City of Camarillo Comprehensive Annual
Financial Report For the Fiscal Year Ended June 30, 2019
CITY OF CAMARILLO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page(s) INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................ i Governmental Finance Officers Association Certificate of Achievement For Excellence in Financial Reporting ............................................................................................... xii Directory of City Officials and City Organization Chart .................................................................... xiii FINANCIAL SECTION Independent Auditors’ Report ................................................................................................................. 1
Management's Discussion and Analysis (Unaudited) ............................................................................. 7
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position ........................................................................................................ 25 Statement of Activities ............................................................................................................. 26
Fund Financial Statements Governmental Fund Financial Statements
Balance Sheet – Governmental Funds ..................................................................................... 32
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .............................................................................................. 35 Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds ................................................................................................................ 36 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities and Changes in Net Position ......... 38
CITY OF CAMARILLO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page(s)
Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds ........................................................................ 40 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ............ 42
Statement of Cash Flows – Proprietary Funds ......................................................................... 44
Fiduciary Fund Financial Statements
Statement of Net Position – Fiduciary Funds .......................................................................... 50 Statement of Changes in Net Position – Fiduciary Funds ....................................................... 51
Notes to Basic Financial Statements .............................................................................................. 53
REQUIRED SUPPLEMENTARY INFORMATION (Unaudited): Budgetary Comparison Schedule – General Fund ....................................................................... 107 Budgetary Comparison Schedule – Development Fees Special Revenue Fund .......................... 108 Schedule of Changes in Net Pension Liability and Related Ratios .............................................. 109 Schedule of Plan Contributions – Pension ................................................................................... 110 Schedule of Changes in Net OPEB Liability and Related Ratios ................................................ 111 Schedule of Plan Contributions – OPEB ...................................................................................... 112 SUPPLEMENTARY INFORMATION Budgetary Comparison Schedules – Major Capital Projects Funds:
Camarillo Corridor Projects Area Fund ................................................................................. 114 Low-Moderate Income Housing Asset Fund ......................................................................... 115
Non-Major Governmental Funds:
Combining Balance Sheet ...................................................................................................... 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............. 122
CITY OF CAMARILLO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page(s) Budgetary Comparison Schedules – Non-Major Special Revenue Funds:
Article 8 TDA Fund ............................................................................................................... 125 Article 3 TDA Fund ............................................................................................................... 126 Gas Tax Fund ......................................................................................................................... 127 SB1 Fund ............................................................................................................................... 128 Maintenance Districts Special Revenue Fund ....................................................................... 129 Air Quality Management Fund .............................................................................................. 130 Community Development Block Grant Fund ........................................................................ 131 Library Fund .......................................................................................................................... 132 Cable PEG Fees Fund ............................................................................................................ 133
Budgetary Comparison Schedules – Non-Major Capital Projects Funds: Capital Improvement Projects Fund ...................................................................................... 134 Community Facilities District #1 Fund .................................................................................. 135
Budgetary Comparison Schedule –Debt Service Fund:
Library Debt Service Fund ..................................................................................................... 136
Internal Service Funds:
Combining Statement of Net Position ................................................................................... 138 Combining Statement of Revenues, Expenses, and Changes in Net Position ....................... 140 Combining Statement of Cash Flows .................................................................................... 142
Fiduciary Funds:
Combining Statement of Net Position ................................................................................... 146 Combining Statement of Changes in Assets and Liabilities .................................................. 148
STATISTICAL SECTION (Unaudited)
Table of Contents ......................................................................................................................................... 151 (Table 1) Net Position by Component ..................................................................................................... 152 (Table 2) Changes in Net Position ............................................................................................................ 154 (Table 3) Fund Balances, Governmental Funds ..................................................................................... 158 (Table 4) Changes in Fund Balances, Governmental Funds ................................................................. 160 (Table 5) Tax Revenues by Source, Governmental Funds .................................................................... 162 (Table 6) Assessed Value and Estimated Value of Taxable Property .................................................. 163 (Table 7) Direct and Overlapping Property Tax Rates ........................................................................... 164
CITY OF CAMARILLO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page(s)
(Table 8) Principal Property Tax Payers .................................................................................................. 165 (Table 9) Property Tax Levies and Collections ...................................................................................... 167 (Table 10) Ratios of Outstanding Debt by Type ....................................................................................... 168 (Table 11) Ratio of Net General Bonded Debt Outstanding ................................................................... 170 (Table 12) Direct and Overlapping Governmental Activities Debt ........................................................ 171 (Table 13) Legal Debt Margin Information ............................................................................................... 172 (Table 14) Pledged-Revenue Coverage – Sanitary District Fund ........................................................... 174 (Table 15) Demographic and Economic Statistics .................................................................................. 175 (Table 16) Full-time Equivalent City Government Employees by Function/Program ........................ 176 (Table 17) Operating Indicators by Function/Program ............................................................................ 178 (Table 18) Capital Asset Statistics by Function/Program ........................................................................ 180 (Table 19) Principal Employers .................................................................................................................. 182
City of Camarillo
Department of Finance 601 Carmen Drive Camarillo, California 93010 805-388-5320 November 27, 2019
i
Honorable Mayor and Members of the City Council City of Camarillo, California State law requires all general-purpose local governments, within six months of the close of each fiscal year, to publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, the City of Camarillo (City) is pleased to submit its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2019. Responsibility for the accuracy of the data and the fairness of presentation, including all notes and disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All material statements and disclosures necessary for the reader to obtain a reasonable understanding of the City’s financial activities have been included. City 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 GAAP. Because the cost of internal controls should not outweigh the anticipated benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements. While traditionally addressed to the governing body of the City, this report is also intended to provide relevant financial information to the citizens of the City of Camarillo, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report. Lance, Soll and Lunghard, LLP, a Certified Public Accountant firm selected by the City Council to perform the audit of the financial statements for the fiscal year ended June 30, 2019, has audited the City’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Camarillo’s financial statements for the fiscal year ended June 30, 2019, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report.
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the 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 GOVERNMENT The City of Camarillo was incorporated in 1964 under the general laws of the State of California. Since the early 1900s, Camarillo has been an agricultural community that has evolved into a rural, suburban community on the outskirts of the Los Angeles metropolitan area with a balanced base of land uses established under the City’s General Plan. Camarillo is a city of 69,880 residents located in the center of Ventura County (estimated population of 856,598, as of January 1, 2019). It has an area of approximately 20 square miles and is situated in the Pleasant Valley area of the vast agricultural Oxnard Plain. Geographically, Camarillo is midway between the cities of Los Angeles and Santa Barbara on Highway 101, nine miles inland from Naval Base Ventura County Point Mugu and the Pacific Ocean. The City operates under the council-manager form of government. The City Council consists of five members elected by the community at large for overlapping four-year terms. The Mayor is selected from the City Council members and serves a one-year term. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and appointing a City Manager and City Attorney. The City Council members also serve as the governing body of the following component units of the City:
Camarillo Community Development Commission Camarillo Sanitary District Board Camarillo Capital Improvement Corporation Camarillo Public Finance Authority Camarillo Industrial Development Authority Camarillo Library Board
While not a component unit of the City, City Council members do serve as a governing body of the Successor Agency to the Camarillo Community Development Commission.
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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The City Council appoints resident members to the following:
Advisory Commissions/Boards/Committees Planning Commission Rent Review Mediation Commission Camarillo Ranch Foundation Board Community Development Block Grant (CDBG) Citizen Loan Committee Investment Committee Camarillo Council on Aging
Ventura County Boards Area Agency on Aging Advisory Board Area Housing Authority Commission Air Pollution Control District Advisory Committee Citizens Transportation Advisory Committee
The City is a “contract” city, meaning that various services are provided through contracts with other public and private agencies, while other services are delivered by the City’s own employees. The City provides a full range of services, including:
Contractual services City provided services
Building and Safety City Administration Landscape Maintenance Community Development (planning/zoning) Law Enforcement and Animal Control Public Improvements Library Operations Street & Landscape Maintenance Major Capital Projects Traffic Engineering Solid Waste Wastewater Street Sweeping Water Transit
The City is within the Ventura County Fire District, the Camarillo Health Care District, and the Pleasant Valley Recreation and Parks District, but exercises no control over them. In 1965, the director of Water Works District No. 5, after providing the township of Camarillo with water from wells for many years, voluntarily turned over the operation and assets to the newly incorporated City of Camarillo. By December 1966, the City acquired the Camarillo Sanitary District, which became a subsidiary district of the City, as some of the boundaries were outside the existing city limits. The City seal was originally based on the sanitary seal on the sanitation workers’ uniforms as designed by Basil Trueblood, a sanitation employee who retired in 1977. The design was modified to include a representation of Don Adolfo Camarillo, the City’s namesake, on his horse, , and was adopted by the City.1
1Source: ‘Camarillo and other Remembrances’ by The Honorable Stanley J. Daily, Mayor Emeritus, City of Camarillo.
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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In defining the reporting entity, we have included the City’s component units, which are the Camarillo Community Development Commission, Camarillo Sanitary District Board, Camarillo Capital Improvement Corporation, Camarillo Public Finance Authority, Camarillo Industrial Development Authority, and the Camarillo Library Board. These component units essentially function as departments of the City and therefore have been included as an integral part of the City’s financial statements. Additional information on these legally separate entities can be found in Note 1a in the Notes to Basic Financial Statements. The City Council is required to adopt an annual balanced budget no later than June 30 of each year. Budgets are adopted annually by the Council by resolution, and are prepared for each fund in accordance with its basis of accounting. The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are required to submit appropriation requests to the City Manager by March of each year. The City Manager, Director of Finance, key department employees, and the City Council hold study sessions to provide an opportunity for public input. The proposed balanced budget is presented to the City Council for adoption prior to June 30. The City maintains budgetary controls to ensure compliance with provisions embodied in the annual budget approved by the City Council and the Camarillo Sanitary District Board. The City Council approves operating and capital appropriations at the fund and department levels. The City Manager has the authority to transfer between expenditure accounts and between funds of the City and the Camarillo Sanitary District, as long as no funding source incompatibility exists, and provided those changes do not increase overall appropriations in either component unit. The level of budgetary control is established at the fund level. The Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager’s office actively participates in the development and management of the annual budget. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Annual appropriations lapse at fiscal year-end. Operating program appropriations supported by a purchase order, including grants and capital outlays, may be carried over from one budget year to the next. Appropriation balances in capital projects, which exclude capital outlays, may be carried over from one budget year to the next with approval of the City Manager. Budget-and-actual comparisons are provided in this report. For the General Fund and Major Special Revenue Funds, the comparison is presented as part of the Required Supplementary Information. For other major governmental funds, this comparison is presented in the Supplementary Information section of this report.
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.
Ventura County continues to be an ideal location for business interests in Southern California. The area’s mild climate, coastal access, proximity to the greater Los Angeles area, skilled workforce, and the only deep-water port between Los Angeles and San Francisco, all contribute to the county’s business allure. A wide range of companies located in Camarillo, ranging from the premium outlets to manufacturing, provides a strong economic base for sales tax revenue and employment opportunities. During the current fiscal year, the City issued 485
business licenses for new commercial, industrial, and service companies. Of the City’s top three General Fund revenues, sales tax revenue of $15.3 million in FY 2018/19 provided 35.0% of the General Fund revenue, and 13.5% of the City’s total revenue. Sales tax revenue increased 9.3% from prior fiscal year primarily due to the State’s new automation system which resulted in funding for FY 2017/18 being paid to the City in FY 2018/19.
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Perc
ent C
hang
e
Sale
s (in
mill
ions
)
Fiscal Year
Sales Tax Received by Fiscal Year
Sales Tax Revenue Percent Change
Sources: City of Camarillo
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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Property tax is the second largest General Fund revenue, providing 32.6% of General Fund revenue and 12.8% of the City’s total revenue, with $14.3 million received in FY 2018/19, which is an increase of 4% from prior fiscal year. Total local secured and unsecured assessed valuation was $13.2 billion, an increase of 4.64% from the prior fiscal year; however, the housing market has continued to decline due to slightly increasing housing prices and fluctuating mortgage rates for housing listed for sale. There were 234 new residential and commercial building permits issued during the current fiscal year, with a total valuation of $56.3 million. Additionally, Camarillo’s median home price was $625,000, reflecting a 2.3% decrease compared to June 2018.
Camarillo has 13 existing retail properties over 30,000 square feet that total 2,495,641 square feet. The retail vacancy rate of 3.1% at June 30, 2019 was lower than the total Ventura County retail market vacancy rate of 5.9%. The industrial vacancy rate increased from 3.7% in prior fiscal year to 4.5%, with a total inventory of 11.1 million square feet. The commercial vacancy rate of 21.1% is higher than the total Ventura County office market rate of 16.0%.
The City’s unemployment rate slightly decreased from 3.5% in the prior fiscal year to 3.3% in June 2019, while the unemployment rate for Ventura County has remained steady at 3.6%. During FY 2018/19 Camarillo employers reduced their labor force by nearly 400 jobs.
-3.00%-2.00%-1.00%0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Perc
ent C
hang
e
Asse
ssed
Val
ue (i
n m
illio
ns)
Calendar Year
Assessed Property Value Trend
Assessed Value Percent Change
Sources: Ventura County Auditor-Controller
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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The economy of Camarillo benefits from several attractions such as the Premium Outlets and Promenade, Old Town Camarillo, Adolfo Camarillo Ranch, Camarillo Public Library, Commemorative Air Force WWII aviation museum, and the Western Foundation of Vertebrate Zoology repository for ornithological specimens. Annual community events attract thousands of local residents and visitors throughout the year, from the summer Concerts in the Park and the Fiesta and Street Fair, to the July 4th Celebration and the Camarillo Holiday Parade. Camarillo has three golf courses and a 55 acre sports park that provides facilities for entertainment and sports tournaments. The City has been a member of the Ventura-Oxnard-Camarillo Tourism Business Improvement District (VOCTBID) since April 2011 to market and promote tourism and lodging businesses in the member cities. In September 2014, the hotels within the City formed the Camarillo Tourism Marketing District (CTMD) to increase tourism in Camarillo by marketing the area to potential visitors. The Transient Occupancy Tax is a General Fund revenue source for the City, with annual revenues of $2.7 million in the current fiscal year. The City is a contributor to the Economic Development Collaborative (EDC), which was established to promote jobs, economic growth, and maintain economic vitality. EDC focuses on attraction, retention, and expansion of businesses in the County through economic development programs and funding assistance and is a business resource for companies of all sizes doing business in the County.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
-
10,000
20,000
30,000
40,000
50,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Une
mpl
oym
ent R
ate
Calendar Year
Employment Factors
Employment, All Industries Per Capita Income Unemployment Rate
Sources: CA Employment Development Department, UCSB Economic Forecast project
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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MAJOR INITIATIVES General Fund – Projected General Fund revenues continue to exceed budgeted expenditures for the current fiscal year. Additionally the General Fund provided transfers to several other funds including the Citywide Lighting & Landscape Maintenance District Funds and the Transit Fund in order to support on-going operations of the City where expenditures exceeded revenue received. Staff continues to pursue options to minimize General Fund subsidies. Cash Management Policies and Practices – When monies are deemed investable, they are placed in the State of California Local Agency Investment Fund (LAIF), U.S. Treasury, Federal Agency securities, or Certificates of Deposits (CD’s) maturing in five years or less. The City’s investment portfolio at June 30, 2019, included $108.7 million invested in LAIF, $101.4 million invested in U.S. Government securities, and $4.2 million in CD’s. Funds placed with LAIF can be withdrawn with a same-day notice, providing the City with daily liquidity, while investment in U.S. Government securities and CD’s provide portfolio diversification. All investment vehicles offer the City outstanding security and are in compliance with the City’s Investment Policy. The City has an Investment Committee consisting of two City Councilmembers plus two citizens with financial/investment backgrounds. The City Manager/City Treasurer, Assistant City Manager, Director of Finance, Assistant Director of Finance, and Accounting Manager provide staff support. The Investment Committee meets monthly to review the cash and investment position of the City. The Investment Policy is reviewed annually by the Investment Committee and the City Council. Investment-related policy changes are recommended as necessary. Long-term Financial Planning – With the continued goal of Camarillo to be a safe and enriched city where people can live, work, and play, special emphasis has been given to evaluate the City’s current facilities and activities, as well as their ability to continually meet current and future needs. The City’s Five-Year General Fund Fiscal Forecast project is utilized in long-range budgeting and cash flow projections to ensure that funding for the City’s future needs are being met through prudent investments, conservative expenditures, and efficient operations. This multi-year strategy towards fiscal sustainability for the General Fund focuses on maintaining a healthy fund balance. In addition to prudent fiscal management and forward looking budget projections, the City follows a fund reserve policy set by the Council that is in compliance with Government Accounting Standards Board (GASB) Statement No. 54. As of June 30, 2019, $21.5 million of the General Fund total fund balance of $51.2 million was committed as reserves. This reserve balance meets the Council’s reserve policy of 50% of the operating budget in the General Fund. SIGNIFICANT ACCOMPLISHMENTS AND RECOGNITION The City’s mission is to promote a high quality of life, economic vitality, and a safe environment for its citizens. Education is vital in having a strong and vibrant community. Adolfo Camarillo High School test scores in English, math, and science are far above the state average, and rank above the state average in key measures of college and career readiness.
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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The Camarillo Public Library continues its commitment to the community with an innovative resource center for all ages to enjoy and for future generations. The 67,294 square foot building includes the Friends of the Camarillo Library Book store, café, adult literacy center, community board room, conference room, technology lab, five study rooms, and the Esper A. Petersen Foundation Study Center. The children’s library includes a whimsical pirate ship, submarine, and several pieces of art work. The Russell Fischer Business Collection section of the library includes a workspace area for business research and collaboration,
corporate and community events, seminars, and training workshops with a focus on business related topics. The new Young Adult Area was opened in December 2017 to accommodate the needs of the many high school and college students utilizing the Library to study or work on class projects. The City received several significant recognitions throughout the year through the dedication of City staff. With adopted policies and practices that contribute to a sustainable community, the City was recognized by the Institute for Local Government with a Platinum Beacon Spotlight Award for Sustainability Best Practices in 2017.
Awards – 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 Camarillo for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2018. This was the fourteenth consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government entity must publish an easily readable and efficiently organized CAFR. This report 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 that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and the City will be submitting it to the GFOA to determine its eligibility for another certificate. A copy of the Certificate for the fiscal year ended June 30, 2018, is included in the Introductory Section of this CAFR. The GFOA also awarded a Certificate of Achievement for Distinguished Budget Presentation to the City of Camarillo for its Operating and Capital Budgets for fiscal years 2018-2020. In order to be awarded a Certificate of Achievement, a government unit must publish budget documents of the highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s recommended practice on budgeting. The GFOA Certificate of Achievement is valid for the two years of the biennial budgets submitted for the award. Acknowledgements – I wish to acknowledge the excellent participation and professional contributions of the finance staff in the preparation of this document, in particular Assistant Finance Director Mark Uribe, Accounting Manager Brian Richie, Budget Analyst Rena Bassett, Senior Accountants Louise Choi, and Kristen Madary, Accounting Specialists, Leslie Parr, Janice Petry, and Natalie Segovia, and Finance Assistant, Bobbie Dame who are to be commended for their continued high level of performance. I would also like to express my appreciation to all departments within the City who provided assistance and support.
City of Camarillo Letter of Transmittal For the Fiscal Year Ended June 30, 2019
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Sincere appreciation is also expressed to City Manager Dave Norman, Assistant City Manager Tully Clifford, and members of the City Council, for their support in planning and conducting the financial operations of the City in a responsible and forward-looking manner. Sincerely,
Genie Rocha Director of Finance
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CITY OF CAMARILLOORGANIZATIONAL STRUCTURE AND DIRECTORY OF CITY OFFICIALS
Current Planning Economic
Development & Revitalization
Environmental Review
General Plan Code Compliance Comprehensive
Planning Community Devel.
Block Grant Building & Safety
Risk Management Human Resources Information Systems Geographic Info
Systems Facility Maintenance Fleet Maintenance Telecommunications Audio-Visual Library Operations
Private Project Devel. Capital Project Devel. Mapping & Records Public Works Inspection Transit/Transport.
Engineering Water Wastewater Street/Landscape
Maintenance Storm Water System
Maintenance
Public Information Agendas/Minutes Public Hearings Elections Records
Management Nonprofit Solicitor
Permits Bingo Licenses Dog Licenses
Accounting Operating Budget Payroll Financial Reporting Business Tax Utility Billing Cash Management Purchasing Debt Service
Patrol Crime Prevention Accident Prevention Investigations School Resources Youth Services Citizen Patrol Disaster Assistance
Response Team (DART)
CAMARILLO RESIDENTS
Dave Norman City Manager
(7.5)
Planning Commission (5)
Brian A. Pierik City Attorney
(Contract)
Carmen Nichols Director
Admin. Services (15.5)
Joe Vacca Director
Comm. Development (14)
Jeffrie Madland City Clerk
(3.75)
Genie Rocha Director Finance
(20)
Dave Murray Police Commander
(Contract- Ventura County)
Tully Clifford Assistant City Manager
Dave Klotzle Director
Public Works (80)
Jeanette L. ‘Jan’McDonald
Vice-Mayor
CharlotteCraven
Councilmember
Kevin B. Kildee
Councilmember
BillLittle
Councilmember
Economic Development Refuse/Recycling Community Service Grants Emergency Operations Center Crossing Guards
Charlotte Craven
Councilmember
Tony Trembley
Vice-Mayor
Kevin B. KildeeMayor
Shawn Mulchay
Councilmember
SusanSantangelo
Councilmember
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FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council City of Camarillo, California Report on the Financial Statements 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 City of Camarillo, California, (the City) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022
An Association of Independent Accounting Firms
To the Honorable Mayor and Members of the City Council City of Camarillo, California
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 Camarillo, California, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the general fund and development fees special revenue fund, the schedule of changes in net pension liability and related ratio, the schedule of plan contributions pension, the schedule of changes in net OPEB liability and related ratios, and the schedule of plan contributions - OPEB be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
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To the Honorable Mayor and Members of the City Council City of Camarillo, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 27, 2019 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Brea, California November 27, 2019
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
The management of the City of Camarillo provides this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2019. Please consider this information in conjunction with the additional information furnished in the Letter of Transmittal, which is located in the Introductory Section of this report. A. FINANCIAL HIGHLIGHTS
At June 30, 2019, the City’s net position (excess of assets and deferred outflows over liabilities and deferred inflows) was $553.0 million. Included is $142.9 million of unrestricted and available funds in order to meet the City’s ongoing operations. The City also reported positive balances in every category of net position for the governmental and business type activities (as outlined on page 25).
During the fiscal year ended June 30, 2019, the City’s total net position, as restated, increased by
$23.7 million. Governmental activities net position increased by $11.6 million while business-type activities net position increased by $12.1 million, when compared to prior fiscal year. Detailed explanations are provided later in this discussion.
The City’s governmental funds, as restated, reported a combined ending fund balance of
$119.7 million, which is an increase of $1.0 million compared to prior fiscal year. Included in the balance is a restatement of $0.8 million to report property purchased for resale in prior years that was not previously recorded in the fund financial statements. The ending fund balance is identified primarily as follows: $51.2 million committed (42.7%), $50.2 million restricted (41.9%), and $7.1 million assigned (5.9%).
At the end of FY 2018/19, unrestricted fund balance (which includes committed, assigned, and
unassigned components of fund balance) in the General Fund totaled $62.2 million, or 172.2%, of total general fund expenditures. When adjusted for the committed and assigned components of fund balance, the amount available for ongoing operations at the discretion of the City is reduced to $10.9 million, or 30.2%.
The City’s total outstanding debt decreased by $0.9 million during FY 2018/19, as a result of
principal payments on bonds. See Long Term Debt Note 7 in the basic financial statements for additional information.
B. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis section is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. The basic financial statements include the City (primary government) and all legally separate entities (component units) for which the government is financially accountable. The City’s component units consist of the following: Camarillo Community Development Commission, Camarillo Sanitary District Board, Camarillo Capital Improvement Corporation, Camarillo Public Finance Authority,
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Camarillo Industrial Development Authority, and the Camarillo Library Board. These component units have been included in the basic financial statements as an integral part of the primary government using the blended method of reporting. Government-Wide Financial Statements Government-wide financial statements provide readers with a broad view of the City’s financial condition using the accrual basis of accounting, which is similar to the accounting method used by the majority of private-sector companies. The Statement of Net Position presents information on all of the City’s assets (including infrastructure) and deferred outflows, as well as all liabilities (including long-term debt) and deferred inflows, with the difference reported as net position. Certain interfund activities have been eliminated as prescribed by GASB Statement No. 34. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the city is improving or deteriorating. In order to assess the overall health or financial condition of the City, other non-financial factors should also be taken into consideration. These factors include changes in the City’s property tax base and the condition of the City’s infrastructure. The Statement of Activities presents information showing how the City’s net position changed during the fiscal year. All of the current fiscal year’s revenues and expenses are taken into account and all changes in net position are reported as soon as the underlying event occurs, regardless of timing of related cash flows. Government-wide financial statements distinguish governmental activities from business-type activities. Governmental activities of the City include general government, public safety, economic development, cultural art services, highways and streets, and library operations, which are primarily supported by taxes, intergovernmental revenues, and charges for services. Business-type activities of the City include water utility, sanitary district, solid waste, and transit, which are intended to recover all or a majority of their costs through charges for services. The government-wide financial statements can be found on pages 25-27 of this report. Fund Financial Statements Fund financial statements provide readers with detailed financial information about the City’s major funds. Some funds are required to be established either by state law or by bond covenants, while some funds are established by management to control and manage cash flow for particular purposes, or to demonstrate that legal requirements for using certain taxes, grants and other resources have been met. The City uses fund accounting to maintain control over resources that have been segregated for specific activities or objectives and to ensure and demonstrate compliance with finance-related legal or contractual requirements.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
The fund financial statements include statements for each of the three categories of activities - governmental, proprietary, and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The proprietary (business-type) and fiduciary activities are prepared using the economic resources measurement focus and the accrual basis of accounting. Governmental Funds - The governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds financial statements focus on current financial resources, which emphasize near-term inflows and outflows of spendable resources, as well as balances of spendable resources at the end of the fiscal year. This information is essential in evaluating the City’s near-term financial requirements. To better understand the City’s long-term and short-term requirements, it is useful to compare the City’s governmental fund statements with the governmental activities in the government-wide financial statements. Reconciliations are provided for both the governmental fund balance sheet and the statement of revenues, expenditures, and changes in fund balances, in order to facilitate this comparison. The major governmental funds include the General Fund, Development Fees Special Revenue Fund, Camarillo Corridor Projects Area Fund, and Low-Moderate Income Housing Asset Fund, which are reported in detail in the governmental fund financial statements. Data from the remaining governmental funds are shown in the aggregate as other non-major governmental funds. Individual fund data for other non-major governmental funds is provided in the form of supplementary information in the report. The governmental fund financial statements can be found on pages 32-38 of this report. Proprietary Funds - The proprietary funds are used to account for services for which the City charges external customers or internal departments of the City. The City maintains two types of proprietary funds: enterprise funds and internal service funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements in greater detail. The City uses enterprise funds to account for its water utility, sanitary district, solid waste, and transit operations.
