Agenda packet — Thousand Oaks City Council, January 10, 2023 (part 2 of 3)

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9 Community Outreach: Staff will develop and implement a public outreach plan for the projects, with particular focus on the businesses located adjacent to the projects, as well as the general public. Various communications tools and strategies, including community meetings (if needed), press releases, websites update, and social media posts will be utilized to inform the public and receive feedback. A dedicated project website will be created where updated project information will continue to be provided throughout the construction phase of the project.

The projects meet City Council’s Top Ten Priorities #5, “Public Safety” and #9, “Public Works Infrastructure Investments.”
CIP PROJECT PRIORITY (as outlined in FY 2021-22 and FY 2022-23 CIP Program Budget)
Priority Three – Nice to do and would contribute to quality of life, but not essential.

COUNCIL GOAL COMPLIANCE:

Meets the following City Council goals:

C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.

F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.

PREPARED BY: Masoud Razavi, Engineering Associate
Attachments:

Attachment #1 – Westlake Blvd. Vicinity and Location Maps Attachment #2 – Erbes Rd. Vicinity and Location Maps
Attachment #3 – Westlake Blvd. Professional Services Agreement with NextGen Engineering, Inc.

Attachment #4 – Erbes Rd. Professional Services Agreement with NextGen Engineering, Inc.

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Project Location
Project Location
Westlake Blvd. Flood Mitigation (CI 5590)
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Erbes Blvd. Flood Mitigation (CI 5655)ATTACHMENT #2
Item No.7H

ATTACHMENT #3
Project Name: Westlake Blvd.

Flood Mitigation (CI 5590)

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF THOUSAND OAKS
AND
NEXTGEN ENGINEERING, INC.

THIS AGREEMENT is made and entered into this 10th day of January 2023, by and between CITY OF THOUSAND OAKS, a municipal corporation ("City"), and NEXTGEN ENGINEERING, INC. ("Consultant").

City and Consultant agree as follows:

1. RETENTION OF CONSULTANT
City hereby retains Consultant, and Consultant hereby accepts such engagement, to perform the services described in Section 2. Consultant warrants it has the qualifications, experience, and facilities to properly and timely perform said services.

2. DESCRIPTION OF SERVICES
The services to be performed by Consultant are as follows:

Professional services in conjunction with the design, surveying, geotechnical investigations, Plans, Specifications and Estimate (PS&E), and bid-phase services of Westlake Boulevard Flood Mitigation project. Services and deliverables shall generally include meetings, technical memorandums, Plans and specifications, and as are more particularly set forth in the Scope of Work, attached as Exhibit “A,” which is incorporated herein by reference.

3. COMPENSATION AND PAYMENT
(a)Maximum and Rate. The total compensation payable to Consultant by City for the services under this Agreement SHALL NOT EXCEED the sum of $170,616 (herein "not to exceed amount"), and shall be earned as the work progresses on the following basis:

Hourly, at the hourly rates and with reimbursement to Consultant for those expenses set forth in Consultant's Schedule of Fees, attached as Exhibit "B" and incorporated herein. The rates and expenses set forth in that exhibit shall be binding upon Consultant until June 30, 2023, after which any change in the rates and expenses must be approved in writing by City's Project Manager (City is to be given 60 days’ notice of any rate increase request), provided the not to exceed amount is the total compensation due Consultant for all work described under this Agreement.

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(b)Prevailing Wage. Consultant may be obligated to pay prevailing wages under the California Labor Code. Consultant agrees to indemnify, defend and hold City harmless from any claim that prevailing wages should have been paid, and shall be liable for the payment of the same and any penalties thereon. It is the responsibility of Consultant to be familiar with the California Labor Code as it relates to this Agreement, and failure or neglect of Consultant to understand the California Labor Code shall in no way relieve Consultant from any obligations. (c)Department of Industrial Relations Requirements. Consultant’s work may be subject to the payment of not less than prevailing wages under California Labor Code Sections 1720 and 1770 et seq. and subject to compliance monitoring and enforcement by the Department of Industrial Relations. No Consultant or subcontractor may be awarded a contract for public work unless registered with the Department of Industrial Relations, pursuant to California Labor Code Section 1725.5. Consultant’s DIR registration number is 1000994526. (d)Payment. Consultant shall provide City with written verification of the actual compensation earned, in a form satisfactory to City's Project Manager.

Invoices shall be made no more frequently than on a monthly basis, and describe the work performed (including, if applicable, a list of hours worked by personnel classification). All payments shall be made within 30 days after City’s approval of the invoice.
(e)Extra Services. Additional work not reasonably encompassed by the Scope of Services described in Section 2 may be agreed upon only by execution of a written Amendment to this Agreement. No liability or right to compensation for extra services shall exist without such Amendment. Unless otherwise stated in the Amendment, applicable rates for extra services shall be at the rates set forth in Exhibit “B.”

4. CITY PROJECT MANAGER
The services to be performed by Consultant shall be accomplished under the general direction of, and coordinate with, City's "Project Manager", as that staff person is designated by City from time to time, and who presently is Masoud Razavi.

5. TERM, PROGRESS AND COMPLETION
The term of this Agreement is from the date first written above to June 30, 2024, unless term of this Agreement is extended or the Agreement is terminated as provided for herein.

City Manager or his or her designee shall have the authority to extend the term of this Agreement in writing no more than 3 separate times, for a period of 1 year each. Extensions of time shall be memorialized by execution of a written amendment.

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Consultant shall not commence work on the services to be performed under the Agreement until (i) Consultant furnishes proof of insurance as required by paragraph 9 below, and (ii) City’s Project Manager gives written authorization to proceed with the work. All services shall be completed within the term of this Agreement.”

6. OWNERSHIP OF DOCUMENTS
All drawings, designs, data, photographs, reports and other documentation (other than Consultant's drafts, notes and internal memorandum), including duplication of same prepared by Consultant in the performance of these services, are the property of City. City shall be entitled to immediate possession of the same upon completion of the work under this Agreement, or at any earlier or later time when requested by City. City agrees to hold Consultant harmless from all damages, claims, expenses, and losses arising out of any reuse of the plans, specifications, graphics, brochures, reports, and other documentation for purposes other than those described in this Agreement, unless written authorization of Consultant is first obtained.

7. PERSONAL SERVICES/NO ASSIGNMENT/SUBCONTRACTS
This Agreement is for professional services, which are personal to City.

William O’Brien, Principal Engineer is deemed to be especially experienced and is a key member of Consultant's firm, and shall be directly involved in performing, supervising or assisting in the performance of this work. This key person shall communicate with, and periodically report to, City on the progress of the work.

Should said individual be removed from assisting in this contracted work for any reason, City may terminate this Agreement.

This Agreement is not assignable by Consultant without City's prior written consent.

The following portions of the work described in this Agreement may be subcontracted out to other parties by Consultant: Surveying (Vertex Survey, Inc.), Geotechnical investigation (Heathcote Geotechnical), Environmental Documents and tree reports (Pax Environmental), Structural Engineering (David C. Weiss, Structural Engineer & Assoc.).

8. HOLD HARMLESS AND INDEMNITY
(a) Hold Harmless for Consultant's Damages. Consultant holds City, its elected officials, officers, agents, employees and volunteers, harmless from all of Consultant's claims, demands, lawsuits, judgments, damages, losses, injuries or liability to Consultant, to Consultant's employees, to Consultant’s contractors or Item No.7H

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subcontractors, or to the owners of Consultant's firm, which damages, losses, injuries or liability occur during the work or services required under this Agreement, or performance of any activity or work required under this Agreement. (b) Defense and Indemnity of Third Party Claims/Liability. To the maximum extent allowed by law, Consultant shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, agents, employees and volunteers from and against all liability including, but not limited to, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Consultant’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in the Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of City. Should conflict of interest principles preclude a single legal counsel from representing both City and Consultant, or should City otherwise find Consultant’s legal counsel unacceptable, then Consultant shall reimburse City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Consultant shall promptly pay City any final judgment rendered against City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of Consultant’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

Consultant’s obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of City under any provision of this Agreement, Consultant shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Consultant will be for that entire portion or percentage of liability not attributable to the active negligence of City.
(c) Nonwaiver. City does not waive, nor shall be deemed to have waived, any indemnity, defense or hold harmless rights under this section because of the acceptance by City, or the deposit with City, of any insurance certificates or policies described in Section 9.

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9. MINIMUM SCOPE AND LIMIT OF INSURANCE
Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide, and maintain at its own expense during the term of this Agreement, and any extension thereof, policies of insurance of the type and amounts described below and in a form that is satisfactory to City.

Coverage shall be at least as broad as:
(a).Commercial General Liability (CGL): Consultant shall, at Consultant's sole cost and expense and throughout the term of this Agreement, and any extensions thereof, carry General Liability insurance coverage at least as broad as Insurance Services form CG 00 01 in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate for bodily injury, personal and advertising injury and property damage, including without limitation, blanket contractual liability.
(b).Automobile Liability: Consultant shall, at Consultant's sole cost and expense and throughout the term of this Agreement, and any extensions thereof, carry Automobile Liability insurance coverage at least as broad as Insurance Services form CA 00 01 or the exact equivalent covering bodily injury and property damage for all activities of Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage of any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
(c).Worker’s Compensation: Consultant shall, at Consultant's sole cost and expense and throughout the term of this Agreement, and any extensions thereof, carry workers’ compensation statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident for bodily injury or disease. Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its elected officials, officers, agents, employees and volunteers for all work performed by Consultant, its employees, agents and subcontractors.
(d).Professional Errors and Omissions Insurance: Consultant shall, at Consultant’s sole cost and expense throughout the term of this Agreement, and any extensions thereof, carry professional errors and omissions coverage of no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate, with tail coverage for an extended reporting period of three (3) years.

If Consultant maintains higher limits than the minimum shown above, City requires and shall be entitled to coverage for the higher limits maintained by Consultant.

Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

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Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
City, its elected officials, officers, agents, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10 10 01 and CG 20 37 10 01 if a later edition is used). The provision shall also apply to any excess liability policies. In addition, Consultant shall ensure that the automobile liability policy contains a provision covering City as an additional insured, and shall obtain an endorsement to that effect if it does not.

Excess Insurance
The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Umbrella or excess policies shall provide coverage at least as broad as specified for underlying coverages and covering those insured in the underlying policies. Coverage shall be “pay on behalf” with defense costs payable in addition to policy limits. There shall be no cross-liability exclusion of claims or suits by one insured against the other. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and no-contributory basis for the benefit of City as required in written contract or agreement before City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

City’s Rights of Enforcement
In the event any policy of insurance required under this Agreement does not comply with these specifications or is cancelled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant’s payments. In the alternative, City may cancel this Agreement.

City’s Right to Revise Specifications
City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant ninety (90) days Item No.7H

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advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation.

Primary and Non-Contributory Coverage
For any claims related to this Agreement, Consultant's insurance coverage shall be primary insurance as respects City, its elected officials, officers, agents, employees and volunteers. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be excess of Consultant's insurance and shall not contribute with it and shall be at least as broad as CG 20 01 04 13.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to City.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by City. City may require Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers
All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with a current A.M. Best’s rating of no less than A:VII, (unless otherwise acceptable to City).

Waiver of Subrogation
All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its elected officials, officers, agents, employees or volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications - to waive their right of recovery prior to a loss. Consultant hereby waives his own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. Copies of these waivers shall be submitted to City prior to commencement of work.

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Claims Made Policies
If any of the required policies provided coverage on a claims-made basis:
(a). The Retroactive Date must be shown and must be before the date of the Agreement or the beginning of contract work.
(b). Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the work required under this Agreement.
(c). If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Agreement effective date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.

Verification of Coverage
Consultant shall provide City with copies of certificates (on City certificate form or an Accord form as modified per City direction) for all policies, with the appropriate named additional insured coverage and an endorsement that they are not subject to cancellation without 30 days prior written notice to City. All certificates and endorsements are to be received and approved by City before work commences.

However, failure to obtain the required documents prior to the work beginning shall not waive Consultant's obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

10. RELATION OF THE PARTIES
a.Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or Item No.7H

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any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. b.No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.

11. CORRECTIONS
In addition to the above indemnification obligations, Consultant shall correct, at its expense, all errors in the work that may be disclosed during City's review of Consultant's report or plans. Should Consultant fail to make such correction in a reasonably timely manner, such correction shall be made by City, and the cost thereof shall be charged to Consultant or withheld from any funds due to Consultant hereunder.

12. TERMINATION BY CITY
City may terminate without cause any or all of the services agreed to be performed under this Agreement upon 30 calendar days’ written notice. If termination is for cause, no advance notice need be given. In the event of termination, Consultant shall have the right and obligation to immediately assemble work in progress for the purpose of closing out the job. All compensation for actual work performed and charges outstanding at the time of termination shall be payable by City to Consultant within 30 days following submission of a final statement by Consultant unless termination is for cause. In such event, Consultant shall be compensated only to the extent required by law.

13. ACCEPTANCE OF FINAL PAYMENT CONSTITUTES RELEASE
The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished, or relating to Consultant's work or services. Acceptance of payment shall be any negotiation of City's check or the failure to make a written extra compensation claim within 10 calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, subcontractors, agents and consultants for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, subcontractors, agents and consultants.

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14. AUDIT OF RECORDS
Consultant shall maintain, in accordance with generally accepted accounting principles, complete and accurate records of all activities and operations relating to this Agreement. Records, including but not limited to, timecards, employment records, work progress reports, reimbursements, invoices, project records, proprietary data and information, as well as licensed software and any electronic records shall be kept for a period of four years beyond the termination of this Agreement. Consultant agrees that City, or its authorized representative, shall have the right to examine, audit, excerpt, copy or transcribe any of the records pertaining to this Agreement at any time during normal business hours. Consultant shall reimburse City for all reasonable costs of the audit, including travel time and auditor costs, should such audit reveal an overcharge of five (5) percent or more. Any overcharge will be considered a breach of this Agreement and could be cause for termination. The obligations of this section shall be explicitly included in any subcontracts or other agreements entered into by Consultant with respect to this Agreement.

15. WAIVER; REMEDIES CUMULATIVE
Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such party's right to demand strict compliance by such other party in the future. No waiver by a party of a default or breach of the other party shall be effective or binding upon such party unless made in writing by such party, and no such waiver shall be implied from any omissions by a party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, or cover any other period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a party under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy.

16. CONFLICT OF INTEREST
Consultant is unaware of any City employee or official that has a financial interest in Consultant's business. During the term of this Agreement and/or as a result of being awarded this Agreement, Consultant shall not offer, encourage or accept any financial interest in Consultant's business by any City employee or official.

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17. CONSTRUCTION OF LANGUAGE OF AGREEMENT
The provisions of this Agreement shall be construed as a whole according to its common meaning of purpose of providing a public benefit and not strictly for or against any party. It shall be construed consistent with the provisions hereof, in order to achieve the objectives and purposes of the parties. Wherever required by the context, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine or neutral genders or vice versa.

18. MITIGATION OF DAMAGES
In all situations arising out of this Agreement, the parties shall attempt to avoid and minimize the damages resulting from the conduct of the other party.

19. GOVERNING LAW
This Agreement, and the rights and obligations of the parties, shall be governed and interpreted in accordance with the laws of the State of California.

Should litigation occur, venue shall be in Superior Court of Ventura County.

20. TAXPAYER IDENTIFICATION NUMBER
Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W-9, as most recently issued by the Internal Revenue Service.

21. NON-APPROPRIATION OF FUNDS
Payments due and payable to Consultant for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of City funds. In the event City has not appropriated sufficient funds for payment of Consultant’s services beyond the current fiscal year, this Agreement shall cover only those costs incurred up to the conclusion of the current fiscal year.

22. MODIFICATION/AMENDMENT OF AGREEMENT
Any amendment, modification, or variation of the terms or tasks of this Agreement shall be in writing and shall be effective only upon the mutual written approval of the City and Consultant.

23. USE OF THE TERM “CITY”
Reference to “City” in this Agreement includes the City Manager or any authorized representative acting on behalf of City.

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24. PERMITS AND LICENSES
Consultant, at its sole expense, shall obtain and maintain during the term of this Agreement all appropriate permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.

25. CAPTIONS
The captions or headings in this Agreement are for convenience only and in no other way define, limit or describe the scope or intent of any provision or section of the Agreement.

26. AUTHORIZATION
Each party has expressly authorized the execution of this Agreement on its behalf and binds said party and its respective administrators, officers, directors, shareholders, divisions, subsidiaries, agents, employees, successors, assigns, principals, partners, joint venturers, insurance carriers and any others who may claim through it to this Agreement.

27. ENTIRE AGREEMENT BETWEEN PARTIES
Except for Consultant's proposals and submitted representations for obtaining this Agreement, this Agreement supersedes any other agreements, either oral or in writing, between the parties hereto with respect to the rendering of services and contains all of the covenants and agreements between the parties with respect to said services.

28. PARTIAL INVALIDITY
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

29. FEDERAL REQUIREMENTS
Consultant acknowledges that federal funds are being used for this Agreement and that Consultant is required to comply with all material obligations required by federal or state law in reporting work completed with said funds, and certifies that Consultant and its subcontractors are eligible to participate in the Federally funded contract, pursuant to the “System for Award Management (SAM)” database, as maintained by the General Services Administration and required by 2 CFR, part 180.

Consultant shall also comply with the federal Americans with Disability Act, Public Law 101-336, and observe the disability discrimination prohibitions of such laws in the performance of the work required under this Agreement.

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30. NOTICES
Any notice required to be given hereunder shall be deemed to have been given by depositing said notice in the United States mail, postage prepaid, and addressed as follows:

TO CITY: Attention: Masoud Razavi
Public Works Department
City of Thousand Oaks
[email protected]
TO CONSULTANT: William O’Brien, PE
NextGen Engineering, Inc.
[email protected]

31. SIGNATURES
(a)Counterparts. This Agreement may be executed in two or more counterparts, each of which together shall be deemed an original, but all of which together shall constitute one and the same instrument.
(b)Scanned Signatures. In the event that any signature is delivered by facsimile transmission or submitted electronically as a scanned image (i.e. files with .pdf, .tiff or .jpeg extensions), such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or scanned signature page were an original thereof.
(c)Digital/Electronic Signatures. This Agreement may be executed through the use of digital or electronic signatures provided they meet the requirements of the Electronic Signatures in Global and National Commerce (ESIGN) Act and the California Uniform Electronic Transactions Act (UETA) and Item No.7H

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are produced using a City-approved method. The presence of an electronic signature on this document shall be construed as the parties’ consent to do business electronically.

In concurrence and witness whereof, this Agreement has been executed by the parties effective on the date and year first above written.

NEXTGEN ENGINEERING, INC.

William O’Brien, President

Richard Seltzer, Business Manager

CITY OF THOUSAND OAKS
Kevin McNamee, Mayor
ATTEST:

Laura B. Maguire, City Clerk
APPROVED AS TO ADMINISTRATION:

Andrew P. Powers, City Manager
APPROVED BY DEPARTMENT HEAD:

Clifford G. Finley, Public Works Director
APPROVED AS TO FORM:

Office of the City Attorney
Tracy Friedl, Assistant City Attorney
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EXHIBIT A
WESTLAKE BLVD. FLOOD MITIGATION - CI 5590

SCOPE OF WORK
Task 1 – Work Plan and Schedule
CONSULTANT shall prepare a work plan and project schedule with milestones, major activities, and deliverables for City review. Based on the City’s comments, CONSULTANT shall update the work plan and schedule.

Deliverables:
•Work Plan and Project Schedule
Task 2 – Kick-Off Meeting
CONSULTANT shall meet with City staff to discuss project scope, purpose, requirements, and details. With the City's assistance, CONSULTANT shall develop a Project Development Team (PDT) for the project so the key stakeholders can provide input and recommendations and be informed of the project developments and decisions.

Task 3 – Progress Meetings
CONSULTANT shall schedule monthly progress meetings with the City, prepare agendas in advance of meeting, and provide minutes of meetings summarizing key items discussed and any action items.

Task 4 – Data Collection
CONSULTANT shall collect and review available record data from the City. Data includes State, County, City and other record/documents, existing street, storm drain, wet and dry utility plans, survey centerline and property monument data, topographic maps, and drainage and geotechnical reports.

Task 5 – Surveying
CONSULTANT shall perform field surveying and mapping in support of the flood mitigation improvements.

CONSULTANT shall establish new control on a local basis of bearings and tie to the NAVD88 vertical datum based on local benchmarks. The survey mapping shall include the following items: hardscape, ground/finished surface, structures, walls, fences, trees, signage, striping and any observable utilities.

CONSULTANT shall prepare a topographic/utility base map in AutoCAD at a scale of 1”=20’ with 1’ contour intervals at 50’ cross-section intervals.

CONSULTANT shall perform topographic survey of the site and extending beyond Item No.7H

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the areas of propsed improvement to include contributing drainage, identifying all existing private and public utilities storm drains, inlets and natural flowlines with elevations to exisiting inverts.

CONSULTANT shall retrace the centerline and right of way boundaries along the proposed improvements and shall be shown on the map based upon field located monuments and record map information.

Deliverables:
•Topographic Mapping and R/W retracement
Task 6 – Utilities Notifications
CONSULTANT shall notify the utility providers (Provided from underground service alert within the project limits) via letter of the impending project and request atlas sheets or record drawings of exisiting utilities and appurtenances within the project limits.

Letters shall be issued on City letterhead by the CONSULTANT as appropriate.

CONSULTANT shall map the existing utilities onto base line work and provide reduced-size plans to utility agencies requesting review for conflicts and incorrect mapping of utility atlas information.

CONSULTANT shall coordinate with the agencies to confirm design requirements and approval process. For avoidable utility confilcts, CONSULTANT shal prepare utility relocation notices and project plans highlighting the conflict. CONSULTANT shall work with the affected agency to show the proposed utiltiy relocation on the improvement plans.

Deliverables:
•Utility Letters
•Utility Matrix
•Utility base map
Task 7 – Geotechnical Investigation
CONSULTANT shall conduct geotechnical investigation in support of this project.

The scope of services will consist of the following tasks:

Subtask 7A - Initiation and Data Review
Consult with the City to initiate the project, collect and review background information from the City that may be pertinent to the geotechnical evaluation, request a base map showing the site topography, coordinate site access, and review the scope and schedule for geotechnical services. Prepare a geotechnical exploration plan for review with project team. Attend kick off meeting.

Item No.7H

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Subtask 7B - Permits, Utility Coordination, Health and Safety CONSULTANT shall submit the geotechnical exploration and traffic control plans to the City of Thousand Oaks with the application and obtain an encroachment permit for borings within the City right-of-way. City permit fees will be waived. Prepare a health and safety plan for the field work, visit the site to mark the locations of the planned explorations, and notify Underground Services Alert (USA) to contact utility companies to review the locations and mark any buried utilities at the site, and coordinate the field exploration program and site access with the project team, City and subcontractors.

Subtask 7C - Subsurface Exploration Program
CONSULTANT shall perform a field exploration program consisting of drilling six (6) geotechnical borings to the depth of 20 feet. CONSULTANT shall provide a log of soils in the borings for engineering properties.

Subtask 7D – Field Infiltration Testing
CONSULTANT shall perform a field exploration program consisting of three (3) Perculation tests to depth of 4 feet within the project limits.

CONSULTANT shall perform testing in general accordance with the latest version of the Ventura County Technical Guidance Manual for field percolation testing. The existing pavement structural section will be measured where borings are in pavement. Traffic control shall be provided as needed during field infiltration testing.

Subtask 7E - Laboratory Testing
CONSULTANT shall perform laboratory tests consisting of tests for unit weight and moisture content, soil classification, expansion index, strength, compaction, or corrosivity of selected samples recovered from the borings.

CONSULTANT shall perform maximum density and optimum moisture content of soils on site for grading pruposes as well as shear and consolidation testings.

The actual types and numbers of tests shall be assigned based on the results of the drilling.

Subtask 7F - Draft Geotechnical Report
CONSULTANT shall summarize the data collected, perform geotechnical analysis, and prepare a Geotechnical Report for the design of the project. A draft of the report shall be prepared and issued in portable document file (PDF) format for review by the City. The report shall provide logs of the explorations, laboratory test results, and a map showing the locations of the explorations.

The report shall provide a discussion of the following:
•Geologic setting
•Soil and groundwater conditions encountered
•Measured field infiltration rates and recommended correction factors •Potential for geologic hazards to impact the project
•Soil corrosion potential
Item No.7H

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•Recommended parameters for design of shallow foundations and/or retaining walls.
•Construction considerations regarding:
•Excavation characteristics of the soil and rock encountered •Suitability of excavated onsite soil for reuse as compacted fill or structure backfill
•Temporary slopes, shoring, and/or dewatering
•Requirements for temporary cuts or shoring adjacent to existing roadways, structures, or property
•Suggested material specifications
Subtask 07G - Final Geotechnical Report
CONSULTANT shall issue the final Geotechnical Report after incorporating comments and input from the design team. One PDF copy of the final report shall be submitted to the City.

Deliverables:
•Draft and Final Geotechnical Report
Task 8 – Tree Report
CONSULTANT shall prepare the tree report. An oak/protected tree survey shall be conducted under the direction of an ISA-certified arborist to identify oak trees and landmark trees protected under City ordinances. Data collected shall include species, photograph, trunk diameter at breast height, location relative to proposed improvements, health information and aesthetic rating. The tree report shall include a map of tree locations, tree photographs, tree data forms and recommendations to avoid or minimize impacts to protected trees.

Deliverables:
•Draft and Final Tree Report
Task 9 – Hydrology/Hydraulics
CONSULTANT shall perform hydrology model of VCRAT ver. 2.64 to estimate the design flows. CONSULTANT shall use the City’s master drainage plans and 2017 Hydrology Manual of Ventura County for analysis and evaluation of the results.

CONSULTANT shall perform hydraulic study to identify viable alternatives to meet the main project obective, diverting excess storm water and debris from the roadways.

Deliverables:
•Hydrology & Hydraulics Reports
Task 10 – Easements
CONSULTANT shall review and assess all existing easements that may impact Item No.7H

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construction.

CONSULTANT shall prepare up to two (2) legal descriptions and exhibits for new easements and submit to the City for review and recordation.

Deliverables:
•Easement Legal Descriptions (2)
Task 11 – Preliminary Design Report (PDR)
CONSULTANT shall prepare conceptual plans at 1” = 20’ scale, utilizing City templates, for the proposed flood mitigation along with a detail construction estimate, for City staff to review and comment.

CONSULTANT shall contact Utility Owners and coordinate relocations if necessary for the proposed design.

Deliverables:
•Hydrology & Hydraulic studies
•30% Concept Plans and Construction Cost Estimate
•Summary of utility survey and potential utility relocations Task 12 – Environmental Documents (CEQA)
CONSULTANT shall prepare required documents to acquire a CEQA environmental clearance.

Subtask 12A - Initial Environmental Review
Following review of all existing environmental documentation prepared for the project and completion of the 30 percent design plans for proposed improvements, CONSULTANT shall assess potential impacts using the Initial Study checklist provided in the State CEQA Guidelines and identify the appropriate environmental document. CONSULTANT shall submit the Initial Study checklist to the City for review. The CONSULTANT shall attend a project team meeting to discuss environmental issues and determine if the project qualifies for a categorical exemption from CEQA under Section 15301 (minor alteration of existing facilities) of the State CEQA Guidelines. If the project team agrees a categorical exemption is appropriate, CONSULTANT shall prepare a Notice of Exemption for signature by the City.

Subtask 12B - Bird Survey
CONSULTANT shall prepare a bird survey within City’s Right-of-Way (ROW) in accordance with CEQA, and City requirements.

Deliverables:
•Initial Study Checklist
•Bird Survey
Item No.7H

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Task 13 – Plans, Specification and Estimate (PS&E)
Consultant shall prepare final design packages including all engineering reports, plans, specifications, and the engineer’s construction estimate based on the approved preliminary design. Consultant shall prepare special conditions and technical specification, including the bid schedule and measurement and payments sections, using City’s master specifications templates. Consultant shall edit the City-furnished general conditions and other front-end documents.

Consultant shall submit PS&E at 60%, 90%, and 100% level of completions.

Each subsequent submittal shall incorporate comments from the previous level of submission. Consultant shall provide for design review meetings for each level of submission.

Drawings shall be delivered in AutoCAD 2018.dwg format with a layering standard capable of being translated into the City’s Cad and drafting standards using AutoCAD’s CAD standards translator. Specifications shall be provided in Microsoft Word.doc document format.

Deliverables:
•60 percent plans, specification, and estimate
•90 percent plans, specification, and estimate
•100 percent plans, specification, and estimate
•2 meetings at 3 hours each for each level of submission Task 14 – Bid Support Services
CONSULTANT shall provide on-going design support services during the bid/award phase.

Subtask 14-A – Prebid Meeting
CONSULTANT‘s Project Manager shall attend and conduct the pre-bid meeting and job walk.

Subtask 14-B – Response to RFI’s
CONSULTANT shall respond to Requests for Information/clarification by perspective bidder (allow for 5 RFI’s).

Subtask 14-C – Addenda
CONSULTANT shall prepare up to 3 bid addenda in response to bidder questions and possible changes to the contract documents. CONSULTANT shall also answer informally phone and email questions from bidders where no changes or clarification of bid documents are required. CONSULTANT shall provide an "Issue for Construction" plan set reflecting the addenda items.

Deliverables:
•Respond to five (5) Request for Information (RFI)
•Prepare up to three (3) addenda
•“Issue for Construction” plan set
Item No.7H

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Task 15 – Monument Preservation
SubTask 15A – Pre-Construction
CONSULTANT shall perform pre-construction survey prior to the commencement of construction activities and according to the following requirements for this task:
15-A–1.1 - Describe the type of survey instrument proposed for the surveying work.
15-A–1.2 - Research and analyze existing recorded property corner and center monuments and their associated ties within the zone of the project, and submit to the City a survey work plan and schedule for approval. 15-A–1.3 - The preconstruction survey work shall set a minimum of three (3) ties for each found existing recorded monument
15-A–1.4 - Provide the City with Pre-Construction Corner Record and sketch for each found monument and their associated ties with supporting documents.
15-A–1.5 - Patch all holes caused by removing asphalt for preconstruction survey activities with cold patch material.

Subtask 15B – Post-Construction
CONSULTANT shall perform post-construction survey after construction of the project is complete and according to the following requirements for this task:
15-B–1.1 - Describe the type of survey instrument proposed for the surveying work.
15-B–1.2 - Re-establish the monuments within the Project as directed by the City.
15-B–1.3 - Edit the field sketches, where needed, to identify the re- established monument.
15-B–1.4 - Provide the City with Post-Construction Corner Records and sketches for each set monument and their associated ties. 15-B–1.5 - File the Post-Construction Corner Record for each set monument with the County Surveyor Office after City approval. 15-B–1.6 - Provide the City with copies of all filed Corner Records.

Task 16 – Miscellaneous
CONSULTANT shall prepare exhibits for public meetings.

Subtask 16A - Reproductions
CONSULTANT shall prepare story map and renderings of the project for internal and public meetings.

Deliverables:
•Story map and Rendering Exhibits
Item No.7H

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EXHIBIT B

SCHEDULE OF FEES
Item No.7H

ATTACHMENT #4
Project Name: Erbes Rd. Flood
Mitigation (CI 5655)

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF THOUSAND OAKS
AND
NEXTGEN ENGINEERING, INC.

THIS AGREEMENT is made and entered into this 10th day of January 2023, by and between CITY OF THOUSAND OAKS, a municipal corporation ("City"), and NEXTGEN ENGINEERING, INC. ("Consultant").

City and Consultant agree as follows:

2. DESCRIPTION OF SERVICES
The services to be performed by Consultant are as follows:

Professional services in conjunction with the design, surveying, geotechnical investigations, Plans, Specifications and Estimate (PS&E), and bid-phase services of Erbes Road Flood Mitigation project. Services and deliverables shall generally include meetings, technical memorandums, Plans and specifications, and as are more particularly set forth in the Scope of Work, attached as Exhibit “A,” which is incorporated herein by reference.

3. COMPENSATION AND PAYMENT
(a)Maximum and Rate. The total compensation payable to Consultant by City for the services under this Agreement SHALL NOT EXCEED the sum of $138,240 (herein "not to exceed amount"), and shall be earned as the work progresses on the following basis:

Hourly, at the hourly rates and with reimbursement to Consultant for those expenses set forth in Consultant's Schedule of Fees, attached as Exhibit "B" and incorporated herein. The rates and expenses set forth in that exhibit shall be binding upon Consultant until June 30, 2023 after which any change in the rates and expenses must be approved in writing by City's Project Manager (City is to be given 60 days’ notice of any rate increase request), provided the not to exceed amount is the total compensation due Consultant for all work described under this Agreement.

Item No.7H

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(b)Prevailing Wage. Consultant may be obligated to pay prevailing wages under the California Labor Code. Consultant agrees to indemnify, defend and hold City harmless from any claim that prevailing wages should have been paid, and shall be liable for the payment of the same and any penalties thereon. It is the responsibility of Consultant to be familiar with the California Labor Code as it relates to this Agreement, and failure or neglect of Consultant to understand the California Labor Code shall in no way relieve Consultant from any obligations. (c)Department of Industrial Relations Requirements. Consultant’s work may be subject to the payment of not less than prevailing wages under California Labor Code Sections 1720 and 1770 et seq. and subject to compliance monitoring and enforcement by the Department of Industrial Relations. No Consultant or subcontractor may be awarded a contract for public work unless registered with the Department of Industrial Relations, pursuant to California Labor Code Section 1725.5. Consultant’s DIR registration number is 1000994526. (d)Payment. Consultant shall provide City with written verification of the actual compensation earned, in a form satisfactory to City's Project Manager.

Item No.7H

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Consultant shall not commence work on the services to be performed under the Agreement until (i) Consultant furnishes proof of insurance as required by paragraph 9 below, and (ii) City’s Project Manager gives written authorization to proceed with the work. All services shall be completed within the term of this Agreement.”

7. PERSONAL SERVICES/NO ASSIGNMENT/SUBCONTRACTS
This Agreement is for professional services, which are personal to City.

Should said individual be removed from assisting in this contracted work for any reason, City may terminate this Agreement.

This Agreement is not assignable by Consultant without City's prior written consent.

