3,537,034$ 3,396,373$ 3,213,071$ 5,495,152$ 2,049,633$ (3,219,354) (3,537,034) (3,100,231) (3, 017,260) (2, 049,633) 317,680$ (140,661)$ 112,840$ 2,477,892$ -$ 45,035,550$ 42,790,360$ 37,918,104$ 35,999,859$ 35,512,106$
7.15% 8.27% 8.18% 8.38% 5.77%
(Continued)
Notes to Schedule of OPEB Plan Contributions:
Assumptions and Methods
Actuarial Cost Method Entry-age normal, level percent of pay Amortization Method Closed Period, level percent of pay Amortization Period 20 years
Inflation 2.30%
Assumed Payroll Growth 2.80%
Healthcare Trend Rates 7.40%, trending down to 4.14%
Rate of Return on Assets 6.00%
Mortality Rate CalPERS Rates
Retirement Rates CalPERS Rates
* The City adopted GASB Statement No. 75 for the fiscal year 2017-18, therefore, only seven years are shown.
City of Simi Valley
Schedule of OPEB Plan Contributions
For the fiscal years ended June 30,
Actuarially determined contribution
Last Ten Years*
Contributions in relation to the actuarially determined contribution Contribution deficiency/(excess)
Covered payroll
Contributions as a percentage of covered payroll
See independent auditor's report.
118
157
CITY OF SIMI VALLEY ● REQUIRED SUPPLEMENTARY INFORMATION FISCAL YEAR ENDED JUNE 30, 2024
2019 2018
1,659,034$ 1,635,120$
(1,659,034) (1,635,120)
-$ -$
33,714,502$ 35,383,956$
4.92% 4.62%
(Concluded)
City of Simi Valley
Schedule of OPEB Plan Contributions
Actuarially determined contribution
Contributions in relation to the actuarially determined contribution Contribution deficiency/(excess)
Last Ten Years*
Covered payroll
Contributions as a percentage of covered payroll
See independent auditor's report.
119
158
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY
INFORMATION
160
FISCAL YEAR ENDED
JUNE 30, 2024
NON-MAJOR
GOVERNMENTAL FUNDS
161
NONMAJOR GOVERNMENTAL FUNDS
Spe
cial Revenue Funds
CalH
ome Grant fund accounts for the allocation of State funds to support low -income housing programs.
HOM
E Grant fund accounts for allocation of Federal funds, administered by the State of California, for low- and moderate-income housing programs.
Pl
anning Grants funds account for State funds to help prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production.
Publ
ic, Education, and Government Fees fund accounts for one- percent franchise fees remitted by cable television providers restricted by federal and state legislation for program related expenditures.
Gas
oline Tax fund accounts for p ortions 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 restricted to expenditures for street -related purposes.
Road
Maintenance and Rehabilitation Account funds are apportioned to the City by formula pursuant to Streets and Highways Code section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
Tr
ansportation funds account for Article 3, Article 8, and Proposition 1B funds received pursuant to State of California, Transportation Development Act and Port Security Bond Act of 2006. These funds are restricted for the improvement and maintenance of street systems, and State allocations for street, mass transit, and safety and security improvements.
Libr
ary 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.
Opi
oid Settlements funds account for the City’s share of various lawsuit settlements against the manufacturers of certain prescription opioid medications.
Po
lice Grants funds account for funding received from various governmental entities for police activities. Current programs and funding sources include:
• Rei
mbursement for City’s participation in joint agency drug enforcement efforts from the U.S. Department of Justice, Drug Enforcement Administration, and the State of California,
120
163
• State funding for front -line municipal police services, including anti -gang and community crime prevention programs, and
• Local Law Enforcement Block Grant funding from the Bureau of Justice Assistance, U.S. Department of Justice for purchasing police equipment or expanding existing capabilities.
Community Development Block Grant (CDBG) fund accounts for the receipt and expenditure of CDBG funds allocated to the City by the U.S. Department of Housing and Urban Development.
Landscape Maintenance District No. 1 fund accounts for benefit assessments, primarily perimeter landscaping in the public rights -of-way. The general fund finances landscape maintenance costs not associated with specific neighborhoods.
Debt Service Funds
2014A Lease Revenue Refunding Bonds fund was established to account for the debt service transactions related to the sale of variable rate lease revenue bonds issued for the purpose of fully refunding the 2004 Certificates of Participation (“2004 Certificates”).
2016 Clean Renewable Energy Bonds Lease Revenue Bonds ( 2016 CREBS LRB) fund accounts for the resources accumulated and payments made for the principal and interest on long-term debt obtained to finance the solar capital projects.
2017 Lease Agreement fund accounts for the resources accumulated and payments made for the principal and interest on long-term debt obtained to finance the replacement of the City telephone system, energy efficient upgrades at City facilities such as LED lighting, and HVAC system replacement and improvements.
2018 Lease Agreement fund accounts for the resources accumulated and payments made for the principal and interest on long- term debt obtained to provide financing for a purchase and sale agreement and pole license agreement with Southern California Edison (SCE) for the acquisition of streetlights located in Simi Valley.
Capital Project Funds
Equipment Replacement funds account for the replacement of personal computers, terminals, and printers; and establish a reserve for the replacement of vehicles.
Geographic Information System (GIS) fund accounts for geographic based information related to economic development, land use, demographic information, mapping for crime analysis, traffic safety management, permit issuance, and work order administration.
Public Facility Improvements fund provides for the building needs of various City facilities, including the expansion of City Hall and the Senior Citizens’ Center.
121
164
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 related 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 the City’s daily and emergency communications system.
122
165
Public Road
Education & Maintenance &
CalHome HOME Planning Government Gasoline Rehabilitation Grant Grant Grants Fees Tax Account
ASSETS
Cash and investments:
Held by City 562,070$ 1,532,110$ 280,042$ 3,107,438$ -$ 3,426,167$ Accounts receivable (net of allowance for
uncollectibles) - - - - 298,668 567,356 Taxes receivable - - - 7,953 - - Grants receivable - - 41,907 - - - Interest receivable - - 2,770 28,467 - 37,110 Due from other funds 4,275 20,745 - - - - Loans receivable (net of allowance for
uncollectibles) 899,902 2,221,814 - - - - Total assets 1,466,247$ 3,774,669$ 324,719$ 3,143,858$ 298,668$ 4,030,633$
LIABILITIES
Accounts payable -$ -$ 15,195$ -$ -$ -$ Salaries and benefits payable - - - - - - Due to other funds - 117,407 26,712 - - - Advances from other funds - - - - - - Deposits and deferred revenue - - - - - - Total liabilities - 117,407 41,907 - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 899,902 2,221,814 - - - - Total deferred inflows of resources 899,902 2,221,814 - - - -
FUND BALANCES/(DEFICITS)
Restricted
Housing programs 566,345 1,435,448 282,812 - - - Public improvements - - - - - - Streets and transportation - - - - 298,668 4,030,633 Special programs - - - 3,143,858 - - Law enforcement - - - - - - Committed
Equipment - - - - - - Unassigned - - - - - - Total fund balances/(deficits) 566,345 1,435,448 282,812 3,143,858 298,668 4,030,633 Total liabilities, deferred inflows of
resources, and fund balances/(deficits) 1,466,247$ 3,774,669$ 324,719$ 3,143,858$ 298,668$ 4,030,633$ (Continued)
Funds
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue
123
166
Landscape Total
Community Maintenance Nonmajor
Library Opioid Police Development District Special
Transportation Services Settlements Grants Block Grant No. 1 Revenue Funds ASSETS
Cash and investments:
11,578,786$ 2,927,416$ 205,231$ 2,039,002$ -$ -$ 25,658,262$ Held by City Accounts receivable (net of allowance for
- 9,508 - 152,632 - - 1,028,164 uncollectibles) - - - - - - 7,953 Taxes receivable - 19,895 - 12,126 359,795 - 433,723 Grants receivable 129,971 20,742 1,032 15,153 - - 235,245 Interest receivable - - - - 87 - 25,107 Due from other funds Loans receivable (net of allowance for
- - - - 281,503 - 3,403,219 uncollectibles) 11,708,757$ 2,977,561$ 206,263$ 2,218,913$ 641,385$ -$ 30,791,673$ Total assets
LIABILITIES
100,000$ 189,376$ -$ 11,967$ 14,209$ 94,454$ 425,201$ Accounts payable - 8,621 - - - - 8,621 Salaries and benefits payable - - - 124,231 483,402 498,390 1,250,142 Due to other funds - - - - - - - Advances from other funds - - 206,263 - - - 206,263 Deposits and deferred revenue 100,000 197,997 206,263 136,198 497,611 592,844 1,890,227 Total liabilities
DEFERRED INFLOWS OF RESOURCES
- 9,508 - 154,715 281,503 - 3,567,442 Unavailable revenue - 9,508 - 154,715 281,503 - 3,567,442 Total deferred inflows of resources
FUND BALANCES/(DEFICITS)
Restricted
- - - - - - 2,284,605 Housing programs - - - - - - - Public improvements 11,608,757 - - - - - 15,938,058 Streets and transportation - 2,770,056 - - - - 5,913,914 Special programs - - - 1,928,000 - - 1,928,000 Law enforcement Committed
- - - - - - - Equipment - - - - (137,729) (592,844) (730,573) Unassigned 11,608,757 2,770,056 - 1,928,000 (137,729) (592,844) 25,334,004 Total fund balances/(deficits) Total liabilities, deferred inflows of
11,708,757$ 2,977,561$ 206,263$ 2,218,913$ 641,385$ -$ 30,791,673$ resources, and fund balances/(deficits) (Continued)
Funds
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
Special Revenue
124
167
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 -$ -$ -$ -$ -$ 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 -$ -$ -$ -$ -$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ Salaries and benefits payable - - - - - Due to other funds - - - - - Advances from other funds - - - - - Deposits and deferred revenue - - - - - Total liabilities - - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - - Total deferred inflows of resources - - - - -
FUND BALANCES/(DEFICITS)
Restricted
Housing programs - - - - - Public improvements - - - - - Streets and transportation - - - - - Special programs - - - - - Law enforcement - - - - - Committed
