ML12030A247
| ML12030A247 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 10/14/2011 |
| From: | Barber S, Sundeen P City of Riverside, CA, Southern California Edison Co |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| Download: ML12030A247 (128) | |
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CITY OF RIVERSIDE COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2011 TABLE OF CONTENTS INTRODUCTORY SECTION Page L etter of T ransm ittal........................................................................................................
i GFOA Certificate of Achievement.......................................................................................
v Legislative and C ity O fficials.............................................................................................
vi O rganization C hart........................................................................................................
vi FINANCIAL SECTION R eport of Independent A uditors..........................................................................................
1 Management's Discussion and Analysis.................................................................................
3 Basic Financial Statements:
Government-wide Financial Statements:
Statem ent of N et A ssets.........................................................................................
21 Statem ent of A ctivities...........................................................................................
22 Fund Financial Statements:
Balance Sheet - Governmental Funds..........................................................................
23 Reconciliation of the Balance Sheet of Governmental Funds to Statement of Net Assets..............
24 Statement of Revenues, Expenditures and Changes in Fund Balances - Govermnental Funds.........
25 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities..................................................
26 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
G eneral Fund................................................................................................
27 Statement of Net Assets - Proprietary Funds.................................................................
28 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds..............
.30 Statement of Cash Flows - Proprietary Funds................................................................
31 Statement of Fiduciary Assets and Liabilities-Fiduciary Fund - Agency Fund..........................
N otes to Financial Statem ents......................................................................................
34 Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds..............................................
63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor G overnm ental Funds.......................................................................................
65 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
N onm ajor G overnm ental Funds............................................................................
67 Combining Statement of Net Assets -Nonmajor Enterprise Funds.........................................
71 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Nonmajor E nterprise F unds.............................................................................................
73 Combining Statement of Cash Flows -Nonmajor Enterprise Funds......................................
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CITY OF RIVERSIDE COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30,2011 TABLE OF CONTENTS FINANCIAL SECTION (CONT.)
Combining Statement of Net Assets - Internal Service Funds...............................................
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service F u n d s..........................................................................................................
Combining Statement of Cash Flows - Internal Service Funds.............................................
Combining Statement of Changes in Assets and Liabilities - Fiduciary Fund............................
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source..........................................................................................
STATISTICAL SECTION Table I
Net Assets by Component - Last Ten Fiscal Years............................................................
2 Changes in Net Assets - Last Ten Fiscal Years.................................................................
3 Fund Balances of Governmental Funds........................................
4 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years.............................
5 Business-Type Activities Electricity Revenues By Source - Last Ten Fiscal Years......................
6 Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years...............................
7 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years............
8 Direct and Overlapping Property Tax Rates - Last.Ten Fiscal Years......................................
9 Principal Property Taxpayers - Current Year and Nine Years Ago.........................................
10 Property Tax Levies and Collections - Last Nine Fiscal Years..............................................
11 Electricity Sold by Type of Customer-Last Ten Fiscal Years.............................................
12 Electricity Rates - Last Ten Fiscal Y ears.......................................................................
13 Top 10 Electricity Customers - Current Year and Nine Years Ago........................................
14 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years..............................................
15 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years.....................................
16 D irect and O verlapping D ebt....................................................................................
17 Legal Debt Margin Information - Last Ten Fiscal Years....................................................
18 Pledged-Revenue Coverage Governmental Activity Debt - Last Ten Fiscal Years.....................
19 Pledged-Revenue Coverage Business Type Activity Debt - Last Ten Fiscal Years....................
20 Demographic and Economic Statistics - Last Ten Calendar Years.......................................
21 Principal Employers - Current Year and Nine Years Ago.................................................
22 Full-Time Equivalent City Government Employees by Function - Last Ten Fiscal Years............
23 Operating Indicators by Function - Last Ten Fiscal Years................................................
24 Capital Asset Statistics by Function - Last Ten Fiscal Years..............................................
77 78 79 81 83 85 86 88 89 91 92 93 94 95 96 97 98 99 100 101 102 104 105 106 107 108 109 110 III
-Y tit RJ VE RS I D F:
October 14, 2011 To the Honorable Mayor, Members of the City Council and Citizens of the City of Riverside:
It is our pleasure to submit the Comprehensive Annual Financial Report (CAFR) of the City of Riverside (the City) for the fiscal year ended June 30, 2011.
This report consists of management's representations conceming the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City's financial statements have been audited by Moss Adams LLP, a firm of certified public accountants. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unqualified opinion on the City's financial statements for the fiscal year ended June 30, 2011.
The independent auditor's report is presented as the first component of the financial section of this CAFR.
The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements, with emphasis on those involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report.
Management has provided an overall analysis of the financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A
can be found immediately following the report of the independent auditors.
Profile of the City of Riverside The City of Riverside, incorporated on October 11, 1883, is located in the western portion of Riverside County about 60 miles east of Los Angeles. The City currently occupies a land area of 81.507 square miles.
The City operates under the council-manager form of government, with a seven-member council elected by ward for four-year overlapping terms. The mayor is elected at large for a four-year term and is the presiding officer of the Council, but does not have a vote except in the case of a tie. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney and City Clerk. The City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of the City, and for appointing the heads of various departments. The Council is elected on a non-partisan basis.
The City provides a full range of services which include general government, public safety (police, fire, disaster preparedness and building inspection), construction and maintenance of highways and streets, economic development, culture and recreation, electric, water, airport, refuse, sewer, and senior citizen/handicap transportation.
In addition to general City activities, the Council is financially accountable for the Riverside Redevelopment Agency, Riverside Housing Authority, Riverside Public Financing Authority and the Riverside Municipal Improvements Corporation; therefore, these entities are included as an integral part of the City's financial statements. Additional information on these legally separate entities can be found in Note 1 in the notes to the financial statements.
The annual budget serves as the foundation for the City's financial planning and control. The City Manager presents the proposed budget to the City Council for review at least thirty-five calendar days prior to the beginning of each fiscal year. The Council is required to hold public hearings on the proposed budget and to adopt a final budget no later than June 30, which is the close of the City's fiscal year. The appropriated budget is prepared by fund and department. Department heads may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the approval of the Council.
Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 27 as part of the basic financial statements for the governmental funds. For governmental funds other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report, which begins on page 67.
Local economy: The City is located in the Inland Empire, which consists of Riverside and San Bernardino Counties (the "MSA").
The population of the Inland Empire at approximately 4.2 million is larger than 24 states. The City leads the Inland Empire in most measures of economic power, including population, income, employment, bank deposits, assessed valuation, office space and college enrollment. The population of the City is 304,051, which places it as the sixth largest in Southern California.
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Until recently the MSA has experienced a very strong economic environment. However, unemployment is currently at 14.8%. The budget for the City for fiscal year 2011/2012 projects a 12% increase in expenditures, but is balanced. The increase in expenditures is largely related to capital outlay.
The MSA is projected to grow rapidly in future years because land values remain well below those in Los Angeles, Orange and San Diego Counties.
Among the City's challenges is a lack of available space for manufacturing and industrial development within current boundaries.
Priorities for the future: A Citywide Strategic Planning document has been developed through a series of meetings, workshops, and surveys with the community, elected officials, and City employees. The plan, as updated, sets forth five goals as follows:
Economic Development Environmental Leadership
- Transportation
- Livable Communities and Neighborhoods
- Arts and Innovation Long-term financial planning.
Annually, the City updates a five (5) year Capital Improvement Program (CIP). Planned capital expenditures during fiscal years 2011/12 - 2015/16 total approximately $832 million. The projects encompass all seven Council wards and enhance the life of all residents. Funding comes from multiple sources, including existing funds; General Fund certificates of participation; Redevelopment Agency tax allocation bonds; and regional, state and federal funds. In addition to routine electric, water, sewer and transportation-related projects, the CIP includes improvements to parks in the City; railroad grade separations; library, museum, convention center and Municipal Auditorium improvements/expansions/rehabilitations; and, public safety projects.
Financial policies. A portion of fund balance within the General Fund is set aside and designated for future economic contingencies.
The amount that has been set aside is equal to approximately 15% of General Fund expenditures.
Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Riverside for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2010. This was the twenty third consecutive year that the City has received this prestigious award. The City received this award for publishing an easily readable and efficiently organized CAFR that satisfied both GAAP and applicable legal requirements.
This award is valid for a period of one year only. We believe that our current CAFR continues to meet the Program's requirements and we are submitting it to the GFOA again this year.
iii
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Division, particularly the leadership of Jason AI-Imam, Controller. We would like to express our appreciation to all members of the Division who assisted and contributed to its preparation. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City's finances.
Respectfully submitted, Scott C. Barber Interim City Manager Paul C. Sundeen Assistant City Manager/CFO/Treasurer iv
Certificate of Achievement for Excellence in Financial Reporting Presented to City of Riverside California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2010 A Certificate of Achirvnemnt for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose cotnprihensive annual financial reports (CAFRs) acrhiee the highest standardsb in governrnint accounting and finantitl repoting.
- a"UI president iwiiIL~ ~
Executtve Director The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Riverside for our Comprehensive Annual Financial Report for the fiscal year ended June 30, 2010.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.
We believe our current report continues to meet the Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.
V
ORGANIZATION CHART LEGISLATIVE OFFICIALS Ronald 0. Loveridge......................................................................
Mayor Mike Gardner..................................................
Councilmember-Ward 1 Andy Melendrez..............................................
Councilmember-Ward 2 Rusty Bailey....................................................
Councilmember-Ward 3 Paul Davis.......................................................
Councilmember-Ward 4 Chris Mac Arthur.............................................
Councilmember-Ward 5 Nancy Hart......................................................
Councilmember-Ward 6 Steve Adams...................................................
Councilmember - Ward 7 CITY OFFICIALS Scott C. Barber.....................................................
Interim City Manager*
Belinda Graham..................................................
Assistant City Manager Deanna Lorson...................................................
Assistant City Manager Paul C. Sundeen........................................
Assistant City Manager/CFO
_Mark S. Ripley..................................................................
Airport Director Colleen J. Nicol.......................................................................
City Clerk*
Gregory P. Priamos...........................................................
City Attorney*
Tom Boyd...........................................................................
City Engineer Sergio G. Diaz...................................................................
Chief of Police Steve Reneker..................................................
Chief Information Officer Dan Chudy............................
Interim Community Development Director Emilio Ramirez......................................................
Development Director Brent A. Mason.............................................................
Finance Director Steve Earley.............................................................................
Fire Chief Kris Martinez..................................................
General Services Director Rhonda Strout..............................................
Human Resources Director Tonya Kennon.................................................................
Library Director Ennette Morton............................................................
Museum Director Ralph Nufiez...........................................
Parks and Recreation Director David Wright.......................................
General Manager - Public Utilities Siobhan Foster......................................................
Public Works Director
- Appointed by City Council vi
3
/OS-DA Cetfe Pubi Aconat.IBsns I,:
WWW. M OSSADAMS. CO M REPORT OF INDEPENDENT AUDITORS Honorable Mayor and Members of the City Council City of Riverside 3900 Main Street Riverside, California We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Riverside, California ("the City"), as of and for the year ended June 30, 2011, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Riverside, California, as of June 30, 2011, and the respective changes in financial position, and cash flows, where applicable, and the respective budgetary comparison for the general fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated October 14, 2011 on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
1
Honorable Mayor and Members of the City Council City of Riverside The Management's Discussion and Analysis on pages 3 through 19 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements, and other schedules, listed in the table of contents as supplementary information, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The accompanying introductory and statistical sections, as listed in the table of contents, are presented for the purpose of additional analysis and are not a required part of the basic financial statements. This information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we express no opinion on it.
Los Angeles, California October 14, 2011 2
Management's Discussion and Analysis As management of the City of Riverside, we offer this narrative overview and analysis of financial activities for the fiscal year ended June 30, 2011. We encourage readers to consider the information presented here in conjunction with additional information furnished in our letter of transmittal, which can be found on page i of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.
Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City's basic financial statements, compromised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains certain supplementary information.
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 assets presents information on all of the City's assets and liabilities, with the excess of assets over liabilities reported as net assets. Over time, increases or decreases in the net assets 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 assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business type activities). The governmental activities of the City include general government, public safety, highways and streets, and culture and recreation. The business type activities of the City include Electric, Water, Sewer, Refuse, Public Parking, Airport and Transportation services.
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The government-wide financial statements include the City and its component units. The City's component units are the Riverside Redevelopment Agency, Riverside Housing Authority, Riverside Public Financing Authority, and the Riverside Municipal Improvements Corporation. Although legally separate, these entities function for all practical purposes as departments of the City and therefore have been blended as part of the primary government.
Both the Governmental Activities and the Business Type Activities are presented on the accrual basis of accounting, a basis of accounting that differs from the modified accrual basis of accounting used in presenting governmental fund financial statements. Note 1 of the Notes to the Basic Financial Statements fully describe these bases of accounting. Proprietary funds, discussed below, also follow the accrual basis of accounting.
The government-wide financial statements can be found on pages 21-22 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental, proprietary, and fiduciary.
Governmental funds. Governmental funds are used to account for the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year.
It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. Reconciliations to facilitate this comparison are provided for both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances. The major reconciling items relate to capital assets and debt. In the Governmental Funds, acquisitions of capital assets are treated as "expenditures" because upon purchase of a capital asset, cash used for the acquisition is no longer available for other purposes. The issuance of debt provides cash, which is now available for specified purposes. Accordingly, at the end of the fiscal year, the unreserved fund balances of the Governmental Funds reflect spendable resources available for appropriation by the City Council.
Spendable balances are not presented on the face of the government-wide financial statements.
The City maintains seventeen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Redevelopment Agency Debt Service Fund, the COPS Debt Service Fund, the Capital Outlay Fund, and the Redevelopment Capital Project Fund all of which are major funds. Data from the other twelve governmental funds are combined into a single, aggregated 4
presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and can be found on pages 63-70 in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided to demonstrate compliance with this budget.
The governmental fund financial statements can be found on pages 23-27 of this report.
Proprietary funds. The City maintains two different types of proprietary funds, enterprise and internal service 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 Electric, Water, Sewer, Refuse, Parking, Airport and Transportation services. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for self-insured insurance programs, central stores and its fleet of vehicles. Because these services predominantly benefit governmental rather than business type functions, they have been included within governmental activities in the government-wide financial statements. Internal service funds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting.
Proprietary funds provide the same type of information as the government-wide financial statements (business type activities), only in more detail. The proprietary fund financial statements provide separate information for the Electric, Water and Sewer operations, all of which are considered to be major funds of the City. The four remaining proprietary funds noted above are combined into a single, aggregated presentation. All internal service funds are also combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the non-major proprietary funds and the internal service funds is provided in the form of combining statements and can be found on pages 71-80 in this report.
The basic proprietary fund financial statements can be found on pages 28-32 of this report.
Agency funds. Agency funds are used to account for situations where the City's role is purely custodial. Agency funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City's own programs. All assets reported in agency funds are offset by a liability; the accrual basis of accounting is used to recognize receivables and payables.
The agency fund financial statement can be found on page 33 of this report, and the combining statement can be found on page 81.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements begin on page 34 of this report.
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Government-wide Financial Analysis The following table presents a summarization of the City's assets, liabilities and net assets for its governmental and business type activities. As noted earlier, a government's net asset position may serve over time as a useful indicator of its financial position.
Governmental Business type Activities Activities Total 2011 2010 2011 2010 2011 2010 Current and other assets
$620,030
$645,237
$ 930,414
$ 867,615
$1,550,444
$1,512,852 Capital assets, net 1,214,316 1,168,832 1,338,272 1,220,188 2,552,588 2,389,020 Total assets 1,834,346 1,814,069 2,268,686 2,087,803 4,103,032 3,901,872 Current liabilities 91,317 98,782 137,667 157,389 228,984 256,171 Long-term liabilities 732,476 710,688 1,163,610 990,212 1,896,086 1,700,900 Total liabilities 823,793 809,470 1,301,277 1,147,601 2,125,070 1,957,071 Net assets:
Invested in capital assets, net of related debt 1,019,892 976,614 654,974 660,619 1,674,866 1,637,233 Restricted 80,820 108,932 56,397 59,863 137,217 168,795 Unrestricted (90,159)
(80,947) 256,038 219,720 165,879 138,773 Total net assets
$S1,010553
$1-004,599
$967,409
$940202
$1979X2
$ 1.944.801
- Certain reclassifications of prior year data have been made in order to enhance their comparability with current year figures.
The City's assets exceeded liabilities by $1,977,962 at June 30, 2011, an increase of $33,161 from June 30, 2010.
By far the largest portion of the City's net assets (85 percent) reflects its investment in capital assets (i.e., land, buildings, machinery, equipment and infrastructure), net of any related debt that is still outstanding used to acquire those assets and net of unspent bond proceeds and cash held in bond reserve accounts. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
An additional portion of the City's net assets (8 percent) represents resources that are subject to external restrictions on how they may be used. The remaining unrestricted net assets may be used to meet the government's ongoing obligations to citizens and creditors. Of this amount, $256,038 is held by the business type activities and a negative $90,159 is held by the governmental activities. The Riverside Redevelopment Agency (the Agency), a blended component unit of the City, represents $103,289 of negative unrestricted net assets for 2011 and was a negative $81,490 in the prior year. The remaining governmental activities of the City have positive 6
unrestricted net assets of $13,132 in 2011 and $543 in 2010. Unrestricted net assets for governmental activities decreased in total in comparison to the prior year, which is primarily attributable to the Redevelopment Agency.
The Agency exists to finance improvements that serve to remediate blight within the City. Often these activities do not result in a residual asset, but rather underwrite the cost of a development activity deemed beneficial in meeting the Agency's objectives. The resulting statement of net assets reflects the debt obligation to be repaid through future tax revenues, without an offsetting asset.
While this is the routine functioning of such an entity, when blended with the City, its negative unrestricted net assets causes the governmental activities to report a negative position.
The City's total net assets increased by $33,161 during the current fiscal year, which reflects growth in governmental activities
($5,954) and growth in business type activities ($27,207) activities. Governmental operating results is discussed on page 9 and business-type operating results is discussed on page 15.
On the following page is a condensed summary of activities of the City's governmental and business type operations for the period ended June 30, 2011 with the prior fiscal year presented for comparative purposes. Also included in the following analysis are revenue and expense graphs to aid in understanding the results of the current year's activities.
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Governmental Business Type Activities Activities Total 2011 2010 2011 2010 2011 2010 Revenues:
Program Revenues:
Charges for services
$42,481
$41,324
$434,581
$420,017
$477,062
$461,341 Operating Grants and Contributions 21,127 32,853 2,159 2,487 23,286 35,340 Capital Grants and Contributions 38,138 23,395 7,337 6,838 45,475 30,233 General Revenues:
Sales taxes 44,157 39,645 44,157 39,645 Property taxes 100,802 104,087 100,802 104,087 Other taxes and fees 35,644 34,279 35,644 34,279 Investment income 7,439 8,289 17,548 21,271 24,987 29,560 Other 9,544 3344 4808 7447 14,352 10,791 Total revenues 299,332 287216 466,433 458,060 765,765 745,276 Expenses:
General government 102,877 119,676 102,877 119,676 Public safety 123,061 118,868 123,061 118,868 Highways and streets 24,082 22,036 24,082 22,036 Culture and recreation 44,098 37,679 44,098 37,679 Interest on long-term debt 33,638 32,049 33,638 32,049 Electric 275,922 256,860 275,922 256,860 Water 56,390 55,402 56,390 55,402 Sewer 42,276 41,248 42,276 41,248 Refuse 20,046 20,527 20,046 20,527 Airport 2,320 2,206 2,320 2,206 Transportation 3,493 3,368 3,493 3,368 Public Parking 4401 4,024 4,401 4,024 Total expenses 327,756 330,308 404848 383,635 732,604 713,943 Increase (decrease) in net assets before transfers (28,424)
(43,092) 61,585 74,425 33,161 31,333 Transfers, net 34,378 40,153 (34,378)
(40,153)
Increase (decrease) in net assets 5,954 (2,939) 27,207 34,272 33,161 31,333 Net assets - beginning 1,004,599 1,007,538 940,202 905,930 1,944,801 1,913,468 Net assets - ending
$1.010.553
$1.004.599967_4_9
_940.202
$ 1.977.962
&L.944.801 8
Governmental activities. Net assets for governmental activities increased by $5,954, accounting for a 0.1 percent increase in total net assets. Governmental net assets in the prior fiscal year decreased by $2,939. Key elements of this year's activity in relation to the prior year are as follows:
Revenues:
" Sales tax revenue increased by $4.5 million (11%) due to an increase in taxable sales. Higher fuel prices and usage, robust sales of new autos and rebounds in restaurants and general consumer goods helped boost overall receipts.
" Property tax revenue decreased by $3.2 million (3%) due to a decline in assessed property values, which was offset by an increase in grants and contributions of $3 million.
Expenses:
- While variances between years exist for the various expense functions, the total net decrease was approximately $2.5 million. The more significant items are as follows:
In May 2010 and May 2011, payments from the redevelopment agency were made to the Supplemental Educational Revenue Augmentation Fund ("SERAF") in the amount of $17 million and $3.5 million, respectively, as required by State Legislation.
The SERAF payment that was made in the current year was $13.5 million less than the prior year.
Depreciation expense increased by $4 million (13%) due a $91 million increase in depreciable capital assets in the current year and $141 million in the prior year, which is a 22 percent increase over the two-year period.
Increased costs associated with interest expense ($1.6 million) and compensated absences ($1 million).
9
Expenses and Programs Revenues - Governmental Activities - Fiscal Year Comparison 2011 vs. 2010
$140,000
$120,000 -
$100,000 -
$80,000 -
$60,000-W11 Expenses M'10 Expenses C'11 Program revenues D'10 Program revenues
$40,000 -
$20,000 -
$0 K
General government Public safety Highways and streets Culture and recreation I
Interest on long-term debt 10
Revenues by Source - Governmental Activities - Fiscal Year Comparison 2011 Capital grants and contributions 12.7%
2010 Capital grants and contributions 8.1%
Operating grants and contributions 11.4%
Property taxes 33.7%
Property taxes 36.2 %
Charges iir services 14.4%
Miscellaneous 1.2%
Investment income 2.9%
Intergovemmeemal, Other unrestricted 0.9%
- 0. 5%
ergovermmental, /
Ot her].9 j unrestricted 0
Franchise taxes 0.4%
Utility users taxes" 1.6%
8.9%
Sales taxes 13.8 Franchise taxes esJ 1.6%
Utility users taxi 9%
11
Business-type activities. Business type activities increased the City's net assets by $27,207, accounting for a 1 percent increase in total net assets. The net assets of business type activities increased by $34,272 in the prior year. Key elements of this year's activity in relation to the prior year are as follows:
In 2011, charges for services increased $14,564 to $434,581.
The increase primarily related to increases in Sewer and Water revenues, which is explained in further detail as follows:
Sewer charges for services increased by $5,427 (20%). New rates and charges went into effect on July 1, 2010 for residential, commercial and industrial customers. Rates for basic single family and multi-family dwellings increased by 24%, which is the primary reason for the increase in Sewer charges for services (approximately $4 million).
" Water charges for services increased by $4,550 (8%) primarily due to an increase of approximately $4 million in retail sales.
The increase in retail sales was primarily due to recent rate increases required to support the Water Utility's Master, Water Supply and Asset Management Plans, offset by a 3% reduction in retail consumption.
- Expenses increased $21,213 primarily due to a $19 million increase in Electric Utility operating expenses, which primarily related to an increase in transmission costs and distribution expenses.
Revenues by Source - Business Type Activities - Fiscal Year Comparison 2011 2010 Operating grants and contributions 0.5%
Capital grants and contributions 1.6%
3.7%
Charges for services-91.7%
Miscellaneous 1%
Operating grants and contributions 0.5%
Capital grants and contributions 1-5%
Investment Income 4.6%
iscellaneous 1.7%
Charges for services_-
93.2%
12
Financial Analysis of the City's Funds 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 fiend balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
The following table summarizes the balance sheet of the City's General, Redevelopment Debt Service, COPS Debt Service, Capital Outlay, Redevelopment Capital Projects, and Other Governmental Funds. As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.
Redevelopment COPS General Fund Debt Service Debt Service 2011 2010 2011 2010 2011 2010 Totalassets
$ 212,468
$ 129,623 46,531 45,140
$ 33,454 32,917 Total liabilities 51,625 50,433 23,425 24,225 34 37 Fund balances Nonspendable 26,646 27,437 Restricted 82,249 10,535 23,106 20,915 33,420 32,880 Assigned 15,589 9,195 Unassigned 36,359 32,023 Total 160,843 79,190 23,106 20,915 33,420 32,880 Total liabilities and fund balances
$ 212,468
$ 129,623 46,531 45,140 33,454 32,917 Redevelopment Other Total Capital Outlay Capital Projects Governmental Funds Governmental Funds 2011 2010 2011 2010 2011 2010 2011 2010 Totalassets 48,975 42,324
$ 126,943
$ 199,412 97.290
$ 102,771
$ 565,661
$ 552,187 Total liabilities 35,468 21.433 75,049 61,918 32,962 33,383
$ 218,563
$ 191,429 Fund balances Nonspendable 1
1 1,625 1,621 28,272 29,059 Restricted 13,507 20,891 51,893 137,493 62,703 67,767 266,878 290,481 Assigned 15,589 9,195 Unassigned 36,359 32,023 Total 13,507 20,891 51,894 137,494 64,328 69,388 347,098 360,758 Total liabilities and fund balances 48,975 42,324
$ 126,943
$ 199,412
$ 97,290
$ 102,771
$ 565,661
$ 552,187 13
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $347,098, a decrease of $13,660 in comparison with the prior year. About 8% of this amount ($28,272) is nonspendable, which comprises the portion of fund balance that cannot be spent due to form. Approximately 77% ($266,878) of fund balance is restricted, which represents the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors. $15,589 (4%) of fund balance is constrained by the City's intent to utilize fund balance for specific purposes, which is reported within the fund balance classification assigned. The remainder of the fund balance is unassigned, meaning it is available for spending at the City's discretion. Of that amount, $32,000 has been set aside for future economic contingencies, leaving $4,359; at June 30, 2010 the comparable amount was $2,023. The City's governmental funds reported combined total assets of $565,661 at June 30, 2011, an increase of $13,474 in comparison with the prior year which was offset by an increase of $27,134 in total liabilities. The primary reason for the overall decrease in related fund balances is due to expenditure of capital projects in the Redevelopment Capital Projects Fund.
