CITY OF SIMI VALLEY
STAFF REPORT
Janu
ary 12, 2026
To: Cit
y Council
Board of Directors, Ventura County Waterworks District No. 8 Board of Directors, Simi Valley Public Facilities Financing Authority Board of Directors, Successor Agency to the Simi Valley Community Development Agency
Board of Trustees, Simi Valley Library
From: D
epartment of Administrative Services,
Carolyn Johnson, Administrative Services Director
Subj
ect: Receive and file Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024-25
Staff Recommendation
It
is recommended that the City Council/Boards of Directors/Board of Trustees:
1. Rec
eive and file the draft Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024-25 as submitted; and
2. Rat
ify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c);
Background
The A
nnual Comprehensive Financial Report (ACFR) for FY 2024-25 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, 2025, and is hereby submitted for acceptance by the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for FY 2024-25 received an “unmodified” opinion from the City’s independent auditor, which is the highest level of assurance an auditor provides, indicating the financial statements are free from material misstatement and comply with applicable accounting standards and reporting requirements.
The
draft ACFR was distributed to the City Council/Boards of Directors/Board of Trustees on January 7 , 2026, for advance review, and was placed on the City’s website on December 19, 2025, for public review. A copy of the draft ACFR was also made available for review by the public in the City Clerk’s Office and the Simi Valley Public Library.
AGENDA I
TEM NO.
Consent (1)
The draft Fiscal Year 2024-25 ACFR includes the following sections:
• Introductory Section
• Financial Section
• Statistical Section
E
ach year, the City submits its Annual Comprehensive Financial Report (ACFR) to the Government Finance Officers Association of the United States and Canada (GFOA) for review under its Certificate of Achievement for Excellence in Financial Reporting program.
In recognition of the City’s high standards in financial reporting, the GFOA has awarded the City of Simi Valley this distinction annually since fiscal year 1979–80. This recognition represents the highest obtainable professional governmental accounting award. The Certificate is also advantageous to the City’s reputation with bond rating agencies and the financial markets. The draft ACFR for FY 2024-25 has been submitted to the GFOA, and staff expect the City to receive the Certificate once again, for the 46 th year in a row.
F
or FY 2022-23 and prior, City staff presented the ACFR to 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 covers 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.
The A
CFR 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, City staff is presenting the ACFR for acceptance now rather than waiting for the Single Audit to be finalized later this year. The auditors will present the results of both audits to the City Council at a future meeting after the Single Audit is completed.
Discussion
A
summary of the information contained in each of the three sections of the draft ACFR is presented below:
I
ntroductory Section:
This section includes a transmittal letter that provides a profile of the government, information useful for assessing the government’s economic condition, awards and acknowledgements, a list of City officials, and an organization chart.
Fi
nancial 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 bee n included in this report:
• Cit
y of Simi Valley
• Ventura County Waterworks District No. 8
2 • Simi Valley Public Facilities Financing Authority
• Successor Agency to the Simi Valley Community Development Agency • Simi Valley Library
T
he Financial Section is further broken down into the following subcategories:
• M
anagement’s Discussion and Analysis
• Basic Financial Statements
o Government-wide financial statements consolidate the financial information for all the City’s operations on the full accrual basis of accounting. T hese statements have a “net position” focus and exclude interfund transactions. o Fund financial statements present major funds individually, and non -major funds in aggregate, including budget-to-actual comparisons for major funds that have legally adopted annual budgets, proprietary fund statements, and fiduciary fund statements.
o 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.
S
tatistical Section:
The Statistical Section contains general statistical information about the community and City organization, including:
• N
et 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 Taxpayers
• 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
A
s 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 City's financial position 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 Y ear 3 2024-25 represents the fourth year of a five-year audit contract 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.
I
n 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.
Financial Impact
R
eceiving and filing the ACFR has no direct financial impact, as it does not authorize new transactions or alter the City’s budget. However, it is a key accountability measure that ensures the City Council maintains oversight of the City’s finances.
City Council Priority
T
he ACFR supports the Excellent City Government Pillar of Excellence by promoting accountability and transparency in financial operations. By reviewing and approving the report, the City Council demonstrates responsible stewardship and reinforces public trust in how taxpayer and ratepayer dollars are managed, invested, and spent to serve the community’s best interests.
Suggested Motion
I
move to receive and file the F iscal Year 2024- 25 Annual Comprehensive Financial Report (ACFR) and ratify and approve the audited financial statements presented therein, consistent with Government Code Section 37208(c).
Summary
T
he draft Annual Comprehensive Financial Report (ACFR) for F iscal Year 2024-25 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, 2025, and is hereby submitted to the City Council/Boards of Directors/Board of Trustees. The City’s financial statements for Fiscal Year 2024-25 have received an “unmodified” opinion from an independent auditor, indicating no areas of material misstatement.
P
repared by: Marvin Lopez, Deputy Administrative Services Director, Fiscal Services A
ttachment
A
ttachment A – Draft Annual Comprehensive Financial Report (ACFR) for FY 2024-25 4 City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
5 Attachment A
City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
6 7
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2025
TABLE OF C
ONTENTS
INTRODUCTORY S
ECTION PAGE
Transmitt
al Letter ............................................................................................ i Officials of the City of Simi Valley .................................................................... xi Organization of the City of Simi Valley ............................................................. xii Certificate of Achievement for Excellence in Financial Reporting .................... xiii
FINANCIAL SECTION
Indepen
dent 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 Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities – Governmental 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 Table of Contents (continued)
PAGE
Notes to the Basic Financial Statements
Notes ......................................................................................................... 42
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan ................................................................................. 110 Schedule of Pension Plan Contributions – Miscellaneous Plan .................. 112 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan .............................................................................................. 114 Schedule of Pension Plan Contributions – Safety Plan ............................... 116 Schedule of Changes in Net OPEB Liability and Related Ratios ............... 118 Schedule of OPEB Plan Contributions ........................................................ 120 Schedule of Annual Money-Weighted Rate of Return on OPEB Plan Investments……………………………………………………………………. 122
Supplementary Information
Nonmajor Governmental Funds
Description of Nonmajor Governmental Funds ....................................... 124 Combining Balance Sheet ....................................................................... 127 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...................................................................................... 132
Schedules – Budget and Actual – Individual Funds
CalHome Grant Fund .............................................................................. 137 HOME Grant Fund .................................................................................. 138 Planning Grants Fund ............................................................................. 139 Permanent Local Housing Grant Fund……………………………………... 140 Public Education and Government Fees Fund ........................................ 141 Gasoline Tax Fund .................................................................................. 142 Road Maintenance and Rehabilitation Account Fund ............................. 143 Transportation Funds .............................................................................. 144 Library Services Fund .............................................................................. 145 Opioid Settlements Fund .......................................................................... 146 Police Grants Fund ................................................................................. 147 Community Development Block Grant Fund ........................................... 148 Landscape Maintenance District No. 1 Fund ............................................ 149
Internal Service and Fiduciary Funds
Combining Statement of Net Position – Internal Service Funds ............... 150 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ......................................................... 151 Combining Statement of Cash Flows – Internal Service Funds ............... 152 Combining Statement of Fiduciary Net Position – Private-Purpose Trust Funds .................................................................................................... 153
9 Table of Contents (continued)
PAGE
Internal Service and Fiduciary Funds (Continued)
Combining Statement of Changes in Fiduciary Net Position – Private- Purpose Trust Fund .............................................................................. 155 Combining Statement of Fiduciary Net Position – Custodial Funds ........ 157 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ..................................................................................... 158 Combining Statement of Fiduciary Net Position – Pension And Other Postemployment Benefits (OPEB) Trust Funds .................. 159 Combining Statement of Changes in Fiduciary Net Position – Pension And Other Postemployment Benefits (OPEB) Trust Funds ..... 160
STATISTICAL SECTION (UNAUDITED)
Description of Statistical Contents ............................................................. 161
Financial Trends
Net Position by Component – Last Ten Fiscal Years ........................... 162 Changes in Net Position – Last Ten Fiscal Years ................................. 164 Fund Balances of Governmental Funds – Last Ten Fiscal Years ......... 168 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................................................... 170
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................................................................ 172 Direct and Overlapping Governments – Property Tax Rates – Last Ten Fiscal Years ...................................................................... 174 Principal Property Taxpayers – Current Year and Nine Years Ago ...... 176 Property Tax Levies and Collections – Last Ten Fiscal Years ............... 177
Debt Capacity
Ratios of Outstanding Debt by Ty pe – Last Ten Fiscal Years .............. 178 Computation of Direct and Overlapping Debt ........................................ 179 Legal Debt Margin Information – Last Ten Fiscal Years ....................... 180
Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Fiscal Years ........... 182 Principal Employers – Current and Nine Years Ago ............................. 183
Operating Information
City Government Employees by Function – Last Ten Fiscal Years ...... 184 Operating Indicators by Function – Last Ten Fiscal Years ................... 185 Capital Asset Statistics by Functi on – Last Ten Fiscal Years ............... 186 10 11
INTRODUCTORY SECTION
INTRODUCTORY SECTION
12 Dee Dee Cavanaugh, Mayor Mike Judge, Mayor Pro Tem Elaine P . Litster, Council Member Rocky Rhodes, Council Member Joseph D. Ayala, Council Member Home of The Ronald Reagan Presidential Library
i
December 15, 2025
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 (ACFR) of the City of Simi Valley (City) for the fiscal year ended June 30, 2025.
This report consists of management’s representations concerning the finances of the City.
Accordingly, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed to protect the government’s assets from loss, theft, or misuse, and to compile sufficient, reliable information for the preparation of the City’s financial statements in conformity with GAAP. The cost of internal controls should not outweigh their benefits; therefore, the City’s comprehensive framework of internal controls is designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects.
Vasquez & Company, LLP, a firm of licensed certified public accountants, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2025, 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 ii
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 avail able in the City’s separately issued Single Audit Report.
GAAP require that management provides a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.
Profile of the City of Simi Valley
The City, incorporated in 1969, has a population of 122,617 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 City operates under the Council-Manager form of government. The City’s four Council Members are elected by district to staggered four-year terms. This election system divides the City into four geographic sect ions. Voters in each district select one Council representative who also lives in that district. 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 t he Simi Valley Public Facilities Financing Authority, and as Board Trustees for the Simi Valley Public Library.
The City Council appoints both the City Manager and the City Attorney. The City Manager heads the executive branch of the governme nt, implements City Council directives and policies, and manages the administration and operational functions through the various department heads. The City Manager is responsible for the appointment of department heads and the City Clerk and serves as the City Treasurer.
Four operating departments report to the City Manager: Police, Public Works, Administrative Services, and Environmental Services. The 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 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.
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The annual budget serves as the foundation for the City’s financial planning and control.
The budget also contains detailed goals and objectives, a working financial plan, and financial projections for the departments and agencies that comprise the City’s governmental structure.
The City reports on a fiscal year basis from July 1 to June 30. Departments and agencies submit current draft proposed budgets, requests for budget increases (policy items), requests for replacement of equipment items (capital asset requests), and possible budget reductions (reduction proposal) to the 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 (the level at which management cannot overspend the budget without the approval of the governing body).
The City Council has the 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.
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.
Factors Affecting Financial Condition
The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City operates.
Local Economy. The City navigated a cautious economic environment consistent with trends across Ventura County and the State of California. Three primary factors—limited housing inventory, high interest rates and borrowing costs, and moderate consumer spending—have shaped the performance of the City’s major general revenue streams.
The impact of these items is as follows.
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Property tax revenues totaled $46.1 million in fiscal year 2024-25 and remain the City’s largest and most resilient revenue source. This represents an increase of $2.0 million, or
4.4%, as compared to the prior fiscal year, driven primarily by Proposition 13 valuation adjustments and prior year housing turnover that carried into the current year tax roll.
With interest rates beginning to ease, housing market activity picked up modestly in the current year, and those additional transactions are expected to support continued strength in property tax revenues when the new assessed values are reflected on the fiscal year 2025-26 tax roll.
Sales tax, the City’s second largest general revenues source, totaled $23.3 million this fiscal year, a slight increase of $0.3 million, or 1.2%, as compared to the prior fiscal year.
The stagnant sales tax revenues are primarily due to inflation and higher interest rates, which have constrained household and business spending. In addition, ongoing housing affordability pressures have contributed to a slight population decrease that reduced local economic activity. This trend is expected to continue as we go into the new fiscal year.
Franchise taxes, business taxes, and other taxes also showed modest growth this year, totaling $11.9 million, which is a combined increase of $0.2 million, or 2.1%, as compared to the prior fiscal year, due to the same economic factors discussed above.
These economic factors are further reflected in the City’s unemployment rate, which increased to 4.8% as of June 30, 2025, as compared to 4.4% as of June 30, 2024. This increase is consistent with observations State-wide.
The City’s commercial and industrial base continues to be diverse. Major industries with headquarters or divisions located within the City’s boundaries, or in close proximity, include education, health care, aerospace and defense, industrial products manufacturing, retail and consumer goods, real estate lending, computer hardware, and light manufacturing.
During this fiscal year, the City experienced growth in residential development, with 383 new housing units built compared to the previous period of 124 new units built. This is the result of the subject-reporting period being on an on-cycle year, where the construction of new units was completed and made available for occupancy. This differs from an off-cycle year where entitled projects are under preconstruction review or under construction. Comparing on-cycle years, residential development for single-family ownership has been trending downward.
For our region with high cost of living, single-family housing products are too expensive for young and growing families of the workforce. Instead, the housing industry is responding to the demand for multi-family housing including attached condominiums and rental apartments as the attainable housing options. Furthermore, accessory dwelling units (ADUs) serve as an economic stabilizer by expanding housing supply, providing supplemental housing for family members, and generating passive rental income for homeowners, with demand remaining robust for four consecutive years.
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Our region continues to experience severe housing unaffordability and, as such, the State’s persistence to solve the housing crisis mandates all local municipalities, including Simi Valley, to zone and allow developers to invoke state prescribed remedies to stimulate housing production. These remedies include density bonus, housing development on religious institution property, and financial incentives. As a result, development revenues have remained strong, supported by the processing of housing applications that help owners and developers secure entitlements, advance shovel-ready projects, and move forward with construction from previously approved projects in the City’s housing development pipeline.
Entitled projects include two condominium communities and one apartment community as follows: a 70-unit, multi-family-detached residential condominium community located at 1845 Oak Road – the former Phoenix Ranch School site; a 26-unit, multi-family- detached residential condominium townhome development located at 4868 Cochran Street – the Korean Baptist Church property; and an 80-unit, multi-family-attached apartment community located at 4910 Cochran Street – the Lighthouse Church property.
Projects completed include the Alamo Street Apartments with 271 multi-family rental units targeting mixed- and low-income tenants. Seven single-family homes were completed and delivered at various residential subdivisions including Pacific Royal Oaks and the Woodlands. Additionally, ADUs built throughout the City further contributes to the variety of the City’s housing stock, with an estimated 105 ADUs built compared to the previous period of 90 ADUs built.
Long-term Financial Planning. Accounting for the economic factors discussed above, the City adopted a structurally balanced fiscal year 2025-26 budget, which reflects our commitment to fiscal prudence and targeted investment amid ongoing local and national headwinds. We anticipate that shifting consumer behavior, driven by tariffs, cautious household spending, and continued growth in e-commerce and logistics, will moderate revenue growth in the year ahead. By pairing conservative revenue assumptions with disciplined spending controls, the City will preserve core services, strengthen reserve levels, and fund priority capital projects and modernization efforts that sustain long-term resilience and community quality of life.
As part of the annual budget process, the City updates its Five-Year General Fund Financial Projection to identify and address structural issues while continuing to maintain sufficient cash reserves and provide quality service to residents into the future without the need for significant additional local revenues. The forecast shown in the fiscal year 2025- 26 adopted budget includes projections for most revenue types with a conservative 1% - 3% per year inflationary growth. Projections on the expenditure side include a 3.5% growth in personnel costs for fiscal year 2026-27 and a 3% growth each year thereafter; a 2% growth in materials and supplies for fiscal year 2026-27 and 1% growth each year thereafter; a 2% growth in services each year; and a 1% inflationary growth for most other expenditure types.
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In December 2024, the City closed-out its state-funded, one-time planning grants programs under Senate Bill 2 (SB-2) and Local Early Action Planning (LEAP). With the grants received, the City created the Envision Simi Valley Specific Plan (the Envision) with new zoning and objective development standards for the Los Angeles Avenue Corridor and the Tapo Street Area (extending to the Metrolink Station). The Envision’s new development standards would repurpose underutilized and underperforming commercial retail centers, further improve housing capacity, streamline the construction of future housing projects, and facilitate affordability.
Following through with Envision’s implementation program, the City received $60,000 in state Regional Early Action Planning (REAP 2.0) grants through partnership with the Southern California Association of Governments (SCAG) and the Ventura County Council of Governments (VCOG). The grant funding allows this regional partnership to create conceptual infill redevelopment plans for the Simi Valley Metrolink Train Station site, and to demonstrate how a developer can apply the Envision Simi Valley Specific Plan’s development standards and design principles.
As year 2030 marks another approaching milestone where the Housing Element Update and the Regional Housing Needs Assessments (RHNA) would again converge with the Decennial Census, the City’s General Plan is also due for its 20-year update. The current General Plan, adopted in 2012, followed a five-year comprehensive update program initiated in 2007 at a cost of $1.0 million. In essence, the Envision is the prelude to the City’s future General Plan Update as it focuses on high-impact development areas of the City to ensure consistency, connectivity, and continuity through objective standards, while imposing minimal development impact to the existing residential neighborhoods, ensuring protection of our hillsides from urban sprawl, and safety within the City.
The SB-2 grant continued to provide recurring 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.
Despite a cautious financial environment, the City continues to be fiscally conservative, maintaining a prudent set-aside amount in committed fund balance which equals 17.0% of the General fund expenditure budget. Overall, the City has a total ending General fund balance of $80.8 million, a very healthy and stable position. The total bonded debt of the City is currently $55.9 million, decreasing from $59.8 million in the prior fiscal year. The decrease is attributed to $3.9 million of debt service principal payments made throughout this fiscal year.
The total debt of the Successor Agency to the Community Development Agency, reported in the fiduciary funds, is $10.7 million, with a debt service requirem ent of principal and interest for approximately $2.1 million in the next fiscal year, which is now paid through the County Redevelopment Property Tax Trust Fund (RPTTF). 18 vii
Financial Policies. The City adheres to its adopted financial policies to promote sound financial management, maintain strong bond ratings, lower the cost of capital, provide assurance to taxpayers that tax dollars are being collected and spent per City Council direction, and minimize unexpected impacts on taxpayers and users of public services.
Accordingly, the City adopts and maintains a structurally balanced budget by ensuring that annual ongoing operating revenues meet or exceed ongoing operating expenses and maintains a prudent General fund reserve balance of 17% of budgeted expenditures.
As a result of conservative revenue growth assumptions paired with a structurally balanced budget, the City’s General fund may close any given fiscal year in a surplus position. To ensure strategic financial management of potential surpluses, the City established 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.
The City’s Water and Sanitation enterprise funds are self -supporting such that fees for operating services will be maintained at a level adequate to cover all operating expenses and maintain replacement reserves sufficient to provide for safe, working infrastructure.
The City’s Transit enterprise establishes fees that both recover a portion of the cost of providing the service and encourage the community to use public transportation.
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.
x Launch a targeted business attraction campaign focusing on aerospace, bioscience, and film industries.
x Develop a comprehensive retail attraction program to help fill vacant commercial spaces across the city.
x Promote film production and tourism to boost local economic activity and enhance Simi Valley’s regional visibility.
x Ensure competitive compensation and succession planning for Police and City staff.
x Evaluate opportunities to enhance efficiency and cost-effectiveness in City service delivery, including through potential public-private or non-governmental partnerships.
x Explore the integration of artificial intelligence (AI) tools to improve service delivery and reduce operational costs.
x Implement the City's Economic Development Strategic Plan. x Partner with Simi Valley Town Center ownership to revitalize the center, ensuring a balanced and sustainable development that will benefit the community. x Research and potentially implement a software solution to improve the efficiency of the internal workflow for Agenda Management.
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x Collaborate with community partners including Rancho Simi Recreation and Park District, Ventura County Area Agency on Aging, and the Simi Valley Public Library to expand on educational and social offerings at the Senior Center. x Initiate Senior Center patio cover project by securing architectural services for design proposals and soliciting proposals for construction costs. x Develop a Five-Year Strategic Plan for the Cultural Arts Center to maintain its commitment to providing outstanding programming that reflects current population demographics, ensuring alignment with the center’s mission while leveraging the historical importance of its building, and outlining strategies to adapt to future needs of the community.
x Successfully enforce violations of the Municipal Code, including Code Enforcement matters.
x Purchase equipment and services to support the City’s transition to the regional radio system.
x Implement solutions in response to a citywide cybersecurity analysis. x Finalize the implementation of accounts payable ACH payments. x Evaluate, develop, and integrate an eProcurement and contract management solutions that will help improve efficiency, reduce paper-based processes, increase tracking capabilities, and streamline the City's decentralized procurement function. x Adopt and implement an updated Purchase Ordinance and administrative policies to streamline the procurement process, establish clear responsibilities, ensuring all activities comply with relevant laws, regulations and best practices while promoting a fair and competitive environment to receive the best value for goods and services. x Begin implementation of a Public Works asset management and work order system.
x Identify and implement City Development Code amendments to encourage and streamline residential and non-residential development and adjust standards to promote establishment and recruitment of commercial and industrial businesses to the City, and to create objective design standards for citywide residential projects in order to maintain consistency with the City’s design expectations and ensure local control.
x Work closely with housing developers by implementing required housing element programs to promote affordable and workforce housing, including emphasis on projects located on sites identified for units to satisfy the City's share of the RHNA. x Begin implementation of the Envision Simi Valley Specific Plan by encouraging the development of underutilized sites within the plan area and promoting the benefits of the plan with the development community.
x Oversee the inspection of 6.1 million cubic yards of grading and $20 million in public street, sewer, water and storm drain improvements for Phase 1 of the Lost Canyons Subdivision project.
x Oversee 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. x Implement a new water conservation/ornamental turf reduction project within the City using newly implemented state grant funding.
20 ix
x Complete the continuing update of the current sign and pavement marking inspection and replacement program along with the replacement of faded overhead signage.
x Educate the community about the state-mandated organic recycling law (SB1383) in partnership with Waste Management.
x Provide Police Department personnel training related to social and cultural issues. x Implement Axon VR, a virtual reality training platform for law enforcement, providing immersive scenarios to enhance critical thinking, de-escalation techniques, and weapon proficiency, ultimately improving officer effectiveness and community relations.
x Build on the success of the Unmanned Aerial Vehicle UAV/Drone Program by expanding its operational use across a wider range of department functions to maximize program effectiveness.
x Focus traffic enforcement efforts at locations with the highest incidence of collisions and increase enforcement on Primary Collision Factor violations to decrease intersection related collisions.
x Create a five-year training and exercise plan for the emergency operations center (EOC) staff, incorporating partner agencies.
x Construct the Civic Center Transit hub.
x Procure four electric Dial-A-Ride replacement vans, six zero emission buses, and three electric vans for the Transit enterprise.
x Install on-board monitors and displays and air purification systems in fixed route vehicles.
x Resurface major and minor streets, repair sewer lines at multiple locations throughout the city, replace the water system pumps, and replace and standardize the City’s existing computer-based system at the Water Quality Control Plant.
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-ta x proceeds are not subject to the limit.
Exemptions are also made for voter-approved debt and debt that existed prior to January 1, 1979, and for the cost of compliance with court or federal government mandates. Fiscal year 1978-79 appropriations serve as the basis for this limit, with adjustments being made annually to reflect increases in population, the cost of living, and service responsibility transfers. The City’s appropriations limit for the fiscal year ended June 30, 2025, was $100,103,270. 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 ACFR for the fiscal year ended June 30, 2024. This was the 45
th consecutive year (fiscal years ended 1980-
2024) that the City received this prestigious award. To be awarded a Certificate of 21 x
Achievement, a government agency must publish an easily readable and efficiently organized ACFR. This report must satisfy both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. The City believes that its curr
ent 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 dedica
ted 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.
Additionally, I would like to thank the Mayor, City Council Members, and City Manager for their
continued direction and support in planning and conducting the financial operations of the City in a progressive and responsible manner.
Respectfully submitted,
Carolyn Johnson
Admi
nistrative Services Director
22 OFFICIALS OF THE CITY OF SIMI VALLEY
(as of June 30, 2025)
Members of the City Council
D
EE DEE CAVANAUGH, Mayor
MIKE JUDGE, Mayor Pro Tem
ELAINE P. LITSTER, Council Member
ROCKY RHODES, Council Member
JOSEPH D. AYALA, Council Member
Administrative Staff
Samantha C. Argabrite ............................................................................................. City Manager Algeria R. Ford ......................................................................................................... City Attorney Carolyn Johnson ......................................................................... Administrative Services Director Stratis Perros ............................................................................. Environmental Services Director Ron Fuchiwaki ............................................................................................ Public Works Director Steve Shorts .......................................................................................................... Chief o f Police xi
23 • 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
2I¿FHRI(PHUJHQF\
Services
• Patrol Bureau
• Community Policing
Bureau
7UDI¿F%XUHDX
• Detective Bureau
• Special Enforcement
Bureau
• Professional Standards
Bureau
• Communications Bureau
• Records Management
Bureau
• Fiscal Services Unit
• Maintenance Unit
• Administration
• City Engineering
7UDI¿F(QJLQHHULQJ
• 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
xii
24 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, 2024
Executive Director/CEO
xiii
25 26
FINANCIAL SECTION
FINANCIAL SECTION
27 City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
INDEPENDENT AUDITOR’S REPORT
28 29
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, 2025, 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, 2025, and the related notes to the basic 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, 2025, 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.
30 2
Emphasis of Matter
Implementation of New Accounting Standards
As discussed in Note I-D, the City implemented the provisions of Governmental Accounting Standards Board Statement No. 101 , Compensated Absences , and Statement No. 102, Certain Risk Disclosures , during the fiscal year ended June 30, 2025 . Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial 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 is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
31 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
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios - miscellaneous and safety plans, schedules of pension plan contributions - miscellaneous and safety plans, schedule of changes in net OPEB liability and related ratios, schedule of OPEB plan contributions, and schedule of annual money -weighted rate of return on OPEB plan investments 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.
32 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 statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued a report dated December 15, 2025 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 15, 2025
33 MANAGEMENT’S DISCUSSION
AND ANALYSIS (UNAUDITED)
MANAGEMENT’S DISCUSSION
AND ANALYSIS (UNAUDITED)
34 CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
City of Simi Valley
Management’s Discussion and Analysis
(UNAUDITED)
The management of the City of Simi Valley ( City) provides this narrative overview and analysis of the financial activities of the Ci ty for the fiscal year ended June 30, 2025.
Please consider this information in conjunction with additional information that has been furnished in the letter of transmittal, which is located in the Introductory Section of this report.
Financial Highlights
x At the close of the fi scal year, the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $512.9 million. x The City’s total net posit ion increased by $39.8 mill ion. This increase was comprised of a $23.0 million increase in net investment in capital assets, a $2.8 million increase in restricted net posit ion, and a $14.0 million increase in unrestricted net position. The increase in net investment in capital assets is a result of additional assets purchased or constr uction-in-progress completed during the fiscal year, net of related depreciation. T he increase in restricted net position is primarily due to the increases in funds restricted for transport ation ($1.1 million, net of $11.6 million in funds previously included under restricted for capital projects), funds restricted for sewer and waterworks capital projects ($0.9 million), funds restricted for community developmen t ($0.6 million, net of $3.3 million in funds previously included under funds rest ricted for community services), funds restricted for capital projects ($0.6 m illion, net of $11.6 million which are now included under funds restricted for transpor tation), offset by a decrease in funds restricted for public safety (-$0.4 million). The large increase in unrestricted net position is primarily due to increases in the sanitation ($9.8 million) and waterworks ($9.5 million) unrestricted net positions offset by a decrease in the governmental unrestricted net position (-$2.8 million).
x The City’s total program and general revenues increased by $32.0 million. Charges for services increased by approximately $18.7 million as discussed below in the Government-Wide Financial Analysis section of the Management Discussion and Analysis. Grants and contributions revenues increased $7.3 million, also discussed below. Meanwhile, City tax revenue sources, including property, sales, franchise, business, and other taxes held strong, resulting in a combined increase this year of approximately $2.5 million. Lastly, investment earnings increased by $3.1 million primarily due to a larger investment portfolio as compared to the prior fiscal year along with favorable market conditions.
x As of the close of the cu rrent fiscal year, the City’s governmental funds reported combined ending fund balances of $152.7 milli on, an increase of $4.8 million in comparison with the prior fiscal year. Of the ending fund balance, approximately
2.3% or $3.6 million is Nonspendable in form for long-term receivables and prepaid 5 35
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
items; 29.7% or $45.3 million is Restricted for housing programs, law enforcement, public improvements, special programs, and streets and transportation; 39.0% or $59.6 million is Committed for contingen cy, economic recovery, equipment, infrastructure, prudent reserve, and specialized programs; 1.5% or $2.2 million is Assigned for encumbrances; and 27.5% or $42.0 million is Unassigned.
x At the end of the current fiscal year, the Prudent Reserve established by the City Council totaled $17.0 million. This portio n of Committed fund balance for the General fund is equal to 17.0% of budgeted General fund expenditures.
Overview of the Financial Statements
This discussion and analysis is intended to serv e as an introduction to the City’s basic financial statements. The basic financial statements include three components:
1) Government-wide financial statements,
2) Fund financial statements, and
3) Notes to the financial statements.
In addition, this report contains Required Supplementary Information , Supplementary Information, and Statistical Information.
The following diagram displays the interrelationships of this report.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a privat e-sector business.
The City has presented information from prio r fiscal years in this discussion for comparative purposes.
FINANCIAL STATEMENTS
Government-Wide (Full Accrual)
Governmental Activities
Business-Type Activities
Fund
Governmental (Modified Accrual)
Proprietary (Full Accrual)
Fiduciary (Full Accrual)
REQUIRED SUPPLEMENTARY INFORMATION
Notes to the Financial Statements
MANAGEMENT'S DISCUSSION AND ANALYSIS
6 36
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The statement of net position presents information on all of the City’s assets and deferred outflows of resources, and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial standing of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).
The government-wide financial st atements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City include general government, community services, planning, public safety, and public ways and facilities. The business-type ac tivities of the City include sanitation, Ventura County Waterworks District No. 8, and transit.
Fund financial statements
A fund is a grouping of related acc ounts that is used to mainta in control over resources that have been segregated for spec ific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the governmen t-wide financial stat ements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmen tal funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the government al fund statement of re venues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains over 70 individual governm ental funds and sub-f unds in its financial system and presents them grouped by related activities as four major and 26 nonmajor 7 37
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
separate governmental funds for this report. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the four major funds: the General fund, the Successor Housing Agency (SHA) to Community Development Agency Housing Administration fund, the Development Rela ted Fees fund, and th e Streets and Roads fund. Data from the other 26 governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these nonm ajor 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.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the sa me functions presented as business-type activities in government-wide financial statements. The City uses enterpris e funds to account for its sanitation, waterworks, and transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its liability insurance and workers’ compensation insurance operations, the geographical information system and permitting system operations, and the financial information systems operations. Because the internal service operations predominantly benefit governmental rather than business- type functions, they have been included within governmental activities in the government- wide financial statements e xcept for any residual balanc es outstanding between the governmental activities and business-type activities which are reported in the government-wide financial statements as “internal balances.”
Proprietary funds provide the same type of information as the government-wide financial statements, but in gr eater detail. The proprietary fu nd financial statements provide separate information for the sanitation, waterw orks, and transit operations, all of which are considered major funds of the City. C onversely, the internal service funds are combined into a single, aggregated presentat ion in the proprietary fund financial statements. Individual fund data for the internal service funds are provided in the form of combining statements in the Supplementary Information section of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the governmen t. The City holds these funds in a custodial capacity.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s programs. Individual fund data for the fiduciary funds is provided in the form of combining schedules in the Supplementary Information section of this report.
8 38
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
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 resources, and liabilities of the Successor Agency to the former Community Development Agency and its allocated revenue to pay esti mated 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 distri ct bondholders and initiating foreclosure proceedings, if appropriate. The Pension and OPEB Trust funds account for the assets, contributions, administration expenses, and benefit payments related to the City’s Public Agency Retirement Services (PARS) Retirement and OPEB plans.
Notes to the basic financial statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and OPEB to its employees.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information.
Statistical tables regarding fiscal trends, re venue capacity, debt capacity, demographic and economic information, and operating informati on can be found in the last section of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $512.9 million at the close of the most recent fiscal year.
A significant portion of the City’s net position (72.4%) reflects its net investment of $371.2 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 pr ovide 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 deb t, 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.
