[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6053902,"mediaKeyId","3343191-5df175eb7327d67aa9f3084ddba3c561","parentId",3343191,"title","Committee reviews interfund loan program; staff proposes five-year standard term and policy clarifications","audioSeconds",426,"startMs",3735000,"endMs",4161000,"viewUrl","/Search/View?dp=1&key=3343191-5df175eb7327d67aa9f3084ddba3c561&start=3735&end=4161","thumbnailUrl","https://assets.pipeline.soar.com/3343191-5df175eb7327d67aa9f3084ddba3c561/thumbnail_3735000.jpg","articleUrl","/articles/6053902/Riverside/Riverside-County/California/Committee-reviews-interfund-loan-program-staff-proposes-five-year-standard-term-and-policy-clarifications","mediaUrl","https://secure.pipeline.soar.com/6053902-5850ddfa16b01710e31fa7824a5de38d/orig.mp4?Expires=1775175752&Signature=cv1podpYFHWU6BG~rVQmBar4xLUulPZS35KPn~jyES5-0OL3lbGSzquqSkojLYnyhcpjab3FlNYqoxDZVAEex5MJiLzlRj-NUrFH7Bj08QPEuM2-dQPK4S3V6zDlPuIZBa5s~h-JbI3aZp1FuawNNW-Lz45czzxeeissIgAEwDwn~Sd-~G5sXvG8dNrr8N0vvxYg-G74K1ASqkFSgMz5PnoNeMIT5usflfOaUUsjvRCVlnbwpX2uLpQIrcLYKXFQsabVRErt7tkQ27lKKdFFl7MO0TwEGwYIl9Djy4uP4iqcvJUoE12PkTxgx8wkK3j8kvNFFjXjE1yp7FzRIHH6SQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Riverside County, CA","date","2025-05-14T00:00:00Z","article","The Finance Committee received an update May 14 on Riverside’s interfund loan program, outstanding loans and a proposed policy revision to clarify roles, loan terms and approvals.

Staff presented a summary of six outstanding interfund loans with an aggregate outstanding balance of about $8,500,000 as of April 1, 2025, and described each loan’s purpose and maturity. The loans cited included an interfund loan for the Utilities Plaza (maturing fiscal year 2027), loans tied to redevelopment-era purchases including Riverside Golf Course (maturing 2028) and Reid Park (maturing 2029), an airport loan for deferred maintenance (maturing 2037), a $2,000,000 parking interfund loan (maturing circa 2034) and a refuse vehicle loan (maturing 2028).

Policy changes proposed: staff said they replaced outdated language, clarified roles and responsibilities, and revised standard loan terms. The revised policy sets a typical five-year term for interfund loans, with longer terms allowed only by exception and with approval by the city council (and where enterprise funds are lenders, approval from the Board of Public Utilities and council). Staff said all interfund loans require council approval prior to issuance.

Why it matters: Interfund loans use city pooled cash that otherwise would be invested; staff said loans generally earn the same pooled investment return that the city earns on its portfolio, and that using internal loans avoids issuance costs and market interest and underwriting fees that would apply if a fund borrowed externally. Finance Director Christie Thomas noted recent general fund loans made to airport and parking funds have longer terms because those receiving funds are less financially resilient.

Public comment and concerns: Caller Jason Hunter, Ward 1, urged restricting loans from enterprise funds and said long-term interfund loans originating in enterprise funds can amount to ratepayer arbitrage if those funds were overcharged. “You’re basically loaning at short-term rates for long-term projects,” Hunter said, urging that enterprise-fund lending be curtailed and that council be the policy-setting authority on such loans.