The General Fund is the principal operating fund of the City. At the end of the current fiscal year, total fund balance equaled
$160,843 in comparison to $79,190 in the prior year. The portion of fund balance classified as unassigned was $36,359, most of which was set aside for future economic contingencies. Fund balance increased during the current year by $81,653 in comparison to an increase of $1,811 in the prior year. The primary reason for this is due to the transfer of $78,896 of land held for resale from the Redevelopment Capital Projects Fund.
The Redevelopment Debt Service Fund has a total fund balance of $23,106 all of which is restricted. A net increase of $2,191 in the fund balance occurred during the current year primarily due to the sale of agency parcels for the construction of the Fox Entertainment Plaza.
Fund balance for the Certificates of Participation Debt Service Fund increased by $540.
Fund balance for the Capital Outlay Fund decreased by $7,384. The primary reason for this is due to a number of large capital projects related to the 91 freeway interchanges and grade separation projects.
Fund balance for the Redevelopment Capital Projects Fund decreased by $85,600. This is largely related to the transfer of $78,896 of land held for resale to the General Fund, as discussed earlier.
14
Proprietar funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.
Unrestricted net assets of the Electric, Water and Sewer operations at the end of the year amounted to $199,057, $52,181, and $2,746 respectively. The total change in net assets for these funds was an increase of $10,069, an increase of $23,739 and a decrease of
$5,418, respectively as a result of routine operations.
The Electric Fund reported strong operating results, with retail revenues exceeding the previous all-time record, primarily from the effects of rate increases in years prior to fiscal year 2011 along with an expanded customer base which was partially offset by a reduction in consumption. Retail sales (residential, commercial, industrial, and other sales) represent 83.4% of total revenues. Retail sales, net of reserve/recovery were $278,406 and $274,206 for years ended June 30, 2011 and 2010, respectively. Total expenses, excluding transfers, increased $19 million (7.6%), which primarily related to an increase in transmission costs and distribution expenses.
The Water Fund reported strong operating results, with retail sales exceeding the previous year's results. Retail sales (residential, commercial, industrial, and other sales) represent 65% of total revenues. Retail sales, net of reserve/recovery were $55,186 and
$51,147 for years ended June 30, 2011 and 2010, respectively. The increase in sales was primarily due to recent rate increases to support the Water Utility's Master, Water Supply and Asset Management Plans, partially offset by a 3% reduction in retail consumption.
Net assets of the Sewer Fund decreased by $5,418 and $9,549 for years ended June 30, 2011 and 2010, respectively. Total revenues increased by $6,088 (19%) primarily as a result of a rate increase. However, total expenses increased by $1,957 (5%) primarily as a result of an increase in routine operating expenses.
15
General Fund Budgetary Highlights Original Final Actual Variance with Budget Budget Amounts Final Budget Total Revenues
$154,974
$174,633
$170,906
$ 03.727)
Expenditures:
General Government 2.958 2.958 9,347 (6,389)
Public Safety 131,726 148,129 138,620 9,509 Highways & Streets 14,528 17,940 14,587 3,353 Culture & Recreation 24,506 30,629 25,360 5,269 Capital Outlay 1,617 1,617 !
Debt Service 13,794 44.497 44,225 272 Total Expenditures 187,512 245.770 "233,756 12,014 Deficiency of Revenue Under Expenditures (32,538)
(71.137)
(62,850) 8,287 Other Financing Sources 32,538 140,575 144,503 3,928 Net Change in Fund Balances 69,438 81,653 12,215 Beginning Fund Balance 79,190 79,190 79,190_
Ending Fund Balance 279.190 L4828
$160.843
$1Z.215 Final budgeted revenues increased from the amount originally budgeted as a result of grant related programs and financing associated with capital projects.
Actual amounts differed from the final fund budget as follows:
Li Approximately $10.7 million of grant revenue was budgeted but not actually received during the year since the related grant expenditures had not been incurred.
u Actual tax revenue was more than the amounts budgeted for sales taxes ($4.2 million), property taxes ($1 million), and utility user taxes ($800 thousand) due to higher than anticipated taxable sales, assessed property values, and utility revenues.
Li Actual expenditures were less than budgeted amounts by approximately $12 million. This is primarily associated with capital projects not completed during the year (which are carried over to the next fiscal year).
16
Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for governmental and business type activities as of June 30, 2011 amounted to
$2,552,588 (net of accumulated depreciation). This investment includes land, intangibles, buildings and improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City's net investment in capital assets for the current fiscal year was $163,568 ($45,484 for governmental activities including internal service funds and $118,084 for business type activities).
Major capital improvements during the current fiscal year included: new infrastructure, consisting primarily of street improvements
($29 million); Sewer system improvements ($29 million); Electric Utility upgrades ($75 million) and Water Utility upgrades ($19 million).
Construction in progress totaled $131,211 at June 30, 2011.
Some of the major projects in process are various Sewer system improvements, a 203 KV transmission substation, and the Evans Reservoir Replacement Project. Depreciation expense during the fiscal year was $37,258 for governmental activities and $48,875 for business type activities.
City of Riverside's Capital Assets (net of depreciation)
Governmental Activities Business Type Activities Total Land Intangibles Buildings Improvements other than Buildings Machinery and equipment Infrastructure Construction in progress Total 2011
$290,692 123,319 154,601 19,754 602,388 23,562
$1.214.316 2010
$280,446 127,421 118,333 24,427 572,999 45,206 2011
$ 34,905 16,128 144,579 1,005,897 29,114 107,649
$1.338.272 2010
$ 34,820 6,307 144,774 835,239 29,575 169,473
$1.220.18 2011
$ 325,597 16,128 267,898 1,160,498 48,868 602,388 131,211
$2.552.588 2010
$ 315,266 6,307 272,195 953,572 54,002 572,999 214,679
$2.389.020 Additional information on the City's capital assets can be found in note 5 on page 42 of this report.
17
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $1,896,086 which includes bonded debt of $1,732,935.
City of Riverside's Long-Term Debt Governmental Activities Business Type Activities Total Revenue Bonds General Obligation Bonds Pension Obligation Bonds Certificates of Participation Notes Payable Loans Payable Capital Leases Landfill Capping Arbitrage Liability Compensated Absences Claims liability Net OPEB Obligation Water Acquisition Rights Total 2011
$305,195 16,845 132,095 207,246 7,749 1,100 6,670 21,153 26,615 7,808 2732.47_
2010
$278,867 17,533 136,050 211,212 8,191 1,100 6,303 20,101 25,541 5,790 2011
$1,071,554 31,178 45,569 1,720 6,915 102 5,625 947
$1.163.610 2010
$968,393 7,249 2,151 7,380 27 4,063 949
$990,212 2011
$1,376,749 16,845 132,095 207,246 38,927 46,669 8,390 6,915 102 21,153 26,615 13,433 947
$1.896.086; 2010
$1,247,260 17,533 136,050 211,212 15,440 1,100 8,454 7,380 27 20,101 25,541 9,853 949
$1.700.900 The City's total debt increased by $195,186 (11 Electric and Water Revenue Bonds.
percent) during the current fiscal year primarily due to the issuance of $255,830 of The City's Water Utility maintains "AA+" and "AA" ratings, from Standard & Poors and Fitch, respectively, for their revenue bonds, while the Electric Utility maintains "AA-" ratings from both rating agencies. The City's general obligation bond ratings are "AA-"
and "AA", respectively.
State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total adjusted assessed valuation. The legal debt limit was $614,887 at June 30, 2011, which applies only to general obligation debt. At June 30, 2011, the City had $16,845 of general obligation debt, resulting in available legal debt capacity of $598,042.
18
Additional information on the City's long-term debt can be found in note 6 beginning on page 43 of this report.
Economic Factors and Next Year's Budget and Rates LI Unemployment in the City of Riverside is 14.8% as compared to 13.7% for the prior year.
L-The required contribution rates as a percentage of payroll for the City's retirement program, including the employee portion which is paid by the City, will be changing effective July 1, 2011 as follows:
" Miscellaneous Plan -22.507% to 26.438%
- Safety Plan - 29.756% to 34.303%
At the time of budget preparation for fiscal year 2012, the economic outlook for the City was considered to be stable. The General Fund Budget for fiscal year 2012 of approximately $211 million was adopted as balanced, not having to utilize any reserves. It represents an increase from the prior year of approximately 8%, principally as a result of increases to retirement costs, absorption of costs previously funded by the Redevelopment Agency, consolidation of the Neglected Property Abatement Fund and an increase in the amount contributed to the Self-Insurance Trust Fund.
Request for information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Manager's Office, Finance Division, 3900 Main Street City of Riverside, CA 92522.
19
i I-
City of Riverside Statement of Net Assets June 30, 2011 (amounts expressed in thousands)
Assets Cash and investments Receivables, net Inventory Nuclear material inventory Prepaid items Deposits Deferred charges - other Deferred charges - derivative instruments Internal balances Land and improvements held for resale Restricted assets:
Cash and cash equivalents Cash and investments at fiscal agent Other Capital leases receivable Land and other capital assets not being depreciated Capital assets (net of accumulated depreciation)
Total assets Liabilities Accounts payable and other current liabilities Accrued interest payable Deferred revenue Deposits Current liabilities payable from restricted assets Deferred charges - derivative instruments Derivative instruments Decommissioning liability Noncurrent liabilities:
Due within one year Due in more than one year Total liabilities Net Assets Invested in capital assets, net of related debt Restricted for:
Expendable:
Capital projects Debt service Economic development Landfill capping Public morks Housing Programs Nonexpendable Unrestricted Total net assets Governmental Activities 8
162,084 111,536 7,435 412 400 122,414 9,496 (3,257) 94,097 91,988 23,425 314,254 900,062 1,834,346 40.923 9,635 2,029 23,908 14,822 67,198 665,278 823,793 1,019.892 18,609 9,658 12,923 38,005 1,625 (90,159) 1,010,553 Business-type Activities 248,586 52,043 1,184 1,905 12,662 42,022 10,016 3,257 36,295 521,631 813 158,682 1,179,590 2,268,686 22,666 12,793 1,656 3,711 5,726 482 22,664 67,969 29,157 1,134,453 1,301,277 654,974 48,063 2,247 6,087 256,038 967,409 Total 410,670 163.579 8,619 1,905 13.074 400 164.436 19,512 94.097 36,295 613,619 813 23,425 472,936 2,079,652 4,103,032 63,589 22,428 3,685 27.619 5,726 482 37,486 67,969 96,355 1,799,731 2,125,070 1,674,866 18,609 48,063 9,658 2,247 12,923 38,005 6,087 1.625 165,879 1,977,962 The notes to the financial statements are an integral part of this statement.
21
City of Riverside Statement of Activities For the fiscal year ended June 30, 2011 (amounts expressed In thousands)
Net (Expense) Revenue and Changes in Net Assets Program Revenues Indirect Expenses Expenses Allocation Operating Charges for Grants and Services Contributions Functions/Programs Governmental activities:
General government Public safety Highways and streets Culture and recreation Interest on long-term debt Total governmental activities Business type activities:
Electric Water Sewer Refuse Airport Transportation Public parking Total business type activities Total 102,877 123,061 24,082 44,098 33,638 327,756 275,922 56,390 42,276 20,046 2,320 3,493 4,401 404,848 732,604 (41,395) 22,294 11,007 8,094 14,241 8,075 16,985 3,180 8,422 8,209 745 3,751 21,127 42,481 Capital Grants and Contributions 44 38,027 67 38,138 4,056 1,982 575 714 10 7,337 45,475 Governmental Activities (38,775)
(129,071) 20.668 (45,194)
(33,638)
(226,010)
Business type Activities Total (38.775)
(129.071) 20,668 (45,194)
(33,638)
(226,010) 41,837 7,676 (8,932)
(912)
(978)
(276) 814 39,229 (186,781) 313,703 62,084 32,769 19,134 1,342 344 5,205 434,581 477,062 2,159 2,159 23,286 41,837 7,676 (8,932)
(912)
(978)
(276) 814 39,229 39.229 (226,010)
General revenues:
Taxes:
Sales Property Utility users Franchise Other Intergovernmental, unrestricted Investment income Miscellaneous Subtotal Transfers, net Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending 44,157 100,802 26,691 4,937 2,731 1,285 7,439 9,544 197,586 34,378 231,964 5,954 1,004,599 1,010,553 17,548 4,808 22.356 (34,378)
(12,022) 27,207 940,202 967,409 44,157 100,802 26,691 4,937 2,731 1.285 24,987 14,352 219,942 219,942 33,161 1.944,801 1,977,962 The notes to the financial statements are an integral part of this statement.
22
City of Riverside Balance Sheet Governmental Funds June 30, 2011 (amounts expressed in thousands)
Assets Cash and investments Cash and investments at fiscal agent Receivables (net of allowance for uncollectibles)
Interest Property taxes Sales tax Utility billed Accounts Intergovernmental Notes Capital lease receivable Prepaid items Deposits Due from other funds Advances to other funds Land & improvements held for resale Total assets:
Liabilities and fund balances Uabilities:
Accounts payable Accrued payroll Retainage payable Intergovernmental Deferred revenue Deposits Due to other funds Advances from other funds Total liabilities:
Fund balances:
Nonspendable:
Inventories, prepaids and noncurrent receivables Advances to other funds Permanent fund principal Restricted for:
Housing and redevelopment Debt service Transportation and public works Other purposes Assigned to:
General government Public safety Highways and streets Culture and recreation Continuing projects Unassigned Total fund balances Total liabilities and fund balances Certificates of Redevelopment Participation General Fund Debt Service Debt Service 42,944 15,416 470 5,349 7,406 25,269 Redevelopment Capital Outlay Capital Projects 65,494 5.719 45,654 Other Governmental Funds 33,524 2,591 416 113 93 216 289 6,203 305 9,641 736 9,187 171 11,673 200 291 3,032 31,313 1
3,760 35 10,921 22,734 23,425 411 I
177 223 31,980 26,200 7,410 20,571 76,334 4,233 13,530 212,468 46,531 33,454 48,975 126,943 97,290 5,319 34 3,995 12,260 1,349 15,013 73 25 362 224 1,105 169 6,455 23,425 1,349 3,332 24,480 23,872 36 30,124 1,851 435 59,160 4,116 51,625 23,425 34 35,468 75,049 32,962 Total Governmental Funds 157,848 91,988 1,127 6,508 9,641 736 21,522 38,106 33,690 23,425 412 400 31,980 54,181 94,097 565,661 22,957 15,111 1,691 169 59,041 23,908 31,975 63,711 218,563 447 26,200 1,625 172,905 61,875 26,459 5,639 1,839 1,957 436 459 10,898 36,359 347,098 565,661 446 26,200 76,334 5,349 566 23,106 33,420 13,507 51,893 1,625 44,678 12,952 5,073 1,839 1,957 436 459 10,898 36,359 160,843 23,106 33,420 13,507 51.894 64,328 212,468 46,531 33,454 48,975 126,943 97,290 The notes to the financial statements are an integral part of this statement.
23
CITY OF RIVERSIDE RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2011 (amounts expressed in thousands)
Total fund balances - governmental funds
$347,098 Amounts reported for governmental activities in the Statement of Net Assets are different because:
Capital assets net of accumulated depreciation used in governmental activities that are not current financial resources and, therefore, are not reported in the funds 1,211,224 Issuance costs from issuing debt are expenditures at the fund level but are deferred and subject to capitalization and amortization in the Statement of Net Assets.
13,307 Pension contributions were expenditures at the fund level but are deferred as a net pension asset and subject to capitalization and amortization in the Statement of Net Assets.
112,038 Revenues that do not meet the "availability" criteria for revenue recognition and therefore, are deferred in the funds.
57,012 Accrued interest payable for the current portion of interest due on various debt issues has not been reported in the governmental funds.
(9,635)
Long-term liabilities, as listed below, are not due and payable in the current period and therefore are not reported in the funds.
Bonds payable
$ (447,620)
Certificates of participation payable (211,345)
Notes payable (7,749)
Capital leases payable (6,670)
Commercial loan (1,100)
Bond premiums (6,888)
Net OPEB obligation (7,458)
Compensated absences (20,689)
(709,519)
The City uses derivative instruments to hedge its exposure to changing interest rate:
through the use of interest rate swaps. The following related items have been reflected in the Statement of Net Assets.
Fair value of interest rate swap (14,822)
Deferred amount related to the hedgeable portion of the derivative instrumen 9,496 (5,326)
Internal service funds are used by management to charge the costs of insurance, centralized purchasing and fleet management to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Assets.
(5,646)
Net assets of governmental activities
$1,010,553 24
City of Riverside Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Expenditures Current:
General government Public safety Highways and streets Culture and recreation Capital outlay Debt service:
Principal Interest Bond issuance costs Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses):
Transfers in Transfers out Issuance of long term debt Capital lease proceeds Sales of capital assets Total other financing sources and uses Net change in fund balances Fund balances - beginning Fund balances - ending General Fund 123,505 6,717 11,104 10,687 5,244 3,954 2,964 6,731 170,906 9,347 138,620 14,587 25,360 1,617 36,844 7,207 174 233,756 (62,850) 121,348 (9,539) 30,775 2,000 (81) 144,503 81,653 79,190 160,843 Certificates of Other Total Redevelopment Participation Redevelopment Governmental Governmental Debt Service Debt Service Capital Outlay Capital Projects Funds Funds 44,650 11,163 179,318 940 7,657 200 30,720 89 18,969 61,082 33 10,720 3,684 8,928 1,096 315 649 6,014 2,213 1,529 450 2,445 572 10,173 372 1,911 3,406 4,185 16,605 47,435 2,625 33,396 5,940 40,195 300,497 426 24 8,983 18,848 35,711 7,310 2,374 137 27,581 26,090 140,994 14,587 44,345 105,689 40,780 39,145 4,175 9,100 89,264 14,551 9,863 990 32,611 174 54,122 14,062 40,780 64,532 46,502 453,754 (6,687)
(11,437)
(7,384)
(58,592)
(6,307)
(153,257) 35,369 (28,491) 11,977 29,554 (117,905) 65,000 16,383 (24,345) 9,100 2,000 (3,657) 109 8,878 11,977 (27,008) 1,247 2,191 540 (7,384)
(85,600)
(5,060) 20,915 32,880 20,891 137,494 69,388 23,106 33,420 13,507 51,894 64,328 214,631 (180,280) 104,875 2,000 (1,629) 139,597 (13,660) 360,758 347,098 The notes to the financial statements are an integral part of this statement.
25
CITY OF RIVERSIDE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the year ended June 30, 2011 (amounts expressed in thousands)
Net change in fund balances-total governmental funds
($13,660)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays 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 exceeded depreciation in the current period, as listed below:
Capital Asset additions 81,698 Depreciation Expense (36,475) 45,223 Revenues in the statement of activities that do not meet the "availability" criteria for revenue recognition and therefore are not reported as revenue in the funds.
1,547 The amortization of the net pension asset reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in the governmental funds.
(2,679)
The issuance of long-term debt (e.g., bonds, leases, notes) 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 assets. Also, governmental funds immediately report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The net effect of these differences in the treatment of long-term debt and related items is listed below:
Principal repayments 89,264 Other post-employment benefit liabilities (1,929)
Compensated absences (1,033)
Interest (525)
Premiums on the issuance of LTD (41)
Proceeds from LTD (104,875)
Capital lease proceeds (2,000)
(21,139)
Internal service funds are used by management to charge the costs of insurance, centralized purchasing and fleet management to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.
(3,338)
Change in net assets of governmental activities 5,954 The notes to the financial statements are an integral part of this statement.
26
City of Riverside Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the year ended June 30, 2011 (amounts expressed In thousands)
Budgeted Amounts Original Final Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous 117,754 7,329 2,255 9,889 5,070 4,090 1,580 7,007 117,754 7,329 21,755 9,926 5,070 4,212 1,580 7,007 Actual Amounts 123,505 6,717 11,104 10,687 5,244 3,954 2,964 6,731 Variance with Final Budget 5,751 (612)
(10,651) 761 174 (258) 1,384 (276)
Budgeted Amounts Actual Original Final Amounts Public safety:
Police Fire Animal regulation Building and zoning inspection Street lighting Total public safety Highways and streets 80,820 40,409 3,917 2,147 4,433 131,726 93,061 44,439 4,041 2,155 4,433 148,129 85,616 42,497 3,933 2,085 4,489 138,620 Variance with Final Budget 7,445 1,942 108 70 (56) 9,509 Total revenues 154,974 174,633 170,906 (3,727)
Culture and recreation 14,528 17,940 14,587 3,353 24,506 30,629 25,360 5,269 1,617 1,617_
Expenditures General government:
Mayor Council Manager Attorney Clerk Community Development Human Resources General Services Information System Development Subtotal Allocated expenditures Total general government Capital Outlay 1,017 1,183 13,931 4,108 1,300 4,479 3,007 8,434 14,280 7,162 1,017 1,183 13,931 4,108 1,300 4,479 3,007 8,434 14,280 7,162 966 1,173 12,107 4,226 1,093 3,571 2,741 6,539 11,670 6,656 51 10 1,824 (118) 207 908 266 1,895 2,610 506 Debt service:
Principal Interest Bond issuance costs Total debt service 6,349 7,445 13,794 36,949 7,445 103 44,497 36,844 7,207 174 44,225 105 238 (71) 272 Total expenditures Deficiency of revenue under expenditures 187,512 245,770 233,756 12,014 (32,538)
(71,137)
(62,850) 8,287 58,901 58,901 (55,943)
(55,943) 2,958 2,958 Other financing sources (uses) 50,742 8,159 Transfers in (41,395)
(14,548)
Transfers out Issuance of long term debt 9,347 (6,389)
Capital Lease Proceeds continued Sale of capital assets Total other financing sources 39,695 (7,222) 65 32,538 117,274 (9,539) 30,775 2,000 65 140,575 121,348 (9,539) 30,775 2,000 (81) 144,503 81,653 4,074 (146) 3,928 12,215 The notes to the financial statements are an integral part of this statement.
Net change in fund balances Fund balance, beginning Fund balance, ending 69,438 79,190 79,190 79,190 79,190 148,628 160,843 12,215 27
City of Riverside Statement of Net Assets Proprietary Funds June 30, 3011 (amounts expressed in thousands)
Business-type Activities - Enterprise Funds Assets Current assets:
Cash and investments Receivables (net allowances for uncollectibles)
Interest Utility billed Utility unbilled Accounts Intergovernmental Nuclear materials inventory Inventory Prepaid items Due from other funds Restricted assets:
Cash and cash equivalents Cash and investments at fiscal agent Public benefit programs receivable Total current assets Non-current assets:
Advances to other funds Deferred charges - other Deferred charges - derivative instruments Capital assets:
Land Intangible assets Buildings Accumulated depreciation - buildings Improvements other than buildings Accumulated depreciation - improvements other than buildings Machinery and equipment Accumulated depreciation - machinery and equipment Construction in progress Total non-current assets Total assets Electric Water Sewer Other Enterprise Total Enterprise Funds Funds Governmental Activities-internal Service Funds 168,905 1,381 13,694 12,986 8,783 61 1,905 12,660 4,195 56,804 435 3,125 3,306 2,496 458 2
17,720 60 1,228 1,213 247 233 5,157 71 619 580 369 698 248,586 1,947 18,666 18,085 11,895 1,450 1,905 1,184 12,662 4,195 4,236 57 92 57 7,435 1,184 26,119 7,929 270,273 61,287 697 116 521,659 135,958 174,524 2,247 15,547 36,295 521,631 813 879,314 11,877 196,409 25,288 5,558 19,864 10,016 18,439 4,670 7,437 10,051 23,997 42,022 10,016 11,975 1,541 7,645 9,821 20,712 (5,090) 925,524 (335,124) 25,910 (12,129) 44,665 717,372 1,239,031 10,861 6,307 15,673 (4,008) 472,678 (138,163) 13,331 (8,983) 24,568 399,701 535,659 2,698 189,342 (83,813) 75,897 (13,352) 9,224 (5,373) 26,853 224,585 420,994 13,701 16,015 (4,252) 23,994 (5,557) 17,735 (10,601) 11,563 72,649 97,937 34,905 16,128 241,742 (97,163) 1,498,093 (492,196) 66,200 (37,086) 107,649 1,414,307 2,293,621 1,488 (211) 9,605 (8,005) 215 16,608 28,485 Continued 28
City of Riverside Statement of Net Assets Proprietary Funds June 30, 3011 (amounts expressed in thousands)
Business-type Activities - Enterprise Funds Liabilities Current liabilities:
Accounts payable Accrued payroll Retainage payable Unearned revenue Deposits Due to other funds Capital leases - current Water stock acquisitions - current Landfill capping - current Notes payable - current Claims and judgements - current Current liabilities payable from restricted assets:
Revenue bonds Notes payable Accrued interest Other payables Total current liabilities Non-current liabilities:
Revenue bonds Notes payable Capital leases Advances from other funds Decommissioning liability Deferred charges - derivative instruments Derivative instruments Claims and judgements Water stock acquisitions Landfill capping Total non-current liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Restricted for debt service Restricted for landfill capping Restricted for programs Unrestricted Total net assets Electric Water Sewer 10,902 5,129 150 3,033 388 20,940 1,428 6,382 2,936 51,288 3,210 1,749 106 3,515 1,174 96 678 150 4,545 692 1,891 4,520 1,228 823 13,557 10,820 Other Enterprise Funds 1,516 846 1,656 5
7 200 807 739 5,776 19,143 8,898 352 1,656 3,711 5
395 150 200 807 Governmental Total Enterprise Activities-Internal Funds Service Funds 926 533 4,195 9,900 25,485 2,120 12,793 5,726 350 81,441 15,904 594,613 44,141 1,303 12,381 67,969 17,216 208,315 5,327 243,141 5,878 3,408 23,801 22 3,814 1,046,069 73,820 1,325 24,930 67,969 482 22,664 482 5,448 1,512 16,715 737,623 788,911 225,055 22,237 3,771 199,057 450,120 797 220,369 252,427 233,926 263,247 241,552 5,684 134,859 20,142 6,715 34,352 40,128 53,508 2,247 2,054 57,809 797 6,715 1,244,771 18,227 1,326,212 34,131 654,974 48,063 2,247 3,092 2,316 52,181 2,746 301,733 157,747 6,087 256,038 (8,738) 967,409 (5,646)
The notes to the financial statements are an integral part of this statement.