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subcontractors, or to the owners of Consultant's firm, which damages, losses, injuries or liability occur during the work or services required under this Agreement, or performance of any activity or work required under this Agreement. (b) Defense and Indemnity of Third Party Claims/Liability. To the maximum extent allowed by law, Consultant shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, agents, employees and volunteers from and against all liability including, but not limited to, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Consultant’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in the Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of City. Should conflict of interest principles preclude a single legal counsel from representing both City and Consultant, or should City otherwise find Consultant’s legal counsel unacceptable, then Consultant shall reimburse City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Consultant shall promptly pay City any final judgment rendered against City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of Consultant’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

Item No.7H

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If Consultant maintains higher limits than the minimum shown above, City requires and shall be entitled to coverage for the higher limits maintained by Consultant.

Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

Item No.7H

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Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

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advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to City.

Item No.7H

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Claims Made Policies
If any of the required policies provided coverage on a claims-made basis:
(a). The Retroactive Date must be shown and must be before the date of the Agreement or the beginning of contract work.
(b). Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the work required under this Agreement.
(c). If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Agreement effective date, Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of Agreement work.

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any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. b.No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.

Item No.7H

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Item No.7H

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18. MITIGATION OF DAMAGES
In all situations arising out of this Agreement, the parties shall attempt to avoid and minimize the damages resulting from the conduct of the other party.

19. GOVERNING LAW
This Agreement, and the rights and obligations of the parties, shall be governed and interpreted in accordance with the laws of the State of California.

Should litigation occur, venue shall be in Superior Court of Ventura County.

23. USE OF THE TERM “CITY”
Reference to “City” in this Agreement includes the City Manager or any authorized representative acting on behalf of City.

Item No.7H

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25. CAPTIONS
The captions or headings in this Agreement are for convenience only and in no other way define, limit or describe the scope or intent of any provision or section of the Agreement.

Item No.7H

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30. NOTICES
Any notice required to be given hereunder shall be deemed to have been given by depositing said notice in the United States mail, postage prepaid, and addressed as follows:

TO CITY: Attention: Masoud Razavi
Public Works Department
City of Thousand Oaks
[email protected]
TO CONSULTANT: William O’Brien, PE
NextGen Engineering, Inc.
[email protected]

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are produced using a City-approved method. The presence of an electronic signature on this document shall be construed as the parties’ consent to do business electronically.

In concurrence and witness whereof, this Agreement has been executed by the parties effective on the date and year first above written.

NEXTGEN ENGINEERING, INC.

William O’Brien, President

Richard Seltzer, Business Manager

CITY OF THOUSAND OAKS
Kevin McNamee, Mayor
ATTEST:

Laura B. Maguire, City Clerk
APPROVED AS TO ADMINISTRATION:

Andrew P. Powers, City Manager
APPROVED BY DEPARTMENT HEAD:

Clifford G. Finley, Public Works Director
APPROVED AS TO FORM:

Office of the City Attorney
Tracy Friedl, Assistant City Attorney
Item No.7H

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EXHIBIT A
Erbes Road FLOOD MITIGATION - CI 5655

Task 5 – Surveying
CONSULTANT shall perform field surveying and mapping in support of the flood mitigation improvements.

CONSULTANT shall prepare a topographic/utility base map in AutoCAD at a scale of 1”=20’ with 1’ contour intervals at 50’ cross-section intervals.

CONSULTANT shall perform topographic survey of the site and extending beyond Item No.7H

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the areas of propsed improvement to include contributing drainage, identifying all existing private and public utilities storm drains, inlets and natural flowlines with elevations to exisiting inverts.

CONSULTANT shall retrace the centerline and right of way boundaries along the proposed improvements and shall be shown on the map based upon field located monuments and record map information.

Letters shall be issued on City letterhead by the CONSULTANT as appropriate.

CONSULTANT shall map the existing utilities onto base line work and provide reduced-size plans to utility agencies requesting review for conflicts and incorrect mapping of utility atlas information.

Deliverables:
•Utility Letters
•Utility Matrix
•Utility base map
Task 7 – Geotechnical Investigation
CONSULTANT shall conduct geotechnical investigation in support of this project.

The scope of services will consist of the following tasks:

Item No.7H

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Subtask 7B - Permits, Utility Coordination, Health and Safety CONSULTANT shall submit the geotechnical exploration and traffic control plans to the City of Thousand Oaks with the application and obtain an encroachment permit for borings within the City right-of-way. City permit fees will be waived. Prepare a health and safety plan for the field work, visit the site to mark the locations of the planned explorations, and notify Underground Services Alert (USA) to contact utility companies to review the locations and mark any buried utilities at the site, and coordinate the field exploration program and site access with the project team, City and subcontractors.

Subtask 7D – Field Infiltration Testing
CONSULTANT shall perform a field exploration program consisting of three (3) Perculation tests to depth of 4 feet within the project limits.

CONSULTANT shall perform maximum density and optimum moisture content of soils on site for grading pruposes as well as shear and consolidation testings.

The actual types and numbers of tests shall be assigned based on the results of the drilling.

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•Recommended parameters for design of shallow foundations and/or retaining walls.
•Construction considerations regarding:
•Excavation characteristics of the soil and rock encountered •Suitability of excavated onsite soil for reuse as compacted fill or structure backfill
•Temporary slopes, shoring, and/or dewatering
•Requirements for temporary cuts or shoring adjacent to existing roadways, structures, or property
•Suggested material specifications
Subtask 07G - Final Geotechnical Report
CONSULTANT shall issue the final Geotechnical Report after incorporating comments and input from the design team. One PDF copy of the final report shall be submitted to the City.

CONSULTANT shall perform hydraulic study to identify viable alternatives to meet the main project obective, diverting excess storm water and debris from the roadways.

Deliverables:
•Hydrology & Hydraulics Reports
Task 10 – Easements
CONSULTANT shall review and assess all existing easements that may impact construction.

Item No.7H

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CONSULTANT shall prepare up to two (2) legal descriptions and exhibits for new easements and submit to the City for review and recordation.

Deliverables:
•Easment Legal Descriptions (2)
Task 11 – Preliminary Design Report (PDR)
CONSULTANT shall prepare conceptual plans at 1” = 20’ scale, utilizing City templates, for the proposed flood mitigation along with a detail construction estimate, for City staff to review and comment.

CONSULTANT shall contact Utility Owners and coordinate relocations if necessary for the proposed design.

Subtask 12B - Bird Survey
CONSULTANT shall prepare a bird survey within City’s Right-of-Way (ROW) in accordance with CEQA, and City requirements.

Deliverables:
•Initial Study Checklist
•Bird Survey
Item No.7H

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Task 13 – Plans, Specification and Estimate (PS&E)
Consultant shall prepare final design packages including all engineering reports, plans, specifications, and the engineer’s construction estimate based on the approved preliminary design. Consultant shall prepare special conditions and technical specification, including the bid schedule and measurement and payments sections, using City’s master specifications templates. Consultant shall edit the City-furnished general conditions and other front-end documents.

Consultant shall submit PS&E at 60%, 90%, and 100% level of completions.

Each subsequent submittal shall incorporate comments from the previous level of submission. Consultant shall provide for design review meetings for each level of submission.

Subtask 14-A – Prebid Meeting
CONSULTANT‘s Project Manager shall attend and conduct the pre-bid meeting and job walk.

Subtask 14-B – Response to RFI’s
CONSULTANT shall respond to Requests for Information/clarification by perspective bidder (allow for 5 RFI’s).

Deliverables:
•Respond to five (5) Request for Information (RFI)
•Prepare up to three (3) addenda
•“Issue for Construction” plan set
Task 15 – Monument Preservation
SubTask 15A – Pre-Construction
Item No.7H

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2 8
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CONSULTANT shall perform pre-construction survey prior to the commencement of construction activities and according to the following requirements for this task:
15-A–1.1 - Describe the type of survey instrument proposed for the surveying work.
15-A–1.2 - Research and analyze existing recorded property corner and center monuments and their associated ties within the zone of the project and submit to the City a survey work plan and schedule for approval. 15-A–1.3 - The preconstruction survey work shall set a minimum of three (3) ties for each found existing recorded monument
15-A–1.4 - Provide the City with Pre-Construction Corner Record and sketch for each found monument and their associated ties with supporting documents.
15-A–1.5 - Patch all holes caused by removing asphalt for preconstruction survey activities with cold patch material.

Task 16 – Miscellaneous
CONSULTANT shall prepare exhibits for public meetings.

Subtask 16A - Reproductions
CONSULTANT shall prepare story map and renderings of the project for internal and public meetings.

Deliverables:
•Story map and Rendering Exhibits
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EXHIBIT B

SCHEDULE OF FEES
Item No.7H

TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:January 10, 2023
SUBJECT: Financial Reports for Fiscal Year Ended June 30, 2022 RECOMMENDATION:

1. Receive and file financial reports.

2. Find that this action is not a project as defined under section 15378(b)(5) of the California Environmental Quality Act Guidelines.

FINANCIAL IMPACT:

No Additional Funding Requested. The financial impact consists of significant staff time to compile, prepare, and review financial reports, and approximately $61,780 in professional services for the City’s independent external auditors, which are included in the Adopted FY 2022-23 General Fund Budget.

BACKGROUND:

Comprehensive financial reporting is a recommended practice and, in some cases, required by federal and/or state law. The Finance Department, with the assistance of other departments, annually prepares several financial reports covering the past fiscal year, which begins on July 1 and ends on June 30. For Fiscal Year ending June 30, 2022, the reports include:

1. City of Thousand Oaks Annual Comprehensive Financial Report (ACFR) and Transmittal Letter (Attachment #1)

2. Conejo Open Space Conservation Agency (COSCA) Annual Financial Report and Transmittal Letter (Attachment #2)
The City’s external auditors, Rogers, Anderson, Malody and Scott, LLP (RAMS), performed both an interim audit in June 2022 and a final audit in October 2022 on the City’s ACFR and COSCA’s Annual Financial Report. City Council also received the Management Letter and Audit Committee Letter prepared by the Item No.7I

Financial Reports for Fiscal Year Ended June 30, 2022
January 10, 2023

Page 2 ends

City’s external auditors (Attachment #3). Also included is the City’s Appropriations Limit Worksheet (Gann Limit Calculation) (Attachment #4).

DISCUSSION/ANALYSIS:

Financial Reports
Finance Department Accounting staff are responsible for accurately and timely accounting for all financial transactions that occur during the course of operating the City. This includes, but is not limited to, payroll, accounts payable, accounts receivable, capital assets, investments, and debt. For a City of approximately 125,000 residents and a budget around $250 million, this equates to thousands of transactions annually. In order for sound financial decisions to be made, it relies on the accurate and timely reporting of these transactions. The City’s external auditor offers assurance to the reader that the ACFR is fairly presented and complies with Governmental Accounting Standards Board (GASB) requirements.

On December 21, 2022, the Finance Department delivered to City Council the financial reports for the Fiscal Year that ended June 30, 2022. Transmittal letters sharing the purpose of the various reports are attached (Attachments #3 and #4). The ACFR Report is also available on the City’s website at www.toaks.org\departments\financial-reports.

Finance/Audit Committee
The American Institute of Certified Public Accountant’s Statement on Auditing Standards 114 requires the auditor to communicate certain significant matters related to the audit to those charged with governance. The Finance Audit Committee (Committee) met with RAMS on January 10, 2023. RAMS presented the Management and Audit Committee Letters, provided a summary of the results of the audit, and answered questions from the Committee.

Implementation of GASB Statements
Annually, GASB provides accounting guidance for governmental agencies with which the City is required to comply. For FY 2021-22, there were no new statements required to be implemented.

Summary of FY 2021-22 Financial Results
GASB requires governmental agencies to utilize fund basis accounting.

Governmental funds are accounted for utilizing a modified accrual basis of accounting and enterprise funds are accounted for utilizing a full accrual basis of accounting. Greater explanation of the measurement focus, basis of accounting, Item No.7I

Financial Reports for Fiscal Year Ended June 30, 2022
January 10, 2023

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and financial statement presentation is included in the ACFR on pages 48-49.

General Fund – The General Fund is the City’s major discretionary fund. In FY 2021-22, total revenues, including other financing sources, were $94.6 million, while total expenditures, including other financing uses, were $91.5 million. This equates to an increase in General Fund fund balance (or a surplus) of $3.1 million.

The table below compares FY 2021-22 General Fund revenues and other financing sources with the prior year. For more detailed information, including variance explanations, please refer to pages 14-16 of the ACFR.

Comparison of General Fund Revenues and Other Financing Sources Fiscal Year 2021-22 Fiscal Year 2020-21
Variance Over/(Under) Last Year
1 Sales tax 38,071,482$ 34,462,168$ 3,609,314$ 10.5% 40.2% 2 Property tax 14,257,024 13,813,829 443,195 3.2% 15.1% 3 Property tax - in lieu of VLF 13,952,024 13,642,611 309,413 2.3% 14.7% 4 Intergovenmental revenue 8,129,943 8,580,248 (450,305) -5.2% 8.6% 5 Franchise tax 7,235,925 7,262,329 (26,404) -0.4% 7.6% 6 Charges for services 7,200,339 6,766,180 434,159 6.4% 7.6% 7 Licenses & permits 4,907,670 4,686,881 220,789 4.7% 5.2% 8 Transient occupancy tax 4,503,872 2,712,668 1,791,204 66.0% 4.8% 9 Business license 2,518,518 2,269,500 249,018 11.0% 2.7% 10Property transfer tax 1,628,975 1,465,971 163,004 11.1% 1.7% 11Other revenue 1,535,144 1,208,236 326,908 27.1% 1.6%
12Other financing sources 1,175,333 1,503,944 (328,611) -21.8% 1.3% 13Fines and forfeitures 961,574 765,158 196,416 25.7% 1.0% 14Use of money & property (11,467,575) 4,909,709 (16,377,284) -333.6% -12.1% Total Revenues 94,610,248$ 104,049,432$ (9,439,184)$ -9.1% 100.0% % of Total
% of Increase/ (Decrease) Over Prior Year
The table on the following page compares FY 2021-22 General Fund expenditures with the prior year. For more detailed information, including variance explanations, please refer to page 17 of the ACFR.

Item No.7I

Financial Reports for Fiscal Year Ended June 30, 2022
January 10, 2023

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Comparison of General Fund Expenditures and Other Financing Uses FY 2021-22 FY 2020-21
Variance Increase/ (Decrease) from Prior FY
1 Public safety $ 30,202,011 $ 29,778,413 423,598$ 1.4% 33.0% 2 General government 23,478,232 20,654,867 2,823,365 13.7% 25.7% 3 Community development 12,220,981 10,815,510 1,405,471 13.0% 13.4% 4 Transportation 10,099,596 9,186,002 913,594 9.9% 11.0% 5 Capital outlay 10,082,776 3,979,282 6,103,494 153.4% 11.0% 6 Other financing uses 3,695,491 1,479,541 2,215,950 149.8% 4.0% 7 Culture and leisure 1,706,131 4,652,139 (2,946,008) -63.3% 1.9% Total Expenditures 91,485,218$ 80,545,754$ 10,939,464$ 13.6% 100.0% % of Total
% of Increase/ (Decrease) from Prior FY
The City also accounts for other major funds, including the Library Fund, State Gas Tax Fund, Capital Improvements Fund, Thousand Oaks Housing Successor Fund, and non-major governmental funds. Highlights for these funds and explanation of variances can be found on pages 29-38 of the ACFR.

Enterprise Funds – Revenues, expenses, transfers out, and changes in net position for each enterprise fund are summarized below.

Fund Revenues Transfers Out Expenses Net Position
1 Water 29,328,833$ 86,461$ 27,208,395$ 2,033,977$ 2 Wastewater 20,535,459 - 20,779,622 (244,163)$
3 Golf course 8,766,593 43,552 8,056,099 666,942$
4 Transportation 7,053,736 - 7,159,640 (105,904)$
5 Theatres 5,276,402 - 5,043,173 233,229$
6 Solid Waste 1,945,612 100,000 1,417,992 427,620$
Highlights for enterprise funds can be found on pages 12-14, page 19, and pages 39-44 of the ACFR.

These annual reports focus on the financial condition of the City, as of June 30, 2022; however, staff continues to closely monitor the economy and City revenues.

Appropriate and timely updates will be provided as necessary. The City is financially strong with continued proactive and prudent financial leadership.

The City has been recognized by the Government Finance Officers Association for the past 34 years for Excellence in Financial Reporting for preparation of its Item No.7I

Financial Reports for Fiscal Year Ended June 30, 2022
January 10, 2023

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ACFR. The achievement of this award is a testament to the hard work and dedication of the Accounting staff.

COUNCIL GOAL COMPLIANCE:

Meets the following City Council goal:

PREPARED BY: Elisa Q. Magaña, Accounting Manager
Attachments:

Attachment #1 – ACFR Transmittal Letter
Attachment #2 – COSCA Transmittal Letter
Attachment #3 – City of Thousand Oaks Auditor’s Management Letter and Auditor’s Committee Letter
Attachment #4 – Appropriations Limit Worksheet
FIN:330-50\em\H:\COMMON\Council\2022\Accounting\011023 Financial Reports FY 2021-22 staff report.docx Item No.7I

Finance Departn1ent

MEMO RANDUM
2100 Thousand Oaks Boulevard • Thousand Oaks, Ct\ 91362 Phone 805/ -149.2200 • Fax 805/ 449.2250 • www.toaks.org To: Andrew P. Powers, City Manager
From: Jaime Boscarino, Finance Director
Date: December 21, 2022
Subject: City of Thousand Oaks Annual Comprehensive Financial Report - Fiscal Year 2021-22
Enclosed is a copy of the City of Thousand Oaks Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ended June 30, 2022. The annual ACFR is required under Federal law as well as a recommended financial practice. This financial report shows the financial condition and operations of the City, Housing Successor Agency and Public Financing Authority.

Rogers, Anderson, Malady & Scott, LLP, the City's external independent auditor firm, provided an Independent Auditors' Report stating that the financial statements present fairly, in all material respects, the financial position of the City. During the audit, Rogers, Anderson, Malady & Scott, LLP, tested and found no weaknesses related to the City's internal control structure.

Please refer to the Letter of Transmittal, Management's Discussion and Analysis and Notes to Basic Financial Statements, as shown on pages iv-xvii, pages 4-25, and pages 47-103, respectively, for a comprehensive overview of the City's position.

Copies of the ACFR have also been included for each member of the City Council.

Rogers, Anderson, Malady & Scott, LLP and City staff will be meeting with the City Council Finance/Audit Committee on January 10, 2023 to review and discuss the Fiscal Year 2021-22 audit results. The ACFR will be on the January 10, 2023 City Council agenda for a recommendation to receive and file.

I would be pleased to meet with you and individual council members interested in a more in-depth discussion of the report. Please feel free to contact me at x2220.

Jaie oscarino
Finance Director
Attachment
H:\COMMON\ACFLRICAFR 2022\ACFR Distribution\Transmittal Letters\CAFR Letter to Council.docx toc1k~.c>1-~
L ·
ATTACHMENT #1
Item No.7I

CIT

Y OF THOUSAND OAKS, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
Pr
epared by
Finance Department
Jaime B
oscarino
Finance Director/City Treasurer
Item No.7I

CITY OF THOUSAND OAKS

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2022

TABLE OF CONTENTS

Page

INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................ iv-xvii GFOA Certificate of Achievement .......................................................................................... xviii Organization Chart with City Officials ....................................................................................... xix

FINANCIAL SECTION
Independent Auditor’s Report .................................................................................................. 1-3 Management’s Discussion and Analysis (Unaudited) ........................................................... 4-25 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................ 26 Statement of Activities ................................................................................................ 27-28 Governmental Fund Financial Statements:

Balance Sheet - Governmental Funds ....................................................................... 29-30 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........................................................................................... 31 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ............................................................................................. 32-33 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................ 34 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund ............................................................................. 35 Budget and Actual - Library Fund ............................................................................... 36 Budget and Actual - State Gas Tax Fund ................................................................... 37 Budget and Actual - Thousand Oaks Housing Successor Fund ................................. 38 Proprietary Fund Financial Statements:

Statement of Net Position - Proprietary Funds ........................................................... 39-40 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds .................................................................................................. 41-42 Statement of Cash Flows - Proprietary Funds ............................................................ 43-44 Fiduciary Fund Financial Statement:

Statement of Fiduciary Net Position - Fiduciary Funds .................................................... 45 Statement of Changes in Net Position - Fiduciary Funds ................................................ 46 Notes to Basic Financial Statements ........................................................................ 47-103 Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios - Agent Multiple-Employer Defined Benefit Pension Plan for Full-time Employees .................................................. 104 Schedule of Employer Contributions - Agent Multiple-Employer Defined Benefit Pension Plan for Full-time Employees ......................................................................................... 105 Schedule of Changes in Net Pension Liability and Related Ratios - City’s Single Employer Defined Benefit Plan for Hourly/Part-time Employees ................................................... 106

Item No.7I

CITY OF THOUSAND OAKS

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2022

TABLE OF CONTENTS

Page

ii
FINANCIAL SECTION (continued)
Required Supplementary Information (Unaudited) (continued):

Schedule of Employer Contributions - City’s Single Employer Defined Benefit Plan for Hourly/Part-time Employees ................................................... 107 Schedule of Changes in Net Other Postemployment Benefits and Related Ratios ............ 108 Schedule of Employer Contributions - Other Postemployment Benefits ............................ 109 Combining Financial Statements and Schedules:

Special Revenue Funds Description ........................................................................... 110-111 Combining Balance Sheet - Nonmajor Governmental Funds...................................... 112-114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds .............................................................................. 115-117 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

HOME and Community Development Block Grant (CDBG) Fund ................................. 118 East County Transit Alliance Fund................................................................................. 119 Bicycle and Pedestrian Facilities Fund .......................................................................... 120 Landscaping and Lighting Districts Fund ....................................................................... 121 Housing Trust Fund ....................................................................................................... 122 Cable Television (PEG) Fund ........................................................................................ 123 Community Facilities Districts Fund ............................................................................... 124 County Flood Control Benefit Assessment Fund ........................................................... 125 Grants Fund ................................................................................................................... 126 Capital Improvements Fund ........................................................................................... 127 Internal Service Funds Description .................................................................................... 128 Combining Statement of Net Position - Internal Service Funds ......................................... 129 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds ................................................................................................... 130 Combining Statement of Cash Flows - Internal Service Funds .......................................... 131 Custodial Funds Description .............................................................................................. 132 Combining Statement of Fiduciary Net Position - Custodial Funds .................................... 133 Combining Statement of Changes in Net Positions - Custodial Funds .............................. 134

STATISTICAL SECTION (Unaudited)
Table of Contents ................................................................................................................... 135 Table 1 Net Position by Component............................................................................. 136-137 Table 2 Changes in Net Position .................................................................................. 138-141 Table 3 Fund Balances of Governmental Funds .......................................................... 142-143 Table 4 Changes in Fund Balances of Governmental Funds ....................................... 144-145 Table 5 Assessed Value and Estimated Actual Value of Taxable Property ........................ 146 Table 6 Direct and Overlapping Property Tax Rates ........................................................... 147 Table 7 Principal Property Tax Payers ................................................................................ 148 Table 8 Property Tax Levies and Collections ...................................................................... 149 Table 9 Direct and Overlapping Sales Tax Rates ............................................................... 150 Item No.7I

CITY OF THOUSAND OAKS

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2022

TABLE OF CONTENTS

Page

iii
STATISTICAL SECTION (Unaudited) (continued)
Table 10 Taxable Sales by Category .................................................................................... 151 Table 11 Ratios of Outstanding Debt by Type ...................................................................... 152 Table 12 Ratio of Net General Bonded Debt Outstanding .................................................... 153 Table 13 Computation of Debt and Overlapping Debt........................................................... 154 Table 14 Legal Debt Margin Information ........................................................................ 155-156 Table 15 Pledged Revenue Coverage .................................................................................. 157 Table 16 Demographic and Economic Statistics ................................................................... 158 Table 17 Principal Employers ............................................................................................... 159 Table 18 Full-time Equivalent Employees by Function.......................................................... 160 Table 19 Operating Indicators by Function .................................................................... 161-162 Table 20 Capital Asset Statistics by Function ......................................................................... 16

Item No.7I

City of Thousand Oaks
Fiscal Year Ended June 30, 2022
(LARGE TAB)

INTRODUCTORY SECTION

• Letter of Transmittal
• Certificate of Achievement – Government
Finance Officers Association
• Organization Chart with City Officials

Item No.7I

December 6, 2022

Honorable Mayor, Members of the City Council, City Manager, and Citizens of Thousand Oaks:

I am pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Thousand Oaks, California for the fiscal year ended June 30, 2022. The format and content of this ACFR comply with the principles and standards of accounting and financial reporting adopted by the Governmental Accounting Standards Board (GASB) and contains all information needed for readers to gain a reasonable understanding of the City’s financial affairs.

INTRODUCTION

This report was prepared by the City’s Finance Department. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls that it has established for this purpose. Because the cost of internal controls should not exceed the anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

Rogers, Anderson, Malody, & Scott, LLP, Certified Public Accountants, have issued an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2022. The independent auditors’ report is located at the front of the financial section of this report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it.

CITY OF THOUSAND OAKS PROFILE

Thousand Oaks was incorporated on October 7, 1964, as a general law city.

Located approximately 40 miles northwest of Los Angeles, halfway between the cities of Los Angeles and Santa Barbara, the City of Thousand Oaks is the third largest city in Ventura County, with an estimated population of 124,592, as of January 1, 2022.

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v
Located twelve miles inland from the Pacific Ocean and
nestled against the pristine Santa Monica Mountains to
the south, the City is surrounded by a ring of open space with rolling green hills that are legally protected by public ownership from future development. In 1977, the City
and Conejo Recreation and Park District (CRPD) formed
the Conejo Open Space Conservation Agency
(COSCA), entrusted with the responsibility of preserving, protecting, and managing open space resources. In
total, the City has more than 15,000 acres dedicated to open space, which represents forty percent of all land in the planning area of the City.

Over the years, Thousand Oaks has exhibited a vital entrepreneurial spirt highlighted by the expansive development of biotech industries. The City’s robust and generally upscale suburban character has unique features including a major regional shopping center and auto mall, is home to California Lutheran University, and is located along a major transportation corridor – US 101 Freeway. The economy of Thousand Oaks also benefits from the success of many tourist attractions including the Thousand Oaks Civic Arts Plaza’s two world-class theatres, the Gardens of the World, and the Santa Monica Mountains National Recreation Area located on the City’s southern periphery.

Item No.7I

vi
With these attractions, the City, along with the Greater Conejo Valley Chamber of Commerce, and the City of
Agoura Hills, formed the Conejo Valley Tourism
Improvement District (CVTID) in fiscal year 2012-13 to
market and promote the Conejo Valley as a great tourist destination.

The City operates under a City Council - City Manager form of government and provides traditional municipal and public enterprise services, including:

Municipal Services Public Enterprise Services
General administrative support Water
Highways and streets Wastewater (sewer)
Housing/community development Golf course
Library and cultural Transportation
Planning and zoning Solid waste management
Public safety Theatres

City Council consists of five members elected by the
community at large and selects the Mayor from its
members for a one-year term. City Council terms are four years, with elections held every two years. City Council appoints the City Manager and City Attorney. An
organization chart listing the names of City
Councilmembers and other City officials, as of June 30, 2022, is included at the back of the Introductory Section of the ACFR.

Per the City’s Municipal Code, the City Manager is required to “prepare and submit the annual budget to City Council and be responsible for its administration after adoption.” The City Manager presents a biennial operating and capital budget to City Council for review and adoption. The biennial budget is consistent with Generally Accepted Accounting Principles (GAAP). All governmental funds are budgeted and accounted for using the modified accrual basis of accounting and proprietary funds on an accrual basis. The budgetary level of control for all governmental fund types is at the fund level.

Primary responsibility for financial administration of the City rests with the Finance Director/Treasurer. The City Manager appoints the Finance Director and annually the City Council appoints the Finance Director as the City Treasurer.

Responsibilities include, but are not limited to, establishing and maintaining the accounting and management information systems, as well as the receipt, investment, and disbursement of all City funds.

Item No.7I

vii

FISCAL/ECONOMIC CONDITIONS AND OUTLOOK

The City relies on a mix of General Fund revenue sources including sales tax, property tax, property tax in-lieu of vehicle license fees, transient occupancy tax, and business license tax. The Water, Wastewater, Golf Course, Transportation, Solid Waste, and Theatres enterprises are supported through user fee charges.

Property Tax
The City incorporated without a general municipal property tax1; however, the City now receives a small portion of the local property tax revenue. For fiscal year 2021-22, the housing market for the City remained strong despite a rise in mortgage rates. The City’s assessed value increased $741.6 million from fiscal year 2020-21. While this was the 11th consecutive year of positive increases to the City’s assessed value, the annual percentage rate change year over year has steadily declined since fiscal year 2017-18 from 4.8 percent to 2.3 percent in fiscal year 2021-22.

Assessed Property Value Trend

1 The state property tax allocation system developed in 1979 in response to Proposition 13 is the basis for the property tax allocation among local governments today. Since 1979, one significant change to the original property tax shares contained in AB 8, relates to the so-called “no and low property tax cities.” Certain cities that did not levy a property tax, levied only a very low property tax, or were not incorporated as cities prior to the passage of Proposition 13 were not allocated a significant share of the property tax under AB 8. The Legislature has acted to gradually increase the share of property taxes going to these cities, including Thousand Oaks. Source: State of California Legislative Analyst's Office

0.7%

3.3%

5.5%

4.7%

4.2%

4.8%

4.4%

4.1%

3.2%

2.3%0.0%1.0%2.0%3.0%4.0%5.0%6.0%$0.0$5.0$10.0$15.0$20.0$25.0$30.0$35.0 % Change
Assessed Value (In Billions)Fiscal Year
Item No.7I

viii
Sales Tax
Sales tax revenue remains the primary General Fund revenue source, providing funding for 33 percent of general municipal services. The City’s diverse retail base maximizes sales tax revenue and generally offsets cyclical economic fluctuations.

The City’s taxable sales recovered from the impacts of the COVID-19 pandemic, rebounding from a negative 5.3 percent in 2020 to a positive 19.8 percent in 2021.

Taxable Sales Trend by Calendar Year
As the economy readjusts post-pandemic, inflation continues to be a key issue in 2022. Despite higher prices and concerns over a potential recession, consumer demand has remained consistent. As of the 2nd Quarter of 2022, the City experienced an increase in sales tax of 5.6 percent compared to the 2nd Quarter of 2021. The Autos and Transportation industry group continued to drive the City’s sales tax revenue, and new vehicle sales remained brisk even with low inventory and higher prices. The Fuel and Services Stations industry group experienced the largest percentage change, increasing 50.7% from the 2nd Quarter of 2021 to 2nd Quarter of 2022. This surge can be attributed to an increase in demand due to the lifting of COVID-19 restrictions.

Transient Occupancy Tax
The City relies on transient occupancy tax (TOT) as a General Fund revenue source, comprising 3.2 percent of budgeted General Fund revenue for fiscal year 2021-22. TOT budgeted revenue was reduced from its pre-pandemic projection of $4.7 million to $3.0 million for fiscal year 2021-22 as actual TOT revenue received for fiscal year 2020-21 was constrained to $2.7 million. While TOT revenue has been slow to recover from COVID-19 pandemic impacts, actual TOT revenue

4.0%

2.3%

4.8%

4.8%
-1.0%

6.0%

2.2%

3.0%
-5.3%

19.8%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%-$1.5-$1.0-$0.5$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.02012 2013 2014 2015 2016 2017 2018 2019 2020 2021 % Change
Taxable Sales (in billions)Calendar Year
Item No.7I

ix
received for fiscal year 2021-22 was $4.5 million, indicating that travel and hotel occupancy is recovering, but has not fully regained its pre-pandemic levels.

Local Business Economy
Economic development continues to thrive as new businesses are motivated to locate in Thousand Oaks due to its location, amenities, economic vibrancy, and high quality of life for residents. The number of business licenses issued for fiscal year 2021-22 increased by 0.7 percent compared to fiscal year 2020-21. This equated to 12,827 active business licenses, the highest amount experienced over the last ten years. This total includes the addition of a variety of new businesses into the community including:

The unemployment rate within the City decreased from 5.6 percent in fiscal year 2020-21 to 3.0 percent for fiscal year 2021-22. This represented a rebound back to pre-COVID-19 pandemic levels.

The City’s strong creditworthiness is reflected by the Standard and Poor’s (S&P) AA+ rating from its 2020 Public Financing Authority Refunding Lease Revenue Bonds. The rating was based upon a very strong economy with access to a broad and diverse metropolitan statistical area, strong management with good financial policies, and very strong budgetary flexibility, liquidity, and debt and contingent liability position.

Item No.7I

PLANNING FOR THE FUTURE

Thousand Oaks 2045: Rooted in Community
In February 2019, City Council approved the embarkment of a comprehensive update of the Thousand Oaks General Plan, Thousand Oaks 2045: Rooted in Community. This community- driven project will create a new guiding vision for the City. The result will be a planning and policy document that maintains the wonderful and unique character of Thousand Oaks, while
creating opportunities for future improvements in health, economic development, conservations, safety, open space, and more.

The City completed an extensive community visioning process to update the General Plan Land Use Map. On May 18, 2021, City Council reviewed multiple options and selected a Preferred Land Use Map. Following this endorsement, City staff began preparing its 2021-2029 Housing element. The Housing Element serves as the primary planning guide to meet existing and projected housing needs of Thousand Oaks’ residents through 2029. After multiple comment opportunities and revisions, the City’s 2021-2029 Housing Element was adopted by City Council on January 25, 2022, and was submitted to the California Department of Housing and Community Development for certification.

For the next step in the process, the City began preparation of the Environmental Impact report (EIR) to evaluate the potential environmental effects associated with the Thousand Oaks 2045 General Plan Update. The General Plan team review all comments as they prepare the Draft EIR which will be made available to the public for review and comment in 2023.

Financial Strategic Plan
Long-term financial strategic planning is critical to prudent financial sustainability and the City continues to be a leader in this area. The City periodically updates its Financial Strategic Plan (FSP) to proactively plan for the future in anticipation of financial challenges and opportunities. The primary focus of the FSP is to analyze the overall financial health and sustainability of the City’s various funds and recommend actions in response to any forecasted fiscal challenges. The next update to the FSP is currently in process and is anticipated to be completed in early 2023. This FSP process has been expanded to incorporate the goals and objectives of the other operational Master Plans throughout the City. This update aims to provide a cohesive financial roadmap to successfully position the City for the future.