Equipment - - - - - Unassigned - - - - - Total fund balances/(deficits) - - - - - Total liabilities, deferred inflows of
resources, and fund balances/(deficits) -$ -$ -$ -$ -$ (Continued)
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
Debt Service
125
168
Geographic Financial
Equipment Information Public Facility Information Police Capital Replacement System (GIS) Improvements System (FIS) Projects ASSETS
Cash and investments:
3,695,740$ 22,113$ 5,819,938$ 2,108,057$ 489,574$ Held by City Accounts receivable (net of allowance for
- - - - 6,250 uncollectibles) - - - - - Taxes receivable - - - - - Grants receivable 11,713 207 - 19,902 - Interest receivable - - - - - Due from other funds Loans receivable (net of allowance for
- - - - - uncollectibles) 3,707,453$ 22,320$ 5,819,938$ 2,127,959$ 495,824$ Total assets
LIABILITIES
476,716$ -$ 1,500$ 4,406$ -$ Accounts payable - - - - - Salaries and benefits payable - - - - - Due to other funds - - 3,348,380 - - Advances from other funds - - - - - Deposits and deferred revenue 476,716 - 3,349,880 4,406 - Total liabilities
DEFERRED INFLOWS OF RESOURCES
- - - - - Unavailable revenue - - - - - Total deferred inflows of resources
FUND BALANCES/(DEFICITS)
Restricted
- - - - - Housing programs - - - - - Public improvements - - - - - Streets and transportation - - - - - Special programs - - - - 495,824 Law enforcement Committed
3,230,737 22,320 2,470,058 2,123,553 - Equipment - - - - - Unassigned 3,230,737 22,320 2,470,058 2,123,553 495,824 Total fund balances/(deficits) Total liabilities, deferred inflows of
3,707,453$ 22,320$ 5,819,938$ 2,127,959$ 495,824$ resources, and fund balances/(deficits) (Continued)
Capital Projects
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
126
169
Total
Nonmajor Total
Telephone Solar Capital LED Streetlight Radio Capital Nonmajor System Projects Project Project Projects Funds
ASSETS
Cash and investments:
Held by City 133,003$ 56,305$ 387,115$ 3,515,015$ 16,226,860$ 41,885,122$ Accounts receivable (net of allowance for
uncollectibles) - - - - 6,250 1,034,414 Taxes receivable - - - - - 7,953 Grants receivable - - - - - 433,723 Interest receivable - - - - 31,822 267,067 Due from other funds - - - - - 25,107 Loans receivable (net of allowance for
uncollectibles) - - - - - 3,403,219 Total assets 133,003$ 56,305$ 387,115$ 3,515,015$ 16,264,932$ 47,056,605$
LIABILITIES
Accounts payable -$ -$ -$ -$ 482,622$ 907,823$ Salaries and benefits payable - - - - - 8,621 Due to other funds - - - - - 1,250,142 Advances from other funds - - - - 3,348,380 3,348,380 Deposits and deferred revenue - - - - - 206,263 Total liabilities - - - - 3,831,002 5,721,229
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - - 3,567,442 Total deferred inflows of resources - - - - - 3,567,442
FUND BALANCES/(DEFICITS)
Restricted
Housing programs - - - - - 2,284,605 Public improvements - 56,305 387,115 3,515,015 3,958,435 3,958,435 Streets and transportation - - - - - 15,938,058 Special programs - - - - - 5,913,914 Law enforcement - - - - 495,824 2,423,824 Committed
Equipment 133,003 - - - 7,979,671 7,979,671 Unassigned - - - - - (730,573) Total fund balances/(deficits) 133,003 56,305 387,115 3,515,015 12,433,930 37,767,934 Total liabilities, deferred inflows of
resources, and fund balances/(deficits) 133,003$ 56,305$ 387,115$ 3,515,015$ 16,264,932$ 47,056,605$ (Concluded)
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
Capital Projects
127
170
Public Road
Education & Maintenance &
CalHome HOME Planning Government Gasoline Rehabilitation Grant Grant Grants Fees Tax Account
REVENUES
Taxes -$ -$ -$ 200,059$ -$ -$
Fines and forfeitures - - - - - -
Use of money and property 55,192 150,239 6,972 87,773 - 89,058 From other governments - - - - 3,451,623 3,255,459
Grants - - 444,175 - - -
Service charges - - - - - -
Other revenues - - - - - -
Total revenues 55,192 150,239 451,147 287,832 3,451,623 3,344,517
EXPENDITURES
Current:
General government - - - - - -
Community services - - - - - -
Planning - - 150,738 59,708 - -
Public ways and facilities - - - - - -
Public safety - - - - - -
Total current expenditures - - 150,738 59,708 - -
Capital outlay - - - - - -
Debt Service:
Principal - - - - - -
Interest - - - - - -
Other - - - - - -
Total debt service - - - - - -
Total expenditures - - 150,738 59,708 - -
EXCESS/(DEFICIENCY) OF REVENUES
OVER/
(UNDER) EXPENDITURES 55,192 150,239 300,409 228,124 3,451,623 3,344,517
OTHER FINANCING SOURCES/(USES)
Transfers in - - - - - -
Transfers out - - - - (3,457,198) (1,827,558)
Proceeds from sale of property - - - - - -
Long-term debt issuance - SBITA - - - - - -
Total other financing sources/(uses) - - - - (3,457,198) (1,827,558) NET CHANGE IN FUND BALANCES 55,192 150,239 300,409 228,124 (5,575) 1,516,959 FUND BALANCES - BEGINNING 511,153 1,285,209 (17,597) 2,915,734 304,243 2,513,674 FUND BALANCES - ENDING 566,345$ 1,435,448$ 282,812$ 3,143,858$ 298,668$ 4,030,633$ (Continued)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Special Revenue
Funds
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
128
172
Landscape Total
Community Maintenance Nonmajor
Library Opioid Police Development District Special
Transportation Services Settlements Grants Block Grant No. 1 Revenue Funds
REVENUES
-$ 2,805,110$ -$ -$ -$ -$ 3,005,169$ Taxes
- 4,164 - - - - 4,164 Fines and forfeitures 658,750 70,077 - 44,977 39,086 (26,151) 1,175,973 Use of money and property 6,275,389 - - - - - 12,982,471 From other governments - 132,511 - 2,585,338 258,988 - 3,421,012 Grants
- 4,957 - - - 790,032 794,989 Service charges
- 190,386 - - - 472,676 663,062 Other revenues
6,934,139 3,207,205 - 2,630,315 298,074 1,236,557 22,046,840 Total revenues
EXPENDITURES
Current:
- - - - 354,996 - 354,996 General government
- 2,754,080 - - - - 2,754,080 Community services
- - - - 81,253 - 291,699 Planning
138,726 - - - - 1,140,566 1,279,292 Public ways and facilities - - - 757,081 - - 757,081 Public safety
138,726 2,754,080 - 757,081 436,249 1,140,566 5,437,148 Total current expenditures - - - 215,466 - - 215,466 Capital outlay
Debt Service:
- 35,970 - 56,472 - - 92,442 Principal
- 39,924 - 9,028 - - 48,952 Interest - - - - - - - Other
- 75,894 - 65,500 - - 141, 394 Total debt service
138,726 2,829,974 - 1,038,047 436,249 1,140,566 5,794,008 Total expenditures
EXCESS/(DEFICIENCY) OF REVENUES
6,795,413 377,231 - 1,592,268 (138,175) 95,991 16,252,832 OVER/(UNDER) EXPENDITURES
OTHER FINANCING SOURCES/(USES)
- - - 134,310 - 400,000 534,310 Transfers in (6,034,577) - - (1,469,220) - - (12,788,553) Transfers out - - - - - - - Proceeds from sale of property
- - - 215,466 - - 215,466 Long-term debt issuance - SBITA (6,034,577) - - (1,119,444) - 400,000 (12,038,777) Total other financing sources/(uses) 760,836 377,231 - 472,824 (138,175) 495,991 4,214,055 NET CHANGE IN FUND BALANCES 10,847,921 2,392,825 - 1,455,176 446 (1,088,835) 21,119,949 FUND BALANCES - BEGINNING 11,608,757$ 2,770,056$ -$ 1,928,000$ (137,729)$ (592,844)$ 25,334,004$ FUND BALANCES - ENDING (Continued)
Special Revenue
Funds
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
129
173
2014A Total
Lease Revenue 2016 2017 2018 Nonmajor
Refunding CREBS Lease Lease Debt
Bonds LRB Agreement 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 890,000 433,785 444,893 328,635 2,097,313
Interest 582,275 263,439 128,949 239,003 1,213,666
Other 2,150 824 749 250 3,973
Total debt service 1,474,425 698,048 574,591 567,888 3,314,952 Total expenditures 1,474,425 698,048 574,591 567,888 3,314,952
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (1,474,425) (698,048) (574,591) (567,888) (3,314,952)
OTHER FINANCING SOURCES/(USES)
Transfers in 1,474,425 698,048 575,841 567,888 3,316,202 Transfers out - - (905,062) - (905,062)
Proceeds from sale of property - - - - -
Long-term debt issuance - SBITA - - - - -
Total other financing sources/(uses) 1,474,425 698,048 (329,221) 567,888 2,411,140 NET CHANGE IN FUND BALANCES - - (903,812) - (903,812) FUND BALANCES - BEGINNING - - 903,812 - 903,812
FUND BALANCES - ENDING -$ -$ -$ -$ -$
(Continued)
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
Debt Service
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
CITY OF SIMI VALLEY
130
174
Geographic Financial
Equipment Information Public Facility Information Police Capital Replacement System (GIS) Improvements System (FIS) Projects
REVENUES
-$ -$ -$ -$ -$ Taxes
- - - - - Fines and forfeitures
39,941 640 - 61,517 - Use of money and property
- - - - - From other governments
- - - - - Grants
- - - - - Service charges
- - - - 75,000 Other revenues
39,941 640 - 61,517 75,000 Total revenues
EXPENDITURES
Current:
- - - - - General government
- - - - - Community services
- - - - - Planning
- - - - - Public ways and facilities
- - - - - Public safety
- - - - - Total current expenditures
1,601,795 - 237,874 36,653 - Capital outlay
Debt Service:
- - - - - Principal
- - - - - Interest
- - - - - Other
- - - - - Total debt service
1,601,795 - 237,874 36,653 - Total expenditures
EXCESS/(DEFICIENCY) OF REVENUES
(1,561,854) 640 (237,874) 24,864 75,000 OVER/(UNDER) EXPENDITURES
OTHER FINANCING SOURCES/(USES)
1,341,831 - 841,919 - - Transfers in
- - - - - Transfers out
1,839 - - - - Proceeds from sale of property
- - - - - Long-term debt issuance - SBITA
1,343,670 - 841,919 - - Total other financing sources/(uses) (218,184) 640 604,045 24,864 75,000 NET CHANGE IN FUND BALANCES 3,448,921 21,680 1,866,013 2,098,689 420,824 FUND BALANCES - BEGINNING 3,230,737$ 22,320$ 2,470,058$ 2,123,553$ 495,824$ FUND BALANCES - ENDING (Continued)
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
Capital Projects
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
131
175
Total
Nonmajor Total
Telephone Solar Capital LED Streetlight Radio Capital Nonmajor System Projects Project Project Projects Funds
REVENUES
Taxes -$ -$ -$ -$ -$ 3,005,169$
Fines and forfeitures - - - - - 4,164
Use of money and property - - - - 102,098 1,278,071 From other governments - - - - - 12,982,471
Grants - - - - - 3,421,012
Service charges - - - - - 794,989
Other revenues - - - - 75,000 738,062
Total revenues - - - - 177,098 22,223,938
EXPENDITURES
Current:
General government - - - - - 354,996
Community services - - - - - 2,754,080
Planning - - - - - 291,699
Public ways and facilities - - - - - 1,279,292
Public safety - - - - - 757,081
Total current expenditures - - - - - 5,437,148
Capital outlay 32,750 - 16,101 139,283 2,064,456 2,279,922 Debt Service:
Principal - - - - - 2,189,755