Next steps and oversight: Staff recommended the committee receive the update and provide feedback on the revised interfund loan policy; the committee did not adopt policy changes at the meeting but staff will bring the revised policy forward for council consideration per the recommended process.","mediaType","Video","parentTitle","Finance Committee\t5/14/2025","oneSentenceSummary","Staff updated the Finance Committee on outstanding interfund loans, proposed policy revisions and a recommendation that enterprise-fund lending require prior board and council approval. Outstanding interfund loans total about $8.5 million as of April 1, 2025, staff said.","taxTitle","Riverside, Riverside County, California","taxId",4680,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6053907,"Finance committee recommends city council receive financial health indicators report",1504,2224000,3728000,"/Search/View?dp=1&key=3343191-5df175eb7327d67aa9f3084ddba3c561&start=2224&end=3728","https://assets.pipeline.soar.com/3343191-5df175eb7327d67aa9f3084ddba3c561/thumbnail_2224000.jpg","/articles/6053907/Riverside/Riverside-County/California/Finance-committee-recommends-city-council-receive-financial-health-indicators-report","https://secure.pipeline.soar.com/6053907-ef4b1806cb001d5de997b96d6eab859b/orig.mp4?Expires=1775175752&Signature=L7irQq9tMjqLqhRIlJ1NZ6kYtkwzm00Pp7CY9k8dTmSzEmT8svsRmEj3eGwVhnLswYuplW-hEo35QMmlPQwb5~WKjzzj0v6D~-mabyj49tyUO5795lbSBe9cTM5ujhkXCbnDLP5JlsNk3H8ws29GAsPnS~DZTVzP~5mt-LnRIaW-chO0S4MrsA6Vw36uIwdhsBqkoS5yRQxxdX8YLUs5W0QjTarR0DufyimFnrguZZLHmgoC3vKUinXMifGZJMEZaN6WWjlz1PHJKNrq822vyk3R1rzNg4WvsG0r8T~ARHYR4d9fnsQW2drktVlzHwbrPWMoq8bxNqK6JMb2ijJqAw__&Key-Pair-Id=KUT5TJCACFTXG","City staff presented the Finance Committee with a package of financial health indicators May 14 intended to spot early signs of fiscal stress and inform budget decisions. Ryan Carter, the city controller, framed 11 measures across three questions: can the city pay its bills now, can revenues cover expenses, and can the city pay bills in the future.

Carter said the indicators use audited financial data through June 30, 2024, and compare Riverside with a market basket of full-service cities. “These indicators reflect fiscal year 2024 data and should be viewed as one lens among many for evaluating our financial condition and does not give an overall grade,” Carter said.

Key takeaways presented: Riverside’s general fund reserve ratio was described as strong at about 36%—well above the Government Finance Officers Association recommendation of roughly 17% (about two months of revenues). Carter said the city’s general fund liquidity and other short-term measures show a positive trend, while the city’s operating margin indicated roughly 25% of governmental activity expenses were covered by program revenues (charges, fees and grants). The report noted prior one-time federal grants (CARES, emergency rental assistance, ARPA) elevated grant‑based revenue recognition in earlier years and that those grants have largely subsided.

Discussion and public comment: Caller Jason Hunter, Ward 1, criticized the chosen peer basket and urged inclusion of median income adjustments and comparisons to more locally situated jurisdictions. Council member Falcone and Chair Hemingway asked staff to consider a median‑income component and to provide plain‑language benchmarks that non‑specialist residents can understand; Carter agreed to explore adding median income comparisons and clearer normative benchmarks for future reports.

Action: Council member Falcone moved to forward staff’s recommendation—that the city council receive and file the financial health indicators—and the motion was seconded; the committee recorded the motion for forwarding to the full city council.

Context: The indicators are informational and staff asked the committee to use them alongside budget documents and other financial analyses. Carter noted one widely cited benchmark—the GFOA reserve recommendation—was included because most measures lack a universal industry ‘‘good’’ value and are best interpreted in context and over time.

Next steps: Staff said they will consider adding median-income adjustments and clearer benchmarks in future iterations, and the committee will forward the report to the city council for receipt and filing.","Staff presented 11 financial indicators using audited FY2023–24 data. Committee discussed comparability across peer cities, the role of fee updates and median income benchmarks; a motion was made to forward the report to city council.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6053912,"Riverside finance committee hears update on CalPERS liabilities, pension obligation bond performance",955,297000,1252000,"/Search/View?dp=1&key=3343191-5df175eb7327d67aa9f3084ddba3c561&start=297&end=1252","https://assets.pipeline.soar.com/3343191-5df175eb7327d67aa9f3084ddba3c561/thumbnail_297000.jpg","/articles/6053912/Riverside/Riverside-County/California/Riverside-finance-committee-hears-update-on-CalPERS-liabilities-pension-obligation-bond-performance","https://secure.pipeline.soar.com/6053912-fb25c815fc38049fd224e2fb5ca083b9/orig.mp4?Expires=1775175752&Signature=kF17hoftJ4vAq2mhpecUjIszxM9Qk8XoAzD68KvPQUNqL8MlSJEYzGiDt7ZLHQS~OJBtFrERsquKMZRbwevOK5tFm579DAKC5jASwX~bGsunEZZ-FaY0hYPU9OR8ihle63aduzdGzEs1donuaF4ASq6StHFqxmXSfFtKNA~Nmx9KQ0rwcjX8F-~A-OXPJllehVN~~cjumwPZbVmEzjEmA7OWt5i6mFRpoS4ZZCz5fr4S55JxwT1JMJJvZoUtUPrv4KMaBgaoZ8CcJGmE0IYfaarU6DjXkzH7CmTLeArcbIglWCZfceA0HIK6c4-Yd8k7pIlGy10Lbe5WKBfX4CqLSA__&Key-Pair-Id=KUT5TJCACFTXG","The City of Riverside Finance Committee received an update May 14 on the city’s unfunded accrued liability with the California Public Employees’ Retirement System (CalPERS), the performance of a pension obligation bond (POB) issued in 2020 and plans to use a Section 115 trust to smooth future pension payment spikes.