Item No.7I

xi
Financial Reserve Policies
To support the City’s commitment to long-term financial planning, City Council has adopted extensive financial policies. The City has a General Fund reserve policy of 20 percent of the subsequent fiscal year General Fund and Library Fund’s budgeted expenditures and any capital project budget carryovers (15 percent working capital reserve and 5 percent emergency reserve), and a fund balance policy in compliance with Government Accounting Standards Board (GASB) Statement No. 54. As of June 30, 2022, the City’s General Fund total fund balance was $166.2 million. In compliance with the City’s Governmental Fund Balance Policy, the City designated 20 percent of the total fiscal year 2022-23 General Fund Budget, or $23.3 million, towards reserves, meeting the City’s General Fund policy objectives.

ACCOMPLISHMENTS

Thousand Oaks is a community that meets the commercial, retail, social, cultural, recreational, and educational needs of its citizens and businesses. As a result, entertainment, education, recreational facilities, open space, and attractive, safe streets and neighborhoods are important aspects of the community.

The City is dedicated to providing its residents safety, security, well-being, and cultural activities. Thousand Oaks has
continually been recognized as one of the safest cities with a population of more than 100,000. In 2022, home security review site SafeWise published a list of the safest cities in California, based on the most recent crime statistics and FBI data. Thousand Oaks ranked 10th among the top 50 safest cities in California. This contributes positively towards attracting and retaining businesses and the community’s quality of life.

Education plays an important role in having a strong and vibrant community. The Conejo Valley Unified School District consistently receives high Academic Performance Index (API) scores throughout all schools in the District, and the City is also home to several private schools. California Lutheran University, a private university, is located on a 290-acre campus and offers 36 majors and 36 minors.

The City has a strong commitment to sustainability, and this is reflected throughout the community. City Council approved the City’s first Sustainability Plan (Plan) in June 2018, which established the foundation for environmentally friendly, fiscally responsible, and sustainability-minded City operations. Since the Plan was adopted, substantial progress has been made towards its goals.

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xii
In October 2020, the City
Council voted unanimously
to ban the use, distribution,
and sale of polystyrene in
the City of Thousand Oaks.

The ban’s purpose is to help prevent the negative environmental impacts on the community. Polystyrene (commonly known as Styrofoam™) easily breaks apart and redistributes itself on streets, freeway embankments, beaches, and oceans. It is a common polluter in waterways and oceans and instead of decomposing, breaks down into microplastics. The City’s new ordinance went into effect in January 2022.

Supporting the City’s continued sustainability efforts, City Council included in its fiscal year 2021-22 Top Ten Priorities, No. 6 – Create and adopt a Climate and Environmental Action Plan (CEAP) in coordination with community stakeholders.

The CEAP will detail the strategies and actions the City will pursue to protect the environment and address the challenges of climate change. Planned actions will be aimed at improving overall public health, sustaining a healthy environment, reducing air pollution, protecting our energy supply, mitigating climate change and its impacts, reducing the threat of catastrophic wildfires and extreme weather, and supporting a healthy economy into the future. The CEAP’s draft strategies were presented to City Council on October 26, 2021. The next steps include soliciting further community feedback on the strategies and
preparing for the Environmental Review of the CEAP.

Once the Environmental Review has been completed,
the CEAP draft document will be circulated for review
and comment.

The City also actively contributes to the well-being and cultural enhancement of the community. In fiscal year 2021-22, the City provided $100,000 towards its Social Services Endowment Fund (SSEF). The SSEF provides operational support grants to local non-profit agencies offering essential public and social services to eligible low-income persons. The grant awards for fiscal year 2021-22 went to programs such as a community food pantry, adult day program, emergency assistance programs, family services, and youth health and education services.

SIGNIFICANT EVENTS

Addressing Homelessness in Thousand Oaks

Homelessness is a humanitarian crisis that impacts every community.

Cooperatively addressing homelessness was included in City Council’s fiscal year 2021-22 Top Ten Priorities to, “Identify and advance solutions for emergency sheltering and permanent supporting housing to address homelessness.” The City provides community leadership, working collaboratively to develop and implement Item No.7I

xiii
strategies that link people in need with the right resources. As part of these ongoing efforts, the City partnered with the County of Ventura, Shangri-La Industries, and Step Up on Second to apply for permanent supporting housing funding through the State of California’s Project Homekey grant program. The Homekey Program is a statewide effort to sustain and rapidly expand housing for persons experiencing homelessness or at risk of homelessness. Grant funding was made available to local public entities to
acquire and convert
existing buildings into
Permanent or Interim
Housing. All applicants
were required to use
the housing first model.

The City, through this collaborative partnership, was awarded $27 million in Homekey grant funds to convert the Quality Inn & Suites Motel into 77 units of permanent supportive housing for the chronically homeless. This successful grant award was made possible by a multi-agency effort to reduce projects costs which included:

 City contributed $1.8 million from its Housing Successor Fund and waived planning and permitting fees estimated at an additional $25,000.  County of Ventura committed $6.6 million from multiple sources.  CRPD and CVUSD waived over $1.0 million in Quimby and school fees.

When completed in fiscal year 2022-23, this project’s 77 units will represent the most substantive investment in permanent supportive housing for the chronically homeless in Eastern Ventura County.

Item No.7I

xiv
Water Shortage Declaration
At the end of March 2022, the State recorded its driest first three months of the year on record. Coupled with warm temperatures and low snowpack on April 26, 2022, Metropolitan Water District of Southern California (MWD) declared a Water Shortage Emergency Condition and adopted an Emergency Water Conservation Program for those areas that depend on supplies from the State Water Project. In response, the City’s water supplier, Calleguas Municipal Water District (Calleguas) adopted an Emergency Water Conservation Program to reduce non-essential uses of water.

The City is primarily served by three water purveyors: California American Water Company (48 percent of accounts), City of Thousand Oaks Water Agency (36 percent of accounts), and California Water Service (16 percent of accounts). The three agencies receive water from Calleguas, which delivers treated water from MWD to the local agencies’ infrastructure.

Due to the unprecedented statewide drought conditions, on May 24, 2022, City Council adopted Level 4 water conservation measures. At the core of these measures is the requirement for all residents and businesses to limit outdoor water use to one day a week using low flow or low volume irrigation systems, with a focus on keeping shrubs, trees, and the urban forest alive. The goal is to conserve enough water as a community to avoid a complete ban on outdoor watering and to keep public area turf alive for active recreational uses.

The City responded immediately to the conservation efforts through numerous actions such as shutting off sprinklers at City facilities and draining the fountain in front of the Kavli Theatre. Throughout the City, turf has been replaced with mulch and new low-flow sprinklers were installed to support the trees and existing drought-tolerant landscaping.

City staff have conducted significant public outreach, focusing on awareness and education of the drought conditions and restrictions. In addition, the City implemented enforcement procedures in compliance with Calleguas’ Water Conservation Program requirements.

Item No.7I

SIGNIFICANT CITY RECOGNITION

Thanks to hard-working and dedicated City staff, the City received several significant recognitions throughout the year. The following is just a sample of those accomplishments.

In 2010, the City of Thousand Oaks was the first agency in Ventura County to be accredited by the American Public Works
Association (APWA) and 62nd in the nation. The City has since been re-accredited three times. During fiscal year 2021-22, the Public Works Department initiated the re-accreditation process.

This included a review of 165 policies, practices, and programs that were noted as 100 percent compliant and resulted in reaccreditation in November 2022. This accreditation will remain in place until 2026.

The Public Works Department’s Fleet Services Division was recognized by Green Fleet as one of the top 100 best fleets in North America for sustainability and effective planning. The Division was also recognized by Government Fleet Magazine as one of the top 50 Leading Fleets in the industry for 2022. Fleets are judged on showing leadership with staff, with customers, and within the community; staying efficient and competitive; overcoming challenges; and having vision and direction for the operation.

From the Institute for Local Government, the City was recognized as a Beacon Vanguard Silver Award recipient during fiscal year 2021-22. The Vanguard Award recognizes agencies that have taken a holistic approach to addressing climate change. The City qualified for the award by successfully completing the requirements to adopt a Climate Action Plan and the following five elements:

Community Greenhouse Gas Reductions
Platinum Level Award for 28% reduction
Agency Greenhouse Gas Reductions
Platinum Level Award for 20% reduction
Agency Energy Savings
Gold Level Award for 15% reduction
Agency Natural Gas Savings
Silver Level Award for 7% reduction
Sustainability Best Practices
Platinum Level Award

Item No.7I

xvi
For the 24th consecutive year, the City was recognized by the Arbor Day Foundation as a Tree City USA. This program is a nationwide movement that provides the framework necessary for communities to manage and expand their public trees. The City has received this achievement by meeting four core standards of sound urban forestry management: maintain a tree board or department, having a community tree ordinance, spending at least $2 per capita on urban forestry, and
celebrating Arbor Day.

In addition, the City also received a 2021 Growth
Award from the Arbor Day Foundation. This award is
presented to communities that demonstrate higher
levels of tree care and community engagement during
the year.

Since 2017, the City has
received the Bee City USA certification. This award
acknowledges the efforts of the Landscaping Maintenance Division to support pollinator habitat in the community through the use of appropriate landscaping plants and trees, the protection of foraging areas, and an integrated pest
management program.

The City has also been recognized as a Bronze Award
designated Bicycle Friendly Community from the League of American Bicyclists. This program recognizes communities that encourage people to bike for transportation and
recreation through the five Es: equity, engineering,
education, encouragement, and evaluation.

FINANCIAL REPORTING AWARDS

Annual Comprehensive Financial Report (ACFR)

GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the fiscal year ended June 30, 2021. This was the 32nd consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

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xvii
A Certificate of Achievement is valid for a period of one year. Staff is confident that this ACFR continues to meet the Certificate of Achievement Program’s requirements and it will be submitted to GFOA to determine its eligibility for another certificate. A copy of the certificate for the fiscal year ended June 30, 2021, is included in the Introductory Section of this ACFR.

Operating and Capital Budget

The GFOA awarded the Certificate of Achievement for Distinguished Budget Presentation to the City for its Operating and Capital Budgets for fiscal years 2021- 22 and 2022-23. In order to be awarded a Certificate of Achievement, a government unit must publish budget documents of the highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s recommended practices on budgeting. The GFOA Certificate of Achievement is valid for the two years of the biennial budgets submitted for the award.

The California Society of Municipal Finance Officers (CSMFO) awarded the Certificate of Excellence in Budgeting to the City for its Operating and Capital Budgets for fiscal years 2021-22 and 2022-23. In order to be awarded a Certificate of Excellence, a government unit must receive a minimum of seventy points out of an eighty point maximum based on guidelines established by CSMFO. The CSMFO Certificate of Excellence is valid for the two years of the biennial budgets submitted for the award.

ACKNOWLEDGEMENTS

Preparation of a financial report of this scope would not be possible without the support and leadership of City Council, Finance/Audit Committee, City management, the cooperation of each department, and the efforts of the entire staff of the Finance Department and our auditors, Rogers, Anderson, Malody & Scott, LLP. Special thanks must go to Deputy Finance Director Carrie Matson, Accounting Manager Elisa Q. Magaña, Budget Officer Brent Sakaida, Accounting Supervisor Caressa Gomez, and Senior Accountant Blanca Gomez, for their extensive work in the preparation of this report. Additional thanks go to other members of the Finance Department who assisted with the report.

Respectfully submitted,

Jaime Boscarino
Finance Director/City Treasurer
Item No.7I

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Thousand Oaks
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xviii
Item No.7I

CITY OF THOUSAND OAKSCITY OF THOUSAND OAKS

CITY ATTORNEY
Tracy Noonan

CITY MANAGER
Andrew P. Powers

COMMUNITY

DEVELOPMENT
Kelvin Parker

FINANCE
Jaime Boscarino

PUBLIC WORKS
Clifford G. Finley

CULTURAL AFFAIRS
Jonathan Serret
Residents

CITY CLERK
Cynthia Rodriguez

LIBRARY SERVICES
Jennifer Patterson

HUMAN RESOURCES
Tim Giles
POLICE
Jeremy Paris
FIRE
Jeff Shea

ASSISTANT CITY MANAGER
Ingrid Hardy
- Arts & Culture Roundtable
- Business Roundtable
- Community Funding Review Committee
- Council on Aging
- Disabled Access Appeals and Advisory Board
- Investment Review Committee
- Planning Commission
- Traffic & Transportation Advisory Commission
- Youth Commission

COUNCILMEMBER
Kevin McNamee
MAYOR
Bob Engler

MAYOR PRO TEM
Ed Jones

COUNCILMEMBER
Al Adam

COUNCILMEMBER
Claudia Bill-de la Peña

DEPUTY CITY MANAGER
Gary Rogers
xix
Item No.7I

City of Thousand Oaks
Fiscal Year Ended June 30, 2022

(LARGE TAB)

FINANCIAL SECTION

• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Basic Financial Statements
• Required Supplementary Information
• Combining Financial Statements and
Schedules
Item No.7I

(SMALL TAB)

Independent Auditors’ Report

Item No.7I

735 E . Carneg ie Dr . Suite I 00
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ramscpa .net

PARTNERS
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MANAGERS / STAFF
Gar·denya Duran, CPA. CGMA
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Laura Arvizu. CPA
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John Maldonado, CPA. MSA
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Demi Hrte. CPA
Jeffrey McKennan, CPA

MEMBERS
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ROGERS , ANDERSON , MALODY & SCOTT , LLP
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Independent Auditor’s Report

To the Honorable Mayor and Members of City Council
City of Thousand Oaks, California

Report on the Audit 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 Thousand Oaks (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective fi nancial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison information for the General Fund, the Library Fund, the State Gas Tax Fund and t he Thousand Oaks Housing Successor Special Revenue Fund 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 accordan ce with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of a Matter

As discussed in Note 1 of the fi nancial statements, the City adopted the provisions of Governmental Account ing Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

The City’s 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.
1 Item No.7I

In preparing the financial statements, management is required to evaluat e 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 erro r, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assu rance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 consider ed material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of ma terial 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 ex pressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting polic ies 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 ac cepted in the United States of Am erica require that the required supplementary information, as listed in the table of contents, be present ed 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 proc edures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the me thods of preparing the information and comparing the information for consistency with management’s responses to our i nquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic fi nancial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not pr ovide us with sufficient evidence to express an opinion or provide any assurance.

2 Item No.7I

Supplementary Information

Our audit was conducted for the purpose of forming opi nions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information , such as the combining schedules and budgetary comparison information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The accompanying supplementary 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.

Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prep are the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United Stat es of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information Included in the Annual Report
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 financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance ther eon. In connection with our audit of the financial statements, our responsibility is to read the other info rmation and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work per formed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2022 on our consideration of the City’s internal control ov er financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our te sting of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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.

San Bernardino, California
December 6, 2022

3 Item No.7I

(SMALL TAB)

Management’s Discussion and
Analysis

Item No.7I

4 MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of Thousand Oaks, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our Letter of Transmittal, which can be found on pages iv - xvii of this report. Comparative data on the government-wide financial statements are only presented in Management’s Discussion and Analysis.

FINANCIAL HIGHLIGHTS

Government-wide

 At the end of fiscal year 2021-22, City assets and deferred outflows exceeded liabilities and deferred inflows by $923.2 million (net position). Of this amount, $233.8 million (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.

 City total net position increased $27.7 million during the fiscal year. Governmental activities net position increased $25.0 million compared to prior fiscal year’s increase of $20.3 million. Business-type activities increased $2.6 million compared to prior fiscal year’s increase of $6.6 million.

Fund based

 At the end of fiscal year 2021-22, governmental funds reported combined ending fund balance of $222.2 million, an increase of $3.3 million compared to prior fiscal year’s increase of $20.9 million. The ending fund balance is primarily identified as: $109.1 million assigned, $56.4 million restricted, and $48.6 million committed.

 At the end of fiscal year 2021-22, fund balance for the General Fund is $166.2 million consisting primarily of $88.0 million in assigned funds, $46.3 million in committed funds and $20.1 million in restricted funds.

 At the end of fiscal year 2021-22, General Fund revenues, including transfers in and proceeds from sale of properties, are $94.6 million. Total revenues decreased by $9.4 million from prior fiscal year’s revenues of $104.0 million.

 At the end of fiscal year 2021-22, General Fund expenditures, including transfers out, are $91.5 million. Total expenditures increased by $11.0 million from prior fiscal year’s expenditures of $80.5 million.

 At the end of fiscal year 2021-22, proprietary funds business-type activities reported combined ending net position of $265.8 million, an increase of $3.0 million compared to prior fiscal year’s increase of $6.6 million. The ending net position is identified as:
$170.3 million net investment in capital assets, $89.3 million unrestricted, and $6.2 million restricted.
4 Item No.7I

5 OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains combining financial statements and schedules and other required supplementary information in addition to the basic financial statements.

Government-wide financial statements

The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the City’s assets and deferred outflows, as well as liabilities and deferred inflows, 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 position of the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed during the current 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, all the current fiscal year’s revenues and expenses are considered regardless of when cash is received or paid (e.g., earned but unused vacation leave or uncollected taxes).

Government-wide financial statements distinguish City governmental activities that are principally supported by taxes and intergovernmental revenues from other business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Governmental activities include general government, public safety, transportation, community development, and culture and leisure. Business-type activities include water, wastewater, golf course, transportation, solid waste management, and theatres. The government-wide financial statements can be found on pages 26-28 of this report.

Fund financial statements

Fund financial statements are designed to report information about groupings of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. City funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

5 Item No.7I

6 Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental funds organized by their type (i.e., general, special revenue, debt service, and capital projects funds). 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 General, Library, State Gas Tax, Capital Improvements, and Thousand Oaks Housing Successor funds, which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining statements shown on pages 110-126.

The City adopts a biennial appropriated budget for its General Fund, special revenue funds, and capital projects funds. Budgetary comparison statements for the City’s major funds and special revenue funds are provided to demonstrate compliance with this budget on pages 35-38.

The basic governmental funds financial statements can be found on pages 29-34 of this report.

Proprietary funds are generally used to account for services for which the City charges customers. Proprietary funds provide the same type of information shown in the government-wide statements, only in more detail. The City maintains the following types of proprietary funds:

 Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations of water, wastewater, golf course, transportation, solid waste management, and theatres.

 Internal service funds are used to report activities that provide internal services for the City. The City uses internal service funds to account for its liability, workers’ compensation, and vision insurance coverages. Because internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial 6 Item No.7I

7 statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements found on pages 128-131.

The basic proprietary funds financial statements can be found on pages 39-44 of this report.

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements, because the resources of those funds are not available to support the City’s own programs.

The basic fiduciary funds financial statements can be found on pages 45-46 of this report.

Notes to basic financial statements

The notes to basic financial statements provide additional information essential to a full understanding of the data provided in the government-wide and fund financial statements.

The notes to basic financial statements can be found on pages 47-102 of this report.

Other information

In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information (RSI) concerning the City’s progress in funding its obligation to provide pension and other post-employment benefits (OPEB) to its full-time and hourly employees, which includes the Schedules of Changes in Net Pension and OPEB Liability and Related Ratios, and Schedule of Employer Contributions for pensions and OPEB. RSI can be found on pages 104-109 of this report.

Combining statements for nonmajor governmental funds, internal service funds, and custodial funds are presented immediately following the RSI. Combining financial statements and schedules can be found on pages 110-134 of this report.

Statistical tables regarding fiscal trends, revenue capacity, debt capacity, demographic and economic information, and operating information can be found on pages 135-163 of this report.

7 Item No.7I

8 GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve as a useful indicator of a government’s financial position over time. City assets and deferred outflows of resources exceeded liabilities and deferred inflows by $923.2 million at the end of fiscal year 2021-22 as summarized below:

The largest portion (67.9 percent) of the City’s net position reflects its investment of $626.8 million in capital assets (land, buildings and improvements, equipment, intangibles, infrastructure, and construction in progress, net of accumulated depreciation), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to the community; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Another portion of the City’s net position, $62.6 million (6.8 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $233.8 million (25.3 percent), may be used at the City’s discretion to meet the government’s ongoing operations and imposed designations (e.g., reserves, endowments, pending litigations, contingencies, and capital projects).

2022 2021 2022 2021 2022 2021Assets:Current and other assets 307,519,711$ 294,083,334$ 129,264,576$ 130,469,412$ 436,784,287$ 424,552,746$ Capital assets (net of depreciation) 464,654,686 458,297,711 172,288,597 171,998,644 636,943,283 630,296,355 Total assets 772,174,397 752,381,045 301,553,173 302,468,056 1,073,727,570 1,054,849,101 Deferred outflows of resources:Deferred pension items 9,023,729 10,067,527 3,120,515 3,364,679 12,144,244 13,432,206 Deferred OPEB items 2,823,533 1,801,059 981,255 603,238 3,804,788 2,404,297 Total deferred outlfows of resources 11,847,262 11,868,586 4,101,770 3,967,917 15,949,032 15,836,503 Liabilities:Current and other liabilities 57,438,786 52,613,024 19,062,307 17,233,481 76,501,093 69,846,505 Noncurrent liabilities 44,015,877 76,499,688 12,879,736 25,548,895 56,895,613 102,048,583 Total liabilities 101,454,663 129,112,712 31,942,043 42,782,376 133,396,706 171,895,088 Deferred inflows of resources:Deferred pension items 21,432,865 1,001,893 7,402,841 325,310 28,835,706 1,327,203 Deferred OPEB items 2,778,776 798,158 965,699 267,329 3,744,475 1,065,487 Deferred lease related 485,056 512,004 - - 485,056 512,004 Total deferred inflows of resources 24,696,697 2,312,055 8,368,540 592,639 33,065,237 2,904,694 Net position:Net investments in capital assets 456,451,908 449,337,191 170,306,971 168,087,489 626,758,879 617,424,680 Restricted 56,387,142 62,860,845 6,221,453 7,187,089 62,608,595 70,047,934 Unrestricted 145,031,249 120,626,828 88,815,936 87,786,380 233,847,185 208,413,208 Total net position 657,870,299$ 632,824,864$ 265,344,360$ 263,060,958$ 923,214,659$ 895,885,822$ A more detailed statement of net position is shown on page 26.

Statement of Net PositionJune 30, 2022TotalBusiness-type ActivitiesGovernmental Activities 8 Item No.7I

9 Statement of Activities

The statement of activities shows how the City’s net position changed during fiscal year 2021-22. Overall, the City’s net position increased by $27.7 million during the fiscal year.

These increases are explained in the governmental and business-type activities on the following pages. Provided below is a summary of changes in net position:

2022 2021 2022 2021 2022 2021Revenues:Program revenues:Charges for services 22,065,680$ 20,658,619$ 68,670,367$ 62,210,140$ 90,736,047$ 82,868,759$ 18,647,401 17,751,988 9,681,179 8,774,681 28,328,580 26,526,669 Capital grants and contributions 6,114,884 1,710,538 74,458 861,495 6,189,342 2,572,033 General revenues:Property tax 26,156,296 25,407,742 - - 26,156,296 25,407,742 Property tax in-lieu of VLF 13,952,024 13,642,611 - - 13,952,024 13,642,611 Sales tax 38,071,482 34,462,168 - - 38,071,482 34,462,168 Transient occupancy tax 4,503,872 2,712,668 - - 4,503,872 2,712,668 Franchise taxes 7,235,925 7,262,329 - - 7,235,925 7,262,329 Business tax 2,221,656 1,985,350 - - 2,221,656 1,985,350 Property transfer tax 1,628,975 1,465,971 - - 1,628,975 1,465,971 Other taxes 114,355 145,536 - - 114,355 145,536 Unrestricted intergovernmental 146,351 92,914 - - 146,351 92,914 Gain/(loss) from sale of property (937,693) (1,411,124) - - (937,693) (1,411,124) Proceeds from insurance recoveries 27,233 246,864 - - 27,233 246,864 Contributions not restricted for specific programs 20,625 423,212 - - 20,625 423,212 (12,213,022) 4,192,412 (5,519,369) 1,431,832 (17,732,391) 5,624,244 Total revenues 127,756,044 130,749,798 72,906,635 73,278,148 200,662,679 204,027,946 Expenses:General government 21,582,185 22,865,565 - - 21,582,185 22,865,565 Public safety 31,744,873 31,243,892 - - 31,744,873 31,243,892 Transportation 27,718,815 29,449,440 - - 27,718,815 29,449,440 Community development 11,045,568 12,674,019 - - 11,045,568 12,674,019 Culture and leisure 10,529,731 13,752,061 - - 10,529,731 13,752,061 Interest on long-term debt 323,350 349,433 - - 323,350 349,433 Water - - 27,324,795 29,115,767 27,324,795 29,115,767 Wastewater - - 21,001,676 22,379,545 21,001,676 22,379,545 Golf course - - 8,056,099 5,710,741 8,056,099 5,710,741 Transportation - - 7,162,472 7,039,067 7,162,472 7,039,067 Solid waste management - - 1,420,892 1,607,577 1,420,892 1,607,577 Theatres - - 5,099,587 869,904 5,099,587 869,904 Total expenses 102,944,522 110,334,410 70,065,521 66,722,601 173,010,043 177,057,011 Transfers, net (note 5) 230,013 (80,451) (230,013) 80,451 - - Change in net position 25,041,535 20,334,937 2,611,101 6,635,998 27,652,636 26,970,935 Net position - beginning, as restated (note 16) 632,828,764 612,489,927 262,733,259 256,424,960 895,562,023 868,914,887 Net position - ending 657,870,299$ 632,824,864$ 265,344,360$ 263,060,958$ 923,214,659$ 895,885,822$ A more detailed statement of activities is shown on pages 27-28.

Operating grants and contributionsInvest. earnings not restricted for specific prgms.Statement of Activities Fiscal Year Ended June 30, 2022Governmental Activities Business-type Activities Total 9 Item No.7I

10 Governmental activities net position increased $25.0 million compared to the prior fiscal year’s increase of $20.3 million. Key elements of the increase in net position are as follows:

Program revenues increased $6.7 million due to increases in capital grants and contributions of $4.4 million, charges for services of $1.4 million, and operating grants and contributions of $0.9 million:

 Capital grants and contributions increased $4.4 million primarily due to transportation activities increase of $4.2 million for federal grant revenues received from Congestion Mitigation and Air Quality Improvement (CMAQ), California Department of Transportation (Caltrans), and Transportation Development Act (TDA) for qualified transportation projects.

 Charges for services increased $1.4 million primarily due to increase in transportation activities of $0.3 million from property tax special assessment and $0.3 million from CNG fuel sales, as well as an increase in community development activities of $0.6 million from planning fees and building permits.

 Operating grants and contributions increased $0.9 million due to $1.2 million in transportation activities federal grant revenues, offset by a decrease in general government predominantly due to prior fiscal year funds of $2.3 million from Coronavirus Aid, Relief, and Economic Security (CARES) Act.

General revenues decreased $9.7 million primarily due to a decrease of $16.4 million in investment earnings not restricted for specific programs, offset by increases of $3.6 million in sales tax, $1.8 million in transient occupancy tax, $0.7 million in property tax, and $0.5 million decrease in loss from sale of property. The major changes are highlighted below:
 Investment earnings not restricted for specific programs decreased $16.4 million primarily due to decreases of $9.0 million in fair market value adjustment and $7.4 million in investment income related to Section 115 Pension Rate Stabilization Trust Fund.
 Sales tax increased $3.6 million, exceeding pre-pandemic levels, due to pent up consumer demand as COVID-19 pandemic restrictions became more relaxed and overall higher sales prices.
 Transient occupancy tax increased $1.8 million as travel and tourism continue to recover from COVID-19 travel restrictions.
 Property tax increased $0.7 million primarily due to increase in assessed valuation over prior fiscal year.
 Gain/(loss) from sale of property increased $0.5 million primarily due to a decrease in the loss of the disposal of capital assets.

10 Item No.7I

11 Expenses decreased $7.4 million primarily due to decreases of $3.2 million in culture and leisure, $1.7 million in transportation, $1.6 million in community development, $1.3 million in general government, offset by increase of $0.5 million in public safety. These changes are highlighted as follows:

 Culture and leisure expenses decreased $3.2 million primarily due to a non- recurring $2.8 million grant to CRPD for improvements to the Teen and Adult Community centers in fiscal year 2020-21 and decrease of $1.3 million in pension and other post-employment benefits, offset by $0.6 million increase in salaries and benefits and $0.3 million increase in repairs and maintenance for libraries.

 Transportation expenses decreased $1.7 million primarily due to decrease of $2.2 million in pension and other post-employment benefits, offset by $0.5 million increase in fuel expenses.

 Community development expenses decreased $1.6 million primarily due to decrease of $2.3 million in pension and other post-employment benefits, offset by $1.0 million increase in various contracted services for planning.

 General government expenses decreased $1.3 million primarily due to $4.3 million decrease in pension and other post-employment benefits, offset by a $1.8 million increase in various contracted services, $0.6 million increase in salaries and benefits, and $0.5 million in maintenance and repairs.

 Public safety expenses increased $0.5 million primarily due to $0.4 million increase in contracted police services with the Ventura County Sheriff’s Office.

As shown on the following charts, public safety is the largest program expense ($31.7 million), followed by transportation ($27.7 million), general government ($21.6 million), community development ($11.0 million), culture and leisure ($10.5 million), and interest on long-term debt ($0.3 million). General revenues, such as property and sales tax, are not shown by program, but are effectively used to support governmental activities citywide.

11 Item No.7I

12 Business-type activities net position increased by $2.6 million compared to prior fiscal year’s increase of $6.6 million. Key elements of net changes from the prior fiscal year are as follows:
 Water program revenues exceeded expenses by $4.2 million compared to prior fiscal year’s increase of $4.0 million. This $0.2 million net increase is primarily due to decrease of $0.8 million in pension expense, offset by decreases in operating and capital grants and contributions of $0.4 million. As a result of State imposed drought conservation efforts, $1.1 million decrease in cost of water purchase is primarily offset by corresponding $1.1 million decrease in charges for services.

 Wastewater program revenues exceeded expenses by $2.3 million compared to prior fiscal year's decrease of $1.5 million. This $3.8 million net increase is primarily due to revenue increases of $2.2 million in sales of wastewater services, expense decreases of $1.8 million in pension expense, and $0.6 million decrease in administrative expenses, offset by an expense increase of $1.4 million in overall contracted services.

 Golf Course program revenues exceeded expenses by $0.7 million compared to prior fiscal year's increase of $0.4 million. This $0.3 million net increase is primarily due to revenue increases of $2.8 million predominantly resulting from an increase in food & beverage and pro shop sales and $0.8 million in other revenue primarily due to management agreement profit sharing, offset by an expense increase of $2.3 million in contracted services primarily due to an increase in management fees and a revenue decrease of $1.0 million in federal assistance for COVID-19 relief received in the prior fiscal year.

 Transportation program revenues exceeded expenses by $0.2 million compared to prior fiscal year's increase of $0.6 million. This $0.4 million net decrease is primarily due to revenue decrease of $0.5 million in operating grants and contributions predominantly from Transportation Development Act (TDA) Article 8a and increase in expense of $0.5 million in contracted services predominantly due to transportation 12 Item No.7I

13 contract and administrative support, offset by revenue increase of $0.3 million in fees for service.

 Solid Waste Management program revenues exceeded expenses by $0.7 million compared to prior fiscal year's increase of $0.4 million. This $0.3 million net increase is primarily due to revenue increase of $0.3 million in recycling fees and expense decrease of $0.2 million in contracted services, offset by revenue decrease of $0.2 million from non-recurring reimbursement for waste hauler audit settlement costs received in the prior fiscal year.

 Theatres program revenues exceeded expenses by $0.1 million compared to prior fiscal year's increase of $1.2 million. This $1.1 million net decrease is primarily due to expense increases due to re-opening of the theatres of $3.1 million in salaries and benefits, including pension and other post-employment benefits, $0.8 million in contracted services, offset by revenue increase of $1.6 million in federal assistance for COVID-19 relief and $1.3 million in theatre rental and fees attributed to the re- opening of the theatre.

As shown on the following charts, Water and Wastewater programs have the greatest total expenses with $27.3 million and $21.0 million, respectively, out of $70.1 million in total business-type expenses. For all business-type activities, charges for services provide the largest share of revenues (87.6 percent), except for the Theatres and Transportation programs with revenues primarily from COVID-19 relief federal assistance and State of California Transportation Development Act funds, respectively.

$- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0Water Wastewater Golf Course Transportation Solid WasteManagementTheatres$31.6 $23.4 $8.8 $7.4 $2.2 $5.2 $27.3 $21.0 $8.1 $7.2 $1.4 $5.1 Program Revenues and Expenses - Business-type Activities(in millions) Program Revenue Expenses 13 Item No.7I

14 FINANCIAL ANALYSIS OF CITY FUNDS

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

At the end of fiscal year 2021-22, City governmental funds reported a combined ending fund balance of $222.2 million, an increase of $3.3 million in comparison with the prior fiscal year balance of $218.9 million, as restated (refer to Note 16). The increase in fund balance is primarily due to increases of $3.1 million in General Fund, $1.8 million in State Gas Tax Fund, and $0.5 million increase in other governmental funds, offset by decreases of $1.1 million in Capital Improvements Fund and $1.0 million in Thousand Oaks Housing Successor Fund. Approximately $214.1 million (96.3 percent) consists of $109.1 million in assigned fund balance, $56.4 million in restricted fund balance, and $48.6 million in committed fund balance. The remaining fund balance is in nonspendable and unassigned. Refer to pages 29-38 for more detail of governmental funds.

General Fund – Fund Balance Analysis

The General Fund is the chief operating fund of the City. As of June 30, 2022, ending fund balance increased $3.1 million compared to prior fiscal year’s increase of $23.5 million, from $163.0 million to $166.2 million.

14 Item No.7I

15 General Fund’s fund balance consists of $1.2 million in funds nonspendable for inventories and loans and notes receivable; $20.1 million in funds restricted to Section 115 Pension Rate Stabilization Trust Fund; $46.3 million in funds committed to capital projects, grant endowments, emergency reserve, and working capital reserve; and $88.0 million in funds assigned for community development, compensated absences, continuing appropriations, culture and leisure, general government, legal contingency, loans and notes receivable, public building replacement/maintenance, public safety, and transportation. The remaining $10.6 million is unassigned. Refer to page 77 for more detail of fund balance.