Interest - - - - - 1,262,618
Other - - - - - 3,973
Total debt service - - - - - 3,456,346
Total expenditures 32,750 - 16,101 139,283 2,064,456 11,173,416
EXCESS/(DEFICIENCY) OF REVENUES
OVER/
(UNDER) EXPENDITURES (32,750) - (16,101) (139,283) (1,887,358) 11,050,522
OTHER FINANCING SOURCES/(USES)
Transfers in - - - 3,626,980 5,810,730 9,661,242
Transfers out - - - - - (13,693,615)
Proceeds from sale of property - - - - 1,839 1,839
Long-term debt issuance - SBITA - - - - - 215,466
Total other financing sources/(uses) - - - 3,626,980 5,812,569 (3,815,068) NET CHANGE IN FUND BALANCES (32,750) - (16,101) 3,487,697 3,925,211 7,235,454 FUND BALANCES - BEGINNING 165,753 56,305 403,216 27,318 8,508,719 30,532,480 FUND BALANCES - ENDING 133,003$ 56,305$ 387,115$ 3,515,015$ 12,433,930$ 37,767,934$ (Concluded)
Capital Projects
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
132
176
FISCAL YEAR ENDED
JUNE 30, 2024
SCHEDULES-BUDGET
AND ACTU
AL-
INDIVIDUAL FUND
177
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 55,192$ 55,192$
Total revenues - - 55,192 55,192
EXPENDITURES
Current:
Planning 250,000 250,000 - 250,000
Total expenditures 250,000 250,000 - 250,000
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (250,000) (250,000) 55,192 305,192 NET CHANGE IN FUND BALANCE (250,000) (250,000) 55,192 305,192 FUND BALANCE - BEGINNING 511,153 511,153 511,153 -
FUND BALANCE - ENDING 261,153$ 261,153$ 566,345$ 305, 192$ 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, 2024
133
179
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 8,500$ 8,500$ 150,239$ 141,739$ Total revenues 8,500 8,500 150,239 141,739
EXPENDITURES
Current:
Planning 540,000 540,000 - 540,000 Total expenditures 540,000 540,000 - 540,000
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (531,500) (531,500) 150,239 681,739 NET CHANGE IN FUND BALANCE (531,500) (531,500) 150,239 681,739 FUND BALANCE - BEGINNING 1,285,209 1,285,209 1,285,209 - FUND BALANCE - ENDING 753,709$ 753,709$ 1,435, 448$ 681,739$ 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, 2024
134
180
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 6,972$ 6,972$ Grants 947,952 1,493,185 444,175 (1,049,010) Total revenues 947,952 1,493,185 451,147 (1,042,038)
EXPENDITURES
Current:
Planning 947,952 1,858,420 150,738 1,707,682 Total expenditures 947,952 1,858,420 150,738 1,707,682
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES - (365,235) 300,409 665,644 NET CHANGE IN FUND BALANCE - (365,235) 300,409 665,644 FUND BALANCE - BEGINNING (17,597) (17,597) (17,597) - FUND BALANCE - ENDING (17,597)$ (382,832)$ 282,812$ 665,644$ Budgeted Amounts
CITY OF SIMI VALLEY
PLANNING GRANTS
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
135
181
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Taxes 280,000$ 280,000$ 200,059$ (79,941)$
Use of money and property 15,000 15,000 87,773 72,773
Total revenues 295,000 295,000 287,832 (7,168)
EXPENDITURES
Current:
Planning 230,000 1,136,617 59,708 1,076,909
Total expenditures 230,000 1,136,617 59,708 1,076,909
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 65,000 (841,617) 228,124 1,069,741 NET CHANGE IN FUND BALANCE 65,000 (841,617) 228,124 1,069,741 FUND BALANCE - BEGINNING 2,915,734 2,915,734 2,915,734 - FUND BALANCE - ENDING 2,980,734$ 2,074,117$ 3,143,858$ 1,069,741$ 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, 2024
136
182
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
From other governments 3,604,740$ 3,604,740$ 3,451,623$ (153,117)$ Total revenues 3,604,740 3,604,740 3,451,623 (153,117)
OTHER FINANCING SOURCES/(USES)
Transfers out (3,604,740) (3,604,740) (3,457,198) 147,542 Total other financing sources/(uses) (3,604,740) (3,604,740) (3,457,198) 147,542 NET CHANGE IN FUND BALANCE - - (5,575) (5,575) FUND BALANCE - BEGINNING 304,243 304,243 304,243 - FUND BALANCE - ENDING 304,243$ 304,243$ 298,668$ (5, 575)$ 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, 2024
137
183
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 89,058$ 89,058$ From other governments 3,118,483 3,118,483 3,255,459 136,976 Total revenues 3,118,483 3,118,483 3,344,517 226,034
OTHER FINANCING SOURCES/(USES)
Transfers out (3,118,483) (3,118,483) (1,827,558) 1,290,925 Total other financing sources/(uses) (3,118,483) (3,118,483) (1,827,558) 1,290,925 NET CHANGE IN FUND BALANCE - - 1,516,959 1,516,959 FUND BALANCE - BEGINNING 2,513,674 2,513,674 2,513,674 - FUND BALANCE - ENDING 2,513,674$ 2,513,674$ 4,030,633$ 1,516,959$ 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, 2024
138
184
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 2,500$ 2,500$ 658,750$ 656,250$ From other governments 4,537,000 4,537,000 6,275,389 1,738,389 Total revenues 4,539,500 4,539,500 6,934,139 2,394,639
EXPENDITURES
Current:
Public ways and facilities 37,000 39,000 138,726 (99,726) Total expenditures 37,000 39,000 138,726 (99,726)
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 4,502,500 4,500,500 6,795,413 2,294,913
OTHER FINANCING SOURCES/(USES)
Transfers out (7,082,189) (7,082,189) (6,034,577) 1,047,612 Total other financing sources/(uses) (7,082,189) (7,082,189) (6,034,577) 1,047,612 NET CHANGE IN FUND BALANCE (2,579,689) (2,581,689) 760,836 3,342,525 FUND BALANCE - BEGINNING 10,847,921 10,847,921 10,847,921 - FUND BALANCE - ENDING 8,268,232$ 8,266,232$ 11,608,757$ 3,342,525$ Budgeted Amounts
CITY OF SIMI VALLEY
TRANSPORTATION
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
139
185
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Taxes 2,805,110$ 2,805,110$ 2,805,110$ -$ Fines and forfeitures 4,000 4,000 4,164 164 Use of money and property 13,000 13,000 70,077 57,077 Grants - 93,253 132,511 39,258 Service charges 6,000 6,000 4,957 (1,043) Other revenues 47,000 62,884 190,386 127,502 Total revenues 2,875,110 2,984,247 3,207,205 222,958
EXPENDITURES
Current:
Community services 2,875,110 4,889,869 2,754,080 2,135,789 Total current expenditures 2,875,110 4,889,869 2,754,080 2,135,789 Debt service:
Principal - - 35,970 (35,970) Interest - - 39,924 (39,924) Total debt service - - 75,894 (75,894) Total expenditures 2,875,110 4,889,869 2,829,974 2,059,895
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES - (1,905,622) 377,231 2,282,853 NET CHANGE IN FUND BALANCE - (1,905,622) 377,231 2,282,853 FUND BALANCE - BEGINNING 2,392,825 2,392,825 2,392,825 - FUND BALANCE - ENDING 2,392,825$ 487,203$ 2,770, 056$ 2,282, 853$ 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, 2024
140
186
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Total revenues -$ -$ -$ -$
EXPENDITURES
Current:
General Government - - - -
Total expenditures - - - -
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES - - - -
NET CHANGE IN FUND BALANCE - - - -
FUND BALANCE - BEGINNING - - - -
FUND BALANCE - ENDING -$ -$ -$ -$
Budgeted Amounts
CITY OF SIMI VALLEY
OPIOID SETTLEMENTS
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
141
187
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 12,000$ 12,000$ 44,977$ 32,977$ Grants 1,349,000 2,427,265 2,585,338 158,073 Total revenues 1,361,000 2,439,265 2,630,315 191,050
EXPENDITURES
Current:
Public safety 179,886 1,507,394 757,081 750,313 Total current expenditures 179,886 1,507,394 757,081 750,313 Capital outlay - - 215,466 (215,466) Debt Service:
Principal - - 56,472 (56,472) Interest - - 9,028 (9,028) Total debt service - - 65,500 (65,500) Total expenditures 179,886 1,507,394 1,038,047 469,347
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 1,181,114 931,871 1,592,268 660,397
OTHER FINANCING SOURCES/(USES)
Transfers in - 134,310 134,310 - Transfers out (687,684) (1,838,237) (1,469,220) 369,017 Long-term debt issuance - SBITA - - 215,466 215,466 Total other financing sources/(uses) (687,684) (1,703,927) (1,119,444) 584,483 NET CHANGE IN FUND BALANCE 493,430 (772,056) 472,824 1,244,880 FUND BALANCE - BEGINNING 1,455,176 1,455,176 1,455,176 - FUND BALANCE - ENDING 1,948,606$ 683,120$ 1,928, 000$ 1,244, 880$ 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, 2024
142
188
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 39,086$ 39,086$
Grants 648,104 671,582 258,988 (412,594)
Total revenues 648,104 671,582 298,074 (373,508)
EXPENDITURES
Current:
General government 707,041 1,210,248 354,996 855,252 Planning 106,937 257,787 81,253 176,534
Total expenditures 813,978 1,468,035 436,249 1,031,786
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (165,874) (796,453) (138,175) 658,278 NET CHANGE IN FUND BALANCE (165,874) (796,453) (138,175) 658,278 FUND BALANCE - BEGINNING 446 446 446 -
FUND BALANCE - ENDING (165,428)$ (796,007)$ (137,729)$ 658,278$ 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, 2024
143
189
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ (26,151)$ (26,151)$ Service charges 790,267 790,267 790,032 (235) Other revenues - - 472,676 472,676 Total revenues 790,267 790,267 1,236,557 446,290
EXPENDITURES
Current:
Public ways and facilities 1,192,609 1,192,609 1,140,566 52,043 Total expenditures 1,192,609 1,192,609 1,140,566 52,043
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER EXPENDITURES (402,342) (402,342) 95,991 498,333
OTHER FINANCING SOURCES/(USES)
Transfers in 400,000 400,000 400,000 - Total other financing sources/(uses) 400,000 400,000 400,000 - NET CHANGE IN FUND BALANCE (2,342) (2,342) 495,991 498,333 FUND BALANCE - BEGINNING (1,088,835) (1,088,835) (1,088,835) - FUND BALANCE - ENDING (1,091,177)$ (1,091,177)$ (592, 844)$ 498,333$ 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, 2024
144
190
FISCAL YEAR ENDED
JUNE 30, 2024
INTERNAL SERVICE
AND FIDUCIARY FUNDS
191
City of
o� SIMI
VALLEY
CALIFORNIA
192
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
Assets
Current assets:
Cash and investments 6,172,173$ 18,373,669$ 329,938$ 482$ 24,876,262$ Interest receivable 40,082 171,166 2,784 - 214,032 Total assets 6,212,255 18,544,835 332,722 482 25,090,294
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions - 186,131 - - 186,131
Related to other postemployment benefits - 62,114 - - 62,114 Total deferred outflows of resources - 248,245 - - 248,245
LIABILITIES
Current liabilities:
Accounts payable 184,271 9,097 3,788 - 197,156
Salaries and benefits payable - 8,734 - - 8,734
Compensated absences - 2,348 - - 2,348
Claims and legal services payable 815,581 1,807,598 - - 2,623,179 Total current liabilities 999,852 1,827,777 3,788 - 2,831,417 Noncurrent liabilities:
Compensated absences - 21,129 - - 21,129