Internal service funds are an accounting mechanism used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its Risk Management Fund, Information Services Fund, Vehicles & Equipment Fund, City Hall Facility Fund, Corporation Yard Facility Fund, Police Facility Fund, Library Facility Fund, Camarillo Ranch Facility Fund, and Chamber of Commerce Facility Fund. Because internal service funds predominantly benefit the governmental rather than business-type activities, they have been included within governmental activities in the government-wide financial statements, but combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of supplementary information in the report.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
The proprietary fund financial statements can be found on pages 40-47 of this report. Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of external parties. The City’s fiduciary activities are reported in separate financial statements. These activities are excluded from the City’s other financial statements because the resources of these funds are not available to support the operations of the City. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The fiduciary fund financial statements can be found on pages 50-51 of this report. Notes to Basic 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 basic financial statements can be found on pages 53-104 of this report. Required Supplementary Information In addition to the basic financial statements, this report also presents certain Required Supplementary Information (RSI), including the City’s budgetary comparison schedules for the General Fund and Development Fees Special Revenue Fund, schedule of changes in net pension liability and related ratios, schedule of plan contributions, schedule of changes in net Other Post-Employment Benefits (OPEB) liability and related ratios, and schedule of contributions. RSI can be found on pages 107-112 of this report. Supplementary Information Budgetary comparison schedules for Camarillo Corridor Projects Area Fund and Low-Moderate Income Housing Asset Fund, combining statements and budgetary comparison schedules for non-major governmental funds, and combining statements for internal service funds and agency funds are presented immediately following the RSI. Supplementary information can be found on pages 114-149 of this report. Statistical Section Statistical tables regarding financial trends, revenue capacity, debt capacity, demographic and economic information, and operating information can be found on pages 152-182 of this report. C. GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Position Net position is a useful indicator of the City’s financial position over time. For the fiscal year ended June 30, 2019, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $553.0 million. The following is the condensed Statement of Net Position for the fiscal years ended June 30, 2019 and 2018.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
City of Camarillo’s Net Position As of June 30, 2019 and 2018
2019 (restated) 2018
2019 (restated) 2018
2019 (restated) 2018
142,954,840$ 141,627,405$ 99,488,877$ 93,664,377$ 242,443,717$ 235,291,782$ Capital assets (net of depreciation) 271,080,397 260,784,615 100,174,535 95,114,772 371,254,932 355,899,387
Total Assets 414,035,237 402,412,020 199,663,412 188,779,149 613,698,649 591,191,169
Deferred Outflows of Resources 3,835,251 4,276,339 3,007,925 3,335,011 6,843,176 7,611,350
Current and other liabilities 5,440,246 4,536,702 3,563,860 5,516,497 9,004,106 10,053,199 Long-term liabilities 25,623,380 27,395,043 30,203,829 30,133,738 55,827,209 57,528,781
Total Liabilities 31,063,626 31,931,745 33,767,689 35,650,235 64,831,315 67,581,980 Deferred Inflows of Resources 1,678,767 1,191,999 1,081,097 766,677 2,759,864 1,958,676
265,475,397 254,859,084 83,485,675 77,742,690 348,961,072 332,601,774 Restricted 50,227,531 49,904,125 10,848,811 14,203,390 61,076,342 64,107,515 Unrestricted 69,425,167 68,801,406 73,488,065 63,751,168 142,913,232 132,552,574
Total Net Position 385,128,095$ 373,564,615$ 167,822,551$ 155,697,248$ 552,950,646$ 529,261,863$
TotalActivitiesBusiness-Type
ActivitiesGovernmental
Net investment in capital assets
Current and other assets
Net Position:
At June 30, 2019, the largest portion of net position consisted of the City’s net investment of $349.0 million (63.1%) in capital assets. This component represents the total amount of funds required to acquire those assets, less any outstanding related debt and accumulated depreciation. The City uses these capital assets to provide services to citizens. The capital assets of the City are not sources of income for repayment of debt as most assets are not revenue generating and generally are not liquidated to repay outstanding debt. Debt service payments are funded from other sources available to the City. An additional portion of the City's net position in the amount of $61.1 million (11.0%) is subject to external restrictions on how the funds may be used. The remaining net position of $142.9 million (25.9%) is unrestricted and may be used at the City’s discretion to meet ongoing operating needs. For the fiscal years ended June 30, 2019 and 2018, the City reported positive balances in every category of net position for governmental and business-type activities. Changes in net position are due to the following:
Decrease of $3.0 million in restricted net position was primarily due to a $3.3 million decrease in business-type activities for completed capital projects in the Water Utility Fund offset by a minor increase of $0.3 million in restricted net position for governmental activities.
Increase of $10.4 million in unrestricted net position was primarily due to increases of $9.8 million and $0.6 million in the business-type and governmental activities, respectively, from timing of capital projects and normal operations.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
The following chart shows the comparison of the three components of net position for fiscal years 2018/19 and 2017/18:
$-
$100
$200
$300
$400
$500
$600
Net investment inCapital Assets
Restricted Unrestricted Total Net Position
City of Camarillo's Net PositionAs of June 30, 2019 and 2018
6/30/2019 6/30/2018
Statement of Activities The Statement of Activities shows how the City’s net position changed during the fiscal year. The $23.7 million (4.5%) increase in the City’s net position, as restated, is summarized in the following pages by governmental and business-type activities.
M
illio
ns
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
A condensed Statement of Activities for the fiscal years ended June 30, 2019 and 2018 is presented below.
2019 2018 2019 2018 2019 2018Revenues:
Program Revenues:Charges for services 8,030,429$ 8,842,131$ 36,125,492$ 36,426,477$ 44,155,921$ 45,268,608$
5,962,340 5,303,078 1,351,913 1,307,688 7,314,253 6,610,766 8,044,164 217,681 5,469,803 2,174,438 13,513,967 2,392,119
General Revenues:Taxes 39,547,817 37,165,979 1,254,508 1,191,206 40,802,325 38,357,185 Investment earnings 4,178,236 1,176,701 2,730,408 756,218 6,908,644 1,932,919 Other 186,249 136,807 125,536 1,988,256 311,785 2,125,063
Total Revenues 65,949,235 52,842,377 47,057,660 43,844,283 113,006,895 96,686,660
Expenses:General government 7,273,382 7,702,944 - - 7,273,382 7,702,944 Public safety 19,407,941 19,190,794 - - 19,407,941 19,190,794 Economic development 1,447,570 906,942 - - 1,447,570 906,942 Cultural arts and library services 3,913,166 3,923,701 - - 3,913,166 3,923,701 Highways and streets 21,407,999 23,805,001 - - 21,407,999 23,805,001 Interest on long-term debt (unallocated) 197,647 204,320 - - 197,647 204,320 Water utility - - 14,237,093 15,043,393 14,237,093 15,043,393 Sanitary district - - 11,225,898 11,653,295 11,225,898 11,653,295 Solid waste - - 7,421,778 6,704,503 7,421,778 6,704,503 Transit - - 2,643,638 2,494,729 2,643,638 2,494,729
Total Expenses 53,647,705 55,733,702 35,528,407 35,895,920 89,176,112 91,629,622 Increase in Net Position before Transfers 12,301,530 (2,891,325) 11,529,253 7,948,363 23,830,783 5,057,038
Transfers (596,050) (1,160,000) 596,050 1,160,000 - - - (5,298,224) - - - (5,298,224)
Increase (Decrease) in Net Position 11,705,480 (9,349,549) 12,125,303 9,108,363 23,830,783 (241,186) Net Position - Beginning of Year 373,564,615 384,214,500 155,697,248 146,405,047 529,261,863 530,619,547
(142,000) (1,300,336) - 183,838 (142,000) (1,116,498)Net Position - End of Year 385,128,095$ 373,564,615$ 167,822,551$ 155,697,248$ 552,950,646$ 529,261,863$
Total
Statement of Activities
Governmental Business-Type
As of June 30, 2019 and 2018
Operating contributions and grantsCapital contributions and grants
Special Item
Restatement of Net Position
Activities Activities
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Governmental Activities Total revenues and expenses for governmental activities were $65.9 million and $53.6 million, respectively, along with net transfers out of $0.6 million and a prior period restatement of $0.1 million. Governmental activities increased the City’s net position by $11.6 million, compared to a decrease of $9.3 million in the prior fiscal year, for a net increase of $20.9 million. Revenues increased $13.1 million from prior fiscal year due to the factors below:
General Tax revenue increased $2.4 million, or 6.4%, primarily due to an increase in Sales tax revenue of $1.3 million (9.3%) and growth in property tax revenue of $0.7 million (3.9%).
Investment earnings increased $3.0 million primarily due to increased securities invested, higher average annual yield, and unrealized net gain on fair value adjustment.
Contributions increased $7.8 million due to increases in donated infrastructure by developers as compared to the prior fiscal year in which there was no donated infrastructure.
Governmental Activities - Revenues by Source For the Fiscal Year Ended June 30, 2019
(Total Revenue: $65.9 million)
Charges for services12.2%
O perating contributions and
grants9.0%
Capital contributions and grants
12.2%
Taxes60.0%
Investment earnings6.3%
O ther0.3%
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Total expenses for governmental activities were $53.6 million, $2.1 million less than the prior fiscal year. This decrease was primarily driven by a decline of $2.4 million in Highways and streets expenditures which included a $1.4 million decrease of capital related expenditures that did not meet the City’s capitalization threshold in FY 2017/18, and were therefore reported as a functional expense in the Statement of Activities. Decreases in Pension and OPEB expense (total of $0.4 million) and Internal Service Fund allocated costs ($0.5 million) drove the remaining decline in Highways and Streets expenditures and the overall functional expense on the Statement of Activities as compared to prior year. Program revenues totaling $22.0 million offset total expenses as follows:
Users benefitting directly from programs contributed $8.0 million in charges for services. Operating contributions and grants from outside sources or other governments totaled $6.0 million. Capital contributions and grants from outside sources or other governments totaled $8.0 million.
As a result, total expenses funded by general revenues totaled $43.9 million.
Governmental Activities Revenues and Expenses by Function/Program
For the Fiscal Year Ended June 30, 2019 (Excluding Interest on Long-term Debt)
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
$22
$24
GeneralGovernment
PublicSafety
EconomicDevelopment
Cultural Arts andLibrary Services
Highways &Streets
Mill
ions
Program Revenue Expenses
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Functional expenses for the fiscal years ended June 30, 2019 and 2018 were as follows (amount in millions):
Percent Change Percent Change2019 2018 2018-2019 2019 2018 2018-2019
General Government 7.3$ 7.7$ -5.2% (6.3)$ (6.7)$ -6.0%Public Safety 19.4 19.2 1.0% (16.7) (15.9) 5.0%
1.4 0.9 55.6% (1.2) (0.5) 140.0%Cultural Arts and Library Services 3.9 3.9 0.0% (3.4) (3.4) 0.0%Highways and Streets 21.4 23.8 -10.1% (3.8) (14.7) -74.1%Interest on long-term debt 0.2 0.2 0.0% (0.2) (0.2) 0.0%
Total 53.6$ 55.7$ -3.8% (31.6)$ (41.4)$ -23.7%
Economic Development
Net (Expenses) RevenuesTotal Expenses
In total, changes in net expenses decreased $9.8 million, or 23.7%, from prior fiscal year. Highlights of the changes are as follows:
Highways and streets net expense decreased $10.9 million primarily due to an increase in developer capital contributions of $8.0 million versus prior year and the aforementioned $2.4 million decrease in functional expenses versus prior year.
Public safety net expense increased $0.8 million primarily due to a decline in building permit revenue of $0.7 million versus prior year.
Economic development net expense increased $0.7 million versus prior year primarily due to $0.5 million in expenses to improve Land held for resale.
General government net expense decreased $0.4 million primarily due to reduced pension related expenses year over year.
Cultural arts and library services net expense was comparable with prior year net expense.
Business-type Activities Total revenues and expenses for business-type activities were $47.0 million and $35.5 million, respectively, along with net transfers in of $0.6 million. Business-type activities increased the City’s net position by $12.1 million, compared to an increase of $9.1 million in the prior fiscal year, for a net increase of $3.0 million.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Revenues increased $3.2 million from prior fiscal year due to the following factors below:
Capital contributions and grants increased $3.3 million mainly from developer contributions for water utility activities of $2.6 million and for sanitary district activities of $0.7 million.
Charges for services decreased $0.3 million mainly from a $1.2 million decrease in water utility revenue due to a decline in customer usage consumption. This decrease was offset by an upturn in revenue of $0.6 million and $0.4 million respectively for solid waste and sanitary district activities.
Operating contributions and grants revenue of $1.3 million remained consistent with prior year totals.
Net program revenue (excluding general revenues) in water utility and sanitary district activities were $4.2 million and $4.4 million respectively, while activities in transit and solid waste experienced a net expense of $1.0 million and $0.1 million respectively.
Business-type Activities - Revenues by Source For the Fiscal Year Ended June 30, 2019
Charges for services76.8%
Operating contributions and grants
2.9%
Capital contributions and grants
11.6%
Taxes2.6%
Investment earnings
5.8%
Other0.3%
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Total business-type expenses decreased $0.4 million from prior fiscal year, with the largest decrease in the water utility activities of $0.8 million primarily due to a reduction in pension expense of $0.5 million and a decrease in water purchase costs of $0.2 million. Expenses in the sanitary district decreased $0.4 million primarily from a reduction in pension related costs versus prior year. Solid waste expenses increased $0.7 million due to a rise in contracted rubbish collections expense. Transit expenses increased $0.1 million reflecting a nominal increase in standard operational expenses. Business-type Activities
Program Revenues and Expenses For the Fiscal Year Ended June 30, 2019
$- $2 $4 $6 $8
$10 $12 $14 $16 $18 $20
Water utility Sanitary district Solid waste Transit
Mill
ions
Program Revenue Expenses
D. FUND FINANCIAL STATEMENT ANALYSIS
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. Governmental Funds The focus of the City’s governmental funds is to provide information on short-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. At the end of FY 2018/19, the City’s governmental funds reported a combined ending fund balance of $119.7 million, an increase of $1.0 million from prior fiscal year. The majority of this increase was due to a restatement of $0.8 million of Land held for resale into the fund financials (See Restatement of Prior Year Balances Note 15 for further detail). Of the ending fund balance, $51.2 million is Committed, $50.2 million is Restricted, $7.1 million is Assigned, $0.3 million is Nonspendable leaving $10.9 million in Unassigned. See Fund Balances for Governmental Funds Note 9 for additional detailed information.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
The General Fund is the chief operating fund of the City. At the end of FY 2018/19, unassigned fund balance of the General Fund was $10.9 million, while the total General Fund balance was $67.9 million. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance and total fund balance to total expenditures. At June 30, 2019, unassigned fund balance was 28.7% of total General Fund expenditures and net transfers, while total fund balance was 178.5% of total expenditures and net transfers. Unassigned fund balance allows the City to address financial uncertainties with flexible fiscal resources.
The City’s General Fund balance increased $5.6 million (9.0%) compared to a rise of $3.5 million in the prior fiscal year. This $2.1 million net increase was primarily due to an upturn in investment earnings of $1.8 million, sales tax revenues of $1.3 million, and transfers in from the Gas Tax Fund of $1.8 million. These increases were offset by a decline in building permit revenue of $0.7 million and an increase in highways and streets expenditures of $2.1 million versus prior year. The Development Fees Special Revenue Fund balance increased $2.7 million (14.2%), compared to an increase of $1.9 million in the prior fiscal year. This $0.8 million net increase was primarily driven by increased revenue from traffic mitigation fees ($2.4 million versus $1.6 million prior year). The Camarillo Corridor Projects Area Fund balance decreased $6.4 million (34.6%), compared to a decline of $6.9 million in the prior fiscal year. This decline in fund balance was driven mainly from $5.3 million in construction costs to replace a deteriorating section of the Camarillo Hills conference center drain with a new covered box channel. The Low-Moderate Income Housing Asset Fund balance decreased $0.4 million (30.6%) compared to the fund balance remaining flat in the prior fiscal year. This decrease in fund balance was due mainly to allocated salary and benefit expenditures reported in the fund beginning in FY 2018/19. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Factors concerning these funds have been addressed in the discussion of government-wide financial analysis of business-type activities. E. GENERAL FUND BUDGETARY HIGHLIGHTS The City budget is revised over the course of the fiscal year through two types of budget amendments:
Amendments and appropriations approved by the City Manager consistent with City Council Policy after the beginning of the fiscal year to reflect capital, grant, and encumbrance carryovers for unspent appropriations of projects and purchases that have not yet been completed.
New appropriations approved by the City Council.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Amendments between original budget and final budget in FY 2018/19 resulted in increased budgeted revenues of $1.1 million, increased budgeted expenditures of $0.8 million, and increased budgeted net transfers out of $0.7 million. The General Fund experienced a net total favorable budget variance of $5.6 million when comparing actual amounts to the final budget for the current fiscal year. The budget reflected a positive variance in revenues of $2.1 million, primarily from investment earnings of $1.4 million, taxes of $0.7 million, charges for services of $0.2 million and subventions and grants of $0.1 million offset by a negative variance in licenses and permits revenues of $0.1 million and transfers in of $0.1 million. The budget also reflected a positive variance in total expenditures of $3.5 million, primarily due to decreases in net transfers out of $1.2 million, a timing difference in highways and streets planned expenditures of $0.7 million, decreases in cultural arts and library services of $0.4 million, lower than anticipated police services cost of $0.3 million, and an overall savings in City Council, City Manager, Community Development and Building and Safety activities. F. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets Including Infrastructure Capital assets including infrastructure of the City are those assets that are used in the operation of the City’s functions. At June 30, 2019, capital assets net of depreciation totaled $271.1 million for governmental activities and $100.2 million for business-type activities are recognized in the government-wide financial statements. This investment in capital assets includes land, buildings, utility systems, improvements other than buildings, infrastructure (roads, sidewalks, streetlights, etc.), machinery and equipment, and construction in progress. The total increase in the citywide investment in capital assets for FY 2018/19 was $16.4 million, or 4.41% ($11.3 million, or 4.16% increase, for governmental activities and $5.1 million, or 5.07% increase, for business-type activities). Major capital asset events included the following:
Governmental activities net increase of $7.8 million in Construction in Progress was primarily due to capital outlay on street and landscaping projects beginning during the current fiscal year, such as North Pleasant Valley Desalter Facility, Conference Center Drain, and annual street resurfacing projects. A net increase of $1.9 million in Land was due to several developer donated right of way easements during the current fiscal year.
Infrastructure for governmental activities had a net increase of $1.8 million over the prior fiscal
year, primarily due to $8.3 million in depreciation during the current fiscal year, offset by an addition of $10.2 million from pavement, curbs and gutters, sidewalks, and storm drains projects that were completed, including wastewater sewer improvements and annual street resurfacing projects.
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City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
Business-type utility systems increased $1.5 million and Construction in Progress increased $3.9 million over the prior fiscal year primarily due to water utility distribution and collection systems improvement projects that began and were completed during the fiscal year.
The following is a summary of the City’s capital assets as of June 30, 2019 and 2018:
See Capital Assets Note 5 in the Basic Financial Statements for additional information. Long-Term Debt At the end of FY 2018/19, the City had total outstanding revenue debt issues of $22.8 million. The City has no general obligation debt and non-city obligations are not included in the following table. All of the City’s bonds are backed by a pledge of certain revenues. Debt decreased overall by $1.0 million due to principal reduction as the result of on-going debt service payments. Additional information on the City’s long-term debt can be found in Long-Term Debt Note 7 of the Basic Financial Statements. The City’s long-term obligations as of June 30, 2019 and 2018 were as follows:
2019 2018 2019 2018 2019 2018Land 33,653,697$ 31,763,171$ 1,261,634$ 1,261,634$ 34,915,331$ 33,024,805$ Buildings 30,611,550 30,437,890 302,574 326,090 30,914,124 30,763,980 Utility Systems - - 83,774,852 82,229,448 83,774,852 82,229,448 Infrastructure 186,684,008 184,931,515 - - 186,684,008 184,931,515 Machinery and Equipment 4,034,406 4,337,430 3,692,727 4,080,400 7,727,133 8,417,830 Construction in Progress 16,096,736 8,328,429 11,142,748 7,199,993 27,239,484 15,528,422
Total Capital Assets 271,080,397$ 259,798,435$ 100,174,535$ 95,097,565$ 371,254,932$ 354,896,000$
ActivitiesGovernmental
Activities
City of Camarillo
(net of accumulated depreciation)
TotalBusiness-Type
Capital Assets
2019 2018 2019 2018 2019 2018
Revenue Bonds 5,605,000$ 5,900,000$ 17,227,163$ 17,926,702$ 22,832,163$ 23,826,702$
Activities Activities Total
City of Camarillo's Outstanding DebtRevenue Bonds
Governmental Business-Type
21
City of Camarillo Management’s Discussion and Analysis Fiscal Year Ended June 30, 2019
G. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET On June 12, 2019, the City Council adopted a structurally balanced $179.7 million annual budget for FY 2019/20, which provide services and projects that are essential to City of Camarillo residents. In establishing annual goals and objectives, the City Council affirmed the City’s commitment to maintain sound and conservative financial practices, with the objective of ensuring the City’s ability to provide a safe and enriched environment, increase effective communication with the community, provide cost-effective efficient services to the public, and to maintain a positive environment for new businesses and business retention. The budget for employee services in FY 2019/20 increased 6.0% to reflect employee salary band adjustments, increased healthcare costs, and retirement benefits. The City continues to meet its actuarially required contribution towards its pension plan with the California Public Employees Retirement System (CalPERS). Staff evaluated options to reduce long term pension liability and in FY 2018/19 the City Council authorized staff to establish a Pension Rate Stabilization Trust Fund where contributions can only be withdrawn for PERS expenditures. General fund revenues are projected at $43.4 million, a decrease of $0.1 million, or 0.3% from FY 2018/19. Sales Tax is projected to decrease slightly by 1.7% due to additional revenues recognized in FY 2018/19 as a result of payment delays from the State in the prior fiscal year. A budgeted reduction in building permit revenues is due to reduced levels of development activity compared to recent years. These year-over-year decreases are offset by a modest 4.5% growth projection in Property Tax revenue, primarily due to increasing home sale prices. General Fund expenditures are projected at $43.0 million in FY 2019/20, materially in line with the prior year budget with a slight decrease of $0.3 million, or 0.8%. The City plans and pre-funds capital projects over five fiscal years, ensuring that when a project is scheduled to begin, funding is available to move the project forward through completion. Several major capital projects are planned, including Northeast Pleasant Valley Regional Desalter Treatment Plant ($57.5 million), Annual Pavement Rehabilitation ($5.0 million), Pumping Station #3 Rehabilitation ($3.0 million), City Hall Office Expansion ($1.2 million), Camarillo Hills Drain Replacement ($1.0 million), Recycled Water Improvements-Electrical ($0.8 million), and Earl Joseph Drive Paving ($0.7 million). In summary, the City’s financial position remains in excellent condition and the City reaffirms its commitment to sound and conservative financial practices to ensure the City’s fiscal sustainability. H. REQUEST FOR INFORMATION This financial report is designed to provide citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the resources it receives. Questions about this report or requests for additional financial information should be directed to the City of Camarillo Finance Department, 601 Carmen Drive, Camarillo, California 93010, or call (805) 388-5320. This report is also available online at the City’s website at www.cityofcamarillo.org.
22
BASIC FINANCIAL STATEMENTS
23
24
25
CITY OF CAMARILLO
STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2019
Operating CapitalCharges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/ProgramsPrimary Government:Governmental Activities:
General government 7,273,382$ 979,326$ -$ -$Public safety 19,407,941 2,511,601 206,828 -Economic development 1,447,570 - 226,650 -Cultural arts and library services 3,913,166 76,653 460,570 -Highways and streets 21,407,999 4,462,849 5,068,292 8,044,164Interest on long-term debt 197,647 - - -
Total Governmental Activities 53,647,705 8,030,429 5,962,340 8,044,164
Business-Type Activities:Water utility 14,237,093 14,673,770 - 3,719,038Sanitary district 11,225,898 14,005,034 - 1,641,683Solid waste 7,421,778 7,264,338 15,644 -Transit 2,643,638 182,350 1,336,269 109,082
Total Business-Type Activities 35,528,407 36,125,492 1,351,913 5,469,803
Total Primary Government 89,176,112$ 44,155,921$ 7,314,253$ 13,513,967$
General Revenues:Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business license taxes Other taxesInvestment earningsOther
Transfers
Total General Revenues, Contributions and Transfers
Change in Net Position
Net Position at Beginning of Year
Restatement of Net Position
Net Position at End of Year
Program Revenues
See Notes to Financial Statements 26
Primary Government
Governmental Business-TypeActivities Activities Total
(6,294,056)$ -$ (6,294,056)$(16,689,512) - (16,689,512)(1,220,920) - (1,220,920)(3,375,943) - (3,375,943)(3,832,694) - (3,832,694)
(197,647) - (197,647)
(31,610,772) - (31,610,772)
- 4,155,715 4,155,715- 4,420,819 4,420,819- (141,796) (141,796)- (1,015,937) (1,015,937)
- 7,418,801 7,418,801
(31,610,772) 7,418,801 (24,191,971)
17,159,172 1,254,508 18,413,6802,655,564 - 2,655,564
15,283,516 - 15,283,5162,888,269 - 2,888,2691,409,557 - 1,409,557
151,739 - 151,7394,178,236 2,730,408 6,908,644
186,249 125,536 311,785 (596,050) 596,050 -
43,316,252 4,706,502 48,022,754
11,705,480 12,125,303 23,830,783
373,564,615 155,697,248 529,261,863
(142,000) - (142,000)
385,128,095$ 167,822,551$ 552,950,646$
Net (Expenses) Revenues and Changes in Net Position
See Notes to Financial Statements 27
28
29
30
Camarillo Corridor Projects Area Fund - This fund is used to account for land held for resale and bond proceeds as detailed in an Agreement between City of
Camarillo and City of Camarillo as Successor Agency to the Camarillo Community Development Commission.