Below is a five-year trend on the General Fund:

2021-22 2020-21 2019-20 2018-19 2017-18Revenues 93,434,915$ 102,545,488$ 97,692,262$ 89,292,324$ 83,766,893$ Expenditures (87,789,727) (79,066,213) (84,665,365) (73,375,220) (78,029,455) Other financing sources (uses) (2,520,158) 24,403 (723,274) (4,782,089) (4,799,832) Surplus/(deficit) 3,125,030 23,503,678 12,303,623 11,135,015 937,606Fund balance - beginning *163,037,299 139,529,721 127,212,452 116,077,437 115,139,831 Fund balance - ending 166,162,329$ 163,033,399$ 139,516,075$ 127,212,452$ 116,077,437$ Fund balance categories:Nonspendable1,187,695$ 1,130,616$ 1,080,545$ 2,317,357$ 2,269,250$ Restricted20,115,837 23,238,029 18,974,851 18,222,316 - Committed46,282,903 53,703,306 31,986,843 37,881,913 40,743,359 Assigned87,975,966 83,699,079 81,255,371 68,175,670 72,064,828 Unassigned10,599,928 1,262,369 6,218,465 615,196 1,000,000 Fund balance166,162,329$ 163,033,399$ 139,516,075$ 127,212,452$ 116,077,437$ * FY 2021-22 beginning fund balance restated. Refer to Note 16 for details.Changes to General Fund - Fund Balance by Fiscal Year

General Fund – Revenue and Expenditure Analysis

General Fund Revenues, including transfers in, and proceeds from sale of property for fiscal year 2021-22 are $94.6 million, a decrease of $9.4 million, or 9.1 percent, compared to prior fiscal year. The chart below compares General Fund revenues for current and prior fiscal years followed by key information.
15 Item No.7I

16 Fiscal Year 2021-22Fiscal Year 2020-21Variance Over/(Under) Prior Fiscal YearProperty tax 14,257,024$ 13,813,829$ 443,195$ 3.2% 15.1%Property tax - in lieu of VLF 13,952,024 13,642,611 309,413 2.3% 14.7%Sales tax 38,071,482 34,462,168 3,609,314 10.5% 40.2%Transient occupancy tax 4,503,872 2,712,668 1,791,204 66.0% 4.8%Franchise tax 7,235,925 7,262,329 (26,404) -0.4% 7.6%Property transfer tax 1,628,975 1,465,971 163,004 11.1% 1.7%Business tax 2,518,518 2,269,500 249,018 11.0% 2.7%Licenses & permits 4,907,670 4,686,881 220,789 4.7% 5.2%Fines and forfeitures 961,574 765,158 196,416 25.7% 1.0%Use of money & property (11,467,575) 4,909,709 (16,377,284) -333.6% -12.1%Charges for services 7,200,339 6,766,180 434,159 6.4% 7.6%Intergovernmental revenue 8,129,943 8,580,248 (450,305) -5.2% 8.6%Other revenue 1,535,144 1,208,236 326,908 27.1% 1.6%Other financing sources 1,175,333 1,503,944 (328,611) -21.8% 1.3%Total Revenues 94,610,248$ 104,049,432$ (9,439,184)$ -9.1% 100.0%% of Total% of Increase/ (Decrease) Over Prior Fiscal YearComparison of General Fund Revenues

 Sales tax increased $3.6 million primarily due to pent up consumer demand as COVID-19 pandemic restrictions became more relaxed and overall higher sales prices.

 Transient occupancy tax increased $1.8 million as travel and tourism continue to recover from COVID-19 travel restrictions.

 Property tax increased $0.4 million primarily due to increase in assessed valuation.

 Charges for current services increased $0.4 million primarily due to $0.6 million increase in various planning fees and permits, offset by $0.1 million decrease in cost allocation.

 Use of money and property decreased $16.4 million primarily due to $9.1 million decrease in the fair market value adjustment and $7.4 million decrease in investment income related to the Section 115 Pension Rate Stabilization Trust Fund.

 Intergovernmental revenue decreased $0.5 million primarily due to $2.3 million decrease in non-recurring reimbursement from CARES Act to reimburse expenditures incurred in response to the COVID-19 pandemic, offset by increase of $2.0 million in non-recurring revenues from American Rescue Plan Act (ARPA) funding.

16 Item No.7I

17 General Fund Expenditures, including transfers out, for fiscal year 2021-22 increased $10.9 million, or 13.6 percent compared to prior fiscal year. The chart below compares General Fund expenditures for the last two fiscal years followed by key information.

Fiscal Year 2021-22Fiscal Year 2020-21Variance Over/(Under) Prior Fiscal YearGeneral government $ 23,478,232 $ 20,654,867 2,823,365$ 13.7% 25.7%Public safety 30,202,011 29,778,413 423,598 1.4% 33.0%Transportation 10,099,596 9,186,002 913,594 9.9% 11.0%Community development 12,220,981 10,815,510 1,405,471 13.0% 13.4%Culture and leisure 1,706,131 4,652,139 (2,946,008) -63.3% 1.9%Capital outlay 10,082,776 3,979,282 6,103,494 153.4% 11.0%Other financing uses 3,695,491 1,479,541 2,215,950 149.8% 4.0%Total Expenditures 91,485,218$ 80,545,754$ 10,939,464$ 13.6% 100.0%Comparison of General Fund Expenditures% of Total% of Increase/ (Decrease) Over Prior Fiscal Year

 Capital outlay expenditures increased $6.1 million primarily due to $8.8 million for the purchase of land for affordable housing, offset by the completion of projects in the prior fiscal year including $1.4 million for Goebel Center roof and mechanical systems upgrades and $0.7 million for Teen Center roof and mechanical systems upgrades.

 General government expenditures increase $2.8 million primarily due to $1.0 million increase in general liability claims, $0.6 million increase in salaries and benefits, $0.4 million increase in professional and contractual services, and $0.3 million increase in equipment and building repairs.

 Other financing uses increased $2.2 million primarily due to non-recurring $2.5 million transfer out to Capital Improvement Fund for pavement overlay and slurry projects.

 Community development expenditures increased $1.4 million primarily due to $1.7 million increase in professional and contractual services, offset by $0.2 million decrease in equipment and building repairs.

 Transportation expenditures increased $0.9 million primarily due to $0.5 million increase in fuel and $0.2 million in various contracted services.

 Culture and leisure expenditures decreased $2.9 million primarily due to $2.8 million non-recurring grant to CRPD for improvements to the Teen and Adult Community centers completed in the prior fiscal year.

17 Item No.7I

18 Other Major Governmental Funds

Library Fund

The Library Fund provides for the operation of the City’s library system. Property taxes and other revenues are restricted for library operations, maintenance, and capital expenditures.

The Library Fund fund balance increased $0.1 million compared to an increase of $0.9 million in the prior fiscal year. The net decrease of $0.8 million is primarily due to $0.6 million increase in salaries and benefits attributed to reopening after COVID-19 closures and $0.3 million increase in building repairs and maintenance.

State Gas Tax Fund

The State Gas Tax Fund accounts for revenues derived from gasoline purchases which are restricted for the construction and maintenance of City streets and other street-related projects.

The State Gas Tax Fund fund balance increased $1.8 million compared to a decrease of $2.2 million in the prior fiscal year. The net increase of $4.0 million is primarily due to decrease of $2.8 million in capital expenditures for street-related projects and increase of $0.3 million in Highway Users Tax revenue.

Capital Improvements Fund

The Capital Improvements Fund accounts for developer impact fee revenues and the Successor Agency revenue bond proceeds, which are used to finance road improvements, bridge improvements, and undergrounding of utilities. The Fund also accounts for capital facilities fees restricted for public facilities.

The Capital Improvements Fund fund balance decreased $1.1 million, compared to prior fiscal year’s decrease of $3.1 million. The net increase of $2.0 million is primarily due to non-recurring transfer in from General Fund of $2.5 million for pavement overlay and slurry projects, offset by a $0.7 million increase in expenditures for various capital projects.

Thousand Oaks Housing Successor Fund

The Thousand Oaks Housing Successor Fund accounts for specific revenues that are legally restricted to expenditures for housing functions performed by the City. Due to the dissolution of the former Redevelopment Agency on February 1, 2012, the loans and notes were transferred to the Thousand Oaks Housing Successor Fund (refer to Note 15).

The Thousand Oaks Housing Successor Fund fund balance decreased $1.0 million, compared to prior fiscal year’s increase of $0.2 million. The net decrease of $1.2 million is primarily due to $1.2 million increase in capital outlay expenditures for the purchase of land for affordable housing.
18 Item No.7I

19 Proprietary funds

The City’s proprietary funds provide the same type of information found in the government-wide financial statements in greater detail.

Details on net position for the Water Utility, Wastewater Utility, Golf Course, Transportation, Solid Waste Management, and Theatres funds are provided below.

Change inUnrestricted Unrestricted Total Net Change in TotalFund Net Position Net Position Position Net PositionWater Utility 38,282,809$ (2,266,262)$ 91,035,737$ 2,033,977$ Wastewater Utility 48,797,522 2,530,540 153,775,729 (244,163) Golf Course 174,135 1,047,583 6,719,677 666,942 Transportation (606,291) (313,798) 7,447,385 (105,904) Solid Waste Management 3,737,970 507,433 7,476,501 427,620 Theatres (1,106,844) (75,340) (880,533) 233,229 Total89,279,301$ 1,430,156$ 265,574,496$ 3,011,701$ Proprietary FundsFiscal Year Ended June 30, 2022

Other factors concerning the finances of these six funds have been addressed in the discussion of the City’s business-type activities on pages 12-14. Proprietary financial statements can be found on pages 39-44.

BUDGETARY HIGHLIGHTS

General Fund

The General Fund budget and actual report can be found on page 35. The $7.1 million change in fund balance between the original and final budget is the result of City Council and City Manager approved budget adjustments. Expenditure budget adjustments of $8.5 million include the following major increases: $4.1 million for encumbrance carryovers, $1.0 million for capital project carryovers, $1.5 million grant CRPD for construction of the Paige Lane Park, and $1.2 million for the Lawrence Drive and Teller Road Intersection Improvements Project. Provided on the following page is a more detailed summary of budget and actual, with expenditures shown by category as opposed to activity followed by key information.

19 Item No.7I

20 Original Budget Final Budget ActualFinal Budget vs. Actual % VarianceRevenues:Sales tax32,660,000$ 32,660,000$ 38,071,481$ 5,411,481$ 16.6%Property tax14,013,188 14,013,188 14,257,023 243,835 1.7%Property tax - in lieu of VLF13,996,000 13,996,000 13,952,024 (43,976) -0.3%Transient occupancy tax3,000,000 3,000,000 4,503,872 1,503,872 50.1%Franchise tax6,880,600 6,880,600 7,235,925 355,325 5.2%Property transfer tax1,050,000 1,050,000 1,628,975 578,975 55.1%Other taxes94,500 94,500 114,355 19,855 21.0%Licenses and permits6,117,408 6,117,408 7,426,188 1,308,780 21.4%Fines and forfeitures770,028 770,028 961,574 191,546 24.9%Use of money and property1,933,925 1,953,925 (11,467,575) (13,421,500) -686.9%Charges for current services7,181,000 8,071,000 7,200,339 (870,661) -10.8%Intergovernmental revenue3,502,670 3,571,890 8,129,943 4,558,053 127.6%Other396,050 516,050 1,420,791 904,741 175.3%Proceeds from sale of property40,000 40,000 20,530 (19,470) -48.7%Transfers in1,352,400 1,602,400 1,154,803 (447,597) -27.9%Total revenues92,987,769 94,336,989 94,610,248 273,259 0.3%Expenditures:Salaries and benefits36,519,394 36,419,394 34,647,639 1,771,755 4.9%Maintenance & operations27,297,791 25,415,803 13,847,431 11,568,372 45.5%Public safety contract31,597,700 31,597,700 29,211,881 2,385,819 7.6%Operating total95,414,885 93,432,897 77,706,951 15,725,946 16.8%Capital/facility improvements4,115,150 14,563,539 10,082,776 4,480,763 30.8%Transfers out5,672,648 5,672,648 3,695,491 1,977,157 34.9%Total expenditures105,202,683 113,669,084 91,485,218 22,183,866 19.5%Net change in fund balance (12,214,914) (19,332,095) 3,125,030 22,457,125 Fund balance-beginning * 163,037,299 163,037,299 163,037,299 - Fund balance-ending 150,822,385$ 143,705,204$ 166,162,329$ 22,457,125$ * Beginning fund balance restated. Refer to Note 16 for details.

General Fund - Budget and ActualFiscal Year Ended June 30, 2022

Revenues, including transfers in, totaled $0.3 million (0.3 percent) higher than final budgetary estimates, primarily due to the following:

 Sales tax increased $5.4 million primarily due to pent up consumer demand as COVID-19 pandemic restrictions became more relaxed and overall higher sales prices.

 Intergovernmental revenues increased $4.6 million primarily due to non-recurring revenues of $7.0 million, $4.0 million more than budgeted, from ARPA to replace lost revenue and address impacts attributed to the COVID-19 pandemic, as well as $0.4 million federal funding for Woolsey fire damages.

 Transient occupancy tax increased $1.5 million primarily due to overall increase in hotel occupancy with the resumption of travel as COVID-19 pandemic restrictions were lifted.

 Licenses and permits increased $1.3 million primarily due to increase in building permits attributed to demand in construction activity.

 Use of money and property decreased $13.4 million primarily due to $10.7 million decrease in the fair value adjustment of investments and $3.1 million decrease in Section 115 Pension Rate Stabilization Trust Fund investment income.

20 Item No.7I

21 Expenditures, including transfers out, totaled $22.2 million (19.5 percent) lower than final budget primarily due to the following:

 Maintenance and operations expenditure savings of $11.6 million primarily due to lower than anticipated expenditures of $6.6 million in professional and contractual services, $2.9 million in construction services, $1.7 million in overall materials and supplies, $0.8 million in equipment and building repairs, and $0.4 million in travel and training, partially offset by $0.4 million decrease in chargebacks.

 Capital projects in progress or not yet started totaled $4.5 million.

 Public safety contract savings of $2.4 million primarily due to overall budget savings in the law enforcement contract attributed to vacant positions.

 Salaries and benefits savings of $1.8 million primarily due to vacant positions.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital assets

Investments in capital assets for governmental and business-type activities as of June 30, 2022, totaled $636.9 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, equipment, infrastructure, intangibles, and construction in progress. The total increase in capital assets for fiscal year 2021-22 is $6.6 million, which represents a 1.4 percent increase for governmental activities and a 0.2 percent increase for business-type activities. Additional information on the City’s capital assets can be found on pages 70-75 in the notes to basic financial statements. Capital assets are summarized below and on the following page:

Major capital asset events during fiscal year 2021-22 included the following:

 The $9.2 million increase in governmental activity land is primarily due to $10.0 million purchase of 384 Erbes Rd for the future development of affordable housing and $1.4 million from donated open space, offset by $2.5 million decrease due to the transfer of open space parcels to Conejo Open Space Conservation Agency (COSCA).

2022 2021 2022 2021 2022 2021Land 142,477,059$ 133,227,700$ 5,487,686$ 5,487,686$ 147,964,745$ 138,715,386$ Intangibles, non-depreciable 848,017 848,017 133,538 133,538 981,555 981,555 Buildings and improvements 97,760,545 101,633,429 153,140,086 157,358,069 250,900,631 258,991,498 Equipment 2,141,873 2,502,127 4,699,470 5,262,160 6,841,343 7,764,287 Intangibles, depreciable 48,087 100,496 10,179 14,083 58,266 114,579 Infrastructure 214,241,881 216,541,503 - - 214,241,881 216,541,503 Construction in progress 7,137,224 3,444,439 8,817,637 3,743,108 15,954,861 7,187,547 Total capital assets, net 464,654,686$ 458,297,711$ 172,288,596$ 171,998,644$ 636,943,282$ 630,296,355$ Capital Assets (net of accumulated depreciation)TotalJune 30, 2022Governmental ActivitiesBusiness-type Activities 21 Item No.7I

22  The $3.7 million net increase in governmental activity construction in progress is primarily due to $6.5 million increase for the addition of uncompleted projects including pavement overlay and Lawrence Drive and Teller Road improvements; offset by $2.8 million decrease that resulted from the completion of Willow Lane improvements, Los Feliz Drive sidewalks, and Rancho Road sidewalks.

 The $2.3 million net decrease in governmental activity infrastructure is primarily due to $12.0 million in depreciation of existing capital assets, offset by $9.7 million increase due to the addition of several projects including Willow Lane improvements, Rancho Road sidewalk improvements, Los Feliz Drive sidewalks improvements and citywide curb ramp improvements.

 The $5.1 million net increase in business-type activity construction in progress is primarily due to $5.5 million increase for the addition of several uncompleted projects including upgrades to program logic controllers and pressure reducing station improvements, Fats, Oils, Grease Station improvements, Hill Canyon Treatment Plant retaining wall, Unit W improvements, and solar canopies at the Municipal Service Center (MSC), offset by $0.4 million for the completion of projects including Willow Lane utility improvements, Los Feliz Drive utility improvements and water interconnect improvements.

 The $4.2 million net decrease in business-type activity buildings and improvements is primarily due to $8.5 million in depreciation of existing capital assets, offset by $4.2 million for the completion of several projects including Willow Lane utility improvements, poly-butylene replacement, Los Feliz Drive utility improvements, La Granada pump station, valve replacements, and water interconnect improvements.

Long-term debt

At the end of fiscal year 2021-22, the City has total bonded debt outstanding of $8.2 million and total loans outstanding of $2.0 million. The $8.2 million bonded debt, or 1.3 percent of governmental activities total net position, is secured by the City’s obligation to pay the Public Financing Authority (PFA) lease payments of occupancy and use of specified properties. Bonded debt decreased by $0.8 million, primarily due to principal reduction as the result of on-going debt service payments. Loan debt decreased by $1.9 million primarily due to principal reduction as the result of the required loan repayment.

The loan will be paid off in fiscal year 2022-23.

Standard and Poor’s has issued a rating of AA+ in 2020 for the 2020 Refunding Lease Revenue Bonds.

22 Item No.7I

23 Additional information on long-term liabilities can be found on pages 78-80 in the notes to the basic financial statements. Outstanding debt is summarized below:

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

In the Southern California Association of Government’s (SCAG) December 2022 economic summit report, Ventura County was described as having the most sluggish economy in the greater Southern California region in terms of job growth, new housing, and consumer spending on retail goods and services. These factors could restrict the County’s ability to overcome the lack of labor force reinforcements, the persistence of inflation, and a potential recession.

Despite Ventura County’s economic outlook, the City has continued to see a steady improvement in sales tax, property tax, and transient occupancy tax receipts. On June 8, 2021, City Council adopted an Operating Budget and Capital Improvements Program Budget for fiscal years 2021-22 and 2022-23. Through long-term strategic financial planning, the City has sufficient resources to invest in the City Council’s Goals and “Top Ten” Priorities which include projects to assist the homeless (Project Homekey), affordable housing, and continued efforts to strengthen environmental sustainability.

These projects will aid in addressing some of the challenges articulated in the SCAG economic report.

 Actual fiscal year 2021-22 General Fund operating revenues, not including transfers in and proceeds from the sale of property, were $0.7 million (0.8 percent) higher than the final budget of $92.7 million. Staff budgeted $92.1 million for fiscal year 2022-23 based on information known at that time. Fiscal year 2022-23 revenue budget is an overall 0.5 percent increase compared to FY 2021-22.

 Actual fiscal year 2021-22 General Fund sales tax revenue of $38.1 million was $5.4 million (16.6 percent) greater than budgeted sales tax of $32.7 million. Based on data provided by the City’s sales tax consultant during the biennial budget process, staff projected $34.1 million (4.3 percent increase) for FY 2022-23.

2022 2021 2022 2021 2022 2021Lease revenue bonds* 8,202,778$ 8,960,520$ -$ -$ 8,202,778$ 8,960,520$ 2000 state loan - - 1,981,626 3,911,155 1,981,626 3,911,155 Total outstanding debt 8,202,778$ 8,960,520$ 1,981,626$ 3,911,155$ 10,184,404$ 12,871,675$ *Net of unamortized issue premiums.June 30, 2022TotalGovernmental ActivitiesBusiness-type ActivitiesOutstanding Debt 23 Item No.7I

24  Actual fiscal year 2021-22 General Fund property tax revenues, including property transfer tax, was $15.9 million (5.5 percent) greater than budgeted property tax of $15.1 million. Based on data provided by the City’s property tax consultant during the biennial budget process, staff projected $15.3 million (1.5 percent increase) for fiscal year 2022-23.

 On March 28, 2022, the Governor issued an Executive Order declaring a Water Shortage Emergency. Staff has been working diligently to monitor and patrol water usage throughout the City. This is anticipated to impact budgeted water revenues in fiscal year 2022-23.

The City continues to meet its actuarially required contribution towards its pension plan with California Public Employees’ Retirement System (CalPERS). As of the June 30, 2021 CalPERS Actuarial Valuation provided in July 2022, the City’s unfunded pension liability decreased $36.0 million from the previous year. The decrease in unfunded liability was primarily due to a 21.3 percent net return on investments, and the consistent additional payments the City has contributed.

The pension plan funded status on a market basis increased by 11.7 percent to 87.2 percent. The City has made significant strides in addressing its long-term pension unfunded liability by switching to a 15-year amortization schedule through the CalPERS Fresh Start Program projected to be paid off in fiscal year 2033-34, making additional contributions to the plan, and establishing an IRS Section 115 Trust in fiscal year 2018- 2019 with an initial contribution of $22.5 million, growing to $26.3 million at the end of fiscal year 2021-22.

On November 17, 2021, the CalPERS board adopted new actuarial assumptions based on the recommendations in the 2021 Experience Study and Review of Actuarial Assumptions. This study reviewed the retirement rates, terminations rates, mortality rates, rates of salary increases, and inflation assumption for public agencies. These new assumptions are incorporated in the actuarial valuation and impacted the required contribution for fiscal year 2023-24. The City’s employer contribution rate for fiscal year 2021-22 decreased to 29.91 percent (9.69 percent for employer normal cost and 20.22 percent for unfunded liability) from 30.298 percent. In fiscal year 2022-23, the employer contribution rate is 30.94 percent (9.51 percent for employer normal cost and 21.43 percent for unfunded liability), with a projected employer contribution rate of 30.63 percent (10.85 percent employer normal cost and 19.78 percent for unfunded liability) for fiscal year 2023-24.

Although the national and state economies have been significantly impacted by rising inflation and supply chain issues, the City continues to base its budget on its financial strategic plan and remains conservative moving forward due to the uncertain economic growth in Ventura County. City Council has been responsive to changes made over the past several years and has continued to ensure the City’s fiscal sustainability, proceeding into the next fiscal year with a structurally balanced budget.

24 Item No.7I

25 REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of City finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Thousand Oaks, 2100 Thousand Oaks Boulevard, Thousand Oaks, California 91362, or call (805) 449-2200, or e-mail [email protected]. This report is also available online at the City’s website at www.toaks.org.
25 Item No.7I

(SMALL TAB)

Basic Financial Statements

• Government-wide Financial Statements
• Governmental Fund Financial Statements
• Proprietary Fund Financial Statements
• Fiduciary Fund Financial Statement
• Notes to Basic Financial Statements

Item No.7I

(EXTRA-SMALL TAB)

Government-wide Financial Statements

Item No.7I

Governmental
Activities
Business-type
Activities Total

Assets:

Cash and investments (notes 1 and 2) $ 218,024,965 111,169,934 329,194,899 Receivables (notes 1 and 3):

Accounts 4,565,125 9,982,875 14,548,000 Accrued interest 10,535,492 316,389 10,851,881 Intergovernmental 13,789,462 1,550,357 15,339,819 Notes/loans 36,383,454 238,603 36,622,057 Internal balances 1,098,365 (1,098,365) - Inventories - supplies (note 1) 666,997 499,270 1,166,267 Prepaid items and other assets (note 1) - 247,057 247,057 Noncurrent assets:

Restricted cash and investments (notes 1 and 2) 22,114,490 6,221,453 28,335,943 Net pension asset 341,361 137,003 478,364 Capital assets (notes 1 and 4):

Land 142,477,059 5,487,686 147,964,745 Intangibles, non-depreciable 848,017 133,538 981,555 Buildings and improvements 173,436,184 323,254,645 496,690,829 Equipment 12,247,175 14,086,788 26,333,963 Intangibles, depreciable 1,054,442 521,324 1,575,766 Infrastructure 516,574,596 - 516,574,596 Construction in progress 7,137,224 8,817,637 15,954,861 Accumulated depreciation (389,120,011) (180,013,021) (569,133,032) Total assets 772,174,397 301,553,173 1,073,727,570 Deferred outflows of resources:

Deferred pension items 9,023,729 3,120,515 12,144,244 Deferred OPEB items 2,823,533 981,255 3,804,788 Total deferred outflows of resources 11,847,262 4,101,770 15,949,032 Liabilities:

Accounts payable (note 1) 14,775,025 6,715,208 21,490,233 Accrued interest (note 1) 24,883 26,752 51,635 Due to other agencies (note 1) 287,554 23,169 310,723 Unearned revenue (note 1) 42,351,324 11,608,809 53,960,133 Deposits (note 1) - 688,369 688,369 Noncurrent liabilities (note 7):

Due within one year (note 7) 4,295,090 2,747,488 7,042,578 Due in more than one year (note 7) 13,335,839 1,043,208 14,379,047 Net pension liability 24,658,139 8,488,975 33,147,114 Net OPEB liability 1,726,809 600,065 2,326,874 Total liabilities 101,454,663 31,942,043 133,396,706 Deferred inflows of resources:

Deferred pension items 21,432,865 7,402,841 28,835,706 Deferred OPEB items 2,778,776 965,699 3,744,475 Deferred lease related 485,056 - 485,056 Total deferred inflows of resources 24,696,697 8,368,540 33,065,237 Net position:

Net investments in capital assets 456,451,908 170,306,971 626,758,879 Restricted for:

Assessment districts 13,362,169 - 13,362,169 Culture and leisure 1,659,228 - 1,659,228 Public safety 261,966 - 261,966 Street related purposes 12,486,809 - 12,486,809 Community development 8,500,812 - 8,500,812 Debt service 321 - 321 Section 115 Pension Trust 20,115,837 6,221,453 26,337,290 Unrestricted 145,031,249 88,815,936 233,847,185 Total net position $ 657,870,299 265,344,360 923,214,659 See accompanying notes to basic financial statements.

CITY OF THOUSAND OAKS
Statement of Net Position
June 30, 2022
Primary Government
26 26
Item No.7I

Page 1 of 2 ends

Expenses
Charges for
Services
Operating Grants
and Contributions
Capital Grants
and Contributions
Functions/Programs
Primary Government:

Governmental activities:

General government $ 21,582,185 7,538,015 69,423 - Public safety 31,744,873 1,009,850 7,379,355 115,709 Transportation 27,718,815 6,302,734 8,143,603 5,717,075 Community development 11,045,568 6,982,353 2,380,126 254,694 Culture and leisure 10,529,731 232,728 674,894 27,406 Interest on long-term debt 323,350 - - - Total governmental activities 102,944,522 22,065,680 18,647,401 6,114,884 Business-type activities:

Water 27,324,795 31,146,135 420,936 - Wastewater 21,001,676 22,976,534 300,052 74,458 Golf Course 8,056,099 8,764,109 - - Transportation 7,162,472 1,564,698 5,786,088 - Solid Waste Management 1,420,892 2,161,822 - - Theatres 5,099,587 2,057,069 3,174,103 - Total business-type activities 70,065,521 68,670,367 9,681,179 74,458 Total Primary Government $ 173,010,043 90,736,047 28,328,580 6,189,342 General revenues:

Taxes:

Property tax
Property tax in-lieu of VLF
Sales taxes
Transient occupancy tax
Franchise taxes
Business tax
Property transfer tax
Other taxes
Unrestricted intergovernmental revenue
Gain/(loss) from sale of property
Proceeds from settlements
Contributions not restricted for specific programs
Investment earnings not restricted for specific programs Transfers, net (note 5)
Total general revenues and transfers
Change in net position
Net position - beginning, as restated (note 16)
Net position - ending
See accompanying notes to basic financial statements.

Program Revenues

CITY OF THOUSAND OAKS
Statement of Activities
Year ended June 30, 2022
27 27
Item No.7I

Page 2 of 2 ends

Governmental
Activities
Business-type
Activities Total
(13,974,747) - (13,974,747) (23,239,959) - (23,239,959) (7,555,403) - (7,555,403) (1,428,395) - (1,428,395) (9,594,703) - (9,594,703) (323,350) - (323,350) (56,116,557) - (56,116,557) - 4,242,276 4,242,276 - 2,349,368 2,349,368 - 708,010 708,010 - 188,314 188,314 - 740,930 740,930 - 131,585 131,585 - 8,360,483 8,360,483 (56,116,557) 8,360,483 (47,756,074) 26,156,296 - 26,156,296 13,952,024 - 13,952,024 38,071,482 - 38,071,482 4,503,872 - 4,503,872 7,235,925 - 7,235,925 2,221,656 - 2,221,656 1,628,975 - 1,628,975 114,355 - 114,355 146,351 - 146,351 (937,693) - (937,693) 27,233 - 27,233 20,625 - 20,625 (12,213,022) (5,519,369) (17,732,391) 230,013 (230,013) -
81,158,092 (5,749,382) 75,408,710
25,041,535 2,611,101 27,652,636
632,828,764 262,733,259 895,562,023
$ 657,870,299 265,344,360 923,214,659
Net (Expenses) Revenues and Changes in Net Position
Primary Government
28 28
Item No.7I

(EXTRA-SMALL TAB)

Governmental Fund Financial Statements

Item No.7I

Page 1 of 2 ends

General Fund Library State Gas Tax
Capital
Improvements
Assets
Assets:

Cash and investments $ 143,768,874 1,883,023 5,400,080 14,236,180 Receivables:

Accounts 2,386,128 162,690 - 746,668 Accrued interest 447,581 - 16,181 20,680 Intergovernmental 8,215,343 196,876 955,788 62,379 Lease receivable 520,603 - - - Notes/loans 520,698 - - - Interfund receivables 3,585,479 - - - Inventories - supplies 666,997 - - - Restricted cash and investments 20,115,837 - - - Total assets $ 180,227,540 2,242,589 6,372,049 15,065,907 Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:

Accounts payable $ 6,915,329 506,763 1,312,047 939,086 Due to other agencies 32,954 - - - Interfund payables - - - - Unearned revenue 5,852,210 4,217 - - Total liabilities 12,800,493 510,980 1,312,047 939,086 Deferred inflows of resources:

Lease related 485,056 - - - Unavailable revenue 779,662 72,381 - 746,668 Total deferred inflows of resources 1,264,718 72,381 - 746,668 Fund balances:

Nonspendable 1,187,695 - - - Restricted 20,115,837 1,659,228 5,060,002 7,426,807 Committed 46,282,903 - - - Assigned 87,975,966 - - 5,953,346 Unassigned 10,599,928 - - - Total fund balances 166,162,329 1,659,228 5,060,002 13,380,153 Total liabilities, deferred inflows of resources
and fund balances $ 180,227,540 2,242,589 6,372,049 15,065,907 See accompanying notes to basic financial statements.

CITY OF THOUSAND OAKS
Balance Sheet
Governmental Funds
June 30, 2022
29 29
Item No.7I

Page 2 of 2 ends

Thousand Oaks
Housing
Successor
Other
Governmental
Funds
Total
Governmental
Funds
1,902,113 39,554,004 206,744,274
121,551 627,485 4,044,522
9,457,257 563,338 10,505,037
- 4,359,076 13,789,462 - - 520,603 33,608,156 2,254,600 36,383,454
- - 3,585,479 - - 666,997 - 1,998,653 22,114,490 45,089,077 49,357,156 298,354,318
- 5,064,852 14,738,077 - 254,600 287,554 - 2,950,479 2,950,479 33,608,156 2,886,741 42,351,324
33,608,156 11,156,672 60,327,434
- - 485,056 9,451,728 4,296,406 15,346,845
9,451,728 4,296,406 15,831,901
- - 1,187,695 2,029,193 20,096,075 56,387,142
- 2,337,395 48,620,298 - 15,131,065 109,060,377 - (3,660,457) 6,939,471 2,029,193 33,904,078 222,194,983
45,089,077 49,357,156 298,354,318
30 30
Item No.7I

222,194,983$
464,654,686
15,688,206
11,847,262
7,270,863
(39,574,060)
(24,211,641)
657,870,299$
See accompanying notes to basic financial statements.

CITY OF THOUSAND OAKS
Reconciliation of the Governmental Funds Balance Sheet
June 30, 2022
to the Statement of Net Position
Deferred inflows represent an acquisition of net position that applies to a future period.

Deferred outflows represent a consumption of net position that applies to a future period.

Net position of governmental activities (page 28)
Capital assets, net of accumulated depreciation, used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Internal service funds are used by management to account for the cost of providing liability, workers' compensation, and vision insurance coverage on a citywide basis. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.

Long-term liabilities, including pension liabilities, OPEB, compensated absences, bonds payable, and interest payable, are not due and payable in the current period and, therefore, are not reported in the funds.

Other long-term assets, prepaid insurance and deferred revenue, are not available to pay for current-period expenditures and, therefore, are deferred in the funds.

Amounts reported for governmental activities in the statement of net position (page 28) are different because:

Total fund balances - total governmental funds (page 30) 31 31
Item No.7I

Page 1 of 2 ends

General Fund Library State Gas Tax
Capital
Improvements
Revenues:

Taxes $ 79,763,655 8,213,965 1,500,000 - Licenses and permits 7,426,188 - - - Fines and forfeitures 961,574 10,207 - - Use of money and property (11,467,575) 13,244 (168,041) 85,724 Charges for current services 7,200,339 56,283 - 938,909 Intergovernmental revenue 8,129,943 12,372 5,528,805 - Other 1,420,791 179,958 - 1,501 Total revenues 93,434,915 8,486,029 6,860,764 1,026,134 Expenditures:

Current:

General government 23,478,232 - - - Public safety 30,202,011 - - - Transportation 10,099,596 - 385,741 351,494 Community development 12,220,981 - - 14,420 Culture and leisure 1,706,131 8,261,961 - 480,000 Debt service:

Principal - - - - Interest - - - - Capital outlay 10,082,776 150,243 3,893,756 3,418,883 Total expenditures 87,789,727 8,412,204 4,279,497 4,264,797 Excess (deficiency) of revenues over (under)
expenditures 5,645,188 73,825 2,581,267 (3,238,663) Other financing sources (uses):

Transfers in (note 5) 1,154,803 - - 2,500,000 Transfers out (note 5) (3,695,491) - (785,911) (375,601) Proceeds from sale of property 20,530 - - - Total other financing sources (uses) (2,520,158) - (785,911) 2,124,399 Net change in fund balance 3,125,030 73,825 1,795,356 (1,114,264) Fund balance - beginning, as restated 163,037,299 1,585,403 3,264,646 14,494,417 Fund balance - ending $ 166,162,329 1,659,228 5,060,002 13,380,153 See accompanying notes to basic financial statements.