Claims and legal services payable 1,483,487 5,382,909 - - 6,866,396 Net pension liability - 699,180 - - 699,180
Net other postemployment benefits liability - 125,187 - - 125,187 Total noncurrent liabilities 1,483,487 6,228,405 - - 7,711,892 Total liabilities 2,483,339 8,056,182 3,788 - 10,543,309
DEFERRED INFLOWS OF RESOURCES
Related to pensions - 1,969 - - 1,969
Related to other postemployment benefits - 84,144 - - 84,144 Total deferred inflows of resources - 86,113 - - 86,113
NET POSITION
Unrestricted 3,728,916 10,650,785 328,934 482 14,709,117 Total net position 3,728,916$ 10,650,785$ 328,934$ 482$ 14,709,117$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2024
145
193
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
OPERATING REVENUES
Charges for sales and services 4,583,900$ 2,270,314$ 95,201$ -$ 6,949,415$
OPERATING EXPENSES
Salaries and benefits - 257,064 - - 257,064
Services:
Professional and contracted services - 82,251 45,873 - 128,124 Other services - 2,420 51,191 - 53,611
Insurance 1,817,902 347,033 - - 2,164,935
Claims and legal expenses 1,430,917 863,710 - - 2,294,627 General administration 127,667 480,160 - - 607,827
Total operating expenses 3,376,486 2,032,638 97,064 - 5,506,188 OPERATING INCOME/(LOSS) 1,207,414 237,676 (1,863) - 1,443,227
NONOPERATING REVENUES AND (EXPENSES)
Interest 124,503 933,810 8,824 (689) 1,066,448
Total nonoperating revenues/(expenses) 124,503 933,810 8,824 (689) 1,066,448 INCOME/(LOSS) BEFORE TRANSFERS 1,331,917 1,171,486 6,961 (689) 2,509,675
TRANSFERS
Transfers out (3,000) (3,200) - (151,000) (157,200)
Total transfers (3,000) (3,200) - (151,000) (157,200) CHANGE IN NET POSITION 1,328,917 1,168,286 6,961 (151,689) 2,352,475 NET POSITION - BEGINNING 2,399,999 9,482,499 321,973 152,171 12,356,642 NET POSITION - ENDING 3,728,916$ 10,650,785$ 328,934$ 482$ 14,709,117$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
146
194
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Ope
rations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from service charges and other revenues 4,583,900$ 2,270,314$ 95,201$ -$ 6,949,415$ Cash paid for salaries and benefits - (379,341) - - (379,341) Cash paid for services 119,124 (78,645) (98,579) - (58,100) Cash paid for insurance (1,817,902) (347,033) - - (2,164,935) Cash paid for claims and legal expenses (1,244,663) (1,483,359) - - (2,728,022) Cash paid for general administration (127,667) (480,160) - - (607,827) Net cash provided by/(used in) operating activities 1,512,792 (498,224) (3,378) - 1,011,190
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Cash transfers from/(to) other funds (3,000) (3,200) - (151,000) (157,200) Cash provided by/(used in) noncapital financing activities (3,000) (3,200) - (151,000) (157,200)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 110,920 891,246 8,042 727 1,010,935 Net cash provided by investing activities 110,920 891,246 8,042 727 1,010,935 NET INCREASE/(DECREASE) IN CASH AND INVESTMENTS 1,620,712 389,822 4,664 (150,273) 1,864,925 CASH AND INVESTMENTS, BEGINNING OF YEAR 4,551,461 17,983,847 325,274 150,755 23,011,337 CASH AND INVESTMENTS, END OF YEAR 6,172,173$ 18,373,669$ 329,938$ 482$ 24,876,262$
RECONCILIATION OF OPERATING INCOME/(LOSS) TO NET CASH
PROVIDED BY/(USED IN) OPERATING ACTIVITIES
Operating income/(loss) 1,207,414$ 237,676$ (1,863)$ -$ 1,443,227$ Adjustments to reconcile operating income/(loss) to net cash provided by/ (used in) by operating activities:
Increase/(decrease) in accounts payable 119,124 6,026 (1,515) - 123,635 Increase/(decrease) in accrued payroll - (3,140) - - (3,140) Increase/(decrease) in compensated absences - (4,237) - - (4,237) Increase/(decrease) in claims and legal services payable 186,254 (619,649) - - (433,395) Increase/(decrease) in net pension liability - (51,073) - - (51,073) Increase/(decrease) in net other postemployment benefits liability - (63,827) - - (63,827) Total adjustments 305,378 (735,900) (1,515) - (432,037) Net cash provided by/(used in) operating activities 1,512,792$ (498,224)$ (3, 378)$ -$ 1,011,190$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
147
195
Community Merged
Development Tapo Canyon Rede velopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
Assets
Cash and investments:
Held by City -$ (110,369)$ 1$ 2,520,480$
Held by bond trustee - - - -
Interest receivable - - - 25,607
Capital assets not being depreciated - 1,124,174 - -
Total assets - 1,013,805 1 2,546,087
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 2,546,087 Total net position -$ 1,013,805$ 1$ 2, 546,087$
(Continued)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2024
148
196
Total Successor
2003 Agency to the
Tax Allocation Simi Va lley CDA
Refunding CDA Private-Purpose
Bonds Projects Trust Funds
Assets
Cash and investments:
129,387$ 41,015$ 2,580,514$ Held by City
2,188,101 - 2,188,101 Held by bond trustee
- 385 25,992 Interest receivable
- - 1,124,174 Capital assets not being depreciated
2,317,488 41,400 5,918,781 Total assets
LIABILITIES
20,399 - 20,399 Accounts payable and accrued liabilities 201,317 - 201,317 Accrued interest payable
Long-term debt:
1,506,306 - 1,506,306 Due within one year
10,746,986 - 10,746,986 Due in more than one year
12,475,008 - 12,475,008 Total liabilities
NET POSITION/(DEFICIT)
(10,157,520) 41,400 (6,556,227) Held in trust for other purposes (10,157,520)$ 41,400$ (6,556,227)$ Total net position (Concluded)
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
JUNE 30, 2024
149
197
Community Merged
Development Tapo Canyon Redev elopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
ADDITIONS
Property taxes -$ -$ -$ 2,114,251$
Investment earnings - - - 84,358
Transfers in 9,942 - - -
TOTAL ADDITIONS 9,942 - - 2,198,609
DEDUCTIONS
Administrative expenses 9,942 - - -
Interest and fiscal agency expenses - - - -
Transfers out - - - 2,045,393
TOTAL DEDUCTIONS 9,942 - - 2,045,393
CHANGE IN NET POSITION - - - 153,216
NET POSITION/(DEFICIT) - BEGINNING - 1,013,805 1 2,392,871 NET POSITION/(DEFICIT) - ENDING -$ 1,013,805$ 1$ 2,546,087$ (Continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
150
198
Total Successor
2003 Agency to the
Tax Allocation Eliminat e the Simi Valley CDA
Refunding CDA Impact of Private-Purpose
Bonds Projects Transfers Trust Funds
ADDITIONS
-$ -$ -$ 2,114,251$ Property taxes
54,802 1,189 - 140,349 Investment earnings
2,134,238 - (2,144,180) - Transfers in
2,189,040 1,189 (2,144,180) 2,254,600 TOTAL ADDITIONS
DEDUCTIONS
7,250 - - 17,192 Administrative expenses
621,163 - - 621,163 Interest and fiscal agency expenses 98,787 - (2,144,180) - Transfers out
727,200 - (2,144,180) 638,355 TOTAL DEDUCTIONS
1,461,840 1,189 - 1,616,245 CHANGE IN NET POSITION (11,619,360) 40,211 - (8,172,472) NET POSITION/(DEFICIT) - BEGINNING (10,157,520)$ 41,400$ -$ (6,556,227)$ NET POSITION/(DEFICIT) - ENDING (Concluded)
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Successor Agency to the Simi Valley CDA Private-Purpose Trust Funds
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PRIVATE-PURPOSE TRUST FUNDS
151
199
Assessment
City Districts
Custodial City of Total
Fund Simi Valley Custodial Funds
Assets
Cash and investments:
Held by City 5,982,093$ 1, 119,822$ 7,101,915$
Held by bond trustee - 1,114,176 1,114,176
Accounts receivable - 10,188 10,188
Total assets 5,982,093 2,244,186 8,226,279
LIABILITIES
Accounts payable and accrued liabilities 28,990 1,890 30, 880 Deposits 5,953,103 - 5,953,103
Due to bondholders - 2,024,234 2,024,234
Total liabilities 5,982,093 2,026,124 8,008,217
NET POSITION/(DEFICIT)
Net position restricted for individuals - 218,062 218, 062 Total net position -$ 218,062$ 218,062$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2024
152
200
Assessment
City Districts
Custodial City of Total
Fund Simi Valley Custodial Funds
ADDITIONS
Other taxes -$ (26,124)$ ( 26,124)$
Investment earnings/(losses) - 85,397 85,397
TOTAL ADDITIONS - 59,273 59,273
DEDUCTIONS
Administrative expenses - 13,003 13, 003
Interest and fiscal agency expenses - 304,229 304,229 TOTAL DEDUCTIONS - 317,232 317,232
CHANGE IN NET POSITION - (257,959) (257,959)
NET POSITION/(DEFICIT) - BEGINNING - 476,021 476,021
NET POSITION/(DEFICIT) - ENDING -$ 218,062$ 218,062$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
153
201
Total Pension
and Other
Postemployment
Pension OPEB Benefits (OPEB)
Trust Fund Trust Fund Trust Funds
Assets
Restricted Cash and investments held with Pension Trust 1,508,126$ -$ 1,508,126$ Restricted Cash and investments held with OPEB Trust - 3,892,853 3,892,853 Total assets 1,508,126 3,892,853 5,400,979
NET POSITION/(DEFICIT)
Net position restricted for pensions 1,508,126 - 1,508,126 Net position restricted for OPEB - 3,892,853 3,892,853 Total net position 1,508,126$ 3,892,853$ 5,400,979$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION AND OTHER POSTEMPLOYMENT BENEFITS (OPEB) TRUST FUNDS JUNE 30, 2024
154
202
Total Pension
and Other
Postemployment
Pension OPEB Benefits (OPEB)
Trust Fund Trust Fund Trust Funds
ADDITIONS
Contributions 135,008$ 3,219,354$ 3 ,354,362$
Investment earnings 89,467 403,076 492,543
TOTAL ADDITIONS 224,475 3,622,430 3,846,905
DEDUCTIONS
Administrative expenses 469 1,885 2,3 54
Benefit payments 129,622 3,219,354 3,348,976
TOTAL DEDUCTIONS 130,091 3,221,239 3,351,330
CHANGE IN NET POSITION 94,384 401,191 495,575
NET POSITION/(DEFICIT) - BEGINNING, as previously reported 1,413,742 3,265,903 4,679,645 Prior year adjustment - 225,759 225,759
NET POSITION/(DEFICIT) - BEGINNING, restated (note IV.G) 1,413,742 3,491,662 4,905,404 NET POSITION/(DEFICIT) - ENDING 1,508,126$ 3,892,853$ 5 ,400,979$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION AND OTHER POSTEMPLOYMENT BENEFITS (OPEB) TRUST FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2024
155
203
City of
o� SIMI
VALLEY
CALIFORNIA
204
STATISTICAL SECTION
STATISTICAL SECTION
205
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. ............... 157
Revenue Capacity
These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. .......................................................... 167
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. ........................................................................................... 173
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. ..... 177
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. ........................................................ 179
SOURCE:
Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial report for the relevant year.