9 39
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
An additional portion of the City’s net position (18.7%) r epresents resources of $96.2 million that are subject to external restrictions on how they may be used. The remainder of the City’s net position of $45.5 million represents unrestricted net position (8.9%).
Unrestricted net position may be used at the Cit y’s discretion to meet the City’s ongoing obligations to citizens and creditors.
2025 2024 2025 2024 2025 2024
Current and other assets 232,549,985$ 218,188,009$ 170,437,012$ 145,445,117$ 402,986,997$ 363,633,126$ Capital assets 254,070,230 246,878,002 176,112,480 166,024,153 430,182,710 412,902,155 Total assets 486,620,215 465,066,011 346,549,492 311,469,270 833,169,707 776,535,281 Deferred outflows 41,966,253 62,921,203 7,303,453 12,078,619 49,269,706 74,999,822 Long-term liabilities
outstanding 241,419,959 249,057,991 66,029,082 70,295,459 307,449,041 319,353,450 Other liabilities 20,616,702 14,650,339 13,687,801 9,668,740 34,304,503 24,319,079 Total liabilities 262,036,661 263,708,330 79,716,883 79,964,199 341,753,544 343,672,529 Deferred inflows 20,928,768 27,467,992 6,876,438 7,354,102 27,805,206 34,822,094 Net position:
Net investment in capital
assets 223,978,037 214,227,084 147,217,235 133,921,622 371,195,272 348,148,706 Restricted 81,383,282 79,502,386 14,778,358 13,900,255 96,161,640 93,402,641 Unrestricted (59,740,280) (56,918,578) 105,264,031 88,407,711 45,523,751 31,489,133 Total net position 245,621,039$ 236,810,892$ 267,259,624$ 236,229,588$ 512,880,663$ 473,040,480$ City of Simi Valley's Net Position
June 30, 2025 and 2024
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 require ments for all local governments now to recognize their liabilities for unfunded pension and OPEB obligations. 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 40
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
2025 2024 2025 2024 2025 2024
Revenues:
Program Revenues:
Charges for services 14,994,597$ 8,742,432$ 87,497,021$ 75,097,500$ 102,491,618$ 83,839,932$ Operating grants and
contributions 22,078,646 17,978,707 3,765,639 3,521,891 25,844,285 21,500,598 Capital grants and
contributions 1,638,746 940,645 4,728,813 2,424,619 6,367,559 3,365,264 General Revenues:
Property taxes 46,061,400 44,105,061 - - 46,061,400 44,105,061 Other taxes 35,180,457 34,674,768 - - 35,180,457 34,674,768 Investment earnings 9,220,382 8,134,385 7,710,558 5,667,740 16,930,940 13,802,125 Other 124,110 104,459 531,965 130,569 656,075 235,028 Total revenues 129,298,338 114,680,457 104,233,996 86,842,319 233,532,334 201,522,776 Expenses:
General government 41,907,007 37,729,276 - - 41,907,007 37,729,276 Community services 8,548,898 8,184,706 - - 8,548,898 8,184,706 Planning 6,396,052 7,105,430 - - 6,396,052 7,105,430 Public safety 42,605,494 40,173,347 - - 42,605,494 40,173,347 Public ways and facilities 23,398,163 22,331,792 - - 23,398,163 22,331,792 Interest on long-term debt 1,417,459 1,174,250 - - 1,417,459 1,174,250 I
ndirect expense allocation (8,141,499) (8,145,451) 8,141,499 8,145,451 - - Sanitation - - 16,708,384 15,065,466 16,708,384 15,065,466 Waterworks District No. 8 - - 45,513,801 39,796,369 45,513,801 39,796,369 Transit - - 7,196,893 7,087,058 7,196,893 7,087,058 Total expenses 116,131,574 108,553,350 77,560,577 70,094,344 193,692,151 178,647,694 Change in net position before
transfers and contributions 13,166,764 6,127,107 26,673,419 16,747,975 39,840,183 22,875,082 Transfers (4,356,617) (2,882,526) 4,356,617 2,882,526 - - Special item: loss on
abandonment of projects - - - (2,102,153) - (2,102,153) Change in net position 8,810,147 3,244,581 31,030,036 17,528,348 39,840,183 20,772,929 Net position - beginning 236,810,892 233,566,311 236,229,588 218,701,240 473,040,480 452,267,551 Net position - ending 245,621,039 $ 236,810,892 $ 267,259,624 $ 236,229,588 $ 512,880,663 $ 473,040,480 $ City of Simi Valley's Changes in Net Position
Years Ended June 30, 2025 and 2024
Governmental
Activities
Business-Type
Activities Total
During the current fiscal year, City-wid e revenues increased by $32.0 million and expenses increased by $15.0 million as compared to the prior fiscal year. Overall, the City’s net position increased $39.8 million compared to the prior fiscal year’s increase of $20.8 million. Increases in revenue categories from the prio r fiscal year consisted of charges for services ($18.7 million), operating grants and contribut ions ($4.3 million), investments earnings ($3.1 million), capita l grants and contributions ($3.0 million), property taxes ($2.0 million), other taxes ($0.5 million), and other revenues ($0.4 million).
Governmental Activities. Governmental activities increased the City’s net position $8.8 million as compared to an increase of $3.2 million in the prior fiscal year.
Total governmental revenues increased by 12.7% ($14.6 million) from the prior fiscal year, resulting from program revenues incr ease of 39.9% ($11.0 million) and general revenues increase of 4.1% ($3.6 million).
The program revenues increase is primarily due to:
11 41
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x Charges for services increased by 71.5% ($6.3 million) primarily due to a rebate from the federal government for the installation of six backup batteries across City facilities ($5.9 million); this rebate was greater than the cost of installing the batteries (see general government expenses, below). The City also saw increases in plan check fees ($0.5 million) and service charges ($0.4 million). This was offset by a decrease in cultural arts program revenue ($0.3 million).
x Operating grants and contribut ions increased by 22.8% ($4.1 million) primarily due to increased contributions from the landf ill because of increased refuse deposits from the fire debris caused by the January 2025 wildfires ($1.8 million), Community Development Block Grant activities ($0.7 million), state assistance for permanent local housing ($0.6 million), and gas tax re ceipts ($0.2 million). Additional increases were primarily due to a housing loan repayment in the prior fiscal year ($0.7 million). In the prior fiscal year, these repayments were classified as unavailable revenue in the governmental fund statements and were therefore eliminated from program revenue in the government-wide statements.
x Capital grants and contributions increased by 74.2% ($0.7 million) primarily due to increase federally reimbursable capital streets projects ($0.6 million).
The general revenues increase is primarily due to:
x Property tax revenue increased by 4.4% ( $2.0 million) primarily due to increased assessed values.
x Other taxes increased by 1.5% ($0.5 m illion) primarily due to increases in sales and use tax ($0.3 million), documentary transfer tax ($ 0.2 million), business tax ($0.1 million), and other taxes ($0.1 million) offset by decrease in franchise taxes ($0.2 million).
x Investment earnings increased by 13.4% ( $1.1 million) primarily due to maintaining a large pool of invested funds along with favorable market conditions.
For governmental activities, total expenses increased 7.0% ($7.6 m illion) from the prior fiscal year. This is primarily due to:
x General government expenses increased 11.1% ($4.2 million) primarily due to an increase in capital equipment purchases ( $5.3 million) due to the purchase of six backup batteries installed across City facilities, offset by a decrease in other contract services ($1.0 million) due to the completion of the community grant award to the Rancho Simi Recreation and Park District in fiscal year 2024.
x Community services expenses increased 4. 5% ($0.4 million) pr imarily due to an increase in salaries and benefits ($0.9 million) offset by decreases in cultural arts program expenditures ($0.2 million) and vehicle purchases ($0.1 million).
12 42
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x Planning expenses decreased 10.0% (-$0.7 million) primarily due decreases in salaries and benefits ($0.4 million) and professional services ($0.1 million). x Public safety expenses increased 6.1% ( $2.4 million) primarily due to increases in salaries and benefits costs ($1.7 million) and vehicle purchases ($0.3 million). x Public ways and facilities expenses incr eased 4.8% ($1.1 million) primarily due to the updated valuation of OPEB liabilities ($1.0 million) and an increase in professional services ($0.3 million) offset by a decrease in operating supplies ($0.1 million).
Charges for services,
$15.0, 12%
Operating grants
and contributions,
$22.1, 17%
Capital grants and
contributions,
$1.6, 1%
Property taxes,
$46.1, 36%
Other taxes,
$35.2, 27%
Investment earnings,
$9.2, 7%
Other,
$0.1, 0%
Revenues by Source - Governmental Activities
(in millions)
Total Revenue = $129.3
13 43
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Business-type Activities . Business-type activities increased the City’s net position $31.0 million as compared to a $17.5 million increase in the prior fiscal year. Key elements for the changes in net position during the fiscal year are as follows:
In comparison to the prior fiscal year, over all revenue, before transfers, increased by
20.0% ($17.4 million). This is primarily due to:
x Charges for services increased by 16.5% ($12.4 million) primarily due to increases in Waterworks District No. 8 service charges ($9.6 million) – driven by service rate increases – and sanitation service charges ($2.7 million). x Capital grants and contributions increased by 95.0% ($2.3 million) primarily due to an increase in reimbursable capital proj ect expenses within the Transit division ($3.7 million), offset by decreases in re imbursable capital project expenses in sanitation projects ($1.0 million) and waterworks projects ($0.4 million). x Investment earnings increas ed 36.0% ($2.0 million) primarily due to maintaining a large pool of invested funds along with favorable market conditions.
Expenses increased 10.7% ($7.5 million) as compared to the prior fiscal year. This is primarily due to:
x Sanitation program expenses increased by 10.9% ($1.6 million) primarily due to increases in vehicle replac ements ($1.1 million) and sa laries and benefits ($0.7 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 safety Public ways
and facilities
Interest on
long term debt
$10.5 $9.7
$3.6 $2.8
$12.1
$0.0
$41.9
$8.5
$6.4
$42.6
$23.4
$1.4
Program Revenues and Expenses - Governmental Activities (in millions)
Program Revenues Expenses
14 44
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x Waterworks program expenses increased by 14.3% ($5.7 million) due to an increase in the cost for water ($6.4 milli on) offset by a decrease in the updated valuation of OPEB liabilities ($0.7 million).
The Transit operation is prim arily funded by federal and st ate grants. During the fiscal year, the City transferred $5.7 million from the Transportati on special revenue fund to cover the program revenue shortfall.
Charges for services,
$87.5, 84%
Operating grants
and contributions,
$3.8, 4%
Capital grants and
contributions,
$4.7, 5%
Investment earnings,
$7.7, 7%
Other, $0.5, 0%
Revenue by Source - Business-Type Activities
(in millions)
Total Revenue = $104.2
15 45
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounti ng to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is necessary in assessing the Cit y’s financing requirements. The following fund balance categories may serve as a useful measure of the City’s net r esources
available for spending at the end of the fiscal year.
x Nonspendable fund balance represents funds that are not immediately available to support government operations. Examples are inventory, pr epaid items, and long-term receivables that will not be converted to cash in the near future. x Restricted fund balance has constraints impos ed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
x Committed fund balance represents funds that can only be designated for specific purposes as established by formal City Council action. These amounts cannot be used for any other purpose unless the Ci ty Council removes or changes the specified use through the same type of formal action taken to establish the commitment.
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
Sanitation Waterworks Transit
$33.4
$54.8
$7.9
$16.7
$45.5
$7.2
Program Revenue and Expenses - Business-Type Activities (in millions)
Program Revenues Expenses
16 46
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x Assigned fund balance is similar to Committed fund balance except that the City Council can authorize the Cit y Manager to designate the funds for specific purposes. An example is budgeted line-item expenditures to which the City Manager has the authority to make administrative amendments, provided they do not have a significant policy impact or affect budgeted year-end fund balances.
x Unassigned fund balance is that portion of the fund balance that does not fall into any of the other fund balanc e categories. These funds are available for any legitimate government purpose and are customarily reported in the General fund.
However, in governmental funds other than the General fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
At the end of the current fi scal year, the City’s government al funds reflect combined ending fund balances of $152.7 million, an increase of $4.8 million when compared to the prior fiscal year fund balance of $147.9 million. Of this total amount, 2.3% ($3.6 million) is Nonspendable in form, comprised of long-term receivables and prepaid items; 29.7% ($45.3 million) is Restricted for specific activities incl uding housing programs ($13.8 million), law enforcement pr ograms ($2.6 million) , public improvements ($3.2 million), special programs ($7.1 milli on), and streets and transportation ($18.6 million); 39.0% ($59.6 million) is classified as Committed for activities such as contingency ($1.5 million), economic recovery ($11.1 million), equipment ($11.1 million), infrastructure ($16.1 million), prudent reserve ($17.0 million), retiree obligations ($1.8 million), and specialized programs ($1.0 million); 1.5% ($2.2 million) is classified as Assigned for encumbrances; and 27.5% ($42.0 million) of the fund balance is Unassigned.
The fund balance of the City’s General fund increased by $2.7 million during the current fiscal year, for a total ending fund balance of $80.8 million. In comparison to last fiscal year, overall revenues, including other financing sources, in the General fund increased by $10.0 million primarily due to increases in other revenue ($6.4 million), taxes ($2.4 million), use of money and prop erty ($0.7 million), service charges ($0.7 million), and licenses and permits ($0.4 million) offset by a decrease in long-term debt issuance for SBITAs ($0.6 million). The increase in other revenues was primarily due to a rebate from the federal government for the installation of six backup batteries across City facilities ($5.9 million); this rebate was greater than the cost of installing the batteries (see general government expenses, below). Additionally , the City saw an increase in tonnage contributions ($1.8 million) from the landfill due to increase refuse deposits from the fire debris caused by the January 2025 wildfires. The increase in taxes was primarily due to an increase in property tax due to increases in property valuations ($2.0 million), sales and use tax ($0.3 million), and documentary transfer tax ($0. 2 million), offset by a decrease in franchise tax ($0.2 million). The increase in use of money and property was primarily due to increases in the investment pool yield ($1.0 million), and rents and leases ($0.1 million), offset by less favorable mark et values at year-end ($0.4 million). The increase in service charges wa s primarily due to increases in plan check fees ($0.3 million), other service charges ($0.2 million), and inspection fees ($0.1 million). The 17 47
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
increase in licenses and permits was primarily due to increases in plan check services ($0.2 million) and encroachment pe rmits ($0.1 million). The decrease in long-term debt issuance for SBITAs was due to no new SBITA s being entered into in the General fund during the fiscal year. Overall expenditures, including other financing uses, increased by $5.5 million primarily due to increases in general government expenditures of $4.9 million, public safety expenditures of $2.2 million, public ways and facilities expenditures of $0.5 million, and community services expenditures of $0.3 million, offset by decreases in transfers out of $1.7 million and in capital outlay of $0.6 million. The increase in general government expenditures was primarily due to an increase in furnishings and equipment ($5.3 million) for the installation of six back up batteries across City facilities offset by a decrease in contract services ($0.9 million). The increase in public safety expenditures was primarily due to increases in salari es and benefits ($1.9 million) and vehicle purchases ($0.1 million). T he increase in public ways and facilities expenditures was primarily due to increases in salaries an d benefits ($0.5 million) and in professional services ($0.3 million), offset by decreases in other contract ed services ($0.2 million), landscape maintenance contracts ($0.1 million) , and operating supplies ($0.1 million).
The increase in community services expenditures was primarily due to increases in salaries and benefits ($0.4 million) and anima l regulation ($0.1 m illion), offset by a decrease in cultural arts program expenditure s ($0.2 million). The decrease in transfers out was primarily due to decreases in tran sfers to the Streets and Roads fund ($1.0 million), the Vehicle Replacement fund ($0.4 million), the Public Facility Improvement fund ($0.3 million), and the Waterworks Replacement fund ($0.3 million), offset by an increase in transfers to the Landscape fund ($0.2 million). The decrease in capital outlay is due to the City not entering into any new capital SBITAs during the fiscal year.
The fund balance of the SHA to Community Development Agency Housing Administration fund decreased $0.4 million during the current fiscal year, for a total ending fund balance of $4.9 million. In comparison to last fiscal year, overall revenues in the fund decreased by $0.7 million primarily due to a decrease in use of money and property from developer loan repayments due to a decrease in residual receipts due to the City. In comparison to last fiscal year, expenditures decreased by $0.1 million primarily due to a decrease in salaries and benefits.
The fund balance of the Development Related Fees fund decreased by $1.8 million in the current fiscal year for a total ending fund balance of $9.9 million. In comparison to last fiscal year, overall revenues increased by $0.2 million primarily due to an increase in service charges. In comparison to last fisca l year, overall expenditures, including other financing uses, increased by $0.4 million primary due to transfers out for streets and roads projects ($0.3 million).
The fund balance of the Streets and Roads fund increased by $1.0 million during the current fiscal year for a total ending fund balanc e of $16.0 million. In comparison to last fiscal year, overall revenues, including other financing sources, increased by $1.7 million primarily due to increases in grants ($0.9 million) due to an increase in grant-eligible projects and transfers in ($0.9 million) primarily from the General fund ($0.9 million). In comparison to last fiscal year, overall expenditures increased $0.6 million primarily due to an increase in capital outlay for streets and roads projects. 18 48
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
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, Waterworks, and Transit funds showed increases in net position of $17.9 million, $9.6 million, and $4.0 million, respectively.
Restricted net position for the Sanitation and Waterworks funds was $13.6 million and $1.2 million, respectively; Unrestricted net position of the Sanitation, Waterworks, and Transit funds was $70.3 million, $38.7 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 $100.5 million were $15.7 million more than the General fund final budgeted amount of $84.7 million primarily due to the following:
x $6.8 million in other revenues over t he budgeted amount due to a rebate from the federal government for the installation of six backup batteries at various City facilities ($5.9 million) and contributi ons from the City’s waste management provider ($0.5 million) due to large landfill contributions associated with structural debris removal from other cities due to the January 2025 wildfires.
x $4.8 million in use of money and property over the budgeted amount due to an expanded investment pool ($3.4 million) and favorable fair market valuations ($1.4 million).
x $1.1 million in property taxes over the budgeted amount due to stronger than expected assessed property values.
x $1.0 million in service charges over th e budgeted amount due to an increase in plan check fees ($0.4 million), planning f ees ($0.2 million), increased support to the County of Ventura Pr obation Agency’s Post Release Offender Supervision program ($0.2 million), and an increase in inspection services ($0.1 million).
x $0.8 million in franchise taxes over the budgeted amount due to stronger than expected franchisee activities.
x $0.7 million in business and other tax revenues over the budgeted amount due to an increase in new business tax applications and renewals ($0.5 million).
The General fund final amended expenditure budget of $100.1 million was $17.8 million greater than the General fund original expenditure budget of $82.3 million primarily due to the following:
19 49
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x $13.9 million more was appropriated for gener al government and city-wide support for a one-time payment for installation of six backup batteries across various City facilities ($5.3 million), a one-time pensio n payment utilizing prior fiscal year budgetary savings ($4.6 million), contracts carryforward from the prior fiscal year ($2.7 million), additional maintenance of equipment ($0.5 million), additional outside legal assistance ($0.4 million), and additional professional services throughout the year ($0.2 million).
x $2.5 million more was appropriated for p ublic ways and facilities primarily for additional professional services ($1.1 m illion), additional contract services ($0.9 million), and additional landscape maintenance services ($0.4 million).
x $0.7 million more was appropriated for pub lic safety primarily for salaries and benefits for an alcohol beverage control grant award ($0.2 million), additional carryforward and off-highway vehicle grant for vehicle purchases ($0.1 million), and contracts carryforward from the prior fiscal year ($0.1 million)
x $0.5 million more was appropriated for comm unity services primarily for additional operating supplies ($0.5 million).
The General fund final amended transfers out budget of $12.0 million was $4.9 million greater than the General fund original budget of $7.1 million primarily due to the following:
x $4.6 million more was appropriate d for streets and roads projects.
x $0.2 million more was appropriated for landscape fund augmentation.
Actual General fund expenditures of $90.8 million was $9.3 million less than the General fund final amended expenditure budget of $100.1 million primarily due to the following:
x $3.7 million savings in public ways and facili ties primarily due to savings in contract services ($1.1 million), salaries and benefit s ($1.0 million), professional services ($0.8 million), and landscape maintenance ($0.7 million).
x $4.1 million savings in general government primarily due to savings in contract services ($1.9 million), maintenance of equipment ($1.0 million), professional services ($0.4 million), communications ($0.2 million), capital furnishing and equipment ($0.2 million), offset by additiona l salaries and benefits costs due to city-wide general salary increases ($0.2 million).
x $1.4 million savings in plan ning primarily due to saving s in salaries and benefits ($1.0 million), contract services ($0.2 million), and professional services ($0.1 million).
20 50
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
x $1.1 million savings in community services primarily due to savings in operating supplies expenses ($0.5 million), salaries and benefits ($0.3 million), and animal regulation costs ($0.2 million).
Capital Asset and Debt Administration
Capital assets. The City of Simi Valley’s investment in capital assets for its governmental and business-type activities as of June 30, 2025, amounts to $430.2 million (net of accumulated depreciation). This is an increase of $17.3 million as compared to the prior year.
The investment in capital assets includes land, plant and buildings, furnishings and equipment, infrastructure consisting of roads and highways, and water and sewer distribution systems, intangibles, and right-of-use assets.
Major capital asset events during the current fiscal year included the following:
x $12.1 million in street pr ojects were completed.
x $5.3 million in completion of installation of backup batteries at City Hall, library, police department, sanitation facility, senior center, and Yosemite pump station.
x $4.5 million expended in digester and clarifier installations at the water quality control plant (construction-in-progress).
x $1.4 million expended for sewer line replacements (construction-in-progress).
x $1.3 million in completion of water line r eplacement and water tank rehabilitation.
x $0.9 million in completion of installation of biological nutrient removal air diffuser membranes at the water quality control plant.
x $0.7 million completed in traffic signal upgrades.
x $0.4 million completed in bus stop improvements.
x $0.3 million expended for transit electric infrastructure and park and ride lot (construction-in-progress).
During the fiscal year, the $28.4 million Sanitation Energy Savings Company project was completed. This project improves City infrastructure, optimizes treatment processes, provides energy savings, and reduces City maintenance costs.
Additional information on the City’s capital assets can be found in note III.E of the notes to the financial statements.
21 51
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Activities Activities Total
2025 2024 2025 2024 2025 2024
Land 10,621,811$ 10,621,811$ 1,216,994$ 1,216,994$ 11,838,805$ 11,838,805$ Building and Improvements 31,065,569 32,677,586 8,075,336 8,080,530 39,140,905 40,758,116 Furnishings and equipment 10,732,374 6,052,389 3,436,901 2,622,310 14,169,275 8,674,699 Vehicles 3,258,941 2,089,967 6,456,956 2,237,081 9,715,897 4,327,048 Infrastructure 187,880,094 184,315,284 146,590,716 119,827,728 334,470,810 304,143,012 Intangibles 6,481,901 6,967,642 - - 6,481,901 6,967,642 Right-of-use assets 2,562,171 2,898,141 81,674 122,511 2,643,845 3,020,652 Construction-in-progress 1,467,369 1,255,182 10,253,903 31,916,999 11,721,272 33,172,181 Total 254,070,230$ 246,878,002$ 176,112,480$ 166,024,153$ 430,182,710$ 412,902,155$ Business-TypeGovernmental
City of Simi Valley's Capital Assets
(net of accumulated depreciation)
June 30, 2025 and 2024
Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $55.9 million. This entire amount represents bonds secured solely by specified revenue sources (e.g., revenue bonds).
City of Simi Valley’s outstanding bonded debt on June 30, 2025 and 2024:
2025 2024
2014A lease revenue refunding bond 12,175,000$ 13,110,000$ 2016 New Clean Renewable Energy Bonds (NCREBs) 6,310,589 6,725,091 2016 NCREBs tax exempt 488,412 522,975
2017 lease agreement 3,506,291 3,964,631
2018 lease agreement 4,047,536 4,393,313
2019 lease agreement 28,443,411 30,077,842
Bond premium 903,140 1,001,777
Total 55,874,379$ 59,795,629$
Governmental and Business-type
Activities
Additional information on the City’s long-term debt can be found in note III.H.
Economic Factors and Next Year’s Budgets and Rates
In June 2025, the City Council adopted the fiscal year 2025-26 annual budget. The adopted budget is structurally balanced with a funding level that continues to meet operational needs. In addition to sustaining core operations, the budget emphasizes disciplined, long-term planning, aligning resources with both immediate priorities and anticipated future demands.
22 52
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
The City’s budget was prepared within the context of a dynamic and evolving economic environment. Although indicators such as moderating inflation and strengthening consumer confidence suggest signs of stabilizat ion, challenges remain. High, but falling interest rates, ongoing adjustments in federal policy, and continued global market volatility exert pressure on local revenue streams, particularly sales tax collections and investment performance. With interest rates appearing to be on a downward trend, housing turnover may improve, which will lead to higher asse ssed property values and, thus, higher property tax revenues.
Consistent with prior years, a key element of the City’s financial strategy is the prudent management and reinvestment of one-time surplus funds. The General fund closed the fiscal year with a surplus of approximately $2. 7 million, driven primarily by nonrecurring sources such as landfill tonnage fees associat ed with wildfire debris and strong interest earnings due to the high interest rate environment.
In alignment with the City’s values, these one-time resources are not allocated to ongoing operational expenditures. Instead, they are st rategically reinvested in nonrecurring initiatives that strengthen the long-term fi nancial and organizational health of the City.
Planned applications of these funds include upgrades to aging infrastructure, replacement of critical equipment, and ta rgeted improvements designed to enhance operational efficiency and resilience. This approach ensures that surpluses are leveraged to deliver lasting benefits to the community while preserving structural balance in the City’s budget.
City staff continuously monitor revenue and expenditure trends, incorporating economic data at all levels and guida nce from external advisors to ensure the annual budget is structurally balanced and sustai nable. Nationally, growth is expected to slow, with U.S.
GDP projected to decline from 2.2% in 2025 to 1.3% in 2026 amid persistent inflation, high interest rates, and market volatility. California’s economy, which grew 3.1% in 2024, is forecasted to decelerate to 0.5–1.0% in 2025. Ventura County cont racted slightly in 2024 due to out-migration and housing affordab ility challenges, though multi-family housing projects are expected to drive growth in 2025.
Locally, Simi Valley anticipates continued slowing in sales tax revenues, while property tax rolls will benefit from prior real estate activity. The City is pursuing new residential and commercial development, including North Cany on Ranch, Runkle and Lost Canyon, Alamo/Tapo and Santa Susana mixed-use projects, and the Town Center revitalization.
According to the California Employment Development Department, the unemployment rate in Simi Valley has historically remained below that of Ventura County, an indicator of the strength of the local economy. As of June 2025, the City’s unemployment rate of
4.8% was below the rate of 5.0% for Ventur a County and rate of 5.8% for the State of California.
The City is overall in a good financial po sition, with a General fund spendable fund balance of $77.3 million, which will allow the City Council to continue to make strategic decisions directed at improving the services we provide to our citizens. 23 53
CITY OF SIMI VALLEY xx MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
Requests for Information
This financial report is designed to provide a general overview of the City of Simi Valley’s finances for all those with an interest in the City’s financial condition. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Simi Valley, Department of Administrative Services, 2929 Tapo Canyon Road, Simi Valley, California 93063. 24 54
BASIC FINANCIAL STATEMENTS
BASIC FINANCIAL
STATEMENTS
55 City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
56 57
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments (note III.A) 182,185,827 $ 136,887,674 $ 319,073,501 $ Accounts receivable (net of allowance for uncollectibles) (note III.C) 4,585,039 6,197,771 10,782,810 Taxes receivable 6,964,320 1,177,411 8,141,731 Grants receivable 1,158,197 7,349,631 8,507,828 Lease receivable (note III.D) 505,774 410,230 916,004 Interest receivable 1,649,377 1,294,736 2,944,113 Internal balances (note I.E.2) 2,086,598 (2,086,598) - Inventories - 1,829,221 1,829,221
Prepaid items 279,788 - 279,788
Restricted cash and investments (note III.A):
Customer deposits - 1,207,769 1,207,769
Connection fees - 13,570,589 13,570,589
Total current assets 199,414,920 167,838,434 367,253,354 Noncurrent assets:
Lease receivable (note III.D) 8,795,297 2,598,578 11,393,875 Loans receivable (note III.B) 24,339,768 - 24,339,768 Capital assets (note III.E):
Capital assets not being depreciated 12,089,180 11,470,897 23,560,077 Capital assets being depreciated, net 241,981,050 164,641,583 406,622,633 Total noncurrent assets 287,205,295 178,711,058 465,916,353 Total assets 486,620,215 346,549,492 833,169,707
DEFERRED OUTFLOWS OF RESOURCES
Related to loss on debt refunding 118,187 - 118,187 Related to pensions (note IV.D) 27,614,889 5,935,208 33,550,097 Related to other postemployment benefits (note IV.E) 14,233,177 1,368,245 15,601,422 Total deferred outflows of resources 41,966,253 7,303,453 49,269,706
LIABILITIES
Current liabilities:
Accounts payable 12,462,288 7,343,643 19,805,931 Salaries and benefits payable 3,017,602 682,831 3,700,433 Accrued interest payable 434,478 217,683 652,161 Deposits 1,151,699 - 1,151,699
Liabilities payable from restricted assets - 1,207,769 1,207,769 Unearned revenues 3,550,635 4,235,875 7,786,510 Current portion of long-term debt (note III.H) 7,342,675 1,962,290 9,304,965 Total current liabilities 27,959,377 15,650,091 43,609,468 Noncurrent liabilities:
Noncurrent portion of long-term debt (note III.H) 234,077,284 64,066,792 298,144,076 Total liabilities 262,036,661 79,716,883 341,753,544
DEFERRED INFLOWS OF RESOURCES
Related to leases (note III.D) 8,302,132 2,720,090 11,022,222 Related to pensions (note IV.D) 877,095 - 877,095 Related to other postemployment benefits (note IV.E) 11,749,541 4,156,348 15,905,889 Total deferred inflows of resources 20,928,768 6,876,438 27,805,206
NET POSITION
Net investment in capital assets 223,978,037 147,217,235 371,195,272 Restricted for:
Capital projects 21,007,012 - 21,007,012
Community development 45,520,962 - 45,520,962
Public safety 2,138,931 - 2,138,931
Sewer connection fees and water capital improvement charges - 14,778,358 14,778,358 Transportation 12,716,377 - 12,716,377
Unrestricted (59,740,280) 105,264,031 45,523,751 Total net position 245,621,039$ 267,259,624$ 512,880,663$
CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
JUNE 30, 2025
See notes to the basic financial statements.
25 58
Indirect Operating
Expenses Full Cost Charges for Grants and
Expenses Allocation by Function Services Contributions
Primary government:
Governmental activities:
General government 41,907,007$ (8,678,480)$ 33,228,527$ 7,072,788$ 3,387,008 Community services 8,548,898 354,878 8,903,776 559,550 9,157,868 Planning 6,396,052 182,103 6,578,155 3,261,281 300,457 Public safety 42,605,494 - 42,605,494 815,704 1,952,863 Public ways and facilities 23,398,163 - 23,398,163 3,285,274 7,280,450 Interest on long-term debt 1,417,459 - 1,417,459 - - Total governmental activities 124,273,073 (8,141,499) 116,131,574 14,994,597 22,078,646 Business-type activities:
Sanitation 16,708,384 3,076,650 19,785,034 32,681,965 - Waterworks District No. 8 45,513,801 2,709,546 48,223,347 54,477,581 24,169 Transit 7,196,893 2,355,303 9,552,196 337,475 3,741,470 Total business-type activities 69,419,078 8,141,499 77,560,577 87,497,021 3,765,639 Total primary government 193,692,151$ -$ 193,692,151$ 102,491,618$ 25,844,285$ (Continued)
CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Program
Revenues
See notes to the basic financial statements.