Other Governmental Funds - This fund is the aggregate of all the non-major governmental funds.
Storm Drain Fees - This fund is used to account for fees received from new development to fund storm drainage related costs.
Signals Fees - This fund is used to account for signal fees received from new development to fund signal maintenance related costs.
Underground Utilities Fees - This fund is used to account for fees received from new development to fund underground utility related costs.
Street Improvements Fees - This fund is used to account for fees received from new development for street maintenance related costs.
Parking In-lieu Fees - This fund is used to account for fees received from business owners in the Old Town area to fund off-street parking facilities.
Low-Moderate Income Housing Asset Fund - This fund is used to account for the housing activities of the former Redevelopment Agency.
Bridge Policy Fees - This fund is used to account for fees received from developers based on land acreage for property to be developed to fund the cost of bridge
construction or addition.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund - This fund is used to account for resources which are not required legally or by sound financial management to be accounted for in a separate fund.
Development Fees Special Revenue Fund - This fund is used to account for specific fee revenues that are legally restricted to expenditures for particular purposes:
SIBA Fees - This fund is used to account for fees received from property owners within the Springville Interchange Benefit Area (SIBA) to defray the area's
construction cost.
Traffic Mitigation Fees - This fund is used to account for fees received from developers to accommodate and mitigate the adverse traffic impacts caused by new
development and fund the cost of maintaining regional and local roads.
31
CITY OF CAMARILLO
BALANCE SHEETGOVERNMENTAL FUNDSJUNE 30, 2019
Special Revenue Funds
Capital Projects Funds
GeneralAssets:Pooled cash and investments 60,048,347$ 21,216,627$ 6,032,188$ Receivables:
Accounts 3,809,532 - -Notes and loans - - -Accrued interest 346,910 111,965 48,804Grants - - -
Prepaid costs 115,531 - -Deposits 125,000 - -Due from other funds 739,500 - -Land held for resale - - 7,335,252Restricted assets:
Cash and investments 5,455,177 - -Cash and investments with fiscal agents - - -
Total Assets 70,639,997$ 21,328,592$ 13,416,244$
Liabilities, Deferred Inflows of Resources, and Fund Balances:Liabilities:Accounts payable 2,387,519$ -$ 1,114,515$ Accrued liabilities 293,135 - -Retentions payable 2,454 - 103,188Deposits payable 18,305 - -
Total Liabilities 2,701,413 - 1,217,703
Fund Balances: Nonspendable 240,531 - - Restricted 5,455,177 21,328,592 12,198,541 Committed 51,178,734 - - Assigned 143,016 - - Unassigned 10,921,126 - -
Total Fund Balances 67,938,584 21,328,592 12,198,541
Total Liabilities, Deferred Inflows of Resources, and Fund Balances 70,639,997$ 21,328,592$ 13,416,244$
Development Fees Special
Revenue
Camarillo Corridor
Projects Area
See Notes to Financial Statements 32
CITY OF CAMARILLO
BALANCE SHEETGOVERNMENTAL FUNDSJUNE 30, 2019
Assets:Pooled cash and investmentsReceivables:
AccountsNotes and loansAccrued interestGrants
Prepaid costsDepositsDue from other fundsLand held for resaleRestricted assets:
Cash and investmentsCash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources, and Fund Balances:Liabilities:Accounts payableAccrued liabilitiesRetentions payableDeposits payable
Total Liabilities
Fund Balances: Nonspendable Restricted Committed Assigned Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources, and Fund Balances
Capital Projects Funds
Other TotalGovernmental Governmental
Funds Funds
676,958$ 16,670,058$ 104,644,178$
- 337,832 4,147,364275,000 477,251 752,251
4,943 53,793 566,415- 77,967 77,967- 2,500 118,031- 40,000 165,000- - 739,500- 183,033 7,518,285
- - 5,455,177- 498,736 498,736
956,901$ 18,341,170$ 124,682,904$
1,352$ 604,659$ 4,108,045$ 7,202 50,515 350,852
- 20,294 125,936- 337,998 356,303
8,554 1,013,466 4,941,136
- 42,500 283,031948,347 10,296,874 50,227,531
- - 51,178,734- 6,988,330 7,131,346- - 10,921,126
948,347 17,327,704 119,741,768
956,901$ 18,341,170$ 124,682,904$
Low-Moderate Income
Housing Asset
See Notes to Financial Statements 33
34
35
CITY OF CAMARILLO
STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Special Revenue
Funds
Capital Projects
Funds
General
Revenues:
Taxes 36,476,603$ -$ -$
Licenses and permits 1,459,176 - -
Subventions and grants 206,828 - -
Charges for services 2,702,053 - -
Investment earnings 2,401,646 621,500 295,512
Fines and forfeitures 376,319 - -
Contributions and developer fees 32,832 3,220,897 -
Miscellaneous 20,844 - -
Total Revenues 43,676,301 3,842,397 295,512
Expenditures:
Current:
General government 6,879,367 - 104,481
Public safety 19,086,438 - -
Economic development 340,606 - 481,003
Cultural arts and library services 3,425,553 - -
Highways and streets 6,382,035 - -
Capital outlay 26,328 - 7,976,719
Debt service:
Principal - - -
Interest - - -
Total Expenditures 36,140,327 - 8,562,203
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,535,974 3,842,397 (8,266,691)
Other Financing Sources (Uses):
Transfers in 1,777,168 - 1,185,455
Transfers out (3,703,840) (1,185,455) -
Total Other Financing Sources
(Uses) (1,926,672) (1,185,455) 1,185,455
Net Change in Fund Balances 5,609,302 2,656,942 (7,081,236)
Fund Balances, Beginning of Year, as
previously reported 62,329,282 18,671,650 18,644,161
Restatements - - 635,616
Fund Balances, Beginning of Year, as restated 62,329,282 18,671,650 19,279,777
Fund Balances, End of Year 67,938,584$ 21,328,592$ 12,198,541$
Development
Fees Special
Revenue
Camarillo
Corridor
Projects Area
See Notes to Financial Statements 36
CITY OF CAMARILLO
STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Revenues:
Taxes
Licenses and permits
Subventions and grants
Charges for services
Investment earnings
Fines and forfeitures
Contributions and developer fees
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Economic development
Cultural arts and library services
Highways and streets
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year, as
previously reported
Restatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
Capital Projects
Funds
Other Total
Governmental Governmental
Funds Funds
-$ 3,071,214$ 39,547,817$
- - 1,459,176
- 5,295,862 5,502,690
- 251,705 2,953,758
27,366 304,618 3,650,642
- 5,780 382,099
- 427,738 3,681,467
- - 20,844
27,366 9,356,917 57,198,493
212,791 - 7,196,639
- - 19,086,438
233,302 390,682 1,445,593
- 468,456 3,894,009
- 5,176,025 11,558,060
- 4,704,806 12,707,853
- 295,000 295,000
- 198,231 198,231
446,093 11,233,200 56,381,823
(418,727) (1,876,283) 816,670
- 7,266,795 10,229,418
- (5,971,173) (10,860,468)
- 1,295,622 (631,050)
(418,727) (580,661) 185,620
1,367,074 17,725,332 118,737,499
- 183,033 818,649
1,367,074 17,908,365 119,556,148
948,347$ 17,327,704$ 119,741,768$
Low-Moderate
Income Housing
Asset
See Notes to Financial Statements 37
CITY OF CAMARILLO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2019
Net change in fund balances - total governmental funds 185,620$
Amounts reported for governmental activities in the statement of activities aredifferent because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlay 12,668,867$
Depreciation (8,871,484)
Contributed capital assets 8,043,244
Disposals (175,860) 11,664,767
Repayment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.
Principal repayments 295,000
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period. 584
Some expenses reported in the statement of activities do not require the use
of current financial resources and, therefore, are not reported as
expenditures in governmental funds.
Compensated absences (72,570)
Pension 471,298
OPEB (36,528)
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities. (802,691)
Change in Net Position of Governmental Activities 11,705,480$
See Notes to Financial Statements 38
Internal Service Funds -
Water Utility Fund
Sanitary District Fund
Solid Waste Fund
Transit Fund
39
CITY OF CAMARILLO
STATEMENT OF NET POSITIONPROPRIETARY FUNDSJUNE 30, 2019
Assets:Current:
Cash and investments 43,899,199$ 49,431,225$ 3,231$ Receivables:
Accounts 2,024,077 1,880,243 1,137,554Notes and loans - 10,531 -Accrued interest 243,318 248,248 853Grants - - -
Prepaid costs 7,809 6,498 -Deposits - 18,000 -
Restricted:Cash with fiscal agent - 1,234 -
Total Current Assets 46,174,403 51,595,979 1,141,638
Noncurrent:Capital assets - net of accumulated depreciation 36,401,384 63,201,827 -
Total Noncurrent Assets 36,401,384 63,201,827 -
Total Assets 82,575,787 114,797,806 1,141,638
Deferred Outflows of Resources:Deferred charge on refunding - 538,303 -Deferred amount from pension plan 987,952 1,144,222 60,070Deferred amount from OPEB plan 101,801 110,451 2,563
Total Deferred Outflows of Resources 1,089,753 1,792,976 62,633
Liabilities:Current:
Accounts payable 1,161,958 462,756 548,538Accrued liabilities 120,224 132,845 4,132Accrued interest - 49,823 -Unearned revenues 102,229 - 37,911Retentions payable 104,819 3,350 -Deposits payable 315,277 88,802 192,130Due to other funds - - -Compensated absences 251,534 322,553 8,336Bonds and notes - 680,000 -
Total Current Liabilities 2,056,041 1,740,129 791,047
Noncurrent:Compensated absences 406,903 210,020 -Net pension liability 5,032,277 5,917,255 286,491Net OPEB liability 100,252 107,928 2,435Bonds and notes - 16,547,163 -
Total Noncurrent Liabilities 5,539,432 22,782,366 288,926
Total Liabilities 7,595,473 24,522,495 1,079,973
Deferred Inflows of Resources:Deferred amount from pension plan 448,538 517,809 24,378Deferred amount from OPEB plan 28,612 31,660 1,191
Total Deferred Inflows of Resources 477,150 549,469 25,569
Net Position:Net investment in capital assets 36,401,384 46,512,967 -Restricted for debt service - 1,234 -Restricted for capital and other special projects 10,847,577 - -Unrestricted 28,343,956 45,004,617 98,729
Total Net Position 75,592,917$ 91,518,818$ 98,729$
Solid Waste
Business-Type Activities - Enterprise Funds
Water Utility Sanitary District
See Notes to Financial Statements 40
CITY OF CAMARILLO
STATEMENT OF NET POSITIONPROPRIETARY FUNDSJUNE 30, 2019
Assets:Current:
Cash and investmentsReceivables:
AccountsNotes and loansAccrued interestGrants
Prepaid costsDeposits
Restricted:Cash with fiscal agent
Total Current Assets
Noncurrent:Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources:Deferred charge on refundingDeferred amount from pension planDeferred amount from OPEB plan
Total Deferred Outflows of Resources
Liabilities:Current:
Accounts payableAccrued liabilitiesAccrued interestUnearned revenuesRetentions payableDeposits payableDue to other fundsCompensated absencesBonds and notes
Total Current Liabilities
Noncurrent:Compensated absencesNet pension liabilityNet OPEB liabilityBonds and notes
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources:Deferred amount from pension planDeferred amount from OPEB plan
Total Deferred Inflows of Resources
Net Position:Net investment in capital assetsRestricted for debt serviceRestricted for capital and other special projectsUnrestricted
Total Net Position
GovernmentalActivities-Internal
Totals Service Funds
365$ 93,334,020$ 18,144,273$
4,858 5,046,732 28,397- 10,531 -- 492,419 96,497
1,311,134 1,311,134 -- 14,307 769- 18,000 2,000
- 1,234 -
1,316,357 100,228,377 18,271,936
571,324 100,174,535 26,264,991
571,324 100,174,535 26,264,991
1,887,681 200,402,912 44,536,927
- 538,303 -56,193 2,248,437 690,903
6,370 221,185 53,457
62,563 3,007,925 744,360
189,999 2,363,251 377,9189,067 266,268 75,759
- 49,823 -40,000 180,140 -
- 108,169 28,120- 596,209 1,895
739,500 739,500 -24,799 607,222 267,401
- 680,000 -
1,003,365 5,590,582 751,093
2,315 619,238 215,552297,272 11,533,295 3,502,324
6,296 216,911 52,240- 16,547,163 -
305,883 28,916,607 3,770,116
1,309,248 34,507,189 4,521,209
27,144 1,017,869 308,9651,765 63,228 15,098
28,909 1,081,097 324,063
571,324 83,485,675 26,264,991- 1,234 -- 10,847,577 -
40,763 73,488,065 14,171,024
612,087$ 167,822,551$ 40,436,015$
Transit
Business-Type Activities - Enterprise Funds
See Notes to Financial Statements 41
CITY OF CAMARILLO
STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Operating Revenues:
Charges for services 14,673,770$ 14,005,034$ 7,264,338$
Other 5,572 341 -
Total Operating Revenues 14,679,342 14,005,375 7,264,338
Operating Expenses:
Administration and general 2,770,455 2,419,459 448,274
Cost of sales and services 10,434,381 5,538,955 6,973,504
Depreciation expense 1,032,257 2,630,011 -
Total Operating Expenses 14,237,093 10,588,425 7,421,778
Operating Income (Loss) 442,249 3,416,950 (157,440)
Nonoperating Revenues (Expenses):
Taxes - 1,254,508 -
Intergovernmental - - 15,644
Investment earnings 1,346,993 1,378,695 4,720
Interest expense - (637,473) -
Other 33,612 86,011 -
Loss on disposal of capital assets - - -
Total Nonoperating
Revenues (Expenses) 1,380,605 2,081,741 20,364
Income (Loss) Before Contributions and
Grants, and Transfers 1,822,854 5,498,691 (137,076)
Capital contributions and grants 3,719,038 1,641,683 -
Transfers in - - 50
Changes in Net Position 5,541,892 7,140,374 (137,026)
Net Position:
Beginning of Year 70,051,025 84,378,444 235,755
End of Year 75,592,917$ 91,518,818$ 98,729$
Solid Waste
Business-Type Activities - Enterprise Funds
Water Utility
Sanitary
District
See Notes to Financial Statements 42
CITY OF CAMARILLO
STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Operating Revenues:
Charges for services
Other
Total Operating Revenues
Operating Expenses:
Administration and general
Cost of sales and services
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Taxes
Intergovernmental
Investment earnings
Interest expense
Other
Loss on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Contributions and
Grants, and Transfers
Capital contributions and grants
Transfers in
Changes in Net Position
Net Position:
Beginning of Year
End of Year
Governmental
Activities-
Internal
Totals Service Funds
182,350$ 36,125,492$ 6,440,788$
- 5,913 -
182,350 36,131,405 6,440,788
589,705 6,227,893 1,899,912
1,828,487 24,775,327 4,377,532
225,446 3,887,714 1,706,515
2,643,638 34,890,934 7,983,959
(2,461,288) 1,240,471 (1,543,171)
- 1,254,508 -
1,336,269 1,351,913 -
- 2,730,408 527,594
- (637,473) -
- 119,623 179,904
- - (2,018)
1,336,269 4,818,979 705,480
(1,125,019) 6,059,450 (837,691)
109,082 5,469,803 -
596,000 596,050 35,000
(419,937) 12,125,303 (802,691)
1,032,024 155,697,248 41,238,706
612,087$ 167,822,551$ 40,436,015$
Transit
Business-Type Activities -
Enterprise Funds
See Notes to Financial Statements 43
CITY OF CAMARILLO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Cash Flows from Operating Activities:
Cash received from customers and users 15,031,190$ 13,936,877$ 7,234,532$
Cash received from interfund service provided - - -
Cash paid to suppliers for goods and services (10,889,702) (5,521,658) (6,919,950)
Cash paid to employees for services (2,890,731) (2,642,786) (451,792)
Cash received from others 5,572 341 -
Net Cash Provided (Used) by Operating Activities 1,256,329 5,772,774 (137,210)
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in - - 50
Reimbursements - - -
Short-term loans from other funds - - -
Property taxes - 1,254,508 -
Grants received from other governments - 215,119 15,644
Net Cash Provided by
Non-Capital Financing Activities - 1,469,627 15,694
Cash Flows from Capital
and Related Financing Activities:
Capital contributions 1,086,967 924,696 -
Acquisition and construction of capital assets (4,830,410) (490,491) -
Rents received 33,612 86,011 -
Principal paid on capital debt - (645,000) -
Interest paid on capital debt - (661,043) -
Net Cash Used by
Capital and Related Financing Activities (3,709,831) (785,827) -
Cash Flows from Investing Activities:
Interest received 1,307,115 1,310,119 5,061
Net Cash Provided by
Investing Activities 1,307,115 1,310,119 5,061
Net Increase (Decrease) in Cash
and Cash Equivalents (1,146,387) 7,766,693 (116,455)
Cash and Cash Equivalents at Beginning of Year 45,045,586 41,665,766 119,686
Cash and Cash Equivalents at End of Year 43,899,199$ 49,432,459$ 3,231$
Solid Waste
Business-Type Activities - Enterprise Funds
Water Utility
Sanitary
District
See Notes to Financial Statements
(1 of 4)
44
CITY OF CAMARILLO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Solid Waste
Business-Type Activities - Enterprise Funds
Water Utility
Sanitary
District
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss) 442,249$ 3,416,950$ (157,440)$
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation 1,032,257 2,630,011 -
Changes in pension related items (167,643) (191,274) (5,971)
Changes in OPEB related items 13,744 14,911 346
(Increase) decrease in accounts receivable 230,903 (71,543) (77,959)
(Increase) decrease in prepaid expense (6,181) (5,870) 180
Increase (decrease) in accounts payable (449,140) 23,167 53,374
Increase (decrease) in accrued liabilities 5,427 (33,228) 507
Increase (decrease) in unearned revenue 6,205 - 37,527
Increase (decrease) in deposits payable 120,312 3,386 10,626
Increase (decrease) in compensated absences 28,196 (13,736) 1,600
Total Adjustments 814,080 2,355,824 20,230
Net Cash Provided (Used) by
Operating Activities 1,256,329$ 5,772,774$ (137,210)$
Non-Cash Investing, Capital, and Financing Activities:
Amortizaton of bond premium -$ (54,539)$ -$
Amortization of deferred charge - 33,524 -
Donated capital assets 2,632,071 716,987 -
Loss on disposition of capital assets - - -
See Notes to Financial Statements
(2 of 4)
45
CITY OF CAMARILLO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Cash Flows from Operating Activities:
Cash received from customers and users
Cash received from interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from others
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:
Cash transfers in
Reimbursements
Short-term loans from other funds
Property taxes
Grants received from other governments
Net Cash Provided by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:
Capital contributions
Acquisition and construction of capital assets
Rents received
Principal paid on capital debt
Interest paid on capital debt
Net Cash Used by
Capital and Related Financing Activities
Cash Flows from Investing Activities:
Interest received
Net Cash Provided by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Governmental
Activities-
Internal
Totals Service Funds
201,789$ 36,404,388$ -$
- - 6,437,674
(1,889,595) (25,220,905) (4,203,845)
(600,568) (6,585,877) (2,058,972)
- 5,913 -
(2,288,374) 4,603,519 174,857
596,000 596,050 35,000
- - 178,392
389,500 389,500 -
- 1,254,508 -
1,330,081 1,560,844 -
2,315,581 3,800,902 213,392
109,082 2,120,745 -
(136,353) (5,457,254) (1,301,993)
- 119,623 -
- (645,000) -
- (661,043) -
(27,271) (4,522,929) (1,301,993)
- 2,622,295 514,908
- 2,622,295 514,908
(64) 6,503,787 (398,836)
429 86,831,467 18,543,109
365$ 93,335,254$ 18,144,273$
Transit
Business-Type Activities - Enterprise
Funds
See Notes to Financial Statements
(3 of 4)
46
CITY OF CAMARILLO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:
Depreciation
Changes in pension related items
Changes in OPEB related items
(Increase) decrease in accounts receivable
(Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in unearned revenue
Increase (decrease) in deposits payable
Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:
Amortizaton of bond premium
Amortization of deferred charge
Donated capital assets
Loss on disposition of capital assets
Governmental
Activities-
Internal
Totals Service Funds Transit
Business-Type Activities - Enterprise
Funds
(2,461,288)$ 1,240,471$ (1,543,171)$
225,446 3,887,714 1,706,515
(11,602) (376,490) (110,355)
861 29,862 7,215
19,439 100,840 (3,114)
- (11,871) 1,840
(61,108) (433,707) 173,173
1,494 (25,800) 2,016
- 43,732 -
- 134,324 (1,326)
(1,616) 14,444 (57,936)
172,914 3,363,048 1,718,028
(2,288,374)$ 4,603,519$ 174,857$
-$ (54,539)$ -$
- 33,524 -
- 3,349,058 -
- - 2,018
See Notes to Financial Statements
(4 of 4)
47
48
Successor Agency Private-Purpose Trust Fund -
Agency Funds -
49
CITY OF CAMARILLO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2019
Agency
Funds
Assets:
Cash and cash equivalents 219,171$ 1,000,937$
Receivables:
Accounts - 9,313
Accrued interest - 4,401
Prepaid costs - 1,351
Restricted assets:
Cash and investments with fiscal agents 2,544,382 475,430
Total Assets 2,763,553 1,491,432$
Deferred Outflows of Resources:
Deferred charge on refunding 2,451,900
Total Deferred Outflows of Resources 2,451,900
Liabilities:
Accounts payable 20,629 31,372$
Intergovernmental payables - 238,343
Interest payable 765,373 -
Deposits payable - 686,613
Due to bondholders - 535,104
Long-term liabilities:
Bonds due in one year 1,330,000 -
Bonds due in more than one year 53,720,211 -
Total Liabilities 55,836,213 1,491,432$
Net Position:
Held in trust for other purposes (50,620,760)
Total Net (Deficit) (50,620,760)$
Private-Purpose
Trust Fund
Successor
Agency Private-
Purpose Trust
Fund
See Notes to Financial Statements 50
CITY OF CAMARILLO
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2019
Additions:
Taxes 3,455,507$
Investment earnings 15,510
Total Additions 3,471,017
Deductions:
Administrative expenses 73,307
Interest expense 2,278,997
Total Deductions 2,352,304
Changes in Net Position 1,118,713
Net Position - Beginning of the Year (51,739,473)
Net Position - End of the Year (50,620,760)$
Private-Purpose
Trust Fund Successor
Agency Private-
Purpose Trust
Fund
See Notes to Financial Statements 51
52
NOTES TO BASIC FINANCIAL STATEMENTS
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies
The basic financial statements of the City of Camarillo have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. More significant accounting policies of the City are described below. a. Financial Reporting Entity
The City of Camarillo (City) is a general law city governed by an elected five-member City Council. As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City’s operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entities are reported as blended component units:
Camarillo Community Development Commission – The Camarillo Community Development Commission (CDC) was created on June 12, 1996. The City Council Members also serve as the Commissioners of the CDC. Therefore, the CDC is considered a blended component unit and is included in the accompanying financial statements of the City of Camarillo since the City has operational responsibility for the CDC. This committee is now the Citizen Advisory Committee on land use and meets for CDC purposes. Separate financial statements are not prepared.
Camarillo Sanitary District Board – The Camarillo Sanitary District Board (District) was formed in 1955 to provide wastewater treatment to most of what is now the City of Camarillo. The City Council also acts as the Camarillo Sanitary District’s governing board and as such is able to impose its will with regard to the District. Therefore, the District is considered a blended component unit and is included in the accompanying financial statements of the City. Rates for user charges and bond issuance authorizations are approved by the District’s governing board, and the legal liability for the general obligation portion of the District’s debt remains with the District. The District is reported as an enterprise fund in the City’s financial statements since the City has operational responsibility for the District. Separate financial statements are not prepared. Camarillo Capital Improvement Corporation – The Camarillo Capital Improvement Corporation (Corporation) was formed on December 23, 1987, pursuant to the laws of the State of California. The governing body is the City Council, which can impose its will on the Corporation and the City can receive financial benefit or burden of the Corporation. Thus, it is considered a blended component unit. The Corporation has the power to acquire sites, construct, maintain, operate and lease public buildings and related facilities; to provide for the development of the City and the District; to make and enter into contracts; to acquire, construct, manage, maintain or operate any buildings, works or improvements; to acquire property or dispose of
53
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
property by lease or sale. The Corporation’s activities may consist of providing financial assistance to the City through the issuance of bonds and the leasing of assets to the City and the District. At the end of the lease term, all assets revert to the City and the District. Any activities of the Corporation related to the District plant expansion are included in the Sanitary District Enterprise Fund. For financial reporting purposes, the leases between the Corporation and the City, and between the Corporation and the District, are eliminated. The last meeting occurred in January 2019. Separate financial statements are not prepared. Camarillo Public Finance Authority – The Camarillo Public Finance Authority (PFA) was established in 1998 for the purpose of providing a mechanism for the 1999 combining and refunding of three bonds to take advantage of favorable interest rates. The PFA was formed under the Joint Exercise of Powers Law between the City and the Camarillo Sanitary District. The PFA currently has one bond outstanding. The last meeting occurred in January 2019. Separate financial statements are not prepared.
Camarillo Industrial Development Authority – The Camarillo Industrial Development Authority (IDA) was established in 1996 for the sole purpose of providing a mechanism for the issuance of Industrial Development Revenue Bonds, and the governing body is the City Council. The IDA is a public, corporate instrumentality of the State and was organized under the California Industrial Development Financing Act (being Title 10 of the California Government Code, commencing with Section 91500, as amended). The IDA currently has no bonds outstanding. The last meeting occurred in January 2019. Separate financial statements are not prepared.