CITY OF THOUSAND OAKS
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year ended June 30, 2022
32 32
Item No.7I

Page 2 of 2 ends

Thousand Oaks
Housing
Successor
Other
Governmental
Funds
Total
Governmental
Funds
- 4,063,188 93,540,808 - - 7,426,188 - 28,351 1,000,132 291,916 127,204 (11,117,528)
- 5,885,141 14,080,672 - 3,402,206 17,073,326 15,000 918,754 2,536,004
306,916 14,424,844 124,539,602
- 25,967 23,504,199 - 1,545,120 31,747,131 - 7,031,006 17,867,837 138,957 848,693 13,223,051
- - 10,448,092 - 675,000 675,000 - 325,600 325,600 1,200,000 4,951,014 23,696,672
1,338,957 15,402,400 121,487,582
(1,032,041) (977,556) 3,052,020
- 1,438,221 5,093,024 - (6,008) (4,863,011) - - 20,530 - 1,432,213 250,543
(1,032,041) 454,657 3,302,563
3,061,234 33,449,421 218,892,420
2,029,193 33,904,078 222,194,983
33 33
Item No.7I

3,302,563$
7,294,573
(937,598)
4,863,915
757,742
10,298,908
(538,568)
25,041,535$
See accompanying notes to basic financial statements.

Change in net position of governmental activities (page 28) The issuance of long-term debt (i.e., bonds, loans payable) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The amount is the net effect of these differences in the treatment of long-term debt and related items.

Some expenses (i.e., long and short-term compensated absences and insurance) reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Internal service funds are used by management to account for the cost of providing general liability, workers' compensation, and vision insurance coverage on a City-wide basis. The net revenue of certain activities of internal service funds is reported with governmental activities.

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase/(decrease) net position.

Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays were exceeded by depreciation in the current period.

Net change in fund balances - total governmental funds (page 33) Amounts reported for governmental activities in the statement of activities (page 28) are different because:

CITY OF THOUSAND OAKS
Reconciliation of Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds Year Ended June 30, 2022
to the Statement of Activities
34 34
Item No.7I

Original Budget Final Budget Actual
Variance with
Final Budget -
Positive (Negative)
Revenues:

Taxes $ 71,694,288 71,694,288 79,763,655 8,069,367 Licenses and permits 6,117,408 6,117,408 7,426,188 1,308,780 Fines and forfeitures 770,028 770,028 961,574 191,546 Use of money and property 1,933,925 1,953,925 (11,467,575) (13,421,500) Charges for current services 7,181,000 8,071,000 7,200,339 (870,661) Intergovernmental revenue 3,502,670 3,571,890 8,129,943 4,558,053 Other 396,050 516,050 1,420,791 904,741 Total revenues 91,595,369 92,694,589 93,434,915 740,326 Expenditures:

Current:

General government 26,452,241 28,137,259 23,478,232 4,659,027 Public safety 33,013,224 33,118,320 30,202,011 2,916,309 Transportation 11,730,540 12,872,538 10,099,596 2,772,942 Community development 22,138,386 17,103,916 12,220,981 4,882,935 Culture and leisure 2,080,494 2,200,864 1,706,131 494,733 Capital outlay 4,115,150 14,563,539 10,082,776 4,480,763 Total expenditures 99,530,035 107,996,436 87,789,727 20,206,709 Excess (deficiency) of revenues over
(under) expenditures (7,934,666) (15,301,847) 5,645,188 20,947,035 Other financing sources (uses):

Transfers in (note 5) 1,352,400 1,602,400 1,154,803 (447,597) Transfers out (note 5) (5,672,648) (5,672,648) (3,695,491) 1,977,157 Proceeds from sale of property 40,000 40,000 20,530 (19,470) Total other financing sources (uses) (4,280,248) (4,030,248) (2,520,158) 1,510,090 Net change in fund balance (12,214,914) (19,332,095) 3,125,030 22,457,125 Fund balance - beginning, as restated 163,037,299 163,037,299 163,037,299 - Fund balance - ending $ 150,822,385 143,705,204 166,162,329 22,457,125 See accompanying notes to basic financial statements.

Budgeted Amounts

CITY OF THOUSAND OAKS
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund
Year ended June 30, 2022
35 35
Item No.7I

Original Budget Final Budget Actual
Variance with
Final Budget -
Positive (Negative)
Revenues:

Taxes $ 8,228,000 8,228,000 8,213,965 (14,035) Fines and forfeitures 22,500 22,500 10,207 (12,293) Use of money and property 22,500 22,500 13,244 (9,256) Charges for current services 72,500 72,500 56,283 (16,217) Intergovernmental revenue - - 12,372 12,372 Other 116,000 116,000 179,958 63,958 Total revenues 8,461,500 8,461,500 8,486,029 24,529 Expenditures:

Current:

Culture and leisure 8,715,837 8,741,101 8,261,961 479,140 Capital outlay 2,623,000 2,993,000 150,243 2,842,757 Total expenditures 11,338,837 11,734,101 8,412,204 3,321,897 Excess (deficiency) of revenues over
(under) expenditures (2,877,337) (3,272,601) 73,825 3,346,426 Other financing sources (uses):

Transfers in (note 5) 1,377,336 1,377,336 - (1,377,336) Total other financing sources (uses) 1,377,336 1,377,336 - (1,377,336) Net change in fund balance (1,500,001) (1,895,265) 73,825 1,969,090 Fund balance - beginning 1,585,403 1,585,403 1,585,403 - Fund balance - ending $ 85,402 (309,862) 1,659,228 1,969,090 See accompanying notes to basic financial statements.

Budgeted Amounts

CITY OF THOUSAND OAKS
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Fund
Year ended June 30, 2022
36 36
Item No.7I

Original Budget Final Budget Actual
Variance with
Final Budget -
Positive (Negative)
Revenues:

Taxes $ 1,500,000 1,500,000 1,500,000 - Use of money and property 12,200 12,200 (168,041) (180,241) Intergovernmental revenue 5,673,800 5,673,800 5,528,805 (144,995) Total revenues 7,186,000 7,186,000 6,860,764 (325,236) Expenditures:

Current:

Transportation 2,639,000 3,463,873 385,741 3,078,132 Capital outlay 3,862,000 3,862,000 3,893,756 (31,756) Total expenditures 6,501,000 7,325,873 4,279,497 3,046,376 Excess (deficiency) of revenues over
(under) expenditures 685,000 (139,873) 2,581,267 2,721,140 Other financing sources (uses):

Transfers out (note 5) (970,700) (970,700) (785,911) 184,789 Total other financing sources (uses) (970,700) (970,700) (785,911) 184,789 Net change in fund balance (285,700) (1,110,573) 1,795,356 2,905,929 Fund balance - beginning 3,264,646 3,264,646 3,264,646 - Fund balance - ending $ 2,978,946 2,154,073 5,060,002 2,905,929 See accompanying notes to basic financial statements.

Budgeted Amounts

CITY OF THOUSAND OAKS
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual State Gas Tax Fund
Year ended June 30, 2022
37 37
Item No.7I

Original Budget Final Budget Actual
Variance with
Final Budget -
Positive (Negative)
Revenues:

Use of money and property $ 275,500 275,500 291,916 16,416 Other 15,000 15,000 15,000 - Total revenues 290,500 290,500 306,916 16,416 Expenditures:

Current:

Community development 3,084,384 1,894,384 138,957 1,755,427 Capital outlay - 1,200,000 1,200,000 - Total expenditures 3,084,384 3,094,384 1,338,957 1,755,427 Excess (deficiency) of revenues over
(under) expenditures (2,793,884) (2,803,884) (1,032,041) 1,771,843 Net change in fund balance (2,793,884) (2,803,884) (1,032,041) 1,771,843 Fund balance - beginning 3,061,234 3,061,234 3,061,234 - Fund balance - ending $ 267,350 257,350 2,029,193 1,771,843 See accompanying notes to basic financial statements.

Budgeted Amounts

CITY OF THOUSAND OAKS
Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Thousand Oaks Housing Successor Fund
Year ended June 30, 2022
38 38
Item No.7I

(EXTRA-SMALL TAB)

Proprietary Fund Financial Statements

Item No.7I

Page 1 of 2 ends

Water Utility
Wastewater
Utility Golf Course Transportation
Assets:

Current assets:

Cash and investments $ 42,077,758 53,436,287 1,512,407 5,930,178 Receivables:

Accounts 5,136,089 2,903,501 425,563 543,452 Accrued interest 120,507 155,504 4 16,864 Intergovernmental - 332,754 - 1,217,603 Notes/loans - 238,603 - - Inventories - supplies 272,981 146,948 79,341 - Prepaid items - 87 104,936 - Total current assets 47,607,335 57,213,684 2,122,251 7,708,097 Noncurrent assets:

Restricted cash and investments 2,101,130 3,523,344 - 304,342 Net pension asset 7,941 15,642 - 4,305 Capital assets:

Land 2,060,142 1,463,180 1,217,610 -
Intangibles, non-depreciable 45,473 88,065 - - Buildings and improvements 82,028,781 219,023,777 12,994,847 5,070,820 Equipment 2,185,871 4,859,173 344,849 5,982,778 Intangibles, depreciable 490,418 - - 30,906 Construction in progress 5,511,745 1,851,128 - 1,412,658 Less accumulated depreciation (41,670,632) (123,848,834) (8,011,764) (4,747,828) Total noncurrent assets 52,760,869 106,975,475 6,545,542 8,057,981 Total assets $ 100,368,204 164,189,159 8,667,793 15,766,078 Deferred outflow of resources:

Deferred pension items 972,254 1,438,038 - 141,163 Deferred OPEB items 313,895 461,901 - 44,136 Total deferred outflow of resources $ 1,286,149 1,899,939 - 185,299 Liabilities:

Current liabilities:

Accounts payable $ 3,491,162 1,261,161 546,527 836,377 Accrued interest - 26,752 - - Claims payable - - - - Due to other agencies - - 23,169 - Interfund payables - - 635,000 - Unearned revenue 317,891 - 743,420 6,773,341 Deposits 687,544 825 - - Compensated absences 232,441 371,129 - 42,735 Notes/loans payable - 1,981,626 - - Total current liabilities 4,729,038 3,641,493 1,948,116 7,652,453 Noncurrent liabilities:

Claims payable - - - - Compensated absences 350,911 493,233 - 57,580 Net pension liability 2,714,748 4,007,486 - 387,821 Net OPEB liability 192,185 282,788 - 26,930 Total noncurrent liabilities 3,257,844 4,783,507 - 472,331 Total liabilities $ 7,986,882 8,425,000 1,948,116 8,124,784 Deferred inflow of resources:

Deferred pension items 2,322,815 3,433,790 - 335,772 Deferred OPEB items 308,919 454,579 - 43,436 Total deferred inflow of resources $ 2,631,734 3,888,369 - 379,208 Net position:

Net investments in capital assets 50,651,798 101,454,863 6,545,542 7,749,334 Restricted for Section 115 Pension Trust 2,101,130 3,523,344 - 304,342 Unrestricted 38,282,809 48,797,522 174,135 (606,291) Total net position (deficit) $ 91,035,737 153,775,729 6,719,677 7,447,385 See accompanying notes to basic financial statements.

Business-type Activities

CITY OF THOUSAND OAKS
Statement of Net Position
Proprietary Funds
June 30, 2022
39 39
Item No.7I

Page 2 of 2 ends

Solid Waste
Management Theatres Total
Govt. Activities -
Internal Service
Funds
4,091,658 4,121,646 111,169,934 11,280,691 689,198 285,072 9,982,875 -
11,778 11,732 316,389 30,455 - - 1,550,357 - - - 238,603 - - - 499,270 - - 142,034 247,057 - 4,792,634 4,560,484 124,004,485 11,311,146 292,637 - 6,221,453 - 6,267 102,848 137,003 - 746,754 - 5,487,686 - - - 133,538 - 3,235,490 900,930 323,254,645 -
22,226 691,891 14,086,788 -
- - 521,324 - 42,106 - 8,817,637 - (600,682) (1,133,281) (180,013,021) -
3,744,798 562,388 178,647,053 -
8,537,432 5,122,872 302,651,538 11,311,146 134,305 434,755 3,120,515 -
41,853 119,470 981,255 -
176,158 554,225 4,101,770 -
223,891 356,090 6,715,208 36,948 - - 26,752 - - - - 1,190,000 - - 23,169 - - - 635,000 - 192,013 3,582,144 11,608,809 -
- - 688,369 - 37,959 81,598 765,862 - - - 1,981,626 - 453,863 4,019,832 22,444,795 36,948 - - - 3,276,700 33,670 107,814 1,043,208 -
364,618 1,014,302 8,488,975 -
25,308 72,854 600,065 - 423,596 1,194,970 10,132,248 4,466,700 877,459 5,214,802 32,577,043 4,503,648 318,441 992,023 7,402,841 -
41,189 117,576 965,699 -
359,630 1,109,599 8,368,540 -
3,445,894 459,540 170,306,971 -
292,637 - 6,221,453 - 3,737,970 (1,106,844) 89,279,301 6,807,498 7,476,501 (647,304) 265,807,725 6,807,498 (463,365) Adjustments to reflect accumulated internal 265,344,360 services funds loss related to enterprise funds net position of business-type activities (page 26)
Business-type Activities
40 40
Item No.7I

Page 1 of 2 ends

Water Utility
Wastewater
Utility Golf Course Transportation
Operating revenues:

Sales of water and wastewater services $ 30,129,659 20,867,726 - - Theatre rentals and fees - - - - Charges for services and supplies - - - - Bus and subsidized taxi fares - - - 978 Green fees, cart rentals and course memberships - - 7,969,770 - Recycling fees - - - - Fees for service 680,909 1,823,933 - 1,421,728 Other 305,415 213,475 794,339 72,666 Total operating revenues 31,115,983 22,905,134 8,764,109 1,495,372 Operating expenses:

Salaries and employee benefits 4,567,505 6,838,250 - 637,607 Pension expense (892,325) (1,966,937) - (97,456) Other post-employment expense (150,812) (269,724) - (19,357) Contract services 3,226,013 6,990,057 7,598,415 4,894,250 Utilities 721,919 1,232,364 - 55,879 Purchase of water 16,605,565 - - - Materials and supplies 480,185 1,987,826 - 870,308 Claims expenses - - - - Administrative expenses 192,736 118,310 8,205 23,979 Depreciation 2,457,609 5,769,923 435,529 794,430 Total operating expenses 27,208,395 20,700,069 8,042,149 7,159,640 Operating income (loss) 3,907,588 2,205,065 721,960 (5,664,268) Nonoperating revenues (expenses):

Interest income (2,238,238) (2,815,585) 2,484 (297,050) Interest expense - (79,553) (13,950) - Donations - - - - Rental of facilities 30,152 71,400 - 69,326 Federal assistance 420,936 300,052 - 3,694,476 State assistance - - - 2,091,612 Total nonoperating revenues (expenses) (1,787,150) (2,523,686) (11,466) 5,558,364 Income (loss) before contributions and transfers 2,120,438 (318,621) 710,494 (105,904) Capital contributions - 74,458 - - Transfers out (86,461) - (43,552) - Change in net position 2,033,977 (244,163) 666,942 (105,904) Total net position - beginning 89,001,760 154,019,892 6,052,735 7,553,289 Total net position - ending $ 91,035,737 153,775,729 6,719,677 7,447,385 See accompanying notes to basic financial statements.

Business-type Activities

CITY OF THOUSAND OAKS
Statement of Revenues, Expenses, and Changes In Net Position Proprietary Funds
Year ended June 30, 2022
39 41
Item No.7I

Page 2 of 2 ends

Solid Waste
Management Theatres Total
Govt. Activities -
Internal Service
Funds
- - 50,997,385 - - 1,561,319 1,561,319 - - 626 626 2,415,125 - - 978 - - - 7,969,770 - 1,940,067 - 1,940,067 - - - 3,926,570 - 221,755 495,124 2,102,774 -
2,161,822 2,057,069 68,499,489 2,415,125 611,204 2,260,725 14,915,291 -
(110,389) 513,764 (2,553,343) -
(19,472) 2,696 (456,669) - 669,491 1,568,647 24,946,873 -
2,903 311,812 2,324,877 -
- - 16,605,565 - 43,432 79,316 3,461,067 -
- - - 3,452,045 155,303 242,140 740,673 -
65,520 64,073 9,587,084 -
1,417,992 5,043,173 69,571,418 3,452,045 743,830 (2,986,104) (1,071,929) (1,036,920) (216,210) 45,230 (5,519,369) 97,752 - - (93,503) - - 510,000 510,000 - - - 170,878 - - 2,664,103 7,079,567 - - - 2,091,612 - (216,210) 3,219,333 4,239,185 97,752 527,620 233,229 3,167,256 (939,168) - - 74,458 - (100,000) - (230,013) - 427,620 233,229 3,011,701 (939,168) 7,048,881 (880,533) 7,746,666
7,476,501 (647,304) 6,807,498
(400,600) Adjustment to reflect internal service funds loss 2,611,101 related to enterprise fund changes in net position of business-type activities (page 28)
Business-type Activities
40 42
Item No.7I

Page 1 of 2 ends

Water Utility
Wastewater
Utility Golf Course

Transportation
Cash flows from operating activities:

Cash received from customers $ 31,690,062 22,758,374 8,211,639 2,513,785 Cash payments for goods and services (22,622,492) (12,347,875) (7,859,811) (5,834,853) Cash payments to employees (3,474,957) (4,484,243) - (513,439) Net cash provided by (used for) operating activities 5,592,613 5,926,256 351,828 (3,834,507) Cash flows from noncapital financing activities:

State assistance - - - 2,091,612 Federal assistance 420,936 300,052 - 3,694,476 Donations - - - - Transfers out (86,461) - (43,552) - Net cash provided by (used for) noncapital financing activities 334,475 300,052 (43,552) 5,786,088 Cash flows from capital and related financing activities:

Payments for capital acquisitions (7,083,966) (1,538,094) (54,888) (1,049,561) Principal repayments - (1,929,529) - - Interest paid - (79,553) (13,950) - Net cash used for capital and related financing activities (7,083,966) (3,547,176) (68,838) (1,049,561) Cash flows from investing activities:

Interest received (paid) (2,240,671) (2,833,941) 2,480 (301,833) Rental payments received 30,152 71,400 - 69,326 Net cash provided by (used for) investing activities (2,210,519) (2,762,541) 2,480 (232,507) Net increase (decrease) in cash and cash equivalents (3,367,397) (83,409) 241,918 669,513 Cash and cash equivalents, beginning of year (including restricted accounts) 47,546,285 57,043,040 1,270,489 5,565,007 Cash and cash equivalents, end of year (including restricted accounts) $ 44,178,888 56,959,631 1,512,407 6,234,520 Reconciliation of cash and cash equivalents at end of year to the Statement of Net Position:

Cash and investments $ 42,077,758 53,436,287 1,512,407 5,930,178 Restricted cash and investments 2,101,130 3,523,344 - 304,342 Total cash and cash equivalents, end of year $ 44,178,888 56,959,631 1,512,407 6,234,520 Reconciliation of operating income to net cash provided by operating activities:

Operating income (loss) $ 3,907,588 2,205,065 721,960 (5,664,268) Adjustments to reconcile operating income/(loss) to net cash provided by (used for) operating activities:

Depreciation expense 2,457,609 5,769,923 435,529 794,430 (Increase) decrease in accounts/notes receivable 262,575 185,135 (421,791) (42,896) (Increase) decrease in due from other governments - (331,895) - 391,774 (Increase) decrease in inventories (90,799) 26,641 13,106 - (Increase) decrease in prepaid expenses - (87) 30,568 - Increase (decrease) in accounts payables (163,315) 451,531 (7,913) 141,088 (Decrease) in accrued liabilities - (26,049) - - Increase in due to other agencies - - 6,048 - (Decrease) in due to other funds - - (295,000) - Increase (decrease) in compensated absences (49,411) (117,346) - (7,355) (Increase) decrease in net pension asset 7,984 21,455 - 5,549 Increase (decrease) in net pension liability (900,309) (1,988,393) - (103,007) Increase (decrease) in net OPEB liability (150,813) (269,724) - (19,357) Increase (decrease) in unearned revenue and deposits 311,504 - (130,679) 669,535 Increase in claims payable - - - - Total adjustments 1,685,025 3,721,191 (370,132) 1,829,761 Net cash provided by (used for) operating activities $ 5,592,613 5,926,256 351,828 (3,834,507) Noncash investing, capital, and financing activities:

Contributions of property, plant and equipment from developers and other funds - 74,458 - - See accompanying notes to basic financial statements.

Business-type Activities

CITY OF THOUSAND OAKS
Statement of Cash Flows - Proprietary Funds
Year ended June 30, 2022
43 43
Item No.7I

Page 2 of 2 ends

Solid Waste
Management Theatres Total
Govt. Activities -
Internal Service
Funds
2,051,081 2,543,075 69,768,016 2,418,976 (984,635) (1,812,491) (51,462,157) (2,547,231) (475,902) (2,823,138) (11,771,679) - 590,544 (2,092,554) 6,534,180 (128,255) - - 2,091,612 - - 2,664,103 7,079,567 - - 510,000 510,000 - (100,000) - (230,013) - (100,000) 3,174,103 9,451,166 - (31,127) (44,943) (9,802,579) - - - (1,929,529) - - - (93,503) - (31,127) (44,943) (11,825,611) - (218,181) 38,758 (5,553,388) 95,597 - - 170,878 - (218,181) 38,758 (5,382,510) 95,597 241,236 1,075,364 (1,222,775) (32,658) 4,143,059 3,046,282 118,614,162 11,313,349 4,384,295 4,121,646 117,391,387 11,280,691 4,091,658 4,121,646 111,169,934 11,280,691 292,637 - 6,221,453 - 4,384,295 4,121,646 117,391,387 11,280,691 743,830 (2,986,104) (1,071,929) (1,036,920) 65,520 64,073 9,587,084 - (239,584) 220,000 (36,561) 3,851 - - 59,879 - - - (51,052) - - (46,234) (15,753) 578 27,238 151,089 599,718 (58,564) - - (26,049) - - - 6,048 - - - (295,000) - (5,441) 45,953 (133,600) - 4,844 (85,865) (46,033) - (115,233) 599,630 (2,507,312) - (19,473) 2,697 (456,670) - 128,843 (57,793) 921,410 - - - - 962,800 (153,286) 893,550 7,606,109 908,665 590,544 (2,092,554) 6,534,180 (128,255) - - 74,458 - Business-type Activities
44 44
Item No.7I

(EXTRA-SMALL TAB)

Fiduciary Fund Financial Statements

Item No.7I

Custodial
Funds
Thousand Oaks
Redevelopment
Successor Agency
Defined
Benefits Trust
Fund
Assets:

Current assets:

Cash and investments $ 34,414 245,723 - Cash and cash equivalents - - 981,350 Investments:

Fixed income - - 1,599,049 Stocks - - 1,577,369 Real estate - - 61,294 Total current assets 34,414 245,723 4,219,062 Total assets $ 34,414 245,723 4,219,062 Liabilities:

Current liabilities:

Accrued liabilities - 24,939 766,294 Due to local governments 34,414 - - Notes/loans payable - 168,000 - Total current liabilities 34,414 192,939 766,294 Noncurrent liabilities:

Notes/loans payable, less current
portion - 1,769,000 - Total liabilities $ 34,414 1,961,939 766,294 Net position:

Net pension restricted for pensions - - 3,452,768 Held in trust for other purposes - (1,716,216) - Total net position (deficit) $ - (1,716,216) 3,452,768 See accompanying notes to basic financial statements.

CITY OF THOUSAND OAKS
Statement of Fiduciary Net Position - Fiduciary Funds
June 30, 2022
45 45
Item No.7I

Custodial
Funds
Thousand Oaks
Redevelopment
Successor Agency
Defined
Benefits Trust
Fund
Additions:

Property taxes $ - 295,610 - Contributions:

Employer - - 94,000 Employee - - 62,798 Investment income:

Investment earnings - 152 - Net increase/(decrease) in fair value of investments - - (535,262) Miscellaneous 948 - - Total Additions 948 295,762 (378,464) Deductions:

Program expenses - 67,505 - Service benefits - - 90,082 Refunds of member contributions - - 95,618 Administrative expenses 948 118,000 28,826 Fiscal agency expenses - 2,250 - Total Deductions 948 187,755 214,526 Changes in net position - 108,007 (592,990) Net position - beginning - (1,824,223) 4,045,758 Net position - ending $ - (1,716,216) 3,452,768

CITY OF THOUSAND OAKS
Statement of Changes in Net Position - Fiduciary Funds
Year ended June 30, 2022
46 46
Item No.7I

(EXTRA-SMALL TAB)

Notes to Basic Financial Statements

Item No.7I

CITY OF THOUSAND OAKS

Notes to Basic Financial Statements

June 30, 2022

47 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Description of Reporting Entity

City

The City of Thousand Oaks (City), California, was incorporated in 1964 and is a general law city covering approximately 56 square miles. The City operates under a City Council-City Manager form of government.

Authority

The Thousand Oaks Public Financing Authority (Authority) was formed for the acquisition, improvement, and construction of various capital improvements, which are leased by the City.

The Authority is included in the accompanying financial statements. The criteria used in determining the scope of the reporting entity are based on the provisions of Governmental Accounting Standards Board (GASB) Statement No. 14, as amended by GASB Statement No. 61. The City is the primary government unit. Component units are those entities which are financially accountable to the primary government either because the City appoints a voting majority of the component unit’s board or because the component unit will provide a financial benefit or impose a financial burden on the City. The Authority is accounted for as a “blended” component unit of the City. The following specific criteria are used in determining that the Authority is a “blended” component unit:

 The members of the City Council also act as the governing body of the Authority.

 The Authority is managed by employees of the City.

The Authority issues indebtedness, which is used to purchase assets leased to the City.

Lease payments from the City to the Authority are used for the Authority’s debt service.

Despite being legally separate, this entity is so intertwined with the City that it is, in substance, part of the City’s operations. Accordingly, the balances and transactions of this component unit are reported within the funds of the City. The City does not issue separate financial statements for the Authority.

The Authority’s debt service and capital projects funds are reported as nonmajor governmental funds, as applicable, and are located within the combining financial statements and schedules of the Financial section.

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48 (b) Government-wide and Fund Financial Statements

The government-wide financial statements consist of the statement of net position and statement of activities as well as report information on all the fiduciary and nonfiduciary activities of the City and its component unit. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements, with the exception of interfund services provided and used, which are not eliminated in the process of consolidation. All internal balances in the statement of net position have been eliminated, except for those representing balances between governmental activities and the business- type activities, which are presented as internal balances and eliminated in the total columns.

Governmental activities, normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely significantly on fees and charges for support.

The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are clearly identifiable with a specific function or segment. Indirect expenses are allocated based on the annual citywide cost allocation plan. 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, including special assessments, that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not reported as program revenues are reported as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide adjustments.

Major individual governmental funds and major proprietary funds are reported as separate columns in the fund financial statements.

In accordance with GASB Statement No. 34, reconciliations of the differences between fund and government-wide financial statements are provided on pages 26 and 28.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Operating statements present increases (revenues) and decreases (expenses) in total net position. 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.

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources, which represents a consumption of net position that 48 Item No.7I

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49 applies to a future period(s) and will not be recognized as an outflow of resources (expense).

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources, which represents an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of resources (revenue).

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. The reported fund balance (net current assets) is 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.

Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets regardless of their spending measurement focus. However, special reporting treatments are used to indicate that they should not be considered “available spendable resources” since they do not represent net current assets. Recognition of governmental fund type revenues represented by noncurrent receivables is deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance relative to imposed constraints and classified accordingly.

Under the modified accrual basis of accounting, revenues are considered available when they are collectible within the current period, or soon thereafter, to pay liabilities of the current period. For this purpose, the City considers property taxes and taxpayer assessed taxes, such as sales taxes and gas taxes, as available if they are collected within 60 days of the end of the fiscal year. Other revenues treated as susceptible to accrual consist of franchise taxes, special assessments, licenses, charges for services, interest, and grant revenues. Expenditures generally are recorded when a liability is incurred, except for principal and interest on general long-term liabilities and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long- term liabilities are reported as other financing sources.

The City reports the following major governmental funds:

General Fund is the City’s primary operating fund. It accounts for all financial resources except those required to be accounted for in another fund.

Library Fund provides for administration of the City’s library system. Property taxes, library assistance from the State of California, and other revenues are restricted for library maintenance and operations expenditures in this fund.

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50 State Gas Tax Fund accounts for revenues derived from gasoline purchases and state taxes. Revenues are restricted for the construction and maintenance of City streets and other street related projects.

Capital Improvements Fund accounts for developer agreement funds, Successor Agency revenue bond proceeds, and developer impact fees collected for road improvements, bridge improvements, and undergrounding of utilities, as well as capital facilities fees restricted for public facilities.

Thousand Oaks Housing Successor Fund accounts for specific revenues related to housing agreements of the former Redevelopment Agency. Revenues are derived from loan repayments in the form of residual receipts and are legally restricted to expenditures for housing functions performed by the City.

The City reports the following major enterprise funds:

Water Utility Fund accounts for operation of the City’s water utility, a self-supporting activity, which renders services on a user-charge basis to residents and businesses located in Thousand Oaks.

Wastewater Utility Fund accounts for operation of the City’s wastewater utility, a self- supporting activity, which renders services on a user-charge basis to residents and businesses located in Thousand Oaks.

Golf Course Fund accounts for operation of the Los Robles Greens Golf Course.

Revenues include green fees, cart rentals, driving range fees, membership fees, food and beverage sales, pro shop, and rental income from use of facilities.

Transportation Fund accounts for operation of the Thousand Oaks Transit system. Fare revenues, Federal Transit Administration (FTA) funds, Transportation Development Act (TDA) funds, and transfers-in from the City are recognized in this fund.

Solid Waste Management Fund accounts for operation of the City’s solid waste management activities, which includes recycling, source reduction, hazardous waste disposal, and composting. Revenues include franchise fees, household hazardous waste (HHW) fees, and state grants.

Theatres Fund accounts for operation of the 1,800 seat Kavli Performing Arts Theatre and the 400 seat Scherr Forum Theatre.

Additionally, the City reports the following fund types:

Special Revenue Funds account for specific revenues that are legally restricted to expenditures for particular purposes.

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51 Debt Service Fund accounts for accumulation of resources and payment of principal and interest of the Authority.

Capital Projects Funds account for equipment replacement program and other capital expenditures.

Internal Service Funds account for cost of providing general liability, workers’ compensation, and vision insurance coverage.

Fiduciary Funds account for resources held by the City in a fiduciary capacity for individuals, governmental entities, and others.

Proprietary funds consist of enterprise funds and internal service funds and 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. Operating expenses for proprietary funds include salaries and benefits, the cost of sales and services, administrative expenses, maintenance, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

The City’s fiduciary funds include trust funds and custodial funds. Trust funds are used to report the resources held and administered by the City when it is acting in a fiduciary capacity for individuals, private organizations, or other governments. Trust funds are presented in the basic fiduciary fund financial statements on pages 45-46 of this report.

Custodial funds are held by the City in a purely custodial capacity and are presented in the aggregate on pages 46-47 and by fund in the combining statements on pages 133-134.

Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is similar to that used for proprietary funds.

The City currently reports the following fiduciary funds:

Thousand Oaks Redevelopment Successor Agency Trust Fund accounts for assets and liabilities of the former Redevelopment Agency and is allocated property tax revenues to pay estimated installment payments of enforceable obligations until obligations are paid in full and assets have been liquidated.

Defined Benefits Trust Fund accumulates resources for defined benefits for hourly/part- time employees that are not members in CalPERS.

Strong Motion Instrumentation Fund accounts for fees collected from applicants for building permits that are used to regulate the statewide strong motion instrumentation program, which accumulates information needed to make homes and other structures safe from destructive earthquakes.

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52 County Flood Zone Fund accounts for flood control fees and charges collected on behalf of the County of Ventura as a condition of land development to derive revenues for certain flood control purposes.

Parking Citations Surcharge Fund accounts for fees collected from parking citations that are passed through to other agencies.

(d) Net Position Reporting of Governmental and Business-type Funds Definitions

As of June 30, 2022, governmental and business-type funds are made up of the following net position classifications:

Net Investment in Capital Assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position consists of amounts restricted by external creditors, grantors, contributors, laws enabling legislation or regulations of other governments, and are reported by categories.

Unrestricted Net Position 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 first, and then unrestricted net position as needed.

(e) Fund Balance Reporting and Governmental Fund Type Definitions

As of June 30, 2022, governmental funds are made up of the following fund balance categories:

Nonspendable Fund Balance has amounts that are not in spendable form (e.g., inventories and notes/loans receivables) or are required to be maintained intact.

Restricted Fund Balance has externally enforceable limitations on the use (i.e., limitations imposed by creditors, grantors, contributors, or laws and regulations of other governments, and limitations imposed by law through constitutional provisions or enabling legislation).

Committed Fund Balance has self-imposed limitations on use as determined by a formal action of the City Council, the highest level of decision making. Similarly, the limitations require formal action at the same level to remove. Both a resolution and ordinance meet this requirement and are equal in difficulty to remove the restraint provided by either action.

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53 Assigned Fund Balance has limitations resulting from intended use established by the highest level of decision making, by a body designated for that purpose, or by an official designated for that purpose (delegated by the City Council to the City Manager as per the Governmental Fund Balance Policy approved December 17, 2014).

Unassigned Fund Balance is comprised of the excess of nonspendable, restricted, committed, and assigned total fund balance (i.e., residual net resources). The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance.