156
206
2014-15 2015-16 2016-17 2017-18 2018-19
Governmental activities
Net investment in capital assets 207,788,585$ 211,751,365$ 210,531,356$ 196,724,305$ 208,951,633$ Restricted 57,372,815 57,552,738 64,139,877 71,851,898 60,704,865 Unrestricted (55,691,639) (52,859,886) (62,293,358) (88,047,192) (90,524,428) Total governmental activites net position 209,469,761$ 216,444,217$ 212,377,875$ 180,529,011$ 179,132,070$ Business-type activities
Net investment in capital assets 141,770,140$ 143,093,105$ 141,317,489$ 139,670,875$ 137,805,536$ Restricted 4,716,713 5,140,128 5,941,420 7,011,040 7,874,785 Unrestricted 15,841,185 17,627,461 19,496,282 18,695,056 24,888,703 Total business-type activities net position 162,328,038$ 165,860,694$ 166,755,191$ 165,376,971$ 170,569,024$ Primary Government
Net investment in capital assets 349,558,725$ 354,844,470$ 351,848,845$ 336,395,180$ 346,757,169$ Restricted 62,089,528 62,692,866 70,081,297 78,862,938 68,579,650 Unrestricted (39,850,454) (35,232,425) (42,797,076) (69,352,136) (65,635,725) Total primary government net position 371,797,799$ 382,304,911$ 379,133,066$ 345,905,982$ 349,701,094$ (Continued)
Fiscal Year
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
157
207
2019-20 2020-21 2021-22 2022-23 2023-24
Governmental activities
209,763,040$ 203,826,589$ 200,958,735$ 209,775,571$ 214,227,084$ Net investment in capital assets 62,018,594 78,265,866 87,578,328 81,276,789 79,502,386 Restricted (89,407,109) (83,168,701) (67,653,561) (57,486,049) (56,918,578) Unrestricted 182,374,525$ 198,923,754$ 220,883,502$ 233,566,311$ 236,810,892$ Total governmental activites net position Business-type activities
139,278,603$ 148,000,879$ 133,253,370$ 135,124,145$ 133,921,622$ Net investment in capital assets 7,874,785 9,843,643 12,266,569 12,622,013 13,900,255 Restricted 30,472,607 28,737,089 56,432,178 70,955,082 88,407,711 Unrestricted 177,625,995$ 186,581,611$ 201,952,117$ 218,701,240$ 236,229,588$ Total business-type activities net position Primary Government
349,041,643$ 351,827,468$ 334,212,105$ 344,899,716$ 348,148,706$ Net investment in capital assets 69,893,379 88,109,509 99,844,897 93,898,802 93,402,641 Restricted (58,934,502) (54,431,612) (11,221,383) 13,469,033 31,489,133 Unrestricted 360,000,520$ 385,505,365$ 422,835,619$ 452,267,551$ 473,040,480$ Total primary government net position (Concluded)
Fiscal Year
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
158
208
2014-15 2015-16 2016-17 2017-18 2018-19
Expenses
Governmental activities:
General government 19,604,979$ 16,442,755$ 13,323,582$ 18,661,104$ 17,720,443$ Community services 6,264,358 6,397,826 7,068,775 7,469,961 7,234,363 Planning 5,699,916 6,308,221 6,001,235 6,459,507 6,002,066 Public ways and facilities 16,822,400 16,641,718 18,569,074 19,580,854 19,651,601 Public safety 31,445,540 31,286,515 34,501,473 38,809,004 36,836,767 Interest on long-term debt 265,922 720,840 937,079 1,230,782 1,440,347 Refunding bond issuance costs - 194,069 - - - Total governmental activities expenses 80,103,115 77,991,944 80,401,218 92,211,212 88,885,587 Business-type activities:
Sanitation 16,136,164 14,845,944 18,151,061 18,222,816 17,375,318 Waterworks District No. 8 37,984,287 34,249,031 36,967,538 42,900,423 40,552,517 Transit 6,722,692 7,117,042 7,369,511 9,135,850 9,387,703 Total business-type activities expenses 60,843,143 56,212,017 62,488,110 70,259,089 67,315,538 Total primary government expenses 140,946,258$ 134,203,961$ 142,889, 328$ 162,470, 301$ 156,201, 125$ Program Revenues
Governmental activities:
Charges for services:
General government 531,683$ 1,606,097$ 800,874$ 2,497,172$ 2,580,241$ Community services 882,739 1,109,053 924,269 1,015,074 1,086,783 Planning 2,202,730 2,738,543 4,256,995 4,430,830 4,742,278 Public ways and facilities 1,913,193 1,821,043 1,936,852 2,719,170 2,927,559 Public safety 866,031 771,002 626,340 889,379 896,399 Operating grants and contributions 12,519,780 9,643,713 9,398,940 9,348,042 11,987,812 Capital grants and contributions 28,819,982 13,530,222 3,694,804 2,117,322 1,619,868 Total governmental activities program revenues 47,736,138 31,219,673 21,639,074 23,016,989 25,840,940 Business-type activities:
Charges for services:
Sanitation 14,567,947 16,047,248 17,645,619 19,241,722 20,591,589 Waterworks District No. 8 33,215,428 30,877,802 36,529,274 43,808,330 40,967,174 Transit 401,369 430,804 426,246 406,387 402,517 Operating grants and contributions 2,526,193 2,602,009 2,639,740 2,667,120 2,673,492 Capital grants and contributions 11,698,157 5,458,314 1,921,558 2,064,181 1,952,893 Total business-type activities program revenues 62,409,094 55,416,177 59,162,437 68,187,740 66,587,665 Total primary governmental program revenues 110,145,232$ 86,635,850$ 80,801, 511$ 91,204, 729$ 92,428, 605$ Net (Expense)/Revenue
Governmental activities (32,366,977) (46,772,271) (58,762,144) (69,194,223) (63,044,647) Business-type activities 1,565,951 (795,840) (3,325,673) (2,071,349) (727,873) Total primary government net expense (30,801,026)$ (47,568,111)$ (62, 087,817)$ (71, 265,572)$ (63, 772,520)$ (Continued)
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
159
209
2019-20 2020-21 2021-22 2022-23 2023-24
Expenses
Governmental activities:
19,516,513$ 16,936,266$ 13,890,174$ 17,043,010$ 29,336,963$ General government 6,523,639 6,568,970 6,204,005 7,467,577 8,696,150 Community services 3,840,624 6,739,637 5,908,937 6,841,158 7,647,602 Planning 23,659,432 19,921,676 17,753,088 18,555,545 21,525,038 Public ways and facilities 36,691,093 37,445,831 35,758,204 38,757,037 40,173,347 Public safety 1,466,885 1,356,832 1,285,332 1,189,630 1,174,250 Interest on long-term debt - - - - - Refunding bond issuance costs 91,698,186 88,969,212 80,799,740 89,853,957 108,553,350 Total governmental activities expenses Business-type activities:
17,324,800 18,985,485 15,323,866 18,206,100 18,164,038 Sanitation 42,895,822 48,250,272 44,127,857 37,536,761 42,666,774 Waterworks District No. 8 8,839,284 8,222,624 7,787,395 9,436,766 9,263,532 Transit 69,059,906 75,458,381 67,239,118 65,179,627 70,094,344 Total business-type activities expenses 160,758,092$ 164,427,593$ 148,038,858$ 155,033, 584$ 178,647, 694$ Tot al primary government expenses Program Revenues
Governmental activities:
Charges for services:
1,990,356$ 1,569,907$ 1,618,424$ 1,613,425$ 1,272,945$ General government 840,227 293,799 836,307 996,991 1,353,729 Community services 2,926,064 5,443,247 5,011,362 3,749,701 3,083,681 Planning 2,335,563 3,687,751 3,940,427 1,823,353 2,494,351 Public ways and facilities 561,674 772,994 414,024 708,841 537,726 Public safety 12,622,399 22,170,916 19,932,730 15,927,173 17,978,707 Operating grants and contributions 5,383,614 505,218 546,707 2,143,432 940,645 Capital grants and contributions 26,659,897 34,443,832 32,299,981 26,962,916 27,661,784 Total governmental activities program revenues Business-type activities:
Charges for services:
21,857,056 23,846,199 26,077,946 27,414,752 29,866,164 Sanitation 43,144,049 51,005,332 48,945,484 40,656,924 44,887,288 Waterworks District No. 8 291,226 8,922 180,585 282,560 344,048 Transit 5,663,893 6,923,917 3,459,938 3,435,944 3,521,891 Operating grants and contributions 1,302,250 3,745,985 2,484,089 3,387,969 2,424,619 Capital grants and contributions 72,258,474 85,530,355 81,148,042 75,178,149 81,044,010 Total business-type activities program revenues 98,918,371$ 119,974,187$ 113,448,023$ 102,141, 065$ 108,705, 794$ Tot al primary governmental program revenues Net (Expense)/Revenue
(65,038,289) (54,525,380) (48,499,759) (62,891,041) (80,891,566) Governmental activities 3,198,568 10,071,974 13,908,924 9,998,522 10,949,666 Business-type activities (61,839,721)$ (44,453,406)$ (34,590,835)$ (52, 892,519)$ (69, 941,900)$ Tot al primary government net expense (Continued)
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
160
210
2014-15 2015-16 2016-17 2017-18 2018-19
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes 28,340,047$ 29,835,623$ 31,120,875$ 32,303,044$ 34,011,044$ Sales taxes 15,944,424 17,432,505 16,842,335 17,857,830 18,961,367 Franchise taxes 4,757,607 5,025,802 4,740,682 4,445,972 4,931,918 Business taxes 1,742,469 1,786,153 1,787,587 1,967,065 2,106,344 Other taxeses 2,128,115 2,587,113 2,561,922 2,703,566 2,849,714 Investment earnings 819,685 835,387 964,495 1,290,234 2,496,426 Miscellaneous - - - - - Transfers (2,869,014) (3,255,695) (3,572,095) (3,512,087) (3,758,457) Contributions from other governments 373,512 - - 2,082,766 49,350 Contributions to other governments - (63,992) 250,000 - - Total governmental activities 51,236,845 54,182,896 54,695,802 59,138,390 61,647,706 Business-type activities:
Investment earnings 955,624 811,714 520,855 821,540 2,041,917 Miscellaneous 105,367 261,087 127,220 119,408 119,552 Transfers 2,869,014 3,255,695 3,572,095 3,512,087 3,758,457 Spec
ial item: loss on abandonment of projects - - - - - Total business-type activities 3,930,005 4,328,496 4,220,170 4,453,035 5,919,926 Total primary government 55,166,850$ 58,511,392$ 58,915, 972$ 63,591, 425$ 67,567, 632$ Change in Net Position
Governmental activities 18,869,868$ 7,410,625$ (4,066,342)$ (10,055,833)$ (1,396,941)$ Business-type activities 5,495,956 3,532,656 894,497 2,381,686 5,192,053 Total primary government 24,365,824$ 10,943,281$ (3, 171,845)$ (7, 674,147)$ 3,795, 112$ (Continued)
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
161
211
2019-20 2020-21 2021-22 2022-23 2023-24
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
39,014,593$ 37,990,791$ 39,173,353$ 42,184,244$ 44,105,061$ Property taxes 18,319,232 21,372,380 23,631,522 23,398,289 23,035,361 Sales taxes 4,872,904 5,185,293 5,393,386 6,084,358 6,189,771 Franchise taxes 2,112,049 2,241,423 2,343,050 2,436,816 2,636,053 Business taxes 2,289,122 2,418,059 3,309,528 3,094,977 2,813,583 Other taxes 2,973,992 699,791 (292,256) 3,137,714 8,134,385 Investment earnings - - 295,538 39,107 104,459 Miscellaneous (1,353,309) 1,115,388 (3,449,116) (4,811,124) (2,882,526) Transfers 52,160 51,484 54,502 9,469 - Contributions from other governments - - - - - Contributions to other governments 68,280,743 71,074,609 70,459,507 75,573,850 84,136,147 Total governmental activities Business-type activities:
2,418,455 (156,009) (2,166,729) 1,848,136 5,667,740 Investment earnings 86,638 155,039 179,195 91,341 130,569 Miscellaneous 1,353,309 (1,115,388) 3,449,116 4,811,124 2,882,526 Transfers - -
- - (2,102,153) Special item: loss on abandonment of projects 3,858,402 (1,116,358) 1,461,582 6,750,601 6,578,682 Total business-type activities 72,139,145$ 69,958,251$ 71,921,089$ 82,324, 451$ 90,714, 829$ Tot al primary government Change in Net Position
3,242,454$ 16,549,229$ 21,959,748$ 12,682,809$ 3,244,581$ Governmental activities 7,056,970 8,955,616 15,370,506 16,749,123 17,528,348 Business-type activities 10,299,424$ 25,504,845$ 37,330,254$ 29,431, 932$ 20,772, 929$ Tot al primary government (Concluded)
LAST TEN FISCAL YEARS
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
162
212
2014-15 2015-16 2016-17 2017-18 2018-19
General fund
Nonspendable, reported in:
Prepaid items -$ -$ -$ -$ -$ Long-term receivables 16,988,891 15,769,102 14,039,905 14,035,421 10,017,212 Committed, reported in:
Retiree benefits 863,564 535,057 17,609 30,008 Special programs 283,828 319,322 333,021 386,105 421,164 Economic recovery 6,084,838 6,084,838 6,084,838 5,084,838 5,084,838 Prudent reserve 11,682,715 11,665,494 11,737,044 12,315,232 12,670,975 Assigned, reported in:
Capital 7,968,732 9,374,012 9,647,610 10,672,125 17,873,825 Unassigned - - - (472,818) - Total General fund 43,872,568$ 43,747,825$ 41,860,027$ 42,020,903$ 46,098,022$ All other government funds
Restricted, reported in:
Housing programs 8,376,955$ 10,483,070$ 11,334,690$ 12,044,976$ 13,008,731$ Public improvements 12,760,231 11,949,371 10,966,923 10,456,563 8,949,351 Streets and transportation 3,075,194 3,872,702 3,846,189 4,815,203 5,991,314 Landscape 1,233,583 1,404,310 1,104,197 844,656 693,379 Debt service 7,963 - 6,424,000 11,989,483 4,241,900 Specialized programs 1,603,522 2,199,119 2,583,864 3,074,465 3,972,856 Law enforcement 2,090,806 2,852,712 2,620,596 2,445,054 2,853,886 Committed, reported in:
Streets 2,460,203 2,789,142 2,202,918 4,162,511 2,565,480 Equipment 5,409,661 5,306,436 5,230,390 5,267,713 5,101,910 Assigned, reported in:
Capital 130,083 59,446 - - - Unassigned (164,935) (55,000) (4,618,291) (693,295) (209,150) Total all other
governmental funds 36,983,266$ 40,861,308$ 41,695, 476$ 54,407, 329$ 47,169, 657$ (Continued)
Fiscal Year
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
163
213
2019-20 2020-21 2021-22 2022-23 2023-24
General fund
Nonspendable, reported in:
-$ -$ -$ -$ 4,687$ Prepaid items 8,124,400 5,971,366 5,920,262 3,569,595 3,569,595 Long-term receivables Committed, reported in:
278,911 372,760 509,729 1,321,566 1,593,010 Retiree benefits 522,806 590,552 764,872 1,065,496 1,100,144 Special programs 11,084,838 11,084,838 11,084,838 11,084,838 11,084,838 Economic recovery 13,049,720 14,019,727 14,139,864 15,101,687 16,107,426 Prudent reserve Assigned, reported in:
19,355,215 38,297,703 44,281,431 47,834,064 44,665,573 Capital - - - - - Unassigned 52,415,890$ 70,336,946$ 76,700,996$ 79,977,246$ 78,125,273$ Total General fund All other government funds
Restricted, reported in:
9,806,362$ 11,661,964$ 12,013,585$ 12,312,601$ 12,890,551$ Housing programs 8,757,063 8,077,145 7,849,488 6,581,779 8,523,834 Public improvements 8,023,324 14,599,926 16,008,040 15,481,211 17,710,160 Streets and transportation 162,870 - - - - Landscape 1,456,124 1,324,129 1,324,129 903,812 - Debt service 4,464,783
4,509,530 4,762,883 5,308,559 5,913,914 Specialized programs 1,485,999 1,435,178 1,444,284 1,876,000 2,423,824 Law enforcement Committed, reported in:
2,739,696 3,137,771 15,610,695 15,125,290 15,022,502 Streets 6,674,465 7,709,947 6,073,233 7,601,056 7,979,671 Equipment Assigned, reported in:
- - - - - Capital - (509,396) (1,168,102) (1,106,432) (730,573) Unassigned Total all other
43,570,686$ 51,946,194$ 63,918,235$ 64,083, 876$ 69,733, 883$ gover nmental funds (Concluded)
Fiscal Year
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
164
214
2014-15 2015-16 2016-17 2017-18 2018-19
Revenues
Taxes 54,024,712$ 56,667,196$ 57,053,401$ 59,277,477$ 62,860,387$ Licenses and permits 1,965,120 2,561,293 2,158,210 2,523,744 2,618,558 Fines and forfeitures 613,301 597,889 403,841 568,456 562,503 Use of money and property 2,901,802 2,901,207 1,276,619 1,796,416 3,049,771 From other governments 9,489,007 7,715,746 7,094,051 8,092,405 10,014,798 Grants 4,650,237 3,858,045 4,417,808 2,838,349 2,933,635 Service charges 2,111,740 3,300,023 3,304,023 3,970,562 4,185,273 Other revenues 1,865,966 1,732,533 2,783,106 4,629,045 4,982,086 Contributions from other governments 376,588 - - - - Total revenues 77,998,473 79,333,932 78,491,059 83,696,454 91,207,011 Expenditures
Current:
General government 6,764,233 5,784,087 6,457,231 8,530,647 6,309,774 Community services 6,245,135 6,581,050 6,763,706 6,927,525 6,673,466 Planning 6,440,023 6,246,916 6,387,901 6,447,721 5,533,197 Public ways and facilities 14,791,346 15,988,868 16,076,033 16,467,229 15,610,695 Public safety 31,605,027 32,811,987 33,107,205 33,565,393 34,156,673 Capital outlay 4,987,471 3,362,875 16,914,455 7,153,833 17,291,140 Debt service:
Principal 270,000 - - 1,002,827 1,416,140 Interest 742,212 806,625 806,625 1,289,250 1,326,672 Refunding escrow 1,396,316 - - - - Bond issuance costs 194,069 - - - - Other 1,150 1,150 103,816 80,624 2,900 Total expenditures 73,436,982 71,583,558 86,616,972 81,465,049 88,320,657 Excess/(deficiency) of revenues
over expenditures 4,561,491 7,750,374 (8,125,913) 2,231,405 2,886,354 Other Financing Sources/(Uses)
Transfers in 12,214,657 8,301,888 18,175,804 13,912,428 20,421,754 Transfers out (15,503,671) (11,604,733) (21,320,599) (17,418,315) (26,518,011) 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 49,350 Contributions to other governments - (313,992) - - - Proceeds from sale of property - - - - - Subscription-based information technology arrangements - - - - - Total other financing sources/(uses) (3,086,982) (3,366,837) 7,072,283 10,641,324 (6,046,907) Net change in fund balances 1,474,509$ 4,383,537$ (1 ,053,630)$ 12, 872,729$ (3 ,160,553)$ Debt service as a percentage of non-capital expenditures 1.46% 1.20% 1.16% 3.10% 3.85% (Continued)
Fiscal Year
LAST TEN FISCAL YEARS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
CITY OF SIMI VALLEY
SOURCE:
City of Simi Valley
165
215
2019-20 2020-21 2021-22 2022-23 2023-24
Revenues