Financial adviser Mike Meyer of NHA said the city issued roughly $432,000,000 of pension obligation bonds in 2020, locking in a 3.69% interest rate and using the proceeds to convert a portion of the CalPERS unfunded accrued liability (UAL) to fixed-rate debt. “In the last five years, about $45,000,000 of savings,” Meyer said, describing realized savings from the difference between CalPERS returns and the bond rate.

The update also described how CalPERS investment returns since issuance have affected the remaining UAL and the city’s planning. Edward Enriquez, the city’s chief financial officer, told the committee the city originally faced a UAL that had grown as high as about $642,000,000 before the bond strategy was pursued. Meyer said the most recent published UAL is about $436,000,000 and that staff project it could be roughly $382,000,000 when the next CalPERS reports are issued this fall, depending on CalPERS’ forthcoming asset-liability assumptions.

Why it matters: City staff and advisers said the POB reduced the city’s exposure to CalPERS’ year-to-year return volatility and created resources to smooth future payments. Meyer emphasized the city has built a Section 115 trust using some of the bond savings and other one-time receipts; that trust had a reported balance of about $77,000,000 as of December 2024 and is intended to offset a spike in pension payments projected later in the decade.

Details and projections: Meyer said CalPERS’ long-term assumed return was about 6.8%, and its five-year average return since the bond was issued is about 7.1%. “The savings is really the differential between that 7.1 and the 3.69% on the bonds,” he said. Using conservative planning assumptions for the trust (5% investment return for analysis), staff modelled deposits of roughly $9 million this fiscal year, $9 million next year, $8 million in 2027 and $6 million in 2028 into the Section 115 trust. The consultant presented a scenario in which the general fund’s pension-related payments could be smoothed to a long-term level near $44.6 million, with withdrawals from the trust offsetting amounts above that level as payments rise.

Risks and watch items: Staff and consultants warned that CalPERS’ periodic asset-liability management study (scheduled to publish results this fall) could change assumptions such as the discount rate; Meyer said that a hypothetical decrease in CalPERS’ assumed investment return from 6.8% to 6.5% would materially increase the city’s UAL (he estimated an increase to about $515 million in that scenario). Staff recommended continued monitoring and periodic updates to the committee.

Public comment and committee discussion: Caller Jason Hunter, Ward 1, urged the committee to consider who manages the Section 115 trust and asked for historical returns; he also repeated concerns about the city’s longstanding general fund transfers from utility funds and ongoing litigation related to water transfers. Council member Falcone and others asked for plain-language takeaways; Falcone asked Edward Enriquez to provide a concise explanation for non-specialists. Christie Thomas, the finance director, and Edward Enriquez described the trust’s investment approach as more growth-oriented than the city’s operational cash portfolio and confirmed staff follow applicable government code limits.

Next steps: Staff and the consultant recommended remaining vigilant, continuing deposits to the Section 115 trust where feasible, and returning with periodic updates. The committee did not take a formal vote on policy changes during the presentation; the session served as an informational update.","City staff and financial advisers told the Finance Committee the 2019–2020 pension obligation bond has reduced near-term volatility in CalPERS payments, while the city builds a Section 115 trust to smooth an expected payment spike later this decade.","actionData","errors"]

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Committee reviews interfund loan program; staff proposes five-year standard term and policy clarifications

Finance committee recommends city council receive financial health indicators report

Riverside finance committee hears update on CalPERS liabilities, pension obligation bond performance