29
City of Riverside Statement of Revenues, Expenses, and Changes In Fund Net Assets Proprietary Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Business-type Activities - Enterprise Funds Governmental Other Enterprise Total Enterprise Activities-Internal Sewer Funds Funds Service Funds Electric Water Operating revenues:
Charges for services Operating expenses:
Personnel services Contractual services Maintenance and operation General Materials and supplies Claims/Insurance Depreciation and amortization Total operating expenses Operating income (loss)
Non-operating revenues (expenses):
Operating grants Interest income Other Gain (loss) on retirement of capital assets Capital improvement fees Interest expense and fiscal charges Total non-operating revenues (expenses)
Income before capital contributions and transfers Cash capital contributions Noncash capital contributions Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending 313,703 62,084 32,769 26,025 434,581 15,792 35,386 7,361 167,925 14,382 792 1,166 27,690 254,702 59,001 11,670 2,281 8,845 11,865 803 628 11,386 47,478 14,606 9,133 8,072 900 5,044 8,534 6,666 5,518 4,312 3,008 1,340 482 266 6,379 3,841 33,954 29,541 (1,185)
(3,516) 10,368 2,117 400 2,635 910 1,251 4,443 (623)
(306) 575 (8,322)
(4,233)
(5,418)
(21,220)
(8,335) 50,666 2,925 1,131 5,531 (50,184) 10,069 440,051 450,120 (8,912)
(4,116) 10,490 1,356 626 17,114 (5,847) 23,739 277,994 301,733 2,159 102 1,055 4
(719) 2,601 (915) 714 10 (992)
(1,183) 58,992 57,809 64,261 15,586 191,970 36,077 5,943 2,542 49,296 365,675 68,906 2,159 17,548 3,459 1,349 575 (39,173)
(14,083) 54,823 4,995 1,767 22,645 (57,023) 27,207 940,202 967,409 3,705 220 2,120 1,780 210 10,736 783 19,554 (3,762) 497 91 (16)
(148) 424 (3,338)
(3,338)
(2,308)
(5,646)
(5,418) 163,165 157,747 The notes to the financial statements are an integral part of this statement.
30
City of Riverside Proprietary Funds Statement of Cash Flows For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Other Enterprise Sewer Funds Electric Water Cash flows from operating activities:
Cash received from customers and users Cash paid to employees for services Cash paid to other suppliers of goods or services Other receipts Net cash provided (used) by operating activities Cash flows from noncapital financing activities:
Transfers out Operating grants Advances from interfund receivables Payments on interfund receivables Advances to other funds Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities:
Proceeds from the sale of revenue bonds, including premium Issuance costs Purchase of capital assets Purchase of nuclear fuel Proceeds (loss) from the sale of capital assets Proceeds from the long-term obligations Principal paid on long-term obligations Interest paid on long-term obligations Capital improvement fees Capital contributions Net cash provided (used) for capital and related financing activities Cash flows from investing activities:
Purchase of investments Income from investments Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents, beginning (including $110,095 for Electric,
$87,736 for Water, $211,184 for Sewer and $2,466 for Other Enterprise Funds in restricted accounts.)
Cash and cash equivalents, ending (including $198,600 for Electric,
$68,532 for Water, $174,524 for Sewer and $17,794 for Other Enterprise Funds in restricted accounts.)
308.733 (33,976)
(189,073) 2.117 87,801 (50,184)
(324)
(3,545)
(54,053) 140,857 (1,124)
(50,331)
(1,554) 495 (23,086)
(24,985) 2,925 60,023 (11,187)
(22,914) 910 26,832 (5,847)
(139)
(5,986)
(402)
(29,754) 18,379 (4,660)
(9,268) 3,706 33,703 (8,719)
(17,894)
(623) 6,467 2,421 (89)
(306) 26,202 (7.778)
(17,164) 1,055 2,315 (992) 1,543 (7,269)
Total Enterprise Funds 428,661 (61,660)
(247,045) 3,459 123,415 (57,023) 1,543 2,421 (7,821)
(3,851)
(64,731) 140,857 (1,526)
(113,656)
(1,554) 18,893 24,608 (28,475)
(45,856) 575 7,345 Governmental Activities-Internal Service Funds 20,537 (3,553)
(18,452) 91 (1,377) 2,026 (6,718)
(28,592) 15 (679)
(10.891) 575 (39,572) 4.428 4.428 (26,651)
(4,979) 4 24,608 (50)
(712) 714 (689) 1,627 938 (1,044)
(16)
(148) 43,197 (21.999) 19,585 1,211 (1,208) 273 9,900 10,173 87,118 6,998 2,385 9,383 8,230 78 78 15,260 7,271 16,791 24,062 83,957 624,079 708,036 494 494 (1,153) 5,389 4,236 continued 280,387 117,106 367,505 125,336 218,895 7,691 192,244 22,951 31
City of Riverside Proprietary Funds Statement of Cash Flows For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Other Enterprise Funds Electric Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Operating Income (loss) 59,001 Other receipts 2,117 Adjustments to reconcile operating income to net cash provided (used) by operating activities:
Depreciation and amortization 27,690 Amortization of pension costs 291 Amortization (bum) of nuclear fuel 1,449 (Increase) decrease in utility billed receivables 639 (Increase) decrease in utility unbilled receivables (66)
(Increase) decrease in accounts receivable (4,630)
(Increase) decrease in intergovernmental receivables (36)
(Increase) decrease in prepaid items (1,912)
(Increase) in nuclear materials inventory (80)
(Increase) in inventory Increase (decrease) in accounts payable (2,785)
Increase (decrease) in accrued payroll 348 Increase (decrease) in retainage payable 67 Increase in other payable 1,153 (Decrease) in intergovernmental payables (7)
Increase in deposits 145 (Decrease) in due to other funds Increase in claims and judgments Increase in decommissioning liabilitity 4,417 (Decrease) in landfill capping Water Sewer 14,606 910 11,386 125 (192)
(231)
(1,272)
(430) 3 1,507 16 (48) 388 64 (1,185)
(623) 6,379 80 (321)
(245) 1,432 68 1
(33) 509 98 71 236 (3,516) 1,055 3,841 54 (28) 67 146 (8) 20 832 41 (1) 199 (222)
Total Enterprise Funds 68,906 3,459 49,296 550 1,449 98 (475)
(4,324)
(406)
(1,888)
(80)
(33) 63 503 89 1,976 (7) 209 (222) 4,417 (165) 123,415 continued Governmental Activities-Internal Service Funds (3,762) 91 783 35 (47)
(18)
(1,420) 123 28 89 1,647 1,074 (165)
Net cash provided by operating activities Schedule of noncash financing and investing activities:
87,801 26,832 6,467 2,315 (1,377)
The Electric Fund issued bonds to refund debt issued in 2008. The $56,450 proceeds were deposited immediately into an irrevocable trust for the defeasance of $56,450 of outstanding bond principal.
The Water Fund issued bonds to refund debt issued in 2008. The $59,000 proceeds were deposited immediately into an irrevocable trust for the defeasance of $59,000 of outstanding bond principal.
Contribution in aid 1,131 626 10 1,767 The notes to the financial statements are an integral part of this statement.
32
City of Riverside Statement of Fiduciary Assets and Liabilities Fiduciary Fund - Agency Fund June 30, 2011 (amounts expressed in thousands)
Assets:
Cash and investments Cash and investments at fiscal agent Interest receivable Property tax receivables Total assets Liabilities:
Accounts payable Held for bond holders Total liabilities Agency Fund 8,655 8,962 58 262 17,937 28 17,909 17,937 The notes to the financial statements are an integral part of this statement 33
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
- 1. Summary of Significant Accounting Policies The City of Riverside (City) was incorporated on October 11, 1883 as a Charter City and operates under a Council-Manager form of Government.
The more significant accounting policies reflected in the financial statements are summarized as follows:
Complete financial statements for each of the individual component units except the Riverside Municipal Improvement Corporation and Riverside Housing Authority (which do not generate financial statements) may be obtained from the City's Finance Department, 3900 Main Street, Riverside, California, 92522 or online at www.riversideca.Qov.
A. Reporting Entity B. Government-wide and Fund Financial Statements These financial statements present the City and its component units, entities for which the City is financially accountable. Blended component units are legally separate entities, but in substance are part of the City's operations and their data is combined with that of the City's. The City has no component units that meet the criteria for discrete presentation. All of the City's component units have a June 30 year end.
Blended Component Units Riverside Redevelopment Agency (Redevelopment Agency) was established in 1967 by the City. The Redevelopment Agency's primary purpose is to eliminate blighted areas in the City by encouraging commercial development.
City Council members serve as the Redevelopment Agency's directors and have full accountability for fiscal matters.
Riverside Housing Authority (Housing Authority) was established in 2006 by the City. The Housing Authority's primary purpose is to provide safe and sanitary housing accommodations for persons with low or moderate income.
City Council members serve as the Housing Authority's commissioners and have full accountability for fiscal matters.
Riverside Public Financing Authority (Public Financing Authority) was organized in December 1987 by the City and the Redevelopment Agency.
The purpose of the Public Financing Authority is to provide financing for public capital improvements to the City or the Redevelopment Agency. City Council members serve as the Public Financing Authority's directors and have full accountability for fiscal matters.
Riverside Municipal Improvements Corporation (Municipal Improvements Corporation) was created in 1978 and operates under provisions of the Nonprofit Public Benefit Corporation Law of the State of California.
The Municipal Improvements Corporation's primary purpose is to provide financing assistance by obtaining land, property and equipment on behalf of the City.
Three members of the City Council serve as the Municipal Improvements Corporation's directors and have full accountability for fiscal matters.
The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City and its component units.
Interfund activity has been removed from these statements except for utility charges, as this would distort the presentation of function costs and program revenues.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Indirect expenses are allocated to the various functions based on a proportionate utilization of the services rendered. Such allocations consist of charges for accounting, human resources, information technology and other similar support services.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements.
Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting for the proprietary fund financial statements. Agency funds report only assets and 34
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) liabilities, therefore have no measurement focus.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied on the property. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.
An allowance for doubtful accounts is maintained for the utility and other miscellaneous receivables.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for revenue associated with neglected property abatement which is eleven (11) months and except for grant revenue, including reimbursements received from Transportation Uniform Mitigation Fees, which is (6) months and sales tax revenue which is seven (7) months, as described below. Grant revenue is recognized if received within six (6) months of year end to enable the matching of revenue with applicable expenditures. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
In 2004, the State temporarily began to exchange 25% of sales taxes for an equal amount of property taxes to securitize a short-term State bond issue.
The State bond issue will remain outstanding for an uncertain number of years, but is currently estimated not to exceed eight (8) years. These in-lieu sales taxes will be paid to the City by the State on a different calendar than sales taxes, which are paid monthly, three months in arrears. The vast majority of the in-lieu amount will be paid during the applicable fiscal year; however, the final payment of the in-lieu sales taxes will not be paid until the January following the end of the applicable fiscal year.
The City has budgeted this final payment in the current fiscal year and will continue this practice during this temporary period, effectively extending the availability period to seven (7) months for the in-lieu sales taxes and thus provide consistency in the reporting of sales tax revenue.
Property taxes, special assessments, sales taxes, franchise taxes, licenses, charges for services, amounts due from other governments and interest associated with the current fiscal period are all considered to be susceptible to accrual. Other revenue items such as fines and permits are considered to be measurable and available only when the government receives cash, and are therefore not susceptible to accrual.
The government reports the following major governmental funds:
The General fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
The Redevelopment Agency's debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term obligation debt of the Redevelopment Agency.
The Certificates of Participation (COPS) debt service fund accounts for the resources accumulated and payments made for principal, interest and trustee fees on certificates of participation.
The Capital Outlay fund accounts for the construction and installation of street and highway capital improvements for the City, including improvements funded by the 1/ % sales tax approved by Riverside County in 1988.
The Redevelopment Agency's capital project fund accounts for the acquisition, relocation, demolition and sale of land for those portions of the City designated to be in need of redevelopment activities.
The government reports the following major proprietary funds:
The Electric fund accounts for the activities of the City's electric distribution operations.
The Water fund accounts for the activities of the City's water distribution operations.
The Sewer fund accounts for the activities of the City's sewer systems.
Additionally, the government reports the following fund types:
Internal service funds account for self-insurance, central stores and central garage on a cost reimbursement basis.
35
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
The agency (fiduciary) fund is used to account for special assessments that service no-commitment debt.
The permanent fund is a governmental fund that is used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's Library programs. Non-expendable net assets on the Statement of Net Assets includes $1 million of permanent fund principal which are considered nonexpendable net assets.
Pronouncements regarding accounting and financial reporting issued by the Financial Accounting Standards Board prior to December 1, 1989 generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance.
Amounts reported as program revenues include 1) charges to customers for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations.
The sewer fund also recognizes as operating revenue the portion of connection fees intended to recover the cost of connecting new customers to the system.
Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
D. Cash and Investments The City values its cash and investments in accordance with the provisions of Government Accounting Standards Board (GASB) Statement No. 31, "Accounting and Financial Reporting for Certain Investments and External Investment Pools (GASB 31)," which requires governmental entities, including governmental external investment pools, to report certain investments at fair value in the statement of net assets/balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred. Fair value is determined using published market prices.
Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Investments are stated at fair value. All highly liquid investments (including restricted assets) with a maturity of 90 days or less when purchased are considered cash equivalents. Cash and investments held on behalf of proprietary funds by the City Treasurer are considered highly liquid and are classified as cash equivalents for the purpose of presentation in the Statement of Cash Flows.
E. Restricted Cash and Investments Certain proceeds of Enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net assets because their use is limited by applicable bond covenants. Additionally, unspent proceeds received from the City's landfill capping surcharge are also recorded as restricted assets.
F. Land and Improvements Held for Resale Land and improvements held for resale are generally acquired under Developer Disposition Agreements in the normal course of Redevelopment Agency activity. The Developer Disposition Agreements provide for transfer of property to developers after certain redevelopment obligations have been fulfilled. Additionally, the General fund has acquired property which is to be held for resale at a later date. This property is carried at cost until an event occurs to indicate a lower net realizable value.
G. Inventory Supplies are valued at cost using the average-cost method. Costs are charged to user departments when consumed rather than when purchased.
H. Prepaid Items Payments to vendors for services benefiting future periods are recorded as prepaid items and expenditures are recognized when items are consumed.
I. Capital Assets and Nuclear Fuel Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets ( e.g., roads, bridges, sidewalks, right of way, and similar items), are 36
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The government defines capital assets as assets with an initial, individual cost of more than five thousand dollars and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Costs include: labor; materials; interest during construction; allocated indirect charges such as engineering, construction and transportation equipment, retirement plan contributions and other fringe benefits. Donated capital assets are recorded at estimated fair market value at the date of donation. Intangible assets that cost more than one hundred thousand dollars with useful lives of at least three years are capitalized and are recorded at cost. Donated intangible assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets other than land are depreciated using the straight-line method.
Nuclear Fuel The Electric Utility amortizes the cost of nuclear fuel to expense using the "as burned" method.
In accordance with the Nuclear Waste Disposal Act of 1982, the Electric Utility is charged one dollar per megawatt-hour of energy generated by the City's share of San Onofre Nuclear Generating Station's Units 2 and 3 to provide for estimated future storage and disposal of spent fuel.
The Electric Utility pays this fee to its operating agent, Southern California Edison Company, on a quarterly basis.
J. Compensated Absences City employees receive 10 to 25 vacation days a year based upon length of service. A maximum of two years' vacation accrual may be accumulated and unused vacation is paid in cash upon separation.
City employees generally receive one day of sick leave for each month of employment with unlimited accumulation. Upon retirement or death, certain employees or their estates receive a percentage of unused sick leave paid in a lump sum based on longevity.
The General, Redevelopment Agency Capital Projects Housing and Community Development Special Revenue, Electric and Water funds have been primarily used to liquidate such balances.
The liability associated with these benefits is reported in the government-wide statements. Vacation and sick leave of proprietary funds is recorded as an expense and as a liability of those funds as the benefits accrue to employees.
K. Derivative Instruments The City's derivative instruments are accounted for in accordance with Government Accounting Standards Board (GASB) Statement No. 53, "Accounting and Financial Reporting for Derivative Instruments" (GASB 53),
which requires the City to report its derivative instruments at fair value.
Changes in fair value for effective hedges that are achieved with derivative instruments are reported as deferrals in the statements of net assets.
The City uses derivative instruments to hedge its exposure to changing interest rates through the use of interest rate swaps. The City had debt that was layered with "synthetic fixed rate" swaps, which was refunded in 2008 and 2011.
At the time of the refunding, hedge accounting ceased to be applied. The balance of the deferral account for each swap was included in the net carrying amount of the new bonds. The swaps were also employed as a hedge against the new debt. Hedge accounting was applied to that portion of the hedging relationship, which was determined to be effective.
The negative fair value of the interest rate swaps related to the new hedging relationship has been recorded and deferred on the statement of net assets.
See Note 9 for further discussion related to the City's interest rate swaps.
Various transactions permitted in the Utility's Power Resources Risk Management Policies may be considered derivatives, including energy and/or gas transactions for swaps, options, forward arrangements and congestion revenue rights. The Utility has determined that all of its contracts including congestion revenue rights fall under the scope of "normal purchases and normal sales" and are exempt from GASB 53.
L. Long-Term Obligations Lonq-Term Debt In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are classified as deferred charges 37
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) and amortized over the life of the bonds using the effective interest method.
Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, government fund types recognize bond issuance costs as expenditures during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuance are reported as other financing uses.
Decommissioning Federal regulations require the Electric Utility to provide for the future decommissioning of its ownership share of the nuclear units at San Onofre.
The Electric Utility established a trust account to accumulate resources for the decommissioning of the nuclear power plant and restoration of the beachfront at San Onofre.
Each year the Electric Utility recognizes an expense in the amount of the contribution to the trust account. The funding will occur over the useful life of the generating plant.
Amounts held in the trust account are classified as restricted assets in the accompanying balance sheet. To date, the Electric Utility has set aside
$63,552 in cash and investments with the trustee as Riverside's estimated share of the decommissioning cost of San Onofre. Based on a cost estimate completed by Southern California Edison and approved by the California Public Utilities Commission, the Electric Utility plans to set aside approximately $1,600 per year to fund this obligation. The plant site easement at San Onofre terminates May 2024.
The plant must be decommissioned and the site restored by the time the easement terminates.
M. Claims and Judgments Payable Claims and judgments payable are recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Such claims, including an estimate for claims incurred but not reported at year end, are recorded as liabilities in the appropriate internal service fund.
N. Fund Equity In the fund financial statements, governmental fund balance is made up of the following components:
- Nonspendable fund balance is the portion of fund balance that cannot be spent due to form. Examples include inventories, prepaid amounts, long-term loans, notes receivable, and property held for resale, unless the proceeds are restricted, committed or assigned. Also, amounts that must be maintained intact legally or contractually, such as the principal of a permanent fund are reported within the nonspendable category.
- Restricted fund balance is the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or limitations imposed by creditors or grantors.
" Committed fund balance is the portion of fund balance that is subject to self-imposed constraints due to formal action of the City Council. No amounts have been reported within this category of fund balance.
" Assigned fund balance is the portion of fund balance that is constrained by the City's intent to utilize fund balance for a specific purpose. The authority to assign fund balance has been delegated by City Council to the City's chief financial officer.
" Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.
When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned or unassigned) fund balances are available, the City's policy is to use restricted amounts before unrestricted amounts. Within unrestricted resources, committed resources are used first followed by assigned resources, and finally unassigned resources.
- 0. Net Assets Net assets represent the difference between assets and liabilities.
Net assets invested in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net assets invested in capital assets, net of related debt excludes unspent debt proceeds. Net assets are reported as restricted when there are limitations imposed on their use either through legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Restricted resources are used first to fund appropriations.
P. Interfund Transactions Interfund transactions are accounted for as revenues and expenditures or expenses. Transactions, which constitute reimbursements, are eliminated in 38
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) the reimbursed fund and accounted for as expenditures or expenses in the fund to which the transaction is applicable.
During the year, transactions occur between individual funds for goods provided or services rendered.
Related receivables and payables are classified as "due from/to other funds" on the accompanying fund level statements. The noncurrent portion of long-term interfund loans receivable are reported as interfund receivables/payables and, for governmental fund types, are equally offset by a fund balance reserve to indicate that the receivable does not constitute available expendable financial resources.
Interfund payables also include accrued interest, which has been offset by deferred revenue.
Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances".
Q. Deferred Revenue Governmental and proprietary funds report unearned revenue on the statement of net assets. Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to meeting all eligibility requirements.
In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, revenue is recognized.
Deferred revenues arise in governmental funds when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period.
The majority of the City's governmental fund unearned revenue for June 30, 2011 relates to unearned revenue on a capital lease.
See Note 4.
R. Property Tax Calendar Under California law, general property taxes are assessed for up to 1% of the property's assessed value. General property taxes are collected by the counties along with other special district taxes and assessments and voter approved debt. General property tax revenues are collected and pooled by the county throughout the fiscal year and then allocated and paid to the county, cities and school districts based on complex formulas prescribed by State statutes.
Property taxes are calculated on assessed values as of January 1 for the ensuing fiscal year. On July 1 of the fiscal year the levy is placed and a lien is attached to the property. Property taxes are due in two installments. The first installment is due November 1 and is delinquent on December 10. The second installment is due February 1 and is delinquent on April 10. Property taxes receivable represent current and prior years' uncollected tax levies, adjusted for uncollectable amounts.
S. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures. Specifically, the City has made certain estimates and assumptions relating to the revenues due and expenditures incurred through fiscal year end, collectability of its receivables, the valuation of property held for resale, the useful lives of capital assets, and the ultimate outcome of claims and judgments.
Actual results may differ from those estimates and assumptions.
T. Implementation of New GASB Pronouncement The City adopted Governmental Accounting Standards Board (GASB)
Statement No. 54, "Fund Balance Reporting and Governmental Fund Type Definitions". This new accounting standard enhances the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. This statement established fund balance classifications that comprise a hierarchy based on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.
- 2. Legal Compliance - Budgets Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.
Annual appropriated budgets are adopted for all departments within the general, special revenue and capital project funds. Formal budgets are not employed for debt service funds because debt indenture provisions specify payments. The permanent fund is not budgeted.
During the period December through February of each fiscal year, department heads prepare estimates of required appropriations for the following fiscal year.
These estimates are compiled into a proposed operating budget that includes a summary of proposed expenditures and 39
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) financial resources and historical data for the preceding fiscal year. The operating budget is presented by the City Manager to the City Council for review. Public hearings are conducted to obtain citizen comments. The City Council generally adopts the budget during one of its June meetings. The City Manager is legally authorized to transfer budgeted amounts between divisions and accounts within the same department.
Transfer of appropriations between departments or funds and increased appropriations must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations at the departmental level within a fund.
All appropriations shall lapse at the end of the fiscal year to the extent they have not been expended or lawfully encumbered, except for appropriations for capital projects which shall continue to their completion.
- 3. Cash and Investments Cash and investments at fiscal year-end consist of the following:
Authorized Investments Under provisions of the City's investment policy, and in accordance with California Government Code Section 53601, the City Treasurer may invest or deposit in the following types of investments:
Securities of the U.S. Gov't.
and its sponsored agencies Repurchase Agreements Reverse Repurchase Agreements Negotiable Certificates of Deposit Bankers Acceptances Commercial Paper of "prime" quality Local Agency Investment Fund (State Pool)
Mutual Funds Medium-Term Corporate Notes Local Agency Bonds Max Maturity 5 Years 1 Year 90 Days 5 Years 180 Days 270 Days N/A N/A 5 Years N/A Max % of Portfolio 100%
100%
20%
30%
40%
25%
100%
20%
30%
N/A Investments Investments at fiscal agent Cash on hand and deposits with financial institutions Non-negotiable certificates of deposit
$ 435,250 629,218 1,064,468 369 13,364
$1.078,201 The amounts are reflected in the government-wide statement of net assets:
Cash and investments Restricted cash and cash equivalents Restricted cash and investments at fiscal agent Total per statement of net assets Fiduciary fund cash and investments
$ 410,670 36,295 613,619 1,060,584 17,617
$1,078.201 Investments in Medium Term Corporate Notes may be invested in securities rated A or. better by Moody's or Standard and Poor's rating services and no more than 15% of the market value of the portfolio may be invested in one corporation.
The City's investment policy provides two exceptions to the above; one is for investments authorized by debt agreements (described below) and the other for funds reserved in the San Onofre Nuclear Generating Station Decommissioning Account for which the five-year maturity limitation may be extended to the term of the operating license.
Investments Authorized by Debt Agreements 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 held by bond fiscal agents.
Permitted investments are specified in related trust agreements and include the following:
Securities of the U.S. Government and its sponsored agencies Bankers' Acceptances rated in the single highest classification Commercial Paper rated in the single highest classification Investments in money market funds rated in the single highest classification The City follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures, which are administered by outside agencies.
Interest income earned on pooled cash and investments is allocated monthly to funds based on the beginning and month-end balances. Interest income from cash and investments held at fiscal agents is credited directly to the related account. Bank deposits are covered by federal depository insurance for the first $250 or by collateral held in the pledging bank's trust department in the name of the City.
40
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Municipal obligations rated Aaa/AAA or general obligations of states with ratings of at least A2/A or higher by both Moody's and S&P Investment Agreements No maximum percentage of the related debt issue or maximum investment in one issuer is specified.
Disclosures Relatina to Interest Rate Risk 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.
Presented below is the actual rating as of year-end for each investment type:
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City's investment policy requires that the interest rate risk exposure be managed 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.
Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:
Ratings as of Year End Investment Type Money Market Funds Federal Agency Securities Corp Medium Term Notes Local Agency Bonds State Investment Pool Negotiable CDs Held by Fiscal Agent Money Market Funds State Investment Pool Investment Contracts Commercial Paper Fed Agency Securities Corp Med Term Notes Total Total 30,009 192,084 51,954 33,300 123,329 4,574 29,570 90,631 414,871 5,261 64,582 24,303 AAA
$ 19,498 192,084 51,954 13,958 64,582 AA A
Unrated
$10,511 182573 S229.04 33,300 123,329 4,574 5,261 5,730
$1.91 15,612 90,631 414,871
$682311 Remaining Maturity (in Months) 12 13 to 24 25 to 60 More than Total Months Months Months 60 Months or Less Investment Type Money Market Funds Federal Agency Securities Corp Medium Term Notes Local Agency Bonds State Investment Pool Negotiable CDs Held by Fiscal Agent Money Market Funds State Investment Pool Investment Contracts Commercial Paper Fed Agency Securities Corp Med Term Notes Total Concentration on Credit Risk 30,009 192,084 51,954 33,300 123,329 4,574 29,570 90,631 414,871 5,261 64,582 24,303
$1.064,46a___8
$ 30,009 16,635 10,122 123,329 29,570 90,631 150,493 5,261 3,416 1,230 71,238 15,669 104,211 26,163 The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stated above. Investments in any one issuer (other than U.S. Treasury securities, money market funds, 33,300 and external investment pools) that represent 5% or more of total City investments are as follows:
248 4,326 Issuer Trinity Funding Deutsche Bank Securities Inc.