Camarillo Library Board – The Camarillo Library Board was established in 2010 to manage the Camarillo Public Library as required by the California Education Code. The City assumed operation of the Camarillo Library from the Ventura County Library system in January 2011, and the City Council was appointed as the board. The Camarillo Library Board’s last meeting occurred in June 2019. Separate financial statements are not prepared.
b. Financial Reporting Fiduciary Entity City of Camarillo as Successor Agency to the Camarillo Community Development Commission – The Successor Agency was created to serve as a custodian for the assets and to wind down the affairs of the former Redevelopment Agency of the City of Camarillo. As of July 1, 2018, the Ventura County Consolidated Oversight Board (VCCOB) was established in each county where more than one redevelopment successor agency oversight board was created, to act as a Consolidated Oversight Board. The VCCOB is charged with overseeing the activities of the eleven successor agencies throughout the County, as agencies discharge their obligations, dispose of assets, and wind down redevelopment activities. Based upon the nature of the Successor Agency’s custodial role, it is reported in a fiduciary fund (private-purpose trust fund).
54
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
c. Budgets and Budgetary Accounting
Budgets are legally adopted bi-annually by the Council by resolution and are prepared for each fund in accordance with its basis of accounting consistent with GAAP. The City Manager is responsible for preparing the budget and for its implementation after adoption. Annual appropriations lapse at fiscal year-end; however, the City Manager has the authority to approve appropriation carryovers for unexpended appropriations for incomplete capital projects, and unexpended appropriations for the grant programs. The City maintains budgetary controls to ensure compliance with provisions embodied in the annual budget approved by the City Council and the Camarillo Sanitary District Board. The City Council approves operating and capital appropriations at the fund and department levels. The City Manager has the authority to transfer between expenditure accounts and between funds of the City and the Camarillo Sanitary District, as long as there is no funding source incompatibility, and provided those changes do not increase overall appropriations in either component unit. The level of budgetary control is established at the fund level. The Council has the legal authority to amend the budget at any time during the fiscal year.
d. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These basic financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
55
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
Certain types of transactions are reported as program revenues for the City in three categories: Charges for services Operating grants and contributions Capital grants and contributions Certain eliminations have been made in regard to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, transactions between governmental and business-type activities were not eliminated.
Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major governmental funds that met the applicable criteria. The following is a list of these major governmental funds:
General Fund – This fund is used to account for resources which are not required legally or by sound financial management to be accounted for in another fund. Development Fees Special Revenue Fund – This fund is used to account for specific fee revenues that are legally restricted to expenditures for particular purposes.
Camarillo Corridor Projects Area Fund – This fund is used to account for land held for resale and bond proceeds as detailed in an Agreement between City of Camarillo and City of Camarillo as Successor Agency to the Camarillo Community Development Commission. Low-Moderate Income Housing Asset Fund – This fund is used to account for the housing activities of the former Redevelopment Agency.
56
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
Additionally, the government reports the following fund types:
Debt Service Funds – These funds are used to account for the accumulation of resources and payment of long-term debt principal and interest for bonds issued by the City to finance various projects.
All governmental funds are accounted for on a spending or "current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only assets, liabilities, and deferred inflows of resources are included on the Balance Sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except for those revenues subject to accrual, generally 60 days after year-end for property tax revenues, 90 days for general revenues and 120 days for subventions and grants, which are both recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, franchise taxes, special assessments, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related liability is incurred. Unavailable revenues arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Unavailable revenues are reported as deferred inflows of resources until they meet the “available” criteria. Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenues are removed, and revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. Proprietary Fund Financial Statements Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows for each proprietary fund.
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements. The following is a list of the City’s major proprietary funds:
57
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
Water Utility Fund – This fund is used to account for the activities associated with the transmission and distribution of potable and recycled water by the City to its users. Sanitary District Fund – This fund is used to account for the activities of the Sanitary District (a component unit of the City of Camarillo) which includes the transmission, pumping and treatment of the City's sewage.
Solid Waste Fund – This fund is used to account for the activities associated with collection and disposal of rubbish and recycled materials.
Transit Fund – This fund is used to account for the operations of the City's bus system which includes both leased bus activities and the City-owned bus system.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
Internal Service Fund Financial Statements The City reports nine internal service funds. These proprietary funds are used to account for the financing of services provided by one department to another on a cost-reimbursement basis. The services provided by these funds are Risk Management, Information Services, Vehicles & Equipment, City Hall Facility, Corporation Yard Facility, Police Facility, Library Facility, Camarillo Ranch Facility, and the Chamber of Commerce Facility.
Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Net Position. The Successor Agency Private-Purpose Trust Fund is reported using the “economic resources” measurement focus and the accrual basis of accounting. This fund is being used to account for the Redevelopment Property Tax Trust Fund distributions made by the County of Ventura for the dissolution activity related to the former Camarillo Community Development Commission. The Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The Agency Funds are accounted for under the accrual basis of accounting.
58
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
e. Cash, Cash Equivalents, and Investments
Cash Management – The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds based on average daily cash and investment balances.
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments with original maturities of three months or less at the time of acquisition.
Investments Valuation – Highly liquid market investments with maturities of one year or less at time of purchase, are stated at amortized cost. All other investments are stated at fair market value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
State Investment Pool – The City voluntarily participates in the Local Agency Investment Fund (LAIF), an investment pool, 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 at an amount based upon the City’s pro-rate share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).
f. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
g. Assets Held for Resale
Assets held for resale are recorded at the lower of cost or market, but not greater than the net realizable value.
h. Capital Assets
Capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities in the government-wide financial statements. All purchased capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated (contributed) capital assets are valued at acquisition value on the date received.
59
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
City policy has set the capitalization threshold for reporting capital assets at the following: General capital assets $5,000 Infrastructure capital assets $50,000 For all capital assets, depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings and improvements 30-40 years Furniture and fixtures 8-15 years Machinery and equipment 5-40 years Water and Sewer Transmission, Collection and Distribution lines 40-50 years Infrastructure 5-75 years
The City has included the value of all infrastructures into its Basic Financial Statements and it defines infrastructure as the basic physical assets that allow the City to function. The assets include: Storm drain system Streets system Site amenities such as parking and landscaped areas used by the City to
conduct business Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the Basic Financial Statements. The appropriate operating department maintains information regarding the subsystems. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date, was calculated on a straight-line method using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. The City has early implemented GASB Statement No. 89, - Accounting for Interest Costs Incurred Before the End of a Construction Period - Interest accrued during capital assets construction, if any, is no longer capitalized for the business-type and proprietary funds as part of the asset cost.
i. Interest Payable Interest payable of long-term debt is recognized when the liability is incurred for governmental activities, business-type activities, proprietary fund types, and fiduciary fund types.
60
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
j. Deferred Outflows/Inflows of Resources
In addition to assets, the statements of net position will sometimes report a separate section for deferred outflows of resources. This financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has three items that qualify for reporting in this category. The first item is a deferred amount on refunding resulting from the difference in the carrying value of the refunded debt (the 2005 Wastewater Revenue Bonds) and its reacquisition price. This amount is amortized over the life of the refunding debt (the 2015 Wastewater Refunding Revenue Bonds), which is 20 years. The second item is deferred outflows from changes in net pension liability that arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position. The third item is deferred outflows from changes in the City’s net OPEB asset that arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position.
In addition to liabilities, the statements of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in this category. The first item is unavailable revenues, which arise only under the modified accrual basis of accounting. Governmental fund balance sheets report unavailable revenues from grants not collected within the availability period. These amounts are deferred and will be recognized as inflows of resources in periods that the amounts become available. The second item is deferred inflows from changes in net pension liability that arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position. The third item is deferred inflows from changes in the City’s net OPEB asset that arise only under a full accrual basis of accounting and are reported in the government-wide Statement of Net Position and proprietary funds Statement of Net Position.
k. Compensated Absences
The City accrues for compensated absences in the government-wide and proprietary fund statements of net position. Amounts of vested or accumulated compensated absences, that are not expected to be liquidated with expendable available financial resources, are reported in the governmental activities of the government-wide financial statements. Vested or accumulated compensated absences of proprietary funds are recorded as an expense and liability of those funds as the benefits accrue to employees.
61
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
l. Long-Term Obligations
Government-Wide Financial Statements – Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. The effect of premiums, discounts and similar items when debt is issued are deferred and amortized in the Statement of Activities.
Fund Financial Statements – The fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. Bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount. Issuance costs, whether or not withheld from the actual net proceeds received, are reported as debt service expenditures.
m. Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net investment in capital assets – This amount consists of capital assets net of accumulated depreciation and is reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, laws enabling legislation or regulations of other governments.
Unrestricted Net Position – This amount is the net position that does not meet the definition of “net investment in capital assets” or “restricted net position.”
n. Use of Restricted/Unrestricted Net Positions
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.
o. Fund Balances
In the fund financial statements, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. See Fund Balance for Governmental Funds Note 9 in the Notes to Basic Financial Statements for more information.
p. Property Tax Calendar
The State of California Constitution Article XIIIA provides that the combined maximum property tax rate on any given property may not exceed 1 % of its assessed value, unless an additional amount for debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIIIA and may be increased by no more than 2% per year unless the property is sold, transferred, or improved.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
The County of Ventura assesses properties, bills for, collects, and distributes property taxes on the basis of the taxing jurisdiction’s tax rate percentage, subject to individual tax jurisdiction’s adjustments as may be allowed for voter-approved debt, as follows:
Secured UnsecuredLien dates January 1 January 1
Levy dates July 1 July 1
Due dates 50% on November 1 and July 150% on February 1
Delinquent as of December 10 (for November) August 31April 10 (for February)
The term “unsecured” refers to taxes on personal property other than real estate, land, and buildings.
q. Use of Estimates
The preparation of the basic financial statements, in conformity with GAAP, requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
r. New, Deleted and Reclassified Funds and Reclassifications of Revenues
New Fund(s): None
Deleted Fund(s): Ramona Drive Assessment District Agency Fund
Reclassified Fund(s): None Reclassification of Revenue(s): None
s. New GASB Pronouncements
Current Fiscal Year Standards:
In FY 2018/19, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements, which improves the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. This statement defines debt for purposes of disclosure in notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is established.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 1: Summary of Significant Accounting Policies (Continued)
This statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. For notes to financial statements related to debt, this statement also requires that existing and additional information be provided for direct borrowings and direct placements of debt separately from other debt. The requirements of this statement are effective for reporting periods beginning after June 15, 2018.
t. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the District’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
u. Other Post-Employment Healthcare Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by Public Agency Retirement Services (PARS), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2018 Measurement Date June 30, 2018 Measurement Period July 1, 2017 to June 30, 2018
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 2: Cash and Investments
The City had the following cash and investments at June 30:
Deposits 2,455,700$ Petty cash 3,455
Total City treasury deposits 2,459,155
Certificates of Deposit 4,237,565
City treasury investments:Securities of U.S. government sponsored entities
FFCB 15,233,678 FHLB 22,062,443 FHLMC 13,612,221 FNMA 9,789,453
Total City securities of U.S. government sponsored entities 60,697,795
Local agency investment fund 108,685,728 Tax-Exempt Money Market 579,548 U.S. treasury 40,682,788
Total City treasury investments 149,948,064
Total funds in City treasury 217,342,579
Restricted Cash and investments 5,455,177
Cash and investments with fiscal agents 3,519,782
Total cash and investments 226,317,538$
a. Cash Deposits
The City’s deposits and certificates of deposit are entirely covered by Federal Depository Insurance Corporation (FDIC), or by collateral held in a multiple financial institution collateral pool. The FDIC insures the first $250,000 of the City’s deposits at each financial institution. At June 30, 2019, the reported amount of the City's deposits was $2,455,700 and the bank balances totaled $3,165,812. The difference was related to outstanding checks, deposits in transit and other reconciling items.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 2: Cash and Investments (Continued)
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-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 California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City’s deposits are insured by FDIC or collateralized as required by California Law. The City has not waived the financial institution requirement on securing City’s deposits.
For investments identified herein as held by fiscal agents, the trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the City.
b. Investments
The City is authorized by State statutes, and in accordance with the City’s Investment Policy (Policy), to invest in the following: State Local Agency Investment Fund (LAIF) United States Treasury notes, bonds, bills or certificates of indebtedness Insured demand deposits Certificates of deposit Federal agency or United States government sponsored enterprises Government or U.S. Treasury money market funds Municipal Securities that are obligations of the City, the State of California, and
any local agency within the State of California Negotiable Certificates of Deposit (NCDs), issued by a nationally or
state-chartered bank, a savings association or federal association, a state of federal credit union, or a federally-licensed or state-licenses branch of a foreign bank
The Policy, in addition to State statutes, establishes that funds on deposit in banks must be federally insured or collateralized, and investments shall: (1) have maximum maturity not to exceed five years, (2) be laddered and based on cash flow forecasts, and (3) be subject to limitations to a certain percent of the portfolio for each of the authorized investments. The City’s investments comply with the established policy.
66
CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 2: Cash and Investments (Continued)
Investments of debt proceeds held by fiscal agents are governed by provisions of the debt covenants, rather than the general provisions of the California Government Code or the City’s investment policy. These provisions allow for the investments in the following: U.S. Treasury obligations, U.S. Agency securities, non-negotiable certificates of deposit, negotiable certificates of deposit, investment agreements, repurchase agreements, forward purchase agreements, money market mutual funds, and LAIF.
The City portfolio value fluctuates in an inverse relationship to changes in interest rate. Accordingly, if interest rates have risen, the portfolio value will have declined. If interest rates have fallen, the portfolio value will have risen.
The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold.
c. Fair Value Measurements and Application
GASB Statement No. 72 “Fair Value Measurement and Application” generally requires investments to be measured at fair value. An investment is defined as a security or other asset that (a) a government holds primarily for the purpose of income or profit and (b) has a present service capacity based solely on its ability to generate cash or to be sold to generate cash.
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are valued using a matrix pricing model. Level 3 inputs are significant unobservable inputs.
The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. When quoted prices in active markets are not available, fair values are based on evaluated prices received by City from third party service provider.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 2: Cash and Investments (Continued)
The City has the following fair value measurements for its investments as of June 30, 2019:
Level 1 Level 2 Level 3 Total
Federal Agency Securities -$ 60,697,795$ -$ 60,697,795$
Certificates of Deposit - 4,237,565 - 4,237,565 - 40,682,788 - 40,682,788
Total Leveled Investments -$ 105,618,148$ -$ 105,618,148
Tax-Exempt Money Market* 579,548
State Investment Pool (LAIF)* 108,685,728
Held by Trustee:PARS Trust* 5,455,177 Money Market Mutual Funds* 3,519,782
Total Investment Portfolio 223,858,383$
*Not subject to fair market value measurement
U.S. Treasury Securities
d. Summary of Cash and Investments
The following is a summary of cash and investments as of June 30, 2019:
Governmental Activities
Business-type Activities Total
Fiduciary Funds Statement of Net Position Total
Cash and investments 122,788,451$ 93,334,020$ 216,122,471$ 1,220,108$ 217,342,579$ Restricted cash and investments 5,953,913 1,234 5,955,147 3,019,812 8,974,959 Total 128,742,364$ 93,335,254$ 222,077,618$ 4,239,920$ 226,317,538$
Government-Wide Statement of Net Position
e. Risk Disclosures
Interest Rate Risk. Interest rate risk is the possibility that changes in market interest rate will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy requires that the average maturity of the investment portfolio will not exceed three years, and no investment will have a maturity of more than five years from its date of purchase.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 2: Cash and Investments (Continued) At June 30, 2019, the City Treasury had the following investment maturities:
Investment Type Fair Value Less than 6 months6 months to a
year 1 to 3 years
FFCB 15,233,678$ 3,396,018$ 8,503,200$ 3,334,460$ FHLB 22,062,443 6,988,970 5,004,030 10,069,443 FHLMC 13,612,221 5,242,498 1,989,210 6,380,513 FNMA 9,789,453 1,996,650 1,245,200 6,547,603 U.S. T Notes 40,682,788 3,993,700 7,360,866 29,328,222 Money Market 579,548 579,548 - - CD's 4,237,565 3,007,507 739,104 490,954 LAIF 108,685,728 108,685,728 - - PARS Trust 5,455,177 5,455,177 - - Total 220,338,601$ 139,345,796$ 24,841,610$ 56,151,195$
Investment Maturities
At June 30, 2019, the City’s investments held by Fiscal Agents had the following maturities:
Investment Type Fair Value Less than 6 months
Mutual Funds 3,519,782$ 3,519,782$ Total 3,519,782$ 3,519,782$
Fiscal AgentInvestment Maturities
Credit Risk. Credit risk is the possibility that an issuer of an investment will not fulfill its obligation to the holder of the investment. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations (NRSROs). The City’s policy does not allow these types of investments.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 2: Cash and Investments (Continued)
At June 30, 2019, the City Treasury investment credit risks, expressed on a percentage basis, were as follows:
Investment Type Moody's Credit
RatingS & P's Rating
% of Investments
FFCB Aaa AA 6.91 FHLB Aaa AA 10.01 FHLMC Aaa AA 6.18 FNMA Aaa AA 4.44 U.S. T Notes Aaa AA 18.47 Money Market Funds Not Rated Not Rated 0.26 CD's Not Rated Not Rated 1.92 LAIF Not Rated Not Rated 49.33 PARS Trust Not Rated Not Rated 2.48
Total 100.00
City Treasury InvestmentsCredit Quality Distribution for Securities with Credit Exposure
At June 30, 2019, the City Fiscal Agent investment credit risks, expressed on a percentage basis, were as follows:
Investment Type Moody's Credit
RatingS & P's Rating
% of Investments
Mutual Funds Aaa AAA 100.00 Total 100.00
Fiscal Agent InvestmentsCredit Quality Distribution for Securities with Credit Exposure
f. Concentrations of Credit Risk
The investment policy of the City states Federal agency or United States government sponsored total issues will not exceed 75%, nor will one issuer exceed 20%, of the total portfolio. Investments in any one issuer (other than U. S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total entity investments as of June 30, 2019, were as follows:
Issuer Investment Type Reported Amount
FFCB U.S. Government Sponsored Entities 15,233,678$ FHLB U.S. Government Sponsored Entities 22,062,443 FHLMC U.S. Government Sponsored Entities 13,612,221
Total 50,908,342$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 3: Receivables
a. Government-Wide Financial Statements
The following is a summary of receivables, including restricted receivables, net of allowances for uncollectible amounts at June 30, 2019:
Governmental activities
Business-type activities Total
Fiduciary Funds
Statement of Net Position Totals
Current assets Accounts 4,175,761$ 5,046,732$ 9,222,493$ 9,313$ 9,231,806$ Interest 662,912 492,419 1,155,331 4,401 1,159,732 Grants 77,967 1,311,134 1,389,101 - 1,389,101 Noncurrent assets Notes 752,251 10,531 762,782 - 762,782 Total 5,668,891$ 6,860,816$ 12,529,707$ 13,714$ 12,543,421$
Government-Wide Statement of Net Position
b. Notes Receivable
Promissory notes receivable of $762,782 at June 30, 2019, consisted of the following outstanding balances:
Governmental Activities
Major Fund
Low-Moderate Income Housing Asset FundNote Receivable from KDF Park Glenn Seniors, L.P.Note due and payable on October 30, 2037 275,000$
Note Receivable from Habitat For HumanityNote forgivable upon completion of requirements 149,439 Allowance for uncollectible amounts (149,439)
Non-Major FundCommunity development
Community Development Block Grant Fund (CDBG)Notes used for affordable housing down payment, closing assistance, andsilent second trust deedsNotes due at the time of property sale 477,251
Total governmental activities notes receivable 752,251
Business-type Activities
Sanitary District FundVarious notes used for purchase and installation of FOG devicesNotes due by June 30, 2019 10,531
Total Notes Receivable 762,782$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 4: Interfund Transactions
The City had the following transfers for the fiscal year ended June 30, 2019:
Transfers OutGeneral
Fund
Camarillo Corridor Projects
Area Fund
Other Governmental
FundsTransitFund
Solid Waste Fund
Internal Service Funds Totals
General Fund -$ -$ 3,107,790$ 596,000$ 50$ -$ 3,703,840$ Development Fees Special Revenue - 1,185,455 - - - - 1,185,455 Other Governmental Funds 1,777,168 - 4,159,005 - - 35,000 5,971,173 Total 1,777,168$ 1,185,455$ 7,266,795$ 596,000$ 50$ 35,000$ 10,860,468$
Transfers In
The General Fund provided transfers to Other Governmental Funds to support on-going operations and debt service payments, as well as to the Transit Fund and Solid Waste Fund to supplement operations or grants. The Development Fees Special Revenue Fund provided transfers to the Camarillo Corridor Projects Area Fund to supplement capital improvement projects scheduled in the City’s Five-Year Capital Improvement Program. Other Governmental Funds provided transfers to the General Fund, Other Governmental Funds and Internal Service Funds to supplement capital improvement projects. The City had the following interfund payables for the fiscal year ended June 30, 2019:
Due From
Due ToGeneral
Fund Totals
Transit Fund 739,500$ 739,500$ Total 739,500$ 739,500$
The General Fund provided a short-term loan to the Transit Fund to cover negative cash balances.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 5: Capital Assets
a. Government-Wide Financial Statements
At June 30, 2019, the City’s capital assets consisted of the following:
Governmental
ActivitiesBusiness-type
Activities TotalNon-depreciable assets:
Land 33,653,697$ 1,261,634$ 34,915,331$ Construction in progress 16,096,736 11,142,748 27,239,484
Total non-depreciable assets 49,750,433 12,404,382 62,154,815
Depreciable assets:Buildings and improvements 53,764,800 817,614 54,582,414 Machinery and equipment 14,279,178 9,553,394 23,832,572 Infrastructure 327,981,379 151,524,132 479,505,511
Total depreciable assets 396,025,357 161,895,140 557,920,497
Less accumulated depreciation for:Buildings and improvements (23,153,250) (515,040) (23,668,290) Machinery and equipment (10,244,772) (5,860,667) (16,105,439) Infrastructure (141,297,371) (67,749,280) (209,046,651)
Total Accumulated Depreciation (174,695,393) (74,124,987) (248,820,380)
Total capital assets being depreciated, net 221,329,964 87,770,153 309,100,117
Total capital assets, net 271,080,397$ 100,174,535$ 371,254,932$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 5: Capital Assets (Continued)
b. Governmental Activities
The following is a summary of capital assets for governmental activities for the fiscal year ended June 30, 2019:
Balance at
June 30, 2018, as restated Additions Deletions
Balance at June 30, 2019
Non-depreciable assets:Land 31,763,171$ 1,890,526$ -$ 33,653,697$ Construction in progress 8,328,429 13,994,595 (6,226,288) 16,096,736
Total non-depreciable assets 40,091,600 15,885,121 (6,226,288) 49,750,433
Depreciable assets:Buildings and improvements 52,005,520 1,801,522 (42,242) 53,764,800$ Machinery and equipment 13,991,807 385,647 (98,276) 14,279,178 Infrastructure 319,064,807 10,191,838 (1,275,266) 327,981,379
Total depreciable assets 385,062,134 12,379,007 (1,415,784) 396,025,357
Less accumulated depreciation for:Buildings and improvements (21,567,630) (1,615,893) 30,273 (23,153,250)$ Machinery and equipment (9,654,377) (698,621) 108,226 (10,244,772) Infrastructure (134,133,292) (8,263,485) 1,099,406 (141,297,371)
Total accumulated depreciation (165,355,299) (10,577,999) 1,237,905 (174,695,393) Total Capital Assets being depreciated, net 219,706,835 1,801,008 (177,879) 221,329,964
Governmental ActivitiesTotal capital assets, net 259,798,435$ 17,686,129$ (6,404,167)$ 271,080,397$
Depreciation expense, including depreciation to internal service funds, for the fiscal year ended June 30, 2019, was charged to functions/programs of the governmental activities as follows:
Governmental Activities
General government 12,919$ Public safety 11,412 Highway and streets, including depreciation of general infrastructure assets 8,847,153 Internal service funds 1,706,515
Total depreciation expense - governmental activities 10,577,999$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 5: Capital Assets (Continued)
c. Business-Type Activities
The following is a summary of capital assets for business-type activities for the fiscal year ended June 30, 2019:
Balance at
June 30, 2018 Additions DeletionsBalance at
June 30, 2019Non-depreciable assets:
Land 1,261,634$ -$ -$ 1,261,634$ Construction in progress 7,199,993 5,615,657 (1,672,902) 11,142,748
Total non-depreciable assets 8,461,627 5,615,657 (1,672,902) 12,404,382
Depreciable assets:Buildings and improvements 817,614 - - 817,614 Machinery and equipment 9,355,065 198,329 - 9,553,394 Infrastructure 146,700,532 4,823,600 - 151,524,132
Total depreciable assets 156,873,211 5,021,929 - 161,895,140
Less accumulated depreciation for:Buildings and improvements (491,524) (23,516) - (515,040) Machinery and equipment (5,274,665) (586,002) - (5,860,667) Infrastructure (64,471,084) (3,278,196) - (67,749,280)
Total accumulated depreciation (70,237,273) (3,887,714) - (74,124,987)
Total capital assets being depreciated, net 86,635,938 1,134,215 - 87,770,153
Business-Type ActivitiesTotal capital assets, net 95,097,565$ 6,749,872$ (1,672,902)$ 100,174,535$
Depreciation expense, for business-type activities for the fiscal year ended June 30, 2019, was charged as follows:
Business-type Activities
Water 1,032,257$ Sewer 2,630,011 Transit 225,446
Total depreciation expense - business-type activities 3,887,714$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 6: Compensated Absences
The City’s policy relating to compensated absences is described in Note 1, section K. As shown in the table below, the long-term portion of this debt is expected to be paid in future years from future resources. No fixed payment schedule is established for compensated absences. In prior fiscal years, liability for compensated absences has been liquidated primarily by the General Fund and the proprietary funds. Detail of compensated absences recorded in the Governmental Activities and Business-type Activities at June 30, 2019, was as follows:
Balance atJuly 1, 2018 Additions Deletions
Balance at June 30, 2019
Amount Due Within One Year
Governmental activities 1,822,595$ 1,121,953$ 1,107,319$ 1,837,229$ 1,107,319$ Business-type activities 1,212,016 621,666 607,222 1,226,460 607,222
Total compensated absences 3,034,611$ 1,743,619$ 1,714,541$ 3,063,689$ 1,714,541$
Note 7: Long-Term Debt
Following is a summary of long-term debt transactions for the fiscal year ended June 30, 2019:
Balance at June 30, 2018 Additions Deletions
Balance at June 30, 2019
Amounts Due Within One
Year
Amounts Due in More Than
One Year
Governmental Activities:2012 Lease Revenue Bonds-Library 5,900,000$ -$ 295,000$ 5,605,000$ 300,000$ 5,305,000$
Total Governmental Activities 5,900,000$ -$ 295,000$ 5,605,000$ 300,000$ 5,305,000$
Business-type Activities:2015 Wastewater Bonds 16,945,000$ -$ 645,000$ 16,300,000$ 680,000$ 15,620,000$ Premium on 2015 Bonds 981,702 - 54,539 927,163 - N/A
Total Business-typeActivities 17,926,702$ -$ 699,539$ 17,227,163$ 680,000$ 15,620,000$
Classification
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 7: Long-Term Debt (Continued)
a. Governmental Activities
2012 Lease Revenue Bonds – Original Issue $7,630,000
On April 26, 2012, the City issued, through the Camarillo Public Finance Authority (a non-profit benefit corporation), $7,630,000 in Lease Revenue Bonds (Library Refunding Project), 2012 Series, with interest rates ranging from 1.00% to 4.25% and a maturity date of December 1, 2033. The proceeds of the 2012 Bonds were used to redeem and defease the 2003 Library Bonds and fund the costs of issuance relating to the 2012 Bonds. With this defeasance, the City realized a net present value savings of approximately $876,000 and annual debt service savings ranging from $49,000 to $55,000 over the remaining life of the bonds. The annual debt service requirements at June 30, 2019, on the 2012 Library Bonds were as follows:
Year Ending June 30, Principal Interest Total 2020 300,000$ 190,794$ 490,794$ 2021 305,000 183,231 488,231 2022 315,000 175,481 490,481 2023 325,000 166,872 491,872 2024 330,000 156,838 486,838
2025 - 2029 1,840,000 604,631 2,444,631 2030 - 2034 2,190,000 235,456 2,425,456
Totals 5,605,000$ 1,713,303$ 7,318,303$
2012 Lease Revenue Bonds
b. Business-type Activities
2015 Wastewater Refunding Revenue Bonds – Original Issue $18,900,000
On July 21, 2015, the Camarillo Sanitary District issued, through the Camarillo Public Finance Authority (a non-profit benefit corporation), $18,900,000 in Refunding Revenue Bonds Series 2015, bearing interest rates ranging between 2% and 5% and maturing on June 1, 2036. The proceeds of the 2015 Bonds were used to redeem the 2005 Bonds and pay the cost of issuance relating to the 2015 Bonds. This advance refunding resulted in lowered interest rate with an economic gain (difference between the present value of the old and new debt service payments) of $2.0 million, as well as cash flow savings of approximately $2.8 million and average annual debt service savings of $132,090 over the remaining life of the bonds. The District will pay all future bond obligations from the net revenues of the wastewater enterprise, derived primarily from charges and revenues received by the District. Principal and interest paid for the current fiscal year and total customer net revenues (operating income less depreciation) were $1,306,044 and $6,046,961, respectively.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 7: Long-Term Debt (Continued)
As of June 30, 2019, the annual debt service requirements for the Camarillo Sanitary District’s 2015 Wastewater Refunding Revenue Bonds were as follows:
Year Ending June 30, Principal Interest Total 2020 680,000$ 628,794$ 1,308,794$ 2021 710,000 594,794 1,304,794 2022 740,000 566,394 1,306,394 2023 770,000 536,794 1,306,794 2024 800,000 505,994 1,305,994
2025 - 2029 4,620,000 1,908,219 6,528,219 2030 - 2034 5,505,000 1,025,906 6,530,906 2035 - 2039 2,475,000 135,394 2,610,394
Totals 16,300,000$ 5,902,289$ 22,202,289$
2015 Wastewater Refunding Revenue Bonds
Note 8: Developer Deposits
The City accepts deposits from developers in the form of cash and non-cash securities related to developments within the City. Non-cash securities are issued by a U.S. Bank and are pledged to the City to guarantee completion of projects. Upon project completion, outstanding cash balances are refunded to the developers and any non-cash securities are released to the developer. As of June 30, 2019, non-cash deposits totaled $854,257.