26 59
Program
Revenues
Capital
Grants and Governmental Business-type
Contributions Activities Activities Total
Primary government:
Governmental activities:
-$ (22,768,731)$ -$ (22,768,731)$ General government - 813,642 - 813,642 Community services
- (3,016,417) - (3,016,417) Planning
75,000 (39,761,927) - (39,761,927) Public safety
1,563,746 (11,268,693) - (11,268,693) Public ways and facilities - (1,417,459) - (1,417,459) Interest on long-term debt
1,638,746 (77,419,585) - (77,419,585) Total governmental activities Business-type activities:
673,799 - 13,570,730 13,570,730 Sanitation 257,665 - 6,536,068 6,536,068 Waterworks District No. 8 3,797,349 - (1,675,902) (1,675,902) Transit 4,728,813 - 18,430,896 18,430,896 Total business-type activities 6,367,559$ (77,419,585) 18,430,896 (58,988,689) Total primary government General revenues:
46,061,400 - 46,061,400 Property taxes
23,301,880 - 23,301,880 Sales taxes
5,949,996 - 5,949,996 Franchise taxes
2,772,298 - 2,772,298 Business taxes
3,156,283 - 3,156,283 Other taxes
9,220,382 7,710,558 16,930,940 Investment earnings 111,522 58,465 169,987 Proceeds from sale of property 12,588 473,500 486,088 Miscellaneous (4,356,617) 4,356,617 - T
ransfers
86,229,732 12,599,140 98,828,872 Total general revenues and transfers 8,810,147 31,030,036 39,840,183 Change in net position 236,810,892 236,229,588 473,040,480 Net position - beginning 245,621,039$ 267,259,624$ 512,880,663$ Net position - ending (Concluded)
Primary Government
CITY OF SIMI VALLEY
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Net (Expense)/Revenue and
Changes in Net Position
See notes to the basic financial statements.
27 60
61 City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
FUND FINANCIAL STATEMENTS
62 63
64 SHA to Community
Development
Agency Housing Development
General Administration Related Fees
ASSETS
Cash and investments:
Held by City 75,035,248 $ 4,807,337$ 9,847,364$
Held by trustee 88,526 77,121 -
Accounts receivable (net of allowance for
uncollectibles) (note III.C) 3,357,410 56,524 -
Taxes receivable 6,957,768 - -
Grants receivable 16,238 - -
Lease receivable 9,301,071 - -
Interest receivable 1,040,393 46,030 48,578
Due from other funds (note III.G) 4,672,707 519 -
Loans receivable (note III.B) 216,215 14,574,574 6,010,984 Prepaid items 5,706 - -
Advances to other funds (note III.G) 3,348,380 - -
Total assets 104,039,662$ 19,562,105$ 15,906,926$
LIABILITIES
Accounts payable 8,899,241$ 78,256$ 51$
Salaries and benefits payable 2,982,831 16,200 -
Due to other funds (note III.G) 20,068 - -
Advances from other funds (note III.G) - - -
Deposits and deferred revenue 1,216,178 - -
Total liabilities 13,118,318 94,456 51
DEFERRED INFLOWS OF RESOURCES
Leases 8,302,132 - -
Unavailable revenue 1,776,781 14,574,574 6,010,984
Total deferred inflows of resources 10,078,913 14,574,574 6,010,984 FUND BALANCES (note III.I)
Nonspendable
Long-term receivables 3,564,595 - -
Prepaid items 5,706 - -
Restricted
Housing programs - 4,893,075 5,381,962
Law enforcement - - -
Public improvements - - 2,747,966
Special programs - - -
Streets and transportation - - 1,765,963
Committed
Contingency 1,440,632 - -
Economic recovery 11,084,838 - -
Equipment - - -
Infrastructure 129,334 - -
Prudent reserve 17,011,694 - -
Retiree obligations 1,807,549 - -
Specialized programs 1,008,460 - -
Assigned
Encumbrances 2,254,740 - -
Unassigned 42,534,883 - -
Total fund balances 80,842,431 4,893,075 9,895,891
Total liabilities, deferred inflows of
resources, and fund balances 104,039,662$ 19,562,105$ 15,906,926$ (Continued)
Funds
CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue
See notes to the basic financial statements.
28 65
Capital Projects
Fund
Total
Streets & Nonmajor Governmental
Roads Governmental Funds
ASSETS
Cash and investments:
21,438,878$ 44,286,571$ 155,415,398 Held by City
- - 165,647 Held by trustee
Accounts receivable (net of allowance for
48,537 1,122,568 4,585,039 uncollectibles) (note III.C) - 6,552 6,964,320 Taxes receivable
392,064 749,895 1,158,197 Grants receivable
- - 9,301,071 Lease receivable
- 285,160 1,420,161 Interest receivable
- 19,549 4,692,775 Due from other funds (note III.G)
- 3,537,995 24,339,768 Loans receivable (note III.B)
274,081 - 279,787 Prepaid items
- - 3,348,380 Advances to other funds (note III.G)
22,153,560$ 50,008,290$ 211,670,543$ Total assets
LIABILITIES
2,649,678$ 644,396$ 12,271,622$ Accounts payable
- 9,054 3,008,085 Salaries and benefits payable
- 1,287,760 1,307,828 Due to other funds (note III.G)
- 3,348,380 3,348,380 Advances from other funds (note III.G) 3,486,156 - 4,702,334 Deposits and deferred revenue
6,135,834 5,289,590 24,638,249 Total liabilities
DEFERRED INFLOWS OF RESOURCES
- - 8,302,132 Leases
35,776 3,660,827 26,058,942 Unavailable revenue
35,776 3,660,827 34,361,074 Total deferred inflows of resources FUND BALANCES (note III.I)
Nonspendable
- - 3,564,595 Long-term receivables
- - 5,706 Prepaid items
Restricted
- 3,449,894 13,724,931 Housing programs
- 2,586,923 2,586,923 Law enforcement
- 443,420 3,191,386 Public improvements
- 7,156,168 7,156,168 Special programs
- 16,831,848 18,597,811 Streets and transportation
Committed
- - 1,440,632 Contingency
- - 11,084,838 Economic recovery
- 11,092,556 11,092,556 Equipment
15,981,950 - 16,111,284 Infrastructure
- - 17,011,694 Prudent reserve
- - 1,807,549 Retiree obligations
- - 1,008,460 Specialized programs
Assigned
- - 2,254,740 Encumbrances
- (502,936) 42,031,947 Unassigned
15,981,950 41,057,873 152,671,220 Total fund balances
Total liabilities, deferred inflows of
22,153,560$ 50,008,290$ 211,670,543$ resources, and fund balances (Concluded)
CITY OF SIMI VALLEY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2025
See notes to the basic financial statements.
29 66
Fund balances - total governmental funds 152,671,220$
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. 254,070,230 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. 12,666,561
Some liabilities are not due and payable in the current period and therefore are not reported in the funds:
Accrued interest payable (434,478)
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. 26,058,942 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 27,525,072$
Related to other postemployment benefits 14,200,983 41,726,055 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 (877,095)
Related to other postemployment benefits (11,651,745) (12,528,840) 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 (7,083,019)
Net pension liability (126,112,922)
Net OPEB liability (65,320,516)
2014A lease revenue refunding bonds (12,175,000)
2016 new clean renewable energy bonds (NCREBs) (6,310,589) 2016 NCREBs tax exempt (488,412)
2017 lease agreement (3,506,291)
2018 lease agreement (4,047,536)
Right-of-use lease liability (2,468,172)
Right-of-use SBITA liability (311,241)
Unamortized bond premium (903,140)
Unamortized bond payable deferred on refunding 118,187 (228,608,651) Net position of governmental activities 245,621,039$
CITY OF SIMI VALLEY
RECONCILATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES JUNE 30, 2025
See notes to the basic financial statements.
30 67
68 SHA to Community
Development
Agency Housing Development
General Administration Related Fees
REVENUES
Taxes 78,147,845$ -$ -$ Licenses and permits 3,438,113 - - Fines and forfeitures 465,689 - - Use of money and property 6,531,588 229,753 238,300 From other governments 674,537 - - Grants 208,698 - - Service charges 2,132,574 6,394 457,877 Other revenues 8,855,846 - 100,000 Total revenues 100,454,890 236,147 796,177
EXPENDITURES
Current:
General government 24,503,238 - - Community services 4,938,610 - - Planning 4,982,039 609,343 - Public ways and facilities 16,185,093 - 171,726 Public safety 39,708,984 - - Total current expenditures 90,317,964 609,343 171,726 Capital outlay - - - Debt Service:
Principal 195,106 - - Interest 243,965 - - Other - - - Total debt service 439,071 - - Total expenditures 90,757,035 609,343 171,726
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 9,697,855 (373,196) 624,451
OTHER FINANCING SOURCES/(USES)
Transfers in (note III.G) 4,881,963 - - Transfers out (note III.G) (11,972,160) - (2,405,736) Proceeds from sale of property 109,500 - - Total other financing sources/(uses) (6,980,697) - (2,405,736) NET CHANGE IN FUND BALANCES 2,717,158 (373,196) (1,781,285) FUND BALANCES - BEGINNING 78,125,273 5,266,271 11,677,176 FUND BALANCES - ENDING 80,842,431$ 4,893,075$ 9,895,891$ (Continued)
Funds
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Special Revenue
See notes to the basic financial statements.
31 69
Capital Projects
Fund
Total
Streets & Nonmajor Governmental
Roads Governmental Funds
REVENUES
-$ 3,094,012$ 81,241,857 $ Taxes - - 3,438,113 Licenses and permits - 3,709 469,398 Fines and forfeitures - 1,576,743 8,576,384 Use of money and property - 13,041,406 13,715,943 From other governments 1,541,007 3,803,127 5,552,832 Grants - 795,311 3,392,156 Service charges 35,000 803,488 9,794,334 Other revenues 1,576,007 23,117,796 126,181,017 Total revenues
EXPENDITURES
Current:
- 266,481 24,769,719 General government - 2,989,860 7,928,470 Community services - 133,407 5,724,789 Planning - 2,098,053 18,454,872 Public ways and facilities - 1,116,365 40,825,349 Public safety - 6,604,166 97,703,199 Total current expenditures 13,493,347 2,044,070 15,537,417 Capital outlay Debt Service:
- 2,277,833 2,472,939 Principal - 1,167,919 1,411,884 Interest - 5,102 5,102 Other - 3,450,854 3,889,925 Total debt service 13,493,347 12,099,090 117,130,541 Total expenditures
EXCESS/(DEFICIENCY) OF REVENUES
(11,917,340) 11,018,706 9,050,476 OVER/(UNDER) EXPENDITURES
OTHER FINANCING SOURCES/(USES)
12,876,788 5,598,578 23,357,329 Transfers in (note III.G) - (13,329,368) (27,707,264) Transfers out (note III.G) - 2,023 111,523 Proceeds from sale of property 12,876,788 (7,728,767) (4,238,412) Total other financing sources/(uses) 959,448 3,289,939 4,812,064 NET CHANGE IN FUND BALANCES 15,022,502 37,767,934 147,859,156 FUND BALANCES - BEGINNING 15,981,950$ 41,057,873 $ 152,671,220 $ 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, 2025
See notes to the basic financial statements.
32 70
Net change in fund balances - total governmental funds 4,812,064$ 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 19,867,910$
Depreciation/amortization expense (12,675,682) 7,192,228 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 935,000 Principal payment on 2016 new clean renewable energy bonds (NCREBs) 414,502 Principal payment on 2016 NCREBs tax exempt 34,563
Principal payment on 2017 lease agreement 458,340
Principal payment on 2018 lease agreement 345,777
Principal payment on right-of-use lease 38,812
Principal payment on right-of-use SBITA liability 245,945 2,472,939 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) (91,361)
Amortized premium on bonds 98,637
Amortized deferral on refunding (12,851)
Pension-related expenses 1,548,709
OPEB-related expenses (8,455,331)
Compensated absences (net) (249,272) (7,161,469) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 1,718,567 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. (224,182)
Change in net position of governmental activities 8,810,147$
CITY OF SIMI VALLEY
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
JUNE 30, 2025
TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES See notes to the basic financial statements.
33 71
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Taxes:
Property 42,137,819 $ 42,137,819 $ 43,256,290 $ 1,118,471 $ Sales 23,281,906 23,281,906 23,301,880 19,974 Franchise 5,100,000 5,100,000 5,949,996 849,996 Business and other 4,926,000 4,926,000 5,639,679 713,679 Licenses and permits 3,139,000 3,139,000 3,438,113 299,113 Fines and forfeitures 333,300 333,300 465,689 132,389 Use of money and property 1,705,572 1,705,572 6,531,588 4,826,016 From other governments 483,346 483,346 674,537 191,191 Grants 412,994 422,844 208,698 (214,146) Service charges 1,137,540 1,137,540 2,132,574 995,034 Other revenues 1,912,250 2,048,570 8,855,846 6,807,276 Total revenues 84,569,727 84,715,897 100,454,890 15,738,993
EXPENDITURES
Current:
General government 14,644,874 28,554,484 24,503,238 4,051,246 Community services 5,607,241 6,076,191 4,938,610 1,137,581 Planning 6,175,871 6,354,721 4,982,039 1,372,682 Public safety 38,432,831 39,151,333 39,708,984 (557,651) Public ways and facilities 17,454,484 19,932,058 16,185,093 3,746,965 Total current expenditures 82,315,301 100,068,787 90,317,964 9,750,823 Debt service:
Principal - - 195,106 (195,106) Interest - - 243,965 (243,965) Total debt service - - 439,071 (439,071) Total expenditures 82,315,301 100,068,787 90,757,035 9,311,752
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 2,254,426 (15,352,890) 9,697,855 25,050,745
OTHER FINANCING SOURCES/(USES)
Transfers in 4,886,379 4,886,379 4,881,963 (4,416) Transfers out (7,124,340) (11,977,664) (11,972,160) 5,504 Proceeds from sale of property 20,000 20,000 109,500 89,500 Total other financing sources/(uses) (2,217,961) (7,071,285) (6,980,697) 90,588 NET CHANGE IN FUND BALANCE 36,465 (22,424,175) 2,717,158 25,141,333 FUND BALANCE - BEGINNING 78,125,273 78,125,273 78,125,273 - FUND BALANCE - ENDING 78,161,738$ 55,701,098$ 80,842,431$ 25,141,333$
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, 2025
See notes to the basic financial statements.
34 72
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 365,000$ 365,000$ 229,753$ (135,247)$ Service charges 17,500 17,500 6,394 (11,106) Total revenues 382,500 382,500 236,147 (146,353)
EXPENDITURES
Current:
Planning 1,401,268 1,401,268 609,343 791,925 Total expenditures 1,401,268 1,401,268 609,343 791,925 NET CHANGE IN FUND BALANCE (1,018,768) (1,018,768) (373,196) 645,572 FUND BALANCE - BEGINNING 5,266,271 5,266,271 5,266,271 - FUND BALANCE - ENDING 4,247,503 $ 4,247,503 $ 4,893,075 $ 645,572 $ 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, 2025
See notes to the basic financial statements.
35 73
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 172,457$ 172,457$ 238,300$ 65,843$ Service charges 190,000 190,000 457,877 267,877 Other revenues 100,000 100,000 100,000 - Total revenues 462,457 462,457 796,177 333,720
EXPENDITURES
Current:
Public ways and facilities 511,000 571,000 171,726 399,274 Total expenditures 511,000 571,000 171,726 399,274
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (48,543) (108,543) 624,451 732,994
OTHER FINANCING SOURCES/(USES)
Transfers out (2,207,750) (2,405,917) (2,405,736) 181 Total other financing sources/(uses) (2,207,750) (2,405,917) (2,405,736) 181 NET CHANGE IN FUND BALANCE (2,256,293) (2,514,460) (1,781,285) 733,175 FUND BALANCE - BEGINNING 11,677,176 11,677,176 11,677,176 - FUND BALANCE - ENDING 9,420,883$ 9,162,716$ 9,895,891$ 733,175$ 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, 2025
See notes to the basic financial statements.
36 74
Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
Assets
Current assets:
Cash and investments 84,133,083 $ 48,586,251 $ 4,168,340 $ 136,887,674$ 26,604,782 $ Customer receivable 208,394 4,886,008 - 5,094,402 - Other receivable 696,063 371,754 35,552 1,103,369 - Taxes receivable 1,177,411 - - 1,177,411 - Grants receivable - - 7,349,631 7,349,631 - Lease receivable - 3,008,808 - 3,008,808 - Interest receivable 843,609 451,127 - 1,294,736 229,218 Inventories 624,821 934,420 269,980 1,829,221 - Restricted cash and investments:
Customer deposits - 1,207,769 - 1,207,769 - Connection fees 13,570,589 - - 13,570,589 - Total current assets 101,253,970 59,446,137 11,823,503 172,523,610 26,834,000 Noncurrent assets:
Capital assets (net of accumulated depreciation) (note III.E):
Land 765,660 451,334 - 1,216,994 - Buildings and improvements 2,949,009 590,787 4,535,540 8,075,336 - Furnishings and equipment 1,936,398 997,352 503,151 3,436,901 - Vehicles 1,165,748 860,050 4,431,158 6,456,956 - Distribution system 94,369,329 52,221,387 - 146,590,716 - Right-of-use SBITAs - 81,674 - 81,674 - C
onstruction-in-progress 6,331,559 3,294,888 627,456 10,253,903 - Total noncurrent assets 107,517,703 58,497,472 10,097,305 176,112,480 - Total assets 208,771,673 117,943,609 21,920,808 348,636,090 26,834,000
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 2,590,570 1,853,403 1,491,235 5,935,208 89,817 Related to other postemployment benefits 627,783 450,716 289,746 1,368,245 32,194 Total deferred outflows of resources 3,218,353 2,304,119 1,780,981 7,303,453 122,011
LIABILITIES
Current liabilities:
Accounts payable 1,803,093 4,680,630 859,920 7,343,643 190,666 Salaries and benefits payable 291,819 213,062 177,950 682,831 9,517 Interest payable 217,683 - - 217,683 - Lease agreement 1,672,380 - - 1,672,380 - Subscription-based information technology arrangements - 41,640 - 41,640 - Compensated absences 131,311 52,441 64,518 248,270 3,907 Due to other funds (note III.G) - - 3,384,947 3,384,947 - Unearned revenue 67,535 - 4,168,340 4,235,875 - Claims and legal services payable (note IV.B) - - - - 3,634,492 Current liabilities payable from restricted assets:
Water service prepayments - 1,207,769 - 1,207,769 - Total current liabilities 4, 183,821 6,195,542 8,655,675 19,035,038 3,838,582 Noncurrent liabilities:
Lease agreement 26,771,031 - - 26,771,031 - Subscription-based Information Technology Arrangements - 43,385 - 43,385 - Compensated absences 733,448 292,914 360,369 1,386,731 24,002 Claims and legal services payable (note IV.B) - - - - 8,433,266 Net pension liability 12,810,861 9,165,429 7,374,438 29,350,728 444,163 Net other postemployment benefits liability 2 ,989,197 2,146,090 1,379,630 6,514,917 153,292 Total noncurrent liabilities 43,304,537 11,647,818 9,114,437 64,066,792 9,054,723 Total liabilities 47,488,358 17,843,360 17,770,112 83,101,830 12,893,305
DEFERRED INFLOWS OF RESOURCES
Leases - 2,720,090 - 2,720,090 - Related to other postemployment benefits 1,907,030 1,369,150 880,168 4,156,348 97,796 Total deferred inflows of resources 1,907,030 4,089,240 880,168 6,876,438 97,796
NET POSITION
Net investment in capital assets 78,762,009 58,357,921 10,097,305 147,217,235 - Restricted for:
Sewer connection fees 13,570,589 - - 13,570,589 - Water capital improvement charges - 1,207,769 - 1,207,769 - Unrestricted 70,262,040 38,749,438 (5,045,796) 103,965,682 13,964,910 Total net position 162,594,638$ 98,315,128$ 5,051,509$ 265,961,275 13,964,910$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Beginning adjustment to unrestricted net position 1,818,374 Current adjustment to unrestricted net position (520,025) Net position of business-type activities 267,259,624$ Business-type Activities - Enterprise Funds
CITY OF SIMI VALLEY
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
See notes to the basic financial statements.
37 75
Ventura County Simi Valley
Simi Valley Waterworks Transit Internal
Sanitation District No. 8 System Total Service Funds
OPERATING REVENUES
Charges for sales and services 32,681,965$ 54,477,581$ 337,475$ 87,497,021$ 6,815,063$
OPERATING EXPENSES
Salaries and benefits 8,538,359 5,585,453 4,652,044 18,775,856 179,521 Materials and supplies:
Water purchases - 33,971,416 - 33,971,416 - Utilities 1,258,654 1,256,186 50,545 2,565,385 - Chemicals 1,098,228 - - 1,098,228 - Other materials and supplies 228,147 348,134 502,458 1,078,739 - Services:
Professional and contracted services 1,417,804 1,415,424 344,504 3,177,732 211,876 Other services 423,123 474,071 301,708 1,198,902 51,545 Insurance 650,900 370,100 543,100 1,564,100 2,612,044 Claims and legal expenses - - - - 5,201,768 General administration 3,313,865 2,807,608 2,380,481 8,501,954 583,061 Depreciation and amortization 2,631,281 1,864,738 612,220 5,108,239 - Total operating expenses 19,560,361 48,093,130 9,387,060 77,040,551 8,839,815 OPERATING INCOME/(LOSS) 13,121,604 6,384,451 (9,049,585) 10,456,470 (2,024,752)
NONOPERATING REVENUES AND (EXPENSES)
Grants - 24,169 3,741,470 3,765,639 - Interest 4,311,198 2,745,373 - 7,056,571 1,272,845 Other 341,268 54,690 77,542 473,500 14,382 Rents and leases - 653,986 - 653,986 - Proceeds from sale of property 11,268 24,447 22,750 58,465 - Total nonoperating revenues/(expenses) 4,663,734 3,502,665 3,841,762 12,008,161 1,287,227
INCOME/(LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 17,785,338 9,887,116 (5,207,823) 22,464,631 (737,525)
CONTRIBUTIONS AND TRANSFERS
Capital contributions 673,799 257,665 3,797,349 4,728,813 - Transfers in (note III.G) - 35,528 5,662,881 5,698,409 - Transfers out (note III.G) (590,741) (534,938) (216,113) (1,341,792) (6,682) Total contributions and transfers 83,058 (241,745) 9,244,117 9,085,430 (6,682) CHANGE IN NET POSITION 17,868,396 9,645,371 4,036,294 31,550,061 (744,207) NET POSITION - BEGINNING 144,726,242 88,669,757 1,015,215 234,411,214 14,709,117 NET POSITION - ENDING 162,594,638$ 98,315,128$ 5,051,509$ 265,961,275$ 13,964,910$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise fund Current adjustment (520,025)$
Change in net position - enterprise funds 31,550,061
Change in net position of business-type activities 31,030,036$ Business-type Activities - Enterprise Funds
CITY OF SIMI VALLEY
STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
See notes to the basic financial statements.
38 76
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 32,339,278$ 54,422,656$ 4,291,705$ 91,053,639$ 6,829,445$ Cash paid for salaries and benefits (7,869,881) (5,310,426) (4,576,802) (17,757,109) (263,302) Cash paid for supplies and materials (4,083,782) (34,804,912) - (38,888,694) - Cash paid for services (1,840,927) (1,889,495) (646,212) (4,376,634) (270,934) Cash paid for insurance (650,900) (370,100) (543,100) (1,564,100) (2,611,019) Cash paid for claims and legal expenses - - - - (2,623,585) Cash paid for general administration (3,313,865) (2,807,608) (2,342,542) (8,464,015) (583,061) Cash from other sources 341,268 54,690 77,542 473,500 - Net cash provided by/(used in) operating activities 14,921,191 9,294,805 (3,739,409) 20,476,587 477,544
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Cash transfers from/(to) other funds (590,741) (499,410) 5,446,768 4,356,617 (6,682) Cash received from grants and other governments - 24,169 769,263 793,432 - Cash transfers for interfund borrowing - - 3,384,947 3,384,947 - Net cash provided by/(used in) noncapital financing activities (590,741) (475,241) 9,600,978 8,534,996 (6,682)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Sewer connection fees and water capital improvement charges 356,999 257,665 - 614,664 - Payment of bonds payable (1,634,431) - - (1,634,431) - Proceeds from sale of property 11,268 24,447 22,750 58,465 - Acquisition of capital assets (8,215,423) (2,015,879) (4,073,913) (14,305,215) - Cash received from capital grants and other governments - - 101,207 101,207 - Net cash provided by/(used in) capital and related financing activities (9,481,587) (1,733,767) (3,949,956) (15,165,310) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 4,189,420 2,650,695 40,366 6,880,481 1,257,658 Rents and leases - 582,055 - 582,055 - Cash provided by investing activities 4,189,420 3,232,750 40,366 7,462,536 1,257,658 NET INCREASE IN CASH AND INVESTMENTS 9,038,283 10,318,547 1,951,979 21,308,809 1,728,520 CASH AND INVESTMENTS, BEGINNING OF YEAR 88,665,389 39,475,473 2,216,361 130,357,223 24,876,262 CASH AND INVESTMENTS, END OF YEAR 97,703,672$ 49,794,020$ 4,168,340$ 151,666,032$ 26,604,782$ Cash and investments 84,133,083$ 48,586,251$ 4,168,340$ 136,887,674$ 26,604,782$ Restricted cash and investments 13,570,589 1,207,769 - 14,778,358 - Total cash and investments, end of year 97,703,672$ 49,794,020$ 4,168,340$ 151,666,032$ 26,604,782$
RECONCILIATION OF OPERATING INCOME/(LOSS) TO NET CASH
PROVIDED BY/(USED IN) OPERATING ACTIVITIES
Operating income/(loss) 13,121,604$ 6,384,451$ (9,049,585)$ 10,456,470$ (2,024,752)$ Adjustments to reconcile operating income/(loss) to net cash provided by/ (used in) operating activities:
Depreciation and amortization 2,631,281 1,864,738 612,220 5,108,239 - (Increase)/decrease in accounts receivable (1,419) (30,560) 127,113 95,134 - (Increase) in inventory (16,363) (130,154) (18,764) (165,281) - Increase/(decrease) in accounts payable (1,482,390) 900,978 609,706 28,294 (6,488) Increase in accrued payroll 20,426 26,348 21,516 68,290 783 Increase in compensated absences 62,264 24,944 12,543 99,751 4,432 Increase in unearned revenue - - 3,904,659 3,904,659 - Increase in water service prepayments - 30,325 - 30,325 - Increase in claims and legal services payable - - - - 2,578,183 Increase/(decrease) in net pension liability 570,687 218,341 36,172 825,200 (130,753) Increase in net other postemployment benefits liability 15,101 5,394 5,011 25,506 41,757 Adjustment for revenues classified as nonoperating - - - - 14,382 Total adjustments 1,799,587 2,910,354 5,310,176 10,020,117 2,502,296 Net cash provided by/(used in) operating activities 14,921,191$ 9,294,805$ (3,739,409)$ 20,476,587$ 477,544$
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 316,800$ - $ 146,501$ 463,301 $ - $ Business-type Activities - Enterprise Funds
CITY OF SIMI VALLEY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
See notes to the basic financial statements.
39 77
Pension
and Other
Private- Postemployment
Purpose Custodial Benefits (OPEB)
Trust Funds Funds Trust Funds
ASSETS
Cash and investments:
Held by City (note III.A) 2,778,060 $ 7,527,873 $ - $ Held by bond trustee (note III.A) 2,175,897 851,803 - Restricted cash and investments:
Money market mutual funds (note III.A) - - 102,438 Mutual funds (note III.A) - - 5,710,346 Accounts receivable - 11,915 - Interest receivable 12,385 - - Capital assets not being depreciated (note V.C) 1,124,174 - - Total assets 6,090,516 8,391,591 5,812,784
LIABILITIES
Accounts payable and accrued liabilities 2,250 5,876 - Accrued interest payable 176,618 - - Deposits - 6,082,603 - Due to bondholders - 1,784,234 - Long-term debt (note V.D):
Due within one year 1,581,306 - - Due in more than one year 9,165,679 - - Total liabilities 10,925,853 7,872,713 -
FIDUCIARY NET POSITION/(DEFICIT)
Net position restricted for other purposes (4,835,337) - - Net position restricted for individuals - 518,878 - Net position restricted for pensions - - 1,490,536 Net position restricted for OPEB - - 4,322,248 Total net position/(deficit) (4,835,337)$ 518,878$ 5,812,784$
CITY OF SIMI VALLEY
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2025
FIDUCIARY FUNDS
See notes to the basic financial statements.
40 78
Pension
and Other
Private- Postemployment
Purpose Custodial Benefits (OPEB)
Trust Funds Funds Trust Funds
ADDITIONS
Property taxes 2,115,261$ -$ -$ Other taxes - 498,395 - Contributions - - 3,909,638 Investment earnings, net of investment expense 152,669 84,215 577,737 TOTAL ADDITIONS 2,267,930 582,610 4,487,375
DEDUCTIONS
Administrative expenses 18,045 9,179 21,631 Benefit payments - - 4,053,939 Interest and fiscal agency expenses 528,995 272,615 - TOTAL DEDUCTIONS 547,040 281,794 4,075,570 CHANGE IN FIDUCIARY NET POSITION 1,720,890 300,816 411,805 FIDUCIARY NET POSITION/(DEFICIT) - BEGINNING (6,556,227) 218,062 5,400,979 FIDUCIARY NET POSITION/(DEFICIT) - ENDING (4,835,337)$ 518,878$ 5,812,784$
CITY OF SIMI VALLEY
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
See notes to the basic financial statements.
41 79
NOTES TO THE BASIC
FINANCIAL STATEMENTS
NOTES TO THE BASIC
FINANCIAL STATEMENTS
80 CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
I. Summary of significant accounting policies ...................................................... 44 A. Reporting entity ............................................................................................... 44 B. Financial statements ....................................................................................... 44 C. Measurement focus, basis of acc ounting, and financial statement presentation ................................................................................................ 46 D. New accounting pronouncements ................................................................. 49 E. Assets, liabilities, deferred outflows/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 ................................................................................... 53
9. Pensions ....................................................................................................... 53
10. Postemployment benefits other than pensions ............................................. 53
11.Deferred outflows/inflows of resources ......................................................... 53
12.Fund balance/net position ............................................................................. 55
13.Net position flow assumption ........................................................................ 56
14.Estimates ..................................................................................................... 56 II. Stewardship, compliance, and accountability .................................................... 56 A. Budgetary in formation .................................................................................... 56 B. Excess of expenditures over appropriations ............................................... 57 C. Deficit fund equity ............................................................................................ 57 III. Detailed notes on all funds ................................................................................... 57 A. Cash and investments ..................................................................................... 57 B. Loans receivable .............................................................................................. 63 C. Accounts receivable ........................................................................................ 67 D. Lease receivable .............................................................................................. 68 E. Capital assets ................................................................................................... 70 F. Construction co mmitments ............................................................................ 72 G. Interfund receivables, payab les, and transfers ............................................. 72 H. Long-term debt ................................................................................................. 75 I. Fund balance designations ............................................................................. 82 J. Assessment dist rict bonds ............................................................................. 83 K. Conduit debt ob ligations ................................................................................. 83 IV. Additional notes to the basic financial statements ............................................ 83 A. Arbitrage rebate liability .................................................................................. 83 B. Risk management ............................................................................................ 83 C. Deferred compen sation plans......................................................................... 84 D. Pension plans................................................................................................... 84 E. Other postemployment benefits ..................................................................... 96 F. Contingencies and subsequent events ......................................................... 105 G. Changes to or within the financial reporting entity ...................................... 105 42 81
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund .............................................................. 106 A. Reporting entity ............................................................................................... 106 B. Cash and investments ..................................................................................... 107 C. Capital assets ................................................................................................... 107 D. Long-term debt ................................................................................................. 107 E. Fiduciary net deficit ......................................................................................... 108 F. Insurance .......................................................................................................... 109 43 82
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
I. Summary of significan t accounting policies
A. Reporting entity
The City of Simi Valley (City) is a municipal corporation governed by an elected mayor and four-member council. The accompanying financial statements present the government and its component units – entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. The following blended component units are included in the City’s financial statements:
Ventura County Waterworks District No. 8 (District) provides water services to the residents of the City. The activity of the District is reported as an enterprise fund.
Simi Valley Public Facilities Financing Aut hority (Authority), formation of which was approved by the City Council on June 23, 2014, provides a financing mechanism for various public projects. The activity of the Authority is reported in the debt service funds.
The two entities listed above are treated as “blended” component units based on the following criteria:
x The members of the City Council also act as the governing body of each entity.
x Each entity is managed by employees of the City in essentially the same manner as it manages its own activities.
Accordingly, separate financial statements are not prepared for the District or the Authority.
B. Financial statements
The basic financial statements of the City are comprised of:
x Government-wide financial statements,
x Fund financial statements,
x Budget-to-actual comparisons for the General fund and major special revenue funds, and
x Notes to the basic financial statements.
In addition, supplementary information is provided for:
44 83
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
x Non-major governmental funds,
x Budget-to-actual comparisons for non-major special revenue funds,
x Internal service funds, and
x Fiduciary funds.
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water and sanitation functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities , which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support.
The statement of net position, statement of activities, and 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:
x Net investment in capital assets - This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of net investment in capital assets. Rather, that portion of the debt is included in the same net position component as the unspent proceeds.
x Restricted - This component of net position consists of constraints placed on net position use imposed by external credito rs (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or constraints imposed by law through constitutional provisions or enabling legislation.
x Unrestricted - This component of net position consists of net position that does not meet the definition of “net investment in capital assets” or “restricted.”