The accounting policies of the City consider restricted fund balance spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance are available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

In all cases, encumbrance amounts have been assigned for specific purposes for which resources already have been allocated.

As of June 30, 2022, the Grants Fund has a fund balance of ($3,659,687), which is related to the recognition of unavailable revenue to be realized in the upcoming fiscal year. The Bicycle and Pedestrian Facilities has a fund balance of ($770), which is primarily related to a decrease in the fair market value adjustment.

(f) Cash and Investments

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, the City’s investments are stated at fair value.

As of June 30, 2022, the aggregate unrealized loss for the City’s entire investment portfolio across all funds is ($15,601,700), with ($10,199,143) of that amount in the General Fund.

The City manages the cash activity of all funds daily, allowing for maximum investment of available unrestricted cash balances. In accordance with state law and the City’s formal investment policy, available cash and investment balances consist primarily of U.S.

Government and Federal Agency obligations, municipal bonds, and the State Treasurer’s Local Agency Investment Fund (LAIF). LAIF operates in accordance with appropriate state laws and regulations and audit oversight by the California Bureau of Audits and the State Controller’s Office. A substantial portion of the City’s investments are in short-term, highly liquid instruments, or with maturities in the next three months (including $56,843,451 of funds on deposit with LAIF and $9,980,580 of funds on deposit with the Ventura County Treasury Pool). Fair value is determined annually and is based on current market prices received from the securities custodian as of June 30, 2022. The fair value of participants’ 53 Item No.7I

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54 position in the pool is substantially the same as the value of the pool shares. The City’s policy is to hold investments until maturity, or until market values equal or exceed cost.

For purposes of the statement of cash flows, all cash and investments held by the proprietary funds are classified as cash and cash equivalents. The proprietary funds participate in the City’s pooled investments, including highly liquid investments, such as LAIF and money market funds.

(g) Receivables and Payables

Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are reported as “interfund receivables/payables”.

Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”.

Property taxes attach as an enforceable lien on property as of January 1. Secured property taxes are levied on July 1 and are payable in two installments, on December 10 and April

10. The County of Ventura bills and collects property taxes on behalf of the City. Delinquent property taxes receivable as of June 30, 2022, are $281,699.

Rebatable arbitrage earnings from the investment of tax exempt securities are treated as a reduction in investment revenue. The liability is recorded within accrued liabilities in the fund that has incurred the rebatable arbitrage. As of June 30, 2022, the City does not have a liability due.

(h) Inventories and Prepaid Items

Inventories held by enterprise funds are stated at average cost, which approximates a first- in, first-out (FIFO) basis. Inventories in the enterprise funds include various accessories used for water and wastewater service repair and maintenance. Inventories held by governmental funds are accounted for utilizing the consumption method. Inventories in the General Fund consist principally of parts for traffic control and fleet, fuel, as well as other miscellaneous materials and are stated at average cost. 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. The inventories and prepaid items recorded in the governmental funds do not reflect current appropriable resources and therefore, an equivalent portion of fund balance is nonspendable.

(i) Restricted Cash and Investments

Some debt covenants require resources to be set aside as restricted assets to cover one annual principal and interest payment. As required, amounts are set aside in the Community Facilities Districts Fund.

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55 In July 2019, the City established a funding policy for a Section 115 Pension Rate Stabilization Trust Fund (Pension Trust) to achieve long-term pension sustainability. The purpose of the Pension Trust is to generate a reasonable level of investment growth to responsibly manage pension costs and fund present and future pension obligations. As required, amounts are set aside in the General Fund, Water Fund, Wastewater Fund, Transportation Fund, and Solid Waste Management Fund. See Note 2(j) for additional information on the Pension Trust.

(j) Capital Assets

Capital assets are reported in the applicable governmental or business-type activity columns in the government-wide financial statements. Included in capital assets are land, buildings and improvements, equipment, intangibles, infrastructure, and construction in progress. City policy has set the capitalization threshold for reporting capital assets at $5,000. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value at the date of donation.

Capital outlays are recorded as expenditures in the Governmental funds, and as assets in the government-wide financial statements to the extent the City’s capitalization threshold is met. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows:

Buildings and Improvements – 20 to 50 years
Equipment – 3 to 15 years
Intangibles – 2 to 50 years
Infrastructure – 10 to 50 years

(k) Self-insurance

The City provides vision insurance under a self-insurance plan and is self-insured for workers’ compensation and general liability claims below the insured limits. The City contracts with outside agencies to supervise and administer the self-insurance programs.

Estimated liabilities related to outstanding workers’ compensation and general liability claims (including estimates for incurred but not reported claims) are based upon actuarial valuations and are recorded in the internal service funds.

(l) Compensated Absences

Compensated absences is paid time off made available to employees in connection with accrued annual vacation, miscellaneous, compensatory, and sick leave. Accrued sick leave is available for use only during each employee’s tenure with the City, except for credit on accumulated sick leave, which is applied to an employee’s service time upon retirement.

The City accrues for compensated absences in the government-wide and proprietary fund statements of net position. In prior fiscal years, the liability for compensated absences in the governmental funds has been liquidated primarily by the General Fund and the Library Fund.

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56 Detail of compensated absences recorded in the government-wide statement of net position as of June 30, 2022, are as follows:

Fiscal Year2020-21Current NoncurrentPortion Portion Total TotalGovernmental Activities:General Fund 1,975,863$ 2,213,351$ 4,189,214$ 4,227,063$ Library 266,969 361,064 628,033 717,336 East County Transit Alliance (ECTA) 3,975 4,732 8,707 9,022 Landscape and Lighting Districts 51,029 48,212 99,241 99,137 County Flood Control Benefit Assessment 19,512 16,744 36,256 66,182 Total Governmental Activities 2,317,348$ 2,644,103$ 4,961,451$ 5,118,740$ Business-type Activities:Water 232,441$ 350,911$ 583,352$ 632,763$ Wastewater 371,129 493,233 864,362 981,708 Transportation 42,735 57,580 100,315 107,670 Solid Waste 37,959 33,670 71,629 77,070 Theatres 81,598 107,814 189,412 143,459 Total Business-type Activities 765,862$ 1,043,208$ 1,809,070$ 1,942,670$ Total Compensated Absences 3,083,210$ 3,687,311$ 6,770,521$ 7,061,410$ Fiscal Year2021-22Fund Type

(m) Long-term Liabilities

In the government-wide and the proprietary 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. Bond payables are reported net of the applicable bond premiums.

In the fund financial statements, the governmental funds recognize bond premiums and discounts, issuance costs, and gain or loss on defeasance during the current period. The face amount of debt issued and premiums are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

In prior fiscal years, net pension and net other post-employment benefit liabilities have been liquidated primarily by the General Fund.

(n) Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position 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 a future 56 Item No.7I

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June 30, 2022

57 period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

The City reported the following items related to deferred outflows:

 Deferred charges on refunding bonds are reported in the government-wide statement of net position and the proprietary funds statement of net position, as applicable.

Deferred charges on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded debt.

 Deferred outflows of resources related to pensions and other post-employment benefits (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 balance sheet or statement of net position reports 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 a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

The City reports the following items related to deferred inflows:

 Unavailable revenue arises only under a modified accrual basis of accounting.

Accordingly, unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from two sources: interest earned from deferred housing loans and grants not collected within the availability period. These amounts are deferred and recognized as an inflow of resources until collected.

 Deferred inflows of resources related to pension and OPEB are reported in the government-wide statement of net position and the proprietary funds statement of net position. These balances 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 over a five- year period on a straight-line basis.

 Deferred inflows of resources related to rental 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.

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58 (o) Net Pension Liability

California Public Employees’ Retirement System (CalPERS)

For purposes of measuring the net pension liability, deferred outflows and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position of the CalPERS agent multiple-employer defined benefit plan (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 CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

The Valuation Date, June 30, 2020, is the date the actuarial valuation was performed. The Measurement Date, June 30, 2021, is the date the net pension liability was determined. The Measurement Period is July 1, 2020 to June 30, 2021.

City of Thousand Oaks Defined Benefit Pension Plan

For purposes of measuring the net pension liability, deferred outflows and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Thousand Oaks’ single-employer defined benefit plan (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 Public Agency Retirement Services office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

The Valuation Date, January 1, 2022, is the date the actuarial valuation was performed. The Measurement Date, June 30, 2022, is the date the net pension liability was determined. The Measurement Period is July 1, 2021 to June 30, 2022. There have been no significant changes between the valuation date and fiscal year end.

(p) Net Post-employment Benefits Other Than Pensions (OPEB)

For purposes of measuring the net OPEB liability, OPEB expense, deferred outflows and inflows of resources related to OPEB, information about the fiduciary net position of the California Employer’s Retiree Benefit Trust (CERBT), and additions to/deductions from CERBT’s fiduciary net position have been determined on the same basis as they are reported by CERBT. For this purpose, CERBT recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

The Valuation Date, June 30, 2021, is the date the actuarial valuation date was performed.

The Measurement Date, June 30, 2021, is the date the net OPEB liability was determined.

The Measurement Period is July 1, 2020 to June 30, 2021.

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59 (q) Budgetary Data

The City is a general law city in the State of California (State) and does not legally require a budget. However, the City Council biennially reviews and adopts an annual budget for the major governmental funds: General, Library, State Gas Tax, Capital Improvements, and Thousand Oaks Housing Successor. The City Council also biennially reviews and adopts an annual budget for the following nonmajor governmental funds: HOME and Community Development Block Grant (CDBG), East County Transit Alliance, Bicycle and Pedestrian Facilities, Landscape and Lighting Districts, Housing Trust, Cable Television (PEG), Community Facilities Districts, County Flood Control Benefit Assessment, and Grants. No budget was adopted for, and no budgetary comparisons are presented for the following funds: Law Enforcement (State), Federal Asset Seizure, Thousand Oaks Public Financing Authority, Community Recreation and Open Space Endowment, and Fixed Asset Replacement.

Consistent with generally accepted accounting principles, the modified accrual basis is used during the budget process. Operating appropriations lapse at the end of each fiscal year.

The budgetary level of control for all governmental fund types is at the fund level. The City Manager has the discretion to transfer appropriations between departments within a fund, but changes to the total appropriation of a fund, or transfers between funds, must be approved by City Council.

Budgetary data is presented in the basic financial statements, pages 35-38, and combining financial statements and schedules sections, pages 114-126.

(r) Encumbrances

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in all governmental funds. Encumbrances are not separately classified in the financial statements. Amounts encumbered that are not included in restricted or committed fund balance are reported in assigned by function. As of June 30, 2022, encumbrances are summarized as follows:

AmountGeneral Fund 4,588,591$ Other governmental funds 12,639,123 17,227,714$ (s) Use of Estimates

The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 59 Item No.7I

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60 the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities on the financial statements. Actual results could differ from those estimates.

(2) CASH AND INVESTMENTS

Cash and investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Statement of Net Position:Cash and investments 329,194,899$ Restricted cash and investments 28,335,943 Fiduciary FundsCustodial cash and investments 34,414 Successor agency cash and investments 245,723 Pension trust cash and investments 4,219,062 Total cash and investments 362,030,041$ Cash and investments as of June 30, 2022, consist of the following:Cash on hand 70,009$ Deposits with financial institutions 5,752,076 Investments held by City and bond trustee 326,417,898 Pension stabilization investments 26,337,290 Investments held by pension plan 3,452,768 Total cash and investments 362,030,041$

(a) Investments Authorized by the California Government Code and the City’s Investment Policy

The following table identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy and guidelines, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy and guidelines, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee which are governed by the provisions of debt agreements of the City, nor the investments in the Hourly/Part-time Defined Benefit Pension Plan and the Pension Trust which are governed by their trust agreements.

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61 Maximum Maximum % Maximum InvestmentAuthorized Investment Type Maturity of Portfolio in One IssuerU.S. Treasury Obligations 5 years None N/AU.S. Agencies Obligations 5 years None NoneCity of Thousand Oaks Obligations 5 years 5% N/AState Obligations (CA and others) 5 years None NoneState of California Local Agency Obligations 5 years None NoneSupranationals 5 years 20% 10%Corporate Medium-Term Notes 5 years 30% 5%Negotiable Certificates of Deposit 5 years 10% $250,000Bank Deposits - Collateralized/FDIC Insured 5 years None NoneCommercial Paper 270 days 25% 5%*Banker's Acceptances 180 days 40% 5%Repurchase Agreements 30 days 25% NoneLocal Agency Investment Fund (LAIF) N/A None N/ACounty Pooled Investment Funds N/A 20% NoneJoint Pow ers Authority Pools N/A 15% 10%Mutual Funds N/A 15% 5%Money Market Funds N/A 15% None*City may not purchase more than 5% of the outstanding commercial paper of a single issuer.

(b) Investments Authorized by Debt Agreements

The provisions of debt agreements, rather than the general provisions of the California Government Code or the City’s Investment Policy, govern investments of debt proceeds and reserve funds held by fiscal bond agents. Permitted investments are specified in related trust agreements. No maximum percentage of the related debt issue or maximum investment in one issuer is specified.

Interest rate risk is the potential for investment losses that result from a change in interest rates. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City manages its exposure to interest rate risk by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The City monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City has no specific limitations with respect to this metric.

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62 Weighted AverageInvestment Type Amount Maturity (in years)U.S. Agencies 161,933,506$ 3.36LAIF 56,843,451 0.85U.S. Treasuries 41,889,427 1.64Municipal Bonds 37,263,478 1.77Ventura County Treasury Pool 9,980,580 0.76Supranationals 9,322,930 2.88Negotiable Certificates of Deposit 2,977,711 1.96Held by Fiscal Agent: LAIF 6,084,923 0.85 Money Market Funds 121,892 0.04Total 326,417,898$

(d) Disclosures Relating to 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 (e.g., Standard & Poor’s or Moody’s). Presented below is the minimum rating (where applicable) required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

MinimumLegal AAA/AaaInvestment Type Amount Rating A1 AA/Aa A UnratedU.S. Agencies 161,933,506$ None -$ 151,129,008$ -$ 10,804,498$ LAIF 56,843,451 Unrated - - - 56,843,451$ U.S. Treasuries 41,889,427 None - 41,889,427$ - - Municipal Bonds 37,263,478 A 4,765,757$ 32,033,246$ 464,475$ - Ventura County Treasury Pool 9,980,580 None 9,980,580$ - - - Supranationals 9,322,930 AAA 9,322,930$ - - - Negotiable Certificates of Deposit 2,977,711 None - - - 2,977,711$ Held by Fiscal Agent: LAIF 6,084,923 Unrated - - - 6,084,923$ Money Market Funds 121,892 AAA 121,892$ - - - Total 326,417,898$ (e) Custodial Credit Risk

Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, a government agency will not be able to recover its deposits or will not be able to recover investment securities that are in possession of an outside party. A depositor’s accounts at an insured depository institution, including noninterest-bearing transaction accounts, are insured by the FDIC up to the standard maximum deposit insurance amount of $250,000 for each deposit insurance ownership category. The California Government Code requires that a financial institution secure deposits made by 62 Item No.7I

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63 state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law unless waived by the governmental unit.

The custodial risk for investments is also twofold. An investment trade transaction occurs between a government agency and counterparty, such as a broker or a dealer.

Counterparty risk is the risk that a brokerage or dealer will fail to deliver securities after government agency has made payment. The City prevents counterparty risk by requiring all trade transactions to be made on a delivery versus payment arrangement.

A government agency uses an independent third-party custodian or safekeeper to domicile the securities in its portfolio. The City uses Bank of New York Mellon Trust as its third-party safekeeping servicer and prevents custodial or safekeeping risk by having securities purchased and owned by the City registered in the name of the City, separated from other client securities portfolios, and segregated from securities owned by the bank.

(f) Concentration of Credit Risk

The City’s investment policy and the California Government Code limit the amount that can be invested in any one issuer. Investment in any one issuer (excluding U.S. Treasury securities, mutual funds, and external investment pools) that represent 5 percent or more of total City investments are as follows:

ReportedIssuerInvestment TypeAmountFederal Home Loan BankCoupon Securities69,382,848$ Federal Farm Credit BankCoupon Securities35,027,458$ Federal National Mortgage AssociationCoupon Securities24,960,654$ Federal Home Loan Mortgage CorporationCoupon Securities21,758,048$ (g) Investment in State Investment Pool

The City is a voluntary participant in LAIF that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. 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 is recorded on an amortized cost basis.

(h) Ventura County Treasurer’s Investment Pool (County Pool)

The County Pool is a governmental investing pool managed and directed by the elected Ventura County Treasurer. The County Pool is not registered with the Securities and Exchange Commission. An oversight committee comprised of local government officials and various participants provide oversight to the management of the fund. The daily operations 63 Item No.7I

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64 and responsibilities of the County Pool fall under the auspices of the County Treasurer’s office. The City is a voluntary participant in the County Pool

The City holds investments in the County Pool and relies upon information provided by the County Treasurer in estimating the City’s fair value position of its holdings in the County Pool. Although the City’s share of the County Pool has a fair value of $9,980,580, the City’s contractual withdrawal value is $10,138,724 as of June 30, 2022.

(i) Fair Value Measurement and Application

GASB Statement No. 72, Fair Value Measurement and Application establishes general principles for measuring fair value and standards of accounting and financial reporting for assets and liabilities measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets a government can access at the measurement date. Level 2 inputs consist of inputs other than quoted prices that are observable for an asset or liability, either directly or indirectly. Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability.

The City has the following fair value measurements for its investments as of June 30, 2022:

Investment by Fair Value Amount Level 1 Level 2 Level 3U.S. Agencies 161,933,506$ -$ 161,933,506$ -$ Supranationals 9,322,930 - 9,322,930 - Municipal Bonds 37,263,478 - 37,263,478 - U.S.Treasuries 41,889,427 41,889,427 - - Negotiable Certificates of Deposit 2,977,711 - 3,831,521 - Total 253,387,052$ 41,889,427$ 212,351,435$ -$ Ventura County Treasury Pool 9,980,580$ LAIF 56,843,451 Held by Fiscal Agent: LAIF 6,084,923 Money Market Funds 121,892 Total 73,030,846$ Investments not subject to fair value hierarchy:

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65 U.S. Treasuries are valued using quoted prices in active markets for identical assets and classified in Level 1 of the fair value hierarchy.

U.S. Agencies, Supranationals, Municipal Bonds, and Negotiable Certificates of Deposit are valued using a variety of techniques such as matrix pricing, market corroborated pricing inputs such as yield curves and indices, and other market-related data and classified in Level 2 of the fair value hierarchy.

(j) Investments in Pension Trust and Pension Plan

In July 2019, the City established Section 115 Pension Rate Stabilization Trust Fund (Pension Trust) to achieve long-term pension sustainability. The Pension Trust and the City’s Hourly/Part-time Defined Benefit Pension Plan (Pension Plan) are governed by the City’s investment guidelines detailed in the trust agreement. Investment guidelines are established and can be modified by the City.

The purpose of the Pension Trust is to generate a reasonable level of investment growth to responsibly manage pension costs and fund present and future pension obligations. At the City’s discretion, assets placed in the Pension Trust are available to mitigate potential negative impact of future CalPERS rate hikes, offset revenue impairments from market instability, and/or stabilize fluctuations in the required annual contributions. The Plan Administrator and Trustee for the Pension Trust is Public Agency Retirement Services (PARS) and US Bank, respectively, and investment authority is delegated to Highmark Capital Management to actively manage according to designated risk tolerance selected by the City. The current selected risk tolerance is HighMark Moderate Plus with growth of principal and income as the objective.

The purpose of the Pension Plan, on the other hand, is to establish a defined benefit retirement plan benefit for hourly and part-time employees who are not members of another qualified retirement system. Assets in the Pension Plan are held and administered in trust for the exclusive benefit of plan participants in accordance with and subject to the terms and conditions set forth in trust agreement. Likewise, PARS is the Plan Administrator, US Bank is the trustee, and investment authority is delegated to HighMark Capital Management with HighMark Moderate Plus as the current selected risk tolerance.

The following table identifies the investment types and investments held that are authorized by the California Government Code Sections 53215-53224, as well as the percentage of the portfolio. Certain trust agreement provisions that address interest rate risk, credit risk, and concentration of credit risk are identified in subsequent tables.

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66 Authorized Investment Type AmountAsset Class WeightsPension TrustCash & Equivalents 1,572,506$ 6.0%Fixed Income 12,298,168 46.7%Equities 12,466,616 47.3%Total 26,337,290$ 100.0%Pension PlanCash & Equivalents 224,430$ 6.5%Fixed Income 1,595,179 46.2%Equities 1,633,159 47.3%Total 3,452,768$ 100.0% Interest rate risk is the possibility that changes in market interest rate will adversely affect the fair value of an investment. While no specific limitations are applicable to this metric, information about the sensitivity of the fair values of the investment portfolio to market interest rate fluctuations based on maturity distribution as of June 30, 2022, is as follows:

Investment TypeWeighted Average Maturity (in years)Pension TrustFixed Income Mutual Funds 6.8Pension PlanFixed Income Mutual Funds 6.8 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 (e.g., Standard & Poor’s or Moody’s). Presented below is the minimum rating required (where applicable) by the investment guidelines and the average rating as of June 30, 2022, for each investment type:

Investment with Fiscal AgentsAverage Credit RatingPension TrustFixed Income Mutual Funds APension PlanFixed Income Mutual Funds A

The investment guidelines contain no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code regarding concentration of credit risk. Mutual funds are excluded from concentration of risk reporting requirements.

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the investments as described in Note 2(i). 66 Item No.7I

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67 Fair value measurements for investments as of June 30, 2022, are as follows:

Investment by Fair Value Amount Level 1 Level 2 Level 3Pension TrustMoney Market 1,565,907$ 1,565,907$ -$ -$ Mutual Funds (equity & fixed) 24,771,383 3,122,164 21,649,219 - Total26,337,290$ 4,688,071$ 21,649,219$ -$ Pension PlanMutual Funds 3,452,768$ 614,597$ 2,838,171$ -$ Total3,452,768$ 614,597$ 2,838,171$ -$

Certain mutual funds are valued using quoted prices in active markets for identical securities and classified in Level 1 of the fair value hierarchy.

Other mutual funds are valued using a variety of techniques such as matrix pricing, market corroborated pricing inputs such as yield curve and indices, and other market related data and classified in Level 2 of the fair value hierarchy.

(3) LOANS AND NOTES RECEIVABLE

Governmental Funds

The former Redevelopment Agency engaged in projects designed to improve, construct, and preserve low and moderate income housing units. Under these housing projects, notes and loans were provided under favorable terms to non-profit organizations or developers who agreed to comply with the former Redevelopment Agency’s terms. As a result of the dissolution of the former Redevelopment Agency on February 1, 2012, the loans and notes were transferred to the Thousand Oaks Housing Successor Fund. As of June 30, 2022, loans and notes receivable totaling $36,383,454 consists of $33,608,156 from the Thousand Oaks Housing Successor Fund, $2,254,600 from other governmental funds, and $520,698 from the General Fund as detailed on the following page.

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68 Thousand Oaks Housing Successor Fund:Hillcrest Drive 7,056,500$ Shadows Apartments 6,900,000 Schillo Gardens Apartments 5,970,956 Los Feliz Drive 5,950,000 Bella Vista Apartments 4,139,200 Oak Creek Senior Villas 2,450,000 Hacienda de Feliz 600,000 Warwick Apartments 420,000 Housing Rehabilitation 121,500 Total Thousand Oaks Housing Successor Fund 33,608,156$ General Fund:Due from TOPASS (related entity) 500,000$ Others 20,698 Total General Fund 520,698$ Other Governmental Funds:Los Feliz Drive 1,000,000$ Oak Creek Senior Villas 1,000,000 CDBG 254,600 Total Other Governmental Funds 2,254,600$ Total loans/notes receivable 36,383,454$ Major housing loan projects the Thousand Oaks Housing Successor Fund and other governmental funds participated in are described as follows:

Hillcrest Drive

During fiscal years 2006-07 and 2007-08, the former Redevelopment Agency entered into a $5.6 million loan agreement with Many Mansions for the acquisition and development of a 60 unit low, very-low, and extremely-low income housing project on five parcels located on Hillcrest Drive and Los Feliz Drive. During fiscal years 2009-10 and 2011-12, an additional $1.5 million in loans was issued to fund the project, for a total of $7.1 million. The outstanding balance of the loan bears interest at a rate of 3.0 percent per annum. Loan repayment shall be made from residual receipts and the loan is expected to be repaid in full by May 19, 2068.

Shadows Apartments

During fiscal year 2006-07, the former Redevelopment Agency entered into a $6.9 million loan agreement with Shadows TC Investors for the acquisition, rehabilitation, and operation of Shadows Apartments, a 148 unit low and very-low income housing project. The outstanding balance of the loan bears interest at a rate of 3.0 percent per annum. Loan repayment shall be made from residual receipts and the loan is expected to be repaid in full by April 1, 2062.
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69 Schillo Gardens

During fiscal year 2015-16, the City entered into an agreement with Many Mansions to sell the Housing Successor owned Schillo Gardens property for two notes receivable of $3.9 million and $2.1 million, along with $0.3 million in cash. Both notes accrue interest at the “Applicable Federal Rate.” Loan repayment shall be made from residual receipts and the loan and any accrued interest is expected to be repaid in full by May 19, 2071. Payment on the loan is expected to begin in fiscal year 2023-24.

Los Feliz Drive

During fiscal year 2006-07, the former Redevelopment Agency entered into a $5.9 million City loan agreement with Area Housing Authority of the County of Ventura (AHA) for the acquisition and development of a 56 unit low and very-low income housing project on five parcels located on Los Feliz Drive. During fiscal year 2010-11, an Owner Participation Agreement was executed for an additional $0.7 million pre-development loan, for a total of $6.6 million. $0.5 million and $0.2 million in pre-development loans were repaid during fiscal years 2013-14 and 2014-15, respectively. The promissory notes were modified to define the loan term into two phases. Phase I portion of the loan is $5.1 million and bears interest at a rate of 3.0 percent per annum, while Phase II portion of the loan is $0.9 million and bears interest at a rate of 3.56 percent compounded annually. Loan repayment shall be made from residual receipts and the loan is expected to be repaid in full by November 1, 2069.

During fiscal year 2013-14, the City also entered into a $2.0 million loan agreement with AHA for the Los Feliz Drive housing project. Note A of $1.0 million bears 3.0 percent interest per annum and loan repayment shall be made from residual receipts and the loan is expected to be repaid in full by the year 2069. Note B of $1.0 million was paid on December 31, 2015.

Bella Vista Apartments

During fiscal year 2004-05, the former Redevelopment Agency entered into a $4.1 million loan agreement with Many Mansions for the acquisition, rehabilitation, and operation of Bella Vista Apartments, a 72 unit low and very-low income housing project. The outstanding balance of the loan bears interest at a rate of 3.0 percent per annum. Loan repayment shall be made from residual receipts and the loan is expected to be repaid in full by June 29, 2060.

Oak Creek Senior Villas

During fiscal year 2002-03, the City and the former Redevelopment Agency entered into a $1.0 million and a $1.2 million loan agreement with Oak Creek Housing Investors, L.P. The purpose of the loans is to fund the development and construction of Oak Creek Senior Villas, a 57-unit low and very-low income senior housing project. During fiscal year 2004-05, 69 Item No.7I

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70 the former Redevelopment Agency issued an additional $1.3 million to fund the project. The outstanding balance of these loans bears interest at a rate of 3.0 percent per annum. Loan repayment shall be made from residual receipts and the loans are expected to be repaid in full in three installments; the first installment of $1.0 million is due on December 18, 2042, the second installment of $1.3 million is due on March 21, 2045, and the third installment of $1.2 million is due on December 18, 2057.

Proprietary Funds

Combined Heat and Power Clean Energy (CHPCE)

During fiscal year 2013-14, the City issued a $1.5 million loan to CHPCE Thousand Oaks, LLC, to finance the construction of a new cogeneration system at the Hill Canyon Wastewater Treatment Plant. The outstanding balance of the loan bears interest at a rate of

3.0 percent per annum and the loan repayment shall be made from excess available incentive payments. As of June 30, 2022, $238,603 is outstanding.

(4) CAPITAL ASSETS

(a) Governmental Activities:

Capital assets governmental activity for the fiscal year ended June 30, 2022, is as follows:

Balance at Balance atJune 30, 2021 Additions Disposals June 30, 2022Capital assets, not being depreciated: Land 133,227,700$ 11,743,066$ 2,493,707$ 142,477,059$ Intangibles 848,017 - - 848,017 Construction in progress 3,444,439 6,525,956 2,833,171 7,137,224 Total 137,520,156 18,269,022 5,326,878 150,462,300 Capital assets, being depreciated: Buildings and improvements 173,268,912 167,272 - 173,436,184 Equipment 12,042,257 297,704 92,786 12,247,175 Intangibles 1,054,442 - - 1,054,442 Infrastructure 506,861,486 9,713,110 - 516,574,596 Total 693,227,097 10,178,086 92,786 703,312,397 Less accumulated depreciation for: Buildings and improvements 71,635,483 4,040,156 - 75,675,639 Equipment 9,540,130 635,490 70,318 10,105,302 Intangibles 953,946 52,409 - 1,006,355 Infrastructure 290,319,983 12,012,732 - 302,332,715 Total 372,449,542 16,740,787 70,318 389,120,011 Total, net depreciation 320,777,555 (6,562,701) 22,468 314,192,386 Total net capital assets 458,297,711$ 11,706,321$ 5,349,346$ 464,654,686$

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71 Land additions of $11.7 million resulted primarily from $10.0 million purchase of 384 Erbes Road for the future development of affordable housing. Disposals of $2.5 million resulted primarily from the transfer of open space parcels to Conejo Open Space Conservation Agency (COSCA).

Infrastructure additions of $9.7 million resulted primarily from $5.2 million for Willow Lane improvements, $2.0 million for Rancho Road sidewalk improvements, $1.3 million for Los Feliz Drive sidewalks improvements and $1.0 million for citywide curb ramp improvements.

Construction in progress additions of $6.5 million resulted primarily from $4.3 million for pavement overlay, and $1.8 million for Lawrence Drive and Teller Road improvement.

Disposals of $2.8 million resulted primarily from the completion of Willow Lane improvements, Los Feliz Drive sidewalks, and Rancho Road sidewalks.

(b) Business-type Activities:

Capital asset business-type activities for the fiscal year ended June 30, 2022, are below and on the following pages:

Balance at Balance atJune 30, 2021 Additions Disposals June 30, 2022Water Utility Fund: Capital assets, not being depreciated: Land 2,060,142$ -$ -$ 2,060,142$ Intangibles 45,473 - - 45,473 Construction in progress 2,585,894 3,328,725 402,874 5,511,745 Total 4,691,509 3,328,725 402,874 7,617,360 Capital assets, being depreciated: Buildings and improvements 77,899,454 4,169,008 39,681 82,028,781 Equipment 2,185,871 - - 2,185,871 Intangibles 490,418 - - 490,418 Total 80,575,743 4,169,008 39,681 84,705,070 Less accumulated depreciation for: Buildings and improvements 37,305,951 2,255,186 28,788 39,532,349 Equipment 1,447,677 201,610 - 1,649,287 Intangibles 488,183 813 - 488,996 Total 39,241,811 2,457,609 28,788 41,670,632 Total, net depreciation 41,333,932 1,711,399 10,893 43,034,438 Water Utility Fund net capital assets 46,025,441$ 5,040,124$ 413,767$ 50,651,798$

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72 Balance at Balance atJune 30, 2021 Additions Disposals June 30, 2022Wastewater Utility Fund: Capital assets, not being depreciated: Land 1,463,180$ -$ -$ 1,463,180$ Intangibles 88,065 - - 88,065 Construction in progress 744,010 1,107,118 - 1,851,128 Total 2,295,255 1,107,118 - 3,402,373 Capital assets, being depreciated: Buildings and improvements 218,976,207 74,458 26,888 219,023,777 Equipment 4,401,846 457,327 - 4,859,173 Total 223,378,053 531,785 26,888 223,882,950 Less accumulated depreciation for: Buildings and improvements 114,941,466 5,455,397 537 120,396,326 Equipment 3,137,982 314,526 - 3,452,508 Total 118,079,448 5,769,923 537 123,848,834 Total, net depreciation 105,298,605 (5,238,138) 26,351 100,034,116 Wastewater Utility Fund net capital assets107,593,860$ (4,131,020)$ 26,351$ 103,436,489$ Golf Course Fund: Capital assets, not being depreciated: Land 1,217,610$ -$ -$ 1,217,610$ Construction in progress - - - - Total 1,217,610 - - 1,217,610 Capital assets, being depreciated: Buildings and improvements 12,948,158 46,689 - 12,994,847 Equipment 336,649 8,200 - 344,849 Total 13,284,807 54,889 - 13,339,696 Less accumulated depreciation for: Buildings and improvements 7,287,023 424,757 - 7,711,780 Equipment 289,211 10,773 - 299,984 Total 7,576,234 435,529 - 8,011,764 Total, net depreciation 5,708,573 (380,640) - 5,327,932 Golf Course Fund net capital assets6,926,183$ (380,640)$ -$ 6,545,542$ Transportation Fund: Capital assets, not being depreciated: Construction in progress 402,225$ 1,010,433$ -$ 1,412,658$ Total 402,225 1,010,433 - 1,412,658 Capital assets, being depreciated: Buildings and improvements 5,070,820 - - 5,070,820 Equipment 5,943,650 39,128 - 5,982,778 Intangibles 30,906 - - 30,906 Total 11,045,376 39,128 - 11,084,504 Less accumulated depreciation for: Buildings and improvements 941,215 246,199 - 1,187,414 Equipment 2,993,125 545,140 - 3,538,265 Intangibles 19,058 3,091 - 22,149 Total 3,953,398 794,430 - 4,747,828 Total, net depreciation 7,091,978 (755,302) - 6,336,676 Transportation Fund net capital assets7,494,203$ 255,131$ -$ 7,749,334$

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73 Balance at Balance atJune 30, 2021 Additions Disposals June 30, 2022Solid Waste Management Fund: Capital assets, not being depreciated: Land 746,754$ -$ -$ 746,754$ Construction in progress 10,979 31,127 - 42,106 Total 757,733 31,127 - 788,860 Capital assets, being depreciated: Buildings and improvements 3,235,490 - - 3,235,490 Equipment 22,226 - - 22,226 Total 3,257,716 - - 3,257,716 Less accumulated depreciation for: Buildings and improvements 515,254 64,748 - 580,002 Equipment 19,908 772 - 20,680 Total 535,162 65,520 - 600,682 Total, net depreciation 2,722,554 (65,520) - 2,657,034 Solid Waste Fund net capital assets3,480,287$ (34,393)$ -$ 3,445,894$ Theatres Fund: Buildings and improvements 900,930$ -$ -$ 900,930$ Equipment 670,497 44,942 23,548 691,891 Total 1,571,427 44,942 23,548 1,592,821 Less accumulated depreciation for: Buildings and improvements 682,081 24,607 - 706,688 Equipment 410,676 39,466 23,548 426,594 Total 1,092,757 64,073 23,548 1,133,281 Total, net depreciation 478,670 (19,131) - 459,540 Theatres Fund net capital assets478,670$ (19,131)$ -$ 459,540$ Total capital assets, net171,998,644$ 730,071$ 440,118$ 172,288,597$

Water Utility Fund buildings and improvements additions of $4.2 million are primarily due to Willow Lane utility improvements, poly-butylene replacement, Los Feliz Drive utility improvements, valve replacements, and water interconnects. Construction in progress additions of $3.3 million are primarily due to upgrades to program logic controllers and pressure reducing station improvements.