Investment Type Investment Contract Investment Contract Reported Amount
$249,105
$140,257 76,260 15,017 3,154 173,403 26,817 11,674 14,715 19,332 8,245 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 will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-The City assumes that callable investments will not be called.
41
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.
The City's investment policy requires that a third party bank trust department hold all securities owned by the City. All trades are settled on a delivery vs. payment basis through the City's safekeeping agent. The City has no deposits with financial institutions; bank balances are swept daily into a money market account.
Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (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 are recorded on an amortized cost basis.
- 4. Capital Lease Receivable The Redevelopment Agency has a direct financing lease arrangement with the State of California (the State) for a twelve-story office building. The lease term is for thirty years and the State takes ownership of the facility at the conclusion of that term. The lease calls for semi-annual payments not less than the debt service owed by the Redevelopment Agency on the lease revenue bonds issued for the purchase and renovation of the building. The future minimum lease payments to be received are as follows:
- 5. Capital Assets Below and on the following page is a summary of changes in the capital assets during the fiscal year ended June 30, 2011.
Governmental activities:
Capital assets, not depreciated:
Land Construction in progress Total capital assets not depreciated Capital assets being depreciated:
Buildings Improvements other than Buildings Machinery and Equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for:
Buildings Improvements other than Buildings Machinery and Equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net Beginning Balance
$ 280,446 45,206 325,652 165,017 159,501 75,442 800 754 Deletions/
Ending Additions Transfers Balance
$ 10,246 23,124 33.370 (44,768)
(44.768)
$ 290,692 23,562 314,254 84 165,101 43,410 2,694 48.336 202,911 (3,633) 74,503 849,090 1,20,714 94,54 (3.633) 1,291605 (37,596)
(4,186)
(41,782)
(41,168)
(51,015)
(227.755)
(357.534)
(7,142)
(6,983)
(18,947)
(37,258) 3,249 3.249 (48,310)
(54,749)
(246.702)
(391.543) 843,180 57,266 (384) 900,062 j$jlBi&B3
$90l636i s12I4a~Mfi 2012 2013 2014 2015 2016 Thereafter Total Due Less: amount applicable to interest Total capital lease receivable
$ 2,413 2,443 2,473 2,507 2,533 24,227 36,596 (13.171)
$3a-425 42
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Business type activities:
Capital assets, not depreciated:
Land Intangibles Construction in progress Total capital assets not depreciated Capital assets being depreciated:
Buildings Improvements other than Buildings Machinery and Equipment Total capital assets being depreciated Less accumulated depreciation for:
Buildings Improvements other than Buildings Machinery and Equipment Total accumulated depreciation Total capital assets being depreciated, net Beginning Balance 34,820 6,307 169.473 210,600 Deletions/
Ending Additions Transfers Balance 155 9,821 159 221 169,197 (70)
(221,045)
(221,115) 34,905 16,128 107,649 158,682 Business type activities:
Electric Water Sewer Refuse Special Transportation Airport Public Parking Total depreciation expense -
business type activities
$27,690 11,386 6,379 1,373 561 620 866 236,280 5,462 241,742 1,293,535 208,155 (3,597) 1,498,093 66405 7431 (7636) 66200 1,596,220 221,048 (1,23 1,806,035 (91,506)
(5,658)
(458,296)
(36,830)
(586.632)
(36,967)
(6.250)
(48.875) 3,067 5,994 9U062 (97,163)
(492,196)
(37,086)
(626,445)
- 6. Long-Term Obligations Changes in Long-Term Obligations: Below is a summary of changes in long-term obligations during the fiscal year:
Governmental Activities:
1,009,88 172,173 (2.171) 1,179,590 Business type activities capital assets, net
$1.2018 I
Estimated useful lives used to compute depreciation are as follows:
Beginning Balance*
Due Ending Within Balance One Year Additions Reductions Buildings and Improvements Improvements other than Buildings Machinery and Equipment Infrastructure 30-50 years 20-99 years 3-15 years20-100 years Redevelopment Agency bonds General Obligation Bonds Pension Obligation Bonds Certificates of Participation Capital leases Notes Payable Commercial Loan Compensated Absences Claims liability Net OPEB Obligation Total 17,533 688 16,845
$278,867
$ 65,000
$ 38,672
$305,195
$ 7,240 725 136,050 30,775 34,730 132,095 35,555 211,212 6,303 8,191 1,100 2,000 9,100 3,966 1,633 442 9,100 207,246 6,670 7,749 1,100 4,750 1,340 588 Depreciation expense was charged to functions of the government as follows:
Governmental activities:
General government Public safety Highways and streets, including depreciation of general infrastructure assets Culture and recreation Total depreciation expense - governmental activities 20,101 7,836 25,541 10,576 6,784 21,153 7,100 9,502 26,615 9,900
$ 4,548 4,361 20,502 7,847 5,790 2,962 944 7,808 43
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Business-type activities:
Revenue Bonds Loan Payable Notes Payable Capital Leases Landfill Capping Arbitrage Liability Water Stock Acquisition Rights Net OPEB Obligation Total Beginning Balance
$968,393 7,249 2,151 7,380 27 Additions
$242,732 45,569 25,000 75 Reductions
$ 139,571 1,071 431 465 Ending Balance
$1,071,554 45,569 31,178 1,720 6,915 102 Due Within One Year
$25,485 1,428 1,499 395 200
$141,840 2008 Electric Refunding/Revenue Bonds; Series A and C. The bonds were issued at a variable rate; however the City entered into an agreement to convert to a fixed rate of 3.1% for the Series A bonds and 3.2% for the C bonds. For information on the swap agreements see note 9. Bonds are due in annual installments from $1,325 to $8,560 through October 1, 2035.
949 2
947 4,063 2,5 790 5,2
~~ $iA42.3M Si16U3.61 The following debt has been issued for the purpose of generating capi resources for use in acquiring or constructing municipal facilities infrastructure projects. The Redevelopment Agency does issue debt for t above purposes as well as for redevelopment related purposes such housing and blight removal.
$209,740 2008 Electric Revenue Bonds; Series D fixed 150 rate bonds, 3.6% to 5.0%, due in annual installments from $125 to $24,960 through October 1, 2038.
1E
$34,920 2009 Electric Refunding/Revenue Bonds; Series A fixed rate bonds, 0.35% to 5.0%, due in tal annual installments from $450 to $6,105 through or October 1, 2018. The bonds refunded the 1998 series he and partially refunded the 2001 series.
as
$140,380 2010 Electric Revenue Bonds; Series A and B fixed rate bonds, 3% to 4.9%, due in annual installments from $2,300 to $33,725 through October 1,
)al 2040.
ng
$56,450 2011 Electric Revenue Refunding Bonds; Series A. The bonds were issued at a variable rate; however the City entered into an agreement to convert to a fixed rate of 3.2%. For information on the swap agreements see note 9. Bonds are due in annual installments from $725 to $5,175 through October 1, 25 2035.
140,965 209,740 27,425 140,380 Lonq-Term Obliqations at June 30, 2011:
Princip Outstandir Revenue Bonds:
Electric
$47,215 2001 Electric Revenue Bonds; 2.9% to 5.25%,
due in annual installments from $2,855 to $4,280 through October 1, 2016 (partially advance refunded in 2005 and 2009, with final maturity in 2013).
$75,405 2003 Electric Revenue Bonds; 2.0% to 5.0%,
due in annual installments from $1,035 to $8,535 through October 1, 2013.
$27,500 2004 Electric Revenue Bonds; Series A fixed rate bonds, 4.0% to 5.5%, due in annual installments from $2,615 to $3,695 through October 1, 2014.
$ 7,52 Subtotal Add: Unamortized bond premium Less: Unamortized deferred bond refunding costs 23,665 13,125 619,275 10,091 (13,813)
$615,553 Water
$20,000 2001 Water Revenue Bonds; 2.6% to 5.0%,
due in annual installments from $345 to $585 through October 1, 2031 (partially advance refunded in 2005 and 2009, with final maturity in 2014).
$1,470 44
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
$58,235 2008 Water Revenue Bonds; Series B fixed rate bonds, 4.0% to 5.0%, due in annual installments from $1,210 to $7,505 through October 1, 2038.
$31,895 2009 Water Refunding/Revenue Bonds; Series A fixed rate bonds, 0.65% to 5.0%, due in annual installments from $500 to $3,835 through October 1, 2020. The bonds refunded the 1998 series and partially refunded the 2001 series.
$67,790 2009 Water Revenue Bonds; Series B fixed rate bonds, 3.33% to 4.13%, due in annual installments from $2,475 to $4,985 through October 1, 2039.
$59,000 2011 Water Refunding/Revenue Bonds; Series A. The bonds were issued at a variable rate; however the City entered into an agreement to convert to a fixed rate of 3.2%. For information on the swap agreements see note 9. Bonds are due in annual installments from $800 to $3,950 through October 1, 2035.
Subtotal Add: Unamortized bond premium Less: Unamortized deferred bond refunding costs Sewer
$240,910 2009 Sewer Revenue Bonds; Series A & B fixed rate bonds, 3.65% to 5.0%, due in annual installments from $5,555 to $13,350 through August 1, 2039.
Add: Unamortized bond premium Total Revenue Bonds Remaining revenue bond debt service payments will be made from revenues of the Electric, Water and Sewer Enterprise funds.
Annual debt service requirements to maturity are as follows:
58,235 Electric Utility Fund Water Utility Fund 31,370 67,790 Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 2032-2036 2037-2041 Premium (Discount)
Refunding Costs Total Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 2032-2036 2037-2041 Premium Total Principal
$ 20,940 21,905 20,685 14,480 15,415 68,380 81,705 99,720 122,650 153,395 Interest
$ 26,531 25,551 24,543 23,745 23,113 108,340 94,398 75,736 51,670 19,753 Total
$47,471 47,456 45,228 38,225 38,528 176,720 176,103 175,456 174,320 173,148 Principal 4,545 4,695 4,870 5,015 5,260 28,175 33,990 41,110 49,955 40,250 Interest
$ 8,840 8,678 8,487 8,276 8,046 36,753 30,773 23,417 14,296 3,234 Total
$13,385 13,373 13,357 13,291 13,306 64,928 64,763 64,527 64,251 43,484 10,091 10,091 4,797 4,797 (13,813)
(13,813)
(982
$473a3B
$1-088,933
$212,860 (9,802)
Sewer Utility Fund Principal Interest 217,865 4,797 (9,802)
$212,860
$240,910 2,231
$243,141
$1.071.554 6,760 7,035 7,325 7,660 39,810 31,900 40,050 50,520 49,850 2,221
$243-131
$10,847 10,712 10,436 10,149 9,811 43,746 36,416 28,260 17,796 4,802
- 3182.9Th Total
$10,847 17,472 17,471 17,474 17,471 83,556 68,316 68,310 68,316 54,652 2,221 Principal Outstanding Redevelopment Agency Bonds:
$13,285 1991 Public Financing Authority Revenue Bonds, Series A, Multiple Project Areas; $1,470 serial revenue bonds 7.15% to 7.6%, due in annual installments from $100 to $145 through February 1, 2003; and $4,175 term bonds, 8.0%, due in annual installments from $155 to $450 through February 1, 2018 (portion not refunded).
130 45
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the vear ended June 30. 2011 (amounts expressed in thousands)
$17,025 1999 University Corridor/Sycamore Canyon Merged Project Area, Tax Allocation Bonds, Series A;
$6,205 serial bonds, 3.4% to 4.7% due in annual installments from $40 to $570 through August 1, 2014;
$4,810 term bonds at 4.75% due August 1, 2021; and
$6,010 term bonds at 5.0% due August 1, 2027.
$6,055 1999 University Corridor/Sycamore Canyon Merged Project Area, Subordinate Tax Allocation Bonds, Series B; $1,900 serial bonds, 4.5% to 5.5%
due in annual installments from $35 to $190 through September 1, 2013; $1,135 term bonds at 5.5% due September 1, 2018; and $3,020 term bonds at 5.625%
due September 1, 2027.
$20,395 1999 Casa Blanca Project Area, Tax Allocation Bonds, Series A; $8,925 serial bonds, 3.4%
to 4.7% due in annual installments from $455 to $780 through August 1, 2014; $2,565 term bonds at 4.75%
due August 1, 2017; $4,035 term bonds at 4.75% due August 1,2021; and $4,870 term bonds at 5.0% due August 1, 2025.
$4,550 Arlington Redevelopment Project, 2004 Tax Allocation Bonds, Series A; $420 term bonds at 3.8%
due August 1, 2014; $615 term bonds at 4.6% due August 1, 2024; and $3,515 term bonds at 4.7% due August 1, 2034.
$2,975 Arlington Redevelopment Project Area, 2004 Tax Allocation Bonds; Series B: 5.5% due in annual installments from $85 to $235 through August 1, 2024.
$26,255 State of California Department of General Services Project, 2003 Lease Revenue Refunding Bonds, Series A; 2.0% to 5.0% due in annual installments from $545 to $2,230 through October 1, 2024.
$4,810 State of California Department of General Services Project, 2003 Lease Revenue Refunding Bonds, Series B; $310 serial bonds 1.20% to 1.42%
through October 1, 2004; $620 term bonds at 3.090%
due Oct. 1, 2008; $1,110 term bonds at 4.340% due Oct. 1, 2014 and $2,770 term bonds at 5.480% due Oct. 1, 2024.
12,950 4,700 14,395 4,310 2,385 20,710
$40,435 Downtown/Airport Merged Project Area, 2003 Tax Allocation and Refunding Bonds; $32,720 serial bonds 2.0% to 5.25% due in annual installments from
$1,220 to $1,955 through August 1, 2023; and $7,715 term bonds at 5.0% due in annual installments from
$195 to $2,060 through August 2034.
$24,115 2005 Housing Set-Aside Tax Allocation Bonds;
$17,025 serial bonds 3.0% to 4.625% due in annual installments from $505 to $1,165 through August 1, 2025; $2,425 term bonds at 5.0% due August 1, 2028; and $4,665 term bonds at 4.85% due August 1, 2034.
$8,340 Downtown/Airport Merged Project Area and Casa Blanca Project Area 2007 Tax Allocation Bonds, Tax Exempt, Series A, serial bonds 4.0% to 4.25% due in annual installments from $20 to $590,000 through August 1, 2025; $4,980 term bonds at 4.5% due August 1, 2029; $410 term bonds at 4.375% due August 1, 2037.
$1,465 California Statewide Communities Development Authority 2005 Taxable Revenue Bonds, Series A (CRA/ERAF Loan Program); 3.87% to 5.01% due in annual installments of $105 to $180 through August 1, 2015.
$14,850 Downtown/Airport Merged Project Area and Casa Blanca Project Area 2007 Tax Allocation Bonds, Taxable, Series B, $4,050 term bonds at 5.2% due August 1, 2017; $10,800 term bonds at 5.8% due August 1, 2028.
$89,205 University Corridor/Sycamore Canyon Merged Project Area, Arlington Project Area, Hunter Park/Northside Project Area, Magnolia Center Project Area, and La Sierra/Arlanza Project Area 2007 Tax Allocation Bonds, Tax-Exempt, Series C, serial bonds 4.0% to 5.0% due in annual installments from $50 to
$3,210 through August 1, 2025; $17,955 term bonds at 4.5% due August 1, 2030; $47,775 term bonds at 5.0%
due August 1, 2037.
$43,875 University Corridor/Sycamore Canyon Merged Project Area, Arlington Project Area, Hunter 20,555 31,285 8,280 675 13,785 88,675 3,540 46
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Park/Northside Project Area, Magnolia Center Project Area, and La Sierra/Arlanza Project Area 2007 Tax Allocation Bonds, Taxable, Series D, $15,740 term bonds due August 1, 2017; $28,135 term bonds due August 1,2032.
$5,000 Magnolia Redevelopment Project Area, 2011 Taxable Tax Allocation Bonds Series A; Interest at the rate of 5% per annum paid semi-annually on May 1 and November 1, commencing May 1, 2012. Bonds are due in annual installments from $80 to $920 through November 1, 2041. The bonds were purchased by the City and are held in the City's investment pool.
$17,700 University Corridor/Sycamore Canyon Merged Project Area, 2011 Taxable Tax Allocation Bonds Series A; Interest at the rate of 5% per annum paid semi-annually on May I and November 1, commencing May 1, 2012. Bonds are due in annual installments from $845 to $3,480 through November 1, 2037. The bonds were purchased by the City and are held in the City's investment pool.
$17,300 Downtown/Airport/Hunter Park/Northside Merged Project Area, 2011 Taxable Tax Allocation Bonds Series A; Interest at the rate of 5% per annum paid semi-annually on May 1 and November 1, commencing May 1, 2012. Bonds are due in annual installments from $285 to $1,365 through November 1, 2041. The bonds were purchased by the City and are held in the City's investment pool.
$20,000 La Sierra/Arlanza Redevelopment Project Area, 2011 Taxable Tax Allocation Bonds Series A; Interest at the rate of 5% per annum paid semi-annually on May 1 and November 1, commencing May 1, 2012.
Bonds are due in annual installments from $1,870 to
$3,130 through November 1, 2041. The bonds were purchased by the City and are held in the City's investment pool.
Subtotal Add: Unamortized bond premium Add: Unamortized deferred bond refunding costs Total Redevelopment Agency Bonds Remaining debt service will be paid by the Redevelopment Agency Debt Service Funds from future property tax revenues.
Annual debt service requirements to maturity are as follows:
39,210 1,000 Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 2032-2036 2037-2041 2042-2046 Premium Refunding Costs Total Principal
$ 7,240 7,575 7,930 8,310 8,520 52,430 65,955 56,480 51,730 27,300 5,415 5,956 354
$305.195 Interest
$ 15,417 14,415 14,073 13,712 13,330 59,516 43,997 28,092 14,875 3,468 135
$221.030 Total
$ 22,657 21,990 22,003 22,022 21,850 111,946 109,952 84,572 66,605 30,768 5,550 5,956 354
$526.225 10,000 17,300 5,000 298,885 5,956 354
$305,195 General Obligation Bonds:
Principal Outstandinq
$20,000 Fire Facility Projects, Election of 2003 General Obligation Bond; 3.0% to 5.5%, due in annual installments from $410 to $1,740 through August 1, 2024.
Add: Unamortized bond premium Total General Obligation Bonds
$16,640 205
$16.845 Remaining general obligation bond debt service payments will be made from unrestricted revenues of the General fund. Annual debt service requirements to maturity are as follows:
Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2025 Premium Total Principal 725 780 840 900 965 6,015 6,415 205
$1.84 Interest
$ 766 737 706 671 634 2,438 724 Total
$1,491 1,517 1,546 1,571 1,599 8,453 7,139 205 47
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Principal Outstanding Pension Obligation Bonds:
$89,540 California Statewide Community Development Authority (Public Safety) 2004 Taxable Pension Obligation Bond; 2.65% to 5.896%, due in annual installments from $1,125 to $10,715 through June 1, 2023.
$30,000 2005 Taxable Pension Obligation Bonds Series A; 3.85% to 4.78%, due in annual installments
$630 to $3,860 through June 1,2020.
$30,775 2011 Taxable Pension Obligation Refunding Bond Anticipation Notes; rate at June 30, 2011 was 1.33%, $30,775 due June 1, 2012.
$ 77,055 24,265
$19,945 2006 Galleria at Tyler Public Improvements Certificates of Participation; 4.0% to 5.0%, due in annual installments from $435 to $1,270 through September 1, 2036.
$128,300 2008 Riverside Renaissance Certificates of Participation; issued at a variable rate; however the City entered into an agreement to convert to a fixed rate of 3.4%. For information on the swap agreement see note 9. Due in annual installments from $2,900 to
$7,200 through March 1, 2037.
$20,660 2010 Recovery Zone Facility Hotel Project Certificates of Participation; 4.0% to 5.5%, due in annual installments from $415 to $1,410 through March 1,2040.
Subtotal Add: Unamortized bond premium Less: Unamortized deferred bond refunding costs Total Certificates of Participation 19,945 125,400 Total Pension Obligation Bonds
$132.095 211,345 727 (4,826)
$207246 Remaining pension obligation bond debt service payments will be made from unrestricted revenues of the General fund. Annual debt service requirements to maturity are as follows:
Remaining certificates of participation debt service payments will be made from unrestricted revenues of the Debt Service funds. Annual debt service requirements to maturity are as follows:
Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2023 Total Principal
$ 35,555 5,475 6,230 7,050 7,930 49,410 20,445 Interest
$ 5,901 5,357 5,080 4,759 4,391 14,442 1,837 Total
$41,456 10,832 11,310 11,809 12,321 63,852 22,282
$173*862 Principal Outstanding Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 2032-2036 2037-2040 Premium Refunding Costs Total Principal
$ 4,750 4,920 5,085 5,680 5,990 33,490 39,675 46,730 51,335 13,690 727 (4,826)
$2O7.246 Interest
$ 8,326 8,155 7,979 7,785 7,560 34,172 26,930 18,453 8,264 950
$128.54 Total
$13,076 13,075 13,064 13,465 13,550 67,662 66,605 65,183 59,599 14,640 727 (4,826)
Certificates of Participation:
$53,185 2003 Riverside Public Financing Authority Certificates of Participation; 2.0% to 5.0%, due in annual installments from $755 to $2,830 through September 1, 2033.
$45,340 48
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Principal Outstanding Remaining notes payable debt service payments will be unrestricted revenues of the Redevelopment Agency.
Annual debt service requirements to maturity are as follows:
made from Loan Payable - Electric Fund:
The City entered into the Clearwater Power Plant Purchase and Sale Agreement dated March 3, 2010 with the City of Corona for the acquisition of Clearwater Cogeneration Facility (Clearwater) located in Corona.
The total purchase price for Clearwater is $46,569, and will be funded through a series of semi-annual payments ranging from $1,158 to $2,664 through 2013, and $182 to $413 in 2014 and 2015. In addition, two payments of $36,406 and $7,367 are due in 2013 and 2015, respectively, and will be funded primarily from bond proceeds.
Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 2032-2036 Total Redevelopment Agency Principal Interest
$ 588
$ 544 636 513 1,011 503 743 440 782 346 1,461 1,596 471 1,238 777 933 1,280 430 Total
$ 1,132 1,149 1,514 1,183 1,128 3,057 1,709 1,710 1,710 Principal Outstanding
$3,038 Principal Outstanding Notes Payable - Redevelopment Agency:
These notes payable have been issued to promote development and expansion within the City's redevelopment areas.
Pepsi Cola Bottling Company of Los Angeles, 10.5%,
payable in net annual installments of $341, subject to recording of completion.
HUD Section 108 loan for University Village, 5.36% to 7.66%, payable in semi-annual installments beginning August 1, 1996 of $272 to $425 through August 1, 2015 HUD Section 108 loan for Mission Village Project, 6.15% to 6.72%, payable in semi-annual installments beginning August 1, 1999 of $110 to $420 through August 1, 2018 Note payable to California Housing Finance Agency, interest at 3%, payable in annual installments of $88 through 2013, for housing projects.
Total notes payable - Redevelopment Agency
$2,987 1,740 2,695 327 Notes payable - Enterprise Funds:
Sewer fund loan from State of California for Cogeneration project, 2.336%, payable in net annual installments of $339, beginning January 29, 2003 through January 29, 2021 Sewer fund loan from State of California for Headworks project, 1.803%, payable in net annual installments of
$477, beginning November 6, 1999 through November 6, 2018 Public parking fund loan from City National Bank for Fox Entertainment Plaza project, 3.85%, payable in net annual installments of $1,747, beginning June 16, 2011 through December 16, 2031 Total notes payable - Enterprise Funds 3,532
$311-78 49
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Remaining notes payable debt service payments will be made from unrestricted revenues of the Sewer fund. Annual debt service requirements to maturity are as follows:
Fiscal Year 2012 2013 2014 2015 2016 2017-2021 Total Fiscal Year 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 2032 Total Principal
$ 692 705 718 731 745 2,979
$6.570 Principal
$ 807 838 871 905 940 5,277 6,386 7,727 857
$24.6708 Sewer Fund Interest
$125 112 99 86 72 150
$644 Public Parking Fund Interest
$ 940 909 876 842 807 3,457 2,348 1,007 17
$11.203 Total
$ 817 817 817 817 817 3,129
$7214 Total
$ 1,747 1,747 1,747 1,747 1,747 8,734 8,734 8,734 874
$35811 Principal Outstanding Current Year Refundings:
On April 28, 2011, $56,450 of Electric Refunding/Revenue Series A Bonds were sold with an all-in true interest cost of 3.89% to refund $56,450 of previously outstanding 2008 Electric Refunding/Revenue Series B Bonds.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $193.
The difference is being charged to operations using the proportional method.
On May 26, 2011, $59,000 of Water Refunding/Revenue Series A Bonds were sold with an all-in true interest cost of 3.33% to refund $59,000 of previously outstanding 2008 Water Refunding/Revenue Bonds.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $434. The difference is being charged to operations using the proportional method.
Capital Leases:
The City leases various equipment through capital leasing arrangements in the governmental and proprietary fund types. These activities are recorded for both governmental and business-type activities in the government-wide financial statements. The assets and related obligations under leases in governmental funds are not recorded in the fund statements. For proprietary funds, the assets and their related liabilities are reported directly in the fund.
Amortization applicable to proprietary assets acquired through capital lease arrangements is included with depreciation for financial statement presentation. The assets acquired through capital leases are as follows:
Contracts - Enterprise Funds:
Water stock acquisition rights payable on demand to various water companies
$947 Commercial Loan:
The City has a $20,000 commercial loan with City National Bank, which is being used to purchase, rehabilitate and resell foreclosed homes. As of June 30, 2011, the City had borrowed $1,100 and had $18,900 available for future borrowing. The interest rate is based on "prime" less 75 basis points, which was 2.5% as of June 30, 2011. Interest is paid monthly. Principal is due in full on July 1, 2012.