66,607,900$ 69,207,946$ 73,850,839$ 77,198,684$ 78,779,829$ Taxes 2,703,432 3,829,208 5,116,843 3,606,782 3,042,135 Licenses and permits 329,429 236,362 277,228 263,610 296,938 Fines and forfeitures 3,355,999 1,881,988 1,273,679 3,865,410 8,192,704 Use of money and property 9,601,415 9,692,508 10,253,814 12,560,545 13,460,983 From other governments 7,640,989 12,213,457 9,369,607 4,678,854 4,418,138 Grants 2,773,884 4,449,807 3,440,733 2,083,839 2,532,641 Service charges 3,008,689 3,365,342 3,060,740 2,951,551 3,418,393 Other revenues - - - - - Contributions from other governments 96,021,737 104,876,618 106,643,483 107,209,275 114,141,761 Total revenues Expenditures
Current:
9,906,448 10,139,013 10,433,996 14,997,382 19,911,594 General government 5,891,145 5,946,712 6,148,462 6,958,230 7,401,864 Community services 5,878,601 6,003,043 6,766,780 6,367,421 6,445,375 Planning 20,013,765 16,252,868 16,775,133 15,443,259 17,042,317 Public ways and facilities 36,325,983 35,513,526 36,293,174 37,413,274 38,311,082 Public safety 9,822,627 2,581,289 5,341,641 14,632,717 15,743,989 Capital outlay Debt service:
1,550,208 1,845,020 1,920,799 2,231,358 2,377,194 Principal 1,762,714 1,465,341 1,385,192 1,301,407 1,286,570 Interest - - - - - Refunding escrow - - - - - Bond issuance costs 6,400 6,314 4,801 6,901 3,973 Other 91,157,891 79,753,126 85,069,978 99,351,949 108,523,958 Total expenditures Excess/(deficiency) of revenues
4,863,846 25,123,492 21,573,505 7,857,326 5,617,803 over expenditures Other Financing Sources/(Uses)
15,259,176 10,912,021 23,040,297 21,696,840 26,683,205 Transfers in (17,456,285) (9,790,433) (26,332,213) (26,350,764) (29,408,531) Transfers out - - - - - Bonds issued - - - - - Payment to escrow agent 52,160 51,484 54,502 9,469 - Contributions from other governments - - - - - Contributions to other governments - - - 39,107 104,459 Proceeds from sale of property - - - 189,913 801,098 Subscription-based information technology arrangements (2,144,949) 1,173,072 (3,237,414) (4,415,435) (1,819,769) Total other financing sources/(uses) 2,718,897$ 26,296,564$ 18,336,091$ 3, 441,891$ 3, 798,034$ Ne t change in fund balances
4.18% 4.32% 4.19% 4.37% 3.92% Debt service as a percentage of non-capital expenditures (Concluded)
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
166
216
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Gross Assessed Valuation1
Total
Fiscal Residential Commercial Industrial Other Secured
Year Property Property Property Property Property
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 2023-24 20,380,091,594 1,784,957,979 1,270,430,685 469,250,049 23,904,730,307 (Continued)
NOTES:
2. Valuations are established by the CountyAssessor of the County of Ventura, except for property owned by private utility companies, which is valued by the State of California.
In 1978 the voters of theState of California passed Proposition 13which limited property taxesto a total maximum rate of 1% based upon theassessed value of the property being taxed.Each year, theassessed value of property may be increased by an"inflation factor" (limited to a maximum increase of 2%).With few exceptions, propertyis only reassessed at thetime that it is soldto a new owner. At that time, the newassessed value is reassessed at the purchase price of the property sold. Theassessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property andthis isthe data used for taxation purposes.
It is subject to the limitations described above.
1. For comparison purposes, gross assessed valuations includes homeowners' exemption. Although this exemption reduces property tax collections,a portion of the revenueloss is reimbursed by theState of California.
As such, gross assessed valuation is the revenue base used in establishing property tax-related revenues. 167
217
CITY OF SIMI VALLEY
ASSESSED VALUE AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Gross Assessed Valuation1
Total
Percent Direct Fiscal
Utility2 Unsecured Total Change Tax Rate Year
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 - 452,226,978 24,356,957,285 5.8% 1.00% 2023-24 (Concluded)
168
218
2014-15 2015-16 2016-17 2017-18 2018-19
Basic tax levy per Article 13A
of California State Constitution 1.0000 1.0000 1.0000 1.0000 1.0000 City 0.0000 0.0000 0.0000 0.0000 0.0000
Total direct 1.0000 1.0000 1.0000 1.0000 1.0000
Simi Valley Unified School District 0.0618 0.0541 0.0528 0.0791 0.0771 Metropolitan Water District 0.0035 0.0035 0.0035 0.0035 0.0035 Ventura Community College District 0.0176 0.0130 0.0155 0.0151 0.0152 Total direct and overlapping 1.0829 1.0706 1.0718 1.0977 1.0958 (Continued)
The tax rate information provided is for Tax Rate Area 9-006, the largest tax rate area in the City.
Overlapping rates are those of local and county governments that applyto property ownerswithin the City of Simi Valley. Not all overlapping rates applyto all Simi Valley property owners. Rates apply only to city property owners whose property is located within that district's geographic boundaries.
NOTES:
Fiscal Year
(rate per $100 of assessed value)
LAST TEN FISCAL YEARS
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
CITY OF SIMI VALLEY
169
219
2019-20 2020-21 2021-22 2022-23 2023-24
Basic tax levy per Article 13A
1.0000 1.0000 1.0000 1.0000 1.0000 of California State Constitution
0.0000 0.0000 0.0000 0.0000 0.0000 City
1.0000 1.0000 1.0000 1.0000 1.0000 Total direct
0.0594 0.0863 0.0922 0.0703 0.0436 Simi Valley Unified School District
0.0035 0.0035 0.0035 0.0035 0.0144 Metropolitan Water District
0.0143 0.0150 0.0148 0.0142 0.0035 Ventura Community College District
1.0772 1.1048 1.1105 1.0880 1.0615 Total direct and overlapping (Concluded)
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
CITY OF SIMI VALLEY
Fiscal Year
(rate per $100 of assessed value)
LAST TEN FISCAL YEARS
170
220
CITY OF SIMI VALLEY
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
PMI Villas, L.L.C. 142,259,117$ 1 0.68% Deleware Hidden Valley Grand Apartment, L.L.C. 109,381,708 2 0.53% CG-USA Simi Valley, L.P. 91,740,030 3 0.44%
NF Creekside Apartments, L.L.C. 82,619,029 4 0.40% IMT Capital V Wood Ranch, L.L.C. 79,577,030 5 0.38% Welltower Propco Group, L.L.C. 57,971,832 6 0.28% PMI Overlook, L.L.C 51,491,230 7 0.25%
SE-Shadow Ridge, L.L.C. 51,241,347 8 0.25%
Miracle Mile Properties, L.P. 38,716,221 9 0.19% Raas Nutritionals, L.L.C. 37,198,622 10 0.18%
Tishman Archstone & Smith 115,579,843$ 1 0.74% Fountains Apartments, Ltd. 78,561,594 2 0.51%
NF Creekside Apartments, L.L.C. 70,209,055 3 0.45% SE-Shadow Ridge, L.L.C. 63,910,188 4 0.41%
South Street Center, L.L.C. 53,515,042 5 0.34%
Fairfield Rancho Corrales 50,454,400 6 0.32%
Mountain Gate Associates, L.L.C. 44,500,000 7 0.29% MK RRP 400 National Way, L.L.C. 42,575,000 8 0.27% ESG Properties I, L.L.C. 42,255,807 9 0.27%
Simi Entertainment Plaza, L.P. 37,029,791 10 0.24% Total Taxable Assessed Value
Ten Largest Taxpayers 742,196,166$ 3.57% 598,590,720$ 3.85%
2024 2015
SOURCE:
HdL Coren Cone
171
221
Taxes Levied Collections in
Fiscal for the Percent Subsequent Percent
Year Fiscal Year1
Amount of Levy Years2
Amount of Levy
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% - 48,736, 264 97.33% 2023-24 54,496,940 53,141,890 97.51% N /A 53,141,890 97.51% NOTES:
2. As of the date of the fiscal year 2023-24 ACFR issuance, this information was not available from the Ventura County Auditor-Controller.
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
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.
SOURCE:
Ventura County Auditor-Controller
172
222
CITY OF SIMI VALLEY
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Lease Lease Total Percent of Debt
Fiscal Revenue Right-of-Use Right-of-Use Revenue Right-of-Use Primary Personal Per Year Bonds Leases SBITA Bonds SBITA Government Income4 Capita4 2015 20,414,513$ 1 -$ -$ -$ -$ 20,414, 513$ 0.45% 160. 96$ 2016 20,315,876 - - - - 20,315,876 0.43% 159.88 2017 30,184,317 2 - - - - 30,184, 317 0.59% 236. 93 2018 41,147,298 3 - - - - 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 2024 29,717,787 2,506,984 557,186 30,077,842 124,990 62,984,789 1.02% 506.87 NOTES:
There is no general bonded outstanding debt in the governmental funds.
Governmental
Activities
1. In August 2014, theCity issued $18,795,000 of 2014A Lease Revenue Refunding Bonds for the purpose offully refunding the 2004 Certificates of Participation issue with a carrying amount of $21,705,000. The 2004 Certificateswere refunded in full on August 26, 2014 and no portion of the 2004 Certificates remained outstanding as of June 30, 2015.