Note 9: Fund Balances For Governmental Funds
Governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. As of June 30, 2019, fund balance for governmental funds were made up of the following: Nonspendable Amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example: inventories and prepaid amounts. Restricted Amounts that are restricted for specific purposes by external resource providers, constitutionally, through enabling legislation, or restrictions may effectively be changed or lifted only with the consent of resource providers. Committed Amounts that can only be used for the specific purposes determined by a formal adopted Resolution of the City Council. Commitments may be changed or lifted only by a formal adopted resolution of the City. The City Council has adopted a financial policy to maintain a minimum reserve level of 50% of the operating budget in the General Fund. This policy is developed to consider the minimum level necessary to maintain the City’s credit worthiness and to adequately provide for: 1) Economic uncertainties and other financial hardships or
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 9: Fund Balances For Governmental Funds (Continued)
downturns in the local or national economy, 2) Local disasters or catastrophic events, 3) Future debt or capital obligations, 4) Cash flow requirements, and 5) Legal requirements. Additional commitments of the General Fund fund balance are annually identified and authorized by resolution for: 1) Economic development, 2) Courthouse property reuse, 3) Natural disaster recovery, 4) Camarillo Springs Debris Barrier Remediation Maintenance, and 5) Pleasant Valley Recreation & Park District - senior center. The Finance Department will perform a reserve analysis to be submitted to the City Council upon occurrence of the following events: 1) City Council deliberation of the annual budget, 2) Presentation of the annual financial report, 3) Mid-year budget review, or 4) When a major change in conditions threatens the reserve levels established within this policy. If the analysis indicates projected or actual reserve levels that fall either 10% below or 10% above the levels outlined in this policy, at least one of the following actions will be included with the analysis: 1) An explanation of why the reserve levels are not at the targeted level, or 2) An identified course of action to bring reserve levels to the minimum prescribed.
Assigned Amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council to which the assigned amounts are to be used for specific purposes; such as, continued capital projects, capital improvement plan, and budget. The City Council did not delegate another body to assign fund balances. Assigned amounts also include all residual amounts in governmental funds (except negative amounts) other than the General Fund that are not classified as nonspendable, restricted or committed. Unassigned Residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts also include any residual negative amounts in governmental funds.
When restricted and unrestricted resources are available for expenditure for the same purpose, the City expends restricted resources before unrestricted resources. Within unrestricted resources, the fund balance is depleted in the order of committed, assigned, and unassigned.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 9: Fund Balances For Governmental Funds (Continued)
Fund balances as of June 30, 2019, for the governmental funds were categorized as nonspendable, restricted, committed, assigned, or unassigned for the following purposes:
General Fund
Development Fees Special
Revenue
Camarillo Corridor
Projects Area
Low-Moderate Income Housing
Asset
Total Other Governmental
Funds
Total Governmental
Funds
Fund balances:Nonspendable: Prepaid items 115,531$ -$ -$ -$ 2,500$ 118,031$ Deposits 125,000 - - - 40,000 165,000 Subtotal 240,531 - - - 42,500 283,031 Restricted for: Air quality management - - - - 43,848 43,848 Cable fees - - - - 1,671,303 1,671,303 Capital projects - 21,328,592 12,198,541 - 4,205,827 37,732,960 Economic development - - - - 702,598 702,598 Library operations - - - - 395,077 395,077 Low/Mod housing - - - 948,347 - 948,347 Maintenance - - - - 2,779,425 2,779,425 Debt service - - - - 498,796 498,796 Pension 5,455,177 - - - - 5,455,177 Subtotal 5,455,177 21,328,592 12,198,541 948,347 10,296,874 50,227,531 Committed for: Council reserve goal 21,478,734 - - - - 21,478,734 Economic development 7,750,000 - - - - 7,750,000 Courthouse property reuse 3,750,000 - - - - 3,750,000 Natural disaster recovery 10,000,000 - - - - 10,000,000 Camarillo Springs Debris Barrier 200,000 - - - - 200,000 Pleasant Valley Rec & Park District - Senior Center 8,000,000 - - - - 8,000,000 Subtotal 51,178,734 - - - - 51,178,734 Assigned for: Contract services 143,016 - - - - 143,016 Capital projects - - - - 6,988,330 6,988,330 Subtotal 143,016 - - - 6,988,330 7,131,346 0Unassigned: 10,921,126 - - - - 10,921,126 Total fund balances 67,938,584$ 21,328,592$ 12,198,541$ 948,347$ 17,327,704$ 119,741,768$
Major Funds
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 10: Non-City Obligations
West Camarillo Community Facilities District No.1 Mello Roos Bonds The City issued $8,200,000 of Mello Roos bonds dated September 1, 2004, for the West Camarillo Community Facilities District No. 1. The facilities authorized to be acquired or constructed with the proceeds of this debt issue included a portion of certain drainage and bridge facilities of benefit to the district. The Mello Roos bonds are not a general obligation of the City, and neither the faith nor the taxing power of the City, the State of California, or any political subdivision thereof is pledged to the payment of these bonds. The source of debt service is from property assessments within the district. These Mello Roos bonds were refinanced with the issuance of the $5,766,065 West Camarillo Community Facilities District No. 1 Special Tax Refunding Bond Series 2017 on June 6, 2017. At June 30, 2019, $5,457,300 was outstanding on these Mello Roos bonds.
Note 11: Jointly Governed Organizations
The City classifies the following jointly governed organizations as Agency Funds in the Fiduciary Fund Financial Statements. Wastewater Treatment Joint Powers Agreement (JPA) The City participates in a joint powers agreement (JPA) with the cities/agencies of Simi Valley, Thousand Oaks, the Camrosa Water District, and Calleguas Municipal Water District known as the Wastewater Treatment JPA. This JPA was formed in an effort opposing National Pollutant Discharge Elimination Systems (NPDES) permit regulations. The City acts as Treasurer for this JPA; recording agency deposits and the cost of legal expenses, performing technical research, and providing testimony in support of wastewater agencies discharging treated wastewater in Calleguas Creek Watershed area. The City’s annual financial responsibility to the JPA is budgeted annually and represents the City’s share of due or common project expenses. Ventura County Regional Defense Partnership for the 21st Century (RDP-21) The City participates in a jointly governed organization with the County of Ventura and the cities of Simi Valley, Oxnard, Port Hueneme, San Buenaventura, and Thousand Oaks, known as the Ventura County Regional Defense Partnership for the 21st Century (RDP-21). The purpose of RDP-21 is to promote and ensure economic growth of the area through collaborative efforts to enhance military facilities located in the County area. The City has acted as Treasurer of RDP-21 and maintains a separate agency fund to account for all deposits and expenses. The City’s annual financial responsibility to the RDP-21 is budgeted annually and represents the City’s share of due or common project expenses.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 11: Jointly Governed Organizations (Continued)
The City is also a member of the jointly governed organizations below: Ventura Council of Governments (VCOG) The Ventura Council of Governments (VCOG) is a voluntary joint powers authority representing the ten cities of Ventura County as well as the County. The goal of VCOG is to facilitate cooperative subregional and regional planning, coordination, and technical assistance on issues of mutual concern, and provide a platform for the review of federal and state projects which involve the use of federal and/or state funds. The governing body consists of a member and an alternate appointed by each City and the County of Ventura Board of Supervisors. Financial information for VCOG can be found at http://www.venturacog.org. Ventura County Area Housing Authority (AHA) The Area Housing Authority of the County of Ventura is an independent, non-profit agency serving the unincorporated areas of Ventura County and the cities of Camarillo, Fillmore, Moorpark, Ojai, Simi Valley, and Thousand Oaks. The goal of AHA is to provide opportunities and assistance to people in need of affordable housing through development, acquisitions, and partnerships. Financial information for VCOG can be found at http://www.ahacv.org. Western Riverside Council of Governments JPA (WRCOG) PACE Programs The Western Riverside Council of Governments is a public entity with the purpose of unifying Western Riverside County to speak with a collective voice on important issues that affect its members. WRCOG administers multiple PACE (Property Assessed Clean Energy) programs in collaboration with its private sector partners, which provide financing for energy efficiency, renewable energy, and water conservation retrofits on residential and commercial properties. The City is an associate member of the WRCOG for participation in PACE. Financial information for WRCOG can be found at http://www.wrcog.cog.ca.us.
Note 12: Risk Management
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Camarillo is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 12: Risk Management (Continued)
Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years FY 2012/13 and prior. Coverage years FY 2013/14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program – Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $40 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website: https://cjpia.org/protection/coverage-programs. Primary Workers’ Compensation Program – Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For FY 2018/19 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 12: Risk Management (Continued)
Purchased Insurance Property Insurance – The City of Camarillo participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Camarillo property is currently insured according to a schedule of covered property submitted by the City of Camarillo to the Authority. City of Camarillo property currently has all-risk property insurance protection in the amount of $181,695,391. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance – The City of Camarillo purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Camarillo property currently has earthquake protection in the amount of $178,312,472. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
Pollution Legal Liability Insurance – The City of Camarillo participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Camarillo. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2017 through July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year policy term.
Crime Insurance – The City of Camarillo purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Special Event Tenant User Liability Insurance – The City of Camarillo further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Camarillo according to a schedule. The City of Camarillo then pays for the insurance. The insurance is facilitated by the Authority.
Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage during FY 2018/19.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans
General Information about the Pension Plan a. Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City of Camarillo Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan are established by State statute and City resolution. CalPERS issues publicly available reports which include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of PERS’ annual financial report may be obtained from their Executive Office located at 400 Q Street, Sacramento, California 95811, or online at www.calpers.ca.gov.
b. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect as of the measurement date are summarized as follows:
Miscellaneous* Miscellaneous
PEPRA
Hire DatePrior to
January 1, 2013On or after
January 1, 2013
Benefit ProvisionBenefit Formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 yrs service 5 yrs service
Benefit payments monthly for life monthly for life
Retirement age 50-67 52-67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.000% to 2.500%
Required employee contribution rates 7.000% 6.750%
Required employer contribution rates 24.175% 24.175%
Major Benefit Options
*Closed to new entrants
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Employees Covered As of the measurement date, the City has 135 active employees, 151 inactive employees or beneficiaries currently receiving benefits, and 51 inactive employees entitled to but not yet receiving benefits that are covered by the benefit terms for the Miscellaneous Plan. Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. For the year ended June 30, 2019, the employer contributions recognized as a reduction to the net pension liability was $2,813,118. Net Pension Liability
The City of Camarillo’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Miscellaneous Plan is measured as of June 30, 2018, using an annual actuarial valuation as of June 30, 2017, rolled forward to June 30, 2018, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows:
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2018, the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Entry Age Normal in accordance with the
requirements of GASB Statement No. 68
Discount Rate 7.15%Inflation 2.50%Salary Increases Varies by Entry Age and ServiceMortality Rate Table (1) Derived using CalPERS’ Membership Data
for all Funds Post Retirement Benefit Increase
Contract COLA up to 2.00% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter
Actuarial Assumptions
(1) The mortality table used was developed based on CalPERS’ specific data.The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the2017 experience study report. All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study Report can be obtained at the CalPERS website under Forms and Publications.
Change of Assumptions In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Discount Rate The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF C) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF C fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed:
Asset Class
Current Target
AllocationReal Return
Years 1 - 10 (1)Real Return
Years 11+ (2)Global Equity 50.0% 4.80% 5.98%Global Fixed Income 28.0 1.00 2.62Inflation Assets 0.0 0.77 1.81Private Equity 8.0 6.30 7.23Real Assets 13.0 3.75 4.93Liquidity 1.0 0.00 (0.92)
(1) An expected inflation of 2.00% used for this period. (2) An expected inflation of 2.92% used for this period.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan were as follows:
Total Pension Liability
Plan Fiduciary Net Position
Net Pension Liability
Balance at June 30, 2017 (Valuation Date) 111,372,312$ 78,977,841$ 32,394,471$ Changes in the year:
Service cost 2,108,797 - 2,108,797 Interest on the total pension liability 7,664,664 - 7,664,664 Changes of assumptions (606,874) - (606,874) Differences between expected and actual experience (2,146,171) - (2,146,171) Net Plan to Plan Resource Movement - (195) 195 Contributions-employer - 2,813,118 (2,813,118) Contributions-employees - 817,377 (817,377) Net investment income - 6,743,383 (6,743,383) Benefit payments, including refunds of employee contributions (4,951,123) (4,951,123) - Administrative expense - (123,069) 123,069 Other Miscellaneous income/(Expense) - (233,711) 233,711 Net Changes During FY 2017/18 2,069,293 5,065,780 (2,996,487)
Balance at June 30, 2018 (Measurement Date) 113,441,605$ 84,043,621$ 29,397,984$
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan, calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:
Discount Rate - 1% Current Discount Discount Rate + 1%(6.15%) (7.15%) (8.15%)
Plan's Net Pension Liability 44,031,964$ 29,397,984$ 17,210,923$
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the fiscal year ended June 30, 2019, the City recognized pension expense of $3,231,899. At June 30, 2019, the City reported net deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of ResourcesPension contributions subsequent to measurement date 3,119,397$ -$ Changes in assumptions 2,640,254 (438,298) Difference between expected and actual experiences - (2,153,192) Net differences between projected and actual earnings on plan investments - (11,086) Total 5,759,651$ (2,602,576)$
Contributions subsequent to the measurement date in the amount of $3,119,397 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period Ending June 30
Deferred Outflows/(Inflows)
of Resources2019 1,441,216$ 2020 148,647 2021 (1,318,374) 2022 (233,811)
37,678$
Defined Contribution Plan Plan Description – The City established with the International City Managers Association (ICMA) an additional pension plan for all its employees (143 employees at June 30, 2019) through a 401(a) Defined Contribution Plan (Plan). In a defined contribution plan, benefits depend solely on amounts contributed to the Plan plus investment earnings. Employees are participants from the date of employment. Benefit provisions and all other requirements are established by the Plan and City ordinance. Information regarding this 401(a) Defined Contribution Plan may be obtained from ICMA Retirement Corporation at 777 North Capital Street NE, Washington, DC 20002.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Funding Policy – For regular full-time and part-time employees, the Plan is contributory on the part of the City in an amount equal to 7% of the employee’s base pay each payroll period. The City’s total payroll for the FY 2018/19 was $15,115,317. The City’s contributions were calculated using the base salary amount of $13,095,053 at 7%, amounting to $916,655. Effective January 1, 2018 all employees not eligible for PERS contribute 0.5% of salary to the 457 PTS Plan. Employees hired after 1986 also contribute to Medicare. The assets of the Plan are held for the exclusive benefit of the plan participants and their beneficiaries, and the assets shall not be diverted for any other purpose. Each participant directs the investments in the participant’s separate accounts. The City has no liability for any losses that may be incurred by the Plan. Accordingly, these assets are not included in the basic financial statements.
Other Post-Employment Healthcare Benefits (OPEB)
Plan Description – The City participates in the CalPERS medical program, an agent multiple employer defined benefit healthcare plan administered by CalPERS. CalPERS established the plan under the Public Employee’s Medical and Hospital Care Act (PEMHCA) as of July 1, 1988. Health insurance premiums of the plan are established and amended by the CalPERS Board. Employees who retire from the City and receive a CalPERS pension are eligible to participate in the PEMHCA health insurance plans for postemployment medical benefits. As a condition to the City’s contract for health insurance for its active employees, CalPERS requires a minimum contribution for retirees who participate in a health insurance plan. Retirees can enroll in any of the available CalPERS medical plans. This benefit continues for the life of the retiree and surviving spouse. Benefit provisions for CalPERS are established by the Public Employees Retirement Law (Part 3 of the California Government Code, Section 20000 et seq.). In order to fund the retirees benefit, the City established an irrevocable trust with Public Agency Retirement Services (PARS).
PARS issues a separate annual financial report, and copies of the report may be obtained by writing to PARS at 4350 Von Karman Ave., Suite 100, Newport Beach, California 92660, or by calling (800) 540-6369. Employees Covered As of the June 30, 2018 actuarial valuation, the following current and former employees were covered by the benefit terms under the Health Care Plan:
Active employees 138 Inactive employees or beneficiaries currently receiving benefits 56 Totals 194
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Contributions The Health Care Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the measurement date ended June 30, 2018, the City’s cash contributions were $73,696 in total payments, which were recognized as a reduction to the OPEB liability (asset). Net OPEB Liability (Asset) The City’s net OPEB liability (asset) was measured as of June 30, 2018 and the total OPEB liability used to calculate the net OPEB liability (asset) was determined by an actuarial valuation dated June 30, 2018 that was rolled forward to determine the June 30, 2018 total OPEB liability, based on the following actuarial methods and assumptions:
Asset Valuation MethodActuarial assumptions:
Discount rate 6.00%Inflation 2.25%Salary increases
Mortality Rate(1)
Pre-Retirement Turnover(2)
Healthcare Trend Rate
Market value of assets
Medical plan premiums are assumed to increase at somewhat higher rates than assumed in the prior valuation, with the ultimate trend of 5.0% per year
Derived using CalPERS' membership data for all funds
Derived using CalPERS' membership data for all funds
3.00% per year, used only to allocated to cost of benefits between service years
Notes: (1) Pre-retirement mortality information was derived from data collected during 1997 to 2015 CalPERS Experience Study dated December 2017 and post-retirement mortality information was derived from the 1995 to 2015 CalPERS Experience Study. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.
(2) The pre-retirement turnover information was developed based on CalPERS’ specific data. For more details, please refer to the 1995 to 2015 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset ClassTarget
Allocation
Long-term expected real rate of return
Equity 50.00% 7.48%Fixed Income 45.00% 5.10%Cash 5.00% 3.00%Total 100.00%
Discount Rate The discount rate used to measure the total OPEB liability was 6.00 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Changes in the Net OPEB Liability (Asset) The changes in the net OPEB liability (asset) for the Health Care Plan are as follows:
Total OPEB Liability
Plan Fiduciary Net Position
Net OPEB Liability (Asset)
4,086,906$ 4,129,644$ (42,738)$ Change in the year:
Service Cost 87,998 - 87,998 Interest 260,390 - 260,390 Difference between expected and actual experience - 12,827 (12,827) Expected investment income - 259,098 (259,098) Changes in assumptions 549,173 - 549,173 Contribution-employer - 73,696 (73,696) Administrative Expenses - (24,171) 24,171 Benefit payments, including refunds of employee contributions (83,470) (83,470) -
Net changes 814,091 237,980 576,111
4,900,997$ 4,367,624$ 533,373$
Increase (Decrease)
Balance at June 30, 2018 (measurement date June 30, 2017)
Balance at June 30, 2019 (measurement date June 30, 2018)
Sensitivity of the net OPEB Liability/(Asset) to Changes in the Discount Rate The following presents the net OPEB liability/(asset) of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018:
1% Decrease (5.00%)
Current Discount Rate
(6.00%)1% Increase
(7.00%)Net OPEB Liability/(Asset) 1,106,797$ 533,373$ 53,481$
Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability/(asset) of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018:
1% Decrease Current Healthcare
Cost Trent Rates 1% IncreaseNet OPEB Liability/(Asset) 376,992$ 533,373$ 711,373$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
OPEB Plan Fiduciary Net Position PARS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from the Public Agency Retirement Services, 4350 Von Karman Ave, Newport Beach, California 92660. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2019, the City recognized OPEB expense of $234,878. As of fiscal year ended June 30, 2019, the City reported deferred outflows of resources related to OPEB from the following sources:
Deferred Outflows of
Deferred Inflows of Resources
OPEB contributions subsequent to measurement date 87,577$ -$ Changes of assumptions 457,645 - Differences between expected and actual experience - 56,483 Net difference between projected and actual earnings on OPEB plan investments - 100,805 Total 545,222$ 157,288$
The $87,577 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2018 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
Fiscal Year Ended June 30:
Deferred Outflows/Inflows
of Resources2020 47,721$ 2021 47,721 2022 47,721 2023 77,900 2024 79,294
Total 300,357$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 13: Employee Retirement Plans (Continued)
Section 457 Part-Time, Temporary, and Seasonal (PTS) Deferred Compensation Plan
Plan Description – The City participates in the 457 PTS plan administered by ICMA Retirement Corporation. The primary purpose of this plan is to provide retirement income and other deferred benefits to City employees in accordance with the provisions of Section 457 of the Internal Revenue Code of 1986. Pursuant to the IRC 457 subsection (g); all amounts of compensation deferred under the deferred compensation plan, all property, or rights are solely the property and rights of the employee and beneficiaries of the plan. Deferred compensation funds are not subject to the claims of the City’s general creditors; consequently, the assets and related liabilities of the plan are not included within the City’s financial statements. Employees not eligible for PERS after January 1, 2018 contribute 0.5% of salary to the Plan, in addition to the 7% City contribution. All employees are fully vested upon enrollment. As of June 30, 2019, 17 employees participate in the Plan and the ending investment balance was $37,103.
Note 14: Commitments and Contingencies
Lawsuits in the Normal Course of Business
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City’s insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.
Federal and State Grant Programs
The City participates in several federal and state grant programs. These programs are subject to further examination by the grantors, and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 14: Commitments and Contingencies (Continued)
Construction Commitments
The City had several outstanding or planned construction projects as of June 30, 2019. These projects are committed by contractual agreements with contractors, and include the following major projects:
Spent to Date Commitment Remaining
Name of Funds Committed Souce of Funds
Annual Overlay 259,935$ 3,301,621$ Capital Improvement Projects Fund (1)Pleasant Valley Desalter Project 8,785,007 1,129,223 Water Capital Projects Fund (2) Total 9,044,942$ 4,430,844$
(1)(2)
Project Description
The Pleasant Valley Desalter Project is funded by Water Capital Projects Fund from user fees, federal grants and capital fees.The Annual Overlay project is funded by SB1, TDA Article 8a and Traffic Mitigation Fees.
As of June 30, 2019, in the opinion of City management, no additional outstanding matters would have a significant effect on the financial position of the funds of the City.
Note 15: Restatement of Prior Year Balances
The various restatements of beginning net position or fund balance and the reasons for each are as follows:
Camarillo Other
Governmental Corridor Projects GovernmentalActivities (1) Fund (1) Funds (1)
Beginning Net Position/Fund Balance, as Previously Reported 373,564,615$ 18,644,161$ 17,725,332$
Restatement (142,000) 635,616 183,033
Beginning Net Position/Fund Balance, as Restated 373,422,615$ 19,279,777$ 17,908,365$
(1) Beginning net position of governmental activities and the fund balances of the Camarillo Corridor Projects Area and other governmental funds were restated due to the movement of property purchased for resale in prior years held in construction in process. Property purchased with the intent to resale should be classified as an inventory asset at the fund level rather than expensed as capital outlay.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 16: Related Organization
The Camarillo Ranch Foundation (the Foundation) is an individual nonprofit public benefit corporation which was incorporated under the laws of the State of California on August 26, 1998. The Foundation was created to restore and preserve the main house, farm, and grounds of the original home of Adolfo Camarillo. The home is a historical site owned by the City of Camarillo. The City Council appoints the non-self-perpetuating Board of Directors for the Foundation and approves amendments to the Articles of Incorporation and Bylaws. Although the Foundation is legally separate from the City, governmental accounting standards require the Foundation to be reported as a related organization of the City for financial reporting purposes because of the City’s accountability via the appointment of the board members. Separate financial statements for the corporation can be obtained from the City’s Finance Department.