Asset Buildings and improvements Equipment Subtotal Less: Accumulated depreciation Total Governmental Activities
$1,103 5,595 6,698 (1.789)
Business-Type Activities 2.763 2,763 (579) 50
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
The future minimum lease obligations as of June 30, 2011 were as follows:
Years Endinq June 30, 2012 2013 2014 2015 2016 Thereafter Copiers Total Minimum lease payments Less: Amount representing interest (rates ranging from 2.5% to 9%)
Total capital lease payable Governmental Activities
$1,568 1,425 1,190 1,098 1,099 744 319 7,443 (773)
$6.670 Business-type Activities
$ 442 442 442 428 65 Description of Pledged Revenue Tax increment:
Non-Housing Housing Electric revenues Water revenues Sewer revenues Annual Amount of Pledged Revenue (net of expenses, where required)
$39,165 6,997 106,299 49,108 10,197 Annual Debt Service Payments (of all debt secured by this revenue)
$15,372 2,771 48,116 14,063 817 Debt Service Coverage Ratio for FYE 6/30/11 2.55 2.53 2.21 3.49 12.48 29 1,848 (128)
$17-20 The following are legally required debt service cash reserves. These amounts, at a minimum, are held by the City or fiscal agents at June 30, 2011:
General Iona-term obliaations:
There are also a number of limitations and restrictions contained in Assessment Bond indentures. The City believes they are in compliance with all significant limitations and restrictions.
Defeasance of Debt:
In prior years, the City defeased certain bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old debt issues. Accordingly, the trust account assets and liability for the defeased debt issues are not included in the City's financial statements.
At June 30, 2011, the following amounts are considered defeased:
Redevelopment Agency Certificates of Participation Total Enterprise funds:
Electric Water Sewer Total
$ 7,034 13,765
$20-.M9
$22,237 5,684 204142
$48O063 2001 Electric Revenue Bonds 2001 Water Revenue Bonds 1993 Sewer Revenue Bonds
$17,600 14,995 9,265 The City and its component units have a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table on the following page. The debt service coverage ratios also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment.
Landfill Capping:
State and Federal laws and regulations require the City to place a final cover on all active landfills when closed and to perform certain maintenance and monitoring functions at the landfill site for 30 years after closure. To comply with these laws and regulations, the City is funding the costs of closure and "final capping" of the Tequesquite landfill located in the City. This area, comprised of approximately 120 acres, operated as a "Class II Sanitary Landfill" until its closure in 1985.
During its operation, the landfill did not accept hazardous waste and no clean up and abatement or cease and desist orders have been issued to the City. The capacity used at June 30, 2011 was 100%.
51
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
The estimated costs as determined by an independent consultant and updated by the City's Engineering Department are associated with flood control upgrades, remediation of possible ground water contamination and control of methane gas. All potential costs have been recognized in the financial statements. There is the potential for these estimates to change due to inflation, deflation, technology, or change in laws or regulations. To fund the cost, the City imposed a landfill capping surcharge on customers effective August 1, 1988.
The minimum unamortized estimated cost is recorded as a deferred charge in the accompanying financial statements of the Refuse fund and is being amortized on a straight-line basis over the remaining post closure period, currently 22 years.
- 7. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
Property insurance coverage has a limit of
$1,000,000, with a deductible of $50.
Earthquake and flood insurance coverage has a limit of $25,000, with a deductible of 5% for earthquake and
$100 for flood.
Workers' compensation insurance coverage has a limit of
$25,000, with a self-insured retention of $3,000 per occurrence.
The City carries commercial insurance in the amount of $20,000 for general and auto liability claims greater than $3,000. There were no claims settled in the last three fiscal years that exceed insurance coverage. Internal service funds have been established to account for and finance the uninsured risks of loss.
All funds of the City participate in the Risk Management program and make payments to the Internal Service Funds based on actuarial estimates of the amounts needed to fund prior and current year claims and incidents that have been incurred but not reported. Interfund premiums are accounted for as quasi - external transactions and are therefore recorded as revenues of the Internal Service funds in the fund financial statements.
Changes in the self-insurance trust fund's claims liability amounts are:
- 8. Other Long-Term Obligations Assessment Districts Bonds (Not obligations of the City)
As of June 30, 2011, the City has several series of Assessment District Bonds outstanding in the amount of $53,667.
Bonds issued for improvements in certain special assessment districts, in accordance with the provisions of the Municipal Improvements Acts, are liabilities of the property owners and are secured by liens against the assessed property. The City Treasurer acts as an agent for the property owners in collecting the assessments, forwarding the collections to bondholders and initiating foreclosure proceedings, if applicable. Since the debt does not constitute an obligation of the City, it is not reflected as a long-term obligation of the City and is not reflected in the accompanying basic financial statements.
Conduit Debt Obligations Mortgage Revenue Bonds outstanding of $8,610 and Industrial Development Revenue Bonds of $11,275 are not included in the accompanying financial statements. These bonds are special obligations of third parties and payable solely from and secured by a pledge of the receipts received from the acquired mortgage loans and certain other reserve funds and related monies.
The bonds are not payable from any other revenues or assets of the City or Redevelopment Agency. Neither the faith and credit nor the taxing power of the City, the Redevelopment Agency, the State of California or any political subdivision thereof is pledged to the payment of the principal and interest on the bonds.
- 9. Derivative Instruments Interest Rate Swaps The City has five cash flow hedging derivative instruments, which are pay-fixed swaps. These swaps were employed as a hedge against debt that was refunded in 2008 and 2011. At the time of the refunding, hedge accounting ceased to be applied. The balance of the deferral account for each swap is included in the net carrying amount of the new bonds. The swaps were also employed as a hedge against the new debt. Hedge accounting was applied to that portion of the hedging relationship, which was determined to be effective.
Unpaid Claims, June 30, 2009 Incurred claims (including IBNR's)
Claim payments and adjustments Unpaid Claims, June 30, 2010 Incurred claims (including IBNR's)
Claim payments and adjustments Unpaid Claims, June 30, 2011
$24,958 11,047 (10.464) 25,541 10,576 (9.502) 52
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 f
A ;
fk A
For the Yar endedJune 30.2011
,a, ItU itou QVAU[=ZcaV V-0 LIIJOO J0 Below is a summary of the derivative activity for the year ended June 30, 2011:
As of June 30, 2011 rates were as follows:
Fair Value Notional as of Amount 6130/11 Change in Fair Value for Fiscal Year Governmental Activities 2008 Renaissance Certificates of Participation Business-Type Activities 2008 Electric Refunding/Revenue Bonds Series A 2008 Electric Refunding/Revenue Bonds Series C 2011 Electric Refunding/Revenue Bonds Series A 2011 Water Refunding/Revenue Bonds Series A 128,300 (14,822) 3,831 84,515 57,325 56,450 59,000 (7,028)
(5,108)
(5,080)
(5,448) 1,719 1,569 1,569 1,682 Interest rate swap:
Fixed payment to counterparty Variable payment from counterparty Net interest rate swap payments Variable-rate bond coupon payments Synthetic interest rate on bonds Terms Fixed 62.68 LIBOR
+ 12 bps Objective:
In order to lower borrowing costs as compared to fixed-rate bonds, the City entered into interest rate swap agreements in connection with its $141,840 2008 Electric Revenue Bonds (Series A and C), $56,450 2011 Electric Revenue Bonds and $59,000 2011 Water Revenue Bonds. Also, in 2008, the City entered into an additional interest rate swap agreement in connection with its $128,300 2008 Certificates of Participation.
Terms: Per the existing swap agreements, the City pays a counterparty a fixed payment and receives a variable payment computed as 62.68% of the London Interbank Offering Rate ("LIBOR") one month index plus 12 basis points for the Electric and Water swaps. For the COP swap, the City again pays a fixed payment and receives a variable payment computed as 63.00%
of the LIBOR one month index plus 7 basis points. The swaps have notional amounts equal to the principal amounts stated above. The notional value of the swaps and the principal amounts of the associated debt decline by $975 to $7,200 until the debt is completely retired in fiscal year 2037.
The bonds and the related swap agreements for the 2008A Electric Revenue Bonds mature on October 1, 2029, 2008C Electric and 2011A Electric and 2011A Water Revenue/Refunding Bonds mature on October 1, 2035. The 2008 Certificates of Participation mature on March 1, 2037.
2011 Water Refunding/
Revenue Bonds Series A Rates 3.20000%
(0.24207%)
2.95793%
0.22550% 183Aa%
2008 Electric Refunding/
Revenue Bonds Series C Rates 3.20400%
(0.59206%)
2.61194%
0.58498%
_139692%
COP 2008 Bonds Rates 3.36200%
(0.57662%)
2.78538%
0.62476%
34_101A%
2011 Electric Refunding/
Revenue Bonds Series A Rates 3.20100%
(0.24534%)
2.95566%
0.14349%
3.OLS915%
2008 Electric Refunding/
Revenue Bonds Series A Rates 3.11100%
(0.58955%)
2.52145%
0.58891%
_3M_0.36%
Interest rate swap:
Fixed payment to counterparty Variable payment from counterparty Net interest rate swap payments Variable-rate bond coupon payments Synthetic interest rate on bonds Interest rate swap:
Fixed payment to counterparty Variable payment from counterparty Net interest rate swap payments Variable-rate bond coupon payments Synthetic interest rate on bonds Terms Fixed 62.68 LIBOR
+ 12 bps Terms Fixed 63.00 LIBOR
+ 7 bps 53
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Fair Value: As of June 30, 2011, in connection with all swap arrangements, the transactions had a total negative fair value of <$37,486>. Because the coupons on the City's variable-rate bonds adjust to changing interest rates, the bonds do not have a corresponding fair value decrease. The fair value was developed by a pricing service using the zero-coupon method.
This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement of the swap.
Credit risk: As of June 30, 2011, the City was not exposed to credit risk because the swap had a negative fair value. The swap counterparties, Bank of America, J.P. Morgan Chase & Co. and Merrill Lynch were rated A+, A+
and A respectively by Standard & Poor's. To mitigate the potential for credit risk, the swap agreements require the fair value of the swap to be collateralized by the counterparty with U.S. Government securities if the counterparties' rating decreases to negotiated trigger points.
Collateral would be posted with a third-party custodian. At June 30, 2011, there is no requirement for collateral posting for any of the outstanding swaps.
Basis risk: As noted above, the swaps expose the City to basis risk should the relationship between LIBOR and the variable interest rate, changing the synthetic rate on the bonds. If a change occurs that results in the rates' moving to convergence, the expected cost savings may not be realized.
Termination risk:
The derivative contract uses the International Swap Dealers Association Master Agreement, which includes standard termination events, such as failure to pay and bankruptcy. The Schedule to the Master Agreement includes an "additional termination event."
That is, a swap may be terminated by the City if either counterparty's credit quality falls below "BBB-" as issued by Standard and Poor's. The City or the counterparty may terminate a swap if the other party fails to perform under the terms of the contract.
If a swap is terminated, the variable-rate bond would no longer carry a synthetic interest rate. Also, if at the time of termination a swap has a negative fair value, the City would be liable to the counterparty for a payment equal to the swap's fair value.
Swap payments and associated debt: As of June 30, 2011, the debt service requirements of the variable-rate debt and net swap payments assuming current interest rates remain the same, for their term are summarized in the following table. As rates vary, variable-rate bond interest payments and net swap payments will vary.
Variable-Rate Bonds Fiscal Year Ending June 30 2012 2013 2014 2015 2016 2017-2021 2022-2026 2027-2031 2032-2036 2037 Total Principal
$ 6,450 6,675 6,900 8,975 16,700 68,850 76,300 85,415 98,350 7,200
$381,815 Interest Rate Interest Swaps, Net
$1,825
$ 10,511 2,688 17,165 2,656 16,978 2,623 16,784 2,581 16,535 12,520 80,400 10,820 71,045 8,497 58,921 5,585 43,860 45 201
$49,840
$332,400 Total
$ 18,786 26,528 26,534 28,382 35,816 161,770 158,165 152,833 147,795 7,446
$764,055
- 10. Economic Contingency A portion of unassigned fund balance within the General Fund is set aside for future economic contingencies. The amount that has been set aside is equal to approximately 15% of General Fund expenditures.
- 11. Interfund Assets, Liabilities and Transfers Due From/To Other Funds:
These balances resulted from expenditures being incurred prior to receipt of the related revenue source.
The following table shows amounts receivable/payable between funds within the City at June 30, 2011:
Receivable Fund General Payable Fund Nonmajor Governmental Funds Capital Outlay Fund Nonmajor Enterprise Funds Amount
$1,851 30,124 5
31,980 43195 Electric Total Central Stores *
- Internal service fund 54
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Advances To/From Other Funds: These balances consist of advances used to fund capital projects in advance of related financing/assessments and for other long-term borrowing purposes.
The following table shows amounts advanced from funds within the City to other funds within the City at June 30, 2011:
Transfers In/Out: Transfers are used to (1) move revenues to the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, (3) record the difference between the sales price and original carrying value of capital assets transferred between funds, (4) transfer properties to the General Fund to be held as security for advances owed by the Redevelopment Capital Project Fund, (5) use unrestricted revenues collected in the General fund to finance various programs accounted for in the other funds in accordance with budgetary operations.
The following table shows amounts transferred to/from funds within the City as of June 30, 2011:
Transfer In Fund Transfer Out Fund Amount Receivable Fund General Payable Fund Electric Redevelopment Capital Projects Water Sewer Nonmajor Governmental Funds Nonmajor Enterprise Funds Self-Insurance Trust
- Central Stores
- Central Garage
- COPS Debt Service Fund Nonmajor Governmental Redevelopment Capital Projects Redevelopment Capital Projects Amount
$12,381 704 5,327 3,408 578 2,290 223 234 1,055 26,200 7,410 20,571 1,524 435 3,538 6,478 11,975 General Redevelopment Debt Service COPS Debt Service Fund Electric Water Redevelopment Capital Project Nonmajor Governmental Funds Redevelopment Capital Project Nonmajor Governmental Funds Nonmajor Enterprise Funds General Fund Redevelopment Capital Project Redevelopment Debt Service Nonmajor Governmental Funds Nonmajor Enterprise Funds General Fund Redevelopment Debt Service Nonmajor Governmental Funds General Fund Redevelopment Capital Project Nonmajor Governmental Funds
$33,070 5,847 78,896 3 535 121,348 32,041 3,176 152 35,369 7,222 210 245 3,460 840 11,977 108 28,246 1,200 29,554 2,209 1,200 12,974 16,383 Self-Insurance Trust
- Nonmajor Enterprise Funds General Nonmajor Governmental Funds Redevelopment Capital Projects Sewer Electric Redevelopment Capital Projects Redevelopment Capital Projects 18,439 Redevelopment Capital Projects Nonmajor Governmental Funds Total 55
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011
- SI itju
- t O*Ij AOV I
IIIUO 1011 IVU" Q ýAUI VQQV VUQC" Q1 Electric Water Redevelopment Capital Project1 Electric 17,11II4
$237,276 Total 1 The Electric Fund transferred capital assets with an original carrying value of $27 to the Redevelopment Capital Projects Fund for $5,558.
The difference in interfund transfers at the fund level is due to the difference in measurement focus and basis of accounting between governmental funds and proprietary funds.
- 12. Deficit Fund Balances/Net Assets Deficit net assets exist in the Self-Insurance Internal Service Trust Fund
($13,554). The deficit in this fund will be primarily reduced based on a rate increase implemented in the subsequent fiscal year. Management's analysis shows that continuing cost control together with the rate increase will eliminate these deficits over the next few years.
- 13. Litigation The City continues to participate in key FERC dockets impacting the City's Electric Utility, such as the California Independent System Operator's (ISO)
Market Redesign and Technology Upgrade (MRTU).
The Electric and Water Utilities are defendants in various lawsuits arising in the normal course of business. Present lawsuits and other claims against the Electric and Water Utilities are incidental to the ordinary course of operations and are largely covered by the City's self-insurance program. In the opinion of management and the City Attorney, such claims and litigation will not have a materially adverse effect upon the financial position or results of operation of the City.
The Water Utility is also a plaintiff in a lawsuit against the manufacturers and distributors of methyl tertiary-butyl ether (MTBE) and its by-products, and of fuel containing these chemicals, arising out of the threat to the Water Utility wells of contamination with those chemicals from leaking underground storage tanks.
The defendants removed this lawsuit to federal court and then transferred the case to the Judicial Panel on Multidistrict Litigation, New York, where it was consolidated with all other pending MTBE water contamination litigation cases in the country. Although the City has tentatively settled with a number of the defendants, the settlement has not been approved by the court and no trial date for the remainder of the case.
- 14. City Employees Retirement Plan (A) Plan Description. The City of Riverside contributes to the California Public Employees Retirement System (CaIPERS), an agent multiple employer public employee defined benefit pension plan. CaIPERS 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 the State of California. PERS issues a publicly available financial report that includes financial statements and required supplementary information for the cost sharing plans that are administered by PERS. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of CalPERS annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814.
(B) Funding Policy. For each of the fiscal years shown on the following page, the City has contributed at the actuarially determined rate provided by PERS' actuaries. Participants are required to contribute 8%
(9% for safety employees) of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The contribution requirements of plan members and the City are established and may be amended by CalPERS.
(C) Annual Pension Cost. The required contribution was determined as part of the June 30, 2008 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected salary increases of 3.25% per year compounded annually, attributable to inflation, and (c) 3.0%
expected long term inflation. The actuarial value of CalPERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments (smoothed market value). All changes in the unfunded actuarial accrued liability due to plan amendments, changes in actuarial assumptions, or changes in actuarial methodology are amortized separately as a level percentage of pay over a closed 20-year period. All gains or losses are tracked and amortized over a rolling 30-year period with the exception of special gains and losses in fiscal years 2008-2009, 2009-2010 and 2010-2011. Each of these years' gains or losses has been isolated and amortized over fixed and declining 30 year periods (as opposed to the current rolling 30 year amortization).
56
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Three-year trend information for CalPERS:
- 15. Other Post-Employment Benefits Fiscal Year June 30 2009 2009 2010 2010 2011 2011 Plan Misc Safety Misc Safety Misc Safety Annual Pension Cost (APC)
$14,735 12,543 16,463 13,949 16,888 14,956
% of APC Contributed 94.7%
91.0%
93.8%
89.0%
92.4%
86.7%
Net Pension Obligation (Asset)
(57,548)
(85,909)
(56,529)
(84,369)
(55,253)
(82,379)
A total of $137,632 of net pension assets is included as a deferred charge in the Government-wide Statement of Net Assets. The deferred charge relating to the net pension assets is amortized in accordance with the method used by CalPERS for calculating actuarial gains and losses over a 19-year period.
Determination of Net Pension Asset as of June 30, 2011:
Misc Safety Annual required contribution Interest on net pension asset Adjustment to annual required contribution Annual pension cost Less contributions made Decrease in net pension asset Net pension asset, beginning of year Net pension asset, end of year Schedule of funding for CalPERS:
$ 15,612 (4,381) 5,657 16,888 (15.612) 1,276 (56,529)
Funded C
Ratio 12,966 (6,539) 8,529 14,956 (12,966) 1,990 (84,369)
The City provides healthcare benefits to retirees in the form of an implied rate subsidy. Retirees and active employees are insured together as a group, thus creating a lower rate for retirees than if they were insured separately.
Although the retirees are solely responsible for the cost of their health insurance benefits through this plan, the retirees are receive the benefit of a lower rate.
The difference between these amounts is the implied rate subsidy, which is considered an other post-employment benefit (OPEB) under GASB 45.
Retiree coverage terminates either when the retiree becomes covered under another employer health plan, or when the retiree reaches Medicare eligibility age, which is currently age 65. Spousal coverage is available until the retiree becomes covered under another employer health plan, attains Medicare eligibility age, or dies. However, the retiree benefit continues to the surviving spouse if the retiree elects the CalPERS survivor annuity.
The contribution requirements are established by the City Council. The City is not required by law or contractual agreement to provide funding other than the pay-as-you-go amount necessary to provide current benefits to eligible retirees and beneficiaries.
The City's annual OPEB cost (expense) is reported based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liability (or funding excess)
(UAAL) over a period not to exceed thirty years. The ARC for the year ended June 30, 2011 was $5,617, which consisted of normal cost of $2,852 and UAAL amortization of $2,765. The ARC as a percentage of payroll was 3%
for the year ended June 30, 2011.
As of June 30, 2009, the most recent actuarial valuation date, the OPEB plan was 0.0% funded.
The actuarial accrued liability for benefits was $54.9 million, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $54.9 million.
Actuarial Valuation Plan Date Misc.
6/30/08 Misc.
6/30/09 Misc.
6/30/10*
Entry Age Normal Actuarial Accrued Liability (AAL)
$828,351 921,349 952,499 608,192 660,742 685,213 Actuarial Value of Assets
$779,481 810,929 846,368 570,661 595,018 621,107 Unfunded/
(Overfunded)
Actuarial Accrued Liability (UAAL)
$ 48,870 110,420 106,131 Annual overed Payroll UAAL as a % of Covered Payroll 44.1 100.1 99.6 94.1
$110,870 88.0 110,318 88.9 106,590 93.8 63,966 90.1 63,924 90.6 61,778 Safety Safety Safety 6/30/08 6/30/09 6/30/10*
37,531 65,724 64,106 58.7 102.8 103.8
- Information presented is for the most recent valuation date available.
57
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands)
Determination of the Net OPEB Obligation as of June 30, 2011:
Annual required contribution Interest on net OPEB obligation Amortization of net OPEB obligation Annual benefit pension cost Less contributions made Increase in net OPEB obligation Net OPEB liability, beginning of year Net OPEB liability, end of year
$ 5,617 443 (746) 5,314 (1,734) 3,580 9$853
$13-433
- 16. Commitments and Contingencies A. Long-Term Electric Utility Commitments Intermountain Power Agency Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The method used by the actuary was the entry age normal cost method. The actuarial assumptions included (a) discount rate of 4.50%,
(b) 3% inflation, (c) projected salary increases of 3.25% annually and (d) healthcare cost trend rates ranging from 4.5% to 9.4%.
Projections of benefits are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the city and the plan members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
Three-year trend information:
The Electric Utility has entered into a power purchase contract with Intermountain Power Agency (IPA) for the delivery of electric power. The Electric Utility's share of IPA power is equal to 7.6 percent, or approximately 137.1 MW, of the net generation output of IPA's 1,800 MW coal-fueled generating station located in central Utah. The contract expires in 2027 and the debt fully matures in 2024.
The contract constitutes an obligation of the Electric Utility to make payments solely from operating revenues. The power purchase contract requires the Electric Utility to pay certain minimum charges that are based on debt service requirements. Such payments are considered a cost of production.
Southern California Public Power Authority On November 1, 1980, the City of Riverside joined with the Imperial Irrigation District and the cities of Los Angeles, Anaheim, Vernon, Azusa, Banning, Colton, Burbank, Glendale and Pasadena to create the Southern California Public Power Authority (SCPPA) by a Joint Powers Agreement under the laws of the State of California. As of July 2001, the City of Cerritos was admitted as a member. The primary purpose of SCPPA is to plan, finance, develop, acquire, construct, operate and maintain projects for the generation and transmission of electric energy for sale to its participants. SCPPA is governed by a Board of Directors, which consists of one representative for each of the members. During the 2010-11 and 2009-10 fiscal years, the Electric Utility paid approximately $18,725 and $15,151, respectively, to SCPPA under various take-or-pay contracts. These payments are reflected as a component of production and purchased power or transmission expense in the financial statements.
The projects and the Electric Utility's proportionate share of SCPPA's obligations, including final maturities and contract expirations are as follows:
Fiscal Year June 30, 2009 2010 2011 Fiscal Year June 30, 2009 2010 2011 Actual ARC Contributions
$4,386 5,291 5,617
$1,290 1,440 1,734
% of ARC Contributed 29%
27%
31%
Annual
% of OPEB Cost OPEB Cost Contributed
$4,386 5,101 5,314 29%
28%
33%
Net OPEB Obligation 6,192 9,853 13,433 Project Palo Verde Nuclear Generating Station (PV)
Southern Transmission System (STS)
Hoover Dam Uprating (Hoover)
Mead - Phoenix Transmission (MPP)
Mead - Adelanto Transmission (MAT)
Percent Share 5.40%
10.20%
31.90%
4.00%
13.50%
Entitlement 12.3MW 244.0MW 30.0MW 18.0MW 118.0MW 58
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 Terms of Take or Pay Commitments t~~~ll ~ I'.JI Itk AAJ O
C ILIIJO Il IC21 I IVU" a WAU1 Vaaý VU00" 01 payment schedule as debt service and vary each year. The costs incurred for the year ended June 30, 2011 and 2010, are as follows (in thousands):
As part of the take-or-pay commitments with IPA and SCPPA, the Electric Utility has agreed to pay its share of current and long-term obligations.
Management intends to pay these obligations from operating revenues received during the year that payment is due. A long-term obligation has not been recorded on the accompanying financial statements for these commitments. Take-or-pay commitments terminate upon the later of contract expiration or final maturity of outstanding bonds for each project.
Interest rates on the outstanding debt associated with the take-or-pay obligations range from variable rates from 0.03 percent to 3.00 percent and fixed rates from 1.0 percent to 6.38 percent. The schedule below details the amount of principal and interest that is due and payable by the Electric Utility as part of the take-or-pay contract for each project in the fiscal year indicated.
SCPPA Fiscal Year 2011 2010 IPA
$29,530
$27,458 Pv
$2,792
$2,991 STS
$2,460
$1,779 MAT
$ 298
$ 265 MPP
$ 43
$ 40 Hoover
$ 100
$ 68 Total
$35,223
$32,601 Fiscal Year 2011 2012 2013 2014 2015 Thereafter Total IPA PV STS Hoover MPP MAT Total
$22,118 20,017 22,712 21,154 23,942 118,538 W228"48 666 669 672 676 680 1,369
$ 4,680 9,478 8,544 8,565 8,595 81,235 706 704 705 703 702 1,399 318 318 318 266 273 1,287
$ 3,090 3,087 3,092 3,064 3,061 14,528 2 922
$ 31,578 34,273 36,043 34,428 37,253 218,356 These costs are included in production and purchased power or transmission expense on the Statements of Revenues, Expenses and Changes in Equity.