45 84
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
When both restricted and unrestricted resources are available in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government- wide financial statements. Fund financial statements for the City’s governmental, enterprise, and internal service funds are presented after the government-wide financial statements. These statements display information about major funds individually and 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 internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
C. Measurement focus, basis of accounting, and financial statement presentation
Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Under the economic resources measurement focus, all (both current and long-term) economic res ources 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 recogn ized as revenue as soon as all eligibility requirements imposed by the provider have been met.
46 85
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Under the current financial resources measurement focus, only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except reimbursement grant revenues and interest, which are considered available, if they are collected within 180 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) are included in the Statement of Fiduciary Net Position. The Statement of Changes in Fiduciary Net Position presents 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 current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.
The underlying accounting system of the City is based on funds. A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts. The City reports the following major governmental and enterprise funds:
General fund:
General fund is the City’s primary operating fund. It accounts for all financial resources of the government except those required to be accounted for in another fund.
Special revenue funds:
Successor Housing Agency (SHA) to Community Development Agency Housing Administration fund accounts for housing set-aside funds used to reimburse the costs 47 86
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
associated with the administration and coordination of affordable housing programs, processing of affordable housing agreements, amendment or update of the housing element of the general plan, as well as any general plan amendments for affordable housing projects.
Development Related Fees fund accounts for fees paid by developers for infrastructure construction and improvements, traffic and air quality impact mitigation, and program participation in low- and moderate-income housing programs. This fund also accounts for performance and other deposits held by the City.
Capital projects fund:
Streets and Roads fund accounts for all street-related improvements. Grants, transfers of funds from special revenue funds accumulated via service charges, or transfers from the General fund primarily fund these improvements.
Enterprise funds:
Simi Valley Sanitation fund accounts for providing wastewater collection and treatment services in all the incorporated areas within the City, 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 from general liability, property, automobile, physical damage, employee fiduciary, and unemployment claims. It is financed through contributions paid by each operating program based on factors similar to those used by insurance companies (e.g., payroll, property values, and number of employees).
Workers’ Compensation Insurance fund accounts for the workers’ compensation program. It is financed through contributions paid by each operating program based on factors similar to those used by the State Compensation Insurance Fund in calculating premium amounts (e.g., percentage rates by class of employee applied against related payroll costs).
48 87
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Geographical Information System (GIS)/Permits Operations fund accounts for operational costs associated with the City’s GIS and permitting computer systems. It is financed through contributions paid by each operating program based on allocated use of the systems.
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 Cit y 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 ex penses, and benefit payments related to the City’s OPEB plan.
D. New accounting pronouncements
During the fiscal year ended June 30, 2025, the City implemented the following Governmental Accounting Standards Board (GASB) standard. The financial statements included herein apply the requirements and provisions of the standard.
x GASB Statement No. 101 - Compensated Absences . The requirements of this statement are effective for reporting periods beginning after December 15, 2023.
x GASB Statement No. 102 – Certain Risk Disclosures . The requirements of this statement are effective for reporting periods beginning after June 15, 2024.
GASB has released the following statements which will be implemented in future financial statements, if applicable:
49 88
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
x GASB Statement No. 103 – Financial Reporting Model improvements . The requirements of this statement are effective for reporting periods beginning after June 15, 2025.
x GASB Statement No. 104 – Disclosure of Certain Capital Assets . The requirements of this statement are effective for reporting periods beginning after June 15, 2025.
E. Assets, liabilities, deferred outflows/inflows of resources, and net position/fund balance
1. Deposits and investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
State statutes and the City Investment Policy authorize the government to invest in obligations of the U.S. Treasury, the state and local agencies, Federal Government- Sponsored Agency Securities, 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 Treasurer’s investment pool and the California Asset Management Pool (CAMP) operate in accordance with applicable state laws and regulations. The reported value of the pool funds is the same as the fair value of the pool shares.
2. Receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the f und financial statements, are offset by a fund balance non-spendable account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Receivables are shown net of allowance for uncollectibles.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
3. Property taxes
Property taxes in California are levied in accordance with Article 13A of the State Constitution and statutory provisions by the County Assessor for the secured and unsecured tax rolls, and State Board of Equalization for the utility property tax rolls. The tax levy to support general operations is limited to 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 current period, or within 60 days thereafter.
4. Inventories and prepaid items
Inventories are valued at cost using the first-in/first out (FIFO) method. In governmental funds, the purchase method is used to account for inventories. Under this method, inventories are recorded as expenditures when purchased rather than capitalized as an asset. If inventory amounts are significant at year-end, they are reported as an asset.
Inventory amounts in the governmental funds were not significant in fiscal year 2024-25.
In proprietary funds, inventories are recorded as expenses when consumed rather than purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements.
5. Restricted assets
Customer deposits and connection fees are classified as restricted assets on the statement of net position, business-type activities. Customer deposits offset the liability for water service prepayments, and the cash received for water and sewer connection fees is restricted for infrastructure or plant improvements.
6. Capital assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental 51 90
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of one year and an initial, individual cost of $100,000 for infrastructure, $50,000 for building 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 donor.
Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value.
The 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 consolidated into a leave benefit program. It is the City’s policy to permit employees to accumulate earned, but unused, leave.
Accumulations are capped at different levels, depending upon the employee group.
Benefits considered more likely than not to be used or settled at termination are recognized as a liability in the governme nt-wide and propriet ary 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 terminations, resignations, or retirements. The liability for compensated absences include salary-related benefits, where applicable.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
8. Long-term obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan and Public Agency Retirement Services (PARS) Retirement Enhancement plan (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
10. Postemployment benefits other than pensions
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the City of Simi Valley Retiree Benefits Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit terms.
Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.
11. Deferred 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 53 92
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
outflow of resources (expense/expenditure) until then. The City reported the following items related to deferred outflows of resources:
x The deferred loss on debt refunding related to the 2014A Lease Revenue Refunding Bond is reported in the government-wide statement of net position, which results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount has an amortization period of 20 years and will be fully amortized when the debt is fully matured on October 1, 2034.
x Deferred outflows of resources related to pensions and 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 projected 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, the statements of net position and governmental funds balance sheets will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City reported the following items related to deferred inflows of resources:
x Deferred inflows of resources related to lease revenues from leased assets under GASB Statement No. 87 are reported in the government-wide statement of net position and governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources until amortized.
x Deferred inflows of resources 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 changes in actuarial assumptions, differences between actual and projected 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.
x Unavailable revenues are reported 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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
12. Fund balance/net position
Fund balance amounts are reported within one of the fund balance categories listed below.
x Nonspendable fund balance represents funds that are not immediately available to support government operations. The City’s nonspendable fund balance represents long-term receiv ables that will not be conver ted to cash in the near future and prepaid items which represent payments made in advance for goods or services and are not available to finance current expenditures.
x 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.
x Committed fund balance represents funds that can only be designated for specific purposes by formal City Council action. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment.
x Assigned fund balance is similar to committed fund balance except that the City Council can authorize the City Manager, through resolution, to designate the funds for specific purposes. An example is budgeted line-item expenditures to which the City Manager has the authority to make administrative amendments, provided they do not have a significant policy impact or affect budgeted year-end fund balances.
x Unassigned fund balance is the portion of fund balance that does not fall into any of the other fund balance categories. These funds are available for any legitimate government purpose. The General fund is the only fund that reports a positive unassigned fund balance amount. However, in governmental funds other than the General fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.
When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, they are considered to be spent in the order as follows: committed, assigned, and then unassigned.
Net position amounts are reported within one of the categories listed below.
x Net investment in capital assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
x Restricted net position is the portion of net position that has constraints imposed by external parties such as creditors, grantors, or contributors; legislation or regulations of other governments; or imposed by constitutional provisions.
x Unrestricted net position is the portion of net position that consists of the remaining net position that does not meet the definition of “net investments in capital assets” or “restricted net position.”
When both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first and then unrestricted net position as needed.
13. Net position flow assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.
14. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (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 California and does not legally require a budget. However, the City Council annually adopts budgets on a basis consistent with generally accepted accounting principles for the General fund, enterprise funds, special revenue funds, and internal service funds. Annual budgeting for operations facilitates management evaluation and control. Project-length budgets are adopted for the capital project funds. 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 56 95
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
of the fiscal year but may be eligible for reappropriation upon City Manager approval.
Encumbered appropriations are reappropriated in the ensuing year’s budget after review and approval by the City Manager.
The City’s level of budgetary control (i.e., the level at which expenditures may not exceed City Council appropriations) is the fund level for all funds. The City Manager has authority to transfer appropriations within a fund and between departments in any amount, including within the General fund, which include divisions as listed in the following table.
A detailed City organizational chart is included in the introductory section of this document.
City Administration Attorney Administrative Services Planning (ES) Public Ways and Facilities (PW) Public Safety (PD) City Clerk City Attorney Budget Accessibility Compliance (ADA) Building/Library Maintenance Communications City Council Customer Services Advance/Current Planning Crossing Guards Community Policing Bureau City Manager Fiscal Services Animal Services Engineering Crime Analysis Cultural Arts Center Information Services Building and Safety Environmental Compliance Detectives Bureau Human Resources Support Services CDBG Program Graffiti/Abatement Dispatch Senior Services Code Enforcement Landscape/Tree Maintenance Emergency Services Youth Employment Services Community Broadcast Lighting Maintenance Fiscal Services Housing Programs Solid Waste Regulation Maintenance
Neighborhood Council Storm Drains Patrol Bureau
Neighborhood Services Street Maintenance Professional Standards Bureau Planning Commission Traffic Maintenance Records
Task Force on Homelessness Vehicle and Equipment Maintenance Special Enforcement Bureau Traffic Bureau
General Fund Program Areas by Department
B. Excess of expenditures over appropriations
For the fiscal year ended June 30, 2025, there were no funds where expenditures exceeded appropriations.
C. Deficit fund equity
As of June 30, 2025, the Landscape Maintenance District No. 1 fund had a deficit fund balance of $502,936. The City expects to eliminate this deficit from future revenues or transfers from the General fund.
III. Detailed notes on all funds
A. Cash and investments
The cash balances of all funds held by the City are pooled and invested for the purpose of increasing interest earnings through investment activities. The interest earned on these investments is allocated to participating funds based on their average daily cash balances.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Cash and investments at June 30, 2025, are classified as follows:
Statement of net position:
Cash and investments 319,073,501$
Restricted cash and investments 14,778,358
Fiduciary funds:
Cash and investments 10,305,933
Cash and investments held by bond trustee 3,027,700
Restricted investments held by Pension Trust 1,490,536
Restricted investments held by OPEB Trust 4,322,248
Total cash and investments 352,998,276$
Cash and investments at June 30, 2025, consisted of the following:
Cash on hand 6,938$
Deposits with financial institutions 12,274,527
Investments 340,716,811
Total cash and investments 352,998,276$
The following table identifies 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 forth in section 8.1 of the City’s Statement of Investment Policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy or debt agreements, whichever is most restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Debt proceeds held by bond trustees are invested in accordance with the provisions of debt agreements of the City.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Investment Type Max.
Maturity
Authorized
Limit
Max.
Maturity
Authorized
Limit
Local Agency Bonds 5 Years 100% 5 Years 100%
U.S. Treasury Bills, Notes, and Bonds 5 Years 100% 5 Years 100% CA State Registered Warrants 5 Years 100% 5 Years 100%
Notes and Bonds of other States 5 Years 100% 5 Years 100% Federal Instrumentality Securities 5 Years 100% 5 Years 100% Supranational Securities 5 Years 30% 5 Years 30%
Bankers’ Acceptances 180 Days 40% 180 Da ys 40%
Commercial Paper 270 Days 25% 270 Da ys 25%
Non Negotiable CD’s 5 Years None 5 Years 30%
Negotiable CD’s 5 Y ears 30% 5 Y ears 30%
Private Deposit Placements 5 Years 30% 5 Years 30%
Repurchase Agreements 1 Year 100% 1 Year 100%
Reverse Repurchase Agreements 92 Da ys 20% * *
Medium Term Notes 5 Years 30% 5 Years 30%
Money Market Mutual Funds N/A 20% N/A 20%
Collateralized Bank Deposits 5 Years 100% 5 Years 25%
Mortgage Pass-through Securities 5 Years 20% * *
Local Agency Investment Fund (LAIF) N/A $75 Million N/A $50 Million County Pooled Investment Funds N/A 100% N/A $50 Million State Code Limits City Portfolio Limits
* Prohibited by City Investment Policy (with limited authorization for repurchase or reverse repurchase agreements)
Interest Rate Risk
To minimize the impact on portfolio fair value caused by changes in market interest rates, the City holds investments to maturity; matches investment maturities with specific cash flow requirements; invests in a combination of short-, medium-, and long-term investments (laddered maturities); and invests in securities maturing in five years or less from the settlement date.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided on the following table that shows the distribution of the City’s investments by maturity:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
1 Year 1-2 2-5
Amount Or Less Years Years
U.S. Agencies $ 53,673,928 $ 13,432,785 $ 11,063,304 $ 29,177,839 U.S. Treasuries 50,206,174 15,610,806 8,319,700 26,275,668 U.S. Corporates 42,843,489 2,587,948 8,902,973 31,352,568 Money market mutual funds 5,916,010 5,916,010 - - LAIF 179,236,726 179,236,726 - - Held by bond trustees:
Money market mutual funds 3,027,700 3,027,700 - - Restricted inv estments held by Pension and OPEB Trusts:
Money market mutual funds 102,438 102,438 - - Mutual Funds 5,710,346 5,710,346 - - Total $ 340,716,811 $ 225,624,759 $ 28,285,977 $ 86,806,075 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 investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Minimum
Legal
Amount Rating Aaa/Aaa-mf Aa1 Aa2 Aa3 A1 A2 A3 Not Rated U.S. Agencies 53,673,928$ N/A -$ 51,694,384$ -$ -$ -$ -$ -$ 1,979,544$ U.S. Treasuries 50,206,174 N/A - 48,198,354 - - - - - 2,007,820 U.S. Corporates 42,843,489 A3 2,939,970 - 3,087,307 5,742,729 19,753,129 5,171,616 6,148,738 - Money market mutual funds 5,916,010 N/A - - - - - - - 5,916,010 LAIF 179,236,726 N/A - - - - - - 179,236,726 Held by bond trustees:
Money market mutual funds 3,027,700 N/A - - - - - - - 3,027,700 Money market mutual funds 102,438 N/A - - - - - - - 102,438 Mutual Funds 5,710,346 N/A - - 1,809,110 - - 96,455 - 3,804,781 Total 340,716,811$ 2,939,970$ 99,892,738$ 4,896,417$ 5,742,729$ 19,753,129$ 5,268,071$ 6,148,738$ 196,075,019$ Moody's Ratings as of Year End
Investment Type
Restricted investments held by
Pension and OPEB Trusts:
Concentration of Credit Risk
In addition to the limitations stipulated in the Authorized Investments table, the City’s investment policy lists the following limitations:
x Authorized supranational securities must have a maximum maturity not exceeding five years from the date of trade settlement and shall be rated at least “AA” or its equivalent by a nationally recognized statistical rating organization (NRSRO) at the time of purchase. Investments in supranational securities shall not exceed 30% of the portfolio.
x Medium-term notes issued by corporations organized and operating within the 60 99
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
United States or by depository institutions licensed by the United States or any state and operating within the United States with a final maturity not exceeding five years from the date of trade settlement and rated at least “A” or the equivalent by an NRSRO at the time of purchase. No more than 5% of the portfolio shall be invested in any one issuer and the aggregate investment in medium-term notes shall not exceed 30% of the portfolio.
x State Obligations and Local Agency Issues must be rated at least “A+” or the equivalent by an NRSRO at the time of purchase with maturities not exceeding five years from the date of trade settlement. No more than 5% of the City’s total portfolio shall be invested in any one municipal issuer and the aggregate investment in municipal bonds may not exceed 30% of the portfolio.
x 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.
x Purchases of negotiable certificates of deposit may not exceed 30% of the portfolio with no more than 5% held in any one issuer.
x 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.
x Bond proceeds held by trustees and fiscal agents may be invested in LAIF, other investment pools, and other investment instruments in compliance with California Government Code and the bond indenture documents for each bond issue. For bond proceeds invested in LAIF, the City follows California’s provisions stating bond proceeds are one-time deposits, have no maximum deposit amount, and are maintained on 30-day increments.
x To the extent bond documents require an alternate investment program than this investment policy, trustees and fiscal agents shall follow the alternate investment instructions.
Custodial Credit Risk
All demand deposits and certificates of deposit held by the City are entirely insured or collateralized. California Government Code Section 53652 requires California banks and savings and loan associations to secure a local government agency’s deposits by pledging government securities with a market value equal to 110% of the deposits or pledging first trust deed mortgage notes with a market value equal to 150% of the total deposits.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Pursuant to California Government Code Section 53653, the City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC.
To protect investments against custodial credit risk caused by the collapse of individual securities dealers, all securities owned by the City are held by the City’s custodial bank, a third-party bank trust department, acting as agent for the City under the terms of a custody agreement.
Investments in any one issuer (other than U.S. Treasury Obligations, money market mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows:
Issuer Investment Type Reported Amount
Federal Farm Credit Bank U.S. Agencies 20,620,967$
Federal Home Loan Bank U.S. Agencies 20,285,437
Federal Home Loan Mortgage Corporation U.S. Agencies 5,428,435 Federal National Mortgage Association U.S. Agencies 7,339,089
As of June 30, 2025, 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 oversight of the Treasurer of the State of California. In addition to the primary City account, LAIF accounts are also maintained for the following blended component units of the City: Waterworks District No. 8, Successor Agency to the Community Development Agency, and Indust rial Development Authority. The City’s investment in LAIF is highly liquid, as deposits can be converted to cash within twenty- four hours. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Fair Value Measurement
The City categorizes its fair value measurement 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, that are obser vable for an asset or liability either directly or indirectly; and,
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Level 3: Investments reflect prices based on unobservable inputs for an asset or liability.
The City has the following fair value measurement as of June 30, 2025:
Amount Level 1 Level 2 Level 3
U.S. Agencies $ 53,673,928 - $ 53,673,928$ - $ U.S. Treasuries 50,206,174 50,206,174 - - U.S. Corporates 42,843,489 - 42,843,489 - Mutual Funds 5,710,346 5,710,346 - - Total investments measured at fair value: 152,433,937 55,916,520$ 96,517,417 $ - $ Investments not subject to fair value measurement hierarchy:
Money market mutual funds 5,916,010
Held by bond trustees:
Money market mutual funds 3,027,700
Restricted investments held by Pension and OPEB Trusts:
Money market mutual funds 102,438
LAIF 179,236,726
Total investments: $ 340,716,811
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 Grant fund, the HOME Grant fund, Permanent Local Housing Grant fund, and the Successor Housing Agency to Community Development Agency Housing Administration (Agency) fund. One of the primary means of providing affordable housing is through negotiation with developers to incorporate affordable units within new residential developments. In addition, the Cit y maintains an active home rehabilitation program, offering 2% interest, deferred payment loans to lower-income homeowners to preserve the City’s housing stock.
Affordable Housing Program
x Casa de Paz Housing, Inc., an affiliate of Many Mansions (Casa de Paz Apartments)
In July 2001, the Agency entered into an affordable housing agreement with Casa de Paz Housing, Inc. to provide financial assistance for the acquisition and 63 102
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
rehabilitation of a 14-unit apartment comple x, restricting occu pancy to very low- income persons with disabilities. The City and Agency approved an amended affordable agreement on November 20, 2001, to incorporate additional provisions required by HUD. The loan is due 50 years from the certificate of occupancy dated October 25, 2002.
x ARC of Ventura County, Inc. (Vista Del Monte Rental Condominiums)
In April 2002, the Agency entered into an affordable housing agreement with ARC of Ventura County, Inc. to provide financial assistance for the acquisition of four condominium units for occupancy by very low-income, developmentally disabled persons. The loan is due and payable 55 years from the affordable housing agreement dated August 16, 2002, or within 60 days after HUD provides notice to the developer that it will no longer provide project-based rental assistance.
x Alamo & Fairbanks Associates, an affiliate of Cabrillo Economic Development Corporation (Plaza del Sol Apartments)
In September 2003, the Agency entered into an amended affordable housing agreement with Alamo & Fairbanks Associates, to assist with the financing for constructing and operating a 70-unit multifamily apartment project, Plaza del Sol Apartments. The agreement restricts the rental of 34 units to very low- and low- income households. The note is to be repaid from residual receipts and is due and payable 55 years from the last certificate of occupancy dated August 11, 2005.
x 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 Apartments, for occupancy by extremely low-income, mentally disabled, and homeless individuals. The note is due and payable 55 years from issuance of the promissory note dated June 17, 2008.
x 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 assistance in the form of both a bridge and permanent loans for the acquisition and rehabilitation of a 12-unit apartment complex, Peppertree Apartments, for occupancy by extremely low-income, mentally disabled, and homeless individuals. The bridge loan, with terms of due and payable 18 months from issuance, was paid off in January 2015. The permanent loan is due and payable 55 years from issuance of the promissory note dated October 14, 2013.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
x Camino Esperanza, L.P., an affiliate of Cabrillo Economic Development Corporation (Camino Esperanza Senior Apartments)
In December 2015, the City entered into an affordable housing agreement with Cabrillo Economic Development Corporation to provide a $500,000 permanent loan to develop a 31-unit senior housing complex. The permanent loan shall bear 3% simple interest per annum beginning on the 18
th anniversary of the promissory
note dated December 1, 2015. Subsequently, the City provided an additional $186,279 interest-free loan for the project in May 2018 and amended the affordable housing agreement terms to add an additional 10 years of affordability.
The first note is due and payable 55 years from issuance of the promissory note dated December 1, 2015. The second note is due and payable 65 years from issuance of the final certificate of occupancy dated February 22, 2017.
x Simi Vintage Sycamore 650, L.P. (Vintage at Sycamore Senior Apartments)
In February 2020, the City entered into an affordable housing agreement with Simi Vintage Sycamore 650, L.P. (developer) to provide a loan in the amount of $3,500,000 as financial assistance towards the development of a 99-unit multifamily senior apartment project on an approximately 2.98-acre parcel of land.
The rental of 10 apartment units will be restricted to very low-income senior households, and 38 apartment units will be restricted to low-income senior households. The loan is due and payable 55 years from issuance of the promissory note, dated February 25, 2020, and bears 3% annual interest for the term of the note.
Home Rehabilitation Program
This program was established in 1981. The program offers low interest, deferred loans to lower-income homeowners. Qualified owners of detached, single-family residences are eligible for a deferred 2% loan that accrues interest for a maximum of 15 years. Full repayment is required when the property is sold, refinanced, leased, changes title, or 30 years from issuance of the promissory note, whichever occurs first. The maximum loan amount is $50,000.
Homebuyer Program
In response to the dissolution of state redevelopment program funding (a result of California Assembly Bill 1X 26), the City Council authorized suspension of two affordable housing programs - the First Time Home Buyer (FTHB) Program and the Mobile Home Rehab Program. Over its many years of operation, the FTHB program generated several different loan types, the most recent of which would provide $50,000 per bedroom up to $200,000. On June 6, 2016, the City Council approved reinstatement of the FTHB assistance program utilizing remaining grant funds from the 2011 CalHome award. The City maintains 165 loans generated by 65 104
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
this program, many of which are due and payable at the end of a 55-year term of affordability.
Permanent Local Housing Allocation
The California Senate Bill 2 (SB 2) was passed in 2017 as part of a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs.
Specifically, SB 2 established a permanent source of funding intended to increase the affordable housing stock in California. A portion of that funding provides an annual allocation to entitlement cities. The City can use the funding consistent with its adopted five-year plan and within the permissible activities as set by the State.
All permissible activities support housing stability through ownership opportunities, rehabilitation, homeless prevention, ra pid rehousing, or rental housing development. The City Manager is authorized to approve budget amendments to allow for the expenditure of program income and recaptured funds, as needed, to comply with grant requirements.
Other loans receivable of the City are comprised of:
x Simi Valley Cultural Arts Center Foundation
During fiscal years 1994-95 and 1995-96 the City entered into a loan agreement with the Simi Valley Cultural Arts Center Foundation to fund start-up costs of the Center. One dollar of this loan is retired for every three dollars deposited in the Simi Valley Cultural Arts Center Foundation endowment fund or provided for operations in excess of the annual support campaign.
x El Rancho Simi Cemetery District (formerly 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 amount was a loan from the City to the Cemetery at an interest rate of 6.08% to be repaid in 10 years. The Cemetery fell into financial hardship and was unable to repay this loan. In fiscal year 1995-96, the repayment terms of the loan were revised, and the Cemetery’s property tax pass-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 included in the receivable balance. Additionally, the receivable balance is stated net of an uncollectible allowance of $74,397. In November 2015, Cemetery staff submitted an informal request for consideration 66 105
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
of complete loan forgiveness by the City; as of June 30, 2025, no action has been taken.
Loans receivable (net of allowance for uncollectibles) balances at June 30, 2025, were as follows:
Interest
Rate
Term
(Yrs)
Year
Due Principal Due Interest Due Total
Affordable Housing Program:
Casa de Paz Apartments 0.0% 50 2052 122,551 $ - $ 122,551$ ARC of Ventura County 0.0% 55 2057 175,000 - 175,000 Plaza del Sol Apartments 3.0% 55 2060 1,900,000 570,482 2,470,482 La Rahada Apartments 3.0% 55 2063 250,000 127,792 377,792 Peppertree Apartments 3.0% 55 2068 575,000 201,801 776,801 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 3,500,000 545,425 4,045,425 Affordable Housing Program 7,208,830 1,445,500 8,654,330 First Time Homebuyer Program:
FTHB - Successor Housing Agency 9,705,112 - 9,705,112 FTHB - LHF 1,764,600 - 1,764,600 FTHB - CalHome 60,000 - 60,000 FTHB - HOME 567,700 - 567,700 FTHB - CDBG 20,800 - 20,800 First Time Homebuyer Program Equity Share 12,118,212 - 12,118,212 Home Rehabilitation Program:
Home Rehab - Successor Housing Agency 217,120 43,437 260,557 Home Rehab - LHF 181,610 19,349 200,959 Home Rehab - CalHome 682,355 140,723 823,078 Home Rehab - HOME 1,234,900 171,890 1,406,790 Home Rehab - CDBG 140,150 37,379 177,529 Home Rehab Earthquake - HOME 143,306 42,992 186,298 Home Rehab Earthquake - CDBG 30,000 9,000 3 9,000
Home Rehabilitation Program 0.0 - 3.0% 2,629,441 464,770 3,094,211 Permanent Local Housing Allocation:
Homebuyer Assistance Program 2019-2024 256,800 - 256,800 Permanent Local Housing Allocation 256,800 - 256,800 Total housing loans receivable 22,213,283 1,910,270 24,123,553 Other City loans receivable:
Cultural Arts Center Foundation 0.0% 141,818 - 141,818 Cemetery District 0.0% 74,397 - 74,397 Other City loans receivable 216,215 - 216,215 Total loans receivable 22,429,498$ 1,910,270$ 24,339,768$
C. Accounts receivable
Accounts receivable reported under governmental activities as of fiscal year-end are reported net of allowance for uncollectibles as follows:
67 106
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Accounts
receivable
Allowance for
uncollectibles
Total accounts
receivable, net
General Fund 3,761,746 $ (404,336) $ 3,357,410$
SHA to CDA Housing Administration 56,524 - 56,524 Streets and Roads 48,537 - 48,537 Nonmajor Governmental Funds 1,122,568 - 1,122,568 Total 4,989,375$ (404,336) $ 4,585,039$
D. Lease receivable
On April 24, 2012, the City entered into an amendment to the lease agreement of May 1990 with the Boys and Girls Club for property located at 2850 Lemon 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 five-year license agreement with AT&T for property located at the Walnut Avenue water tank with the option to extend three times for five 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 agreement with Kaiser Permanente for property located at 3855-A Alamo Street with the option to extend two times for five 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 five-year license agreement with Phoenix Tower International for property located at Walnut Avenue water tank with the option to extend one time for five 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 five-year license agreement with AT&T for property located at the Hilltop Road water tank with the option to extend one time for five years. At 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 five-year license agreement with T-Mobile for property located at the First Street water tank with the option to extend one time for five 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 five-year license agreement with T-Mobile for property located at the Madera Road water tank with the option to extend one time for 68 107
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
five 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 August 19, 2024, the City entered into a five-year license agreement with STC One for property at the Stearns Street water tank, with the option to extend the agreement one time for an additional five years. The initial payment schedule includes a credit applied to the first annual payment in January 2025, with full payments beginning in January 2026.
At inception, STC One paid a license fee of $53,985, with an applied credit balance of $31,961, increasing 5% annually and 10% at the license renewal date.
On October 21, 2024, the City entered into a five-year license agreement with STC One for property at the First Street water tank, with the option to extend the agreement one time for an additional five years. At inception, STC One paid a license fee of $64,727, increasing 5% annually and 10% at the license renewal date.
On January 1, 2025, the City entered into a two-year lease agreement with the State of California for property located at 3855-D Alamo Street. At inception, the State of California paid a monthly lease fee of $13,091.
At June 30, 2025, the lease receivable and deferred inflows of resources for the above leases were $12,309,879 and $11,022,222, respectively.