4. See Schedule of Demographic and Economic Statistics for personal income and population data.
2. In September 2016, theCity issued Lease Revenue Bonds, Series 2016 New Clean Renewable Energy Bonds(NCREBS), for $9,226,619, anda Tax-Exempt Lease, Series 2016, for $740,459, both maturing on September 1, 2036.
3. In December 2017, theCity issued Tax-Exempt Lease Series 2017, for $6,408,600, maturingMarch 1, 2033.In May 2018, theCity issued a Taxable Equipment Lease for $5,655,845, maturing in March 2034.
Business-Type
Activities
SOURCES:
City of Simi Valley
University of California, Santa Barbara
173
223
CITY OF SIMI VALLEY
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2024
Estimated Share
Outstanding Percentage of Overlapping
Overlapping and Assessment Debt Repaid with Property Taxes Debt 6/30/24 Applicable1 Debt 6/30/24 Metropolitan Water District 18,210,000$ 0.629 % 114,541$ Ventura County Community College District 230,510,458 14.104 32,511,195 Simi Valley Unified School District 282,515,588 96.967 273,946,890 City of Simi Valley Community Facilities Dist No.2004-1 4,985,000 100.000 4,985,000 City of Simi Valley 1915 Act Bonds 240,000 100.000 240,000 Overlapping Other Debt
Ventura County General Fund Obligations 274,135,000 14.101 38,655,776 Ventura County Superintendent of Schools Certificates 6,825,000 14.101 962,393 Total overlapping and assessment debt 351,415,795
City Direct Debt
City of Simi Valley 2014A Lease Revenue Refunding Bond 14,111,777 100.000 14,111,777 City of Simi Valley 2016 New Clean Renewable Energy Bond 6,725,090 100.000 6,725,091 City of Simi Valley 2016 Tax Exempt Energy Bond 522,975 100.000 522,975 City of Simi Valley 2017 Tax Exempt Bond 3,964,631 100.000 3,964,631 City of Simi Valley 2018 Tax Equipment Lease 4,393,313 100.000 4,393,313 Total direct debt 29,717,787
Total direct and overlapping debt 381,133,582$
NOTES:
There is no general bonded outstanding debt in the governmental funds.
1. For debt repaidwith property taxes,the percentage of overlapping debt applicableis estimated using taxableassessed property values. Applicable percentageswere estimated by determiningthe 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 governmentsare those that coincide, at leastin part, with the geographic boundaries ofthe City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses ofthe City. The process recognizesthat, when consideringthe City's abilityto issue and repay long-term debt, the entire debt burden borne bythe residents and businesses should be takeninto account. However, this does notimply 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.
174
224
2015 2016 2017 2018 2019
Debt limit 596,574,778$ 622,348,000$ 649,611,401$ 678,892,462$ 708,668,102$ Total net debt
applicable to limit - - - - - Legal debt margin 596,574,778$ 622,348,000$ 649,611, 401$ 678,892, 462$ 708,668, 102$ Total net debt applicable
to the limit as a
percentage of debt limit 0% 0% 0% 0% 0%
(Continued)
1. California Government Code Section 43605sets the debt limit at 15%. The Code section was enacted when assessed valuations were based on 25% of full market value. This hassince changed to 100% of full market value. Thus,the limit shown is 3.75% (one-fourth the limit of 15%).
NOTE:
LAST TEN FISCAL YEARS
LEGAL DEBT MARGIN INFORMATION
CITY OF SIMI VALLEY
Fiscal Year
175
225
2020 2021 2022 2023 2024
863,434,490$ 769,737,484$ 799,742,442$ 863,434,490$ 913,385,898$ Debt limit Total net debt
- - - - - applicable to limit 863,434,490$ 769,737,484$ 799,742,442$ 863,434, 490$ 913,385, 898$ 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 2024
Assessed value 24,356,957,285$
Debt limit (3.75% of assessed value)1 913,385,898
Less: General obligation bonds -
Legal debt margin 913,385,898$
Fiscal Year
CITY OF SIMI VALLEY
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
176
226
Personal Per Capita Public
Fiscal Income Personal Median School Unemployment
Year Population (in thousands) Income Age Enrollment Rate 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% 2024 124,262 6,172,960 49,677 42.4 15,648 4.4%
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
177
227
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 2,051 1 3.21% 2,441 1 3.49% Adventist Health, Simi Valley 971 2 1.52% 734 2 1.05% Aerovironment, Inc. 870 3 1.36% 460 6 0.66%
Meggitt Safety Systems, Inc. 683 4 1.07% 498 5 0.71% City of Simi Valley 509 5 0.80% 532 4 0.76%
Milgard Windows & Doors 456 6 0.71% 330 8 0.47% Rancho Simi Parks & Recreation District 426 7 0.67% 600 3 0.86% Entertainment Earth 164 8 0.26%
Polytainer, Inc. 156 9 0.24%
Coast to Coast Computer Products 151 10 0.24% Walmart 396 7 0.57%
Vons Grocery Store 283 9 0.40%
Costco 272 10 0.39%
Total 6,437 10.08% 6,546 9.35%
NOTE:
Of ninety employers surveyed by the City of Simi Valley, thirty-eight employers responded (42%). 2024 2015
SOURCES:
City of Simi Valley
State of California, Employment Development Department
178
228
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government 61 53 58 56 54 60 60 59 59 62
Community services 31 27 24 27 27 20 20 19 19 22
Planning 39 36 36 33 30 32 31 37 38 32
Public ways and facilities 90 87 87 87 83 80 78 83 86 83 Public safety
Sworn police personnel 123 121 121 115 118 123 112 114 120 122 Civilians 52 49 50 53 47 44 45 54 48 59
Sanitation 54 47 54 53 52 53 49 44 41 52
Waterworks District No. 8 43 45 41 40 41 35 32 38 38 37 Transit 39 38 42 40 40 38 37 36 37 40
Total 532 503 513 504 492 485 464 484 486 509
NOTE:
1. Employee totals by function as of June 30. Totals do not include temporary employees or part-time crossing guards.
LAST TEN FISCAL YEARS
CITY GOVERNMENT EMPLOYEES BY FUNCTION
CITY OF SIMI VALLEY
Fiscal Year1
SOURCE:
City of Simi Valley
179
229
CITY OF SIMI VALLEY
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government
Business tax applications
and renewals 9,643 9,709 9,437 9,028 9,403 7,675 7,223 8,092 8,225 7,537 Business tax receipts issued 8,563 9,480 8,366 7,922 7,315 7,396 7,779 8,912 8,525 7,610 Business tax revenues ($) 1,742,469 1,786,153 1,787,587 1,967,065 2,106,344 2,112,049 2,190,665 2,343,050 2,436,816 2,636,053 Community services
Cultural arts center events 354 378 392 369 370 357 - 176 338 396 Cultural arts center attendance 36,403 39,473 36,248 38,913 33,564 26,675 - 9,151 26,620 30,388 Senior center attendance 172,233 160,805 153,803 166,441 172,079 145,505 40,975 62,745 83,896 103,327 Library card holders 28,298 33,830 39,135 45,159 46,406 38,423 34,382 33,157 34,959 36,448 Library total collection 146,623 158,596 170,848 164,748 161,450 136,071 140,972 127,248 122,962 117,132 Library total circulation 330,838 333,068 285,089 299,182 317,085 333,683 247,680 362,358 412,936 396,409 Planning
Building permits 2,054 2,200 2,500 2,600 2,750 2,500 2,950 1,724 1,307 1,327 Plumbing, mechanical,
and electrical permits 3,213 2,950 3,400 3,640 3,750 3,200 3,450 3,918 4,807 4,614 Permit valuation ($ in thousands)1 41,766 66,800 76,800 71,300 76,740 63,500 65,750 216,662 94,948 93,920 Public safety
Arrests 3,459 3,377 2,939 3,134 2,964 2,381 1,762 1,473 1,436 1,663 Enforcement citations 8,308 8,300 6,936 8,988 8,230 4,703 2,454 3,340 3,809 4,392 Public ways and facilities
Street resurfacing (miles) 3.93 3.73 6.38 10.12 23.77 10.12 1.40 6.12 11.60 9.50 Sanitation
Wastewater customers 36,761 36,769 37,079 36,949 35,773 37,395 36,874 37,571 37,948 37,730 Average dry weather flow (million gallons per day) 8.10 7.80 7.70 7.92 7.78 7.78 7.70 7.60 7.70 7.80 Waterworks District No. 8
Customers2 25,585 25,664 25,558 25,433 25,622 25,251 25,548 25,666 25,867 25,869 Water delivered (million gallons) 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 4,441.0 Transit
Fixed-route revenue miles 426,057 404,857 380,354 378,284 376,506 387,056 409,044 407,112 401,305 402,067 Fixed-route passengers 378,452 333,619 364,810 251,917 266,718 181,098 121,642 131,392 161,404 190,162 Fixed-route revenue hours 25,551 25,346 26,904 27,340 26,727 25,282 26,788 29,816 26,993 26,808 Paratransit revenue miles 172,444 158,604 160,043 162,551 159,508 110,289 71,396 84,476 127,077 136,284 Paratransit passengers 45,364 43,485 45,009 43,406 50,134 29,133 22,394 33,238 45,432 49,085 Paratransit revenue hours 17,009 17,356 17,832 17,709 17,226 11,730 5,790 6,620 8,932 9,876 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 13,910 customers, serviced by Golden State Water Co. during fiscal year 2024.
Fiscal Year
SOURCES:
City of Simi Valley
Golden State Water Co.
180
230
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Public safety
Police stations 1 1 1 1 1 1 1 1 1 1
Fleet size 97 99 101 103 103 104 98 98 99 99
Public ways and facilities
Streets (miles) 332.69 336.41 337.57 337.57 337.57 337.57 337.57 337.73 337.73 337.73 Streetlights 8,225 8,223 8,243 8,268 8,479 8,382 8,382 8,382 8,382 8,382 Traffic signals 121 121 121 121 121 121 121 121 121 121 Sanitation
Sewerlines (miles)1 374 374 374 374 374 380 380 380 380 380 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) 380 380 380 337 345 345 345 345 331 331 Fire hydrants 2,844 2,844 2,844 2,875 2,850 2,874 2,853 2,853 2,854 2,856 Storage capacity
(million gallons) 55.8 55.8 55.8 55.8 55.8 55.8 55.8 55.8 55.8 55.8 Transit
Buses - 40 foot 8 8 8 8 8 8 8 5 5 5
Buses - 35 foot 3 3 3 3 3 3 3 6 6 6
Paratransit vehicles 11 11 12 12 12 12 12 12 12 12
NOTES:
No capital asset indicators are available for the general government, community services, or planning function.
1. Reduction in sewerlines (miles) in fiscal year 2024 reflects updates in GIS accuracy.
CITY OF SIMI VALLEY
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
SOURCES:
City of Simi Valley
181
231