Note 17: Springville Interchange Benefit Area Credit Agreement In 2009, the City of Camarillo initiated proceedings to form the Springville Interchange Benefit Area (SIBA). SIBA was formed in order to provide a funding mechanism to establish a new supplemental bridge fee. These fees would help fund improvements that provide access to Route 101 as well as convenient and necessary access to both the residential developments that lie to the north of the freeway and the predominantly commercial and industrial developments located south of the freeway. On December 10, 2009 the City entered into the third amendment to agreement regarding consideration for the dedication of real property. The agreement was between the City and Rancho Associates (Rancho), a limited partnership and Ran Associates (Ran), a limited partnership. Pursuant to the agreement Rancho and Ran transferred title to certain Real Property Interests to the City for the purpose of constructing the Springville Interchange and Springville Drive. Additionally, Real Property Interests necessary for the extension of Springville Drive, Ponderosa Drive, and the development of the respective Ran and Rancho Remainder Property was dedicated to the City. The Real Property Interest dedicated to the City by Ran and Rancho for the Springville Interchange Benefit Area were assigned a combined value of $5 million. Up to $1 million of the value was to be paid in cash to Ran and Rancho with the remaining $4 million deemed as a credit towards the bridge fee that the Ran and Rancho Remainder Property were subject to upon development. As of June 30, 2019, the remaining SIBA fee credit balance is $1,186,244 out of the original $4 million credit.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 18: Subsequent Events
In July 2019, the Camarillo Public Finance Authority (the Authority) authorized the sale of Water Revenue Bonds in the amount of $11,800,000 to fund $12.7 million in costs to construct the North Pleasant Valley Desalter Facility. The Water Revenue Bonds have a proposed term of 20 years generating net proceeds of approximately $12,695,000. The Bonds will be callable (which means the issuer has the option to redeem them from the investor prior to its maturity) after eight years without penalty. There will also be an option for a special Bond call from USBR grant proceeds after three years. If the City is awarded additional USBR Grant funding, then unrestricted Water Funds will be available to call Bonds resulting in a reduction of annual debt service and shortening the term of the Bonds.
Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency
Summary of Creation of Successor Agency Private-Purpose Trust Fund
In 1996, the City established the Camarillo Community Development Commission (CDC) to implement the Camarillo Corridor Project Redevelopment Program. On June 27, 2012, as part of the FY 2012/13 state budget package, the Legislature passed and the governor signed AB 1484, which made technical and substantive amendments to the Dissolution Act Assembly Bill X1 26 that was enacted on June 29, 2011, as part of the FY 2011/12 State Budget Passage. Under the Dissolution Act, each California redevelopment agency (each a “Dissolved RDA”) was dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA, together with other designated entities, have initiated the process under the Dissolution Act to unwind the affairs of the Dissolved RDA. On January 11, 2012, the City elected to serve as the Successor Agency to the Camarillo Community Development Commission for the purpose of unwinding the affairs of the Dissolved RDA. Activities of the Successor Agency are reported in fiduciary fund (private-purpose trust fund) in the financial statements of the City. The Dissolution Act created oversight boards which monitor the activities of the successor agencies. The roles of the successor agencies and oversight boards is to administer the wind down of each Dissolved RDA which includes making payments due on enforceable obligations, disposing of the assets (other than housing assets) and remitting the unencumbered balances of the Dissolved RDAs to the County Auditor-Controller for distribution to the affected taxing entities. The Dissolution Act also allowed the sponsoring community that formed the Dissolved RDA to elect to assume the housing functions and take over certain housing assets of the Dissolved RDA.
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
City of Camarillo as Successor Agency
The City, as Successor Agency, received approval of a long-range property management plan (PMP) from the State Department of Finance (DOF) on June 2, 2014, to guide the future development of properties held by the former RDA. To implement and manage the PMP projects, the City and the Successor Agency executed a DOF approved agreement regarding expenditures of excess bond proceeds of $12.1 million to fund the following infrastructure:
Capital Project: Entertainment Center/Bowling Alley Site Improvements Capital Project: Conference Center Drain Improvements Capital Project: Dizdar Park Improvements Capital Project: Fire Station Reuse
The Dissolution Act and AB 1484 also establish roles for the County Auditor-Controller, the California Department of Finance (DOF) and the California State Controller’s office in the dissolution process for the satisfaction of enforceable obligations of the Dissolved RDAs. Recognized Obligation Payment Schedule The County Auditor-Controller is charged with establishing a Redevelopment Property Tax Trust Fund (RPTTF) for each Successor Agency and depositing into the RPTTF for each six-month period, the amount of property taxes that would have been redevelopment property tax increment had the Dissolved RDA not been dissolved. The deposits in the RPTTF fund are to be used to pay the Successor Agency’s enforceable obligations for the upcoming six-month period. The Successor Agency is required to prepare a recognized obligation payment schedule (the ROPS) approved by the countywide oversight board setting forth the amounts due for each six-month enforceable obligation period. The ROPS is submitted to the DOF for approval. The County Auditor-Controller will make payments to the Successor Agency from the RPTTF fund based on the ROPS amount approved by the DOF. The ROPS was prepared in advance for the enforceable obligations due over the next twelve months through ROPS 18/19, and subsequently over the next twelve-month period effective ROPS 19/20. The Successor Agency received the following amount from the County Auditor-Controller in FY 2018/19: $3,364,962 on December 27, 2018, for ROPS 18-19B (for the payment of January 1, 2019 through June 30, 2019 enforceable obligations) and $90,545 on May 30, 2019 for ROPS 19-20A (for the payment of July 1, 2019 through December 31, 2019 enforceable obligations).
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Long-Term Debt The following is a summary of long-term debt transactions for the fiscal year ended June 30, 2019:
Balance at June 30, 2018 Deletions
Balance at June 30, 2019
Amounts Due Within One
Year
Amounts Due in More Than One
Year
2014 Successor Agency (SA) Refunding Bonds 14,440,000$ 475,000$ 13,965,000$ 500,000$ 13,465,000$ Premium on 2014 SA Bonds 2,005,216 108,390 1,896,826 - 1,896,826
2016A Senior Lien Tax AllocationRefunding Bonds 4,560,000 - 4,560,000 - 4,560,000
2016A-T Taxable Senior Lien Tax AllocationRefunding Bonds 4,570,000 260,000 4,310,000 260,000 4,050,000 Discount on 2016 A & A-T Bonds (90,311) (4,014) (86,297) - (86,297)
2016B Tax Allocation Refunding Bonds 30,165,000 550,000 29,615,000 570,000 29,045,000 Premium on 2016B Bonds 826,411 36,729 789,682 - 789,682
Total Fiduciary Activities 56,476,316$ 1,426,105$ 55,050,211$ 1,330,000$ 53,720,211$
Classification
2014 CDC Tax Allocation Refunding Bonds – Original Issue $15,915,000 On November 5, 2014, the City of Camarillo in its capacity as Successor Agency to the Former Camarillo Community Development Commission (CDC), issued $15,915,000 Tax Allocation Refunding Bonds (2014 Bonds), with interest rates ranging from 3.50% to 5.25%, with a maturity date of September 1, 2036. The proceeds of the 2014 Bonds were used to refund the 2004 CDC Bonds, purchase a reserve fund surety bond and fund the cost of issuance relating to the 2014 Bonds. With this refunding, the City realized a net present value savings of approximately $1.18 million and average annual debt service savings of $150,222 over the remaining life of the bonds. Total principal and interest remaining on the bond totals $21,197,425 and is payable through FY 2036/37. The annual debt service requirements at June 30, 2019, were as follows:
Year Ending June 30 Principal Interest Total
2020 500,000$ 684,675$ 1,184,675$ 2021 525,000 659,050 1,184,050 2022 550,000 632,175 1,182,175 2023 580,000 603,925 1,183,925 2024 605,000 574,300 1,179,300
2025 - 2029 3,525,000 2,377,813 5,902,813 2030 - 2034 4,435,000 1,438,906 5,873,906 2035 - 2037 3,245,000 261,581 3,506,581
Totals 13,965,000$ 7,232,425$ 21,197,425$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
2016A Senior Lien Tax Allocation Refunding Bonds – Original Issue $4,985,000 On December 22, 2016, the City of Camarillo in its capacity as Successor Agency to the Former Camarillo Community Development Commission (CDC), issued $4,985,000 Senior Lien Tax Allocation Refunding Bonds (2016A Bonds), with interest rates ranging from 2.00% to 5.00%, with a maturity date of September 1, 2041. The proceeds of the 2016A Bonds were used to refund the 2006 CDC Bonds, purchase a reserve fund surety bond and fund the cost of issuance relating to the 2016A Bonds. With this refunding, the City reduced its total debt service payments by $526,618 and obtained an economic gain (difference between the present values of the old and new debt service payments) of $124,211. The City, as Successor Agency to the CDC, will pay all future bond obligations with RPTTF distributions to service enforceable obligations. Total principal and interest remaining on the bond totals $8,031,550 and is payable through FY 2041/42. The annual debt service requirements at June 30, 2019, were as follows:
Year Ending June 30 Principal Interest Total 2020 -$ 188,000$ 188,000$ 2021 - 188,000 188,000 2022 - 188,000 188,000 2023 - 188,000 188,000 2024 - 188,000 188,000
2025 - 2029 - 940,000 940,000 2030 - 2034 560,000 918,750 1,478,750 2035 - 2039 2,350,000 572,200 2,922,200 2040 - 2042 1,650,000 100,600 1,750,600
Totals 4,560,000$ 3,471,550$ 8,031,550 $
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
2016A-T Taxable Senior Lien Tax Allocation Refunding Bonds – Original Issue $4,570,000 On December 22, 2016 the City of Camarillo in its capacity as Successor Agency to the Former Camarillo Community Development Commission (CDC), issued $4,310,000 Taxable Senior Lien Tax Allocation Refunding Bonds (2016A-T Bonds), with interest rates ranging from 1.625% to 4.00%, with a maturity date of September 1, 2032. The proceeds of the 2016A-T Bonds were used to refund the 2006 CDC Bonds, purchase a reserve fund surety bond and fund the cost of issuance relating to the 2016A-T Bonds. With this refunding, the City reduced its total debt service payments by $1,142,834 and obtained an economic gain (difference between the present values of the old and new debt service payments) of $588,557. Total principal and interest remaining on the bond totals $5,484,628 and is payable through FY 2032/33. The annual debt service requirements at June 30, 2019, were as follows:
Year Ending June 30 Principal Interest Total
2020 260,000$ 141,944$ 401,944$ 2021 265,000 136,528 401,528 2022 270,000 130,506 400,506 2023 285,000 123,381 408,381 2024 290,000 115,113 405,113
2025 - 2029 1,585,000 424,456 2,009,456 2030 - 2033 1,355,000 102,700 1,457,700
Totals 4,310,000$ 1,174,628$ 5,484,628$
2016B Tax Allocation Refunding Bonds – Original Issue $31,295,000 On December 22, 2016, the City of Camarillo in its capacity as Successor Agency to the Former Camarillo Community Development Commission (CDC), issued $31,295,000 Tax Allocation Refunding Bonds (2016B Bonds), with interest rates ranging from 2.00% to 5.00%, with a maturity date of September 1, 2041. The proceeds of the 2016B Bonds were used to refund the 2006 and 2009 CDC Bonds, purchase a reserve fund surety bond and fund the cost of issuance relating to the 2016B Bonds With this refunding, the City reduced its total debt service payments by $4,960,142 and obtained an economic gain (difference between the present values of the old and new debt service payments) of $1,332,945. Total principal and interest remaining on the bond totals $48,316,450 and is payable through FY 2041/42. The annual debt service requirements at June 30, 2019, were as follows:
Year Ending June 30 Principal Interest Total
2020 570,000$ 1,255,000$ 1,825,000$ 2021 595,000 1,228,725 1,823,725 2022 625,000 1,198,225 1,823,225 2023 650,000 1,166,350 1,816,350 2024 690,000 1,132,850 1,822,850
2025 - 2029 3,920,000 5,173,900 9,093,900 2030 - 2034 4,880,000 4,170,500 9,050,500 2035 - 2039 8,850,000 2,836,600 11,686,600 2040 - 2042 8,835,000 539,300 9,374,300
Totals 29,615,000$ 18,701,450$ 48,316,450$
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CITY OF CAMARILLO NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2019 Note 19: Successor Agency Trust for Assets of Former Redevelopment Agency (Continued)
Pledged Revenue Health and Safety Code Section 34177 requires the City of Camarillo in the Capacity of Successor Agency to the CDC to continue to make payments due for enforceable obligations (i.e. debt service). RPTTF distributions will continue to repay the tax allocation bonds and tax refunding bonds of the City of Camarillo as the Successor Agency to the former CDC. Total principal and interest remaining on the allocation bonds totals $83,030,053, payable through FY 2041/42. Current fiscal year bond principal and interest paid with RPTTF were as follows:
Bond SeriesPrincipal and
Interest2014 Successor Agency Tax Allocation Refunding Bonds 1,184,050$ 2016A Senior Lien Tax Allocation Refundings Bonds, Series 2016A 188,000 2016A-T Taxable Senior Lien Tax Allocation Refunding Bonds, Series A-T 406,656 2016B Tax Allocation Refunding Bonds, Series 2016B 1,824,650
3,603,356$
Tax Increment Revenue
RPTTF Distribution paid to Successor Agency (including distribution to pay Adminstrative Expenses) 3,455,507$
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REQUIRED SUPPLEMENTARY
INFORMATION
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CITY OF CAMARILLO
MISCELLANEOUS PLANSCHEDULE OF PLAN CONTRIBUTIONSAS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018 2019Actuarially Determined Contribution 2,325,428$ 2,533,480$ 2,703,270$ 2,813,118$ 3,119,397$ Contribution in Relation to the Actuarially Determined Contribution (2,325,428) (2,533,480) (2,703,270) (2,813,118) (3,119,397)Contribution Deficiency (Excess) -$ -$ -$ -$ -$
Covered Payroll 11,104,864$ 11,057,800$ 11,487,379$ 11,917,898$ 12,131,043$
Contributions as a Percentage of Covered Payroll 20.94% 22.91% 23.53% 23.60% 25.71%
Note to Schedule:
Valuation Date: June 30, 2016
Methods and assumptions used to determine contribution rates:Actuarial cost method Entry age normal cost methodAmortization method/period Level percentage of payroll, closedAssets valuation method Market ValueInflation 2.75%Payroll GrowthInvestment rate of return
Retirement age
Mortality
(1) Historical information is required only for measurement for which GASB 68 is applicable. FY 2014/15 was the first year of implementation, therefore only five years are shown.
3.00%
The mortality table used was developed based on CalPERS’ specific data. The table includes 20years of mortality improvements using Society of Actuaries Scale BB. For more details on thistable, please refer to the 2014 experience study report.
All other actuarial assumptions used in the June 30, 2016 valuation were based on the results ofan actuarial experience study for the period from 1997 to 2011, including updates to salaryincrease, mortality and retirement rates. The Experience Study report may be accessed on theCalPERS website at www.calpers.ca.gov under Forms and Publications.
7.375% net of pension investment and administrative expenses, including inflation.
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CITY OF CAMARILLO
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019
Total OPEB Liability
Service cost 85,228$ 87,998$
Interest on the total OPEB liability 249,258 260,390
Differences between expected and actual experiences (78,605) -
Changes in assumptions - 549,173
Benefit payments (79,229) (83,470)
Net change in total OPEB liability 176,652 814,091
Total OPEB liability - beginning 3,910,254 4,086,906
Total OPEB liability - ending (a) 4,086,906$ 4,900,997$
Plan Fiduciary Net Position
Contribution - employer 98,470$ 73,696$
Net investment income 386,435 259,098
Difference between expected and actual investmetn income - 12,827
Benefit payments (79,229) (83,470)
Administrative expense (10,119) (24,171)
Net change in plan fiduciary net position 395,557 237,980
Plan fiduciary net position - beginning 3,734,087 4,129,644
Plan fiduciary net position - ending (b) 4,129,644$ 4,367,624$
Net OPEB Liability/(Asset) - ending (a) - (b) (42,738)$ 533,373$
Plan fiduciary net position as a percentage of the total OPEB liability 101.05% 89.12%
Covered-employee payroll 14,948,682$ 15,529,727$
Net OPEB asset as a percentage of covered-employee payroll -0.29% 3.43%
(2) Changes of Assumptions: In 2018, the discount rate was reduced from 6.30% to 6.00%.
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of
implementation. Future years' information will be displayed up to 10 years as information becomes available.
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Special Revenue Funds:
NON-MAJOR GOVERNMENTAL FUNDS
The City has established the following governmental funds in order to account for the proceeds from revenue sources that are
restricted to expenditures for specified purposes, debt service, and capital projects. Budgets are prepared using the modified
accrual basis of accounting consistent with U.S. generally accepted accounting principles.
Article 8 TDA Fund - This fund is used to account for special state subventions under the Transportation Development Act (TDA)
that are legally restricted to the maintenance of highways within the City's boundaries.
Gas Tax Fund - This fund is used to account for motor fuel tax revenues that are legally restricted to the maintenance and
construction of streets.
Article 3 TDA Fund - This fund is used to account for special state subventions under the TDA that are legally restricted to the
maintenance of bikeways and handicapped ramps within the City's boundaries.
Adolfo Glen III Maintenance District - This is used to account for revenues from assessments that are to be used to maintain
landscaping within this district.
Adolfo Glen II Maintenance District - This is used to account for revenues from assessments that are to be used to maintain
landscaping within this district.
Maintenance Districts Special Revenue Fund - This fund accounts for restricted property tax and/or assessments to be used
for maintenance within the eleven districts below:
Sares/Regis Maintenance District - This is used for maintenance of a drainage basin which serves the Sares/Regis Tract.
Spanish Hills Maintenance District - This is used to account for revenues from assessments that are to be used for
maintenance of landscaping within this district.
Presley Maintenance District - This is used to account for revenues from assessments that are to be used for maintenance of
landscaping in the flood control areas located off Sierra Mesa.
Mission Oaks Industrial - This is used to account for revenues from assessments that are to be used to maintain landscaping
within the district.
Armitos Storm Basins Maintenance District - This is used to maintain three storm drain desilting basins which serve the
Armitos Tract.
Wittenberg Maintenance District 2A - This is used to account for revenues from assessments levied on properties within the
Wittenberg subdivision that are specifically restricted to the maintenance of landscape and open space areas within and
immediately adjacent to the tract.
Mission Oaks MD1A - This is used to account for revenues from property taxes and assessments levied on the property within
the Mission Oaks district that are specifically restricted to the district's median, parkway, slopes, and tree maintenance.
Lighting and Landscape Maintenance - This is used to account for property tax revenues that are restricted to citywide street
lighting and landscape maintenance expenditures.
Air Quality Management Fund - This fund is used to account for revenues from air quality impact fees that are required to be
used for transportation mitigation.
SB1 - This fund is used to account for revenues received for road maintenance and rehabilitation apportionments from the State of
California and expenditures for projects.
Vista Las Posas Maintenance District - This is used for the maintenance of entrance street landscaping and a storm water
detention basin in the Vista Las Posas development.
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NON-MAJOR GOVERNMENTAL FUNDS
Library Debt Service Fund - This fund is used to account for the accumulation of resources and payment of long-term debt
principal and interest for bonds issued by the City to finance the construction of the Library.
Debt Service Funds:
Community Facilities District (CFD) #1 Fund - This fund is used to account for capital asset acquisition and construction in the
Community Facilities District, including a bridge at the 101/Central Avenue Interchange, sewer improvements and drainage
improvements together with appurtenances and appurtenant work, equipment, real property, and other tangible property.
Capital Improvement Projects Fund - This fund is used to account for capital asset acquisition, construction and improvement of
capital facilities, including infrastructure, from general government resources, developer fees, and intergovernmental grants.
Capital Projects Funds:
Cable PEG Fees Fund - This fund is used to account for revenues dedicated to capital improvements of cable Public Access
facilities.
Library Special Revenue Fund - This fund is used to account for public contributions that are legally restricted to the operations
of the Library.
Community Development Block Grant Fund - This fund is used to account for Federal Entitlements and related expenditures
restricted for the purpose of providing resources primarily for home rehabilitation projects for low income applicants, first-time
home buyers, senior housing projects, and the Fair Housing Counseling Program.