Year Ending
June 30: Lease Receivable
2026 916,004 $
2027 898,139
2028 872,136
2029 851,497
2030 633,322
2031-2035 3,472,570
2036-2040 3,025,536
2041-2045 1,193,273
2046-2050 117,046
2051-2055 129,797
2056-2060 143,939
2061-2062 56,620
12,309,879$
69 108
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
E. Capital assets
Capital asset activity for the fiscal year ended June 30, 2025, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land 10,621,811 $ - $ - $ 10,621,811$ Construction-in-progress 1,255,182 13,040,652 (12,828,465) 1,467,369 Total capital assets, not being depreciated 11,876,993 13,040,652 (12,828,465) 12,089,180 Capital assets, being depreciated:
Buildings and improvements 65,286,521 - - 65,286,521 Furnishings and equipment 19,772,635 5,385,313 (70,092) 25,087,856 Vehicles 8,016,175 1,905,108 (338,460) 9,582,823 Infrastructure 388,206,111 12,828,465 - 401,034,576 Total capital assets being depreciated 481,281,442 20,118,886 (408,552) 500,991,776 Capital assets, being amortized:
Intangibles 16,186,924 235,893 - 16,422,817 Right-of-use lease 2,606,803 - - 2,606,803 Right-of-use SBITAs 1,091,602 - (290,504) 801,098 Total capital assets being amortized 19,885,329 235,893 (290,504) 19,830,718 Less accumulated depreciation for:
Buildings and improvements (32,608,935) (1,612,017) - (34,220,952) Furnishings and equipment (13,720,246) (685,132) 49,896 (14,355,482) Vehicles (5,926,208) (724,720) 327,046 (6,323,882) Infrastructure (203,890,827) (9,263,655) - (213,154,482) Total accumulated depreciation (256,146,216) (12,285,524) 376,942 (268,054,798) Less accumulated amortization for:
Intangibles (9,219,282) (721,634) - (9,940,916) Right-of-use lease (260,683) (86,893) - (347,576) Right-of-use SBITAs (539,581) ( 249,077) 290,504 (498,154) Total accumulated amortization (10,019,546) (1,057,604) 290,504 (10,786,646) Total capital assets, being depreciated/amortized, net 235,001,009 7,011,651 (31,610) 241,981,050 Governmental activities capital assets, net 246,878,002$ 20,052,303$ (12,860,075)$ 254,070,230$
70 109
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,216,994 $ - $ - $ 1,216,994$ Construction-in-progress 31,916,999 9,735,756 (31,398,852) 10,253,903 Total capital assets, not being depreciated 33,133,993 9,735,756 (31,398,852) 11,470,897 Capital assets, being depreciated:
Buildings and improvements 17,638,805 411,551 - 18,050,356 Furnishings and equipment 8,914,026 1,094,490 (355,910) 9,652,606 Vehicles 13,923,100 4,997,509 (2,421,940) 16,498,669 Infrastructure 234,974,824 30,356,112 - 265,330,936 Total capital assets being depreciated 275,450,755 36,859,662 (2,777,850) 309,532,567 Capital assets, being amortized:
Intangibles 54,400 - - 54,400 Right-of-use SBITAs 163,348 - - 163,348 Total capital assets being amortized 217,748 - - 217,748 Less accumulated depreciation for:
Buildings and improvements (9,558,275) (416,745) - (9,975,020) Furnishings and equipment (6,291,716) (279,899) 355,910 (6,215,705) Vehicles (11,686,019) (777,634) 2,421,940 (10,041,713) Infrastructure (115,147,096) (3,593,124) - (118,740,220) Total accumulated depreciation (142,683,106) (5,067,402) 2,777,850 (144,972,658) Less accumulated amortization for:
Intangibles (54,400) - - (54,400) Right-of-use SBITAs (40,837) (40,837) - (81,674) Total accumulated amortization (95,237) (40,837) - (136,074) Total capital assets, being depreciated/amortized, net 132,890,160 31,751,423 - 164, 641,583 Business-type activities capital assets, net 166,024,153$ 41,487,179$ (31,398,852)$ 176,112,480$
71 110
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Depreciation and amortization expenses were charged to functions/programs of the primary government as follows:
Governmental activities:
General government 8,566,673 $
Community services 517,568
Planning 31,470
Public safety 935,362
Public ways and facilities 3,292,055
13,343,128$
Business-type activities:
Sanitation 2,631,281 $
Waterworks 1,864,738
Transit 612,220
5,108,239$
Total depreciation/amoritzation expense - governmental activities Total depreciation/amortization expense - business-type activities F. Construction commitments
The City has active construction projects as of June 30, 2025. 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, 2025 Commitments*
WQCP Digester and Secondary Clarifier Installation 7,827,064$ 4,503,310 $ 3,323,754 $ Transit HVAC System Upgrade 568,557 55,000 513,557 Total Commitments 8,395,621$ 4,558,310 $ 3,837,311 $ * 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 Development Agency Housing Administration and nonmajor governmental funds and the General fund are also for short-term loans to cover operations.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
The composition of interfund receivables and payables for the fiscal year ended June 30, 2025, is as follows:
Due to / from other funds:
Receivable Fund Payable Fund
General Nonmajor governmental 1,287,760$
Proprietary 3,384,947
SHA to CDA Housing Administration General 519
Nonmajor governmental General 19,549
Total 4,692,775$
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, 2025, is as follows:
73 112
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
From Fund To Fund Amount Purpose
General Streets and roads $ 7,357,540 Fund street and road programs Nonmajor
governmental 4,579,092
Fund Landscape zones,
scheduled debt service, and
contributions to replacement
funds
Proprietary 35,528 Claim payment
11,972,160
Development
Related Fees General 370,000
Fund projects impacted by new
development
Streets and roads 1,198,150 Fund street proects Nonmajor
governmental 837,586
Fund scheduled debt service and
contributions to replacement
funds
2,405,736
Nonmajor
governmental General 3,789,389
Fund gas tax, development
agreements, and State
Supplemental Law Enforcement
Services
Streets and roads 3,821,098 Fund street projects Nonmajor
governmental 56,000
Contribution to carpet
replacement
Proprietary 5,662,881 Fund transit operations 13,329,368
Total governmental funds 27,707,264
Transfers From
Transfers To Amount Purpose
Proprietary General 722,574
Contributions for pension and
OPEB costs
Streets and roads 500,000 Fund street projects Nonmajor
governmental 125,900
Contributions to replacement
funds and fund capital project
funds
1,348,474
Total proprietary funds 1,348,474
Total transfers $ 29,055,738
74 113
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
H. Long-term debt
The Simi Valley Public Facilities Financi ng Authority (SVPFFA) was created in June 2014. It is a blended component unit of the City which has authority to issue bonded debt on behalf of the City for certain types of financing structures such as lease revenue bonds and certificates of participation. At year-end, outstanding long-term bonded debt was comprised of the following:
x City of Simi Valley 2014A Lease Revenue Refunding Bonds (LRRB):
Original issue amount $18,795,000; interest rates at 2.00% to 3.75%, fully maturing October 1, 2034. The LRRB are payable in annual installments ranging from $270,000 to $1,445,000. They were issued at a premium, which has been added to the new debt and is being amortized over the life of the bonds. These LRRB were issued to provide financing for full redemption of the 2004 SVPFFA Certificates of Participation (COP). Through the refunding of the COP, the City realized net present value savings of $3.2 million or 14.9% of the refunded bonds. The annual lease/debt service payments will be supported by contributions from various City funds based on the benefit received. The identified funds have the long-term financial capacity to support the required payments. In the event of a default, as defined in the lease agreement, notwithstanding anything in the lease agreement or in the indenture to the contrary, there is no right under any circumstances to accelerate the base rental payments or otherwise declare any base rental payments not then in default to be immediately due and payable, nor do the Authority or the Trustee have any right to re-enter or re-let the property except as described in the lease agreement. As of June 30, 2025, total interest and principal remaining on the bonds is $14,720,056.
x City of Simi Valley Lease Revenue Bonds, Series 2016 New Clean Renewable Energy Bonds (NCREB) and City of Simi Valley Tax-Exempt Lease, Series 2016:
The City entered into a lease-leaseback arrangement and a lease arrangement with the SVPFFA to provide financing for the NCREBs Solar Equipment and the Tax- Exempt Project for the financing of the acquisition, construction, and installation of certain solar energy and other energy efficiency capital improvements to existing City buildings and property. An allocation of NCREBs was received by the City for $9,226,619, interest rates at 1.50% to 2.50%, fully maturing September 1, 2036. The tax-exempt solar component consisted of $740,459 of bond proceeds also fully maturing September 1, 2036. As NCREBs financing is restricted only for solar power systems, the tax-exempt bonds will be used to finance the re-roofing of City Hall, the resurfacing of the parking lot at the Senior Center, and the installation of electric vehicle chargers at the Civic Center. In the event of a default, as defined in the lease agreement, there is no right under any circumstance to accelerate the lease payments or otherwise declare any lease payments not then in default to be immediately due and payable. As of June 30, 2025, total interest and principal remaining on the 2016 NCREBs and tax-exempt bonds is $7,773,446 and $564,939, respectively. 75 114
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
x 2017 Tax-Exempt Equipment Lease Agreement:
The City entered into an agreement with the SVPFFA as lessor and the City as lessee to provide financing for a replacement telephone system, energy efficiency upgrades including LED lighting at City facilitie s, and HVAC system replacement and improvements. The lease agreement obligates the City to make base lease payments to SVPFFA, and SVPFFA assigned such payments to Bank of America. The Simi Valley Senior Center is the asset which was used as collateral for this tax-exempt financing. The issue price of the tax-exempt bond associated with this transaction is $6,408,600, based on an interest rate of 3.00% per year. In the event of a default, as defined in the lease agreement, there is no right under any circumstance to accelerate the lease payments or otherwise declare any lease payments not then in default to be immediately due and payable. As of June 30, 2025, the total interest and principal remaining on the issuance is $3,920,419.
x 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 purchase and sale agreement and pole license agreement with Southern California Edison for the acquisition of streetlights located in Simi Valley. Annual savings of $510,000 in the City’s electrical costs are estimated to be achieved through owning of the streetlights and their conversion to LED. The newly acquired streetlights act as the pledged asset for this taxable financing. The stated acquisition amount for this transaction is $5,655,845. The type of debt instrument for this private placement financing is certificates of participation/leases, with a stated interest rate of 5.15% and a settlement date of May 15, 2018. In the event of a default, as defined in the lease agreement, there is no right to accelerate any rental payment or otherwise declare any rental payment or other amount payable not then in default to be immediately due and payable. As of June 30, 2025, total interest and principal remaining on the lease agreement is $5,108,740.
x 2019 Taxable Equipment Lease/Purchase Agreement:
On December 10, 2019, the City entered into a lease arrangement with Banc of America Leasing & Capital, L.L.C. to provide financing for the acquisition and installation of certain equipment at the water quality control plant. The project provides enhanced electrical functions for energy savings as well as replacement and rehabilitation of outdated and worn-out equipment. The stated acquisition amount for this transaction is $33,816,566. The type of debt instrument for this private placement financing is certificates of participation/leases with a stated interest rate of 2.31% 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, 2025, total interest and principal remaining on the lease agreement is $33,631,292.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Annual debt service requirements to maturity
The annual requirements to amortize the bonds and advances as of June 30, 2025, including interest, are as follows:
Governmental Activities
Year Ending
June 30: Principal Interest Total
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 1,200,000 271,025 1,471,025 2031-2035 6,730,000 631,806 7,361,806 12,175,000$ 2,545,056 $ 14,720,056 $
2014A Lease Revenue Refunding Bonds
Year Ending
June 30: Principal Interest Total
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 494,922 153,424 648,346 2031-2035 2,755,863 480,790 3,236,653 2036-2037 1,246,654 45,403 1,292,057 6,310,589$ 1,462,857$ 7,773,446$
2016 New Clean Renewable Energy Bonds
77 116
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Year Ending
June 30: Principal Interest Total
2026 35,427 $ 11,720 $ 47,147 $ 2027 36,306 10,827 47,133 2028 37,210 9,912 47,122 2029 38,136 8,974 47,110 2030 39,086 8,013 47,099 2031-2035 210,521 24,783 235,304 2036-2037 91,726 2,298 94,024 488,412$ 76,527 $ 564,939 $
2016 New Clean Renewable Energy Bonds Tax-Exempt
Year Ending
June 30: Principal Interest Total
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 531,927 41,915 573,842 2031-2033 998,212 53,001 1,051,213 3,506,291$ 414,128$ 3,920,419$
2017 Equipment Lease (Tax-Exempt)
Year Ending
June 30: Principal Interest Total
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 445,874 121,764 567,638 2031-2034 2,028,528 242,023 2,270,551 4,047,536$ 1,061,204$ 5,108,740$
2018 Equipment Lease/Purchase Agreement
78 117
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Business-type Activities
Year Ending
June 30: Principal Interest Total
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 1,833,192 486,208 2,319,400 2031-2035 9,824,524 1,772,473 11,596,997 2036-2040 9,859,572 577,726 10,437,298 28,443,411$ 5,187,881 $ 33,631,292 $
2019 Equipment Lease/Purchase Agreement
Other long-term debt of the City is comprised of:
City-wide Activities
x The liability for compensated absences is recognized in accordance with GASB Statement No. 101. The liability includes personal time off and sick leave earned, but not yet used, that is more likely than not to be used or paid. The largest portion of the liability (80%) is attributable to the General fund. The current portion of the compensated absences liability is estima ted based on histor ical usage and payout trends, as well as employment policies. Ap proximately 15% of the total liability is expected to be liquidated within one year. As of June 30, 2025, the total liability was $8,745,929, of which $1,279,093 is expected to be liquidated within one year.
x Net pension liability of $155,907,813. 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.
x OPEB liability of $71,988,725. 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 whic h an employee is charged. See note IV.E for additional detail regarding this liability.
Governmental Activities
x Claims and legal services payable of $12,067,757, 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 79 118
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
incurred but not yet reported as of June 30, 2025. See note IV.B for additional detail regarding this liability.
x Right-of-use lease liability
The City has entered into an agreement to lease the library building from the County of Ventura which commenced on December 31, 2011, for a term of 50 years. The lease liability is measured at a discount rate of 1.57%. As a result of the lease, the City has recorded a right-of-use asset with a net book value of $2,259,227 and a right- of-use liability of $2,468,172 as of June 30, 2025.
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2025, were as follows:
Year Ending
June 30: Principal Interest Total
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 54,792 35,830 90,622 2031-2035 330,467 165,092 495,559 2036-2040 438,609 135,880 574,489 2041-2045 568,471 97,520 665,991 2046-2050 723,876 48,188 772,064 2051 165,978 2,606 168,584 2,468,172$ 635,989$ 3,104,161$
x Right-of-use subscription-based information technology arrangements (SBITA) liability
The City entered into a software subscription 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 payments expected to be made during the subscription term measured at a discount rate of 4.19%. As a result of the software subscription, the City has recorded a right-of-use asset with a net book value of $107,733 and a right-of-use liability of $108,155 as of June 30, 2025.
The future minimum SBITA obligations and the net present value of these minimum SBITA payments as of June 30, 2025, were as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Year Ending
June 30: Principal Interest Total
2026 52,968 $ 4,532 $ 57,500 $ 2027 55,187 2,312 57,500 108,155$ 6,844 $ 115,000$
The City entered into a software subscription agreement with SoftwareOne on January 1, 2024, for a term of two years. Subscription payable is measured 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 $195,211 and a right- of-use liability of $203,086 as of June 30, 2025.
The future minimum SBITA obligations and the net present value of these minimum SBITA payments as of June 30, 2025, were as follows:
Year Ending
June 30: Principal Interest Total
2026 203,086 $ 8,306 $ 211,392$ 203,086$ 8,306 $ 211,392$
Business-type Activities
x Right-of-use SBITA liability
The City entered into a software subscription agreement with Dropcountr on September 1, 2022, for a term of five years. Subscription payable is measured at the present value of the subscription payments expected to be made during the subscription term measured at a discount rate of 4.19%. As a result of the software subscription, the City has recorded a right-of-use asset with a net book value of $81,674 and a right-of-use liability of $85,025 as of June 30, 2025.
The future minimum SBITA obligations and the net present value of these minimum SBITA payments as of June 30, 2025, were as follows:
Year Ending
June 30: Principal Interest Total
2026 41,640 $ 3,563 $ 45,203 $ 2027 43,385 1,818 45,203 85,025$ 5,381 $ 90,406 $
81 120
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Changes in long-term liabilities
Long-term liability activity for the year ended June 30, 2025, was as follows:
Beginning
B alances Increase D ecrease
E nding
Balance s
Due Within
One Year
Governmental activities:
2014A lease revenue refunding bond 13,110,000$ -$ (935,000)$ 12,175,000$ 980,000$ 2016 New Clean Renew able Energy Bonds (NCREBs) 6,725,091 - (414,502) 6,310,589 429,467 2016 NCREBs tax exempt 522,975 - (34,563) 488,412 35,427 2017 lease agreement 3,964,631 - (458,340) 3,506,291 472,194 2018 lease agreement 4,393,313 - (345,777) 4,047,536 363,814 Add (less) deferred amounts:
Bond premium 1,001,777 - (98,637) 903,140 98,637 Total bonds payable 29,717,787 - (2,286,819) 27,430,968 2,379,539 Claims and legal services 9,489,575 5,153,010 (2,574,828) 12,067,757 3,634,493 Compensated absences* 6,857,223 253,705 - 7,110,928 1,030,823 Right-of-use lease liability 2,506,984 - (38,812) 2,468,172 41,766 Right-of-use SBITA liability 557,186 - (245,945) 311,241 256,054 Net pension liability 138,718,051 7,321,721 (19,482,687) 126,557,085 - Net OPEB liability 61,211,185 10,169,890 (5,907,267) 65,473,808 - Governmental activity long-term liabilities 249,057,991$ 22,898,326$ (30,536,358)$ 241,419,959$ 7,342,675$ B usiness-type activities:
2019 lease agreement 30,077,842$ -$ (1,634,431)$ 28,443,411$ 1,672,380$ Compensated absences* 1,535,250 99,751 - 1 ,635,001 248,270
Right-of-use SBITA liability 124,990 - (39,965) 85,025 41,640 Net pension liability 30,668,196 1,128,239 (2,445,707) 29,350,728 - Net OPEB liability 7,889,181 523,661 (1,897,925) 6,514,917 - Business-type activity long-term liabilities 70,295,459$ 1,751,651$ (6,018,028)$ 66,029,082$ 1,962,290$ *The change in the compensated absences liability is presendated as a net change.
For governmental activities, pension, OPEB, and compensated absences obligations are generally liquidated by the General fund.
Lines of Credit
The City has no available, unused lines of credit.
I. Fund balance designations
Fund balance is categorized as Nonspendable, Restricted, Committed, Assigned, or Unassigned. The City Council adopts and amends committed fund balance amounts through an ordinance. The City Manager authorizes assigned amounts for specific purposes pursuant to the policy-making powers granted to them through a resolution.
Sometimes the City will fund outlays for a part icular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, 82 121
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
J. Assessment district bonds
The City has formed several special assessment districts and subsequently issued bonds for the construction of public improvements within these districts. The City acts as an agent for the property owners in collecting assessments for the payment of principal and interest amounts due by the property owners to the assessment district bondholders, and initiating foreclosure proceedings, if appropriate. However, the City is not obligated in any manner for repayment of these special assessment bonds, and the bonds are not reported in the accompanying financial statements.
The outstanding assessment district bonds at June 30, 2025, consisted of the following:
Community Facilities District (District No. 04-1) 4,695,000$
K. Conduit debt obligations
The City has been associated with the issuance of several housing, mortgage and commercial development debt issues. These debt obligations were issued under provisions of state and federal laws that explicitly state that they do not constitute any indebtedness of the City. As of June 30, 2025, 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, 2025, no such amounts were due.
B. Risk management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
Two of the City’s four internal serv ice funds, General Liability and Workers’ Compensation, account for and finance the agency’s uninsured risks of loss.
Under this program, the City is self-insured for up to $1,000,000 for each general liability claim and up to $750,000 for each workers’ compensation claim. The City purchases commercial insurance for property loss, as well as for claims in excess of the preceding 83 122
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
coverage amounts. In fiscal years 2022-23 through 2024-25, the City’s combined insurance coverage was sufficient to cover all claims against the City.
All operating funds of the City participate in the program and make payments to the General Liability and Workers’ Compensation funds based on actuarial estimates of the amounts needed to pay prior and current year claims and legal expenses.
Liabilities are estimated when a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities also include an amount for claims that have been incurred, but not reported (IBNR) as of the end of the year. Changes in the combined balances of General Liability and Workers’ Compensation funds’ claims and legal liability during the past two fiscal years are as follows:
Year ended Year ended
June 30, 2025 June 30, 2024
Unpaid claims beginning of fiscal year 9,489,575$ 9,922,971$ Incurred claims (including IBNRs and adjusted claims expense) 5,153,010 2,220,637 Claims payments (2,574,828) (2,654,033)
Unpaid claims, end of fiscal year 12,067,757$ 9,489,575$
C. Deferred compensation plans
The City offers its employees deferred compensation plans in accordance with Internal Revenue Code sections 401(k) and 457 (as amended on August 20, 1996, per additional subsection (g)). The plans permit participants to defer a portion of their current salary until future years. The deferred compensation is not available to the employees until termination, retirement, death, or the occurrence of an unforeseeable emergency. Since the City neither owns the funds nor has any administrative involvement and does not perform the investing function for these plan s, the assets and related liabilities are not recorded in the City’s financial statements.
D. Pension plans
The City participates in the statewide California Public Employees’ Retirement System (CalPERS) that covers all employees, and the Public Agency Retirement System (PARS) for executive management employees.
California Public Employees’ Retirement System
Plan Description - All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by state statute and local 84 123
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website:
http://www.calpers.ca.gov.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members - who must be public employees - and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is the 1957 Survivor Benefit.
Cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect at June 30, 2025, 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 10.53% 10.53%
Payment of unfunded liability $9,925,244 Included in tier 1 Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3.000% @ 55 2.700% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-57
Month benefits, as a % of eligible compensation 2.400% to 3.000% 2.000% to 2.700% Required employee contribution rates 9.00% 14.00%
Required employer contribution rates 20.59% 20.59%
Payment of unfunded liability $6,715,125 Included in tier 1 Miscellaneous
Safety
At the June 30, 2025 reporting date, the following employees were covered by the benefit terms for each Plan.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Miscellaneous Safety
Inactive employees or benificiaries currently receiving benefits 756 185 Inactive employees entitled to, but not yet receiving, benefits 450 50 Active employees 367 120
1,573 355
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The City’s contributions to the miscellaneous and safety plans for the fiscal year ended June 30, 2025, were $13,258,395 and $9,754,353, respectively.
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. General 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 required to contribute
4.00% of their covered salary and the City contributes 3.00%. Non-sworn management hired on or after July 1, 2010, but before January 1, 2013, are required to contribute the full 7.00% of their covered salary. Non-sworn management hired on or after January 1, 2013, are required to contribute the full 8.00% of their covered salary. Sworn employees hired before January 1, 2013, are required to contribute the full 9.00% of their covered salary. Sworn employees hired on or after January 1, 2013, are required to contribute the full 14.00% of their covered salary.
The City is also required to contribute an employer’s cost share at an actuarially determined rate; the rate is 10.53% 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 20.59% of annual covered payroll for the year ended June 30, 2025. Sworn employees hired prior 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 the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update 86 125
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below:
Miscellaneous Safety
Valuation date June 30, 2023 June 30, 2023
Measurement date June 30, 2024 June 30, 2024
Actuarial cost method
Actuarial assumptions:
Discount rate 6.90% 6.90%
Inflation 2.30% 2.30%
Projected salary increase
Investment rate of return (1) 6.80% 6.80%
Mortality
Payroll growth 2.80% 2.80%
Entry Age Actuarial Cost Method
Derived using CalPERS'
membership data for all funds
Varies by entry age and service
(1) Net of pension plan investment and administrative expenses; includes inflation
Discount Rate – The discount rate used to measure the total pension liability was 6.90%.
The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Long-term Expected Rate of Return – 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, 2025
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) 252,066,586$ 100% 6.90% 17,392,594 $ Employer contributions 12,645,673 50% 6.90% 436,276 Employee contributions 2,406,837 50% 6.90% 83,036 Benefit paymens including refunds of employee contributions (20,669,034) 50% 6.90% (713,082) Administrative expense (205,212) 50% 6.90% (7,080) Total projected Earnings 17,191,744$
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) 158,576,933$ 100% 6.90% 10,941,808 $ Employer contributions 9,282,721 50% 6.90% 320,254 Employee contributions 1,622,992 50% 6.90% 55,993 Benefit payments including refunds of employee contributions (11,726,703) 50% 6.90% (404,571) Administrative expense (129,105) 50% 6.90% (4,454) Total projected Earnings 10,909,030$
(1) Includes any beginning of year adjustment. Contribution receivables for employee service buybacks, totalling $128,537 as of June 30, 2023, were excluded for purposes of calculating projected earnings on pension plan investments. (1) Includes any beginning of year adjustment. Contribution receivables for employee service buybacks, totalling $86,863 as of June 30, 2023, 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 asset class allocations within their policy ranges. CalPERS Investment Belief No. 6 recognizes that strategic asset allocation is the dominant determinant of portfolio risk and return.
On March 20, 2024, the CalPERS Board of Administration adopted changes to the strategic asset allocation. The new asset allocation was effective July 1, 2024.
The asset allocation shown below reflect the allocation of PERF in its entirety as of June 30, 2024. 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, 2025
Policy Target
Actual Allocation
Allocation effective
Asset Class 06/30/2024 7/1/2024
Public equities - cap weighted 31.8% 27.0%
Public equities - factor weighted 10.0% 10.0%
Treasury 7.3% 7.0%
Mortgage-backed securities 5.3% 5.0%
Investment grade corporates 6.4% 6.0%
High yield 5.3% 5.0%
Emerging market sovereign bonds 5.3% 5.0%
Private equity 15.5% 17.0%
Real assets 13.2% 15.0%
Private debt 2.8% 8.0%
Strategic financing -2.9% -5.0%
Total 100.0% 100.0%
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expe ctations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
The table below reflects long-term expected real rate of return by asset class:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
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, 2024 (measured as of June 30, 2023) 353,559,920$ 252,195,123 $ 101,364,797 $ Changes for the year:
Service cost 5,062,072 - 5,062,072 Interest on total pension liability 24,068,808 - 24,068,808 Differences between expected and actual experience 3,066,891 - 3,066,891 Contributions - employer - 12,645,673 (12,645,673) Contributions - employees - 2,389,507 (2,389,507) Net investment income - 24,179,850 (24,179,850) Benefit payments, including refunds of employee contribtuions (20,669,034) (20,669,034) - Administrative expenses - (205,212) 205,212 Net changes 11,528,737 18,340,784 (6,812,047) Balance at June 30, 2025 (measured as of June 30, 2024) 365,088,657$ 270,535,907 $ 94,552,750 $ Increase/(Decrease)
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Safety Plan:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 (measured as of June 30, 2023) 226,685,246$ 158,663,796 $ 68,021,450 $ Changes for the year:
Service cost 4,072,003 - 4,072,003 Interest on total pension liability 15,372,595 - 15,372,595 Differences between expected and actual experience (66,662) - (66,662) Contributions - employer - 9,282,721 (9,282,721) Contributions - employees - 1,615,915 (1,615,915) Net investment income - 15,274,792 (15,274,792) Benefit payments, including refunds of employee contribtuions (11,726,703) (11,726,703) - Administrative expenses - (129,105) 129,105 Net changes 7,651,233 14,317,620 (6,666,387) Balance at June 30, 2025 (measured as of June 30, 2024) 234,336,479$ 172,981,416 $ 61,355,063 $ Increase/(Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the Cit y’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 136,606,373$ 94,552,750 $ 59,239,911 $ Safety Plan 92,142,957$ 61,355,063 $ 35,941,342 $
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – For the measurement period ended June 30, 2024, the City recognized total pension expense of $22,128,566. The Miscellaneous Plan portion of pension expense was $14,025,268, and Safety Plan portion of pension expense was $8,103,298. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date 13,258,395$ - $ Differences between expected and actuals experience 2,117,051 - Net difference between projected and actual earnings
on pension plan investments 3,744,702 -
Total 19,120,148 $ - $
Miscellaneous
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement dates 9,754,353$ - $ Changes of assumptions 1,448,712 -
Differences between expected and actuals experience 814,115 (877,095) Net difference between projected and actual earnings
on pension plan investments 2,412,769 -
Total 14,429,949 $ (877,095) $
Safety
$23,012,748 reported as total deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ending June 30 , 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period
Ending June 30: Miscellaneous Safety
2025 1,477,369$ 811,928 $
2026 6,879,260 4,559,309
2027 (1,097,254) (697,956)
2028 (1,397,622) (874,780)
2029 - -
Thereafter - -
Deferred Outflows/(Inflows) of Resources
At June 30, 2025, the City had no outstanding payable amount of contributions to the pension plan required for the fiscal year ended June 30, 2025. Pension liability and expense is allocated to the City’s proprietary funds based on the portion of Citywide pensionable earnings paid to employees from those funds.
Public Agency Retirement System, Retirement Enhancement Plan
Plan Description - The City established a Public Agency Retirement System, Retirement Enhancement Plan (PARS) 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 31, 2010. This is a single employer postemployment benefit plan. The plan is closed to any new employees hired on or after August 31, 2010. PARS is a defined benefit 401(a) tax-qualified multiple agency trust. It meets the requirements of a pension trust under California Government code. The plan provides supplemental retirement benefits in addition to CalPERS. US Bank is the PARS trustee. Upon meeting the eligibility requi rements, 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 92 131
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
eligible to retire the first of the month followin g, or coincident with, attainment of age 60, with four or more years of service at termination. Employees must be retired under CalPERS to be eligible to retire under PARS. An annual cost-of-living adjustment is provided annually following commencement of benefits equal to 2.0% per annum. The City has full discretionary authority to control, amend, modify, or terminate this plan at any time.
The PARS plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Contributions are recognized when earned in the year that the contributions are required to be made and benefits and refunds are recognized as an expense and liability when due and payable. Administrative costs are funded through contributions and investment income. The PARS plan is a fiduciary fund of the City and does not issue a separate report.
Funding Policy – The City’s annual pension contribution for PARS was $0. Plan assets held in trust at June 30, 2025, totaled $1,490,536 PARS funding is based on the bi-annual actuarially required contribution calculated by an independent consultant. Because the PARS benefit has been frozen, the PARS funding is no longer based on a percentage of gross payroll for executive management. The funding amount is based on the demographics of actual remaining plan participants, both active and retired and future plan costs derived from the bi-annual actuarial study. The most recent study was completed for June 30, 2024.
Employees covered – At the June 30, 2024 valuation date, the following employees were covered under PARS:
Inactive employees or benificiaries currently receiving benefits 11 Inactive employees entitle to, but not yet receiving, beneifts 7 Active employees 1
19 Investment Policy – See note III.B for information on the City’s investment policy.
Investment Valuations – The City categorizes its fair value measurement within the fair value hierarchy established by GASB Statement No. 72. This statement recognizes a three-tiered fair value hierarchy. All of the PARS investments are valued at level 1:
Level 1: Investments reflect prices quoted for identical assets or liabilities in an active market.
Custodial Credit Risks – Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Mutual funds do not have a minimum rating required by either the California Government Code or the City’s investment policy and, as such, were not rated. 93 132
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Interest Rate Risk – To minimize the impact on portfolio fair value caused by changes in market interest rates, the City holds investments to maturity; matches investment maturities with specific cash flow requirements; invests in a combination of short-, medium-, and long-term investments (laddered maturities); and invests in securities maturing in five years or less from the settlement date.
Information about the sensitivity of the fair values of the PARS investments to market interest rate fluctuations is provided on the following table that shows the distribution of the investments by maturity:
1 Year 1-2 2-5
Amount Or Less Years Years
Mutual Funds $ 1,490,536 $ 1,490,536 - - Remaining Maturity in Years
Investment Type
Net Pension Liability – PARS
The total pension liability was determined by an actuarial valuation as of the valuation date of June 30, 2024, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date of June 30, 2025. Any significant changes during this period have been reflected as prescribed by GASB Statement No. 67 and GASB Statement No. 68.
Actuarial Assumptions
Actuarial valuation date June 30, 2024
Measurement date June 30, 2025
Inflation 2.28%
Long-term expected rate of return 6.50%, net of investment expense
Mortality rates Consistent with Non-Industrial rates used to value CalPERS Miscellaneous Public
Agency Pension Plans after June 30,
2021.
Long-term Expected Rate of Return
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, 2025. The target allocation and best estimates of the real rates of return for each major asset class are summarized in the following table:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
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 3.11% 0.83% 0.80%
US Core Fixed Income Bloomberg Barclays Aggregate 66.69% 2.35% 2.20% US Broad Equity Market Russell 3000 TR 21.63% 5.48% 3.76% Foreign Developed Equity MSCI EAFE NR 7.19% 6.61% 4.79% US REITs FTSE Nareit All Equity REIT 1.38% 6.71% 4.46%
Assumed Inflation - Mean 2.28% 2.28%
Assumed Inflation - Standard Deviation 1.47% 1.47%
Portfolio Real Mean Return 3.35% 3.09%
Portfolio Nominal Mean Return 5.63% 5.84%
Portfolio Standard Deviation 6.21%
City's Long-Term Expected Rate of Return 6.50%
Discount Rate
As of June 30, 2025, the plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculating the total pension liability is equal to the long- term expected rate of return.
Changes in the Net Pension Liability – PARS Plan
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 1,870,463 $ 1,508,126 $ 362,337 $ Changes for the year:
Service cost - - - Interest on total pension liability 116,964 - 116,964 Effect of plan changes - - - Effect of economic/demographic gains or losses (120,313) - (120,313) Effect of assumptions changes or inputs - - - Benefit payments (144,301) (144,301) - Employer contributions - - - Member contributions - - - Net investment income - 127,108 (127,108) Administrative expenses - (397) 397 Net changes (147,650) (17,590) (130,060) Balance at June 30, 2025 1,722,813 $ 1,490,536 $ 232,277 $ Increase/(Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City, calculated using the discount rate of 6.50%, 95 134
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
as well as what the Plan’s net pension liabilit y would be if it were calculated using a discount rate that is 1-percentage point lower (5.50%) or 1-percentage point higher (7.50%) than the current rate:
1% Decrease Current Discount Rate 1% Increase
5.50% 6.50% 7.50%
Total pension liability 1,879,513$ 1,722,813 $ 1,587,630 $ Fiduciary net position 1,490,536 1,490,536 1,490,536 Net pension liability 388,977$ 232,277 $ 97,094 $
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 bargaining unit. Defined benefit postretirement health care coverage is available only to employees hired on or before June 20, 2010. Depending on the employee group, those hired after June 20, 2010, receive a defined contribution amount of either $200 or $300 per month, which is deposited into a health retirement account (HRA). There is a five-year employment vesting period before the HRA account can be held by the employee. As newer employees are hired by the agency, a greater percentage will be covered by the defined contribution plan, which allows the City to better control the overall cost of health benefits.
Plan Description – The Simi Valley Other Postemployment 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 are 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 for health care coverage for employee, or employee-plus-one dependent, for a specified period, for the swor n management and sworn units. Additionally, the City provides funding for retiree health benefits to general unit employees (GU) under a defined contribution plan, per resolution number 2017-40.
The defined contribution is currently set by contract at 1.00% of salary for general unit members.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Sworn management employees with retirement dates effective July 1, 2005, to November 30, 2017, receive a defined contribution toward retiree dental and vision premiums equal to up to 0.5% of total compensation. Sworn management employees that retire on or after December 1, 2017, receive a contribution up to $175 per month toward the cost of retiree dental and vision premiums for retirees and eligible dependents. The City also contributes $110,000 per year to the trust established and managed by the Simi Valley Police Officers’ Association (POA) for the purposes of funding dental and/or vision benefits for retired sworn employees who retire on or after July 1, 2005.