B. Other Commitments Power Purchase Agreements:
The Electric Utility executed two firm power purchase agreements with Bonneville Power Administration (BPA). The first agreement with BPA was for the purchase of firm capacity (23 megawatts in the summer months and 16 megawatts in the winter months) beginning February 1, 1991, for a period of 20 years. This agreement terminated on March 3, 2011. The second BPA agreement is for the purchase of capacity (50 megawatts during the summer months and 13 megawatts during the winter months) beginning April 30, 1996, for 20 years. Effective May 1, 1998, these summer and winter capacity amounts increased to 60 megawatts and 15 megawatts, respectively, for the remainder of the second agreement.
The Electric Utility had an agreement with Deseret for five megawatts of capacity and associated energy from January 1, 1992, through December 31, 1994, then increasing to 52 megawatts of capacity and associated energy through December 31, 2009. A notice of termination of the power purchase agreement was provided to Deseret effective March 31, 1998, resulting in litigation which was settled on July 31, 1999. Under the terms of the settlement agreement, the notice of termination was rescinded and the power purchase agreement was amended to reflect substantial price reductions after fiscal year 2002 through the term of the agreement in 2009.
In exchange, Riverside Public Utilities paid Deseret $25,000 from Electric fund reserves, which is reflected on the balance sheets as deferred purchased power. On July 1, 2002, the Electric Utility began to amortize the
$25,000, and will continue to amortize the remaining balance over the term of the agreement using the straight-line method.
On June 6, 2003 and July 8, 2003, the Public Utilities Board and the City Council respectively, adopted a RPS to increase procurement of renewable resources to reach a target of 20% of the Utility's energy by 2015. On March Take-or-pay commitments expire upon final maturity of outstanding bonds for each project. Final fiscal year maturities are as follows:
Project Intermountain Power Project Palo Verde Nuclear Generating System Southern Transmission System Hoover Dam Upgrading Mead-Phoenix Transmission Mead-Adelanto Transmission Final Maturity Date 2024 2017 2027 2017 2020 2020 In addition to debt service, Riverside's entitlements require the payment of fuel costs, operating and maintenance, administrative and general and other miscellaneous costs associated with the generation and transmission facilities discussed above. These costs do not have a similar structured 59
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) 16, 2007, the Public Utilities Board approved a new RPS, increasing the targets to 20% and 25% by 2010 and 2015, respectively. On May 4, 2007, the Public Utilities added an additional target of 33% by 2020.
The contracts in the following table were executed as part of compliance with this standard. The Utility also has an agreement with Bonneville Power Administration for the purchase of energy credits that add to the total renewable portfolio.
Long-term renewable power purchase agreements:
Supplier Wintec Salton Sea Power Total Type Wind Geothermal Maximum Contract 8.0MW 46.0MW 54.0MW Contract Expiration 11/10/2021 5/31/2020 Estimated Annual Cost for 2011 198 21,139 S21.337 All contracts are contingent on energy production from specific related generating facilities.
Riverside has no commitment to pay any amounts except for energy produced on a monthly basis from these facilities.
On August 23, 2005, the City Council approved an amendment to the Power Purchase Agreement between Salton Sea and the City. The agreement increases the amount of renewable energy available to the City from the current 20 MW to 46 MW effective June 1, 2009 through May 31, 2020, at the same price under the current contract until 2013, with escalation thereafter based on an inflationary type index. Similar to other renewable power purchase agreements, the City is only obligated for purchases of energy delivered to the City.
On November 10, 2006, the City of Riverside entered into a second Renewable Power Purchase Agreement with Wintec Energy, Ltd for wind generation capacity of up to 8 MW. The contract term is for 15 years, with additional capacity available upon completion of Wintec's Facility II Wind Turbine Project. The developer is encountering challenges in finding suitable wind turbines to complete the project and the project is expected to continue to be delayed.
On June 19, 2008, and December 12, 2008, respectively the City of Riverside entered into two separate Renewable Power Purchase Agreements with Shoshone Renaissance, LLC (Renaissance). The contract term for each agreement is 30 years, and provides a combined 96 megawatts of geothermal energy. Like the majority of renewable projects, Renaissance continues to experience difficulty securing financing due to the meltdown in the financial markets. In November 2010, the City entered into the Amended and Restated PPA I and terminated PPA II. The Amended and Restated PPA I reduced the geothermal power deliveries from 64 MW to 46 MW with the new commercial operation date extended to April 1, 2014.
Measurable milestone dates and enforceable agreement termination "off-ramps" for the City were built into this agreement to allow the City the unilateral ability to terminate the Amended and Restated PPA I. On February 15, 2011 Shoshone Renaissance failed the first milestone as established in the Amended and Restated PPA I. The City notified Shoshone Renaissance in March 2011 of the City's intent to terminate the Amended and Restated PPA I by April 1, 2011 and provided an opportunity to Shoshone Renaissance to cure its failure to reach the first milestone. However, Shoshone Renaissance failed to provide evidence to cure its default by April 1, 2011. Thus, the City provided the final termination notice to Shoshone Renaissance and the Amended and Restated PPA I was terminated on April 1,2011.
Construction Commitments:
As of June 30, 2011, the Electric Utility had major commitments of approximately $19,290, with respect to unfinished capital projects, of which
$17,248 is expected to be funded by bonds and $2,042 funded by rates.
As of June 30, 2011, the Water Utility had major commitments of approximately $15,709 with respect to unfinished capital projects which is expected to be funded by bonds.
C. Jointly-Owned Utility Project Pursuant to a settlement agreement with SCE, dated August 4, 1972, the City was granted the right to acquire a 1.79 percent ownership interest in San Onofre Nuclear Generating Station (SONGS), Units 2 and 3, equating to 19.2 MW and 19.3 MW respectively, of the available capacity. In the settlement agreement, SCE agreed to provide the necessary transmission service to deliver the output of SONGS to Riverside. SCE and the City entered into the SONGS Participation Agreement that sets forth the terms and conditions under which the City, through the Electric Utility, participates in the ownership and output of SONGS. Other participants in this project include SCE, 75.05 percent; San Diego Gas & Electric Company, 20.00 percent; and the City of Anaheim, 3.16 percent. Maintenance and operation of SONGS remain the responsibility of SCE, as operating agent for the City.
During 2006, the FERC, Nuclear Regulatory Commission and the California Public Utility Commission (CPUC) approved the transfer of Anaheim's shares 60
CITY OF RIVERSIDE NOTES TO BASIC FINANCIAL STATEMENTS For the year ended June 30, 2011 (amounts expressed in thousands) to SCE, and as a result, SCE's ownership was increased to 78.21 percent in SONGS units 2 and 3.
The original operating license for SONGS units 2 and 3 was set to expire in 2013; however, this was subsequently extended due to a construction recapture provision, and now expires February 16, 2022 and November 15, 2022 for Units 2 and 3 respectively. During fiscal year ended June 30, 2006, the City Council approved participation in SONGS through the extended operations date. It has been reported that SCE is pursuing a license extension from the Nuclear Regulatory Commission ("NRC") to continue operations through 2042, although the City has not approved its participation in the project through the extended term.
SCE, as operating agent, declared an "operating impairment" due to deterioration of the steam generators ("SGs"), which would have likely resulted in permanent shutdown of the plant in 2009-2010 timeframe. The estimated cost to replace the steam generators (SGs) is $680,000, of which approximately $12,200 would represent the City's share. Replacement of the SGs is expected to enable plant operations through at least 2022, and perhaps beyond if NRC approval is obtained. The City Council has approved participation in the replacement of the SGs. The SG replacement for SONGS Unit 2 was completed in April 2010 and the SG replacement for Unit 3 was completed in February 2011.
Due to the Fukushima nuclear power plant crisis in Japan early this year, NRC has instituted a comprehensive review of disaster preparedness of all nuclear power plants currently in operation in the U.S.
SONGS has participated and is continuing to participate in this comprehensive disaster preparedness assessment effort. The ultimate outcome of this assessment is currently undetermined.
There are no separate financial statements for the jointly-owned utility plant since each participant's interests in the utility plant and operating expenses are included in their respective financial statements. The Electric Utility's 1.79 percent share of the capitalized construction costs for SONGS totaled
$159,907 and $152,586 for fiscal years ended June 30, 2011 and 2010, respectively.
All acquisitions or construction of capital assets are depreciated through 2022, to include the construction recapture extension period.
The accumulated depreciation amounted to $133,260 and $126,837 for the fiscal years ended June 30, 2011 and 2010, respectively. The Electric Utility made provisions for future decommissioning costs of $1,581 for both fiscal years plus earnings on the Decommissioning Trust Fund of $2,836 and $2,898 for fiscal years June 30, 2011 and June 30, 2010, respectively. The Electric Utility's portion of current and long-term debt associated with SONGS is included in the accompanying financial statements.
- 17. State Assembly Bills lX 26 and 27 On June 29, 2011 Governor Brown signed Assembly Bills 1X 26 and 27 as part of the State's budget package.
Assembly Bill 1X 26 requires that California redevelopment agencies immediately suspend activities and only allows activity to meet existing obligations, preserve its assets and prepare for potential dissolution of the agency.
Assembly Bill 1X 27 provides a means for redevelopment agencies to continue to exist and operate via a Voluntary Alternative Redevelopment Program by adopting an ordinance agreeing to make certain payments to help alleviate the State budget crisis in fiscal year 2011-12 and annual payments each fiscal year thereafter.
The League of California Cities and the California Redevelopment Association (CRA) filed a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme Court to overturn Assembly Bills 1X 26 and 27 on the grounds that they violate the California Constitution.
On August 11, 2011, the California Supreme Court issued a stay of all of Assembly Bill 1X 27 and most of Assembly Bill 1X 26. The California Supreme Court stated in its order that "the briefing schedule is designed to facilitate oral argument as early as possible in 2011, and a decision before January 15, 2012."
On August 9, 2011, Ordinance No. 7138 was adopted, indicating that the agency will comply with the Voluntary Alternative Redevelopment Program in order to permit the continued existence and operation of the agency, in the event Assembly Bills 1X 26 and/or 27 are upheld as constitutional. The initial payment by the agency is estimated to be $19.6 million with one half due on January 15, 2012 and the other half due May 15, 2012.
Thereafter, an estimated $4.6M will be due annually. The semi-annual payments will be due on January 15 and May 15 of each year and would increase or decrease with changes in tax increment. Additionally, an increased amount would be due to schools if any new debt is incurred. Assembly Bill 1X 27 allows a one-year reprieve on the agency's obligation to contribute 20% of tax increment to the low-and-moderate-income housing fund so as to permit the agency to assemble sufficient funds to make its initial payments.
61
mE
-I 9zz-_
Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes.
Urban Areas Security Initiative (UASI) Fund - To account for UASI grants received from the U.S. Department of Homeland Security.
Special Gas Tax Fund - To account for the construction and maintenance of the road network system of the City. Financing is provided by the City's share of state gasoline taxes which state law requires to be used to maintain streets.
Air Quality Improvement Fund - To account for qualified air pollution reduction programs funded by the South Coast Air Quality Management District.
Housing and Community Development Fund -
To account for Federal grants received from the Department of Housing and Urban Development (HUD).
The grants are used for the development of a viable urban community by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes.
Redevelopment Agency Fund - To account for the portion of Redevelopment tax increment monies which California Redevelopment Law requires be set aside for the development of low and moderate income housing.
National Pollution Discharge Elimination System (NPDES) - To account for storm drain maintenance and inspection required for California storm water permits. Activities are funded by a special assessment district of Riverside County, California.
Neglected Property Abatement Fund - To account for revenues and expenditures associated with the neglected property abatement activities of the Code Enforcement Division of the Community Development Department.
Housing Authority Fund - To account for revenues and expenditures associated with housing activities for persons with low or moderate income.
Capital Projects Funds Capital Projects Funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds.
Special Capital Improvements Fund - To account for the acquisition, construction and installation of capital improvements and a Community Facilities District within the City.
Storm Drain Fund - To account for the acquisition, construction and installation of storm drains in the City.
Transportation Fund - To account for the construction and installation of street and highway improvements in accordance with Articles 3 and 8 of the Transportation Development Act of 1971 of the State of California.
Permanent Fund Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government's programs.
Library Special Fund - To account for the monies held in trust for the benefit of the Riverside City Public Library System.
City of Riverside Combining Balance Sheet Nonmajor Governmental Funds June 30, 2011 (amounts expressed in thousands)
Special Revenue Housing &
Urban Areas Security Air Quality Community Redevelopment Neglected Property Initiative Gas Tax Improvements Development Agency NPDES Storm Drain Abatement 13,050 610 68 11,469 192 Assets Cash and investments Cash and investments at fiscal agent Receivable (net of allowance for uncollectibles):
Interest Accounts Intergovernmental Notes Advances to other funds Land & improvements held for resale Total assets Liabilities and fund balances Liabilities:
Accounts payable Accrued payroll Retainage payable Deferred revenue Deposits Due to other funds Advance from other funds Total liabilities Fund balances Restricted for:
Housing and redevelopment Transportation and public works Total fund balances Total liabilities and fund balances 104 205 4
14 2,499 6,864 112 725 228 15,870 20,571 1,677 725 13,359 616 11,126 48,214 229 32 143 11 588 25 49 8,541 172 2
898 15,823 26 693 931 227 578 725 1,041 11 10,712 16,021 229 414 32,193 12,318 605 12,318 605 414 32,193 725 13,359 616 11,126 48,214 229 63
City of Riverside Combining Balance Sheet Nonmajor Governmental Funds June 30, 2011 (amounts expressed in thousands)
Permanent Fund Special Revenue Capital Projects Assets Cash and investments Cash and investments at fiscal agent Receivable (net of allowance for uncollectibles):
Interest Property taxes Accounts Intergovernmental Notes Advances to other funds Land & improvements held for resale Total assets Total Nonmajor Housing Special Capital Governmental Authority Total Improvement Storm Drain Transportation Total Library Special Funds 232 25,429 2,103 4,326 41 6,470
$1,625 33,524 192 2,399 2,399 2,591 8
235 22 32 54 289 14 277 277 291 3,657 103 103 3,760 22,734 22,734 20,571 20,571 11,853 13,530 13,530 12,093 86,362 4,801 4,358 144 9,303 1,625 97,290 12 960 24 365 389 1,349 25 25 947 158 158 1,105 24,364 1
115 116 24,480 10 36 36 1,851 1,851 578 3,538 3,538 4,116 22 28,761 3,720 366 115 4,201 32,962 Liabilities and fund balances Liabilities:
Accounts payable Accrued payroll Retainage payable Deferred revenue Deposits Due to other funds Advance from other funds Total liabilities Fund balances Nonspendable:
Permanent fund principal Restricted for:
Housing and redevelopment Transportation and public works Other purposes Total fund balances Total liabilities and fund balances 1,625 1,625 12,071 44,678 44,678 12,923 29 29 12,952 1,081 3,992 5,073 5,073 12,071 57,601 1,081 3,992 29 5,102 1,625 64,328 12,093 86,362 4,801 4,358 144 9,303 1,625 97,290 64
City of Riverside Combining Statement of Revenue, Expenditures, and Changes In Fund Balances Nonmajor Governmental Funds For the fiscal year ended June 30, 2011 (amounts expressed In thousands)
Special Revenue Urban Area Security initiative Housing &
Air Quality Community Redevelopment Gas Tax Improvement Development Agency NPDES Storm Drain Neglected Property Abatement Revenues Taxes Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Expenditures Current:
General government Public Safety Capital outlay Debt service:
Principal Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)
Transfers in Transfers out Proceeds from Issuance of long-term debt Sales of capital assets Total other financing sources (uses)
Net change in fund balances Fund balances - beginning Fund balances - ending 2,374 72 $
7,253 35 $
352 89 $
8,951 11,163 33 3,684 421 228 325 18 33 16 151 3,725 220 2,374 7,578 521 12,709 11,399 228 4,138 603 955 2,374 1,866 3,693 3,530 6,414 10,946 S-9,100 2,374 6,414 603 11,901 14,659 228 228 3,530 1,164 (82) 808 (3,260) 608 1,474 (14,676) 9,100 197 (3,905) 1,164 (82) 808 (7,165) 11,154 687 (394) 39,358 12,318 605 414 32,193 (3,530)
(3,530)
(2,922) 2,922 65
City of Riverside Combining Statement of Revenue, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Permanent Fund Special Revenue Capital Prolects Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Expenditures Current:
General government Public Safety Culture and recreation Capital outlay Debt service:
Principal Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)
Transfers in Transfers out Proceeds from Issuance of long-term debt Sales of capital assets Total other financing sources (uses)
Net change in fund balances Fund balances - beginning Fund balances - ending Total Nonmajor Housing Special Capital Library Governmental Authority Total Improvement Storm Drain Transportation Total Special Funds 11,163 11,163 852 88 940 940 18,930 39 39 18,969 33 33 3,684 3,684 649 649 34 426 94 94 52 572 4,096 89 4,185 34 38,981 852 182 39 1,073 141 40,195 12 1,624 6,966 2,374 22,905 244 3,656 100 892 344 137 7,310 2,374 137 27,581 128 4,676 9,100 9,100 1,636 41,345 3,900 992 128 5,020 137 46,502 (1,602)
(2,364)
(3,048)
(810)
(89)
(3,947) 4 (6,307) 14,909 16,383 16,383 (2,674)
(20,880)
(3,465)
(3,465)
(24,345) 9,100 9,100 (88) 109 109 12,147 4,712 (3,465)
(3,465) 1,247 10,545 2,348 (6,513)
(810)
(89)
(7,412) 4 (5,060) 1,526 55,253 7,594 4,802 118 12,514 1,621 69,388 12,071 57,601 1,081 3,992 29 5,102 1,625 64,328 66
City of Riverside Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Special Revenue Urban Area Security Initiative Variance Final to Final Budget Actual Budget Gas Tax Air Quality Improvement Final Budget Variance to Final Actual Budget Final Budget Actual Variance to Final Budget Revenues Taxes Intergovernmental Licenses and permits Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues Expenditures Current:
General government Culture and recreation Capital outlay Total expenditures 9,696 2,374 (7,322) 7,568 7,253 (315) 330 352 22 150 325 175 9,696 2,374 (7,322) 7,718 7,578 (140) 18 131 151 461 521 18 20 60 400 9,785 2,374 7,411 1,003 603 9,785 2,374 7,411 18,499 18,499 6,414 6,414 12,085 12,085 1,003 603 400 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)
Transfers in Transfers out Sale of capital assets Total other financing sources (89) 89 (10,781) 1,164 11,945 (542)
(82) 460 Net change in fund balances Fund balances (deficit), beginning Fund balances (deficit), ending (89)
(89) 89 89 (10,781) 11,154 373 1,164 11,154 12,318 11,945 11,945 (542)
(82) 687 687 145 605 460 460 (continued) 67
City of Riverside Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Housing & Community Development Variance Final to Final Budget Actual Budget Special Revenue Redevelopment Agency N
Variance Final to Final Final Budget Actual Budget Budget PDES Storm Drain Variance to Final Actual Budget Revenues Taxes Intergovernmental Licenses and permits Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues 7,692 8,951 1,259 9,586 11,163 1,577 (198) 215 1,594 25 390 8,107 33 3,725 12,709 8
3,335 4,602 214 5
9,805 16 220 11,399 399 228 (171)
(171) 399 228 Expenditures Current:
General government Culture and recreation Capital outlay Debt service Principal Total expenditures 959 25,562 955 10,946 4
33,119 14,616 8,426 1,866 3,693 31,253 4,733 434 228 206 9,100 9,100 26,521 11,901 14,620 50,645 14,659 35,986 434 228 206 (18,414) 808 19,222 (40,840)
(3,260) 37,580 (35) 35 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses)
Transfers in Transfers out Proceeds from issuance of long-term debt Sale of capital assets Total other financing sources (14,840)
-9,100 (5,740) 1,474 (14,676) 9,100 197 (3,905) 1,474 164 197 1,835 39,415 39,415 Net change in fund balances Fund balances (deficit), beginning Fund balances (deficit), ending (18,414)
(394)
(18,808) 808 (394) 414 19,222 19,222 (46,580)
(7,165) 39,358 39,358 (7,222) 32,193 (35)
(35) 35 35 (continued) 68
City of Riverside Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Special Revenue Capital Projects Neglected Property Abatement Variance Housing Authority Capital Outlay Redevelopment Final Budget to Final Final Actual Budget Budget Variance to Final Final Actual Budget Budget Variance to Final Actual Budget Final Budget Actual Revenues Taxes Intergovernmental Licenses end permits Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues 3,000 500 33 3,684 421 33 684 (79) 34 34 8,
-0$
37$
(
85,402 30,720 (54,682) 769 89 Variance to Final Budget (680) 1,636 3,383 4,339 35 175 2.100 87.712 315 450 1,911 33.396 280 275 (189)
(54,316) 809 2,445 23 3,406 1,601 5,940 3,500 4,138 638 34 34 Expenditures Current:
General government Culture and recreation Capital outlay Debt service Principal Interest Total expenditures 3,867 3,530 337 1,817 12 1,624 1,805 (1,624) 101,545 40,780 60,765 13,366 15.393 127,390 8,983 18,848 35,711 4,383 (3.455) 91.679 990 (990) 3,867 3,530 337 1,817 1,636 181 101,545 40,780 60,765 156,149 64,532 91,617 Excess (deficiency) of revenues over (under) expenditures (367) 608 975 (1,817)
(1,602) 215 (13,833)
(7,384) 6,449 (154.548)
(58,592)
Other financing sources (uses)
Transfers in Transfers out Proceeds from issuance of long-term debt Sale of capital assets Total other financing sources (3,530)
(3,530) 14,559 14,909 (1,200)
(2,674) 350 (1,474) 21,952 29,554 (117,365)
(117,905) 65,000 65,000 (3,657)
(30,413)
(27,008)
-(88)
(88)--
(3,530)
(3,530) 13,359 12,147 (1,212) 95,956 7,602 (540)
(3,657) 3.405 99,361 124,000 223,361 (continued)
Net change in fund balances Fund balances (deficit), beginning Fund balances (deficit), ending (367) 2,922 2,555 (2,922) 2,922 (2,555) 11,542 1,526 (2,555) 13,068 10,545 1,526 12,071 (997)
(13,833) 20,891 (997) 7,058 (7,384) 20,891 13,507 6,449 (184,961) 13,494 6.449 (171.467)
(85,600) 137,494 51,894 69
City of Riverside Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Nonmajor Governmental Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Capital Projects Special Capital Improvement Storm Drain Transportation Final Budget Variance to Final Final Actual Budget Budget Actual Variance to Final Final Budget Budget Variance to Final Actual Budget Revenues Taxes Intergovernmental Licenses and permits Charges for services Fines and forfeitures Special assessments Rental and investment income Miscellaneous Total revenues
$6 65 449 39 (410) 852 852 88 94 23 34 60 852 852 125 182 57 449 39 (410)
Expenditures Current:
General government Culture and recreation Capital outlay Debt service Principal Interest Total expenditures 549 7,861 244 3,656 305 4,205 100 3,732 100 892 2,840 539 128 411 8,410 3,900 4,510 3,832 992 2,840 539 128 411 Excess (deficiency) of revenues over (under) expenditures (8,410)
(3,048) 5,362 (3,707)
(810) 2,897 (90)
(89) 1 Other financing sources (uses)
Transfers in Transfers out Sale of capital assets Total other financing sources Net change in fund balances Fund balances (deficit), beginning Fund balances (deficit), ending (3,465)
(3,465)
(3,465)
(3,465)
(11,875) 7,594 (4,281)
(6,513) 7,594 1,081 5,362 5,362 (3,707) 4,802 1,095 (810) 4,802 3,992 2,897 2,897 (90) 118 28 (89) 118 29 1
70
Nonmajor Enterprise Funds Enterprise Funds are used to account for the operations that are financed and operated in a manner similar to private business enterprises. The City's intent is to demonstrate that the cost of services provided to the general public on a continuing basis is financed or recovered through user charges; or the City has decided that the periodic determination of net income is appropriate for accountability purposes.
Airport Fund - To account for the operations of the City's airport.
Refuse Fund - To account for the operations of the City's solid waste and sanitation program which provides for the collection and disposal of solid waste on a user charge basis to residents and businesses.
Transportation - To account for the operations of the City's Senior Citizens' and Handicapped Transportation System in accordance with Article 4 of the Transportation Development Act of 1971 (SB325) of the State of California. Federal Transit Administration Funds are also accounted for in this fund.
Public Parking - To account for the operations and construction of the City's public parking facilities.