117
CITY OF CAMARILLO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Assets:
Cash and investments 3,104,060$ 790$ 176$ 853,177$
Receivables:
Accounts - - - 224,977
Notes and loans - - - -
Accrued interest 20,242 - 5,384 2,581
Grants - - - -
Prepaid costs - - - -
Deposits - - - -
Land held for resale - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Total Assets 3,124,302$ 790$ 5,560$ 1,080,735$
Liabilities and Fund Balances:
Liabilities:
Accounts payable -$ -$ -$ -$
Accrued liabilities - - - -
Retentions payable - - - -
Deposits payable - - - -
Total Liabilities - - - -
Fund Balances:
Nonspendable: - - - -
Restricted 3,124,302 790 5,560 1,080,735
Assigned - - - -
Total Fund Balances 3,124,302 790 5,560 1,080,735
Total Liabilities and Fund Balances 3,124,302$ 790$ 5,560$ 1,080,735$
Special Revenue Funds
Article 8 TDA Article 3 TDA Gas Tax SB1
118
CITY OF CAMARILLO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Grants
Prepaid costs
Deposits
Land held for resale
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Deposits payable
Total Liabilities
Fund Balances:
Nonspendable:
Restricted
Assigned
Total Fund Balances
Total Liabilities and Fund Balances
(CONTINUED)
2,991,960$ 43,582$ 37,912$ 451,861$
79,849 - - -
- - 477,251 -
13,819 266 - 3,088
- - 77,967 -
- - - -
- - - -
- - 183,033 -
- - - -
3,085,628$ 43,848$ 776,163$ 454,949$
256,250$ -$ 73,565$ 59,777$
50,515 - - -
4,998 - - -
- - - 95
311,763 - 73,565 59,872
- - - -
2,773,865 43,848 702,598 395,077
- - - -
2,773,865 43,848 702,598 395,077
3,085,628$ 43,848$ 776,163$ 454,949$
Special Revenue Funds
Community
Development
Block Grant Library
Air Quality
Management
Maintenance
Districts
Special
Revenue
119
CITY OF CAMARILLO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Assets:
Cash and investments
Receivables:
Accounts
Notes and loans
Accrued interest
Grants
Prepaid costs
Deposits
Land held for resale
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Deposits payable
Total Liabilities
Fund Balances:
Nonspendable:
Restricted
Assigned
Total Fund Balances
Total Liabilities and Fund Balances
Special
Revenue Funds
Debt Service
Fund
Total
Governmental
Funds
1,629,884$ 7,556,596$ -$ 60$ 16,670,058$
33,006 - - - 337,832
- - - - 477,251
8,413 - - - 53,793
- - - - 77,967
- 2,500 - - 2,500
- 40,000 - - 40,000
- - - - 183,033
- - - 498,736 498,736
1,671,303$ 7,599,096$ -$ 498,796$ 18,341,170$
-$ 215,067$ -$ -$ 604,659$
- - - - 50,515
- 15,296 - - 20,294
- 337,903 - - 337,998
- 568,266 - - 1,013,466
- 42,500 - - 42,500
1,671,303 - - 498,796 10,296,874
- 6,988,330 - - 6,988,330
1,671,303 7,030,830 - 498,796 17,327,704
1,671,303$ 7,599,096$ -$ 498,796$ 18,341,170$
Library Debt
Service
Capital
Improvement
Projects
Community
Facilities
District (CFD)
#1
Cable PEG
Fees
Capital Projects Fund
120
121
CITY OF CAMARILLO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Revenues:
Taxes -$ -$ -$ -$
Subventions and grants 2,382,314 8,770 1,416,622 1,260,586
Charges for services - - 1,103 -
Investment earnings 112,060 395 19,642 14,287
Fines and forfeitures - - - -
Contributions and developer fees - - - -
Total Revenues 2,494,374 9,165 1,437,367 1,274,873
Expenditures:
Current:
Economic development - - - -
Cultural arts and library services - - - -
Highways and streets - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,494,374 9,165 1,437,367 1,274,873
Other Financing Sources (Uses):
Transfers in - - - -
Transfers out (3,788,117) (8,770) (1,761,000) (341,966)
Total Other Financing Sources
(Uses) (3,788,117) (8,770) (1,761,000) (341,966)
Net Change in Fund Balances (1,293,743) 395 (323,633) 932,907
Fund Balances, Beginning of Year 4,418,045 395 329,193 147,828
Restatements - - - -
Fund Balances, Beginning of Year, as Restated 4,418,045 395 329,193 147,828
Fund Balances, End of Year 3,124,302$ 790$ 5,560$ 1,080,735$
Special Revenue Funds
Gas Tax SB1 Article 8 TDA Article 3 TDA
122
CITY OF CAMARILLO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Revenues:
Taxes
Subventions and grants
Charges for services
Investment earnings
Fines and forfeitures
Contributions and developer fees
Total Revenues
Expenditures:
Current:
Economic development
Cultural arts and library services
Highways and streets
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
(CONTINUED)
2,902,839$ -$ -$ -$
- - 226,650 -
210,584 40,018 - -
83,139 1,472 - 17,098
5,780 - - -
- - - 427,738
3,202,342 41,490 226,650 444,836
- - 390,682 -
- - - 465,357
5,155,537 - - -
123,465 - - -
- - - -
- - - -
5,279,002 - 390,682 465,357
(2,076,660) 41,490 (164,032) (20,521)
1,708,267 - - -
- (20,152) - -
1,708,267 (20,152) - -
(368,393) 21,338 (164,032) (20,521)
3,142,258 22,510 683,597 415,598
- - 183,033 -
3,142,258 22,510 866,630 415,598
2,773,865$ 43,848$ 702,598$ 395,077$
Special Revenue Funds
Air Quality
Management
Community
Development
Block Grant Library
Maintenance
Districts Special
Revenue
123
CITY OF CAMARILLO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
Revenues:
Taxes
Subventions and grants
Charges for services
Investment earnings
Fines and forfeitures
Contributions and developer fees
Total Revenues
Expenditures:
Current:
Economic development
Cultural arts and library services
Highways and streets
Capital outlay
Debt service:
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as Restated
Fund Balances, End of Year
Special
Revenue Funds
Debt Service
Funds
Total
Governmental
Funds
168,375$ -$ -$ -$ 3,071,214$
- 920 - - 5,295,862
- - - - 251,705
46,574 - 339 9,612 304,618
- - - - 5,780
- - - - 427,738
214,949 920 339 9,612 9,356,917
- - - - 390,682
54 - - 3,045 468,456
- - 20,488 - 5,176,025
- 4,581,341 - - 4,704,806
- - - 295,000 295,000
- - - 198,231 198,231
54 4,581,341 20,488 496,276 11,233,200
214,895 (4,580,421) (20,149) (486,664) (1,876,283)
- 5,081,628 - 476,900 7,266,795
(35,000) - (16,168) - (5,971,173)
(35,000) 5,081,628 (16,168) 476,900 1,295,622
179,895 501,207 (36,317) (9,764) (580,661)
1,491,408 6,529,623 36,317 508,560 17,725,332
- - - - 183,033
1,491,408 6,529,623 36,317 508,560 17,908,365
1,671,303$ 7,030,830$ -$ 498,796$ 17,327,704$
Library Debt
Service
Capital
Improvement
Projects
Community
Facilities
District (CFD)
#1
Cable PEG
Fees
Capital Projects Funds
124
125
126
127
CITY OF CAMARILLO
BUDGETARY COMPARISON SCHEDULE
SB1
YEAR ENDED JUNE 30, 2019
Variance with Final Budget
Budget Amounts Actual PositiveOriginal Final Amounts (Negative)
Budgetary Fund Balance, July 1 147,828$ 147,828$ 147,828$ -$
Resources (Inflows):
Intergovernmental 1,156,163 1,090,027 1,260,586 170,559
Investment earnings 1,000 1,000 14,287 13,287
Amounts Available for Appropriations 1,304,991 1,238,855 1,422,701 183,846
Charges to Appropriation (Outflow):
Transfers out 1,150,000 1,238,855 341,966 896,889
Total Charges to Appropriations 1,150,000 1,238,855 341,966 896,889
Budgetary Fund Balance, June 30 154,991$ -$ 1,080,735$ 1,080,735$
128
129
130
131
132
133
134
135
136
Police Facility Fund
Library Facility Fund
Camarillo Ranch Facility Fund
Chamber of Commerce Facility Fund
Risk Management Fund
Information Services Fund
Vehicles & Equipment Fund
City Hall Facility Fund
Corporation Yard Facility Fund
137
138
139
CITY OF CAMARILLO
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
Operating Revenues:
Charges for services 1,738,063$ 1,752,255$ 840,486$ 1,099,992$ 709,992$
Total Operating Revenues 1,738,063 1,752,255 840,486 1,099,992 709,992
Operating Expenses:
Administration and general 35,015 660,188 5,835 441,221 85,920
Cost of sales and services 2,175,684 1,178,799 468,077 250,619 54,692
Depreciation expense - 47,073 339,412 78,702 67,826
Total Operating Expenses 2,210,699 1,886,060 813,324 770,542 208,438
Operating Income (Loss) (472,636) (133,805) 27,162 329,450 501,554
Nonoperating Revenues (Expenses):
Interest revenue 12,782 75,568 135,448 105,224 49,986
Other 96,649 - - - -
Loss on disposal of capital assets - - (2,018) - -
Total Nonoperating
Revenues (Expenses) 109,431 75,568 133,430 105,224 49,986
Income (Loss) Before Transfers (363,205) (58,237) 160,592 434,674 551,540
Transfers in - - - 35,000 -
Changes in Net Position (363,205) (58,237) 160,592 469,674 551,540
Net Position:
Beginning of Year 1,104,293 674,170 5,438,830 4,648,229 2,296,792
End of Year 741,088$ 615,933$ 5,599,422$ 5,117,903$ 2,848,332$
Corporation
Yard Facility
Risk
Management
Information
Services
Vehicles &
Equipment
City Hall
Facility
140
CITY OF CAMARILLO
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
Operating Revenues:
Charges for services
Total Operating Revenues
Operating Expenses:
Administration and general
Cost of sales and services
Depreciation expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Other
Loss on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in
Changes in Net Position
Net Position:
Beginning of Year
End of Year
Total
-$ 300,000$ -$ -$ 6,440,788$
- 300,000 - - 6,440,788
69,671 590,380 11,682 - 1,899,912
76,141 137,236 36,284 - 4,377,532
120,842 984,801 53,606 14,253 1,706,515
266,654 1,712,417 101,572 14,253 7,983,959
(266,654) (1,412,417) (101,572) (14,253) (1,543,171)
48,862 72,975 23,196 3,553 527,594
- 64,824 - 18,431 179,904
- - - - (2,018)
48,862 137,799 23,196 21,984 705,480
(217,792) (1,274,618) (78,376) 7,731 (837,691)
- - - - 35,000
(217,792) (1,274,618) (78,376) 7,731 (802,691)
4,673,574 20,338,221 1,613,770 450,827 41,238,706
4,455,782$ 19,063,603$ 1,535,394$ 458,558$ 40,436,015$
Police Facility
Library
Facility
Camarillo
Ranch Facility
Chamber of
Commerce
Facility
141
142
143
144
West Camarillo Community Facilities District #1 Agency Fund -
General Agency Fund
Ventura County Regional Defense Partnership for the 21st Century Fund (RDP-21) -
Project HOPE Program Agency Fund
Wastewater Treatment JPA Agency Fund -
145
146
147
148
149
150
STATISTICAL SECTION
City of CamarilloStatistical Section
For the Fiscal Year ended June 30, 2019
Contents Page
Financial Trends 152-161
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 162-167
These schedules contain information to help the reader assess the factors affecting the City's
ability to generate its property and sales taxes.
Debt Capacity 168-174
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 175-177
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 178-182
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.
This part of the City of Camarillo's CAFR presents detailed information as a context for understanding what the
information in the financial statements, note disclosures, and required supplementary information reveals about the
City's overall financial health.
151
Table 1
City of Camarillo
Net Position by Component (1)
Last Ten Fiscal Years(accrual basis of accounting)
2010 2011 2012 2013
Governmental activities
Net investment in capital assets 206,981,470$ 215,969,722$ 272,279,288$ 245,054,906$
Restricted 60,672,438 71,014,712 37,973,060 25,908,200
Unrestricted 54,923,984 35,468,884 65,744,134 66,179,359
Total governmental activities net position 322,577,892$ 322,453,318$ 375,996,482$ 337,142,465$
Business-type activities
Net investment in capital assets 61,792,231$ 63,179,273$ 67,714,839$ 68,943,384$
Restricted 10,039,306 9,654,386 9,718,538 10,479,346
Unrestricted 34,214,512 36,076,154 39,564,125 42,649,696
Total business-type activities net position 106,046,049$ 108,909,813$ 116,997,502$ 122,072,426$
Primary government
Net investment in capital assets 268,773,701$ 279,148,995$ 339,994,127$ 313,998,290$
Restricted 70,711,744 80,669,098 47,691,598 36,387,546
Unrestricted 89,138,496 71,545,038 105,308,259 108,829,055
Total primary government net position 428,623,941$ 431,363,131$ 492,993,984$ 459,214,891$
Note: (1) The City of Camarillo implemented GASB No. 63 beginning fiscal year ended June 30, 2013.
"Net Position" prior to the implementation was reported as "Net Assets".
Source: City of Camarillo financial data
Fiscal Year
152
2014 2015 2016 2017 2018 2019
267,837,593$ 264,612,956$ 260,120,182$ 260,799,336$ 254,859,084$ 265,475,397$
47,068,093 59,298,341 59,805,256 55,260,240 49,904,125 50,227,531
67,936,441 58,333,276 64,437,697 68,154,924 68,801,406 69,425,167
382,842,127$ 382,244,573$ 384,363,135$ 384,214,500$ 373,564,615$ 385,128,095$
69,067,779$ 72,327,793$ 72,884,406$ 75,859,145$ 77,742,690$ 83,485,675$
11,049,993 10,738,528 13,083,412 14,929,506 14,203,390 10,848,811
48,025,609 41,681,707 48,909,290 55,616,396 63,751,168 73,488,065
128,143,381$ 124,748,028$ 134,877,108$ 146,405,047$ 155,697,248$ 167,822,551$
336,905,372$ 336,940,749$ 333,004,588$ 336,658,481$ 332,601,774$ 348,961,072$
58,118,086 70,036,869 72,888,668 70,189,746 64,107,515 61,076,342
115,962,050 100,014,983 113,346,987 123,771,320 132,552,574 142,913,232
510,985,508$ 506,992,601$ 519,240,243$ 530,619,547$ 529,261,863$ 552,950,646$
Fiscal Year
153
Table 2
City of Camarillo
Changes in Net Position (1)
Last Ten Fiscal Years
(accrual basis of accounting)
2010 2011 2012 2013
Expenses
Governmental activities
General government 8,065,279$ 8,086,601$ 6,796,825$ 6,578,775$
Public safety 14,882,270 14,317,124 16,307,898 15,879,390
Highways and streets 1,066,524 13,071,968 873,137 17,018,178
Economic development 5,656,971 4,453,439 3,248,069 648,253
Cultural arts and library services 2,221,017 4,636,718 4,004,723 5,133,315
3,180,385 3,812,508 871,589 257,354
35,072,446 48,378,358 32,102,241 45,515,265
Business-type activities
Water utility 10,544,034 10,743,948 11,779,014 13,390,524
Sanitary district 8,173,995 8,119,781 8,946,284 8,988,900
Solid waste 6,048,900 6,023,183 6,100,797 6,184,139
Transit 1,428,016 1,465,649 1,510,091 1,650,848
26,194,945 26,352,561 28,336,186 30,214,411
61,267,391$ 74,730,919$ 60,438,427$ 75,729,676$
Governmental activities
Charges for services
General government 1,395,043$ 1,183,939$ 1,190,005$ 1,226,218$
Public safety 665,468 627,862 670,579 649,786
Highways and streets 1,625,890 937,036 967,307 5,652,839
Economic development 186,454 73,790 701,929 636,463
Cultural arts and library services - 16,639 77,156 89,374
Operating grants and contributions 2,640,067 3,382,673 2,518,591 2,326,716
Capital grants and contributions 3,711,143 3,176,000 3,473,171 4,798,696
10,224,065 9,397,939 9,598,738 15,380,092
Business-type activities
Charges for services
Water utility 10,060,914 10,983,673 12,820,577 14,355,497
Sanitary district 7,394,867 8,123,337 8,750,762 9,703,978
Solid waste 5,932,441 5,977,531 6,002,286 6,017,861
Transit 105,686 119,970 100,966 132,067
Operating grants and contributions 507,310 536,609 525,696 84,294
Capital grants and contributions 3,358,509 1,426,834 5,821,585 3,144,828
27,359,727 27,167,954 34,021,872 33,438,525
37,583,792$ 36,565,893$ 43,620,610$ 48,818,617$
Fiscal Year
Total governmental activities program revenues
Total business-type activities program revenues
Program revenues
Total primary government program revenues
Total primary government expenses
Total governmental activities expenses
Total business-type activities expenses
Interest on long-term debt
(1 of 4)
154
2014 2015 2016 2017 2018 2019
5,441,510$ 6,327,562$ 5,114,356$ 7,109,659$ 7,702,944$ 7,273,382$
16,692,337 17,029,186 17,108,233 18,231,069 19,190,794 19,407,941
18,465,755 19,425,410 19,836,949 23,192,629 23,805,001 21,407,999
668,766 661,390 777,968 563,673 906,942 1,447,570
5,270,325 5,089,748 5,312,804 5,250,618 3,923,701 3,913,166
227,362 220,969 215,510 209,102 204,320 197,647
46,766,055 48,754,265 48,365,820 54,556,750 55,733,702 53,647,705
13,244,937 12,858,698 12,793,232 13,486,961 15,031,630 14,237,093
10,521,057 10,374,619 10,664,025 10,769,483 11,653,295 11,225,898
6,178,466 6,139,790 6,345,936 6,602,085 6,704,503 7,421,778
1,772,128 1,920,837 2,057,766 2,290,412 2,494,729 2,643,638
31,716,588 31,293,944 31,860,959 33,148,941 35,884,157 35,528,407
78,482,643$ 80,048,209$ 80,226,779$ 87,705,691$ 91,617,859$ 89,176,112$
1,823,785$ 2,177,348$ 2,045,943$ 2,683,108$ 2,521,911$ 979,326$
686,795 700,453 968,231 978,441 1,009,211 2,511,601
2,351,632 3,720,598 4,361,291 4,748,956 4,624,950 4,462,849
882,264 902,059 683,740 1,158,289 608,652 -
95,823 95,969 87,604 81,624 77,407 76,653
2,853,781 3,625,229 2,662,678 4,870,010 5,303,078 5,962,340
7,589,460 4,600,406 3,939,339 780,804 217,681 8,044,164
16,283,540 15,822,062 14,748,826 15,301,232 14,362,890 22,036,933
15,247,231 13,640,075 13,681,246 14,372,963 15,903,517 14,673,770
11,096,593 12,125,996 12,691,523 13,307,078 13,643,880 14,005,034
6,012,992 6,006,181 6,236,906 6,495,545 6,675,146 7,264,338
139,804 230,146 183,159 195,170 203,934 182,350
1,429,785 880,409 1,139,148 2,738,953 1,307,688 1,351,913
1,741,568 2,977,376 4,948,563 - 2,174,438 5,469,803
35,667,973 35,860,183 38,880,545 37,109,709 39,908,603 42,947,208
51,951,513$ 51,682,245$ 53,629,371$ 52,410,941$ 54,271,493$ 64,984,141$
(Continued)
Fiscal Year
(2 of 4)
155
City of Camarillo
Changes in Net Position (1)
(Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
2010 2011 2012 2013
Net (Expense)/Revenue
Governmental activities (24,848,381)$ (38,980,419)$ (22,503,503)$ (30,135,173)$
Business-type activities 1,164,782 815,393 5,685,686 3,224,114
(23,683,599)$ (38,165,026)$ (16,817,817)$ (26,911,059)$
General revenues and other changes in net position
Governmental activities
Taxes
Property taxes 18,936,099$ 19,401,813$ 17,829,713$ 13,200,725$
Sales taxes 11,428,670 12,591,309 13,368,424 13,745,464
Business license taxes 1,225,899 1,320,115 1,274,862 1,309,336
Transient occupancy taxes 1,432,231 1,581,673 1,702,362 1,849,831
Motor vehicle in lieu (2)
200,346 303,904 - -
Franchise taxes (2)
2,292,835 2,593,268 2,647,767 2,674,374
Unrestricted grants and contributions 437,318 47,441 75,433 67,808
Investment earnings 1,104,768 1,037,042 544,265 186,361
Gain (Loss) on sale of assets - 70,173 24,776 -
Miscellaneous 1,851,139 550,175 1,279,677 579,524
Transfers (483,150) (641,068) (786,789) (605,416)
- - 38,086,177 (43,414,063)
Total governmental activities 38,426,155 38,855,845 76,046,667 (10,406,056)
Business-type activities
Property taxes 980,401 949,693 979,529 996,297
Investment earnings 538,124 357,168 286,318 105,832
17,217 - - -
Miscellaneous 180,018 100,442 349,367 514,946
Transfers 483,150 641,068 786,789 605,416
Total business-type activities 2,198,910 2,048,371 2,402,003 2,222,491
Total primary government 40,625,065$ 40,904,216$ 78,448,670$ (8,183,565)$
Change in net position
Governmental activities 13,577,774$ (124,574)$ 53,543,164$ (40,541,229)$
Business-type activities 3,363,692 2,863,764 8,087,689 5,446,605
Total primary government 16,941,466$ 2,739,190$ 61,630,853$ (35,094,624)$
Notes: (1) The City of Camarillo implemented GASB No. 63 beginning fiscal year ended June 30, 2013. "Net Position" prior to the
implementation was reported as "Net Assets".
(2) Starting FY 2011/12, the City no longer received Motor Vehicle In-Lieu Tax, but continued to receive vehicle license
fees, which were included in Property Tax.
Source: City of Camarillo financial data
(3) Camarillo Community Development Commission was dissolved as of February 1, 2012, through the Supreme Court
decision. The City elected to serve as the Successor Agency. During FYs 2011/12 through 2014/15, dissolution related
asset transfer transactions were recorded as Special Items. During FY 2015/16, adjustment to the lower of cost or
market value on the Cedar Oaks property in the Low-Mod Income Housing Asset Fund was recorded as a Special Item.
Fiscal Year
Gain (Loss) on sale of assets/extraordinary loss
Special item (3)
Total primary government net expense
(3 of 4)
156
2014 2015 2016 2017 2018 2019
(30,482,515)$ (32,830,728)$ (33,616,994)$ (39,255,518)$ (41,370,812)$ (31,610,772)$
3,951,385 4,566,239 7,019,586 3,960,768 4,024,446 7,418,801
(26,531,130)$ (28,264,489)$ (26,597,408)$ (35,294,750)$ (37,346,366)$ (24,191,971)$
13,608,326$ 14,491,806$ 15,344,600$ 16,165,826$ 16,509,090$ 17,159,172$
14,078,170 14,296,711 13,886,357 14,147,855 13,980,438 15,283,516
1,336,944 1,290,792 1,332,550 1,378,823 1,387,616 1,409,557
2,034,121 2,266,171 2,542,335 2,418,114 2,510,027 2,655,564
- - - - - -
2,587,347 2,763,700 2,770,967 2,773,583 2,778,808 2,888,269
65,740 312,567 72,856 2,034,212 - -
530,436 496,756 946,526 488,052 1,176,701 4,178,236
64,367 - - - - -
432,719 198,354 150,686 124,136 136,807 337,988
(605,493) (984,746) (749,364) (595,524) (1,160,000) (596,050)
42,049,500 12,141,648 (561,957) - - -
76,182,177 47,273,759 35,735,556 38,935,077 37,319,487 43,316,252
980,657 1,053,636 1,081,995 1,129,366 1,191,206 1,254,508
285,967 274,488 503,891 292,679 756,218 2,730,408
1,290 - - 18,301 (11,763) -
246,163 277,260 774,244 5,571,301 1,988,256 125,536
605,493 984,746 749,364 595,524 1,160,000 596,050
2,119,570 2,590,130 3,109,494 7,607,171 5,083,917 4,706,502
78,301,747$ 49,863,889$ 38,845,050$ 46,542,248$ 42,403,404$ 48,022,754$
45,699,662$ 14,341,556$ 2,118,562$ (320,441)$ (9,349,549)$ 11,705,480$
6,070,955 7,156,369 10,129,080 11,567,939 9,108,363 12,125,303
51,770,617$ 21,497,925$ 12,247,642$ 11,247,498$ (241,186)$ 23,830,783$
(Concluded)
Fiscal Year
(4 of 4)
157
Table 3
City of CamarilloFund Balances, Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting)
2010 2011 2012 2013 2014
General FundReserved 11,751,540$ -$ -$ -$ -$ Unreserved 31,191,579 - - - - Nonspendable - 12,837 132,978 12,085,695 158,874 Restricted - - - - - Committed - 11,508,000 11,508,000 - 41,500,000 Assigned - 1,048,689 966,195 91,389 1,724,288 Unassigned - 33,148,450 34,833,689 38,141,636 7,512,481
Total General Fund 42,943,119$ -$ -$ 50,318,720$ 50,895,643$
All other governmental fundsReserved 52,355,445$ -$ -$ -$ -$ Unreserved, reported in:
Special revenue funds 25,353,109 - - - - Capital projects funds 28,428,001 - - - - Debt service funds (11,508,000) - - - -
Nonspendable - 16,194,057 16,194,057 950 - Restricted - 39,896,176 13,223,193 11,369,121 30,360,036 Assigned - 18,561,847 12,275,672 13,206,526 14,365,847
Total all other governmental funds 94,628,555$ 74,652,080$ 41,692,922$ 24,576,597$ 44,725,883$
Note: The City implemented GASB Statement No. 54 in FY 2010/11 and reserved and unreserved fund classifications were changed to nonspendable, restricted, committed, assigned, and unassigned.
Source: City of Camarillo financial data
Fiscal Year
158
2015 2016 2017 2018 2019
-$ -$ -$ -$ -$ - - - - -
206,808 232,956 222,608 217,238 240,531 - - - - 5,455,177
48,100,000 49,700,000 46,850,000 47,484,000 51,178,734 116,075 297,372 203,763 92,592 143,016
7,855,867 9,061,427 11,052,990 14,535,452 10,921,126 56,278,750$ 59,291,755$ 58,329,361$ 62,329,282$ 67,938,584$
-$ -$ -$ -$ -$
- - - - - - - - - - - - - - - - - - - 42,500
41,642,200 42,146,370 53,508,777 49,878,594 44,772,354 15,246,749 16,027,942 6,518,057 6,529,623 6,988,330 56,888,949$ 58,174,312$ 60,026,834$ 56,408,217$ 51,803,184$
Fiscal Year
159
Table 4
City of CamarilloChanges in Fund Balances, Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting)
2010 2011 2012 2013
RevenuesTaxes 32,721,142$ 34,894,910$ 34,175,361$ 30,314,982$ Subventions and grants 6,241,689 5,728,069 5,845,020 6,665,214 Licenses and permits 471,869 488,667 632,344 541,310
2,436,789 2,593,268 2,647,767 2,674,372 Contributions and developer fees 3,473,524 1,335,676 436,531 1,306,307 Fines and forfeitures 514,081 441,806 454,877 431,613 Charges for services 1,374,664 1,634,987 1,668,823 5,668,801 Investment earnings 937,623 1,477,647 461,949 156,071 Miscellaneous 166,285 202,090 171,214 167,793 Total revenues 48,337,666 48,797,120 46,493,886 47,926,463
ExpendituresGeneral government 5,129,145 5,355,586 5,968,315 7,164,851 Public safety 14,751,720 15,261,371 16,253,332 15,878,506 Highways and streets 9,631,791 9,751,958 9,636,890 9,701,745 Economic development 2,427,657 2,040,630 1,207,905 647,439 Cultural arts and library services 2,223,839 4,100,718 4,544,803 4,384,149 Pass through payments to other agencies 1,705,206 1,924,713 1,041,259 * - AB1484 true up payment - - 932,115 - Supplemental Education Revenue Augmentation Fund 1,746,229 359,518 - * - Capital outlay 12,754,040 21,209,677 12,773,340 5,976,763 Debt service
Principal 3,294,176 1,630,000 1,375,000 570,000 Interest 1,040,000 3,808,956 1,757,233 241,274 Cost of issuance 546,031 - 273,831 -
Total expenditures 55,249,834 65,443,127 55,764,023 44,564,727
Excess (deficiency) of revenues over (under) expenditures (6,912,168) (16,646,007) (9,270,137) 3,361,736
Other Financing Sources (Uses)Debt proceeds 17,490,000 - - -
(258,521) - - - Transfers in 14,664,822 55,319,155 6,733,985 7,985,504 Transfers out (15,285,590) (55,874,766) (7,597,874) (8,684,636) Issuance of refunding bonds - - 7,630,000 - Premium on refunding bonds - - 262,360 - Payment to refunding bonds escrow agent - - (7,620,591) - Total other financing sources (uses) 16,610,711 (555,611) (592,120) (699,132)
- - (21,374,015) (16,901,071)
Net change in fund balances 9,698,543$ (17,201,618)$ (31,236,272)$ (14,238,467)$
16.4% * 14.4% * 17.1% * 13.0%
* Revised data** Previously reported as a reduction in property tax revenueNote: (1) Effective FY 2016/17, revenues from Franchises are reported as Taxes. (2) Camarillo Community Development Commission was dissolved as of February 1, 2012, through the Supreme Court decision. The City elected to serve as the Successor Agency. During FYs 2011/12 through 2014/15, dissolution related asset transfer transactions were recorded as Special Items. During FY 2015/16, adjustment to the lower of cost or market value on the Cedar Oaks property in the Low-Mod Income Housing Asset Fund was recorded as Special Item.
Source: City of Camarillo financial data
Debt service as a percentage of noncapital expenditures
Premium/(discount) on debt issuance
Special item (2)
Fiscal Year
Franchises (1)
160
2014 2015 2016 2017 2018 2019
31,057,561$ 31,057,561$ 33,105,842$ 36,884,201$ 37,165,979$ 39,547,817$ 7,091,788 7,091,788 5,828,315 6,426,076 5,160,734 5,502,690 1,165,401 1,165,401 1,256,693 1,847,213 2,110,041 1,459,176 2,736,842 2,736,842 2,930,156 - - - 1,571,018 1,571,018 1,892,855 3,373,182 3,204,853 3,681,467
344,387 344,387 436,301 350,882 366,304 382,099 3,042,455 3,042,455 5,018,324 3,723,151 3,623,048 2,953,758
449,022 449,022 810,179 410,039 1,008,223 3,650,642 413,228 413,228 334,841 786,984 16,219 20,844
47,871,702 47,871,702 51,613,506 53,801,728 52,655,401 57,198,493
5,443,646 5,443,646 6,163,201 6,135,609 6,154,177 7,196,639 16,671,242 16,671,242 16,962,009 18,150,594 18,863,717 19,086,438
9,991,015 9,991,015 12,327,888 14,689,649 909,559 11,558,060 737,928 737,928 786,214 564,644 3,994,886 1,445,593
4,693,922 4,693,922 5,017,579 5,136,791 11,808,473 3,894,009 - - - - - - - - - - - - - - - - - -
4,493,642 4,493,642 4,197,047 8,020,164 4,407,831 12,707,853
265,000 265,000 275,000 280,000 285,000 295,000 226,769 226,769 215,969 210,419 204,769 198,231
- - - - 42,523,164 42,523,164 45,944,907 53,187,870 46,628,412 56,381,823
5,348,538 5,348,538 5,668,599 613,858 6,026,989 816,670
- - - - - - - - - - - -
7,881,170 7,881,170 5,654,446 30,644,981 5,380,673 10,229,418 (8,545,195) (8,545,195) (6,462,720) (31,209,563) (6,518,356) (10,860,468)
- - - - - - - - - - - - - - - - - -
(664,025) (664,025) (808,274) (564,582) (1,137,683) (631,050)
16,041,696 16,041,696 (561,957) - (5,298,224) -
20,726,209$ 20,726,209$ 4,298,368$ 49,276$ (408,918)$ 185,620$
1.3% 1.3% 1.2% 1.1% 1.1% 1.1%
Fiscal Year
161
Table 5
City of CamarilloTax Revenues by Source, Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting)
Business Transient MotorFiscal Property Sales License Occupancy Franchise Vehicle
Year Tax(1)Tax Tax Tax Tax in-Lieu(1)
Total
2010 18,936,099$ 11,428,670$ 1,225,899$ 1,432,231$ 2,292,835$ 200,346$ 35,516,080$
2011 19,401,813 12,591,309 1,320,115 1,581,673 2,289,364 303,904 37,488,178
2012 17,829,713 13,368,424 1,274,862 1,702,362 2,647,767 - 36,823,128
2013 13,200,725 13,745,464 1,309,336 1,849,831 2,674,374 - 32,779,730
2014 13,608,326 14,078,170 1,336,944 2,034,121 2,587,347 - 33,644,908
2015 14,491,806 14,296,711 1,290,792 2,266,171 2,763,700 - 35,109,180
2016 15,344,600 13,886,357 1,332,550 2,542,335 2,770,967 - 35,876,809
2017 16,165,826 14,147,855 1,378,823 2,418,114 2,773,583 - 36,884,201
2018 16,509,090 13,980,438 1,387,616 2,510,027 2,778,808 - 37,165,979
2019 17,159,172 15,283,516 1,409,557 2,655,564 2,888,269 - 39,396,078
Change2010-2019 -9.38% 33.73% 14.98% 85.41% 25.97% 0.00% 10.92%
of AB 1484 and the dissolution of Redevelopment. See note 17.