A summary of plan benefits by employee groups is as follows:
Less than 10 or More
10 Years 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 $966.39 for employee only or $1,932.78 for employee-plus-one dependent. Employees hired on or after July 1, 2010, are not eligible to receive retiree medical benefits, but will receive a $158 per month contribution to a retiree health savings account. 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 $78.50 in calendar year 2024 and $86.90 in calendar year 2025. (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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
In addition, any forfeitures of health savings account amounts received by the City are remitted to the POA as supplementary contributions to their members’ dental and vision coverage.
The SVOPEB is accounted for on the economic resources measurement focus and the accrual basis of accounting. Contributions are recognized when earned in the year that contributions are required and benefits and refunds are recognized as an expense and liability when due and payable. The SVOPEB is reported as a fiduciar y fund by the City and does not issue a separate report.
At June 30, 2025, (the census date), the following employees were covered by the benefit terms:
Category NSM SM SE GU
Active employees 130 4 103 268 Inactive employees or beneficiaries currently receiving benefits 132 29 63 56 262 33 166 324
Funding Policy and Contributions – The contribution requirement of non-sworn and sworn management employees is established, and may be amended, by the City Council.
Contribution requirements of sworn and general unit employees can be amended via the negotiation process. Currently, contributions are not required from non-sworn 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. For the year ended June 30, 2025, the City’s contribution to SVOPEB was $3,909,638.
Investment Policy – The City has appointed the administrative committee (Committee) to oversee certain policies and procedures related to the operation and administration of SVOPEB including implementation of the investment policy. The SVOPEB may hold cash, cash equivalent, and money market funds for near-term trust benefits and expenses. The remaining assets are invested in long-term securities and diversified with the intent to minimize the risk of long-term investment losses. Consequently, the total portfolio is construed and maintained to provide diversification regarding the concentration of holdings in individual issues, issuers, countries, governments, or industries.
To achieve the greatest likelihood of meeting the investment objectives and the best balance between risk and return for optimal diversification, assets are invested in accordance with the targets for each asset class, as follows, to achieve an average total annual rate of return that is equal to, or greater than, the actuarial discount rate. The range and targe allocation for each asset class are summarized in the following table:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Asset Class Asset Allocation Target Allocation
Growth Assets
Domestic Equity 35.5% 36.0%
International Equity 18.0% 19.0%
Other 0.0% 0.0%
Income Assets
Fixed Income 44.1% 43.0%
Other 0.0% 0.0%
Real Return Assets 0.0% 0.0%
Cash Equivalents 2.4% 2.0%
Total 100.0% 100.0%
Custodial credit risk – For an investment, custodial credit risk is the risk that in the event of the failure of the counterparty (e.g., broker-dealer) the plan will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The plan investments are held by US Bank, the trustee for the plan investments.
Interest rate risk – To minimize the impact on portfolio fair value caused by changes in market interest rates, the City holds in vestments to maturity; matches investment maturities with specific cash flow requirements; invests in a combination of short-, medium-, and long-term investments (laddered maturities); and invests in securities maturing in five years or less from the settlement date.
Concentration of credit risk – The following table shows the fair value of investments representing 5% or more of the plan’s fiduciary net position as of June 30, 2025:
Investments Fair Value
% of Investments
Over Fiduciary Net
Position
Mutual funds - equity
Fidelity Total Market Index Fund 1,534,014$ 35.49% Ishares Core MSCI Total ETF 779,903 18.04% Mutual funds - fixed income
Ishares Core U.S. Aggregate Bond ETF 1,809,110 41.86%
Annual money-weighted rate of return – The money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for the changing amounts actually invested. The following table shows the annual money-weighted rate of return on investments, net of investment expense, for the year ended June 30, 2025:
NSM SM SE GU
Annual money-weighted rate of return,
net of investment expense 11.61% 11.60% 11.61% 11.61%
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Investment Valuation – Cash and cash equivalents consist of money market funds that are invested in short-term U.S. government securities. The money market funds are reported at amortized cost and the investments in equity and fixed-income mutual funds are reported at fair value, which is the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All other investment in the SVOPEB are stated at fair values. The SVOPEB categorizes the fair value measurements within the fair value hierarchy established by US GAAP as discussed in note III.A.
Risks and uncertainties – SVOPEB invests in various investment securities. Investment securities are exposed to various risks, such as interest rate s, market, and credit risks.
Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the value of investment securities will occur in the near-term and that such change could materially affect the amounts reported in the Statement of Fiduciary Net Position. The total OPEB liabilities and net OPEB liabilities disclosed below are measured based on certain assumptions including the long-term rate of return on OPEB investments, inflation rates, employee demographics, and healthcare cost trend rates. These uncertainties inherent in the estimation and assumption may be material to the financial statement. Actual results could vary from the estimates and assumptions.
Net OPEB Liability
The City’s total OPEB liability was valued as of June 30, 2025, and was used to calculate the net OPEB liability measured as of June 30, 2025.
Actuarial Assumptions – Projection of benefits are based on the substantive plan (the plan as understood by the employer and the plan members) based on written plan documents and historical information regarding practices with respect to employer and employee contributions and other factors. In the June 30, 2025 actuarial valuation, the entry-age normal method was used, using level percentage of salary to allocate OPEB costs over years of service. This method determines an attribution period as the difference between the date of hire and the expected date of retirement. Actuarial assumptions used for each of the City’s covered employee groups are presented in the table below. The unfunded actuarial assumed liability (UAAL) is amortized using a closed amortization period of thirty years. Since the June 30, 2025 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, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
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 7.90% trending down to 4.90%
Rate of return on assets 6.00%
Mortality rate CalPERS rates
Retirement rates CalPERS rates
Long-term Expected Rates of Return – The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) was used and developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of the arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class Allocation Rate of Return
US Large Cap Equity 34.20% 7.22%
US Small Cap Equity 1.80% 7.92%
International Developed Equity 13.50% 6.92%
Emerging Market Equity 5.50% 7.45%
Core Fixed 43.00% 4.98%
Cash 2.00% 2.94%
Total/Average 100.00% 6.16%
Discount rate – Each employee group has a discount rate ranging from 4.72% to 4.93%.
The discount rates for each employee group are blended between the investment rate of return of 6.00%, and the municipal bond rate of 4.71%, 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 municipal bond rate after that time. The municipal bond rate is the assumed rate of return on general 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.
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Change in the Net OPEB Liability:
Non-Sworn Management:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 16,561,981 $ 1,412,833 $ 15,149,148 $ Changes for the year:
Service cost 536,210 - 536,210 Interest 674,887 - 674,887 Differences between expected and actual experience 803,035 - 803,035 Changes of assumptions (762,800) - (762,800) Contributions
Employer - City's contribution - 987,095 (987,095) Employer - implicit subsidy - 288,008 (288,008) Net investment income - 163,536 (163,536) Benefit payments (987,095) (987,095) - Implicit subsidy credit (288,008) (288,008) - Administrative expenses - (4,707) 4,707 Other miscellaneous income/(expense) - (2,936) 2,936 Net changes (23,771) 155,893 (179,664) Balance at June 30, 2025 16,538,210 $ 1,568,726 $ 14,969,484 $ Increase/(Decrease)
Sworn Management:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 12,466,046 $ 107,825 $ 12,358,221$ Changes for the year:
Service cost 128,155 - 128,155 Interest 473,680 - 473,680 Differences between expected and actual experience (455,245) - (455,245) Changes of assumptions (98,104) - (98,104) Contributions
Employer - City's contribution - 516,220 (516,220) Employer - implicit subsidy - 192,596 (192,596) Net investment income - 12,464 (12,464) Benefit payments (516,220) (516,220) - Implicit subsidy credit (192,596) (192,596) - Administrative expenses - (490) 490 Other miscellaneous income/(expense) - (224) 224 Net changes (660,330) 11,750 (672,080) Balance at June 30, 2025 11,805,716$ 119,575$ 11,686,141$ Increase/(Decrease)
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Sworn Employees:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 33,209,937 $ 903,473 $ 32,306,464$ Changes for the year:
Service cost 1,098,178 - 1,098,178 Interest 1,314,717 - 1,314,717 Differences between expected and actual experience 3,673,412 - 3,673,412 Changes of assumptions 766,208 - 766,208 Contributions
Employer - City's contribution - 985,882 (985,882) Employer - implicit subsidy - 381,449 (381,449) Net investment income - 104,597 (104,597) Benefit payments (985,882) (985,882) - Implicit subsidy credit (381,449) (381,449) - Administrative expenses - (3,060) 3,060 Other miscellaneous income/(expense) - (1,878) 1,878 Net changes 5,485,184 99,659 5,385,525 Balance at June 30, 2025 38,695,121$ 1,003,132$ 37,691,989$ Increase/(Decrease)
General Unit:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2024 12,494,570$ 1,468,722$ 11,025,848$ Changes for the year:
Service cost 761,109 - 761,109 Interest 515,166 - 515,166 Differences between expected and actual experience (2,385,473) - (2,385,473) Changes of assumptions (1,555,058) - (1,555,058) Contributions
Employer - City's contribution - 265,518 (265,518) Employer - implicit subsidy - 292,870 (292,870) Net investment income - 170,032 (170,032) Benefit payments (265,518) (265,518) - Implicit subsidy credit (292,870) (292,870) - Administrative expenses - (4,887) 4,887 Other miscellaneous income/(expense) - (3,052) 3,052 Net changes (3,222,644) 162,093 (3,384,737) Balance at June 30, 2025 9,271,926$ 1,630,815$ 7,641,111$ 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:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
1% Decrease Current Discount Rate 1% Increase
Non-sworn management 16,429,667$ 14,969,484 $ 13,704,164 $ Sworn management 13,167,340 11,686,141 10,465,543 Sworn employees 42,996,694 37,691,989 33,335,434 General unit 8,512,905 7,641,111 6,884,301
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates – the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1- percentage point higher than current healthcare cost trend rates follows:
1% Decrease Current Trend Rate 1% Increase
Non-sworn management 14,448,680$ 14,969,484 $ 15,492,154 $ Sworn management 10,451,824 11,686,141 13,167,407 Sworn employees 32,853,583 37,691,989 43,650,532 General unit 7,172,880 7,641,111 8,172,394
OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB
For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $8,552,515. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
NSM SM SE GU
Differences between actual and expected experience 811,857$ -$ 4,982,700$ 72,465$ Changes of assumptions 780,756 - 5,870,107 3,083,537 Total 1,592,613$ -$ 10,852,807$ 3,156,002 $ Deferred Outflows of Resources
NSM SM SE GU
Differences between actual and expected experience (627)$ -$ (764,086)$ (5,006,438)$ Changes of assumptions (4,602,947) - (669,178) (4,676,020) Net difference between projected and actual earnings (68,095) (5,181) (42,472) (70,845) Total (4,671,669)$ (5,181)$ (1,475,736)$ (9,753,303)$ Deferred Inflows of Resources
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
Report Year
Ending June 30:
NSM SM SE GU
2026 (1,210,386)$ 1,070 $ 2,098,395$ (696,737) $ 2027 (1,838,089) (2,656) 2,335,624 (1,101,210) 2028 (23,445) (2,393) 2,211,571 (1,055,176) 2029 (7,926) (1,202) 1,367,373 (936,103) 2030 790 - 525,959 (962,659) Thereafter - - 838,149 (1,845,416) 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 statem ents 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, 2025, to assess the need for potential recognition or disclosure in the financial statements. Such events were evaluated through December 15, 2025, 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. Changes to or within the financial reporting entity
In the prior fiscal year, the Permanent Local Housing Grant fund was presented within the Planning Grant fund column in the Combining Statement of Revenues, Expenditures, and Changes in Fund Balances for nonmajor governmental funds and in the Combining Balance Sheet for governmental funds. To provide better clarity to the financial statement users, the Permanent Local Housing Grant fund has been presented separately within these statements in the current fiscal year.
In accordance with GASB Statement No. 100, the effect of this change to or within the financial reporting entity is shown in the table below:
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CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
June 30, 2024,
as previously reported
Change to or within
the financial
reporting entity
June 30, 2024,
as restated
Governmental funds
Nonmajor funds' fund balances
Special revenue funds
CalHome Grant 566,345 $ - $ 566,345$ HOME Grant 1,435,448 - 1,435,448 Planning Grants 282,812 (282,812) - Permanent Local Housing Grant - 282,812 282,812 Public Education & Government Fees 3,143,858 - 3,143,858 Gasoline Tax 298,668 - 298,668 Road Maintenance & Rehabilitation Account 4,030,633 - 4,030,633 Transportation 11,608,757 - 11,608,757 Library Services 2,770,056 - 2,770,056 Opioid Settlements - - - Police Grants 1,928,000 - 1,928,000 Community Development Block Grant (137,729) - (137,729) Landscape Maintenance District No. 1 (592,844) - (592,844) Total special revenue funds' fund balances 25,334,004 - 25,334,004 Debt service funds' fund balances - - - Capital projects funds' fund balances 12,433,930 - 12,433,930 Total nonmajor governmental funds 37,767,934 $ - $ 37,767,934$
V. Successor Housing Agency to the Simi Valley Community Development Agency Private-Purpose Trust Fund
A. Reporting entity
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California.
This action impacted the reporting entity of the City of Simi Valley that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that, upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government.
On January 30, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-06.
After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
The Successor Agency is allocated revenue only in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former 106
145
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
redevelopment agency until all enforceable obligations of the former redevelopment agency have been paid in full and all assets have been liquidated.
B. Cash and investments
Cash and investments reported in the accompanying 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, 2025, was as follows:
D. Long-term debt
The Community Development Agency (CDA), formerly a blended component unit of the City, issued tax allocation bonds on behalf of the City. Effective February 1, 2012, this debt was transferred from the CDA to the Successor Agency (private-purpose trust fund) as a result of dissolution.
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2025, follows:
x Successor Agency to Community Development Agency 2003 Tax Allocation Bonds:
Original issue amount $31,795,000; interest rates at 2.0% to 5.0%, fully maturing September 1, 2030. The bonds are payable in annual installments ranging from $360,000 to $2,000,000. These bonds were issued to fully refund the 1993 Revenue Bond issue with a carrying amount of $30,245,000. They were issued at a premium, which has been added to the new debt and is being amortized over the life of the bonds. The excess reacquisition price has been netted against the new debt and is being amortized over the remaining life of the refunded debt. The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including low- and moderate-income housing set-aside and pass-through allocations) that it receives. The bonds issued were to provide financing for various capital projects, low- and moderate-income housing projects Beginning
Balance Increases Decreases
Ending
Balance
Land 1,124,174 $ - $ - $ 1,124,174$ Capital assets 1,124,174$ - $ - $ 1,124,174$ Cash and investments pooled with the City 2,778,060$
Cash and investments with fiscal agent 2,175,987
Total cash and investments 4,954,047$
107
146
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total interest and principal remaining on the bonds is $12,329,375, payable through September 2030. For the current fiscal year, principal and interest paid was $2,060,000, and the Redevelopment Property Tax Trust Fund revenue received was $2,115,261.
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, 2025, was as follows:
E. Fiduciary net deficit
As of June 30, 2025, the private-purpose trust, had a negative net position of $4,835,337.
Below is a summary of the net position.
Beginning
Balance Increase Decrease
Ending
Balance
Due Within
One Year
Fiduciary activities:
2003 tax allocation bonds 12,145,000$ - $ (1,490,000)$ 10,655,000 $ 1,565,000 $ Add/(less) deferred amounts:
Bond premium 108,292 - (16,307) 91,985 16,306 Fidiuciary long-term liabilities 12,253,292$ - $ (1,506,307)$ 10,746,985 $ 1,581,306 $ Year Ending
June 30: Principal Interest Total
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
2030 1,905,000 147,625 2,052,625
2031 2,000,000 50,000 2,050,000 10,655,000$ 1,674,375 $ 12,329,375 $
Fiduciary Net Deficit - Beginning Balance (6,556,227)$
Total additions for the year 2,267,930
Total deductions for the year ended (547,040)
Change in fiduciary net position 1,720,890
Fiduciary Net Deficit - Ending Balance (4,835,337)$
108
147
CITY OF SIMI VALLEY NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2025
F. Insurance
The Successor Agency is covered under the City’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in note IV.B.
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6HHLQGHSHQGHQWDXGLWRU
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158
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Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years*
6HHLQGHSHQGHQWDXGLWRU
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159
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City of Simi Valley
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years*
6HHLQGHSHQGHQWDXGLWRU
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160
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Schedule of OPEB Plan Contributions
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City of Simi Valley
Schedule of OPEB Plan Contributions
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Schedule of Annual Money-Weighted Rate of Return on OPEB Plan Investments Last Ten Years*
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163
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City of Simi Valley
Schedule of Annual Money-Weighted Rate of Return on OPEB Plan Investments 6HHLQGHSHQGHQWDXGLWRU
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123
164
165
SUPPLEMENTARY INFORMATION
SUPPLEMENTARY
INFORMATION
166
City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
NONMAJOR GOVERNMENTAL FUNDS
167
168
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
CalHome Grant fund accounts for the allocation of State funds to support low-income housing programs.
HOME Grant fund accounts for allocation of Federal funds, administered by the State of California, for low- and moderate-income housing programs.
Planning Grants funds account for State funds to help prepare, adopt, and implement plans and process improvements that streamline housing approvals and accelerate housing production.
Permanent Local Housing Assistance Grant fund for the allocation of State funds for affordable housing programs that support low- and moderate-income housing programs through development, preservation, and assistance initiatives.
Public Education and Government Fees fund accounts for one-percent franchise fees remitted by cable television providers restricted by Federal and State legislation for program related expenditures.
Gasoline Tax fund accounts for portions of the tax per gallon levied by the State of California on all gasoline purchases which are allocated to cities throughout the State on a population basis. These revenues are restricted to expenditures for street-related purposes.
Road Maintenance and Rehabilitation Account funds are apportioned to the City by formula pursuant to Streets and Highways Code section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
Transportation funds account for Article 3, Article 8, and Proposition 1B funds received pursuant to State of California, Transportation Development Act and Port Security Bond Act of 2006. These funds are restricted for the improvement and maintenance of street systems, and State allocations for street , mass transit, and safety and security improvements.
Library Services fund accounts for property tax revenue funding and donations from Simi Valley Friends of the Library (a non-profit organization) used for expenditures to operate the Simi Valley Public Library.
Opioid Settlements funds account for the City’s share of various lawsuit settlements against the manufacturers of certain prescription opioid medications.
124
169
Police Grants funds account for funding received from various governmental entities for police activities. Current programs and funding sources include:
x Reimbursement for City’s participation in joint agency drug enforcement efforts from the U.S. Department of Justice, Drug Enforcement Administration, and the State of California,
x State funding for front-line municipal police services, including anti-gang and community crime prevention programs, and
x Local Law Enforcement Block Grant funding from the Bureau of Justice Assistance, U.S. Department of 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.
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 Projects Funds
Equipment Replacement funds account for the replacement of personal computers, terminals, and printers; and establish a reserve for the replacement of vehicles. 125
170
Geographic Information System (GIS) fund accounts for geographic based information related to economic development, land use, demographic information, mapping for crime analysis, traffic safety management, permit issuance, and work order administration.
Public Facility Improvements fund provides for the building needs of various City facilities, including the expansion of City Hall and the Senior Citizens’ Center.
Financial Information System (FIS) fund was established to replace the City’s legacy financial management information system with a new financial information system and is used to maintain and optimize the FIS system.
Police Capital Projects fund accounts for capital projects related to the police department such as the police shooting range.
Telephone System fund accounts for the replacement of the Citywide telephone system, installed in 1995 and exceeding its system support life.
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 LED technology.
Radio Project fund accounts for activities related to the upgrade of the City’s daily and emergency communications system.
126
171
Public Road
Permanent Education & Maintenance &
CalHome HOME Planning Local Housing Governmen t Gasoline Rehabilitation Grant Grant Grants Grant Fees Tax Account
ASSETS
Cash and investments:
Held by City 594,937 $ 1,571,955$ - $ 1,249,312$ 3,357,163 $ 65,287 $ 3,117,848$ Accounts receivable (net of allowance for
uncollectibles) - - - - 49,044 302,840 606,878 Taxes receivable - - - - 6,552 - - Grants receivable - - - - - - - Interest receivable - - - 12,038 30,988 - 22,618 Due from other funds 4,194 15,298 - - - - - Loans receivable (net of allowance for
uncollectibles) 883,078 2,160,789 - 256,800 - - - Total assets 1,482,209 $ 3,748,042 $ - $ 1,518,150$ 3,443,747 $ 368,127 $ 3,747,344$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$ -$ Salaries and benefits payable - - - - - - - Due to other funds - - - - - - - Advances from other funds - - - - - - - Total liabilities - - - - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 883,078 2,160,788 - 256,800 - - - Total deferred inflows of resources 883,078 2,160,788 - 256,800 - - -
FUND BALANCES/(DEFICITS)
Restricted
Housing programs 599,131 1,587,254 - 1,261,350 - - - Law enforcement - - - - - - - Public improvements - - - - - - - Special programs - - - - 3,443,747 - - Streets and transportation - - - - - 368,127 3,747,344 Committed
Equipment - - - - - - - Unassigned - - - - - - - Total fund balances/(deficits) 599,131 1,587,254 - 1,261,350 3,443,747 368,127 3,747,344 Total liabilities, deferred inflows of
resources, and fund balances/(deficits) 1,482,209$ 3,748,042$ -$ 1,518,150$ 3,443,747$ 368,127$ 3,747,344$ (Continued)
Funds
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue
127
172
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:
12,576,691$ 3,334,855 $ 550,354 $ 2,119,991$ - $ - $ 28,538,393$ Held by City Accounts receivable (net of allowance for
- - - 163,806 - - 1,122,568 uncollectibles) - - - - - - 6,552 Taxes receivable - - - 128,383 621,512 - 749,895 Grants receivable 139,686 23,211 5,022 16,264 - - 249,827 Interest receivable - - - - 57 - 19,549 Due from other funds Loans receivable (net of allowance for
- - - - 237,328 - 3,537,995 uncollectibles) 12,716,377$ 3,358,066 $ 555,376 $ 2,428,444$ 858,897 $ - $ 34,224,779$ Total assets
LIABILITIES
-$ 191,967$ - $ - $ 24,283$ 99,815 $ 316,065 $ Accounts payable - 9,054 - - - - 9,054 Salaries and benefits payable - - - 289,513 595,126 403,121 1,287,760 Due to other funds - - - - - - - Advances from other funds - 201,021 - 289,513 619,409 502,936 1,612,879 Total liabilities
DEFERRED INFLOWS OF RESOURCES
- - - 122,832 237,329 - 3,660,827 Unavailable revenue - - - 122,832 237,329 - 3,660,827 Total deferred inflows of resources
FUND BALANCES/(DEFICITS)
Restricted
- - - - 2,159 - 3,449,894 Housing programs - - - 2,016,099 - - 2,016,099 Law enforcement - - - - - - - Public improvements - 3,157,045 555,376 - - - 7,156,168 Special programs 12,716,377 - - - - - 16,831,848 Streets and transportation Committed
- - - - - - - Equipment - - - - - (502,936) (502,936) Unassigned 12,716,377 3,157,045 555,376 2,016,099 2,159 (502,936) 28,951,073 Total fund balances/(deficits) Total liabilities, deferred inflows of
12,716,377$ 3,358,066$ 555,376$ 2,428,444$ 858,897$ -$ 34,224,779$ resources, and fund balances/(deficits) (Continued)
Funds
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue
128
173
2014A Total
Lease Revenue 2016 2017 2018 Nonmajor
Refunding CREBS Lease Lease Debt
Bonds LRB Agreement Agreement Service Funds
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 - - - - - Total liabilities - - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - - Total deferred inflows of resources - - - - -
FUND BALANCES/(DEFICITS)
Restricted
Housing programs - - - - - Law enforcement - - - - - Public improvements - - - - - Special programs - - - - - Streets and transportation - - - - - 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
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Funds
Debt Service
129
174
Geographic Financial
Equipment Information Public Facilit y Information Police Capital Replacement System (GIS) Improvements System (FIS) Projects ASSETS
Cash and investments:
2,772,373$ 22,963 $ 6,241,549$ 2,104,579 $ 570,824 $ Held by City Accounts receivable (net of allowance for
- - - - - uncollectibles) - - - - - Taxes receivable - - - - - Grants receivable 15,412 212 - 19,709 - Interest receivable - - - - - Due from other funds Loans receivable (net of allowance for
- - - - - uncollectibles) 2,787,785$ 23,175 $ 6,241,549$ 2,124,288 $ 570,824 $ Total assets
LIABILITIES
312,818$ - $ 6,533$ 5,365 $ - $ Accounts payable - - - - - Salaries and benefits payable - - - - - Due to other funds - - 3,348,380 - - Advances from other funds 312,818 - 3,354,913 5,365 - Total liabilities
DEFERRED INFLOWS OF RESOURCES
- - - - - Unavailable revenue - - - - - Total deferred inflows of resources
FUND BALANCES/(DEFICITS)
Restricted
- - - - - Housing programs - - - - 570,824 Law enforcement - - - - - Public improvements - - - - - Special programs - - - - - Streets and transportation Committed
2,474,967 23,175 2,886,636 2,118,923 - Equipment - - - - - Unassigned 2,474,967 23,175 2,886,636 2,118,923 570,824 Total fund balances/(deficits) Total liabilities, deferred inflows of
2,787,785$ 23,175$ 6,241,549$ 2,124,288$ 570,824$ resources, and fund balances/(deficits) (Continued)
Funds
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Capital Projects
130
175
Total
Nonmajor Total
Telephone Solar Capital LED Streetlight Radio Capital Nonmajor System Projects Project Project Projects Funds Funds
ASSETS
Cash and investments:
Held by City 100,253 $ 56,305 $ 387,115 $ 3,492,217$ 15,748,178 $ 44,286,571 $ Accounts receivable (net of allowance for