City of Riverside Combining Statement of Net Assets Nonmajor Enterprise Funds June 30, 2011 (amounts expressed in thousands)
Assets Current assets:
Cash and investments Receivables (net of allowance for uncollectibles)
Interest Utility billed Utility unbilled Accounts Intergovernmental Restricted assets:
Cash and cash equivalents Cash and investments at fiscal agent Total current assets Non-current assets:
Deferred charges - other Capital assets:
Land Buildings Accumulated depreciation-buildings Improvements other than buildings Accumulated depreciation-improvements other than buildings Machinery and equipment Accumulated depreciation-machinery and equipment Construction in progress Total non-current assets:
Airport Refuse Transportation Public Parking Total 2
1,378 30 619 580 198 1,167 9
9 639 2,610 5,157 32 56 59 106 2,247 2,24715,547 108 5,052 1,824 18,304 238 9,988 2,114 (1,062) 18,032 (4,779) 412 (217) 1,077 25,803 9,014 624 175 71 619 580 369 698 2,247 15,547 25,288 10,051 13,701 16,015 (4,252) 23,994 (5,557) 17,735 (10,601) 11,563 72,649 97,937 (continued) 22 (9) 47 (4) 11,687 3,954 (7,303)
(2,080) 191 13,398 2,745 3,713 13,879 (3,181) 5,915 (774) 1,682 (1,001) 10,295 30,703 49,007 Total assets 25,911 18,450 4,569 71
City of Riverside Combining Statement of Net Assets Nonmajor Enterprise Funds June 30, 2011 (amounts expressed in thousands)
Liabilities Current liabilities:
Accounts payable Accrued payroll Unearned revenue Due to other funds Capital leases-current Notes-current Landfill capping-current Other payables Total current liabilities Airport Refuse Transportation Public Parking Total 111 49 692 592 21 118 1,656 692 87 807 5
7 46 211 200 419 1,903 192 82 1,994 1,668 Non-current liabilities:
Notes payables Capital leases Advances from other funds Landfill capping Total non-current liabilities 22 612 23,801 1,696 1,516 846 1,656 5
7 807 200 739 5,776 23,801 22 3,814 6,715 34,352 40,128 53,508 2,247 2,054 57,809 Total liabilities 233 233 444 25,565 (98) 25,467 1,273 6,715 7,988 9,891 4,384 2,247 1,928 8,559 634 25,497 2,628 27,165 Net Assets Invested in capital assets, net of related debt Restricted for landfill capping Unrestricted Total net assets 2,092 21,467 (151) 375 1,941 21,842 72
City of Riverside Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Operating revenues:
Charges for services Operating expenses:
Personnel services Contractual services Maintenance and operation General Materials and supplies Insurance Depreciation and amortization Total operating expenses Operating Income (loss)
Nonoperating revenues (expenses):
Operating grants Interest income Other Gain/loss on retirement of capital assets Interest expense and fiscal charges Total non-operating revenues Income before capital contributions and transfers Cash capital contributions Noncash capital contributions Transfers out Change in net assets Total net assets - beginning Total net assets - ending Airport Refuse Transportation Public Parking Total 1,342 19,134 344 5,205 26,025 718 4,360 1,917 1,077 8,072 59 3,825 18 1,142 5,044 276 5,471 447 472 6,666 237 3,660 313 102 4,312 366 793 173 8
1,340 29 105 46 86 266 619 1,795 561 866 3,841 2,304 20,009 3,475 3,753 29,541 (962)
(875)
(3,131) 1,452 (3,516) 117 85 200 2
2,159 2
74 2
15 664 2,159 102 1,055 4
(16)
(37)
(18)
(648)
(719) 101 250 2,219 31 2,601 (861)
(625)
(912) 1,483 (915) 714 714 10 10 (992)
(992)
(861)
(625)
(198) 501 (1,183) 26,328 9,184 2,139 21,341 58,992 25,467 8,559 1,941 21,842 57,809 73
City of Riverside Combining Statement of Cash Flows Nonmajor Enterprise Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Cash flows from operating activities:
Cash received from customers and users Cash paid to employees for services Cash paid to other suppliers of goods or services Other receipts Net cash provided (used) by operating activities Cash flows from noncapital financing activities:
Transfers out Operating grants Payments on interfund receivables Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities:
Purchase of capital assets Proceeds from the sale of capital assets Principal paid on long-term obligations Proceeds from on long-term obligations Interest paid on long-term obligations Capital contributions Net cash provided (used) for capital and related financing activities Cash flows from investing activities:
Income from investments Net cash provided by investing activities Net change in cash and cash equivalents Airport 1,334 (698)
(894) 117 (141) 99 (1) 98 (93)
(50)
(16)
(159) 1 1
(201) 203 2
Refuse 19,224 (4,206)
(14,131) 200 1,087 (33)
(33)
Trans-portation 338 (1,842)
(976) 74 (2,406) 1,444 (16) 1,428 (481) 2 (18) 714 217 5
5 (756) 1,923 1,167 Public Parking 5,306 (1,032)
(1,163) 664 3,775 (992)
(7,219)
(8,211)
(4,405) 24,608 (648) 19,555 2
2 15,121 3,036 18,157 Totals 26,202 (7,778)
(17,164) 1,055 2,315 (992) 1,543 (7,269)
(6,718)
(4,979) 4 (50) 24,608 (712) 714 19,585 78 78 15,260 7,691 22,951 continued 2
(30)
(28) 70 70 1,096 2,529 3,625 Cash and cash equivalents, beginning Cash and cash equivalents, ending 74
City of Riverside Combining Statement of Cash Flows Nonmajor Enterprise Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Trans-portation Public Parking Totals Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Operating Income (loss)
Other receipts Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization Amortization of pension costs (Increase) in utility billed receivable Decrease in utility unbilled receivable (Increase) decrease in accounts receivable (Increase) in intergovernmental receivable Decrease in prepaid items Increase in accounts payable Increase in accrued payroll (decrease) in retainage payable Increase in other payable (Decrease) in due to other funds (Decrease) in landfill capping Airport (962) 117 619 6
Refuse (875) 200 1,795 30 (28) 67 51 110 17 107 (222)
(3,131) 74 1,452 664 (3,516) 1,055 (8) 74 (1) 14 561 14 (6) 20 1
9 52 866 4
109 (8) 647 15 26 3,841 54 (28) 67 146 (8) 20 832 41 (1) 199 (222)
(165)
(165)
(141) 1,087 (2,406) 3,775 2,315 Net cash provided (used) by operating activities 75
4' mm
-9
Internal Service Funds Internal Service Funds are used to account for the financing of goods and services provided by one City department to other City departments on a cost-reimbursement basis.
Self-Insurance Trust - To account for the operations of the City's self-insured workers' compensation, unemployment and liability programs.
Central Stores Fund - To account for the operations of the City's centralized supplies inventory, including receiving and delivery services provided to City departments.
Central Garage Fund - To account for the maintenance and repair of all city-owned vehicles and motorized equipment, except for Police vehicles.
City of Riverside Combining Statement of Net Assets Internal Service funds June 30, 2011 (amounts expressed in thousands)
Assets Current assets:
Cash and investments Receivables (net of allowance for uncollectibles):
Interest Accounts Intergovernmental Inventory Total current assets Advances to other funds Deferred charges Capital assets:
Buildings Accumulated depreciation-buildings Machinery and equipment Accumulated depreciation-machinery and equipment Construction in Progress Capital assets (net of accumulated depreciation)
Total noncurrent assets Total assets Liabilities Current liabilities:
Accounts payable Accrued payroll Due to other funds Claims and judgements - current Other payables Total current liabilities Noncurrent liabilities:
Advances from other funds Claims and judgements Total noncurrent liabilities Total liabilities Net Assets Invested in capital assets Unrestricted Total net assets Self-Insurance Trust Central Stores Central Garage Totals 1,306 2,930 4,236 35 29 57 6,683 1,427 6,683 11,975 228 239 148 (142) 22 63 752 3,767 1,074 1,488 (211) 9,457 (7,863) 215 3,086 4,160 7,927 12,203 13,630 6
245 6,928 57 92 57 7,435 11,877 11,975 1,541 1,488 (211) 9,605 (8,005) 215 3,092 16,608 28,485 926 533 4,195 9,900 350 15,904 1,512 16,715 18,227 34,131 3,092 (8,738)
(5,646) 265 34 189 95 4,195 472 404 9,900 47 56 247 10,246 4,535 1,123 223 16,715 16,938 27,184 234 1,055 234 4,769 1,055 2,178 3,086 2,663
.5,749 6
(13,554) 2,153 (13,554) 2,159 77
City of Riverside Combining Statement of Revenues, Expenses, and Changes In Fund Net Assets Internal Service Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Self-Insurance Trust Central Stores Central Garage Totals Operating revenues:
Charges for services Operating expenses:
Personnel services Contractual services Maintenance and operation General Materials and supplies Claims/Insurance Depreciation and amortization Total operating expenses Operating income (loss)
Non-operating revenues (expenses):
Interest income Other Gain (loss) on retirement of capital assets Interest expense and fiscal charges Total non-operating revenue (expenses) 7,581 1,313 6,898 15,792 455 67 2
846 1
10,692 12,063 (4,482) 606 26 330 15 9
4 990 323 2,644 153 2,092 604 194 35 779 6,501 397 72 6
(16)
(31) 31 428 5,321 5,749 3,705 220 2,120 1,780 210 10,736 783 19,554 (3,762) 497 91 (16)
(148) 424 (3,338)
(2,308)
(5,646) 425 85 (110)
(7) 400 (7)
Change in net assets Total net assets - beginning Total net assets - ending (4,082)
(9,472)
(13,554) 316 1,843 2,159 78
City of Riverside Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Cash flows from operating activities:
Cash received from customers and users Cash paid to employees for services Cash paid to other suppliers of goods or services Other Net cash provided (used) by operating activities Cash flows from noncapital financing activities:
Payments on interfund payables Advances to other funds Net cash (used) by noncapital financing activities Cash flows from capital and related financing activities:
Interest paid on long-term obligation Loss from the sale of capital assets Purchase of capital assets Net cash (used) for capital and related financing activities Self-Insurance Trust 8,678 (432)
(11,775) 85 (3,444)
(6) 1,627 1,621 Central Stores 1,313 (577)
(73) 663 Central Garage 10,546 (2,544)
(6,604) 6 1,404 (656)
(27)
Total 20,537 (3,553)
(18,452) 91 (1,377)
(689) 1,627 938 (148)
(16)
(1,044)
(1,208) 494 494 (656)
(110)
(7)
(27)
(31)
(16)
(1,044)
(1,091) 63 63 Cash flows from investing activities:
Income from investments (110) 431 431 (7)
Net increase (decrease) in cash and cash equivalents (1,502) 349 (1,153)
Cash and cash equivalents, beginning Cash and cash equivalents, ending 2,808 1,306 2,581 2,930 5,389 4,236 continued 79
City of Riverside Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Self-Insurance Central Trust Stores Central Garage Reconciliation of operating income to net cash provided (used) by operating activities:
Operating income (loss)
Other Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization Amortization of pension costs (Increase) in account receivable (Increase) decrease in intergovernmental receivable (Increase) in inventory Increase (decrease) in accounts payable Increase in other payable Increase in accrued payroll Increase in due to other funds Increase in claims and judgments Net cash provided (used) by operating activities Total (4,482) 85 323 397 (3,762) 6 91 5
(28)
(27)
(89) 13 5
4 5
(1,242)
(98) 15 9
779 25 (19) 9 (178) 310 61 14 783 35 (47)
(18)
(1,420) 123 89 28 1,647 1,074 (1,377) 1,647 1,074 (3,444) 663 1,404 80
Fiduciary Fund The City's Fiduciary Fund is comprised of an Agency Fund, which is used to account for special assessments that service no-commitment debt.
City of Riverside Fiduciary Fund - Agency Fund Combining Statement of Changes in Assets and Liabilities For the fiscal year ended June 30, 2011 (amounts expressed in thousands)
Balance Balance July 1, 2010 Additions Deductions June 30, 2011 Assets:
Cash and investments Cash and investments at fiscal agent Interest receivable Property taxes receivable Total assets 11,119 8,930 52 7,334 8,864 572 9,798 8,832 566 8,655 8,962 58 267 270 275 262 20,368 17,040 19,471 17,937 Liabilities:
Accounts payable Held for bond holders Total liabilities 5
136 113 28 20,363 7,476 9,930 17,909 20,368 7,612 10,043 17,937 81
-4 I-
-4
City of Riverside Capital Assets Used in the Operation of Governmental Funds Schedule By Source June 30, 2011 (amounts expressed in thousands)
Governmental funds capital assets:
Land Buildings and improvements Improvements other than buildings Machinery and equipment Infrastructure Construction in progress Total governmental funds capital assets Investments in governmental funds capital assets by source:
Certificates of participation Gifts Operating revenue General obligation bonds Revenue bonds County contracts and grants State grants Asset forfeiture - state Asset forfeiture - federal Housing and community development grants Other federal grants Community facilities bonds Assessment district bonds Capital leases RDA tax increment bonds Capital projects funds Total governmental funds capital assets 290,692 165,101 202,911 849,090 74,503 23,562 1,605,859 120,956 310,779 417,002 4,483 21,104 397 1,026 2,278 147 33,703 768 2,118 29,309 18,452 5,405 637,932 1,605,859 83
Z=
Statistical Section This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.
Contents Page Financial Trends 85 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
Revenue Capacity 91 These schedules contain information to help the reader assess the factors affecting the City's ability to generate property and sales taxes.
Debt Capacity 100 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information 107 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments.
Operating Information 109 These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
Table 1 City of Riverside Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting)
(in thousands)
Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Governmental activities Invested in capitalassets, net of related debt 465,803 471,380 484,784 515,354 622,336 712,801 850,740 950,496 976,614
$ 1,019,892 Restricted 115,352 106,862 137,126 154,957 158,038 107,982 102,677 98,903 108,932 80,820 Unrestricted (59,893)
(10,227)
(41,353)
(46,419)
(51,261)
(34,245)
(31,429)
(41,861)
(80,947)
(90,159)
Total governmental activities net assets 521,262 568,015 580,557 623,892 729,113 786,538 921,988
$ 1,007,538
$ 1,004,599
$1,010,553 Business-type activities Invested in capital assets, net of related debt 293,936 323,094 341,041 402,377 425,285 520,059 601,999 659,904 660,619 654,974 Restricted 38,535 40,869 49,242 54,540 71,386 57,613 43,341 38,621 59,863 56,397 Unrestricted 177,537 181,985 217,762 229,462 250,041 242,966 225,281 207,405 219,720 256,038 Total business-type activities net assets 510,008 545,948 608,045 686,379 746,712 820,638 870,621 905,930 940,202 967,409 Primary government Invested in capitalassets, net of related debt 759,739 794,474 825,825 917,731
$ 1,047,621
$1,232,860
$1,452,739
$ 1,610,400
$1,637,233
$ 1,674,866 Restricted 153,887 147,731 186,368 209,497 229,424 165,595 146,018 137,524 168,795 137,217 Unrestricted 117,644 171,758 176,409 183,043 198,780 208,721 193,852 165,544 138,773 165,879 Total primary govemment net assets
$ 1,031,270
$ 1,113,963
$ 1,188,602
$ 1,310,271
$ 1,475,825
$1,607,176
$1,792,609
$ 1,913,468
$ 1,944,801
$1,977,962 85
Table 2 City of Riverside Changes In Net Assets Last Ten Fiscal Years (accrual basis of accounting)
(in thousands)
Page 1 of 2 Expenses Governmental activities:
General government Public safety Highways and streets Culture and Recreation Interest on long-term debt Total governmental activities expenses Business-type activities:
Electric Water Sewer Refuse Airport Transportation Public parking Total business-type activities expenses Total primary government expenses Program Revenues Governmental activities:
Charges for services:
General government Public safety Highways and streets Culture and recreation Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type activities:
Charges for services:
Electric Water Sewer Refuse Airport Transportation Public parking Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 47,245 59,530 63,000 58,460 74,458
$ 105,486
$ 113,897
$102,665
$119,676
$102,877 80,944 88,969 102,500 110,969 120,470 114,312 122,783 127,350 118,868 123,061 6,819 15,625 22,017 20,364 20,757 22,556 26,986 18,731 22,036 24,082 29,607 29,236 22,988 26,353 32,602 28,016 31,659 24,121 37,679 44,098 7,727 7,696 10,996 15,885 16,358 26,378 34,075 34,361 32,049 33,638 172,342 201,056 221,501 232,031 264,645 296,748 329,400 307,228 330,308 327,756 215,131 186,917 196,727 200,030 226,186 232,346 271,412 269,209 256,860 275,922 28,978 29,715 33,921 36,709 39,486 42,108 47,570 53,931 55,402 56,390 19,214 20,053 23,273 26,108 27,299 29,510 31,209 34,853 41,248 42,276 10,821 11,577 11,510 12,841 14,546 16,490 18,430 18,425 20,527 20,046 1,045 1,151 1,088 1,185 1,004 1,201 1,418 1,734 2,206 2,320 1,735 2,110 2,286 2,557 2,917 2,831 3,190 3,194 3,368 3,493 1,392 1,389 824 2,701 3,762 4,093 5,095 4,024 4,401 276,924 252,915 270,194 280,254 314,139 328,248 377,322 386,441 383,635 404,848
$ 449,266 453,971
$ 491,695
$ 512,285 578,784
$ 624,996
$ 706,722
$693,669
$713,943
$732,604 20,265 22,675 26,160 25,995 24,683 10,245 23,969
$ 13,691
$ 12,933
$ 14,241 5,855 6,427 6,799 6,982 5,845 12,410 9,924 8,414 8,177 8,075 18,891 20,867 22,286 23,108 25,412 30,563 19,695 14,391 17,847 16,985 4,671 8,304 5,056 7,002 7,716 8,302 4,370 3,168 2,367 3,180 7,257 12,716 12,935 16,140 13,150 12,101 15,024 23,313 32,853 21,127 19,528 2,144 1,136 5,292 18,618 10,557 115,982 69,745 23,395 38,138 76,467 73,133 74,372 84,519 95,424 84,178 188,964 132,722 97,572 101,746 216,106 29,527 20,457 11,220 1,089 116 2,992 1,877 283,384
$ 359,851 204,293 28,637 21,172 11,795 1,046 170 2,385 3,663 4,976 278,137 351,270 233,102 32,382 21,672 13,759 1,051 185 2,760 1,723 26,390 333,024
$ 407,396 252,322 259,572 34,002 37,613 21,967 21,510 14,492 15,160 1,088 1,162 200 238 2,961 2,837 2,261 2,704 32,317 29,293 361,610 370,089
$ 446,129
$ 465,513 278,888 47,080 24,057 15,833 1,263 302 3,431 1,939 40,066 412,859
$ 497.037 305,299 314,164 309,910 313,703 49,855 54,923 57,534 62,084 22,525 23,247 27,342 32,769 16,289 18,394 18,712 19,134 1,423 1,232 1,315 1,342 313 336 328 344 3,717 4,332 4,876 5,205 3,308 1,929 2,487 2,159 29,215 17,288 6,838 7,337 431,944 435,845 429,342 444,077
$ 620,908
$568,567
$526,914
$545,823 (continued) 86
Table 2 City of Riverside Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting)
(in thousands)
Page 2 of 2 Net Revenues (Expense)
Governmental activities Business-type activities Total primary government net expense Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$ (95,875)
$(127,923)
$ (147,129)
$(147,512)
$ (169,221)
$ (212,570)
(140,436)
$ (174,506)
$(232,736)
$(226,010) 6,460 25,222 62,830 81,356 55,950 84,611 54,622 49,404 45,707 39,229
$ (89,415)
$(102,701)
(84.299)
$ (66,156)
$ (113,271)
$ (127,959)
(85,814)
$ (125,102)
$(187,029)
$(186,781)
General Revenues and Other Changes in Net Assets Governmental activities:
Taxes Sales Property Utility Users Franchise Other Intergovernmental, unrestricted Unrestricted grants and contributions Investment earnings Miscellaneous Transfers Contributions Total governmental activities Business-type activities:
Unrestricted grants and contributions Investment income Miscellaneous Special item Transfers Total business-type activities Total primary government Change in Net Assets Governmental activities Business-type activities Total primary government 38,467 29,471 18,510 4,070 2,777 14,848 11,058 5,079 18,057 142.337 41,691 33,584 19,928 3,811 2,967 15,533 8,064 2,241 18,218 146.037 46,624 35,911 21,362 4,261 3,213 12,528 18,710 1,284 5,476 10,302 (2,800) 156.871 53,348 61,553 22,133 4,481 3,828 1,795 15,220 7,815 5,756 14,918 190.847 57,522 80,934 23,502 4,813 4,372 1,747 39,653 10,150 26,173 25,576 274,442 55,666 106,114 25,384 5,031 3,581 1,863 29,743 18,582 4,228 31,171 281.363 50,526 114,176 26,267 4,972 3,795 2,074 25,670 9,480 32,326 269.286 41,882 116,420 25,964 5,144 2,912 4,569 15,941 5,137 42,087 260.056 39,645 104,087 25,975 4,477 2,488 1,339 8,289 3,344 40,153 229.797 44,157 100,802 26,691 4,937 2.731 1,285 7,439 9,544 34,378 231.964 12,638 12,780 5,624 7,900 (18,057) 20 885 15,972 9,115 3,849 (18 2181 5,016 4,553 (10.3021 7,548 7,362 (3,014)
(14.9181 11,259 18,700 (25.5761 16,988 3,498 (31.1711 22,756 4,931 (32.3261 23,402 4,590 (42.0871 21,271 7,447 (40.1531 17,548 4,808 (34.378)
(120221 (18218)
(103021 1149181 (255761 (31 1711 (323261 (42087) 10.718 (7331*
(3 0221 4.383 (10.685"1 (4.6391 (14.0951 (11 4351 163,222 156.755 156.138 187.825 278.825 270.678 264.647 245,961 218,362 219.942 46,462 18.114 9.742 43,335 105.221 68,793 128.850 85.550 (2.939) 5.954 27.345 35.940 62.097 78.334 60.333 73.926 49.983 35.309 34.272 27.207 73,807 54,054 71,839
$ 121,669 165,554 142,719 178,833 120,859 31,333 33,161 87
Table 3 City of Riverside Fund Balances of Governmental Funds As of June 30, 2011 (modified accrual basis of accounting, in thousands)
General fund Nonspendable Restricted Assigned Unassigned Total general fund
$ 26,646 82,249 15,589 36,359 160,843 All other governmental funds Nonspendable Restricted:
Housing and redevelopment Debt service Transportation and public works Other purposes Total all other governmental funds 1,626 96,571 56,526 26,459 5,073
$ 186,255 The City of Riverside implemented GASB 54 in the fiscal year ended June 30, 2011.
The City has elected to show one year of data for this schedule.
88
Table 4 City of Riverside Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis accounting)
(in thousands)
Page 1 of 2 Revenues:
Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Use of money and property Miscellaneous Total revenues Expenditures:
General government Public safety Highways and streets Culture and recreation Capital outlay Debt Service:
Principal Interest Debt issuance costs Total expenditures Excess of revenues over (under) expenditures 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 93,879 102,286 113,118 142,056 170,638 191,131 200,438
$ 192,322
$ 177,255
$ 179,318 12,317 14,394 11,343 14,389 16,351 12,984 10,027 7,368 6,899 7,657 47,410 43,829 42,609 42,568 55,178 47,934 79,423 86,873 60,550 61,082 7,866 8,878 10,046 11,299 11,538 11,914 11,325 9,099 9,570 10,720 2,346 2,095 2,188 2,006 2,098 2,778 4,573 6,213 7,512 8,928 5,420 6,324 10,259 6,272 6,247 6,170 5,245 5,431 5,464 6,014 13,017 11,255 10,587 10,915 14,324 22,587 27,970 18,620 11,173 10,173 4,816 5,042 7,133 9,996 8,502 6,164 12,796 7,596 7,082 16,605
$ 187,071 194,103 207,283 239,501 284,876 301,662 351,797
$ 333,522
$ 285,505
$ 300,497 27,748 22,031 25,108 21,800 25,193 39,093 26,177
$ 25,995 23,835 26,090 91,245 96,487 107,386 117,267 126,007 139,739 151,773 145,802 138,594 140,994 10,551 12,034 11,990 11,695 11,281 19,722 25,209 18,452 14,987 14,587 23,835 27,579 24,836 28,939 31,017 31,039 30,622 26.859 40,373 44,345 41,058 39,098 50,333 64,127 121,978 149,325 171,952 180,394 131,908 105,689 6,174 4,470 2,422 8,599 9,733 12,045 11,257 44,349 48,078 89,264 7,785 7,785 9,945 15,025 19,205 21,330 31,239 33,033 31,267 32,611 950 1,538 2,551 697 259 231 174
$ 208,396
$ 209,484 232,970 268,990 344,414 414,844
$ 448,926
$475,143
$ 429,273
$ 453,754 (21,325)
(15,381)
(25,687)
(29,489)
(59,538)
$ (113,182)
(97,129)
$(141,621)
$(143,768)
$(153,257)
(contnued) 89
Table 4 City of Riverside Changes In Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis accounting)
(in thousands)
Page 2 of 2 Other financing sources (uses):
Transfers in Transfers out Sales of general capital assets Advances from other funds Long-term obligation proceeds Capital lease proceeds Premiums (discounts) on bonds issued Payments to refunded bond agent Total other financing sources (uses)
Special item - pension contribution Net change in fund balances Debt service as a percentage of noncapital expenditures 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$ 31,305
$ 36,202 41,440 49,944 59,545
$ 84,306 62,841 100,797 88,303 214,631 (13,248)
(17,984)
(31,338)
(35,026)
(33,969)
(53,135)
(30,515)
(58,710)
(48,150)
(180,280) 153 1,314 (675) 6,230 1,281 541 8,931 (5,798) 529 (1,629) 81 8,454 750 247,594 85,578 20,969 295,190 164,408 30,425 52,360 104,875 3,116 2,000 113 4,455 (539)
(58,657)
(9,167)
(148,975) 26,664 20,363 198,364 97,672 47,826 331,357 56,690 36,514 95,619 139,597 (88,300)
(32,141) 5,339 4,982 84,377 36,042
$ (11,712)
$218,175
$ (40,439)
(74,907)
(48,149)
(13,660) 7.823%
(1) 6.545%
7.173%
15.301%
(2) 13.777%
14.011%
17.225%
(3) 26.145%
(4) 23.278%
35.114%
(5)
(1) Debt service decreased upon the retirement of the 1977 Civic Center Authority Bonds.
(2) Increase in debt service related to the issuance of the 2003 and 2004 Redevelopment Agency Tax Allocation Bonds.
(3) Increase in debt service related to the issuance of the 2007 Redevelopment Agency Tax Allocation Bonds and 2008 Riverside Renaissance Certificates of Participation.
(4) Increase relates to $30 million refinancing of 2005B pension bonds that took place in May 2008, which became due in-full in June 2009. The $30 million Pension Bond Anticipation Notes have been paid in-full and immediately re-issued each year in 2009, 2010 and 2011.
(5) Increase in debt service related to one-time early redemption of $31.7 million of 2011 Redevelopment Tax Allocation Bonds and $9.1 million of loan proceeds that were drawn-down during the year and re-paid within the year.
90
Table 5 City of Riverside Business-Type Activities Electricity Revenue By Source Last Ten Fiscal Years (accrual basis of accounting)
(in thousands)
Fiscal Residential Commercial Industrial Year Sales Sales Sales Wholesale Sales Other Other Transmission Operating Total Sales Revenue Revenue Revenues 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 64,625 46,265
$ 49,487
$ 46,505 7,447 1,777 216,106 68,649 80,872 79,786 85,243 94,426 99,981 105,525 107,301 107,792 48,974 57,079 59,998 53,773 55,421 60,768 65,532 65,091 64,039 52,380 56,117 59,157 71,084 83,698 92,697 97,100 97,458 102,067 17,806 9,581 15,249 11,952 9,913 14,805 4,674 1,466 124 5,619 6,354 6,337 7,139 5,713 5,425 5,684 5,639 5,529 8,661 20,917 20,213 20,043 20,097 19,211 18,673 21,100 22,091 2,230 2,182 12,697 9,183 9,536 12,405 12,250 11,855 12,061 204,319 233,102 253,437 258,417 278,804 305,292 309,438 309,910 313,703 The City started receiving Transmission Revenue in 2003.