See note 17.
(1) Starting FY 2011/12, the City no longer received Motor Vehicle In-Lieu Tax, but continued to receive vehicle license fees, which were included in Property Tax.
Source: City of Camarillo financial data
Notes: Includes all governmental fund types (General, Special Revenues, Capital Projects, and Debt Service Funds).
Property Tax
Sales Tax
Business License Tax
Transient Occupancy Tax
Franchise Tax
Motor Vehicle in Lieu
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Fiscal Year
162
Table 6
City of CamarilloAssessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years(in thousands of dollars)
Taxable AssessedTotal Estimated Value as a
Less: Taxable Total Actual Percentage of Fiscal Personal Tax-Exempt Assessed Direct Tax Taxable Estimated ActualYear Land Improvements Property Property Value Rate (1) Value Taxable Value
2010 4,399,982 5,435,046 42,836 316,771 9,561,093 - 10,070,297 94.94%
2011 4,341,587 5,432,697 32,038 318,298 9,488,024 - 9,877,865 96.05%
2012 4,335,697 5,479,807 28,744 317,138 9,527,110 - 9,806,322 97.15%
2013 4,237,059 5,464,105 34,005 259,573 9,475,596 - 9,844,247 96.26%
2014 4,383,279 5,603,987 27,350 319,242 9,695,374 - 9,735,170 99.59%
2015 4,668,986 5,894,031 25,119 330,169 10,257,967 - 10,014,616 102.43%
2016 5,006,154 6,140,082 31,856 348,574 10,829,518 - 10,608,137 102.09%
2017 5,327,073 6,321,871 31,508 345,874 11,334,578 - 11,178,092 101.40%
2018 5,725,452 6,541,729 34,696 391,350 11,910,526 - 11,680,451 101.97%
2019 6,428,158 7,125,253 42,905 482,977 13,113,339 - 13,596,316 96.45%
Note:
Source: County of Ventura, Auditor - Controller
In 1978, the voters of the State of California passed Proposition 13, which limited property taxes to a total maximum rate of1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased byan "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at a time that itis sold to a new owner. At that point, the assessed value is reassessed at the purchase price of the property sold. The assessedvaluation data shown above represents the only data currently available with respect to the actual market value of taxableproperty and is subject to the limitations described above. The County does not provide breakout of residential, commercialand industrial assessed values to the cities.
(1) The City of Camarillo has not had a Direct Property Tax Rate since 1997.
163
Table 7
City of CamarilloDirect and Overlapping Property Tax RatesLast Ten Fiscal Years
Direct RatesCamarillo Total
Fiscal Sanitary Basic School Water Direct & OverlappingYear District (1) County (2) Districts Districts Tax Rates
2010 - 1.0000 0.1260 0.0208 1.1468
2011 - 1.0000 0.1509 0.0530 1.2039
2012 - 1.0000 0.1413 0.0414 1.1827
2013 - 1.0000 0.1456 0.0363 1.1819
2014 - 1.0000 0.1542 0.0425 1.1967
2015 - 1.0000 0.1308 0.0217 1.1525
2016 - 1.0000 0.1704 0.0040 1.1744
2017 - 1.0000 0.1578 0.0306 1.1884
2018 - 1.0000 0.1631 0.0299 1.1930
2019 - 1.0000 0.2051 0.0284 1.2335
Note: (1)(2)
Source: County of Ventura, Auditor - Controller
Overlapping Rates
The City of Camarillo has not had a Direct Property Tax Rate since 1997.In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. This1% is shared by all taxing agencies for which the subject property resides within. In addition to the 1% fixedamount, property owners are charged taxes as a percentage of assessed property values for the payment ofschool and water district bonds.
164
Table 8
City of CamarilloPrincipal Property Tax Payers
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Taxable City Taxable Taxable City Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value (1) Value Rank Value (2)
Chelsea GCA Realty Partners 202,324,079$ 1 1.54% 178,243,001$ 1 1.80%
CPG Partners LP 89,761,244 2 0.68% 77,157,831 3 0.78%
Edward Chamberlain Trust Et Al 79,924,950 3 0.61%
Trea Allure Camarillo LLC 59,500,000 4 0.45%
Stag Camarillo LP 57,566,498 5 0.44%
BOP Camarillo LLC 53,578,999 6 0.41%
Avalon Mission Oaks LP 50,802,083 7 0.39%
PEGH Investments LLC 42,567,442 8 0.32% 41,045,459 5 0.42%
Sphear Investments LLC 41,879,169 9 0.32%
Essex Camarillo 40,128,084 10 0.31%
450 N Baldwin Park Bl Assoc. 98,603,747 2 1.00%
Donahue Schriber Rlty Group 45,656,039 4 0.46%
ESJ Centers LLC 38,366,494 6 0.39%
Alara Camarillo Corp 30,978,200 7 0.31%
Corte Madera Apartments 30,000,668 8 0.30%
Avalonbay Communities Inc. 28,712,351 9 0.29%
International Pager Co. 26,848,400 10 0.27%
Total 718,032,548$ 5.47% 595,612,190$ 6.02%
Notes: The amounts shown above include assessed value data for both the City and the Successor Agency.
(1) 2018/19 Local Secured Assessed Valuation:
(2) 2009/10 Local Secured Assessed Valuation:
Source: County of Ventura, Auditor - Controller
2019 2010
13,113,338,906$
9,877,864,497$
165
166
Table 9
City of CamarilloProperty Tax Levies and CollectionsLast Ten Fiscal Years
Taxes Levied CollectionsFiscal for the Percentage in Subsequent PercentageYear Fiscal Year Amount of Levy Years Amount of Levy
2010 9,644,350 7,784,705 80.72% 116,064 7,900,769 81.92%
2011 9,965,238 8,642,668 86.73% 69,464 8,712,132 87.43%
2012 10,241,129 7,567,126 73.89% 61,062 7,628,188 74.49%
2013 (1) 3,058,569 2,974,266 97.24% 54,791 3,029,057 99.04%
2014 (2) 3,098,007 3,007,489 97.08% 39,923 3,047,411 98.37%
2015 (2) 3,262,046 3,216,197 98.59% 33,087 3,249,285 99.61%
2016 (2) 3,391,018 3,285,138 96.88% 28,806 3,313,944 97.73%
2017 (2) 3,541,040 3,453,447 97.53% 41,971 3,495,419 98.71%
2018 3,699,276 3,599,478 97.30% 28,234 3,627,712 98.07%
2019 3,856,656 3,771,906 97.80% 28,548 3,800,454 98.54%
Notes:
(1)
(2)
Sources: City of Camarillo financial dataCounty of Ventura, Auditor - Controller
Taxes collected have been restated to reflect available data from County of Ventura Auditor-Controller.
Collected within theFiscal Year of the Levy Total Collections to Date
Data on property tax levies and collections is only for the following agencies:Camarillo Sanitary District, Camarillo Lighting and Landscape Maintenance District, Camarillo MaintenanceDistrict 1-A and Camarillo Comm. Dev. Commission (Redevelopment) (FYs 2004-2012). The City of Camarillois a 'no/low property tax' city and receives a majority of its property tax through AB8 funding and T.E.A.funding.
For FY 2012/13 the reduction in taxes levied and collected was due to implementation of AB1484 and thedissolution of Redevelopment.
167
Table 10
City of CamarilloRatios of Outstanding Debt by TypeLast Ten Fiscal Years(dollars in thousands, except per capita)
1999 2003 2012 2006 2006 2009Revenue 2004 Lease Lease CDC CDC CDC
Fiscal Refunding Redevelopment Revenue Revenue Parity Housing Parity Capital Year Bonds (1) Bonds (2) (10) Bonds (3) Bonds (4) Bonds (5) (10) Bonds (6) (10) Bonds (7) (10) Leases
2010 610 20,500 7,885 - 16,265 10,405 17,490 448
2011 415 20,091 7,685 - 16,073 10,225 16,714 327
2012 215 - - 7,630 - - - 200
2013 - - - 7,275 - - - 68
2014 - - - 7,010 - - - -
2015 - - - 6,740 - - - -
2016 - - - 6,465 - - - -
2017 - - - 6,185 - - - -
2018 - - - 5,900 - - - -
2019 - - - 5,605 - - - -
Notes: (a) See Table 15 for personal income and population data.(1)
(2) Series 2004 CDC Tax Allocation Refunding bonds were issued in September to refund the 1999 CDC Tax Allocation Bonds.(3)(4) 2012 Lease Revenue Bonds issued in April to defease the 2003 bonds. See (3) above.(5)
the Camarillo Corridor Projects Area.(6) Series 2006A tax-exempt CDC Housing Set-Aside Tax Allocation Bonds in the amount of $5,110,000 and Series 2006A-T CDC Housing
Set-Aside Bonds in the amount of $5,715,000 were issued in November to finance certain low and moderate income housing programs.(7) Series 2009 CDC Tax Allocation Parity Bonds in the amount of $17,490,000 were issued in December to finance certain redevelopment
projects within the Camarillo Corridor Projects Area.(8) 2005 Wastewater Revenue Refunding Bonds were issued to finance certain improvements in the Sanitary District Fund.(9) 2015 Wastewater Revenue Refunding Bonds proceeds were issued in November to defease the 2005 bonds.
(10)
Sources: State of California, Department of FinanceUCSB Economic Forecast ProjectCity of Camarillo financial data
Due to Assembly Bill X1 26, effective 2012, Redevelopment Bonds are held by successor agency and no longer a City obligation. See Successor Agency Note in the Basic Financial Statements.
Series 2006 CDC Tax Allocation Parity Bonds were issued in November to finance certain redevelopment projects within
Governmental Activities
2003 Lease Revenue Bonds defeased in May with the issuance of the 2012 Lease Revenue Bonds. See (8) below.
1999 Refunding Bonds were issued for the defeasance of three COP bonds issues, with 1 of the 3 COPs being defeased "in substance" by theissuance of the 2005 Wastewater Bonds. See (8) below.
168
Sanitary District2005 2015
Wastewater WastewaterRevenue Revenue Total Percentage
Refunding Refunding Capital Primary of Personal PerBonds (8) Bonds (9) Leases Government Income (a) Capita (a)
21,377 - 43 95,023 3.59% 1,425
20,915 - 31 92,476 3.73% 1,405
20,433 - 19 28,497 1.17% 429
19,931 - 6 27,280 1.05% 411
19,409 - - 26,149 1.03% 396
18,867 - - 25,607 0.98% 381
- 19,261 - 24,726 0.87% 368
- 18,601 - 24,786 0.85% 356
- 17,927 - 23,827 0.73% 344
- 17,227 - 22,832 0.71% 327
Business-type Activities
169
Table 11
City of CamarilloRatio of Net General Bonded Debt OutstandingLast Ten Fiscal Years(dollars in thousands, except per capita)
Percentage ofEstimated
Less: Amounts Actual TaxableFiscal Redevelopment Available in Debt Value of PerYear Bonds (3) Service Fund Net Property (1) Capita (2)
2010 64,660 2,639 62,021 0.63% 968.56
2011 63,425 2,624 60,801 0.62% 969.11
2012 - - - 0.00% -
2013 - - - 0.00% -
2014 - - - 0.00% -
2015 - - - 0.00% -
2016 - - - 0.00% -
2017 - - - 0.00% -
2018 - - - 0.00% -
2019 - - - 0.00% -
Notes:
See Table 6 for property value data.See Table 15 for population data.Due to Assembly Bill X1 26, effective FY 2011/12, Redevelopment Bonds are held by successor agency and no longer a City obligation. See Successor Agency Note in the Basic Financial Statements.
Source:
170
Table 12
City of CamarilloDirect and Overlapping Governmental Activities DebtAs of June 30, 2019
2018/19 Assessed Valuation: $13,313,546,183Total Debt City's Share of6/30/2019 % Applicable (1) Debt 6/30/2019
OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District 48,050,000$ 0.446 % 214,303$ Ventura County Community College District 275,097,579 9.872 27,157,633 Oxnard Union High School District 275,357,016 30.538 84,088,526 Mesa Union School District 10,480,000 37.222 3,900,866 Pleasant Valley School District 65,950,000 82.410 54,349,395 Rio School District 70,900,000 0.757 536,713 Somis School District 3,625,000 7.308 264,915 West Camarillo Community Facilities District No. 1 5,457,300 100.000 5,457,300
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 175,969,651$
DIRECT AND OVERLAPPING GENERAL FUND DEBT: Ventura County General Fund Obligations 324,780,000 9.868 % 32,049,290$ Ventura County Superintendent of Schools Certificates of Participation 9,220,000 9.868 909,830 Oxnard Union High School District Certificates of Participation 15,023,022 30.538 4,587,730 Rio School District Certificates of Participation 5,000,000 0.757 37,850 Pleasant Valley Recreation and Park District Certificates of Participation 12,600,000 89.880 11,324,880 City of Camarillo Lease Revenue Bonds 5,605,000 100.000 5,605,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 54,514,580$
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 52,450,000 100.000 % 52,450,000
TOTAL DIRECT DEBT 5,605,000$
TOTAL OVERLAPPING DEBT 277,329,231$
COMBINED TOTAL DEBT 282,934,231$ (2)
obligations.
Ratios to 2018/19 Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.32%
Total Direct Debt ($5,605,000) 0.04% Combined Total Debt 2.13%
Ratios to Redevelopment Successor Agency Incremental Valuation ($930,231,000): Total Overlapping Tax Increment Debt 5.64%
Notes (1) The percentage of overlapping applicable to the City is estimated using taxable assessed property value.
that is within the boundaries of the City divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value
171
Table 13
City of CamarilloLegal Debt Margin InformationLast Ten Fiscal Years(dollars in thousands)
2019 2018 2017 2016
Debt limit 2,039,447$ 1,845,281$ 1,752,068$ 1,676,714$ - - - -
Legal debt margin 2,039,447$ 1,845,281$ 1,752,068$ 1,676,714$
0.00% 0.00% 0.00% 0.00%
Legal Debt Margin Calculation for Fiscal Year 2019Assessed valuations:
Net assessed value 13,113,339$ Add back: exempt real property 482,977
Gross assessed value 13,596,316$
Debt limitation - 15% of total assessed value 2,039,447$ Less debt applicable to limitation -
Legal debt margin 2,039,447$
Notes: Under state finance law, the City's outstanding general obligation debt should not exceed 15 percent of total assessedproperty value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside forrepaying general obligation bonds.
Sources: County of Ventura, Auditor - Controller City of Camarillo financial data
Total net debt applicable to the limit as a percentage of debt limit
Total net debt applicable to limit
Fiscal Year
172
2015 2014 2013 2012 2011 2010
1,588,220$ 1,502,192$ 1,460,276$ 1,476,637$ 1,470,948$ 1,481,680$ - - - - - -
1,588,220$ 1,502,192$ 1,460,276$ 1,476,637$ 1,470,948$ 1,481,680$
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Fiscal Year
173
Table 14
City of CamarilloPledged-Revenue Coverage - Sanitary District FundLast Ten Fiscal Years
Less: NetFiscal Gross Gross AvailableYear Revenues Expenses (1) Revenue Principal Interest Total Coverage (2)
2010 8,708,343 6,104,766 2,603,577 445,000 994,054 1,439,054 1.81
2011 9,325,120 5,963,938 3,361,182 460,000 976,254 1,436,254 2.34
2012 10,516,683 6,827,265 3,689,418 480,000 957,854 1,437,854 2.57
2013 11,883,286 6,874,724 5,008,562 500,000 938,654 1,438,654 3.48
2014 12,420,334 7,467,159 4,953,175 520,000 918,654 1,438,654 3.44
2015 13,526,951 7,110,397 6,416,554 540,000 897,854 1,437,854 4.46
2016 14,477,426 7,192,817 7,284,609 560,000 876,254 1,436,254 5.07
2017 17,723,211 7,620,983 10,102,228 605,000 703,994 1,308,994 7.72
2018 15,269,575 8,423,413 6,846,162 620,000 685,844 1,305,844 5.24
2019 16,724,589 7,958,414 8,766,175 645,000 661,044 1,306,044 6.71
Notes: (1) Operating expenses exclude depreciation and interest, per bond official statement.(2) Debt service coverage of 1.25 is required per bond convenants.
Source: City of Camarillo financial data
Debt Service Requirements
174
Table 15
City of CamarilloDemographic and Economic StatisticsLast Ten Calendar Years
Personal Per Capita CityCalendar Income Personal School Unemployment
Year Population (in thousands) Income Enrollment Rate
2010 66,690 2,646,326 39,681 10,019 7.6%
2011 65,830 2,477,973 37,642 10,002 7.3%
2012 66,407 2,439,394 36,734 10,244 6.6%
2013 66,428 2,613,278 39,340 10,106 5.6%
2014 66,752 2,572,222 38,534 11,269 4.4%
2015 67,154 2,586,638 38,518 11,720 4.4%
2016 69,924 2,963,379 42,380 12,209 4.6%
2017 69,623 2,933,008 42,127 12,187 3.7%
2018 68,741 3,271,440 47,591 11,977 3.5%
2019 69,880 3,231,171 46,625 11,667 3.3%
Sources: State of California, Department of FinanceUCSB Economic Forecast ProjectState of California, Employment Development Department, Labor Market Information DivisionLocal elementary, junior and senior high schools
175
Table 16
City of CamarilloFull-time Equivalent City Government Employees by Function/ProgramLast Ten Fiscal Years
2010 2011 2012 2013Function/ProgramGeneral government
Administrative 40 41 44 40Finance 9 9 9 8Planning 10 10 11 7Other 3 3 3 4
Public safetyPolice services 1 1 1 0Code enforcement 5 5 5 5
Highways & streetsMaintenance 27 27 27 26Engineering 9 7 8 6
Redevelopment (1) 5 5 0 0Stormwater 3 4 3 3Solid waste 1 1 1 1Transit 1 1 1 1Water 16 16 14 14Reclaimed water 0 0 0 0Wastewater 19 19 20 18Total full-time equivalent employees 149 149 147 133
Police 76 76 71 75Library 0 24 25 26Building & safety 6 6 5 4Total contracted service employees 82 106 101 105
Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). equivalent employment is calculated by dividing total labor hours by 2,080.
(1) Redevelopment Agency was dissolved as of February 1, 2012, through the Supreme Court decision per Assembly Bill X1 26. See Successor Agency Note for more information on the dissolution.
Sources: City of Camarillo financial informationLSSI (Library Systems & Services)Ventura County Sheriff DepartmentCharles Abbott & Associates
Fiscal Year
Contracted Services Employees
176
2014 2015 2016 2017 2018 2019
40 40 39 39 39 428 8 8 8 8 8
10 10 10 9 9 84 4 4 4 4 6
0 0 0 0 0 05 5 5 4 4 4
26 26 27 28 28 287 7 5 5 5 60 0 0 0 0 03 3 3 3 3 21 1 1 1 1 11 1 1 2 2 2
14 14 14 14 14 131 1 1 1 1 1
19 19 18 18 18 18139 139 136 136 136 139
75 65 65 65 65 6526 26 28 27 25 244 10 8 7 9 10
105 101 101 99 99 99
Fiscal Year
Contracted Services Employees
177
Table 17
City of CamarilloOperating Indicators by Function/ProgramLast Ten Fiscal Years
2010 2011 2012 2013
General government
Building permits issued 750$ 750$ 744$ 735$
Building permit valuation (in thousands) 17,840 19,727 20,042 15,971
Building inspections 3,427 2,909 2,757 2,953
Police
Physical arrests 2,780 2,571 2,188 1,876
Parking violations 2,613 2,231 2,728 1,078
Traffic violations 4,183 3,669 5,502 5,600
Police personnel (sworn) 76 76 71 75
Patrol units 44 40 39 39
Refuse collection
137 133 130 134
149 156 155 143
Other public works
Annual street overlay
Asphalt laid (in tons) 25,382 24,705 24,642 22,092
Slurry seal (in tons) - 3,202 - 2,488
Striping (in linear feet) 4,995 7,410 7,411 5,729
Water
New connections 170 15 6 7
8,909 7,735 7,902 8,616
Peak daily production (thousands of gallons) 29,000 15,447 12,187 13,837
13,375 13,375 13,375 13,375
Wastewater
3,800 3,800 3,800 3,700
7,250 7,250 7,250 7,250
Transit
Total fixed route revenue miles 35,321 32,525 33,625 29,643
15,307 14,874 14,316 13,030
*In FY 2016/17 Asphalt overlay and striping were done on all arterial streets leading to a significant increase in both.
Source: City of Camarillo
Fiscal Year
Passengers (fixed route)
Average daily sewage treatment (thousands of gallons)
Refuse collected (tons per day)
Average daily consumption (thousands of gallons)
Maximum daily capacity of plant (thousands of gallons)
Function/Program
Recyclables collected (tons per day)
Storage capacity (thousands of gallons)
178
2014 2015 2016 2017 2018 2019
729$ 653$ 707$ 752$ 769$ 737$
63,913 87,535 53,490 81,390 129,018 77,217
4,632 7,728 4,911 5,497 8,205 8,383
1,993 2,022 2,227 2,348 2,966 3,088
639 771 1,533 1,679 1,497 2,056
4,525 4,683 5,160 4,666 5,889 5,626
75 75 75 75 77 77
39 45 45 45 47 47
137 134 141 149 175 211
148 145 148 141 123 109
- 17,166 25,737 37,707 * 1,274 9,882
- - - 9,192 3,860 7,474
- 30,807 43,563 475,022 * 52,244 248,049
9 130 86 135 187 188
8,819 7,224 6,629 6,397 7,004 6,275
12,282 11,785 11,338 10,443 10,457 11,157
13,375 13,375 13,375 13,375 13,375 13,375
3,700 3,500 3,455 3,449 3,426 3,500
7,250 7,250 7,250 7,250 7,250 7,250
33,653 54,578 75,826 82,749 75,120 74,800
13,793 63,633 84,876 82,501 77,752 77,029
Fiscal Year
179
Table 18
City of CamarilloCapital Asset Statistics by Function/ProgramLast Ten Fiscal Years
2010 2011 2012 2013
PoliceStations 1 1 1 1
Other public worksMiles of streets 192 192 196 201Number of streets 697 703 717 721Traffic signals 54 54 56 56
WaterWater mains (miles) 181 182 182 185Fire hydrants 1,580 1,595 1,597 1,601Reservoirs 6 6 6 6Wells 4 4 4 4
WastewaterTreatment plants 1 1 1 1Number of service connections 14,047 14,125 14,116 14,141Sanitary sewers (miles) 144 152 156 157Storm sewers (miles)(36" or greater) 32 32 32 33Storm drains (miles) 65 66 72 72
TransitBuses 6 8 8 10Mini vans - - - -
Source: City of Camarillo
Function/Program
Fiscal Year
180
2014 2015 2016 2017 2018 2019
1 1 1 1 1 1
201 201 201 201 201 201721 721 725 726 725 732
55 55 56 57 57 57
185 187 187 191 195 1951,621 1,621 1,624 1,643 1,703 1,703
6 6 6 6 6 64 4 4 4 4 4
1 1 1 1 1 114,137 14,207 14,331 14,451 14,564 14,737
158 158 158 158 152 15834 34 34 33 34 3574 75 75 75 75 76
12 13 10 9 11 11- - 5.00 7 8 8
Fiscal Year
181
Table 19
City of CamarilloPrincipal Employers
Current Year and Nine Years Ago
Percentage of Percentage of
Total City Total City
Employees Employment (1)
Employees Employment (2)
Company or Organization
Pleasant Valley School District 775 2.41% 549 1.58%
St. John's Pleasant Valley Hospital 615 1.91% 523 1.50%
Hi-Temp Insulation 472 1.47% 498 1.43%
Alert Communications 262 0.00% - 0.00%
Meissner Filtration Systems 201 0.62% - 0.00%
Teledyne Scientific & Imaging (formerly Rockwell Scientific) 189 0.59% 189 0.54%
Eaton 170 0.53% - 0.00%
Johanson Technology 165 0.51% - 0.00%
ZPower Rechargeable Microbattery 153 0.48% - 0.00%
Advanced Motion Controls 123 0.38% - 0.00%
Lucix 120 0.37% - 0.00%
Technicolor Video Services 117 0.36% 400 1.15%
MicroSemi (formerly Vitesse Semiconductor Corp.) - 0.00% 197 0.57%
Harbor Freight Tools - 0.00% 556 1.60%
Ventura County Star - 0.00% 260 0.75%
SolarWorld Industries (formerly Shell Solar) - 0.00% 260 0.75%
Data Exchange Corp - 0.00% 190 0.55%
WellPoint - 0.00% 1,029 2.95%
Zebra Technologies Corporation - 0.00% 242 0.70%
Total 3,362 9.63% 4,893 14.07%
Notes:
(1) Total City Employment in Fiscal Year 2019: 32,200
(2) Total City Employment in Fiscal Year 2010: 34,826
Sources: City of Camarillo Finance Dept.
State of California, Employment Development Department, Labor Market Information Division
2010
Fiscal Year
2019
182