uncollectibles) - - - - - 1,122,568 Taxes receivable - - - - - 6,552 Grants receivable - - - - - 749,895 Interest receivable - - - - 35,333 285,160 Due from other funds - - - - - 19,549 Loans receivable (net of allowance for
uncollectibles) - - - - - 3,537,995 Total assets 100,253 $ 56,305 $ 387,115 $ 3,492,217$ 15,783,511 $ 50,008,290 $
LIABILITIES
Accounts payable -$ -$ -$ 3,615$ 328,331$ 644,396$ Salaries and benefits payable - - - - - 9,054 Due to other funds - - - - - 1,287,760 Advances from other funds - - - - 3,348,380 3,348,380 Total liabilities - - - 3,615 3,676,711 5,289,590
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - - 3,660,827 Total deferred inflows of resources - - - - - 3,660,827
FUND BALANCES/(DEFICITS)
Restricted
Housing programs - - - - - 3,449,894 Law enforcement - - - - 570,824 2,586,923 Public improvements - 56,305 387,115 - 443,420 443,420 Special programs - - - - - 7,156,168 Streets and transportation - - - - - 16,831,848 Committed
Equipment 100,253 - - 3,488,602 11,092,556 11,092,556 Unassigned - - - - - (502,936) Total fund balances/(deficits) 100,253 56,305 387,115 3,488,602 12,106,800 41,057,873 Total liabilities, deferred inflows of
resources, and fund balances/(deficits) 100,253$ 56,305$ 387,115$ 3,492,217$ 15,783,511$ 50,008,290$ (Concluded)
CITY OF SIMI VALLEY
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Funds
Capital Projects
131
176
177
Public Road
Permanent Education & Maintenance &
CalHome HOME Planning Local Housing Government Gasoline Rehabilitation Grant Grant Grants Grant Fees Tax Account
REVENUES
Taxes -$ -$ -$ -$ 288,902$ -$ -$ Fines and forfeitures - - - - - - - Use of money and property 32,786 151,806 - 38,465 123,605 - 93,952 From other governments - - - - - 3,550,848 3,443,857 Grants - - 76,789 1,196,873 - - - Service charges - - - - - - - Other revenues - - - - - - - Total revenues 32,786 151,806 76,789 1,235,338 412,507 3,550,848 3,537,809
EXPENDITURES
Current:
General government - - - - - - - Community services - - - 256,800 - - - Planning - - 76,789 - 56,618 - - Public ways and facilities - - - - - - - Public safety - - - - - - - Total current expenditures - - 76,789 256,800 56,618 - - Capital outlay - - - - - - - Debt Service:
Principal - - - - - - - Interest - - - - - - - Other - - - - - - - Total debt service - - - - - - - Total expenditures - - 76,789 256,800 56,618 - -
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 32,786 151,806 - 9 78,538 355,889 3,550,848 3,537,809
OTHER FINANCING SOURCES/(USES)
Transfers in - - - - - - - Transfers out - - - - (56,000) (3,481,389) (3,821,098) Proceeds from sale of property - - - - - - - Total other financing sources/(uses) - - - - (56,000) (3,481,389) (3,821,098) NET CHANGE IN FUND BALANCES 32,786 151,806 - 978,538 299,889 69,459 (283,289) FUND BALANCES - BEGINNING, as
previously reported 566,345 1,435,448 282,812 - 3,143,858 298,668 4,030,633 Change to or within the reporting entity (note
IV.G
) (282,812) 282,812
FUND BALANCES - BEGINNING, as
restated 566,345 1,435,448 - 282,812 3,143,858 298,668 4,030,633 FUND BALANCES - ENDING 599,131$ 1,587,254$ -$ 1,261,350$ 3,443,747$ 368,127$ 3,747,344$ (Continued)
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Special Revenue
Funds
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
132
178
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$ - $ - $ - $ - $ 3,094,012$ Taxes - 3,709 - - - - 3,709 Fines and forfeitures 760,884 109,083 21,912 68,014 44,231 (10,112) 1,434,626 Use of money and property 6,046,701 - - - - - 13,041,406 From other governments - 74,796 - 1,501,950 952,719 - 3,803,127 Grants - 4,285 - - - 791,026 795,311 Service charges - 57,550 533,464 - - 137,474 728,488 Other revenues 6,807,585 3,054,533 555,376 1,569,964 996,950 918,388 22,900,679 Total revenues
EXPENDITURES
Current:
- - - - 266,481 - 266,481 General government - 2,589,372 - - 143,688 - 2,989,860 Community services - - - - - - 133,407 Planning 37,084 - - - 585,124 1,475,845 2,098,053 Public ways and facilities - - - 1,116,365 - - 1,116,365 Public safety 37,084 2,589,372 - 1,116,365 995,293 1,475,845 6,604,166 Total current expenditures - - - - - - - Capital outlay Debt Service:
- 38,812 - 50,838 - - 89,650 Principal - 39,360 - 6,662 - - 46,022 Interest - - - - - - - Other - 78,172 - 57,500 - - 135,672 Total debt service 37,084 2,667,544 - 1,173,865 995,293 1,475,845 6,739,838 Total expenditures
EXCESS/(DEFICIENCY) OF REVENUES
6,770,501 386,989 555, 376 396,099 1,657 (557,457) 16,160,841 OVER/(UNDER) EXPENDITURES
OTHER FINANCING SOURCES/(USES)
- - - - 138,231 647,365 785,596 Transfers in (5,662,881) - - (308,000) - - (13,329,368) Transfers out - - - - - - - Proceeds from sale of property (5,662,881) - - (308,000) 138,231 647,365 (12,543,772) Total other financing sources/(uses) 1,107,620 386,989 555,376 88,099 139,888 89,908 3,617,069 NET CHANGE IN FUND BALANCES 11,608,757 2,770,056 - 1,928,000 (137,729) (592,844) 25,334,004 FUND BALANCES - BEGINNING, as
previously reported
-
Change to or within the reporting entity (note
IV.G
)
11,608,757 2,770,056 - 1,928,000 (137,729) (592,844) 25,334,004 FUND BALANCES - BEGINNING, as
restated
12,716,377$ 3,157,045 $ 555,376 $ 2,016,099$ 2,159 $ (502,936)$ 28,951,073$ FUND BALANCES - ENDING (Continued)
Special Revenue
Funds
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
133
179
2014A Total
Lease Revenue 2016 2017 2018 Nonmajor
Refunding CREBS Lease Lease Debt
Bonds LRB Agreement Agreement Service Funds
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 935,000 449,066 458,340 345,777 2,188,183 Interest 536,650 247,886 115,501 221,860 1,121,897 Other 2,550 1,550 751 251 5,102 Total debt service 1,474,200 698,502 574,592 567,888 3,315,182 Total expenditures 1,474,200 698,502 574,592 567,888 3,315,182
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (1,474, 200) (698,502) (574,592) (567,888) (3,315,182)
OTHER FINANCING SOURCES/(USES)
Transfers in 1,474,200 698,502 574,592 567,888 3,315,182 Transfers out - - - - - Proceeds from sale of property - - - - - Total other financing sources/(uses) 1,474,200 698,502 574,592 567,888 3,315,182
NET CHANGE IN FUND BALANCES - - - - - FUND BALANCES - BEGINNING, as
previously reported - - - - - Change to or within the reporting entity (note
IV.G
)
FUND BALANCES - BEGINNING, as
restated - - - - - FUND BALANCES - ENDING - $ - $ - $ - $ - $ (Continued)
Debt Service
Funds
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
134
180
Geographic Financial
Equipment Information Public Facility Information Police Capital Replacement System (GIS) Improvements System (FIS) Projects
REVENUES
-$ - $ - $ - $ - $ Taxes - - - - - Fines and forfeitures 61,603 855 - 79,659 - Use of money and property - - - - - From other governments - - - - - Grants - - - - - Service charges - - - - 75,000 Other revenues 61,603 855 - 79,659 75,000 Total revenues
EXPENDITURES
Current:
- - - - - General government - - - - - Community services - - - - - Planning - - - - - Public ways and facilities - - - - - Public safety - - - - - Total current expenditures 1,761,196 - 139,422 84,289 - Capital outlay Debt Service:
- - - - - Principal - - - - - Interest - - - - - Other - - - - - Total debt service 1,761,196 - 139,422 84,289 - Total expenditures
EXCESS/(DEFICIENCY) OF REVENUES
(1,699,593) 855 (139,422) (4,630) 75,000 OVER/(UNDER) E XPENDITURES
OTHER FINANCING SOURCES/(USES)
941,800 - 556,000 - - Transfers in - - - - - Transfers out 2,023 - - - - Proceeds from sale of property 943,823 - 556,000 - - Total other financing sources/(uses) (755,770) 855 416,578 (4,630) 75,000 NET CHANGE IN FUND BALANCES 3,230,737 22,320 2,470,058 2,123,553 495,824 FUND BALANCES - BEGINNING, as
previously reported
Change to or within the reporting entity (note
IV.G
)
3,230,737 22,320 2,470,058 2,123,553 495,824 FUND BALANCES - BEGINNING, as
restated
2,474,967$ 23,175 $ 2,886,636$ 2,118,923 $ 570,824 $ FUND BALANCES - ENDING (Continued)
Capital Projects
Funds
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
135
181
Total
Nonmajor Total
Telephone Solar Capital LED Streetlight Radio Capital Nonmajor System Projects Project Project Projects Funds Funds
REVENUES
Taxes -$ -$ -$ -$ -$ 3,094,012$ Fines and forfeitures - - - - - 3,709 Use of money and property - - - - 142,117 1,576,743 From other governments - - - - - 13,041,406 Grants - - - - - 3,803,127 Service charges - - - - - 795,311 Other revenues - - - - 75,000 803,488 Total revenues - - - - 217,117 23,117,796
EXPENDITURES
Current:
General government - - - - - 266,481 Community services - - - - - 2,989,860 Planning - - - - - 133,407 Public ways and facilities - - - - - 2,098,053 Public safety - - - - - 1,116,365 Total current expenditures - - - - - 6,604,166 Capital outlay 32,750 - - 26,413 2,044,070 2,044,070 Debt Service:
Principal - - - - - 2,277,833 Interest - - - - - 1,167,919 Other - - - - - 5,102 Total debt service - - - - - 3,450,854 Total expenditures 32,750 - - 26,413 2,044,070 12,099,090
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES (32,750) - - (26,413) (1,826,953) 11,018,706
OTHER FINANCING SOURCES/(USES)
Transfers in - - - - 1,497,800 5,598,578 Transfers out - - - - - (13,329,368) Proceeds from sale of property - - - - 2,023 2,023 Total other financing sources/(uses) - - - - 1,499,823 (7,728,767) NET CHANGE IN FUND BALANCES (32,750) - - (26,413) (327,130) 3,289,939 FUND BALANCES - BEGINNING, as
previously reported 133,003 56,305 387,115 3,515,015 12,433,930 37,767,934 Change to or within the reporting entity (note
IV.G
) -
FUND BALANCES - BEGINNING, as
restated 133,003 56,305 387,115 3,515,015 12,433,930 37,767,934 FUND BALANCES - ENDING 100,253$ 56,305$ 387,115$ 3,488,602$ 12,106,800$ 41,057,873$ (Concluded)
Capital Projects
Funds
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
136
182
City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
SCHEDULES-BUDGET AND
ACTUAL-INDIVIDUAL FUND
183
184
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 32,786$ 32,786$ Total revenues - - 32,786 32,786
EXPENDITURES
Current:
Planning 90,000 90,000 - 90,000 Total expenditures 90,000 90,000 - 90,000 NET CHANGE IN FUND BALANCE (90,000) (90,000) 32,786 122,786 FUND BALANCE - BEGINNING 566,345 566,345 566,345 - FUND BALANCE - ENDING 476,345 $ 476,345 $ 599,131 $ 122,786 $ 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, 2025
137
185
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 8,500$ 8,500$ 151,806$ 143,306$ Total revenues 8,500 8,500 151,806 143,306
EXPENDITURES
Current:
Planning 540,000 540,000 - 540,000 Total expenditures 540,000 540,000 - 540,000 NET CHANGE IN FUND BALANCE (531,500) (531,500) 151,806 683,306 FUND BALANCE - BEGINNING 1,435,448 1,435,448 1,435,448 - FUND BALANCE - ENDING 903,948 $ 903,948 $ 1,587,254$ 683,306 $ 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, 2025
138
186
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Grants -$ -$ 76,789$ 76,789$ Total revenues - - 76,789 76,789
EXPENDITURES
Current:
Planning - 229,014 76,789 152,225 Total expenditures - 229,014 76,789 152,225 NET CHANGE IN FUND BALANCE - (229,014) - 229,014 FUND BALANCE - BEGINNING, as previously reported 282,812 282,812 282,812 - Change to or within the reporting entity (note IV.G)( 282,812) (282,812) (282,812) FUND BALANCE - BEGINNING, as restated - - - FUND BALANCE - ENDING - $ (229,014)$ - $ 229,014$ 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, 2025
139
187
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 38,465$ 38,465$ Grants - 1,393,617 1,196,873 (196,744) Total revenues - 1,393,617 1,235,338 (158,279)
EXPENDITURES
Current:
Community Services - 1,663,502 256,800 1,406,702 Total expenditures - 1,663,502 256,800 1,406,702 NET CHANGE IN FUND BALANCE - (269,885) 978,538 1,248,423 FUND BALANCE - BEGINNING, as previously reported - - - - Change to or within the reporting entity (note IV.G) 282,812 282,812 282,812 FUND BALANCE - BEGINNING, as restated 282,812 282,812 282,812 - FUND BALANCE - ENDING 282,812 $ 12,927 $ 1,261,350$ 1,248,423 $ Budgeted Amounts
CITY OF SIMI VALLEY
PERMANENT LOCAL HOUSING GRANT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
140
188
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Taxes 280,000$ 280,000$ 288,902$ 8,902$ Use of money and property 30,000 30,000 123,605 93,605 Total revenues 310,000 310,000 412,507 102,507
EXPENDITURES
Current:
Planning 305,000 1,155,497 56,618 1,098,879 Total expenditures 305,000 1,155,497 56,618 1,098,879
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 5,000 (845,497) 355,889 1,201,386
OTHER FINANCING SOURCES/(USES)
Transfers out - (56,000) (56,000) - Total other financing sources/(uses) - (56,000) (56,000) - NET CHANGE IN FUND BALANCE 5,000 (901,497) 299,889 1,201,386 FUND BALANCE - BEGINNING 3,143,858 3,143,858 3,143,858 - FUND BALANCE - ENDING 3,148,858$ 2,242,361$ 3,443,747$ 1,201,386$ 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, 2025
141
189
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
From other governments 3,481,390$ 3,481,390$ 3,550,848$ 69,458$ Total revenues 3,481,390 3,481,390 3,550,848 69,458
OTHER FINANCING SOURCES/(USES)
Transfers out (3,481,389) (3,481,389) (3,481,389) - Total other financing sources/(uses) (3,481,389) (3,481,389) (3,481,389) - NET CHANGE IN FUND BALANCE 1 1 69,459 69,458 FUND BALANCE - BEGINNING 298,668 298,668 298,668 - FUND BALANCE - ENDING 298,669$ 298,669$ 368,127$ 69,458$ 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, 2025
142
190
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 93,952$ 93,952$ From other governments 3,228,501 3,228,501 3,443,857 215,356 Total revenues 3,228,501 3,228,501 3,537,809 309,308
OTHER FINANCING SOURCES/(USES)
Transfers out (3,228,501) (6,416,972) (3,821,098) 2,595,874 Total other financing sources/(uses) (3,228,501) (6,416,972) (3,821,098) 2,595,874 NET CHANGE IN FUND BALANCE - (3,188,471) (283,289) 2,905,182 FUND BALANCE - BEGINNING 4,030,633 4,030,633 4,030,633 - FUND BALANCE - ENDING 4,030,633$ 842,162$ 3,747,344$ 2,905,182$ Budgeted Amounts
CITY OF SIMI VALLEY
ROAD MAINTENANCE AND REHABILITATION ACCOUNT
SUPPLEMENTAL SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
143
191
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 500$ 500$ 760,884$ 760,384$ From other governments 5,754,287 5,754,287 6,046,701 292,414 Total revenues 5,754,787 5,754,787 6,807,585 1,052,798
EXPENDITURES
Current:
Public ways and facilities 40,000 40,000 37,084 2,916 Total expenditures 40,000 40,000 37,084 2,916
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 5,714,787 5,714,787 6,770,501 1,055,714
OTHER FINANCING SOURCES/(USES)
Transfers out (5,714,287) (9,127,700) (5,662,881) 3,464,819 Total other financing sources/(uses) (5,714,287) (9,127,700) (5,662,881) 3,464,819 NET CHANGE IN FUND BALANCE 500 (3,412,913) 1,107,620 4,520,533 FUND BALANCE - BEGINNING 11,608,757 11,608,757 11,608,757 - FUND BALANCE - ENDING 11,609,257$ 8,195,844$ 12,716,377$ 4,520,533$ 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, 2025
144
192
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Taxes 2,805,110$ 2,805,110$ 2,805,110$ -$ Fines and forfeitures 3,500 3,500 3,709 209 Use of money and property 16,000 16,000 109,083 93,083 Grants 85,320 93,791 74,796 (18,995) Service charges 4,000 4,000 4,285 285 Other revenues 53,500 53,500 57,550 4,050 Total revenues 2,967,430 2,975,901 3,054,533 78,632
EXPENDITURES
Current:
Community services 2,572,598 4,495,222 2,589,372 1,905,850 Total current expenditures 2,572,598 4,495,222 2,589,372 1,905,850 Debt service:
Principal - - 38,812 (38,812) Interest - - 39,360 (39,360) Total debt service - - 78,172 (78,172) Total expenditures 2,572,598 4,495,222 2,667,544 1,827,678 NET CHANGE IN FUND BALANCE 394,832 (1,519,321) 386,989 1,906,310 FUND BALANCE - BEGINNING 2,770,056 2,770,056 2,770,056 - FUND BALANCE - ENDING 3,164,888$ 1,250,735$ 3,157,045$ 1,906,310$ 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, 2025
145
193
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 21,912$ 21,912$ Other revenues 74,797 74,797 533,464 458,667 Total revenues 74,797$ 74,797$ 555,376$ 480,579$
EXPENDITURES
Current:
General government 258,269 258,269 - 258,269 Total expenditures 258,269 258,269 - 258,269 NET CHANGE IN FUND BALANCE (183,472) (183,472) 555,376 738,848
FUND BALANCE - BEGINNING - - - - FUND BALANCE - ENDING (183,472) $ (183,472) $ 555,376 $ 738,848 $ 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, 2025
146
194
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 12,000$ 12,000$ 68,014$ 56,014$ Grants 1,771,050 2,027,468 1,501,950 (525,518) Total revenues 1,783,050 2,039,468 1,569,964 (469,504)
EXPENDITURES
Current:
Public safety 1,492,160 2,363,366 1,116,365 1,247,001 Total current expenditures 1,492,160 2,363,366 1,116,365 1,247,001 Capital outlay - - - - Debt Service:
Principal - - 50,838 (50,838) Interest - - 6,662 (6,662) Total debt service - - 57,500 (57,500) Total expenditures 1,492,160 2,363,366 1,173,865 1,189,501
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES 290,890 (323,898) 396,099 719,997
OTHER FINANCING SOURCES/(USES)
Transfers out (311,000) (311,000) (308,000) 3,000 Total other financing sources/(uses) (311,000) (311,000) (308,000) 3,000 NET CHANGE IN FUND BALANCE (20,110) (634,898) 88,099 722,997 FUND BALANCE - BEGINNING 1,928,000 1,928,000 1,928,000 - FUND BALANCE - ENDING 1,907,890$ 1,293,102$ 2,016,099$ 722,997$ 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, 2025
147
195
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property -$ -$ 44,231$ 44,231$ Grants 1,364,582 1,476,449 952,719 (523,730) Total revenues 1,364,582 1,476,449 996,950 (479,499)
EXPENDITURES
Current:
General government 777,316 1,441,506 266,481 1,175,025 Community services 150,737 460,822 143,688 317,134 Public ways and facilities 436,529 585,124 585,124 - Total expenditures 1,364,582 2,487,452 995,293 1,492,159
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER) EXPENDITURES - (1,011,003) 1,657 1,012,660
OTHER FINANCING SOURCES/(USES)
Transfers in 138,231 138,231 138,231 - Total other financing sources/(uses) 138,231 138,231 138,231 - NET CHANGE IN FUND BALANCE 138,231 (872,772) 139,888 1,012,660 FUND BALANCE - BEGINNING (137,729) (137,729) (137,729) - FUND BALANCE - ENDING 502$ (1,010,501)$ 2,159$ 1,012,660$ 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, 2025
148
196
Variance with
Final Budget
Positive/
Original Final Actual (Negative)
REVENUES
Use of money and property 400$ 400$ (10,112)$ (10,512)$ Service charges 790,267 790,267 791,026 759 Other revenues - - 137,474 137,474 Total revenues 790,667 790,667 918,388 127,721
EXPENDITURES
Current:
Public ways and facilities 1,351,495 1,598,860 1,475,845 123,015 Total expenditures 1,351,495 1,598,860 1,475,845 123,015
EXCESS/(DEFICIENCY) OF REVENUES
OVER/(UNDER EXPENDITURES (560,828) (808,193) (557,457) 250,736
OTHER FINANCING SOURCES/(USES)
Transfers in 400,000 647,365 647,365 - Total other financing sources/(uses) 400,000 647,365 647,365 - NET CHANGE IN FUND BALANCE (160,828) (160,828) 89,908 250,736 FUND BALANCE/(DEFECIT) - BEGINNING (592,844) (592,844) (592,844) - FUND BALANCE/(DEFECIT) - ENDING (753,672)$ (753,672)$ (502,936)$ 250,736$ 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, 2025
149
197
198
City of Simi Valley
State of California
Annual COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year ENDED JUNE 30, 2025
INTERNAL SERVICE
AND FIDUCIARY FUNDS
199
200
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
ASSETS
Current assets:
Cash and investments 6,988,861 $ 19,284,873 $ 331,048 $ - $ 26,604,782$ Interest receivable 51,648 174,703 2,867 - 229,218 Total assets 7,040,509 19,459,576 333,915 - 26,834,000
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions - 89,817 - - 89,817 Related to other postemployment benefits - 32,194 - - 32,194 Total deferred outflows of resources - 122,011 - - 122,011
LIABILITIES
Current liabilities:
Accounts payable 185,296 3,611 1,759 - 190,666 Salaries and benefits payable - 9,517 - - 9,517 Compensated absences - 3,907 - - 3,907 Claims and legal services payable 1,501,738 2,132,754 - - 3,634,492 Total current liabilities 1,687,034 2,149,789 1,759 - 3,838,582 Noncurrent liabilities:
Compensated absences - 24,002 - - 24,002 Claims and legal services payable 2,239,073 6,194,193 - - 8,433,266 Net pension liability - 444,163 - - 444,163 Net other postemployment benefits liability - 153,292 - - 153,292 Total noncurrent liabilities 2,239,073 6,815,650 - - 9,054,723 Total liabilities 3,926,107 8,965,439 1,759 - 12,893,305
DEFERRED INFLOWS OF RESOURCES
Related to other postemployment benefits - 97,796 - - 97,796 Total deferred inflows of resources - 97,796 - - 97,796
NET POSITION
Unrestricted 3,114,402 10,518,352 332,156 - 13,964,910 Total net position 3,114,402$ 10,518,352$ 332,156$ -$ 13,964,910$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2025
150
201
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
OPERATING REVENUES
Charges for sales and services 4,583,901$ 2,135,962$ 95,200$ -$ 6,815,063$
OPERATING EXPENSES
Salaries and benefits - 179,521 - - 179,521 Services:
Professional and contracted services - 157,540 54,336 - 211,876 Other services - 2,420 49,125 - 51,545 Insurance 2,259,592 352,452 - - 2,612,044 Claims and legal expenses 2,967,999 2,233,769 - - 5,201,768 General administration 187,797 395,264 - - 583,061 Total operating expenses 5,415,388 3,320,966 103,461 - 8,839,815 OPERATING INCOME/(LOSS) (831,487) (1,185,004) (8,261) - (2,024,752)
NONOPERATING REVENUES AND (EXPENSES)
Interest 207,385 1,053,977 11,483 - 1,272,845 Other 12,588 1,794 - - 14,382 Total nonoperating revenues/(expenses) 219,973 1,055,771 11,483 - 1,287,227 INCOME/(LOSS) BEFORE TRANSFERS (611,514) (129,233) 3,222 - (737,525)
TRANSFERS
Transfers out (3,000) (3,200) - (482) (6,682) Total transfers (3,000) (3,200) - (482) (6,682) CHANGE IN NET POSITION (614,514) (132,433) 3,222 (482) (744,207) NET POSITION - BEGINNING 3,728,916 10,650,785 328,934 482 14,709,117 NET POSITION - ENDING 3,114,402$ 10,518,352$ 332,156$ -$ 13,964,910$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
151
202
Workers'
Liability Compensation GIS/Permits FIS
Insurance Insurance Operations Operations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from service charges and other revenues 4,596,489$ 2,137,756$ 95,200$ -$ 6,829,445$ Cash paid for salaries and benefits - (263,302) - - (263,302) Cash paid for services - (165,445) (105,489) - (270,934) Cash paid for insurance (2,258,567) (352,452) - - (2,611,019) Cash paid for claims and legal expenses (1,526,256) (1,097,329) - - (2,623,585) Cash paid for general administration (187,797) (395,264) - - (583,061) Net cash provided by/(used in) operating activities 623,869 (136,036) (10,289) - 477,544
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Cash transfers (to) other funds (3,000) (3,200) - (482) (6,682) Cash (used in) noncapital financing activities (3,000) (3,200) - (482) (6,682)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 195,819 1,050,440 11,399 - 1,257,658 Cash provided by investing activities 195,819 1,050,440 11,399 - 1,257,658 NET INCREASE/(DECREASE) IN CASH AND INVESTMENTS 816,688 911,204 1,110 (482) 1,728,520 CASH AND INVESTMENTS, BEGINNING OF YEAR 6,172,173 18,373,669 329,938 482 24,876,262 CASH AND INVESTMENTS, END OF YEAR 6,988,861$ 19,284,873$ 331,048$ -$ 26,604,782$
RECONCILIATION OF OPERATING INCOME/(LOSS) TO NET CASH
PROVIDED BY/(USED IN) OPERATING ACTIVITIES
Operating income/(loss) (831,487)$ (1,185,004)$ (8,261)$ -$ (2,024,752)$ Adjustments to reconcile operating income/(loss) to net cash provided by/ (used in) by operating activities:
Increase/(decrease) in accounts payable 1,025 (5,485) (2,028) - (6,488) Increase in accrued payroll - 783 - - 783 Increase in compensated absences - 4,432 - - 4,432 Increase in claims and legal services payable 1,441,743 1,136,440 - - 2,578,183 (Decrease) in net pension liability - (130,753) - - (130,753) Increase in net other postemployment benefits liability - 41,757 - - 41,757 Adjustment for revenues and expenses classified as nonoperating 12,588 1,794 - - 14,382 Total adjustments 1,455,356 1,048,968 (2,028) - 2,502,296 Net cash provided by/(used in) operating activities 623,869$ (136,036)$ (10,289)$ -$ 477,544$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
152
203
Community Merged
Development Tapo Canyon Redevelopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
ASSETS
Cash and investments:
Held by City - $ (110,369)$ 1 $ 2,628,963$ Held by bond trustee - - - - Interest receivable - - - 12,092 Capital assets not being depreciated - 1,124,174 - - Total assets - 1,013,805 1 2,641,055
LIABILITIES
Accounts payable and accrued liabilities - - - - Accrued interest payable - - - - Long-term debt:
Due within one year - - - - Due in more than one year - - - - Total liabilities - - - -
FIDUCIARY NET POSITION/(DEFICIT)
Held in trust for other purposes - 1,013,805 1 2,641,055 Total net position/(deficit) -$ 1,013,805$ 1$ 2,641,055$ (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, 2025
153
204
Total Successor
2003 Agency to the
Tax Allocation Simi Valley CDA
Refunding CDA Private-Purpose
Bonds Projects Trust Funds
ASSETS
Cash and investments:
216,874$ 42,591 $ 2,778,060$ Held by City 2,175,897 - 2,175,897 Held by bond trustee (100) 393 12,385 Interest receivable - - 1,124,174 Capital assets not being depreciated 2,392,671 42,984 6,090,516 Total assets
LIABILITIES
2,250 - 2,250 Accounts payable and accrued liabilities 176,618 - 176,618 Accrued interest payable Long-term debt:
1,581,306 - 1,581,306 Due within one year 9,165,679 - 9,165,679 Due in more than one year 10,925,853 - 10,925,853 Total liabilities
FIDUCIARY NET POSITION/(DEFICIT)
(8,533,182) 42,984 (4,835,337) Held in trust for other purposes (8,533,182)$ 42,984 $ (4,835,337)$ Total net position/(deficit) (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, 2025
154
205
Community Merged
Development Tapo Canyon Redevelopment
Agency & West End LMIH- Obligation
Administration Tax Increment Residual Retirement
ADDITIONS
Property taxes -$ -$ -$ 2,115,261$ Investment earnings, net of investment expense - - - 56,957 Transfers in 10,440 - - - TOTAL ADDITIONS 10,440 - - 2,172,218
DEDUCTIONS
Administrative expenses 10,440 - - - Interest and fiscal agency expenses - - - - Transfers out - - - 2,077,250 TOTAL DEDUCTIONS 10,440 - - 2,077,250 CHANGE IN FIDUCIARY NET POSITION - - - 94,968 FIDUCIARY NET POSITION/(DEFICIT) - BEGINNING - 1,013,805 1 2,546,087 FIDUCIARY NET POSITION/(DEFICIT) - ENDING -$ 1,013,805$ 1$ 2,641,055$ (Continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
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
155
206
Total Successor
2003 Agency to the
Tax Allocation Eliminate the Simi Valley CDA
Refunding CDA Impact of Private-Purpose
Bonds Projects Transfers Trust Funds
ADDITIONS
-$ - $ - $ 2,115,261$ Property taxes 94,128 1,584 - 152,669 Investment earnings, net of investment expense 2,154,732 - (2,165,172) - Transfers in 2,248,860 1,584 (2,165,172) 2,267,930 TOTAL ADDITIONS
DEDUCTIONS
7,605 - - 18,045 Administrative expenses 528,995 - - 528,995 Interest and fiscal agency expenses 87,922 - (2,165,172) - Transfers out 624,522 - (2,165,172) 547,040 TOTAL DEDUCTIONS 1,624,338 1,584 - 1,720,890 CHANGE IN FIDUCIARY NET POSITION (10,157,520) 41,400 - (6,556,227) FIDUCIARY NET POSITION/(DEFICIT) - BEGINNING (8,533,182)$ 42,984 $ - $ (4,835,337)$ FIDUCIARY NET POSITION/(DEFICIT) - ENDING (Concluded)
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
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
156
207
Assessment
City Districts
Custodial City of Total
Fund Simi Valley Custodial Funds
ASSETS
Cash and investments:
Held by City 6,085,801 $ 1,442,072 $ 7,527,873 $ Held by bond trustee - 851,803 851,803 Accounts receivable - 11,915 11,915 Total assets 6,085,801 2,305,790 8,391,591
LIABILITIES
Accounts payable and accrued liabilities 3,198 2,678 5,876 Deposits 6,082,603 - 6,082,603 Due to bondholders - 1,784,234 1,784,234 Total liabilities 6,085,801 1,786,912 7,872,713
FIDUCIARY NET POSITION
Net position restricted for individuals - 518,878 518,878 Total net position -$ 518,878$ 518,878$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2025
157
208
Assessment
City Districts
Custodial City of Total
Fund Simi Valley Custodial Funds
ADDITIONS
Other taxes -$ 498,395$ 498,395$ Investment earnings, net of investment expense - 84,215 84,215 TOTAL ADDITIONS - 582,610 582,610
DEDUCTIONS
Administrative expenses - 9,179 9,179 Interest and fiscal agency expenses - 272,615 272,615 TOTAL DEDUCTIONS - 281,794 281,794 CHANGE IN FIDUCIARY NET POSITION - 300,816 300,816 FIDUCIARY NET POSITION - BEGINNING - 218,062 218,062 FIDUCIARY NET POSITION - ENDING -$ 518,878$ 518,878$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
158
209
Total Pension
and Other
Postemployment
Pension OPEB Bene fits (OPEB)
Trust Fund Trust Fund Trust Funds
ASSETS
Restricted Cash and investments:
Money market mutual funds - $ 102,438$ 102,438 $ Mutual funds 1,490,536 4,219,810 5,710,346 Total assets 1,490,536 4,322,248 5,812,784
FIDUCIARY NET POSITION
Net position restricted for pensions 1,490,536 - 1,490,536 Net position restricted for OPEB - 4,322,248 4,322,248 Total net position 1,490,536$ 4,322,248$ 5,812,784$
CITY OF SIMI VALLEY
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION AND OTHER POSTEMPLOYMENT BENEFITS (OPEB) TRUST FUNDS JUNE 30, 2025
159
210
Total Pension
and Other
Postemployment
Pension OPEB Benefits (OPEB)
Trust Fund Trust Fund Trust Funds
ADDITIONS
Contributions -$ 3,909,638$ 3,909,638 $ Investment earnings, net of investment expense 127,108 450,629 577,737 TOTAL ADDITIONS 127,108 4,360,267 4,487,375
DEDUCTIONS
Administrative expenses 397 21,234 21,631 Benefit payments 144,301 3,909,638 4,053,939 TOTAL DEDUCTIONS 144,698 3,930,872 4,075,570 CHANGE IN FIDUCIARY NET POSITION (17,590) 429,395 411,805 FIDUCIARY NET POSITION - BEGINNING 1,508,126 3,892,853 5,400,979 FIDUCIARY NET POSITION - ENDING 1,490,536$ 4,322,248$ 5,812,784$
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, 2025
160
211
212
STATISTICAL SECTION
STATISTICAL SECTION
213
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. ............... 162
Revenue Capacity
These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. .......................................................... 172
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. .................................................................. ......................... 178
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. ..... 182
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. ........................................................ 184
SOURCE:
Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial report for the relevant year.