Wastewater Utility Fund construction in progress additions of $1.1 million are primarily due to FOG station improvements, program logic controllers upgrade, Municipal Service Center (MSC) solar canopies, HCTP retaining wall, and Unit W improvements. Equipment additions of $0.5 million are primarily due to valve and pump purchases.

Transportation Fund construction in progress additions of $1.0 million are primarily due to solar canopies at the MSC.

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74 (c) Depreciation Expense

Depreciation expense charged to functions/programs of the primary government as of June 30, 2022, is as follows:

Governmental activities: General government 2,228,412$ Public safety 311,118 Transportation 210,578 Community development 12,515,246 Culture and leisure 1,475,433 Total depreciation expense - governmental activities 16,740,787$ Business-type activities: Water 2,457,609$ Wastewater 5,769,923 Golf Course 435,529 Transportation 794,430 Solid Waste Management 65,520 Theatres 64,073 Total depreciation expense - business-type activities 9,587,084$ (d) Construction and Significant Commitments

As of June 30, 2022, the City has twelve material construction commitments resulting from contractual agreements as follows:

Funding SourcesContractual CommitmentAmount spent through June 30, 2022Commitment BalancePavement Overlay Gas Tax, Water, Wastewater, Capital Improvements 13,466,325$ 4,116,974$ 9,349,351$ Willow Lane Improvements Gas Tax, Grants, Capital Improvements, Water 3,920,282 3,639,717 280,565 Program Logic Control Upgrade Water, Wastewater 3,641,962 3,100,531 541,431 Slurry Program Gas Tax, Capital Improvements 2,660,214 471,134 2,189,080 Meadows Reservoir Repairs Water 2,380,556 839,089 1,541,467 Lawrence Dr & Teller Rd General Fund, Capital Improvements 2,021,221 1,589,805 431,416 Rancho Rd Sidewalk Grants 1,811,370 1,544,041 267,329 Los Feliz Sidewalks Grants, Capital Improvements, Water 1,710,085 1,618,509 91,576 Solar Canopies at MSC General Fund, Lighting and Landscape, Water, Wastewater, Transportation1,435,166 1,371,154 64,012 HCTP Retaining Wall Wastewater 1,339,472 59,556 1,279,916 Poly-Butylene Replacement Water 1,291,368 935,755 355,613 Curb Ramp CW Gas Tax 1,006,500 952,500 54,000 36,684,521$ 20,238,765$ 16,445,756$

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75 (e) Lease Asset Receivables

The City entered into a site lease amendment agreement to lease out vacant land during fiscal year 2019-20 for eleven years plus two five-year extension options at the end of the initial lease term, for a total of twenty-one years. Payments are due in advance with a 3.00 percent increase annually. The annual interest rate charged on the lease is 4.25 percent.

During the fiscal year the City recognized a corresponding deferred inflow of resources of $26,948, and as of June 30, 2022, the balance of the deferred inflow of resources is $485,056.

(5) INTERFUND RECEIVABLES, PAYABLES, ADVANCES, AND TRANSFERS

(a) Interfund Receivables and Payables

Total interfund receivables and payables as of June 30, 2022, are as follows:

Receivable Fund Payable Fund Purpose AmountGeneral Golf Course Internal loan 635,000$ Other governmental funds Operational short term loans2,950,479 3,585,479$ Total interfund receivables/payables

Details of the interfund receivable/payable of $635,000 between the Golf Course Fund and General Fund are as follows:

On February 1, 2005, the Los Robles Golf Course Fund borrowed $4,290,000 from the General Fund to redeem in full all outstanding 1999 Los Robles Golf Course Lease Revenue Bonds. The Golf Course loan is recorded as an interfund payable in the proprietary funds and as an interfund receivable in the General Fund. Annual loan payments ranging from $135,000 to $330,000 are due June 30 of each year starting 2006 through 2024. An initial interest rate of 2.90 percent was adjusted on July 1, 2010, to 3.58 percent, and each five years thereafter to one-half of one percent greater than the City’s investment portfolio monthly yield. As of June 30, 2022, $635,000 is outstanding with an interest rate of

1.50 percent.

75 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

76 (b) Interfund Transfers

The interfund transfers reflected in the governmental funds financial statements for the fiscal year ended June 30, 2022, are as follows:

From Fund: To Fund: Purpose AmountGeneral Other governmental funds Lease revenue bond debt svc payment 1,000,587$ Flood Control Fund subsidy 94,904 Open space transfer 100,000 General Captial Improvements Streets and road improvements 2,500,000 State Gas Tax General Reimbursement for engineeringexpenditures 785,911 Capital Improvements General Reimbursement for engineeringexpenditures and facility fees transfer 276,423 Capital Improvements Other governmental funds Reimbursement for signal maintenance 99,178 Other governmental funds General Reimbursement for bike pathmaintenance expenditures 6,008 Water Utility General Reimbursement for emergency repairs 86,461 Golf Course Other governmental funds Reimbursement for non-resident fees 43,552 Solid Waste Other governmental funds Reimbursement for stormwater cleanouts 100,000 Total interfund transfers 5,093,024$

76 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

77 (6) FUND BALANCES FOR GOVERNMENTAL FUNDS

Fund balances as of June 30, 2022, for governmental funds are categorized as nonspendable, restricted, committed, assigned or unassigned for the following purposes:

Capital TO HousingOthe r Tota lGeneral Library State Gas Improvements SuccessorGove rnme nta l Gove rnme nta lFund Fund Tax Fund Fund FundFunds FundsFund Ba la nc e s:Nonspe nda ble :Inventories 666,997$ -$ -$ -$ -$ -$ 666,997$ Loans/notes receivable 520,698 - - - - - 520,698 S ubtota l1 ,1 87,695 - - - - - 1 ,1 87,695 Re stric te d for:Capital projects - - 5,060,002 7,426,807 - 2,599 1 2,489,408 Culture and leisure - 1 ,659,228 - - - 2,946,631 4,605,859 Debt service - - - - - 321 321 Housing & community dev. - - - - 2,029,1 93 3,524,988 5,554,1 81 Pension Rate Stabilization Trust Fund 20,1 1 5,837 - - - - - 20,1 1 5,837 Public safety - - - - - 259,367 259,367 Transportation - - - - - 1 3,362,1 69 1 3,362,1 69 S ubtota l20,1 1 5,837 1 ,659,228 5,060,002 7,426,807 2,029,1 93 20,096,075 56,387,1 42 Committe d to:Capital projects 1 5,1 1 7,500 - - - - 2,337,395 1 7,454,895 Grant endowments 8,000,000 - - - - - 8,000,000 Emergency reserve 5,791 ,351 - - - - - 5,791 ,351 Working capital reserve 1 7,374,052 - - - - - 1 7,374,052 S ubtota l46,282,903 - - - - 2,337,395 48,620,298 Assigne d to:Capital projects - - - 5,953,346 - - 5,953,346 Community development 33,002,687 - - - - - 33,002,687 Compensated absences 4,81 7,247 - - - - - 4,81 7,247 Continuing appropriations 1 0,1 02,31 0 - - - - - 1 0,1 02,31 0 Culture and leisure 64,490 - - - - - 64,490 Equipment replacement - - - - - 1 5,1 31 ,065 1 5,1 31 ,065 General government 3,233,1 22 - - - - - 3,233,1 22 Legal contingency 2,500,000 - - - - - 2,500,000 Loans/notes receivable 3,585,479 - - - - - 3,585,479 Public bldg replacement/mtnc 1 4,559,000 - - - - - 1 4,559,000 Public safety 3,455,289 - - - - - 3,455,289 Transportation 1 2,656,342 - - - - - 1 2,656,342 S ubtota l87,975,966 - - 5,953,346 - 1 5,1 31 ,065 1 09,060,377 Una ssigne d:1 0,599,928 - - - - (3,660,457) 6,939,471 Tota l fund ba la nc e s1 66,1 62,329$ 1 ,659,228$ 5,060,002$ 1 3,380,1 53$ 2,029,1 93$ 33,904,078$ 222,1 94,983$ Ma jor Funds

77 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

78 (7) LONG-TERM LIABILITIES

The following is a summary of changes in the City’s long-term liabilities for the fiscal year ended June 30, 2022:

Balance at Balance at Due WithinJune 30, 2021 Additions Disposals June 30, 2022 One YearGovernmental ActivitiesClaims payable (1) 3,503,900$ 2,811,644$ 1,848,844$ 4,466,700$ 1,190,000$ Compensated absences (1) 5,118,740 1,485,807 1,643,096 4,961,451 2,317,348 Lease revenue bonds (2) 8,960,520 - 757,742 8,202,778 787,742 Total 17,583,160$ 4,297,451$ 4,249,682$ 17,630,929$ 4,295,090$ Business-type Activities:Water Utility Fund: Compensated absences (1) 632,763$ 466,754$ 516,165$ 583,352$ 232,441$ Wastew ater Utility Fund: Compensated absences (1) 981,708 1,108,491 1,225,837 864,362 371,129 2000 state loan 3,911,155 - 1,929,529 1,981,626 1,981,626 Transportation Fund: Compensated absences (1) 107,670 69,478 76,833 100,315 42,735 Solid Waste Management Fund: Compensated absences (1) 77,070 51,398 56,839 71,629 37,959 Theatres Fund: Compensated absences (1) 143,459 525,994 480,041 189,412 81,598 Total 5,853,825$ 2,222,115$ 4,285,244$ 3,790,696$ 2,747,488$ (1)(2) Lease Revenue Bonds of $8,202,778 consist of original par amount of $8,790,000 and unamortized issue premiums of $737,778, net of cumulative principal payments of $1,325,000.Refer to Note 9 for additional detail of insurance claims payable and Note 1(l) for additional detail of compensated absences.

(a) Governmental Activities – Lease Revenue Bonds

Thousand Oaks Public Financing Authority – 2020 Refunding Lease Revenue Bonds

On April 15, 2020, the Authority issued $8,790,000 of 2020 Refunding Lease Revenue Bonds. The purpose of the bonds is to redeem the Authority’s 2010 Refunding Lease Revenue Bonds. These bonds are payable solely from, and secured by, a pledge of revenues consisting primarily of lease payments to be made by the City pursuant to a lease agreement. If the City defaults on its obligation to make lease payments due over the term of the lease agreement, there is no available remedy of acceleration of the total lease payments due over the term of the lease agreement. The bonds mature annually in amounts ranging from $650,000 on June 1, 2021, to $970,000 in 2031. Interest on the 78 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

79 bonds is payable on June 1 and December 1 of each year, at an interest rate of 4.0 percent.

As of June 30, 2022, amounts outstanding with and without unamortized premiums are $8,202,778 and $7,465,000, respectively.

Future Debt Payments – Refunding Lease Revenue Bonds

As of June 30, 2022, total future debt payments for the 2020 Refunding Lease Revenue Bonds, including interest thereon, are as follows:

Year EndingJune 30, Principal Interest Total2023 705,000$ 298,600$ 1,003,600$ 2024 730,000 270,400 1,000,400 2025 765,000 241,200 1,006,200 2026 795,000 210,600 1,005,600 2027 825,000 178,800 1,003,800 2028-2031 3,645,000 372,200 4,017,200 Total 7,465,000$ 1,571,800$ 9,036,800$ 2020 Refunding Lease Revenue Bonds (b) Business-type Activities – Notes/Loans Payable

State of California – 2000 State Water Resources Control Board (SWRCB) (Direct Borrowing)

On January 11, 2000, the SWRCB authorized a State of California loan to the City. The purpose of the loan was for operational improvements to the HCTP to comply with waste discharge requirements and expand the capacity of the HCTP. In fiscal year 2000-01, the City borrowed $20,100,000 and in fiscal year 2001-02, the City borrowed an additional $8,751,032. During fiscal year 2002-03, the City borrowed an additional $976,474 that resulted in a total state loan of $29,827,506. The interest rate on the loan is 2.7 percent.

Accrued interest accumulated during construction, in the amount of $1,308,946, was transferred to the principal balance increasing the total loan amount to $31,136,452. The loan is to be repaid in twenty annual installments (principal and interest) beginning 2003 through December 2022. As of June 30, 2022, $1,981,626 is outstanding.

The loan agreement may be terminated by the SWRCB upon the City’s violation of a material provision of the loan agreement. In the event of a termination, the City has agreed, upon demand, to immediately repay SWRCB an amount equal to installment payments due, including accrued interest, and all penalty assessments due. In the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to the City to the date of full repayment by the City.

79 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

80 Future Debt Payments – 2000 State Water Resources Control Board Loan Payable

As of June 30, 2022, total future debt payments for the SWRCB loan payable, including interest thereon, are as follows:

Year EndingJune 30, Principal Interest Total2023 1,981,626$ 53,504$ 2,035,130$ 2000 SWRCB Loan

(8) NON-OBLIGATORY DEBT

(a) Assessment Debt

The City has two existing community facilities districts and subsequently issued bonds for the construction of public improvements within these districts. The bonds are liabilities of the property owners and are secured by liens against the assessed property. The City acts merely as the fiscal agent for the collection of principal and interest payments from the property owners, disbursement of such monies to the bondholders and, if appropriate, initiation of foreclosure proceedings. As such, these bonds in the outstanding amount of $15,865,000 as of June 30, 2022, are not considered obligations of the City and are not reflected in the accompanying basic financial statements.

(b) Multifamily Housing Revenue Bonds

Multifamily Housing Revenue Bonds provide financing for multifamily rental projects. The bonds are secured by payments made by the project owner and by the underlying property.

The bonds are also secured by third-party guarantees for the unequivocal and timely payment of the principal and interest on the bonds. As such, these bonds in the outstanding amount of $3,968,365 as of June 30, 2022, are not considered obligations of the City and are not reflected in the accompanying basic financial statements.

(9) RISK MANAGEMENT

The City maintains self-insurance programs for general liability, workers’ compensation, and vision claims. The City contracts with an actuarial consultant to calculate estimated reserve requirements for general liability and workers’ compensation claims on an annual basis. The actuarially determined liabilities as of June 30, 2022, are $2,366,700 for general liability and $2,100,000 for workers’ compensation, which included estimates for incurred, but not reported, claims. No liability has been accrued for vision claims, as any accrued claims are deemed immaterial. Liability insurance has been purchased for general liability claims in excess of $1,000,000 per occurrence to a maximum of $25,000,000. A workers’ compensation policy has been purchased for claims in excess of $500,000 and the coverage is statutory. A reserve has been accumulated in the Vision Insurance Fund equal to one year of claims experience.

80 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

81 All applicable funds of the City participate in the workers’ compensation, general liability, and vision insurance programs and make payments to the respective internal service funds based upon loss experience and exposure.

The claims liability (claims payable) reported as of June 30, 2022, is in compliance with the requirements of GASB Statement No. 10, which requires a liability for claims be reported if information prior to the issuance of the financial statements indicates it is probable a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. There were no claims paid in the previous three fiscal years that exceeded insurance coverage limits.

Changes in the General Liability and Workers’ Compensation funds aggregate undiscounted outstanding claims liability for fiscal years 2021-22 and 2020-21 are presented as follows:

Claims PayableClaims andClaims PayableFiscal YearBalanceChangesClaimsBalance2021-22June 30, 2021in EstimatesPaymentsJune 30, 2022General Liability1,829,000$ 1,972,533$ (1,434,833)$ 2,366,700$ Workers' Compensation1,674,900 839,111 (414,011) 2,100,000 Total3,503,900$ 2,811,644$ (1,848,844)$ 4,466,700$ Claims PayableClaims andClaims PayableFiscal YearBalanceChangesClaimsBalance2020-21June 30, 2020in EstimatesPaymentsJune 30, 2021General Liability1,781,000$ 460,985$ (412,985)$ 1,829,000$ Workers' Compensation1,680,000 290,257 (295,357) 1,674,900 Total3,461,000$ 751,242$ (708,342)$ 3,503,900$ (10) JOINTLY GOVERNED ORGANIZATION

(a) Conejo Open Space Conservation Agency (COSCA)

In 1977, the City entered into a Joint Powers Agreement with the Conejo Recreation and Park District (CRPD) to form COSCA. The Agency is governed by a five-member board consisting of two City Council members, two CRPD members, and one private citizen of the City. Expenses of COSCA are shared equally between the City and CRPD. The City is responsible for the fiscal management of COSCA activities and has an equity interest of 50 percent. The equity interest is recorded in capital assets in the statement of net position because the amount is material to the City. Separate audited financial statements for COSCA are available from the City of Thousand Oaks’ Finance Department.

81 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

82 (b) Ventura Council of Governments (VCOG)

The City is a member of VCOG, which is a voluntary joint powers authority representing the ten cities of Ventura County and the County. VCOG’s goal is to facilitate cooperative regional planning, coordination, and technical assistance on issues of mutual concern to advance city-county collaboration, and to provide a regional platform for the review of federal and state projects involving the use of federal and/or state funds. The governing body consists of a designated member and a designated alternate member from each City and the County of Ventura Board of Supervisors.

Financial information for VCOG can be found at http://www.venturacog.org.

The City is a member of the CSCDA which is a joint powers authority sponsored by the California State Association of Counties and the League of California Cities. CSCDA was created to provide California’s local governments with an effective tool to timely finance community-based public benefit projects that contribute to social and economic growth and improve the overall quality of life in communities throughout California.

Financial information for CSCDA can be found at www.cscda.org.

(d) Clean Power Alliance (CPA)

The City is a member of the CPA of Southern California which is a joint powers authority with unincorporated Los Angeles County, Rolling Hills Estates, and South Pasadena as founding members that has grown to a coalition of 32 communities across Los Angeles and Ventura counties. The CPA was established to provide cost competitive electric services, reduce electric sector greenhouse gas emissions, stimulate renewable energy development, implement distributed energy resources, promote energy efficiency and demand reduction programs, and sustain long-term rate stability for residents and businesses through local control.

Financial information for CPA can be found at www.cleanpoweralliance.org.

(11) RETIREMENT PLANS

(a) California Public Employees’ Retirement System (CalPERS)

General Information

Plan description - The City contributes to CalPERS, an agent multiple-employer defined benefit pension plan (Plan). CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within 82 Item No.7I

CITY OF THOUSAND OAKS

Notes to Basic Financial Statements
(continued)

June 30, 2022

83 the State of California. Separate financial statements for CalPERS may be obtained by contacting CalPERS at CalPERS, Lincoln Plaza North, 400 Q Street, Sacramento, California 95811, or by visiting the CalPERS website at www.calpers.ca.gov.

Benefits provided - All full-time City employees are eligible to participate in CalPERS, with benefits vesting after 5 years of service. Those who retire at the minimum retirement age with at least 5 years of credited service are entitled to an annual retirement benefit, payable monthly for life, equal to the product of the benefit factor, years of service, and final compensation. The years of service is the amount credited by CalPERS to a member while employed in the group. The benefit factor depends on the member’s age at retirement and whether they are classic or PEPRA members.

For classic members, hired before January 1, 2013, the minimum retirement age is 50 and retirees are subject to the 2.0 percent at age 55 formula. The benefit factors range from

1.426 percent at age 50 to 2.418 percent at age 63 and up. Final compensation for classic members is the monthly average of the member’s highest 12 consecutive months’ full-time equivalent monthly pay.

Per the Public Employees’ Pension Reform Act of 2013 (PEPRA), employees hired after January 1, 2013, and not a member of any other public retirement system with reciprocity, the minimum retirement age is 52 and retirees are subject to the 2.0 percent at age 62 formula. The benefit factors range from 1.000 percent at age 52 to 2.500 percent at age 67 and up. Final compensation for members is the monthly average of the member’s highest 36 consecutive months’ full-time equivalent monthly pay.

Plan membership - As of June 30, 2021, pension plan membership consisted of the following:

Retired plan members or beneficiaries currently receiving benefits 538Active plan members 339Total 877 Contribution - Classic employees are required to contribute 7.0 percent of their annual covered salary as established by state statute. PEPRA employees are required to contribute half of the normal cost of the plan, which was 7.00 percent in fiscal year 2020-21. The City is required to contribute at an actuarially determined rate of annual covered payroll for non- safety employees. The City does not have a required contribution for safety employees since it contracts for police services and the Ventura County Fire Protection District provides fire services. The employer normal cost rate from July 1, 2020, to June 30, 2021, was 9.902 percent. During fiscal year 2020-21 the City contributed $10,812,931.

83 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

84 Net Pension Liability

The total pension liability determined by an actuarial valuation as of June 30, 2020, using the following actuarial assumptions, applied to all periods included in the measurement:

Valuation Date June 30, 2020

Measurement Date June 30, 2021

Measurement Period July 1, 2020 to June 30, 2021

Actuarial Cost Method Entry Age Normal

Actuarial Assumptions:

Discount Rate 7.15%

Inflation 2.5%

Salary Increases Varies by Entry Age and Service

Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes inflation.

Mortality Rate Table Based on 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and
Post-retirement Mortality Rates include 15 Years of
projected mortality improvement using 90% of
Scale MP-2016 published by the Society of
Actuaries.

All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increases, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount rate - The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. This long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed 84 Item No.7I

CITY OF THOUSAND OAKS

Notes to Basic Financial Statements
(continued)

June 30, 2022

85 report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.

Changes of Assumptions

There were no changes of assumptions in the June 30, 2020, actuarial valuation.

Changes in the Net Pension Liability

The table below shows the changes in net pension liability recognized over the measurement period.

Total Pension Plan Fiduciary Net PensionLiability Net Position Liability/(Asset)Balance at: 6/30/2020 321,315,894$ 248,193,027$ 73,122,867$ Service Cost 5,083,179 - 5,083,179 Interest on Total Pension Liability 22,596,906 - 22,596,906 Changes of Benefit Terms - - - Changes of Assumptions - - - Differences between Expected and Actual Experience 947,998 - 947,998 Net Plan to Plan Resource Movement - - - Contributions - Employer - 10,812,931 (10,812,931) Contributions - Employees - 2,164,564 (2,164,564) Net Investment Income - 55,874,271 (55,874,271) Benefit Payment, including Refunds of Employee Contributions (17,529,675) (17,529,675) - Administrative Expense - (247,930) 247,930 Other Miscellaneous Income/(Expense) - - - Net Changes during FY 2020-21 11,098,408$ 51,074,161$ (39,975,753)$ Balance at: 6/30/2021 332,414,302$ 299,267,188$ 33,147,114$ Changes Recognized for theMeasurement Period Sensitivity of the net pension liability to changes in the discount rate - The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:
1% Current 1%Decrease Discount Rate Increase6.15% 7.15% 8.15%Net pension liability 72,510,947$ 33,147,114$ 64,159$ 85 Item No.7I

CITY OF THOUSAND OAKS

Notes to Basic Financial Statements
(continued)

June 30, 2022

86 Pension Income and Deferred Outflows/Inflows of Resources Related to Pensions

Pension income - For the measurement period ending June 30, 2021, the City earned pension income of $15,041 for the Plan.

Deferred outflows and deferred inflows - For the measurement period ending June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflowsof Resources of ResourcesPension Contributions Subsequent to Measurement Date 11,030,340$ -$ Changes of Assumptions - - Differences between Expected and Actual Experiences 771,491 (476,226) Net Difference between Projected and Actual Earnings - (27,764,848) Total 11,801,831$ (28,241,074)$ $11,030,340 reported as deferred outflows of resources related to pension contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2023. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as future pension expense as follows:

DeferredMeasurement Period Outflows/(Inflows)Ended June 30, of Resources2022 (6,998,582)$ 2023 (6,211,866) 2024 (6,592,978) 2025 (7,666,157) 2026 - Thereafter -

(b) City of Thousand Oaks Defined Benefit Pension Plan

General Information

Plan description - Effective January 1, 1992, hourly and part-time employees became eligible to participate in the City of Thousand Oaks’ single-employer defined benefit pension plan (Plan). City Council approved establishment of the Plan. Public Agency Retirement System (PARS) is the trust administrator of the Plan and U.S. Bank is the trustee of the Plan. The City has the authority to establish and amend the benefit terms. Separate 86 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

87 financial statements for PARS may be obtained by contacting PARS at Public Agency Retirement Services, 4350 Von Karman Ave, Suite 100, Newport Beach, CA 92660.

Separate financial statements for U.S. Bank may be obtained by contacting U.S. Bank at U.S. Bank, 3121 Michelson Drive, Suite 300, Irvine, CA 92612.

Benefits provided - The plan is a career average retirement plan that provides eligible employees retirement benefits equal to 2.0 percent of compensation earned after implementation of the plan for the last 30 years of employment. The plan vests immediately upon participation and provides termination benefits of a lump sum distribution upon termination or the greater of present value of accrued retirement benefit and accumulation of employee contributions with interest at 5.0 percent. Attainment of age 65 is required to receive retirement benefits. The plan also provides death benefits at the greater of present value of accrued retirement benefit and accumulation of employee contributions with interest at 5.0 percent.

Plan membership - As of January 1, 2022, pension plan membership consisted of the following:

Inactive plan members or beneficiaries currently receiving benefits 155Active plan members 234Total 389 Contribution - Participants are required to contribute 3.5 percent of their salary to the plan.

The City currently contributes 10.0 percent, which covers the actuarially determined amount and the administrative costs of the plan. During fiscal year 2021-22 the City contributed $94,000.

Net Pension Liability

Actuarial assumptions - The following actuarial methods and assumptions were used in the January 1, 2022 funding valuation:

Valuation Timing Actuarially determined contribution amounts are calculated as of January 1, and payable for the
current and subsequent plan years ending
December 31.

Actuarial Cost Method Projected Unit Credit

Amortization Method
Level percent or level dollar Level dollar
Closed, open, or layered periods Closed
Amortization period at 1/1/2022 18 years
Amortization growth rate 0.00%

87 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

88 Asset Valuation Method
Smoothing period None
Recognition method None
Corridor None

Inflation 2.50%

Salary Increases 3.00%

Investment Rate of Return 6.00%

Payroll Growth 3.00%

Withdrawal Hourly/Part-time Employee: rates apply as follows:

Probability of
Attained Age Termination
Under age 20 80%
20-24 40%
25-65 20%

Full-time Employees: Consistent with the Non-
Industrial rates used to value the Miscellaneous
Agency CalPERS Pension Plans after June 30,
2021.

Mortality Pre-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Agency
CalPERS Pension Plans after June 30, 2021.

Post-Retirement: Consistent with the Non-Industrial
rates used to value the Miscellaneous Agency
CalPERS Pension Plans after June 30, 2021.

Retirement Hourly/Part-time Employee: rates apply as follows:

Probability
Attained Age of Retirement
64 or younger 0%
65-74 50%
75 and older 100%

88 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

89 Full-time employees: Retirement rates are based
on CalPERS rates after June 30, 2021 for Public
Miscellaneous Agency “2% at 55” plans (20 years
of service).

Form of Payment 90% of future terminating employees are assumed to take an immediate lump sum. The remaining
10% are assumed to take a lump sum at age 65.

The non-economic actuarial assumptions that determined the total pension liability as of June 30, 2022, were in part based on the results of an actuarial experience study of the California Public Employees’ Retirement System for the period 1997-2019 and released in November 2021. The assumption for the number of terminations and retirements for hourly active employees is based on City experience and directives.

Valuation Date January 1, 2022

Measurement Date June 30, 2022

Actuarial Cost Method Entry Age Normal

Inflation 2.50%

Salary Increases Including Inflation 3.00%

Discount rate - The discount rate used to measure the total pension liability was 6.00 percent. 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.

The assumption for the long-term expected rate of return was selected by the City. The projection is based on a 30-year average return derived by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation on the plan’s current asset allocation. The capital market assumptions are per Milliman’s investment consulting practice as of June 30, 2022.

The table on the following page reflects long-term expected real rate of return by asset class.

89 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

90 Asset Class AllocationLong-Term Expected Arithmetic Real Rate of ReturnLong-Term Expected Geometric Real Rate of ReturnUS Cash 6.23% 0.21% 0.20%US Core Fixed Income 46.31% 1.95% 1.84%US Equity Market 37.82% 5.70% 4.10%Foreign Developed Equity 4.76% 6.99% 5.25%Emerging Market Equity 3.11% 9.44% 5.97%US REITs 1.77% 6.27% 4.11%Assumed Inflation - Mean 2.35% 2.35%Assumed Inflation - Standard Deviation 1.25% 1.25%Portfolio Real Mean Return 3.81% 3.41%Portfolio Nominal Mean Return 6.16% 5.85%Portfolio Standard Deviation 8.26%Long-Term Expected Rate of Return 6.00% Changes in the Net Pension Liability

The following table shows the changes in net pension liability recognized over the measurement period.

Total Pension Plan Fiduciary Net PensionLiability Net Position Liability/(Asset)(a) (b) (a) - (b)Balance at: 6/30/2021 3,654,503$ 4,045,758$ (391,255)$ Service Cost 48,123 - 48,123 Interest on the Total Pension Liability 216,667 - 216,667 Effect of Economic/Demographic Gains or Losses (733,383) - (733,383) Effect of Assumptions Changes or Inputs (25,806) - (25,806) Benefit Payment (185,700) (185,700) - Contributions, Employer - 94,000 (94,000) Contributions, Employees - 62,798 (62,798) Net Investment Income - (535,262) 535,262 Administrative Expenses - (28,826) 28,826 Net Changes during 2021-22 (680,099) (592,990) (87,109) Balance at: 6/30/2022 2,974,404$ 3,452,768$ (478,364)$ Changes for the year:

Sensitivity of the net pension liability to changes in the discount rate - The following presents the net pension liability of the Plan, calculated using the discount rate of 6.00 percent, as well as what the Plan’s net pension liability would be if it were calculated using a 90 Item No.7I

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June 30, 2022

91 discount rate 1 percentage-point lower (5.00 percent) or 1 percentage-point higher (7.00 percent) than the current rate.

1% Current 1%Decrease Discount Rate Increase5.00% 6.00% 7.00%Total pension liability 3,143,660$ 2,974,404$ 2,831,784$ Fiduciary net position 3,452,768 3,452,768 3,452,768 Net pension liability (309,108)$ (478,364)$ (620,984)$

Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions

Pension expense - For the fiscal year ended June 30, 2022, the City recognized a pension income of $127,017 for the Plan.

Deferred outflows and deferred inflows - As of June 30, 2022, the City reported deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflowsof Resources of ResourcesChanges of Assumptions -$ (19,662)$ Differences between Expected and Actual Experience - (574,970) Net Difference between Projected and Actual Earnings 342,413 - Total 342,413$ (594,632)$

Amounts currently reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

DeferredYear Ended Outflows/(Inflows)June 30, of Resources*2023 (127,891)$ 2024 (111,099) 2025 (132,337) 2026 119,108 2027 - Thereafter - *Additional future deferred inflows and outflows of resources may impact these numbers.

91 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

92 (c) Summary of Retirement Plans

The following tables show the aggregate amount of Net Pension Liability/(Asset) and Deferred Outflow/(Inflows) shown on the Government-Wide Statement of Net Position related to pensions, as well as the aggregate amount of pension expense allocated to the Government-Wide Statement of Activities. The CalPERS and Defined Benefit pension plans have different measurement dates. As a result, the tables show the changes for pensions as reported during the fiscal year.

CalPERS Defined BenefitNet Pension Net Pension Total Net PensionLiability/(Asset) Liability/(Asset) Liability/(Asset)Balance at fiscal year ended 6/30/21 73,122,867$ (391,255)$ 72,731,612$ Net changes during measurement period (39,975,753) (87,109) (40,062,862) Balance at fiscal year ended 6/30/22 33,147,114$ (478,364)$ 32,668,750$ Measurement Date: 6/30/2021 6/30/2022

Deferred Outflows Deferred Inflowsof Resources of ResourcesPension Contributions Subsequent to Measurement Date 11,030,340$ -$ Changes of Assumptions - (19,662) Differences between Expected and Actual Experience 771,491 (1,051,196) Net Difference between Projected and Actual Earnings 342,413 (27,764,848) 12,144,244$ (28,835,706)$ Total CalPERS & Defined BenefitTotal deferred pension items for the fiscal year ended 6/30/2022

Defined TotalCalPERS Benefit Pension IncomePension Income 15,041$ 127,017$ 142,058$ Measurement Date: 6/30/2021 6/30/2022Fiscal Year 2021-22

92 Item No.7I

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(continued)

June 30, 2022

93 (12) DEFERRED COMPENSATION

The City provides a 401(a) plan, a 457 deferred compensation plan, Roth Individual Retirement Account (IRA), and a Retiree Health Savings (RHS) plan to its employees pursuant to applicable Federal and State laws. The City contributes on behalf of permanent employees into the 401(a) and RHS plans. Contribution amounts are determined per contract between the City and the employee organizations for the City’s management, professional, and general employees, as well as City Council resolution for the City’s executive management. Employees participating in either the 401(a) and 457 plans may defer income tax recognition on contributions to the plans, up to specified amounts, and on earnings resulting from the investment of these contributions. Employees participating in a Roth IRA plan contribute after tax dollars, up to specified amounts, and qualified plan withdrawals are tax free. The RHS plan contributions and earnings resulting from the investment of these contributions do not have any tax implications and remain tax free after qualified withdrawal. Funds in 401(a), 457, Roth IRA, and RHS plans are invested by the plan administrator in any one of several approved investment programs mutually agreed upon by the participant and the plan administrator, which acts as a trustee for the plans. Funds from the 401(a) and 457 plans may be withdrawn upon retirement, disability, or separation from City employment by the participant and such funds become subject to income tax at that time. Additionally, the 401(a) plan allows for in-service distributions based on the normal age of retirement of 50 as established by the plan in compliance with IRS rules. Also, the 457 plan allows for no more than one participant plan loan to be made in any 12-month period. For the RHS plan, upon death of the employee without a spouse or eligible dependent, assets shall remain in the RHS plan to be reallocated among all plan participants based upon participant account balances. While the 401(a), 457, and Roth IRA plans can be used for any purpose after retirement, disability, or separation, RHS plans only allow reimbursement of medical expenses other than insurance premiums.