91
Table 6 City of Riverside Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (accrual basis of accounting)
(in thousands)
Utility Fiscal Sales Property Users Franchise Year Tax Tax Tax Tax Other Total Tax Taxes 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$ 38,467 41,691 46,624 53,348 57,522 55,666 50,526 41,882 39,645 44,157
$ 29,471 33,584 35,911 61,553 80,934 106,114 114,176 116,420 104,087 100,802
$ 18,510 19,928 21,362 22,133 23,502 25,384 26,267 25,964 25,975 26,691 4,070 3,811 4,261 4,481 4,813 5,031 4,972 5,144 4,477 4,937 2,777 2,967 3,213 1,795 4,372 3,581 3,795 2,912 2,488 2,731 93,295 101,981 111,371 143,310 171,143 195,776 199,736 192,322 176,672 179,318 92
Table 7 City of Riverside Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in thousands) city Redevelopment Agency Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Secured 12,103,179 13,071,416 14,188,658 15,540,982 17,557,341 20,672,126 23,618,776 24,428,633 22,644,262 22,056,793 Unsecured 799,323 980,529 845,858 951,211 1,058,995 1,140,891 1,291,972 1,330,053 1,299,353 1,260,923 Less:
Exemptions (2,129,115)
(2,406,961)
(2,526,503)
(2,751,844)
(4,002,177)
(5.417,388)
(6,960,666)
(7,515,667)
(7,103,040)
(6,920,720)
Taxable Assessed Value 10,773,387 11,644,984 12,508,013 13,740,349 14,614,159 16,395,629 17,950,082 18,243,019 16,840,575 16,396,996 Taxable Less:
Assessed Unsecured Exemptions Value Secured 1,240,768 1,390,108 1,508,478 1,775,655 2,914,600 4,145,700 5,509,441 5,998,768 5,598,484 5,396,219 205,181 276,506 228,775 158,148 210,025 410,625 553,124 581,943 564,825 544,906 (16,263)
(27,690)
(30,286)
(33,654)
(51,992)
(93,261)
(138,490)
(224,025)
(266,257)
(268,323) 1,429,686 1,638,924 1,706,967 1,900,149 3,072,633 4,463,064 5,924,075 6,356,686 5,897,052 5,672,802 Total Direct Tax Rate 0.267 0.268 0.264 0.266 0.309 0.304 0.334 0.343 0.349 0.347 Notes:
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor' (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Assessed valuations are based on 100 percent of estimated actual value.
Source: Riverside County Auditor-Controller 93
Table 8 City of Riverside Direct and Overlapping Property Tax Rates (Rate per $100 of Assessed Valuation)
Last Ten Fiscal Years Basic Levy' Unified School Districts Debt Service 2 City of Riverside Debt Service Eastern Municipal Water Improvement District Metropolitan Water District Original Area Riverside City Community College Debt Service Rubidoux Community Service Debt Service Total Direct & Overlapping3 Tax Rates City's Share of 1% Levy Per Prop 13I General Obligation Debt Rate 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.151 0.250 0.210 0.234 0.220 0.155 0.185 0.291 0.326 0.334 0.011 0.009 0.008 0.006 0.007 0.006 0.006 0.024 0.024 0.022 0.023 0.010 0.009 0.008 0.008 0.007 0.006 0.006 0.005 0.005 0.005 0.004 0.004 0.004 0.018 0.018 0.018 0.013 0.013 0.012 0.015 0.004 0.004 0.003 0.003 1.187 1.285 1.241 1.295 1.262 1.195 1.217 1.315 1.348 1.359 0.145 0.145 0.145 0.145 0.145 0.145 0.145 0.145 0.145 0.145 0.011 0.009 0.009 0.006 0.007 0.006 0.006 Redevelopment Rate 5
Total Direct Rater 1.008 1.007 1.006 1.006 1.005 1.005 1.005 1.004 1.004 1.004 0.267 0.268 0.264 0.266 0.309 0.304 0.334 0.343 0.349 0.347 1 In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of the various intergovernmental overlapping debt.
2 Includes: Alvord Unified School District, Corona Norco Unified School District, Jurupa Unified School District, Moreno Valley Unified School District, Riverside Unified School District and Val Verde Unified School District.
3 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
4 City's share of 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
5 RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statue. RDA direct and overlapping rates are applied only to the incremental property values.
6 Total Direct Rate is the weighted average of all individual direct rates.
Source: Riverside County Assessor 2001/02 - 2010/11 Tax Rate Table.
94
Table 9 City of Riverside Principal Property Taxpayers Current Year and Nine Years Aao (i2touans CurntYa adNieYar a
(i thuans 2011 2002 Property Owner Tyler Mall La Sierra University Riverside Healthcare System State Street Bank & Trust Co of Calif Fountains South Bay, LLC MEF Realty Rohr Inc Mission Grove Plaza, LP Press Enterprise Co Canyon Springs Marketplace Corp Charter Communication Metal Container Corp Ohio Teacher Retirement Toro Company Lyon Corona Pointe Mission Grove Park Apartments Taxable Assessed Value 185,497 122,345 105,573 87,419 81,594 78,406 76,435 75,147 74,222 68,969 Percentage of Total Taxable Assessed Rank Value Taxable Assessed Value Percentage of Total Taxable Assessed Rank Value 1
2 3
4 5
6 7
8 9
10 0.8%
0.5%
0.5%
0.4%
0.4%
0.4%
0.3%
0.3%
0.3%
0.3%
87,571 91,163 75,982 42,140 52,215 48,464 140,395 47,629 53,667 45,819 3
2 4
10 0.7%
0.7%
0.6%
0.4%
0.4%
0.4%
1.1%
0.4%
0.4%
0.4%
6 7
1 8
5 9
Totals 955,607 4.3%
685,045 5.5%
Notes:
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: Riverside County Assessor 2010/11 and 2001/02 Combined Tax Rolls 95
Table 10 City of Riverside Property Tax Levies and Collections Last Nine Fiscal Years (in thousands)
Fiscal Year Ended June 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 Taxes Levied for Fiscal Year 25,809 31,829 36,825 52,532 69,246 83,996 86,251 77,228 74,608 Collections Collected within the in Fiscal Year of the Levy Subsequent Amount Percentage of Levy Years Total Collections To Date Amount Percentage of Levy 25,479 31,429 36,332 51,815 67,046 82,345 84,134 74,491 72,327 98.72%
98.74%
98.66%
98.64%
96.82%
98.03%
97.55%
96.46%
96.94%
250 292 346 494 1,850 810 1,117 1,015 25,729 31,721 36,678 52,309 68,896 83,155 85,251 75,506 72,327 99.69%
99.66%
99.60%
99.58%
99.49%
99.00%
98.84%
97.77%
96.94%
Note:
The table reflects amounts related to the City and the Redevelopment Agency. The amounts collected by the Redevelopment Agency include monies that were passed-through to other agencies. Current tax levies are the original charge as provided by the County of Riverside. Current tax collections do not include supplemental taxes, aircraft taxes or other property taxes.
Source: Riverside County Auditor Controller's Office and City Finance Division The City of Riverside has elected to show nine years of data for this schedule.
96
Table 11 City of Riverside Electricity Sold by Type of Customer, Last Ten Fiscal Years (in millions of kilowatt-hours)
Type of Customer:
Residential Commercial Industrial Wholesale sales Other Total Total direct rate Monthly Base Rate 1 Rate per 250 KWH 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 600.0 618.0 707.0 675.0 696.0 748.0 734.0 733.0 701.0 666.0 434.0 451.0 522.0 530.0 474.0 456.0 441.0 433.0 406.0 400.0 629.0 658.0 687.0 707.0 810.0 924.0 960.0 946.0 906.0 912.0 541.0 378.0 354.0 470.0 287.0 295.0 357.0 137.0 44.0 7.0 53.0 49.0 52.0 50.0 58.0 39.0 34.0 33.0 32.0 31.0 2,257.0 2,154.0 2,322.0 2,432.0 2,325.0 2,462.0 2,526.0 2,282.0 2,089.0 2,016.0 3.06 3.18 3.28 3.36 3.36 5.00 11.35 20.18 20.98 21.65 22.20 22.20 22.20 25.88 13.06 18.06 18.06 25.88 25.88 25.88 Rates are based on a monthly base rate plus energy charge for the first 250 KWH.
The Utility charges an excess use rate over 250 KWH.
Source: Riverside Public Utilities, Finance Services 97
Table 12 City of Riverside Electricity Rates Last Ten Fiscal Years (Average Rate in Dollars per Kilowatt-Hour)
Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Residential 0.10768 0.10990 0.11439 0.11813 0.12222 0.12621 0.13613 0.14389 0.15307 0.16173 Commercial 0.10615 0.10779 0.10936 0.11321 0.11330 0.12164 0.13781 0.15122 0.16014 0.16001 Industrial 0.07844 0.07901 0.08167 0.08369 0.08798 0.09059 0.09658 0.10271 0.10756 0.11194 Other 0.11206 0.11869 0.12271 0.12768 0.12373 0.14493 0.16099 0.17169 0.17876 0.18089 NOTE:
Rates are based on a monthly base rate plus an energy charge for the first 250 KWH. The Utility charges an excess use rate over 250 KWH.
Source: Riverside Public Utilities, Finance Services 98
Table 13 City of Riverside Top 10 Electricity Customers Current Year and Nine Years Ago 2011 Electricity Charges Percent of Total Electric Revenues 2002 Percent of Electricity Total Electric Charges Revenues Electricity Customer Local University Local Government Local Government Local School District Corporation Corporation Hospital Shopping Mall Corporation Local School District
$9,446,847 7,676,133 6,597,628 4,139,323 3,634,707 2,605,188 2,181,356 2,051,562 1,966,308 1,925,538 3.38%
2.75%
2.36%
1.48%
1.30%
0.93%
0.78%
0.73%
0.70%
0.69%
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
$42,224,590 15.10%
N/A N/A Retail Sales Per Financial Statements
$279,427,397 N/A - not available Source: Riverside Public Utilities, Finance Services 99
Table 14 City of Riverside Ratios of Outstanding Debt by Type Last Ten Fiscal Years (in thousands)
Revenue General Fiscal Obligation Year Bonds Governmental Activities Pension Assessment Obligation Bonds Bonds 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20,285 20,280 19,858 19,331 18,774 18,171 17,533 16,845 Redevelopment Bonds 111,880 109,615 131,590 144,024 140,195 296,598 292,244 285,743 278,867 305,195 Revenue Bonds 525 135 89,540 148,280 146,470 144,450 142,170 139,410 136,050 132,095 Certificates of Participation 5,150 4,650 58,706 57,336 55,571 192,874 200,273 198,268 211,212 207,246 6,430 5,517 8,938 7,431 6,008 4,929 9,391 7,455 6,303 6,670 Capital Notes/Loans Leases Payable 11,096 11,447 11,057 10,645 10,215 9,759 9,040 8,749 9,291 8,849 Business-Type Activities Fiscal Revenue Year Bonds Notes/Loans Capital Payable Leases 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 355,621 342,559 440,970 419,581 509,577 482,929 720,749 670,512 968,393 1,071,554 6,966 11,524 11,066 10,459 9,841 9,211 8,569 7,915 7,249 76,747 571 498 439 392 317 253 211 2,574 2,151 1,720 Total Primary Government 498,374 485,810 772,591 818,428 898,052 1,160,334 1,401,421 1,342,931 1,637,049 1,826,921 Percentage of Personal Income 1 10.51%
9.89%
15.02%
14.98%
15.47%
18.67%
21.51%
20.15%
24.83%
27.58%
Debt Per Capita1 1.90 1.79 2.79 2.91 3.13 4.01 4.80 4.54 5.44 6.01 1 These ratios are calculated using personal income and population data for the prior calendar year.
Source: City of Riverside Notes to Financial Statements and Statistical Table 20.
100
Table 15 City of Riverside Ratios of General Bonded Deb Last Ten Fiscal Years General Fiscal Obligation Year Bonds t Outstanding 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20,285 20,280 19,858 19,331 18,774 18,171 17,533 16,845 Certificates Pension of Bonds Participation 5,150 4,650 89,540 58,706 148,280 57,336 146,470 55,571 144,450 192,874 142,170 200,273 139,410 198,268 136,050 211,212 132,095 207,246 Tax Allocation Bonds 1 111,880 109,615 131,590 144,024 140,195 296,598 292,244 285,743 278,867 305,195 1
1 3
3 66 6
66 (in thousands, except per capita amount)
Percent of Assessed Per Total Value 2 Capita 3 17,030 1.09%
446 14,265 0.98%
422 00,121 2.40%
1,083 69,920 2.69%
1,316 62,094 2.48%
1,264 53,253 3.98%
2,26C 53,461 3.64%
2,239 41,592 3.52%
2,167 43,662 3.82%
2,140 61,381 4.03%
2,175 Notes:
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (which, the City has none.)
I Amount presented is net of restricted resources held for the repayment of outstanding debt principal.
2 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
3 These ratios are calculated using population data for the prior calendar year.
Source: City of Riverside Notes to Financial Statements and Reserve Cash Reconciliation maintained by City Finance Division.
101
Table 16 City of Riverside Direct and Overlapping Debt As of June 30, 2011 (in thousands)
Page 1 of 2 Total City Assessed Valuation Less Redevelopment Agency Incremental Valuation Adjusted Assessed Valuation 22,069,798 5,672,802 16,396,996 Overlapping Tax and Assessment Debt:
Metropolitan Water District Riverside City Community College District Alvord Unified School District Riverside Unified School District Corona-Norco Unified School District Jurupa Unified School District Moreno Valley Unified School District Alvord Unified School District Community District No.2006-1 Riverside Unified School District Community Facilities Districts City of Riverside Community Facilities Districts City of Riverside 1915 Act Bonds Total Overlapping Tax and Assessment Debt:
Percentage Applicable 2 0.931%
28.871%
62.592%
84.087%
0.002%
0.003%
6.164%
68.691%
88.730-100%
100%
100%
Outstanding Debt 06/3012011 Estimated Share of Overlapping Debt 2,120 68,344 131,584 130,032 5
20 19,732 82,361 109,340 2
2,722 5,852 94,691 15,222 32,105 482,679 168 4,020 84,019 15,222 32,105 346,987 (continued) 102
Table 16 City of Riverside Direct and Overlapping Debt As of June 30, 2011 (in thousands)
Page 2 of 2 Overlapping Other Debt:
Riverside County General Fund Obligations Riverside County Pension Obligations Riverside County Board of Education Certificates of Participation Alvord Unified School District Certificates of Participation Corona-Norco Unified School District Certificates of Participation Jurupa Unified School District Certificates of Participation Moreno Valley Unified School District Certificates of Participation Riverside Unified School District General Fund Obligations Total Overlapping Other Debt Total Net Overlapping Debt City Direct Debt Total Direct and Overlapping Debt 11.370%
11.370%
11.370%
62.592%
0.002%
0.003%
6.164%
84.047%
80,811 41,722 702 1,269 1
9,188 4,744 80 794 1,261 12,453 138,219 620,898 78 10,466 25,350 372,337 360,152 732,489 (1)
(1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
(2)
For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Source: HdL Coren & Cone 103
Table 17 City of Riverside Legal Debt Margin Information Last Ten Fiscal Years (in thousands) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Assessed valuation
$10,773,387
$11,644,984
$12,508,013
$13,740,349
$14,614,159
$16,395,629
$17,950,082 18,243,019 16,840,575 16,396,996 Conversion percentage 25%
25%
25%
25%
25%
25%
25%
25%
25%
25%
Adjusted assessed valuation 2,693,347 2,911,246 3,127,003 3,435,087 3,653,540 4,098,907 4,487,521 4,560,755 4,210,144 4,099,249 Debt limit percentage 15%
15%
15%
15%
15%
15%
15%
15%
15%
15%
Debt limit 404,002 436,687 469,050 515,263 548,031 614,836 673,128 684,113 631,522 614,887 Total net debt applicable to limit:
20,285 20,280 19,858 19,331 18,774 18,171 17,533 16,845 Legal debt margin 404,002 436,687 448,765 494,983 528,173 595,505 654,354 665,942 613,989 598,042 Total net debt applicable to the limit as a percentage of debt limit 0.0%
0.0%
4.3%
3.9%
3.6%
3.1%
2.8%
2.7%
2.8%
2.7%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect a the time that the legal debt margin was enacted by the State of California for local governments located within the State.
Source: City of Riverside, Statistical Table 6 and Notes to Financial Statements.
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Table 18 City of Riverside Pledged-Revenue Coverage Governmental Activity Debt Last Ten Fiscal Years (in thousands)
Tax Allocation Bonds Debt Service Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Pledged Revenue1 14,859 16,180 17,410 21,242 35,268 35,966 50,911 50,270 48,843 46,162 Principal 2,745 2,694 1,873 4,507 4,390 3,185 3,305 5,360 5,675 5,915 Interest Coverage 7,252 7,371 9,599 6,307 7,236 7,663 12,988 12,856 13,316 12,228 1.49 1.61 1.52 1.96 3.03 3.32 3.12 2.76 2.57 2.54 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1 Amount has been calculated in accordance with the provisions set forth in the debt covenants.
105
Table 19 City of Riverside Pledged-Revenue Coverage Business Type Activity Debt Last Ten Fiscal Years (in thousands)
Electric Revenue Bonds Water Revenue Bonds Less:
Net Less:
Net Fiscal Pledged Operating Available Debt Service Pledged Operating Available Debt Service Year Revenue1 Expenses1 Revenue Principal Interest Coverage Revenue1 Expenses' Revenue Principal Interest Coverage 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$ 229,529 211,553 239,842 262,350 265,086 289,784 314,733 320,447 320,560 319,177
$ 190,426
$ 39,103 7,385 9,841 157,450 54,103 7,840 10,966 168,162 71,680 10,780 10,183 164,159 98,191 14,555 12,143 184,421 80,665 15,015 15,245 187,700 102,084 18,815 14,200 219,680 95,053 19,460 16,790 202,904 117,543 20,572 24,941 199,040 121,520 21,574 22,572 212,878 106,299 23,029 25,087 2.27
$ 43,215 19,244
$ 23,971 3,215
$ 2,941 2.88 36,837 19,928 16,909 3,895 2,720 3.42 47,093 23,767 23,326 4,010 2,622 3.68 45,348 26,436 18,912 4,045 2,591 2.67 66,226 27,028 39,198 3,875 3,790 3.09 55,699 29,461 26,238 4,300 3,454 2.62 67,312 33,827 33,485 4,355 4,275 2.58 60,886 35,639 25,247 4,473 6,728 2.75 61,985 35,953 26,032 4,533 8,008 2.21 84,328 35,220 49,108 4,799 9,263 3.89 2.56 3.52 2.85 5.11 3.38 3.88 2.25 2.08 3.49 Sewer Revenue Bonds 2 Less:
Net Fiscal Pledged Operating Available Debt Service Year Revenue1 Expenses1 Revenue Principal Interest Coverage 2010 2011
$31,470 37,772
$26,865 27,575
$4,605 10,197
$666 692
$151 125 5.64 12.48 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1 Amounts have been calculated in accordance with the provisions set forth in the debt covenants. Total operating expenses exclusive of depreciation.
2 $240,910 of Sewer Revenue Bonds were issued August 6, 2009 106
Table 20 City of Riverside Demographic and Economic Statistics Last Ten Calendar Years Calendar Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Population1 262,164 270,805 277,177 281,192 286,572 289,045 291,814 296,038 300,769 304,051 Personal Income 2 (in thousands) 4,741,313 4,914,404 5,145,118 5,462,823 5,806,339 6,214,628 6,514,489 6,665,142 6,592,294 6,623,143 Per Capita Personal Income 2 18,085 18,147 18,563 19,427 20,261 21,501 22,324 22,514 21,918 21,783 Unemployment Rate 3
5.5 6.5 6.6 6.1 5.4 5.1 6.1 8.6 13.7 14.8 Sources:
1 California State Department of Finance.
2 Demographic Estimates for 2001-2009 are based on the last available Census. Projections are devloped by incorporating all fo the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries. Demographic Estimates for 2010 are per the US Cenus Bureau, most recent American Community Survey.
3 State of California Empolyment Development Department.
107
Table 21 City of Riverside Principal Employers Current Year and Nine Years Ago 2011 2002 Percentage of Total City Employment Percentage of Total City Rank Employment Employer Employees Rank Employees County of Riverside University of California Riverside Unified School District Kaiser City of Riverside Riverside Community Hospital Riverside Community College District Riverside County Office of Education Alvord Unified School District Parkview Community Hospital 10,137 5,390 4,867 4,000 2,647 2,200 1,864 1,710 1,689 1,350 1
2 3
4 5
6 7
8 9
10 6.5%
3.5%
3.1%
2.6%
1.7%
1.4%
1.2%
1.1%
1.1%
0.9%
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total 35,854 23.1%
N/A N/A N/A - not available Source: City of Riverside, Development Department 108
Table 22 City of Riverside Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years Function General government Public safety Police 1 Fire Firefighters and Police Officers Highways and streets Sanitation Culture and recreation Airport Water Electric Total 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 313.29 314.39 318.36 331.88 377.15 412.22 436.35 439.10 433.40 431.40 560.65 569.65 567.83 568.83 589.33 618.33 637.33 591.93 589.93 589.93 217.65 218.65 219.65 221.11 221.73 251.73 254.21 254.21 255.46 255.46 552.00 561.00 557.00 557.46 566.46 620.46 632.46 633.46 632.46 632.46 266.10 280.10 285.10 281.35 262.35 286.35 318.35 369.65 349.50 348.11 44.49 44.49 48.49 48.49 59.49 60.29 64.29 58.60 59.00 56.00 282.93 301.97 302.92 300.92 311.45 324.26 339.52 340.71 328.07 328.07 6.00 6.00 6.00 6.00 6.00 7.00 7.00 7.00 7.00 9.50 123.00 123.00 130.00 130.00 133.00 142.00 167.00 167.00 177.65 180.15 282.60 291.60 295.60 305.60 337.60 351.35 404.60 408.10 419.45 448.50 2,096.71 2,149.85 2,173.95 2,194.18 2,298.10 2,453.53 2,628.65 2,636.30 2,619.46 2,647.12 In fiscal year 2009 the Crossing Guards program (46.40 FTEs) was moved from the Police Department to the Public Works Department (highways and streets).
Source: City of Riverside, Finance Division 109
Table 23 City of Riverside Operating Indicators by Function Last Ten Fiscal Years FunctlonlProgram 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Police Arrests 10,047 10,541 11,951 11,280 10,093 9,827 9,367 10,150 8,690 8,118 Fire Number of calls answered 24,115 24,886 25,876 26,505 26,696 27,458 27,429 26,397 26,484 27,322 Inspections N/A 14,229 16,306 17,028 19,261 7,261 10,812 7,638 7,234 6,505 Public works:
Street resurfacing (miles) 104.04 67.39 62.37 102.45 51.26 73.40 26.27 18.90 20.00 21.25 Parks and recreation Number of recreation classes 14,619 14,787 15,135 15,195 16,272 19,079 22,146 21,884 27,762 37,303 Number of facility rentals 26,533 26,854 27,014 27,074 27,483 32,980 35,076 36,822 34,565 42,638 Water Number of accounts 60,059 60,625 61,668 62,492 62,985 63,431 63,494 64,062 64,231 64,349 Annual consumption (ccf) 30,682,171 29,283,851 30,596,320 27,875,253 28,865,030 32,110,208 30,583,266 29,721,236 26,687,271 25,902,439 Electrc Number of accounts 97,793 99,018 100,766 103,463 104,294 105,226 106,015 106,385 106,335 106,855 Annual consumption (kwh) 2,257 2,154 2,322 2,432 2,359 2,462 2,526 2,282 2,089 2,016 Sewer:
New connections 5,267 5,825 7,034 9,621 16,717 15,423 16,412 18,765 16,971 17,746 Average daily sewage treatment 34.75 33.15 35.24 38.07 35.91 32.50 32.10 33.00 33.29 30.06 (millions of gallons)
Inspections were not tracked prior to 2003 2 Amounts expressed in millions N/A - not available Source: City of Riverside, various departments 110
Table 24 City of Riverside Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 2002 2003 2004 2005 (1) 2006 2007(2) 2008 2009 2010 2011 Function Public Safety Police Stations Substations Helicopters Fire Stations Active apparatus Reserve apparatus Training facilities Highways and streets Streets (miles)
Streetlights Traffic signals Culture and recreation Parks acreage Community centers Playgrounds Swimming pools Softball & baseball diamonds Library branches Museum exhibit-fixed Museum exhibit-special Water Fire hydrants Sewer Sanitary sewers (miles)
Electric Miles of overhead distribution system Miles of underground system 2
9 4
13 26 5
1 816.34 28,058 320 2,665.00 10 35 9
36 5
1 6,715 735 539.1 575.8 2
7 4
13 30 6
1 819.00 28,246 320 2,534.00 10 30 6
34 7
6 6,763 745 593.3 538.2 2
11 4
13 30 5
1 829.00 28,401 322 2,500.00 10 26 6
34 5
11 4
6,763 2
7 4
13 30 5
1 836.00 28,581 322 2,534.00 11 26 7
35 5
8 1
6,926 3
5 4
13 29 6
1 845.35 28,847 353 2,534.00 11 27 6
33 6
7 7,127 3
4 4
14 30 6
1 852.04 29,028 358 2,773.00 11 38 7
44 6
13 2
7,187 3
4 4
14 30 6
1 864.68 29,312 363 2,773.00 11 38 7
44 6
8 5
7,381 3
5 4
14 30 7
1 866.89 29,675 365 2,773.00 11 41 7
44 7
6 2
7,523 794 522.0 769.0 3
4 4
14 30 7
1 3
4 4
14 26 9
1 867.96 29,757 362 2,773.00 11 41 7
44 7
5 2
868.39 29,868 362 2,811.00 10 41 7
49 8
8 2
7,593 7,632 755 765 775 785 794 820 823 539.0 608.0 531.0 622.0 527.0 663.0 528.0 704.0 523.5 741.6 519.0 782.0 517.0 791.0 Source: City of Riverside, various departments (1) During the 2004/05 fiscal year, four police substations closed.
(2) Museum Fixed Exhibits - In 2007, the Riverside Municipal Museum remodeled a number of the spaces within the museum allowing the museum the opportunity to debut new exhibitions and to display more permanent collections in addition to partnering with others on exhibits that were available that year.
111
C i
InT i
City Vf Art &Innovatio