161
214
2015-16 2016-17 2017-18 2018-19 2019-20
Governmental activities
Net investment in capital assets 211,751,365$ 210,531,356$ 196,724,305$ 208,951,633$ 209,763,040$ Restricted 57,552,738 64,139,877 71,851,898 60,704,865 62,018,594 Unrestricted (52,859,886) (62,293,358) (88,047,192) (90,524,428) (89,407,109) Total governmental activites net position 216,444,217$ 212,377,875$ 180,529,011$ 179,132,070$ 182,374,525$ Business-type activities
Net investment in capital assets 143,093,105$ 141,317,489$ 139,670,875$ 137,805,536$ 139,278,603$ Restricted 5,140,128 5,941,420 7,011,040 7,874,785 7,874,785 Unrestricted 17,627,461 19,496,282 18,695,056 24,888,703 30,472,607 Total business-type activities net position 165,860,694$ 166,755,191$ 165,376,971$ 170,569,024$ 177,625,995$ Primary Government
Net investment in capital assets 354,844,470$ 351,848,845$ 336,395,180$ 346,757,169$ 349,041,643$ Restricted 62,692,866 70,081,297 78,862,938 68,579,650 69,893,379 Unrestricted (35,232,425) (42,797,076) (69,352,136) (65,635,725) (58,934,502) Total primary government net position 382,304,911$ 379,133,066$ 345,905,982$ 349,701,094$ 360,000,520$ (Continued)
Fiscal Year
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
162
215
2020-21 2021-22 2022-23 2023-24 2024-25
Governmental activities
203,826,589$ 200,958,735$ 209,775,571$ 214,227,084$ 223,978,037$ Net investment in capital assets 78,265,866 87,578,328 81,276,789 79,502,386 81,383,282 Restricted (83,168,701) (67,653,561) (57,486,049) (56,918,578) (59,740,280) Unrestricted 198,923,754$ 220,883,502$ 233,566,311$ 236,810,892$ 245,621,039$ Total governmental activites net position Business-type activities
148,000,879$ 133,253,370$ 135,124,145$ 133,921,622$ 147,217,235$ Net investment in capital assets 9,843,643 12,266,569 12,622,013 13,900,255 14,778,358 Restricted 28,737,089 56,432,178 70,955,082 88,407,711 105,264,031 Unrestricted 186,581,611$ 201,952,117$ 218,701,240$ 236,229,588$ 267,259,624$ Total business-type activities net position Primary Government
351,827,468$ 334,212,105$ 344,899,716$ 348,148,706$ 371,195,272$ Net investment in capital assets 88,109,509 99,844,897 93,898,802 93,402,641 96,161,640 Restricted (54,431,612) (11,221,383) 13,469,033 31,489,133 45,523,751 Unrestricted 385,505,365$ 422,835,619$ 452,267,551$ 473,040,480$ 512,880,663$ Total primary government net position (Concluded)
Fiscal Year
CITY OF SIMI VALLEY
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
163
216
2015-16 2016-17 2017-18 2018-19 2019-20
Expenses
Governmental activities:
General government 16,442,755$ 13,323,582$ 18,661,104$ 17,720,443$ 19,516,513$ Community services 6,397,826 7,068,775 7,469,961 7,234,363 6,523,639 Planning 6,308,221 6,001,235 6,459,507 6,002,066 3,840,624 Public safety 31,286,515 34,501,473 38,809,004 36,836,767 36,691,093 Public ways and facilities 16,641,718 18,569,074 19,580,854 19,651,601 23,659,432 Interest on long-term debt 720,840 937,079 1,230,782 1,440,347 1,466,885 Refunding bond issuance costs 194,069 - - - - Total governmental activities expenses 77,991,944 80,401,218 92,211,212 88,885,587 91,698,186 Business-type activities:
Sanitation 14,845,944 18,151,061 18,222,816 17,375,318 17,324,800 Waterworks District No. 8 34,249,031 36,967,538 42,900,423 40,552,517 42,895,822 Transit 7,117,042 7,369,511 9,135,850 9,387,703 8,839,284 Total business-type activities expenses 56,212,017 62,488,110 70,259,089 67,315,538 69,059,906 Total primary government expenses 134,203,961$ 142,889,328$ 162,470,301$ 156,201,125$ 160,758,092$ Program Revenues
Governmental activities:
Charges for services:
General government 1,606,097$ 800,874$ 2,497,172$ 2,580,241$ 1,990,356$ Community services 1,109,053 924,269 1,015,074 1,086,783 840,227 Planning 2,738,543 4,256,995 4,430,830 4,742,278 2,926,064 Publ
ic safety 771,002 626,340 889,379 896,399 561,674 Public ways and facilities 1,821,043 1,936,852 2,719,170 2,927,559 2,335,563 Operating grants and contributions 9,643,713 9,398,940 9,348,042 11,987,812 12,622,399 Capital grants and contributions 13,530,222 3,694,804 2,117,322 1,619,868 5,383,614 Total governmental activities program revenues 31,219,673 21,639,074 23,016,989 25,840,940 26,659,897 Business-type activities:
Charges for services:
Sanitation 16,047,248 17,645,619 19,241,722 20,591,589 21,857,056 Waterworks District No. 8 30,877,802 36,529,274 43,808,330 40,967,174 43,144,049 Transit 430,804 426,246 406,387 402,517 291,226 Operating grants and contributions 2,602,009 2,639,740 2,667,120 2,673,492 5,663,893 Capital grants and contributions 5,458,314 1,921,558 2,064,181 1,952,893 1,302,250 Total business-type activities program revenues 55,416,177 59,162,437 68,187,740 66,587,665 72,258,474 Total primary government program revenues 86,635,850$ 80,801,511$ 91,204,729$ 92,428,605$ 98,918,371$ Net (Expense)/Revenue
Governmental activities (46,772,271)$ (58,762,144)$ (69,194,223)$ (63,044,647)$ (65,038,289)$ Business-type activities (795,840) (3,325,673) (2,071,349) (727,873) 3,198,568 Total primary government net expense (47,568,111)$ (62,087,817)$ (71,265,572)$ (63,772,520)$ (61,839,721)$ (Continued)
Fiscal Year
CI
TY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
164
217
2020-21 2021-22 2022-23 2023-24 2024-25
Expenses
Governmental activities:
16,936,266$ 13,890,174$ 17,043,010$ 29,336,963$ 33,228,527$ General government 6,568,970 6,204,005 7,467,577 8,696,150 8,903,776 Community services 6,739,637 5,908,937 6,841,158 7,647,602 6,578,155 Planning 37,445,831 35,758,204 38,757,037 40,173,347 42,605,494 Public safety 19,921,676 17,753,088 18,555,545 21,525,038 23,398,163 Public ways and facilities 1,356,832 1,285,332 1,189,630 1,174,250 1,417,459 Interest on long-term debt - - - - - Refunding bond issuance costs 88,969,212 80,799,740 89,853,957 108,553,350 116,131,574 Total governmental activities expenses Business-type activities:
18,985,485 15,323,866 18,206,100 18,164,038 19,785,034 Sanitation 48,250,272 44,127,857 37,536,761 42,666,774 48,223,347 Waterworks District No. 8 8,222,624 7,787,395 9,436,766 9,263,532 9,552,196 Transit 75,458,381 67,239,118 65,179,627 70,094,344 77,560,577 Total business-type activities expenses 164,427,593$ 148,038,858$ 155,033,584$ 178,647,694$ 193,692,151$ Total primary government expenses Program Revenues
Governmental activities:
Charges for services:
1,569,907$ 1,618,424$ 1,613,425$ 1,272,945$ 7,072,788$ General government 293,799 836,307 996,991 1,353,729 559,550 Community services 5,443,247 5,011,362 3,749,701 3,083,681 3,261,281 Pl anning
772,994 414,024 708,841 537,726 815,704 Public safety 3,687,751 3,940,427 1,823,353 2,494,351 3,285,274 Public ways and facilities 22,170,916 19,932,730 15,927,173 17,978,707 22,078,646 Operating grants and contributions 505,218 546,707 2,143,432 940,645 1,638,746 Capital grants and contributions 34,443,832 32,299,981 26,962,916 27,661,784 38,711,989 Total governmental activities program revenues Business-type activities:
Charges for services:
23,846,199 26,077,946 27,414,752 29,866,164 32,681,965 Sanitation 51,005,332 48,945,484 40,656,924 44,887,288 54,477,581 Waterworks District No. 8 8,922 180,585 282,560 344,048 337,475 Transit 6,923,917 3,459,938 3,435,944 3,521,891 3,765,639 Operating grants and contributions 3,745,985 2,484,089 3,387,969 2,424,619 4,728,813 Capital grants and contributions 85,530,355 81,148,042 75,178,149 81,044,010 95,991,473 Total business-type activities program revenues 119,974,187$ 113,448,023$ 102,141,065$ 108,705,794$ 134,703,462$ Total primary government program revenues Net (Expense)/Revenue
(54,525,380)$ (48,499,759)$ (62,891,041)$ (80,891,566)$ (77,419,585)$ Governmental activities 10,071,974 13,908,924 9,998,522 10,949,666 18,430,896 Business-type activities (44,453,406)$ (34,590,835)$ (52,892,519)$ (69,941,900)$ (58,988,689)$ Total primary government net expense (Continued)
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LA
ST TEN FISCAL YEARS
165
218
2015-16 2016-17 2017-18 2018-19 2019-20
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
Property taxes 29,835,623$ 31,120,875$ 32,303,044$ 34,011,044$ 39,014,593$ Sales taxes 17,432,505 16,842,335 17,857,830 18,961,367 18,319,232 Franchise taxes 5,025,802 4,740,682 4,445,972 4,931,918 4,872,904 Business taxes 1,786,153 1,787,587 1,967,065 2,106,344 2,112,049 Other taxes 2,587,113 2,561,922 2,703,566 2,849,714 2,289,122 Investment earnings 835,387 964,495 1,290,234 2,496,426 2,973,992 Miscellaneous - - - - - Transfers (3,255,695) (3,572,095) (3,512,087) (3,758,457) (1,353,309) Contributions from other governments - - 2,082,766 49,350 52,160 Contributions to other governments (63,992) 250,000 - - - Total governmental activities 54,182,896 54,695,802 59,138,390 61,647,706 68,280,743 Business-type activities:
Investment earnings 811,714 520,855 821,540 2,041,917 2,418,455 Miscellaneous 261,087 127,220 119,408 119,552 86,638 Transfers 3,255,695 3,572,095 3,512,087 3,758,457 1,353,309 Special item: loss on abandonment of projects - - - - - Total business-type activities 4,328,496 4,220,170 4,453,035 5,919,926 3,858,402 To
tal primary government 58,511,392$ 58,915,972$ 63,591,425$ 67,567,632$ 72,139,145$ Change in Net Position
Governmental activities 7,410,625$ (4,066,342)$ (10,055,833)$ (1,396,941)$ 3,242,454$ Business-type activities 3,532,656 894,497 2,381,686 5,192,053 7,056,970 Total primary government 10,943,281$ (3,171,845)$ (7,674,147)$ 3,795,112$ 10,299,424$ (Continued)
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
166
219
2020-21 2021-22 2022-23 2023-24 2024-25
General Revenues
and Other Changes in Net Position
Governmental activities:
Taxes:
37,990,791$ 39,173,353$ 42,184,244$ 44,105,061$ 46,061,400$ Property taxes 21,372,380 23,631,522 23,398,289 23,035,361 23,301,880 Sales taxes 5,185,293 5,393,386 6,084,358 6,189,771 5,949,996 Franchise taxes 2,241,423 2,343,050 2,436,816 2,636,053 2,772,298 Business taxes 2,418,059 3,309,528 3,094,977 2,813,583 3,156,283 Other taxes 699,791 (292,256) 3,137,714 8,134,385 9,220,382 Investment earnings - 295,538 39,107 104,459 124,110 Miscellaneous 1,115,388 (3,449,116) (4,811,124) (2,882,526) (4,356,617) Transfers 51,484 54,502 9,469 - - Contributions from other governments - - - - - Contributions to other governments 71,074,609 70,459,507 75,573,850 84,136,147 86,229,732 Total governmental activities Business-type activities:
(156,009) (2,166,729) 1,848,136 5,667,740 7,710,558 Investment earnings 155,039 179,195 91,341 130,569 531,965 Miscellaneous (1,115,388) 3,449,116 4,811,124 2,882,526 4,356,617 Transfers - - - (2,102,153) - Special item: loss on abandonment of projects (1,116,358) 1,461,582 6,750,601 6,578,682 12,599,140 T otal business-type activities
69,958,251$ 71,921,089$ 82,324,451$ 90,714,829$ 98,828,872$ Total primary government Change in Net Position
16,549,229$ 21,959,748$ 12,682,809$ 3,244,581$ 8,810,147$ Governmental activities 8,955,616 15,370,506 16,749,123 17,528,348 31,030,036 Business-type activities 25,504,845$ 37,330,254$ 29,431,932$ 20,772,929$ 39,840,183$ Total primary government (Concluded)
LAST TEN FISCAL YEARS
Fiscal Year
CITY OF SIMI VALLEY
CHANGES IN NET POSITION
167
220
2015-16 2016-17 2017-18 2018-19 2019-20
General fund
Nonspendable, reported in:
Long-term receivables 15,769,102$ 14,039,905$ 14,035,421$ 10,017,212$ 8,124,400$ Prepaid items - - - - - Committed, reported in:
Contingency - - - - - Economic recovery 6,084,838 6,084,838 5,084,838 5,084,838 11,084,838 Infrastructure - - - - - Prudent reserve 11,665,494 11,737,044 12,315,232 12,670,975 13,049,720 Retiree obligations 535,057 17,609 30,008 278,911 Specialized programs 319,322 333,021 386,105 421,164 522,806 Assigned, reported in:
Capital 9,374,012 9,647,610 10,672,125 17,873,825 19,355,215 Encumbrances - - - - - Unassigned - - (472,818) - - Total General fund 43,747,825$ 41,860,027$ 42,020,903$ 46,098,022$ 52,415,890$ All other governmental funds
Restricted, reported in:
Housing programs 10,483,070$ 11,334,690$ 12,044,976$ 13,008,731$ 9,806,362$ Law enforcement 2,852,712 2,620,596 2,445,054 2,853,886 1,485,999 Public improvements 11,949,371 10,966,923 10,456,563 8,949,351 8,757,063 Special programs 2,199,119 2,583,864 3,074,465 3,972,856 4,464,783 St
reets and transportation 3,872,702 3,846,189 4,815,203 5,991,314 8,023,324 Landscape 1,404,310 1,104,197 844,656 693,379 162,870 Debt service - 6,424,000 11,989,483 4,241,900 1,456,124 Committed, reported in:
Equipment 5,306,436 5,230,390 5,267,713 5,101,910 6,674,465 Infrastructure 2,789,142 2,202,918 4,162,511 2,565,480 2,739,696 Assigned, reported in:
Capital 59,446 - - - - Unassigned (55,000) (4,618,291) (693,295) (209,150) - Total all other
governmental funds 40,861,308$ 41,695,476$ 54,407,329$ 47,169,657$ 43,570,686$ (Continued)
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year
SOURCE:
City of Simi Valley
168
221
2020-21 2021-22 2022-23 2023-24 2024-25
General fund
Nonspendable, reported in:
5,971,366$ 5,920,262 $ 3,569,595 $ 3,569,595 $ 3,564,595 $ Long-term receivables - - - 4,687 5,706 Prepaid items Committed, reported in:
- - - - 1,440,632 Contingency 11,084,838 11,084,838 11,084,838 11,084,838 11,084,838 Economic recovery - - - - 129,334 Infrastructure 14,019,727 14,139,864 15,101,687 16,107,426 17,011,694 Prudent reserve 372,760 509,729 1,321,566 1,593,010 1,807,549 Retiree obligations 590,552 764,872 1,065,496 1,100,144 1,008,460 Specialized programs Assigned, reported in:
38,297,703 44,281,431 47,834,064 44,665,573 - Capital - - - - 2,254,740 Encumbrances - - - - 42,534,883 Unassigned 70,336,946$ 76,700,996$ 79,977,246$ 78,125,273$ 80,842,431$ Total General fund All other governmental funds
Restricted, reported in:
11,661,964$ 12,013,585$ 12,312,601$ 12,890,551$ 13,724,931$ Housing programs 1,435,178 1,444,284 1,876,000 2,423,824 2,586,923 Law enforcement 8,077,145 7,849,488 6,581,779 8,523,834 3,191,386 Public improvements 4,509,530 4,762,883 5,308,559 5, 913,914 7,156,168 Special programs 14,599,926 16,008,040 15,481,211 17,710,160 18,597,811 Streets and transportation - - - - - Landscape 1,324,129 1,324,129 903,812 - - Debt service Committed, reported in:
7,709,947 6,073,233 7,601,056 7,979,671 11,092,556 Equipment 3,137,771 15,610,695 15,125,290 15,022,502 15,981,950 Infrastructure Assigned, reported in:
- - - - - Capital (509,396) (1,168,102) (1,106,432) (730,573) (502,936) Unassigned Total all other
51,946,194$ 63,918,235$ 64,083,876$ 69,733,883$ 71,828,789$ governmental funds (Concluded)
CITY OF SIMI VALLEY
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year
SOURCE:
City of Simi Valley
169
222
2015-16 2016-17 2017-18 2018-19 2019-20
Revenues
Taxes 56,667,196 $ 57,053,401 $ 59,277,477 $ 62,860,387 $ 66,607,900 $ Licenses and permits 2,561,293 2,158,210 2,523,744 2,618,558 2,703,432 Fines and forfeitures 597,889 403,841 568,456 562,503 329,429 Use of money and property 2,901,207 1,276,619 1,796,416 3,049,771 3,355,999 From other governments 7,715,746 7,094,051 8,092,405 10,014,798 9,601,415 Grants 3,858,045 4,417,808 2,838,349 2,933,635 7,640,989 Service charges 3,300,023 3,304,023 3,970,562 4,185,273 2,773,884 Other revenues 1,732,533 2,783,106 4,629,045 4,982,086 3,008,689 Total revenues 79,333,932 78,491,059 83,696,454 91,207,011 96,021,737 Expenditures
Current:
General government 5,784,087 6,457,231 8,530,647 6,309,774 9,906,448 Community services 6,581,050 6,763,706 6,927,525 6,673,466 5,891,145 Planning 6,246,916 6,387,901 6,447,721 5,533,197 5,878,601 Public ways and facilities 15,988,868 16,076,033 16,467,229 15,610,695 20,013,765 Public safety 32,811,987 33,107,205 33,565,393 34,156,673 36,325,983 Capital outlay 3,362,875 16,914,455 7,153,833 17,291,140 9,822,627 Debt service:
Principal - - 1,002,827 1,416,140 1,550,208 Interest 806,625 806,625 1,289,250 1,326,672 1,762,714 Other 1,150 103,816 80,624 2,900 6,400 Total expenditures 71,583,558 86,616,972 81,465,049 88,320,657 91,157,891 Excess/(deficiency) of revenues
over expenditures 7,750,374 (8,125,913) 2,231,405 2,886,354 4,863,846 Other Financing Sources/(Uses)
Transfers in 8,301,888 18,175,804 13,912,428 20,421,754 15,259,176 Transfers out (11,604,733) (21,320,599) (17,418,315) (26,518,011) (17,456,285) Bonds issued - 9,967,078 12,064,445 - - Contributions from other governments 250,000 250,000 2,082,766 49,350 52,160 Contributions to other governments (313,992) - - - - Proceeds from sale of property - - - - - Subscription-based information technology arrangements - - - - - Total other financing sources/(uses) (3,366,837) 7,072,283 10,641,324 (6,046,907) (2,144,949) Net change in fund balances 4,383,537$ (1,053,630)$ 12,872,729$ (3,160,553)$ 2,718,897$ Debt service as a percentage of non-capital expenditures 1.20% 1.16% 3.10% 3.85% 4.18% (Continued)
Fiscal Year
LAST TEN FISCAL YEARS
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
CITY OF SIMI VALLEY
SOURCE:
City of Simi Valley
170
223
2020-21 2021-22 2022-23 2023-24 2024-25
Revenues
69,207,946$ 73,850,839 $ 77,198,684 $ 78,779,829 $ 81,241,857 $ Taxes 3,829,208 5,116,843 3,606,782 3,042,135 3,438,113 Licenses and permits 236,362 277,228 263,610 296,938 469,398 Fines and forfeitures 1,881,988 1,273,679 3,865,410 8,192,704 8,576,384 Use of money and property 9,692,508 10,253,814 12,560,545 13,460,983 13,715,943 From other governments 12,213,457 9,369,607 4,678,854 4,418,138 5,552,832 Grants 4,449,807 3,440,733 2,083,839 2,532,641 3,392,156 Service charges 3,365,342 3,060,740 2,951,551 3,418,393 9,794,334 Other revenues 104,876,618 106,643,483 107,209,275 114,141,761 126,181,017 Total revenues Expenditures
Current:
10,139,013 10,433,996 14,997,382 19,911,594 24,769,719 General government 5,946,712 6,148,462 6,958,230 7,401,864 7,928,470 Community services 6,003,043 6,766,780 6,367,421 6,445,375 5,724,789 Planning 16,252,868 16,775,133 15,443,259 17,042,317 18,454,872 Public ways and facilities 35,513,526 36,293,174 37,413,274 38,311,082 40,825,349 Public safety 2,581,289 5,341,641 14,632,717 15,743,989 15,537,417 Capital outlay Debt service:
1,845,020 1,920,799 2,231,358 2,377,194 2,472,939 Principal 1,465,341 1,385,192 1,301,407 1,286,570 1,411,884 Interest 6,314 4,801 6,901 3,973 5,102 Other 79,753,126 85,069,978 99,351,949 108,523,958 117,130,541 Total expenditures Excess/(deficiency) of revenues
25,123,492 21,573,505 7,857,326 5,617,803 9,050,476 over expenditures Other Financing Sources/(Uses)
10,912,021 23,040,297 21,696,840 26,683,205 23,357,329 Transfers in (9,790,433) (26,332,213) (26,350,764) (29,408,531) (27,707,264) Transfers out - - - - - Bonds issued 51,484 54,502 9,469 - - Contributions from other governments - - - - - Contributions to other governments - - 39,107 104,459 111,523 Proceeds from sale of property - - 189,913 801,098 - Subscription-based information technology arrangements 1,173,072 (3,237,414) (4,415,435) (1,819,769) (4,238,412) Total other financing sources/(uses) 26,296,564$ 18,336,091$ 3,441,891$ 3,798,034$ 4,812,064$ Net change in fund balances
4.32% 4.19% 4.37% 3.92% 4.11% 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
171
224
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
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 2024-25 21,239,863,194 1,775,485,600 1,431,289,868 451,287,786 24,897,926,448 (Continued)
NOTES:
2. Valuations are established by the County Assessor of the County of Ventura, except for property owned by private utility companies, which is valued by the State of California.
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time it is sold to a new owner. At that time, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxabl e property and this is the data used for taxation purposes.
It is subject to the limitations described above.
1. For comparison purposes, gross assessed valuations includes homeowners' exemption. Although this exemption reduces property tax collections, a portion of the revenue loss is reimbursed by the State of California.
As such, gross assessed valuation is the revenue base used in establishing property tax-related revenues. 172
225
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
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
- 474,556,632 25,372,483,080 4.2% 1.00% 2024-25
(Concluded)
173
226
2015-16 2016-17 2017-18 2018-19 2019-20
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 0.0541 0.0528 0.0791 0.0771 0.0594 Metropolitan Water District 0.0035 0.0035 0.0035 0.0035 0.0035 Ventura Community College Distric
t 0.0130 0.0155 0.0151 0.0152 0.0143
Total direct and overlapping 1.0706 1.0718 1.0977 1.0958 1.0772 (Continued)
Overlapping rates are those of local and county governments that apply to property owners within the City of Simi Valley. Not all overlapping rates apply to all Simi Valley property owners. Rates apply only to city property owners whose property is located within that district's geographic boundaries.
NOTES:
The tax rate information provided is for Tax Rate Area 9-006, the largest tax rate area in the City.
Fiscal Year
CITY OF SIMI VALLE
Y
DIRECT AND OVERLAPPING GOVERNMENTS
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
SOURCE:
California Municipal Statistics, Inc.
174
227
2020-21 2021-22 2022-23 2023-24 2024-25
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
0.0863 0.0922 0.0703 0.0436 0.0848 Simi Valley Unified School District
0.0035 0.0035 0.0035 0.0144 0.0137 Metropolitan Water District
0.0150 0.0148 0.0142 0.0035 0.0070 Ventura Community College District
1.1048 1.1105 1.0880 1.0615 1.1055 Total direct and overlapping (Concluded)
Fiscal Year
CITY OF SIMI VALLE
Y
DIRECT AND OVERLAPPING GOVERNMENTS
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of assessed value)
175
228
CITY OF SIMI VALLEY
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
PMI Villas, L.L.C. 145,100,623$ 1 0.67% Deleware Hidden Valley Grand Apartment, L.L.C. 111,631,004 2 0.52% CG-USA Simi Valley, L.P. 95,577,442 3 0.44%
NF Creekside Apartments, L.L.C. 84,286,055 4 0.39% 71,580,245$ 3 0.44% IMT Capital V Wood Ranch, L.L.C. 81,174,292 5 0.37% Welltower Propco Group, L.L.C. 58,410,536 6 0.27% PMI Overlook, L.L.C. 52,507,100 7 0.24%
SE-Shadow Ridge, L.L.C. 52,269,697 8 0.24% 44,346,779 8 0.27% Miracle Mile Properties, L.P. 41,184,545 9 0.19% Raas Nutritionals, L.L.C. 37,904,305 10 0.17%
Tishman Archstone & Smith 117,850,329 1 0.72%
Fountains Apartments, Ltd. 81,307,804 2 0.50%
Runkle Canyon, L.L.C. 62,235,000 4 0.38%
SRGMF II Country Club Simi 52,743,600 5 0.32%
Mountain Gate Associates, L.L.C. 45,389,105 6 0.28% Target Corporation 44,387,561 7 0.27%
ESG Properties I, L.L.C. 43,080,778 9 0.27%
South Street Center, L.L.C. 39,576,957 10 0.24%
Total Taxable Assessed Value
Ten Largest Taxpayers 760,045,599$ 3.51% 602,498,158$ 3.71% 2025 2016
SOURCE:
HdL Coren Cone
176
229
Taxes Levied Collections in
Fiscal for the Percent Subsequent Percent
Year Fiscal Year1
Amount of Levy Years2
Amount of Levy
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% 246,302 35,690,232 96.61% 2017-18 40,130,554 37,295,853 92.94% 266,978 37,562,831 93.60% 2018-19 40,163,794 38,746,266 96.47% 257,500 39,003,766 97.11% 2019-20 45,628,206 44,163,945 96.79% 271,672 44,435,617 97.39% 2020-21 43,944,603 42,848,588 97.51% 271,643 43,120,231 98.12% 2021-22 45,702,217 44,411,063 97.17% 482,662 44,893,725 98.23% 2022-23 50,070,797 48,736,264 97.33% 259,618 48,995,882 97.85% 2023-24 54,496,940 53,141,890 97.51% 53,141,890 97.51% 2024-25 56,037,504 54,732,117 97.67% N/A 54,732,117 97.67% NOTES:
Collections within the
Collections presented do not include penalty charges or interest collected.
The City of Simi Valley has not levied a general purpose property tax subsequent to the passage of Proposition 13.
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
SOURCE:
Ventura County Auditor-Controller
177
230
CITY OF SIMI VALLEY
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Lease Lease Total Percent of Debt
Fiscal Revenue Ri ght-of-Use Ri ght-of-Use Revenue Ri ght-of-Use Primar y Personal Per Year Bonds Leases SBITA Bonds SBITA Government Income4 Capita4 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 2025 27,430,968 2,468,172 311,241 28,443,411 85,025 58,738,817 0.89% 479.04 NOTES:
There is no general bonded outstanding debt in the governmental funds.
Governmental
Activities
1. In August 2014, the City issued $18,795,000 of 2014A Lease Revenue Refunding Bonds for the purpose of fully refunding the 2004 Certificates of Participation issue with a carrying amount of $21,705,000. The 2004 Certificates were refunded in full on August 26, 2014 and no portion of the 2004 Certificates remained outstanding as of June 30, 2015.
4. See Schedule of Demographic and Economic Statistics for personal income and population data.
2. In September 2016, the City issued Lease Revenue Bonds, Series 2016 New Clean Renewable Energy Bonds ( NCREBS), for $9,226,619, and a Tax-Exempt Lease, Series 2016, for $740,459, both maturing on September 1, 2036.
3. In December 2017, the City issued Tax-Exempt Lease Series 2017, for $6,408,600, maturing March 1, 2033. In May 2018, the City issued a Taxable Equipment Lease for $5,655,845, maturing in March 2034.
Business-Type
Activities
SOURCES:
City of Simi Valley
University of California, Santa Barbara
178
231
CITY OF SIMI VALLEY
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2025
Estimated Share
Outstanding Percentage of Overlapping
Overlapping and Assessment Debt Repaid with Property Taxes Debt 6/30/25 Applicable 1 Debt 6/30/25 Metropolitan Water District 17,155,000$ 0.623 % 106,876$ Ventura County Community College District 215,941,677 14.084 30,413,226 Simi Valley Unified School District 272,570,588 96.939 264,227,202 City of Simi Valley Community Facilities Dist No. 2004-1 4,695,000 100.000 4,695,000 Total Overlapping Tax and Assessment Debt 299,442,304
Direct and Overlapping Fund Debt
Ventura County General Fund Obligations 258,512,943 14.081 36,401,208 Ventura County Superintendent of Schools Certificates 6,275,000 14.081 883,583 City of Simi Valley General Fund Obligations 54,971,236 100.000 54,971,236 Total Direct and Overlapping General Fund Debt 92,256,027 City Direct Debt
City of Simi Valley 2014A Lease Revenue Refunding Bond 13,078,140 100.000 13,078,140 City of Simi Valley 2016 New Clean Renewable Energy Bond 6,310,589 100.000 6,310,589 City of Simi Valley 2016 Tax Exempt Energy Bond 488,412 100.000 488,412 City of Simi Valley 2017 Tax Exempt Bond 3,506,291 100.000 3,506,291 City of Simi Valley 2018 Tax Equipment Lease 4,047,536 100.000 4,047,536 Right-of-use Leases 2,468,172 100.000 2,468,172
Right-of-use SBITAs 311,241 100.000 311,241
Total direct debt 30,210,381
Total direct and overlapping debt 421,908,712$
NOTES:
There is no general bonded outstanding debt in the governmental funds.
1. For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. The process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
SOURCES:
City of Simi Valley
California Municipal Statisitcs, Inc.
179
232
2016 2017 2018 2019 2020
Debt limit 622,348,000$ 649,611,401$ 678,892,462$ 708,668,102$ 863,434,490$ Total net debt
applicable to limit - - - - - Legal debt margin 622,348,000$ 649,611,401$ 678,892,462$ 708,668,102$ 863,434,490$ Total net debt applicable
to the limit as a
percentage of debt limit 0% 0% 0% 0% 0%
(Continued)
NOTE:
LAST TEN FISCAL YEARS
1. California Government Code Section 43605 sets the debt limit at 15%. The code section was enacted when assessed valuations were based on 25% of full market value. This has since changed to 100% of full market value. Thus, the limit shown is 3.75%
(one-fourth the limit of 15%).
Fiscal Year
CITY OF SIMI VALLEY
LEGAL DEBT MARGIN INFORMATION
180
233
2021 2022 2023 2024 2025
769,737,484$ 799,742,442$ 863,434,490$ 913,385,898$ 951,468,116$ Debt limit Total net debt
- - - - - applicable to limit 769,737,484$ 799,742,442$ 863,434,490$ 913,385,898$ 951,468,116$ 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 2025
Assessed value 25,372,483,080 $
Debt limit (3.75% of assessed value)1 951,468,116
Less: General obligation bonds -
Legal debt margin 951,468,116$
Fiscal Year
CITY OF SIMI VALLEY
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
181
234
Personal Per Capita Public
Fiscal Income Personal Median School Unemployment
Year Population (in thousands) Income Age Enrollment Rate 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% 2025 122,617 6,625,470 54,034 42.3 15,367 4.8%
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
182
235
CITY OF SIMI VALLEY
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Employed Employed
Employer Employees Rank Labor Force Emplo yees Rank Labor Force Simi Valley Unified School District 2,087 1 3.03% 1,993 1 2.88% Adventist Health, Simi Valley 857 2 1.24% 733 2 1.06% Aerovironment, Inc. 722 3 1.05% 500 5 0.72%
Parker Meggitt, Inc. 695 4 1.01% 525 3 0.76% City of Simi Valley 500 5 0.73% 503 4 0.73%
Rancho Simi Parks & Recreation District 439 6 0.64% 477 6 0.69% Vallarta Supermarkets #35 185 7 0.27%
The Home Depot 179 8 0.26%
Walmart 173 9 0.25% 475 7 0.69%
Poly Tainer, Inc. 169 10 0.25%
Albertson's (includes Vons Pavilions) 420 8 0.61%
Milgard Windows and Doors 340 9 0.49%
Costco 242 10 0.35%
Total 6,006 8.73% 6,208 8.98%
2025 2016
SOURCES:
HdL
State of California, Employment Development Department
183
236
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General government 53 58 56 54 60 60 59 59 62 60
Community services 27 24 27 27 20 20 19 19 22 23
Planning 36 36 33 30 32 31 37 38 32 30
Public ways and facilities 87 87 87 83 80 78 83 86 83 85 Public safety
Sworn police personnel 121 121 115 118 123 112 114 120 122 116 Civilians 49 50 53 47 44 45 54 48 59 55
Sanitation 47 54 53 52 53 49 44 41 52 50
W a t e r w o r k s D i s t r i c t N o . 8 4 54 14 04 13 53 23 83 83 74 2 Transit 38 42 40 40 38 37 36 37 40 39
Total 503 513 504 492 485 464 484 486 509 500
NOTE:
1. Employee totals by function as of June 30. Totals do not include temporary employees or part-time crossing guards.
Fiscal Year1
CITY OF SIMI VALLEY
CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
184
237
CITY OF SIMI VALLEY
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General government
Business tax applications and renewals 9,709 9,437 9,028 9,403 7,675 7,223 8,092 8,225 7,537 8,770 Business tax receipts issued 9,480 8,366 7,922 7,315 7,396 7,779 8,912 8,525 7,610 8,603 Business tax revenues ($) 1,786,153 1,787,587 1,967,065 2,106,3 44 2,112,049 2,190,665 2,343,050 2,436,816 2,636,053 2,772,298 Community services
Cultural arts center events 378 392 369 370 357 - 176 338 396 340 Cultural arts center attendance 39,473 36, 248 38,913 33,564 26,675 - 9,151 26,620 30,388 31,865 Senior center attendance 160,805 153,803 166,441 172,079 145,505 40,975 62,745 83,896 103,327 102,841 Library card holders 33,830 39,135 45,159 46,406 38,423 34,382 33,157 34,959 36,448 31,666 Library total collection 158,596 170,848 164,748 161,450 136,071 140,972 127,248 122,962 117,132 109,646 Library total circulation 333,068 285,089 299,182 317,085 333,683 247,680 362,358 412,936 396,409 390,342 Planning
Building permits 2,200 2,500 2,600 2,750 2,500 2,950 1,724 1,307 1,327 1,339 Plumbing, mechanical, and electrical permits 2,950 3,400 3,640 3,750 3,200 3,450 3,918 4,807 4,614 3,401 Permit valuation ($ in thousands)1 66,800 76,800 71,300 76,740 63,500 65,750 216,662 94,948 93,920 92,570 Public safety
Arrests 3,377 2,939 3,134 2,964 2,381 1,762 1,473 1,436 1,663 1,578 Enforcement citations 8,300 6,936 8,988 8,230 4,703 2,454 3,340 3,809 4,392 5,396 Public ways and facilities
Street resurfacing (miles) 3.73 6.38 10.12 23.77 10.12 1.40 6.12 11.60 9.50 10.63 Sanitation
Wastewater customers 36,769 37,079 36,949 35,773 37,395 36,874 37,571 37,948 37,730 37,470 Avera
ge dry weather flow (million gallons per day) 7.80 7.70 7.92 7.78 7.78 7.70 7.60 7.70 7.80 7.50 Waterworks District No. 8
Customers2 25,664 25 ,558 25 ,433 25 ,622 25 ,251 25 ,548 25 ,666 25 ,867 25 ,869 25 ,915 Water delivered (million gallons) 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 4,252.0 Transit
Fixed-route revenue miles 404,857 380,354 378,284 376,506 387,056 409,044 407,112 401,305 402,067 394,637 Fixed-route passengers 333,619 364,810 251,917 266,718 181,098 121,642 131,392 161,404 190,162 190,692 Fixed-route revenue hours 25,346 26,904 27,340 26,727 25,282 26,788 29,816 26,993 26,808 25,310 Paratransit revenue miles 158,604 160,043 162,551 159,508 110,289 71,396 84,476 127,077 136,284 134,796 Paratransit passengers 43,485 45,009 43,406 50,134 29,133 22,394 33,238 45,432 49,085 42,278 Paratransit revenue hours 17,356 17,832 17,709 17,226 11,730 5,790 6,620 8,932 9,876 9,958 NOTES:
1. Increase in permit valuation in 2022 is due to a change in the calculation methodology resulting from the City's ERP system upgrade.
2. Balance of community, approximately 14,103 customers, serviced by Golden State Water, Co. during fiscal year 2025.
Fiscal Year
SOURCES:
City of Simi Valley
Golden State Water Co.
185
238
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
Public safety
P o l i c e s t a t i o n s 1111111111
Fleet size 99 101 103 103 104 98 98 99 99 104
Public ways and facilities
Streets (miles) 336.41 337.57 337.57 337.57 337.57 337.57 337.73 337.73 337.73 337.73 Streetlights 8,223 8,243 8,268 8,479 8,382 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)1 374 374 374 374 380 380 380 380 380 377 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) 380 380 337 345 345 345 345 331 331 331 Fire hydrants 2,844 2,844 2,875 2,850 2,874 2,853 2,853 2,854 2,856 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
B u s e s - 4 0 f o o t 8888885553
Buses - 35 foot 3 3 3 3 3 3 6 6 6 8
Paratransit vehicles 11 12 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. Change in sewerlines (miles) reflects updates in GIS accuracy.
Fiscal Year
CITY OF SIMI VALLEY
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
SOURCE:
City of Simi Valley
186
239