Federal law requires that Internal Revenue Code (IRC) Section 401(a), Section 457, Section 219 (Roth IRA), and Section 106 (RHS) plan assets be held in trust for employees. In accordance with IRC Sections 401(a), 457, 219, and 106, all assets in the plans remain the property of the employees and are not legally the property of the City and are not subject to claims of the City’s general creditors. These assets have been placed in a trust, and as such represent a general liability of the plan administrator to these employees. With respect to such amounts, the City has no liability for losses under the plans but does have the duty of due care in monitoring the plan administrator’s performance. Participants’ rights under the plans are equal to the fair market value of the deferred amount for each participant. As of June 30, 2022, deferred compensation assets are $84,666,058 and have been excluded from the City’s financial statements. For the fiscal year ended June 30, 2022, employee contributions to 401(a), 457, and RHS plans totaled $168,615, $2,285,698, $196,338, and $22,253, respectively, while employer contributions to 401(a) and RHS plans totaled $831,826 and $139,874, respectively.

93 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

94 (13) POST-EMPLOYMENT HEALTHCARE PLAN

(a) Plan Description

In addition to the pension benefits described in Note 11, the City provides other post- employment benefits (OPEB) through the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple-employer defined benefit healthcare plan administered by CalPERS, by contributing a predetermined monthly maximum of $435 for each eligible retiree and spouse toward health insurance. These benefits are provided per contract between the City and the employee associations for the City’s management, professional, and general employees. Health insurance premiums for the City Manager, City Attorney, and City Councilmembers seated prior to January 1, 2012, are fully covered per Council decision. City Councilmembers elected after January 1, 2012, receive health insurance premiums paid by the City equivalent to the minimum established amount required per the Public Employee’s Medical and Hospital Care Act (PEMHCA). As of June 30, 2022, the PEMHCA minimum is $149 per month. As of June 30, 2022, there are 306 participants receiving OPEB benefits. Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811, or by visiting the CalPERS website at www.calpers.ca.gov.

(b) Employees Covered by Benefit Terms

At the OPEB liability measurement date of June 30, 2021, the following employees were covered by the benefit terms:

Active employees 341 Inactive employees or beneficiaries currently receiving benefits 306 Inactive employees or beneficiaries entitled but not yet receiving benefits 71 Total 718

The contribution requirements of plan members and the City are established by Memorandum of Understanding and may be amended by the City, City Council, and/or the employee associations. Currently, contributions are not required from plan members. During fiscal year 2006-07, the City adopted GASB Statement No. 45, joined the CERBT, and deposited pay-as-you-go premiums of $828,226 and a one-time employer contribution of $6.0 million in the CERBT. The purpose of these contributions was to prefund benefits and cover the required City contribution rate of 5.5 percent of annual covered payroll (annual payroll of active employees covered by the plan).

94 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

95 (d) Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of benefits provided at the time of each valuation. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

As of the most recent actuarial valuation date of June 30, 2021, the required entry age normal - Level % of Pay actuarial cost method was used. The actuarial assumptions included:

Valuation Date June 30, 2021

Measurement Date June 30, 2021

Measurement Period July 1, 2020 to June 30, 2021

Actuarial Assumptions:

Discount Rate 6.25%

Inflation 2.50%

Salary Increases 2.75%

Investment Rate of Return 6.25%

Mortality Improvement MP-2020

Medical Trend Non-Medicare - 6.75% for 2022,
decreasing to an ultimate rate of 3.75% in 2076

Medicare (Non-Kaiser) - 5.85% for 2022,
decreasing to an ultimate rate of 3.75% in 2076

Medicare (Kaiser) - 4.5% for 2022,
decreasing to an ultimate rate of 3.75% in 2076

The long-term expected rate of return on OPEB plan investments is determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are 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 95 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

96 adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table below:

Asset ClassPolicy Target AllocationLong-term Expected Real Rate of ReturnGlobal Equity 59% 4.56%Fixed Income 25% 0.78%REITs 8% 4.06%TIPS 5% -0.08%Commodities 3% 1.22%Total 100%

(e) Discount Rate

The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.

Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

96 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

97 (f) Changes in Net OPEB Liability

The table below shows the changes in the total OPEB liability, the Plan Fiduciary Net Position (i.e., fair value of plan assets), and the net OPEB liability during the measurement period ending on June 30, 2021:

Total OPEB Liability Plan Fiduciary Net PositionNet OPEB LiabilityBalance at June 30, 2021(Measurement Date June 30, 2020) 25,123,587$ 19,634,856$ 5,488,731$ Changes recognized for the measurement period:Service cost 653,006 - 653,006 Interest 1,678,231 - 1,678,231 Actual vs. expected experience 93,103 - 93,103 Changes of assumptions 1,963,550 - 1,963,550 Contributions - employer - 2,050,236 (2,050,236) Net investment income - 5,512,474 (5,512,474) Benefit payments (1,827,813) (1,827,813) - Administrative expenses* - (12,963) 12,963 Net changes 2,560,077 5,721,934 (3,161,857) Balance at June 30, 2022(Measurement Date June 30, 2021) 27,683,664$ 25,356,790$ 2,326,874$ *Includes trust administrative expense and other administrative expenses.

Sensitivity of the net OPEB liability to changes in the discount rate - The following presents 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 1 percentage‐point lower (5.25 percent) or 1 percentage-point higher (7.25 percent) than the current discount rate:

1% Decrease

5.25%
Discount Rate

6.25%
1% Increase

7.25%
Net OPEB liability $ 5,192,833 $ 2,326,874 ($ 107,966)

Sensitivity of the net OPEB liability to changes in the healthcare cost trend rate - The following presents 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 Healthcare Cost Trend rate 1 percentage-point lower or 1 percentage-point higher than the current Healthcare Cost Trend rate:

1%
Decrease
Current
Healthcare Cost
Trend Rate
1%
Increase Net OPEB liability $ 1,392,481 $ 2,326,874 $ 3,740,682

97 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

98 (g) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $225,591.

OPEB expense represents the change in the net OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, and actuarial assumptions or method. As of June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows of Resources Deferred Inflows of Resources OPEB contributions subsequent to measurement date 2,108,951$ -$ Changes of assumptions 1,619,068 181,089 Differences between expected and actual experience 76,769 594,593 Net difference between projected and actual earningson OPEB plan investments - 2,968,793 Total 3,804,788$ 3,744,475$

$2,108,951 reported as deferred outflows of resources related to OPEB contributions subsequent to the measurement date is recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year EndedJune 30,DeferredOutflow/(Inflows)of Resources2023 (659,698)$ 2024 (623,945) 2025 (515,579) 2026 (501,989) 2027 252,573 Thereafter -

(14) CONTINGENT LIABILITIES

Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount of expenditures, if any, that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts to be immaterial.

98 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

99 The City is subject to various lawsuits and claims involving public liability and other actions incidental to the ordinary course of City operations. In the aggregate, those claims seek monetary damages in significant amounts. To the extent the outcome of such litigation may be determined to result in financial loss to the City, in the opinion of City management, any potential liability for these actions is adequately provided for in the basic financial statements. The timing of potential payment of such losses cannot presently be determined.

(15) SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY

On December 29, 2011, the California State Supreme Court upheld Assembly Bill X1 26 (Bill) that provided for all redevelopment agencies in the state of California to dissolve as of February 1, 2012. This action impacted the City that previously reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provided 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 10, 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- 004. Upon redevelopment dissolution, 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 payments on existing enforceable obligations of the former redevelopment agency until all enforceable obligations are paid in full and all assets are liquidated. These obligations are currently listed on a Recognized Obligation Payment Schedule (ROPS) annually and are subject to the approval of the Countywide Consolidated Oversight Board and the California Department of Finance (DOF).

In November 2013, the City, as the Successor Agency, obtained its Finding of Completion from the DOF. This milestone allowed the Successor Agency to enter into an agreement regarding the expenditure of excess bond proceeds for capital projects in a manner consistent with the original bond covenants. During fiscal year 2014-15 the DOF approved the Long-Range Property Management Plan which resulted in $43,428,316 in Successor Agency properties being transferred to the City.

As of June 30, 2022, the Successor Agency has a deficit net position of $1,716,216 as a result of its debt exceeding its total assets. The deficit is expected to be progressively eliminated as enforceable obligations are funded biannually with future property taxes.

99 Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

100

(a) Cash and Investments

Cash and investments as of June 30, 2022, are classified in the accompanying financial statements as follows:

Cash and investments pooled with the City 132,796$ Cash and investments with fiscal agent 112,927 245,723$ (b) Long-term Liabilities

Debt of the former redevelopment agency was transferred to the Successor Agency upon redevelopment dissolution. Summary of the changes in these long-term liabilities as of June 30, 2022, is as follows:

Balance at Balance at Due WithinJune 30, 2021 Additions Disposals June 30, 2022 One Year2015 Tax allocation refunding bonds 5,359,000$ -$ 3,422,000$ 1,937,000$ 168,000$

2015 Tax Allocation Refunding Bonds (Direct Borrowing)

On December 16, 2015, the Successor Agency to the former Thousand Oaks Redevelopment Agency issued tax allocation refunding bonds in the amount of $39,990,000. Proceeds of the bonds were used to solely refinance the 2002 and 2005 Tax Allocation Bonds. The bond proceeds, together with other funds deposited from reserves, redeemed the 2002 Tax Allocation Bond outstanding principal of $3,170,000, the 2005 Housing Tax Allocation Bond outstanding principal of $10,390,000, and the 2005 Tax Allocation Refunding Bond outstanding principal of $26,325,000.

The bonds are obligations of the Successor Agency and do not constitute a debt or liability of the City. Commencing on February 1, 2016, the bonds mature bi-annually in amounts ranging from $3,018,000 to $3,340,000 between 2016 and 2021, decreasing to amounts ranging from $168,000 to $222,000 between 2022 and 2032. Interest on the bonds is payable on February 1 and August 1 of each year, with interest rates fixed at 1.51 percent for tax-exempt series from 2016 to 2021, and 3.09 percent for taxable series from 2022 to 2032. As of June 30, 2022, the outstanding principal on this bond is $1,937,000.

100
Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

101

Future Debt Payments – Tax Allocation Refunding Bonds

As of June 30, 2022, the total future debt payments for the tax allocation refunding bonds, including interest thereon, are as follows:

Year EndingJune 30, Principal Interest Total2023 168,000$ 58,571$ 226,571$ 2024 173,000 53,333 226,333 2025 179,000 47,941 226,941 2026 184,000 42,379 226,379 2027 190,000 36,647 226,647 2028-2032 1,043,000 90,707 1,133,707 Total 1,937,000$ 329,578$ 2,266,578$ Tax Allocation Refunding Bonds Pledged Revenue

The City pledged a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass-through allocations) that it receives as security for bonds issued. The tax allocation refunding bonds were issued to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects, and to defease previously issued bonds. The Bill provides that upon dissolution of redevelopment agencies, property taxes allocated to redevelopment agencies are no longer deemed tax increment but rather property tax revenues to be allocated to successor agencies to make payments on enforceable obligations of the former redevelopment agency. As of June 30, 2022, total principal and interest remaining on the debt are $2,266,578 with annual debt service requirements as indicated above. Total property tax revenues recognized by the City, for the fiscal year ended June 30, 2022, in the Successor Agency Fund for enforceable obligations of the former redevelopment agency are $295,610 and the debt service obligation on the bonds is $3,518,428.

The City, on behalf of the Successor Agency, maintains self-insurance for general liability and contracts with an actuarial consultant to calculate estimated reserve requirements for general liability claims on an annual basis. No liability has been accrued as any accrued claims are deemed immaterial.

101
Item No.7I

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Notes to Basic Financial Statements
(continued)

June 30, 2022

102

(16) RESTATEMENT OF PRIOR YEAR BALANCES

Governmental Activities

Prior period adjustment reflected on the Statement of Activities on pages 27-28 shows increase of $3,900 to the Governmental Activities beginning net position. This adjustment of $3,900 is the result of grant revenue recognition recorded in Business-type activities to Governmental Activities to match grant expenditures.

GovernmentalActivitiesNet position - beginning 632,824,864$ Adjustment:Reclassification of grant funds from Business-type Activities 3,900 Net position - beginning, as restated 632,828,764$ Governmental Funds

Prior period adjustment reflected on the Statement of Revenues, Expenditures, and Changes in Fund Balances on pages 32-33 show a $3,900 increase to the General Fund beginning fund balance. The $3,900 adjustment is a result of the reclassification of prior year grant revenues from the Theatres Fund to match grant expenditures recorded under the General Fund.

GeneralFundNet position - beginning 163,033,399$ Adjustment:Reclassification of grant funds from Business-type Activities 3,900 Net position - beginning, as restated 163,037,299$ Business-type Activities

Prior period adjustment reflected on the Statement of Activities on pages 27-28 shows a decrease of $327,699 to the Business-type activities beginning net position. This adjustment is the result of $3,900 of grant revenue recognition in Business-type activities to Governmental activities and $323,799 reclassification of prior year revenues to unearned revenue.

Business-typeActivitiesNet position - beginning 263,060,958$ Adjustment:Reclassification of grant funds to Governmental Activities (3,900) Reclass prior fiscal year revenue to unearned revenue (323,799) Net position - beginning, as restated 262,733,259$

102
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Notes to Basic Financial Statements
(continued)

June 30, 2022

103

Proprietary Funds

Prior period adjustment reflected on the Statement of Revenues, Expenditures, and Changes in Fund Balances on pages 41-42 show a decrease of $327,699 in Theatres Fund.

This adjustment is the result of $3,900 of revenue grant funds reclassified to General Fund to match grant expenditures and $323,799 reclassification of prior year revenues to unearned revenue.

TheatresFundNet position - beginning (552,834)$ Adjustment:Reclassification of grant funds to Governmental Activities (3,900) Reclass prior fiscal year revenue to unearned revenue (323,799) Net position - beginning, as restated (880,533)$

103
Item No.7I

(SMALL TAB)

Required Supplementary
Information

Item No.7I

CITY OF THOUSAND OAKS

Required Supplementary Information
(Unaudited)

June 30, 2022

104

The following Schedule of Changes in Net Pension Liability and Related Ratios and Schedule of Employer Contributions are related to the California Public Employees’ Retirement System (CalPERS), an agent multiple-employer defined benefit pension plan. 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021Total Pension LiabilityService cost4,251,555$ 4,182,907$ 4,129,221$ 4,671,388$ 4,727,390$ 4,873,406$ 5,049,062$ 5,083,179$ Interest on total pension liability17,983,431 18,652,284 19,333,120 19,648,350 20,326,925 21,184,112 21,816,336 22,596,906 Changes of assumptions- (4,350,381) - 15,449,297 (1,733,282) - - - Difference between expected and actual experience- (2,726,667) (2,088,224) (4,430,696) 647,500 1,915,875 (1,269,934) 947,998 Benefit payments, including refunds of employee contributions(10,661,411) (11,502,551) (12,138,087) (13,202,806) (14,339,986) (15,769,142) (16,297,110) (17,529,675) Net change in total pension liability11,573,575 4,255,592 9,236,030 22,135,533 9,628,547 12,204,251 9,298,354 11,098,408 Total pension liability, beginning242,984,012 254,557,587 258,813,179 268,049,209 290,184,742 299,813,289 312,017,540 321,315,894 Total pension liability, ending (a)254,557,587$ 258,813,179$ 268,049,209$ 290,184,742$ 299,813,289$ 312,017,540$ 321,315,894$ 332,414,302$ Plan Fiduciary Net PositionContributions - employer4,870,194$ 6,517,328$ 6,879,405$ 7,245,291$ 7,724,072$ 8,586,310$ 10,515,991$ 10,812,931$ Contributions - employee2,194,930 1,966,037 2,080,044 2,161,542 2,158,740 2,144,307 2,329,561 2,164,564 Net investment income29,926,107 4,521,600 1,043,288 22,442,527 18,255,346 15,120,698 11,927,831 55,874,271 Benefit payments, including refunds of employee contributions(10,661,411) (11,502,551) (12,138,087) (13,202,806) (14,339,986) (15,769,142) (16,297,110) (17,529,675) Net Plan to Plan Resource Movement- - - - (532) - - - Administrative expense- (226,555) (122,637) (293,763) (338,646) (164,230) (338,419) (247,930) Other Miscellaneous Income/(Expense) 1- - - - (643,094) 532 - - Net change in fiduciary net position26,329,820 1,275,859 (2,257,987) 18,352,791 12,815,900 9,918,475 8,137,854 51,074,161 Plan Fiduciary net position, beginning 2173,620,315 199,950,135 201,225,994 198,968,007 217,320,798 230,136,698 240,055,173 248,193,027 Plan Fiduciary net position, ending (b)199,950,135$ 201,225,994$ 198,968,007$ 217,320,798$ 230,136,698$ 240,055,173$ 248,193,027$ 299,267,188$ Plan Net pension liability/(asset), ending (a)-(b)54,607,452$ 57,587,185$ 69,081,202$ 72,863,944$ 69,676,591$ 71,962,367$ 73,122,867$ 33,147,114$ Plan fiduciary net position as a percentage of total pension liability78.55% 77.75% 74.23% 74.89% 76.76% 76.94% 77.24% 90.03%Covered Payroll328,759,756$ 29,161,370$ 28,993,269$ 29,262,017$ 29,206,661$ 30,045,660$ 31,244,195$ 31,809,633$ Plan net pension liability/(asset) as a percentage of covered payroll189.87% 197.48% 238.27% 249.01% 238.56% 239.51% 234.04% 104.20% Measurement PeriodLast Ten YearsSchedule of Changes in Net Pension Liability and Related Ratios This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with current Governmental Accounting StandardsBoard (GASB), they should not be reported.1. During Fiscal Year 2017-18, as a result of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pension (GASB Statement No. 75), CalPERS reported its proportionate share of activityrelated to postemployment benefits for participation in the State of California's agent OPEB Plan. Accordingly, CalPERS recorded a one-time expense as a result of adoption of GASB Statement No. 75. Additionally, CalPERS employees participatein various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to reflect its proportionate share of activity related to pensions in accordance with GASBStatement No. 68, Accounting and Financial Reporting for Pensions.2. Includes any beginning of year adjustment.3. Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.Notes to Schedule:Benefit Changes:Figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. GoldenHandshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.Changes of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in thediscount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

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Employer Fiscal Year1Actuarially Determined Contribution2Contributions in Relation to Actuarially DeterminedContribution2Contribution Deficiency(Excess)Covered Payroll3Contribution as a Percentage of Covered Payroll32014-15 4,870,194$ (4,870,194)$ -$ 28,759,756$ 16.93%2015-165,232,384$ (6,517,328)$ (1,284,944)$ 29,161,370$ 22.35%2016-17 5,426,216$ (6,879,405)$ (1,453,189)$ 28,993,269$ 23.73%2017-18 5,745,291$ (7,245,291)$ (1,500,000)$ 29,262,017$ 24.76%2018-19 6,224,072$ (7,724,072)$ (1,500,000)$ 29,206,661$ 26.45%2019-20 7,086,310$ (8,586,310)$ (1,500,000)$ 30,045,660$ 28.58%2020-21 9,015,991$ (10,515,991)$ (1,500,000)$ 31,244,195$ 33.66%2021-22 9,312,931$ (10,812,931)$ (1,500,000)$ 31,809,633$ 33.99%Actuarial Cost Method Entry Age NormalLevel Percentage of PayrollInflation 2.50%2.75%Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvements using 90% of Scale MP-2016 published by the Society of Actuaries.

This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations ofprior years are not required, and if prior years are not reported in accordance with the current GASB standards, theyshould not be reported.1. As prescribed in GASB Statement No. 68, paragraph 46, the information presented in the Schedule of PlanContributions should also be presented as the employer's most recent fiscal year-end. The employer is responsible fordetermining this information as prescribed by the standard as this data is not available to CalPERS.2. Employers are assumed to make contributions equal to the actuarially determined contributions. However, someemployers may choose to make additional contributions towards their unfunded liability. Employer contributions forsuch plans exceed the actuarially determined contributions.3. Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30,2018-21; 3.00 percent growth assumption for fiscal years ended June 30, 2014-17.Notes to Schedule: Fair Value of AssetsAsset Valuation MethodSalary Increases Varies by Entry Age and ServicePayroll Growth7.00% Net of Pension Plan Investment and Administrative Expenses; includes inflationInvestment Rate of ReturnThe probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.Retirement Age Schedule of Employer ContributionsLast Ten Fiscal Years The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2020-21were derived from the June 30, 2018 funding valuation report.Amortization Method/Period

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Required Supplementary Information
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The following Schedule of Changes in Net Pension Liability and Related Ratios, Schedule of Employer Contributions, and Schedule of Investment Returns are related to the City’s Single- Employer Defined Benefit Pension Plan for hourly/part-time employees.

6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022Total Pension LiabilityService cost93,325$ 120,698$ 122,413$ 85,460$ 88,039$ 98,054$ 100,996$ 48,123$ Interest on total pension liability172,414 177,638 190,641 210,686 211,992 210,484 210,925 216,667 Changes of assumptions- 8,045 - 27,926 - - - (25,806) Effect of economic/demographic gains or losses- - - - - - - (733,383) Difference between expected and actual experience- 117,476 - 225,777 - (70,211) - - Benefit payments, including refunds of employee contributions(178,233) (234,680) (182,256) (209,559) (346,393) (323,601) (141,609) (185,700) Net change in total pension liability87,506 189,177 130,798 340,290 (46,362) (85,274) 170,312 (680,099) Total pension liability, beginning2,868,056 2,955,562 3,144,739 3,275,537 3,615,827 3,569,465 3,484,191 3,654,503 Total pension liability, ending (a)2,955,562$ 3,144,739$ 3,275,537$ 3,615,827$ 3,569,465$ 3,484,191$ 3,654,503$ 2,974,404$ Plan Fiduciary Net PositionContributions - employer396,456$ 400,000$ 385,000$ 400,000$ 50,000$ 200,000$ 100,000$ 94,000$ Contributions - employee80,484 81,605 77,561 75,279 73,360 65,177 33,427 62,798 Net investment income48,241 2,428 271,468 181,698 199,350 91,899 734,014 (535,262) Benefit payments, including refunds of employee contributions(178,233) (234,680) (182,256) (209,559) (346,393) (323,601) (141,609) (185,700) Administrative expense(23,951) (28,323) (32,473) (29,471) (29,431) (29,464) (28,720) (28,826) Net change in fiduciary net position322,997 221,030 519,300 417,947 (53,114) 4,011 697,112 (592,990) Plan Fiduciary net position, beginning 1,916,475 2,239,472 2,460,502 2,979,802 3,397,749 3,344,635 3,348,646 4,045,758 Plan Fiduciary net position, ending (b)2,239,472$ 2,460,502$ 2,979,802$ 3,397,749$ 3,344,635$ 3,348,646$ 4,045,758$ 3,452,768$ Plan Net pension liability/(asset), ending (a)-(b)716,090$ 684,237$ 295,735$ 218,078$ 224,830$ 135,545$ (391,255)$ (478,364)$ Plan fiduciary net position as a percentage of total pension liability75.77% 78.24% 90.97% 93.97% 93.70% 96.11% 110.71% 116.08%Covered Payroll1,956,638$ 2,155,045$ 2,219,696$ 1,809,263$ 1,863,541$ 1,960,701$ 2,019,525$ 1,384,432$ Plan net pension liability/(asset) as a percentage of covered payroll36.60% 31.75% 13.32% 12.05% 12.06% 6.91% -19.37% -34.55%This schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with current GovernmentalAccounting Standards Board (GASB), they should not be reported.

Measurement PeriodLast Ten YearsSchedule of Changes in Net Pension Liability and Related Ratios

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2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22Actuarially determined contribution196,456$ 199,162$ 201,343$ 169,002$ 61,732$ 48,161$ 31,175$ 32,110$ Actual employer contribution396,456 400,000 385,000 400,000 50,000 200,000 100,000 94,000 Contribution deficiency (excess)(200,000)$ (200,838)$ (183,657)$ (230,998)$ 11,732$ (151,839)$ (68,825)$ (61,890)$ Covered payroll1,956,638$ 2,155,045$ 2,219,696$ 1,809,263$ 1,863,541$ 1,960,704$ 2,019,525$ 1,384,432$ Contribution as a percentage of covered payroll20.26% 18.56% 17.34% 22.11% 2.68% 10.20% 4.95% 6.79%Notes to Schedule:Valuation TimingActuarial Cost Method Projected Unit CreditAmortization Method Level percent or level dollar Level dollar Closed, open, or layered periods Closed Amortization period at 1/1/2022 18 years Amortization growth rate 0.00%Asset Valuation Method Smoothing period None Recognition method None Corridor NoneInflation 2.50%Salary Increases 3.00%Investment Rate of Return 6.00%Payroll Growth 3.00%Withdrawal Hourly/Part-time Employee rates apply as follows: Attained AgeProbability of Termination Under 20 80% 20-24 40% 25-65 20%MortalityRetirement Hourly/Part-time Employee rates apply as follows: Attained AgeProbability of Termination 64 or younger 0% 65-74 50% 75 and older 100%Form of Payment Schedule of Employer ContributionsLast Ten Fiscal YearsThis schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are notrequired, and if prior years are not reported in accordance with the current GASB standards, they should not be reported.Fiscal Year For terminated participants as of the valuation date, a return of contributions for 61 participants with account balance are assumed. For the remaining 69 terminated participants, a single life annuity payment at age 65 was assumed.90% of terminating employees are assumed to take an immediate lump sum. The remaining 10%are assumed to take a lump sum at age 65.

Actuarially determined contribution amounts are calculated as of January 1, and payable for thecurrent and subsequent plan years ending December 31.Full-time Employees: Consistent with the Non-industrial rates used to value the MiscellaneousAgency CalPERS Pension Plans after June 30, 2021.Pre-Retirement: Consistent with the Non-Industrial rates used to value the MiscellaneousCalPERS Pension Plans after June 30, 2021.Post-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous AgencyCalPERS Pension Plans after June 30, 2021.Full-time Employees: Retirement rates are based on CalPERS rates after June 30, 2021 for Public Miscellaneous Agency "2% at 55" plans (20 years of service).

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Item No.7I

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Required Supplementary Information
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The following Schedule of Changes in Net OPEB Liability and Related Ratios and Schedule of Employer Contribution are related to the California Employee’s Retiree Benefit Trust (CERBT), an agent multiple-employer plan for other postemployment benefits.

6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021Total OPEB LiabilityService cost632,000$ 651,128$ 670,662$ 638,378$ 653,006$ Interest on total OPEB liability1,622,000 1,664,018 1,709,201 1,658,631 1,678,231 Actual expected experience difference- - (1,308,107) - 93,103 Changes in assumption- - (69,326) (228,302) 1,963,550 Changes in benefits terms- - - - - Benefit payments(1,627,000) (1,650,000) (1,680,615) (1,758,081) (1,827,813) Net change in total OPEB liability627,000 665,146 (678,185) 310,626 2,560,077 Total OPEB liability, beginning24,199,000 24,826,000 25,491,146 24,812,961 25,123,587 Total OPEB liability, ending (a)24,826,000$ 25,491,146$ 24,812,961$ 25,123,587$ 27,683,664$ Fiduciary Net PositionEmployer contributions2,347,000$ 2,400,000$ 2,291,410$ 2,177,935$ 2,050,236$ Investment income net of investment expenses1,390,000 1,219,541 1,083,922 684,768 5,512,474 Benefit payment(1,627,000) (1,650,000) (1,680,615) (1,758,081) (1,827,813) Administrative expenses(7,000) (33,907) (8,346) (14,771) (12,963) Net change in fiduciary net position2,103,000 1,935,634 1,686,371 1,089,851 5,721,934 Fiduciary net position, beginning12,820,000 14,923,000 16,858,634 18,545,005 19,634,856 Fiduciary net position, ending (b)14,923,000$ 16,858,634$ 18,545,005$ 19,634,856$ 25,356,790$ Net OPEB liability/(asset), ending (a)-(b)9,903,000$ 8,632,512$ 6,267,956$ 5,488,731$ 2,326,874$ Fiduciary net position as a percent of total OPEB liability60.11% 66.14% 74.74% 78.15% 91.59%Covered Payroll29,555,000$ 29,898,000$ 30,378,483$ 31,708,661$ 31,488,543$ Net OPEB liability/(asset) as a percent of covered payroll33.51% 28.87% 20.63% 17.31% 7.40%Historical information is required only for measurement periods for which GASB Statement No. 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.

Schedule of Changes in Net OPEB Liability and Related RatiosLast Ten YearsMeasurement Date

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Item No.7I

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Required Supplementary Information
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2017-18 2018-19 2019-20 2020-21 2021-22Actuarially determined contribution 1,455,000$ 1,501,000$ 1,548,000$ 1,224,000$ 1,262,000$ Actual employer contribution 2,400,000 2,291,410 2,175,741 2,050,236 2,108,951 Contribution deficiency (excess) (945,000)$ (790,410)$ (627,741)$ (826,236)$ (846,951)$ Covered payroll 29,898,000$ 30,378,483$ 31,708,661$ 31,488,543$ 32,042,766$ Contribution as a percentage of covered payroll 8.03% 7.54% 6.86% 6.51% 6.58%Valuation DateActuarial Cost MethodAmortization MethodAmortization Period Asset Valuation MethodDiscount Rate6.75%General Inflation2.75%Medical Trendin 2076MortalityMortality Improvement Historical information is required only for measurement periods for which GASB Statement No. 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available. Investment gains and losses spread over 5-year rolling periodMortality projected fully generational with Scale MP-2019Non-Medicare: 7.25 % for 2021, decreasing to an ultimate rate of 4%in Medicare: 6.3% for 2021, decreasing to an ultimate rate of 4% in June 30, 2019Entry Age Normal, Level % of PayLevel % of Pay15-year fixed period for 2020-21 CalPERS 1997-2015 Experience Study Fiscal YearLast Ten Fiscal YearsSchedule of Employer Contributions

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Item No.7I

(SMALL TAB)

Combining Financial
Statements and Schedules

• Nonmajor Governmental Funds - Combining
Financial Statements and Special Revenue
Funds Budget to Actual Schedules
• Internal Service Funds - Combining Financial
Statements
• Custodial Funds - Combining Financial
Statements

Item No.7I

109

NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds

Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.

HOME and Community Development Block Grant (CDBG) Fund - As required by grant regulations, this fund was established to account for the receipt and expenditure of HOME Investment Partnerships Program from the California Department of Housing and Community Development and CDBG funds allocated to the City by the U.S. Department of Housing and Urban Development (HUD).

East County Transit Alliance Fund - This fund was established to account for the fiscal activities of the East County Transit Alliance, formed by the cities of Thousand Oaks, Camarillo, Moorpark, and Simi Valley, and the County of Ventura to improve delivery of transit services in the East County.

Bicycle and Pedestrian Facilities Fund - Pedestrian facilities grant funding (SB 821, Art. 3) are collected in this fund.

Landscape and Lighting Districts Fund - The various Thousand Oaks Landscape Maintenance Districts and the Thousand Oaks Lighting District were established to provide landscape/open space maintenance and street lighting throughout the City.

Property taxes and service fees are levied specifically for these purposes.

Housing Trust Fund - This fund was established for the creation, preservation, and rehabilitation of affordable housing for extremely -low, very-low, lower , and moderate income households within the City. Revenue sources include fees collected from residential developments in lieu of constructing affordable housing units, linkage fees from applicable non-residential developments, residual receipts from housing loans, gifts, and grants.

Law Enforcement (State) Fund - This fund was established to account for donations and state seizure funds.

Cable Television (PEG) Fund - This fund was established to account for franchise fee revenues dedicated to public-access cable television capital improvements.

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Item No.7I

110

NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds (continued)

Community Facilities Districts Fund - The Districts are authorized under the Mello- Roos Community Facilities Act of 1982 to levy special taxes upon the land of the Districts and to issue bonds secured by special taxes. The proceeds, held by a trustee, are to be used to develop public improvements within each District. The fund is used to account for administration and technical services to the district, as well as to collect the assessments to pay the debt. Since the debt is not a liability of the City, capital improvements are not recorded as Ci ty expenditures. Currently t here are two districts, Community Facilities District No. 1994 -1 (Marketplace Public Pedestrian, Traffic Circulation and Parking Facilities) and Community Facilities District No. 1997 -1 (Promenade Public Parking Facilities).

County Flood Control Benefit Assessment Fund - Ventura County Flood Control District determines property tax assessments countywide for flood control purposes and apportions the assessments to each city to be used exclusively for flood control purposes.

Grants Fund - This fund was established to account for the receipt and expenditure of federal, state, and local grants. Revenues are restricted for the use specified in the grant award letter and all conditions must be met to be in compliance.

Federal Asset Seizure Fund - As required by the U.S. Department of Justice, this fund was established to account for the receipt and expenditure of federal asset seizure money.

Debt Service Fund

Thousand Oaks Public Financing Authority Fund - This fund was established to account for the accumulation of resources and payment of principal and interest of the Thousand Oaks Public Financing Authority.

Capital Projects Funds

Community Recreation and Open Space Endowment Fund - This fund includes revenues from bedroom taxes collected from developers, an annual 10 percent transfer of unassigned General Fund fund balance not to exceed $100,000 , donations from the Adopt-an-Oak Tree program, and $2.00 per round for non-resident golfers from the Golf Course Fund in a given fiscal year with profitability. Revenues are used for the purchase and maintenance of open space throughout the City.

Fixed Asset Replacement Fund - This fund is used to account for the City’s equipment replacement program. Amounts billed to City departments are recorded as revenues and the expenditures for replacement of equipment are recorded in this fund. 111
Item No.7I

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Thousand Oaks City CouncilJanuary 10, 2023

Thousand Oaks City Council
January 10, 2023